Vedanta Resources plc

Vedanta Resources — Merger or Acquisition (July 2016)

15 slides from Vedanta Resources's merger presentation, Jul 22, 2016

  1. Slide 1: Vedanta Limited and Cairn India Limited: Revised Terms for Merger

    Vedanta Limited and Cairn India Limited: Revised Terms for Merger 22 July 2016 Conference call at 6:45pm IST, details on the last page

  2. Slide 2: Cautionary statement and disclaimer

    Cautionary statement and disclaimer 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 "Transaction") and is sol

  3. Slide 3: Cautionary statement and disclaimer (cont'd)

    Cautionary statement and disclaimer (cont’d) 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, on the fairnes

  4. Slide 4: Revised Merger Terms

    Revised Merger Terms  Revised and final terms - Cairn India Limited public shareholders will receive for each equity share held: o 1 Equity Share in Vedanta Limited o 4 Redeemable Preference Shares (RPS) in Vedanta Limited with a face value of Rs.10 o Dividend: 7.5% p.a. o Tenure: 18 months  Impli

  5. Slide 5: Benefits of a Diversified Portfolio

    Benefits of a Diversified Portfolio Vedanta’s diversified portfolio significantly reduces volatility... Aluminium Zinc Copper Iron Ore 62% Silver Brent Oil VED commodity Basket¹ % Change Since Announcement 130 22.4% (15 June 2015 = 100) 120 Commodity prices 110 6.0% 100 (5.4%) 90 (5.5%) Vedanta (14.

  6. 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 Superior shareholder returns from diversified commodity Ramp-up of Aluminium, Power and Iron Ore at Vedanta companies Limited Driving Strong Cash Flow Generation +30%1

  7. Slide 7: Strategic Rationale

    Strategic Rationale  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 efficiency,

  8. Slide 8: Summary

    Summary Cairn India shareholders Vedanta Ltd & Vedanta plc shareholders  De-risked earnings and stable cash flows  Further simplification of Group structure in through the cycle line with stated Group strategy  Attractive transaction terms  Reinforces Vedanta Limited’s position as India’s leadin

  9. Slide 9: Transaction timetable

    Transaction timetable 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 meeting 8th Septembe

  10. Slide 10: Appendix

    2S vedanta Appendix

  11. Slide 11: Transaction Approvals

    Transaction Approvals  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 o Listing requirements: majority of minority (Vedanta plc and Vedanta Limite

  12. Slide 12: Vedanta Ltd: Large, low cost and diversified asset base

    Vedanta Ltd: Large, low cost and diversified asset base FY2016 R&R Life EBITDA (years) Production (Rs. Crore) Key highlights 46.9 3,504 • India’s largest private-sector crude oil producer Oil & Gas 15+ 1 mmboe ($535mn) • Strong FCF generation even at low oil prices with opex of $6.5/bbl 2 6,484 • Po

  13. Slide 13: Geographical Footprint

    Geographical Footprint 6 Africa 15 3 15 14 4 2 1 14 13 23 20 13 25 5 20 13 7 12 1. Debari smelter 26 16 23. Lisheen mine, Ireland1 27 2. Chanderiya smelters 16 3. Rampura Agucha mine 28 21 8 17 4. Rajpura Dariba mine & smelters 29 18 30 and Sindesar Khurd mine 5. Zawar mine 6. Talwandi Sabo power pr

  14. Slide 14: Pro forma 2016 financials

    Pro forma 2016 financials Vedanta Limited consolidated Vedanta Limited consolidated (Rs. crore) 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.10.4 Gross Debt

  15. Slide 15: Conference Call Details

    Conference Call Details 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 Mumbai main access +91 22 3938 1017 India – 6:45 PM (IST) Mumbai standby access +91 22 6746 8333 Toll fre

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