Sasol Ltd. (SSL)

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Sasol Limited (SSL)

F4Q and Yearend 2013 Results - Earnings Call - Transcript

September 9, 2013 09:00 AM ET

Executives

David Constable - Chief Executive Officer

Christine Ramon - Chief Financial Officer

Nolitha Fakude - Executive Director

Andre De Ruyter - Senior Group Executive

Giullean Strauss - Senior Group Executive

Bernard Klingenberg - Group Executive

Analysts

Presentation

Operator

Good afternoon, ladies and gentlemen. Thank you for joining us this afternoon for our year-end results presentation. I would also like to welcome those people joining us via teleconference.

Our panel this afternoon, on my left is Chief Executive Officer, David Constable, our Chief Financial Officer and Executive Director Christine Ramon, our Executive Director, Nolitha Fakude; Senior Group Executive, Andre De Ruyter; Senior Group Executive, Giullean Strauss and Group Executive, Bernard Klingenberg.

I'd also like to welcome those other members from our GEC sitting in the front row. Your safety and the safety of our employees and contractors is critical to us. So please take notice of the safety instructions.

Should we need to evacuate the venue, please leave from the two doors at the rear and Sasol safety Marshalls will meet you outside and will direct you at the steps to either exited number one security reception all through the emergency doors behind the bar which will take you out at Baker Street and Bolton Avenue. In any emergency, please do not use the lift, and also do not pause to pack your things, and please exit immediately.

As at all presentations I'd like to remind you about disclaimer and forward-looking statements which you can find on page two of your slide deck, and before I hand over to our CEO.

David Constable

Good day, thanks and good afternoon everyone. Thank you for joining us for Sasol’s audited yearend results presentation today. This past financial year, the group processed another outstanding all around performance against our safety operation and financial targets, while we acknowledge the tailwinds obviously of macroeconomic success in large part it's due to managing the factors within our control.

Our strong results are also testament to the resilience of our strategy where a volatile external environment is going heavily on economic growth, I'd like to acknowledge and thank my Sasol colleagues from around the world, who have again distinguished themselves with their commitment, passion and hard work and I thanks to their resolve as we continue to deliver high level of performance even through often uncertain times.

Now, let me as usual start with an overview of what you're going to hear today, first of all we'll highlight our solid full year earnings and then discuss how we are growing sustainably in South Africa and abroad. Next, I'll provide you with a brief overview of our business performance enhancement program, which is going to be driving cost optimization across the Group.

Christine will then go into more detail on the financial and operational performance of our businesses and I'll come back up to talk you through Sasol’s current project pipeline, the status there and wrap up this afternoon's session by summarizing our strong investment case. We'll then open it up for any questions.

Earlier this year Sasol celebrated 10th anniversary of our listing on the New York Stock Exchange, in 2003 Sasol’s ADR is listed at ZAR10.73 per share on the NYSE, decade later the share prices increased almost five fold to close at ZAR48.41 on this past Friday, over the same period our market capitalization has risen more than fourfold from ZAR7.7 billion to ZAR32.6 billion.

Now, throughout this timeframe we remained as consistent and strong performer with our attributable earnings trending favorably upward as you can see from the graph here on the screen. And despite a sharp dip in 2009, the start of the global recession we bounced back in 2010 and continued our upward trajectory to a new all time high in FY13.

It’s equally important to consider other indicators over this period which speak to our commitment to act responsibly, through our contributions we create value not only for our shareholders but also for all of our other stakeholders.

Looking at the broader contributions we're making, at the end of last year, we announced our ZAR800 million commitment to the Ikusasa public-private partnership. Today, we've already contributed ZAR135 million Govan Mbeki and Metsimaholo municipalities, these contribution served to improve local infrastructure upgrade education resource centers and including public libraries and enhance healthcare supports and recreational facilities.

Through targeted interventions, our global investment in socioeconomic developments was ZAR627 million around this past year of which close to ZAR600 million was invested here in South Africa. In addition we increased the level of investment in our Sasol people across a wide range of initiatives, spending more than ZAR837 million in FY 13 on skills development.

During one of our many environmental initiatives in April 2013 we launched the Water Sense Campaign with the Department of Water. (inaudible) water contribution project 2.1 million cubic meters of water savings through repair of leaks in 60,000 homes that's about half of municipalities' current water usage.

Next, we do remain the largest corporate tax payer in South Africa contributing ZAR30.8 billion in direct and taxes to the national [fiscal] this past financial year.

Importantly, and notwithstanding our international growth aspirations our South African CapEx in 2013 was ZAR19.8 billion which equates to 59% of our group's spend.

Finally, we continue to make great progress in our transformation activities in South Africa, achieving level 3 BBEE status earlier this month. Our unwavering focus at Sasol on equity ownership. Enterprise and socioeconomic development, employment equity skills development and preferential procurements are delivering exceptional results well beyond the targets we had initially set out for ourselves.

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