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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.' Forward–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. 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.


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%


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


Our Global Footprint

Copper

Our key operations include:

Oil & Gas

Zinc-Lead-Silver

Captive thermal power plant

Iron Ore

Aluminium

Power


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


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

EBITDA ($mn) Key highlights

Oil & Gas 15+ 46.9 mmboe1

570• India’s 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 world’s largest undeveloped zinc deposits

• Developing Gamsberg with a modular and flexible approach to maximise value

Copper – India NA 384kt 337• One of the world’s 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 world’s 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


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

Vedanta’s 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/Rc’s.


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 Ltd’s

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

$3.7 bn

$2.3 bn

$1.5 bn

$0.6 bn

+30% growth

$1.0 bn

Co

pp

er

Eq. P

rod

uct

ion

(kt

)

Copper Eq. Production

Capex

EBITDA

Progress in FY2017

Ramp-up of BALCO-II smelter

completed, rolled product

facility re-started;

Jharsuguda-II: 1st line ramp-

up impacted by power

outage, 3rd line start-up

moved forward from Q4 to

Q2

Goa iron ore production

scaled to 40% of allocated

capacity in Q1

Ramp-up of power volumes

at BALCO and TSPL; 3rd unit of

TSPL to be capitalized in Q2

On track to deliver significant

EBITDA growth in FY2017

Ramp-up will generate higher free cash flow and enable de-leveraging


Ethos of Innovation and Technology

• Vedanta has created a web based innovation and technology platform Eureka for incubating ideas with a corpus of

Rs. 200 crores to fund research

• These include process efficiency, reduce cycle time, increase product yield or improve safety standards

• Vedanta has instituted quarterly innovation awards that will recognize and reward ideas that are game changers

“Sustainability is the heart of our business. High efficiency technology and safe practice ensure maximum recovery as well

as zero waste. Eureka helps create the discourse on this.”

- Ajay Dixit, CEO Power and Head Innovation Cell, Vedanta

Source- TOI Article- Top down cheer for bottom up Innovation, Aug 18 2016


Social License to OperateSustainable Development Model Sustainable Development Model–

Responsible Stewardship, Building Strong

Relationship, Adding & Sharing value

Strategic Focus - Inclusion of a 4th Pillar –

Strategic Communication leveraging

Sustainable Development

Aligning Sustainable Development with the

Business Goals

Alignment - Aligning with companies’

business goals, mission and values

Maintaining social license to operate

Stakeholder Communication – Enhanced

transparency on Sustainable Development

issues

Sustainable Development Model: underpins License to

Operate

Sustainable Development Framework


Our Sustainable FutureEnvironmental Management

• Zero “higher category” (Cat 4 & 5) environmental incidents

in FY2016

• Safe and successful closure of the Lisheen mine in FY2016

• Focus on resources efficiency, process innovation and

technological interventions on Waste, Water and Energy

• Climate Change

– Signed the Paris Pledge for Action

– Evaluating and updating our Carbon Strategy

– TSPL sets Guinness Record for planting 200,000

saplings in 1 hour

• Vedanta Ltd. awarded with CII- Sustainable Plus Platinum

level rating

Community Relations

• Working towards implementation of the Sustainable Development Goals

• Social Impact Assessment completed for HZL and Cairn India sites

• Executed group wide project – 50 Model Angandwadi’s (childcare

centers)

• Extending WBCSD - WASH pledge: Safe access to Water, Sanitation and

Hygiene for communities


Mission

Committed to the Prime Minister’s national vision of eradicating child

malnutrition, providing education, healthcare and empowering women

with skill development.

Vedanta’s Flagship Project


Timeline

1979

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

1986

Sterlite Industries Ltd. makes 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 ThalangaCopper Mines

1999

Sterlite Industries 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 American’s 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 Shamsher Sterling 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.


Strategic Priorities Remain Unchanged

Production growth and asset optimisation

De-lever the balance sheet

Identify next generation of resources

Simplification of the group structure

Protect and preserve our license to operate

• Disciplined ramp-up of new capacities in Aluminium, Power and Iron Ore• Zinc: Ramp-up volumes at Rampura Agucha U/G and develop Gamsberg• O&G: Enhance gas production; EOR at other fields

• Disciplined approach to exploration• Continue to enhance our exploration capabilities: Dedicated exploration

cell formed

• Vedanta Limited and Cairn India merger approved by all sets of shareholders

• Achieving Zero harm: reduce fatal, environment and social incidents• To obtain local consent prior to accessing resources• Resource Efficiency Improvement – Water, Energy, Waste and Carbon• Community need based development projects

• Reduce gross debt • Continued optimisation of opex and capex• Continued discipline around working capital

Strategic PrioritiesFocus Areas for FY 2017


ContactsUK Office India Office

Vedanta Resources Plc- Head Office16 Berkeley StreetLondon, W1J 8DZUnited KingdomPhone: +44 020 7499 5900

Vedanta Resources Plc - MumbaiVedanta House 75 Nehru Road, Vile Parle EastMumbai, Maharashtra, 400099IndiaPhone: +91 22 6646 1000

Group Communications

Roma BalwaniPresident – Sustainability, CSR and CommunicationsTel: +91 22 6646 [email protected]

FinsburyDaniela FleischmannTel: +44 20 7251 [email protected]

Investor Relations

Ashwin BajajDirector – Investor RelationsAnshu GoelVice President – Investor RelationsRadhika AroraAssociate General Manager – Investor Relations

Tel: +44 20 7659 4732Tel: +91 22 6646 [email protected]