Slide 1: Financial results for the six months ended 31 December 2012
financial results for the six months ended 31 December 2012 JSE: JSE: SOL SOL|| NYSE: NYSE: SSL 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 ● Resilient notwithstanding global challenges ● Well-positioned regional strategies ● Delivering and growing sustainably ● Strong operational and financial performance ● Advancing exciting growth projects ● Compelling investment proposition Westlake Facility, La
Slide 5: Resilient notwithstanding global challenges
resilient notwithstanding global challenges strong performer during challenging times Sasol’s attributable earnings 25 23,6 22,4 19,8 20 17,0 15 15,9 ZARbn 13,6 Global 9,7 recession 9,4 10 10,4 7,7 7,1 5 4,1 5,8 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Attributable earnings
Slide 6: Well-positioned regional strategies
well-positioned regional strategies solid foundation in Africa with exciting opportunities to expand internationally Emerging economies Mature economies Real GDP (% CAGR 2010-15, PPP) Real GDP (% CAGR 2010-15, PPP) 8 7,3 8 6 5,4 6 3,9 4 4 2,5 2 2 1,0 0,8 0 0 Asia Sub-Saharan Latin United States Japa
Slide 7: Delivering and growing sustainably
delivering and growing sustainably broader contributions to the communities we live and work in ● Significant skills transfer and community support • Basic and continuing education – focusing on maths, science and technology • Skills development • Infrastructure and community development ● Committed
Slide 8: Delivering and growing sustainably: milestones in South Africa
delivering and growing sustainably advancing key milestones in South Africa in 1H13 ● Next phase of our R14bn mine replacement programme on track ● Synfuels growth programme delivers results with • The commissioning of four new gasifiers • Progress made on projects supporting environmental sustainab
Slide 9: Delivering and growing sustainably: milestones abroad
delivering and growing sustainably advancing key milestones abroad in 1H13 ● Announced 2 strategic mega-projects progressing to FEED in Lake Charles, USA • World-scale ethane cracker and derivatives • Integrated GTL and chemicals facility ● FEED work for Uzbekistan GTL plant progressing according to
Slide 10: Solid operational performance
solid operational performance solid global operations ● ORYX GTL plant continues to achieve production records • Average production above 90% of design capacity ● Sasol Synfuels delivered production for the period of 3,7 mt • Successful shutdown in September 2012 ● Arya delivering solid results desp
Slide 11: Strong financial performance
strong financial performance solid earnings ● Sasol Synfuels’ production up 10% ● Operating profit up by 9% (excluding once-offs) to R22,6bn ● Headline earnings per share up by 2% to R24,01 ● Interim dividend of R5,70 per share ● Cash flow from operations up by 6% to R27,5bn ORYX GTL, Qatar Sasol Sy
Slide 12: Financial and operational performance
financial and operational performance Christine Ramon Chief Financial Officer
Slide 13: Favourable currency effects offset softer commodity prices
favourable currency effects offset softer commodity prices Lower US$ fuel, oil and US gas prices Weakening currency US$/bbl 200 10 US$1 = ZAR $/mmbtu (gas price) Brent Product price Henry Hub $130 $128 R8,48 100 $111 $110 5 R7,63 $3,72 $3,14 0 0 1H12 1H13 1H12 1H13 Softening chemical prices Commodit
Slide 14: Group profitability underpinned by SA energy
group profitability underpinned by SA energy 1H13 1H12 %∆ SA Energy 16,7 13,5 ▲ 24 ● Synfuels production improvement continues ● Robust performance from SA Energy International Energy 0,5 1,2 ▼ 58 ● Oryx GTL excels, dry well write off in Mozambique Chemicals - 4,3 ▼100 ● Chemicals remain under press
Slide 15: Cash fixed costs increase compounded by challenging environment
cash fixed costs increase compounded by challenging environment Cash fixed costs 30 000 Cash fixed costs increase 6,9% in real terms excl. study, growth and once-off costs ∆ (16%) 20 000 (5%) 19 155 (9%) 18 003 (2%) 16 484 10 000 0 Rm 1H12 Uncontrollable Period-on-period Growth and Maintenance 1H13
Slide 16: SA energy: solid operational performance
SA energy: solid operational performance Operating profit (Rm) 1H13 1H12 %∆ Mining 1 301 1 002 ▲ 30 ● Mining benefited from higher sales prices and volumes to Synfuels Gas 2 038 1 461 ▲ 39 ● Gas improved sales prices and volumes continue Synfuels 12 458 9 909 ▲ 26 ● Synfuels production volumes up 10
Slide 17: International energy: ORYX GTL excels in performance
international energy: ORYX GTL excels in performance Operating profit (Rm) 1H13 1H12 %∆ SSI 1 235 1 033 ▲ 20 ● ORYX ORYX 1 743 1 584 ▲ 10 • Production exceeds 90% design capacity Funding growth (508) (551) ▲ 8 • Contributes 9% to group operating profit SPI (707) 121 ● SPI Mozambique and Gabon 985 74
Slide 18: Chemicals: lower demand, margin pressure and Arya impairment
chemicals: lower demand, margin pressure and negative impact of Arya impairment Operating profit (Rm) 1H13 1H12 %∆ Polymers (2 440) 546 ▼ 547 ● Polymers improved sales and production volumes in South Africa Solvents 48 1 115 ▼ 96 • Local margins remain under severe pressure O&S 1 567 1 660 ▼ 6 • Ary
Slide 19: Cash generation funds growth opportunities
cash generation funds growth opportunities Sources and uses of cash Capital investments 30 40 35,0 32,0 30 29,2 20 20 69% 65% 10 2% 10 2% 29% 33% 0 0 Rbn Sources Uses Sources Uses Rbn 2012 2013 2014 act est est 1H12 1H13 Cash gen. by ops after tax Asset disposals Dividends Acquisitions and investmen
Slide 20: We remain committed to our progressive dividend policy
we remain committed to our progressive dividend policy Stable interim dividend Growth in earnings per share 30 6 40 Rand TSR1 29% 30 20 4 20 10 2 10 0 0 0 ZAR 2009 2010 2011 2012 1H13 % ZAR 2009 2010 2011 2012 1H12 1H13 Interim Final Dividend yield (year-end) Earnings per share Dividend per share 1.
Slide 21: FY13 profit outlook
FY13 profit outlook: strong management focus on improved operational performance and cost reduction Macro Financial and operational ● Oil price expected to remain stable ● Production ● Product prices expected to remain volatile • Synfuels FY13 target of 7,2 mt to 7,4 mt ● Resolution of European debt
Slide 22: A compelling investment proposition
a compelling investment proposition David E. Constable Chief Executive Officer
Slide 23: Advancing to FEED and EPC
advancing to FEED and EPC focusing on delivery FEED/EPC ● US GTL Accelerate GTL growth ● Uzbekistan GTL delivering ● Escravos GTL shareholder ● Integrated US chemicals value Grow chemicals based ● US ethane cracker and derivatives sustainably on technology, market ● Tetramerisation or feedstock adva
Slide 24: Our investment considerations
our investment considerations four key questions Technology and Feedstock Market Capability production platform Do we have Do we have Do we have Do we have the a leading a technology, a product required project low-cost scale of plant or or market position execution feedstock operating know-how that
Slide 25: Why the United States?
why the United States? four critically important answers Technology and Feedstock Market Capability production platform ● Large availability of ● Lake Charles ● Existing market ● Phased execution low-cost ethane competitive chemical position in ethylene approach hub value chain ● Rapid growth in gas
Slide 26: Robust US diesel prices linked to international markets
robust US diesel prices linked to international markets US and international diesel prices will remain aligned $130,2/bbl $129,8/bbl $128,7/bbl $126,2/bbl $129,2/bbl $132,6/bbl Average 2012 diesel prices in $/bbl (Platts) better together… we deliver 26
Slide 27: Compelling investment proposition
compelling investment proposition sustainable value creation Existing asset base New growth opportunities Value creation ● Ability to monetise hydrocarbon resources Solid foundation ● Solid balance sheet businesses ● Capitalise on low underpinning growth feedstock prices ● Progressive dividend ● Dem
Slide 28: Questions and answers
questions and answers JSE: SOL | NYSE: SSL