Slide 1: 2009 financial results
2009 financial results JSE: SOL delivering results in uncertain times NYSE: SSL 14 September 2009
Slide 2: Forward looking statements
forward looking statements In this document we 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 prospects, de
Slide 3: 14 September 2009
14 September 2009
Slide 4: Delivering results in uncertain times
delivering results in uncertain times excluding once-off charges, operating profit maintained headline earnings per share down 33% to R25,42 oil hedge cushions impact of sharp decline in oil prices overall group production volumes up Oryx and Arya Sasol plants performing successfully other growth pr
Slide 5: Strategy remains core to long term growth and profitability
strategy remains core to long term growth grow CTL strategic agenda and profitability grow CTL & grow CTL & & GTLGTL earnings GTL growth drivers grow growth drivers growth drivers growth drivers chemicals deliver on nurture and commercialise develop and return / (based on our SA grow our technologic
Slide 6: Focus on fundamentals; cash conservation actions yielded savings
focus on fundamentals improve operational / operations excellence business performance business improvement functional excellence share repurchase suspended capital reprioritised conserve cash cash flow improved credit management process strengthened working capital reduced momentum on growth pipeli
Slide 7: Understanding the Synfuels manufacturing process
understanding the Synfuels manufacturing process coal 95% gasification of products produced fuel components, natural gas products & FT refinery 5% chemical reforming feed streams of products produced utilities foundation growth sustainability 6 14 September 2009
Slide 8: Pursuing safe, reliable, efficient operations
pursuing safe, reliable, efficient operations break-down of Synfuels management actions include: operational instabilities strengthened management improved maintenance strategy gasification & other downstream increased complement of 36% 38% experienced people deepened expertise through additional tr
Slide 9: Building on the strong Synfuels foundation
building on the strong Synfuels foundation baseline production going forward: 7,3 million tons additional natural gas feedstock used to generate 8 new baseline electricity 7,3 mtpa NG introduced & 15th O2 train million ton/annum phase & full shutdown 7 no shutdown 6 5 2004 2005 2006 2007 2008 2009 B
Slide 10: Growth projects continue unabated
growth projects continue unabated four gasifiers tetramerisation Synfuels Mafutha CTL Gas pipeline Uzbekistan expansion Secunda growth GTL phase 2 Secunda growth Thubelisha mine phase 1 Mozambique Escravos GTL Pande gas field Mozambique exploration Nigeria deep syngas to water oil Gabon Ebouri oil c
Slide 11: Sustaining Sasol into the future
sustaining Sasol into the future recordable case rate* * recordable injuries and occupational illnesses per 200 000 hours worked ^ 2005 excludes service providers and 1,23 occupational illnesses; thereafter results include them 0,93 0,72 0,50 0,54 2005^ 2006 2007 2008 2009 foundation growth sustaina
Slide 12: Exciting work at New Energy unit
exciting work at New Energy unit short to medium term focus long term focus optimise energy efficiency low-carbon energy production in develop Carbon Capture and Storage Sasol operations technology, along with partners upscale and improve existing reduce carbon intensity of existing renewable energy
Slide 13: Financial review
financial review delivering results in uncertain times Christine Ramon 14 14 September September 2009 2009
Slide 14: Delivering results in uncertain times
delivering results in uncertain times delivered a substantial profit for the year excluding once off charges, operating profit maintained exceptional cash improvement strengthens balance sheet overall sustained performance from SA Energy cluster Oryx delivering profitably in International Energy clu
Slide 15: Commodity rollercoaster
commodity rollercoaster $/bbl fuel pricing $1=R currency 11 150 product price 10 120 brent $107,1 9 $90,6 R9,04 90 $95,5 8 $68,1 60 7 R7,30 30 6 2008 2009 2008 2009 $/ton chemical pricing $/ton export coal price 180 1675 polymers $1395 130 1250 $1238 $1048 $95 $95 $1039 825 solvents 80 400 30 2008 2
Slide 16: 2009 financial results reflect market conditions
2009 financial results reflect market conditions % ∆ vs. operating profit (Rbn) 2008 turnover (Rm) 137 836 +6 CAGR* 2005-09: 14% gross profit (Rm) 49 328 -11 other expenditure (Rm) (9 050) +6 33,8 24,7 operating profit (Rm) 24 666 -27 25,6 17,2 14,4 operating margin 18% earnings per share (R) 22,90
Slide 17: Excluding once-off charges, profit maintained
excluding once-off charges, profit maintained 33,8 1,1 ∆ vs. 32,3 once-off charges Rm 6,5 2008 competition Rand billion 3 947 3 947 related fines Inzalo share-based 24,7 3 202 1 768 payment expense remeasurement 1 469 771 items (EGTL) total 6 486 operating once-off new operating operating profit 200
Slide 18: Inflation and once-off charges pressured cash fixed costs
inflation and once-off charges pressured cash fixed costs ∆ vs. year on year comparison 2009 2008 cash fixed cost 33 723 38% less once-off items and growth initiatives (5 489) Total cash fixed costs excluding once off items and growth 28 234 16% initiatives exchange rates effects (1 202) Total cash
Slide 19: Improved operating profit from energy clusters
improved operating profit from energy clusters operating profit * SA Energy operating margin % 2009 2008 Rbn Chemical * 40 International Energy SA Energy 28% 27% other 30 International Energy 17% 10% Chemical * 2% 9% 20 10 * excluding competition related fines 0 -10 2006 2007 2008 2009 GTL and Polym
Slide 20: SA Energy cluster: sustained performance from existing businesses
SA Energy cluster: sustained performance from existing businesses %∆ operating profit Rm vs. 2008 mining export profitability boosted by weaker rand Mining 1 593 +14% stable gas sales volumes at Gas 2 424 +36% higher prices Synfuels 25 188 +30% Synfuels production volumes lower, increased cost offse
Slide 21: International Energy cluster: Oryx leading the way
International Energy cluster: Oryx leading the way %∆ Oryx production significantly up, operating profit Rm vs. 2008 offset by EGTL provision and study SSI (235) +164% costs SPI 1 115 +11% SPI production marginally up, profit total cluster 880 +130% benefited from crude hedge and weak rand 5 year pr
Slide 22: Chemical cluster performance reflective of poor economic climate
Chemical cluster performance reflective of poor economic climate %∆ operating profit Rm vs. 2008 offshore Polymers operations compensate for poor local demand Polymers 946 -37% and negative stock effects Solvents 495 -79% solvents prices depressed, lower volumes, negative stock effects O&S (160) -11
Slide 23: Exceptional cash flow performance; strong balance sheet
exceptional cash flow performance balance sheet deleveraged share repurchase suspended free cash flow dividend cash flow R7,2bn Rbn capital expenditure R16bn improvement in working capital levels cash generated by operating activities 50 investment income and tax paid investing activities 40 shares
Slide 24: Dividend cover maintained in line with policy
dividend cover maintained in line with policy historic dividend cover 2009 final cash dividend R6,00 dividend cover within targeted 4 range of 2,5 to 3,5 times 3 expect to maintain dividend policy in future 2 1 2000 2002 2004 2006 2008 consistent returns to shareholders 23 14 September 2009
Slide 25: Outlook: continue to plan prudently for extended economic recovery
outlook: continue to plan prudently for extended period of economic recovery reduction in earnings for FY10 expected: decline in global chemical markets expected to stabilise crude oil and product prices as seen in the latter part of FY09 significantly stronger rand current lower level of chemicals
Slide 26: Financial performance 2009 summary
financial performance 2009 summary Sasol profitable in uncertain markets proactive measures taken in light of global economic crisis exceptional cash flow performance deleveraged balance sheet positions company well for growth actions to enhance Synfuels operation Oryx and Arya Sasol plants performi
Slide 27: Well positioned to deliver long term shareholder value
well positioned to deliver long term shareholder value positive ROIC in tough times US$ attributable earnings growth $m % 30 2400 ROIC 3-year moving average WACC growth target IRR target 20 1600 10 800 0 0 2003 2004 2005 2006 2007 2008 2009 2003 2004 2005 2006 2007 2008 2009 balance sheet geared for
Slide 28: Sasol compares favourably with peers
Sasol compares favourably with peers 5 year total shareholder return 5 year total shareholder return (reporting currency) (USD) 30% 25% 25% 20% 20% 15% 15% 10% CAGR CAGR 10% 5% 5% 0% 0% -5% -5% -10% -10% sasol large caps mid caps chemicals sasol large caps mid caps chemicals Source: Bloomberg Source
Slide 29: Our investment case remains strong
our investment case remains strong leading alternative in a world of unique investment energy company disruptive change proposition + strong existing the ‘new normal’ 50+ years alternative business energy experience lower growth competitive technology driven by technology heightened occupies a uniqu
Slide 30: Delivering on the world stage
delivering on the world stage integrated value chain upstream asset portfolio GTL projects chemicals CTL opportunities • South Africa • Qatar • China • South Africa • Mozambique • Nigeria • India • Germany • Gabon • Uzbekistan • Mafutha • Italy • Nigeria • USA • Sao-Tome & Principe • Iran • Papua Ne
Slide 31: Value proposition intact
value proposition intact Southern Africa ensure existing assets continue to perform highest loads, safe, continuous operations, lowest costs focus on Synfuels international progressing strong pipeline of projects many attractive opportunities growth through partnerships a sustainable Sasol improving
Slide 32: Celebrating 30 years since JSE listing
celebrating 30 years since JSE listing JSE share price (Rand) 600 400 200 0 1980 1985 1990 1995 2000 2005 30 years of delivering shareholder value 31 14 September 2009
Slide 33: Investing in our future
investing in our future 14 September 2009