Slide 1: Financial results for the six months ended 31 December 2011
financial results for the six months ended 31 December 2011 JSE: SOL | NYSE: SSL
Slide 2: 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 also relate to our future pros
Slide 3: Introduction
introduction David E Constable chief executive officer JSE: SOL | NYSE: SSL
Slide 4: Going to the 2012 games: Olympics and Paralympics
going to the 2012 games: Olympics and Paralympics Banyana Banyana Sasol South Africa Wheelchair Basketball Team 4
Slide 5: What you will hear today: key messages
what you will hear today key messages ● Record interim earnings ● Solid group operational performance ● Our strategic agenda continues to serve us well ● Project pipeline offers significant opportunity ● Compelling investment proposition We remain committed to maximising long-term shareholder value
Slide 6: Global energy trends: towards the golden age of gas
global energy trends towards the golden age of gas ● Global energy demand will be ~ 30% higher Global consumption of fossil fuels % 55 by 2040 led by developing regions ● Most widely used fuels will remain oil, coal 45 and gas ● Natural gas will grow dramatically over time 35 to overtake oil 25 ● By
Slide 7: Making a positive contribution in South Africa
making a positive contribution in South Africa ● Largest corporate taxpayer ● Hundreds of millions of rand invested in bursaries, skills development initiatives, artisan learnerships and continuing tertiary education ● R14bn Sasol Mining investment in three mines, resulting in • more than 4 000 jobs
Slide 8: 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 manufacturing ● In-country investment and use of resources ● Driving significant skills transfer to the local wo
Slide 9: Pursuing responsible growth
pursuing responsible growth sustainable operations ● Safety • RCR maintained • Safety improvement plans implemented ● Energy efficiency initiatives and policies • On track for 15% reduction in energy consumption in 2015 • 60% self-generated power capacity in 2013 • Active member of “Team SA” at COP1
Slide 10: Solid operations: operations highlights
solid operations operations highlights ● Production improvements at ORYX GTL and Arya Polymers ● Canadian shale gas assets ramping up ● Chemicals maintain strong contribution to group operating profit ● Decrease in Synfuels production contained to 1,3%, despite industrial action and plant incidents
Slide 11: Delivering superior shareholder returns: financial performance highlights
delivering superior shareholder returns financial performance highlights ● Operating profit up 70% to R20,5bn ● Headline earnings per share up 81% to R23,50 ● Cash generated by operations up 50% to R22,7bn ● Interim dividend up by 84% to R5,70 per share ● Strong balance sheet maintained Record first
Slide 12: Financial and operational review
financial and operational review Christine Ramon chief financial officer JSE: SOL | NYSE: SSL
Slide 13: Favourable macro environment
favourable macro environment Fuel, oil and US gas prices Currency 160 10 US$1 = Rand Brent $130 US$/bbl $/mmbtu (gas price) Product price Henry Hub (RHS) $91 $111 R7,63 80 $82 5 R7,11 $4,04 $3,72 0 0 1H11 1H12 1H11 1H12 Chemical prices Commodity prices Average % ∆ vs Rand/unit 1H12 1H11 US$/ton Solv
Slide 14: Strong growth in operating profit
strong growth in operating profit % ∆ vs Operating profit (Rbn) 1H12 1H11 SA Energy 13,5 ▲81 ● SA Energy benefits from higher prices International Energy 1,2 ▲32 ● Strong performance from ORYX GTL ● Chemicals deliver higher product prices and wider Chemicals 4,3 ▲26 margins Other 1,5 ● Mark-to-marke
Slide 15: Weaker rand, energy costs and plant maintenance impact cash fixed costs
weaker rand, energy costs and plant maintenance impact cash fixed costs cash fixed costs (Rm) 20 000 13% ∆ 2% 2% 16 484 8% 14 632 1% 14 707 15 000 Cash fixed costs in real terms 10 000 up 3% 5 000 0 1H11 Growth Period-on- Inflation Exchange Maintenance 1H12 period rate normalised 15
Slide 16: SA energy: strong profit and cash flow generator
SA energy: strong profit and cash flow generator % ∆ vs Operating profit (Rm) 1H12 1H11 Mining 1 002 ▲42² ● Mining achieves higher prices, production up Gas 1 461 ▲14 ● Gas benefits from improved sales prices and higher volumes Synfuels 9 909 ▲84 Oil 1 099 ▲65 ● Synfuels higher average rand oil pric
Slide 17: International energy: ORYX drives growth in profitability
international energy: ORYX drives growth in profitability Operating profit (Rm) 1H12 1H11 SSI 1 033 539 ● ORYX delivers strong performance ● ORYX 1 584 871 • 28 700 bbl/d, 89% utilisation ● Funding growth (551) (332) • Contributes 8% to group operating profit SPI 121 333 ● SPI benefits from higher p
Slide 18: Chemicals cluster: sound business model drives margin expansion
chemicals cluster: sound business model drives margin expansion % ∆ vs Operating profit (Rm) 1H12 1H11 Polymers 546 ▼ 5 ● Polymers strong international contribution, local margins under pressure Solvents 1 115 ▲153 • Arya ramps up to design capacity O&S 1 660 ▲ 4 ● Solvents driven by higher product
Slide 19: Cash flows drive strong dividends
cash flows drive strong dividends 1H12 Estimated total capital investments (Rm) Uses of cash (Rbn) Potential gas 40 000 acquisitions 32 000 5,2 30 000 29 000 24 488 20 000 14,5 10 000 6,1 0 2011a 2012e 2013e Taxation Dividends Capex Other Chemicals SA Energy Int Energy Well positioned to fund growth
Slide 20: Committed to delivering superior shareholder returns
committed to delivering superior shareholder returns Dividend per share (ZAR) 18 Rand TSR³ 77% US$ TSR³ 53% 12 6 0 2006 2007 2008 2009 2010 2011 2012 Interim Final Progressive dividend growth 3. Source: Bloomberg 31 December 2006 to 31 December 2011, assuming dividends are reinvested in Sasol Ltd se
Slide 21: Outlook
outlook Operational performance FY12 Macro environment remains uncertain ● Production ● Oil price remains strong • Synfuels full year target of 7,0 to ● Chemical prices under pressure 7,2 million tons ● Rand strengthening remains a major risk • Maintain ORYX at 80-90% utilisation rates • Arya utilis
Slide 22: Sustainable value creation
sustainable value creation David E Constable chief executive officer JSE: SOL | NYSE: SSL
Slide 23: Our strategic agenda continues to serve us well
our strategic agenda continues to serve us well Foundation Sustainable growth Definition of victory Operations Accelerate GTL, Excellence Develop and empower focused CTL growth our people Functional Excellence Grow related upstream Group imperatives business Capital Excellence Continuously improve G
Slide 24: 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 on ● Integrated US chemicals ● Tetramerisation basis of technology or feedstock advantage ● Ethane Cracker ● FT wax expansion New Ener
Slide 25: Canadian upstream assets
Canadian upstream assets developments ● Development at Farrell Creek continues despite production challenges ● Farrell Creek achieved peak production of 107 mmscf/d in December 2011 ● Production at Cypress A well above expectations ● Focus on driving down drilling and completion costs and optimising
Slide 26: The role of chemicals
the role of chemicals the contribution of the chemicals cluster ● Chemicals generated 21% of group operating profit ● Established competitive market positions ● Optimised integration opportunities spreads risk and maximises value ● Provides balance to Sasol’s GTL portfolio Polymers, Secunda, South A
Slide 27: A compelling investment proposition
a compelling investment proposition Solid foundation Compelling Superior businesses, growth shareholder strong cash flows strategy returns ● Continuously ● Growing demand for ● Solid balance sheet improving foundation energy security underpins growth businesses ● Ability to monetise ● Progressive di
Slide 28: Questions
questions JSE: SOL | NYSE: SSL