Overview of Sasol Oil’s business and its Black Economic Empowerment (BEE) programme

1. Overview of Sasol Oil’s business and its Black Economic Empowerment (BEE) programme Presentation to members of Minerals and Energy PPC: 1 September 2006

2. Presentation Themes • Overview of Sasol Oil’s business • Progress on ownership, board representation and management control • Progress on employment equity • Progress on BEE procurement and enterprise development • Corporate social investment and skills development

3. Overview of Sasol Oil’s business

4. How was Sasol Oil structured? • Rationale: • Sasol Oil business was restructured and designed to give effect to the Liquid Fuels Charter requirements • Compete on an equal footing with the foreign owned oil companies’ businesses in South Africa • Restructuring was required: Liquid Fuels activities of Sasol Group at the time the Charter was signed Sasol Mining Sasol Synfuels Sasol Oil Natref shareholding Marketing Manufacturing Refining crude oil Chemical and fuel components MSA and Blue Pump Agreements Blending fuel components into final liquid fuel products

5. Salient features of CSA: An evergreen supply agreement dated July 2003 Sale of 100 000 barrels (bbls) per day of fuel components to produce final products Exclusive for the first 10 years Equivalent to a typical coastal crude oil refinery Sasol Oil owns the blending plant and storage facilities (Replacement value of +/-R1billion) This margin is referred to as the “Virtual Refinery Margin” Margin equivalent to that earned by a typical coastal refiner. Price paid for components is BFP – Discount (Virtual Refinery Margin) All components must be able to be blended to comply with product specifications (current and future) Essence of Component Supply Agreement (CSA)

6. What benefits does this arrangement have for Tshwarisano and Sasol? • A majority share in an inland refinery as well as earning a refining margin similar to that enjoyed by the businesses of the foreign owned oil companies in South Africa from CTL • Significant blending and integration of feedstock synergies are maintained between Sasol Synfuels and Sasol Oil’s share in Natref • Sasol can honour its commitments in terms of the charters for various sections of its businesses e.g. mining, liquid fuels, etc. and for the different empowerment partners for these businesses • The cost for a single empowerment grouping to acquire a meaningful stake across all of the Sasol businesses would be challenging

7. Sasol Oil salient features 75% Sasol Ltd & 25% Tshwarisano Joint Ventures: Natref, TOSAS, Exelem, NLF & PeSS Direct marketing through Sasol/Exel brands • >8,5 million m³ white fuel production capacity • 0,5 million m³ residual products production • Wholesale supply agreements • Sasol/Exel retail brands • Commercial marketing • Africa overland and deep sea exports Fuel Oil Sasol Oil Purchasing of synfuel fuel components & crude oil Marketed through Synfuels fuel components blending & storage activities Wholesale marketing to foreign owned and emerging companies and product trading

8. 19 153 Lp 41 Gt Mp NW 38 Natref (63.6%) FS KN 22 NC 33 13 EC WC 33 24 How successful has Sasol Oil been in establishing a marketing footprint? • Average throughput per service station • Industry 230 kl p.m. • Sasol 360 kl p.m. • Exel Franchised 258 kl p.m. • Exel dealer owned 138 kl p.m. • Market share of 8% in the retail market • # Sites • Sasol branded @ 163 • Exel branded @ 215 • Small share of the Commercial Market in RSA @ 6% Reasonable marketing success given market entry in January 2004

9. Sasol Group is a significant investor in SA As a South African company we: • contribute 4,4% of SA’s GDP • are the biggest industrial investor in SA • create wealth of R27 billion pa • create jobs for 140 000 South Africans • are the biggest private R&D spender in SA • have plans for further expansions in SA We invested 80% of our capital expenditure programme in SA during the last 2 years

10. Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J Company K Company L Company M Sasol How much tax do we pay? • We are South Africa’s biggest tax payer • Our effective tax rate is above average at 32% We are a major contributor to the fiscus

11. Foreign exchange saving of synfuel vs. alternate supply sources in South Africa Producer Price (BFP) Beneficiation of own resources saves more forex and diminishes supply risk much better than imports of either final product or crude oil

12. Energy security tops global agenda Projected demand Projected global oil supply shortfall requires alternatives SA imports a major portion of its crude, and an increasing portion of final product – we are exposed to supply vagaries caused by weather or war

13. There are alternatives to conventional oil proven reserves of fossil fuels will sustain the world only for a limited period at current production rates global distribution of coal reserves proven reserves to consumption ratio 6 nations in the world control 80% of the global coal reserves Sasol’s CTL and GTL technologies play a leading role in the future supply of global energy needs

14. 3.0 6.0 2.0 4.0 1.0 2.0 - - Billion Litres -1.0 -2.0 -2.0 -4.0 -3.0 -6.0 -4.0 -8.0 -5.0 -10.0 -6.0 -12.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Diesel Petrol White Product Kerosene Reliance on fuel imports growing in SA Projected SA* fuel supply/demand balance At 6% GDP growth assumptions • At 6% GDP growth • a 150 000bbl refinery is required by 2011 • fuel demand is projected to grow at more than 2,5% • first phase 10% expansion of synfuels included • SA importing fuel when the current account balance is already under pressure

15. Progress on ownership, board representation, management and control

16. Tshwarisano BEE transaction effective from 1 July 2006 Value of the transaction is R1.45 billion Largest BEE transaction in the liquid fuels industry in South Africa Ownership - 25% BEE ownership across value chain Broad-based - Direct beneficiaries include hundreds of thousands of historically disadvantaged South Africans Black women - More than 50% of the beneficiaries are black women Tshwarisano – Pulling together with our new empowerment partners 25% Equity

17. Tshwarisano shareholding structure PulaNala Lelethu Tswelopele Amandl’ Embokodo 5.1% 5.1% 5.1% 5.1% Ayabonga Oil Pty Ltd AKA Liquid Fuels Pty Ltd Batho Trust Former Exel (Powerlib) Shareholders Nozweni Auto workers Funds Phakisang Investments CEPPWAU Investment Ngazana Liquid Fuels Warehouse Trust 17.9% 5.1% 6.5% 1% 7.7% 20.3% 20.4% 5.6% 0.8% 14.7% 100% TSHWARISANO LFB SASOL LIMITED 25% 75% 100% SASOL OIL (PTY) LTD

18. Tshwarisano Profile • It is a broad-based BEE group consisting of: • +150 000 direct shareholders • + 2 800 000 indirect beneficiaries • The demographics of the group are: • 54% women • substantial rural representation • 3% youth • 2% disabled • This confirms the broad-base structure of Tshwarisano which will benefit a large number of disadvantaged South Africans “An enduring broad-based group with a significant proportion of women”

19. Sasol’s facilitation of BEE transaction • 25% BEE ownership and control of all facets of Sasol’s liquid fuels • Exercise full voting rights immediately • Senior debt R1.14 billion to be guaranteed by Sasol Sasol participated fully in financing mechanism

20. Scope of BEE transaction Sasol’s 64% interest in Natref refinery Depot network and other logistics Sasol Oil Crude Oil trading and shipping Wholesale, commercial & retail Fuel oil and Lubricants businesses Storage and dispatch of fuel components Sasol’s shares in TOSAS, Exelem, NLF & PeSS Synfuels fuel components sourcing and blending Participation in all facets of Sasol’s liquid fuels business

21. Tswarisano and board representation TSHWARISANO 3 directors All HDSA of which one woman SASOL OIL 3 executive directors One HDSA SASOL LIMITED 6 directors Three HDSA of which two women Full shareholder rights & 58% HDSA (25% women) on Board

22. Sasol Oil executive team Managing Director, Sasol Oil Ernst Oberholster GM, Manufacturing&Supply: Henri Loubser MD, Fuels Marketing: Maurice Radebe Manager, HR: Dawid Heymans Manager, Commercial Support & Compliance: Chris Venter Manager, Legal Services: Kate Farina Manager, Quality & Technology: Poovin Naidoo Manager, Finance: Feroza Syed GM, Natref: Oscar Volkwyn Manager, Strategic Planning: Johan Thyse 50% HDSA (20% women) who support and understand the spirit of the Charter

23. Progress on employment equity

24. Employment equity progress and targets Supervisory level and above *HDSA Target Number of employees * Excluding white women 68% of Sasol Oil’s TOTAL EMPLOYEES 80%(HDSA) / 60% (women) appointment policy

25. BEE participation in Sasol/Exel retail network % 46% HDSA (women = 12%) & 75% HDSA appointment policy

26. Progress on preferential procurement and enterprise development

27. Progress on preferential procurement (excl. crude) 34% 23% 6% 7% Exceeds Charter compliance

28. 48% of spot & 17% of total crude oil purchases Crude Oil BEE Procurement • Procures around 20 million bbls of crude oil p.a • 13 million bbls (65%) term crude from Saudi Arabia (ARAMCO) & Iran (NIOC) • 7 mil bbls (35%) bought on spot basis from countries like Nigeria, Angola, UAE. Oman and Yemen • For various reasons the ongoing term contracts with ARAMCO and NIOC do not provide room for meaningful BEE participation • Sasol Oil aims to achieve a target of 50% of its spot crude oil requirements from approved BEE crude suppliers

29. Empowering emerging fuel and gas wholesalers

30. Sasol’s Integrated Energy Centres (IeCs) • Private public partnership flagship • Objective = make energy accessible to rural communities • Product bouquet and services: • IP, candles, LPG, petrol and diesel & provide energy-related training and advisory services • Staff trained at our Sasolburg Academy & supplied with Sasol forecourt uniforms • Total investment of R15 million in IeCs located within government identified poverty nodes. • Caba Mdeni in the Eastern Cape • Laxey in the Northern Cape • Mutale in Limpopo • A fourth IeC will be developed in Makgobistad in the North-West Province • Sasol Oil board approved a further R8 million to continue expanding this initiative • Qunu in the Eastern Cape • Another in KwaZulu Natal

31. Corporate Social Investment and skills development – Sasol group perspective

32. Corporate Social Investment allocation – 2005/6

33. Skills development initiatives • Accelerated Leadership Development Programme • Develop Sasol’s new leadership To insert ALDP Picture • Placement of unemployed HDSA graduates

34. Investment in critical skills: science mathematics and technology Aim : to improve the performance of school learners in Mathematics, Science and Technology R74 m CSI R15 m Bursaries R30 m Sponsorship R6 m Sasol Research & Development R23 m • educator development • competitions • direct interventions with learners • creating infrastructure • resource provision • research • resource centres such as Osizweni & Boijhorisong Techno X Scifest

35. % % Demographic of Sasol Bursary Scheme Chemical Eng 57% Chemistry 46,2% Electrical Eng 75,1% Electronic Eng 63,6% Geology 66,7% Industrial Eng 40,9% Mechanical Eng 62,2% Mining Eng 55,6% Other 61.6% Overall 57% Male 63,3% Women 36,7% HDSA % Over 500 bursars 58% Black students 49,75% 14,25% 7,50% 5,25% 4,50% 5,50% 8,50% 1,50% 3,25% R 30 million to build the capacity

36. Pumping the economic transformation process THANK YOU Jointly we will “pull together” to grow the South African economy