HDSA PROCUREMENT

Encourage strategic partnerships between established white suppliers and BEE Encourage strategic partnerships between established white suppliers and BEE Mentorship and training programmes Mentorship and training programmes Using Sasol buying power by purchasing on behalf of BEE Using Sasol buying power by purchasing on behalf of BEE Operational business support through consultants hand holding Operational business support through consultants hand holding Channeling sufficient viable business to BEE’s Channeling sufficient viable business to BEE’s PROCUREMENT SUPPORT MEASURES PROCUREMENT SUPPORT MEASURES HIGHVELD BUSINESS DEVELOPMENT CENTRE (HBDC) - SUPPLIER DEVELOPMENT PROGRAMME

Develops and supports SMME’s to become independent businesses in SA economy Develops and supports SMME’s to become independent businesses in SA economy Holistic range of services Holistic range of services Training (past year 164 entrepreneurs) Training (past year 164 entrepreneurs) Develop and identify market opportunities Develop and identify market opportunities Linkages - R30 million business for 60 trained entrepreneurs Linkages - R30 million business for 60 trained entrepreneurs Database development Database development Access to finance Access to finance Interventions with banks and financial service providers Interventions with banks and financial service providers Limited bridging finance Limited bridging finance HIGHVELD BUSINESS DEVELOPMENT CENTRE (HBDC) HIGHVELD BUSINESS DEVELOPMENT CENTRE (HBDC)

HDSA PROCUREMENT % OF TOTAL SASOL LIQUID FUELS SPENT ON GOODS & SERVICES CURRENTLY  200 HDSA SUPPLIERS IN A WIDE RANGE OF DISCIPLINES Jan - Jun

SASOL’S BEE ACHIEVEMENTS AND FUTURE PLANS

CEPR pipeline gas business value - R165 million Mkumbi we Africa pipeline gas business venture in Mpumalanga Facilitated BEE participation in Black Top Holdings road binding venture Chemcity - Real Africa Investment Outsourcing of group information management systems to Comparex - R 1 billion over life of the agreement (10 years) Formation of Exel MacAdam road building franchise STRONG COMMITMENT TO BEE

DURBAN SOUTH PIPELINE GAS BEE VENTURE R165 million JV 51% CEPR 49% Sasol Gas m Black controlled (7 groups including disabled) m CEO: Manoj Gokul m Turnover: R120 million growing to R200 million in 2005 m Bulk of financing (90%) guaranteed by Sasol

BLACK TOP HOLDINGS - A SUCCESSFUL BEE VENTURE IN THE ROAD BUILDING INDUSTRY Black Top Holdings Employee Share Trust Corevalue Investment Holdings (Pty) Ltd Quickstep 21 (Pty) Ltd African Value Investment Holdings (Pty) Ltd Tosas (Pty) Ltd BTS Empowerment Consortium (BTSEC) (Pty) Ltd FounderMembers African Value Investment Holdings (Pty) Ltd Exel Petroleum (Pty) Ltd Black Top Holdings 18,2%25,2%13,2%18,2% 25,2% 31%30%10%29% TURNOVER:R400 MILLION OPERATING PROFIT:R30 MILLION EMPLOYEES: 780

NDVELA AT WORK BTH AT WORK

MACADAM FRANCHISE TEAM MADIBA’S ROAD

Turnover:R1.9 billion Operating profit:R40 million + Operating profit attributable to HDSA:R30 million + Diesel market share:7% Petrol market share:3% No of service stations:140 and growing Direct employment created Service stations:1,890 Service stations:1,890 Head Office:70 Head Office:70 TOTAL CAPITAL BASE:R220 Million EXEL’S SPECTACULAR GROWTH EXEL’S SPECTACULAR GROWTH THE MOST SUCCESSFUL BLACK OWNED PETROLEUM COMPANY IN RSA

EXEL SERVICE STATION EXEL SERVICE STATION

EXEL OWNERSHIP HDSA = 77.5% SASOL = 22.5% Forecourt attendants 13% Women { {

SASOL FACILITATED THE ESTABLISHMENT OF EXEL Financial support R Million Working capital R 80 Credit for product supply R 60 Loan for service station development R 30 Loan for equity stake in Black Top Holdings R 18 Loan guarantees for HDSA equity investments R100 Loan to NABFRA/Share Capital R 2 TOTAL FINANCIAL ASSISTANCE R290

Generation of revenue Sasol sold all its assets and business legally possible, to Exel Product supply agreement at favourable terms Product distribution agreement at favourable terms Technical support agreement SUPPORT PROVIDED TO EXEL

Knowledge and capacity transfer Secondment of Sasol staff Training of Exel management and board members Access to Sasol logistics network and information technology SUPPORT PROVIDED TO EXEL (Continued) HUNDREDS OF MILLIONS OF RANDS VALUE CREATED FOR EXEL SHAREHOLDERS

Challenging business environment (mature industry) Static market Declining nominal refinery margins Declining real marketing margins High capital expenditure Refinery upgrades for clean fuels Low returns Increased competition - Sasol’s market entry KEY CHALLENGES FOR THE FUTURE KEY CHALLENGES FOR THE FUTURE IS OUR INDUSTRY ATTRACTIVE ENOUGH FOR BLACK INVESTORS CONSIDERING OTHER, MORE LUCRATIVE INVESTMENT OPPORTUNITIES?

VARIOUS OPTIONS TO GROW BEE EXPLORED Grow Exel: wholesale and retail exposure only Equity participation in the refinery operations   limited access to market Equity participation in integrated liquid fuels business

THE ROAD AHEAD Sasol needs to restructure its liquid fuels business to allow BEE participation in the liquid fuels value chain But stay within the limitations and legal boundaries of its commercial agreements (2004) BEE VULNERABLE IF CONFINED TO ONLY CERTAIN SEGMENTS OF THE VALUE CHAIN

RESTRUCTURING OF SASOL LIQUID FUELS BUSINESS SASOL’S NEW LIQUID FUEL BUSINESS BEE COAL & GAS DERIVED FUELS COAL & GAS DERIVED FUELS CRUDE DERIVED FUELS TOTAL VALUE OF THE RESTRUCTURED SASOL LIQUID FUELS BUSINESS IS APPROXIMATELY R10 BILLION SASOL’S SHARE IN TOSAS & FFS MARKETING INFRASTRUCTURE

THE ROAD AHEAD: ACTIONS THE ROAD AHEAD: ACTIONS Appointed Nkonki Sizwe Ntsaluba and Investec Bank to assist with financing, structuring and partner selection Build on ICASA process Seek board approval for restructuring - November 2002 Established empowerment fund to finance BEE in Sasol’s liquid fuels business Launch: Q4, 2002

Sasol and its BEE partners revolutionising the South African fuel industry in 2004! KEA LEBOGA ENKOSISIYABONGA THANK YOU REACHING NEW FRONTIERS REACHING NEW FRONTIERS