JSE: SOL | NYSE: SSL - Sasol | Global integrated chemicals ... · Forward-looking statements: Sasol...

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better together… we deliver 2

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 also relate to our future prospects, developments and

business strategies. Examples of such forward-looking statements include, but are not limited to, statements

regarding exchange rate fluctuations, volume growth, increases in market share, total shareholder return and

cost reductions. Words such as “believe”, “anticipate”, “expect”, “intend”, “seek”, “will”, “plan”, “could”, “may”,

“endeavour” and “project” and similar expressions are intended to identify such forward-looking statements,

but are not the exclusive means of identifying such statements. By their very nature, forward-looking

statements involve inherent risks and uncertainties, both general and specific, and there are risks that the

predictions, forecasts, projections and other forward-looking statements will not be achieved. If one or more of

these risks materialise, or should underlying assumptions prove incorrect, our actual results may differ

materially from those anticipated. You should understand that a number of important factors could cause

actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed

in such forward-looking statements. These factors are discussed more fully in our most recent annual report

under the Securities Exchange Act of 1934 on Form 20-F filed on 12 October 2012 and in other filings with the

United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive;

when relying on forward-looking statements to make investment decisions, you should carefully consider both

these factors and other uncertainties and events. Forward-looking statements apply only as of the date on

which they are made, and we do not undertake any obligation to update or revise any of them, whether as a

result of new information, future events or otherwise.

introduction

David E. Constable Chief Executive Officer


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 investment case

Lake Charles, Louisiana Sasol Synfuels, Secunda


notwithstanding global challenges

solid full year earnings

4,1

7,1

9,7

7,7

5,8

9,4

10,4

17,0

22,4

13,6

15,9

19,8

23,6

26,3

0

5

10

15

20

25

30

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Rb

n

Sasol’s attributable earnings

Attributable earnings Linear (Attributable earnings)

Global

recession


Sasol Water reticulation, Secunda Sasol Polymers, Secunda

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 including water stewardship

● Contributed R30,8 billion to direct and indirect taxes in South Africa

● Invested 59% of CAPEX spend in South Africa

● Achieved level 3 B-BBEE contributor status



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

● Construction underway of R2 billion Gas Loop Line in Mozambique

● Mine replacements on time and within budget

Sasol Mining, Secunda Sasol Central Processing Facility, Mozambique



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

● Progressing the reduction of our shareholding in Uzbekistan GTL project to 25,5%

GTL site visit, Uzbekistan Lake Charles, Louisiana


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 production records

• Average utilisation rate 80% of design capacity despite extended shutdown

• Average run rate for May and June equalled 106% of design capacity

● Total of R5,1 billion spent to date on self-generation of low-carbon electricity

Gas Engine Power Plant, Sasolburg ORYX GTL, Qatar Sasol Synfuels, Secunda


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 share - up by 9%

Sasol Synfuels, Secunda Lake Charles, Louisiana


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 savings drivers

• Efficiency gains from new operating model

• Operational productivity improvements

• Redesigned fit-for-purpose functions

• Procurement cost reductions

Lake Charles, Louisiana

Lake Charles, Louisiana

Sasol Retail Site, South Africa Sasol Polymers, Secunda Gas Engine Power Plant, Sasolburg

financial and operational

performance

Christine Ramon

Chief Financial Officer


Prices reflect international commodities or baskets of commodities and are not necessarily Sasol specific

Sources: RSA Department of Energy, ICIS-LOR, Reuters, Platts, World Scale Association, McCloskey, International Energy Agency

favourable currency effects

despite weaker commodity prices U

S$/ton

Softening chemical prices

Polymers basket

Solvents basket

US

$1 =

ZA

R

Weakening currency

$1 241

$1 362

$1 251

$1 174

FY12 FY13

FY12 FY13 FY12 FY13

R7,78

R8,85

Commodity prices

Rand/unit

Average

FY13

% ∆ vs

FY12

Brent/bbl 962 ▲ 10

Fuel products/bbl 1 132 ▲ 11

Polymers/ton 11 072 ▲ 11

Solvents/ton 10 396 ▼ 2

Export coal/ton 749 ▼ 9

0

5

10

0

100

200

$/m

mb

tu (

ga

s p

rice)

US

$/b

bl

Higher US gas prices, lower fuel and oil

Brent

Product price

Henry Hub

$112

$128

$109

$3,05 $3,44

$131


2013 2012 % ∆

SA Energy 37,0 29,0 ▲ 28

International Energy (0,3) (0,1) ▼ 418

Chemicals 1,9 6,5 ▼ 70

Other 2,0 1,4 ▲ 43

Operating profit (Rbn) 40,6 36,8 ▲ 11

Operating margin (%) 22,4 21,7 ▲ 1

Earnings per share (R) 43,38 39,10 ▲ 11

Headline earnings

per share (R) 52,62 42,28 ▲ 25

Dividend per share (R) 19,00 17,50 ▲ 9

Cash flow from

operations (Rbn) 59,3 47,9 ▲ 24

group profitability underpinned by SA energy

● Synfuels production improvement enhances

performance from SA Energy

● International energy negatively impacted by ORYX

GTL extended statutory shutdown

● Chemicals remain under pressure – Arya & FTWEP

partial impairments

● Operating profit negatively impacted by once-off

charges of R8,5 billion – operating profit up by 26%

excluding once-offs

● Other includes Merisol fair value adjustment and

Canada FEC gains

91%

4%

5%

Operating profit split

SA Energy Intl Energy Chemicals Other


36 758

27% 1% (13%)

(9%)

∆ 11% 40 628

2% (4%)

0

10 000

20 000

30 000

40 000

50 000

FY12 Exchangerate¹

Crude oiland prices

Once-offs² Year-endadjust-ments³

Depre- ciation⁴

Costs and other⁵

Salesvolumes

FY13

Rm

Operating profit

7%

Macro environment Costs and volumes

1. Includes gains on forward exchange contracts (R0,8bn) and ASPC translation losses (-R2,0bn)

2. Includes ASPC (-R3,6bn) and FTWEP (-R2,0bn) partial impairments and other remeasurement items

3. Includes adjustments for provision for rehabilitation (R2,1bn), share-base payment expenses (-R1,3bn)

4. Includes incremental depreciation for Canada (-R0,7bn)

5. Includes growth and study costs (-R0,4bn)

operating profit impacted by once-off charges

and year-end adjustments

36 758

27% 1% (13%)

(9%) ∆ 11% 40 628

2% (4%)

0

10 000

20 000

30 000

40 000

50 000

FY12 Exchangerate¹

Crude oiland prices

Once-offs² Year-endadjust-ments³

Depre- ciation⁴

Costs and other⁵

Salesvolumes

FY13

Rm

Operating profit

7%


1. Includes the impact of inflation (6%), exchange rate effects (3%) and electricity price increases above normal inflation

2. Relates mainly to higher labour costs, cost reclassifications from variable to fixed cost and increased maintenance and utility costs

cash fixed costs increase compounded

by challenging environment

35 568

39 066 (10%) (1%) (7%)

0

10 000

20 000

30 000

40 000

50 000

FY12 Uncontrollablefactors¹

Period-on-periodnormalised

Growth andstudy costs

Other² FY13

Rm

Cash fixed costs

∆ (18%)

41 992

7% increase in

cash fixed costs

in real terms,

excluding exchange

rate effects


Operating profit (Rm) 2013 2012 % ∆

Mining 2 213 2 287 ▼ 3

Gas 4 069 2 985 ▲ 36

Synfuels 28 624 22 095 ▲ 30

Oil 2 072 1 592 ▲ 30

Other - (2) ▲ 100

Total cluster 36 978 28 957 ▲ 28

SA energy:

Synfuels production exceeds expectations

● Mining impacted by lower export prices and higher

operating costs

● Gas volumes continue to grow

● Synfuels

• Production volumes up by 4% coupled with higher

rand product prices

• Cash unit costs increased by 13%, mainly due to

labour and energy costs as well as higher

feedstock costs (largely internal)

● Oil benefited from higher margins and product prices

despite lower sales volumes

• Natref volumes lower due to extended shutdown

and lower demand

Sasol Mining, Secunda Natref, Sasolburg


international energy:

ORYX GTL delivers lower production volumes

● ORYX GTL lower volumes due to extended planned

statutory shutdown, within guided range

● SPI

• Volumes from Mozambique, Gabon and Canada

up 16% in aggregate

• Canada remains cash positive

- However, assets remain under pressure due

to low gas prices and high depreciation

• Exploration and growth costs include Mupeji-1 dry

well write-off of R442 million


SSI 1 601 1 881 ▼ 15

ORYX GTL 2 670 2 856 ▼ 7

Funding growth (1 069) (975) ▼ 10

SPI (1 886) (1 936) ▲ 3

Mozambique and Gabon 1 638 1 699 ▼ 4

Canada upstream (1 815) (2 226) ▲ 18

Exploration and growth (1 709) (1 409) ▼ 21

Total cluster (285) (55) ▼ 418

Total cluster ex Canada 1 530 2 171 ▼ 30

ORYX GTL, Qatar Sasol CPF, Mozambique


chemicals: remain under pressure, negative impact

of partial impairments

● Polymers improved sales volumes in South Africa

• Sales prices improved in 2H13 on the back of the

weaker exchange rate

• ASPC negatively impacted by R2 billion translation

losses and R3,6 billion partial impairment;

production within guidance of 80% utilisation rate

● Solvents trading environment remains challenging

despite higher production and sales volumes

● O&S US operations benefit from low ethane prices,

however Europe remains under margin pressure

● Other chemicals includes R2 billion partial impairment

on FT Wax expansion project


Polymers (2 829) 716 ▼ 495

Solvents 916 1 403 ▼ 35

O&S 3 580 3 193 ▲ 12

Other 252 1 188 ▼ 79

Total cluster 1 919 6 500 ▼ 70

Sasol Solvents, Secunda Lake Charles, Louisiana


investing for sustainable growth

32,3

42,0

50,0

0

10

20

30

40

50

60

2013 act 2014 est 2015 est

Rb

n

Estimated capital investments

Sustenance Growth

20,7

29,2

32,3

0

10

20

30

40

2011 2012 2013

Rb

n

Increased capital investments to fuel growth

SA Energy Int Energy Chemicals Other


1. Cash generated by operations after payment of taxes

delivering strong returns through the cycle

0

10

20

30

40

50

Sources Uses Sources Uses

Rb

n

Sources and uses of cash

Cash gen. by ops after tax¹ Asset disposals

Dividends Acquisitions and investments

Capex

2012

2013

0

10

20

30

0

10

20

30

2010 2011 2012 2013

%

%

Delivering ROIC ahead of WACC

ROIC WACC IRR target


1. Source: Bloomberg 30 June 2012 to 30 June 2013, assuming dividends are reinvested in securities

2. Source: Bloomberg 30 June 2008 to 30 June 2013, assuming dividends are reinvested in securities

we remain committed to delivering value to

shareholders

0

10

20

30

40

50

2010 2011 2012 2013

ZA

R

Growth in earnings per share

Earnings per share Dividend per share

Rand one year TSR1 32%

Rand five year TSR 2 14%

0

10

20

30

2010 2011 2012 2013

ZA

R

Progressive dividend growth

Interim Final

Dividend yield of

4,4%


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

● Product prices expected to remain volatile

● Resolution of European debt crisis and US debt

ceiling remains uncertain

● Chinese growth slowing

● Rand remains biggest external factor impacting

profitability

• Weaker ZAR will improve profitability

● Production

• Synfuels FY14 target of 7,3 mt to 7,5 mt

(total shutdown year)

• ORYX GTL average utilisation rate to

exceed 85%

• Canada to marginally increase production

● Cost optimisation

• Expect normalised cash fixed costs to exceed

indicative South African PPI

• Focus on volume growth, margin

improvement and cost reduction

● Expect continued pressure on Polymers

South Africa operating margins

strong investment case

David E. Constable Chief Executive Officer


delivering

shareholder value

sustainably

keeping the project pipeline full

focusing on delivery

● Mozambique blocks A,

Sofala, Inhassoro

● Canada shale gas

FEED/EPC

● Escravos GTL

● Uzbekistan GTL

● US GTL and chemical value adds

● Tetramerisation

● FT wax expansion

● US ethane cracker and derivatives

● Synfuels growth

programme

● Mine replacement

programme

● Botswana, Coal Bed Methane

● Australia

● Durban, South Africa offshore

● Mozambique electricity generation

Exploration

● Ethylene purification

● Mozambique gas

pipeline

● C₃ stabilisation

Accelerate GTL growth

Grow value chain based on

feedstock, market and/or

technology advantage

Develop and grow low-carbon

power generation

Improve and grow existing

asset base

Strategic drivers

Grow related upstream

business


● Solid foundation

businesses

● Proven technologies

● Deliver consistent and

strong cash flows

● Platform for our

sustainable growth

strategy

● Ability to monetise

hydrocarbon resources

● Capitalise on low feedstock

prices

● Demand for high quality

fuels and chemicals

● Strong project pipeline

including US mega-projects

● Solid balance sheet

underpinning growth

● Progressive dividend

policy

● Long-term shareholder

value

strong investment case

sustainable value creation

Existing asset base Growth opportunities Value creation

questions and answers

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