financial results for the six months ended 31 December 2010 Pat Davies chief executive 0 7 March 2011 JSE: SOL NYSE: SSL
recent achievements Accolades Ixia BEE Mining transaction Inzalo is first listing on JSE BEE board Runner up at Edelman Awards for excellence in R&D Global leader of oil and gas sector on Dow Jones Sustainability Index Second…
delivering on our priorities through focused actions Solid performance from foundation businesses Improve Synfuels volumes on track for full year, despite major planned outage; operating improved volumes across other businesses…
focused strategy delivering solid results Financial highlights Headline earnings per share up 22% to R12,97 Earnings per share up 20% to R12,68 Group cash fixed costs down in real terms Interim dividend up by 11% to R3,10 per…
financial and operational review Christine Ramon chief financial officer 5
gradual recovery in rand commodity prices Fuel price Currency USbbl US1 = Rand Brent Product price Currency 82 91 71 82 R7,64 R7,11 1H10 1H11 1H10 1H11 Chemical prices Commodity prices Average % vs Rand/unit 1H11 1H10…
cluster review: chemicals drive improved profitability % vs Robust performance from SA energy Operating profit (Rbn) 1H11 1H10 despite Synfuels planned outage and Ixia BEE once-off charge SA Energy 7,4 -8 Improved contribution from…
SA energy: robust performance despite major planned outage % vs Operating profit (Rm) 1H11 1H10 Mining benefits from higher prices. Mining 140 -18 Once-off Ixia BEE charge of R565m Gas volumes up 22% Gas 1 282 +9 Synfuels production…
international energy: oryx delivers operational improvement Operating profit (Rm) 1H11 1H10 SSI 539 112 Oryx 871 507 Oryx production up 42% Funding growth (332) (395) from 1H10 with capacity utilisation of 84% SPI 333 231…
chemical cluster: O&S delivers record performance % vs Operating profit (Rm) 1H11 1H10 Polymers overall production up by 14% Polymers 574 +519 RSA margins still tight Arya production up 26% from 1H10 Solvents 440 +116 and capacity…
healthy cash generation supports growth and enhances returns Uses of cash (Rbn) Estimated total capital expenditure and asset acquisition (Rm) 40 000 2,2 31 000 30 000 23 000 20 000 16 108 9,2 4,7 10 000 0 2010a 2011e…
balancing growth and competitive returns Return on invested capital (%) Progressive dividend growth (ZAR) 30 15 20 10 10 0 2003 2004 2005 2006 2007 2008 2009 2010 5 ROIC WACC IRR target Portfolio management with an emphasis…
outlook Operational performance Macro economic conditions FY2011 remain uncertain Continued production volume growth Commodity price fundamentals have Synfuels full year production target improved remains 7,2m tons Refining margins…
strategic review Pat Davies 16
progress on strategic imperatives Foundation Sustainable growth Definition of victory Accelerate GTL, Operations Develop and empower focused CTL growth Excellence our people Grow related Group imperatives Functional…
strategic agenda: continuously improve foundation Foundation Sustainable growth Definition of victory Accelerate GTL, Operations Develop and empower focused CTL growth Excellence our people Grow related Group imperatives…
continuously improve and grow existing asset base Key focus areas Plant stability Energy efficiency Continuous improvement Volume and Cost management margin improvement Actions delivering results 19
strategic agenda: accelerating GTL focus Foundation Sustainable growth Definition of victory Accelerate GTL, Operations Develop and empower focused CTL growth Excellence our people Grow related Group imperatives Functional…
shale gas is a game-changer in the US energy landscape The unanticipated success of shale gas in the US has completely changed North American gas market dynamics US shale gas dynamics 16 80 80% Production (bcf/d) bcf/d %…
increasing number of shale gas rigs in north america US gas drilling rigs 1 800 1 500 1 200 900 600 300 0 Rigs 2006 2007 2008 2009 2010 22 Horizontal Vertical Source: Baker Hughes
farrell creek acquisition supports GTL drive Large reserves 9,6 trillion cubic feet High quality 1 200 feet thick and brittle Access to water and gas pipeline infrastructure Proximity to potentially large GTL fuel market…
potential to grow group production significantly Farrell Creek assets offer alternative monetisation options At full ramp-up, Sasol 50% can add 600 mmcf/d As a piped gas operation this is double our current group production…
strategic agenda: new energy ramping up Foundation Sustainable growth Definition of victory Accelerate GTL, Operations Develop and empower focused CTL growth Excellence our people Grow related Group imperatives Functional…
new energy opportunities Addressing our carbon footprint Synfuels electricity generation More than 70 experienced Sasol people Coal 33% Partially funded by proceeds from sale of 50% Gas turbines carbon credits Eskom Initial…
capital projects must sustain competitive advantage and low-cost position 1. Strategic fit 2. Rate of return 3. Risk profile Backward integrated Grow technological into feedstock Tetramerisation lead Off-take arrangements and wax…
project pipeline exploiting opportunities from shift in global energy landscape Exploration Implementation Feasibility Pre-feasibility Idea stage gas focus Secunda growth Canada GTL Several GTL Several GTL Mozambique blocks phase 1…
sasols investment case remains strong Leading technology-driven, Stability Unique investment alternative energy company in a volatile world proposition Proven alternative energy Long-term oil fundamentals Strong and improving…
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