Vedanta Resources — Investor Day (March 2015)
93 slides from Vedanta Resources's investor day presentation, Mar 20, 2015
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY March 2015
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived future integration of acquired businesses; and from from publicly available sources that have not been numerous other matters of national, regional and global independently verified. scale, including those o
Slide 3: Agenda
Agenda TIME EVENT TIME EVENT 8:30 AM Arrival and Registration 10:15 AM Break 9:00 AM Welcome 10:30 AM Aluminium and Power Business Ashwin Bajaj, Head - Investor Relations SK Roongta, CEO - Aluminium and Power Abhijit Pati, COO – Jharsuguda Operations Strategic Overview Tom Albanese, CEO 11:00 AM Oil
Slide 4: Strategic Overview
Strategic Overview Tom Albanese Chief Executive Officer
Slide 5: Focus on Safety: Key to Operational Excellence
Focus on Safety: Key to Operational Excellence Safety LTIFR (per million man-hours worked) Fatal accidents and injury rates have declined Implementing programs to eliminate fatalities and control injuries: 1.2 o Leadership focused on a Zero-Harm culture across the organization 1.0 0.86 0.83 o Consis
Slide 6: Preserve and Protect Our License to Operate
Preserve and Protect Our License to Operate Sustainable Development Community Development Implementing sustainability controls through Vedanta Benefitting over 4 million people through community Sustainability Framework aligned to IFC, ICMM & OECD development programmes standards Industry leading CS
Slide 7: Vedanta Overview
Vedanta Overview 23 25 6 15 26 23. Lisheen mine, Ireland 27 3 15 14 28 4 2 1 14 30 29 20 13 13 5 13 25. Iron Ore project, Liberia 20 7 26. 27. Konkola and Nchanga copper mines & Nchanga 12 smelter, Zambia 1. Debari smelter 28. Skorpion mine, Namibia 16 24 2. Chanderiya smelters 29. Black Mountain mi
Slide 8: Key Investment Highlights
Key Investment Highlights Diversified Business Model - 9M FY2015 EBITDA Competitive Position on Global Cost Curve Margins I II III IV Size of circle denotes EBITDA Mix Iron Ore contribution and % denotes Iron Ore Oil & Gas 69% 13% EBITDA margin in 9M FY2015. Copper 7% 1% Zinc Power Zinc India 55% In
Slide 9: Strategic Framework
Strategic Framework Strategic Advantages Strategic Priorities Diversified, low-cost portfolio delivering Production Growth and Operational Excellence cash flows through the cycle Reduce gearing Well-invested asset base Add Reserves & Resources Well-positioned to capitalise on India’s Simplify Group
Slide 10: Building Momentum on Delivering our Strategic Priorities
Building Momentum on Delivering our Strategic Priorities Strategic Priority What we Achieved Focus Areas Approvals and start-up of Aluminium and Oil & Gas: RJ ramp up Production growth across portfolio Power capacities Zinc India: Zinc and Silver ramp up with a focus on returns Iron Ore: Resuming op
Slide 11: India: Non-Linear Commodity Demand Growth
India: Non-Linear Commodity Demand Growth Copper Consumption Intensity Steel Consumption Intensity Copper consumption per capita (in kg) vs. GDP per capita (in ‘000 USD) Steel consumption per capita (in tonnes) vs. GDP per capita (in ‘000 USD) 16.0 Steel (tonnes per capita) Copper (kg) per capita 14
Slide 12: India: Resource Potential
India: Resource Potential India: Shared geology and mineral India: Reserves ranking Low E&P Activity in India in Oil & Gas potential with Africa & Australia Global ranking¹ 2,000 Active Rigs 1,771 1,800 5th Coal 1,600 R&R: 295 bn tonnes 1,400 1,200 6th Zinc 1,000 827 R&R: 50 mn tonnes 800 600 372 7t
Slide 13: India – Regulatory Updates
India – Regulatory Updates Oil & Gas Government prioritizing energy security − Received FDP approval from management committee for Raag Deep Gas Project − New incentive regime - evaluating revenue sharing models “It is no secret that the major slippage in the last decade − Uniform licensing policy f
Slide 14: Production Growth From Well-Invested Assets
Production Growth From Well-Invested Assets Total Production (copper equivalent kt) 3,000 Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas 2,500 Copper equivalent production (kt) 2,000 1,500 1,000 500 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Near Near PF1 Term Term Notes: A
Slide 15: Technology and Innovation: Philosophy and Approach
Technology and Innovation: Philosophy and Approach Achievements Lanjigarh o World’s first Red Mud Powder PHILOSOPHY Technology: For use in cement APPROACH AND CULTURE industries, driving savings of $15/t of Alumina • Encouragement for • R&D laboratory and o World’s first Cold-Setting Geo- innovation
Slide 16: Procurement: Savings and Synergies
Procurement: Savings and Synergies Key initiatives: Improve procurement unit Improve quality, Improve performance of PROCUREMENT prices processing & technology our operations Optimizing supplier Optimize products to best Reduction in portfolio & combining fit our assets (e.g. after- treatments and p
Slide 17: Marketing: Savings and Synergies
Marketing: Savings and Synergies Key initiatives: Improve unit pricing of Extend our product range Expand in or enter new MARKETING our supply & market coverage markets Parity pricing with Expand product range & Widen our access to the international references specs suited to customer international
Slide 18: People and Development
People and Development Healthy Demographics with a ratio of 1:2 of permanent Leadership and temporary employees Pyramid Total Employee Strength of over 80,000 Group Exco Professional Employee Strength: 11000+ 13 members STAR of Business: 800+ High Potential Employees 8% Female Strong commercial and
Slide 19: Financial Overview
Financial Overview D.D. Jalan Chief Financial Officer
Slide 20: Capital Allocation and Returns
Capital Allocation and Returns World class assets and operational excellence to deliver strong and sustainable cash flows Improve Capacity Utilisation (Aluminium, Power, Iron Ore and Copper Zambia) Strong Shareholder Returns Strengthen Balance Sheet Enhance Asset Portfolio since IPO • Optimising cap
Slide 21: Capex optimisation to drive Cash Flow Generation
Capex optimisation to drive Cash Flow Generation Continued growth in Free Cash Cash Flow and Growth Capex Profile - $bn Flow with production ramp-up o $600mn free cash flow Free Cash Flow-FY² 1 M&M Capex Zinc Capex O&G Capex¹2 (post growth capex) in 9M 3.5 FY2015 Prioritised capital to high- 3.1 3.0
Slide 22: Strong Financial Profile
Strong Financial Profile • Credit rating of BB/Ba31 Diversified Funding Sources (as of 31 December 2014) • Cash and Liquid Investments of $8bn, additional 8% Bonds-USD $0.9bn undrawn committed lines of credit Bonds-INR 25% • Gross debt reduced by $400mn and net debt reduced 24% by $200mn in Q3 FY201
Slide 23: Summary: Financial Review
Summary: Financial Review Disciplined Group Focused on Deleveraging Cost Savings Capital Structure shareholder Allocation: Simplification returns and Optimising progressive capex, focus on dividends FCF 23 CAPITAL MARKETS DAY, MARCH 2015
Slide 24: Copper Zambia, Copper India and Iron Ore
Copper Zambia, Copper India and Iron Ore Tom Albanese Chief Executive Officer Steven Din CEO, KCM
Slide 25: Copper Zambia: Overview
Copper Zambia: Overview KCM is a major employer, with nearly 16,000 employees and contractors Konkola (Chililabombwe) o Nchanga mine is the largest mine in the Underground mine with 3 shafts Copperbelt, based on historical (KDMP) production Zambia New Concentrator o A mainstay of the towns of Chingo
Slide 26: Copper Zambia: Operational Turnaround in Progress
Copper Zambia: Operational Turnaround in Progress Vedanta committed to improving KCM operating Top 20 copper mines by contained copper (mt) performance o Konkola: Large, long-life, high-grade Copper mine Pivot strategy being implemented at Konkola o Focus on three profitable areas for production o S
Slide 27: Copper India
Copper India One of the most efficient custom smelters globally, Smelter operating at benchmark parameters located in Tuticorin, India o Achieved world benchmark of ISA Campaign life o 400kt Cathode, with a capacity to make 250 kt of of 1380 days value added rods o 1.3 mtpa Sulphuric Acid; c.50% use
Slide 28: Iron Ore
Iron Ore Goa Operations Further opportunities Average Fe Grade: 56% Consolidation in Indian Iron Ore industry under the new Integrated infrastructure with proximity to port & competitive MMDR provisions COP Opening up of new areas for exploration under Aggressive cost reduction initiatives underway
Slide 29: Summary
Summary Production Growth across portfolio with a focus on returns Reduce Gearing from increasing free cash flow Continue to add R&R in our existing portfolio of assets to drive long-term value Consolidation and simplification of the Group structure Protect and preserve our License to Operate Focuse
Slide 30: Appendix
Appendix 30 CAPITAL MARKETS DAY, MARCH 2015
Slide 31: Entity Wise Cash and Debt
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 32 711 733 10 723 813 0 813 Sesa Sterlite Standalone 5,116 598 4,518
Slide 32: Credit Metrics
Credit Metrics LTM H1 FY2014 LTM H1 FY2015 Covenant Net Debt/EBITDA 1.9x 2.1x < 2.75x EBITDA/Net Interest Expense1 7.9x 9.2x > 4.0x Net Assets/Debt 2.31x 2.28x > 1.75x Gearing2 33.3% 34.9% Notes: 1. Interest includes Capitalized Interest. 2. Gearing is calculated as Net Debt divided by the sum of Ne
Slide 33: Group Structure
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) Subsidiaries of Sesa Sterlite 59.9% 64.9% 51% 100% 100% 100% 100% 100% Skorpion
Slide 34: Capital Markets Day: Hindustan Zinc Ltd
CAPITAL MARKETS DAY Hindustan Zinc Ltd March 2015
Slide 35: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived future integration of acquired businesses; and from from publicly available sources that have not been numerous other matters of national, regional and global independently verified. scale, including those o
Slide 36: Hindustan Zinc - A Sustainable Enterprise
Hindustan Zinc - A Sustainable Enterprise Rampura Agucha: Largest zinc mine globally 2nd Largest zinc-lead miner globally with 10mt+of ore production capacity 4th Largest zinc-lead smelter globally: 1mt of production capacity R&R base of 365 mt: mine life of 25+ years Pandit Jawahar Lal Nehru admire
Slide 37: Safety & Sustainability
Safety & Sustainability Safety Fatalities LTIFR 7 7 (per million man-hours worked) Zero harm to people, host communities and 6 environment 2.29 2.15 70% 1.95 Safety cultural transformation journey from 4 reactive to interdependent; engagement with 2 2 1.01 0.88 Dupont 0.67 Integrated safety organisa
Slide 38: World Class Mining & Smelting Assets
World Class Mining & Smelting Assets Rampura Agucha Mine Reserves : 57.5mt Chanderiya Smelting Complex Resources : 51.9mt Pyrometallurgical Lead Zinc Smelter: 105,000 tpa Reserve Grade : Zn 13.7%, Pb 1.8% Zinc and 35,000 tpa Lead Current Ore Capacity : 6.15 mtpa Hydrometallurgical Zinc Smelter: 420,
Slide 39: Strong Track Record of Growth
Strong Track Record of Growth Reserves & Resources (mt) – 2.5X Growth Mined Metal Production (kt) – 3X Growth 880 870 365 840 830 348 769 106 110 332 735 88 92 313 86 299 629 84 272 572 532 78 232 210 67 239 261 409 60 178 223 165 197 216 364 146 183 298 54 752 739 765 770 133 152 47 651 683 109 36
Slide 40: Expansion Projects
Expansion Projects Projects Resource driven growth Current Capacity (mtpa) Six major projects to increase mined metal Capacity Addition (mtpa) capacity by 20% to 1.2 mtpa, including replacement of RAM OC 3.8 Total capex of $1.5 billion, out of which ~$0.5 bn 3.75 1.75 is spent 0.3 2 0.65 1.2 0.5 Exp
Slide 41: Rampura Agucha Mine
Rampura Agucha Mine Open Pit Ultimate Pit Depth: 420 meters from surface Added: Added legend for clarity of current Open pit Mine Life: FY 2019-20 depth and pit extension Open Pit To Feb 2015 UG Mine Production Capacity: 3.75 mtpa Mine Life: +20 years R&R: 44.7 mn tonnes & 51.9 mn tonnes Main Declin
Slide 42: Sindesar Khurd Mine
Sindesar Khurd Mine Declines Vent. Raise Vent. Raise Production Shaft Ore & Waste Passes Salient Features Access to mine: Through two ramps Method of working: Blast hole open stoping LHS with back filling Underground Crusher Ore hauling: Ramps & shaft & Loading Stations Mine ventilation: Two ventila
Slide 43: Global Refined Zinc Market Overview
Global Refined Zinc Market Overview Refined Market Balance Emerging Markets Driving Demand 100% ‘000 mt 90% 18000 80% 17000 70% EM share in 60% global demand to 16000 50% increase 10% in 10 years 40% 15000 20102011201220132014201520162017201820192020 Emerging Markets Developmed Economies 14000 Sourc
Slide 44: Mine Production Outlook
Mine Production Outlook Concentrate Deficit to Support Price ‘000 mt 800 600 2018 400 Dugald River (210 kt/a) Gamsberg (250kt/a) 200 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 -200 2013 Brunswick closed (250 kt/a) 2015 Perseverance closed (100 kt/a) -400 Century closure (500kt/a) Lishe
Slide 45: Hindustan Zinc Summary
Summary Leading the way with fully integrated operations Core Strengths Among the lowest cost producers of zinc Zinc Mine Composite Costs Curve Captive mines with R&R base of 365.1 1 million tonnes ensuring mine life of 25 years 2500 Glencore Xstrata 2250 Nyrstar MMG Limited 2000 Boliden C1 Cash Cos
Slide 46: Capital Markets Day: Zinc International
CAPITAL MARKETS DAY Zinc International March 2015 13
Slide 47: Safety and Sustainability
Safety and Sustainability Safety Fatalities LTIFR (per million man-hours worked) ‘Zero Harm’ is a core value 2.50 3 2.01 Robust ground control management plan 2.00 1.85 1.80 2 ‘Zero Incident Process’ implementation- 2 1.50 1.32 behavioural safety intervention 1 1.00 1 Visible felt leadership and man
Slide 48: Zinc International – Proven Assets
Zinc International – Proven Assets Black Mountain Mine, South Africa Skorpion Zinc Mine and Refinery Lisheen Mine, Ireland Reserve – 11.7mt @ 2.6% Zn, 2.8% Largest integrated zinc operation in Mine coming to end of its life in mid Pb (74% att.) Africa, Located in Namibia FY16 Underground polymetalli
Slide 49: Age of mines provides challenges & opportunities
Age of mines provides challenges & opportunities Life of Mine Reserve Grade (Zn) Production cost 150 150 130 130 Indexed to 100 Index to 100 BMM (Deeps) 110 110 Lisheen 90 90 70 70 Skorpion 50 50 FY2012 FY2013 FY2014 FY2015 2010 2012 2014 2016 2018 2020 2022 BMM (Deeps & Swartberg) Skorpion Lisheen
Slide 50: Skorpion LoM Extension
Skorpion LoM Extension W E Current pitshell Pit 103 - Current Life of Mine Proposed New Push back(Pit 112- 2014 LOM) Pit bottom 350RL Pit bottom 290RL Remaining reserves of 3.75mt @ 9.32% and 67.1 Reserve increases to 5.3mt @ 8.63% Zn and 115 mt waste mt waste Life Of Mine 1 year 7months Additional
Slide 51: Gamsberg – Large, Scalable Resource
Gamsberg – Large, Scalable Resource Gamsberg East 1 Gamsberg Project 3 Underground o 13 year mine life with o Underground option for further 150mt of Gamsberg East 2.5 Mtpa resources available o Possible expansion of o Current project 4.4 Mtpa underground by using ROM; 250 ktpa Zn MIC sub-level cavi
Slide 52: A world class zinc district
A world class zinc district Rosh Pinah Cluster African Zn Deposits by size 1 1 Contained Zn pre mining Aggeneys Cluster Opportunity to develop our integrated zinc/lead business in southern Namibia and the Northern Cape of South Africa o Centred around a zinc smelter/refinery complex sourcing feed fr
Slide 53: Summary
Summary Underground operations at BMM Strategic Priorities Creating a regional Zinc Complex around BMM and Skorpion o Southern African region to become one of the most important suppliers of refined zinc globally Near Term Focus Gamsberg Project execution to partially offset the loss of production f
Slide 54: Capital Markets Day: Aluminium and Power Business
CAPITAL MARKETS DAY Aluminium and Power Business March 2015
Slide 55: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived future integration of acquired businesses; and from from publicly available sources that have not been numerous other matters of national, regional and global independently verified. scale, including those o
Slide 56: Strategically Located Assets
Strategically Located Assets India Bauxite and Coal Resource Jharsuguda Capacity Odisha Chhattisgarh Others 3,615 MW 301 bn t 3 bn t 41% 1.75 mt 58% 3,615 1.25 5% 0.5 18% Aluminium Power 55% 25% Capacity under Operational Chhattisgarh Commissioning 3 Coal Bauxite 1 Alumina Refinery Capacity 2 BALCO
Slide 57: Safety and Sustainability
Safety and Sustainability Safety Fatalities LTIFR (per million man-hours worked) Improvement in LTIFR Structural stability studies 0.5 9 8 Fostering behaviour based safety culture 0.4 Contract workmen safety through skill 6 0.3 0.28 enhancement and competency mapping 0.22 0.20 0.2 3 2 1 0.1 0 0.0 Su
Slide 58: Low Cost Position Leading to Strong EBITDA
Low Cost Position Leading to Strong EBITDA Cost of Production (in $/t) Aluminium Costs and Margins (in $/t, for 9M FY2015) 399 77 2,396 1,920 Captive bauxite can significantly reduce this (737) 2,091 1,879 1,793 (688) 504 1,658 (368) (59) (38) LME Ingot Value Total Alumina Power Other Hot Ingot Valu
Slide 59: Aluminium Market Scenario and our positioning
Aluminium Market Scenario and our positioning LME + Premium ($/t) Diversified Markets 3,000 2,500 116 206 399 250 11% 2,000 4% 1,500 5% India 2,313 1,000 1,974 1,920 Mexico 1,773 500 10% Korea Bulgaria - FY 12 FY 13 FY 14 YTD 9MFY FY 15 15 61% Croatia 11% Others LME ($ / MT) MJP premium ($ / MT) Pro
Slide 60: Roadmap to 2.3 mt Aluminium production
Roadmap to 2.3 mt Aluminium production FY 16 Exit FY 16 Exiting Capacity Capacity Additional Capacity Grand total Aluminium Balco1 JSG1 Balco2 JSG2 JSG2 JSG2 JSG2 245kt 500kt 325kt 312kt 312kt 1.7mt 2.3mt 312Kt 312 t Lanjigarh Imports Lanjigarh Lanjigarh Alumina 3.4mt 5.0mt 1mt 1.4mt 1mt 1 3mt Capti
Slide 61: Korba and Jharsuguda Smelters
Korba and Jharsuguda Smelters Korba 245kt smelter commissioned in 2005 325kt smelter: 80kt commissioned, balance capacity to be operational in FY 2016 Capacities integrated with captive power Jharsuguda 500kt smelter commissioned in 2008 1.25mt smelter: o 40kt commissioned o 50% of 1.25mt capacity t
Slide 62: Lanjigarh Refinery and Bauxite Sourcing
Lanjigarh Refinery and Bauxite Sourcing Refinery Strategically located: >50% of India’s Bauxite R&R in Odisha 1mt operational since 2007 Production to be ramped up to 2mt in FY2016, EC expected shortly Capacity to be taken up to 5mt in phases 100% captive power Bauxite Sourcing Captive Bauxite from
Slide 63: Power Plants
Power Plants Jharsuguda Power Plants Strategically located: >40% of India’s 300bn tonnes coal R&R in Odisha and Chhattisgarh Infrastructure: Rail connection with eastern ports for handling imported coal 2,400MW: PLF to be ramped up in FY16 as 1.25mtpa smelter ramps up 9M FY2015 Coal mix: 56% linkage
Slide 64: Coal Block Auctions
Coal Block Auctions Government issued ordinance on auctions of coal blocks 31 mines awarded following auctions in 2 phases BALCO won Chotia Coal Block in Chhattisgarh, agreement signed with the Government — R&R of 15.53mt and extractable capacity of 1mtpa — Open cast + Underground mine — 70km from B
Slide 65: Summary
Summary Well-invested, strategically located assets close to raw material resources Smelters with integrated captive power Starting up 1mt Aluminium capacity in FY2016 to exit the year at 1.7mt Regulatory developments facilitating raw material security Focus on maintaining strong EBITDA margins 12 C
Slide 66: Appendix
Appendix 13 CAPITAL MARKETS DAY, MARCH 2015
Slide 67: Awards & Accolades – 2014
Awards & Accolades – 2014 1 CII National HR Excellence Award to Sesa Sterlite Limited, Jharsuguda Frost & Sullivan’s Green Manufacturing Excellence Award-2014 in Challengers Category 2 to Sesa Sterlite Limited, Jharsuguda 3 Gold Award in Indian Manufacturing Excellence Awards by Frost to BALCO in th
Slide 68: Capital Markets Day: Cairn India Ltd
CAPITAL MARKETS DAY Cairn India Ltd March 2015
Slide 69: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived future integration of acquired businesses; and from from publicly available sources that have not been numerous other matters of national, regional and global independently verified. scale, including those o
Slide 70: Agenda
Agenda Company overview Growth strategy in current environment Near term Outlook 3 CAPITAL MARKETS DAY, MARCH 2015
Slide 71: Safety and Sustainability
Safety and Sustainability Vocational training for women • Safety • Top decile performance globally* - LTI FR 0.16 • Continued emphasis on process and controls • Sustainability • Partnered with Government of Rajasthan for improving sanitation • ‘Any time water’ kiosks provide safe and clean drinking
Slide 72: India offers significant growth opportunities
India offers significant growth opportunities Low Per Capita Energy Consumption Positive policy measures Tonnes of Oil equivalent per year India China World • Domestic natural gas price reforms 3.0 2.1 2.1 • Reforms to simplify PSC execution 1.9 1.1 0.6 Untapped opportunity Current1 2040 Growing Oil
Slide 73: Cairn India – well positioned for the opportunity
Cairn India – well positioned for the opportunity Assets: Diverse geological basins and environments World Class Resource Base • Nine blocks with net acreage of ~41,000 km2 • Hydrocarbon Initially in Place of 6.1 bn boe • Three core producing blocks - 1 onshore: Rajasthan, 2 • 2P* Reserves and 2C Re
Slide 74: Our value creation journey
Our value creation journey 7 CAPITAL MARKETS DAY, MARCH 2015
Slide 75: Leveraging strengths: Low cost, Technology, Operational excellence
Leveraging strengths: Low cost, Technology, Operational excellence • Pioneering technology adoption Competitive F&D costs 3,000 • Hydro-fracturing technology – In partnership with world class service providers 2,500 2P Reserves (Mmbbls) 1,000 500 Cairn 0 0 5 10 15 20 25 35 40 45 50 F&D cost per barr
Slide 76: Agenda
Agenda Company overview Growth strategy in current environment Near term Outlook 9 CAPITAL MARKETS DAY, MARCH 2015
Slide 77: Rich set of growth options at all crude price scenarios
Rich set of growth options at all crude price scenarios Five Key Strategic Themes Positive Free Cash Flows • Post capex and dividend payout Core fields continue to • MBA, Ravva, Cambay - Low cost, high margin, resilient to generate cash price volatility Areas of Growth • Gas, Barmer Hill, Exploratio
Slide 78: Rajasthan: Prolific block with significant growth upside
Rajasthan: Prolific block with significant growth upside ~3,111 km2 block with rich set of options Multiple formations and play types Akli ~40 km Thumbli Bhagyam (B) Dharvi Dungar Core Mangala (M) fields Aishwariya (A) Barmer Hill M B A Fategarh Volcanics Prospective BH fields Fractured Mesozoic & b
Slide 79: RJ: Core MBA onshore fields resilient with low cost, high margin
RJ: Core MBA onshore fields resilient with low cost, high margin HIIP: ~2.2 bn boe, Target recovery rate: 50% Enhanced brownfield development Invested development capex of US$4.8 bn in 10 years MPT modifications Sustaining production • Brownfield expansions, Facility upgrade • Upgraded fluid handlin
Slide 80: RJ: Focus on building Gas business to boost growth
RJ: Focus on building Gas business to boost growth Production potential (Incl NGLs): 15-20,000 boepd Raag Deep Gas field – Project status Commissioning of Compressors and Equipment • Holds significant potential of 1-3 Tcf of GIIP • Estimated recovery of 50% • Commissioning of compressors underway to
Slide 81: RJ: Experiential learnings in Barmer Hill provide options to scale up
RJ: Experiential learnings in Barmer Hill provide options to scale up Prospective Barmer Hill Fields in initial phase Leveraging technology and existing infrastructure • Strategic partnerships to provide commercially DP-1 feasible solution NL Mangala BH • Pioneering North American technology adoptio
Slide 82: RV and CB: Maximizing value at core offshore fields
RV and CB: Maximizing value at core offshore fields Offshore assets continue to see success.. Performing better than expectations • HIIP: 884 mmboe as on 31st March, 2014 Ravva: Example of world-class recovery • Maintaining production at low costs Cum Production (mmboe) Oil (kboepd) Gas (kboepd) As
Slide 83: Agenda
Agenda Company overview Growth strategy in current environment Near term Outlook 16 CAPITAL MARKETS DAY, MARCH 2015
Slide 84: Cairn to defer FY16 Capex; Revising from US$1.2 bn to US$500 mn
Cairn to defer FY16 Capex; Revising from US$1.2 bn to US$500 mn FY 15 Capex Spend FY 16 Capex Plan (9M Actual + 3M Estimate) US$1.1 bn US$500 mn • High return capex investments made in FY15 totaling $1.1 bn • MBA Sustenance • M&A Barmer Hill pilot • Mangala • Mangala • Satellite Fields Polymer EOR P
Slide 85: Appendix
Appendix 18 CAPITAL MARKETS DAY, MARCH 2015
Slide 86: Application of hydraulic fracturing technology at BH
Application of hydraulic fracturing technology at BH A truck injects a Hydrocarbons flow mix of sand, water Hydrocarbons out of the well and chemicals into piped to market the well Truck delivers water for the fracturing process Recovered water is stored in open pits, then taken to treatment plant S
Slide 87: Copper Zambia, Copper India and Iron Ore
Copper Zambia, Copper India and Iron Ore Tom Albanese Chief Executive Officer Steven Din CEO, KCM
Slide 88: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived future integration of acquired businesses; and from from publicly available sources that have not been numerous other matters of national, regional and global independently verified. scale, including those o
Slide 89: Copper Zambia: Overview
Copper Zambia: Overview KCM is a major employer, with nearly 16,000 employees and contractors Konkola (Chililabombwe) o Nchanga mine is the largest mine in the Underground mine with 3 shafts Copperbelt, based on historical (KDMP) production Zambia New Concentrator o A mainstay of the towns of Chingo
Slide 90: Copper Zambia: Operational Turnaround in Progress
Copper Zambia: Operational Turnaround in Progress Vedanta committed to improving KCM operating Top 20 copper mines by contained copper (mt) performance o Konkola: Large, long-life, high-grade Copper mine Pivot strategy being implemented at Konkola o Focus on three profitable areas for production o S
Slide 91: Copper India
Copper India One of the most efficient custom smelters globally, Smelter operating at benchmark parameters located in Tuticorin, India o Achieved world benchmark of ISA Campaign life o 400kt Cathode, with a capacity to make 250 kt of of 1380 days value added rods o 1.3 mtpa Sulphuric Acid; c.50% use
Slide 92: Iron Ore
Iron Ore Goa Operations Further opportunities Average Fe Grade: 56% Consolidation in Indian Iron Ore industry under the new Integrated infrastructure with proximity to port & competitive MMDR provisions COP Opening up of new areas for exploration under Aggressive cost reduction initiatives underway
Slide 93: Summary
Summary Production Growth across portfolio with a focus on returns Reduce Gearing from increasing free cash flow Continue to add R&R in our existing portfolio of assets to drive long-term value Consolidation and simplification of the Group structure Protect and preserve our License to Operate Focuse