Slide 1: Channelling growth opportunities
Channelling Vedanta Limited growth opportunities VEDANTA LIMITED-OIL&GAS|ZINC&SILVER|ALUMINIUM|POWER|IRONORE|COPPER I N V E S T O R P R E S E N T A T IO N June, 2018
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
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 geared towards Resources base metals and oil Plc Divisions of Vedanta Lim
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
Slide 5: Large & diversified asset base with an attractive commodity mix
1 Large & diversified asset base with an attractive commodity mix FY2018 production Key Highlights Zn – 791kt Second largest integrated zinc-lead producer globally; major silver producer Zinc Pb – 168kt India Ag – 558kt Rampura Agucha – second largest zinc mine globally Zinc 1 157kt Gamsberg –
Slide 6: Large & diversified asset base with an attractive commodity mix
1 Large & diversified asset base with an attractive commodity mix Global Demand CAGR 2018-30E Vedanta’s Focus is on the Right Commodities – Base Metals & Oil Commodity Themes Aluminium 2.6% 86% of Zinc benefits from strongest fundamentals within base metals Lead 1.6% Vedanta space supported by tig
Slide 7: Ideally positioned to capitalise on India's growth potential
2 Ideally positioned to capitalise on India’s growth potential 6.0 trillion 3,979 (2030) 40% (2030) Improving regulatory (2030) environment: Transparent 2,083 (2018) 34% (2018) 2.8 trillion (2018) auctioning and private Per capita income (real) Urbanisation ownership GDP (real) India’s demand potent
Slide 8: Well-invested assets driving cash flow growth
3 Well-invested assets driving cash flow growth Current Near-term growth Medium-term growth Current update Zinc-lead production: Zinc-lead production: Zinc-lead production: • Phase – I with target of 1.35mt pa towards Zinc India c.1mt 1.2mt 1.5mt a ramp-up to 1.5MT pa production Silver: 558t Silver:
Slide 9: Operational Excellence & Technology Driving Efficiency and Sustainability
4 Operational Excellence & Technology Driving Efficiency and Sustainability Operational excellence Low cost Process and Value Sustainability operations innovation creation Technology and digitalisation Autonomous Machines for 24X7 mining Worlds Largest Collision Awareness System continuously heated
Slide 10: 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
Slide 11: Strong Financial Profile
5 Strong Financial Profile Strong balance sheet 60% Peers1 International ROCE 4 17.5% 20% 50% Domestic 14,000 15.0% 12,000 40% 15% 10,000 Gearing2 30% 8,000 10% 6,000 4.5% 20% 4,000 5% 0.8, 22% 2,000 10% Vedanta Ltd CRISIL rating AA 0 0% Net Debt/EBITDA3 FY 2016 FY 2017 FY 2018 0% 0.0 0.5 1.0 1.5 2.
Slide 12: Proven Track Record
6 Proven Track Record 16% CAGR Production Growth since Listing Total Production (copper equivalent kt) 3,000 Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas Copper Equivalent Production (kt) 2,500 c. 55% 2,000 1,500 1,000 500 0 Target FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY201
Slide 13: Delivering on our Strategic Priorities
Delivering on our Strategic Priorities Optimise Capital Augment our Operational Allocation & Maintain Reserves & Excellence Strong Balance Sheet Resources base Well developed exploration programs Volume growth and Preserve our License Delivering on Growth 19.5mt gross additions asset optimisat
Slide 14: Appendix
Appendix VEDANTA LIMITED OIL&GAS|ZINC&SILVER|ALUMINIUM| POWER|IRONORE|COPPER
Slide 15: FY 2018 Safety and Sustainability Highlights
FY 2018 Safety and Sustainability Highlights • Safety LTIFR – (per million man-hours worked) • 7 fatalities in FY18 0.89 • Workshops to validate & manage safety-related Critical Risks • 890,389 hours in safety training 0.52 0.49 • British Safety Council “5-Star Rating” for O & G - Rajasthan & 0.43 0
Slide 16: FY 2018 Business highlights
FY 2018 Business highlights Zinc India Zinc International O&G Aluminium FY18 Avg: 186 kboepd Aluminium: 1.7mt Refined Zn-Pb: 960kt BMM: 72kt Production FY18 Exit: 200 kboepd FY18 Exit: c.2.0mt Silver: 558 tonnes Skorpion: 84kt (Gross) Alumina: 1.2mt Costs CoP ex. royalty: $976/t CoP: $1,603/t RJ ble
Slide 17: FY 2018 Business highlights (cont'd)
FY 2018 Business highlights (cont’d) Power Iron Ore & Steel Copper India Power sales: 11,041MU Goa: 4.9mt Production Cathodes: 403 kt TSPL availability: 74% Karnataka: 2.2mt TSPL margin: Re 1/unit CoP IOG: $27.6/t Costs CoP: 5.7c/lb CoP IOK: $7.8/t EBITDA Rs. 1,669 cr Rs. 460 cr Rs. 1,308 cr (Margin
Slide 18: FY 2019 Guidance
FY 2019 Guidance Segment FY19 Production FY19 CoP Zinc India Zinc-Lead Integrated > FY18 production ; Silver: 650 - 700 tonnes $950-975/t excluding royalty ZI COP (excl Gamsberg) : $1850 - Skorpion and BMM: 150kt Zinc International 1950 Gamsberg: 100kt Gamsberg: $1,000 - $1,150/t Oil & Gas Gross Vol
Slide 19: Capex at Attractive Returns
Capex at Attractive Returns Growth Capex Profile and Free Cash Flow pre capex - $bn • Prioritised high-return, low-risk projects to Oil & Gas maximize cash flows Zinc Al & Power Copper • Strong cash flows to self fund Optionality Capex 15.0% Free Cash Flow (pre-capex) ROCE 4.5% 2.8 • FY 2018 Capex s
Slide 20: Project Capex
Project Capex Capex5 Spent up to Spent in Unspent as at Capex in Progress Status ($mn) Mar 2017 6 FY2018 31 Mar’18 7 Cairn India – Mangala Infill, Liquid handling, 1386 56 127 1203 Bhagyam & Aishwariya EOR, Tight Oil & Gas etc Aluminium Sector BALCO – Korba-II 325ktpa Smelter and Smelter: fully oper
Slide 21: Entity Wise Cash and Debt
Entity Wise Cash and Debt 31 Mar 2018 31 Mar 2017 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Vedanta Limited Standalone 40,713 7,132 33,581 43,233 2,316 40,917 Cairn India Holdings Limited1 2,773 5,653 (2,880) - 27,646 (27,646) Zinc India - 22,189 (22,189) 7,908 32,166 (24,258) Zinc Int
Slide 22: Zinc India: Vision of 1.5mtpa MIC capacity
Zinc India: Vision of 1.5mtpa MIC capacity Roadmap to Phase – I of 1.35mtpa Zinc – Lead – Silver FY18 FY20 FY21 Rampura Agucha UG 2.1 4.5 5.0 1.5 mt 1,500 t Sindesar Khurd 4.6 6.0 6.5 Zawar 2.2 4.5 5.7 Rajpura Dariba 0.9 1.5 2.0 1.2 mt + 800 t Kayad 1.2 1.2 1.2 Total ore capacity 10.9 17.7 20.4 mtpa
Slide 23: Zinc International: Gamsberg Expansion
Zinc International: Gamsberg Expansion • Reserve and Resource of 215mt (15mt Zinc) 450-500 • Potential to ramp up to 600ktpa • Phase 1 : On track for first production in middle 2018 Production (kt) • Ramp up to 250kt by FY2020 250 • Potential Phase 2 : Mine design for open pit completed 100 • Additi
Slide 24: $2 billion Capex for Incremental 200 kboepd Peak Production
$2 billion Capex for Incremental 200 kboepd Peak Production Million barrels of oil equivalent 2P Reserves: 2009 465 74 539 Production: 2009-18 478 126 604 Reserves & Resources: 2018 97 35 176 375 580 1,263 Commercialised 683 RJ PSC 2020 (Base) Ravva, CB, etc. PSC Extension Growth Projects Yet to be
Slide 25: Growth Projects: Doubling the number of wells in Rajasthan
Growth Projects: Doubling the number of wells in Rajasthan Gross capex of $2 bn for Growth Projects to monetize 375 mmboe, $1.3 bn contracts in place, $0.5 bn contracts to be awarded by Q1FY19 Increasing wells in Rajasthan from 500+ to 900+ will add incremental peak production of 200 kboepd 9
Slide 26: Exploration: Creating Sustainable Stakeholder Value
Exploration: Creating Sustainable Stakeholder Value Gross Capex of over $ 100m for Exploration & Appraisal in FY19 Onshore Exploration o Rajasthan Exploration (300-600 mmboe of resources) 7-18 E&A wells drilling to commence in Aug 2018 o Rajasthan Tight Oil Appraisal (190 mmboe of resources) App