annual review and summarised fi nancial information 2010 focused and energised sasol annual review and summarised fi review and summarised sasol annual 2010 nancial information www.sasol.com AR Our business Our structure 2 The adoption of the third King Code of Governance Principles (King III) Our global presence 3 in 2010, and its specifi c requirements for “integrated reporting”, Our integrated business model 4 is refl ected in the changes made to the narrative structure of this Our products 6 year’s annual review. We believe that a more holistic articulation of a business – one that does not artifi cially split fi nancial and “non- Our key relationships 8 fi nancial” disclosure – will provide a more complete analysis to satisfy Our vital statistics 9 the information needs of the broad range of stakeholders that use the Our strategic direction 10 annual review. A core part of this approach is the integration of social Our growth opportunities worldwide 14 and environmental performance issues within our operating reviews. Principal integrated risks 16 This complements our separate sustainable development report Our board of directors 18 on www.sasolsdr.com. In line with this approach, the sustainable development-related issues managed by functional departments Our group executive committee 20 within Sasol are reported in a newly-introduced review for Sasol Business reviews Group Services, and not in a summarised sustainable development chapter as in the past. Chairman’s statement 22 Chief executive’s report 26 Through our commitment to integrated sustainability reporting, Operating reviews Sasol aims to provide stakeholders with a balanced view of the Sasol Mining 30 performance of our business through a suite of reporting Sasol Gas 33 publications, indicated below. Sasol Synfuels 36 The 2010 Sasol annual report consists of two books: Sasol Oil 39 Sasol Synfuels International (SSI) 42 AR Annual review Sasol Petroleum International (SPI) 45 Including business overview, chairman’s statement, chief executive’s report Sasol Polymers 48 and operating reviews. Sasol Solvents 51 FIN Annual fi nancial statements Sasol Olefi ns & Surfactants 54 Including a full analysis of the group’s results by the chief fi nancial offi cer. Sasol Nitro, Sasol Wax, Sasol Infrachem, ChemCity and Merisol 57 Other related publications: Sasol Technology 63 20F Form 20-F Sasol New Energy 66 Our annual report under the Securities Exchange Act of 1934 on Form 20-F Sasol Financing 69 was fi led with the United States Securities and Exchange Commission on 28 September 2010. The Form 20-F is available on our website Sasol group services (www.sasol.com). Human resources 71 SD 0Sustainable development report Safety, health and environment (SH&E) 75 This separate report provides more detail of particular interest to certain of Legal compliance 82 our stakeholder groups, such as sustainable development analysts and Corporate affairs 84 professionals. In the interests of shortening the printed report and making for easier and more focused reading, we have included additional detail on Sasol Inzalo Foundation 85 our website (www.sasolsdr.com). Information management 86 Supply chain management 86 These reports provide a complete view of the group’s strategy, businesses, performance against objectives, and prospects. Summarised fi nancial information Salient features 88 Statement of fi nancial position 90 Income statement 91 Contact information ibc www.sasol.com For 60 years, Sasol has demonstrated its innovative spirit in the energy and chemicals sectors in South Africa. Sasol has grown to become the country’s leading fuel provider. Today we are an international player in the energy and chemicals sectors, and a preferred technology partner. Sasol’s liquid fuels and chemicals products are used in almost every sphere of life. Sasol is also a major contributor to the development of people and the improvement of socioeconomic conditions in the countries in which we operate. In the last ten years, we have made signifi cant strides in our commitment to environmental sustainability, premised on our innovation and technology leadership. As we emerge from the economic turmoil of the last 18 months, we are focused and energised. We have scrutinised our assets and interrogated our plans for the future. We are leaner and more fl exible, and we understand what we have to do to transform and grow, profi tably and sustainably. We have the people and the technology, the experience and the innovative spirit to reach new frontiers, to meet the challenges of the future, and to grow our business signifi cantly beyond where it is today. annual review 2010 1 This section provides a bird’s eye view of the Sasol group; it shows our structure, business model and markets. our business Sasol is an integrated energy and We mine coal in South Africa, and produce industrial customers. We also supply fuel chemicals company. We are technology gas and condensate in Mozambique and oil to other distributors in the region. driven, converting gas and coal into liquid in Gabon. We continue to advance our We have chemical manufacturing and fuels, fuel components and chemicals upstream oil and gas activities in marketing operations in South Africa, through our proprietary processes. We Mozambique, Nigeria, Gabon and South Europe, the Middle East, Asia and the are focused on commercialising our Africa, and in Papua New Guinea and Americas. Australia. gas-to-liquids (GTL) and coal-to-liquids Formed in 1950, Sasol celebrates 60 years (CTL) technology internationally. Our fi rst In South Africa, we refi ne imported crude oil of reaching new frontiers in 2010. Sasol is international GTL facility, Oryx GTL was and retail liquid fuels through our network of listed on the JSE Limited in South Africa and brought into operation in 2007. Sasol convenience centres, and supply gas to the New York Stock Exchange in the USA. Our structure Sasol group Sasol Group Services South African energy cluster Chemical cluster Corporate affairs Sasol Mining Sasol Polymers Government relations Sasol Gas Sasol Solvents Group fi nance Sasol Synfuels Sasol Olefi ns & Surfactants Human resources Sasol Oil Sasol Nitro Information management Other SA energy Sasol Wax Investor relations Sasol Infrachem and Merisol Legal and assurance Safety, health and environment International energy cluster Other businesses Strategy and planning Supply chain management Sasol Synfuels International (SSI) Sasol Technology Sasol Petroleum International (SPI) Sasol New Energy Sasol Financing Southern Africa North America 7 6 11 10 3 2 12 8 9 4 3 5 5 1 4 6 2 1 Australasia South America 2 3 1 1 2 This introduction to the world of Sasol caters specifi cally for new readers of the annual review. Our global presence Southern Africa Rest of Africa and Middle East 19 Milan (Italy) 1 Cape Town (SA) 1 Alexandria (Egypt) 20 Terranova dei Passerini (Italy) 2 Durban (SA) 2 Bandar Assaluyeh (Iran) 21 Linz (Austria) 3 Johannesburg (SA) 3 Doha (Qatar) 22 Augusta (Italy) 4 Sasolburg (SA) 4 Ras Laffan (Qatar) 23 Bratislava (Slovak Republic) 5 Secunda (SA) 5 Dubai (UAE) 24 Nováky (Slovak Republic) 6 Harare (Zimbabwe) 6 Tehran (Iran) 25 Warsaw (Poland) 7 Lusaka (Zambia) 7 Escravos (Nigeria) 26 Moscow (Russia) 8 Gaborone (Botswana) 8 Nigeria (offshore) Central Asia, India and South East Asia 9 Maputo (Mozambique) 9 Gabon (offshore) 1 Shurtan (Republic of Uzbekistan) 10 Temane (Mozambique) Europe 2 Tashkent (Republic of Uzbekistan) 11 Mozambique (offshore) 1 Birkenhead (UK) 3 Mumbai (India) 12 Windhoek (Namibia) 2 Birmingham (UK) 4 State of Orissa (India) Australasia 3 Castletown (Isle of Man) 5 Kertih (Malaysia) 1 Sydney (Australia) 4 Farnham (UK) 6 Kuala Lumpur (Malaysia) 2 Port Moresby (Papua New Guinea) 5 London (UK) 7 Singapore 3 NW Shelf offshore (Australia) 6 St Andrews (UK) Far East North America 7 Antwerp (Belgium) 1 Beijing (China) 1 Lake Charles (Louisiana, USA) 8 Barcelona (Spain) 2 Dongguan (China) 2 Oil City (Pennsylvania, USA) 9 De Meern (The Netherlands) 3 Guangzhou (China) 3 Richmond (California, USA) 10 Paris (France) 4 Hangzhou (China) 4 San Francisco (California, USA) 11 Vordingborg (Denmark) 5 Hong Kong (China) 5 Tucson (Arizona, USA) 12 Brunsbüttel (Germany) 6 Lianyungang (China) 6 Houston (Texas, USA) 13 Hamburg (Germany) 7 Nanjing (China) 14 Herne (Germany) South America 8 Ningxia Hui Autonomous Region (China) 15 Marl (Germany) 1 São Paulo (Brazil) 9 Shanghai (China) 16 Moers (Germany) 10 Oita (Japan) 17 Witten (Germany) 11 Tokyo (Japan) 18 Sarroch (Italy) 12 Yinchuan (China) Europe 6 11 26 3 12 1 13 25 2 15 5 9 1 Alexandria4 (Egypt)7 14 16 23 24 Key to map 2 Bandar Assaluyeh (Iran) 17 Manufacturing/production 3 Doha (Qatar)10 21 4 Ras Laffan (Qatar) Offi ce 5 Dubai (UAE) 19 20 Exploration 6 Tehran (Iran) Project 7 Escravos (Nigeria) New projects 8 Research 8 Nigeria (offshore) 22 9 Gabon (offshore) 18 Rest of Africa and Middle East Central Asia, India and South East Asia Far East 1 6 2 1 2 3 5 4 8 1 12 11 6 10 4 9 7 4 3 7 2 5 3 8 9 5 7 6 annual review 2010 • our business 3 As an integrated energy and chemicals company Sasol aims to meet stakeholders’ expectations our integrated business model Exploration and production Sasol obtains its raw materials through its coal-mining activities, oil and gas exploration, and purchases from the open market. Some raw materials are sold directly to external markets. o o Through Sasol Petroleum Sasol Mining supplies most of the International (SPI) and Sasol Gas, feedstock coal we need for our Sasol we obtain natural gas through petrochemical plants. the cross-border pipeline linking the Pande and Temane fi elds in Mozambique to our Secunda complex. We use this gas as our sole hydrocarbon feedstock at Sasolburg and as a supplementary feedstock to coal at Secunda.