Slide 1: 1h03 results presentation
1h03 results presentation SAaSOL reaching new frontiers
Slide 2: Copyright notice, contacts and forward-looking statements
The copyright in the material contained in this presentation vests in Sasol Limited, and any reproduction, publication, adaptation, broadcast or performance in public of any portion of this material requires the express prior authorisation of Sasol Limited Contact persons: - Cavan Hill (+27 11 441 3
Slide 3: Highlights
highlights • capital projects of R19 bn committed • n-butanol plant and Oryx GTL (Qatar) • Platts/Business Week vote Sasol Mining the “International Coal Company of the year” for 2002 • corporate credit rating from S&P upgraded to BBB • NYSE listing date confirmed for 9 April 3
Slide 4: Market conditions
market conditions 4
Slide 5: Oil price
oil price $/bbl Brent Dubai Derived Product IBLC 45 35 25 -2% $22.84/bbl $22.35/bbl 15 5 fy98 fy99 fy00 fy01 fy02 1h03 5
Slide 6: Rand / US$ exchange rate
Rand / US$ exchange rate $1 = R 13 11 rate applicable to fuel sales average monthly rate +20% 9 +8% 7 R10.33/$ (+ 20%) R10.03/$ (+ 8%) 5 R8.64/$ R9.29/$ 3 fy98 fy99 fy00 fy01 fy02 1h03 6
Slide 7: Dollar refining margins
dollar refining margins … [expressed as a percentage of July 1997] 200% 150% 100% - 10% 50% 0% fy98 fy99 fy00 fy01 fy02 1h03 blue lines represent theoretical margins when refinery was off-line 7
Slide 8: Chemical prices
chemical prices … [expressed as a percentage of July 1997] Ammonia Polymers Phenols Solvents 160% 140% 120% 100% +19% 80% 60% 40% 20% fy98 fy99 fy00 fy01 fy02 1h03 8
Slide 9: Chemicals margins under pressure
chemicals margins under pressure 40 800 US$/bbl US$/ton 30 600 ethylene 20 400 Brent 10 200 0 0 Jun 97 1h02 1h03 9
Slide 10: Financial results
financial results x 10
Slide 11: Solid performance following a remarkable three-year growth period
solid performance following a remarkable three-year growth period 1h03 1h99 1h00 1h01 1h02 operating profit on a comparable half-yearly basis 11
Slide 12: Solid performance
solid performance change 1h03 vs.1h02 sales * R-m 34 015 +22% operating profit before R-m 8 279 +35% translation effect operating profit R-m 7 305 +4% attributable earnings R-m 4 576 - earnings per share cents 751 - dividend per share ** cents 215 +8% * Increase 14% if effect of Natref fire in 1h02
Slide 13: 1h03 sales - business unit basis
1h03 sales - business unit basis change division R-m vs. 1h02 mining 2 516 + 5% synfuels 9 896 + 25% chemicals 22 582 + 17% oil & gas * 3 803 + 59% other 478 + 37% 39 275 + 21% intergroup sales (5 260) + 15% 34 015 + 22% * Natref refinery out of commission 13 for first 3½ months of 1HFY02
Slide 14: Volatile currency impacts earnings
volatile currency impacts earnings US$1 = R 12 R11.95/$ monthly closing rate average monthly rate 11 R10.27/$ 10 R10.03/$ R9.29/$ 9 R8,57/$ 8 june 01 dec 01 june 02 dec 02 14
Slide 15: Operating profit (before translation effects)
operating profit (before translation effects) 1h03 1h02 division % change R-m R-m mining 724 609 + 19% synfuels 5 029 3 656 + 38% chemicals 1 898 1 330 + 43% oil & gas 659 874 - 25% other (31) (344) - operating profit before translation effects 8 279 6 125 + 35% translation effects (974) 922 - opera
Slide 16: Operating profit (after translation effects)
operating profit (after translation effects) 1h03 1h02 division % change R-m R-m mining 708 641 + 10% synfuels 5 023 3 688 + 36% chemicals 1 380 1 896 - 27% oil & gas 565 925 - 39% other (371) (103) - operating profit 7 305 7 047 + 4% 16
Slide 17: Operating profit (after translation effects)
operating profit (after translation effects) division 1h03 1h02 Delta % mining 708 641 67 +10% synfuels 5 023 3 688 1 335 + 36% oil & gas 565 925 (360) - 39% operating 965 925 40 + 4% shutdown costs (400) - (400) - chemicals 1 380 1 896 (516) - 27% olefins & surfactants * 158 666 (508) - rest of che
Slide 18: LAB margins under pressure
LAB margins under pressure 200% 150% 100% 50% LAB Benzene Kerosene 0% 3qf97 1h02 1h03 18
Slide 19: Operating profit before translation effects, Natref downtime and alkylates
operating profit before translation effects, cost of Natref downtime and the alkylates business of olefins & surfactants division 1h03 1h02 Delta % mining 724 609 115 +19% synfuels 5 029 3 656 1 373 + 38% oil 1 059 874 185 + 21% chemicals (excl. alkylates) 1 959 1 032 927 + 90% other (31) (344) 313
Slide 20: Divisional highlights
divisional highlights x 20
Slide 21: Mining
mining • operating profit up 10% to R708 million 786 • saleable production up 2% 800 R-m 566 342 • group selling prices up 12%, Rand export 600 235 prices down 32% 400 • productivity improvement processes 200 continue – cash mining costs/ton 0 1h01 2h01 1h02 2h02 1h03 decreased by 3% operating profi
Slide 22: Synfuels
synfuels • operating profit up 36% to R5 023 million • sales volumes of 3.9 mt - up ~4% 6000 R-m • IBLC prices up 18% in Rand terms 4000 • yields and plant integrity improved 2000 • cash fixed costs/ton up ~10% due mainly to price increases (PPI up 14.5%) 0 1h01 2h01 1h02 2h02 1h03 operating profit
Slide 23: Chemicals
chemicals • operating profit down 27% to R1 380 million (before translations effects ebit up 43%) 2000 R-m • difficult trading conditions with severe margin pressures 1500 • olefins & surfactants adversely affected by prevailing cyclical market conditions – especially 1000 alkylates 500 • strong tra
Slide 24: Oil & gas
oil & gas • operating profit down 39% to R565 million due to lower Natref production resulting from the 1200 R-m planned shutdown (R200 m) and unforeseen 900 down- problems relating to expansion project (R200m) time 600 • integrity of business remains sound oil 300 • gas business continues to grow –
Slide 25: 2003 business prospects
2003 business prospects off a high base …………. ……. currency expectations and chemical margin pressure to result in reduced earnings for fy03 25
Slide 26: Financial strength
financial strength 1h03 1h02 ratios ratios net borrowings to shareholders’ equity 32% 30% working capital to sales * 20% 25% interest cover 14x 17x return on shareholders’ equity ** 15% 19% * annualised ** not annualised 26
Slide 27: Primary growth drivers
primary growth drivers pa 27
Slide 28: Primary growth drivers
primary growth drivers • growing the chemicals portfolio • optimising performance of existing businesses • exploit upstream hydrocarbon opportunities • commercialise and expand gas-to-liquids technology 28
Slide 29: Grow chemicals portfolio
grow chemicals portfolio • Sasol Chemie successfully integrated sales ebitda into two new global businesses 48 8 • n-butanol plant commissioned 36 6 R-m R-m • new capex approvals include: 24 4 • polymers project in Iran, 2nd octene 12 2 train and vinyls expansion 0 0 '98 '99 '00 '01 '02 • Malaysian
Slide 30: Optimize performance of existing businesses
optimize performance of existing businesses • continued success of Mining renewal project 3000 R-m • fuels retail strategy advancing (project 2000 Frontiers) • evaluation of fuel specification upgrade 1000 (project Turbo) progressing – this will 0 enable significant polymer expansion 96 97 98 99 '00
Slide 31: Exploit upstream hydrocarbon opportunities
exploit upstream hydrocarbon opportunities Mozambique • additional production wells being drilled in 400 Mozambique MMBoe 300 • construction of pipeline and central processing facility on track 200 • financing arrangements well-advanced 100 West coast • first oil from Etame field (Gabon) 0 '98 '99 '
Slide 32: Commercialise and expand gas-to-liquids technology
commercialise and expand gas-to- liquids technology • US$675 m EPC contract signed for Oryx GTL (Qatar) 500 k bbl/day • Escravos GTL (Nigeria) project progressing • cobalt catalyst facility in Netherlands in 250 production • additional GTL plants under investigation in Middle East, Australia and oth
Slide 33: Prospects for the longer term
prospects for the longer term 33
Slide 34: Attributable earnings
attributable earnings we remain committed both to achieving a US dollar earnings growth of 10% per annum on a 5 year moving average basis, and to quality, value- added returns 34
Slide 35: Further phase of growth
further phase of growth Sasol is preparing for a further phase of significant growth with the commissioning of major projects – natural gas (2004), Qatar (2005) and Nigeria GTL (2006) etc., that link our proprietary technology with highly competitive, low-cost hydrocarbon reserves 35
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