content_image/220380.jpg content_image/220381.jpg content_image/220400.jpg
<img src='content_image/220380.jpg'>

<img src='content_image/220381.jpg'>

improve governance and systems of internal control within the group. In the year under review, deliberations focused on finding the most appropriate way to adhere to the principles and recommendations of King III. 

Not only have we improved and strengthened our competition law compliance programme, but we are also cooperating with the South African Competition Commission on their ongoing investigations and we are making progress in dealing with matters outstanding. 

## Organising for sustainable, profi table growth 

In June this year, the board approved a number of changes to our group executive committee (GEC), aimed at streamlining the functioning of executive management. These changes will ensure we remain focused on greater operational effi ciency, effective business support and sustainable growth. I wish Lean Strauss (senior group executive, new business development and technology), André de Ruyter (senior group executive, operations) and Nolitha Fakude (executive director, business sustainability and transformation) well in their new roles. 

Sasol has continued to invest in skills throughout the economic cycle. A specifi c 

challenge is to ensure a pipeline of talent and relevant skills into the future. To address this challenge we established a number of units, within the human resources structure and elsewhere in the group, focused on the sustainable supply of suitably qualified and experienced employees to resource our growth plans. 

Linked to our investment in people is the ongoing strengthening of our technological advantage. In this regard, partnerships continue to be important. As an example, we concluded an agreement with our ninth South African tertiary institution to build institutional research capacity at a cost of R25 million a year over ten years. Another key development was that our latest Fischer-Tropsch design reactor and catalyst-testing reactor pilot plant in Sasolburg became fully operational in the year. 

## Outlook 

Although economic activity has rebounded more rapidly than many had predicted, aided by concerted government and central bank intervention in most developed countries and the continued dynamism of emerging economies, there is continued volatility. We remain cautious about the short-term economic outlook but confident that we are well positioned for sustainable long-term growth. 

Continued strength in the rand in the second half of the year outweighed the benefits of higher oil and chemical prices. We see much the same pattern prevailing for the initial period of the new fi nancial year. 

We expect further growth in volumes and will target cost increases in line with inflation for 2011. 

Our deleveraged balance sheet and strong cash flow will allow us to respond quickly and effectively to the opportunities and challenges presented by an unpredictable economic environment. 

We remain focused on ensuring world- class performance from our existing assets, growth through the delivery of our upstream, CTL and GTL ambitions, and on entrenching an extraordinary operating environment and sound governance. 

## Acknowledgement 

The group made progress across a number of fronts in 2010, under challenging circumstances. This is the result of the focus, dedication and hard work of all our people at Sasol. My thanks are due to all of them. 

<img src='content_image/220400.jpg'>

