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BMO Global Metals & Mining Conference J.P. Morgan Global Emerging Markets Corporate Conference February 2015
A Global Diversified Natural Resources Company Diversified Business Model 9M FY2015 EBITDA LSE listed with portfolio of large, longlife, Mix Margins Iron Ore Copper well-invested assets 7% 1% Oil & Gas 69% Power Zinc India 55% 5%…
Tier-1 Asset Portfolio FY2014 Positioning R&R Life1 Production Capacity2 Oil & Gas (Cairn India) 3 Top 20 global independent E&P; Platts 2013: Fastest 15 218kboepd 225+ kboepd growing energy company globally Zinc India (HZL) nd…
Focus on Safety Key to Operational Excellence Fatal incidents LTIFR Safety (per million man-hours worked) Fatal accidents and injury rates have declined 1.2 Implementing programs to eliminate fatalities 30 26 1.0 0.86 and control…
Strategic Framework Strategic Advantages Strategic Priorities Production Growth & Operational Diversified, low-cost portfolio delivering Excellence cash flows through the cycle Reduce gearing Well-invested asset base Add…
India: Attractive Fundamentals Steel Consumption Intensity: High growth phase Indian economy: Key differentiators Steel consumption per capita (in tonnes) vs. GDP per capita (in USD thousands) 1.2 Domestic-demand driven: lesser effect…
India: Regulatory Update Oil & Gas Government prioritizing energy security Gas pricing policy announced We want to increase ease of doing business in India. Bottlenecks New incentive regime - evaluating revenue sharing have to be…
Oil & Gas Rajasthan Onshore Block (36 discoveries) Currently producing 180 kboepd (95% oil) at Rajasthan at an opex of 5.7/bbl 40 km Lowest quartile cost Significant gas potential of 1-3 Tcf Bhagyam (B) Mangala (M) Core…
Zinc India Strong volumes; on track to meet full year volume Rampura Agucha Ore body guidance Lowest quartile costs 16 moz silver capacity Present OC Proposed OC extension Brownfield expansion to 1.2mtpa mined metal Sindesar Khurd…
Copper Zambia High quality asset, significantly invested Top 20 copper mines by contained copper (mt) Collahuasi, Chile2 70.0 3bn of capital invested since acquisition 110.0 (Glencore, Anglo American) Escondida, Chile2 (BHP…
Aluminium & Power Receipt of approvals and ramping up capacity at Aluminium Costs and Margins (in /t, for Q3FY2015) Aluminium and power businesses 415 67 2,448 Start up of c.1 million tonne additional smelting capacity by FY2016;…
Other Businesses Tuticorin Copper Smelter COPPER - INDIA One of the most efficient custom smelters globally Smelter operating at benchmark parameters High copper recoveries Low energy consumption CY 16 annual TCRC settlements…
Building Momentum: Delivering on Strategic Priorities Strategic Priority What we Achieved Focus Areas Approvals and start-up of Oil & Gas: RJ ramp up Aluminium and Power capacities Zinc India: Zinc and Silver ramp up Production…
Appendix
Strong Financial Profile Credit rating of BB/Ba31 Diversified Funding Sources (as of 30 September 2014) Cash and Liquid Investments of 8 bn, additional 0.9bn Short Term Loans undrawn committed lines of credit 9% Bonds-USD 24%…
Entity Wise Cash and Debt Net Debt Summary (mn) 30 Sep 2013 31 Mar 2014 30 Sep 2014 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Debt Cash & LI Net Debt Vedanta plc1 8,090 85 8,005 8,323 16 8,307 7,532 59 7,473 KCM 743…
Well-Invested Assets Driving Cash Flow Growth Cash Flow and Growth Capex Profile - bn Continued growth in Free Cash (as of 30 September 2014) Flow with production ramp-up Free Cash Flow-FY M&M Capex Zinc Capex O&G Capex 0.4bn free…
Inter-company debt During H1 FY2015 Debt Service Liability (in mn) Cairn India lent 1.25bn to Annualized a wholly owned overseas Vedanta Resources plc 31 March 2014 30 September 2014 Interest Cost subsidiary of Sesa Sterlite Gross…
Currency and Commodity Sensitivities Foreign Currency - Impact of a 10% depreciation in FX Rate H1 FY2015 H1 FY2015 Currency Average FX rate EBITDA (mn) INR/USD 60.1911 204.8 Commodity prices Impact of a 10% increase in Commodity…
Capital Allocation and Returns World class assets and operational excellence to deliver strong, stable and sustainable cash flows Improve Capacity Utilization (Aluminium, Iron Ore and Copper Zambia) Strong Shareholder…
India Regulatory Update MMDR and Coal Block Mines and Minerals Development Coal Scenario and Coal Block Auctions Regulation (MMDR) Ordinance, 2015 Ordinance issued in Jan 2015 Coal Scenario Government focussed on improving coal…
Group Structure Vedanta Resources Divisions of Sesa Sterlite 79.4% 62.9% Iron Ore (Sesa Goa) Konkola Copper Smelting (Tuticorin) Copper Sesa Sterlite Mines (KCM) Power (2,400 MW Jharsuguda) Aluminium & Power assets (VAL)…
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