Vedanta Limited · NSE:VEDL

Vedanta — Sesa Sterlite — Credit Suisse Asian Investment Conference 2014

23 slides from Vedanta's conference presentation, March 2014

  1. Slide 1: Sesa Sterlite Limited Investor Presentation

    Sesa Sterlite Limited Investor Presentation Credit Suisse Asian Investment Conference March 2014

  2. 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

  3. Slide 3: Sesa Sterlite: Investment Highlights

    Sesa Sterlite: Investment Highlights • One of the world’s largest diversified natural 9M FY2014 EBITDA Breakup³ resource companies Power – Operations across Base Metals, Iron Aluminium 6% 5% Ore, Silver, Oil & Gas and Commercial Cu-India Zinc India 4% 27% Power • Portfolio of scalable tier-1 assets

  4. Slide 4: Tier-1 Asset Portfolio

    Tier-1 Asset Portfolio R&R FY2013 Competitive Position on Cost Curve Quartiles Positioning Life1 Production Capacity2 I II III IV Oil & Gas (Cairn India) 225+ 3 Top 20 global independent E&P; Platts 2013: 15 205kboepd Size of circle denotes Fastest growing energy company globally kboepd EBITDA contr

  5. Slide 5: Consistently High Margins through the Cycle

    Consistently High Margins through the Cycle Cost Efficient Tier-1 Assets driving High Margins Consistent Margins driven by Diversification 50% (H1 FY2014 EBITDA margin) (EBITDA by Segment in $mn) 40% Zinc Iron ore Copper Aluminium 30% Power Oil & Gas EBITDA Margin %¹ 20% 5,000 70% 10% 4,500 60% 0% S

  6. Slide 6: Sustainability: Core to our Business

    Sustainability: Core to our Business Safety Waste Heat Recovery - Waste Recycled  Significant reduction in LTIFR Electricity Generation Capacity - % of non-hazardous waste (MW) 71 71  Focus is on eliminating fatalities 64 Environment 139  Significant investments (US$250mn+ over last 3 years) 90 6

  7. Slide 7: Oil & Gas: A World Class Asset Base

    Oil & Gas: A World Class Asset Base Assets: Diversity of basins, plays and environments Rajasthan Onshore Block (28 discoveries) Production: Shakti  On-shore Bhagyam 96% Oil, 4% Gas N-I North Shakti NE  Low-cost & Scalable N-C-West-A  Primarily Oil Mangala N-I Mangala BH  Exploration Upside Bhag

  8. Slide 8: Zinc India

    Zinc India  2nd largest integrated zinc producer globally Shaft Headgear, Rampura Agucha, Zinc India  Lowest quartile costs  Brownfield expansion to 1.2mtpa mined metal Track Record of Exploration Success R&R (MIC) Mined Metal Production (in million tonnes) (in million tonnes) 35.1 0.87 16.2 0.36

  9. Slide 9: Iron Ore

    Iron Ore Goa Iron Ore Mines – Proximity to Coast  Goa: Proximity to port, Direct Shipping Ore  Karnataka: Direct Shipping Ore  Strong track record of exploration  Long R&R life: 20+ years at 16.8mtpa¹  State-wide mining restrictions  Karnataka: Operations resumed in December 2013  Goa: Suprem

  10. Slide 10: Aluminium and Power

    Aluminium and Power  Aluminium assets located in Eastern India with abundant Aluminium Costs and Margins (in $/t, for 9M FY2014) bauxite and coal deposits Aluminium Cost of Production: $1,678/t  Costs in lower half of global cost curve without captive bauxite 267 81 2,142 Captive bauxite can  Sme

  11. Slide 11: India: Strong Fundamentals for Demand

    India: Strong Fundamentals for Demand Low Per Capita Consumption (Metals - CY 2013 per capita consumption in kg; Oil - CY2012 per capita consumption in barrels) 15.4 India World China 6.6 7.2 4.2 4.6 3.5 2.7 1.5 1.9 0.5 1.0 0.4 Aluminum Copper Zinc Oil Urbanization increasing Increasing Labour Force

  12. Slide 12: India's Unexplored Potential - Metals

    India’s Unexplored Potential - Metals India: Shared geology and mineral India reserves ranking Global non-ferrous exploration spending has fallen potential with Africa & Australia Global ranking¹ 25 USD Bn Growth % 80% 7th Iron Ore 20 60% R&R: 29 bn tonnes 40% 15 20% 5th Coal 10 0% -20% R&R: 295 bn

  13. Slide 13: India's Unexplored Potential – Oil & Gas

    India’s Unexplored Potential – Oil & Gas India drilled ~6,700 exploratory wells since inception; U.S drills as many wells in less than 3 years¹ • 78% basins yet to be well explored U.S. 1,800 • ~130 Bn barrels of resource in ‘yet to find’ category Operating Rigs 1,400 • 32% basins yet to be offered

  14. Slide 14: World Class Assets

    World Class Assets Rajasthan Oil & Gas, India Rampura Agucha Zinc-Lead mine, India Aluminum Smelter, Jharsuguda, India Iron Ore mine, Goa, India Sesa Sterlite Corporate Presentation - March 2014 14

  15. Slide 15: Key Priorities

    Key Priorities  Disciplined capital allocation: Low-risk and phased development Production growth across portfolio with a focus on  Sustained operational excellence and cost efficiencies returns  Active engagement with Governments  Production ramp-up from well-invested assets driving strong free

  16. Slide 16: Appendix

    S sesa sterlite a vedanta company Dy, Appendix

  17. Slide 17: Opportunities and Challenges

    Opportunities and Challenges Group Structure  Merger Completed   Buyout of GoI’s stake in HZL and BALCO Zinc India  Mining Expansion: 1.2mtpa by FY2017   225+ kboepd by FY2014 Oil & Gas   GoI issued policy on Integrated Block Development  Re-commenced exploration in Rajasthan  Karnataka: O

  18. Slide 18: Harnessing India's Resource Potential

    Harnessing India’s Resource Potential Sesa Sterlite operates in the key mineral rich states of India (% of India’s reserves) ¹ Madhya Andhra State Jharkhand Orissa Chhattisgarh Rajasthan Karnataka Goa Pradesh Pradesh Bauxite - 51% - - 21% - - - Iron Ore 14% 17% 10% - 7% - 41% 7% Coal 29% 24% 16% 18%

  19. Slide 19: 9M FY2014 performance

    9M FY2014 performance Production¹ (% change 9M FY2014 Vs. 9M FY2013) EBITDA Margin by Segment ¹ O&G² 5% O&G 75% Zinc India - Mined Metal 11% Zinc India 54% Zinc India - Silver³ 18% Power Zinc Intl -13% 34% Copper Australia -13% Zinc Intl 30% Copper India⁴ 7% Aluminium 15% Aluminium 3% Sesa Sterlite⁵

  20. Slide 20: Maturity Profile

    Maturity Profile Term Debt Maturity Profile (in $bn) Diversified Funding Sources (as of 31 December 2013) (as of 31 December 2013) Short Term Loans – 11% Standalone Subsidiaries Bonds-INR, 21% 2.3 0.6 Convertible 1.6 Term Loans- Bonds-USD USD 30% 11% 0.6 1.0 0.8 0.8 0.4 1.7 Term Loans- 0.1 1.0 0.4 0

  21. Slide 21: Well-Invested Assets Driving Positive Cash Flow

    Well-Invested Assets Driving Positive Cash Flow • Positive Free Cash Flow with production ramp-up Capex and Free Cash Flows ($bn) – $1.6 bn free cash flow (post growth capex) in 9M FY2014 Free Cash Flow³ M&M Capex O&G Capex¹ Totals • Actively managing and reviewing our capex requirements 4.0 - • Cap

  22. Slide 22: Entity wise Debt and Cash

    Entity wise Debt and Cash Net Debt Summary ($ mn) 31 March 2013 (Proforma) 31 December 2013 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Sesa Sterlite Standalone 6,830 494 6,336 6,617 592 6,025 Zinc India - 3,929 (3,929) - 3,689 (3,689) Zinc International - 197 (197) - 184 (184) Cairn Ind

  23. Slide 23: Group Structure

    Group Structure Vedanta Resources Plc Divisions of Sesa Sterlite 79.4% 58.3%  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 58.8% 64.9% 51% 100% 100%

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