Vedanta Limited · NSE:VEDL
Vedanta — CLSA Conference Nov 2021
28 slides from Vedanta's conference presentation, Nov 18, 2021
Slide 1: Vedanta Limited Investor Presentation Nov'2021
VEDANTA LIMITED INVESTOR PRESENTATION Nov’2021 Sensitivity: Internal (C3)
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: Strong Growth Momentum Continues
Strong Growth Momentum Continues ▪ Commit towards becoming net zero carbon by 2050 ESG ▪ Embedding ESG to make Vedanta truly future-ready ▪ Steady volume performance across business segments Operational Performance ▪ Sustained margins on strong commodity prices ▪ Highest Revenue and EBITDA for Q2 an
Slide 4: Uniquely Positioned To Deliver Sustainable Value
Uniquely Positioned To Deliver Sustainable Value World-Class Natural Competitive position in Delivering growth by Contributing to a Resources Powerhouse Indian and Global market capacity expansion sustainable development ▪ Diverse portfolio, strong ▪ Well-placed to benefit ▪ Production ramp-up ▪ Net
Slide 5: Key Focus Areas For Value Delivery
Key Focus Areas For Value Delivery 1 ESG ▪ Disproportionate focus on sustainable ways of working 8 1 ▪ Upgraded sustainability board committee to ESG board committee 2 Centre of Excellence set up (R&D, Asset health, Innovation and Quality) 7 2 3 Digital transformation Key focus areas for value deliv
Slide 6: Redefining our ESG Strategy
Redefining our ESG Strategy ESG Transforming for good Purpose 1 2 3 Pillars Transforming Communities Transforming the Planet Transforming the Workplace ▪ Aim 1. Keep community ▪ Aim 4. Net-carbon ▪ Aim 7. Prioritizing safety Commitments welfare at the core of neutrality by 2050 or and health of all
Slide 7: Our Commitments – On Net Zero we Commit to
Our 10 Commitments – On Net Zero we Commit to Net Zero Carbon by 2050 or sooner 2 Use 2.5 GW of Round-The-Clock RE and reduce absolute emissions by 25% by 2030 from 2021 baseline 3 Pledge US$ 5b over the next 10 years to accelerate transition to Net-Zero 4 No additional coal-based thermal power and
Slide 8: Financial snapshot H1 FY2022
Financial snapshot H1 FY2022 Revenue EBITDA EBITDA Margin 1 Attributable PAT (before exceptional items) ₹ 58,153 cr ₹ 20,613 cr 40% ₹ 8,924 cr Up 59% Up 96% Industry leading margin Up 389% ROCE 2 Cash and Cash ND ND/EBITDA equivalents c.26% ₹ 30,650 cr ₹ 20,389cr 0.5x Up more than 2x Strong liquidit
Slide 9: Balance Sheet and Debt Breakdown
Balance Sheet and Debt Breakdown Net Debt / EBITDA – lowest in last 4 years Debt Breakdown (as of 30th Sep 2021) 1.1 1.0 0.9 0.9 Debt breakdown as of 0.5 (in $bn) (₹ in 000’ Cr) 30th Sep 2021 Term debt 6.5 48.1 FY'18 FY'19 FY'20 FY'21 H1 FY'22 Working capital 0.2 1.8 Short term borrowing 0.1 1.1 ▪ L
Slide 10: Capex and Returns Profile
Capex and Returns Profile Growth CAPEX Profile, $bn Oil & Gas Zinc Al & Power Copper Other Optionality Full year Capex guidance 0.7 1.0 1.2 1.5 1.2 0.7 1.1 1.1 1.1 0.1 0.2 0.8 0.8 0.1 0.7 0.1 0.5 0.1 0.6 0.1 0.2 0.4 0.2 0.3 0.5 0.3 0.3 0.1 0.2 0.1 0.3 0.1 0.1 0.2 0.1 0.1 0.5 0.5 0.2 0.1 0.3 FY2016 F
Slide 11: Strategy to Enhance Long Term Value
Strategy to Enhance Long Term Value Continue Focus on World Class ESG Performance Augment Our Reserves & Resources Base Operational Excellence and Cost Leadership Optimise Capital Allocation & Maintain Strong Balance Sheet Delivering on Growth Opportunities VEDANTA LIMITED - INVESTOR PRESENTATION 11
Slide 12: Appendix
VEDANTA LIMITED INVESTOR PRESENTATION Appendix Sensitivity: Internal (C3)
Slide 13: Expansion Underway in all Businesses
Expansion Underway in all Businesses Low Costs Assets Leading to Significant Production Ramp-up across all Businesses Zinc India Zinc International Oil & Gas Aluminium Steel Growth projects ▪ Ramp-up of including: Jharsuguda II total ▪ Achieved 1.5 ✓ All expansion smelter from 2.0 Mtpa hot metal - E
Slide 14: Attractive Business Portfolio
Attractive Business Portfolio Aluminum Zinc & Silver Oil & Gas Iron & Steel ✓ Largest aluminum ✓ One of the Largest ✓ India’s largest private- ✓ India's largest private capacity in India with integrated zinc- lead sector crude oil producer sector exporter of iron ore captive power and an smelter sin
Slide 15: Vedanta Growth Trajectory – Focus On Growth Projects
Vedanta Growth Trajectory – Focus On Growth Projects Well Invested And Consolidated Assets : Driving Growth ✓ Acq Zinc Intl FY 2013- ✓ Cmd 1.5mt mill 21 at SK mine FY 2012 √ Cmd 1,980MW TSPL ✓ Cmd 2,400 MW FY2010 JHA FY2012 √ Exp 1.2 mt zinc ✓ Acq VS Dempo FY 2011 ✓ Acq Cairn India √ Cmd 250kt Gamsb
Slide 16: Vedanta Cares: Roadmap for ₹5,000 crore
Vedanta Cares: Roadmap for ₹ 5,000 crore in Next 5 Years Vedanta has spent more than ₹ 2,000 crore in the last 5 years in CSR Footprint: Over 75 Lacs people to be benefitted in next 5 years Launch of Swasth Gaon Abhiyaan Working with Global Partners Health Care Women & Child Animal Welfare Sports CS
Slide 17: Multiple Initiatives to Improve ESG Performance Over the Years
Multiple Initiatives to Improve ESG Performance Over the Years Themes Actions already taken Resulting into rating improvement in last few years Renewable RE adoption across BUs Energy (40 MW solar & 273 MW Wind at HZL) Fleet MoU signed up with Normet, Epiroc at HZL Electrification ESL adopted EVs fo
Slide 18: Multi-dimensional Approach to Redefine ESG Strategy
Multi-dimensional Approach to Redefine ESG Strategy 1 ▪ Partnered with world’s leading companies to develop a robust roadmap to be a Global leader in ESG space Tapping Global Expertise in ▪ Mentored by Mr. Kuldeep Kaura on ESG Vedanta’s DNA ▪ Onboarded Dr Raj Aseervatham and Mr. Peter Sinclair as ES
Slide 19: Heading Towards – Zero Harm, Zero Waste, Zero Discharge
Heading Towards – Zero Harm, Zero Waste, Zero Discharge Safety Update Environment Update Q2 Fatality ▪ 3 fatalities at ESL Steel ▪ Digitalization of tailing dam at HZL & VZI ▪ CEOs are driving critical risks across Vedanta. completed and in progress at Aluminum ▪ Expert for Critical Risk Management
Slide 20: Aluminium: Success Continues; Growing Value in Dynamic World
Aluminium: Success Continues; Growing Value in Dynamic World Highest Ever Aluminium Production Alumina Production & COP 282 270 1,647 1,588 258 1,526 227 222 1,288 1,278 1,104 1,030 951 477 418 462 482 511 938 993 473 549 570 941 1,118 Q2 FY21 Q1 FY22 Q2 FY22 H1 FY21 H1 FY22 Q2 FY21 Q1 FY22 Q2 FY22
Slide 21: Aluminium: Well-Poised to be among Global Leaders
Aluminium: Well-Poised to be among Global Leaders COP Reduction potential ~$150–200 /t 2.8 Capacity (Mtpa) Step towards Vertical Integration 2.2 1.9 Steps towards Vertical Integration ▪ Lanjigarh expansion by Q1 FY23 (EC received 6Mnt) FY21 FY22 e 1-2 years ▪ Lanjigarh ▪ Jharsuguda ▪ 100% JSG Ramp-u
Slide 22: Zinc India: Strong Foundation Driving Growth
Zinc India: Strong Foundation Driving Growth Key Highlights: Mined metal Production (kt) 440 470 ▪ Record-High# Q2 and H1 mined metal Production - higher 238 221 248 ore treatment and improved recovery ▪ Metal Production in Q2* down due to planned Q2 FY21 Q1 FY22 Q2 FY22 H1 FY21 H1 FY22 maintenance
Slide 23: Zinc International: Gamsberg Positioning for Long Term Value Creation
Zinc International: Gamsberg Positioning for Long Term Value Creation Consistently Achieving Better than Design Throughput Key Highlights: ▪ Highest excavation at Gamsberg in Q2 (5.9Mt per 817 833 782 month), post successful onboarding of business 684 partner in Q1 501 522 532 526 ▪ Q2 Production up
Slide 24: Oil & Gas: Stable Operations, Focus on Delivery of Growth Projects
Oil & Gas: Stable Operations, Focus on Delivery of Growth Projects Operations Development Projects ▪ Production: Maintained at Q4 FY21 levels of 165 ▪ Mangala Wells : 3 new wells drilled & complete, 7 new wells put on production kboepd in H1 FY22 ▪ Infill Drilling to start in Q3 FY22: ▪ Opex: Operat
Slide 25: Oil & Gas: Key Projects For Production Growth In Mid To Long Term
Oil & Gas: Key Projects For Production Growth In Mid To Long Term ASP Exploration (OALP + PSC) Shale >300 mmboe1 600 mmboe2 300 mmboe3 ▪ Modularized approach for ▪ Portfolio prioritization ▪ Partners engaged on studies accelerated volumes ▪ Investment partnerships ▪ Pilot program under planning ▪ Pi
Slide 26: Iron ore: Continued Performance Growth Trajectory
Iron ore: Continued Performance Growth Trajectory Highest Ever six months production at Karnataka Key Highlights Q2: 2.7 ▪ Record Hot metal production at VAB through 2.4 Production (Mnt) productivity improvement initiatives 1.5 1.4 1.3 ▪ VAB Margin up 50% y-o-y and down 32% q-o-q due to higher cokin
Slide 27: ESL Steel: Towards Long Term Organic Growth
ESL Steel: Towards Long Term Organic Growth Consistent Performance Key Highlights Q2: 71 ▪ Hot Metal production up 11% y-o-y and 1% q-o-q 115 67 94 ▪ Saleable Production up 12% y-o-y and 1% q-o-q 32 through improvement of furnaces post shutdown in Q2 FY22 260 289 293 528 582 ▪ Margin down 66% y-o-y
Slide 28: FACOR: Delivering Stronger Growth
FACOR: Delivering Stronger Growth Strong Performance Continues Key Highlights Q2: 655 ▪ Achieved highest quarterly Fe Chrome production; 537 424 plant productivity enhancement by ~10% 38 32 ▪ Highest quarterly EBITDA margin ~14x y-o-y and 17 18 19 54% q-o-q supported by increase in NSR 48 56 ▪ Ore p