SASOL Limited · JSE:SOL
SASOL — RMB Morgan Stanley Big Five Investor Conference 2010
24 slides from SASOL's conference presentation, Sep 16, 2010
Slide 1: What industries can South African companies be world class at?
What industries can South African companies be world class at? Sasol Limited 16 September 2010 RMB Morgan Stanley Big Five Investor Conference Chief executive: Pat Davies
Slide 2: Forward-looking statements
forward-looking statements In this document we 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, de
Slide 3: Overview
overview Introduction The case for growth Sasol’s focus areas 3
Slide 4: Innovation drives world-class industries
innovation drives world-class industries Department of Science & Technology’s 10 year innovation plan Shifting from a resource- to knowledge-based economy has the potential to create sustainable economic growth Science and technology can enable SA transformation towards a knowledge-based economy SA
Slide 5: Necessity is the mother of invention
“necessity is the mother of invention” Abundance of low-grade, stranded coal reserves in SA, but no liquid hydrocarbon resources Clear incentives to develop coal-based technology – Coal-fired power plants – Liquid fuels from coal Energy security and economic benefit – Beneficiation of natural resour
Slide 6: Sasol at a glance
sasol at a glance Sasol is an integrated energy and chemicals company The world’s largest producer of Turnover R122 bn (US$ synthetic fuels 16bn) Pioneer in gas-to-liquids (GTL) Market cap R183 bn (US$ and coal-to-liquids (CTL) 24bn) technology Listed on JSE (SOL) and 60 years’ experience in Fischer
Slide 7: Strong FY10 results delivered
strong FY10 results delivered Financial highlights Operational highlights Headline earnings per share Increase in group production up 5% to R26,57 volumes Earnings per share up 17% Reduction in group cash to R26,68 fixed costs Strong balance sheet Improved operating performance from offshore Full ye
Slide 8: Sasol converts coal and gas into liquid fuels and chemical products
sasol converts coal and gas into liquid fuels and chemical products Open market purchases Crude oil Gas & coal Fuel components Refining & E&P of blending production feedstock Syngas • Coal FT Technology Co-products Marketing • Gas (LT or HT) • Oil Chemical Chemical businesses feedstock Green energy
Slide 9: People & technology: competitive advantage and world-class track-record
people & technology: competitive advantage and world-class track-record over 60 years World’s only commercial CTL facility Unrivalled technology/operational lead (1,6bn boe produced) First to market with commercially-proven world-scale GTL facility Strong intellectual property portfolio (372 registe
Slide 10: Sasol's growth is centered on four key drivers
sasol’s growth is centered on four key drivers Grow upstream Focus on growing hydrocarbon resources business Variety of models (partnership, acquisition, etc.) Grow GTL & Accelerated GTL development CTL Focused CTL projects Feedstock advantage Grow chemicals Technology advantage Renewable energy (e.
Slide 11: Overview
overview Introduction The case for growth Sasol’s focus areas 11
Slide 12: As countries develop, demand for energy rises
as countries develop, demand for energy rises 20 18 South Korea 16 Barrels per capita per annum 14 OECD Oil Consumption 12 10 Taiwan 8 Malasia 6 Curve based on Asian experience Thailand 4 non-OECD 2 China India 0 100 10000 1000000 Gross Domestic Product (GDP) per Capita (GDP @ Purchase Power Parity)
Slide 13: Transportation fuels demand is dependent on a single source - oil
transportation fuels demand is dependent on a single source - oil Sources of energy; 100% = 10 878,5 million tons oil equivalent per annum Gas 23.6% Households & other Hydro 6.2% Nuclear 5.8% Electricity Coal 28.4% Industry Oil 36% Transportation Source: Energy Information Administration, BP Statist
Slide 14: Opportunity exists to convert gas and coal into transportation fuels
opportunity exists to convert gas and coal into transportation fuels Sources of energy; 100% = 10 878,5 million tons oil equivalent per annum Gas 23.6% Households & other Hydro 6.2% Nuclear 5.8% Electricity Coal 28.4% Industry Oil 36% Transportation Source: Energy Information Administration, BP Stat
Slide 15: Scope for growth supported by gas and coal reserve availability
scope for growth is supported by significant natural gas and coal reserve availability Reserves: 1000 million boe 1,200 1,000 800 600 400 200 0 oil natural gas coal 80% of world’s reserves concentrated in . . . Number of % of world % of world countries population GDP Oil 10 7% 5% Gas 12 15% 25% Coal
Slide 16: Price differential between crude oil and natural gas makes GTL compelling
price differential between crude oil and natural gas makes GTL a compelling opportunity Crude oil prices expressed as a multiple of natural gas prices 22 20 WTI crude oil as a multiple of henry hub gas 18 GTL 16 prices (mmBtu/bbl) 14 12 10 8 6 LNG 4 1985 1990 1995 2000 2005 2010 2015 Year Source: ?
Slide 17: Overview
overview Introduction The case for growth Sasol’s focus areas 17
Slide 18: Sasol offers a proven alternative solution to growing global energy demand
sasol offers a proven alternative solution to meeting growing, global energy demand In-country, win- win solution Global drive Abundant for cleaner hydrocarbon Transportation transportation reserves Sasol’s fuel security fuels Need for Resource + technology & operating experience = Job creation mone
Slide 19: Sasol focused on growing GTL
sasol focused on growing GTL Upstream asset GTL projects CTL projects portfolio South Africa Qatar China Mozambique Nigeria India Gabon Uzbekistan South Africa Nigeria Papua New Guinea Many other Australia opportunities 19
Slide 20: Delivering growth and robust returns: Oryx GTL
delivering growth and robust returns: oryx GTL full payback ~5 years from start up Qatar: 32 400 b/d nameplate capacity; 80-90% utilisation ~7% contribution to group earnings ~44% operating margin; R1bn FY10 profit ~5 year full payback period Significantly exceeds IRR hurdle rate Ultra-low sulphur d
Slide 21: Other GTL projects in advanced stages
other GTL projects in advanced stages Escravos GTL, Nigeria Currently in construction ~32 400 b/d 10% equity interest (partners are NNPC & Chevron) Associated gas feedstock that is currently flared Will produce diesel, naptha and LPG Uzbekistan GTL, Uzbekistan Currently in feasibility ~36 000 b/d JV
Slide 22: Sasol's investment case remains strong
sasol’s investment case remains strong Leading alternative In a world of disruptive Unique investment energy company change proposition 60 years of alternative The ‘new normal’ Strong existing energy experience business Volatile economic recovery Operating & continuously Competitive technology lead
Slide 23: Questions
SASOL > ~~ reaching new frontiers questions 23
Slide 24: Sasol's strategic agenda: group imperatives
Sasol’s strategic agenda Foundation Growth Definition of victory Accelerate GTL, focused Operations CTL growth excellence Develop and empower our people Grow related upstream business Functional excellence Continuously improve and Grow technological lead Grow stakeholder grow existing asset base val
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