MAINTAINING MOMENTUM SASOL LIMITED FINANCIAL RESULTS for the year ended 30 June 2015 JSE: SOL NYSE: SSL
INTRODUCTION David E Constable President and Chief Executive Officer Maintaining momentum
What you will hear today Key messages Business resilience despite oil price and market volatility Business Performance Enhancement Programme delivering results Response Plan driving cash conservation focus Strong operational and…
Business resilience despite oil price and market volatility Decisive actions enabled a swift response Brent oil price (US/bbl) Internal Change Response Plan 140 Programme 700 launched R/share US formulated 120 600…
Business Performance Enhancement Programme delivering results Sustainable improvements continue New operating model successfully introduced on 1 July 2014 Company-wide organisational redesign nearing completion Approximately 2 500…
Response Plan driving cash conservation focus Cash conservation protects balance sheet and enables growth Response Plan levers build on the rigorous work conducted as part of our Business Performance Enhancement Programme Cash…
Strong operational and financial performance, notwithstanding challenges Improved volumes, resilient margins and costs contained Group safety performance, excluding illnesses, improved to an RCR of 0,32 Solid group-wide operational…
Group profitability Strong group-wide performance supported by effective cost management FY15 FY14 % Profit from operations contribution (%) Mining 4 343 2 453 77 49% Exploration and Production (3 170) (5 980) 47 International…
Profit from operations Significant once-off items and year-end adjustments Macro environment Costs and volumes 60 000 Rand million 15% 46% 50 000 5% 46 549 45 818 32% 4% 40 000 FY15 30 000 normalised sales volumes up…
Cash fixed costs flat in nominal terms Business Performance Enhancement Programme and Response Plan reduce costs Costs and volumes Restructuring, Macro environment study and growth cost 50 000 Rand million 44 265 4,0% (5,0%)…
Mining and EPI Operating Business Units Decrease in Mining unit cost Profit / (loss) from operations Mining (Rm) FY15 FY14 % Normalised unit costs 2% below inflation Mining 4 343 2 453 77 Increase in labour productivity enabled by EPI…
Energy Strategic Business Unit Improved volumes and cost performance, margins under pressure Energy Profit from operations (Rm) FY15 FY14 % Secunda Synfuels and Natref increased Energy 22 526 31 423 28 production by 2% and 6%…
Chemicals Strategic Business Units Higher sales volumes and resilient margins Base Chemicals Profit from operations (Rm) FY15 FY14 % Normalised sales volumes increased by 2% Base Chemicals 10 208 6 742 51 Chemical basket prices down…
Business Performance Enhancement Programme Delivering ahead of expectations Cost trend from end FY16 to follow inflation Rand million Sustainable cost reduction Targeting an exit run-rate of at least R4,3bn at end FY16 2…
Low oil price Response Plan proactively launched in FY15 Cash conservation levers delivered a benefit of R8,9bn Targeted 30 month range (Rbn) Comprehensive 30-month Cash cost savings Response Plan actioned to deliver: R4bn R7bn:…
Balance sheet allows funding of growth Unlevered balance sheet and strong liquidity Cash generation and utilisation 80 Final dividend of R11,50 per share Rand billion Gearing (net debt:equity) 60 deleveraged to -2,8% Credit…
Capital portfolio reprioritised Capital spend forecast increases Capital expenditure 80 Forecast increased due to Rand billion 70 weakening exchange rate 65 65 60 60 Reduced sustenance capex 45 45 without compromising…
FY16 outlook Solid operational performance and cost reductions to continue South African liquid fuels sales volumes expected to be above 60 million barrels Average utilisation of ORYX GTL is expected to be above 87% even with…
REFOCUSING OUR EFFORTS David E Constable President and Chief Executive Officer Maintaining momentum
Refined near- to medium-term strategic agenda Refocused to respond to the volatile macroeconomic environment FOUNDATION SUSTAINABLE GROWTH Nurture and Grow Expand and Deliver GROW SHAREHOLDER VALUE SUSTAINABLY Deliver low-cost…
Maintaining momentum on our dual regional strategy Southern Africa advancement Secunda Growth Programme substantially complete Phase 1 of Wax Expansion Project reached beneficial operation in May 2015 Upstream Production Sharing…
Maintaining momentum on our dual regional strategy North America selective growth projects High density polyethylene (HDPE) joint venture on budget and on track for completion in 2016 Lake Charles Chemicals Project update Cumulative…
Protecting shareholder value Weathering a challenging environment Operations remain stable, safe and deliver at record levels Resilience of the chemicals, Southern African upstream and downstream refining portfolios supports business…
QUESTIONS AND ANSWERS David E Constable President and Chief Executive Officer Maintaining momentum
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