Vedanta Limited · NSE:VEDL
Vedanta — Sesa Sterlite — Investor Presentation (February 2013)
19 slides from Vedanta's investor presentation, February 2013
Slide 1: Sesa Sterlite: A Global Natural Resource Major
Sterlite Industries Sesa Sterlite: A Global Natural Resource Major FEBRUARY 2013
Slide 2: Cautionary Statement and Disclaimer
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 forwa
Slide 3: Sesa Sterlite – Investment Highlights
Sesa Sterlite – Investment Highlights One of the world’s largest diversified natural resource majors - Operations across Base Metals, Iron Ore, Silver, Oil & Gas and Commercial Power Portfolio of scalable tier-1 assets generating strong and consistent profitability - EBITDA margin1 of 50% (9M FY
Slide 4: Tier-1 Diversified Asset Portfolio
Tier-1 Diversified Asset Portfolio Largest integrated zinc-lead India’s largest private-sector crude producer globally, major silver oil producer - Produces c.25% of producer India’s domestic crude Zinc- Oil & Gas Lead- Assets in India, Namibia, South Rajasthan block basin potential of Silve
Slide 5: Sesa Sterlite - Delivering for India
Sesa Sterlite - Delivering for India Contributing to India's energy security Strong Market Positioning in India - c.25% of India's domestic crude oil production #1 #1 #1 #1 #1 #2 One of the largest contributors to the Indian exchequer 80% - Contribution of c. INR 14,300 Crore ($2.6bn) in H1 FY20
Slide 6: Diversified Portfolio driving Strong Profitability
Diversified Portfolio driving Strong Profitability Revenue by Geography EBITDA Margins by Segment H1 FY2013 Middle 9M FY2013 East and Rest of Africa the World 6% 8% Oil & Gas¹ 56% Other Far East and Asia Zinc- India 4% 54% Integrated China 13% Power 40% India Zinc- International 37% 69% Share of EBI
Slide 7: 9M FY2013 Operational Performance
9M FY2013 Operational Performance Production (% change YoY) Oil & Gas¹ 29% Zinc India - Mined Metal 1% Zinc India - Silver² 44% Zinc Intl (4)% Copper Australia 11% Copper India 9% Iron Ore (58)% Aluminium 16% Power 29% Dollar Unit Costs (% change YoY) Zinc India - Zinc 0% Zinc Intl (12)% Aluminium (
Slide 8: Oil & Gas
Oil & Gas Achieved Rajasthan Gross Production (bopd) Rajasthan block producing at c.175kbopd Potential resource estimated at 7.3 bn boe gross in-place Exploration success ratio c.50% Exploration success at Sri Lanka, KG Basin FY2012 R&R replacement ratio of 175% 9M FY2013 EBITDA - $1,859mn
Slide 9: Zinc India
Zinc India Refined Zinc – Lowest Quartile Cost Position Achieved Organic growth: 1mtpa zinc-lead, 16moz silver Zn Composite cost - c1 cash cost ($/t) 4500 capacity 3500 Sustained lowest quartile cost position 2500 HZL 25+year mine life with 10%+ grades 1500 ($383/t) 500 9M FY2013 EBITDA - $7
Slide 10: Zinc International
Zinc International Achieved 2012e Production (kt) Mine Life Business acquired in FY2011, stable operating Rampura-Agucha 25+ performance Red Dog R&R: Mine life extended at all three assets Century Sichuan Other 9M FY2013 EBITDA - $214mn Mount Isa Pb/Zn Antamina San Cristobal Focus Brunswick
Slide 11: Iron Ore
Iron Ore Achieved Vedanta Liberia Iron Ore India Asset Type 374mt total R&R, 68mt net addition in FY2012 Mano River Brownfield Bea Mountain Greenfield Significant expansion since acquisition in FY2007 Bomi Hills Brownfield Sustained lowest quartile cost position Pig Iron & Met Coke Plant expansion
Slide 12: Aluminium
Aluminium Achieved Aluminium - Lower Half Cost Position 2nd quartile cost position without captive bauxite for last 4 quarters 3000 Al Composite cost - c1 cash cost ($/t) 2500 Smelters operating above rated capacity Average COP ($1,913/t) 2000 Improving trend in power consumption 1500 VAL achieved
Slide 13: Power
Power Achieved Power Generation ( in million units) Sales growth driven by 2,400MW Jharsuguda power plant ramp-up 9000 Three 600MW units operating, 4th unit under trial 8000 run 7000 Strong cost performance: Cost of generation trend 6000 reflects benefits of plant stabilisation and improving 5000
Slide 14: Sustainability – Integral to our Business
Sustainability – Integral to our Business Health and Safety Focus on safety culture to eliminate fatalities due to low-probability high-impact events Climate Change Adopt and maintain global best practices on carbon and energy management and to minimise greenhouse gas emissions throughout our op
Slide 15: Key Strategic Priorities
Key Strategic Priorities Complete Sesa Sterlite merger Deliver industry-leading production growth across our portfolio Continue to add reserves and resources to drive long-term value Free cash flow to reduce gearing Minority buyouts of HZL and BALCO Long-Term Value Creation with a Focus on
Slide 16: Appendix
Appendix
Slide 17: Wide Geographic Footprint
Wide Geographic Footprint India South Africa Zinc-lead-silver • Debari smelter Zinc-lead-silver • Chanderiya smelters • Black Mountain • Rampura-Agucha mine • Gamsberg Oil and Gas • Rajpura mine / smelter • Rajasthan • Zawar mine • Cambay • Sindesar Khurd mine • Ravva • Vizag zinc smelter Namibia •
Slide 18: Proposed New Group Structure
Proposed New Group Structure Vedanta Resources Divisions of Sesa Sterlite 79.4% 58.3% Iron Ore (Sesa Goa) Konkola Copper Smelting (Tuticorin) Copper Sesa Sterlite Mines (KCM) Power (2,400MW Jharsuguda) Aluminium (VAL aluminium assets) Subsidiaries of Sesa Sterlite 58.8% 64.9% 51% 100% 100% 1
Slide 19: Vedanta Group Structure
Vedanta Group Structure Vedanta Resources (Listed on LSE) 79.4% 70.5% 54.6% 94.8% 55.1% 38.7% Konkola Vedanta 29.5% Sterlite Industries 3.6% Madras Sesa Goa 20.1% Cairn India Ltd Copper Aluminium (Listed on BSE, Aluminium (Listed on BSE (Listed on BSE Mines (KCM) (VAL) NSE and NYSE) (MALCO) and NSE)
Sesa Sterlite — Investor Presentation (February 2013) on 6ix