Slide 1: Investor Update
INVESTOR UPDATE 2 December 2020 Copyright ©, 2020, Sasol
Slide 2: Forward-looking statements and definitions
Forward-looking statements and definitions 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 also relate to
Slide 3: For today
for today We will share our vision for and how the Sasol 2.0 transformation will deliver it 1 Our case for change 2 The Sasol 2.0 transformation programme 3 Our ambition for Future Sasol 4 The path forward Copyright ©, 2020, Sasol 3
Slide 4: Addressing challenges and leveraging our capabilities and opportunities
Financial Macro Climate position environment change Addressing challenges Leveraging our capabilities and opportunities Growing Evolving Fostering demand customer needs innovation Copyright ©, 2020, Sasol 4
Slide 5: Shaping our sustainable future
shaping our sustainable future Self-help: >US$1bn delivered in FY20, on track for US$1bn in FY21 Divestments: >US$3,5bn target with majority already1 agreed Liquidity: >US$2bn liquidity, hedging in place, HY21 covenant amended Case for change: The drivers shaping our future Future Sasol: Our v
Slide 6: Case for change, Sasol 2.0 and Future Sasol
A to deliver our ambition Future Sasol • Resilient at $45/bbl oil Sasol 2.0 • Specialty chemicals growth Case for change • Lean and agile operating model • Sustainable Energy growth • Proven transformation approach • Delivery of future sustainability goals • Robust initiatives underpinning targets •
Slide 7: For today
for today We will share our vision for and how the Sasol 2.0 transformation will deliver it 1 Our case for change 2 The Sasol 2.0 transformation programme 3 Our ambition for Future Sasol 4 The path forward Copyright ©, 2020, Sasol 7
Slide 8: Sasol 2.0 will drive transformation and deliver Future Sasol
Sasol 2.0 will drive transformation and deliver Future Sasol Copyright ©, 2020, Sasol 8
Slide 9: FY25 Sasol 2.0 targets to transform our business
to transform our business FY25 Sasol 2.0 targets1,2 • Building best-in-class operations and go-to-market capabilities R8 - R10bn reduction • External spend reduction in line with industry benchmarks ~15 - 20% • 1st quartile performance for functions R6 - R8bn increase • Building best-in-class commer
Slide 10: Competitive at $45 oil
competitive at $45 oil SOUTHERN AFRICA CASH BREAKEVEN OIL PRICE1 KEY CONSIDERATIONS Oil price - planning case $45 / bbl Pre-Sasol 2.0 breakeven of $35 - $45 / bbl • A FCF² breakeven point for the SA operations Breakeven improves to $30 - $35 / bbl through Sasol 2.0 transformation Includes: • Sustena
Slide 11: Balance sheet repositioning pathway
Balance sheet repositioning pathway FY21 / FY22 FY23 / 24 FY25 and beyond • Prioritise deleveraging • Continued portfolio optimisation • Lower net debt to ~1,5x ND:EBITDA¹ • FY21 <3,0x ND:EBITDA • Drive FCF³ generation • Enhance sustainable shareholder • Net debt level of US$4 - 6bn returns • Delive
Slide 12: Capital allocation focused and value-based
focused and value-based DELEVERAGE QUALITY GROWTH AND VALUE BALANCE SHEET RETURNED TO SHAREHOLDERS 1st order of allocation 2nd order of allocation Balancing returns through a combination of value levers Protect licence to operate Optimal sustenance capital Consistent and Step-up to superior Deliver
Slide 13: Portfolio optimisation to continue
portfolio optimisation to continue 2017 2020/1 < 2025 Beyond 2025 2020/1 Beyond 2025 Initiated Deliver >US$3,5bn Enhancing portfolio Maximise returns >$3,5bn portfolio review divestmentsdivestments Improve profitability Focused growthMaximise returns • Focused growth in Specialty chemicals • 2017 CM
Slide 14: Sasol 2.0 to drive change and deliver Future Sasol
Sasol 2.0 to drive change and deliver Future Sasol Copyright ©, 2020, Sasol 14
Slide 15: Sasol 2.0 is a comprehensive transformation programme
Sasol 2.0 is a comprehensive transformation programme FOUR KEY FOCUS AREAS FOR IMPROVEMENT …. … ACROSS THE GROUP Two businesses, one value adding centre Energised and inspired people Energy: Differentiated, digitally enabled customer and B2B¹ experience in mobility and gas Chemicals: Best-in-class c
Slide 16: Adopting with executive accountability
Adopting with executive accountability High Caution Low Ideas Validation Planning Implement Review Bring the future to life Inspire deep commitment Help individuals succeed $ Deliver the value Build to sustain • Single value-tracking system • Close monitoring of GEC execution risks • Continuously d
Slide 17: Leveraging and augmenting our core
Leveraging and augmenting our core Leading technologies Long term partnerships • Proven engineering • Industry leaders expertise • Global customers • Unique chemistry solutions • Sustainable technology • Accelerated digital solutions providers Agile operating model Capabilities augmented • Closer to
Slide 18: Sasol 2.0 to drive change and deliver Future Sasol
Sasol 2.0 to drive change and deliver Future Sasol Copyright ©, 2020, Sasol 18
Slide 19: Sasol 2.0 well underway
Sasol 2.0 well underway DESIGN AND IMPLEMENT DELIVER CONTINUALLY FY21 FY22 - FY23 FY24 and beyond • Improve asset portfolio • Deliver majority of robustness • Establish agile line-led sustainable value initiatives • Advancing solutions for a delivery • Deliver through new ways of greener future • Cl
Slide 20: Sasol 2.0: cash fixed cost reduction aligned with peer performance
Sasol 2.0: reduction aligned with peer performance CASH FIXED COST TARGET KEY LEVERS INITIATIVES DELIVERING VALUE New operating model: R8 - R10bn | ▼ 15 - 20%¹ • Leaner management and corporate centre, moving roles closer to customers • Focus on automation, tailored shared services • Impact on EBIT²
Slide 21: Sasol 2.0: uplift to maximise cash generation
Sasol 2.0: uplift to maximise cash generation GROSS MARGIN TARGET KEY LEVERS INITIATIVES DELIVERING VALUE Chemicals customer fulfilment: R6 – R8bn | ▲ 5 - 10%¹ • Aligning business delivery with production in a streamlined platform • Enhancing the customer experience and optimising inventory and logi
Slide 22: Sasol 2.0: capex optimisation and retain asset integrity
Sasol 2.0: and retain asset integrity CAPEX TARGET¹ KEY LEVERS INITIATIVES DELIVERING VALUE Phase shutdowns moved from a 4 to 5 year R20 - R25bn per annum cycle: • Risk-based inspections and other technical studies to mitigate risk • Optimise within acceptable risk appetite levels • Impact on capex
Slide 23: Sasol 2.0: working capital aligned with industry benchmarks
Sasol 2.0: aligned with industry benchmarks WORKING CAPITAL TARGET KEY LEVERS INITIATIVES DELIVERING VALUE • Reducing variability via improved Sales 14% | ▼ 1 pts¹ and Operational Planning process to better manage inventory • Changing business models to optimise storage points • Reducing the Order-t
Slide 24: Sasol 2.0 in summary
Sasol 2.0 in summary Copyright ©, 2020, Sasol 24
Slide 25: Enabling a more agile and competitive business
enabling a more agile and competitive business Value unlock across the key metrics Proven transformation approach, Majority of CFC and capex reductions with Phoenix best practices incorporated achieved by FY23 Competitive asset returns Leveraging and augmenting 25% leaner management achieved Portfol
Slide 26: For today
for today We will share our vision for and how the Sasol 2.0 transformation will deliver it 1 Our case for change 2 The Sasol 2.0 transformation programme 3 Our ambition for Future Sasol 4 The path forward Copyright ©, 2020, Sasol 26
Slide 27: Be a leading, focused global specialty player
Be a leading, focused global specialty player Business repositioned to advance specialty chemicals growth • Expanded base of world class specialty chemicals assets with Strengthened market positions backward integration • Leading positions in Essential Care Geographic diversification and Advance
Slide 28: Leading the transition in Southern Africa
Leading the transition in Southern Africa Positioned for sustainable energy transition and growth • Leading the energy transition in South Africa Advantaged feedstock • Enhance fuels margins • Advantaged assets with enhanced Gas market access and leadership resilience • Portfolio resilience Di
Slide 29: Sustainability plans aligned to Paris goals
Sustainability plans aligned to Paris goals • Finalise 2050 sustainability • Advance technology and • Leadership position in Southern ambition for all regions¹ infrastructure development for gas Africa hydrogen economy transition ahead of 2030 • Implement no regret options with • Significant GHG² re
Slide 30: Future Sasol sustainability and value drivers
• Transition to cleaner energy solutions • Targets for 2030 and 20501 • Contributing to a sustainable • Sound corporate governance society • Circular economy solutions • Uplift host communities • Partner of choice • Energised and inspired people • Leadership positions in focus areas • Resilient at $
Slide 31: For today
for today We will share our vision for and how the Sasol 2.0 transformation will deliver it 1 Our case for change 2 The Sasol 2.0 transformation programme 3 Our ambition for Future Sasol 4 The path forward Copyright ©, 2020, Sasol 31
Slide 32: A balanced judgement
A balanced judgement PATHWAY KEY CONSIDERATIONS Sustainable capital structure <3,0x ND:EBITDA by June 2021 • Strengthen balance sheet and improve investment proposition Robust liquidity Cash conservation $ >US$2 billion Accelerated, expanded divestment programme Delivery of Sasol 2.0 initiatives
Slide 33: Go/No-Go
Investor FY21 H1 Capital Markets 2020 Update Results Day to date Dec 2020 Feb 2021 2021 Response plan Case for change Update on Strategy and delivery Sasol 2.0 Sasol 2.0 sustainability Future Sasol progress and update financing “Go/No-Go” Rights issue decision Copyright ©, 2020, Sasol 33
Slide 34: Return to blue-chip status, proudly rooted in South Africa
Future Sasol • Delivery of future sustainability goals Sasol 2.0 • Specialty chemicals growth Case for change • Lean and agile operating model • Sustainable Energy growth • Proven transformation approach • Cash flow resilient at $45/bbl oil • Robust initiatives underpinning targets • Disciplined cap
Slide 35: Q&A
Q&A Copyright ©, 2020, Sasol 35