Vedanta Limited · NSE:VEDL

Vedanta — Credit Suisse Asian Investment Conference 2018

32 slides from Vedanta's conference presentation, Mar 28, 2018

  1. Slide 1: Vedanta Limited – Credit Suisse Asian Investor Conference

    Vedanta Limited Credit Suisse Asian Investor Conference March 2018 Elements for a Sustainable Future VEDANTA LIMITED – OIL & GAS | ZINC | POWER | ALUMINIUM | IRON ORE | COPPER VEDANTA LIMITED – Credit Suisse Asian Investment Conference Presentation, March 2018

  2. Slide 2: Cautionary Statement and Disclaimer

    Cautionary Statement and Disclaimer The views expressed here may contain information derived from statement involves risk and uncertainties, and that, although we publicly available sources that have not been independently verified. believe that the assumption on which our forward-looking statements

  3. Slide 3: Vedanta - A World-Class Natural Resources Powerhouse

    Vedanta - A World-Class Natural Resources Powerhouse Overview Group Structure  World’s 6th largest diversified resources company and the largest in India Vedanta  Portfolio of large, diversified, structurally low-cost assets Resources geared towards base metals and oil Plc Divisions of Vedanta Lim

  4. Slide 4: Key Investment Highlights

    Key Investment Highlights 1 2 Large & diversified asset base with an Ideally positioned to capitalise on attractive commodity mix India’s growth potential 3 4 Operational Excellence and Well-invested assets Technology Driving Efficiency and driving cash flow growth Sustainability 5 6 Strong Financia

  5. Slide 5: Large & diversified asset base with an attractive commodity mix

    1 Large & diversified asset base with an attractive commodity mix R&R Life 9MFY2018 Key Highlights (years)¹ production  Second largest integrated zinc-lead producer globally; major silver Zn – 585kt producer Zinc 25+ Pb – 118kt India Ag – 387kt  Rampura Agucha – second largest zinc mine globally.

  6. Slide 6: Large & diversified asset base with an attractive commodity mix

    1 Large & diversified asset base with an attractive commodity mix Global Demand CAGR 2017-30E Vedanta’s Focus is on the Right Commodities – Base Metals & Oil Commodity Themes Aluminium 2.8% 87% of O&G India 2.2% Vedanta  Zinc benefits from strongest fundamentals within base metals Group’s space sup

  7. Slide 7: Ideally positioned to capitalise on India's growth potential

    2 Ideally positioned to capitalise on India’s growth potential Aluminium consumption 2017 2030 (kg/capita) 24.4 8.4 GDP 2.6 6.0 130% 1.6 (real terms) trillion trillion India Global China Zinc consumption Per capita (kg/capita) 5.0 income $1,959 $3,979 103% (real terms) 1.9 0.5 India Global China Pop

  8. Slide 8: Well-Invested Assets Driving Cash Flow Growth: Near Term Priority

    3 Well-Invested Assets Driving Cash Flow Growth : Near Term Priority: Total expanded Change vs Near-term expansions FY17 Progress capacity production, %  Expansion to 1.2mt mined Zn-Pb Zinc 1.2mt Zn-Pb 30% Zn-Pb metal India 750t Ag 65% Ag  Silver to 750t Zinc  Gamsberg project (250kt) and 400kt 1

  9. Slide 9: Well-Invested Assets Driving Cash Flow Growth: Medium Term Priority

    3 Well-Invested Assets Driving Cash Flow Growth : Medium Term Priority Future growth options Zinc  Expansion of Zn-Pb to 1.5mtpa India  Silver production of 1,000t + Zinc  Gamsberg Phase 2 & 3 (350kt incremental) Intl.  Swartberg (75kt)  300-500 kboepd Oil & Gas  Accompanied by continued explo

  10. Slide 10: Hindustan Zinc – A premier Zinc and Silver Company

    3 Hindustan Zinc – A premier Zinc and Silver Company Zinc - Lead Silver Costs 1.5 mt 1,000 t 1.2 mt 800 t $850/t 950 kt 500+ t $950-975/t • Brownfield exploration growth to • Higher silver recovery in lead, three • Key structural initiatives on 1.5mt fumers and tailings retreatment: technology, prod

  11. Slide 11: Hindustan Zinc – Growth Potential

    3 Hindustan Zinc – Growth Potential R&R (mn tonne) Drilling (km) 550 200 404 140 75 146 FY04 FY17 Target FY17 FY18E FY19E • Current Resource 11.7Mt @ 5.3% lead, 147g/t silver Rampura Agucha • Galena Zone ore lenses are open Galena Zone • Fast track drilling from underground • 4 new prospects over 5k

  12. Slide 12: Cairn O&G: Execution of growth projects commenced

    3 Cairn O&G: Execution of growth projects commenced Gross production Summary of key projects (kboepd) Gross Gross Peak 275-300 EUR1 Capex Production 220-250 Project (mmboe) ($m) (kboepd) Enhanced Oil Recovery 185-190 40 155 19 (Bhagyam & Aishwariya) Tight Oil & Gas 137 640 45 Projects Other Projects

  13. Slide 13: Operational Excellence & Technology Driving Efficiency and Sustainability

    4 Operational Excellence & Technology Driving Efficiency and Sustainability Operational excellence First quartile Process and Value Sustainability cost position innovation creation Technology and digitalisation Autonomous Machines for 24X7 Worlds Largest Collision Awareness System mining continuousl

  14. Slide 14: Operational Excellence & Technology Driving Efficiency and Sustainability

    4 Operational Excellence & Technology Driving Efficiency and Sustainability 16MW solar projects set up on waste land in Udaipur Biodiversity Management Plan at Gamsberg, S. Africa Target of 115MW in the short term Focus to minimise environmental footprint Drinking water initiative at Barmer, Cairn R

  15. Slide 15: Strong Financial Profile

    5 Strong Financial Profile Strong balance sheet Improving return on capital ROCE 14.4% 70% Peers1 16% 14,000 60% International 14% Domestic 12,000 10.4% 50% 12% 10,000 10% 40% 8,000 7.4% 8% Gearing2 30% 6,000 6% 20% Vedanta Ltd 4,000 4% CRISIL rating AA 10% 0.7, 17% 2,000 2% 0% 0 0% 0.0 0.5 1.0 1.5

  16. Slide 16: Proven Track Record

    6 Proven Track Record Total Production (copper equivalent kt) 3,000 Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas Copper Equivalent Production (kt) 2,500 2,000 90% 1,500 1,000 500 0 FY2016 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2017 Target

  17. Slide 17: Well invested asset base delivering growth and shareholder returns

    Well invested asset base delivering growth and shareholder returns Consistent and successful strategy Delivering profitable capacity growth in attractive commodities Uniquely positioned to harness India’s resources potential and demand growth Clear priorities for capital allocation and shareholder r

  18. Slide 18: Business Review

    Business Review Operational Excellence VEDANTA LIMITED – Credit Suisse Asian Investment Conference Presentation, March 2018

  19. Slide 19: Q3 FY2018 Results Highlights

    Q3 FY2018 Results Highlights Operations: Robust production, and ramp-up on track EBITDA mix (Q3 FY2018)  Zinc India: Refined zinc-lead production of 245kt, up 7% q-o-q 3% Zinc  Zinc International: Strong production at BMM and Skorpion 5% 9%  Aluminium: Continued ramp-up; production up 40% y-o-y w

  20. Slide 20: Zinc India

    Zinc India Q3 FY2018 Results  MIC at 240kt; refined zinc-lead 245kt and refined silver at 132t  CoP at $1,022/t; impacted by high input commodity prices Capacity expansion to 1.2mtpa MIC by FY2020 on track  RAM U/G mine crossed ore production run-rate of 2mtpa; shaft to take total production capa

  21. Slide 21: Zinc International

    Zinc International Q3 FY2018 Results Significant progress at 250kt Gamsberg project  Total production at 47kt  On target for first production by mid CY2018, with ramp-up  Skorpion at 26kt: highest in last 6 quarters due to full capacity in 9-12 months to higher blended grades and refinery  Capex

  22. Slide 22: Cairn Oil & Gas

    Cairn Oil & Gas Q3 FY2018 Results  Gross average production at 184,133 boepd  Rajasthan production at 157,096 boepd  Offshore production at 27,037 boepd  Operating cost  RJ waterflood operating cost at $4.3/boe  RJ blended cost including EOR at $6.4/boe  Production to ramp-up in Q4 as planned

  23. Slide 23: Aluminium

    Aluminium Q3 FY2018 Results Aluminium Costs and Margins (in $/t, for Q3 FY2018)  Record Aluminium production of 445kt, with current run rate Q2 18 2,012 78 63 2,153 (718) (709) (430) (84) $211/t (146) (259) (194) of 1.8mtpa and alumina production of 287kt 53 2,249 94 (782)  Aluminum CoP at $1,945/

  24. Slide 24: Power

    Power TSPL (3 x 660 MW) Coal Outlook – Aluminium CPPs  Record quarterly plant availability of 97%; 9 months  Domestic coal supply situation availability at 68% and targeting availability of c.  Low realisation of linkage coal in Q3 resulting in 75% for FY2018 higher coal cost  ‘Take or Pay’ arra

  25. Slide 25: Iron Ore

    Iron Ore Q3 FY2018 Results  Total sales of 1.8mt and production of 0.9mt  Goa commenced production of higher quality ore through beneficiation and blending  Karnataka achieved full allocation production in Q3, inventory of 0.5mt to be sold in Q4 Realizations:  Beneficiation and blending increase

  26. Slide 26: Copper India

    Copper India Q3 FY2018 Results Volumes  Production at 101kt  Q3 Tc/Rc’s at 20.8 c/lb  Net CoP of Usc 5.6/lb, higher q-o-q due to higher input commodity prices Outlook  Maintain guidance for FY2018 production at 400kt  Benchmark Tc/Rc for CY2018 at Usc 21.3/lb; c.11% lower Tuticorin I Copper Sme

  27. Slide 27: Appendix

    Appendix VEDANTA LIMITED – Credit Suisse Asian Investment Conference Presentation, March 2018

  28. Slide 28: Guidance – As of end Q3

    Guidance – As of end Q3 Segment FY18e Comments Zinc-Lead Integrated: 950kt • Revised guidance due to high input Zinc India Silver volume: +500 tonnes commodity prices CoP ($/t): $950-975/t • YTD CoP at 1,495/t; Q4 to be temporarily high due to early Zinc-Lead volume: c.160kt production from Skorpion

  29. Slide 29: Optimising Capex to drive Cash Flow Generation

    Optimising Capex to drive Cash Flow Generation  Prioritised capital to high-return, low-risk projects to Growth Capex Profile and Free Cash Flow pre capex - $bn maximize cash flows 2.8 Oil & Gas Zinc  H1 Capex spent $0.3bn, H2 FY 2017 expected at 2.4 Al & Power $0.8bn Copper Optionality Capex  Re

  30. Slide 30: Entity Wise Cash and Debt

    Entity Wise Cash and Debt (in Rs. crore) 31 Dec 2017 30 Sept 2017 30 Jun 2017 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Debt Cash & LI Net Debt Vedanta Limited 36,894 11,897 24,997 38,232 12,375 25,857 42,711 16,698 26,013 Standalone Cairn India Holdings 3,480 6,280 (2,800) 3,554 6,562

  31. Slide 31: Strong Credit Profile and Balance Sheet

    Strong Credit Profile and Balance Sheet Maturity Profile of Term Debt: Rs.34,467 Crore ($5.4 bn) (as of 31st Dec 2017) 9.4 Rs. ‘000 Crore Subsidiaries Standalone 7.4 3.7 6.5 6.2 1.9 4.7 2.1 4.8 2.4 5.7 4.6 4.0 2.3 2.6 0.3 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 & Later Term debt of Rs.34,467 crore

  32. Slide 32: Segment Summary – Power

    Segment Summary – Power Power Generation Capacity – c. 9GW IPP: 3.6GW CPP:5.1GW • 600MW Jharsuguda (of • 1,215MW Jharsuguda 2400MW plant) • 3*600MW Jharsuguda (of • 1,980MW TSPL 2400MW plant) • 2*300MW BALCO (of 41% • 540MW BALCO 1200MW plant) • 270MW BALCO 59% • 274MW HZL Wind Power • 2*300MW BALCO

Vedanta — Credit Suisse Asian Investment Conference 2018 on 6ix