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7 Sasol South Africa (Pty) Ltd Directors' report The directors have pleasure in presenting their report for the year ended 30 June Nature of business The main business of the company is focused on integrated petrochemicals, energy and all such other things as may considered to be incidental or conducive to the attainment and support of the main business. The principal activities of the company have remained unchanged during the year. Financial results Loss attributable to shareholders for the year ended 30 June 2016 was R2 661 million which is lower than the attributable earnings at 30 June 2015 of R million mainly due to remeasurement items of R million, further explained in note 36. The financial statements set out the financial position, results of operations and cash flows for the company for the year ended 30 June Dividends An interim dividend of R2 978 million (2015- R7 800) was paid. The final dividend declared in respect of the year ended 30 June 2016 was R Nil (2015- R ). The total dividends paid during the year amounted to R2 978 million (2015- R ). The Board of directors is satisfied that the liquidity and solvency of the company, as well as capital is sufficient to support the current operations and to facilitate future development of the business. The number of issued no par value ordinary shares has increased from 166 to refer note 37. Directors The directors in office during the year were: Name Fleetwood Rawstorne Grabler (Chairman) Louis Josephus Fourie Bradley Vernon Griffith Vuyo Dominic Kalila Rightwell Mzimkhulu Laxa Francois Ernst Johannes Malherbe Bongani Nqwababa Thomas O'Brien John Sichinga Marinus Sieberhagen Appointed 24/10/ /11/ /11/ /03/ /11/ /11/ /03/ /11/ /04/ /11/2014 Auditors PricewaterhouseCoopers Inc ("PwC") was the external auditor of Sasol South Africa (Pty) Ltd for the financial year ended 30 June At the annual general meeting of Sasol Limited on 25 November 2016, PWC was reappointed as auditor of Sasol South Africa (Pty) Ltd and it was noted that Mr P Hough will be the individual responsible for performing the functions of the auditor, following the Audit Committee's decision to nominate the firm PWC as its independent auditor for the financial year commencing 1 July Subsequent events Sasol South Africa (Pty) Ltd acquired the Sasol Technology business and Sasol Gas (Pty) Ltd on 1 July 2016 and 30 June 2017 respectively as part of the Sasol group legal structuring intiatives -refer note 48. 7

65 Sasol South Africa (Ptv) Ltd notes to the financial statements for the year ended 30 June Note Rm Rm 47 Related party transactions (continued) Amounts reflected as non-current liabilities Long-term debt fellow subsidiaries Sasol Financing (Pty) Ltd Sasol Oil (Pty) Ltd Amounts reflected as current liabilities Short-term debt fellow subsidiaries Sasol Financing (Pty) Ltd Subsidiaries SMI Technology (Pty) Ltd* Price's Candles (Pty) Ltd Peroxide Chemicals (Pty) Ltd Durapenta Natal (Pty) Ltd 7 7 Recycling Plastics (Pty) Ltd 5 5 Sasol Nitro (Minerals) (Pty) Ltd Payables to fellow subsidiaries Sasol Mining (Pty) Ltd Other (less than R1 billion) Payables to subsidiary Sasol Acrylates (South Africa) (Pty) Ltd Payables to joint venture Sasol Dyne Mobel (Pty) Ltd ** * Renamed to Sasol General Holdings (Pty) Ltd on 06 July ** Includes R826 million (2015:R753 million) owed to Sasol Technology (Pty) Ltd, included in capital related payables. Amounts due to and from related parties are included in the respective notes to the financial statements for those statement of financial position items. 48 Subsequent events Sasol South Africa (Pty) Ltd acquired the Sasol Technology business and Sasol Gas (Pty) Ltd on 1 July 2016 and 30 June 2017 respectively as part of the Sasol group legal structuring intiatives. 49 Consolidated annual financial statements Consolidated annual financial statements have not been presented as the company is a wholly owned subsidiary of Sasol Limited, a company incorporated and domiciled in the Republic of South Africa. 50 Ultimate holding company The ultimate holding company of Sasol South Africa (Pty) Ltd is Sasol Limited, incorporated and domiciled in the Republic of South Africa. 51 Going concern The directors' have made an assessment of the company's ability to continue as a going concern and there is no reason to believe the business will not be a going concern in the year ahead. 65

74 Sasol South Africa (Pty) Ltd Other disclosures Contingent liabilities Litigation Abuse of dominance Investigation - Sasol South Africa (Ply) Ltd (then Sasol Chemical Industries (Ply) Ltd (SCI) and Sasol Synfuels (Ply) Ltd), Sasol Oil (Pty) Ltd and Sasol Limited In November 2011, Safripol (Ply) Ltd (Safripol) initiated a complaint with the Commission against SCI. In the complaint, Safripol alleged that SCI had contravened various sections of the Competition Act with regard to pricing and supply of propylene and ethylene. Safripol subsequently withdrew the complaint. However, the Commission elected to continue with its investigation into the matter. The Commission alleges that Sasol engaged in the following conduct: -Excessive pricing of propylene and ethylene required by Safripol; -Constructive refusal to supply scarce goods (namely propylene and ethylene); -Margin squeezing in respect of the supply of propylene and polypropylene; and -Price discrimination in relation to the sale of propylene and ethylene. The Commission stated that as the alleged conduct relates to pricing of inputs and may be linked with the pricing and supply of feedstock propylene and ethylene, their investigation extends to Sasol Limited, Sasol Oil, Sasol Synfuels and then SCI. The period under investigation is from 2008 to date. On 22 December 2014, the Commission issued summons against employees of SCI, Synfuels, Sasol Oil and Sasol Limited whereby the Commission sought copies of documents and information from the employees. The responses in respect of all four summonses were submitted to the Commission on 31 March The Commission has made subsequent requests for information and Sasol continues to submit the required information to the authorities and to engage with the Commission in this regard. The outcome of this matter cannot be estimated at this point in time and accordingly, no provision was recognised at 30 June Construction disputes - Fischer Tropsch Wax Expansion Project in Sasol burg (FTWEP) After the conclusion of construction of FTWEP at the Sasol One site in Sasolburg, a number of contractual claims have been instituted by some contractors who were involved in the construction and project management relating to this project. Certain of these claims have already been resolved, either through settlement between the parties or through the contractual dispute resolution process. Two larger matters are still ongoing. The claimants are Fluor SA (Ply) ltd and Wetback Contracts (Pty) Ltd. Fluor SA (Ply) Ltd - FTWEP Fluor claimed an additional amount of R485,7 million, plus interest (R83,6 million up to May 2015). This dispute turns on the nature and quantification of Fluor's alleged entitlement to a change to the prices and completion dates for delayed access. In June 2015, Fluor referred the claim to adjudication. In September 2015 the adjudicator rejected Fluor's entire claim. Thereafter, Fluor notified Sasol of its dissatisfaction with the outcome of the adjudication and Fluor's intention to refer the matter to arbitration. The parties are engaging in relation to the appointment of an arbitrator in terms of the dispute resolution provi'3ionc; of the contrnd. Sa'3ol be!ij:>v1:1s that F!uor's d8im i'3 not juc;tifil:!d. Ar/'.ordlng!y, no provic;ion was re ogriis rl at 30.J1m1: Wetback Contracts (Ply) Ltd - FTWEP Wetback instituted a claim of R634,2 million for additional compensation. Sasol submitted three counterclaims with an aggregate value of R229,2 million. The matter has been referred to arbitration. The hearing of this dispute commenced on 9 May During the first two weeks of the hearing, Sasol successfully applied for the separation of certain key issues relating to the interpretation of the contract to be decided before the remainder of the merits of the matter can be heard. This successful separation of issues dictates the framework within which the matter will proceed and is expected to curtail the extent of the arbitration hearing. During May 2016, the Arbitrator issued a directive on certain of the separated issues. His directive supported the Sasol position on these issues. Subsequently, Wetback has referred its claim for Arbitration. Wetback commenced with their case during the arbitration hearing that took place from 5 to 14 December Further evidence was lead by Wetback during the hearing in February Sasol commenced with presenting its case during the further hearings in February and March 2017.The next hearings on the matter have been set down for the last week of May 2017 and the first week of June After conclusion of all the evidence, the Independent Expert appointed by the Arbitrator has to present his report. Once that is completed, the final hearing will be scheduled for closing arguments whereafter the arbitrator will issue the final decision in the matter. Sasol believes that Wetback's claim is not justified. Accordingly, no provision was recognised at 30 June Other From time to time, Sasol South Africa (Ply) Ltd companies are involved in other litigation, tax and similar proceedings in the normal course of business. A detailed assessment is performed on each matter and a provision is recognised where appropriate. Although the outcome of these proceedings and claims cannot be predicted with certainty, the company does not believe that the outcome of any of these cases would have a material effect on the group's financial results. 74

National Treasury Presentation to the Standing Committee on Finance: South African Airways SOC Ltd ( SAA )

National Treasury Presentation to the Standing Committee on Finance: South African Airways SOC Ltd ( SAA ) Presenter: National Treasury 18 November 2015 90 day Action Plan In November 2014, the Ministers