Slide 1: Capital Markets Day 2021
Copyright ©, 2021, Copyright Sasol © Sasol 2021
Slide 2: Forward-looking statements
Forward-looking statements Sasol may, in this document, make certain statements that relate to analyses and other information which are based on forecasts of future results (related to the future rather than past events and facts) and estimates of amounts not yet determinable. These statements may a
Slide 3: Agenda
Agenda 12:00 Opening remarks Sipho Nkosi 12:05 Our strategy to deliver a decarbonised future Fleetwood Grobler 12:45 Our financial framework Sipho Nkosi Fleetwood Grobler Chairman of the President and Paul Victor Sasol Board Chief Executive Officer 13:20 Leading the energy transition Priscillah Mabe
Slide 4: Opening remarks
OPENING REMARKS Sipho Nkosi Chairman of the Sasol Board Capital Markets Day 2021 4 Copyright ©, 2021, Sasol 4
Slide 5: Our strategy to deliver a decarbonised future
OUR STRATEGY TO DELIVER A DECARBONISED FUTURE Fleetwood Grobler President and Chief Executive Officer Capital Markets Day 2021 5 Copyright ©, 2021, Sasol 5
Slide 6: Grow shared value while accelerating our transition
OUR GROW SHARED VALUE WHILE ACCELERATING OUR TRANSITION Copyright © Sasol 2021 Capital Markets Day 2021 6
Slide 7: What you will hear today
What you will hear today Committed to Transforming Self-funded net zero1 by the business strategy and 2050; target while delivering dividends 30% reduction2 competitive restored by 2030 returns Advantaged Winning with and customers and OUR differentiated expanding FT technology leadership to win in
Slide 8: Sustainability is the defining topic until 2050
Sustainability is the defining topic until 2050 THE CURRENT REALITY POLICY & REGULATION CAPITAL TECHNOLOGY Regulation enabling sustainable Heightened focus of ESG Viable green technologies, businesses in mandates becoming more economic in future SASOL IS SHIFTING COURSE Preserve and grow value, Cont
Slide 9: Current and new markets offer profitable opportunities
Current and new markets offer profitable opportunities CORE MARKET RESILIENCE NEW ATTRACTIVE GLOBAL OPPORTUNITIES SUSTAINABLE H2 SAF RENEWABLES LIMITED DECLINE OF STRONG DEMAND CHEMICALS FUELS DEMAND IN GROWTH FOR SOUTHERN AFRICA CHEMICALS GLOBALLY 520Mt 75% 39% 88% In low-carbon H2 adoption of sust
Slide 10: Committed to net zero ambition by 2050
Advantaged and differentiated Sasol Committed to net FT technology zero ambition Clear by 2050 choices made Copyright © Sasol 2021 Capital Markets Day 2021 10
Slide 11: Multiple viable pathways to net zero by 2050
Multiple viable pathways to net zero by 2050 2030 2050 GHG REDUCTION TARGET INCREASED TO 30% CLEAR AMBITION TO ACHIEVE NET ZERO1 Optimal capital solution Optionality beyond 2030 Competitive and sustainable returns to reduce fossil fuel feedstock OUR TARGET SCOPE 1 AND 2 EMISSIONS PROFILE Our base Fi
Slide 12: Tripling our 2030 GHG reduction target
Tripling our 2030 GHG reduction target POINT OF 2030 2050 DEPARTURE TARGET AMBITION Energy3 63,9 -30% Scope 1 & 2 emissions1 Chemicals 3,0 -30% Net zero4 Scope 3 emissions2 Energy3 35,6 -20% Sustainability CAPEX (% of total CAPEX from Majority 2021 – 2030) 10 -15% *All values in million metric tons
Slide 13: A just transition
A just transition PRESERVE EMPLOYMENT OPPORTUNITIES1 ADAPT WORKFORCE • Create new opportunities • Anticipate long-term needs • Continued focus on localisation • Human capital planning for low carbon future • Partner with key stakeholders • Build fit-for-purpose future • Labour impacts mitigated to c
Slide 14: Future Sasol
Future Sasol FT SUSTAINABLE SOLUTIONS – ENERGY BUSINESS1 CHEMICALS BUSINESS1 Sasol ecoFT LEADING THE ENERGY TRANSITION IN GROWING WITH OUR UNIQUE CHEMISTRY BUILDING SUSTAINABLE BUSINESSES SOUTHERN AFRICA WITH OUR ADVANTAGED FT TECHNOLOGY • Decarbonise our operations • Lake Charles to full potential
Slide 15: Clear choices to deliver Future Sasol
Clear choices to deliver Future Sasol No investment Gas as a transition Integrated renewables in new coal reserves feedstock at scale Invest in sustainable, FT sustainable Leadership in Green H2 circular and specialty solutions in Southern Africa chemicals BALANCED APPROACH FOLLOWED ACROSS PEOPLE, P
Slide 16: Future Sasol 2050
Future Sasol 2050 Aviation fuels at 25%- 50% SAF blends, with Leads the early adoption significant contribution of Green H2 in SA -using from FT-PtX facilities. H2 as transport fuels. Sasol is the global FT Leading green ammonia technology leader exporter Operating close to Delivering ‘zero fossil f
Slide 17: A dynamic, adaptable roadmap
A dynamic, adaptable roadmap Ambition Until FY30 FY25 30% reduction FY50 target Net zero RESET TRANSITION REINVENT Strengthen balance sheet Continue to decarbonise assets Approach zero fossil fuels for Portfolio optimisation SA assets Develop circular chemicals solutions Restore dividends Developed
Slide 18: Our unique competitive advantages
Our unique competitive advantages TECHNOLOGY ASSETS PEOPLE MARKET LEADERSHIP • Advantaged and differentiated • Integrated value chains • Engineering / technical • Energy leader in Southern FT technology know-how Africa, with iconic brand • Access to advantaged • Unique chemistry solutions feedstocks
Slide 19: Advantaged and differentiated FT Technology
Advantaged and differentiated FT Technology HYDROGEN SOURCES WIDE RANGE OF APPLICATIONS Grey H2 FT Synthesis Blue H2 Flexibility to shift to Blue / Green H2 Green H2 SUSTAINABLE CHEMICALS CARBON SOURCES Coal Gas Bio feedstock Carbon agnostic; potential for unlimited Industrial processes (CCUS) susta
Slide 20: Sustaining and building new capabilities
Sustaining and building new capabilities + Today’s unique ENHANCE CUSTOMER NEW VALUE POOL MARKET MORE PARTNERING, LEVERAGE TECHNOLOGY advantages EXPERIENCE DEVELOPMENT M&A INNOVATION & DIGITAL ADDRESSED THROUGH Build in-house Attract expertise Deliver strategic partnerships Upskilled >1 000 employee
Slide 21: Purpose: Innovating for a better world
Purpose Innovating for a better world Copyright © Sasol 2021 Capital Markets Day 2021 21
Slide 22: Our financial framework
OUR FINANCIAL FRAMEWORK Paul Victor Group Chief Financial Officer Capital Markets Day 2021 22 Copyright ©, 2021, Sasol 22
Slide 23: What you will hear today
What you will hear today Self-funded Competitive Focused and emission and competitive reduction sustainable business pathway up to returns 2030 Robust balance sheet Targeted 30% GHG Disciplined capital reduction self-funded allocation OUR Resilient, cash generative business Investment case Clear str
Slide 24: Deliver competitive and sustainable returns over time
Deliver competitive and sustainable returns over time STRATEGIC PRIORITIES KEY PRIORITIES KEY PRIORITIES UP TO FY25 UP TO FY30 OPERATIONAL PERFORMANCE EARNINGS CAPITAL GROWTH STRUCTURE Strengthen balance sheet Deleverage and Maintain a robust, deliver attractive and Self-funding transition flexible
Slide 25: Sasol 2.0 resets and enables our transition
Sasol 2.0 resets and enables our transition FY25 TARGETS1 FY23 PLANS TYPICAL VALUE UNLOCKING INITIATIVES... Cash fixed cost R8 - 10bn > R5bn • Operating model and restructuring completed: ~R3,0bn p.a reduction • Mining Fulco ramp-up to FY23: R0,3 - 0,5bn p.a Gross margin R6 - 8bn > R3,5bn uplift • S
Slide 26: Resilient, greener and growing value over time
Resilient, greener and growing value over time FINANCIAL OBJECTIVES INFORMED BY FY25 TARGETS FY30 TARGETS and ROIC (Rand) 12 - 15% >15% Step up in returns through Sasol 2.0 and LCCP ramp-up Dividend 2,8 - 2,5x 2,5x Balance sheet strength allows strategy execution 1,0 - 1,5x Net debt/ EBITDA1 1,0 - 1
Slide 27: Delivering competitive returns while transforming the portfolio
Delivering competitive returns while transforming the portfolio SASOL ENERGY CHEMICALS SA CHEMICALS INT Rand % – Group Weighted Rand % Rand % US Dollar % $65/bbl $55/bbl WACC 10,0% 13,5% 13,5% 8,0% FY211 FY25 FY30 FY211 FY25 FY30 FY211 FY25 FY30 FY211 FY25 FY30 Sasol 2.0 Competitive returns despite
Slide 28: Disciplined capital allocation
Disciplined capital allocation CAPITAL ALLOCATION PRIORITIES MAINTAIN CAPITAL Safe, effective and reliable operations and protect license to operate ~R20 - 25bn TRANSFORM CAPITAL per annum Deliver GHG reduction targets 1st order SELECTIVE GROWTH/IMPROVE CAPITAL Allocation Smaller high return, short
Slide 29: Investment criteria supporting capital allocation
Investment criteria supporting capital allocation PRE- 2030+ 2030+ 2030 MATCHING PLANET AND PROFIT OBJECTIVES • Rigorous risk adjusted return assessment • Balanced portfolio in line with strategy • Effective use of partnerships • Flexibility for growth at scale BALANCED PORTFOLIO TARGETED INCREMENTA
Slide 30: Reinvestment to maintain, transform and grow portfolio
Reinvestment to maintain, transform and grow portfolio DISCRETIONARY CAPITAL INCREASE AFTER OUR FOCUS WILL SHIFT FROM MAINTAIN / BALANCE SHEET DELEVERAGING TRANSFORM TO GROWTH Maintain capital prioritised to deliver safe and reliable operations Potential allocation of growth capital post dividends1
Slide 31: Attractive and sustainable returns to our shareholders
Attractive and sustainable returns to our shareholders Preserve and grow value to 2030 while delivering GHG reduction target Build on early success of Sasol 2.0 Resilient, strategy-focused approach with clear financial targets Restore dividends, improve payout Deleveraging with potential for additio
Slide 32: Leading the energy transition
LEADING THE ENERGY TRANSITION Priscillah Mabelane Executive Vice President: Energy Capital Markets Day 2021 32 Copyright ©, 2021, Sasol 32
Slide 33: What you will hear today
What you will hear today Cost Unlocking value Advantaged, competitive through flexible assets and highly differentiated and distinctive cash customer capabilities generative offerings Net zero1 by Leveraging OUR 2050; tripling partnerships GHG to build new reduction2 capabilities target by 2030 GROW
Slide 34: Shifting global megatrends creates new opportunities
Shifting global megatrends creates new opportunities GROWING POPULATION AND RISE ENERGY MIX SHIFTING TO MORE AFFORDABLE LOW CARBON SHIFT TO E-MOBILITY OF MIDDLE CLASS LOW CARBON TECHNOLOGIES Growing demand for energy Fossil-based supply shift to Green H2 expected to Gradual shift in mobility to desp
Slide 35: Unique potential for low carbon energy
Unique potential for low carbon energy SOUTH AFRICA FACES UNIQUE CHALLENGES …BUT HAS HUGE HYDROGEN OPPORTUNITY • High per capita GHG emitter given • Advantaged endowment for renewables coal-based economy • Vast mineral resources including PGMs • Stalled growth and high unemployment to create new ind
Slide 36: Ambition to lead the energy transition in Southern Africa
Ambition to lead the energy transition in Southern Africa DECARBONISE1 PRESERVE1 GROW NEW VALUE POOLS1 Transition to lower carbon Safe and reliable operations Reinvent mobility offering feedstocks “People-first, customer-first” Green H2, green ammonia and Improve efficiency sustainable fuels Deliver
Slide 37: Clear choices made to achieve Future Sasol
Clear choices made to achieve Future Sasol No investment in new coal reserves Gas as a transition feedstock Intensify investment in integrated Leadership in Green H2 in Southern Africa renewable plays BALANCED APPROACH FOLLOWED ACROSS PEOPLE, PLANET AND PROFIT Copyright © Sasol 2021 Capital Markets
Slide 38: Transitioning to more sustainable feedstock
Transitioning to more sustainable feedstock Coal Coal Gas Gas Green H2 and biogenic feedstock / DAC 2020 2030 2050 Range Range of possibilities of possibilities for feedstock for feedstock mix by mix by 2050 with 2050, with offsets to provide further flexibility CDRs to neutralise residual and hard
Slide 39: Advantaged asset base provides a foundation to transition
Advantaged asset base provides a foundation to transition ROBUST AND RESILIENT INFRASTRUCTURE SECUNDA SASOLBURG GO-TO-MARKET INFRASTRUCTURE • Highly cash generative • Advantaged assets for local and export markets • Advantaged gas and liquid fuels infrastructure • Resilient to price volatility • Fle
Slide 40: Flexible asset base repurposed for low carbon solutions
Flexible asset base repurposed for high-value low carbon solutions LEVERAGING EXISTING ASSETS TO TRANSFORM QUICKER AND MORE COST EFFECTIVELY COMPARED TO COMPETITORS EXISTING NEW FT Refining and ASSETS ASSETS Biomass Gasification synthesis Conversion Sustainable Carbon liquid fuels and chemicals DAC
Slide 41: Clear roadmap to deliver GHG reduction target
Clear roadmap to deliver GHG reduction target TRIPLING GHG REDUCTION TARGET KEY LEVERS FOR REDUCTION TARGET SCOPE 1 AND 2 EMISSIONS Scope 1 & 2: 30% by 2030 Mtpa ENERGY • Process efficiency and waste heat recovery EFFICIENCY 36 • Additional 40 - 60 PJ/a through LNG imports ADDITIONAL and debottlenec
Slide 42: Growing and leading new value pools in Southern Africa
Growing and leading new value pools in Southern Africa GREEN H2 & AMMONIA EXPORTS DOMESTIC PtX AND GREEN H2 SUSTAINABLE AVIATION FUELS • Advantaged and low cost green producer for • Alternative fuel for heavy duty transport • SAF as the best viable large-scale carbon global markets • Sustainable che
Slide 43: Generating strong returns to 2030
Generating strong returns to 2030 ENERGY ROIC RAND (%) KEY DRIVERS Oil price US$65/bbl • R7bn EBITDA uplift through Sasol 2.0 by FY25 Sasol 2.0 • Highly cost competitive with cash breakeven between US$30 - Efficiencies net of decarbonisation costs US$55/bbl 35/bbl until 2030 • Market leadership in m
Slide 44: Delivering value and accelerating decarbonisation
Delivering value and accelerating decarbonisation Advantaged assets and capabilities To create value and fund the transition Flexible pathways to net zero by 2050 Credible plans to meet our 2030 GHG reduction target Cost competitive gas feedstock with optionality Multiple sources for own feedstock a
Slide 45: Leveraging our advantaged FT technology
LEVERAGING OUR ADVANTAGED FT TECHNOLOGY Marius Brand Executive Vice President: Sasol 2.0 Transformation Capital Markets Day 2021 45 Copyright ©, 2021, Sasol 45
Slide 46: What you will hear today
What you will hear today New FT FT technology is Sasol the Sustainable Sustainable fuels advantaged with undisputed Solution BU key to aviation near unlimited global FT leader partnering for decarbonisation feedstock and with differentiated ecosystem high abatement solutions innovation and success O
Slide 47: SAF key to aviation industry challenge
Sustainable Aviation fuel (SAF) key to aviation industry challenge SAF KEY TO AVIATION DECARBONISATION INCREASING SAF PENETRATION Aviation fuel demand, in Mtpa (2019-2050) 2050 SAF Aviation represents 2,5% of global carbon emissions Split by SAF and Fossil Kerosene penetration 25-50% IATA targeting
Slide 48: PtX positioned to meet SAF demand in medium term
PtX positioned to meet SAF demand in medium term SAF TECHNOLOGY SOLUTIONS HYDROPROCESSED OILS & FATS (HEFA) ALCOHOL-TO-JET & GASIFICATION PtX FOR SAF Mature and proven In development Developing EU HEFA cost Range between ME (low) Gasification and EU (high) PtL costs Maturity Alcohol to Jet & cost (U
Slide 49: Sasol can lead PtX based on proven FT experience
Sasol can lead PtX based on proven FT experience and technology Gasification Biomass / Municipal Solid Carbon Waste FT synthesis Hydro Cracking RWGS Sustainable synthetic products • Jet fuel (SAF) Direct Air Carbon • Diesel Capture • Naphtha • Chemicals Electrolysis Renewable Energy Hydrogen UNDISPU
Slide 50: Sasol the leader in synthetic jet fuel
Sasol the leader in synthetic jet fuel 1991 1999 2008 2010 TODAY Pursuit of Received Received certification First passenger Global leader in synthetic fuels certification for for our fully synthetic flight with fully synthetic jet fuel, production semi-synthetic jet jet fuel synthetic jet fuel suppl
Slide 51: Our risk mitigated go to market approach
Our risk mitigated go to market approach Phased Demo ventures to 2025, Mid-sized units to 2035; Global portfolio post 2035+ market entry Phased co-investing, instead of sole investment Partnering Equity positions with key partners, closing technology and market gaps for success Secure offtake while
Slide 52: Launched Sasol ecoFT our FT Sustainable Solutions business
Launched Sasol ecoFT our FT Sustainable Solutions business Expanding team & capabilities Leadership being positioned Broadening partnerships across ecosystem Building commercial pipeline with attractive financing options for demonstration units in the short term Advancing monetisation Licensing, cat
Slide 53: Building sustainable businesses with our advantaged FT technology
Building sustainable businesses with our advantaged FT technology Significant SAF and PtX global opportunity Benefitting from renewable energy cost experience Sasol has unique FT experience and advantaged technology Proven at scale: feedstock options, product flexibility, high yields Leader in synth
Slide 54: Growing with our unique chemistry
GROWING WITH OUR UNIQUE CHEMISTRY Brad Griffith Executive Vice President: Chemicals Capital Markets Day 2021 54 Copyright ©, 2021, Sasol 54
Slide 55: What you will hear today
What you will hear today Well-invested, Unique Shift to high- advantaged Embracing portfolio and margin global asset sustainability technology specialty base leadership solutions OUR GROW SHARED VALUE WHILE ACCELERATING OUR TRANSITION Copyright © Sasol 2021 Capital Markets Day 2021 55
Slide 56: Advancing our Future Sasol ambition
Advancing our Future Sasol ambition SHIFT TO HIGHER MARGIN FOUNDATION FOR FULL POTENTIAL TRANSFORMATION IMPERATIVES1 SPECIALTY SOLUTIONS • Streamlined customer-centric • LCCP commercial ramp up; • Strengthen and extend organisation to unlock value value unlock from Sasol 2.0 leadership positions in
Slide 57: Changing environment provides exciting opportunities
Changing environment provides exciting opportunities OPPORTUNITIES TO PARTNERING TO ANSWER THE GROWTH IN WASTE-REDUCING SOLUTIONS ALIGNED TO DECARBONISE PRODUCTION SUSTAINABILITY CALL AND CIRCULAR SOLUTIONS POWERFUL MEGATRENDS As both a consumer and Our branched alcohols Our alcohols enable Supplier
Slide 58: Delivering value from our US operations
Delivering value from our US operations Chemicals America EBITDA (US$ bn) 0,9 – 1,1 0,7 – 0,9 0,7 – 0,9 ROIC > WACC underpinned by incremental capex LCCP Legacy 5 year avg. Prior guidance FY24 FY25 Projection FY26-30 (Legacy + LCCP - 50% sold) OUR COMMERCIAL RAMP UP HIGH VALUE GROWTH PROJECTS • LIP
Slide 59: Lake Charles Site - further growth as a sustainability hub
Lake Charles Site - further growth as a sustainability hub DEVELOPMENT ADVANTAGED PRIME TRANSPORT SUSTAINABILITY SASOL AS A READY LAND FEEDSTOCK INFRASTRUCTURE OPPORTUNITIES REPUTABLE ACCESS PARTNER MULTIPLE ATTRACTIVE OPPORTUNITIES FOR EXPANSION AS A SUSTAINABILITY HUB WITH PARTNERS Copyright © Sas
Slide 60: Actioning our chemistry and partnerships for circular solutions
Actioning our chemistry and partnerships for circular solutions Creating ecosystems for lower carbon production in Italy Collaboration with suppliers and customers to use circular and renewable feedstock Through collaborative innovation, we are working to reduce scope 3 emissions1 and create reducti
Slide 61: Targeting a 30% GHG reduction by 2030
Targeting a 30% GHG reduction by 2030 CLEAR PATH TO REDUCE GHG EMISSIONS KEY LEVERS FOR REDUCTION TARGET: 30% reduction of Scope 1 & 2 by 2030 Renewable energy Renewable power purchases Mtpa for major production sites Growth Process optimisation through Americas digitalisation and energy efficiency
Slide 62: Our proprietary technologies offer distinct advantages
Our proprietary technologies offer distinct advantages CHEMISTRY AND ASSET BASE DURABLE COMPETITIVE COMPELLING SOLUTIONS WELL-ADAPTED TO FLEXIBLE ADVANTAGES FOR A BETTER WORLD FEEDSTOCKS “Sunscreen” for plants Additives for faster & Differentiated Products in a warming world cleaner construction • D
Slide 63: Unlocking growth through unique portfolio advantages
Unlocking growth through unique portfolio advantages ESSENTIAL ADVANCED PERFORMANCE BASE CARE CHEMICALS MATERIALS SOLUTIONS CHEMICALS LEADER IN FABRIC & HOME CARE PARTNER OF CHOICE CUSTOM SOLUTIONS LEADER IN SOUTHERN AFRICA • Broadest alcohols portfolio • Proprietary alumina technology • Custom solu
Slide 64: Our unique portfolio opens up a world of growth opportunities
Our unique portfolio opens up a world of growth opportunities ESSENTIAL ADVANCED PERFORMANCE BASE CARE CHEMICALS MATERIALS SOLUTIONS CHEMICALS STRATEGIC INTENT Steady growth Accelerate growth High-value growth Unlock value Leveraging our unique Extending specialty products High performance & sustain
Slide 65: Growing chemicals with our unique chemistry
Growing chemicals with our unique chemistry Well-invested, advantaged global asset base LCCP to full potential Asset base well-adapted to flexible feedstocks Embracing sustainability Creating opportunities for scope 3 reductions Unique portfolio and technology leadership Expanding market leading pos
Slide 66: Closing remarks
CLOSING REMARKS Fleetwood Grobler President and Chief Executive Officer Capital Markets Day 2021 66 Copyright ©, 2021, Sasol 66
Slide 67: What you heard today
What you heard today Committed to Advantaged net zero1 by Attractive and Shift to high- FT FT sustainable 2050; target sustainable margin technology; solutions 30% shareholder specialty leveraging launched reduction2 by returns solutions existing assets 2030 OUR GROW SHARED VALUE WHILE ACCELERATING
Slide 68: Sasol's Investment case
Sasol's Investment case PORTFOLIO PERFORMANCE POTENTIAL Flexible pathways to net zero ambition Assets with optimal capital 30% GHG reduction target by 2030 by 2050 requirements >15% ROIC through transition Leadership in Green H2 in Southern Optionality with diversified portfolio Africa 1,5x ND:EBITD
Slide 69: Live Q&A
Live Q&A Fleetwood Paul Priscillah Marius Grobler Victor Mabelane Brand President and Group Chief Executive Vice Executive Vice President: Chief Executive Officer Financial Officer President: Energy Sasol 2.0 Transformation Brad Charlotte Vuyo Bernard Griffith Mokoena Kahla Klingenberg Executive Vic
Slide 70: Abbreviations and definitions
Abbreviations and definitions bbl barrel IEA International Energy Association bn billion kg Kilogram BU Business unit LCCP Lake Charles Chemicals Project CCUS Carbon capture, utilisation and storage LEN Linde, Enertag and Navatis CO2 Carbon dioxide LIP JV Louisiana Integrated Polyethylene Joint vent
Slide 71: Sasol Investor Relations
Sasol Investor Relations South Africa Tiffany Sydow Vice President: Investor Relations Tiffany.sydow@sasol.com Natalie Bounds Senior Manager: Investor Relations Natalie.bounds@sasol.com investor.relations@sasol.com Tel: +27 (0) 10 344 9280 Copyright © Sasol 2021 Capital Markets Day 2021 71