Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 78
that consider current market and contractual prices for
the underlying financial instruments or commodities, as
well as the time value and yield curve or fluctuation
factors underlying the positions. Pricing models and
their underlying assumptions impact the amount and
timing of unrealised gains and losses recognised, and
the use of different pricing models or assumptions
could produce different financial results. Refer to
“Item 11—Quantitative and qualitative disclosures
about market risk”.
Net cash received
from/(used in)
investing activities
Net cash (used
in)/generated by
financing activities
25 112
23 131
2021
2020
2019
(Rand in millions)
45 114
42 384
51 398
(5 280)
(5 659)
(3 946)
(46)
(31) (9 952)
Operating activities
Cash generated by operating activities in 2021
increased by 6% to R45 114 million, largely
attributable to the business improvement efforts, such
as our comprehensive response plan and Sasol 2.0.
For information regarding our funding cash
flows and liquidity, refer “Item 18—Financial
Statements—Note 17 Long-term debt, Note 18 Leases,
and Note 19 Short-term debt” which includes an
overview of our banking facilities and debt
arrangements.
For further information regarding our cash
flow generation, refer “Integrated Report—
Performance Overview—Chief Financial Officer’s
review” as contained in Exhibit 99.3.
Investing activities
For more information regarding the impact of
liquidity on our going concern assumption—refer “Item
18—Financial Statements—Note 2 Going concern”.
Net cash received from investing activities
increased to R25 093 million in 2021 as compared to
net cash used in investing activities of R38 550 million
in 2020.
For information regarding the company’s cash
flow requirements refer to the “Integrated Report—
Performance Overview—Chief Financial Officer’s
review” as contained in Exhibit 99.3. The following
table provides a summary of our cash flows for each of
the three years ended 30 June 2021, 2020 and 2019.
Cash flows utilised in investing activities
include the following significant items.
2021
Additions to noncurrent assets(1) . .
Proceeds on
disposals and
scrappings . . . . . .
2020
2019
(Rand in millions)
29 730
(58 265)
The cash generated by our operating activities
is applied first to fund our operations, pay our debt and
tax commitments and then to provide a return in the
form of a dividend to our shareholders. The net cash
retained is then invested based on our updated capital
allocation framework which is aimed at driving
maximum shareholder return.
Based on our funding plan, our liquidity
headroom remains well above US$1 billion as at 30
June 2021, with available rand- and US dollar-based
funds improving as we advance with our focused
management actions. We continue to assess our mix of
funding instruments to ensure that we have funding
from a range of sources and a balanced maturity profile.
We manage our liquidity risk by effectively managing
our working capital, capital expenditure and cash flows
from both operating cash flows and disposals of assets.
We finance our capital expenditure from funds
generated out of our business operations and borrowing
facilities.
34 043
(56 412)
Cash generated by operating activities . . . . .
Income tax paid . . . . . . . . . . . . . . . . . . . .
Dividends paid . . . . . . . . . . . . . . . . . . . . .
Liquidity, cash flows and borrowings
Net cash retained
from operating
activities . . . . . . . .
(38 550)
Cash flows retained from operating activities
include the following significant items.
5.B Liquidity and capital resources
2021
25 093
31 943
(1)
77
2020
2019
(Rand in millions)
(18 214)
(41 935)
43 214
4 285
(56 734)
567
Includes additions to property, plant and equipment; assets
under construction and other intangible assets.