Vedanta Limited · NSE:VEDL
Vedanta — Merger or Acquisition (July 2016)
15 slides from Vedanta's merger presentation, Jul 26, 2016
Slide 1: Vedanta Limited and Cairn India Limited: Revised Terms for Merger
CAIRN vedanta Vedanta Limited and Cairn India Limited: Revised Terms for Merger 22 July 2016 Conference call at 6:45pm IST, details on the last page
Slide 2: Cautionary statement and disclaimer
Cautionary statement and disclaimer CAIRN vedanta This presentation has been prepared by Vedanta Resources plc (“Vedanta”), Vedanta Limited and Cairn India Limited (“Cairn India”) for information purposes only in relation to a potential merger between Vedanta Limited and Cairn India (the “Transactio
Slide 3: Cautionary statement and disclaimer (cont'd)
Cautionary statement and disclaimer (cont’d) CAIRN vedanta The information contained in these materials has not been independently verified. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness (including, without limitation,
Slide 4: Revised Merger Terms
Revised Merger Terms CAIRN vedanta Revised and final terms - Cairn India Limited public shareholders will receive for each equity share held: 1 Equity Share in Vedanta Limited 4 Redeemable Preference Shares (RPS) in Vedanta Limited with a face value of Rs.10 Dividend: 7.5% p.a. Tenure: 18 months Imp
Slide 5: Benefits of a Diversified Portfolio
Benefits of a Diversified Portfolio CAIRN vedanta Vedanta’s diversified portfolio significantly reduces volatility... Commodity prices (15 June 2015 = 100) Aluminium Zinc Copper Iron Ore 62% Silver Brent Oil VED commodity Basket¹ 130 % Change Since Announcement 22.4% 120 110 6.0% 100 (5.4%) 90 (5.5%
Slide 6: Diversified Resource Companies Deliver Superior Shareholder Returns
Diversified Resource Companies Deliver Superior Shareholder Returns- Vedanta’s Ramp-ups to Drive Strong FCF and Shareholder Returns CAIRN vedanta Superior shareholder returns from diversified commodity companies 2006 – 2016 Total Shareholder Return (INR) 38% 40% 20% 0% (20%) (40%) (48%) (60%) Divers
Slide 7: Strategic Rationale
Strategic Rationale CAIRN vedanta 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 greater capital effic
Slide 8: Summary
Summary CAIRN vedanta Cairn India shareholders De-risked earnings and stable cash flows through the cycle Attractive transaction terms Exposure to Vedanta Limited’s world class metals and mining assets – low cost, long life and well invested, delivering strong growth through production ramp ups Impr
Slide 9: Transaction timetable
Transaction timetable CAIRN vedanta Key Event Expected date BSE, NSE and SEBI approvals sought Completed BSE, NSE and SEBI approvals Completed Application to High Court in India Completed Vedanta plc posting of UK Circular August 2016 Vedanta plc EGM September 2016 Vedanta Limited shareholder meetin
Slide 10: Appendix
(crue) vedanta Appendix
Slide 11: Transaction Approvals
Transaction Approvals CAIRN vedanta India Stock exchanges (NSE and BSE) and SEBI approval received High Court and other regulatory approvals in India for Scheme of Arrangement Vedanta Limited and Cairn India Limited Shareholder approvals Listing requirements: majority of minority (Vedanta plc and Ve
Slide 12: Vedanta Ltd: Large, low cost and diversified asset base
Vedanta Ltd: Large, low cost and diversified asset base CAIRN vedanta FY2016 R&R Life (years) Production EBITDA (Rs. Crore) Key highlights O&G Oil & Gas 15+ 46.9 mmboe1 3,504 ($535mn) India’s largest private-sector crude oil producer Strong FCF generation even at low oil prices with opex of $6.5/bbl
Slide 13: Geographical Footprint
Geographical Footprint CAIRN vedanta 6 15 3 15 4 14 2 1 14 20 13 13 5 20 7 13 12 16 16 21 8 17 18 9 19 11 10 10 22 Zinc-Lead-Sliver Oil & Gas Iron Ore Copper Aluminium Power Projects under development/commissoning Captive thermal power plant 1. Debari smelter 2. Chanderiya smelters 3. Rampura Agucha
Slide 14: Pro forma 2016 financials
Pro forma 2016 financials CAIRN vedanta Vedanta Limited consolidated (Rs. crore) Vedanta Limited consolidated pro-forma (Rs. crore) EBITDA 15,012 15,012 Operating profit 8,301 8,301 Profit after tax 6,216 6,216 Minority interest 3,306 2,355 Attributable to equity holders 2,910 3,861 EPS Rs.9.8 Rs.10
Slide 15: Conference Call Details
Conference Call Details CAIRN vedanta There will be a conference call on Friday, 22 July 2016 at 6:45 PM IST (2:15PM UK time, 9:15AM NY time) The dial-in numbers for the call are below: Event Telephone Number Conference call on 22 July 2016 India – 6:45 PM (IST) Mumbai main access +91 22 3938 1017 M