Annual Financial Statements for the year ended 30 June 2021 0 - Book - Page 148
1
2
3
4
SASOL LIMITED COMPANY
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June
2021
Rm
1
2020
Rm
Investments
Investment in subsidiaries
Reflected as non-current assets
Shares at cost
Shareholder loan to subsidiary
Share-based payment expense
Impairment (net of reversals) of investment in subsidiary
Investment in security
157 992
525
7 004
(37 261)
132 206
525
7 589
(37 261)
128 260
103 059
8
8
Investments in subsidiaries increased due to additional investments in Sasol Investment Company (Pty) Ltd. Investments in
subsidiaries are accounted for at cost less impairment losses.
Impairment
The prior year impairment of R36,5 billion relates to the investment in Sasol South Africa Limited (SSA). Since the inception of
Sasol Khanyisa transaction an annual valuation of the Sasol South Africa Group is performed. For the main assumptions informing
the SSA valuation refer to note 10, page 73 of the Group Financial Statements. The investment in Sasol South Africa in the prior
year was written down to the fair value of the SSA Group. The fair value of Sasol South Africa decreased significantly as a result
of the impact of the lower oil price, depressed chemical market and the impact of COVID-19. The investment in the prior year was
impaired to a recoverable amount of R3,3 billion.
The valuation of the Sasol South Africa Group has increased in the current year due to economic recovery as well an improvement
in chemical prices and a higher demand for solvents and other chemical products. The higher valuation indicated a potential
reversal of the prior year impairment. The SSA valuation is extremely sensitive to macroeconomic changes, mainly oil price and
US$ exchange rate, (2021 – R33,0 billion; 2020 – R4,0 billion; 2019 – R121,4 billion). The prior impairment was therefore not
reversed due to the valuation sensitivity, uncertainty over the timing and extent of the continued price recovery.
2
2021
Rm
2020
Rm
46 877
46 877
7 883
57
8 622
17
54 817
(7 872)
55 516
(7 886)
Long-term receivables
Sasol South Africa Limited ¹
Sasol Khanyisa Fundco (RF) Ltd ²
Other
Total long-term receivables
Less: Expected credit loss ³
46 945
47 630
The long-term receivables are measured at amortised cost.
The long-term receivables consist of:
1)
Funding to Sasol South Africa Limited (SSA) to purchase the investment in Sasol Gas (Pty) Ltd. The loan attracts interest at 0%
and Sasol Limited has no intent of demanding payment in the next 12 months.
2) Loan to Sasol Khanyisa Fundco (Fundco) to fund the preference share subscription for the Khanyisa Public Participants. The
ability of Fundco to repay the loan is dependent on dividends received from SSA. The loan attracts interest at 75% of prime and
Sasol Limited has no intent of demanding payment in the next 12 months.
3) A specific expected credit loss of R7,7 billion was recognised on the Sasol Khanyisa Fundco long-term receivable. Refer to note 23
for details on expected credit loss calculation.
2021
2020
0,0%
5,3%
0,0%
5,4%
2021
Rm
2020
Rm
46 945
47 630
Interest-bearing status
Sasol South Africa Limited
Sasol Khanyisa Fundco (RF) Ltd
Maturity profile
More than five years
146
Sasol Annual Financial Statements 2021