Vedanta Resources Plc Corporate Zinc Ltd. ... VEDANTA RESOURCES PLC –CORPORATE PRESENTATION...

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Transcript of Vedanta Resources Plc Corporate Zinc Ltd. ... VEDANTA RESOURCES PLC –CORPORATE PRESENTATION...

  • Vedanta Resources Plc

    Corporate Presentation

    September 2015

  • Cautionary Statement and Disclaimer

    The 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 ("Vedanta"). Past performance of Vedanta 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.

    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 or any of its subsidiary 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.

    2VEDANTA RESOURCES PLC CORPORATE PRESENTATION

  • Management Team

    VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Management team

    Tarun JainDirector,

    Vedanta Ltd

    DD JalanChief Financial

    Officer

    Dilip GolaniGroup Director,

    Management

    Assurance and

    Information

    Technology

    M SiddiqiGroup Director,

    Projects

    Roma BalwaniPresident, Group

    Sustainability ,

    CSR and

    Communications

    Rajesh

    PadmanabhanPresident and

    Group Chief

    Human Resources

    Officer

    Executive Directors

    Anil

    AgarwalGroup Chairman

    Navin

    AgarwalExecutive Vice

    Chairman

    Tom

    AlbaneseChief Executive

    Officer

    Mukesh BhavnaniGroup Legal Counsel

    and Chief

    Compliance Officer

    Akhilesh JoshiPresident,

    Global Zinc

    Business

    R Kishore

    KumarChief Executive

    Officer,

    Iron Ore Business

    Steven DinChief Executive

    Officer and

    Director, Konkola

    Copper Mines

    Abhijit PatiChief Executive

    Officer,

    Aluminium

    Business

    Mayank AsharManaging Director

    and Chief

    Executive Officer,

    Cairn India Ltd

    3

    Sunil DuggalChief Executive

    Officer,

    Hindustan Zinc Ltd

  • Our History

    VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    1979

    Sterlite Cables Ltd. acquires ShamsherSterling Corporation and becomes SterliteIndustries Ltd.

    1986

    SterliteIndustries Ltd. holds an initial public offering

    1988

    Sterlite Industries Ltd. commissions first privately developed copper smelter in India

    1997

    Sterlite Industries Ltd. acquires Copper Mines of Tasmania and Thalanga Copper Mines

    1999

    SterliteIndustries Ltd. acquires a 51% stake in BALCO

    2001

    Sterlite Industries Ltd. acquires a 26% stake in Hindustan Zinc Ltd. and a further 20% interest through an open market offer

    2002

    Vedanta Resources becomes the first Indian company to be listed on the London Stock Exchange

    2003

    Vedanta Resources acquires a 51% stake in KonkolaCopper Mines in Zambia

    2004

    Vedanta Resources acquires a 51% controlling stake in Sesa Goa Ltd.

    2007

    Vedanta Resources acquires Anglo Americans portfolio of zinc assets

    2010

    Vedanta Resources acquires a 58.5% controlling stake in Cairn India

    2011

    Merger of SterliteIndustries Ltd. and Sesa Goa to create Sesa Sterlite Ltd.

    2013

    Anil Agarwal acquires ShamsherSterling Corporation

    2015

    Sesa Sterlite Ltd. changed its name to Vedanta Ltd.

    Vedanta Resources Plc announced the merger of its subsidiaries Vedanta Ltd and Cairn India Ltd.

    4

  • Strategic Framework

    5

    Core Purpose Strategy PrioritiesGreater Value for

    Shareholders

    VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    Vedanta is a global diversified natural resources company with low cost operations, a world class portfolio of assets and a

    premium listing on the London Stock Exchange

    To deliver growth, long-term

    value and sustainable

    development through a

    diversified portfolio of large,

    long-life, low-cost assets.

    Production growth and

    operational excellence, with

    a focus on returns

    Reduce gearing and improve

    free cash flow

    Continue to add reserves and

    resources in existing

    portfolio of assets to drive

    long-term value

    Simplify Group structure

    through consolidation

    Protect and preserve our

    licence to operate

    To be a world-class,

    diversified resources

    company, providing superior

    returns to shareholders with

    high-quality assets, low-cost

    operations and sustainable

    development.

  • Group Structure

    Konkola

    Copper

    Mines (KCM)

    Vedanta

    Resources Plc

    Zinc India

    (HZL)

    Australian

    Copper Mines

    Vedanta Ltd

    Cairn India

    Sesa Goa Iron Ore

    Sterlite Copper

    Power

    Aluminium

    Divisions of Vedanta Ltd

    Talwandi

    Sabo

    Power

    (1,980 MW)

    MALCO

    Power

    (100 MW)

    Skorpion &

    Lisheen -100%

    BMM -74%

    Bharat

    Aluminium

    (BALCO)

    Western Cluster

    (Liberia)

    Note: Shareholding based on basic shares outstanding as of 30 June 2015.

    VEDANTA RESOURCES PLC CORPORATE PRESENTATION 6

    79.4% 62.9%

    51% 100%64.9%59.9%

    option to increase

    stake to 94.4%

    Subsidiaries of Vedanta Ltd

    100% 100% 100%100%

    option to increase

    stake to 100%

    On 14 June 2015, Vedanta Resources plc announced a merger between Vedanta Limited and Cairn India Limited as part of the Groups structure simplification process. This above structure reflects group structure before the merger. The merger is expected to close in the first quarter of 2016 and post the merger Vedanta Resources plc will own a 50.1% stake in Vedanta Limited. For further details on this please refer to our website www.vedantaresources.com

    http://www.vedantaresources.com/

  • Global Footprint

    VEDANTA RESOURCES PLC CORPORATE PRESENTATION

    23. Lisheen mine, Ireland

    24. Mt Lyell mine, Australia

    23

    25. Iron Ore project, Liberia

    26. Konkola and Nchanga copper mines & Nchanga smelter, Zambia

    27. Konkola and Nchanga copper mines & Nchanga smelter, Zambia

    28. Skorpion mine, Namibia

    29. Black Mountain mine, South Africa

    30. South Africa Block 1

    25

    27

    28

    30

    24

    7

    61%10%

    9%

    5%

    9%

    2%1% 3%

    Revenue by Geography, FY 2015

    India

    China

    Middle East

    Europe

    Far East others

    Africa

    Asia others

    Others

    10 10

    11

    19

    17

    13

    1313

    12

    14

    14

    6

    15

    15

    5

    1

    43

    2

    20

    20

    8

    9

    7

    21

    18

    16

    22Zinc-Lead-Sliver

    Oil & Gas

    Iron Ore

    Copper

    Aluminium

    Power

    Projects under

    development/commissioning

    Captive thermal power plant

    1. Debari smelter

    2. Chanderiya smelters

    3. Rampura Agucha mine

    4. Rajpura Dariba mine & smelters

    and Sindesar Khurd mine

    5. Zawar mine

    6. Talwandi Sabo power project

    7. Silvassa refinery

    8. Iron ore operations Goa

    9. Iron ore operations Karnataka

    10. Tuticorin smelter

    11. MALCO power plant

    12. Lanjigarh alumina refinery

    13. Jharsuguda smelters & power plants

    14. Korba smelters & power plants

    15. Rajasthan block

    16. Ravva (PKGM-1) block

    17. KG-ONN-2003/1 block

    18. KG-OSN-2009/3 block

    19. PR-OSN-2004/1 block

    20. Cambay (CB/052) block

    21. MB-DWN-2009/1 block

    22. SL 2007-01-001 block

    26

    29

  • Diversified and Low-cost Asset Portfolio

    Competitive Position on Global Cost Curve

    39%

    37%

    11%

    4%

    7%1%

    Oil & Gas

    Zinc

    Aluminium

    Power

    Copper

    Iron Ore

    Diversified mix