Slide 1: Investor site visits – overview presentation
investor site visits – overview presentation 1 and 2 November 2012 Rosebank, South Africa better together… we deliver 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 – David E. Constable, CEO
introduction David E. Constable chief executive officer better together… we deliver JSE: SOL | NYSE: SSL
Slide 4: What you will hear today
what you will hear today key messages ● Continue to nurture and grow our home base ● Enhance our operational performance ● Improve efficiencies and yields in our South African chemicals business ● Step up focus on cost optimisation ● Remain a compelling investment proposition better together… we del
Slide 5: Our strategic agenda to focus the organisation
our strategic agenda to focus the organisation Foundation Sustainable growth Definition of victory Accelerate GTL growth, consider selective CTL Develop and empower Operations high-performing, values- growth Excellence driven people Grow related upstream Group imperatives business Capital Excellence
Slide 6: Enhancing our South African businesses
enhancing our South African businesses a solid foundation ● Continue to deliver strong cash flows ● Enhance reliability, stability and maintainability ● Secure feedstocks to ensure energy security ● Step up cost optimisation ● Attract, retain and develop talented and skilled people ● Adopt a One Sas
Slide 7: Developing our South African opportunities
developing our South African opportunities Feasibility FEED/EPC Accelerate GTL, ● Canada GTL ● Uzbekistan GTL consider selective CTL ● US GTL ● Escravos GTL growth Grow chemicals based ● Integrated US chemicals ● Tetramerisation on technology, market ● Ethane Cracker ● FT wax expansion or feedstock
Slide 8: Maintaining our compelling investment proposition
maintaining our compelling investment proposition Solid Attractive Leading foundation business growth strategy shareholder returns ● ORYX GTL flagship ● Growing demand for ● Solid balance sheet energy security and underpins growth Sustainable value creation ● Highly cash generative energy independen
Slide 9: Introduction to the South African energy value chain
Introduction to the South African energy value chain Bernard Klingenberg group executive, South African Energy better together… we deliver JSE: SOL | NYSE: SSL
Slide 10: Our integrated business model
our integrated business model Sasol’s integrated value chain, largely in our South African operations, aligns our diverse and interdependent businesses Crude oil – open market purchases Fuel Refining and components blending Exploration and production of feedstock GTL/CTL Syngas Co- Recovery and Mark
Slide 11: Our petroleum products integrated marketing value chain
our petroleum products integrated marketing value chain Source Manufacture and blend Move to store and deliver Market and sell Sourcing Refining Tankage Wholesale marketing Synfuels components Primary and secondary Wholesale marketing distribution Feedstock (crude/components) Road Rail Pipe Direct m
Slide 12: The gas value chain
the gas value chain better together… we deliver 12
Slide 13: Growing piped gas market presents opportunities
growing piped gas market presents opportunities GJ'm 160 ● We supply gas to over 550 customers through our transmission and distribution network 120 • Internal Sasol customers • External customers include reseller, traders and industrial customers 80 ● The piped gas industry has tripled over the las
Slide 14: Where we stand today: Synfuels
where we stand today: Synfuels ● Large integrated synthetic fuels petrochemical complex • produce synthetic fuels and chemicals from coal and gas Solid ● Highly cash generative asset foundation ● Safer, reliable and predictable operations with improving efficiencies and yield: business • implementat
Slide 15: Synfuels 10 year production profile
Synfuels 10 year production profile ● 2005/2006: project Turbo commissioned 7 535 7 379 7 168 Mtpa 6% 2% 2% 8% 8% ● 2006: Superflex Catalytic Cracker (SCC) 6% first operated and then taken offline 17% 14% 23% • 2007: cold section restarted 8% 8% • 2008: hot section restarted 5% 8% 7% 9% ● 2011: Synf
Slide 16: World class operations
world class operations improved asset performance ● Sustained profitability • Stable and reliable operations across the value chain through the implementation of an operations excellence approach suitable for site manufacturing activities • Improved energy efficiencies, through new programmes aimed
Slide 17: Secunda operations - Sasol Synfuels
Secunda operations - Sasol Synfuels Stephan Schoeman managing director at Sasol Synfuels better together… we deliver JSE: SOL | NYSE: SSL
Slide 18: Sasol group strategic agenda
Sasol group strategic agenda Foundation Sustainable growth Definition of victory Operations Accelerate GTL, Develop and empower Excellence focused CTL growth high-performing, values-driven people Grow related upstream Group imperatives Capital business Excellence Continuously improve Grow and grow e
Slide 19: Asset performance
asset performance improvement initiatives yielding results ● Safer, reliable and predictable operations from operations excellence initiatives ● Improvement in asset performance through improved maintenance philosophies: • Maintaining equipment to standard, based on failure modes and prevention • En
Slide 20: Incidents addressed
incidents addressed plant performing well ● Corrective measures implemented as a result of learnings derived from the investigations: • Increased focus on preventive maintenance • More process engineering support to operations, where deemed appropriate • Greater emphasis on process safety management
Slide 21: Sustaining our operations
sustaining our operations plant performing well ● The Selective Catalytic Cracker (SCC) - improvement in reliability and availability from ±40% on start up to 89% in FY12 • Catalyst change to a more robust type of catalyst • Refractory defects were engineered out through design changes and improved
Slide 22: Growing our operations
growing our operations Sasol natural gas growth programme, Secunda ● First phase, grow the Sasol Synfuels baseline by ±3% based on natural gas from Mozambique ● Approved project cost R13,2bn for capital and feasibility funds • Expected volume growth by end CY14 ● Contribution to revenue: fuel and ch
Slide 23: Electricity generation in Secunda
electricity generation in Secunda energy efficiencies being achieved ● Current electricity generated by • Steam turbine generators with installed capacity of 600 MW • Open cycle gas turbines with installed capacity of 200 MW ● Heat integration in the process also generates steam ● Various energy eff
Slide 24: Secunda site visit programme
Secunda site visit programme what you will see ● Start at the end where coal comes in and drive through to the front – refinery and chemical plants ● Specific focus will be given to: • Gas Turbines • Additional Gasifier • 17th Reformer • 16th Oxygen Train Thubelisha mine shaft, Secunda Argon column
Slide 25: Introduction to the South African chemicals value chain
Introduction to the South African chemicals value chain André de Ruyter senior group executive, global chemicals and North American operations better together… we deliver JSE: SOL | NYSE: SSL
Slide 26: Sasol group strategic agenda
Sasol group strategic agenda Foundation Sustainable growth Definition of victory Operations Accelerate GTL, Develop and empower Excellence focused CTL growth high-performing, values-driven people Grow related upstream Group imperatives Capital business Excellence Continuously improve Grow and grow e
Slide 27: Our integrated business model
our integrated business model Sasol’s integrated value chain, largely in our South African operations, aligns our diverse and interdependent businesses Crude oil – open market purchases Fuel Refining and components blending Exploration and production of feedstock GTL/CTL Syngas Co- Recovery and Mark
Slide 28: Challenging market conditions for chemicals
challenging market conditions for chemicals soft conditions expected to continue ● Lower demand in downstream markets due to weaker consumer confidence and a slowdown in major economies ● Lower product prices and higher feedstock costs on the back of higher crude oil price resulted in margin squeeze
Slide 29: Sasol's response
Sasol’s response working for sustainable profitability ● Proven track record of business turnaround ● Cost reductions at all chemical businesses: BU incentive scheme target for own cash fixed costs at PPI - 2% ● Buy better, make better and sell better for sustainable profitability • Improving plant
Slide 30: Future focus
future focus Operations Growth pillars to ensure optimisation sustainable competitive advantage 1 2 3 4 Compelling Ensure all Technology Market feedstock assets perform advantage position advantage Portfolio Integrated World-beating Strong portfolio Earnings optimisation, FT complex, competitiveness
Slide 31: South African chemicals operations
South African chemicals operations Adriaan Janse van Rensburg general manager at Sasol Polymers better together… we deliver JSE: SOL | NYSE: SSL
Slide 32: Operations improvement interventions yielding results
operations improvement interventions yielding results Process safety Technical Asset People management competency management Excellent operations Systems and Shutdowns Operations Technical processes ● The recordable case rate for the chemical businesses at 0,29 is below the corporate target of 0,34
Slide 33: Our asset management model
our asset management model Design Licensor PSI OEM standards standards standards standards Existing Equipment Products to Customers Asset Management New Standards Equipment Operate assets Raw materials, Parts, Services Competence Tools Licensor Best & capability RCM Management Practices Competence T
Slide 34: SA Polymers business under severe pressure
SA Polymers business under severe pressure Sasol’s South African polymer business is disadvantaged from its global peers Sasol Polymers’ ethylene cash cost of production compared to leader regional producers better together… we deliver 34
Slide 35: Managing levers within our control showing results
managing levers within our control showing results ● Achieved positive variable gross margin and a number of production records ● Performance improvement interventions embarked on during the year resulted in improved safety and plant throughput ● Polymers progressing well with a turnaround intervent
Slide 36: Growing our chemicals operations
growing our chemicals operations Project Rationale BO date (CY) Impact FT Wax Expansion Project Expansion Phase 1, 2013 110 kt/a additional wax (FTWEP) Phase 2, 2015 Sasolburg Utilities Expansion Support Sasolburg 2012 - 2013 for Support Sasolburg expansion Programme (SUEP) growth various sub-projec
Slide 37: Sasolburg site visit programme
Sasolburg site visit programme what you will see ● Start at the Sasol 1 site, where it all began ● Specific focus will be given to construction sites: • FTWEP • EPU5 • SUEP ● Drive through the Midlands site to visit polymer and solvents plants ● Lastly, a visit to the new Sasolburg Gas Engine Power
Slide 38: Investor site visits – Sasolburg visit
investor site visits – Sasolburg visit 1 November 2012 Sasolburg, South Africa better together… we deliver JSE: SOL | NYSE: SSL
Slide 39: 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 40: Welcome and overview of Sasolburg sites
welcome and overview of Sasolburg sites Louis Fourie managing director at Sasol Infrachem better together… we deliver JSE: SOL | NYSE: SSL
Slide 41: The beginning of the Sasol story
the beginning of the Sasol story ● 1927, a White Paper was tabled in the South African Parliament • Overseas oil from coal processes and their potential for South Africa ● 1950, government appoints a committee to investigate the establishment of a South African oil-from-coal industry • Plant based o
Slide 42: 1954: the Sasol One site operational
1954: the Sasol One site operational better together… we deliver 42
Slide 43: Our Sasol One site integrated value chain
our Sasol One site integrated value chain Monomers: Mining Sasol Wax: ● Ethane and ethylene MIBK Methanol ● Hard and medium wax Chemicals Solvents: ● FT paraffins ● Acetone, sabutol and Sasol Solvents: other solvents Ammonia Nitric acid Prillan ● Methanol and frothers Other: ● MIBK ● Depitched tar a
Slide 44: Our Sasol Midlands site integrated value chain
our Sasol Midlands site integrated value chain Sasol Polymers: Ethylene Chlorine Peroxide Cyanide ● LLDPE ● LDPE ● PVC ● Hydrochloric acid Acrylic ● Organic peroxides Salt ammonia HCl Butanol acids ● Sodium cyanide ● Chlorine Syngas ● Caustic soda Propylene Polythene VCM PVC Sasol Solvents: Ethanol
Slide 45: Utility supply for growing site operations
utility supply for growing site operations Sasol One Site Expansion Programme at a cost of approximately R12bn as at 30 June 2012 ● Growth projects, FTWEP and EPU5 that will grow wax and polymer volumes ● Utility support for growth projects, Sasolburg Utilities Expansion Project • Commissioning date
Slide 46: Sasolburg electricity generation
Sasolburg electricity generation ● 140 MW Sasolburg gas engine power plant, convert natural gas from Mozambique to electricity ● Approved capital cost of R1,9bn as at 30 June 2012 ● Construction started end of CY2011, construction is progressing well ● The plant consists of 18 Wartsila engines, of w
Slide 47: We make positive contributions in our communities
we make positive contributions in our communities ● Sasol has invested in Sasolburg communities for many years ● We continue to do so through different initiatives in our capacity as social partner and key stakeholder ● Our goals are: • Improving economic activity, social stability and quality of li
Slide 48: Sasol Wax – FTWEP project
Sasol Wax – FTWEP project Thomas Luedemann managing director at Sasol Wax better together… we deliver JSE: SOL | NYSE: SSL
Slide 49: Fischer-Tropsch wax expansion project
Fischer-Tropsch wax expansion project ● Double hard wax production in Sasolburg ● 30 June 2012, capital of R8,4bn approved and R6,01bn contracted ● Project rationale: • Growing global FT hard wax demand, there are no substitutes • FT hard wax offers unique properties, that customers value • Sasol Wa
Slide 50: Fischer-Tropsch wax expansion project phases
Fischer-Tropsch wax expansion project ● Replace outdated fixed bed capacity while capitalising on the improved efficiency of the slurry bed capacity Phase 1 • new catalyst plant 50 000 tons/a • new FT slurry bed reactor • expand wax product work-up and solidification • shut down two fixed bed reacto
Slide 51: Emerging market growth and FT hard wax drive demand
emerging market growth and FT hard wax unique properties drive demand Adhesives consumption Forecasted growth Adhesives use per capita (kg) Source: Dow Chemicals Adhesive industry has shifted to an elastomer produced by a new technology. Due to its unique Poised growth for Asia and other emerging pr
Slide 52: Industry structural changes and product innovation drive demand
industry structural changes and product innovation results in demand growth PVC regulations Asphalt Industry PVC pipes and lead Using Sasobit® in the laying of asphalt A new generation of lead-free stabilisers based The use of FT hard wax in laying asphalt leads on FT hard wax will replace tradition
Slide 53: Our competitive advantage in FT hard wax
our competitive advantage in FT hard wax ● Only two suppliers of hard wax ● Sasol Wax produces 20 grades of hard wax, the value addition attracts a premium ● Sasol Wax is well positioned to enter and capture new and high value markets with a global sales staff of 110 ● Sasol Wax prides itself on wor
Slide 54: Project schedule delayed
project schedule delayed Brownfield site construction challenges and contractor low labour productivity Measures to address schedule delays: Measures to bridge supply delays: ● Overstaff where possible and use of ● Improved catalyst production and early outside country nationals to increase start-up
Slide 55: Sasol Polymers – EPU5
Sasol Polymers – EPU5 Bava Pillay manager at Sasol Polymers better together… we deliver JSE: SOL | NYSE: SSL
Slide 56: Ethylene purification (EPU5) project
ethylene purification (EPU5) project ● Will deliver 48 000 tons per annum of additional ethylene once the C2+ recovery at Sasol Synfuels is fully operational (2HY13) ● Capital of R1 912 million was approved, March 2010 • Currently well within budget but will be tested by additional revamp scope ● Pr
Slide 57: EPU5 current progress
EPU5 current progress ● The project schedule has been negatively impacted by plant material quality problems ● All problems were identified and are being addressed ● Construction is delayed by an estimated 9 months ● The revamp scope is expected to be complete by June 2013, and new beneficial operat
Slide 58: Investor site visits – Secunda visit
investor site visits – Secunda visit 2 November 2012 Secunda, South Africa better together… we deliver JSE: SOL | NYSE: SSL
Slide 59: 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 60: Welcome and overview of Secunda sites
welcome and overview of Sasolburg sites Rajaram Dayanand general manager at Sasol Synfuels better together… we deliver JSE: SOL | NYSE: SSL
Slide 61: Secunda overview
Secunda overview better together… we deliver 61
Slide 62: Sasol's natural gas growth programme
Sasol’s natural gas growth programme Rajaram Dayanand general manager at Sasol Synfuels better together… we deliver JSE: SOL | NYSE: SSL
Slide 63: Sasol natural gas growth programme, phase 1a
Sasol natural gas growth programme, phase 1a ● Will realise a 3% increase in Sasol Synfuels’ FT production volumes by end CY14 • An additional 270 MW electricity generation capacity operational ● Includes the construction and revamping of gas processing, refinery, chemical processing capacity and th
Slide 64: New installed equipment assisted in improving plant efficiencies, 2H12
new installed equipment assisted in improving plant efficiencies, 2H12 ● 16th Oxygen Train: installed in 2011, running well and has enabled an increase in oxygen production capacity ● 10th SAS reactor: meant to produce the necessary synthesis capacity to process additional natural gas was commission
Slide 65: Growth projects going forward
growth projects going forward ● The next major project is the commissioning of the GHHERs • SGP 1A volume growth is mainly driven by the GHHER project ● 50% of GHHER installed capacity forecast by Dec 2012 and a further 50% end FY13 ● Other components remain under schedule pressure ● BO date for fin
Slide 66: Sasol Polymers – C3 stabilisation
Sasol Polymers – C3 stabilisation Bava Pillay manager at Sasol Polymers better together… we deliver JSE: SOL | NYSE: SSL
Slide 67: C3 stabilisation project
C3 stabilisation project ● Increase propylene extraction by 58 000 tons (85% extraction) ● Capital of R1 253 million approved in March 2012 ● Project benefits: • Significantly reduces flaring losses • Assists in stabilising the propylene value chain, including lengthening runs of the second Polyprop
Slide 68: C3 stabilisation: current progress
C3 stabilisation: current progress ● Vessel procurement awarded to HydraArc, November 2011 • Being fabricated at HydraArc’s Sky Hill facility in Secunda, currently ahead of schedule ● EPCm contract awarded to Foster Wheeler South Africa, May 2012 ● Current focus is on civils and major sub-contract a