Slide 1: Vedanta Limited Q1 FY2016 Results
Vedanta Limited (formerly known as Sesa Sterlite Ltd./Sesa Goa Ltd.) Q1 FY2016 Results 29 July 2015 Results conference call details are on the last page of this document
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from statements. We do not undertake to update our forward-looking publicly available sources that have not been independently verified. statements. We caution you that reliance on any forward-looking statem
Slide 3: Strategic Update
Strategic Update Tom Albanese Chief Executive Officer
Slide 4: Safety and Sustainability
Safety and Sustainability Safety 4 fatalities in Q1 FY2016 LTIFR (per million man-hours worked) Focus on bringing in a culture of Zero-Harm 0.89 Performance incentives linked to safety performance Ensure effective implementation of Safety Standards 0.52 0.45 0.43 Environment “Zero” Higher
Slide 5: Q1 FY2016 Results Highlights
Q1 FY2016 Results Highlights Operations EBITDA Mix for Q1 FY2016 Zinc-India: Mined & refined metal production significantly higher; 1% maintained lowest decile cost position 13% Oil & Gas: Steady production from Rajasthan; gas production from RDG field up 20% q-o-q 7% 32% 0% Aluminium : Record
Slide 6: Merger of Vedanta Ltd and Cairn India Ltd
Merger of Vedanta Ltd and Cairn India Ltd Diversified portfolio de-risks earnings volatility and drives Diversified commodity model has generated superior stable cash flows through the cycle shareholder returns Improved ability to allocate capital to highest return projects 2005 – 2015 Total Sha
Slide 7: Financial Update
Financial Update D.D. Jalan Chief Financial officer
Slide 8: Financial Highlights
Financial Highlights EBITDA lower y-o-y mainly on account of lower oil prices; sequentially stable in volatile commodity market Impacted by provisions for previous periods relating to renewable power obligation (RPO) of Rs. 414 crore Debt increased q-o-q for funding project payments and tempor
Slide 9: EBITDA Bridge
EBITDA Bridge Q1 FY2016 vs. Q4 FY2015 (In Rs. Crore) • Previous period had: - Exploration expenses: 481 cr. - GRIDCO provision: 268 cr. 5,000 - Others: 8 cr. • Cost efficiencies offset 403 251 259 414 by regulatory impact of: - DMF1: 126 cr. 321 - Cess: 112 cr 757 4,039 3,986 4,000 3,661 304 75 3,00
Slide 10: Income Statement
Income Statement Lower finance cost In Rs. Crore Q1 Q1 Q4 FY’16 FY’15 FY’15 ─ Refinanced debt at lower cost EBITDA 4,039 5,670 3,986 Finance Cost (1,358) (1,537) (1,321) Lower other income Other Income 893 1,210 41 ─ Timing differences - investment income in mutual funds recognised at maturity a
Slide 11: Maturity Profile
Maturity Profile Term Debt Maturity Profile of $7.6bn Diversified Funding Sources for Term Debt of $ 7.6bn (as of 30 June 2015) (as of 30 June 2015) Subsidiaries Standalone Short Term Loans - USD 1.8 4% 1.6 1.7 Money Market 0.9 1.1 0.6 0.6 Instruments- Bonds-INR - INR 18% 24% 0.9 0.6 0.5 0.4 0.9 1.0
Slide 12: Business Review
Business Review Tom Albanese Chief Executive Officer
Slide 13: Oil & Gas
Oil & Gas Q1 Results Gross Average Production: 209,738 boepd Steady production from Rajasthan at 172,224 boepd; gas production from RDG fields grows 20% q-o-q Offshore production up 8% y-o-y Improvement in Rajasthan water flood operating costs by 10%: Opex reduced from $5.8/boe in FY15 to $5
Slide 14: Zinc India
Zinc India Q1 Results Concentrate deficit supporting zinc prices Mined metal production at 232 kt, 42% higher in line with ‘000 mt 800 mine-plan Concentrate Surplus (+) Deficit (-) (LHS) 2018 600 Maintained lowest decile cost position Dugald River (210 kt/a) and commence Gamsberg (250kt/a) 400 −
Slide 15: Zinc International
Zinc International Q1 Results Production of 70kt in line with guidance: ─ Mined metal production lower due to Lisheen ramp down ─ Skorpion: Refined metal production lower due to lower grades and higher stripping ratio ─ Q1 FY2016 COP at $1,409/t ─ Lisheen expected to close by November 2015 Project
Slide 16: Aluminium
Aluminium Q1 Results Aluminium Costs and Margins1 (in $/t, for Q1 FY2016) Record quarterly aluminium production; 500kt Jharsuguda-I Value added production & 245kt Korba-I smelters operated at a steady rate at 42% Continued high utilisation rates at Lanjigarh alumina refinery CoP at $1,6891 /t
Slide 17: Power
Power Strategy Power Generation Capacity: Q1 FY2016 Coal Mix (6 mt) Integration of group-wide coal procurement, operations and c. 9 GW power sales to leverage synergies across the 9 GW portfolio Captive Power c. 3 GW Q1 Results (80% Commenced operations) 18% Jharsuguda 2400 MW: 47% PLF in Q1FY20
Slide 18: Other Assets: Iron Ore and Copper - India
Other Assets: Iron Ore and Copper - India Iron Ore Karnataka Commenced production; sold 0.5mt Goa Pending approvals expected during early August; mining expected to resume post monsoons Safety training in process to prepare for restart Cost reduction initiatives being pursued Working close
Slide 19: Strategic Priorities
Strategic Priorities Production Growth and Asset optimisation Operating at full capacity Strengthen the Balance Sheet Reduce Gearing; maximise free cash flow Simplify the Group structure Complete Vedanta Ltd - Cairn India merger Protect and preserve our License to Operate Identify next generation of
Slide 20: Appendix
3S vedanta Appendix
Slide 21: Entity Wise Cash and Debt
Entity Wise Cash and Debt (in Rs. Crore) 30 June 2014 31 March 2015 30 June 2015 Company Net Debt Cash & LI Net Debt Debt Cash & LI Net Debt Debt Cash & LI Debt Vedanta Limited 39,883 2,489 36,484 37,636 840 36,796 40,164 1,263 38,901 Standalone Zinc India - 24,611 (24,611) - 27,192 (27,192) - 27,51
Slide 22: EBITDA Bridge
EBITDA Bridge Q1 FY2016 vs. Q1 FY2015 (In Rs. Crore) • Previous period had: - Exploration expenses: 180 cr. 6,000 1,512 - Maintenance expense at 5,670 copper smelter: 115 cr. • Cost efficiencies offset - Others: 109 cr. by regulatory impact of: - DMF1: 242 cr. - Cess: 157 cr 5,000 446 414 297 404 4,
Slide 23: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Q1 Q4 Full Year OIL AND GAS (boepd) FY 2016 FY 2015 % change YoY FY2015 FY 2015 Average Daily Total Gross Operated Production (boepd)* 224,294 220,876 217,935 226,597 -4% Average Daily Gross Operated Production (boepd) 215,553 211,671 209,738 217,869 -4% Rajasthan 174,206
Slide 24: Segment Summary – Zinc India
Segment Summary – Zinc India Q1 Q4 Full Year Production (in ’000 tonnes, or as stated) FY 2016 FY 2015 % change YoY FY2015 FY 2015 Mined metal content 232 163 42% 269 887 Refined Zinc – Total 187 141 33% 217 734 Refined Zinc – Integrated 187 139 35% 217 721 Refined Zinc – Custom - 2 0 13 1 Refined L
Slide 25: Segment Summary – Zinc International
Segment Summary – Zinc International Q1 Q4 Full Year Production (in’000 tonnes, or as stated) % change FY 2016 FY 2015 FY2015 FY 2015 YoY Refined Zinc – Skorpion 26 33 -22% 17 102 Mined metal content- BMM 15 15 1% 16 59 Mined metal content- Lisheen 29 36 -18% 37 150 Total 70 84 -16% 69 312 Financial
Slide 26: Segment Summary – Copper India
Segment Summary – Copper India Q1 Q4 Full Year Production (in ’000 tonnes, or as stated) % change FY 2016 FY 2015 FY2015 FY 2015 YoY Copper - Mined metal content - - - - Copper - Cathodes 98 66 49% 97 362 Tuticorin power sales (million units) 175 136 28% 158 641 Financials (In Rs. crore, except as s
Slide 27: Segment Summary – Iron Ore
Segment Summary – Iron Ore Q1 Q4 Full Year Particulars (in million dry metric tonnes, or as stated) % change FY 2016 FY 2015 FY2015 FY 2015 YoY Sales 0.5 0.5 11% - 1.2 Goa - - - - - Karnataka 0.5 0.5 11% - 1.2 Production of Saleable Ore 0.2 0.0 0.3 0.6 Goa - - - - - Karnataka 0.2 0.0 0.3 0.6 Product
Slide 28: Segment Summary – Aluminium
Segment Summary – Aluminium Q1 Q4 Full Year Particulars (in’000 tonnes, or as stated) FY2016 FY2015 % change FY2015 FY2015 Alumina – Lanjigarh 269 233 15% 274 977 Total Aluminum Production 232 203 14% 229 877 Jharsuguda-I 132 132 -1% 131 534 1 Jharsuguda-II 20 - 14 19 245kt Korba-I 62 60 3% 63 253 2
Slide 29: Segment Summary – Power
Segment Summary – Power Q1 Q4 Full Year Particulars (in million units) % FY2016 FY2015 FY2015 FY2015 change Total Power Sales 3,070 2,599 18% 2,547 9,859 Jharsuguda 2400 MW 2,266 2,154 5% 1,525 7,206 BALCO 270 MW 99 70 42% 18 89 1 BALCO 600 MW 10 10 MALCO 193 229 -16% 231 897 HZL Wind Power 127 146
Slide 30: Sales Summary
Sales Summary Sales volume Q1 FY2016 Q1FY2015 Q4 FY 2015 FY 2015 Zinc-India Sales Refined Zinc (kt) 180 142 223 736 Refined Lead (kt) 29 32 37 129 Zinc Concentrate (DMT) - - - - Lead Concentrate (DMT) - - - - Total Zinc (Refined+Conc) kt 180 142 223 736 Total Lead (Refined+Conc) kt 29 32 37 129 Tota
Slide 31: Sales Summary
Sales Summary Sales volume Sales volume Q1 FY2016 Q1FY2015 Q4FY 2015 FY 2015 Q1 FY2016 Q1FY2015 Q4 FY 2015 FY 2015 Power Sales (mu) Jharsuguda 2,400 MW Iron-Ore Sales 2,266 2,154 1,525 7,206 Goa (mn DMT) - - - - TSPL - 384 690 1,213 1 Karnataka (mn DMT) 0.5 0.5 - 1.2 BALCO 270 MW 99 70 18 89 Total (
Slide 32: Group Structure
Group Structure Vedanta Resources Plc Divisions of Vedanta Limited 79.4% 62.9% Sesa Iron Ore Konkola Sterlite Copper (Tuticorin) Copper Vedanta Ltd Power (2,400 MW Jharsuguda) Mines (KCM) Aluminium (Odisha aluminium and power assets) Subsidiaries of Vedanta Ltd 59.9% 64.9% 51% 100% 100% 100%
Slide 33: Results Conference Call Details
Results Conference Call Details Results conference call is scheduled at 6:00 PM (IST) on Wednesday, 29 July 2015. The dial-in numbers for the call are given below: Event Telephone Number Earnings conference call on Mumbai main access 29 July 2015 India – 6:00 PM (IST) +91 22 3938 1017 Mumbai standby