Vedanta Resources Plc India Operations Site Visit: Corporate Presentation

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  • VEDANTA RESOURCES PLCIndia Operations Site Visit: Corporate Presentation 24 SEPTEMBER 2012
  • Cautionary Statement and DisclaimerThe views expressed here may contain information derived from publicly available sources that have not beenindependently verified.No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of thisinformation. Any forward looking information in this presentation including, without limitation, any tables, chartsand/or graphs, has been prepared on the basis of a number of assumptions which may prove to be incorrect. Thispresentation 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. Inthis 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, uncertaintiesarise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations ininterest and or exchange rates and metal prices; from future integration of acquired businesses; and fromnumerous 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 futureresults to be materially different that those expressed in our forward-looking statements. We do not undertake toupdate our forward-looking statements.This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation ofan offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Vedanta or anyof its subsidiary undertakings or any other invitation or inducement to engage in investment activities, nor shallthis presentation (or any part of it) nor the fact of its distribution form the basis of, or be relied on in connectionwith, any contract or investment decision.FY2012 INDIA OPERATIONS SITE VISIT CORPORATE PRESENTATION - 24 SEPTEMBER 2012 2
  • Agenda Overview Navin Agarwal, Deputy Executive Chairman Vedanta Market Positioning M.S. Mehta, Chief Executive Officer Business and Operations Financials D.D. Jalan, Chief Financial Officer Sustainable Development Tony Henshaw, Chief Sustainability OfficerFY2012 INDIA OPERATIONS SITE VISIT CORPORATE PRESENTATION - 24 SEPTEMBER 2012 3
  • Site Visit ItineraryTuesday - 25 September India Operations Site Visit1. Jharsuguda Aluminium S.K. Roongta and Power plants CEO, Aluminium and Power Zinc-Lead-Silver Rampura Agucha mine Dariba smelters Sindesar Khurd mineWednesday - 26 September2. Rampura Agucha mine Akhilesh Joshi CEO, Hindustan Zinc 3 Agucha, Dariba smelters Barmer Zinc India 2 Dariba, Sindesar Khurd Sindesar Khurd mine Oil & Gas Rajasthan Jharsuguda 1 PowerThursday - 27 September Mumbai Jharsuguda power3. Rajasthan (Mangala) P. Elango Interim CEO, Cairn India 4 Aluminium oil fields Jharsuguda smelter Oil & Gas Goa Iron Ore GoaFriday - 28 September P. K. Mukherjee4. Goa Iron ore mines CEO, Sesa Goa Iron OreFY2012 INDIA OPERATIONS SITE VISIT CORPORATE PRESENTATION - 24 SEPTEMBER 2012 4
  • Overview Navin AgarwalDeputy Executive Chairman
  • Highlights Vedanta: A Global Diversified Natural Resources Major World-class portfolio of large, structurally low-cost, scalable assets with long life of R&R Strong financial profile supported by diversified cash flow growth Delivering industry-leading production growth driven by substantially invested projects Recent acquisitions provide additional growth options EBITDA (US$mn) Free Cash Flow (US$mn) Underlying EPS (USc/share) +42% CAGR +32% CAGR +29% CAGR 5,353 3,128 209 323 335 27 FY2004 FY2012 FY2004 FY2012 FY2004 FY2012 proforma proforma proformaNote: FY2012 numbers are proforma with Cairn India for full yearFY2012 INDIA OPERATIONS SITE VISIT CORPORATE PRESENTATION - 24 SEPTEMBER 2012 6
  • Strategic Priorities Deliver industry-leading production growth across our portfolio Continue to add reserves and resources to drive long-term value Complete the simplification of the Group structure Minority buyouts at HZL and BALCO Reduce gearing from free cash flow Growth and Long-Term Value Creation with a Focus on SustainabilityFY2012 INDIA OPERATIONS SITE VISIT CORPORATE PRESENTATION - 24 SEPTEMBER 2012 7
  • Optimising Group StructureRestructuring on track for completion in CY2012 Consolidates and simplifies group structure, Vedanta Resources eliminates cross-holdings Financial Benefits: Delivers significant synergies upto $200mn/yr 79.4% 58.3% Improves capital structure Konkola Improves allocation and cost of capital Copper Sesa Sterlite Mines Enhances fungibility of cash Enhances visibility of earnings and cash flows Reduces Debt service liability at plc by 61% to $3.9bnMinority Buyouts Buyout of government stake in HZL and BALCO Zinc- remains a priority Iron Alumi- Lead- Oil & Gas Copper Power Ore nium Silver HZL Sesa Goa Cairn Tuticorin BALCO Talwandi India Sabo Zinc Intl WCL CMT VAL Jharsuguda BALCONote: Shareholding based on basic shares outstanding MALCOFY2012 INDIA OPERATIONS SITE VISIT CORPORATE PRESENTATION - 24 SEPTEMBER 2012