Vedanta Limited · NSE:VEDL
Vedanta — Investor Presentation (June 2021)
36 slides from Vedanta's investor presentation, June 2021
Slide 1: Investor Presentation
Investor Presentation VEDANTA LIMITED June 2021 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: Vedanta: World-Class Natural Resources Powerhouse
Vedanta: World-Class Natural Resources Powerhouse ▪ One of the largest diversified natural resource businesses in the Global Mindset world Right Commodities ▪ 85%+ of EBITDA comes from Zinc, Aluminium and Oil & Gas ▪ World-Class player with a proven record in India and South Africa Right Geography ▪
Slide 4: ESG is core to everything we do
ESG is core to everything we do Achievements in FY 2021 On track to Achieve Vedanta’s Vision ▪ Water Savings of 2.03 mm3 ▪ Zero discharge across all our sites ▪ 1.86 million GJ Energy Savings ▪ 20% reduction in GHG emission intensity by 2025 from a 2012 baseline ▪ Reduced GHG emissions by 13.0 milli
Slide 5: Ideally Positioned with Attractive Commodity Mix
Ideally Positioned with Attractive Commodity Mix Vedanta has unparalleled exposure to India, the world’s fastest growing major economy with excellent diversified exposure 2021 2030 CAGR World CAGR India demand Global demand GDP CAGR 2020–20302 CAGR 2020–20302 (real terms) $2.8trn $4.8trn 6.3% 3.1% G
Slide 6: Attractive Business Portfolio
Attractive Business Portfolio Aluminum Zinc & Silver Oil & Gas Iron & Steel ✓ Largest aluminum ✓ One of the Largest ✓ India’s largest private- ✓ India's largest private capacity in India with integrated zinc- lead sector crude oil producer sector exporter of iron ore captive power and an smelter sin
Slide 7: Key Highlights: FY 2021
Key Highlights: FY 2021 Production Cost of Production R&R Records Lower Advancing At Zinc India, Aluminium & Zinc Across all the businesses Enhancing life and R&R base International Reliability Technology & Digitalization COVID-19 Improved On Track Highest safety standards No major operational disru
Slide 8: Delivering Strong Operational Performance in Challenging times
Delivering Strong Operational Performance in Challenging times Aluminium Zinc India Gamsberg 1,047 1,690 954 1,347 1,445 1,288 Strong 1,904 1,969 870 930 108 145 operational recovery FY20 FY21 FY20 FY21 FY20 FY21 Aluminium (kt) COP ($/t) Metal (kt) COP ($/t) MIC Production (kt) COP $/t Record Produc
Slide 9: 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 Mtpa ▪ All expansion - EOR smelter from 2.0 Mtpa ho
Slide 10: Financial snapshot FY 2021
Financial snapshot FY 2021 EBITDA Attributable PAT (before Gross Debt ND exceptional items) $ 3,689 mn $ 1,640 mn $ 7,780 mn $ 3,331 mn 30% up Strong financial performance ~4% lower EBITDA Margin * ROCE # Cash & Cash Equivalents ND/EBITDA 36% c.19% $ 4,450 mn 0.9x Industry leading margin Improved do
Slide 11: Capex and Returns Profile
Capex and Returns Profile Growth CAPEX Profile, $bn Oil & Gas Zinc Al & Power Copper Other Optionality Full year Capex guidance 0.7 1.0 1.2 1.5 1.2 0.7 1.1 1.1 0.1 0.2 0.8 0.8 0.1 0.7 0.1 0.5 0.1 0.6 0.1 0.3 0.2 0.2 0.3 0.1 0.5 0.3 0.2 0.3 0.1 0.2 0.1 0.1 0.5 0.5 0.2 0.4 FY2016 FY2017 FY2018 FY2019
Slide 12: Balance Sheet and Debt Breakdown
Balance Sheet and Debt Breakdown Net Debt / EBITDA – maintained at low level Debt Breakdown (as of 31st Mar 2021) 1.1 1.0 Debt breakdown as of 0.9 0.9 (in $bn) 31st Mar 2021 0.4 Term debt 7.3 Working capital 0.2 FY'17 FY'18 FY'19 FY'20 FY'21 Short term borrowing 0.3 ▪ Liquidity: Total consolidated d
Slide 13: 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 13
Slide 14: Appendix
Appendix Sensitivity: Internal (C3)
Slide 15: 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 21 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 16: Resilience under COVID-19 Pandemic
Resilience under COVID-19 Pandemic No impact on operations in current FY, during lockdown given Limited Disruptions to Operations essential nature of all businesses Low cost production with One of the lowest cost producers across various commodities, with positive FCF positive FCF generation even un
Slide 17: COVID-19 Response: Supporting Communities, Employees & Partners
COVID-19 Response: Supporting Communities, Employees & Partners Vedanta Cares 1,000 bed initiative in 10 locations across India will add Helping Community 10 ventilator-equipped beds, 90 oxygen-support beds in each location. ▪ Aluminium, Cairn, HZL have added almost 1000 additional Global Standards
Slide 18: Heading Towards – Zero Harm, Zero Waste, Zero Discharge
Heading Towards – Zero Harm, Zero Waste, Zero Discharge Safety Program Update ▪ Comprehensive focus on HSE at CEO and Group ExCo Level; Consequence Management program set up Focus on Learning and ▪ New Vedanta-wide Fatality Investigation Procedure Improvement ▪ Working groups focusing on critical ri
Slide 19: Climate Change Roadmap
Climate Change Roadmap Building Blocks to achieve Net-Zero Carbon Emissions Avoid Increase Renewable Energy Deployment Minimize Align with Science Based Targets Offset Bridge gap by sequestration & carbon credits use Disclose Annual TCFD Climate Change Report FY2021 Milestones ▪ 13.6 million tons of
Slide 20: Aluminium: Success Continues; Growing Value in Dynamic World
Aluminium: Success Continues; Growing Value in Dynamic World Aluminium Production & COP Performance Update 1,904 1,969 Quarter Performance: 1,451 1,387 1,433 ▪ Highest ever Aluminium production 531 kt*, up 12% y-o-y and 1,690 1,347 7% q-o-q 474 497 531 ▪ Aluminium COP $ 1,433/t, down 1% y-o-y and up
Slide 21: Alumina: Expanding Lanjigarh on path to Vertical Integration
Alumina: Expanding Lanjigarh on path to Vertical Integration Grow Into Among One Of The Largest Single-location Alumina Refineries In The World 5 Capacity (Mtpa) 2 Expected Project Completion by Q1 FY2023 Present Target Strong Foundation for Expansion Finest Technical Mix of global & local bauxite T
Slide 22: Zinc India: A Year Full of the Achievements
Zinc India: A Year Full of the Achievements Sustained production post-transition to Performance Update fully UG mining company 19% UG ▪ Highest ever Ore production of 15.5 million MT CAGR ▪ Highest ever Mined Metal Delivered of 972kt, up 6% 972 Mined Metal in kt 223 936 917 426 primarily on account
Slide 23: Zinc India: Strategy in Practice for Executing Growth Imperatives
Zinc India: Strategy in Practice for Executing Growth Imperatives Strengthen Cost Leadership Portfolio of Mines with Long Transition to a Circular Life Economy ▪ Digitalization ▪ Upgrading R&R through world ▪ Focus on technology and ▪ Autonomous vehicles class technologies innovation to ▪ Implemente
Slide 24: Zinc International: Gamsberg Positioning for Long Term Value Creation
Zinc International: Gamsberg Positioning for Long Term Value Creation Continued Performance Ramp Up Performance Update Quarter Performance: 1501,484 1,445 1500 1,350 ▪ Highest milled tonnes achieved at 961kt in Q4 and best 1300 displayed mill throughput at 522tph 100 1,246 1,288 1,240 1100 ▪ Highest
Slide 25: Zinc International: Gamsberg Ramp up Plan
Zinc International: Gamsberg Ramp up Plan 145kt 190-210kt FY21 Four Key Priorities Going Forward FY22e Mining Focused Concentrator Focused 1 2 3 4 Equipment Run-hours Additional Resource Increase Mill Recovery Ramp up Improvement to gear up Mining Throughput Increase Expedite on-boarding Improve rec
Slide 26: Oil & Gas: Stable Operations, Focus on Delivery of Growth Projects
Oil & Gas: Stable Operations, Focus on Delivery of Growth Projects Operations Growth Projects OALP ▪ Gas Terminal: Ramp-up by ▪ Drilling: 15 well exploration ▪ Production: Increased to 165 ~15kboepd underway. Gas offtake kboepd in Q4 FY21 vs 160 kboepd drilling program commenced impacted by Covid in
Slide 27: Oil & Gas: Digitalisation & Partnering to Drive Efficiency & Recovery
Oil & Gas: Digitalisation & Partnering to Drive Efficiency & Recovery Digitalization to improve Technology to Solution based asset reliability accelerate recovery Partner Approach • Well interventions • Polymer & Water • Global EOI for solution & • Process Controls Management KPI driven Partnering •
Slide 28: Iron ore: Resilient Results in Extraordinary Times
Iron ore: Resilient Results in Extraordinary Times Capitalised opportunity of increased Global Value Added Business prices by increasing sales in Goa 2.1 ▪ Benefitted by domestic steel prices and International coal prices Mnt 0.8 0.9 ▪ Margin improvement through efficiency 0.6 0.6 enhancement projec
Slide 29: ESL Steel: Continuing Improvement Journey
ESL Steel: Continuing Improvement Journey Performance Update Capacity Expansion Plan in Pipeline Quarter Performance: ▪ Robust margin of $131/t, highest in FY21 ▪ Doubling Hot Metal Capacity from 1.5 to 3 ▪ Saleable Production of 319kt, flat y-o-y and down 6% MTPA production q-o-q ▪ Sales of 323kt,
Slide 30: FACOR: Complete Turnaround Performance
FACOR: Complete Turnaround Performance Delivering Stronger Growth and Margins FY22 Growth Plan ▪ Ore Production in H2 increased by 105% vs H1 ▪ Targeting to increase Furnace ▪ Reduced ore procurement from third party to ZERO production by 10% by optimizing operation & better process control ▪ Fe chr
Slide 31: Funding Sources and Term Debt Maturities
Funding Sources and Term Debt Maturities Diversified Funding Sources for Term Debt of $7.3bn Term Debt Maturities : ₹ 53,326 Cr ($7.3bn) (as at 31 Mar’21) (as of 31st Mar 2021) 1% 40% Term Loans-INR 21.2 10% 28 % Bonds-INR 14.7 18% 7.7 Term Loans-USD/Foreign ₹ ‘000 Crore Currency 4.7 9.7 14% 31% Bon
Slide 32: FY 2022 Guidance
FY 2022 Guidance Segment Production and COP Mined Metal and Finished Metal: 1,025 – 1,050 Kt Zinc India Silver: c. 720 tonnes COP: < $1,000/t excluding royalty BMM: ~70 – 80 Kt Zinc International Gamsberg: 190-210 kt COP: $1,100/t - $1,200/t Average Gross Volume: 175-185 kboepd; Oil & Gas Opex: c. $
Slide 33: Augment our Reserves and Resources Base
Augment our Reserves and Resources Base Focused exploration to expand our reserves and resources base for support our future growth through • Targeted and disciplined exploration • Offsetting depletion and bringing on stream more discoveries • Team aim to discover mineral and oil deposits in a safe
Slide 34: Key Recognitions in FY 2021
Key Recognitions in FY 2021 Health & Safety Environment, Social & People Business Excellence & Digitilization British Safety Council: Cairn Oil & Gas Identified as ‘Responsible business of Annual BS 1000 (By total revenue) received Sword of Honor for the Year’& awarded with Grant Awarded to Vedanta
Slide 35: Disclosures & Publications
Disclosures & Publications Sustainability Report Tax Transparency Report Integrated Annual Report TCFD Report VEDANTA LIMITED – INVESTOR PRESENTATION 35 Sensitivity: Internal (C3)
Slide 36: Group – Present Debt Structure
Group – Present Debt Structure ($ bn) Vedanta Resources (Consolidated) Volcan FY21 FY21 EBITDA 3.8 EBITDA - Net Debt 10.5 Net Debt 0.2 Vedanta Resources (Standalone) FY21 % EBITDA 0.1 2% Divisions of Vedanta Limited Net Debt 7.2 68% 55.1% ⚫ Sesa Iron Ore ⚫ Sterlite Copper Vedanta Ltd (Consolidated)