Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 121
Note
2021
Rm
2020
Rm
2019
Rm
36.1
885
1 068
952
567
318
642
426
628
324
1 042
878
707
1 927
1 946
1 659
36 Share-based payment reserve
During the year, the following share-based payment expense was recognised
in the income statement relating to the equity-settled share-based payment
schemes:
Sasol Khanyisa Employee Share Ownership Plan (ESOP)
Tier 1 – Eligible Inzalo participants
Tier 2 – Qualifying employees
Long-term incentives
36.2
Equity-settled – recognised directly in equity
The Sasol Khanyisa share transaction
Sasol Khanyisa was implemented on 1 June 2018. Sasol Khanyisa has been designed to comply with the revised B-BBEE legislation in
South Africa and seeks to ensure on-going and sustainable B-BBEE ownership credentials for Sasol Limited.
Sasol Khanyisa contains a number of elements structured at both a Sasol Limited and at a subsidiary level, Sasol South Africa Limited
(SSA) which is a wholly-owned subsidiary of Sasol Limited and houses the majority of the group’s South African operations.
At the end of 10 years, or earlier if the underlying funding has been settled, the participants will exchange their SSA shareholding on
a fair value-for-value basis for SOLBE1 shares to the extent of any value created during the transaction term.
SOLBE1 shares can only be traded between Black Persons on the Empowerment Segment of the JSE. This transaction will therefore
ensure evergreen B-BBEE ownership credentials for Sasol Limited.
Remaining components of the transaction:
Tier 1 – Eligible Inzalo participants
Former Inzalo Employee Scheme participants, who were still actively employed by Sasol during May 2018 were granted rights in
SOL shares or SOLBE1 Shares, at no cost to them, to the value of R100 000, all of which vests after a three year service period. Black
employees were able to choose to receive the award in SOL or SOLBE1 shares, whilst employees who are not black people received an
award in SOL shares, as SOLBE1 shares may only be held by qualifying black people. Employees received dividends on these shares
throughout the 3 year vesting period. This award was recognised on a straight line basis over the three year vesting period.
The Tier 1 options vested on 1 June 2021. An amount of R1,9 billion was reclassified from the share-based payments reserve to
retained earnings upon vesting.
Qualifying black employees participate via the Khanyisa Employee Share Ownership plan (Khanyisa ESOP) through a beneficial
interest, funded wholly by Sasol (vendor funding), in approximately 9,2% in SSA. As dividends are declared by SSA, 97,5% of these
will be utilised to repay the vendor funding, as well as the related financing cost, calculated at 75% of prime rate. 2,5% of dividends
will be distributed to participants as a trickle dividend and accounted for as a non-controlling interest. At the end of the 10 year
transaction term, or earlier, if the vendor funding is repaid, the net value in SSA shares will be exchanged for SOLBE1 shares on a
fair value-for-value basis which will be distributed to participants. Any vendor funding not yet settled by the end of the transaction
term will be settled using the SSA shares, and will reduce any distribution made to participants. Since any ultimate value created for
participants will be granted in the form of SOLBE1 shares, the accounting for this transaction is similar to an option over Sasol shares
granted for no consideration.
SASOL LIMITED COMPANY
Tier 2 – SSA qualifying employees
OTHER
36.1
SASOL LIMITED GROUP
CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 30 June
NOTES TO THE FINANCIAL STATEMENTS
RESERVES
119
Sasol Annual Financial Statements 2021