Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 40
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SASOL LIMITED GROUP
Report of the Remuneration Committee continued
Short-term incentive outcomes
The following table provides the outcomes against the 2021 group performance targets that were set for the STI plan:
ESG MEASURES
FINANCIAL
TRANSFORMATION
KPI – Key
Performance
Indicator
20%
Restructure of the
global organisation
enabling the new
operating model
and effective
implementation of
structures, processes
and governance
frameworks
Weightings: Threshold
GEC
(Rating = 0%)
Filling of at least
80% of positions
in GEC 3 by
28 February 2021
Filling of at least
80% of positions
in GEC 3 by 31
December 2020
4,5%
Filling of at least
80% of positions
in GEC 4+ by
30 June 2021
Filling of at least
80% of positions
in GEC 4+ by 30
April 2021
Longer term Cost
Reduction Plans
4,0%
Sustainable free
cash flow target
for FY22-FY25
approved in May
2021 Board cycle
Sustainable free
cash flow target
for FY22-FY25
approved in Feb
2021 Board cycle
Sales
Volumes
Sales volumes¹
12,5%
2% below
budgeted sales
volumes
Cash cost
optimisation
Absolute Cash Fixed
Costs (CFC)2, 3
15%
Capital
deployment
Capital expenditure3
Asset
disposals
Working
capital
Stretch
(Rating = 150%) Achievement
Weighted
Achievement
Qualitative
assessment by
the Remcom
on how well
Sasol 2.0 was
executed across
all areas of the
operation and
contributed
to improved
liquidity7
89%
placements by
31/12/2020
6,00%
>80%
placements by
30/04/2021
6,75%
Approved in
November
2020
6,00%
Budget sales
volumes
2% above
budgeted sales
volumes
5% below
budget
0,00%
FY21 Budget CFC
+ R2bn
FY21 Budget CFC =
R60,5bn
FY21 Budget CFC
– R2bn
R5bn below
budget
22,50%
15%
Capital
expenditure =
R22bn
Capital
expenditure =
R20bn
Capital
expenditure =
R18bn
R3,6bn below
budget
22,50%
Deliver asset
disposals
15%
FY21 = $1,5bn
Target for
FY21 = $2,5bn
FY21 = $3,5bn
Total SPAs6
signed of
US$3,6bn
22,50%
Net Working Capital
to Turnover
10%
NWC% = 17%
NWC% = 15%
NWC% = 12%
14,5%
10,83%
9,38%
7,50%
FERs = 20
3,75%
High severity injury
(HSI) rate
5%
HSI rate = FY20
30%
20% improvement
improvement
on the FY20 HSI
on the FY20 HSI
rate (from 17,13
rate (from 17,13
to 14)
to 12)
Significant fires,
explosions and
releases (FERs)
5%
FERs ≥ 23
FERs = 19
FERs ≤ 17
Deliver the 2030
GHG Emission
Reduction
Roadmap (ERR)
by 30 September
2020 (5%)
Deliver the 2030
GHG Emission
Reduction
Roadmap (ERR)
by 30 September
2020 + Energy
efficiency
improvement
from FY20 to FY21
= 1% (5%)
1. 2030 GHG
Deliver the
Road map
2050 Long-Term
delivered (5%)
ambition and
road map (2%)
2. Energy
Efficiency:
Deliver the
0,4% (2,2%)
600 MW
renewables
3. 2050 LT
business
ambition
construct (3%)
delivered (2%)
Environment
and Safety
Climate change
programmes4
100%
Target
(Rating = 100%)
4,0%
Sasol of the
12.5% Future
(Sasol 2.0)
67.5%
Unit of Measure
10%
11,17%
4. Business
construct
partly
achieved –
contracts not
yet negotiated
(2%)
(3,00%)
Safety adjustment5 – penalty for fatalities
116,50% (out of a maximum of 150%)
Final score7
1. Group consolidated/external sales volumes in fuel equivalent tonnes. Adjusted for any disposals, acquisitions, or other events impacting sales volumes
outside of management’s control. Including external coal sales at Mining.
2. Normalised for the impact of the exchange rate (R337m), the maximum price ruling on gas (R367m) asset disposals not in the budget (–R1 307m), once off
exceptional items such as the workforce transitioning costs (R965m), disposal costs (R863m) and the costs related to a potential Rights Issue (R602m).
3. Excluding growth cost (i.e. LCCP).
4. Achievement of all objectives linked to the delivery of our GHG emission reduction roadmap.
5. Penalty applied for fatalities of 3 percentage points deducted from final score for every fatality up to 20% maximum penalty.
6. Sales and Purchase Agreements.
Note 7:The Committee has considered the excellent outcomes of the Sasol 2.0 programme considering the scale and complexity of the global group
restructuring and the avoidance of a Rights Issue which would have been extremely dilutive to shareholders. The Sasol 2.0 global restructuring
was completed in record time with mostly improved diversity statistics despite the reduction in headcount. Management also endeavoured
to save as many jobs as possible through the restructuring process and the majority of severances were through the voluntary process. The
Committee therefore agreed to award the maximum outcome of 150% on the three Sasol 2.0 measures, increasing the total score from 110,25%
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Sasol Annual Financial Statements 2021