Share-based payment reserve (Tables)

12 Months Ended

Jun. 30, 2020

for the year ended 30 June	Note	2020 Rm	2019 Rm	2018 Rm

During the year, the following share-based payment expense was recognised in the income statement relating to the equity-settled share-based payment schemes:
Sasol Khanyisa share transaction(1)	39.1	1 068	952	2 953
Sasol ordinary BEE (SOLBE1) shares issued(2)		—	—	1 104
Khanyisa Public		—	—	1 762
Tier 1 — Khanyisa Employee Share Ownership Plan (ESOP)		642	628	52
Tier 2 — Khanyisa ESOP		426	324	35
Long-term incentives	39.2	878	707	789
Sasol Inzalo share transaction	39.3	—	—	34
Equity-settled — recognised directly in equity(3)		1 946	1 659	3 776

(1)In November 2017, Sasol Khanyisa a new Broad-Based Black Economic Empowerment (B-BBEE) scheme was approved by shareholders at a General Meeting.

(2)IFRS 2 expense was recognised immediately on date shares were granted to participants. Shares were not encumbered and could be traded immediately.

(3)The employee-related share-based payment expense in 2018 was R910 million.

Sasol Khanyisa share transaction

Share-based payment transaction

Schedule of the average fair value of instruments granted

for the year ended 30 June		ESOP – Tier 1(1) 2020	ESOP – Tier 1(1) 2020	ESOP – Tier 2(1),(2),(3) 2020	Sasol Khanyisa Public(3) 2020
Grant date		1 June 2018	1 June 2018	25 May 2018	1 June 2018
Class of shares	Date	SOL shares	SOLBE1 shares	Khanyisa shares	Khanyisa shares
Shares	Number	2 082 520	2 396 048	26 503 642	26 503 642
Weighted average fair value on grant date	Rand	481,50	370,00	66,48	66,48
Total IFRS expense	Rm	1 003	887	1 762	1 762
IFRS expense recognised for the year	Rm	338	304	426	—

(1)The ESOP Tier 1 and 2 options outstanding have a weighted average remaining vesting period of 0,9 and 2,8 years. ESOP Tier 1 vests after 3 years and ESOP Tier 2 has a staggered vesting period, with portions vesting from 3 years, and then each year until the end of the transaction term, being 10 years.

(2)The weighted average fair value price is derived from the Monte-Carlo option pricing model. The price will move closer to the strike price over the transaction period as certainty of

dividends declared by SSA is expected to exceed outstanding vendor financing.

(3)The estimated strike price value for Khanyisa Public and ESOP Tier 2 is R325,31 and represents the remaining vendor funding per share at 30 June 2020.

Schedule of the assumptions used to calculate the average fair value of options granted

Average fair value Sasol Khanyisa options granted		2018
Model		Monte-Carlo
Risk-free interest rate	(%)	8,08
Expected volatility	(%)	28,49
Expected dividend yield	(%)	1,8 – 10,1

Long Term Incentive Equity Settled

Share-based payment transaction

Schedule of the assumptions used to calculate the average fair value of options granted

Average fair value of incentives granted		2020	2019
Model		Monte-Carlo	Monte-Carlo
Risk-free interest rate — Rand	(%)	6,07 – 7,04	6,90 – 7,87
Risk-free interest rate — US$	(%)	0,39 – 0,81	0,91 – 1,56
Expected volatility	(%)	45,28	26,17
Expected dividend yield	(%)	4,34	3,43
Expected forfeiture rate	(%)	5	5
Vesting period — top management		3/5 years	3/5 years
Vesting period — all other participants		3 years	3 years

Schedule of movements in the number of incentives outstanding

			Weighted average
	Number of		fair value
Movements in the number of incentives outstanding	incentives		Rand
Balance at 30 June 2018	6 796 488		348,19
LTIs granted	2 089 674		555,86
LTIs vested	(1 600 899	)	308,27
Effect of CPTs and LTIs forfeited	(665 666	)	360,19
Balance at 30 June 2019	6 619 597		422,20
LTIs granted(1)	6 424 377		275,61
LTIs vested	(1 380 689	)	368,28
Effect of CPTs and LTIs forfeited	(754 973	)	378,19
Balance at 30 June 2020*	10 908 312		345,74

(1)LTIs granted include an allocation of 3 210 114 LTIs that were issued in October 2019 to qualifying employees who did not receive short-term incentives due to cash conservation measures.

*The incentives outstanding as at 30 June 2020 have a weighted average remaining vesting period of 1,8 years. The exercise price of these options is Rnil.

Schedule of weighted average market price

for year ended 30 June		2020 Rand		2019 Rand
Average weighted market price of LTIs vested		254,70		507,50