Slide 1: Annual Results for the year ended 30 June 2020
ANNUAL RESULTS for the year ended 30 June 2020 Copyright ©, 2020, Sasol
Slide 2: FY20 Annual Results
FY20 ANNUAL RESULTS ◉ Business results overview Fleetwood Grobler ◉ Financial results Paul Victor ◉ Future Sasol Fleetwood Grobler Copyright ©, 2020, Sasol 2
Slide 3: 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 4: Business Results Overview
◉ BUSINESS RESULTS OVERVIEW Fleetwood Grobler Copyright ©, 2020, Sasol 4
Slide 5: Key messages
Key messages • Committed to achieve our goal of zero harm; focus on reinforcing safe behaviours SAFETY AND • Integrated response prioritises the wellbeing of our employees and communities COVID-19 • Business continuity ensured through pro-active and robust measures • Business actions significantly m
Slide 6: Safety and COVID-19: Relentlessly driving zero harm
Safety and COVID-19 | Relentlessly driving zero harm to prevent fatalities Fatalities, LWDCs and RCR 6 Tragic fatalities – unacceptable loss of life 120 0,30 Our efforts towards zero harm strengthened, with executive 100 intervention, reinforcing safe behaviours 0,28 LWDC and fatalities 80 0,26 ● CE
Slide 7: Safety and COVID-19: Our response to the global pandemic
Safety and COVID-19 | Our response to the global pandemic EMPLOYEE SAFETY AND BUSINESS COMMUNITIES AND SOCIETY CONTINUITY ~60 000 litres Increased sanitiser and 6 Reset of shifts disinfection, WHO1-compliant ~240 000 litres multi- functional >1 million litres jet and work screening and hand sanitise
Slide 8: Operational performance: FY20 H2 impacted by COVID-19
Operational performance | FY20 H2 impacted by the COVID-19 global pandemic Southern African Operations H2 production impact1 Our agile response ▲ 2% higher Mining production Dedicated response teams Limited COVID-19 impact on operations proactive COVID-19 measures and protocols enabled ▼ 8%2 lower S
Slide 9: Operational performance: LCCP operational and ramp up
Operational performance | LCCP operational and ramp up key PROJECT OPERATIONS FINANCIAL RESULTS UPDATE AND MARKETING AND OUTLOOK • Excellent safety performance • 86% of total LCCP capacity2 operational • Capital expenditure tracking US$12,8bn • RCR of 0,111 • LLDPE producing at nameplate capacity gu
Slide 10: Financial performance: Global macroeconomic uncertainty continues
Financial performance | Global macroeconomic uncertainty continues Brent crude oil Exchange rate H1 FY20 H2 FY20 H1 FY20 H2 FY20 63 40 37% 14,70 16,67 13% US$/bbl US$/bbl R/US$ R/US$ FY21 OUTLOOK 35 - 45 US$/bbl FY21 OUTLOOK 16,00 – 17,00 R/US$ Ethane Polyethylene H1 FY20 H2 FY20 H1 FY20 H2 FY20 18
Slide 11: Financial performance: Impacted by a challenging environment
Financial performance | Impacted by a challenging environment Operating cash flow Cash fixed costs Impairments R42bn R58bn R112bn 18% lower 4% lower in real terms Lower long-term price assumptions Lower oil, product prices and volumes Benefitting from self help measures Liquidity Capex 1 Net debt: E
Slide 12: Expanded and accelerated asset disposal programme
Financial performance | Expanded and accelerated asset disposal programme Current disposal activity Completed and well advanced includes inter alia US$0,6bn1 + >US$2bn target Air separation units US Base Chemicals Exclusive agreement signed with partnering Air Liquide for Secunda units ROMPCO2 Explo
Slide 13: Financial performance: Deleveraging pathway
Financial performance | Deleveraging pathway FY20 cash Liquidity: Improved position, with effective operational ramp up post COVID-19 savings achieved Cash improvement: Self help measures yielded positive results Disposals: FY20 Explosives and EGTL completed; ASU1 disposals agreed; US Base
Slide 14: Financial Results
◉ FINANCIAL RESULTS Paul Victor Copyright ©, 2020, Sasol 14
Slide 15: Key messages
Key messages • Group profitability impacted by macroeconomics and COVID-19 FINANCIAL • Adverse outlook on pricing and demand results in significant impairments RESULTS • Self-help measures yielding positive results • Increased balance sheet flexibility through covenant amendments BALANCE SHEET • Cas
Slide 16: Financial results: Group profitability by segment
Financial results | Group profitability by segment FY19 EBIT 9 697 FY20 FY19 Annual H1 H2 %∆ FY20 FY20 Exchange rate 95% Mining 2 665 2 604 5 269 6 869 23▼ Macro Exploration and Production International (EPI) 1 567 1 826 3 393 2 762 23▲ Crude oil and product prices (>100%) environment Performance Ch
Slide 17: Financial results: Segmental highlights compared to prior year
Financial results | Segmental highlights compared to prior year EXPLORATION AND MINING ENERGY PRODUCTION ▼4% productivity ▼ 12% fuels sales ▲ >100% EBIT Productivity trending positively in H2 FY20 Further impacted by lower oil prices No impairment in FY20 R347/t EBIT impacted by lower prices R12bn 1
Slide 18: Balance sheet: Decisive actions to address market conditions
Balance sheet | Decisive actions to address current market conditions FCF1 inflection point Accelerated asset Balance sheet disposals flexibility Maintained US$0,6bn Covenant Supported by response plan Completed and well advanced amendments performance >US$2bn target Agreed Cash savings Rights Issue
Slide 19: Balance sheet: Proactive management continues
Balance sheet | Proactive management continues FY20 FY21 mitigation mitigation Future Sasol measures measures aspiration realised on track US$2,5bn liquidity >100% above guidance Covenant amended1 to 4x Clear portfolio choices results in Covenant waived Plans to deliver US$1bn cost savings
Slide 20: Balance sheet: Capital spend normalising
Balance sheet | Capital spend normalising • FY20 capital reprioritised in line with our response plan 70 • Remaining cash flow for LCCP of R1bn (US$75m) in FY21 60 56 • Sufficient sustenance and environmental capital allocated 3 50 • ensuring safe and reliable operations 40 30 35 • supporting our lo
Slide 21: Outlook FY21
Outlook | FY21 UPSTREAM ENERGY GROUP • Normalised Mining unit cost of • Liquid fuels sales 54 – 55 mmbbls R340 – R360/t • ORYX GTL average utilisation of • Net debt: EBITDA1 below covenant • Mozambique gas production 75 – 80% levels 114 – 118bscf • Normalised cash fixed costs within inflation • Cost
Slide 22: Future Sasol
◉ FUTURE SASOL Fleetwood Grobler Copyright ©, 2020, Sasol 22
Slide 23: Future Sasol: Our aspiration
Future Sasol | Our aspiration Distinct portfolios with A simpler, more agile differentiated capabilities organisation that provides a great place to work A more modern Sasol leveraging Delivering triple bottom our proprietary technologies line outcomes and unique chemistry A more resilient future Sa
Slide 24: Future Sasol: Our portfolio to deliver value
Future Sasol | Our portfolio to deliver value Chemicals Energy Leveraging integrated value chains for high- Strong cash generator with stable long value returns term profile Focus areas • Improve economic value and cost competitiveness • Align our business with powerful megatrends • Reduce the carbo
Slide 25: Future Sasol: Sustainability roadmap for South Africa
Future Sasol | Sustainability roadmap for South Africa1 AT LEAST 10% GHG EMISSION REDUCTION2 4 - 5% GHG EMISSION REDUCTION 6 - 7% GHG EMISSION REDUCTION 2017 2020 2025 2050 2030 63,9 61,9 ~ 60,7 57,5 target Mt CO2e Mt CO2e Mt CO2e Mt CO2e to be set in 2021 Additional gas conversion Energy and proces
Slide 26: Future Sasol: Key management steps to deliver
Future Sasol | Key management steps to deliver Optimisation Operating Leadership Financial and Sustainability model changes targets Governance Revised operating Embed new executive Benchmarking Credible targets to Defining our purpose model aligned to our structure and define and diagnostic FY25, un
Slide 27: Future Sasol: Value creation through focus, sustainability and performance
Future Sasol | Value creation through focus, sustainability and performance Strategic Strong balance focus sheet A MORE Increasingly Clear capital sustainable RESILIENT allocation SASOL Diverse and inclusive Long term workplace with high- profitability performing people Copyright ©, 2020, Sasol 27
Slide 28: Abbreviations
Abbreviations BC Base Chemicals JV joint venture B-BBEE broad-based black economic empowerment LCCP Lake Charles Chemicals Project EBIT earnings before interest and tax LDPE low density polyethylene EBITDA earnings before interest, tax, depreciation and amortisation LLDPE linear low density polyethy