Slide 1: Sasol Limited financial results for the six months ended 31 December 2014
Sasol Limited financial results for the six months ended 31 December 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: Key messages: What you will hear today
What you will hear today Key messages • Solid platform underpinned by an optimised operating model • Strong group-wide performance • Business Performance Enhancement Programme delivering results • Maintaining momentum through challenging times • Response Plan launched • Lake Charles Chemicals Projec
Slide 5: Solid platform underpinned by an optimised operating model
Solid platform underpinned by an optimised operating model Operating model gaining traction and delivering results • Operating model structured along an integrated value chain • Enables: • Greater focus and increased simplicity • An integrated and unified business approach • A decisive response to t
Slide 6: Strong group-wide performance
Strong group-wide performance Solid contributions across the value chain • Resilient group-wide operational performance • Group safety RCR, excluding illnesses, improved to 0,32 • Performance Chemicals sales volumes up by 5% • Base Chemicals normalised sales volumes up by 1% • Energy Business liquid
Slide 7: Business Performance Enhancement Programme
Business Performance Enhancement Programme Delivering results • Organisational redesign fully implemented • Approximately 1 500 voluntary separations • Group-wide vacancy freeze and hiring moratorium deliver results • Increased target of at least R4,3 billion sustainable annual cost savings by end F
Slide 8: Maintaining momentum through challenging times
Maintaining momentum through challenging times Current market sentiment supports lower-for-longer oil scenario Brent crude consensus forecasts (real) • External experts expect the low oil price to persist until mid-2016 120 • Annual average oil price ($/bbl) Current prices have resulted in 100 cut-b
Slide 9: Response Plan launched
Response Plan launched Implementing a comprehensive and flexible plan to conserve cash • Aiming to conserve R30 billion to R50 billion in cash up to end FY17 • Safe, reliable and efficient operations remain non-negotiable • Response Plan will remain flexible to respond to a volatile macro-economic e
Slide 10: Response Plan: Cash conservation levers
Response Plan launched Cash conservation levers Comprehensive 30-month Targeted range (Rbn) Response Plan actioned to deliver: Cash cost • R4bn – R7bn: further cash cost savings savings • R5bn – R9bn: gross margin and Gross margin & working capital improvements working capital • R8bn – R12bn: capita
Slide 11: Financial and operational performance
Financial and operational performance Paul Victor Group Financial Controller
Slide 12: Challenging macro environment contained through resilient chemical prices
Challenging macro environment contained through resilient chemical prices Significant drop in oil price Weakening currency Brent Product price Henry Hub US$/bbl US$1 = Rand $/mmbtu (gas price) $124 $105 R10,99 $110 R10,08 $89 $3,71 $3,87 1H14 1H15 1H14 1H15 Chemical prices vs Brent Commodity prices
Slide 13: Group profitability
Group profitability Strong group-wide performance supported by effective cost management HY15 HY14¹ % ∆ • Performance and Base Chemicals sales Mining 2 241 1 351 66▲ volumes up 5% and 1% 72▲ • 3% increase in liquid fuels sales volumes Exploration and Production (1 748) (6 137) International (EPI) •
Slide 14: Profit from operations positively impacted by once-off items and half year-end adjustments
Profit from operations positively impacted by once-off items and half year-end adjustments Macro Costs and environment volumes 35 000 Rand million 54% 13% 6% 30,034 30 000 25 000 12% 20% HY15 sales 21,534 volumes up 6% 20 000 15 000 10 000 5 000 0 1H14 Exchange Crude oil and Once-off items Cost and
Slide 15: Cash fixed costs
Cash fixed costs Normalised costs 0,7% below South African PPI Costs and Restructuring Macro volumes and growth environment cost 25 000 Rand million (6,8%) (1,5%) 22 435 (6,9%) 19 993 2,3% 0,7% 19 396 20 000 15 000 10 000 5 000 0 HY14 Sustainable Cost increase Normalised Cash cost² Inflation³ Exchan
Slide 16: Mining and EPI Operating Business Units
Mining and EPI Operating Business Units Mining delivers increased production with controlled unit cost increase Profit / (loss) from operations (Rm) HY15 HY14¹ %∆ Mining Mining 2 241 1 351 66▲ • Production volumes increased by 5% EPI (1 748) (6 137) 72▲ • Normalised unit costs below inflation Produc
Slide 17: Energy Strategic Business Unit
Energy Strategic Business Unit Energy operations strong but margins impacted Profit from operations (Rm) HY15 HY14¹ %∆ Energy Energy 14 818 16 374 10▼ • Secunda Synfuels and Natref increased Southern Africa2 13 520 14 471 7▼ production by 2% and 6% respectively ORYX GTL 1 298 1 903 32▼ • 3% increase
Slide 18: Chemicals Strategic Business Units
Chemicals Strategic Business Units Improved sales volumes and resilient margins Profit from operations (Rm) HY15 HY14¹ %∆ Base Chemicals Base Chemicals 5 818 4 107 42▲ • Sales volumes normalised increased by 1% Performance Chemicals 7 365 4 614 60▲ • Chemical basket dollar prices declined by 5% agai
Slide 19: Business Performance Enhancement Programme: savings target increased
Business Performance Enhancement Programme Savings target increased to at least R4,3 billion at end FY16 Cost trend from end FY16 to follow inflation Rand million Sustainable cost reduction Achieve an exit run-rate of at least R4,3bn at end FY16 R991m R1 473m actual YTD YTD costs 2 200 2 100 savings
Slide 20: Dividend cover
Dividend cover Change in dividend policy to cover range • Interim dividend of R7,00 per share, 60 3.0 down 13% Rand per share Dividend cover Dividend corridor • Dividend corridor range between 50 2.5 2,2 and 2,8 • Objective to maintain 40:60 40 2.0 interim:final dividend split • Policy allows flexib
Slide 21: Capital portfolio reprioritised
Capital portfolio reprioritised Capital spend forecast Due to rand • Response Plan contributions of 80 weakening R13bn – R22bn Rand billion • Portfolio reassessed and optimised 60 • Safe, reliable operations to be maintained • Decision to delay U.S. GTL FID 40 • Critical, strategic projects continue
Slide 22: FY15 outlook
FY15 outlook Strong production performance and cost reductions to continue • South African liquid fuels sales volumes expected to be around 59 million barrels • Average utilisation of ORYX GTL is expected to continue above 90% • Chemical businesses driving improved volumes and margin enhancement • B
Slide 23: Dual regional strategy
Dual regional strategy David E Constable President and Chief Executive Officer
Slide 24: Lake Charles Chemicals Project making good progress
Lake Charles Chemicals Project making good progress Maintaining focus • Final investment decision for US$8,9 billion project announced on 27 October 2014 • US$4 billion credit facility from a syndicate of banks completed in December 2014 • 80% of required project funding secured • Project economics
Slide 25: Continuing to stimulate Southern Africa's regional growth
Continuing to stimulate Southern Africa’s regional growth Our broader contributions • Electricity self-generation capacity of over 1 100MW, taking pressure off the national grid • Beneficiating approximately 40 million tons of coal annually • Invested more than US$2,1 billion over the last 15 years
Slide 26: Prioritising business activities given the current global realities
Prioritising business activities given the current global realities Maintaining momentum through challenging times Enhancing Driving selective growth Value creation existing asset base opportunities • Operations delivering • Lake Charles Chemicals • Prioritised plans, supported improved volumes Proj
Slide 27: Questions and answers
“n i ® S a c © x] ¢ © “n c fe) 6 n ® =} oO Maintaining momentum
Slide 28: JSE: SOL NYSE: SSL
— 7) i) wi ie) > a — fe) 7?) wi 2) 5 Maintaining momentum