Vedanta Resources — Asia Mining Congress 2015
16 slides from Vedanta Resources's conference presentation, May 27, 2015
Slide 1: India, is it the next China?
India, is it the next China ? Tom Albanese CEO - Vedanta Resources PLC Asia Mining Congress, 27th May 2015
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: India: A Snapshot
India: A Snapshot Building growth momentum India: Fastest Growing Major Economy in 20151 Pick up in investments and lower oil prices 7.2 7.4 7.5 7.5 6.8 Continuing reforms: Insurance, Coal and MMDR bills 6.3 passed Lower inflation providing headroom for interest rate cuts 0.6 0.1 1.0 Government prio
Slide 4: China & India: Fastest growing economies in the world
China & India : Fastest growing economies in the world……. 16 Growth in Real GDP (%)1 12000 Absolute GDP of India & China ($bn)2 14 10000 12 10 8000 8 6000 China India 6 4000 4 2 2000 0 0 1997-2006 2009 2011 2013 2015 -2 1980 1985 1990 1995 2000 2005 2010 2015 Advanced Economies China India Brazil So
Slide 5: Major Sector Contribution to Economy
Major Sector Contribution to Economy China India UK US Brazil Trade, personal & households goods; hotels & restaurants, 17% 24% 25% 19% 30% Transport & Storage Other Activities, 36% 41% 61% 63% 45% Construction Manufacturing 30% 13% 9.7% 12% 13% Mining, Utilities 7% 7% 4% 4.4% 4% Agriculture, huntin
Slide 6: India will require a well-developed resources industry to meet its increasing demand
India will require a well-developed resources industry to meet its increasing demand Per Capita Consumption: Significant growth to catch up with China India’s Growing Oil Demand with High Import (Metals - CY 2014 per capita consumption in kg; Oil - CY2013 per capita consumption in Dependence barrels
Slide 7: India: Non-Linear Commodity Demand Growth
India: Non-Linear Commodity Demand Growth Copper Consumption Intensity Steel Consumption Intensity Copper consumption per capita (in kg) vs. GDP per capita (in ‘000 USD) Steel consumption per capita (in tonnes) vs. GDP per capita (in ‘000 USD) 16.0 1.2 Steel (tonnes per capita) South Korea Copper (k
Slide 8: India's Unexplored Mining Potential
India’s Unexplored Mining Potential India: Shared geology and India reserves ranking India’s share of global non-ferrous exploration spending very mineral potential with Africa & Global Ranking1 based on reserves low 34.8% 100% Australia 5th Coal R&R: 295 bn tonnes 0.2% 3% 3% 3% 6th Zinc 5% 4% R&R:
Slide 9: Vedanta: A Global Diversified Natural Resources Company
Vedanta : A Global Diversified Natural Resources Company R&R FY2015 Positioning Life1 Production Capacity2 • LSE listed with portfolio of large, long–life, well- Oil & Gas (Cairn India) 3 Top 20 global independent E&P; 212kboep 225+ invested assets 15 Platts 2013: Fastest growing d kboepd energy com
Slide 10: Vedanta's Geographical Overview
Vedanta’s Geographical Overview 23 25 6 15 26 23. Lisheen mine, Ireland 27 3 15 4 14 28 2 29 1 14 30 20 13 13 5 13 25. Iron Ore project, Liberia 20 7 26. 27. Konkola and Nchanga copper mines & Nchanga 12 smelter, Zambia 1. Debari smelter 28. Skorpion mine, Namibia 16 24 2. Chanderiya smelters 29. Bl
Slide 11: Sustainability: Key to our business
Sustainability : Key to our business HZL- Wind Farms (Renewable Energy) Safety HZL operates 273 MW capacity wind farms Fatal accidents and injury rates have declined Implementing programs to eliminate fatalities and control injuries: o Leadership focused on a Zero-Harm culture across the organizatio
Slide 12: Resilient Portfolio in Volatile Commodity Environment
Resilient Portfolio in Volatile Commodity Environment Diversified Portfolio with Low Cost Assets… EBITDA Mix for FY2015 Competitive Position on Global Cost Curve 7% 1% I II III IV 4% Size of circle denotes Oil & Gas Zinc EBITDA contribution and India % denotes EBITDA margin Zinc 11% 51% in FY2015 39
Slide 13: Well-Invested Assets Driving Production Growth
Well-Invested Assets Driving Production Growth Total Production (copper equivalent kt) Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas 3,000 2,500 Copper Equivalent Production (kt) +66% 2,000 1,500 1,000 500 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12PF² FY13 FY14 FY15 Near Term Near T
Slide 14: Strategic Priorities
Strategic Priorities Production Growth and Asset optimisation Operating at full capacity Strengthening the Balance Sheet Reduce Gearing; maximise free cash flows Simplification of the Group structure Protect and preserve our License to Operate Identify next generation of Resources Continue to add R&
Slide 15: Vedanta
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Slide 16: Group Structure
Group Structure Vedanta Resources Plc Divisions of Vedanta Limited 79.4% 62.9% Sesa Iron Ore Konkola Sterlite Copper (Tuticorin) Copper Vedanta Ltd Power (2,400 MW Jharsuguda) Mines (KCM) Aluminium (Odisha aluminium and power assets) Subsidiaries of Vedanta Ltd 59.9% 64.9% 51% 100% 100% 100% 100% 10