Slide 1: Sasol Limited audited financial results for the year ended 30 June 2013
ef e reaching new frontiers oy” Sasol Limited audited financial results for the year ended 30 June 2013 better together... we deliver 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 Chief Executive Officer
Slide 4: What you will hear today
what you will hear today key messages ● Solid full year earnings notwithstanding global uncertainty ● Delivering and growing sustainably ● Driving enhanced business effectiveness ● Further enhanced operational and financial performance ● Full project pipeline and refined top priorities ● Strong inve
Slide 5: Solid full year earnings notwithstanding global challenges
solid full year earnings notwithstanding global challenges Sasol’s attributable earnings 30 Rbn 26,3 25 23,6 22,4 19,8 20 17,0 15 15,9 13,6 9,7 9,4 10 Global 7,1 7,7 10,4 recession 5 4,1 5,8 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Attributable earnings Linear (Attribu
Slide 6: Delivering and growing sustainably: our broader contributions in FY13
delivering and growing sustainably our broader contributions in FY13 ● Contributed R135 million of the R800 million committed through the Ikusasa initiative ● Invested R627,3 million in socioeconomic development ● Spent R837 million on skills development ● Progress made on environmental initiatives
Slide 7: Key milestones in 2H13 in Southern Africa
delivering and growing sustainably key milestones in 2H13 in Southern Africa ● First set of Gas Heated Heat Exchange Reformers successfully commissioned at Synfuels ● Ethylene Purification Unit (EPU5) being commissioned in Sasolburg ● Construction of Mozambican Gas Engines Power Plant on track ● Con
Slide 8: Key milestones in 2H13 abroad
delivering and growing sustainably key milestones in 2H13 abroad ● Progressed our world-scale ethane cracker • Appointed key EPC contractors • Orders placed for long-lead items • Submitted permit applications • Approval granted for incentives ● US GTL project progressing according to plan ● Progress
Slide 9: Solid operational performance: operations highlights
solid operational performance operations highlights ● Safety performance • Group RCR 0,31 - lowest annual result in our 63 year history ● Sasol Synfuels delivered production for the year of 7,443 mt • Highest production volumes since 2006 financial year ● ORYX GTL plant continues to achieve producti
Slide 10: Strong financial performance: delivering shareholder returns
strong financial performance delivering shareholder returns ● Sasol Synfuels’ production up 4% ● Operating profit up by 26% (excluding once-offs) to R40,6 billion ● Headline earnings per share up by 25% to R52,62 ● Cash flow from operations up by 24% to R59,3 billion ● Total dividend of R19,00 per s
Slide 11: Driving enhanced business effectiveness
driving enhanced business effectiveness focusing on sustainable savings ● Cost optimisation and simplified operating model to ensure enhanced business effectiveness ● Expected to generate sustainable annual savings of at least R3 billion ● Savings to be delivered within the next 2 to 3 years ● Key s
Slide 12: Financial and operational performance
financial and operational performance Christine Ramon Chief Financial Officer
Slide 13: Favourable currency effects despite weaker commodity prices
favourable currency effects despite weaker commodity prices Higher US gas prices, lower fuel and oil Weakening currency 200 10 R8,85 $/mmbtu (gas price) US$/bbl US$1 = ZAR Brent Product price Henry Hub $131 $128 R7,78 100 $112 $109 5 $3,05 $3,44 0 0 FY12 FY13 FY12 FY13 Softening chemical prices Comm
Slide 14: Group profitability underpinned by SA energy
group profitability underpinned by SA energy 2013 2012 %∆ ● Synfuels production improvement enhances SA Energy 37,0 29,0 ▲ 28 performance from SA Energy International Energy (0,3) (0,1) ▼ 418 ● International energy negatively impacted by ORYX GTL extended statutory shutdown Chemicals 1,9 6,5 ▼ 70 ●
Slide 15: Operating profit impacted by once-off charges and year-end adjustments
operating profit impacted by once-off charges and year-end adjustments Operating Operating profit profit Macro environment Costs and volumes 50 50 000 Rm 000 27% 1% (13%) Rm 27% 1% (13%) 2% (4%) ∆ 11% 2% (4%) (9%) ∆ 11% 7% 7% 40 628 40 628 40 000 40 000 36 758 (9%) 36 758 30 30 000 000 20 000 10 000
Slide 16: Cash fixed costs increase compounded by challenging environment
cash fixed costs increase compounded by challenging environment Cash fixed costs 50 000 Rm ∆ (18%) (7%) 41 992 (10%) 39 066 (1%) 40 000 35 568 7% increase in 30 000 cash fixed costs in real terms, excluding exchange rate effects 20 000 10 000 0 FY12 Uncontrollable Period-on-period Growth and Other²
Slide 17: SA energy: Synfuels production exceeds expectations
SA energy: Synfuels production exceeds expectations Operating profit (Rm) 2013 2012 % ∆ ● Mining impacted by lower export prices and higher operating costs Mining 2 213 2 287 ▼ 3 ● Gas volumes continue to grow Gas 4 069 2 985 ▲ 36 ● Synfuels Synfuels 28 624 22 095 ▲ 30 • Production volumes up by 4%
Slide 18: International energy: ORYX GTL delivers lower production volumes
international energy: ORYX GTL delivers lower production volumes Operating profit (Rm) 2013 2012 % ∆ ● ORYX GTL lower volumes due to extended planned SSI 1 601 1 881 ▼ 15 statutory shutdown, within guided range ORYX GTL 2 670 2 856 ▼ 7 ● SPI Funding growth (1 069) (975) ▼ 10 • Volumes from Mozambiqu
Slide 19: Chemicals: remain under pressure, negative impact of partial impairments
chemicals: remain under pressure, negative impact of partial impairments Operating profit (Rm) 2013 2012 % ∆ ● Polymers improved sales volumes in South Africa Polymers (2 829) 716 ▼ 495 • Sales prices improved in 2H13 on the back of the weaker exchange rate Solvents 916 1 403 ▼ 35 • ASPC negatively
Slide 20: Investing for sustainable growth
investing for sustainable growth Increased capital investments to fuel growth Estimated capital investments 40 60 Rbn Rbn 32,3 50,0 50 30 29,2 42,0 40 20,7 32,3 20 30 20 10 10 0 0 2011 2012 2013 2013 act 2014 est 2015 est SA Energy Int Energy Chemicals Other Sustenance Growth better together… we del
Slide 21: Delivering strong returns through the cycle
delivering strong returns through the cycle Sources and uses of cash Delivering ROIC ahead of WACC 50 2013 30 30 Rbn % % 40 2012 20 20 30 20 10 10 10 0 0 0 Sources Uses Sources Uses 2010 2011 2012 2013 Cash gen. by ops after tax¹ Asset disposals ROIC WACC IRR target Dividends Acquisitions and invest
Slide 22: We remain committed to delivering value to shareholders
we remain committed to delivering value to shareholders Progressive dividend growth Growth in earnings per share 30 50 ZAR ZAR Rand one year TSR1 32% Dividend yield of Rand five year TSR 2 14% 4,4% 40 20 30 20 10 10 0 0 2010 2011 2012 2013 2010 2011 2012 2013 Interim Final Earnings per share Dividen
Slide 23: FY14 profit outlook
FY14 profit outlook: strong management focus on cost optimisation and design of simplified operating model Macro Financial and operational ● Oil price expected to remain stable ● Production ● Product prices expected to remain volatile • Synfuels FY14 target of 7,3 mt to 7,5 mt ● Resolution of Europe
Slide 24: Strong investment case
strong investment case David E. Constable Chief Executive Officer
Slide 25: Keeping the project pipeline full
keeping the project pipeline full focusing on delivery Strategic drivers FEED/EPC ● Escravos GTL Accelerate GTL growth ● Uzbekistan GTL delivering ● US GTL and chemical value adds shareholder value sustainably Grow value chain based on ● Tetramerisation feedstock, market and/or ● FT wax expansion te
Slide 26: Strong investment case: sustainable value creation
strong investment case sustainable value creation Existing asset base Growth opportunities Value creation ● Solid foundation ● Ability to monetise ● Solid balance sheet businesses hydrocarbon resources underpinning growth ● Proven technologies ● Capitalise on low feedstock ● Progressive dividend ● D
Slide 27: Questions and answers
SaSOL reaching new frontiers questions and answers better together... we deliver
Slide 28: Sasol Limited audited financial results for the year ended 30 June 2013
ef e reaching new frontiers oy” Sasol Limited audited financial results for the year ended 30 June 2013 better together... we deliver JSE: SOL | NYSE: SSL