financial results for the six months ended 31 December 2012 JSE: SOL | NYSE: SSL JSE: SOL | NYSE: SSL
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. better together… we deliver 2
introduction David E. Constable Chief Executive Officer
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, Lake Charles, Louisiana Sasol Synfuels, Secunda better together… we deliver 4
resilient notwithstanding global challenges strong performer during challenging times Sasol’s attributable earnings 25 23,6 22,4 19,8 20 17,0 ZARbn 15 15,9 13,6 Global recession 9,7 9,4 10 10,4 7,7 7,1 4,1 5 5,8 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Attributable earnings Linear (Attributable earnings) better together… we deliver 5
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 8 7,3 6 6 5,4 3,9 4 4 2,5 2 2 1,0 0,8 0 0 Asia Sub-Saharan Latin United States Japan Eurozone Arica America ● Rapid development of shale gas in North ● 66% of Sasol’s total assets are within sub-Saharan Africa America revitalising the energy and chemicals sectors ● South Africa contributes 28% to sub-Saharan Africa’s GDP ● Opportunity to create a strong competitive position Source: IMF WEO (Oct 12), Sasol calculations better together… we deliver 6
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 R800m over 4 years through Project Ikusasa for municipality renewal ● Siyakha supports the establishment of broad-based black empowered enterprises ● Largest SA corporate taxpayer – contributed R15bn in 1H13 to direct and indirect taxes ● 72,4% of our CAPEX spend invested in South Africa Group Partnership Forum with Sasol Management Siyakha Development Trust Initiative better together… we deliver 7
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 sustainability ● Sasolburg Gas Engines Power Plant commissioned in December 2012 ahead of schedule and well within budget Coal blending facility at Secunda Sasol Synfuels, Secunda Sasolburg Gas Engines Power Plant better together… we deliver 8
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 schedule ● FID on gas-fired electricity generation in Mozambique Central Processing Facility, Mozambique FEED Announcement, Lake Charles, Louisiana better together… we deliver 9
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 despite challenging environment ● Safety improvement plans deliver positive results • ORYX GTL achieved a recordable case rate of zero ORYX GTL, Qatar Members of Sasol Mining Team, Secunda Brandspruit Colliery, Secunda better together… we deliver 10
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 Synfuels, Secunda better together… we deliver 11
financial and operational performance Christine Ramon Chief Financial Officer
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 $130 Henry Hub $128 R8,48 100 5 $111 $110 R7,63 $3,72 $3,14 0 0 1H12 1H13 1H12 1H13 Softening chemical prices % ∆ vs Commodity prices Average US$/ton Rand/unit 1H13 1H12 Polymers basket Solvents basket ▲ 10 Brent/bbl 931 $1 417 ▲ 13 Fuel products/bbl 1 084 $1 220 ▲ 8 Polymers/ton 10 346 $1 265 ▼ 10 Solvents/ton 9 716 $1 146 ▼ 14 Export coal/ton 735 1H12 1H13 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, API 4, International Energy Agency better together… we deliver 13
group profitability underpinned by SA energy % ∆ 1H13 1H12 ● Synfuels production improvement continues ▲ 24 SA Energy 16,7 13,5 ● Robust performance from SA Energy ▼ 58 International Energy 0,5 1,2 ● Oryx GTL excels, dry well write off in Mozambique ▼ 100 Chemicals - 4,3 ● Chemicals remain under pressure – lower demand ▲ 13 Other 1,7 1,5 and margin squeeze, Arya partial impairment ● Operating profit negatively impacted by once-off ▼ 8 Operating profit (Rbn) 18,9 20,5 charges of R3,6bn – operating profit up by 9% excluding once-offs ▼ 10 Operating margin (%) 22,2 24,6 ● Other includes Merisol fair value adjustment and Canada FEC gains ▼ 13 Earnings per share (R) 20,10 23,05 Operating profit split Headline earnings 9% ▲ 2 24,01 23,50 3% per share (R) Dividend per share (R) 5,70 5,70 Cash flow from ▲ 6 27,5 25,9 operations (Rbn) 88% SA Energy Intl Energy Chemicals Other better together… we deliver 14
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%) (5%) 19 155 20 000 (2%) 18 003 (9%) 16 484 10 000 0 Rm 1H12 Uncontrollable Period-on-period Growth and Maintenance 1H13 factors¹ normalised study costs and other² 1. Includes the impact of inflation (5,1%), exchange rate effects (2,5%) and electricity price increases above normal inflation (1,4%) 2. Relates mainly to higher maintenance costs (R473m) due to shutdown at Polymers and increased renewal spend at Synfuels to restore the plant as well as higher labour costs better together… we deliver 15
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