Hindustan Zinc Limited · NSE:HINDZINC
Hindustan Zinc — Non-Deal Roadshow (November 2022)
35 slides from Hindustan Zinc's roadshow presentation, Nov 26, 2022
Slide 1: Cover letter to exchanges: Investor Presentation for Non-Deal Road Shows
HZL/2022-SECY November 26, 2022 BSE Limited National Stock Exchange of India Ltd Phiroze Jeejeebhoy Towers “Exchange Plaza” Dalal Street, Fort Bandra-Kurla Complex, Bandra (East), Mumbai - 400 001 Mumbai – 400 051 Scrip Code: 500188 Scrip Code: HINDZINC-EQ Dear Sir(s), Sub: Investor Presentation - N
Slide 2: Investor Presentation
Investor Presentation Confidential
Slide 3: Disclaimer
Disclaimer This presentation is prepared by Hindustan Zinc Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of any particular person and nothing in it shall be construed as an invitation, offer, solicitation, recommendatio
Slide 4: 1. Overview and Positioning of Hindustan Zinc Limited
1. Overview and Positioning of Hindustan Zinc Limited
Slide 5: Hindustan Zinc Limited (HZL): Overview
Hindustan Zinc Limited (“HZL”) : Overview Company Overview • A fully integrated zinc-lead-silver producer Uniquely Positioned in the Metal and Mining Landscape with five decades of experience and expertise in mining and smelting • Headquartered in the mineral-rich belt of India’s largest & 6th large
Slide 6: Glorious Journey of 55 years
Glorious Journey of 55 years • Ranked #1 in the Metals and Mining • Sterlite Group • Sindesar Khurd Mine • HZL shared a Special • Rajpura Dariba Hydro category in Asia Pacific in the Dow Jones (now known as commissioned with dividend of 1200% • Foundation of • Rajpura Dariba production capacity of –
Slide 7: 2. Key Investment Highlights
2. Key Investment Highlights
Slide 8: Our Well-established Investment Proposition
Our Well-established Investment Proposition Production Capacities with Sustainable Mining Operations Diversified Product Portfolio • Market understanding and leadership (capacity of 1.123 Mtpa • 20% proportion of value-added products; target to further increase Integrated metal, 1.2 Mtpa Mined metal
Slide 9: Leading Ahead and Positioned for Long-term with Integrated Operations
Leading Ahead and Positioned for Long-term with Integrated Operations Strategic Edge Strategic Focus • World-class • Capacity expansion Ore Production operations and and sustaining UG 16.34 Mt mining practices operations • High safety standards • Cost optimisation • Trained workforce 5 Rajasthan • M
Slide 10: Strong Operational Asset Base
Strong Operational Asset Base Mines R&R Summary Key Stats Key Stats Reserve Grade Reserve Grade Tonnage Zn Pb Ag Mines Reserve (Mt) Resource (Mt) Zinc (%) Pb (%) Category (Mt) (%) (%) (%) Rampura Agucha Mine 47.0 28.0 11.8 1.3 Reserve 161.2 5.9 1.5 58.0 Sindesar Khurd Mine 45.4 59.3 3.0 2.0 Mineral
Slide 11: Unparalleled Operational Excellence at Mines (1/3)
Unparalleled Operational Excellence at Mines with Focus on Innovation, Automation and Technology (1/3) Mine Performance, FY 2021-22 107.3 km 1,017 kt 801 kt 216 kt 16.34 Mt Total Mine Total Mined Metal Mined Metal – Zinc Mined Metal – Total Ore Development Lead Production 5 Mines Source : Company Fi
Slide 12: Unparalleled Operational Excellence at Mines (2/3)
Unparalleled Operational Excellence at Mines with Focus on Innovation, Automation and Technology (2/3) Efficiency and Productivity Enhancement Measures • Commissioned integrated command control centre for enabling end-to-end monitoring Rampura • Installed proximity warning and anticollision system A
Slide 13: Unparalleled Operational Excellence at Mines (3/3)
Unparalleled Operational Excellence at Mines with Focus on Innovation, Automation and Technology (3/3) Additional Safety Measures Implemented • India’s first UG first-aid station with ambulance Rampura • Fire hydrant lines on the surface and UG Agucha Mine • Sensor-based Auto Ventilation doors UG •
Slide 14: Strengthening Mineral Resource and Upgradation of Resources to Reserves
Strengthening Mineral Resource and Upgradation of Resources to Reserves Ore Reserves and Mineral Resources (R&R), as on March 31, 2022 (based on Annual R&R audit by SRK (UK)) Total Total Reserves Measured and Indicated Inferred R&R Total Metal Hindustan Zinc Assets Mt Zn% Pb% Ag g/t Mt Zn% Pb% Ag g/
Slide 15: A Portfolio with Market Leading Position and Strong Prospects
A Portfolio with Market Leading Position and Strong Prospects Key Highlights Outlook : Growth and Drivers • Wide portfolio: special high grade (SHG), high grade (HG), • 1.3% (CY 2022E) and 1.7% (CY 2023E and 2024E) global zinc continuous galvanising grade (CGG), prime western (PW), consumption growt
Slide 16: Maintains its Position in the 1st Quartile of Global Cost Curve
Maintains its Position in the 1st Quartile of Global Cost Curve and Delivers Consistent Profitability despite Macro Headwinds • HZL is one of the lowest cost producers globally • Despite macro-related uncertainties such as movements in LME Zinc prices, the Company has delivered consistent profitabil
Slide 17: HZL is one of the Highest Dividend Payers in the Country
HZL is one of the Highest Dividend Payers in the Country • The Company has stayed true to its dividend policy and has been consistent in paying dividends to its shareholders • It has paid the highest Dividend per share and has delivered the highest Dividend Yield amongst the key Metals & Mining play
Slide 18: 3. Financial and Operational Performance
3. Financial and Operational Performance
Slide 19: Celebrating a Year of Record Performance and Achievements
Celebrating a Year of Record Performance and Achievements Delivering Record Performance Internationally Recognised Operational Performance in FY22 (vis-à-vis FY21) Sword of Honour 2021 CII DX award From the British Safety Council for CLZS CPP and For ‘Most Innovative Best Practice in Supply Debari Z
Slide 20: Operational Highlights
Operational Highlights Refined Silver (T) Mined Metal (kT) Refined Metal (kT) Integrated silver production was down YoY in FY22, in line • Improvement in Mined Metal is driven by increased ore production, better grades & improved operational efficiency. Refined with lead production, as the company p
Slide 21: Financial Highlights
Financial Highlights 1 Revenue(1) (US$ mn) 2 Revenue Split (%) 3,680 Wind and Others 1 Wind and Others Energy 2% Energy 4% Growth in revenue is led by higher zinc volume Silver 1% Silver 1% 2,829 13% 14% and better premium as well as higher zinc and 2,320 2,215 lead LME prices, which were partly off
Slide 22: Stock Price Performance
Stock Price Performance Current price 6 Months 1 Year 3 Years 5 Years 10 Years 15 Years From 1 Jan 2000 HZL 297.0 -0.7% -10.0% 41.4% 4.4% 190.5% 478.4% 22887.0% BSE Metal Index 19,929.9 12.3% 7.1% 107.3% 41.0% 101.4% 13.7% NA 1.5 351 301 1.0 251 Price (INR) 201 151 0.5 101 51 1 0.0 Jan-00 Jan-02 Jan
Slide 23: 4. Strategy for the Way Forward
4. Strategy for the Way Forward
Slide 24: Paving the Way for Greater Growth By Investing in our Strategic Priorities
Paving the Way for Greater Growth By Investing in our Strategic Priorities Underground (UG) Production (MIC production, kt) • Expand mined metal capacity (currently at 1.2 1350 917 972 1017 Expansion of Mtpa) and ramp UG mines to deliver on it 481 Capacities 210 • Scale smelters to 1,000-1,025 kt an
Slide 25: Paving the Way for Greater Growth By Investing in our Strategic Priorities
Paving the Way for Greater Growth By Investing in our Strategic Priorities • Scale capacities for minor metal recovery Share of VAP in Our Sales (%) • Invest in new product development, especially 24.0 Expansion of Product alloys of zinc and lead; HZAPL to produce high 16.0 21.0 15.5 20.0 12.0 Portf
Slide 26: Paving the Way for Greater Growth By Investing in our Strategic Priorities
Paving the Way for Greater Growth By Investing in our Strategic Priorities Road Ahead • Commitment to audacious Sustainability Goals 2025 in place Progressing Towards a 200MW 100% 5-year target Sustainable Future • Efforts in GHG emissions reduction, water Green power Mechanised USD 1 billion stewar
Slide 27: Potential Risks
Potential Risks Exposure to • Demand for zinc is closely linked to the galvanised steel industry, which consumes around 70% of the zinc produced in India. The steel industry depends on the growth of end-user segments such as automotive, consumer durables, batteries, home appliances, construction and
Slide 28: 5. Key Initiatives / Developments
5. Key Initiatives / Developments
Slide 29: Digitization
Digitization Evolve An e-commerce platform for live exchange THEN (1980) benchmarked prices and delivery for zinc and lead metals for as low as one ton Drishti Real-time connectivity in mines which helps in enhancing efficiency through process optimization NOW (2022) North Star Connected workforce:
Slide 30: Environment, Social & Governance
Environment, Social & Governance The Company is amongst the top 15 CSR spenders in the Country • Revamping of Turbine Awarded for Corporate Social Energy & carbon community • Switching to RePower and BEVs Responsibility at the prestigious • Strengthening of recycling system S&P Global Platts Global
Slide 31: Community Development Programs
Community Development Programs Children (0-6 Years) Farmers Students 1.4 Mn + Beneficiaries across Rural Culture 234 Villages in 3 Youth States Specially Environment Abled Women Source: Company Filings. 23 Confidential
Slide 32: Sustainability Goals 2025
Sustainability Goals 2025 The Company is Amongst the top 15 CSR spenders in the Country Source: Company Filings. 24 Confidential
Slide 33: Recognition of our Progress on our ESG Journey
Recognition of our Progress on our ESG Journey Source: Company Filings. 25 Confidential
Slide 34: Progressing Forward on our Holistic Reporting Practices
Progressing Forward on our Holistic Reporting Practices Source: Company Filings. 26 Confidential
Slide 35: Thank You
THANK YOU HINDUSTAN ZINC LIMITED Yashad Bhawan, Udaipur-313004, Rajasthan T:+912946604000-02 www.hzlindia.com Confidential