SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 36
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
RISK MANAGEMENT continued
Focus on short, medium, and long-term risk perspectives
- time horizon view on risks
GROUP MATERIAL RISKS
Hz1
GROUP RISK THEME
Financial
BOARD COMMITTEE
Audit Committee
EXECUTIVE SPONSOR
Group Chief Financial
Officer
GROUP MATERIAL RISK
Businesses significantly
underperforming with
material impacts on free
cash flow generation and
ability to deleverage the
balance sheet.
RT1
RISK THEME (RT)
BOARD COMMITTEE
Audit Committee
EXECUTIVE SPONSOR
Group Chief Financial
Officer
Material weaknesses
relating to internal
controls over financial
reporting.
BOARD COMMITTEE
Audit Committee
EXECUTIVE SPONSOR
Group Chief Financial
Officer
Inability to fully absorb
the impact of external
headwinds.
= Beyond FY28
KEY RESPONSES
RISK CONTEXT
KEY RESPONSES
Material risks relating to integrity of
financial reporting and disclosures (accuracy,
completeness, validity, existence, valuation,
obligations and/or rights).
Strengthening financial systems and controls: Enhancing systems through training
and compliance monitoring ensures controls operate effectively and consistently.
SOX testing and implementation of Workiva: Regular SOX cycle testing, supported
by the Workiva platform, improves control effectiveness and streamlines compliance
processes.
Periodic technology and systems testing: Ongoing assessments confirm that
systems remain aligned with operational and regulatory requirements.
Stakeholder engagement in control design: Involving key stakeholders early ensures
controls are practical, well-informed, and widely supported.
RISK HORIZONS
GROUP MATERIAL RISK
Hz3
Cash war room: Centralised oversight ensures real-time decisions to preserve liquidity
and manage cash effectively.
Debt reduction plan: Actively lowering debt strengthens financial stability and
reduces interest burden.
Refinancing activities: Structured finance initiatives secure better terms and reduce
refinancing risk.
Asset review process: Targeting underperforming assets helps improve returns and
reinforce the balance sheet.
Business improvement initiatives: Implementing the break-even programme to
restore Southern African value chain performance and turnaround programme to
reset International Chemicals.
Hz1
GROUP RISK THEME
Financial
= Up to FY28
RISK CONTEXT
Hz1 Hz2
GROUP MATERIAL RISK
Hz2
Material financial risks relating to delivery on
business/operational performance targets,
our risk appetite and tolerance levels, debt
management (including debt covenants) and
future income erosion.
RISK HORIZONS
GROUP RISK THEME
Financial
= FY26
RISK CONTEXT
KEY RESPONSES
Material risks relating to external vulnerabilities
arising from wider economic factors with
resultant potential negative impact on our
business and operations (economic downturns,
inflationary pressures and volatile commodity
prices and exchange rates).
Assumptions process: Group assumptions set, reviewed and updated based on
credible views from multiple sources.
“What-if” playbook and scenario analysis: Expanding scenario planning enhances
preparedness for market volatility and supports agile decision-making.
Resetting the cost base: Lowering the structural cost base improves resilience in a
weaker global economy and reduces the break-even point.
Hedging activities: Using natural hedging, FECs, and spot transactions helps manage
oil and currency exposure and protect margins.
Planning and optimisation process: Maximising integrated margin through
coordinated planning strengthens profitability and operational efficiency.
RISK HORIZONS
Hz1
SASOL INTEGRATED REPORT 2025
35
ASSOCIATED
MATERIAL
MATTER
Strengthening
for resilience
Strengthening
for resilience
Strengthening
for resilience
