Sasol Integrated Report 2024 - Book - Page 54
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
DATA AND ASSURANCE / ADMINISTRATION
REMUNERATION REPORT
CHIEF FINANCIAL OFFICER’S STATEMENT continued
OUTLOOK
The focus for 2025 will be to embed the streamlined operating model, optimise profitability and work towards
deleveraging the balance sheet to net debt (excluding leases) of below US$4 billion. Capital allocation and
asset reviews will be also optimised, whereby underperforming value chains will be addressed, and corrective
actions taken to drive profitability.
With our streamlined business structure, the new operating model will
enhance our effectiveness and improve how we manage the business.
Ongoing commitment to continuous improvement will ensure that
we remain resilient and competitive in an ever-evolving global market.
The process to finalise and embed the operating model for the Group
is in progress with expected completion in H1 2025. Our businesses will
be managed as “Southern Africa Energy and Chemicals”, which effectively
includes the Southern Africa value chain, and “International Chemicals”,
which combines our American and Eurasian chemicals businesses.
Our segmental reporting format is under review and amendments will
be applied in 2025.
In our Chemicals Business, the slight increase in performance from our
international segments is encouraging, especially given the challenging
global economic climate. We will continue the reset of the International
Chemical Business, improving the overall contribution to the Group
going forward.
Sasol 2.0 transformation programme
2025 marks the final year of the Sasol 2.0 transformation programme
(Sasol 2.0). The objectives of Sasol 2.0 are to enable the business
to be more competitive, cash generative and able to deliver attractive
and sustainable returns even in a soft oil price environment. The EBITDA
contribution of Sasol 2.0 up to 2024 is R16 billion versus a target of
R15 billion. We aim to successfully conclude the programme in 2025
with additional EBITDA enhancements of R2 – 4 billion contingent on
macroeconomic prices remaining consistent with 2024. Our focus
remains to bolster the strength and maturity of initiatives and we are
confident that we will maintain momentum in achieving the targets.
Going forward, we will implement a continuous improvement mindset
to enable business transformation, emphasising sustained cost
management and ongoing margin improvement. This involves
embedding the principles of Sasol 2.0 into a culture of continuous
improvement, ensuring ongoing free cash flow delivery.
By consistently evaluating and reviewing our portfolio, we aim to
achieve robust returns from both businesses, allowing us to navigate
economic challenges and pave the way for sustained profitability.
EBITDA enhancement2
Mining
saleable production
Mozambique
gas production
Chemicals Africa
sales volumes
30 – 32 mt
0 – 5% higher
0 – 4% higher
Secunda Operations
production
Liquid fuels
sales volumes
Chemicals International1
sales volumes
7,0 – 7,2 mt
0 – 4% higher
In line with
prior year
R2 – 4bn
Working capital3
Conclusion
The 2024 financial year has been met with the
negative impacts of various macroeconomic and
operational factors. It is evident that the current
global economic landscape has become the new
normal and it is imperative that we adapt whilst
ensuring that our evolving customer, stakeholder
and regulators’ expectations are met.
As we navigate through financial year 2025,
our strategic initiatives are set to strengthen
our operational efficiency, ensure strict
cost and capital management, underscoring
our dedication to improving profitability.
The significant improvement in the second
half of 2024 reflects the can-do spirit of Team
Sasol and I have full confidence that we can step
up the performance going into the next
financial year.
We are grateful to all shareholders for their
continued confidence in Sasol and patience
as we navigate this challenging but essential
path towards improved financial performance.
We consider our shareholders’ support invaluable
as we work diligently to course-correct and
achieve a resilient, financially robust Sasol.
Lastly, I would like to express my gratitude for
the opportunity to have been part of this dynamic
organisation. I am pleased to hand over the baton
to Walt Bruns who succeeds me as Chief Financial
Officer and am confident that he is well positioned
to lead Team Sasol towards future success.
15,5 – 16,5%
PORTFOLIO-WIDE FOCUS ON MARGIN IMPROVEMENT
average
Capital Expenditure4
Hanré Rossouw
Chief Financial Officer
29 August 2024
Maintain and Transform:
R28 – 30bn
1
2
3
www
4
Additional Information for Analysts is available on our website www.sasol.com
SASOL INTEGRATED REPORT 2024
52
Includes Chemicals America and Chemicals Eurasia.
Baseline comparison to 2024 through optimisation of
cash fixed costs and gross margin aligned with 2025
Sasol 2.0 targets.
Working capital on a rolling 12-month average.
Forecast based on R17,75/US$ for 2025.
