Vedanta Limited · NSE:VEDL
Vedanta — Merger or Acquisition (June 2015)
24 slides from Vedanta's merger presentation, Jun 14, 2015
Slide 1: Merger of Vedanta Limited and Cairn India Limited to Create Shareholder Value
Merger of Vedanta Limited and Cairn India Limited to Create Shareholder Value 14 June 2015 Conference call and webcast details on the last page
Slide 2: Cautionary statement and disclaimer
Cautionary statement and disclaimer This presentation has been prepared by Vedanta Resources plc ("Vedanta"), Vedanta Limited ("Vedanta Limited") and Cairn India Limited ("Cairn India") for information purposes only in relation to a potential merger involving Vedanta Limited and Cairn India (the "Tr
Slide 3: Cautionary statement and disclaimer (cont’d)
Cautionary statement and disclaimer (cont’d) The information contained in these materials has not been independently verified. None of Vedanta, Vedanta Limited or Cairn India, or any of its or their shareholders, subsidiaries, affiliates, associates, or their respective directors, officers, partners
Slide 4: Transaction overview and rationale
Transaction overview and rationale
Slide 5: Transaction highlights
Transaction highlights Board approved merger of Vedanta Limited and Cairn India Limited Cairn India Limited minority shareholders will receive for each equity share held: o One equity share in Vedanta Limited o One 7.5% Redeemable Preference Share in Vedanta Limited with a face value of Rs. 10
Slide 6: Strategic Rationale
Strategic Rationale Diversified portfolio de-risks earnings volatility and drives stable cash flows through cycle Improved ability to allocate capital to highest return projects Greater financial flexibility to sustain strong dividend distribution Cost savings and potential re-rating to bene
Slide 7: Benefits to Cairn India shareholders
Benefits to Cairn India shareholders Attractive terms for Cairn India shareholders The diversified commodity model has generated superior shareholder returns Earnings de-risked through diversification 2005 – 2015 Total Shareholder Return (INR) Stable cash flows supporting investment and 120% 1
Slide 8: Vedanta and Cairn India remain fully committed to the growth strategy in Oil & Gas
Vedanta and Cairn India remain fully committed to the growth strategy in Oil & Gas • MBA, Ravva, Cambay - Low cost, high margin, resilient to price volatility World class Assets • Rajasthan – Core to the enlarged Group • FY16 Focus: Good progress on Gas, Mangala & Aishwariya Barmer Hill (Phase 1) &
Slide 9: Diversified portfolio delivering stable margins through the cycle
Diversified portfolio delivering stable margins through the cycle Diversified earnings (EBITDA contribution by commodity) Stable EBITDA margin % EBITDA margin H2 FY 2015 Cairn India Limited Vedanta Limited² 90% Power 80% 3% Aluminium Oil & Gas 70% 14% 28% 60% Copper 47% 50% India 11% 40% 35% Zinc In
Slide 10: Well invested assets providing strong near-term growth
Well invested assets providing strong near-term growth Vedanta: set to deliver near term growth as latent Total Production (copper equivalent kt)3 capacity ramps up 2,500 Zinc-Lead Silver Copper Contribution to copper % capex Aluminium Power Iron Ore equivalent 80% 90% 37% 1% 36% invested Oil & Gas
Slide 11: Transaction economics and process
Transaction economics and process
Slide 12: Key transaction terms
Key transaction terms Cairn India Limited public shareholders will receive for each equity share held: o One equity share in Vedanta Limited o One Redeemable Preference Share (RPS) in Vedanta Limited with a face value of Rs. 10 o Dividend: 7.5% p.a. o Tenure: 18 months o Listing: NSE o Redeemable
Slide 13: Simplified group structure
Simplified group structure Vedanta Limited and Vedanta plc to retain existing listings on respective exchanges o Vedanta plc: Premium LSE Vedanta plc (Listed on LSE) o Vedanta Limited: BSE, NSE, NYSE (ADRs) Pro-forma Vedanta plc ownership in Vedanta Limited of 50.1% Vedanta Limited Konkola (List
Slide 14: Transaction governance
Transaction governance Unanimously approved by the non-conflicted, independent Board members of Vedanta Limited, Cairn India and Vedanta plc o Independent sub-committee of non-conflicted Directors at both Cairn India Limited and Vedanta Limited to oversee the transaction Exchange ratio determine
Slide 15: Transaction approvals
Transaction approvals Stock exchange (NSE and BSE) and SEBI approval High Court and other regulatory approvals in India for Scheme of Arrangement Vedanta Limited and Cairn India Limited Shareholder approvals o Listing requirements: majority of minority (Vedanta plc and Vedanta Limited India ca
Slide 16: Summary
vedanta Summary
Slide 17: Long term sustainable value enhancement for ALL shareholders
Summary Cairn India shareholders Vedanta Ltd & Vedanta plc shareholders Attractive transaction terms Further simplification of Group structure in line with stated Group strategy Exposure to Vedanta Limited’s world class Reinforces Vedanta Limited’s position as metals and mining assets – low
Slide 18: Unique investment proposition for India’s economic growth
Unique investment proposition for India’s economic growth The only diversified Indian natural resources company of scale Uniquely positioned to develop India’s world-class endowment of natural resources Critical to the supply of raw materials to sustain India’s economic growth Commitment to
Slide 19: Appendix
vedanta Appendix
Slide 20: Transaction timetable
Transaction timetable Key Events Expected date BSE, NSE and SEBI approvals sought Q2 2015 BSE, NSE and SEBI approvals Q3 2015 Vedanta plc posting of UK Circular Q3 2015 Application to High Court in India Q3 2015 Vedanta plc EGM Q3 2015 Vedanta Limited and Cairn India shareholder meetings Q4 2015 For
Slide 21: Vedanta Limited Overview
Vedanta Limited Overview 23 25 6 15 23. Lisheen mine, Ireland 3 15 14 26 4 2 27 1 14 28 20 13 13 5 13 25. Iron Ore project, Liberia 20 7 26. Skorpion mine, Namibia 12 27. Black Mountain mine, South Africa 1. Debari smelter 28. South Africa Block 1 16 24 2. Chanderiya smelters 16 3. Rampura Agucha mi
Slide 22: Tier-1 Asset Portfolio
Tier-1 Asset Portfolio FY2015 Positioning R&R Life1 Production Capacity2 Oil & Gas (Cairn India) 3 Top 20 global independent E&P; Platts 2013: Fastest growing 15 212kboepd 225 + kboepd energy company globally Zinc India (HZL) nd 25+ 887kt 1.2mtpa 2 largest integrated zinc producer globally Silver (H
Slide 23: Pro forma 2015 financials
Pro forma 2015 financials Vedanta Limited consolidated Vedanta Limited consolidated (Rs. crore) pro-forma (Rs. crore) EBITDA 22,226 22,226 Operating profit 15,074 15,817 Profit after tax 10,183 10,927 Minority interest 5,127 2,489 Attributable to equity holders 5,060 8,442 EPS Rs. 17.1 Rs. 22.7 Gros
Slide 24: Conference call details
Conference call details There will be two conference calls : • Sunday, 14 June 2015: 5:30 PM IST (1PM UK time, 8AM NY time) – also available by webcast • Monday, 15 June 2015: 5:30 PM IST (1PM UK time, 8AM NY time) The dial-in numbers for both the calls are the same and are given below: Event Teleph