Sasol Integrated Report 2023 - Book - Page 85
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
ADMINISTRATION
GOVERNANCE AND REWARDS
REMUNERATION REPORT CONTINUED
IMPLEMENTATION REPORT CONTINUED
Short-term incentive (STI) plan outcomes
The following table provides the outcomes against the FY23 performance targets that were set for the Group STI plan.
PEOPLE
KPI – KEY
PERFORMANCE
INDICATOR FY23
ESG
(10%)
WEIGHTING
FY23
THRESHOLD
TARGET
STRETCH
PROCESS SAFETY
5%
21
18
16
Fires, Explosions and Releases
amounted to 15
7,5%
OCCUPATIONAL
SAFETY
5%
14
12
9
Sasol achieved a high-severity injury –
severity rate (HSI-SR) of 9,96
6,7%
0,34%
7,5%
Energy Efficiency Improvement
using 30 June 2022 as the basis
for assessment of FY23
PLANET
7,5%
ESG
(20%)
ADVANCING
SUSTAINABILITY:
CLIMATE CHANGE
The achievement of a FEED
milestone for at least one PtX
partner project by start Q4 FY23
PROFIT
5%
Group
Financials
(70%)
FY23 Energy Efficiency
Improvement = 1%
FY23 Energy Efficiency
Improvement = 1,5%
An energy efficiency improvement of
0,05% was achieved as compared to
prior year
1. Sign cooperation agreement
with at least one partner to
support global sourcing of
quality carbon credits
2. Obtain Sasol Ltd Board approval
for medium-term Just Transition
roadmap by 30 June 2023
Approved RE Sourcing Strategy
for Energy Business delivered by
30 June 2023 which aligns with the
Group’s energy transition plans
Sasol signed one cooperation
agreement during the year. The board
approved the medium-term Just
Transition roadmap
Achieve FEED milestone (CSAC
considered) on two partner PtX
projects by 30 June 2023
Realise external/grant funding
on one of the PtX projects by
30 June 2023
Sign one MoU for a prefeasibility
or Feasibility study, equity
opportunity in support of
development of SAF (pathway
based on FT PtL or biomass or MSW
gasification followed by FT or HEFA
pathway) by 30 June 2023
Threshold and target partially
achieved. Realised external/grant
funding, and achieved one FEED
milestone
FY23 Fuels sales volumes =
52.3mm bbls
Actual Fuels & Chemicals Sales
volumes from target to 5% over
FY23 sales volumes’ targets
(scoring range from 7.5% – 11.25%
in respect of each of Chemicals and
Fuels sales volumes targets)
FY23 Fuels and Chemicals sales
volumes 3% and 12% below target,
respectively
WEIGHTED
ACHIEVEMENT
11,25%
Renewable energy sourcing strategy
delivered by 30 June 2023
3,75%
SALES VOLUMES
PRODUCED
15%
Actual Fuels and Chemicals sales
volumes (excl imports), from 5%
below target to target (scoring
range of 0% – 7,4% in respect of
each of the Chemicals and Fuels
sales volumes targets)
CASH COST
OPTIMISATION
15%
CFC of
= R59,9bn
Cash Fixed Costs were 2,1% above
target
5,11%
CASH FLOW
GENERATION
20%
3% below the targeted FY23 FCF
(before growth)/Turnover ratio
FY23 FCF (before growth)/Turnover
= 10%
Up to 3% over the FY23 FCF
(before growth)/Turnover ratio
We achieved a Free Cash Flow before
growth to turnover ratio of 8,86%
12,4%
AVERAGE NET
WORKING CAPITAL
10%
Average NWC % = 19%
Average NWC % = 18%
Average NWC % = 17%
Average Net Working Capital for the
year of 16,6%
15%
FY23 First order capital expenditure
R30bn
Capital expenditure = R23,5bn
or R28,5bn
First order capital expenditure
between R25bn and R27bn
Capital Expenditure target partially
achieved at R29,1bn. Normalised for
exchange rate impact
6,23%
CAPITAL ALLOCATION
10%
100%
ACHIEVEMENT
3,20%
SAFETY ADJUSTMENT – PENALTY FOR FATALITIES
(6%)
FINAL SCORE
65,5%
The Short-term Incentive Policy allows for the normalisation of performance outcomes for macroeconomic factors (Brent crude oil price, ZAR/$ exchange rate), factors impacting performance outside of management’s control
(eg Eskom outages, extreme weather events, force majeures) and alignment of baselines or budgets with the impact of divestitures or acquisitions. The Committee did not apply any discretion to performance outcomes.
SASOL INTEGRATED REPORT 2023
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