Sasol Limited Q2 FY2021 earnings call

• Despite COVID-19 and weather challenges, Sasol demonstrated resilience with normalized cash fixed costs 10% lower, capital expenditure ZAR 8 billion (65% lower), and working capital ratio 14.9%. - Asset divestment program: Progressed to $3.3 billion since March 2020, aiming for $3.8 billion by December 2021. - Climate change response: Plans to reduce greenhouse gas emissions in SA by 2030 are progressing, with partnerships like with Air Liquide for GHG reduction and renewable energy procurement. - Mozambique LNG project: Final investment decision approved, involving a gas-fired power plant and LPG facility to monetize gas. - Sasol 2.0 program: Progress made, expected to deliver gains in 2021 and beyond, with focus on optimizing operations and capital allocation.

Secunda Synfuels Operations production volumes were 1% higher. ORYX GTL achieved a utilization rate above 100% in November and December 2020. North American Operations had 5% higher production volumes but were constrained by Hurricanes Laura and Delta. Base chemicals sales volumes improved by 9% due to increased demand. Performance chemicals sales were only 3% lower despite softer market conditions. Energy business liquid fuels sales were 11% lower due to COVID impact on transportation fuels. Revenue contributions for each segment were not explicitly stated in absolute percentage terms but key operational details were highlighted.

• Net debt-to-EBITDA ratio at end of period was 2.6 times, well below covenant. - Confident of meeting and beating covenant level of 3 times by June 2021. - Liquidity position improved, focusing on debt maturity profile. - Asset divestments expected to continue deleveraging the balance sheet. - Sasol 2.0 program expected to contribute to strong operational performance and improved cash flows.

• Macroeconomic volatility posing challenges to financial performance. - Impact of extreme weather events (e.g., hurricanes, cold snap in Texas) on operations and production. - Regulatory hurdles in asset divestment processes, such as with ASUs.

Q: Provide further color on large increase in working capital, higher receivables and lower payables during the period? And what can we expect, can we expect this to unwind in the short-term?

A: Paul Victor discussed working capital trends, noting rollover of payments due to government dispensation and expectations of normalization in the next six months.

Q: Could you please provide some more indication of the exit rate profitability for Base Chemicals and the Energy business?

A: Paul Victor stated detailed guidance on this would be provided later as part of Sasol 2.0 optimization.

Q: What is the financial impact from the current cold snap in Texas? How long will it take for production levels to normalize?

A: Brad Griffith said production restoration expected in 7-10 days for some plants, with more complex units taking 10-14 days, and financial impact not yet determined.

Q: Will the Mozambique LNG be fully covered within the ZAR 20 billion to ZAR 25 billion CapEx program over the next few years? And how long does it extend the plateau production for?

A: Fleetwood Grobler said the project is factored into the CapEx range and estimates it extends the plateau production with infill well drilling and PSA agreement.