Slide 1: Interim results 31 December 2007
1 interim results 31 December 2007 nurturing the foundation, delivering sustainable growth JSE: SOL 2008 interim results
Slide 2: Forward-looking statements
forward-looking statements 2 We may in this document make statements that are not historical facts and relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable. These are forward-looking statements as defined in the U.S. Private Secu
Slide 3: Sasol delivering on growth drivers and strategic agenda
Sasol delivering on growth drivers and 3 strategic agenda strategic agenda grow CTL & nurture and grow our existing GTL asset base values driven leadership style and culture deliver on SA transformation growth drivers grow agenda chemicals (based on our technology or feedstock develop and empower ou
Slide 4: Favourable markets, project delivery and operating improvements
favourable markets, project delivery and 4 operating improvements….. • 1h08 financial results operating profit up 15% to R14,0 bn Synfuels volumes up 4% headline earnings per share up 18% to R14,56 interim dividend up 18% to R3,65 per share first contribution from Oryx • share repurchase programme a
Slide 5: Delivering on sustainability
delivering on sustainability 5 • recordable case rate (safety measure) improved by 11% since June • gas turbines ordered as part of energy efficiency initiatives • significant community investments made in education, health and welfare, and job creation recordable case rate* 1,3 1,2 1,0 0,9 0,7 0,6
Slide 6: Delivering on transformation
delivering on transformation 6 • final terms of proposed BEE transaction for up to 10% ownership at Sasol Limited will be announced soon • recent share price will impact IFRS2 expense • second phase of Sasol Mining empowerment deal valued at R1,9 bn announced in October 2007 • procurement from BEE e
Slide 7: Delivering growth through project execution
delivering growth through project 7 execution • significant progress in improving operations at Oryx GTL • average production for December exceeded 16 000 b/d • Project Turbo nearing completion • cracker producing on-specification ethylene, propylene and gasoline – some remedial action still require
Slide 8: Favourable prices contributing to record earnings
favourable prices contributing to 8 record earnings $/bbl $1=R 120 8 fuel pricing currency $94,9 R7,23 R6,94 90 $82,7 7 $81,8 BFP $64,6 60 6 Brent 30 5 1h07 1h08 1h07 1h08 $/ton 1250 + 11% chemical pricing + 10% 1000 polymers solvents 750 2008 interim results 1h07 1h08
Slide 9: 1h08 earnings per share increase by 18%
1h08 earnings per share increase by 18% 9 % Rm change increase in operating profit due primarily to higher turnover 55 517 + 15% international oil and chemical prices operating profit 14 010 + 15% 81% of 1h08 operating profit generated by SA energy cluster earnings 9 148 + 15% operating profit (Rbn)
Slide 10: Financial review 1h08
10 financial review 1h08 2008 interim results
Slide 11: Impact of oil hedge on 1h08 operating profit
impact of oil hedge on 1h08 operating profit 11 %∆ operating vs. 1h07 margin % operating profit before hedge Rm 15 357 29 28 impact of hedge Rm (1 347) realised portion Rm (465) unrealised portion Rm (882) operating profit after hedge Rm 14 010 15 25 attributable earnings Rm 9 148 15 headline earnin
Slide 12: Increase in normalised cash fixed costs in line with inflation
increase in normalised cash fixed costs in 12 line with inflation dec ‘07 v dec ‘06 : normalised cash fixed cost 15.3% (4,0%) 0,9% 13,2% (1,1%) 1,4% (5,2%) (0,4%) 6,9% dec'07 new business study cost o&s shut down cfc excl. once currency hedge dec'07 restructuring off & growth normalised 2008 interim
Slide 13: Mining benefits from improved market conditions
mining benefits from improved market 13 conditions operating profit in rand million • higher operating profit due primarily to 37% increase increased sales to Synfuels • sales cost per ton up 8% 760 • operating profit for 2h08 expected to be 565 higher due to continued strong pricing 411 1h07 2h07 1
Slide 14: Gas delivers continued growth
gas delivers continued growth 14 operating profit in rand million • decrease in operating profit due to sale 21% decrease of 25% stake in natural gas pipeline in 1h07 – operating profit, before capital 371 items, up 16% 1 167 923 • sales volumes up 4% 769 796 • 2h08 operating profit forecast to be s
Slide 15: Synfuels impacted by oil hedge effect
synfuels impacted by oil hedge effect 15 operating profit in rand million • effect of oil hedge results in R1,6 bn 7% decrease swing in operating profit - excluding hedge impact, operating profit up 13% 8 360 7 891 7 815 • production output 4% higher • cash unit production costs up 8% • operating pr
Slide 16: Oil delivers excellent results
oil delivers excellent results 16 operating profit in rand million • increased operating profit primarily due 118% increase to higher sales volumes and improved margins 2 031 • crude oil processed up 6% 1 486 • operating profit for 2h08 expected to be 931 substantially lower due to reduced rand refi
Slide 17: Sasol Synfuels International benefits from Oryx GTL operations
sasol synfuels international (ssi) benefits 17 from Oryx GTL operations operating loss in rand million 25% better • lower operating loss due to increased catalyst sales and first contribution from Oryx • 2h08 operating results expected to be similar to first half (274) (366) (397) 1h07 2h07 1h08 US$
Slide 18: Sasol Petroleum International increases natural gas production
sasol petroleum international (spi) increases natural gas production 18 operating profit in rand million before exploration costs – up 8% • operating profit before exploration after exploration costs – down 12% costs up 8% • natural gas production in 496 411 Mozambique up 5% 382 352 309 • 2h08 opera
Slide 19: Polymers benefit from higher margins
polymers benefit from higher margins 19 operating profit in rand million • higher operating profit due to increased 90% increase polymer margins • sales volumes down 6% due to planned 827 shutdown • 2h08 operating profit expected to be 497 higher than the first half due to 262 additional volumes com
Slide 20: Solvents deliver solid performance
solvents deliver solid performance 20 operating profit in rand million • higher operating profit mainly due to 13% increase improved margins despite increased feedstock costs • sales volumes up 1% 616 556 490 • 2h08 operating profit expected to be slightly higher due to higher co- monomer selling pr
Slide 21: Olefins and surfactants – restructuring process progressing well
olefins and surfactants – restructuring process progressing well 21 operating profit in rand million • higher operating profit due to portfolio restructuring, improved margins and R458m increase cost savings 1 140 • cost optimisation receiving considerable capital items 1 173 attention • 2h08 operat
Slide 22: Wax continues to deliver strong performance
wax continues to deliver strong 22 performance operating profit in rand million • operating profit higher mainly due to 55% increase the sale of Paramelt RMC BV and higher margins • 2h08 operating profit, before capital 416 361 items, expected to be similar to first 268 half 1h07 2h07 1h08 US$ terms
Slide 23: Nitro businesses excel
nitro businesses excel 23 operating profit in rand million • increased operating profit due to 69% increase higher sales volumes of explosives, higher fertiliser and ammonia selling prices and the sale of Sasol Dyno 545 Nobel 323 • 2h08 operating results expected to be 287 lower than first half due
Slide 24: Strong cash flows used to fund capex and return cash to shareholders
strong cash flows used to fund capex and return cash to shareholders 24 • cash generated by operating activities up 4% to R14,1 bn • fy08 capex estimated at R12 bn, 3-year forecast remains R50 bn • interim dividend up by 18% • gearing increased to 32% mainly due to share repurchase programme • repur
Slide 25: On track for record full year earnings
on track for record full year earnings 25 • currently commissioning new production capacity at Arya Sasol • output at Oryx GTL steadily increasing • benefits to be seen in 2h08 and fy09 as capacity ramps up • fy08 earnings will reflect good growth over fy07 • based on our assumptions on prices and c
Slide 26: Conclusion
26 conclusion 2008 interim results
Slide 27: Nurturing the foundation, delivering sustainable growth
nurturing the foundation, 27 delivering sustainable growth • nurturing the foundation • restructuring at O&S making good progress • improved operational performance in SA energy • growth projects delivering • Oryx & Arya contributing to operating profit • Project Turbo delivering on-specification pr
Slide 28: Sasol delivering on growth drivers and strategic agenda
Sasol delivering on growth drivers and 28 strategic agenda strategic agenda grow CTL & nurture and grow our existing GTL asset base values driven leadership style and culture deliver on SA transformation growth drivers grow agenda chemicals (based on our technology or feedstock develop and empower o
Slide 29: Contact persons
29 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 the material requires the express prior authorisation of Sasol Limited. Contact persons: - Cavan Hill (+27 (0) 1