Vedanta Limited · NSE:VEDL
Vedanta — JP Morgan India Investor Summit 2021
28 slides from Vedanta's conference presentation, Sep 22, 2021
Slide 1: Vedanta Limited Investor Presentation
VEDANTA LIMITED INVESTOR PRESENTATION 22nd Sep 2021 Sensitivity: Internal (C3)
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from statement involves risk and uncertainties, and that, although we publicly available sources that have not been independently verified. believe that the assumption on which our forward-looking statements
Slide 3: Business Highlights
Business Highlights ▪ One of largest diversified natural resource businesses globally, ideally positioned with attractive commodity mix and exposure to right geography ▪ Strong R&R base - Enhancing field life and R&R base ▪ ESG Driven Business - Decarbonization and sustainable mining, flagship socia
Slide 4: Strategic Highlights
Strategic Highlights ▪ Portfolio ✓ Sweet spot - production ramping up across all businesses ✓ Diversified product portfolio ✓ Best among peers with ferro chrome & Met coke recent additions ▪ Growth ✓ Continue ramp up in Oil & Gas, Zinc India, Zinc International, Steel and Aluminium ✓ Leveraging stru
Slide 5: Key Focus Areas For Value Delivery
Key Focus Areas For Value Delivery 1 ESG ▪ Disproportionate focus on sustainable ways of working 8 1 ▪ Upgraded sustainability board committee to ESG board committee 2 Centre of Excellence set up (R&D, Asset health, Innovation and Quality) 7 2 3 Digital transformation Key focus areas for value deliv
Slide 6: Financial snapshot
Financial snapshot Revenue EBITDA EBITDA Margin 1 Attributable PAT (before exceptional items) ₹ 28,105 cr ₹ 10,032 cr 41% ₹ 4,280cr Up 79% y-o-y Up 150% y-o-y Industry leading margin Up 314% y-o-y ROCE 2 Cash and Cash ND ND/EBITDA equivalents c.22% ₹ 31,318 cr ₹ 20,261cr 0.6x Up ~375 bps Q-o-Q Stron
Slide 7: Balance Sheet and Debt Breakdown
Balance Sheet and Debt Breakdown Net Debt / EBITDA – lowest in last 4 years Debt Breakdown (as of 30th Jun 2021) 1.1 1.0 Debt breakdown as of 0.9 0.9 (in $bn) (₹ in 000’ Cr) 0.6 30th Jun 2021 Term debt 6.6 49.2 Working capital 0.1 0.7 FY'18 FY'19 FY'20 FY'21 Q1 FY'22 Short term borrowing 0.2 1.7 ▪ L
Slide 8: Capex and Returns Profile
Capex and Returns Profile Growth CAPEX Profile, $bn Oil & Gas Zinc Al & Power Copper Other Optionality Full year Capex guidance 0.7 1.0 1.2 1.5 1.2 0.7 1.1 1.1 0.1 0.2 0.8 0.8 0.1 0.7 0.1 0.5 0.1 0.6 0.1 0.3 0.2 0.2 0.3 0.1 0.5 0.3 0.2 0.3 0.1 0.2 0.1 0.1 0.5 0.5 0.2 0.4 FY2016 FY2017 FY2018 FY2019
Slide 9: Strategy to Enhance Long Term Value
Strategy to Enhance Long Term Value Continue Focus on World Class ESG Performance Augment Our Reserves & Resources Base Operational Excellence and Cost Leadership Optimise Capital Allocation & Maintain Strong Balance Sheet Delivering on Growth Opportunities VEDANTA LIMITED - INVESTOR PRESENTATION 9
Slide 10: Appendix
VEDANTA LIMITED INVESTOR PRESENTATION Appendix Sensitivity: Internal (C3)
Slide 11: Expansion Underway in all Businesses
Expansion Underway in all Businesses Low Costs Assets Leading to Significant Production Ramp-up across all Businesses Zinc India Zinc International Oil & Gas Aluminium Steel Growth projects ▪ Ramp-up of including: Jharsuguda II total ▪ Achieved 1.5 ✓ All expansion smelter from 2.0 Mtpa hot metal - E
Slide 12: Attractive Business Portfolio
Attractive Business Portfolio Aluminum Zinc & Silver Oil & Gas Iron & Steel ✓ Largest aluminum ✓ One of the Largest ✓ India’s largest private- ✓ India's largest private capacity in India with integrated zinc- lead sector crude oil producer sector exporter of iron ore captive power and an smelter sin
Slide 13: Vedanta Growth Trajectory – Focus On Growth Projects
Vedanta Growth Trajectory – Focus On Growth Projects Well Invested And Consolidated Assets : Driving Growth ✓ Acq Zinc Intl FY 2013- ✓ Cmd 1.5mt mill 21 at SK mine FY 2012 √ Cmd 1,980MW TSPL ✓ Cmd 2,400 MW FY2010 JHA FY2012 √ Exp 1.2 mt zinc ✓ Acq VS Dempo FY 2011 ✓ Acq Cairn India √ Cmd 250kt Gamsb
Slide 14: Our Preparation For COVID
Our Preparation For COVID All necessary infrastructure available at site; hospital beds, oxygen and doctor staff. Additionally, we have tie ups with hospitals for emergency Global Standards to Manage Health & Hygiene at Workplace 24*7 health helpline for employees and their family members Most of ou
Slide 15: Vedanta Cares: Roadmap for ₹5,000 crore
Vedanta Cares: Roadmap for ₹ 5,000 crore in Next 5 Years Vedanta has spent more than ₹ 2,000 crore in the last 5 years in CSR Footprint: Over 75 Lacs people to be benefitted in next 5 years Launch of Swasth Gaon Abhiyaan Working with Global Partners Health Care Women & Child Animal Welfare Sports CS
Slide 16: Vedanta Cares: Swasth Gaon Abhiyaan
Vedanta Cares: Swasth Gaon* Abhiyaan across 1000 villages COVID Support During Potential Third Wave Corona Mukt Gaon^ 1,000 Villages 23 Districts Major Thrust Areas 11 States Vaccination Drive across the villages Oxygen Generation Plants / Oxygen Concentrators Telemedicine Services (e-Sanjeevani) Me
Slide 17: Heading Towards – Zero Harm, Zero Waste, Zero Discharge
Heading Towards – Zero Harm, Zero Waste, Zero Discharge Safety Program Update Environment Update ▪ 11 Critical risks identified, with CEO ownership ▪ Digitalization of tailing dam at HZL completed ▪ Implementation of fatality learnings across Tailings ▪ Second assurance of tailing dams underway by C
Slide 18: Aluminium: Success Continues; Growing Value in Dynamic World
Aluminium: Success Continues; Growing Value in Dynamic World Highest Ever Aluminium Production* Alumina Production & COP 549 476 496 482 531 469 1,526 1,433 246 258 1,268 218 Q1 FY21 Q4 FY21 Q1 FY22 Q1 FY21 Q4 FY21 Q1 FY22 Production (kt) COP ($/t) Production (kt) COP ($/T) ▪ Further pots ramp up go
Slide 19: Aluminium: Well Poised to be among Global Leaders
Aluminium: Well, Poised to be among Global Leaders 2.8 Capacity (Mtpa) Step towards Vertical Integration 2.2 1.9 Steps towards Vertical Integration ▪ Lanjigarh expansion by Q1 FY23 (Mobilization FY21 FY22 e 1-2 years on track) ▪ Lanjigarh ▪ Jharsuguda ▪ 100% JSG Ramp-up Debottlenecking (Projects on
Slide 20: Zinc India: Strong Foundation Driving Growth
Zinc India: Strong Foundation Driving Growth ▪ One of the strongest Q1 performance World class technologies for upgrading R&R to 550 million tonnes ▪ Post Integration, the shafts at Rampura Agucha Mine and Sindesar Khurd Mine are fully operational Advanced technology for upgrading R&R ▪ Metal Produc
Slide 21: Zinc International: Gamsberg Positioning for Long Term Value Creation
Zinc International: Gamsberg Positioning for Long Term Value Creation Consistently Achieved Better than Design Crusher Throughput (tph) Highest ever Quarterly Ore Mined 870kt 817 782 Highest ever Quarterly Ore Treatment of 1,056kt 684 684 Highest ever Quarterly Mill Utilization of 91% Design Q1 FY21
Slide 22: Zinc International: Accelerating Ramp Up at Gamsberg
Zinc International: Accelerating Ramp Up at Gamsberg On Track Of Achieving Guidance 145kt 46kt 190-210kt FY21 Q1 FY22 FY22e Q2 Key Priorities Mill recovery Increase Mill Enabling projects Mining ramp-up ramp up Throughput commissioning Enhancing mining Target to achieve Increase Mill Sag mill feed h
Slide 23: Oil & Gas: Steady Operations, Delivery Of Growth Projects on Track
Oil & Gas: Steady Operations, Delivery Of Growth Projects on Track Operations Growth Projects ▪ Production: 165 kboepd in Q1 FY22 vs 165 ▪ Raageshwari Deep Gas: kboepd in Q4 FY21. Gas volumes for Rajasthan ▪ New terminal fully operational; production were impacted by COVID ramped up to ~32 kboepd ▪
Slide 24: Oil & Gas: Upcoming Growth Projects
Oil & Gas: Upcoming Growth Projects New Growth projects with Capex of $350 mn progressing as per plan Capex of ~$200 million to monetize 40 mmboe of reserves ▪ Mangala: Drilling commenced Infill wells to add near term volume ▪ Aishwariya Barmer Hill: Drilling to commence in Q3 FY22 ▪ Raageshwari Dee
Slide 25: Iron ore: Resilient Results in Extraordinary Times
Iron ore: Resilient Results in Extraordinary Times Capitalised opportunity of increased Global prices Performance Update through Exports from Goa 0.8 ▪ Highest ever quarterly margin at VAB of $184/t, up 0.6 Sales (Mnt) 0.4 6x y-o-y and 20% q-o-q ▪ Highest ever quarterly Hot Metal production at Q1 FY
Slide 26: ESL Steel: Capacity Expansion Underway
ESL Steel: Capacity Expansion Underway Performance Update Doubling Hot Metal Capacity Activities Are On Track ▪ Saleable Production 289kt, up 8% y-o-y however down 9% q-o-q due to instabilities and hanging issues at blast furnace ▪ Sales 265kt, down 13% y-o-y and 18% q-o-q due to challenging domesti
Slide 27: FACOR: Delivering Stronger Growth
FACOR: Delivering Stronger Growth Turnaround Performance from Mines Stable Fe Chrome production by optimizing operations and better process control. Ore Production (kt) 123 56 38 Plant productivity increased by ~11% post completion of annual maintenance shutdown of 7 Q1 FY21 Q4 FY21 Q1 FY22 days in
Slide 28: Funding Sources and Term Debt Maturities
Funding Sources and Term Debt Maturities Diversified Funding Sources for Term Debt of $6.6bn Term Debt Maturities : ₹ 49,164 Cr ($6.6bn) (as of 30th Jun 2021) (as at 30th Jun’21) 47% 1% 23.0 Term Loans-INR 10% Bonds-INR 20% 8.3 17% Term Loans- 23% 16% ₹ ‘000 Crore USD/Foreign Currency 8.5 9.8 Bonds-