Slide 1: Sasol Limited financial results for the six months ended 31 December 2013
Sasol Limited financial results for the six months ended 31 December 2013 better together ... we deliver
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 Chief Executive Officer better together ... we deliver
Slide 4: Key messages
What you will hear today Key messages • Creating long-term shareholder value • Delivering and growing sustainably • Strong headline earnings growth • Taking decisive management action • Excellent overall financial and operational performance • Advancing key capital projects • Compelling investment p
Slide 5: Creating long-term shareholder value
Creating long-term shareholder value Delivering results through decisive leadership Factors influencing the share price Rand 96 582 Medium term catalyst: 146 500 US cracker 400 340 Short term catalyst: 300 business performance improvements 200 100 Supported by progressive dividend policy 0 Share pri
Slide 6: Our broader contributions to South Africa in 1H14
Delivering and growing sustainably Our broader contributions to South Africa in 1H14 • Invested R10,8 billion (54%) of our CAPEX spend • Contributed R205 million to date through the Ikusasa initiative – R800 million total commitment • Invested R165 million in socioeconomic development • Spent R353 m
Slide 7: Key milestones in 1H14
Delivering and growing sustainably Key milestones in 1H14 • Robust safety performance - RCR 0,30 • Successful completion of largest shutdown in Synfuels’ history • ORYX GTL plant continues to achieve production records - 94% utilisation rate • Extension of Secunda mining rights to support our 2050 s
Slide 8: Delivering shareholder returns
Strong headline earnings growth Delivering shareholder returns • Solid contributions across the value chain • Synfuels’ normalised production volumes up by 3% • Normalised cash fixed costs below SA PPI of 6,4% • Operating profit up 33%, excluding once-off items • Headline earnings per share up by 26
Slide 9: Business Performance Enhancement Programme
Taking decisive management action Business Performance Enhancement Programme • Notable progress made on right-sizing and repositioning the organisation • Implementing new operating model on 1 July 2014 • Top management decision-making layers significantly reduced • Simplified governance framework •
Slide 10: Financial and operational performance
Financial and operational performance Paul Victor Acting Chief Financial Officer better together ... we deliver
Slide 11: Favourable macro environment
Favourable macro environment Supported by weakening rand Higher US gas prices Weakening currency Brent $/mmbtu (gas price) US$/bbl US$1 = Rand Product price Henry Hub R10,08 $128 $124 $110 $110 R8,48 $3,71 $3,14 1H13 1H14 1H13 1H14 Improved chemical prices Commodity prices Average % ∆ vs US$/ton $/m
Slide 12: Group profitability
Group profitability Underpinned by SA Energy 1H14 1H131 %∆ • Strong overall performance from SA Energy SA Energy 21,2 16,5 28▲ despite largest shutdown in Synfuels’ history International Energy (6,6) (1,2) 467▼ • Improved volumes and recovering product prices boosted chemical operations Chemicals 3,
Slide 13: Cash fixed costs
Cash fixed costs Increase within inflation Macro Costs and environment volumes 24 000 Rand million 21 000 (10,6%) 19 853 (0,4%) (0,4%) 19 993 17 948 18 000 15 000 12 000 9 000 6 000 3 000 0 1H13¹ Uncontrollable Period-on-period Growth and Business 1H14 factors² normalised study costs enhancement³ 1.
Slide 14: Improved operating profit
Improved operating profit Notwithstanding once-off items and year-end adjustments Macro Costs and environment volumes 30 000 Rand million 7% (32%) FY13 sales 37% volumes up 7% 25 000 (8%) (5%) 7% 19 381 20 000 18 280 15 000 10 000 5 000 0 1H13¹ Exchange Crude oil Once-off Depre- Costs Sales 1H14 rat
Slide 15: SA Energy
SA Energy Solid performance underpins group profit Operating profit (Rm) 1H14 1H131 %∆ • Mining impacted by recovery of export market Mining 1 351 1 302 4▲ and higher operating costs • Gas includes profit on sale of SLG, with Gas 2 626 1 967 34▲ improved volumes and sales prices Synfuels 16 223 12 4
Slide 16: International Energy
International Energy ORYX GTL excels in performance Operating profit (Rm) 1H14 1H131 %∆ • SSI impacted by lower US GTL study costs SSI (435) (452) 4▲ and higher once-off charges SPI (6 137) (707) 768▼ • SPI Production • Volumes up 6% Mozambique and Gabon 1 187 985 21▲ • Canada – R5,3 billion partial
Slide 17: Canadian shale gas assets impairment overview
Canadian shale gas assets Impairment overview • Impairment triggers • Talisman’s sale of its 50% share of the Montney asset to Progress (CAD1 320 million for its share of Farrell Creek and Cypress A) • Other factors considered • Further decline of conditions in the North American gas market • Canadi
Slide 18: Chemicals
Chemicals Improved volumes and margins Operating profit (Rm) 1H14 1H131 %∆ • Polymers improved margins and sales Polymers (351) (1 124) 69▲ volumes – stability benefits from EPU 5 • Solvents higher solvents sales volumes and Solvents 358 29 1134▲ improved margins O&S 2 749 1 568 75▲ • O&S US operati
Slide 19: Investing for sustainable growth
Investing for sustainable growth 54% of capital spend in South Africa Capital expenditure for 1H14 by region Estimated capital investments (R20 billion) 60 Rand billion 50,0 50 34% 42,0 40 30,4 54% 30 20 5% 7% 10 South Africa Rest of Africa 0 Europe North America 2013 act 2014 est 2015 est Sustenanc
Slide 20: We remain committed to delivering value to shareholders
We remain committed to delivering value to shareholders Record interim dividend Progressive dividend for growth Growth in headline earnings per share 20 60 Rand Rand Rand one year TSR¹ 48% Rand five year TSR² 122% 50 15 40 10 30 20 5 10 0 0 2010 2011 2012 2013 1H14 2010 2011 2012 2013 1H13 1H14 Inte
Slide 21: FY14 profit outlook
FY14 profit outlook Strong operational performance underpinned by volatile macroeconomic conditions Macro Financial and operational • Rand remains biggest external factor impacting • Production profitability • Synfuels FY14 target of 7,3 mt to 7,5 mt • Weaker rand will improve profitability (total s
Slide 22: Business Performance Enhancement Programme
Business Performance Enhancement Programme Cost savings realisation timeline Rand billion Cost trend from FY16 to follow inflation Potential upside to be confirmed Sustainable savings on FY12 base Peak Initial Final ramp-up implementation stage 2014 2015 2016 2017 2018 Project implementation cost (F
Slide 23: Strong investment case
Strong investment case David E. Constable Chief Executive Officer better together ... we deliver
Slide 24: Advancing key capital projects
Advancing key capital projects Upcoming project milestones in the 2014 calendar year • Progressing our world-scale ethane cracker and US GTL projects in Louisiana • Project financing on track for Uzbekistan GTL project • Commissioning activities underway at Escravos GTL in Nigeria • C3 stabilisation
Slide 25: Compelling investment proposition
Compelling investment proposition Creating sustainable value Existing asset base Growth opportunities Value creation • Excellent operational • Capitalising on gas • Solid balance sheet performance monetisation options underpinning growth • Mining licences granted in Southern Africa and • Progressive
Slide 26: Questions and answers
Questions and answers better together ... we deliver
Slide 27: Sasol Limited financial results for the six months ended 31 December 2013
Sasol Limited financial results for the six months ended 31 December 2013 better together ... we deliver