Slide 1: Vedanta Ltd.
Vedanta Ltd. Navin Agarwal Executive Chairman November 2016
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from statements. We do not undertake to update our forward-looking publicly available sources that have not been independently verified. statements. We caution you that reliance on any forward-looking statem
Slide 3: Vedanta is well-positioned to deliver long-term shareholder value
Vedanta is well-positioned to deliver long-term shareholder value 1. India poised for strong growth with untapped resource potential 2. Vedanta has the right commodities in the right geography 3. Diversified portfolio provides attractive exposure to India’s growth 4. Executing significant production
Slide 4: India's economic position today is similar to China in the mid 2000s
India’s economic position today is similar to China in the mid 2000s India’s GDP today is similar to China in the mid-2000s • Indian GDP today similar to China’s in the mid-2000s 14.4 China ( GDP $tn 1991 to 2015) 12.8 India ( GDP $tn 2001 to 2025) 11.2 India’s GDP reached US$2tr in 2014 9.6 8.0 C
Slide 5: India has the resource base to support its growth
India has the resource base to support its growth India: Shared geology and India reserves ranking India’s share of global non-ferrous exploration spending very mineral potential with Africa Global Ranking1 based on low 34.8% 100% & Australia reserves 5th Coal R&R: 295 bn tonnes 0.2% 3% 3% 3% 6th Zi
Slide 6: Vedanta is well-positioned to deliver long-term shareholder value
Vedanta is well-positioned to deliver long-term shareholder value 1. India poised for strong growth with untapped resource potential 2. Vedanta has the right commodities in the right geography 3. Diversified portfolio provides attractive exposure to India’s growth Executing significant production gr
Slide 7: Vedanta well placed for the next cycle with exposure to late-cycle commodities
Vedanta well placed for the next cycle with significant exposure to “late-cycle commodities” and low exposure to China Late Stage Best Area Commodity 2020-2030 Vedanta Ltd Peer A Peer B Peer E India and Other China Focus High Growth Drivers Peer C Peer D Best Area 1990-2005 Early Stage Commodity Not
Slide 8: Vedanta is well-positioned to deliver long-term shareholder value
Vedanta is well-positioned to deliver long-term shareholder value 1. India poised for strong growth with untapped resource potential 2. Vedanta has the right commodities in the right geography 3. Diversified portfolio provides attractive exposure to India’s growth 4. Executing significant production
Slide 9: Large, low cost and diversified asset base
Large, low cost and diversified asset base Sustainable R&R Life Production Cost (years) (FY2016) Position Key highlights • India’s largest private-sector crude oil producer 46.9 Oil & Gas 15+ 1 First Quartile • Strong FCF generation even at low oil prices with opex of $6/bbl mmboe • Potential Oil pr
Slide 10: Diversified portfolio benefits from resilient margins
Vedanta portfolio benefits from diversification and has resilient margins Vedanta’s diversified portfolio significantly reduces volatility Aluminium Zinc Copper Iron Ore 62% Silver Brent Oil VED commodity Basket¹ 160 150 48% (01 Jan 2016 = 100) Commodity prices 40% 140 34% 130 33% Vedanta commodity
Slide 11: Vedanta is well-positioned to deliver long-term shareholder value
Vedanta is well-positioned to deliver long-term shareholder value 1. India poised for strong growth with untapped resource potential 2. Vedanta has the right commodities in the right geography 3. Diversified portfolio provides attractive exposure to India’s growth 4. Executing significant production
Slide 12: Growth underpinned by Aluminum, Power and Iron Ore
Growth underpinned by Aluminum, Power and Iron Ore Aluminium production (kt) Aluminium production Q2 exit run rate of 450 400 350 1.2mtpa 300 250 − Impacted by pot outages at Jharsuguda 200 150 100 50 0 and BALCO, but no significant change in Q4'16 Q1'17 Q2'17 Q4'17e full year guidance TSPL Produc
Slide 13: Vedanta is well-positioned to deliver long-term shareholder value
Vedanta is well-positioned to deliver long-term shareholder value 1. India poised for strong growth with untapped resource potential 2. Vedanta has the right commodities in the right geography 3. Diversified portfolio provides attractive exposure to India’s growth 4. Executing significant production
Slide 14: Strong Balance Sheet is underpinned by disciplined capital allocation
Strong Balance Sheet is underpinned by disciplined capital allocation Disciplined Capital Ramp-ups at Aluminium, Power and Iron ore to generate significant cash flows Allocation: Optimising capex, Continued optimization of Opex and Capex focus on FCF Strong liquidity with cash and liquid inves
Slide 15: Vedanta Ltd has a Best in Class Balance Sheet
Vedanta Ltd has a “Best in Class” Balance Sheet Credit profile for Global and Domestic Peers1 Domestic Peers (CRISL Ratings) 75% Global Peers (S&P Ratings) Peer B, AA Peer 6, BB- Peer C, AA- 65% Peer A , AA- 55% Peer D, AA- Gearing2 45% Peer 4, BBB- Peer 3, BB Peer 7, BBB- 35% Peer 5, B+ Peer E, AAA
Slide 16: Vedanta is well-positioned to deliver long-term shareholder value
Vedanta is well-positioned to deliver long-term shareholder value 1. India poised for strong growth with untapped resource potential 2. Vedanta has the right commodities in the right geography 3. Diversified portfolio provides attractive exposure to India’s growth 4. Executing significant production
Slide 17: Vedanta: Delivering on all fronts
Vedanta: Delivering on all fronts Ramping up production as guided − Focus on ramp-up at Aluminium, Power and Iron ore − On track for higher production in H2 at Zinc India Higher FCF driving deleveraging − Strong EBITDA margin at 39% − Continued focus on cost optimization and FCF generation Com
Slide 18: Appendix
SS vedanta Appendix
Slide 19: Group Structure
Group Structure Vedanta Resources Plc Divisions of Vedanta Limited 79.4% 62.9% Sesa Iron Ore Konkola Sterlite Copper (Tuticorin) Copper Vedanta Ltd Power (600 MW Jharsuguda) Mines (KCM) Aluminium (Odisha aluminium and power assets) Subsidiaries of Vedanta Ltd 59.9% 64.9% 51% 100% 100% 100% 1