Vedanta Resources Plc: Corporate vision . one vedanta . VEDANTA RESOURCES PLC ... Management team...

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  • Vedanta Resources Plc: Corporate Presentation

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Cautionary Statement and DisclaimerThe views expressed here may contain information derived from publicly

    available sources that have not been independently verified.

    No representation or warranty is made as to the accuracy, completeness,

    reasonableness or reliability of this information. Any forward looking

    information in this presentation including, without limitation, any tables,

    charts and/or graphs, has been prepared on the basis of a number of

    assumptions which may prove to be incorrect. This presentation should not

    be relied upon as a recommendation or forecast by Vedanta Resources plc

    and Vedanta Limited (formerly known as Sesa Sterlite Ltd.)and any of their

    subsidiaries. Past performance of Vedanta Resources plc and Vedanta

    Limited (formerly known as Sesa Sterlite Ltd.) and any of their subsidiaries

    cannot be relied upon as a guide to future performance.

    This presentation contains 'forward-looking statements' that is,

    statements related to future, not past, events. In this context, forward-

    looking statements often address our expected future business and financial

    performance, and often contain words such as 'expects,' 'anticipates,'

    'intends,' 'plans,' 'believes,' 'seeks,' or 'will.' Forwardlooking statements by

    their nature address matters that are, to different degrees, uncertain. For

    us, uncertainties arise from the behaviour of financial and metals markets

    including the London Metal Exchange, fluctuations in interest and or

    exchange rates and metal prices; from future integration of acquired

    businesses; and from numerous other matters of national, regional and

    global scale, including those of a environmental, climatic, natural, political,

    economic, business, competitive or regulatory nature. These uncertainties

    may cause our actual future results to be materially different that those

    expressed in our forward-looking statements. We do not undertake to

    update our forward-looking statements. We caution you that reliance on

    any forward-looking statement involves risk and uncertainties, and that,

    although we believe that the assumption on which our forward-looking

    statements are based are reasonable, any of those assumptions could prove

    to be inaccurate and, as a result, the forward-looking statement based on

    those assumptions could be materially incorrect.

    This presentation is not intended, and does not, constitute or form part of

    any offer, invitation or the solicitation of an offer to purchase, otherwise

    acquire, subscribe for, sell or otherwise dispose of, any securities in Vedanta

    Resources plc and Vedanta Limited (formerly known as Sesa Sterlite Ltd.)

    and any of their subsidiaries or undertakings or any other invitation or

    inducement to engage in investment activities, nor shall this presentation

    (or any part of it) nor the fact of its distribution form the basis of, or be

    relied on in connection with, any contract or investment decision.

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Konkola Copper

    Mines (KCM)

    62.9%

    Vedanta Resources Plc

    Zinc India(HZL)

    AustralianCopper Mines

    Cairn India

    79.4%

    Subsidiaries of Vedanta Ltd

    Sesa Iron Ore

    Sterlite Copper (Tuticorin)

    Power (2,400 MW Jharsuguda)

    Aluminium

    (Odisha aluminium and power assets)

    Divisions of Vedanta Limited

    Talwandi Sabo Power (1,980 MW)

    MALCO Power

    (100 MW)

    Skorpion & Lisheen -

    100%BMM -74%

    Zinc International

    51Bharat Aluminium (BALCO)

    Western Cluster

    (Liberia)

    Notes: Shareholding based on basic shares outstanding as on 31 March 2016

    Group Structure

    62.9%

    100%64.9%

    Vedanta Ltd

    59.9%

    79.4%

    Unlisted entitiesListed entities

    100% 100%100%51% 100%

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Management Team

    Executive Directors

    Management team

    Tarun JainDirector, Vedanta Ltd

    Dilip GolaniGroup Director, Management Assurance and Information Technology

    M SiddiqiGroup Director,

    Projects

    R Kishore KumarChief Executive Officer,Iron Ore Business

    Roma BalwaniPresident, Group Sustainability , CSR and Communications

    Deshnee NaidooChief Executive Officer Zinc

    International

    Anil AgarwalGroup Chairman

    Navin AgarwalExecutive Vice

    Chairman

    Tom AlbaneseChief Executive

    Officer

    Steven DinChief Executive Officer and Director, Konkola

    Copper Mines

    Abhijit PatiChief Executive

    Officer, Aluminium Business

    Sudhir MathurActing Chief Executive Officer, Cairn India Ltd

    Samir CairaeChief Executive Officer of Diversified Metals (India)

    Sunil DuggalChief Executive Officer,

    Hindustan Zinc

    P RamnathChief Executive Officer,

    Vedanta Limited-Copper Business

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Our Global Footprint

    Copper

    Our key operations include:

    Oil & Gas

    Zinc-Lead-Silver

    Captive thermal power plant

    Iron Ore

    Aluminium

    Power

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Vedanta: A Global Diversified Natural Resources Group

    46%

    24%

    5%

    8%

    14%

    3%

    Zinc Oil & Gas AluminiumPower Copper Iron Ore

    EBITDA Mix for FY2016

    EBITDA of $2.3bn, and margin of 28%1

    Portfolio of large, structurally low-cost, long-life Tier-I assets, that delivered strong free cash flow in FY2016

    Strong free cash flow of $1.7bn, driven by opex and capex optimization and working capital initiatives not requiring large capex

    Positively contributing to India and Africa

    Contribution of $3.2bn towards taxes and royalties in FY2016

    Direct and Indirect employment of c.70,000

    One of the largest employers in Zambia

    Community investment of $37mn benefiting 2.25mn people in India in FY2016

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Large, low cost and diversified asset baseR&R Life(years) Production

    EBITDA ($mn) Key highlights

    Oil & Gas 15+ 46.9 mmboe1

    570 Indias largest private-sector crude oil producer

    Strong FCF generation even at low oil prices with opex of $6.5/bbl

    Zinc India 25+Zn - 759kt

    2

    Ag - 14moz995

    Positioned on the 1st decile of the cost curve

    Rampura Agucha is the largest zinc-lead mine globally; significant production of silver from SK mine

    Zinc Intl. 20+ 226kt3

    68 Gamsberg is one of the worlds largest undeveloped zinc deposits

    Developing Gamsberg with a modular and flexible approach to maximise value

    Copper India NA 384kt 337 One of the worlds most efficient custom smelters, operating consistently above 90% utilisation rate

    Strongly positioned on the 1st quartile of the cost curve

    Copper Zambia NA 117kt4

    (18) One of the worlds highest grade copper mines

    Ramp-up at Konkola mines to deliver higher volumes

    Iron Ore 20+ 5.2dmt5

    73 Goa operation on 1st quartile of the cost curve

    Largest iron ore exporter in India pre-ban, significant ramp-up in FY2017

    Aluminium NA 923kt6

    107 Significant ramp up of capacities in FY 2017

    Integrated capacity with captive power

    Power NA 12,121MU7

    196 9,000 MW fully operational, of which 3,600 MW commercial power

    Poised to benefit from structural power shortage in India

    1. Vedanta Ltd working interest 2. Refined zinc total production (does not include 145kt refined lead) 3. Refined zinc from Skorpion (82kt) and mined metal from BMM and

    Lisheen (63kt and 81kt, respectively) 4. Integrated production 5. Production of saleable ore 6. Total aluminum production (does not include Lanjigarh 971kt of Alumina) 7. Total

    power sales

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Benefits of a Diversified Portfolio

    40

    50

    60

    70

    80

    90

    100

    110

    120

    130

    Jun-15 Jul-15 Sep-15 Nov-15 Dec-15 Feb-16 Apr-16 May-16 Jul-16

    Com

    mod

    ity p

    ric

    es

    (15 J

    une 2

    015 =

    100)

    Aluminium Zinc Copper

    Iron Ore 62% Silver Brent Oil

    Vedantas diversified portfolio significantly reduces volatility

    Source: Company filings, Bloomberg1. Vedanta Commodity Basket is a weighted average of commodity prices, weights are based on actual FY2016 revenue mix. Copper India revenues based on realized Tc/Rcs.

  • one vision . one vedanta .VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Continued Focus on Strong FCF Generation Through

    Disciplined Ramp-upPresented at FY2016 results

    FY2015 FY2016 FY2017eOil & Gas Zinc India Zinc Intl Copper Iron Ore Power Aluminium

    Strong free cash flows from:

    Ramp up of capacities

    at Vedanta Ltds

    Aluminium, Power and

    Iron ore businesses

    These are well invested

    assets requiring

    marginal incremental

    capex

    Continued strong cash flows

    from HZL and Cairn and cost

    optimization across the

    businesses

    $3.