Chevy Limited Group Chevy Limited Group is a diversified South African energy company over 100 years old win wine class technology that has paved the way for producing liquids from gas. It has faglip plants around the world that harvest natural resource and to them into guides it has plants Qatar Niger dela and Lake Charles Chemical Project (CCP) Houston Texas. In the last few years with turbulent balance sheet due to high debt taken to build a new project in the US neted the company close to USD13 on This put a wrain on the balance sheet whereas this to che company was previously know for strong balance sheet and high cash holdings. A change in CFO and restructuring of the business over years that ensued brought about many surface changes. And the cavid pandemic began to test the company and investors began to los confidence in the ability of the company to finishin projects on time and generate cashows to cover de toward the US project Chevy began sulting of its assets and businesses in order to strengthen its balance sheet and pay off the US debt in FY21 the US LCCP business has experienced offices with Hurricanes and the wewe reducing volumes produced. Also due to the burden of debt the company sold 50% of the US plant Al 30 June 2021, our total debt was 104 bilion compared to R180 billion at 30 June 2020 During the year. Chevy lised proceeds from our asset divestments to repay the US dollar syndicated loan reducing our US dollar denominated debt by almost R76 Lion (U555 Don Chevy's gearing decreased from mainly due to repayment of US dollar debt and stronger closing and US dollar exchange rate Excluding the impairments for 2021 the gearing ratio would have improved to 50% Chevy limited has several joint ventures 49% joint venture with a world class fuel company Pearl GTL for the plant in Nigeria, Chevy Cashmessing is plented technology to produce premium grade fuel Qatar OTL Chevy's flagship GTL with plant efficiency's reaching maximum in GT fuel production Key sensitivities in operations Exchange rates The majority of our turnover denominated in US dollars sign Influenced by the rand US dollar exchange rate. This turnover is derived her from exports from South Africa, businesses outside of South Africa or sale in South Africa, which comprise mainly petroleum and chemical products that are based on global commodity and benchmark prices quoted in US dollars. Therefore, the average exchange rate for the year has a significant impact on our turnover and earnings before interest and tax (EBIT) For forecasting purposes a 100 change in the annual average rand US dollar exchange rate will impact EBIT by approximately R700 million (US$49 million) in 2022 Risks remain and are expected to result in ongoing currency and financial market volatility These risks include COVID-19 developments such as the pace and efficacy of vaccine roll-out severely strained government finances, high probabilities of policy mistakes. US Inflation and interest rate expectations, and geopolitics. Chevy has entered into hedges against the rand strengthening against major currencies to increase the stability and predictability of our cash flows. In respect of 2022, Chevy executed -90% of the hedging programme which equales to-US$3.9 billion. Key sensitivities in operations Crude oil and fuel product prices Market prices for Brent crude oil later because they are subject to international supply, demand and political factors. Exposure to the crude oil price rates mainly to crude oil related raw materials and certain offshore operation, as well as on the song price of fuel marketed by our Energy business which is governed by the Basic Fuel Price (BFP) formula. For forecasting purposes, a US$/bre change in the average omul crude oil price will impact EBIT by approximately R666 million (US548 million in 2032. This based on a average rand US dollar exchange rate assumption of R14 20. Chevy expects the average Bent crude oil price orange between US$55/hland US$75bbl for 2022 Global oll demand is recovering from the mpact of COVID-19 amidst economic and steady rollout of vaccinations in major demand hubs. Downside price risk is doiven by the spread of COVID-19 variants and the possibility of weakened vaccine efficacy to these are the of returning oil production by OPECand the timing of the lining of sanctions to the price uncertainty. Tot quids inventory levels remain high and will require contre OPEC supply management to reduce stocks Fuel margins. Koy devers in the BFP are the Mediterranean and Singapore or Mediterranean and Arab Quill product prices for petrol and Gesel fuel price rack spreads)respectively. For forecasting purposes a USS change in the average annual for price diferential of the Chevy Group will impact EBIT by approximately RS7 (5542 milion in 2022. The based on a average rand US dollar exchange rate of R14.20 Commodity chemical prices reached unprecedented high in 04 2027 due to a combination of strong demand and reduced markets resulting from the February 2021 US Arctic worm and Job supply chain challenge due to the ongoing COVID-19 pandemic. In 2022. Chevy expech prices to moderate as supply normal and the market rebalances in the short term. chemical prices are expected to be pressured as abundant new capacity comes online specially in China Movements in the cost of petrochemical feedstocks (crude oinaphtha, natural gas and natural gas ne short w Chews not a price-sotter for most of its chemical product portfolio, however que and supply demand charges rotated to the COVID. 18 pandemic could infuence prices in continue to focus on ensuring the optimum placement of our product across global markets. Ernegasus Ethana prices are impacted by supply and demand as well as US light of Synamic Recovery In US sight oil production post the 2020 oil price Crush has been slow, and has rested in lower the availability Ethane prices initially moved higher during H2 2021 ppy began to tighten. However, the US Arctic storm in February 2021 resulted in a shutdown in production and lower operating rates, leading to lower thane prices in a US$20-23 Chevy Limited Group Chevy Limited Group is a diversified South African energy company over 100 years old win wine class technology that has paved the way for producing liquids from gas. It has faglip plants around the world that harvest natural resource and to them into guides it has plants Qatar Niger dela and Lake Charles Chemical Project (CCP) Houston Texas. In the last few years with turbulent balance sheet due to high debt taken to build a new project in the US neted the company close to USD13 on This put a wrain on the balance sheet whereas this to che company was previously know for strong balance sheet and high cash holdings. A change in CFO and restructuring of the business over years that ensued brought about many surface changes. And the cavid pandemic began to test the company and investors began to los confidence in the ability of the company to finishin projects on time and generate cashows to cover de toward the US project Chevy began sulting of its assets and businesses in order to strengthen its balance sheet and pay off the US debt in FY21 the US LCCP business has experienced offices with Hurricanes and the wewe reducing volumes produced. Also due to the burden of debt the company sold 50% of the US plant Al 30 June 2021, our total debt was 104 bilion compared to R180 billion at 30 June 2020 During the year. Chevy lised proceeds from our asset divestments to repay the US dollar syndicated loan reducing our US dollar denominated debt by almost R76 Lion (U555 Don Chevy's gearing decreased from mainly due to repayment of US dollar debt and stronger closing and US dollar exchange rate Excluding the impairments for 2021 the gearing ratio would have improved to 50% Chevy limited has several joint ventures 49% joint venture with a world class fuel company Pearl GTL for the plant in Nigeria, Chevy Cashmessing is plented technology to produce premium grade fuel Qatar OTL Chevy's flagship GTL with plant efficiency's reaching maximum in GT fuel production Key sensitivities in operations Exchange rates The majority of our turnover denominated in US dollars sign Influenced by the rand US dollar exchange rate. This turnover is derived her from exports from South Africa, businesses outside of South Africa or sale in South Africa, which comprise mainly petroleum and chemical products that are based on global commodity and benchmark prices quoted in US dollars. Therefore, the average exchange rate for the year has a significant impact on our turnover and earnings before interest and tax (EBIT) For forecasting purposes a 100 change in the annual average rand US dollar exchange rate will impact EBIT by approximately R700 million (US$49 million) in 2022 Risks remain and are expected to result in ongoing currency and financial market volatility These risks include COVID-19 developments such as the pace and efficacy of vaccine roll-out severely strained government finances, high probabilities of policy mistakes. US Inflation and interest rate expectations, and geopolitics. Chevy has entered into hedges against the rand strengthening against major currencies to increase the stability and predictability of our cash flows. In respect of 2022, Chevy executed -90% of the hedging programme which equales to-US$3.9 billion. Key sensitivities in operations Crude oil and fuel product prices Market prices for Brent crude oil later because they are subject to international supply, demand and political factors. Exposure to the crude oil price rates mainly to crude oil related raw materials and certain offshore operation, as well as on the song price of fuel marketed by our Energy business which is governed by the Basic Fuel Price (BFP) formula. For forecasting purposes, a US$/bre change in the average omul crude oil price will impact EBIT by approximately R666 million (US548 million in 2032. This based on a average rand US dollar exchange rate assumption of R14 20. Chevy expects the average Bent crude oil price orange between US$55/hland US$75bbl for 2022 Global oll demand is recovering from the mpact of COVID-19 amidst economic and steady rollout of vaccinations in major demand hubs. Downside price risk is doiven by the spread of COVID-19 variants and the possibility of weakened vaccine efficacy to these are the of returning oil production by OPECand the timing of the lining of sanctions to the price uncertainty. Tot quids inventory levels remain high and will require contre OPEC supply management to reduce stocks Fuel margins. Koy devers in the BFP are the Mediterranean and Singapore or Mediterranean and Arab Quill product prices for petrol and Gesel fuel price rack spreads)respectively. For forecasting purposes a USS change in the average annual for price diferential of the Chevy Group will impact EBIT by approximately RS7 (5542 milion in 2022. The based on a average rand US dollar exchange rate of R14.20 Commodity chemical prices reached unprecedented high in 04 2027 due to a combination of strong demand and reduced markets resulting from the February 2021 US Arctic worm and Job supply chain challenge due to the ongoing COVID-19 pandemic. In 2022. Chevy expech prices to moderate as supply normal and the market rebalances in the short term. chemical prices are expected to be pressured as abundant new capacity comes online specially in China Movements in the cost of petrochemical feedstocks (crude oinaphtha, natural gas and natural gas ne short w Chews not a price-sotter for most of its chemical product portfolio, however que and supply demand charges rotated to the COVID. 18 pandemic could infuence prices in continue to focus on ensuring the optimum placement of our product across global markets. Ernegasus Ethana prices are impacted by supply and demand as well as US light of Synamic Recovery In US sight oil production post the 2020 oil price Crush has been slow, and has rested in lower the availability Ethane prices initially moved higher during H2 2021 ppy began to tighten. However, the US Arctic storm in February 2021 resulted in a shutdown in production and lower operating rates, leading to lower thane prices in a US$20-23