Delivering reliable returns  through the cycle A strategic commitment to sustainability Delivering growth through  technology and project execution Sasol reduced its cash fixed costs in 2010  while increasing volumes, particularly at  Sasol Synfuels, Sasol Mining and Arya  Sasol Polymer Company. Sasol Mining  and our black economic empowerment  (BEE) partner, Ixia Coal, delivered a  remarkable 12% improvement in  productivity alongside a cost saving of  R125 million during the year. Seen in the  context of sharply higher electricity costs  in South Africa, which had a signifi cant  impact on Sasol Synfuels and Sasol  Mining in particular, this cost reduction  is a great achievement. I am particularly  pleased that we managed to reduce our  cost base without forced retrenchments. Our chemicals businesses implemented  far-reaching turnaround programmes to  reduce costs and improve margins, and  to introduce more flexibility to respond  to changes in the macroenvironment.  The results have been remarkable, with  the chemicals businesses contributing  Over the past financial year, Sasol  continued to deliver on its strategy by  focusing on the world-class performance  of our existing assets and progressing  growth opportunities, based on our  proprietary technology. The prompt  actions taken in response to the global  economic crisis, though painful, have  resulted in a more efficient and effective  organisation. Our financial position is  strong and we have the fl exibility to  pursue our sustainable growth strategy  with vigour. Our focus remains on  optimising our businesses, leveraging  our technology and investing strategically  to enhance shareholder returns on a  sustainable basis. A particular area  of focus in the year was ensuring full  compliance with all aspects of  competition law and improving and  strenthening our compliance programme.  Sasol’s group executive committee (GEC)  formally adopted sustainable development as  a group-wide strategic business philosophy in  2000. Since then, we have taken various steps  towards integrating sustainability principles in  our activities, in the belief that a commitment  to sustainable development yields an  important competitive advantage. As part  of fulfilling this commitment, we have  developed, implemented and are continuously  improving our management framework  to provide our businesses with the policies,  governance structures, targets and reporting  systems that are required to manage the risks  and opportunities that sustainability presents.  officer, and through his leadership role in  driving a values-based culture throughout the  organisation. He is assisted on the GEC by an  executive director who has responsibility for  sustainable development issues, greenhouse  gas management, skills development,  Operations Excellence, and SH&E. The GEC  receives strategic and operations-specifi c  inputs from all businesses, as well as from  specialised committees. One of these is the  group executive SH&E committee, which  reviews performance and considers and  approves recommendations on sustainable  development and SH&E guidelines and policy  for the group.  This commitment to sustainable development  is coordinated at group level and implemented  at business level, with ultimate responsibility  residing with our board of directors. Our group  chief executive takes formal responsibility for  sustainability, both in his role as the group’s  chief safety, health and environment (SH&E)  The board also receives input from the group  risk and SH&E committee and the audit  committee. In line with King III requirements,  the audit committee plays a role in reviewing  the integrated report and the nature of any  associated external assurance processes.  FIN More detail on the composition and activities of these various committees  is provided in the corporate governance report in our separately published  annual fi nancial statements.  Our strategy of securing low-value  hydrocarbon resources and converting  them, through our technology, into  high-value energy and chemical products  remains compelling. Our GTL technology  puts us in a position to monetise  low-value gas feedstock by producing  high-quality liquid fuels. As gas prices  decline relative to oil prices, as has been  the case recently, our process becomes  increasingly profi table. The strong financial performance, under  difficult economic circumstances, was  overshadowed by the tragic fatalities that  occurred during the year. The deaths of  eight people – employees and service  providers – while carrying out their duties  at Sasol has eclipsed an improved RCR  of 0,51 for the year. In addition, there was  one service provider fatality at premises  leased from Sasol by the service provider,  and not under Sasol’s control. Such  avoidable loss of life is of great personal  distress to me and several interventions  are underway to rectify this unacceptable  situation. These interventions underline  the seriousness with which we take the  safety of our people and our target  of zero harm. We have adopted a progressive dividend  policy as indicated to the market in June.  The final dividend declared was R7,70 per  share, bringing the total dividend for the  year to R10,50 per share.  These operational achievements across  the group translated into an operating  profit of R23,9 billion, despite the rand’s  16% appreciation against the US dollar  in the year. Throughout the economic  turbulence of the last few years Sasol  has maintained its record of profi tability  and cash generation. This consistent  performance has allowed the company  to steadily reduce gearing from a high of  37% in 2005 to the unleveraged position  we have held since last year. I believe this  to be a testament to the actions taken by  management over the last year, as well as  to the inherent strength of Sasol’s existing  energy and chemicals businesses.  approximately 23% to the group’s  operating profit. These businesses are  well-positioned for the future. 27 annual review 2010  •  business review  •  chief executive’s report