Vedanta Limited · NSE:VEDL
Vedanta — Investor Presentation (September 2024)
37 slides from Vedanta's investor presentation, Sep 11, 2024
Slide 1: Investor Presentation
Investor Presentation September 2024 Sensitivity: Internal (C3)
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: Executive Summary
Executive Summary 01 Vedanta, a Global Champion of Critical Minerals, focussed on High Growth India Market 02 Diversified Natural Resources Company with 15+ commodities; structurally placed as lowest cost producer globally with irreplaceable assets 03 ESG leadership Recognized as the Global leader in
Slide 4: Vedanta: A Growth-Focused Organisation
Vedanta: A Growth – Focused Organisation Navin Agarwal Vice Chairman, Vedanta Limited 4 Sensitivity: Internal (C3)
Slide 5: Vedanta well-positioned to capitalise on India's economic growth
Vedanta – a champion 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) $2.4
Slide 6: Empowering India's Growth with strong and sustainable return to all stakeholders
Empowering India's Growth with strong and sustainable return to all stakeholders Revenue1 Group EBITDA1 Group Net Debt1 FY 25 $22 bn $6 – 7 bn <$11 bn Medium Term $50 bn $18 bn Zero Committed Net Zero Carbon Contribution to Nation Consistent Shareholding Asset Base by 2050 Building returns2 Presence
Slide 7: Accelerating towards $10+ billion annual EBITDA with projects in final stages
Accelerating towards $10+ billion annual EBITDA with projects in final stages of execution Growth Projects to deliver ~ $ 8 bn <3 years $ 6-8 bn $2 - $3bn $10+ bn yearly Investment Payback Incremental Yearly Incremental Yearly EBITDA EBITDA Period Revenue Potential Potential Growth Projects under ex
Slide 8: ESG – At core of Vedanta
ESG – At core of Vedanta Priya Agarwal Hebbar Non-Executive Director, Vedanta Limited 8 Sensitivity: Internal (C3)
Slide 9: High Impact initiatives drives sustainability leadership
Sustainability Leadership High Impact initiatives drives sustainability leadership S&P CSA rankings 3 Vedanta Limited1 Among 172 global companies 1Hindustan Zinc Hindustan Zinc 1 Among 172 global companies 1 Vedanta Aluminium2 Most sustainable aluminium producer Vedanta Limited - S&P CSA Ranking CDP
Slide 10: ESG Excellence
ESG Excellence Transforming Communities 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. Tr
Slide 11: Future-ready product portfolio of low carbon brands
Future-ready product portfolio of low carbon brands Hindustan Zinc Launches Asia’s 1st Low Carbon ‘Green’ Zinc Features Carbon footprint of EcoZen is about 75% lower than the global average. Global Eco-Friendly Exceptionally Low Whopping 8% of Certification Advantage Carbon Footprint Product Portfol
Slide 12: From Mine to Market – An Integrated Approach
Aluminium From Mine to Market – An Integrated Approach John Slaven, Chief Executive Officer, Vedanta Aluminium 12 Sensitivity: Internal (C3)
Slide 13: Vedanta's Compelling Competitive Advantage delivering strong performance
Vedanta’s Compelling Competitive Advantage delivering strong performance Vertically integrated, strategically located assets creating unrivalled, unequalled competitive advantage Mineral rich province Vertically integrated operations in compact footprint Well connected by rail network Vedanta’s Clos
Slide 14: Aluminium: Demonstrated track record of Operational Excellence
Aluminium: Demonstrated track record of Operational Excellence in Volume and Cost, Powerful cash generation engine Production Volume (in KTPA) Cost of Production (in $/T) EBITDA (in $/T) +63% -42% +47% 3,100 2,653 ~1,350 2,429 2,291 2,370 2,149 2,268 2,059 1,904 1,969 1,932 1,814 1,735 1,711 1,716 1
Slide 15: Zinc India: A legacy of leadership
Zinc India A legacy of leadership Arun Misra Executive Director Vedanta Limited 15 Sensitivity: Internal (C3)
Slide 16: Hindustan Zinc's Vision, Mission & Growth Narrative
Hindustan Zinc’s Vision, Mission & Growth Narrative Vision to be the world’s largest and most admired Zinc, Lead & Silver Company 01 02 03 Capacity Expansion Zinc Cost Optimization EBITDA ( bn$) • Roaster of 160 ktpa at Debari: FY25 • Efficient ore hauling, higher volume and grades besides higher pr
Slide 17: Hindustan Zinc's Vision, Mission & Growth Narrative
Hindustan Zinc’s Vision, Mission & Growth Narrative Mission to enhance stakeholder value, be the lowest cost producer & maintain market leadership 04 05 06 Mine Portfolio with long life Expanding VAP Portfolio Sustainable Future • Ramp up of 30 kt Alloy plant • RE power delivery agreement to cater 5
Slide 18: Base Metals: Enabling the green energy transition
Base Metals Enabling the green energy transition Chris Griffith Chief Executive Officer, Vedanta Base Metals 18 Sensitivity: Public (C4) VZI Sensitivity: Internal (C3)
Slide 19: Base Metals Assets Overview
Base Metals Assets Overview Highly scalable base metal portfolio of multinational future-facing assets Locations of Key Operations Asset Base Zinc International Copper Sector KCM Black Mountain Copper India Mining UAE Fujairah Gold INDIA • Underground Mining • Silvassa Refinery 220 • Underground & S
Slide 20: Vedanta Zinc International – Vision to be 1MTPA producer
Vedanta Zinc International – Vision to be 1MTPA producer at <1,200$/t Strong pipeline of projects to tap on ~35 MT R&R Cost & Mine Portfolio Ramping up Exploration Capacity Ramping up Drive cost and margin profitability with long life to enhance R&R Expansion Gamsberg mine EBITDA potential Optimisat
Slide 21: Konkola Copper Mines: brownfield expansion to 300ktpa by 2031
Konkola Copper Mines Low-cost brownfield expansion to achieve 300ktpa production by 2031 Project and Execution plan to achieve 300 ktpa KDMP ramp up to Cost & Drive cost and margin Mine Portfolio Strong R&R with high Capacity achieve metal profitability EBITDA potential with long life copper grade.
Slide 22: Oil & Gas: Fueling India's Growth
Oil & Gas Fueling India’s Growth Steve Moore Deputy Chief Executive Officer, Vedanta Oil and Gas 22 Sensitivity: Internal (C3)
Slide 23: Oil & Gas: Strong Reserve and Resource Base
Oil & Gas: Strong Reserve and Resource Base Convert PR → Resources → Reserves (Mmboe) Production Potential (Kboepd Gross) 300 Long Term Mid Term Short Term 2P Developed Reserves 2C Discovered Resources 250 Exploration Exploration (1) 5,000 200 930 150 2C Resources New Exploration/ > Appraisal Concep
Slide 24: Oil & Gas: A Strategic Shift Towards Sustainable Growth
Oil & Gas: A Strategic Shift Towards Sustainable Growth Production (Kboepd) EBITDA Margin ($/boe) 27 300 25 23 21 150 128 120 FY24 FY25 Near Term Mid Term FY24 FY25 Near Term Mid Term Volume growth driven by: Margin growth driven by: o ASP in MBA fields o Change in mix of from Gas 20% to 50% o Tight
Slide 25: Value Accretion
Value Accretion Committed to delivering all roundESG performance ↑ Ajay Goel Chief Financial Officer, Vedanta Limited 25 Sensitivity: Internal (C3)
Slide 26: Unparalleled and irreplaceable asset base with 1st decile cost position
Unparalleled and irreplaceable asset base with substitution cost > $50 billion, 25+ years of R&R and 1st decile cost position FY2024 Current Competitive Position on Cost POSITIONING R&R Life1 Production Capacity Curve Quartiles Aluminium 2,291kt ~2.4mnt Strategically located large-scale assets with
Slide 27: World class, lowest cost assets with growth projects to deliver $10+ bn EBITDA
Vedanta’s world class, lowest cost assets with growth projects to deliver $ 10+ bn annual EBITDA and $5 bn Free Cashflow 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
Slide 28: Series of strategic actions drive group level deleveraging
Series of strategic actions drive group level deleveraging Stake sale by Parent QIP Working Capital Release Raised $1.4bn Raised $1bn Released ~ $0.8bn over the last 3 years by in July 2024 at VEDL. in Working Capital in the last selling 10.4% stake in Proceeds allocated for 2 years Vedanta Limited
Slide 29: Best in class Net Debt to EBITDA
Best in class Net Debt to EBITDA– Continued deleveraging, healthy cashflow generation and fresh capital raise Vedanta Limited Vedanta Resources Q1FY24 Current Near Term FY20 Current FY25e Near Term VEDL Group1 Net ND/EBITDA > 1.9x > 1.5x > <1x Debt/EBITDA > 3.3x > 2.2x > 1.8x > 1x Current Leverage R
Slide 30: Demerger: Shaping our portfolio for the future
Demerger Shaping our portfolio for the future Ajay Agarwal President Finance 30 Sensitivity: Internal (C3)
Slide 31: Group structure
Group structure As of 30-Aug-24 Listed entities Volcan Unlisted entities 42.95% 71.4% 50% Sterlite 79.4% Vedanta Sterlite Serentica Konkola Copper Tech (STL) Power & Renewables Resources Ltd Transmission Mines (KCM) Divisions of Vedanta Limited Vedanta Ltd Consolidated 56.4% ⚫ Sesa Iron Ore ⚫ Sterli
Slide 32: Demerger: Creating industry-leading, focused entities
Demerger: Creating industry-leading, focused entities with pure-play investment opportunities Demerger will create pure- Creating world-class, sector Post Demerger, Shareholders play companies – unlocking leading companies to drive To Receive Shares In 5 New significant value for all our next phase
Slide 33: Vedanta Inc (Parent co) – A bouquet of world class diversified assets
Vedanta Inc (Parent co) – A bouquet of world class diversified assets Vedanta Inc (Parent Co) Vedanta India Sterlite Power Serentica Konkola Copper Sterlite 56.38% Mines Technologies 71.37% 79.4% 42.95% Power Products/ One of the world’s largest Renewable Energy high-grade Copper Transmission Techno
Slide 34: People practices: Building a future-ready organization
People practices Building a future -ready organization Madhu Srivastava Chief Human Resources Officer 34 Sensitivity: Internal (C3)
Slide 35: Vedanta's Growth engine – Powered by proven leadership team
Vedanta’s Growth engine – Powered by proven 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 leadershi
Slide 36: Redefining Tomorrow with our Bold actions
Conclusion Redefining Tomorrow with our Bold actions 1 Delivery 2 Deleveraging 3 Demerger Deleveraged VRL by 4.5 bn in the last 2 years. Application filed with NCLT Near term EBITDA of 10 $bn Moving towards Group Extraordinary value ND/EBITDA of 1x. creation 36 Sensitivity: Internal (C3)
Slide 37: Thank you
VEDANTA Thank you Sensitivity: Internal (C3)