Vedanta Limited · NSE:VEDL
Vedanta — Investor Presentation (February 2022)
24 slides from Vedanta's investor presentation, Feb 9, 2022
Slide 1: Vedanta Limited Investor Presentation Feb'2022
VEDANTA LIMITED INVESTOR PRESENTATION Feb’2022 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: 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 4: Strong Growth Momentum Continues
Strong Growth Momentum Continues ▪ Aluminium became the LARGEST INDUSTRIAL CONSUMER OF RE1 in India ▪ Jharsuguda collaborates with GEAR India for INDIA’S LARGEST E-Forklift Fleet Environment, ▪ Improved MSCI rating to B (earlier CCC) and CDP rating to B (earlier B-) Sustainability ▪ Board has approv
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: Financial snapshot Q3 FY 2022
Financial snapshot Q3 FY 2022 Revenue EBITDA EBITDA Margin 1 Attributable PAT (before exceptional items) ₹ 33,697 cr ₹ 10,938 cr 37% ₹ 4,189 cr Up 50% y-o-y Up 42% y-o-y Industry leading margin Up 27% y-o-y ROCE 2 Cash and Cash ND ND/EBITDA equivalents c.25% ₹ 25,207 cr ₹ 27,576 cr 0.7x Up ~1,250 bp
Slide 7: Balance Sheet and Debt Breakdown
Balance Sheet and Debt Breakdown Net Debt / EBITDA – Maintained at low level Debt Breakdown (as of 31st Dec 2021) 1.1 1.0 0.9 0.9 Debt breakdown as of 0.7 (in $bn) (₹ in 000’ Cr) 31st Dec 2021 Term debt 6.3 46.8 FY'18 FY'19 FY'20 FY'21 Q3 FY'22 Working capital 0.4 2.9 Short term borrowing 0.4 3.1 ▪
Slide 8: 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 8
Slide 9: Appendix
VEDANTA LIMITED INVESTOR PRESENTATION Appendix Sensitivity: Internal (C3)
Slide 10: 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 11: 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 12: Key Operational Highlights
Key Operational Highlights Q3 FY2022 9M FY2022 ✓ Aluminium, record aluminium* production of 578kt ✓ Aluminium, highest aluminium* production of ✓ Zinc India, record refined metal production of 261kt ~1.70 Mnt and alumina production of ~1.47 Mnt ✓ Zinc International, Gamsberg production at 41kt ✓ Zin
Slide 13: 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 22 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 14: Vedanta Cares: Roadmap for ₹5,000 crore in Next Years
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 15: Transforming for Good: Actions in support of the greater good
Transforming for Good: Actions in support of the greater good Net Zero by 2050 or sooner 1. RENEWABLE ENERGY | 2.5 GW RTC by 2030; reducing 25% absolute GHG emissions ▪ 500 MW Round-the-Clock RE power purchase under final approvals ▪ Vedanta becomes largest industrial consumer of Renewable Energy in
Slide 16: Transforming for Good: Actions in support of the greater good
Transforming for Good: Actions in support of the greater good Other critical ESG actions ESG Rating Improvements 1. WATER | Net water positive by 2030 a. Onboarded Agency for water positivity roadmap, water accounting across BUs ESG rating(1) 44.1 b. High impact initiatives - Ash pond water reuse at
Slide 17: Aluminium: Success Continues; Growing Value in Dynamic World
Aluminium: Success Continues; Growing Value in Dynamic World Highest Ever Aluminium Production Alumina Production and COP 2,055 282 290 230 277 1,747 249 1,647 1,387 1,315 1,104 976 876 565 469 497 570 578 1,438 1,697 407 511 472 1,345 1,465 Q3 FY21 Q2 FY22 Q3 FY22 9M FY21 9M FY22 Q3 FY21 Q2 FY22 Q3
Slide 18: Aluminium: Focus on forward & backward integration
Aluminium: Focus on forward & backward integration to bring structural changes & reduce market induced volatility $~650-750/t COP $/t 2,055 1,675-1,775 c. 1,300 – 1,400 Q3FY22 FY22e Target 2-3 years Captive Alumina 43% 43%→45% 100% Captive Coal 0% 0% 100% VAP 36% 35%→40% 80-90% ✓ Alumina: Optimised
Slide 19: Zinc India: Future-ready Mines to Drive Growth
Zinc India: Future-ready Mines to Drive Growth Key Highlights Q3: Mined metal Production (kt) 684 722 ▪ Mine metal production up 3% y-o-y and 2% q-o-q 244 248 252 ▪ Record refined metal production; up 11% y-o-y and 25% q-o-q Q3 FY21 Q2 FY22 Q3 FY22 9M FY21 9M FY22 Metal Production and COP ▪ Silver P
Slide 20: Zinc International: Gamsberg Positioning for Long Term Value Creation
Zinc International: Gamsberg Positioning for Long Term Value Creation Key Highlights Gamsberg: Gamsberg Key Levers of Q4 Performance ▪ Q3 production down 5% y-o-y due to lower Zinc 575 519 recovery and up 6% q-o-q on account of higher tons Zinc Reagent treatment Lead skid rougher pump box upgrade ex
Slide 21: Oil & Gas: Stable Operations, Focus on Delivery of Growth Projects
Oil & Gas: Stable Operations, Focus on Delivery of Growth Projects Operations Development Projects ▪ Production: Y-O-Y 9M average production rate up ▪ Mangala Infill : 10 new wells online from 161 Kboepd to 163 kboepd ▪ Tight Oil (ABH): 5 well program commenced ▪ Tight Gas (RDG): 27 well program com
Slide 22: Iron ore: Continued Performance Growth Trajectory
Iron ore: Continued Performance Growth Trajectory Sustaining growth at Karnataka Key Highlights Q3: ▪ Karnataka sales up 24% y-o-y and 22% q-o-q 4.0 ▪ VAB production up 39% y-o-y and down 3% q-o-q Sales (Mnt) 3.0 1.5 ▪ VAB margin down 49% y-o-y and 48% q-o-q due to 1.2 1.2 lower pig iron prices and
Slide 23: ESL Steel: Towards Long Term Organic Growth
ESL Steel: Towards Long Term Organic Growth Consistent Performance Key Highlights Q3: 111 ▪ Record Hot Metal production post acquisition, up 72 71 2% y-o-y and 20% q-o-q 83 32 ▪ Sinter plant and Blast Furnace have stabilized in 340 293 350 868 933 Q3 resulting improved Hot Metal production Q3 FY21 Q
Slide 24: FACOR: Delivering Stronger Growth
FACOR: Delivering Stronger Growth Strong Performance Continues Key Highlights Q3: 655 ▪ Achieved highest quarterly Fe Chrome production; 590 555 plant productivity enhancement by ~5% 58 50 ▪ EBITDA margin 5x y-o-y and down 10% q-o-q 112 18 19 20 77 majorly impacted by high coke prices Q3 FY21 Q2 FY2