Slide 1: Financial results for the year ended 30 June 2012
financial results for the year ended 30 June 2012 better together… we deliver JSE: SOL | NYSE: SSL
Slide 2: Forward-looking statements
forward-looking statements Forward-looking statements: Sasol may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may al
Slide 3: Introduction
introduction David E Constable chief executive officer better together… we deliver JSE: SOL | NYSE: SSL
Slide 4: What you will hear today
what you will hear today key messages ● Record full year earnings ● Delivering on key milestones ● Significantly improved second half operational performance ● Strategic agenda to focus the organisation ● Compelling investment proposition ORYX GTL, Qatar Synfuels, Secunda better together… we deliver
Slide 5: Demand growth underpins the end of cheap oil prices
demand growth underpins the end of cheap oil prices creating an opportunity for Oil consumption arbitrage 80 ● Oil consumption has grown rapidly in India Daily barrels of oil per 1 000 people and China since 1990 60 ● Increased incomes will drive further growth in demand for oil 40 ● If present tren
Slide 6: Making a positive contribution in the countries in which we operate
making a positive contribution in the countries in which we operate ● Energy supply and socio-economic development ● An alternative to ensure cost-effective energy security and downstream growth ● In-country investment and use of resources ● Driving significant skills transfer to the local workforce
Slide 7: Making a positive contribution in South Africa
making a positive contribution in South Africa ● One of the largest corporate taxpayers - contributing R28,2bn in FY12 ● FY12 capex spend in South Africa increased by 14% to R18,8bn ● Invested R819m in skills development in South Africa in FY12 ● Committed R309,4m to socio-economic development in So
Slide 8: Delivering on key milestones in 2H12: abroad
delivering on key milestones in 2H12 abroad ● FEED work for Uzbekistan GTL plant progressing according to schedule ● Canada GTL feasibility study completed ● Feasibility studies for a US integrated GTL and chemicals facility as well as a world scale ethane cracker progressing well and coming to clos
Slide 9: Delivering on key milestones in 2H12: in South Africa
delivering on key milestones in 2H12 in South Africa ● The R3,4bn Thubelisha mine shaft was inaugurated at the Twistdraai colliery ● Synfuels growth programme delivers results with: • the commissioning of two new gasifiers and the 17th reformer • the gas turbines, 10th Sasol advanced synthol reactor
Slide 10: Solid operations
solid operations operations highlights ● ORYX GTL plant continues to achieve new production records and is consistently producing above its design capacity of 32 400bpd ● Enhanced production performance at Arya Sasol Polymer Company ● Sasol Synfuels delivered production for the year of 7,2 mt • 2H12
Slide 11: Delivering superior shareholder returns
delivering superior shareholder returns record earnings ● Significant improvement in second half production ● Cash fixed costs in line with inflation ● Operating profit up 23% to R36,8bn ● Headline earnings per share up 25% to R42,28 ● Total dividend up 35% to R17,50 per share ● Cash generated by op
Slide 12: Financial and operational performance
financial and operational performance Christine Ramon chief financial officer better together… we deliver JSE: SOL | NYSE: SSL
Slide 13: Favourable macro environment despite softer chemicals markets
favourable macro environment despite softer chemicals markets Higher fuel and oil, lower US gas prices Weakening currency US$/bbl 200 Brent 10 US$1 = ZAR $/mmbtu (gas price) Product price $131 R7,78 Henry Hub $108 100 $112 5 R7,01 $96 $4,15 $3,05 0 0 FY11 FY12 FY11 FY12 Softening chemical prices Com
Slide 14: SA energy drives growth in group profitability
SA energy drives growth in group profitability 2012 2011 %∆ SA Energy 29,0 19,9 ▲ 45 ● Significant improvements in production International Energy (0,1) 1,6 ▼103 performance in 2H12 ● Operating profit negatively impacted by Chemicals 6,5 8,7 ▼ 25 once-off charges of R2,1bn (FY11: R1,1bn) Other 1,4 (
Slide 15: Once-off charges and period-end adjustments impact 2H12 operating profit
once-off charges and period-end adjustments significantly impact 2H12 operating profit Operating profit 40 000 Macro Costs ∆ 23% Rm environment and volumes 36 758 Chemicals 30 000 profits down by 50% in 2H12 20 476 0% 20 000 ∆ (20)% 4% 16 282 (5%) (5%) (5%) (4%) (5%) 10 000 0 1H12 Exchange Crude oil
Slide 16: Cash fixed costs contained to inflation despite a challenging environment
cash fixed costs contained to inflation despite a challenging environment Cash fixed costs Cash 50 000 Rm fixed costs increase 9% excl. study, growth, once-off and currency effects 40 000 ∆ (12%) (8%) (1%) 35 568 31 678 1% (2%) 32 280 (2%) 30 000 20 000 10 000 0 2011 Once-offs¹ Growth and Period-on-
Slide 17: SA energy: underpins group profit and cash generation
SA energy: underpins group profit and cash generation Operating profit (Rm) 2012 2011 %∆ Mining 2 287 1 063 ▲ 115 ● Mining benefited from higher sales volumes and prices to Synfuels. BEE ownership now > 40% Gas 2 985 2 578 ▲ 16 ● Gas improved volumes and sales prices Synfuels 22 095 15 188 ▲ 45 ● Sy
Slide 18: International energy: GTL flagship ORYX drives growth in SSI's profits
international energy: GTL flagship ORYX drives growth in SSI's profits Operating profit (Rm) 2012 2011 %∆ SSI 1 881 1 205 ▲ 56 ● Strong ORYX performance. Margin expansion ORYX 2 856 1 937 ▲ 47 and production up 9% Funding growth (975) (732) ▼ 33 • continues to achieve new production records SPI (1 9
Slide 19: Chemicals: margins optimised despite challenging market conditions
chemicals: margins optimised despite challenging market conditions Operating profit (Rm) 2012 2011 %∆ Polymers 716 1 579 ▼ 55 ● Polymers in line with industry trends Solvents 1 403 1 655 ▼ 15 • SA business under severe pressure • Arya achieved average utilisation rate of 84% O&S 3 193 4 161 ▼ 23 ● S
Slide 20: Growth strategy gaining momentum
growth strategy gaining momentum Increased capital investments to fuel growth Estimated capital investments 40 40 Rbn Rbn 34,0 32,0 29,2 29,2 30 30 20,7 20 20 16,1 10 10 0 0 2010 2011 2012 2012 2013e¹ 2014e¹ SA Energy Int Energy Chemicals Other Sustenance Growth 1. Estimate better together… we deliv
Slide 21: Strong cash flows fund capital investments and dividends
strong cash flows fund capital investments and dividends Sources and uses of cash Delivering ROIC ahead of WACC 50 30 30 Rbn % % 2012 40 2011 20 20 30 20 10 10 10 0 0 0 Sources Uses Sources Uses 2008 2009 2010 2011 2012 Cash gen. by ops after tax¹ Asset disposals ROIC WACC IRR target Dividends Acqui
Slide 22: Record dividend boosts superior shareholder returns
record dividend boosts superior shareholder returns Record final dividend Leading TSR over the last 5 years¹ 30 6 ZAR % 53% Sasol 32% 20 4 MSCI 11% World Energy -5% 10 2 -2% JSE Resources² -15% 0 0 2009 2010 2011 2012 -30% 0% 30% 60% Interim Final Dividend yield (year-end) ZAR USD 1. Source: Bloombe
Slide 23: FY13 profit outlook: strong management focus in a challenging environment
FY13 profit outlook: strong management focus in a challenging environment ● Production • Synfuels FY13 target of 7,2 mt to 7,4 mt • maintain ORYX GTL at 80-90% utilisation rate • Arya utilisation above 80% Financial and • Canada volumes to grow steadily once gas prices trigger further operational ec
Slide 24: A compelling investment proposition
a compelling investment proposition David E Constable chief executive officer better together… we deliver JSE: SOL | NYSE: SSL
Slide 25: Strategic agenda to focus the organisation
strategic agenda to focus the organisation Foundation Sustainable growth Definition of victory Accelerate GTL, Develop and empower focused CTL growth Operations high-performing, values- Excellence driven people Grow related upstream Group imperatives business Capital Excellence Grow Continuously imp
Slide 26: Top priorities for FY13
top priorities for FY13 ● Recordable case rate target of 0,32 Improve safety performance ● Zero harm ● Operations stability, reliability and maintainability Enhance operational performance ● Cost optimisation ● Focused strategy to deliver sustainable growth Accelerate sustainable growth ● Finalise d
Slide 27: Project pipeline offers significant opportunity
project pipeline offers significant opportunity Feasibility FEED/EPC Accelerate GTL, ● Canada GTL ● Uzbekistan GTL focused CTL ● US GTL ● Escravos GTL Grow chemicals based ● Integrated US chemicals ● Tetramerisation on technology, market ● Ethane Cracker ● FT wax expansion or feedstock advantage New
Slide 28: Gas market dynamics support US strategy
gas market dynamics support US strategy growth strategy focused on North US gas production¹ America 100 bcf/d 80 ● Shale gas boom presents unique 60 opportunity 40 ● Gas production to increase ~40% by 2030 20 ● Expect ~60% increase in associated 0 2000 2005 2010 2015 2020 2025 2030 liquids productio
Slide 29: Compelling investment proposition
compelling investment proposition Solid Attractive Leading foundation business growth strategy shareholder returns ● ORYX GTL flagship ● Growing demand for ● Solid balance sheet energy security and underpins growth Sustainable value creation ● Highly cash generative energy independence assets ● Prog
Slide 30: Questions and answers
questions and answers better together… we deliver JSE: SOL | NYSE: SSL