Vedanta Limited · NSE:VEDL
Vedanta — Investor Presentation (February 2025)
17 slides from Vedanta's investor presentation, Feb 24, 2025
Slide 1: Corporate Presentation 2024-25
Corporate Presentation 2024-25 Sensitivity: Internal (C3)
Slide 2: Executive Summary
Executive Summary 01 Vedanta: Critical Mineral & Natural Resources Player 06 Disciplined Capital Allocation Framework 02 Fast Growing Business Portfolio 07 Continuously Improving Credit Profile 03 Expansion Supported with Feedstock Reserves 08 Doubling Businesses 04 Top Tier Positioning on Scale and
Slide 3: Critical Mineral and Natural Resources Player with Global Footprint
Critical Mineral and Natural Resources Player with Global Footprint LIBERIA EAST ASIA INDIA IRON ORE Glass PROJECT WESTERN UAE CLUSTER INDIA Fujairah Gold MULTIPLE (Iron Ore) NAMIBIA SCORPION MINE (Zinc) SOUTH AFRICA BLACK MOUNTAIN COPPER MINE & GAMSBERG ALUMINIUM (45% Market Share) (Zinc) POWER IRO
Slide 4: Fast Growing Business Portfolio of High-Quality Assets
Fast Growing Business Portfolio of High-Quality Assets Aluminium Vedanta Limited (HZL + ZI + FACOR) 2.4 → 3.1 MTPA Zinc India Zinc International Smelting Capacity 1.1 → 1.2 MTPA 325 → 500+ KTPA (2.85 MTPA in FY26) MIC Capacity Smelting Capacity (FY26) (FY26) 2 → 5+ MTPA 800 TPA FACOR Alumina Capacit
Slide 5: Long Life Reserves Base enabling growth
Long Life Reserves Base enabling growth FY2024 FY2025c POSITIONING R&R Life1 Production Guidance Aluminium 25+ 2,370kt ~2.4 mnt Strategically located large-scale assets with integrated power Zinc India 1,033kt 1075-1100 kt 25+ Largest integrated zinc-lead producer Silver 25+ 23.2moz ~24moz 3rd large
Slide 6: Top Tier Positioning on Scale
Top Tier Positioning on Scale Global GlobalPositioning Positioning India Positioning Aluminium Volume (MTPA) Zinc Mined Metal Volume (MTPA) Leadership Across Respective Business 3.8 3.3 1,111 1,079 3.1 • Vedanta Aluminium is the largest 2.7 2.4 742 Aluminium producer in India 500 • Hindustan Zinc Lt
Slide 7: Global Cost Leadership
Cost Leadership Global Cost Leadership Business Aluminium Aluminium Zinc ZincIndia India ZincInternational Zinc International 1st quartile position 1st decile position 2nd quartile position Current in global aluminium cost curve in global zinc mine cost curve in global zinc mine cost curve Positioni
Slide 8: Strong Operational Track Record
Strong Operational Track Record Zinc-Lead Silver Copper Aluminium Steel Power Iron Ore Oil & Gas Strong EBITDA Performance 1,800 In $ bn 1,600 4.4 Total Production Copper Equivalent (kt) 1,400 3.6 1,200 1,000 800 600 400 200 0.3 0 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
Slide 9: Disciplined Capital Allocation Framework
Disciplined Capital Allocation Framework Capital Allocation Framework CAPITAL • Guiding Principles: Volume augmentation, cost reduction and EXPENDITURE creating value added products • Growth projects: minimum IRR of ~18% Key Strategic Priority • Minimum 30% of PAT (before exceptional) Optimize DIVID
Slide 10: Focused on Growth and Shareholders Return
Focused on Growth and Shareholders Return Capex ($Mn) Dividend ($Mn) Capex investment of > $12 bn Dividend payout OF >$14 Bn (> ₹100,000 Cr) over the last 8-9 years over last 8-9 years 3,751 667 725 522 2,246 2,244 377 1,994 697 360 558 47 1,223 467 1,409 1,058 1,002 1,220 1,124 1,083 814 803 785 50
Slide 11: Capex Plan Under Implementation
Capex Plan Under Implementation Unspent4 as Approved Spent up to Spent in Business Capex in Progress (In $ mn) on 30th Sep Capex2 FY243 1HFY25 2024 Mangala, Bhagyam & Aishwariya infill, Oil and Gas 1,070 399 109 561 OALP, ABH infill, RDG infill, Offshore infill etc Jharsuguda VAP capacity expansion
Slide 12: Continuous Deleveraging
Continuous Deleveraging VedantaLimited Vedanta Limited VedantaVedanta Resources (Parent) Resources Med Q1FY24 Current FY20 Current FY25e Near Term Term VEDL Group1 Net ND/EBITDA > 1.9x > 1.4x > <1x Debt/EBITDA > 3.3x > 2.3x > ~2x > 1x EBITDA to Net Debt Ratio1 Debt at VRL Standalone2,3 Debt maturity
Slide 13: Continuous Improvement in Credit Profiles
Continuous Improvement in Credit Profiles Vedanta Limited Vedanta Resources (Issuer Rating) S&P Global FITCH Moody’s Vedanta Current Rating Rating Action BB BB Limited Ba2 BB- BB- Ba3 AA/Watch Upgrade from AA- B+/stable B+/stable B1/stable CRISIL B+ B+ Developing/A1+ /Watch Positive B1 B/stable B2 B
Slide 14: Targeting ~$10 Bn EBITDA and $5 Bn FCF
Targeting ~$10 Bn EBITDA and $5 Bn FCF Aluminium Zinc India Oil and Gas Iron & Steel Others Zinc Vol. 1.2 MTPA Iron Ore 30 MTPA Volume 3.1 MTPA Volume 150 kboepd ZI $ 0.3 bn Silver Vol. 800 tonnes Vol. EBITDA LME 2700 $/t Zn LME 3000 $/t Price 115 $t Brent Merchant 85 $/boe Power $ 0.4 bn 250 $/t Ir
Slide 15: 9M FY2025 Progress
Revenue Consolidated EBITDA PAT (Pre – Exceptional) Progress in 9M FY2025 +9% YoY 1 +40% YoY 1 +151% YoY 1 ₹ 1,10,936 crore ₹ 31,924 crore ₹ 14,438 crore; All time high 9M EBITDA PAT at ₹ 15,574 crore Production COP Segment EBITDA Aluminum Zinc India Iron Ore Aluminum ↓ 3% YoY Aluminum Zinc India ZI
Slide 16: ESG Leadership: Top Rank in the S&P's Global CSA 2024
ESG Leadership: Top Rank in the S&P’s Global CSA 2024 Integrating ESG through quality initiatives S&P Global Vedanta Limited Hindustan Zinc Vedanta Aluminium CSA 3% Diversified Metals & Mining Diversified Metals & Mining Aluminium 3% Category peers peers Peers 6% (248 in numbers) (248 in numbers) (3
Slide 17: Demerger on Track to Unlock Shareholder Value
Demerger on Track to Unlock Shareholder Value Vedanta Inc / VRL 56.4% 56.4% 56.4% 56.4% Aluminum Power Oil & Gas Steel & Ferrous Largest capacity in India with captive power and an alumina India’s largest private sector One of the largest Indian One of the largest private refinery crude oil producer