Slide 1: Sasol Limited audited financial results for the year ended 30 June 2014
Sasol Limited audited financial results for the year ended 30 June 2014 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 President and Chief Executive Officer
Slide 4: What you will hear today: Key messages
What you will hear today Key messages • A new era for Sasol – repositioned, restructured and focused • Gas-based growth in Southern Africa • Business performance enhancement programme delivering results • Broader contributions to South Africa • Strong operational performance underpinning excellent f
Slide 5: Group-wide change programme
A new era for Sasol Group-wide change programme • 2012 • Started to reposition the organisation • Drove a single set of priorities with safe, stable and efficient operations at the core • 2013 • Prioritised our project portfolio • Articulated our near- to medium-term strategy – with a dual regional
Slide 6: A new era for Sasol: Repositioned, restructured and focused
A new era for Sasol Repositioned, restructured and focused Gas-based projects Disposal of Solvents Disposal of Arya in the US and Canada business in Germany business in Iran Qatar capacity Selected chemicals utilisation growth growth in the US from 81% to 97% Gas-based projects Upstream in South Afr
Slide 7: Significant progress across key metrics in the last financial years
A new era for Sasol Significant progress across key metrics in the last 3 financial years • Headline earnings per share up 78% (compounded annual growth 21%) • Dividend per share up 65% (compounded annual growth 18%) • Share price increased by 78% (compounded annual growth 21%) • Total shareholder r
Slide 8: Gas-based growth in Southern Africa
Gas-based growth in Southern Africa 9 of 17 largest gas discoveries in the last 5 years are in sub-Saharan Africa • Increasing production from Pande and Temane, Top 17 global gas discoveries 2008-2013 Mozambique 4 000 mmboe • Gas production up 13% year-on-year to 116mGJ (Sasol share) • 175 MW Centra
Slide 9: Business performance enhancement programme delivering results
Business performance enhancement programme delivering results Internal reorganisation on track • Leadership structures and appointments concluded • Restructuring process to be concluded in FY15 • New value chain-based operating model in place from 1 July 2014 • Corporate and legal structures simplif
Slide 10: Broader contributions to South Africa
Broader contributions to South Africa Strategies well-aligned with the National Development Plan • Invested R22 billion in capital expenditure • R60 billion in the last 3 years • Contributed R36 billion to direct and indirect taxes • R95 billion in the last 3 years • Spent over R1,4 billion on skill
Slide 11: Strong operational performance underpinning excellent financial results
Strong operational performance underpinning excellent financial results Business drivers supporting further earnings improvements • Solid foundation of safe and reliable operations • Synfuels production volumes of 7,6 million tons - highest in a decade • ORYX GTL plant achieved an average utilisatio
Slide 12: Financial and operational performance
Financial and operational performance Paul Victor Acting Chief Financial Officer
Slide 13: Favourable macro environment supported by weakening rand
Favourable macro environment supported by weakening rand Higher US gas prices and crude oil Weakening currency $/mmbtu (gas price) US$1 = ZAR US$/bbl Brent R10,39 Henry Hub $108,66 $109,40 R8,85 $3,51 $4,30 FY13 FY14 FY13 FY14 Improved chemical prices Commodity prices Average % ∆ vs US$/ton Ethylene
Slide 14: Group profitability
Group profitability Underpinned by SA Energy FY14 FY13¹ %∆ • Strong overall performance from SA Energy SA Energy 41,2 36,6 ▲ 12 despite largest shutdown in Synfuels’ history International Energy (6,9) (2,8) ▼140 • Increased volumes and higher product prices boosted chemicals profitability Chemicals
Slide 15: Cash fixed costs
Cash fixed costs Normalised costs 1,8% below South African PPI Costs and Restructuring Macro environment volumes cost 50 000 Rand million (5,2%) 44 265 (7,3%) 39 540 1,8% 38 825 (1,3%) 40 000 30 000 20 000 10 000 0 FY13¹ Sustainable Normalised cost Cash cost³ Inflation⁴ Exchange rate FY14 business s
Slide 16: Operating profit, including equity accounted earnings, improved by 12%
Operating profit, including equity accounted earnings, improved by 12% Notwithstanding once-off items and year-end adjustments Macro Costs and environment volumes 60 000 Rand million 28% 3% (16%) 50 000 (6%) 7% 45 818 (4%) 40 845 40 000 30 000 20 000 10 000 0 FY13¹ Exchange Crude oil and Once-off it
Slide 17: SA Energy
SA Energy Synfuels production exceeds expectations Operating profit (Rm) FY14 FY13¹ %∆ • Mining – increased production volumes and Mining 2 453 2 214 ▲11 normalised mining unit cost contained to 7% Gas 4 175 3 919 ▲ 7 • Gas – increased sales volumes and R453 million gain on disposal of Spring Lights
Slide 18: International Energy
International Energy ORYX GTL delivers record utilisation Operating profit (Rm) FY14 FY13¹ %∆ • ORYX GTL – average utilisation rate of 97% SSI (935) (991) ▲ 6 • SSI – lower operating loss, partial impairment SPI (5 981) (1 886) ▼217 of investment Production • SPI Mozambique and Gabon 2 474 1 638 ▲ 5
Slide 19: Chemicals
Chemicals Improved margins and volumes Operating profit (Rm) FY14 FY13¹ %∆ • Polymers – excluding R732 million once-off Polymers (767) (1 506) ▲ 49 items, operating business close to break even Solvents 200 825 ▼ 76 • Solvents – increased margins, operating profit up 54% excluding loss from disposal
Slide 20: Business performance enhancement programme
Business performance enhancement programme Cost savings realised, target increased Rand million Cost trend from FY16 to follow inflation Further potential upside Sustainable cost reduction R1,5bn expected savings R469m savings achieved 2 200 2 100 1 279 700 2014 2015 2016 2017 2018 Project implement
Slide 21: We remain committed to delivering value to shareholders
We remain committed to delivering value to shareholders Record interim dividend Progressive dividend growth Growth in headline earnings per share 25 70 Rand Rand Rand one year TSR¹ 53% 60 Rand five year TSR² 184% 20 50 15 40 30 10 20 5 10 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 Interim
Slide 22: Investing for sustainable growth
Investing for sustainable growth 57% of capital spend in South Africa Capital expenditure for FY14 by region Estimated capital expenditure (R40 billion) 70 Rand billion 65 60 30% 50 50 40 40 57% 30 6% 20 7% 10 South Africa Rest of Africa Europe North America 0 2014 act 2015 est 2016 est Sustenance G
Slide 23: FY15 profit outlook
FY15 profit outlook Business drivers support further earnings improvements • Production outlook • Synfuels volumes expected between 7,5 and 7,6 million tons • Average utilisation of ORYX GTL is expected to be about 85% (statutory shutdown) • Canadian shale gas production to remain at similar levels
Slide 24: Compelling investment case
Compelling investment case David E Constable President and Chief Executive Officer
Slide 25: Lake Charles Chemicals Project well advanced
Lake Charles Chemicals Project well advanced On track for final investment decision • Front-end engineering design work nearing completion with long leads ordered • Term-based feedstock supply contracts in place and pipeline transportation secured • Air, water and wetlands permits issued for cracker
Slide 26: Compelling investment case: Creating sustainable value
Compelling investment case Creating sustainable value Existing asset base Growth opportunities Value creation • Record operational • Near-term incremental • Solid balance sheet and performance growth strong cash flow support • New operating model • Gas-based growth in growth opportunities • Cost dis
Slide 27: Questions and answers
ee age SaSOu reaching new frontiers Questions and answers Anew era for Sasol
Slide 28: JSE: SOL NYSE: SSL
JSE: SOL NYSE: SSL