Vedanta Limited · NSE:VEDL
Vedanta — Q3 FY2015 Earnings Presentation
32 slides from Vedanta's earnings presentation, Jan 29, 2015
Slide 1: Q3 FY2015 Results Presentation
Q3 FY2015 Results Presentation 29 January 2015 Earnings call details on last page of this document
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived future integration of acquired businesses; and from from publicly available sources that have not been numerous other matters of national, regional and global independently verified. scale, including those o
Slide 3: Overview
Overview Tom Albanese Chief Executive Officer
Slide 4: Safety and Sustainability
Safety and Sustainability Safety LTIFR (per million man-hours worked) 1 Fatal accident in Q3FY15 1.2 Focus on bringing in a culture of zero-harm 0.96 1.0 0.89 Implementing programs to eliminate fatalities and control injuries 0.8 0.6 0.52 0.49 0.45 Environment 0.4 Significant investments (Rs
Slide 5: Q3 FY2015 Results Highlights
Q3 FY2015 Results Highlights Operations EBITDA Mix Zinc-India: Strong mined metal production; 10% Iron Ore higher y-o-y Power 1% 4% Oil & Gas: Gross daily average production at 219 Copper 8% kboepd; production at Rajasthan normalised following a planned maintenance shutdown in Q2 Oil & Gas Str
Slide 6: Q3 Achievments and Near Term Catalysts
Q3 Achievments and Near Term Catalysts ACHIEVMENTS NEAR-TEAM CATALYSTS ● Ramping up capacity at aluminium and power ● Commissioning of further pots at BALCO businesses and Jharsuguda o CTO received for BALCO 1,200 MW power plant ● Ramp up of Units II & III at TSPL o TSPL unit I operational ● Improve
Slide 7: India Regulatory Update
India Regulatory Update MMDR Ordinance Coal Scenario ● Mines and Minerals (Development and Coal Scenario ● Government focussed on improving coal Regulation) (Amendment) Ordinance, 2015 was situation issued in Jan ● Coal India FY14 production: 462 MT vs.482 MT target ● Rising trend in Coal imports: 2
Slide 8: Financial Review
Financial Review D.D. Jalan Chief Financial Officer
Slide 9: Financial Highlights
Financial Highlights Q3 FY2014 Rs. Crore or as stated Q3 FY2015 Change Q2 FY2015 Change (Proforma) EBITDA 6,234 6,565 (5)% 6,336 (2)% EBITDA margin¹ (%) 43% 48% - 45% - Attributable PAT 1,588 1,780 (11)% 1,640 (3)% (before exceptional items) EPS before exceptional 5.35 6.00 (11)% 5.53 (3)% items (Rs
Slide 10: EBITDA Bridge
EBITDA Bridge Q3 FY2015 vs. Q2 FY2015 (In Rs. Crore) 6,336 1,001 291 42 6,234 505 295 107 5,479 44 Non Controllable Controllable Rs.(857)crore Rs.754 crore Q3 FY2015 RESULTS PRESENTATION 10
Slide 11: Income Statement – Variances
Income Statement – Variances Q3 Q3 In Rs. Crore Q2 FY2014 Lower finance cost or as stated FY2015 (PF) FY2015 EBITDA 6,234 6,565 6,336 ─ Refinanced debt at lower cost Finance Cost 1,329 1,530 1,472 Other Income 429 390 686 Higher depreciation primarily on Depreciation 1,782 1,415 1,534 account of
Slide 12: Maturity Profile
Maturity Profile Term Debt Maturity Profile (in $bn) Diversified Funding Sources for Term Debt (as of 31 Dec 2014) (as of 31 Dec 2014) Short Term Standalone Subsidiaries Loans - USD Term Loans- 3% USD - 10% Bonds-INR - Money 22% Market Instruments- INR 14% 0.7 0.5 0.5 0.8 0.5 0.5 1.0 1.0 0.9 0.4 0.4
Slide 13: Business Review
Business Review Tom Albanese Chief Executive Officer
Slide 14: Oil & Gas
Oil & Gas Q3 Results Continued operational activity at Rajasthan Solid performance with gross production of 20 mmboe Rajasthan production up 10% at 180 kboepd q-o-q Aishwariya ramped-up to 30 kboepd Production in offshore assets up 24% q-o-q Exploration success: New discovery RE-6 in Ravva
Slide 15: Zinc India
Zinc India Q3 Results Rampura Agucha Ore body Production higher as per the mine plan of Rampura Agucha ─ On track to meet full year guidance of Present OC Proposed OC extension marginally higher mined metal production compared to FY14 ● Maintained lowest quartile cost position o Q3 CoP lower q-o-q
Slide 16: Zinc International
Zinc International Q3 Results Replace with Map Production in line with expectations ─ Mined metal production lower y-o-y due to Lisheen ramp down ─ Skorpion: Refined metal production higher due to an unplanned maintenance shutdown in the same period last year Gamsberg-Skorpion Project Board had
Slide 17: Aluminium
Aluminium Q3 Results Aluminium Costs and Margins Record 98% utilisation at Lanjigarh alumina refinery (in $/t, for Q3FY2015) due to higher bauxite availability 415 67 2,448 500kt Jharsuguda-I & 245kt Korba-I smelters operated at higher than rated capacity 1,966 Captive bauxite can significantly
Slide 18: Other Assets: Significant part of the portfolio
Other Assets: Significant part of the portfolio Power Iron Ore Copper India Jharsuguda 2,400MW: Karnataka: Tuticorin Smelter: 41% PLF in Q3 Mining lease renewed & Forest Smelter continues to operate at PLF impacted due to continued clearance received; expect to high capacity utilisation
Slide 19: Building Momentum: Key Strategic Priorities unchanged
Building Momentum: Key Strategic Priorities unchanged Disciplined capital allocation: Low-risk, phased development (Zinc, Oil & Gas) Production growth across portfolio with a focus on Sustained operational excellence and cost efficiencies returns Active engagement with Governments Production
Slide 20: Appendix
sesa sterlite a vedanta company Appendix
Slide 21: Entity Wise Cash and Debt
Entity Wise Cash and Debt (in Rs. Crore) 31 March 2014 30 September2014 31 December 2014 Company Cash & Cash & Cash & Debt Net Debt Debt Net Debt Debt Net Debt LI LI LI Sesa Sterlite Standalone 38,943 2,459 36,484 40,187 3,143 37,044 38,480 693 37,787 Zinc India - 23,943 (23,943) - 25,412 (25,412) -
Slide 22: Segment Summary – Oil and Gas
Segment Summary – Oil and Gas Q3 Q2 Nine months % % Particulars FY2015 FY2014 FY2015 FY2015 FY2014 change change OIL AND GAS (boepd) Average Daily Total Gross Operated Production 2,28,622 2,32,645 -2% 204,128 2,19,757 2,24,819 -2% (boepd) – including internal gas consumption Average Daily Gross Oper
Slide 23: Segment Summary – Zinc India
Segment Summary – Zinc India Q3 Q2 Nine months % % Particulars (in’000 tonnes, or as stated) FY2015 FY2014 FY2015 FY2015 FY2014 change change Mined metal content 242 220 10% 213 618 680 -9% Refined Zinc – Total 196 196 - 181 517 567 -9% Refined Zinc – Integrated 192 196 -2% 174 504 564 -11% Refined
Slide 24: Segment Summary – Zinc International
Segment Summary – Zinc International Q3 Q2 Nine months % % Particulars (in’000 tonnes, or as stated) FY2015 FY2014 FY2015 FY2015 FY2014 change change Zinc International 80 84 -6% 79 242 281 -14% Refined Zinc – Skorpion 26 23 13% 27 86 92 -7% Mined metal content - BMM and Lisheen 54 62 -12% 52 157 18
Slide 25: Segment Summary – Copper India
Segment Summary –Copper India Q3 Q2 Nine months % % Particulars (in’000 tonnes, or as stated) FY2015 FY2014 FY2015 FY2015 FY2014 change change C opper - Mined metal content - 5 - - - 17 - C opper - C athodes 99 99 1% 100 266 197 35% Tuticorin Power Plant Sales (MU) 164 162 1% 183 483 457 6% Financia
Slide 26: Segment Summary – Iron Ore
Segment Summary – Iron Ore Q3 Q2 Nine months Particulars (in million dry metric tonnes, % % FY2015 FY2014 FY2015 FY2015 FY2014 or as stated) change change IRON ORE Sales 0.1 - - 0.6 1.2 - - Goa - - - - - - - Karnataka 0.1 - - 0.6 1.2 - - Production of Saleable Ore 0 - - 0.3 0.3 0 - Goa - - - - - - -
Slide 27: Segment Summary – Aluminium
Segment Summary – Aluminium Q3 Q2 Nine months Particulars (in’000 tonnes, or as stated) FY2015 FY2014 % change FY2015 FY2015 FY2014 % change Alumina – Lanjigarh 244 181 34% 226 703 297 137% Total Aluminum Production 224 199 12% 222 648 595 9% Jharsuguda-I 133 136 -2% 138 403 407 -1% Jharsuguda-II 5
Slide 28: Segment Summary – Power
Segment Summary – Power Q3 Q2 Nine months % % Particulars (in million units) FY2015 FY2014 FY2015 FY2015 FY2014 change change Total Power Sales 2,420 2,196 10% 2,028 7,048 7,282 -3% Jharsuguda 2400 MW 1,873 1,827 3% 1,653 5,681 5,924 -4% MALC O 233 236 -1% 204 666 681 -2% HZL Wind Power 55 59 -7% 17
Slide 29: Sales Summary
Sales Summary Sales volume Q3FY2014 Q3 FY2015 Sales volume Q3 FY2014 Q3 FY2015 Zinc-India Sales Iron-Ore Sales Goa (mn DMT) - - Refined Zinc (kt) 199 194 Karnataka (mn DMT)1 0.0 0.107 Refined Lead (kt) 24 30 Total (mn DMT) 0.0 0.107 Zinc Concentrate (DMT) - - MetCoke (kt) 102 129 Lead Concentrate (D
Slide 30: EBITDA Bridge
EBITDA Bridge Q3 FY2015 vs. Q3 FY2014 (PF) (In Rs. Crore) 6,565 775 547 228 20 198 174 6,234 129 EBIDTA Q3 FY 14 (P) LME/ Brent price Premium/ Tc Rc / Brent Profit Petroleum Currency Volume COP Others EBIDTA Q3 FY 15 (A) Disc Q3 FY2015 RESULTS PRESENTATION 30
Slide 31: Group Structure
Group Structure Vedanta Resources Plc Divisions of Sesa Sterlite 79.4% 62.9% Iron Ore (Sesa Goa) Konkola Copper Smelting (Tuticorin) Copper Sesa Sterlite Mines (KCM) Power (2,400 MW Jharsuguda) Aluminium (VAL aluminium and power assets) Subsidiaries of Sesa Sterlite 59.9% 64.9% 51% 100% 100%
Slide 32: Earnings Call Details
Earnings Call Details The results call will be at 6:00 PM (IST) on Thursday, 29 January 2015. The dial-in numbers for the call are: Telephone Number Mumbai main access India – 6:00 PM (IST) +91 22 3938 1088 Mumbai standby access +91 22 6746 8388 Singapore – 8:30 PM (Singapore Time) Toll free number