Sasol Limited Q4 FY2020 earnings call

• Safety: Investigated fatalities, implemented COVID-19 curtailment measures (revised shifts, social distancing, screening, etc.) and supported communities with donations. - LCCP: Construction complete, LDPE unit restoration progressing, EBITDA positive in second half despite lower product prices. - Asset divestment: Yielded ~US$600 million from sales (e.g., air separation units to Air Liquide, explosives business to Enaex, Escravos GTL plant to Chevron). - Sasol 2.0: Initiative to reset organization for sustainable profitability in low oil price environment, planned investor update by November. - Balance sheet: Focus on cash, free cash flow, liquidity buffer of $2.5 billion, rights issue scheduled for second half of FY2021 for de-leveraging.

Mining improved production by 2%. Secunda Synfuels Operations experienced an 8% decline in production, while Natref decreased by 34% due to drop in fuels demand. North American operations saw production volumes nearly a third higher as the cracker achieved nameplate capacity. Eurasian Operations production was marginally down by 2%, partially offset by increase in surfactant demand. Revenue contributions: Mining, Secunda Synfuels, Natref, North American, and Eurasian Operations each had their respective performance impacts.

• Financial year 2021: Mining to ramp up, South African liquid fuels sales volumes 54-55 million barrels, Secunda Synfuels production 7.7-7.8 million tonnes, target to reduce balance sheet debt by up to $6 billion. - LCCP: Expecting positive EBITDAs from second half of FY2021. - Rights issue: Scheduled for second half of FY2021, aiming to de-leverage and position for sustainable future.

• Geopolitical and oil price collapse impacting balance sheet. - COVID-19 causing demand destruction and market volatility. - Uncertain macroeconomic conditions affecting business performance. - Challenges in achieving asset divestment and rights issue goals.

Q: Subject on the rights issue has gone from last result to a voting rights issue in the second half of FY21. Could you please detail what has changed, and what management feels that the last result is now the base case?

A: Paul Victor discussed the rationale for the rights issue, considering self-help measures, asset disposals, and positioning for Sasol 2.0, noting the need to exhaust options before tapping shareholders and calibrating towards end of year.

Q: Do you still need a rights issue if you're expecting to receive R79 billion from assets held for sale?

A: Paul Victor explained that asset disposals are considered, but rights issue is still seen as necessary to shape capital structure for sustainable future, sensitive to macroeconomic and asset disposal outcomes.