Slide 1: Financial results for the year ended 30 June 2011
financial results for the year ended 30 June 2011 pursuing responsible growth David Constable chief executive officer 12 September 2011 JSE: SOL | NYSE: SSL
Slide 2: Forward-looking statements
forward-looking statements The estimates of contingent resources contained in this announcement are based on definitions provided by the Society of Petroleum Engineers. Contingent resources do not constitute, and should not be confused with, reserves. Contingent resources are defined as those quanti
Slide 3: What you are going to hear today: key messages
what you are going to hear today key messages ● Strong operational and financial performance in FY2011 ● Well positioned to pursue abundant growth opportunities ● Committed to responsible growth that ensures long term sustainability ● A compelling investment proposition 3
Slide 4: Emerging markets growth to support demand
emerging markets growth to support demand GDP forecast Energy consumption growth 8 CAGR, 2010 – 2015 (%) Emerging & 6 developing economies 4 Advanced 2 economies 0 World Africa Asia Pacific North America S & C America Europe & Eurasia Middle East World 0 2 4 6 8 Growth (%) 2011 2012 2015 Liquids Nat
Slide 5: Making a positive contribution in South Africa
making a positive contribution in South Africa Investing in Delivering on Progressing climate growth transformation change imperatives ● R42bn capex over last ● Concluded Ixia Coal ● 12% reduction in GHG 3 years, additional R40bn empowerment deal emissions from 2004 to committed in RSA ● Pioneered f
Slide 6: Pursuing responsible growth
pursuing responsible growth ● Foundation businesses have performed well Improve ● Overall improvement in group production volumes, despite Synfuels major operating planned maintenance outage (Oryx up 31%; Arya up 20%; Mozambique up 17%) performance ● Chemicals maintain strong contribution to operati
Slide 7: Focused actions deliver results: highlights
focused actions deliver results highlights ● Headline earnings per share up 27% to R33,85 ● Earnings per share up 24% to R32,97 ● Group cash fixed costs contained within inflation ● Total dividend increased by 24% to R13,00 per share ● Cash generated by operations increased by 41% to R38,6bn ● Stron
Slide 8: Financial and operational review
financial and operational review Christine Ramon chief financial officer
Slide 9: Higher commodity prices counter effect of stronger rand
higher commodity prices counter effect of stronger rand Fuel price Currency US$/bbl US$1 = Rand Brent Product price Currency $108 $86 $74 $96 R7,59 R7,01 2010 2011 2010 2011 Chemical prices Commodity prices Average % ∆ vs Rand/unit 2011 2010 US$/ton Polymers Solvents Brent/bbl 673 ▲ 19 $1 420 $1 160
Slide 10: Margin expansion and cost containment enhance bottom line
margin expansion and cost containment enhance bottom line Operating profit (Rm) Macro Cost containment environment and production 40 000 58% 25% ∆ 1% 29 950 30 000 (7%) (8%) 23 937 Despite 20 000 Synfuels planned (19%) maintenance outage 10 000 0 2010 Exchange rate Crude oil Once-offs³ Inflation/cos
Slide 11: Decisive actions contain cost inflation
decisive actions contain cost inflation Cash fixed costs (Rm) 40 000 4% ∆ 7% 3% 31 678 4% 30 535 29 491 30 000 20 000 10 000 0 2010 Once-offs⁵ Year-on-year Inflation Cost reduction 2011 normalised 5. Includes effect of capitalised maintenance costs and competition related administrative penalties 11
Slide 12: Strong performance across clusters
strong performance across clusters % ∆ vs ● Strong performance from SA Energy despite Operating profit (Rbn) 2011 2010 Synfuels major planned maintenance outage ● Improved contribution from International SA Energy 19,9 +12 Energy on the back of Oryx improved production International Energy 1,6 +239
Slide 13: SA energy: strong profit and cash flow generator
SA energy: strong profit and cash flow generator % ∆ vs ● Mining benefits from higher coal prices Operating profit (Rm) 2011 2010 despite lower volumes. Once-off Ixia charge of R565m Mining 1 063 +30 ● Gas sales volumes up 22%. Pipeline capacity expanded Gas 2 578 +4 ● Synfuels operating profit up d
Slide 14: International energy: improved Oryx performance endorses GTL
international energy: improved oryx performance endorses GTL Operating profit (Rm) 2011 2010 ● Oryx production up 31% with average SSI 1 205 131 annual capacity utilisation of 82% ● Oryx 1 937 1 045 ● Production volumes from Mozambique up 17% ● Funding growth (732) (914) ● First shale gas production
Slide 15: Chemical cluster: strong performance enhanced by buoyant markets
chemical cluster: strong performance enhanced by buoyant markets % ∆ vs Operating profit (Rm) 2011 2010 ● Polymers overall production up 11% Polymers 1 579 +65 › Arya production up 20% and average capacity utilisation of 80% Solvents 1 655 +43 ● Solvents benefits from higher margins O&S 4 161 +67 ●
Slide 16: Strong cash flows fund growth and superior returns
strong cash flows fund growth and superior returns Uses of cash (Rbn) Estimated total capital investments (Rm) 40 000 3,8 32 000 6,7 31 000 30 000 24 488 20 000 6,6 20,7 10 000 0 2011a 2012e 2013e Taxation Dividends Capex Acquisitions Sustenance Growth Focused gas acquisition strategy to drive GTL g
Slide 17: Delivering superior shareholder returns
delivering superior shareholder returns Return on invested capital (%) Progressive dividend growth (ZAR) 30 18 20 Rand TSR6 52% 12 US$ TSR6 61% 10 0 2005 2006 2007 2008 2009 2010 2011 6 ROIC WACC IRR target ● Strong track record of delivery on ROIC targets ● Focus on capital allocation 0 ● Capital e
Slide 18: Cautiously optimistic outlook
cautiously optimistic outlook Improved operational performance Macro economic conditions FY2012 remain uncertain ● Improved production ● Commodity price fundamentals remain › Synfuels full year production target of intact 7,2 to 7,3 million tons ● Softening expected as global economy › Maintain Oryx
Slide 19: Strategic review
strategic review David Constable
Slide 20: Building on a solid foundation: group imperatives
building on a solid foundation Foundation Sustainable growth Definition of victory Operations Accelerate GTL, Excellence Develop and empower focused CTL growth our people Functional Excellence Grow related upstream business Group imperatives Capital Excellence Continuously improve Grow Grow technolo
Slide 21: Top priorities for FY12
top priorities for FY12 Improve ● Zero fatalities – zero harm safety ● Measurement and reporting of leading indicators performance ● Improve RCR ● Operations excellence Improve ● Sales and marketing excellence operational ● CO₂ mitigation and energy efficiency performance ● Planning and optimisation
Slide 22: Project pipeline – optimising our portfolio
project pipeline – optimising our portfolio Idea stage and pre-feasibility Feasibility Implementation ● Canada GTL Accelerate GTL, ● Several GTL opportunities ● US GTL ● Escravos GTL focused CTL ● India CTL ● Uzbekistan GTL Grow chemicals on ● Integrated US ● Tetramerisation basis of technology or ●
Slide 23: Shale gas growth in North America supports favourable gas/oil price dynamic
shale gas growth in North America supports the favourable natural gas/oil price dynamic 30 History 2009 Projections US dry gas (trillion cubic feet per year) 1% 25 Net imports 11% 20 45% 14% Shale gas 15 20% Non-associated onshore 8% 9% 10 Non-associated offshore 8% 28% Tight gas 22% 5 8% Coalbed me
Slide 24: We are seeing a rise in shale gas activity across the globe
we are seeing a rise in shale gas activity across the globe Potential timing of impact on regional gas market Already impacted <5 years 5-10 years >10 years Other areas that should not be ruled out Source: Wood MacKenzie 24
Slide 25: Canadian shale gas acquisitions add significantly to long-term value growth
Canadian shale gas acquisitions add significantly to long-term value growth Consolidated production volumes (equity share) All producing assets 300 250 200 kBOE/d 150 100 50 0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Gabon Moz gas Farrell Creek gas Cypress A gas 25
Slide 26: Driving energy efficiency and reducing GHG emissions
driving energy efficiency and reducing GHG emissions Sasol’s electricity balance (RSA) 100% ● Focus is on low- or no-carbon electricity ● New R1,8bn Sasolburg power project 80% (140MW) in execution – operational in 2013 60% › Increases self generated power capacity to 60% by 2013 40% › Reduces CO₂ e
Slide 27: A compelling investment proposition
a compelling investment proposition Solid foundation Compelling Superior businesses, growth shareholder strong cash flows strategy returns ● Operating and ● Growing demand for ● Solid balance sheet continuously energy security underpins growth improving existing ● Ability to monetise ● Targeting top
Slide 28: Financial results for the year ended 30 June 2011
financial results for the year ended 30 June 2011