Vedanta Resources plc Corporate Presentation September 2015
Vedanta: A Global Diversified Natural Resources Company Diversified Business Model. Portfolio of large, structurally low cost, long life Tier-I EBITDA Mix2 for Q1 FY2016 assets: 1% 13% Significant near term growth with well…
Recent volatility in commodities mainly driven by China Commodity Price Performance & Chinese Stock Index (rebased to 100) 110 PBOC rate cut YTD 3m Aluminium -13% -9% 100 Copper -18% -15% 90 Iron Ore -15% -8% Oil -21% -25% 80…
China: Recalibration of economy and growth China Investment in absolute to grow at 6% CAGR Soft landing for China 8.0 49% 7.0 48% New normal: shifting from high speed growth to 6.0 47% moderate growth 5.0 46% 45% 4.0 Lower…
Oil: Volatility in short-term, with stability and improved market dynamics in medium term Current Demand and Supply Dynamics Oil Supply & Demand forecasts (mmbbl/d) (mmbbl/d) Over supply has resulted in prices falling by c.50% last…
Aluminium: Cost curve suggests 50%+ of worlds capacity at loss Aluminium Cost Curve Current Demand and Supply Dynamics Sharp rise in Chinese exports causing short-term market Cost (US/t) 3,000 saturation Cost curve suggest 50% of…
Zinc: Attractive Fundamentals Zinc market is expected to be in a state of deficit Concentrate deficit supporting zinc prices 000 mt Zinc has strong fundamentals in the commodity complex; 500 Concentrate Surplus (+) Deficit (-)…
Copper and Iron Ore Copper market to witness supply deficit in the medium term: Supply surplus partially offset by supply interruptions Tuticorin Smelter Smelter continues to maintain strong operational efficiency Positioned in the…
Indian Government Committed to Reforms What has happened Electrifying India through 22,000Km transmission lines Highway projects of c.8,000km awarded (3,621Km in FY14) Record increase in Coal production Government priorities and…
Vedanta: Addressing current market volatility, well positioned to benefit from long term growth Aluminium consumption to rise with growth in population and urbanisation Diversified portfolio and high quality 60,000 2050 population…
Appendix
Safety and Sustainability: Key to our Operations Safety Focus on bringing in a culture of Zero-Harm LTIFR (per million man-hours worked) Performance incentives linked to safety performance 0.83 Ensure effective implementation of…
Entity Wise Cash and Debt Net Debt Summary (mn) 31 March 2014 30 Sept 2014 31 March 2015 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Debt Cash & LI Net Debt Vedanta plc1 8,323 16 8,307 7,532 59 7,473 7,707 34 7,673 KCM…
Optimising Capex to drive Cash Flow Generation Free cash flow post growth capex of 1bn in a volatile commodity price environment Prioritising capital to high-return, low-risk projects, to maximise cash flows Oil & Gas FY2016 capex…
Strong Financial Profile Credit rating of BB-/Ba31 Diversified Funding Sources for Term Debt (as of 31 March 2015) Cash and Liquid Investments of 8.5bn, additional 1.2bn undrawn committed lines of credit 7% Debt profile: c.50%…
Currency and Commodity Sensitivities Foreign Currency - Impact of a 10% depreciation in FX Rate FY2015 FY2015 Currency Average FX rate EBITDA (mn) INR/USD 61.1471 185.9 Commodity prices Impact of a 10% increase in Commodity…
Inter-company Debt During FY2015 Debt Service Liability (in mn) Cairn India lent 1.25bn to a Annualized wholly owned overseas Vedanta Resources plc 31 March 2014 31 March 2015 Interest Cost subsidiary of Vedanta Ltd Gross…
Merger of Vedanta Ltd and Cairn India Ltd Diversified portfolio de-risks earnings volatility and drives Diversified commodity model has generated superior stable cash flows through the cycle shareholder returns Improved ability to…
Group Structure Vedanta Resources Plc Divisions of Vedanta Limited 79.4% 62.9% Sesa Iron Ore Konkola Sterlite Copper (Tuticorin) Copper Vedanta Ltd Power (2,400 MW Jharsuguda) Mines (KCM) Aluminium (Odisha aluminium and…
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