Slide 1: Maintaining Momentum: Sasol Limited Financial Results FY2015
MAINTAINING MOMENTUM SASOL LIMITED FINANCIAL RESULTS for the year ended 30 June 2015 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 Maintaining momentum
Slide 4: What you will hear today
What you will hear today Key messages ● Business resilience despite oil price and market volatility ● Business Performance Enhancement Programme delivering results ● Response Plan driving cash conservation focus ● Strong operational and financial performance, notwithstanding challenges ● Refined nea
Slide 5: Business resilience despite oil price and market volatility
Business resilience despite oil price and market volatility Decisive actions enabled a swift response Brent oil price (US$/bbl) Internal Change Response Plan 140 Programme 700 launched R/share US$ formulated 120 600 100 500 80 400 60 300 Business Performance New Enhancement 40 operating model 200 Pr
Slide 6: Business Performance Enhancement Programme delivering results
Business Performance Enhancement Programme delivering results Sustainable improvements continue ● New operating model successfully introduced on 1 July 2014 ● Company-wide organisational redesign nearing completion ● Approximately 2 500 voluntary separations and early retirements approved ● New ente
Slide 7: Response Plan driving cash conservation focus
Response Plan driving cash conservation focus Cash conservation protects balance sheet and enables growth ● Response Plan levers build on the rigorous work conducted as part of our Business Performance Enhancement Programme ● Cash conservation benefit of R8,9 billion for the first 6 months of the 20
Slide 8: Strong operational and financial performance, notwithstanding challenges
Strong operational and financial performance, notwithstanding challenges Improved volumes, resilient margins and costs contained ● Group safety performance, excluding illnesses, improved to an RCR of 0,32 ● Solid group-wide operational performance ● Energy Business liquid fuels sales volumes in Sout
Slide 9: Financial and Operational Performance
FINANCIAL AND OPERATIONAL PERFORMANCE Bongani Nqwababa Chief Financial Officer Maintaining momentum
Slide 10: Challenging macroeconomic environment
Challenging macroeconomic environment Significant drop in oil price Weakening currency US$1 = ZAR $/mmbtu (gas price) US$/bbl $124 R11,45 R10,39 $109 $92 $73 $4,30 $3,35 FY14 FY15 FY14 FY15 Brent Product price Henry Hub Chemical prices resilient vs Brent Product prices % ∆ vs % change y-o-y Average
Slide 11: Group profitability
Group profitability Strong group-wide performance supported by effective cost management FY15 FY14¹ %∆ Profit from operations contribution (%) Mining 4 343 2 453 77▲ 49% Exploration and Production (3 170) (5 980) 47▲ International (EPI) 22% 27% Energy 22 526 31 423 28▼ Base Chemicals (BC) 10 208 6 7
Slide 12: Profit from operations
Profit from operations Significant once-off items and year-end adjustments Macro environment Costs and volumes 60 000 Rand million 15% 46% 50 000 5% 46 549 45 818 32% 4% 40 000 FY15 30 000 normalised sales volumes up 4% 20 000 10 000 0 FY14 Exchange Crude oil and Once-off items Cost Sales FY15 rate
Slide 13: Cash fixed costs flat in nominal terms
Cash fixed costs flat in nominal terms Business Performance Enhancement Programme and Response Plan reduce costs Costs and volumes Restructuring, Macro environment study and growth cost 50 000 Rand million 44 265 4,0% (5,0%) (0,7%) 44 388 3,0% (1,6%) 41 159 40 000 30 000 20 000 10 000 0 FY14 Sustain
Slide 14: Mining and EPI Operating Business Units
Mining and EPI Operating Business Units Decrease in Mining unit cost Profit / (loss) from operations ● Mining (Rm) FY15 FY14¹ %∆ ● Normalised unit costs 2% below inflation Mining 4 343 2 453 77▲ ● Increase in labour productivity enabled by EPI (3 170) (5 980) 47▲ improved underground infrastructure
Slide 15: Energy Strategic Business Unit
Energy Strategic Business Unit Improved volumes and cost performance, margins under pressure ● Energy Profit from operations (Rm) FY15 FY14¹ %∆ ● Secunda Synfuels and Natref increased Energy 22 526 31 423 28▼ production by 2% and 6% respectively Southern Africa² 20 668 27 395 25▼ ● 5% increase in li
Slide 16: Chemicals Strategic Business Units
Chemicals Strategic Business Units Higher sales volumes and resilient margins ● Base Chemicals Profit from operations (Rm) FY15 FY14¹ %∆ ● Normalised sales volumes increased by 2% Base Chemicals 10 208 6 742 51▲ ● Chemical basket prices down 13% despite Performance Chemicals 12 714 11 848 7▲ 33% dro
Slide 17: Business Performance Enhancement Programme
Business Performance Enhancement Programme Delivering ahead of expectations Cost trend from end FY16 to follow inflation Rand million Sustainable cost reduction Targeting an exit run-rate of at least R4,3bn at end FY16 2 800 R2 500m R200m actual less than 1 900 savings planned achieved 1 279 700 FY1
Slide 18: Low oil price Response Plan proactively launched in FY15
Low oil price Response Plan proactively launched in FY15 Cash conservation levers delivered a benefit of R8,9bn Targeted 30 month range (Rbn) Comprehensive 30-month Cash cost savings Response Plan actioned to deliver: ● R4bn – R7bn: further cash cost savings Margin and ● R5bn – R9bn: margin and work
Slide 19: Balance sheet allows funding of growth
Balance sheet allows funding of growth Unlevered balance sheet and strong liquidity Cash generation and utilisation 80 ● Final dividend of R11,50 per share Rand billion ● Gearing (net debt:equity) 60 deleveraged to -2,8% ● Credit ratings stable at one notch 40 above sovereign ● Liquidity remains str
Slide 20: Capital portfolio reprioritised
Capital portfolio reprioritised Capital spend forecast increases Capital expenditure 80 ● Forecast increased due to Rand billion 70 weakening exchange rate 65 65 60 60 ● Reduced sustenance capex 45 45 without compromising on safety, reliability and sustainability of 40 operations ● Focus on strategi
Slide 21: FY16 outlook
FY16 outlook Solid operational performance and cost reductions to continue ● South African liquid fuels sales volumes expected to be above 60 million barrels ● Average utilisation of ORYX GTL is expected to be above 87% even with statutory shutdown ● Chemicals sales volumes to be slightly higher tha
Slide 22: Refocusing Our Efforts
REFOCUSING OUR EFFORTS David E Constable President and Chief Executive Officer Maintaining momentum
Slide 23: Refined near- to medium-term strategic agenda
Refined near- to medium-term strategic agenda Refocused to respond to the volatile macroeconomic environment FOUNDATION SUSTAINABLE GROWTH “Nurture and Grow” “Expand and Deliver” GROW SHAREHOLDER VALUE SUSTAINABLY Deliver low-cost feedstocks Grow Southern Africa Upstream in Southern Africa upstream
Slide 24: Dual regional strategy: Southern Africa advancement
Maintaining momentum on our dual regional strategy Southern Africa advancement ● Secunda Growth Programme substantially complete ● Phase 1 of Wax Expansion Project reached beneficial operation in May 2015 ● Upstream Production Sharing Agreement (PSA) – awaiting approval from Mozambican authorities ●
Slide 25: Dual regional strategy: North America selective growth projects
Maintaining momentum on our dual regional strategy North America selective growth projects ● High density polyethylene (HDPE) joint venture on budget and on track for completion in 2016 ● Lake Charles Chemicals Project update ● Cumulative expenditure to end FY15 was US$1,8 billion with total amount
Slide 26: Protecting shareholder value
Protecting shareholder value Weathering a challenging environment ● Operations remain stable, safe and deliver at record levels ● Resilience of the chemicals, Southern African upstream and downstream refining portfolios supports business during lower oil price environment ● Proactive cost optimisati
Slide 27: Questions and Answers
QUESTIONS AND ANSWERS David E Constable President and Chief Executive Officer Maintaining momentum