Sasol Limited Audited Group Results and Declaration of Dividend Number 52 of Sasol Limited for the Year Ended 30 June 2005; Comprehensive Additional Information is Available on Our Website: www.sasol.com.JOHANNESBURG Johannesburg (jōhăn`ĭsbörg', yōhä`nəsbörkh'), city (1991 pop. 1,574,631), Gauteng, NE South Africa, on the southern slopes of the Witwatersrand at an altitude of 5,750 ft (1,753 m). , South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. -- Sasol Sasol (originally Suid Afrikaanse Steenkool en Olie - South African Coal and Oil) is a South African company involved in mining, energy, chemicals and synfuels. In particular, they produce petrol and diesel profitably from coal and natural gas using Fischer-Tropsch (NYSE NYSE See: New York Stock Exchange :SSL (Secure Sockets Layer) The leading security protocol on the Internet. Developed by Netscape, SSL is widely used to do two things: to validate the identity of a Web site and to create an encrypted connection for sending credit card and other personal data. )(JSE JSE See: Johannesburg Stock Exchange :SOL) --Record headline earnings Headline Earnings A basis for measuring earnings per share implemented by the Institute of Investment Management and Research. This method accounts for all the profits and losses from operational, trading, and interest activities, that have been discontinued or acquired at any --Most businesses achieve commendable com·mend tr.v. com·mend·ed, com·mend·ing, com·mends 1. To represent as worthy, qualified, or desirable; recommend. 2. To express approval of; praise. See Synonyms at praise. 3. improvements --Total dividend increased by 20% to R5,40 per share --Gearing improves to 38%. Capital expenditure of R13,2 billion, with nearly R10 billion (75%) invested in South Africa --Contribution to economic wealth of South Africa increases by 22% to R21,5 billion --Sasol's international credit rating upgraded "A key feature of the year was strong commodity prices - both for energy and chemicals - as well as a stronger currency. Recent years have also shown similar volatility in these drivers. Sasol's strategy has remained unchanged and its successful implementation over many years continues to deliver strong attributable earnings growth," says Sasol chief executive Pat Davies Da·vies , Arthur Bowen 1862-1928. American painter who was the chief organizer of the revolutionary Armory Show in 1913. . Record headline earnings Attributable earnings increased by 61% from R5,9 billion to R9,6 billion. Headline earnings per share increased by 87% to R17,49. In US dollar terms, headline earnings per share of US$2,82 represent a 107% increase. Higher oil prices - stronger rand Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased by R5,2 billion (56%) to R14,5 billion. Higher average international oil prices (dated Brent Brent, outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment. US$46,17/b versus US$31,30/b in 2004) boosted operating profit by about R2,5 billion. This benefit was partly offset by the adverse impact of the stronger rand during the year (average rate R6,21 : US$1,00 versus R6,88 : US$1,00 in 2004), which reduced operating profit by approximately R2,7 billion. Translation effects at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. were, however, slightly positive compared to the significant adverse effects at 30 June June: see month. 2004, resulting in a positive turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. of R1,1 billion. The net adverse currency effect on operating profit amounted, therefore, to R1,6 billion, representing a 64% reduction of the benefit derived from higher oil prices. The net adverse impact of currency effects manifested themselves across all of Sasol's businesses. The benefit of higher oil prices were, however, only realised in the energy and fuel-related businesses with adverse effects being experienced in the chemical businesses because of higher oil-derivative feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing costs. "Our energy and fuel-related businesses achieved a 42% increase in operating profit," says Sasol deputy chief executive Trevor Trev·or , William Originally William Trevor Cox. Born 1928. Irish writer noted for his darkly comedic stories and novels, including The Old Boys (1964) and The Day We Got Drunk on Cake (1967). Munday Munday can refer to:
The effect of capital write-offs amounted to R1,3 billion (pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta ), most of which arose in the chemical businesses. Significant impairments were made in Sasol Solvents and Sasol Olefins and Surfactants and related primarily to the n-butanol plant at Sasolburg Sasolburg is a large industrial town in the Free State province of South Africa. The town was established in the 1950s in order to provide housing and facilities for Sasol (South African Coal, Oil and Gas) employees. and the linear alkyl alkyl /al·kyl/ (al´k'l) the monovalent radical formed when an aliphatic hydrocarbon loses one hydrogen atom. al·kyl n. benzene benzene (bĕn`zēn, bĕnzēn`), colorless, flammable, toxic liquid with a pleasant aromatic odor. It boils at 80.1°C; and solidifies at 5.5°C;. Benzene is a hydrocarbon, with formula C6H6. (LAB) plant in the USA. In the case of the n-butanol plant, this write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. is a consequence of the investment having been made in previous years, when the weaker rand negatively impacted capital costs, and its revenue streams are now based on a much stronger rand than originally envisaged. Operating profit was increased by R1,3 billion as a result of changes in International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ) relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc depreciation and goodwill. During the year, the expected remaining useful lives of our assets were reviewed and - as a consequence - depreciation was reduced by R1,5 billion. This amount was reduced by R0,2 billion because of the change in the accounting treatment of goodwill whereby goodwill is no longer amortised over the remaining life of the asset to which it is related, but is subject to an annual impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. test. The decrease in the South African company tax rate from 30% to 29% resulted in a reduction of the tax charge of approximately R0,3 billion. "Capital expenditure amounted to R13,2 billion. Major projects advanced included the fuel quality enhancement and polymer expansion project (Project Turbo) in South Africa, the Oryx oryx (ôr`ĭks), name for several small, horselike antelopes, genus Oryx, found in deserts and arid scrublands of Africa and Arabia. They feed on grasses and scrub and can go without water for long periods. gas-to-liquids This technology deals with the conversion of natural gas to hydrocarbon liquids such as gasoline or diesel fuel. One method starts with partial oxidation of methane (a component in natural gas) to carbon dioxide, carbon monoxide, hydrogen and water, the carbon monoxide to hydrogen (H (GTL GTL - Gunning Transceiver Logic ) venture in Qatar Qatar or Katar (both: kŭ`tər, gŭ–, kətär`), officially State of Qatar, independent emirate (2005 est. pop. 863,000), c. and the Arya ARYA Atherosclerosis Risk in Young Adults Sasol Polymers project in Iran," Davies said. Gearing (net debt as a percentage of shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. ) reduced from 41% at 30 June 2004 to 38% and was well within our targeted range of 30% to 50%. Moody's Moody's Corporation (NYSE: MCO) is the holding company for Moody's Investors Service which performs financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized ratings scale. assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. Sasol Aa3.za long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. and prime-1.za short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. South African national scale credit ratings. Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index also upgraded Sasol's credit rating to BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. + during the year. The total dividend declared of R5,40 represents a 20% increase compared to the previous year. The dividend cover of 2,9 is suitably within our target range of 2,5 to 3,5 times. sasol mining The operating profit of Sasol Mining of R1 247 million was 4% better than the previous year despite sales volumes being 9% lower because of the closure of the coal-fired Adj. 1. coal-fired - fueled by burning coal; "a coal-fired ship" coal-burning fueled - heated, driven, or produced by burning fuel gasifiers at Sasolburg following the introduction of natural gas from Mozambique Mozambique, city, Mozambique Mozambique, city: see Moçambique. Mozambique, country, Africa Mozambique (mō'zəmbēk`), officially Republic of Mozambique, republic (2005 est. pop. . sasol synfuels Primarily because of higher oil prices, net of the oil hedge which expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. at the end of May 2005, Sasol Synfuels achieved an increase in operating profit of 37% to R7 560 million. Production volumes decreased slightly (3%) because of the adverse impact of unplanned shutdowns, which was partly offset by the benefit of introducing natural gas to improve plant operational stability. sasol liquid fuels business Higher refinery margins resulted in our liquid fuels business increasing operating profit by 33% to R1 900 million. Sales volumes transacted through Sasol and Exel retail fuel outlets exceeded expectations and market share objectives were met. The proposed merging of our liquid fuels business with Engen was conditionally recommended during the year by the South African Competition Commission to the Competition Tribunal A general term for a court, or the seat of a judge. In Roman Law, the term applied to an elevated seat occupied by the chief judicial magistrate when he heard causes. tribunal n. . The envisaged formation of the merged entity (Uhambo Oil) will be considered at the Competition Tribunal during October 2005. The announcement of our significant equity empowerment em·pow·er tr.v. em·pow·ered, em·pow·er·ing, em·pow·ers 1. To invest with power, especially legal power or official authority. See Synonyms at authorize. 2. transaction in this business is imminent. sasol gas Primarily driven by higher sales of natural gas both to external customers and Sasol businesses, operating profit increased by 141% to R932 million. Post-commissioning problems were experienced with the newly-installed auto thermal reformers in Sasolburg resulting in supply problems which have since been resolved. sasol synfuels international This business hosts the growth ambitions of the group relating to GTL and coal-to-liquid ventures. Its costs are associated with advancing the Qatar and Nigeria GTL projects and evaluating others in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with our strategic objective to build these global businesses. Costs rose to R199 million in the year as a direct consequence of increased activity in this respect, net of receipts of R33 million. sasol olefins and surfactants (O&S) The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of Sasol Olefins and Surfactants of R221 million includes capital write-offs of R783 million which arose mainly because of impairments. The significant assets impaired include the LAB plant in the USA and the zeolite zeolite Any member of a family of hydrated aluminosilicate minerals that have a framework structure enclosing interconnected cavities occupied by large metal cations (positively charged ions)—generally sodium, potassium, magnesium, calcium, and barium—and water plant in Italy. Sunk costs Sunk costs Costs that have been incurred and cannot be reversed. associated with the proposed octene-3 plant in South Africa have also been impaired. Excluding these capital write-offs, the operating profit of R562 million also includes a net benefit of R374 million from accounting standard changes, resulting in an operating profit of R188 million which compares with an operating loss incurred in the previous year of R46 million. While significantly higher oil-derivative feedstock costs were recovered through higher selling prices, the comparable improvement in operating performance materialised mainly because of continuing successes in cost reductions and productivity improvements. sasol polymers Higher international polymer prices and margins, together with ongoing benefits arising from productivity improvements, offset much higher oil-derivative feedstock costs. Sasol Polymers achieved a pleasing 44% improvement in operating profit to R1 484 million. sasol solvents Various plant outages experienced throughout the industry and strong international demand resulted in global supply shortfalls which caused unprecedented high solvent solvent, constituent of a solution that acts as a dissolving agent. In solutions of solids or gases in a liquid, the liquid is the solvent. In all other solutions (i.e. selling prices and margins. As a result, and aided by the benefits of stringent cost management, Sasol Solvents increased operating profit from R117 million to R1 243 million after taking into account the impairment of n-butanol. other Sasol Wax experienced a slight reduction in operating profit to R212 million because of not being able to recover higher oil-derivative feedstock costs through higher selling prices, primarily in Europe because of intense competition from Chinese producers. Sasol Nitro had an excellent year with its operating profit increasing more than twelve-fold to over R400 million, mainly because of improved margins and higher volumes in both the fertilizers and explosives businesses and non-recurring capital items in the previous year. Sasol Petroleum International benefited from the contribution of increased gas production in Mozambique and its oil revenues from off-shore West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. . It achieved an operating profit of R281 million. This is the first year this fledgling business has been profitable. This performance augers well for the future. profit outlook International oil and commodity chemical markets and prices are unstable unstable, adj 1. not firm or fixed in one place; likely to move. 2. capable of undergoing spontaneous change. A nuclide in an unstable state is called radioactive. An atom in an unstable state is called excited. and so forecasting these with confidence is not possible. Nevertheless, assuming no major disruptions in world currency and energy markets, we anticipate satisfactory growth in earnings in the year ahead. Davies said that despite the impact of commodity prices on Sasol's results, the group strategy remains consistent. "Value creation remains the force behind our key growth drivers which include technology leadership, strict financial discipline, experienced management and operation excellence. Our value creation imperative continues to be the commercialisation of GTL and CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic , exploitation of upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger hydro-carbon opportunities, and the strengthening of our chemicals portfolio." basis of preparation and accounting policies The condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for the year ended 30 June 2005 have been prepared in compliance with the Listings Requirements of the JSE Limited, IFRS and the South African Companies This is a list of companies in South Africa. Accounting
v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . The accounting policies applied in the presentation of the condensed consolidated financial statements are consistent with those applied for the year ended 30 June 2004 except for the accounting treatment of goodwill and property, plant and equipment which have been amended following the adoption of IFRS3 Business Combinations and IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. 16 Property, Plant and Equipment. The result of these changes is that goodwill is no longer amortised, negative goodwill at 30 June 2004 is written off against accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. earnings and the useful lives of property, plant and equipment have been reassessed resulting in an increase in operating profit of R1,3 billion and a related increase in earnings per share of 139 cents. These condensed consolidated financial statements have been prepared in accordance with the historic cost convention except for certain financial instruments which are stated at fair value. The principal reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. of the Sasol group is rand. This currency reflects the economic substance of the underlying events and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or of the group. related party transactions The group, in the ordinary course of business, enters into various sale and purchase transactions on an arm's length arm's length adj. the description of an agreement made by two parties freely and independently of each other, and without some special relationship, such as being a relative, having another deal on the side or one party having complete control of the other. basis at market rates with related parties. significant acquisitions and disposals of businesses Subsidiaries On 9 November 2004, Sasol Oil (Pty) Limited invested in Namibian Liquid Fuel (Pty) Limited (NLF NLF abbr. National Liberation Front NLF n abbr (= National Liberation Front) → FLN m NLF n abbr (= National Liberation Front ). The main purpose of NLF is to supply various petroleum products into the Namibian market. In terms of the agreement entered into between the shareholders of NLF, for the 2005 financial year, Sasol effectively controlled this entity and was entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to 90% of the income from this business. NLF has accordingly been consolidated as a subsidiary for the 2005 financial year. On 24 December 2004, the group sold its investments in two South African captive insurance Captive insurance companies are limited purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups, they sometimes also insure risks of the parent company's customers. companies for R17 million, which was equal to their carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. . On 1 March 2005, Sasol Wax International AG underwent a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . The result of the restructuring was the disposal of its investment in Euro Schumann Sasol Wax GmbH, the acquisition of 100% of the investment in Sasol Wax Danmark APS and an acquisition of a direct 31,25% interest in Paramelt RMC RMC Royal Military College RMC Radio Monte Carlo RMC Randolph-Macon College (Ashland, Virginia) RMC Regional Medical Center RMC Robert Morris College (Illinois) RMC Rocky Mountain College BV. Significant influence in this entity has been retained. This was a non-cash, share-for-share exchange transaction. Paramelt is reflected in the 2005 results as an equity accounted associate and Sasol Wax Danmark is consolidated as a subsidiary. Joint venture On 24 September 2004, the group disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of its investment in Sasol Southwest Energy LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control for R20 million. Following an impairment charge in the prior year, the final disposal of the investment realised a profit of R28 million. Associate During the year, the group reclassified its investment in FFS (Flash File System) Software from Microsoft that made flash memory look like a disk drive. It was superseded by the Flash Translation Layer (FTL) from PCMCIA and M-Systems. See flash memory. Refiners (Pty) Limited from an investment in associate to an investment held-for-sale as it is anticipated that the disposal of this entity will be completed within the next year. post balance sheet date events In May 2005, the Competition Commission conditionally recommended the approval of the proposed joint venture between Sasol Limited and Petroliam Nasional Berhad of their respective liquid fuels businesses, Sasol Oil (Pty) Limited and Engen Limited, to be called Uhambo Oil Limited, to the Competition Tribunal. Public hearings are scheduled for October 2005 whereafter the Competition Tribunal will give its ruling. On 1 July 2005, a 25% interest in the Republic of Mozambique Pipeline Investments Company (Pty) Limited was sold to iGas (Pty) Limited (owned by the South African Government) for R609 million realising a profit of R189 million. On 1 August 2005, Sasol announced that it is considering the divestment divestment to strip one's investment from an entity. from its Olefins and Surfactants business including its Safol plant but excluding its co-monomers activities in South Africa. The potential divestment is subject to an acceptable selling price being attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. .
principal foreign currency conversion rates
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One unit of foreign currency equals 30 June 2005 30 June 2004
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Rand/US$ (closing) 6,67 6,62
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Rand/US$ (average) 6,21 6,88
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Rand/euro (closing) 8,07 7,57
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Rand/euro (average) 7,89 8,19
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independent audit by KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Inc. The group's condensed consolidated financial statements have been derived from the audited consolidated financial statements at 30 June 2005 and for the year then ended. Our auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together , KPMG Inc, have audited the consolidated financial statements in accordance with International Standards on Auditing International Standards on Auditing (ISA) are professional standards for the performance of financial audit of financial information. These standards are issued by International Federation of Accountants. . A copy of their unqualified audit report is available for inspection at the registered office of Sasol Limited. declaration of interim dividend number 52 The directors of Sasol Limited have declared a final dividend of 310 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. (2004: 235 cents per share) for the year ended 30 June 2005. The dividend has been declared in the currency of the Republic of South Africa. The salient dates are:
To holders of ordinary shares
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Last day for trading to qualify for and Friday, 7 October 2005
participate in the dividend (cum dividend)
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Trading ex dividend commences Monday, 10 October 2005
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Record date Friday, 14 October 2005
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Dividend payment date (electronic and Monday, 17 October 2005
certified register)
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On 17 October 2005, dividends due to certificated shareholders on the South African Registry The configuration database in all 32-bit versions of Windows that contains settings for the hardware and software in the PC it is installed in. The Registry is made up of the SYSTEM.DAT and USER.DAT files. Many settings previously stored in the WIN.INI and SYSTEM. will either be electronically transferred to shareholders' bank accounts or, in the absence of suitable mandates, dividend cheques will be posted to such shareholders. Shareholders who have dematerialised their share certificates will have their accounts at their Central Securities Depository Participant In India, a depository participant is a market intermediary between the depository (generally NSDL) and investors. References
To holders of American Depositary Receipts
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Ex dividend on New York Stock Exchange Wednesday, 12 October 2005
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Record date Friday, 14 October 2005
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Approximate date for currency conversion Tuesday, 18 October 2005
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Approximate dividend payment date Thursday, 27 October 2005
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On behalf of the board
P du P Kruger L P A Davies T S Munday
Chairman Chief executive Deputy chief executive and chief
financial officer
Sasol Limited, 12 September 2005 Sasol expresses regret relating to the tragic incidents experienced during the past financial year. We again extend our sincere condolences to all those affected and assure every stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property. of our unequivocal commitment to a zero-harm working environment. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : In this report we make certain statements that are not historical facts and relate to analyses and other information based on forecasts of future results not yet determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled. determinable adj. , relating, amongst other things, to exchange rate fluctuations, volume growth, increases in market share, total shareholder return and cost reductions. These are forward-looking statements as defined in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Words such as "believe", "anticipate", "intend", "seek", "will", "plan", "could", "may", "endeavour" and "project" and similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. Forward-looking statements involve inherent risks and uncertainties and, if one or more of these risks materialise Verb 1. materialise - come into being; become reality; "Her dream really materialized" materialize, happen hap, happen, occur, come about, take place, go on, pass off, fall out, pass - come to pass; "What is happening?"; "The meeting took place off without , or should underlying assumptions prove incorrect, actual results may be very different from those anticipated. The factors that could cause our actual results to differ materially from such forward-looking statements are discussed more fully in our most recent annual report under the Securities Exchange Act of 1934 on Form 20-F filed on 29 October 2004 and in other filings with the United States Securities and Exchange Commission. Forward-looking statements apply only as of the date on which they are made, and Sasol does not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise. Please note: A billion is defined as one thousand million. The financial statements are presented on a condensed consolidated basis. Registered office: Sasol Limited, 1 Sturdee Avenue, Rosebank, Johannesburg 2196, P.O. Box 5486, Johannesburg 2000 Share registrars: Computershare Investor Services 2004 (Pty) Limited, 70 Marshall Street Marshall Street is located on University Hill in Syracuse, New York adjacent to Syracuse University, whose students gave it the name M-Street. Many shops, restaurants, and bars line this street and its terminus South Crouse Avenue. , Johannesburg 2001. P.O. Box 61051, Marshalltown 2107, South Africa, Tel: +27 11 370-7700, Fax: +27 11 370 5271/2 Directors (non-executive): P du P Kruger (Chairman), P V Cox (Deputy chairman), E le R Bradley, W A M Clewlow, B P Connellan, M S V Gantsho, A Jain (Indian), I N Mkhize, S Montsi, J E Schrempp (German), C B Strauss (Executive): L P A Davies (Chief executive), T S Munday (Deputy chief executive and chief financial officer) Company secretary: N L Joubert Company registration number: 1979/003231/06, Incorporated in the Republic of South Africa JSE NYSE Share codes: SOL SSL ISIN code: ZAE000006896 US8038663006 American depositary receipt American Depositary Receipt (ADR) Certificates issued by a US depository bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. (ADR ADR - Astra Digital Radio ) program: Cusip number CUSIP Number An identification number assigned to all stocks and registered bonds. The Committee on Uniform Securities Identification Procedures (CUSIP) oversees the entire CUSIP system. Notes: This system is used in the U.S. and Canada. 803866300 ADR to ordinary share 1:1 Depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. : The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , 22nd floor, 101 Barclay Street, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , N.Y. 10286, U.S.A. e-mail: investor.relations@sasol.com
Sasol Limited audited group results and declaration of dividend
number 52 of Sasol Limited for the year ended 30 June 2005
balance sheet
at 30 June
2005 2004
Rm Rm
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ASSETS
Property, plant, equipment 56 550 46 858
Goodwill (net of negative goodwill in 2004) 509 92
Intangible assets 1 900 2 236
Post-retirement benefit assets 300 239
Deferred tax assets 409 306
Other long-term assets 2 212 1 877
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Non-current assets 61 880 51 608
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Investments held-for-sale 41 -
Inventories 9 995 8 292
Trade and other receivables 12 384 10 971
Short-term financial assets 178 25
Restricted cash 1 002 527
Cash 2 509 2 063
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Current assets 26 109 21 878
TOTAL ASSETS 87 989 73 486
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EQUITY AND LIABILITIES
Shareholders' equity 43 530 35 027
----------- ----------
Minority interest 256 373
----------- ----------
Long-term debt 12 951 9 110
Long-term provisions 2 954 2 362
Post-retirement benefit obligations 2 970 2 724
Long-term deferred income 763 237
Deferred tax liability 6 286 5 768
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Non-current liabilities 25 924 20 201
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Short-term debt 3 300 3 265
Short-term financial liabilities 792 1 205
Other current liabilities 11 572 9 302
Bank overdraft (including overnight borrowings) 2 615 4 113
----------- ----------
Current liabilities 18 279 17 885
TOTAL EQUITY AND LIABILITIES 87 989 73 486
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Sasol Limited audited group results and declaration of dividend
number 52 of Sasol Limited for the year ended 30 June 2005
income statement
for the year ended 30 June
2005 2004
Rm Rm
----------------------------------------------------------------------
Turnover 69 239 60 151
Cost of sales and services rendered (42 267) (38 794)
----------------------
Gross profit 26 972 21 357
Non-trading income 417 343
Marketing and distribution expenditure (5 097) (4 920)
Administrative expenditure (4 075) (3 744)
Other operating expenditure (3 802) (2 687)
Translation gains / (losses) 91 (1 035)
----------------------
Operating profit 14 506 9 314
Dividends and interest received 149 190
Income from associates 184 117
Borrowing costs (net of amounts capitalised) ( 587) ( 439)
----------------------
Net income before tax 14 252 9 182
Taxation (4 568) (3 175)
----------------------
Earnings 9 684 6 007
----------------------
Attributable to
Shareholders 9 573 5 940
Minority interests in subsidiaries 111 67
----------------------
9 684 6 007
----------------------
Basic earnings per share (cents)
- attributable earnings basis 1 560 974
- headline earnings basis 1 749 934
----------------------
Diluted earnings per share (cents)1
- attributable earnings basis 1 533 964
- headline earnings basis 1 719 925
----------------------
Dividends per share (cents)
- interim 230 215
- final 310 2 235
----------------------
540 450
----------------------
1. Taking the Sasol Share Incentive Scheme into account.
2. Declared subsequent to 30 June 2005 and has been presented for
information purposes only. No provision regarding this final
dividend has been recognised.
Sasol Limited audited group results and declaration of dividend
number 52 of Sasol Limited for the year ended 30 June 2005
changes in equity statement (abridged)
for the year ended 30 June
2005 2004
Rm Rm
----------------------------------------------------------------------
Opening balance 35 027 33 518
Negative goodwill written off 610 -
Shares issued 311 109
Shares repurchased - ( 33)
Attributable earnings 9 573 5 940
Dividends paid (2 856) (2 745)
Increase / (decrease) in foreign currency translation
reserve 313 (1 217)
Increase / (decrease) in cash flow hedge accounting
reserve 552 ( 545)
----------------
Closing balance 43 530 35 027
----------------
Comprising
Share capital 3 203 2 892
Share repurchase programme (3 647) (3 647)
Accumulated earnings 45 643 38 236
Foreign currency translation reserve (1 336) (1 569)
Investment fair value reserve 2 2
Cash flow hedge accounting reserve ( 335) ( 887)
----------------
Shareholders' equity 43 530 35 027
----------------
Sasol Limited audited group results and declaration of dividend
number 52 of Sasol Limited for the year ended 30 June 2005
cash flow statement (abridged)
for the year ended 30 June
----------------------------------------------------------------------
2005 2004
Rm Rm
----------------------------------------------------------------------
Cash receipts from customers 68 263 59 952
Cash paid to suppliers and employees (49 451) (44 801)
-----------------
Cash generated by operating activities 18 812 15 151
Investment income 169 230
Borrowing costs paid (1 523) (1 384)
Dividends paid (2 856) (2 745)
Tax paid (3 753) (3 963)
-----------------
Cash available from operating activities 10 849 7 289
-----------------
Additions to property, plant and equipment(1) (12 414) (10 888)
Acquisition of businesses - ( 555)
Cash acquired on acquisition of businesses - 163
Disposal of businesses 36 283
Cash disposed of on disposal of businesses ( 94) ( 2)
Other net cash flows from investing activities 245 ( 29)
-----------------
Cash utilised in investing activities (12 227) (11 028)
-----------------
Share capital issued 311 109
Share repurchase programme - ( 33)
Dividends paid to minority shareholders ( 64) ( 37)
Contributions from minority shareholders - 75
Increase in long-term debt 4 165 4 386
Decrease in short-term debt ( 440) (2 616)
-----------------
Cash effect of financing activities 3 972 1 884
-----------------
Effect of translation of cash of foreign entities ( 175) ( 251)
-----------------
Increase / (decrease) in cash and cash equivalents 2 419 (2 106)
Cash and cash equivalents at beginning of year (1 523) 583
-----------------
Cash and cash equivalents at end of year 896 (1 523)
-----------------
Comprising
- restricted cash 1 002 527
- cash 2 509 2 063
- bank overdraft (2 615) (4 113)
-----------------
896 (1 523)
-----------------
(1)After taking the effect of cash flow hedge accounting on foreign
exchange contracts (R0,6 billion) into account.
Sasol Limited audited group results and declaration of dividend number
52 of Sasol Limited for the year ended 30 June 2005
value added statement
for the year ended 30 June
2005 2004
Rm Rm
----------------------------------------------------------------------
Turnover 69 239 60 151
Purchased materials and services (42 079) (37 085)
--------------------------
Value added 27 160 23 066
Investment income 333 307
--------------------------
Wealth created 27 493 23 373
--------------------------
South Africa 21 474 17 664
Rest of World 6 019 5 709
--------------------------
Wealth created 27 493 23 373
--------------------------
Employees 8 645 8 731
Providers of equity capital 2 967 2 812
Providers of loan capital 587 439
Government 4 326 3 421
Reinvested in the group 10 968 7 970
--------------------------
Wealth distribution 27 493 23 373
--------------------------
Sasol Limited audited group results and declaration of dividend number
52 of Sasol Limited for the year ended 30 June 2005
salient features
----------------------------------------------------------------------
2005 2004
----------------------------------------------------------------------
Selected ratios
Return on equity % 24,4 17,3
Return on total assets % 18,4 13,4
Operating margin % 21,0 15,5
Borrowing cost cover times 9,7 7,0
Dividend cover times 2,9 2,2
----------------------------------------------------------------------
Share statistics
Total shares in issue million 676,9 671,3
Treasury shares (share repurchase million
programme) 60,1 60,1
Weighted average number of shares million 613,8 610,0
Diluted weighted average number of shares million 624,4 616,2
Share price (closing) Rand 180,8 96,1
Market capitalisation Rm 122 379 64 509
Net asset value per share rand 70,58 57,31
----------------------------------------------------------------------
Other financial information
Total debt (including bank overdraft)
- interest bearing Rm 18 865 16 448
- non-interest bearing Rm 1 40
Borrowing costs capitalised Rm 1 116 1 105
Capital commitments 19 169 24 780
-------- -------
- authorised and contracted Rm 26 679 18 216
- authorised, not yet contracted Rm 7 740 14 397
- less expenditure to date Rm (15 250) (7 833)
-------- -------
Guarantees and contingent liabilities
- total amount Rm 33 122 25 835
- liability included on balance sheet Rm 11 230 9 759
Significant items in operating profit
- employee costs Rm 8 645 8 731
- depreciation of property, plant and Rm
equipment 3 591 4 723
- operating lease charges Rm 462 350
Directors' remuneration Rm 26 22
Share options granted to directors -
cumulative '000 1 205 1 451
Effective tax rate % 32,1 34,6
Employees number 30 004 30 910
Average crude oil price - dated Brent US$/barrel 46,17 31,30
Average rand/US$ exchange rate 1US$ = rand 6,21 6,88
----------------------------------------------------------------------
Reconciliation of headline earnings Rm Rm
----------------
Attributable earnings 9 573 5 940
Effect of capital items 1 275 27
Impairment of assets 1 078 342
Profit on disposal of assets ( 60) ( 341)
Scrapping of property, plant and equipment 290 26
Profit on sale of participation rights in GTL
project ( 33) -
Amortisation of goodwill - 21
Amortisation of negative goodwill - ( 225)
Tax effect on reconciling items ( 235) ( 65)
Deferred tax asset written off 122 -
----------------
Headline earnings 10 735 5 698
----------------
----------------------------------------------------------------------
Capital items included in operating profit Rm Rm
----------------
Mining ( 23) ( 17)
Synfuels 110 3
Liquid Fuels Business 63 -
Synfuels International ( 33) -
Olefins and Surfactants 783 21
Polymers 12 ( 59)
Solvents 382 18
Other ( 19) 61
----------------
1 275 27
----------------
The reader is referred to the definitions contained in the 2004
Sasol Limited annual financial statements.
Sasol Limited audited group results and declaration of dividend number
52 of Sasol Limited for the year ended 30 June 2005
divisional contributions and operating profit
for the year ended 30 June
2004 2005 2005 2004
----------------------------------------------------------------------
Turnover Business unit Operating profit
R million R million
----------------------------------------------------------------------
1 083 1 471 Mining 1 224 1 177
1 329 820 Synfuels 7 670 5 515
18 554 23 525 Liquid fuels business 1 963 1 429
1 389 1 408 Gas 932 387
7 - Synfuels International ( 232) ( 138)
17 133 18 040 Olefins & surfactants 562 ( 46)
6 576 7 199 Polymers 1 496 971
5 956 8 063 Solvents 1 625 135
8 124 8 713 Other 541 ( 89)
-------------------- --------------------
60 151 69 239 15 781 9 341
--------------------
Capital items (1 275) ( 27)
--------------------
14 506 9 314
--------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
Turnover Geographic analysis Operating profit
R million R million
----------------------------------------------------------------------
28 954 35 395 South Africa 12 236 8 505
3 062 2 553 Rest of Africa 536 204
15 632 17 145 Europe 1 486 591
3 509 3 840 Middle East, India, Far East 389 277
7 060 8 149 North America ( 221) ( 303)
723 760 South America ( 5) 4
1 211 1 397 Southeast Asia 85 36
-------------------- --------------------
60 151 69 239 14 506 9 314
-------------------- --------------------
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