SIPBEE: SASOL INZALO PUBLIC (RF) LIMITED - Summary consolidated financial statements for the year ended 30 June 2017

SIPBEE: SASOL INZALO PUBLIC (RF) LIMITED - Summary consolidated financial statements for the year ended 30 June 2017
Summary consolidated financial statements for the year ended 30 June 2017

Sasol Inzalo Public (RF) Limited (Incorporated in the Republic of South Africa)
(Registration number 2007/030646/06)
Sasol Inzalo Public Ordinary Share code: JSE: SIPBEE
Sasol Inzalo Public Ordinary ISIN: ZAE000210050
("Sasol Inzalo Public" or "Company")

Summary consolidated financial statements for the year ended 30 June 2017

Sasol Inzalo Public (RF) Limited and Sasol Inzalo Public Funding (RF) (Pty) Ltd (the group) forms part of Sasol
Limited's 2008 broad-based BEE ownership transaction equal to approximately 10% of its issued share capital. The group
owns approximately 16.1 million preferred ordinary shares in Sasol Limited representing approximately 2,37% of Sasol Limited's issued
share capital.

The main business of the group is to acquire and hold shares in Sasol Limited on behalf of the members of the black
public.

Financial overview

The Sasol Inzalo share transaction will unwind in 2018. Sufficient cash is expected to be generated out of the dividends
that will be received from Sasol Limited in the period until termination of the scheme, to pay for the operating
expenses as well as preference dividends and a portion of the capital repayments on the preference shares which are due.

The group will be required to dispose of the preferred ordinary shares in order to be in a position to redeem the
preference share funding and cumulative dividends in 2018. Any shortfall in the value of the preferred ordinary shares
held by the group will be made good through a subscription of shares by Sasol Limited in the group. The investment in
Sasol Limited was revalued at the closing market price of R366,50 (2016: R397,17) per Sasol Limited ordinary share as at
30 June 2017, to a value of R5 895 million (2016: R6 388 million) in line with the group's accounting policy for
investments classified as available-for-sale financial assets. Based on the closing Sasol share price of R389 on
4 September 2017 and preference share funding balances at 31 August 2017, there is a shortfall of approximately
R1,2 billion, and as a result there will be no distribution of shares to Sasol Inzalo Public funded participants when the
transaction ends in 2018.

The group recorded a net loss for the year ended 30 June 2017 of R106 million (2016: R95 million). This was mainly as a
result of an increase in finance costs of R21 million, partly offset by higher operating costs of R9 million in 2016
relating to the listing of shares on the JSE.

Key financial highlights

How we use our cash

2017 2016
Dividend received 495 495
Operating activities 2 17
Repayment of capital and finance costs 494 507
Utilised from cash (2) (21)
Sasol Limited loan funding - (9)
Taxation paid 1 1
495 495

Listing of Sasol Inzalo ordinary shares

On 1 December 2015 Sasol Inzalo Public (RF) Limited was listed on the JSE Limited's BEE Segment.

The listing provides existing and prospective shareholders with access to a licensed trading platform and the
flexibility of transacting on a world-class stock exchange. This listing continues to ensure that Sasol Inzalo Public
ordinary shares are traded exclusively amongst BEE compliant persons, as defined in the JSE Listings Requirements. Refer
to Table 1 for historical listed prices per share of Sasol Inzalo Public (RF) Limited ordinary shares at 30 June:

Table 1: Sasol Inzalo Public (RF) Limited ordinary shares

Listed price per share 2009* 2010* 2011* 2012** 2013** 2014** 2015** 2016*** 2017***
year end n/a n/a n/a 40,00 51,06 138,00 70,11 39,70 42,10
year high - - - 50,00 100,00 160,00 153,00 51,90 42,10
year low - - - 25,00 30,02 45,10 60,00 21,60 42,10

Table 2: Sasol Limited ordinary shares

Listed price per share 2009 2010 2011 2012 2013 2014 2015 2016 2017
year end 269,98 274,60 355,98 342,40 431,54 632,36 450,00 397,17 366,50
year high 454,00 318,00 403,55 409,99 452,96 645,10 642,72 492,50 430,98
year low 221,00 255,56 270,03 303,45 336,00 420,00 365,10 358,79 357,00

* Not applicable as prior to 8 September 2011, the shares had not yet started trading.
** Sasol Inzalo Public (RF) Limited's shares started trading over-the-counter through Computershare on 8 September 2011.
*** Sasol Inzalo Public (RF) Limited's shares were listed on the JSE Limited's BEE Segment on 1 December 2015.

Subsequent events

The Sasol Inzalo share transaction will come to an end in 2018 and separately the proposed new B-BBEE ownership
structure, Sasol Khanyisa, will be implemented. Refer to the announcement released by Sasol on 20 September 2017 for
details of the new transaction.

Directors

The composition of the Board of Directors is set out in the section "Our Board of Directors" of the Integrated Report
(including Notice of Annual General Meeting). Ms CK Mokoena resigned as chairman of the Board and an independent
Non-executive Director with effect from 31 January 2017. The Board appointed Ms Z Monnakgotla as interim chairman with
effect from 1 February 2017 and chairman with effect from 16 March 2017.

Declaration of cash dividend

Taking into account the continued decline in the value of the investment in Sasol Limited due to the low oil price and
the volatile macro-economic environment, the Board of Directors has seen it prudent to conserve cash and have concluded
that no cash dividend should be declared for the year ended 30 June 2017 (2016: Rnil).

The summarised financial statements are presented on a consolidated basis.

Statement of financial position

at 30 June

Group
2017 2016
Rm Rm
ASSETS
Investment in security 5 895 6 388
Non-current assets 5 895 6 388
Current asset
Cash 21 20
Total assets 5 916 6 408
EQUITY AND LIABILITIES
Shareholders' deficit (1 444) (955)
Long-term debt 7 205 7 101
Deferred tax liability 2 112
Non-current liabilities 7 207 7 213
Short-term debt 142 145
Other payables 11 5
Current liabilities 153 150
Total equity and liabilities 5 916 6 408

Income statement
for the year ended 30 June

Group
2017 2016
Rm Rm
Other expenses (8) (17)
Operating loss (8) (17)
Net finance costs (97) (77)
finance income 498 497
finance costs (595) (574)

Loss before tax (105) (94)
Taxation (1) (1)
Loss for year (106) (95)

Per share information Rand Rand
Basic loss per share (6,59) (5,91)
Diluted loss per share (6,59) (5,91)

Statement of comprehensive income
for the year ended 30 June

Group
2017 2016
Rm Rm
Loss for year (106) (95)
Other comprehensive loss, net of tax
Items that can be subsequently reclassified to the income statement (383) (710)
Fair value of investment available-for-sale (493) (850)
Tax on items that can be subsequently reclassified to the income statement 110 140

Total comprehensive loss for year (489) (805)

Statement of changes in equity

for the year ended 30 June

Group
Share capital and share Investment fair value Accumulated loss Total shareholders'
premium reserve deficit
Rm Rm Rm Rm
Balance at 30 June 2015 371 1 099 (1 620) (150)
Total comprehensive loss - (710) (95) (805)
for year
Balance at 30 June 2016 371 389 (1 715) (955)
Total comprehensive loss - (383) (106) (489)
for year
Balance at 30 June 2017 371 6 (1 821) (1 444)

Statement of cash flows
for the year ended 30 June

Group
2017 2016
Rm Rm
Cash utilised in operating activities (2) (17)
Finance income received 498 497
Finance costs paid (157) (219)
Tax paid (1) (1)
Cash generated by operating activities 338 260
Repayment of capital (95) (95)
Repayment of capitalised finance costs (242) (193)
Loan raised - 9
Cash effect of financing activities (337) (279)
Increase/(decrease) in cash 1 (19)
Cash at beginning of year 20 39
Cash at end of year 21 20

Long-term debt

The group's borrowing powers are restricted by its memorandum of incorporation.

Group
Security/ Interest rate at 2017 2016
Terms of repayment Guarantee Currency 30 June 2017 Rm Rm
Secured debt
A preference shares repayable in semi-annual instalments by Secured by Sasol preferred ordinary shares Rand Fixed 11,1% 926 1 024
September 2018 held by the company
B preference shares repayable in September 2018 Secured by Sasol preferred ordinary shares Rand Fixed 13,3% 790 791
held by the company
C preference shares repayable in September 2018 Guarantee by Sasol Limited Rand Variable 68% of 5 626 5 429
prime
Unsecured debt
Sasol Limited interest-free loan repayable in September 2018(1) Rand 9 9
Non-participating preference share(2) Rand * *
Unamortised loan costs (amortised over period of debt using the Rand (4) (7)
effective interest rate method)
7 347 7 246
Repayable within one year included in short-term debt Rand (142) (145)
7 205 7 101

* Less than R500 000.
(1) An unsecured interest-free loan was obtained from Sasol Limited for the purpose of paying for costs associated with the listing of the BEE shares
of the company on the JSE Limited's BEE Segment on 1 December 2015.
(2) One 'A' ordinary share of R0,01 was issued to Sasol Limited during the period ended 30 June 2008. The rights to this share provide that immediately
when any ordinary share is issued, it is converted to a preference share. As a result of the ordinary shares issued during the year ended 30 June 2009,
the share was converted to a preference share. The preference share will be entitled in the aggregate to a dividend of R1,00 immediately prior to
redemption, on 8 September 2018, and to redemption proceeds of R0,01.

Basic loss per share

Basic loss per share is derived by dividing loss for the year by the weighted average number of shares.

Number of shares Number of shares
Weighted average number of shares 16 085 199 16 085 199

Rm Rm
Basic loss for the year (106) (95)

Rands per share Rands per share
Basic loss per share (6,59) (5,91)

Due to the nature of the business, no potential dilution of shares exist and no headline earnings adjustments have
arisen over the last two years.

Basis of preparation

The summarised consolidated financial statements are prepared in accordance with the JSE Listings
Requirements for summary financial statements, and the requirements of the Companies Act applicable to summary financial
statements. The JSE requires summary financial statements to be prepared in accordance with the framework concepts and
the measurement and recognition requirements of International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board, the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum,
contain the information required by IAS 34, Interim Financial Reporting.

The summarised consolidated financial statements do not include all the disclosure required for complete annual
financial statements prepared in accordance with IFRS as issued by the International Accounting Standards Board. These
summarised consolidated financial statements have been prepared in accordance with the historic cost convention except
that certain items, including available-for-sale financial assets, are stated at fair value. The summarised consolidated
financial statements are presented in South African rand, which is Sasol Inzalo Public (RF) Limited's functional and
presentation currency. The accounting policies applied in the preparation of these summarised consolidated financial
statements are in terms of IFRS and are consistent with those applied in the consolidated annual financial statements
for the year ended 30 June 2016. The summarised consolidated financial statements appearing in this announcement are the
responsibility of the directors. The directors take full responsibility for the preparation of the summarised
consolidated financial statements. Sharika Balram CA(SA), Senior Manager: Financial Control Services, is responsible for
this set of summarised consolidated financial statements and has supervised the preparation thereof in conjunction with
the Senior Accountant: Financial Control Services, Loyd Matsilele CA(SA).

Going concern

The group incurred a net loss of R106 million for the year ended 30 June 2017. The Sasol Inzalo share transaction will
unwind in 2018. Sufficient cash is expected to be generated out of the dividends that will be received from
Sasol Limited in the period until termination of the scheme, to pay for the operating expenses as well as preference
dividends and a portion of the capital repayments on the preference shares which are due.

The group will be required to dispose of the preferred ordinary shares in order to be in a position to redeem the
preference share funding and cumulative dividends in 2018. Any shortfall in the value of the preferred ordinary shares
held by the group will be made good through a subscription of shares by Sasol Limited in the group. Based on the closing
Sasol share price of R389 on 4 September 2017 and preference share funding balances at 31 August 2017, there is a
shortfall of approximately R1,2 billion, and as a result there will be no distribution of shares to Sasol Inzalo Public
funded participants when the transaction ends in 2018.

The directors have made an assessment of the group's ability to continue as a going concern until termination date, and
there is no reason to believe the business will not continue until the transaction unwinds.

Related party transactions

The group, in the ordinary course of business, entered into various sale and purchase transactions on an arm's length
basis at market rates with related parties.

Financial instruments

Fair value

Various valuation techniques and assumptions are utilized for the purpose of calculating fair value.

The Group does not hold any financial instruments traded in an active market, except for the investment in listed equity
instruments. Fair value is determined using valuation techniques as outlined below. Where possible, inputs are based on
quoted prices and other market determined variables.

Fair value hierarchy

The following table is provided representing the assets and liabilities measured at fair value at reporting date, or for
which fair value is disclosed at reporting date.

The calculation of fair value requires various inputs into the valuation methodologies used.

The source of the inputs used affects the reliability and accuracy of the valuations. Significant inputs have been
classified into the hierarchical levels in line with IFRS 13, as shown below.

There have been no transfers between levels in the current year. Transfers between levels are considered to have
occurred at the date of the event or change in circumstances.

Level 1 Quoted prices in active markets for identical assets or liabilities.

Level 3 Inputs for the asset or liability that are unobservable.

Fair
IFRS 13 value
Instrument fair value hierarchy Rm Valuation method Significant input
Investments in listed securities Level 1 5 895 Quoted market price for the same instrument Quoted market price for the same instrument
Unlisted long-term debt Level 3 7 412 Discounted cash flow Market related interest rates

Independent auditor's report on the summary consolidated financial statements

To the Shareholders of Sasol Inzalo Public (RF) Limited

Opinion

The summary consolidated financial statements of Sasol Inzalo Public (RF) Limited, set out on pages 20 to 25 of the
Sasol Inzalo Public (RF) Limited Integrated Report (including Notice of Annual General Meeting), which comprise the
summary consolidated statement of financial position as at 30 June 2017, the summary consolidated income statement, the
summary consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, and
related notes, are derived from the audited consolidated financial statements of Sasol Inzalo Public (RF) Limited for
the year ended 30 June 2017.

In our opinion, the accompanying summary consolidated financial statements are consistent, in all material respects,
with the audited consolidated financial statements, in accordance with the JSE Listings Requirements for summary
financial statements, as set out in the "Basis of preparation" section on page 24 to the summary consolidated financial
statements, and the requirements of the Companies Act of South Africa as applicable to summary financial statements.

Summary consolidated financial statements

The summary consolidated financial statements do not contain all the disclosures required by International Financial
Reporting Standards and the requirements of the Companies Act of South Africa as applicable to annual financial
statements. Reading the summary consolidated financial statements and the auditor's report thereon, therefore, is not a
substitute for reading the audited consolidated financial statements and the auditor's report thereon.

The audited consolidated financial statements and our report thereon

We expressed an unmodified audit opinion on the audited consolidated financial statements in our report dated
21 September 2017.

Director's responsibility for the summary consolidated financial statements

The directors are responsible for the preparation of the summary consolidated financial statements in accordance with
the requirements of the JSE's Listings requirements for summary financial statements, set out in the "Basis of preparation"
section on page 24 to the summary consolidated financial statements, and the requirements of the Companies Act of South
Africa as applicable to summary financial statements.

Auditor's responsibility

Our responsibility is to express an opinion on whether the summary consolidated financial statements are consistent, in
all material respects, with the audited consolidated financial statements based on our procedures, which were conducted
in accordance with International Standard on Auditing (ISA) 810 (Revised), Engagements to Report on Summary Financial
Statements.

Other matter

We have not audited other non-financial information and information not required by International Financial Reporting
Standard, (IAS) 34, Interim Financial Reporting, expressed by the directors in the accompanying summary consolidated
financial statements and accordingly do not express an opinion thereon.

PricewaterhouseCoopers Inc.

Director: M Naidoo

Registered Auditor

Sunninghill

21 September 2017

CONTACT INFORMATION

Shareholder helpline

Assistance with Shareholder and AGM queries

Call Centre: 0800 000 222

Telephone: +27 (0)11 370 5000

Telefax: +27 (0)11 688 5238

Email: sasolinzalo@computershare.co.za

Assistance with forms of proxy

Call Centre: 0800 000 222

Telephone: +27 11 370 5000

Email: sasolinzalo@computershare.co.za

Share registrars

Computershare Investor Services Proprietary Ltd

Rosebank Towers

15 Biermann Avenue

Rosebank, 2196

South Africa

PO Box 61051

Marshalltown, 2107

Republic of South Africa

Telephone: +27 11 370 5000

Email: sasolinzalo@computershare.co.za

Directors (Independent Non-executive)

Ms Z Monnakgotla (Chairman)

Ms T Boikhutso

Ms A Haroon

Dr S Koyana

Ms Z Malinga

Ms N Manyika

Ms K Njobe

Company Secretary

Sasol South Africa Proprietary Limited

Company registration number

2007/030646/06, incorporated in the Republic of South Africa

Income tax reference number

9261678164

Sasol Inzalo ordinary shares

Share code: SIPBEE

ISIN: ZAE000210050

Sasol contacts

Business address and registered office

Sasol Place

50 Katherine Street

Sandton

Johannesburg, 2196

Republic of South Africa

Postal and electronic addresses

and telecommunication numbers

PO Box 5486

Johannesburg, 2000

Republic of South Africa

Telephone: +27 (0)10 344 5000

Telefax: +27 (0)11 788 5092

Website: www.sasolinzalo.com

JSE Sponsor

Deutsche Securities (SA) Proprietary Limited

22 September 2017

Sandton

Date: 22/09/2017 10:11:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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information disseminated through SENS.

Date: 
Friday, September 22, 2017