Vedanta Limited · NSE:VEDL
Vedanta — Investor Day (February 2024)
94 slides from Vedanta's investor day presentation, Feb 27, 2024
Slide 1: Analyst Meet
Analyst Meet February 2024 Transforming Together Inclusive Responsible Value-accretive Delivery Sensitivity: Public (C4)
Slide 2: Forward Looking Statement
Forward Looking Statement 1 The views expressed here may contain information derived from publicly available sources that have not been independently verified. 2 No representation or warranty is made as to 3 This presentation contains 'forward-looking statements' – that is, statements related to fut
Slide 3: Chairman’s Message
Chairman’s Message Anil Agarwal Chairman, Vedanta Limited 3 Sensitivity: Public (C4)
Slide 4: India’s Growth & Vedanta
India’s Growth & Vedanta India is the next Vedanta offers right global growth country and right engine industry Energy transition & IR Vedanta is 25 years 4.0 would be mineral young, aggressive on intensive growth India’s growth boosting demand for natural resources Sensitivity: Public 4 (C4)
Slide 5: Building the Nation
Building the Nation Natural Resources & Semiconductors & Electronics have important Display Glass role for an Atmanirbhar MAKE IN INDIA manufacturing is Bharat strategic for India Natural Resources Need to boost domestic account for 50% of production & India’s imports manufacturing to reduce imports
Slide 6: Vedanta Ahead
Vedanta Ahead Uniquely diversified Demerger will create Pure Play verticals to India holds huge Vedanta as Indian company across the pure play companies provide a menu of Resource potential. Institution – will get resource spectrum – unlocking true value choices for Haven’t explored to different lev
Slide 7: Building on our history and enabling growth
Building on our history and enabling growth Navin Agarwal Vice Chairman, Vedanta Limited 7 Sensitivity: Public (C4)
Slide 8: Vedanta – a custodian of India’s natural resources
Vedanta – a custodian of India’s natural resources, is well-positioned to capitalise on India’s economic growth Global demand for Minerals from Energy Technologies (2022 – 2050) CAGR 8.1%1 4.2x 4.5x GDP Target (Real) $3.75 tn $7 tn 3.3x 3.4x 3.1x 3.2x CAGR 8.8% 1.8x Per capita 1.2x income (Real) $2.
Slide 9: Sustainable and Profitable Operations
Sustainable and Profitable Operations – a commitment to business excellence and superior shareholder returns FY24e financials Legacy of business excellence Superior shareholding returns 1st quartile in global 13 $bn 81% Revenue 17.5 $bn cost curve across key segments Dividend over the last decade 3-
Slide 10: Significant volume upside post completions of ongoing growth projects
Significant volume upside post completions of ongoing growth projects; @ consensus prices, potential to deliver yearly revenue >30 $bn Aluminium Capacity (MTPA) Zinc India Capacity (KTPA) Zinc International Capacity (KTPA) Oil and Gas Production (Kboepd) 1,200 BMM Gamsberg 500+ 2.80 450 300 1,032 97
Slide 11: Potential to deliver $7.5+ bn yearly EBITDA
EBITDA Potential Potential to deliver $7.5+ bn yearly EBITDA Key projects Alumina Aluminium Captive Coal Refinery Mines Investment Hindustan Zinc $6 bn ( 2 → 6 MTPA) ( 2.3 → 3 MTPA ) ( 3.6 → 35 MTPA) Payback PeriodHindustan Zinc < 3 year Aluminium Value Gamsberg Zinc 1.2 MTPA Added Products Phase 2
Slide 12: Executive Leadership Team
Executive Leadership Team Our CEOs Our Functional Heads Arun Misra Navin Jaju Ajay Goel Ritu Jhingon Executive Director CEO- Iron Ore Chief Financial Officer Director - Group Comm & 35+ years of experience of 18+ years of experience across 24+years of rich leadership CEO Nandghar leading in various
Slide 13: Key takeaways
Key takeaways 01 02 03 04 Superior Performance: Sustainable and Efficient Strong Commitment to Exponential Growth on Operations: Stakeholders the Horizon: We've delivered industry Our low-cost, long-life We are committed to We're well-positioned for leading growth, achieving a assets boast a remarka
Slide 14: Our Purpose in Action
ESG Our Purpose in Action Priya Agarwal Hebbar Non-Executive Director, Vedanta Limited 14 Sensitivity: Public (C4)
Slide 15: Our commitment to excellence – our path to leadership
ESG Our commitment to excellence – our path to leadership Transforming Communities Key Highlights as on Dec’2023 Aim 1 Keeping community welfare at the core of business decisions Aim 2 Empowering over 2.5 million families with enhanced 1 million 0.7x skillsets Families skilled Water Positivity Aim 3
Slide 16: Solidifying our ESG commitment with S&P CSA ranking upgrade
Sustainability Leadership Solidifying our ESG commitment with S&P CSA ranking upgrade S&P CSA rankings 3 Vedanta Limited1 Among 238 global companies 1 Hindustan ZincHindustan Zinc 1 Among 238 global companies 1 Vedanta Aluminium2 Most sustainable aluminium producer Vedanta Limited Overall S&P CSA sc
Slide 17: Vedanta’s social impact
Vedanta’s social impact 136+ 50 Million+ 1300+ INR 5000 Cr Initiatives and Projects Lives Villages Social impact investment Impacted reached over the next 5 years Empowering communities, transforming lives, and facilitating nation building through sustainable and inclusive growth. Flagship Projects
Slide 18: Value Accretion
Value Accretion Committed to delivering all roundESG performance ↑ Ajay Goel Chief Financial Officer, Vedanta Limited 18 Sensitivity: Public (C4)
Slide 19: Unparalleled and inimitable asset base with replacement cost > $50 billion
Unparalleled and inimitable asset base with replacement cost > $50 billion Jharsuguda Smelter → 1.8 MTPA Iron Ore Mines: 13 MTPA BALCO Smelter → 0.6 MTPA • Karnataka mines • Goa Mines Lanjigarh Refinery → 2 MTPA • WCL Captive Power → 4.2 GW Pig Iron Capacity: 1 MTPA Coal mines → 3.6 MPTA Steel Capac
Slide 20: Strong portfolio of low-cost and long-life assets with exploration upside
Strong portfolio of low-cost and long-life assets with exploration upside FY2023 FY2024e Full Competitive Position on Cost POSITIONING R&R Life1 Production Production Capacity2 Curve Quartiles5 Aluminium 2,291kt ~2.3mnt ~3mtpa Strategically located large-scale assets with integrated power I II III I
Slide 21: Natural resources powerhouse contributing towards nation building
Vedanta at a glance Natural resources powerhouse contributing towards nation building Towards building nation Revenue Group EBITDA1 Group Net Debt1 FY 24 e $17.5 bn $5 bn $13 bn Vision $50 bn $18 bn Zero Vedanta Limited - India Contribution to 1.5% contribution to 87,500+ $50 bn+ contribution to Nat
Slide 22: Proven track record of superior shareholder returns
Proven track record of superior shareholder returns 3 years1 accumulated Total shareholding return in last dividend yield 3 years1 Dividend payout of 81% $9 Bn Since FY 2020 179% 160% 144% 131% 81% 3-year1 accumulated dividend yield; Topping Nifty 50 companies 11% 5% 2% 179% 3-year1 total share hold
Slide 23: Positioned to operate at full capacity to drive superior FCF generation
Driving Success: Positioned to operate at full capacity to drive superior FCF generation and robust capital structure FY24 e FY 25 e FY26 e+ All building blocks in place Group EBITDA1 5 Bn $ 6 Bn $ 7.5 Bn $ for EBITDA augmentation FCF pre growth capex2 2.8 Bn $ 3.5-4.0 Bn $ 4.5-5.0 Bn $ 7.5 ($bn) Gr
Slide 24: Vedanta Resources Balance sheet – De-leveraged and Reprofiled
Vedanta Resources Balance sheet – De-leveraged and Reprofiled Net debt at VRL Standalone Maturity restructured through Liability Management (LM) ($bn) Pre Post ($mn) 9.7 4,135 8.3 7.7 6.0 6.2 1,769 1,108 1,268 918 756 784 645 150 - Mar-22 Sep-22 Mar-23 Sep-23 Est. FY25 FY26 FY27 FY28 FY29 Mar-24 VRL
Slide 25: Vedanta Group short term Debt Management
Vedanta Group short term Debt Management quite comfortable with healthy cash flows Vedanta Resources Long Term Debt Maturities Vedanta Limited Long Term Debt Maturities Loans Bonds ($bn) Subsidiaries Standalone ($bn) 0.8 2.0 0.7 3.0 0.2 2.2 1.1 1.3 1.3 0.9 FY 25 FY 26 FY27 FY 25 FY 26 FY27 onwards o
Slide 26: FY25: A Year of transformative Growth
Key take-aways FY25: A Year of transformative Growth EBITDA of FY25e Improved capital Consistent focus ~ 6 $bn with structure, better on deleveraging Growth of >35% positioned to manage leading both India and ND/EBITDA trend Holdco maturities in towards <1.0x near term. 26 Sensitivity: Public (C4)
Slide 27: Shaping our portfolio for the future
Demerger Shaping our portfolio for the future Ajay Agarwal President Finance 27 Sensitivity: Public (C4)
Slide 28: Today - Operating Companies with “Asset Managers”
Today - Operating Companies with “Asset Managers” Aluminum Oil & Gas Steel & Ferrous Copper Largest capacity in India with India’s largest private sector Vedanta Inc / One of the largest Indian private One of the largest custom captive power, integrated coal crude oil producer VRL sector exporter of
Slide 29: Tomorrow - Streamlined pure-play “Asset Owner” model
Tomorrow - Streamlined pure-play “Asset Owner” model Vedanta Inc / VRL 62% 62% 62% 62% 62% Aluminum Power Base Metals Oil & Gas Steel & Ferrous Largest capacity in India with captive power and an alumina Diversified portfolio of India’s largest private sector One of the largest Indian One of the lar
Slide 30: Rationale for “A Simpler Vedanta”
Rationale for “A Simpler Vedanta” Valuation: Capital markets 6 pure-play businesses with a high perceive a capital allocation risk 1 1 degree of homogeneity. World-class which results in a discount to assets with global scale and best-in- intrinsic fair value class cost positions Liquidity and growt
Slide 31: Capital Structure Formulation
Capital Structure Formulation Allocation of the current debt at VEDL Debt split is going to be only standalone level to the resulting for standalone debt, debt at entities is a key consideration subsidiaries will continue as is Debt allocation will Debt allocation exercise be done as per will be in
Slide 32: Vedanta Demerger – Indicative Timeline for Implementation
Vedanta Demerger – Indicative Timeline for Implementation FYFY23-24 23-24 FY 24-25 FY24-25 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Board meeting of VEDL approved the Scheme of Arrangement Submission of Scheme with stock exchanges Receipt of NOC from lenders Receipt of NOCs fr
Slide 33: Best in Class Leadership
Best in Class Leadership CEO and Management teams • Fully independent and empowered CEOs • End-to-end responsibility for the John Slaven Vibhav Agarwal business including raising capital, CEO Aluminum CEO Power brand management, legal & Harvard Business School, MBA MBA - IIM, Mumbai government affai
Slide 34: Vedanta Inc – A bouquet of world class diversified assets
Vedanta Inc – A bouquet of world class diversified assets Indicative combined near term valuation SPTL (71.37%) Total combined valuation ~ $ 40 - 43Bn Power Products Attributable Valuation ~ $ 25 - 30 Bn KCM One of the world’s largest Copper 21 18 $ Bn 15 (79.4%) producer 12 9 Attibutable Valuation
Slide 35: The Metal of the Future
Aluminium The Metal of the Future John Slaven, Chief Executive Officer, Vedanta Aluminium 35 Sensitivity: Public (C4)
Slide 36: Increasing market share in India’s strongly growing market
Increasing market share in India’s strongly growing market Growth Rate of India’s GDP vs Aluminium Consumption (%) Aluminum Consumption – India (in kt) 20.0 6000 5,970 16.0 5,496 14.0 5,033 15.0 5000 11.1 4,343 10.0 8.9 3,909 Imports 4000 3,715 3,621 6.8 6.5 7.0 7.0 6.5 3,470 3,427 5.0 4.0 3.7 3000
Slide 37: Vedanta’s Compelling Competitive Advantage
Vedanta’s Compelling Competitive Advantage delivering strong performance Vertically integrated, strategically located assets creating unrivalled, unequalled competitive advantage Production volume of 599KT in 3QFY24 (ARR: 2.36 MTPA) Located in mineral rich province EBITDA margin of $578/T in 3QFY24
Slide 38: Demonstrated track record of Operational Excellence in Volume and Cost
Demonstrated track record of Operational Excellence in Volume and Cost Production Volume (in KT) Cost of Production (in $/T) 2,900 2,400 2,369 2,700 2,653 2,291 2,268 2,500 2,429 2,200 2,300 2,149 2,100 2,059 1,932 2,000 1,969 1,900 1,814 1,904 1,735 1,700 1,800 1,500 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY20 FY21
Slide 39: Driving profitable growth through balanced vertical integration
Driving profitable growth through balanced vertical integration Projects underway to achieve ~3 MTPA of Integrated Supply Aluminum Value Chain – Existing Post Expansion Bauxite Alumina VAP Bauxite VAP 2 MTPA 1.4 MTPA 2.6 MTPA 3 MTPA (Captive) (61%) 12 MTPA Alumina (83%) (Overland) (Captive) 0.5 MTPA
Slide 40: Major Growth and Vertical integration projects soon to be in Production
Major Growth and Vertical integration projects soon to be in Production Project\Timeline1 3QFY24 4QFY24 1QFY25 2QFY25 3QFY25 4QFY25 1QFY26 1.5 MTPA 1.5 MTPA Refining (2 → 5 MTPA) 0.4 MTPA, Balco Smelting (2.3 → 2.8 MTPA) 8 MTPA, Kuraloi 6 MTPA, Radhikapur 20 MTPA, Ghogharpalli Captive Coal 9 MTPA, S
Slide 41: Vedanta Aluminium’s Powerful Cash Generation Engine
Vedanta Aluminium’s Powerful Cash Generation Engine Planned ~2x growth in EBITDA and ~2x multiple expansion to deliver exceptional value creation $/T EBITDA MTPA Molten Metal EBIDTA Multiple 100 ~1,000 150 25 150 Target 578 8-12x Current 5x *NSR – Net sales revenue 41 Sensitivity: Public (C4)
Slide 42: Executive Leadership Team
Executive Leadership Team John Slaven Sunil Gupta Composition of our leadership Chief Executive Officer Chief Operating Officer team: +37 years of Metals & Mining experience +29 years of experience in Aluminium with BHP, Alcoa, BCG, De Beers and Cement Industry ▪ Our leadership team is a powerhouse
Slide 43: Key takeaways
Key takeaways Strongly growing Home ground Local, vertically- Exclusive focus on ~3MTPA production demand for Metal of advantage in India, integrated supply value-added at $1,000/T the Future to enable with market chain enabling products to meet EBITDA margin energy transition expected to double ind
Slide 44: Galvanising tomorrow
Zinc India Galvanising tomorrow Arun Misra Executive Director Vedanta Limited 44 Sensitivity: Public (C4)
Slide 45: Zinc India: Key Strengths
Zinc India : Key Strengths • World’s 2nd largest integrated zinc producer and 5th leading silver producer Smelting Capacity • Fully integrated India’s only zinc-lead-silver producer over five decades of expertise in mining and smelting • 2nd highest zinc R&R base globally with average grade of Zinc
Slide 46: Zinc India: Vision, Mission and Growth Narrative
Zinc India: Vision, Mission and Growth Narrative Vision to be the world’s largest and most admired Zinc, Lead & Silver Company 01 02 03 Capacity Expansion Mine Portfolio with long life Cost Optimization • Roaster of 160 Ktpa at Debari: FY2025 • Innovative technology and advanced • Efficient ore haul
Slide 47: Zinc India: Vision, Mission and Growth Narrative
Zinc India : Vision, Mission and Growth Narrative MISSION: Enhance stakeholder value, be the lowest cost producer & maintain market leadership 04 05 Expanding VAP Portfolio Sustainable Future • Ramp up of 30kt Alloy plant • RE power delivery agreement to cater • Forward integration through 510 Ktpa
Slide 48: Executive Leadership Team
Executive Leadership Team Arun Misra John Larson Composition of our leadership Chief Executive Officer Technical Advisor - Exploration team: Chairman of International Zinc 40+ yrs. international experience in Association (IZA) and Vice Chairman of Exploration & Mining. Confederation of Indian indust
Slide 49: Vedanta Iron Ore Business
Vedanta Vedanta Zinc Iron Ore India Business Business Arun Misra Executive Director Vedanta Limited 49 Sensitivity: Public (C4)
Slide 50: Sesa Goa Overview
Sesa Goa Overview Liberia (WCL) Karnataka (IOK) Goa (IOG) Sesa Coke Includes Bomi (currently producing), Bea and Mano iron Includes Bicholim iron ore mine and Cudnem iron ore mine Includes two merchant coke Includes A. Narrain iron ore mine (first production expected mid-2024) plants in Gujarat and
Slide 51: Sesa Goa: Growth
Sesa Goa : Growth Saleable Iron Ore (Mnt dmt) Production Volume (Mnt) IOK WCL IOO IOG Mining 55 VAB Coke 4 • VAB – 0.4 MTPA DIP • IOK – 15 MTPA EC Enhancement 600 10 • 1 MTPA Green-steel Expansion • WCL – 31 MTPA Expansion 4X 3X • IOO – Captive Consumption Ramp-up • IOG – EC Enhancement to 4 MTPA 18
Slide 52: Executive Leadership Team
Executive Leadership Team Navin Jaju Krishna Reddy Chief Executive Officer Chief Operating Officer - Mines Composition of our leadership 28+ years of Mining and Mine Planning team: Business Leader with exceptional experience across Mines in multiple exposure, acumen and experience geographies across
Slide 53: Vedanta Steel Business
Vedanta Vedanta Zinc Steel India Business Business Arun Misra Executive Director Vedanta Limited 53 Sensitivity: Public (C4)
Slide 54: ESL at a Glance
ESL at a Glance Integrated Platform - EBITDA 3 MTPA 5.5 MTPA 65% ~2,300 UP TO 20 - 30%(1) 3MTPA- 500 mn$ 15MTPA Operational Installed 100% Captive Captive Power Acres Lower Capex 10 MTPA- 2 bn$ Highlights Expansion Capacity Iron Ore in Odisha (Thermal, of Land for gas based Potential (by Dec-24) (c.
Slide 55: Integrated, Strategically Located, Highly Scalable & Capital Efficient
Integrated, Strategically Located, GREEN STEEL Platform Highly Scalable & Capital Efficient EBITDA 74 32 $/t Capacity (MTPA) 4 100% Captive Mar'22 Mar'23 Dec'24 1 Integrated Iron Ore in Odisha 3 (c.78MT(2) R&R) 3 2 1.7 Strategically Proximity to coal and iron-ore 1.5 2 Located mines, multiple ports,
Slide 56: Executive Leadership Team
Executive Leadership Team Composition of our leadership Ashish Gupta Ravish Sharma team: Chief Executive Officer Chief Operations Officer 30 years of rich experience in Driving operational excellence Multinationals. Leader with proven through for the last 18 years ▪ Leadership team has +20 years of
Slide 57: Vedanta Ferro Alloys Business
Vedanta Ferro Alloys Business 57 Sensitivity: Public (C4)
Slide 58: FACOR’s Existing Asset-base, R&R
FACOR’s Existing Asset-base, R&R Mines R&R: LEASE LEASE PERIOD RESERVE RESOURCE MINES 45 & 33 MVA Furnaces AREA (Ha) (year) (Mn ton) (Mn ton) 100 MW Power Plant Osthapal 73 2035 19.6 17.5 K'ggta 24 2058 0.33 1.5 Kathpal 113 2030 0.5 1.1 Boula 187 2032 4.08 1.4 Katasahi 14 2048 0.4 0.05 Total 411 - 2
Slide 59: FACOR’s Growth Vision
FACOR’s Grow th Vision Poised to be India’s largest Ferrochrome producer by 2027 with 500 KTPA capacity 67 200 500 500 KTPA Volume KTPA Capacity KTPA Capacity KTPA Capacity Mn Revenue $70 $206 $390 $650 Mn EBITDA $13 $56 $104 $220 $ Per Ton NSR $940/T $1290/T $1300/T $1300/T $ Per Ton COP $763/T $94
Slide 60: Executive Leadership Team
Executive Leadership Team Karan Kejriwal Pankaj K. Sharma Composition of our leadership Chief Financial Officer Chief Executive Officer Financial expert with 14+ years of team: Leader with 24+ years of diversified rich experience in metals, mining & experience in metals, mining, & power industry cem
Slide 61: Key Takeaways
Key Takeaways HZL Iron Ore ESL FACOR • Robust EBITDA margin of ~50% backed by operational • Capacity ramp up • 2,300 acres of • India’s Largest excellence, technological advancements, cost at Liberia from contiguous land Ferrochrome optimization and strong resource base FY24 Exit rate of and access
Slide 62: Taking advantage of clean energy transition
Base Metals Taking advantage of clean energy transition Chris Griffith Chief Executive Officer, Vedanta Base Metal 62 Sensitivity: Public (C4)
Slide 63: Base Metals Overview
Base Metals Overview Diverse and highly scalable base metal portfolio critical for the world's energy transition needs Locations of Key Operations Business Overview Base Metals Zinc International Copper India KCM Metals Produced • Zinc, Lead & Silver • Copper & Gold • Copper & Cobalt UAE Reserve & R
Slide 64: Base Metals Assets Overview
Base Metals Assets Overview Highly scalable base metal portfolio of multinational future-facing assets Zinc International Copper Sector KCM Fujairah – UAE & Black Mountain Gamsberg Copper India Mining Processing Saudi Arabia Copper India • Underground Mining • Open Cast Mining • Silvassa Refinery 22
Slide 65: Potential Valuation > $10 billion
Value Proposition Potential Valuation > $10 billion Production Potential Valuation VZI KCM Copper VZI KCM Copper 4x 18x 15x 3000 12,000 11,189 2500 2417 10,000 3,171 2000 8,000 1071 1427 2,175 1500 6,000 5,295 258 1000 692 1,733 4,000 1,100 5,844 550 214 500 1088 2,000 260 70 521 592 2,462 0 220 - F
Slide 66: Vedanta Zinc International – Vision to be 1MTPA producer
Vedanta Zinc International – Vision to be 1MTPA producer at <1,200$/t Strong pipeline of projects to tap on ~35 MT R&R Cost & Mine Portfolio Ramping up Exploration Capacity Ramping up Drive cost and margin profitability with long life to enhance R&R Expansion Gamsberg mine EBITDA potential Optimisat
Slide 67: Gamsberg Phase 2 Project – Making good progress
Gamsberg Phase 2 Project – Making good progress Key Milestones Planned Completion Capex Zn MIC End of H1 FY25 $466m 200 ktpa followed by ramp up Progress to date Engineering 100% Thickener Procurement 93% Construction 26% 52% Civil 45% Overall Progress Structural 23% Equipment 5% Piping, Electrical
Slide 68: To become 1 million tonnes custom copper producer by 2030
Copper Sector Vision To become 1 million tonnes custom copper producer by 2030 Custom smelting & refining of Copper Fujairah State of the Art >2X increase in Copper India Ramp up cathode UAE & Greenfield expansion Profitability profitability (EBITDA volume to ~500ktpa Saudi KSA project in Saudi Arab
Slide 69: Konkola Copper Mines
Konkola Copper Mines Low-cost brownfield expansion to achieve +300ktpa production by 2031 Project and Execution plan to achieve 300 ktpa KDMP ramp up to Cost & Drive cost and margin Mine Portfolio Strong R&R with high Capacity achieve mined profitability EBITDA potential with long life copper grade.
Slide 70: Key takeaways
Key takeaways A portfolio of large- Unlocking further Aspiring to become a Heading towards 1 Leading to a potential scale, multinational potential with assets premier 1 mtpa mtpa Zinc production enterprise valuation assets primed for the like KCM in Zambia Copper producer by milestone by 2030 at sur
Slide 71: Fuel for Change
Oil & Gas Fuel for Change Steve Moore Deputy Chief Executive Officer, Vedanta Oil and Gas 71 Sensitivity: Public (C4)
Slide 72: Growing share in India’s strongly growing market
Growing share in India’s strongly growing market Global energy demand by sector Energy demand by Countries Percent of primary energy - Primary energy – Quadrillion Btu - Quadrillion Btu Quadrillion Btu 750 750 100 Other Renewables Residential/Commercial 80 Wind/Solar Nuclear 500 500 Other Industrial
Slide 73: Vision: Cairn Oil & Gas | Fuel for Change
Vision : Cairn Oil & Gas | Fuel for Change Assets, Acreage & R&R • Cairn has 62 blocks Contribute over • (5 PSC, 46 OALP, 10 DSF, 1 CBM) • >60,000 sq. km Acreage • R&R 1.2 bnoe 50% Key Enablers People of India’s Oil Technology & Gas Production Partners Safe & Sustainable Production 73 Sensitivity: P
Slide 74: Strong Reserve and Resource Base
Strong Reserve and Resource Base Convert PR → Resources → Reserves (Mmboe) Long Term Mid Term Short Term 5,000 668 New Exploration/ Near Execution 51 Opportunities Appraisal Wells Projects 485 Production Concept 320 175 Risked* Potential (1,250) Technology to unlock 297 310 Appraisal (?) Unconventio
Slide 75: Development Projects
Development Projects Resources to Potential Avg Type Location Project Year of Production Reserves Production (kboepd) Near Execution Rajasthan Onshore Durga (inc. Appraisal) 50-100 15-20 FY24 Rajasthan Onshore Satellite Fields* 60 10-15 FY26 Concept Rajasthan Onshore Tight Oil MBH 30-50 5-8 FY26 Off
Slide 76: Exploration Portfolio – Overview
Exploration Portfolio – Overview Rajasthan: North-East: Western Offshore, Eastern Offshore 1112 8 OALP blocks 12 OALP blocks 1540 North (HF-GV) Cambay: 12 OALP blocks Rajasthan North-East GK-GS Cambay RJ PSC, 404 MB Mahanadi Ravva Unconventional, Western Offshore: PSC, 304 7 OALP blocks KG Eastern O
Slide 77: Production Potential
Production Potential Kboepd Gross 300 250 Exploration (1) 200 ▪ Change in Mix of Gas from 20% to 50% 150 2C Resources ▪ Contribution of RSC blocks to increase > 40% 100 2P Reserves 50 0 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 2P Developed Reserves 2C Discovered Resources Exploration (1) Ri
Slide 78: Cairn Decarbonization Roadmap
Cairn Decarbonization Roadmap Path to Net Zero (1) Aim for 2030 with an aggressive target for 2028 Emissions Starting Reduction / Point Electrification Renewables Investments 35 (2) (25 MW committed 47 MW underway) kgCO2e/boe Waste to Power + Carbon Capture + ~2X EOR (Concept Studies) Natural Carbon
Slide 79: Executive Leadership Team
Executive Leadership Team Steve Moore Gary Ingram Mandeep Narang Dy. Chief Executive Officer President Exploration Director Operations 37 years global experience in 30 years of global experience 21 years experience in Oil & Gas in finding Oil & Gas managing Oil & Gas operations Hitesh Vaid Robert Da
Slide 80: Key takeaways
Key takeaways Uniquely positioned Rich set of acreage Strong Reserve & Robust exploration Experienced to meet India’s comprising of Resource portfolio of portfolio with over 5 Management team growing demand Onshore & Offshore 1.2 million barrels to billion barrels of complimented by fields across In
Slide 81: Good times ahead
Power Good times ahead Vibhav Agarwal Chief Executive Officer, Vedanta Power 81 Sensitivity: Public (C4)
Slide 82: Good time ahead for Power Sector 2.0
Good time ahead for Power Sector 2.0 Strong Correlation between GDP and Power Consumption Thermal PLF % and IEX RTC Price Power Demand Growth %1 Per Capita (units)1 (Rs./kWh)1 GDP growth rate 25,940 75% All-India thermal PLF (%) IEX RTC price (Rs./kWh) 7 Electricity Requirement Growth rate 5.8 70% 5
Slide 83: Thermal Opportunity – Explosive growth ahead
Thermal Opportunity – Explosive growth ahead Globally - RE installed capacity vs Thermal Opportunity – Thermal Power remains dominant 1 RE % share in power generation mix2 Need for Capacity Addition1 Non-RE RE Installed RE Capacity (GW) Capacity Addition Peak Power - Demand 1600 50% required by FY32
Slide 84: Vision – Vedanta Power
Vision – Vedanta Power Conventional Coal Power blocks Grow the generation Acquire coal blocks to business to 10-12 GW via support our thermal organic growth as well as generation business Brownfield expansion Capture a larger pie of the growth opportunities available in the Power Sector 2.0 & contri
Slide 85: Asset Portfolio
Asset Portfolio Operating Capacity : 2580 MW MEL : 1000 MW Athena : 1200 MW 4780 MW FY24 FY25 FY26 FY27 4780 MW running at full efficiency Talwandi Sabo Power Jharsuguda Meenakshi Energy Athena Operational Growth Limited 1980 MW IPP 600 MW Limited 1000 MW 1200 MW 4th largest Punjab Odisha Andhra Pra
Slide 86: Accelerating growth in EBITDA, Revenue (FY24-FY27)
Accelerating growth in EBITDA, Revenue (FY24-FY27) FY24 FY27 Share of Revenue FY 24 Share of Revenue FY 27 TSPL JSG TSPL JSG ATHENA MEENAKSHI All figures are 4541 in ₹ Cr 6099* 30% Revenue ₹ 6910 crore 2.2X ₹ 15000 88% 1222 crore 8% 6148* 40% 3404 22% EBITDA ₹ 1050 crore 3.4X ₹ 3500 811 crore 12% *R
Slide 87: Key takeaways
Key takeaways Already a significant Power Business to Growth roadmap of Capacity expansion RE switchover of metal player in the Power be a major Power Business beyond ~5 GW business to enable Sector with ~5 GW contributors to includes foray into driven through captive capacity to also capacity botto
Slide 88: Building a future-ready organization
People practices Building a future-ready organization Madhu Srivastava Chief Human Resources Officer 88 Sensitivity: Public (C4)
Slide 89: People: Our Biggest Asset
People: Our Biggest Asset 13,000 75,000+ 21% 33 28% 50+ Executives Total Gender Average Leadership Locations Workforce Diversity Age Diversity Next set of 3000 leaders Company with diverse Professionally driven company are home grown through demographics – Nationality, - Each business having fully o
Slide 90: Talent Building Initiatives
Talent Building Initiatives Demography Emerging V-Lead Women Leaders Women Leadership High Potential talent 5000+ Development 200 75 Identification Engineers V-Desire Potential Unlock Employee 120 60+ leadership assessment, Centric Initiative coaching and executive 100 education Expats/ Advisor Tale
Slide 91: Industry leading Policies & Programs
Industry leading Policies & Programs • Market Benchmarked, best in class reward programs including fixed and variable remuneration Wealth (Bonus, Stock Options, Incentive Programs) Creation • Wide coverage through ESOPs Stock options, 1/3rd executives covered Parenthood Policy Benefits for Transgend
Slide 92: Appreciation & Awards
Appreciation & Awards 5 Group Companies (Cairn, VLL, BALCO, Sesa, Copper and Runaya) identified as “Companies with Great Managers 2023” – 5th consecutive year Managerial Awards Brandon Hall Group Gold award for excellence in the Talent Management Vedanta as a Group Certified as ‘Kincentric Best Empl
Slide 93: Vedanta Promising a Bold tomorrow
Conclusion Vedanta Promising a Bold tomorrow Leadership in Global Cost Curve in Consistent focus on deleveraging EBITDA of FY25 e ~ 6 $bn Doubling combined Power Capacity Aluminum & Zinc India ~ 10% CoP leading ND/EBITDA trend towards with Growth of >35% (IPP) to ~5 GW from 2.6 GW reduction target <
Slide 94: Vedanta Resources to further deleverage by $3 bn
Conclusion Announcement Vedanta Resources to further deleverage by $3 bn over next 3 years and bring its standalone debt below $3 bn. 95 Sensitivity: Public (C4)