Vedanta Resources Plc Preliminary Results Presentation for year ended 31 March 2012

VEDANTA RESOURCES PLCPreliminary Results Presentation

for year ended 31 March 2012

17 MAY 2012

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.' Forward–

looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties looking 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.

FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 2

Overview

Navin Agarwal

Deputy Executive Chairman

FY2012 Highlights

Financials

� EBITDA of $4.0bn; EBITDA margin 41%1

� Underlying EPS of $1.42

� Free Cash Flow of $2.5bn2; Cash and Liquid Investments of $6.9bn

� Final Dividend at 35 US cents per share

Corporate

� Group simplification creates Sesa Sterlite – on track for completion in CY2012

� Integrated Cairn India – Rajasthan production now at 175kbopd; basin potential of 300kbopd3� Integrated Cairn India – Rajasthan production now at 175kbopd; basin potential of 300kbopd3

� Acquired Liberia Iron Ore assets with c.1bn tonnes R&R; first shipment in FY2014

Operations

� Growth capex largely invested – to drive production and cash flow growth

� Significant production growth in Silver, Alumina, Aluminium, Power and Oil & Gas

� Exploration success at Zinc, Iron Ore and Oil & Gas

FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012

Note: 1. Excludes Copper Custom Smelting operations

2. Free Cash Flow before Growth Capex

3. Subject to approvals

4

Growing Metals and Energy Demand

� Driven by emerging markets

Industry Landscape - the Vedanta Advantage

� Significant production growth in key commodities

� Proximity to emerging markets

� Low-cost advantage: high quality assets, competitive

labour cost and integrated approach

� Long-life assets with further exploration upside

Sector Theme Vedanta Positioning

Supply-Side Headwinds

� Operating costs: wage and energy cost

inflation, declining grades

� Many large mines nearing end-of-life

Growing Metals and Energy Demand

Supply-Side Headwinds


� Long-life assets with further exploration upside

Project Delivery Challenges

� Capital costs and timelines

� Investment vs. return of capital

� Growth projects significantly invested, and ramping-up

� Vedanta at inflection point with strong returns driven by

volume growth

Regulation

� Regulatory and fiscal changes

� Regional issues occurring globally

� Substantial contributor to economies and communities

� Partnering with Government

� Many large mines nearing end-of-life

Project Delivery Challenges

Regulation

5

Tier-1 Diversified Asset Portfolio

FY2012 Production Capacity R&R Life1 Sustainable Cost Position

Zinc India 830kt 1mtpa 25+ Lowest Quartile

Zinc Intl 444kt 400ktpa 20+ Lower Half

Silver 7.8moz 16moz pa 25+ By-product

Oil and Gas 173kboepd 260kboepd2

17 Lowest Quartile

Zinc India

Zinc Intl.

Silver

Oil & Gas


Iron Ore 13.8mt 20.5mtpa 18 Lowest Quartile

Copper 200kt 400ktpa 24+4

Lower Half

Aluminium 675kt 2.3mtpaCurrently Lower Half;

Lowest Quartile with Captive Bauxite

Iron Ore3

Copper Zambia

Aluminium

Note: 1. At capacity

2. Capacity expected for the current producing assets, subject to approvals

3. Excluding Liberia

4. Mine life of Konkola Deeps

Large, Low-Cost, Long-Life, Scalable Assets

6

Delivering on Strategic Priorities

� Cairn India and Zinc-Intl integrated

� Liberia Iron Ore assets acquired

� 16moz Silver capacity at Zinc-India

� Progressed on organic growth projects

� Rajasthan ramp-up to significant part of

240kbopd1 in CY2013; progress towards basin

potential of 300kbopd1

� Recovery of Iron Ore volumes, and ramp-up

at Konkola and Power

� Next leg of growth – Liberia, Gamsberg, Zinc-

India

Delivered in FY2012 Focus for FY2013

GROWTH

Organic Growth, Value Accretive M&A


� Simplification of the Group structure

announced

� Exploration success at Oil & Gas, Iron

Ore, and Zinc

� Low cost advantage maintained

� Complete the simplification of the Group

structure

� Adding R&R at Oil & Gas, Iron Ore, and Zinc

� Continued focus on securing Coal and Bauxite

� Reduce gearing through strong Free Cash

Flow post capex

Note: 1. Subject to approvals

UNLOCK VALUE

Optimise Returns

Long Term Value Creation with a Focus on Sustainability

7

0.5 1.2

1.1

Free Cash Flow² Capex-ex-Cairn Capex-Cairn

2,000

2,500

3,000

3,500

4,000

Zinc-Lead Silver Iron Ore Copper

Aluminium Power Oil & Gas

Delivering Free Cash Flow

Cash Flow and Capex Profile - $bn1 Year-end Capacity (in Copper Equivalent - kt)3

1.8

2.3

3.1

3.7

2.52.2

1.91.7

1.4

FY2010 FY2011 Proforma FY2012

FY2013e FY2014e FY2015e

0

500

1,000

1,500

2,000

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Notes: 1. Refers to organic growth capex. Cairn India has not announced capex for FY2015

2. Free cash flow before Growth Capex

3. All metal and power capacities rebased to copper equivalent capacity (defined as production x commodity price / copper price) using Long Term commodity price estimates. Power rebased using FY2012 Realisations.

Copper custom smelting capacities rebased at TC/RC for FY2012

Free Cash Flow at an Inflection Point


EBITDA (CY11 - $bn)

Market cap($bn)

BHP Billiton 38.5 176.8

Vale 33.8 109.4

Rio Tinto 28.5 99.1

Glencore Xstrata1 16.2 79.2

Anglo American 13.3 46.9

Industry-Leading Growth

Top Global Diversified Natural Resources Companies

Industry-Leading Growth

(Copper Equivalent FY2012 to FY2015 CAGR)3

Glencore-Xstrata

Vale

Sesa Sterlite

Vedanta

Anglo American 13.3 46.9

Vedanta2 5.9 5.4

Teck 5.5 19.6

Sesa Sterlite2 5.3 -

ENRC 3.4 11.2


Source: Company filings and broker reports. Market data as of 10 May 2012

Note: 1. Assumes proposed merger completes

2. Pro forma EBITDA for the twelve months ended December 2011, including Cairn India for full year

3. Vedanta and Sesa Sterlite based on year-end capacity growth, peers based on equity research production estimates. Converted into copper equivalent using Long Term commodity price estimates. Power rebased using

Vedanta FY2012 Realisations and Copper custom smelting capacities rebased at TC/RC for FY2012.

0% 5% 10% 15% 20%

Anglo American

ENRC

Rio Tinto

BHP Billiton

9

Financial Results

D D Jalan

Chief Financial Officer

Financial Highlights

$mn or as stated FY2012 FY2011 Change

FY2012 proforma with

Cairn

EBITDA 4,026 3,567 13% 5,353

EBITDA margin1 (%) 40.6% 44.6% - 46.7%

Underlying Attributable PAT2 387 715 (46)% 571

Underlying EPS($/share)2 1.42 2.63 (46)% 2.09Underlying EPS($/share)2 1.42 2.63 (46)% 2.09

Free Cash Flow before Growth Capex 2,534 2,347 8% 3,128

Growth Capex3 2,398 2,517 (5)% 2,728

Total Dividend (USc/share) 55.0 52.5 5%


Notes: 1. Excludes custom smelting operations

2. Based on profit for the year after adding back special items and other gains and losses, and their resultant tax and minority interest effects

3. Excludes sustaining capex

11

(126)(201)

(428)3,567

978 39 160

37 4,026

EBITDA Reconciliation

FY2012 vs. FY2011 ($mn)

61% Commodity

linked

EBITDAFY 2011

New Assets¹ Price Volume excl. Iron Ore

Volume Iron Ore

Export Duty Cash Cost Others EBITDAFY 2012


Notes: 1. Includes $265mn from Zinc-Intl and $713mn from Cairn India. Cairn India is accounted for as a subsidiary from 8 December 2011.

12

EBITDA to PAT

4,026

(1,408)

(230)

FY2012 ($mn)

1,229

387

92

(517)

(1,169)60

(420)

(314)

EBITDA Depreciation and

Amortization

SpecialItems

Net Interest Expense

FX and Embedded Derivatives

Tax Profit from Associates

PAT including Associates

Minority Interest

Attributable PAT

Underlying Attributable

PAT¹

77%

Underlying Minority Interest


Notes: 1. Profit for the year after adding back special items and other gains and losses, and their resultant tax and minority interest effects

13

4.1

3.2

4.5

Strong Financial Profile

� Cash and Liquid Investments of $6.9bn, with additional $2.9bn undrawn lines of credit

� FY2012 Proforma Net Debt:EBITDA including Cairn of 1.9x; Credit ratings of BB/Ba3/BB1

� Post group structure simplification, debt service liability at plc reduces by 61% to $3.9bn

− Debt service cost at Vedanta reduces from $500mn to $190mn in FY2013

− Payout-based dividend policies at subsidiaries to result in significantly higher dividends flowing to plc

� Limited maturities at plc in FY2013 – $250mn already refinanced

Debt Maturity Profile as of 31 March 2012 ($bn)2

$1.8bn - Bridge loan to be rolled over into long term facilities$0.5bn - Revolving working capital facility$0.8bn - To be repaid through internal cash flows

1.00.5 0.1 0.3

3.0

2.21.5

1.3

3.10.5

1.3

0.4

0.32.3

2.4 2.7

0.7

3.2

FY2013 FY2014 FY2015 FY2016 FY2017³ FY2018 and later

Debt at VED plc Debt to be transferred from VED plc to Sesa Sterlite Debt at Subsidiaries


Notes: 1. Issue credit Ratings as per S&P, Moody’s and Fitch respectively

2. Debt numbers shown at face value

3. Includes convertibles at Vedanta Plc of $883mm due in FY2017 (with a put option in April 2013) and $1,250mm due in FY2017 (with a put option in July 2014)

$0.8bn - To be repaid through internal cash flows

14

Business Review

M.S. Mehta

Chief Executive Officer

Aluminium3%

Copper13%

Oil & Gas38%

Power2%Aluminium

4%

Copper17%

Oil & Gas18%

Power3%Aluminium

7%

Copper19%Iron Ore

33%

Power4%

EBITDA: Continued Growth and Diversification

FY2011 FY2012Proforma FY2012

with Cairn India for Full Year

Zinc-India23%

Zinc-Int.7%

Iron Ore14%

Zinc-India31%Zinc-Int.

9%

Iron Ore18%

Zinc-India34%

Zinc-Int.3%

EBITDA: $3.6 bn EBITDA: $4.0bn

+13%

EBITDA: $5.4bn

+50%


1.9 1.7 1.51.1 1.0

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

Sustainability – Integral to our Business

� 48% reduction in LTIFR over 5 years

− Structured programs in place to enhance safety and prevent

fatalities

� Climate Change

− Continued improvement in specific energy and water consumption

− Participated in Carbon Disclosure Project 2011: Sesa Goa received

7th position in India

� Green Energy

− Operating 274MW wind power

− Generating 61MW from waste heat

� New Sustainability Framework rolled-out

-48%

Specific Water Consumption

BALCO (m3/MT)-75%

LTIFR

19.0

17.0 16.9 16.3 16.2

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012

15.6 14.2

7.2 3.9

FY 2009 FY 2010 FY 2011 FY 2012

Specific Energy Consumption

HZL Smelters (GJ/MT)

� New Sustainability Framework rolled-out

− New policies and technical standards rolled-out

− Exco Sustainability Sub-Committee formed to enhance sustainability

focus

− 17 of 29 Scott Wilson recommendations implemented, others on

schedule

� Community programs covering 3.1million people

− Jointly working with NGOs, administration, and beneficiaries,

supported by a strong team of CSR personnel and extension

workers.

− Focus: Health and Nutrition, Education, Women Empowerment,

Water & Sanitation, and Sustainable Livelihood


-15%

17

Creating Long Term Value Through Exploration

� Added 3x times

mined out in

FY2012

� Added 4.8x times

mined out since IPO

� R&R increased to

332mt, from 144mt

at Vedanta IPO

� 25+year mine life

Zinc-India Iron Ore

India

� Added net 68mt in

FY2012, 18 year

mine life at current

capacity

� R&R increased from

190mt2 at

acquisition to

374mt – added 3.4x

� R&R replacement

ratio of 1.75x in

FY2012

� Potential resource

increased to 7.3

billion boe gross in

place from 6.5

billion boe gross in

place at Rajasthan

Oil & GasCopper-Zambia

� R&R increased to

689mt from 457mt

at acquisition

� 24+ year mine life

with high grade at

KDMP

� Added mine life at

all three assets

� Current mine life:

− Skorpion:

5+years1

− BMM: 10+years

− Lisheen: 3years

� 186mt Gamsberg

Zinc-Intl


� 25+year mine life

with 10%+grades

374mt – added 3.4x

times mined out

Liberia

� 1bn tonnes R&R

− Aeromagnetic

study completed

− Initial drilling

indicates

potential upside

� Exploration success

at Sri Lanka and

Nagayalanka

� 17 year R&R life

� 186mt Gamsberg

deposit feasibility

study underway

Notes: 1. With some additional work for conversion of resources to reserves

2. 120mt excluding Orissa from Sesa Goa acquisition, and 70mt from Dempo acquisition

Creating Long Term Value through Exploration

18

Cairn India - Delivering Growth and Cash Flows

Production Growth - Rajasthan

� Since acquisition, output has been enhanced from

125kbopd to 175kbopd

� Mangala field producing since Aug 2009; currently at

150kbopd

� Bhagyam field producing since Jan 2012; currently at

25kbopd

� Resource base supports basin potential to produce

300kbopd1

Exploration Growth

� Diversity of basin, plays and environments

Significant

part of

300,0001

Basin

Rajasthan Gross Production (bopd)

� Diversity of basin, plays and environments

− Exploration success ratio ~50%

� Achieved reserve & resource replacement ratio of 175%

during the year

� Net unrisked exploration potential for the portfolio at

2.1bn boe

� Significant exploration upside at Rajasthan

� Successful discoveries at Sri Lanka and KG-ONN-2003/1



part of

240,0001

in CY2013

Primarily

from MBA

Aishwariya

towards

end CY2012

Basin

Potential

Barmer Hill

Further

exploration175,000

Currently

Mangala

150kbopd

Bhagyam

upto

40kbopd

125,000 at

Acquisition

completion

Mangala

125kbopd

19

Cairn India

� Acquisition completed in December 2011

− Integration completed

− Announced Dividend Policy of ~20% payout of net

income

� Cairn India production and contribution

− Average daily gross operated production in FY2012 at

172,887 boe

− Reduced India’s crude oil import dependency by

~US$6bn on a gross basis

� Rajasthan potential increased to 7.3bn boe gross in place

from 6.5 billion boe gross in place since acquisition

Rapid Production Growth(Gross Production in kboepd)

Production

FY2011 FY2012

Average Daily Gross Operated Production (boepd)

149,103 172,887

Rajasthan 100,993 128,267

Ravva 36,942 36,379

Cambay 11,169 8,242

Average Daily Working Interest Production (boepd)

83,474 101,268

Rajasthan 70,695 89,787

Ravva 8,312 8,185

Cambay 4,468 3,297

EBITDA1 - 713

Note: 1. Numbers post acquisition

from 6.5 billion boe gross in place since acquisition

announcement

− Recoverable risked prospective resource estimated at

530 mmboe gross

� Development

− Rajasthan EOR Pilot on track; booked 70 mm bbls as

Proved & Probable Reserves

− Barmer to Salaya section of the pipeline being

debottlenecked and augmented

− Ravva infill drilling completed, decline rate slowed


450 467581

Q2FY2012 Q3FY2012 Q4FY2012

Note: 1. Subject to approvals Note: 2. Numbers in Indian GAAP as reported by Cairn India Ltd

EBITDA2 ($mn)

20

Zinc

Zinc-India

� Record production of refined Zinc, Lead and Silver

− Maintained lowest quartile cost position

� Strong ramp-up of lead and silver production

− Silver rich 2mtpa SK mine at 90% utilization

− Silver contributed $210mn EBITDA

− 11.3moz Integrated silver production in FY2013

� 27mt gross addition to R&R in FY12

− More than 25 years mine life

Production and Cash Costs

Zinc-India FY2011 FY2012

Mined Metal (kt) 840 830

Refined Zinc (kt) 712 759

Refined Lead (kt)1 63 99

Silver – Integrated (moz)1 5.75 7.61

Zinc CoP2 ($/t) 808 834

Zinc-InternationalFY2011

post acq’n FY2012

Mined Metal – Lisheen & BMM (kt) 44 299

1,220 1,245

101 3661,321

1,611

FY 2011¹ FY 2012

India International

Zinc-International

� Stable operating performance

� Exploration: Mine life extended at all three assets

− Skorpion: 5+ year mine life1

− BMM: 10+ year mine life

− Lisheen: 3 year mine life

� 186mt Gamsberg project:

− Feasibility study to complete in current quarter

− Targeting mine production in 2 years


EBITDA ($mn)

Note: 1. For the period post acquisition

Refined Zinc – Skorpion (kt) 50 145

CoP ($/t) 1,129 1,165

Notes: 1. Includes captive consumption

2. Excluding royalty

Note: 1. With some additional work for conversion of resources to reserves

21

Iron Ore

India

� Net addition of 68mt of R&R

− Total R&R of 374mt, implying 18 year mine life

� Operating performance affected by

− Logistics bottlenecks at Goa: Expanding roads

and developing new corridors

− Karnataka mining ban: process underway to

resuming mining

� Margins affected by 30% export duty from Dec 2011

� Commissioning of 375kt Pig Iron expansion project in

current quarter

Production and Sales (mn DMT)

Iron Ore FY2011 FY2012

Sales1 18.1 16.0

Goa 14.4 13.3

Karnataka 2.1 2.7

Orissa 1.7 -

Production 18.8 13.8

Pig iron - Production (kt) 276 249

Note: 1. Iron ore sales includes captive consumption of 0.30 mt each in FY2011 and FY2012

current quarter

Liberia

� Aeromagnetic survey completed and scoping study

near completion

− Indicates significant upside to earlier estimated

resource base of 1bn tonne

� Targeting first shipment in FY2014


1,174

721

FY 2011 FY 2012

EBITDA ($mn)

22

Copper-India

Copper India/Australia

� Strong volume and cost performance

� EBITDA up 24% - driven by higher volumes, better

by-product credits, and higher Tc/Rc

� Higher smelter availability through technology and

process improvements

� 160MW CPP Project - mechanical completion of first

80MW achieved


Copper India/Australia FY2011 FY2012

Mined Metal 23 23

Refined Metal – India (kt) 304 326

Conversion cost – India (c/lb) 4.0 0.0

80MW achieved


73 59

166239

240

298

FY 2011 FY 2012

Copper Australia Copper India

EBITDA ($mn)

23

Copper-Zambia

Copper Zambia

� Integrated production up 5%

− Commissioned 2900level high speed tramming facility

increasing mine development pace

− Copper smelter recovery at 98.5%

− Costs affected by higher power, fuel and labour costs

− UOB – trial mining successfully completed, confirmed

higher grades of Copper and Cobalt

� Commissioned during the year

− 2nd Cobalt Recovery Furnace commissioned in Q4,

fully ramped-up in April


Copper Zambia FY2011 FY2012

Mined Metal 144 142

Refined Metal – Integrated 133 139

Refined Metal - Custom Smelting 84 61

CoP – Integrated ($/lb) 1.97 2.37

440388

FY 2011 FY 2012

− 7.5mt East Mill commissioned in Q4, ramping-up

− TLP-IV debottlenecking to 75ktpa completed

� Exploration: Maintained track record of R&R replacement

� FY2013 Priorities:

− 3mt West Mill to be commissioned in Q2FY2013

− Accelerate Konkola mine development pace to

60km/year

− Bottom shaft loading at KDMP by Q3 - Platform for

25-30% year-on-year growth in mined metal

− Start regular mining at UOB

− 175kt Integrated Production


EBITDA ($mn)

24

Aluminium

� Record Alumina and Aluminium production

− Value added product sales up 25%, at c.400kt

� Resumed efficient operations at VAL in H2, following

a power outage in H1

− Reduced specific consumption of power and

carbon

− Significantly lower COP in H2, with Q4 COP at

$1,930/t despite input cost pressures

− Q4 COP in second quartile of cost curve, without

bauxite linkage

Volumes and Cash Costs

Aluminium and Alumina FY2011 FY2012

Aluminium Production (kt) 641 675

BALCO 255 246

VAL 385 430

Aluminium COP ($/t) 1,878 2,091

BALCO 1,784 1,922

VAL 1,940 2,188

Alumina Production (kt) 707 928

Alumina COP ($/t) 326 350

Power – BALCO 270MW (mu)

Sales 1,623 1,605

Realisation (Rs/unit) 3.4 3.2

COP (Rs/unit) 1.9 2.2bauxite linkage

� Working with government on bauxite allocation

� BALCO projects

− 1200MW CPP: 1st Unit synchronization in

Q1FY2013

− 325ktpa smelter – first metal in Q3 FY2013

− Captive coal mining in FY20131


COP (Rs/unit) 1.9 2.2

353

182

FY 2011 FY 2012

EBITDA ($mn)


25

Aluminium Industry Dynamics

� Input cost inflation globally in 2011

− LME below c1 costs of c.50% of global capacity

− Capacity cuts by several marginal cost smelters

− Correction in input prices seems inevitable

� VAL and BALCO are in 2nd quartile of cost curve in

Q4FY2012

− EBITDA margin in Q4, in-line with peers

− Cost efficient even without bauxite linkage2,000

2,500

3,000

VAL1-

$1,9

30/t

BALCO1-

$1,9

19/t

Aluminium Cost Curve ($/t)

� Committed to an integrated Aluminium strategy

− Well invested plant with world-class technology

and infrastructure at benchmark project costs

− Strategic location in Eastern India: Proximity to

Bauxite and Coal deposits


0 10 20 30 40 50 60 70 80 90 100

500

1,000

1,500

Cumulative Production (Percentile)

First Quartile -

$1,7

61/t

Second Quartile -

$2,0

57/t

Third Quartile -

2,2

72/t

Source: Wood-Mackenzie CY2012Q1 C1 Cost Estimates, Company sources for VAL and BALCO

Note: 1. Q4 FY2012 COP

26

Power

� Sales significantly higher reflecting commissioning of

new capacity at 2,400MW Jharsuguda power plant

− Three 600MW units operational

− 4th unit under trial runs, to be commissioned in

current quarter

− 65% average plf expected for all units in FY2013

� Continuous operational improvement at Jharsuguda

− Q4 cost lower at INR2.26/unit

− On track to further reduce specific coal

consumption

Sales and Cash Costs

FY2011 FY2012

Total Sales (mu) 1,878 6,554

SEL (mu) 8561 5,6382

Others3 1,022 916

Average realisation (USc/u) 9.7 7.5

Average cost of generation (USc/u) 6.2 5.5

Average realisation (INR/u) 4.44 3.61

Average cost of generation (INR/u) 2.81 2.63Notes: 1. Includes 646mu generated under trial run

2. Includes 926mu generated under trial run

3. MALCO 100MW & WPP274MW

consumption

� 1st 660 MW unit of 1,980MW Talwandi Sabo on track

for commissioning by Q4 FY2013


44

122

FY 2011 FY 2012

EBITDA ($mn)

27

2,500

3,000

3,500

4,000

Zinc-Lead Silver Iron Ore Copper

Aluminium Power Oil&Gas

Summary

� World-class diversified portfolio of large, structurally

low-cost assets with long mine-life

� Strong cash flow growth driven by substantially

invested projects

� Recent acquisitions provide additional growth options

� Group simplification on track for completion in CY

2012

Year End Capacity

(in copper equivalent kt)

0

500

1,000

1,500

2,000

2,500

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015


Note: 1. All metal and power capacities rebased using average Copper LME and Commodity prices for H1 FY2012

2. Copper custom smelting capacities rebased at TC/RC for H1 FY2012

28

Appendix

Entity Wise Financials – FY2012

FY2012 ($mn or as stated)VED

Consol HZLZinc-Intl Sesa

SIIL(inclCMT) KCM BALCO VAL

SEL & TSPL

Cairn India

VED Plc1

Others and Elimination

Cairn India (Associate)

EBITDA 4,026 1,274 366 722 296 388 120 62 86 713 0 (1)

Depreciation (927) (127) (119) (50) (45) (143) (44) (164) (51) (180) (6) 2

Amortization (481) (7) (118) (177) (13) (166)

Special Items (230) (9) (2) (14) (89) (24) (1) (31) (59) (3)

Net Interest Income (Expense) (420) 310 (3) (27) 158 (51) 2 (356) (30) 16 (235) (205)

FX and Embedded Derivative MTM (314) 4 3 2 (48) (160) (45) 3 (73)

Share of Profit in Associates 92 922

Profit before Tax 1,745 1,441 131 458 322 170 16 (618) (40) 351 (297) (280) 92

Tax (517) (294) (16) (147) (87) (51) 8 104 (5) (29)

Profit after Tax 1,229 1,147 115 311 234 119 24 (618) (40) 455 (302) (308) 92


Attributable (%) 4.9 37.6 53.9 55.1 58.0 79.4 29.6 87.6 58.0 49.8 100.0 91.8 70.9

Attributable PAT 60 432 62 171 136 94 7 (541) (23) 242 (302) (283) 65

Underlying Attributable PAT 387 434 60 175 170 108 17 (401) 3 255 (246) (253) 65

As of 31 March 2012

Property Plant and Equipment3 17,575 1,773 624 567 487 2,082 1,871 5,460 2,322 2,371 58 (40)

Mining Reserve 6,265 74 319 1,185 21 32 4,634

Exploratory Assets 10,758 183 176 42 10,357

Note: 1. Includes Vedanta plc and Investment companies at 100% attributable and MALCO at 94.8% attributable

2. Represents a total holding of 28.8% of Cairn India

3. Includes Capital Work in Progress

30

Entity-Wise Cash and Debt Details

Net Debt Summary ($mn)

31 Mar 2011 30 Sep 2011 31 Mar 2012

Company Debt Cash & LI1 Net Debt Debt Cash & LI1 Net Debt Debt Cash & LI1 Net Debt

Vedanta plc2 4,557 265 4,292 6,340 1,136 5,204 9,263 205 9,058

Sterlite standalone incl. CMT 746 1,139 (394) 636 771 (135) 565 758 (193)

Zinc-India - 3,403 (3,403) - 3,384 (3,384) - 3,574 (3,574)

Zinc-International 32 392 (360) 28 306 (278) 9 215 (206)

BALCO 518 68 451 618 26 592 711 49 662

Sterlite Energy Ltd 597 92 505 910 15 895 1,175 37 1,138

Others 24 27 (4) 52 - 52 53 1 51


Others 24 27 (4) 52 - 52 53 1 51

Sterlite Consolidated 1,917 5,122 (3,205) 2,244 4,501 (2,258) 2,511 4,633 (2,122)

Vedanta Aluminium Ltd 2,810 115 2,695 2,825 15 2,810 3,505 85 3,420

Copper Zambia 256 6 250 765 - 765 750 42 709

Sesa Goa 212 2,194 (1,982) 867 220 648 681 118 564

MALCO - 74 (74) 16 17 (1) - 6 (6)

Cairn India - - - - - - 244 1,797 (1,553)

Total (in $mn) 9,753 7,777 1,9703 13,056 5,889 7,1664 16,955 6,885 10,0645

Note: 1. Liquid Investments

2. Includes Investment Companies

3. Includes $5 million debt related derivative



31

Cairn India2

7,097

(2,920)

7,248

558

10,064

Net Debt Reconciliation

FY2012 ($mn)

Other 61 Liberia 90

1,970

2,398 386

364 60

Opening Net Debt

(1 Apr 2011)

Project Capex Sustaining Capex

Shareholder and Minority Dividends

Subsidiary share

purchases

Acquisitions Others Cash Flow from

Operations¹

Closing Net Debt

(31 Mar 2012)


Note: 1. Excluding sustaining capex

2. Net of cash and liquid investments at acquisition

32

Credit Metrics

FY2011 FY2012 Covenant

Net Debt/EBITDA 0.55 x 1.9 x < 2.75 x

EBITDA/Gross Interest Expense1 5.0 x 4.5 x > 4.0 x

Tangible Net Worth ($bn) 5.5 4.5 > 3.0

Net Assets/Debt 2.61 x 2.47 x > 1.75 x

Gearing2 13% 35%


Note: 1. Interest includes Capitalized Interest

2. Gearing is calculated as Net Debt divided by the sum of Net Debt and Equity

33

EBITDA Sensitivities

Commodity prices – Impact of a 10% increase in Commodity Prices (LME/Prices in $/t, or as stated)

Commodity

FY2012

Average price

FY2012 EBITDA

($mn)

Oil ($/bbl) 114 247

Zinc 2,098 221

Aluminium 2,313 162

Copper 8,475 140

Iron Ore 76 121

Lead 2,269 37

Silver ($/oz) 35.3 24


Foreign Currency - Impact of a 10% depreciation in Closing FX Rate

Currency

FY2012

Average FX rate

FY2012 EBITDA

($mn)

INR/USD 47.9458 195

34

Sales Summary

Sales volume FY2011 FY2012Zinc-India Sales

Refined Zinc (kt) 713.1 758.5

Refined Lead (kt) 56.9 91.7

Zinc Concentrate (DMT) 66.0 -

Lead Concentrate (DMT) 38.5 10.1

Total Zinc (Refined+Conc) kt 779.1 758.5

Total Lead (Refined+Conc) kt 95.3 101.8

Total Zinc-Lead (kt) 874.5 860.3

Silver (moz) 4.7 6.6

Zinc-International Sales1

Refined Zinc (kt) 47.3 152.8

Zinc Concentrate (MIC) 28.8 216.8

Total Zinc (Refined+Conc) 76.1 369.6

Lead Concentrate (MIC) 19.4 84.0

Sales volume FY20112 FY2012Iron-Ore Sales

Goa (mn DMT) 14.4 13.3

Karnataka (mn DMT) 2.1 2.7

Orissa (mn DMT) 1.7 -

Total (mn DMT) 18.1 16.0

MetCoke (kt) 265.7 251.7

Pig Iron (kt) 266.1 250.6

Copper-India Sales

Copper Cathodes (kt) 116.6 159.0

Copper Rods (kt) 186.7 161.5

Sulphuric Acid (kt) 520.8 594.9

Phosphoric Acid (kt) 158.7 151.7

Copper-Zambia Sales



Total Zinc-Lead (kt) 95.5 453.6

Aluminium Sales

Sales - Wire rods (kt) 219.7 267.2

Sales - Rolled products (kt) 60.1 64.0

Sales - Busbar and Billets (kt) 38.3 66.0

Total Value added products (kt) 318.1 397.2

Sales - Ingots (kt) 315.0 271.8

Sales - Total (kt) 633.0 669.0

Copper-Zambia Sales


Note: 1. For the period post-acquisition by Vedanta

2. FY2011 numbers restated as per reclassification of energy segment in Q1 FY2012. Accordingly, Non-SEL now includes power sales from MALCO 100MW and HZL Wind. BALCO 270MW and surplus sales at captive power

plants are shown in their respective segments

Power Sales (mu)

SEL 856 5,638

Non-SEL 1,023 916

Total sales 1,879 6,554

BALCO 270 MW 1,623 1,605

Power Realisations (USc/mu)

SEL 6.8 7.2

Non-SEL 10.3 9.4

Average Realisations 9.7 7.5

BALCO 270 MW 7.5 6.7

Power Costs (USc/mu)

SEL 4.9 5.4

Non-SEL 6.4 6.0

Average costs 6.2 5.5

BALCO 270 MW 4.1 4.5

35

Group Structure Simplification - Timeline

Status Event Expected

� BSE and NSE approval sought Mar 2012

� Competition Commission approval sought Mar 2012

� Foreign Investment Promotion Board approval sought Mar 2012

� BSE and NSE approval received Apr 2012

� Competition Commission approval received Apr 2012

� Application to High Court in India and Supreme Court of Mauritius Apr 2012

Scheme documents posted to shareholders May 2012


Vedanta / Sesa / Sterlite / MALCO EGM Jun 2012

Foreign Investment Promotion Board approval Jun 2012

High Courts of India and Supreme Court of Mauritius approval Sep 2012

Transaction completion CY 2012

36

Proposed New Group Structure

Konkola Copper

Mines (KCM)

58.3%

Vedanta Resources

Sesa Sterlite

79.4%

� Iron Ore (Sesa Goa)

� Copper Smelting (Tuticorin)

� Power (2,400MW Jharsuguda)

� Aluminium (VAL aluminium

assets)

Divisions of Sesa Sterlite


100%64.9%

Zinc-India (HZL)

AustralianCopper Mines

Cairn India

58.9%

Subsidiaries of Sesa Sterlite

assets)

Option to increase stake

to 94.4%

Unlisted entitiesListed entities

Note: Shareholding based on basic shares outstanding

Talwandi Sabo Power (1,980MW)

100%

VAL Power and MALCO

Power (1,405MW)

100%

Skorpion & Lisheen -100%

BMM -74%

100%

Zinc-International

51%

Bharat Aluminium (BALCO)


to 100%

51%

Western Cluster (Liberia)


to 100%

37

Vedanta Group Structure

Konkola Copper

Mines (KCM)

54.6%

Vedanta Resources(Listed on LSE)

Madras Aluminium (MALCO)

94.8%70.5%

29.5% Sterlite Industries(Listed on BSE, NSE and NYSE)

VedantaAluminium

(VAL)

79.4%

Sesa Goa (Listed on BSE

and NSE)

55.1%

3.6% Cairn India Ltd(Listed on BSE

and NSE)

38.7%

20.1%


Zinc-IndiaCopperAluminium Iron ore Power

KEY

51.0% 100%64.9%

Zinc-India(HZL)(Listed on BSE

and NSE)

AustralianCopper Mines

Bharat Aluminium (BALCO)

Sterlite Energy

100% 51%

Skorpion and Lisheen

Black Mountain

100% 74%

Zinc-International

Liberia Iron Ore Assets

Oil & GasZinc-International

Note: Structure as at 31 March 2012

38

Vedanta Resources Plc Preliminary Results Presentation for year ended 31 March 2012

Investor Relations

Transcript of Vedanta Resources Plc Preliminary Results Presentation for year ended 31 March 2012