Wrap Text
Sasol Chief Financial Officer Update
Sasol Limited
(Incorporated in the Republic of South Africa)
(Registration number 1979/003231/06)
Sasol Ordinary Share codes: JSE : SOL NYSE : SSL
Sasol Ordinary ISIN codes: ZAE000006896 US8038663006
Sasol BEE Ordinary Share code: JSE : SOLBE1
Sasol BEE Ordinary ISIN code: ZAE000151817
(“Sasol”)
25 November 2013
SASOL CHIEF FINANCIAL OFFICER UPDATE
Salient features for the period
- Solid performance from Sasol Synfuels – largest shutdown
in history successfully completed
- ORYX GTL continues to produce above design capacity
- US projects progress well on track
- Business performance enhancement programme on target –
group executive committee and related management
structures announced
- Divestiture from Iran completed
- Normalised cash fixed cost above indicative South African
PPI
Dear stakeholder
In the first three months of the 2014 financial year*, we
have delivered solid financial results, despite the ongoing
global economic uncertainty and industrial action in South
Africa. Sasol Synfuels delivered a strong operational
performance, despite a planned total and phase shutdown of
the east factory, which took place in September 2013. Our
ORYX gas-to-liquids (GTL) operations continue to exceed our
expectations and the utilisation rate for the period
remained above 100% during the first three months of 2014.
Our other foundation businesses continue to perform in line
with 2014 targets. The disposal of our investment in Arya
Sasol Polymer Company (ASPC) became effective on 16 August
2013 and Sasol no longer has any investments in Iran.
The group benefited from a weaker rand/US dollar exchange
rate as well as improved product prices. The average Brent
crude oil price for the three months improved slightly and
chemical prices were also higher compared to the prior year
comparable period. The demand in the chemicals market
continues to remain soft.
We continue to focus on those factors within our control
including cost containment, operational efficiencies and
margin improvement. Our current cost inflation is expected
to be above the indicative South African producers’ price
index trends for the 2014 financial year. We are making real
progress on our business performance enhancement programme,
as evidenced by the recent announcement we made regarding
our revised group executive committee (GEC) and related
management structures. The announcement of these structures
is an essential step towards transitioning to our new
operating model to ensure that Sasol is fit for the future.
More detail on the business case, progress and
implementation costs of the project will be provided at our
interim results announcement in March 2014.
The front-end engineering and design (FEED) phase of our US
mega-projects and specifically our ethane cracker are
progressing according to plan. During the period, we have
made sufficient progress on the FEED phase of the Uzbekistan
GTL project with all technical activities having been
completed.
We were saddened by the news of three fatalities at our
operations during the month of October. One fatality related
to an employee at our Sasol Mining operations, while the
others related to service providers. We convey our deepest
sympathy to their family, friends and colleagues. Safety
remains a primary focus across our business.
We remain confident that, based on a solid business
performance of the group and favourable macroeconomics, we
will deliver strong earnings growth for the 2014 financial
year compared to the reported attributable earnings of R26,3
billion in the 2013 financial year.
Best regards,
Paul Victor
25 November 2013
Johannesburg
*This update is based on information for the three months
ended 30 September 2013, however, where practical,
information to 31 October 2013 has been included to indicate
business performance.
1. Macroeconomics remain volatile
Change
Oct Sept Sept in % 2013
2013 2012 2012 Sept
YTD YTD YTD YTD
Macroeconomic indicators
Average rand/US$ 9,98 10,00 8,26 (21%)
Brent crude oil (US$/b) 110,04 110,37 109,64 1%
Henry Hub gas price
(US$/mmbtu) 3,52 3,50 2,88 22%
Product prices
SA fuel price (US$/b) 124 125 129 (3%)
Ethylene (US$/ton) 1 624 1 609 1 468 10%
Propylene (US$/ton) 1 466 1 450 1 317 10%
Polymers basket (US$/ton) 1 349 1 337 1 195 12%
Solvents basket (US$/ton) 1 192 1 182 1 144 3%
Prices reflect international commodities or baskets of
commodities and are not necessarily Sasol specific.
Sources: RSA Department of Energy, ICIS-LOR, Reuters, Platts,
International Energy Agency
Global economic conditions improved modestly during the
first quarter of our current financial year. US economic
growth accelerated from the preceding quarter, even as
the budget funding and debt ceiling disagreements
gathered momentum. Indicators out of the euro zone
suggest that the underlying growth momentum was
sustained, while economic growth in the United Kingdom
generally surprised to the upside. In Asia, Chinese
economic growth remained relatively robust during the
quarter. In contrast, South Africa’s economic performance
was negatively impacted by industrial action in parts of
the manufacturing and mining industries.
Global leading indicators suggest that the gradual
economic recovery is likely to be sustained over the next
three to six months, even as the risks to the outlook
remain tilted to the downside. In the US, the risk of
another budget and debt-ceiling standoff in early 2014
poses a risk to the country’s growth prospects, while the
timing and pace of the start to a gradual withdrawal of
quantitative easing and its potential impact on capital
flows to emerging markets remains unclear. This is of
particular concern for South Africa given its current
relatively large current account financing need. It is
expected that Europe’s economic upturn will continue to
improve at a slow and uneven pace. China’s underlying
growth momentum appears to be slowing slightly, but it is
believed that full calendar year growth of about 7,5%
will be achieved.
Given the generally uncertain global environment, we
maintain our view that commodity and exchange rate
volatility is likely to persist in the coming months.
Across our operations, we remain focused on managing all
factors within our control which include ensuring solid
and reliable operational performance, production planning
and optimisation, margin improvement, cost reduction, as
well as effective working capital management.
2. Solid operational performance
Oct Sept Sept Change
2013 2013 2012 in %
Sept
YTD YTD YTD YTD
Total production
Sasol Mining (mt) 13,2 9,7 9,6 1%
Sasol Gas (MGJ) 58,0 42,7 41,8 2%
Sasol Synfuels (kt) 2 374 1 704 1 785 (5%)
Sasol Synfuels
(kt)(normalised for full
shutdown) 2 489 1 819 1 785 2%
Sasol Oil (mil m3 ) 2 558 1 885 2 034 (7%)
Total product yield (%) 97,1 97,4 97,8 (0,4%)
ORYX GTL* (mbbl) 1,952 1,481 1,504 (2%)
Sasol O&S (kt) 729,5 530,2 471,9 12%
Sasol Petroleum
International group
(excluding Canada) (mboe)* 6,8 4,9 4,6 7%
Canada shale gas* (bscf) 6,7 4,9 5,9 (17%)
* Sasol’s share of production
Sasol Mining’s year-to-date production for the three
months to 30 September 2013 was 9,7 million tons (mt), or
1% higher than the prior year comparable period. Sasol
Mining’s costs remain under pressure mainly due to
increasing mining costs (mainly maintenance and labour
cost). Lower export coal prices continue to affect the
business negatively. Export coal sales increased by 13%
relative to the comparable period.
Sasol Synfuels’ year-to-date production for the three
months to 30 September 2013 was 1,7 mt. This represents a
5% decrease (normalised for the total shutdown up 2%)
compared to the prior year comparable period. The lower
volumes are as a result of the east factory total and
phase shutdown which took place in September 2013,
compared to a phase shutdown in the prior comparable
period. This was the largest ever shutdown at Sasol
Synfuels. The total shutdown was planned for 15 days and
the phase shutdown for 20 days. The shutdown was
completed successfully and consisted of 155 822
activities undertaken with an additional 36 000 people on
site. Sasol Synfuels’ year-to-date cash cost per unit is
above the indicative South African producers’ price
index, mainly due to electricity and feedstock cost
increases, the latter being internal to the group.
Sasol Oil’s year-to-date production volumes were 7% lower
than the prior period comparable volumes. This was the
result of Sasol Oil’s Natref refinery operating at lower
crude rates, in an attempt to reduce the high ULP 93
stock levels experienced at the end of 2013. Sales
volumes decreased by 3% compared to the prior year
comparable period mainly due to lower diesel supplies
resulting from the lower throughput at Natref. This
decrease was partially offset by higher sales into the
aviation market as a result of securing additional
airline contracts. Product conversion yields are within
management’s expectations.
Our ORYX gas-to-liquids (GTL) joint venture, in Qatar,
achieved 1,5 million barrels (mbbl) (Sasol’s 49% share)
cumulative production over the three month period to
30 September 2013. During this period, the plant operated
at an average of 101% of design capacity, taking into
account maintenance activities at our gas feedstock
supplier. The plant is expected to operate at an average
utilisation rate of about 90% for the current financial
year.
The performance of our Sasol Olefins & Surfactants’
(Sasol O&S) business for the three month period continues
to highlight the contrasting supply and market conditions
that prevail between our US and European operations. Our
US operations continued to benefit from low US ethane
prices, while our European based businesses remained
under pressure as a result of reduced volumes and lower
margins. Following further optimisation of our product
lines, the co-monomers product portfolio has been
transferred into Sasol O&S from Sasol Solvents, effective
1 July 2013. With the co-monomers results now included,
total production and sales volumes for the three months
to 30 September 2013 were 12% and 22% higher,
respectively, compared to the prior year comparable
period. Total gross margin for the Sasol O&S business
also exceeded the 2013 comparable level, on the back of
improved unit margins in the US. This performance
compensated for weaker sales volumes achieved,
specifically in Europe. Start-up of the 100 000 tons per
annum ethylene tetramerisation unit, at the Lake Charles,
Louisiana site in the US, remains on schedule and is
currently being commissioned. The project is on budget
and schedule.
Sasol Solvents has recorded a pleasing result this
quarter due to improved margins, higher sales volumes as
well as benefits realised from the implementation of a
turnaround plan in 2013. The rand weakness has further
supported the solvents business and negated the effect of
losses incurred in our German business. The restructuring
of our German businesses to improve the performance of
Sasol Solvents Germany is underway.
Our South African polymers business is still experiencing
margin pressure due to higher than anticipated feedstock
prices, and lower yields. We anticipate the operating
loss for the full 2014 financial year to be around R800
million (2013 - R1 785 million loss). Average sales
prices have, however, improved on the back of increased
US dollar based prices and a weaker exchange rate.
Production and sales volumes were 2% and 1% higher,
respectively, compared to the prior year comparable
period. Our projects identified to improve production
performance remain on track. The Ethylene Purification
Unit (EPU5) project, which increases ethylene available
for our polyethylene plants by approximately 48 kilotons
per annum, successfully achieved beneficial operation on
18 October 2013. The C3 stabilisation project will
achieve beneficial operation during the middle of the
2014 calendar year.
In our other chemical businesses, the gross margin,
including hard wax, of our Sasol Wax business for the
three months ended 30 September 2013 was 24% higher than
the prior year comparable period, despite 1% lower sales
volumes. This increase was mainly driven by the further
weakening of the rand against the US dollar and euro,
supported by continuous business and efficiency
improvements. Sasol Nitro experienced good growth in
production and sales volumes during the first three
months of the financial year. However, market conditions
remain challenging mainly due to the margin squeeze in
our fertiliser business as a result of the lower urea–
ammonia differential prices. The explosives business is
running well and market conditions are starting to
improve following the recent industrial action in the
mining industry.
In order to ensure long-term security of gas feedstock
supply, Sasol Petroleum International (SPI) is actively
managing a significant acreage position in the southern
part of Mozambique, which includes exploration,
appraisal, development and production.
In anticipation of the growing market in Mozambique, as
well as increasing demand in South Africa, SPI and its
partners have continuously increased the capacity of the
Central Processing Facility (CPF) and the pipeline to
match the growing demand for gas. Currently, we are
progressing two major projects to align with market
demand following the expansion of the CPF to 183 million
gigajoules per annum (MGJ/a):
- Sasol Gas Holdings, together with its partners, will
be increasing the capacity of the current pipeline
from a total of 170 MGJ/a to 188 MGJ/a through the
addition of a 26 inch loop line at a cost of R1,98
billion. Beneficial operation is expected during the
middle of the 2014 calendar year.
- In 2013, we reached a final investment decision (FID)
for a low pressure compression project at the CPF to
compensate for the depletion of reservoir pressure in
the fields as a result of production. The project is
currently in the engineering, procurement, and
construction (EPC) phase. Construction commenced
during the first half of the 2014 financial year, with
beneficial operation scheduled for the first half of
the 2015 calendar year at an estimated total end of
job cost of US$135 million.
We have continued with the development of our Production
Sharing Agreement (PSA) licence, which will supplement
current production from the Petroleum Production
Agreement (PPA) licence area. In 2013, we declared
commerciality on four oil and gas reservoirs including
the Inhassoro light oil prospect. We are on track to
submit the Field Development Plan (FDP) by February 2015
in accordance with applicable regulations.
Although gas prices have improved compared to the prior
year comparable period, the profitability of our Canadian
shale gas assets (Farrell Creek and Cypress A) continue
to remain under pressure resulting from these low gas
prices. We anticipate a continuation of the current loss
position for the full 2014 financial year. At 30
September 2013, our share of the capital expenditure on
the Canadian shale gas assets amounted to R1 280 million
(CAD133 million) for the three month period. At that
date, there were a total of 104 wells on stream in
Farrell Creek and six wells on stream in Cypress A. On
8 November 2013, our partner, Talisman, announced their
intention to dispose of their 50% share of the Montney
Basin shale gas assets. We are evaluating the impact
thereof on our Canadian shale gas assets.
Through Sasol New Energy (SNE), we continue to advance
the development of our 49% share of the US$246 million,
140 megawatt gas-fired power generation plant in
Mozambique, in partnership with the country's state-owned
power utility Electricidade de Moçambique (EDM). EDM will
be the sole off-taker of the electricity under a long-
term power purchase agreement. Beneficial operation is
expected during the first half of the 2014 calendar year.
Located at Ressano Garcia, this will be the first large
scale gas based industrial project in Mozambique designed
for long-term power supply.
3. Financial performance
Weaker rand increases inflationary cost pressures
A 21% weaker average rand/US dollar exchange rate (R8,26/US$
at 30 September 2012) negatively impacted cash fixed costs for
the three months ended 30 September 2013. Cash fixed costs,
excluding once-off items, growth costs and the impact of
exchange rates, reflect continued inflationary pressure,
resulting primarily from increased labour costs. Normalised
cash fixed costs are trending slightly above the indicative
South African producers’ price index (PPI).
Strong cash generation continues to fund growth
Free cash flow for the three months to 30 September 2013 is
23% lower as compared to the prior year comparable period, due
to higher capital expenditure. We continue to maintain a
strong cash position, underpinned by a strong balance sheet,
enabling us to successfully sustain our current operations and
fund our growth aspirations, while still delivering attractive
returns to our shareholders.
Business performance enhancement programme progressing
We continue to make steady progress on our business
performance enhancement programme. On 1 November 2013, we
announced that, while detailed design work on Sasol´s new
operating model continues, the Sasol board approved a new
group executive committee (GEC) structure to align the group’s
top management with our new operating platform. The
organisation will be defined by value chain, into four
distinct groupings:
- Operating business units, which comprise our mining and
upstream oil and gas activities;
- Regional operating hubs, which include our operations in
Southern Africa, North America and Eurasia;
- Strategic business units, which focus on our commercial and
enhanced customer interfaces within the energy and chemicals
arenas; and
- Group functions, which will deliver fit-for-purpose business
support services and solutions.
The new GEC structure will not impact the segmental reporting
until 1 July 2014. Current financial reporting will therefore
continue for our 2014 financial year.
Our business performance enhancement programme remains on
track. Further details on the savings target, the sources of
these savings, as well as the cost of implementation, will be
provided at our interim results announcement in March 2014.
4. Projects update
US integrated ethane cracker complex and GTL complex
We are executing the front-end engineering and design (FEED)
phases of a world-scale ethane cracker and GTL facility to be
located in Westlake, Louisiana. A series of engineering and
technology providers have been appointed to support the ethane
cracker project. Fluor Corporation is the main FEED contractor
for the ethane cracker. Individual engineering services
agreements for the development of basic engineering packages,
as well as for the various technologies, have also been
concluded with a number of contractors. Worley Parsons Limited
has been contracted to support Sasol’s own project execution
team as part of an Integrated Project Management Team. We
expect the FID for the ethane cracker to be taken during the
middle of the 2014 calendar year, with beneficial operation to
be achieved during the 2017 calendar year. We still expect to
take FID for the US GTL 18 to 24 months after FID of the
ethane cracker.
Uzbekistan GTL
Our Uzbekistan GTL FEED activities are progressing well and
are expected to be completed at the end of the 2013 calendar
year. In June 2013, the Sasol board approved a decrease in
Sasol’s shareholding in the Uzbekistan GTL project from 44,5%
to 25,5% at the end of the FEED phase. Different shareholding
options are currently being evaluated and progress on this, as
well as the project financing, will be communicated in due
course.
Escravos GTL
In Nigeria, the Escravos GTL commissioning and start-up
activities are progressing, however, a little slower than
expected. We have successfully started up all the main utility
plants and systems, with the larger processing units expected
to start up in the first half of the 2014 calendar year.
Beneficial operation is expected to be completed during the
first half of the 2014 calendar year.
Mining replacement programme
The development of the Impumelelo and Shondoni Collieries,
which are part of Sasol Mining’s R14 billion mine replacement
projects, remain on track. It is anticipated that the projects
will be completed within budget and on schedule, reaching
beneficial operation during the second half of the 2014 and
2015 calendar years, respectively.
FT wax expansion project
Construction on the FT wax expansion facility in Sasolburg,
South Africa continues to progress. During September 2013, as
per the current schedule, an important milestone of Phase 1 of
the project was achieved with the catalyst plant being
commissioned. The total project cost of Phases 1 and 2 is
estimated at R11,9 billion. There are some schedule risks to
Phase 1, which could increase the costs by 1% to 2% above the
approved amended budget. Phase 2 of the project could be
impacted by this potential delay. Increases in the cost of
labour and lower productivity commitments by construction
contractors are putting the Phase 2 costs under pressure. A
number of actions are underway in order to firm up the costs
and manage the schedule risks of the project.
Sasol Synfuels projects
The Sasol Synfuels growth programme is on track and nearing
completion. The beneficial operation of the entire programme
is expected to be reached in the second half of the 2014
calendar year. The installation of the second set of gas-
heated heat exchange reformers will mark the completion of the
growth programme.
The complex brownfields volatile organic compound (VOC)
abatement project, along with the replacement of tar tanks and
separators and the coal tar filtration (CTF) east projects are
under schedule and cost pressures.
Clean Fuels 2 update
Our estimates on the capital expenditure to comply with the
core specifications, octane and volume recovery, of Clean
Fuels 2 (CF2) regulations, is approximately R11,7 billion,
attributable to Sasol Synfuels and our share in the Natref
joint venture. Despite the South African Finance Minister’s
budget announcement on 27 February 2013, which indicated that
support mechanisms will be introduced to assist the local
refineries with the introduction of environmentally friendly
fuels, there have been no further details of a capital
recovery mechanism by the Department of Energy (DOE) and
accordingly, there is a possibility that beneficial operation
will be delayed within the oil industry. We continue to engage
with the DOE.
5. Update on strategic issues
Credit rating
Our corporate credit ratings remain unchanged from our
September 2013 results announcement. Our foreign currency
credit rating by Standard & Poor’s (S&P) is BBB/Negative/A-2,
and S&P’s local currency rating for the sovereign (South
Africa) is A-/Negative/A-2. Our foreign currency credit rating
published by Moody's Investors Service is Baa1/stable/P-2, and
our national scale issuer rating is Aa3.za/P-1.za.
The credit ratings reflect our local and international
activities, diversified along the integrated value chain, as
well as our current strong financial risk profile and prudent
financial policies.
Gearing
Our balance sheet still reflects an under-geared position. The
low gearing is supported by continued healthy cash flow
generation, particularly from our foundation businesses. This
low level of gearing is expected to be maintained in the short
term, but is likely to return to within our targeted gearing
range of 20% to 40% in the medium term, taking into account
our capital investment programme as well as our progressive
dividend policy.
Polymers competition hearing
As reported previously, the South African Competition
Commission (the Commission) alleged that Sasol Chemical
Industries Limited charged excessive prices for propylene and
polypropylene in the South African market from 2004 to 2007.
We continue to dispute the Commission’s allegations. In 2010,
the matter was referred by the Commission to the South African
Competition Tribunal (the Tribunal). The trial was heard
before the Tribunal during 13 May 2013 through to 7 June 2013
and closing arguments were presented on 14 and 15 October
2013. We await the outcome of the hearing.
Divestiture from Iran
The disposal of our investment in Arya Sasol Polymer Company
(ASPC) became effective on 16 August 2013. An amount of US$47
million is still outstanding from the purchaser. It is
expected that the loss on the final disposal, recognised in
the 2014 financial year, will be less than US$100 million, as
previously communicated.
6. Guidance for the full year
The macroeconomic conditions continue to be volatile,
impacting our assumptions in respect of a stable crude oil
price in the near term, slightly improved natural gas prices
and volatile product prices, stronger refining margins as well
as the weaker rand/US dollar exchange rate. The rand/US dollar
exchange rate remains one of the biggest external factors
impacting our profitability. We continue to focus on factors
within our control: volume growth, margin improvement and cost
reduction.
We expect an overall solid production performance for the 2014
financial year with our production guidance as follows:
- Sasol Synfuels’ volumes will be between 7,3 to 7,5 million
tons for the full year;
- The full year average utilisation rate at ORYX GTL in Qatar
is expected to be about 90% of nameplate capacity; and
- Our shale gas venture in Canada will show marginally
increased production compared to the prior year due to new
wells coming on stream. At present, we are optimising
drilling activities, as a ramp-up remains dependent on
sustained natural gas price increases.
We remain on track to deliver on our expectations for improved
operational performance. As costs are incurred to improve
plant stability and the weaker rand continues to exert
pressure on our South African businesses, we expect that our
normalised fixed costs will increase above the indicative
South African PPI inflation. Cost reduction is a specific
target within our short-term incentive scheme and,
accordingly, management continues to focus on controllable
cost elements.
An update on earnings guidance will be provided once we have a
reasonable degree of certainty on the interim results for the
2014 financial year, taking into account any adjustments
arising from our half-year reporting closure process, as well
as remeasurement effects.
The forecast financial information appearing in this update,
including the letter addressed to stakeholders from Paul
Victor, is the responsibility of the directors and has not
been reviewed or reported on by Sasol’s external auditors. We
will release Sasol’s half-year results on Monday, 10 March
2014.
7. Other matters
New accounting standards
Sasol has adopted IFRS 10, Consolidated Financial Statements
(IFRS 10), and IFRS 11, Joint Arrangements (IFRS 11), on 1
July 2013. Under IFRS 11, investments in joint arrangements
are classified either as joint operations or joint ventures,
depending on the contractual rights and obligations of each
investor in addition to the legal form of the joint
arrangement.
The adoption of IFRS 10 and IFRS 11 had the largest impact on
the following joint arrangements:
Sasol’s Previous Revised
interest classification classification
(%)
ORYX GTL Limited 49 Proportionately Equity
consolidated accounted
Sasol-Huntsman GmbH 50 Proportionately Equity
& co KG consolidated accounted
National Petroleum 64 Fully Proportionately
Refiners of South consolidated consolidated
Africa (Pty) Ltd
As these standards have been applied with retrospective effect
from the date of acquisition or formation of the joint
arrangement, Sasol will restate the comparative results in the
statement of financial position, income statement, statement
of comprehensive income, statement of changes in equity and
the cash flow statement as well as the relevant notes to the
financial statements when we release our interim results for
the six months ending 31 December 2013. Our comparative
earnings per share will not be affected as a result of these
restatements.
8. Other events 2014
10 March Half-year 2014 financial results release
10 March Dividend declaration
6 June CFO letter
8 September Full-year 2014 financial results release
8 September Dividend declaration
21 November Sasol Limited Annual General Meeting
24 November CFO letter
9. Investor Relations contacts
Please feel free to contact us as follows:
investor.relations@sasol.com
+27 11 441 3113
The Investor Relations contact:
Sam Barnfather General Manager: Investor Relations Operations
Sponsor: Deutsche Securities (SA) Proprietary Limited
Forward-looking statements:
Sasol may, in this document, 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,
developments and business strategies. Examples of such forward-looking
statements include, but are not limited to, statements regarding
exchange rate fluctuations, volume growth, increases in market share,
total shareholder return and cost reductions. Words such as “believe”,
“anticipate”, “expect”, “intend”, “seek”, “will”, “plan”, “could”,
“may”, “endeavour” and “project” and similar expressions are intended to
identify such forward-looking statements, but are not the exclusive
means of identifying such statements. By their very nature, forward-
looking statements involve inherent risks and uncertainties, both
general and specific, and there are risks that the predictions,
forecasts, projections and other forward-looking statements will not be
achieved. If one or more of these risks materialise, or should
underlying assumptions prove incorrect, our actual results may differ
materially from those anticipated. You should understand that a number
of important factors could cause actual results to differ materially
from the plans, objectives, expectations, estimates and intentions
expressed in such forward-looking statements. These factors are
discussed more fully in our most recent annual report under the
Securities Exchange Act of 1934 on Form 20-F filed on 9 October 2013 and
in other filings with the United States Securities and Exchange
Commission. The list of factors discussed therein is not exhaustive;
when relying on forward-looking statements to make investment decisions,
you should carefully consider both these factors and other uncertainties
and events. Forward-looking statements apply only as of the date on
which they are made, and we do not undertake any obligation to update or
revise any of them, whether as a result of new information, future
events or otherwise.
Please note: A billion is defined as one thousand million. All references to
years refer to the financial year ended 30 June. Any reference to a calendar
year is prefaced by the word “calendar”.
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