Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 33
which we operate. Although we are a South Africandomiciled company and the majority of our operations
are located in South Africa, we also have significant
energy businesses in other African countries, chemical
businesses in Europe, the US, the Middle East and
Asia, a joint venture GTL facility in Qatar and joint
operations in the US and Canada.
noticed a worldwide trend of increased filing of patents
relating to the composition of product formulations and
the applications thereof. These patents may create
pressure on both Sasol and those of our customers who
market these product formulations which may
adversely affect our sales to these customers. These
patents may also increase our risk to exposure from
limited indemnities provided to our customers of these
products in case there is a patent infringement which
may impact the use of the product on our customers’
side. Patent-related pressures may adversely affect our
business, market reputation, operating results, cash
flows and financial condition.
In 2020, Sasol concluded divestments in South
Africa, Nigeria and USA. In 2021, Sasol concluded
divestments in the USA, Germany, Mozambique, South
Africa and Gabon.
For further discussion related to our countryspecific risk that could adversely affect our business,
operating results, cash flows and financial condition
refer to the following sections:
We believe that our proprietary technology,
know how, confidential information and trade secrets
provide us with a competitive advantage. A possible
loss of experienced personnel to competitors, and a
possible transfer of know-how and trade secrets
associated therewith, including the patenting by our
competitors of technology built on our know-how
obtained through former employees, may negatively
impact this advantage.
Similarly, operating and licensing technology
in countries in which intellectual property laws are not
well established and enforced may result in an inability
to effectively enforce our intellectual property rights.
The risk of some transfer of our know-how and trade
secrets to our competitors is increased by the increase
in the number of licences granted under our intellectual
property, as well as the increase in the number of
licensed plants which are brought into operation
through entities which we do not control. As
intellectual property warranties and indemnities are
provided under each new licence granted, the
cumulative risk increases accordingly. These risks may
adversely affect our business, operating results, cash
flows and financial condition.
•
“Item 4.B—Business overview—
Regulation—Empowerment of
historically disadvantaged South
Africans”;
•
“Item 4.B—Business overview—Legal
proceedings and other contingencies”;
•
“Item 4.B—Business overview—
Regulation—Safety, health and
environment”;
•
“Item 5.B—Liquidity and capital
resources”; and
•
“Item 10.D—Exchange controls”.
Particular aspects of country-specific risks that
may have a material adverse impact on our business,
operating results, cash flows and financial condition
include:
Risk related to geopolitical and stakeholder
relationships
(a) Political and socio-economic issues
i.
There are country-specific risks relating to the
countries in which we operate that could adversely
affect our business, operating results, cash flows and
financial condition
Political, social and economic uncertainty
We have invested, or are in the process of
investing in and/or divesting from, significant
operations in Southern African, European, North
American, Asian and Middle Eastern countries that
have in the past, to a greater or lesser extent,
experienced political, social and economic uncertainty.
Several of our subsidiaries, joint arrangements
and associates operate in countries and regions that are
subject to significantly differing political, social,
economic and market conditions. See “Item 4.B—
Business overview” for a description of the extent of
our activities in the main countries and regions in
In addition to severe negative COVID-19related economic impacts, South Africa faces ongoing
challenges in improving the country’s short- to long-
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