Vedanta Limited · NSE:VEDL
Vedanta — Sesa Sterlite — Investor Presentation (August 2013)
20 slides from Vedanta's investor presentation, August 2013
Slide 1: Sesa Sterlite: A Global Natural Resource Major
Sesa Sterlite: A Global Natural Resource Major Aug 2013
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: Sesa Sterlite: Investment Highlights
Sesa Sterlite: Investment Highlights One of the world’s largest diversified natural FY2013 EBITDA resource majors Iron Ore 2% − Operations across Zinc-Lead-Silver, Zinc Intl 6% Aluminium, Copper, Iron Ore, Silver, Oil & Gas and Commercial Power Zinc India 25% Oil and Gas 52% Portfolio of low cos
Slide 4: Diversified Asset Portfolio
Diversified Asset Portfolio FY2013 Global Positioning Production Full Capacity1 EBITDA Cash Cost Position Zinc India Rs.4,862 cr 802kt 1.2mtpa Lowest Quartile Largest integrated zinc producer ($893 mn) Zinc Intl. Rs.1,603 cr 426kt 400ktpa Lower Half One of the largest undeveloped zinc deposits ($294
Slide 5: Well Positioned to Capitalise on India's Growth
Well Positioned to Capitalise on India’s Growth India Demand Outlook Strong Market Share in India FY2013 India Market Shares1,2 India Rank Sesa Sterlite Domestic Sales #1 66% 3 #1 97% Zinc Refined Copper Aluminum (kt) (kt) (kt) FY2013 Revenue Breakdown by Geography 85% #1 Africa Asia others 1% 1% Fa
Slide 6: FY2013 Operational and Financial Performance
FY2013 Operational and Financial Performance Production¹ (% change vs FY2012) EBITDA Margin by Segment Oil & Gas² 26% Oil & Gas 74% Zinc India - Mined Metal 5% Zinc- India 55% Integrated Zinc India - Silver³ 36% Zinc- International 37% Zinc Intl -4% Power 34% Copper Australia 15% Copper Australia 29
Slide 7: Well-Invested Assets Driving Cash Flow Growth
Well-Invested Assets Driving Cash Flow Growth Significant cash flow from operations in FY13 Cash Flow and Growth Capex Profile ($ bn) Expected to grow with production ramp-up Free Cash Flow² M&M Capex Oil & Gas: c.$3bn1 over next 3 years M&M Capex Flexibility O&G Capex¹ 80% of capex on proven Ra
Slide 8: Key Strategic Priorities
Key Strategic Priorities Continue to drive operational and cost efficiencies Production growth across portfolio Capital allocation with a focus on low-risk and phased development with a focus on returns e.g. Rajasthan Oil & Gas, Zinc India Continue to add R&R Exploration programme to realize R
Slide 9: Appendix
Appendix INVESTOR PRESENTATION – AUGUST 2013
Slide 10: Zinc
Zinc Zinc-India Zinc-India FY2012 FY2013 Record mined metal production in FY2013 830 870 Mined Metal (kt) FY2014 production of c.1mt Refined Zinc – Integrated (kt) 752 660 Strong ramp-up of lead and silver production in FY2013 Refined Lead – Integrated (kt)1 89 107 FY2014 integrated production o
Slide 11: Oil & Gas
Oil & Gas Operations and Development: Rajasthan Block Oil & Gas FY2012 FY2013 32% production ramp-up in FY2013, currently operating at Average Daily Gross Operated 172,887 205,323 Production (boepd) c.173kbopd Rajasthan 128,267 169,390 All producing assets contribute to gas sales for the first tim
Slide 12: Oil & Gas: Exploration and Appraisal
Oil & Gas: Exploration and Appraisal Rajasthan Block Rajasthan Resource Potential – 7.3bn boe in place (in mn boe) Recommenced exploration and 26th discovery in April 2013 Gross In Place Gross EUR 7,297 Exploration to achieve basin production potential of 300kbopd Gross Prospective Resources of
Slide 13: Iron Ore
Iron Ore India Iron Ore and Pig Iron FY2012 FY2013 Karnataka: Supreme Court recently cleared our mine to Sales (mt) 16.0 3.1 resume operations Goa 13.3 3.0 Expect to resume mining in Q21 Karnataka 2.7 0.1 Goa mining: Supreme Court process underway Production 13.8 3.7 Exploration success: Net a
Slide 14: Copper-India/Australia
Copper-India/Australia Australia Copper-India/Australia FY2012 FY2013 Strong mined volumes and exploration success during FY2013 Mined Metal – Australia (kt) 23 26 Copper Cathodes– India (kt) Volumes 326 353 India Copper Tc/Rc 14.5 12.8 NGT allowed smelter to re-commence operations. Conversion c
Slide 15: Aluminium
Aluminium Strong volumes: VAL and BALCO smelters operated above Aluminium and Alumina FY2012 FY2013 rated capacity Aluminium Production (kt) 675 774 Sustained 2nd quartile costs (even without captive bauxite) BALCO 246 247 Q1 FY2014 costs at $1,756/t VAL 430 527 VAL: Significant reduction in cap
Slide 16: Power
Power Higher sales driven by ramp-up of 2,400 MW Jharsuguda power Power FY2012 FY2013 plant Total Sales (mu) 8,160 10,129 PLF of 54% by all 4 units in Q1 FY2014 vs. 50% by 3 units in Q1 FY2013, as evacuation constraints eased Jharsuguda 2,400 MW1 5,638 7,530 Balco 270 MW 1605 1,241 Easing of eva
Slide 17: Balanced Maturity and Diversified Funding Profile
Balanced Maturity and Diversified Funding Profile Standalone & Consolidated debt maturity profile ($ bn) Diversified funding profile (as at 31st March 2013) 1,2 (as at 31st March 2013) Sesa Sterlite Subsidiaries Sesa Sterlite Standalone ECB, 12% Bonds-INR, 11% 3.3 Project Buyer's credit, 11% 1.1 Ter
Slide 18: Entity Wise Net Debt and Cash
Entity Wise Net Debt and Cash Sesa Sterlite Proforma Net Debt Summary ($mn) 31 March 2012 31 March 2013 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Sesa Sterlite Standalone 6,546 964 5,582 6,830 494 6,336 Zinc India - 3,508 (3,508) - 3,929 (3,929) Zinc International 9 215 (206) - 197 (19
Slide 19: Old Group Structure
Old Group Structure Vedanta Resources (Listed on LSE) 79.4% 70.5% 54.6% 94.8% 55.1% 38.7% Konkola Vedanta 29.5% Sterlite Industries 3.6% Madras Sesa Goa 20.1% Cairn India Ltd Copper Aluminium (Listed on BSE, Aluminium (Listed on BSE (Listed on BSE Mines (KCM) (VAL) NSE and NYSE) (MALCO) and NSE) and
Slide 20: Current Group Structure
Current Group Structure Vedanta Resources Divisions of Sesa Sterlite 79.4% 58.3% Iron Ore (Sesa Goa) Konkola Copper Smelting (Tuticorin) Copper Sesa Sterlite Mines (KCM) Power (2,400 MW Jharsuguda) Aluminium (VAL aluminium and power assets) Subsidiaries of Sesa Sterlite 58.8% 64.9% 51% 100%