Slide 1: Outcome of Board Meeting letter to exchanges
VEDL/Sec./SE/20-21/46 June 6, 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers “Exchange Plaza” Dalal Street, Fort Bandra-Kurla Complex, Bandra (East), Mumbai - 400 001 Mumbai – 400 051 Scrip Code: 500295 Scrip Code: VEDL Dear Sir(s), Sub: Outcome of the Board Meet
Slide 2: Consolidated Results for Q4 and Full Year Ended 31 March 2020
Vedanta Limited Regd. Office: Vedanta Limited 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai 400093, Maharashtra. www.vedantalimited.com CIN: L13209MH1965PLC291394 6th June 2020 Vedanta Limited Consolidated Results for the fourth Quarter and full year
Slide 3: Operational Highlights FY2020
Results for the Year Ended 31 March 2020 Operational Highlights FY2020 • Zinc India o Mined metal production of 917kt, down 2% y-o-y o Refined zinc-lead production of 870 kt, down 3% y-o-y • Zinc International: o Gamsberg production volume at 108 kt in FY2020, up from 17kt in FY2019 o Improved cost
Slide 4: CEO statement and Consolidated Financial Performance
Results for the Year Ended 31 March 2020 Mr Sunil Duggal, Chief Executive Officer, Vedanta, said “Vedanta has a rich legacy as India’s only diversified natural resources group. We will continue to further strengthen it in the years to come. It is a company with a strong purpose of giving back for th
Slide 5: Revenue
Results for the Year Ended 31 March 2020 Revenue Revenue for Q4 FY2020 was at ₹ 19,513 crore, lower by 8% sequentially, primarily due to lower commodity prices further impacted by COVID-19, lower volume at Aluminium business and lower power sales at TSPL, past exploration cost recovery at Oil & Gas
Slide 6: Depreciation & Amortization, Finance Cost and Investment Income
Results for the Year Ended 31 March 2020 Depreciation & Amortization Depreciation for Q4 FY2020 was at ₹ 2,252 crore, lower by 2% sequentially, primarily due to lower amortization charge at Zinc India due to increase in reserves estimates and lower amortization charge at Oil & Gas business due to lo
Slide 7: Taxes
Results for the Year Ended 31 March 2020 outbreak of COVID-19, partially offset by RPO liability true up at Aluminium, and interest accrued on power debtors at TSPL in line with positive Supreme Court order. Taxes Tax credit was at ₹ 3,516 crore (FY2019: Tax charge of ₹ 3,862 crores) during the year
Slide 8: Balance Sheet
Results for the Year Ended 31 March 2020 Balance Sheet We have robust cash and liquid investments of ₹ 37,914 crore. The Company follows a Board- approved investment policy and invests in high quality debt instruments with mutual funds, bonds and fixed deposits with banks. The portfolio is rated by
Slide 9: Key Recognitions
Results for the Year Ended 31 March 2020 Key Recognitions Vedanta has been consistently recognized through the receipt of various awards and accolades. During the past quarter, we received the following recognitions: • Hindustan Zinc, the only Indian Metal & Mining company was featured in The Sustai
Slide 10: Results Conference Call
Results for the Year Ended 31 March 2020 Results Conference Call Please note that the results presentation is available in the Investor Relations section of the company website http://www.vedantalimited.com/investor-relations/results-reports.aspx Following the announcement, there will be a conferenc
Slide 11: Communications and About Vedanta Limited
Results for the Year Ended 31 March 2020 Communications Ms. Roma Balwani Tel: +91 11 4916 6250 Director, Communications and Brand gc@vedanta.co.in Mr. Abhinaba Das Head, Media Relations Mr. Anirvan Bhattacharjee / Lennon D’Souza Tel: +91 22 67574444 / +91 11 40565100 Adfactors PR adfactorsvedanta@ad
Slide 12: Vedanta - Transforming Elements
oe vedanta transforming elements ER | ALUMINIUM & POWER | COPPER | IRON ORE-& STEEL .
Slide 13: 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 14: Contents
Contents Section Presenter Page FY20 Review & Business Update Sunil Duggal, CEO 4 Financial Update Arun Kumar, CFO 15 Appendix 23 VEDANTA LIMITED – FY2020 INVESTOR PRESENTATION 3
Slide 15: FY2020 Review & Business Update
FY2020 FY2020 Review & Business Update Sunil Duggal Chief Executive Officer
Slide 16: United Against COVID-19
UNITED AGAINST COVID-19 Employee Safety & Supporting Government Supporting Nation ▪ Contributed ₹ 101 cr to PM Cares ▪ Provided >9 lakh meals to daily Welfare ▪ Sets up ₹ 100 cr corpus for daily wage earners. ▪ Global Standards to Manage workers, preventive healthcare & ▪ Supported 13,500 fisherman
Slide 17: Vedanta Work Readiness in COVID-19
Vedanta Work Readiness in COVID-19 Continuous monitoring of workforce for signs of COVID-19 symptoms Stay Home Elimination Robust business continuity Work Remotely Substitution plan in place Sanitize Engineering Controls frequently Implemented wide ranging controls across operations Practice Social
Slide 18: Key Highlights
Key Highlights Q4 FY20 FY20 Zinc India MIC production up 6% q-o-q MIC production down 2% Metal Production up 1% q-o-q Metal Production down 3% Overall Production down 5% q-o-q Overall Production up 63% Zinc International Gamsberg production at 30kt Gamsberg Production ramped up to 108kt Gross Produc
Slide 19: Heading Towards Zero Harm, Zero Waste, Zero Discharge
Heading Towards – Zero Harm, Zero Waste, Zero Discharge Safety Program Update Environment Update ▪ Increased focus on isolation procedures & Water ▪ ~7 million m3 of water savings 2 fatalities in Q4 adequate infra-in-place to prevent repeats conservation over three years ▪ Guidance Note of VFL devel
Slide 20: Contributing to the communities
Contributing to the communities Benefitting the lives of 3.26 million people across 868 villages Flagship Programs 1250th Nand Ghar established in 4 states Healthcare Drinking Water and Sanitation 1.6 Million people benefited 350,000 people benefited > 35 Initiatives > 25 Initiatives Community Infra
Slide 21: Zinc India: Strong Foundation Driving Growth
Zinc India: Strong Foundation Driving Growth Performance Update Year of Achievements Quarter Performance: Rampura Agucha ▪ MIC Production 249kt, up 6% q-o-q and 2% y-o-y ▪ All major projects for 1.2 Mtpa MIC ▪ Metal Production 221kt, up 1% q-o-q and down 3% y-o-y capacity completed ▪ Silver Producti
Slide 22: Zinc International: Gamsberg Positioning for Long Term Value Creation
Zinc International: Gamsberg Positioning for Long Term Value Creation Performance Update Gamsberg Quarter Performance: Quarter Performance: ▪ Production at 57kt, down 5% q-o-q and up 7% ▪ Production at 30kt with best ever production of y-o-y 13kt in Jan ▪ COP at $1,784/t, up 13% q-o-q and 20% y-o-y
Slide 23: Oil & Gas: Portfolio being monetized to drive multi-fold growth
Oil & Gas: Portfolio being monetized to drive multi-fold growth 235 Wells Drilled 10 new blocks ▪ 75 wells hooked up. 2 new wells in Ravva, ▪ Won 10 blocks in OALP Round II & III (total achieved peak production of 10 kboepd ▪ All wells drilled in Mangala Infill, Bhagyam and 51 blocks under OALP) Ais
Slide 24: Aluminium: Achieving Design Structure
Aluminium: Achieving Design Structure Structural Reduction in Cost Performance Update 1,967 1,810 Quarter Performance: 1,691 1,690 1,451 ▪ Aluminium COP at $1,451/t, down 14% q-o-q and 20% y-o-y ▪ Lanjigarh production 479 kt, flat q-o-q and up 13% y-o-y ▪ Lanjigarh COP at $258/t, down 4% q-o-q and 1
Slide 25: Other Assets: Iron ore and Electrosteel Steels
Other Assets: Iron ore and Electrosteel Steels Iron Ore Electrosteel Steels Performance Update Performance Update Quarter Performance: Quarter Performance: ▪ Karnataka sales 1.6 Mnt, up 8% q-o-q & 17% y-o-y ▪ Production 320kt, up 1% q-o-q and down 8% y-o-y ▪ Pig Iron production 148kt, down 17% q-o-q
Slide 26: Financial Update
FY2020 Financial Update Arun Kumar Chief Financial Officer
Slide 27: Financial snapshot
Financial snapshot EBITDA Net Debt ND/EBITDA ₹ 21,060 cr ₹ 21,273 cr 1.0x Down 12% y-o-y Down 21% y-o-y Maintained at low level EBITDA Margin* Cash & Cash equivalent ROCE^ 29% ~₹ 37,914 cr c. 11% Robust Margin Strong liquidity Continuing double digit * Excludes custom smelting at Copper and Zinc Ind
Slide 28: EBITDA Bridge (Q3 FY2020 vs. Q4 FY2020)
EBITDA Bridge (Q3 FY 2020 vs. Q4 FY 2020) (In ₹ crore) Zinc, Lead & Silver (471) Brent (243) Aluminium (193) Aluminium 503 Steel 82 ESL 79 Iron ore 73 Cairn (59) Past Exploration Cost recovery at Cairn in Q3 FY20 6,531 751 522 1,554 207 337 228 2 5,878 4,844 Market & Regulatory Operational ₹ (653) c
Slide 29: EBITDA Bridge (Q4 FY2019 vs. Q4 FY2020)
EBITDA Bridge (Q4 FY 2019 vs. Q4 FY 2020) (In ₹ crore) Zinc, Lead & Silver (886) Aluminium (595) Brent (409) Iron ore 503 Steel (127) HZL (263) Cairn (233) ZI (79) 6,330 2,004 278 74 5,454 578 924 163 195 4,844 Market & Regulatory Operational ₹ (876) crore ₹ (415) crore Q4 FY2019 LME / Brent Input C
Slide 30: Net Debt for FY2020
Net Debt for FY 2020 (In ₹ crore) Disputed Power Debtors Realization 900 Inventory and debtors 460 Creditors / Customers advance (2,806) 26,956 17,802 1,448 21,273 9,225 1,446 FCF Post Capex ₹ 7,130 Cr Net Debt CF from Capex Dividend Net Debt WC 1st Apr’19 Operations Paid 31st Mar’20 Movements (Incl
Slide 31: Balance Sheet: Term Debt Maturities and Liquidity
Balance Sheet Term Debt Maturities - ₹ 46,574 Crore ($6.2 bn) (as of Mar 31, 2020) ▪ Liquidity 13.3 12.3 – Cash and investments at ₹ 37,914 cr 3.9 – Undrawn line of credit c. ₹ 5,300 crore 9.1 5.6 ▪ Net Interest – ₹ ‘000 Crore 2.7 7.1 2.9 4.8 ▪ Interest Income – Returns ~6.9%. 9.4 6.4 3.5 6.7 ▪ Inte
Slide 32: 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 1.1 0.1 0.8 0.8 0.7 0.1 0.5 0.1 0.6 0.1 0.2 0.2 0.3 0.5 0.2 0.3 0.2 0.1 0.1 0.5 0.5 FY2016 FY2017 FY2018 FY2019 FY2020 FCF pre capex, $bn 2.4 2.8 2.0 2.
Slide 33: Key Investment Highlights
Key Investment Highlights 1 Large Low Cost, Long Life and Diversified Asset Base with an Attractive Commodity Mix 2 Ideally Positioned to Capitalise on Favourable Geographic Presence 3 Well-Invested Assets Driving Cash Flow Growth 4 Operational Excellence and Technology Driving Efficiency and Sustai
Slide 34: Appendix
2S vedanta aaa + Appendix
Slide 35: Income Statement
Income Statement Depreciation & Amortization Q4 Q4 In ₹ Crore FY’20 FY’19 ▪ Higher FY vs FY on account of new well FY’20 FY’19 capitalisation at Oil and Gas business , higher ore Revenue from operations 83,545 90,901 19,513 23,092 production at Zinc India, commencement of Other operating income 902
Slide 36: Income Statement – Exceptional Items
Income Statement – Exceptional Items In ₹ Crore FY’20 FY’19 Exceptional Items – credit / (expense) (17,386) 320 Taxes on Exceptional Items 6,521 (112) Exceptional items net of tax (10,865) 208 Breakup of Exceptional Items / Impairment FY’20 FY’19 net of tax Cairn (9,710 ) 170 Rajasthan Fields (9,218
Slide 37: Project Capex
Project Capex Approved Spent up to Capex3 Spent in Unspent as at Capex in Progress Status ($mn) 31 Mar’194 FY20204,6 31 Mar’20205 Cairn India1 – Mangala Infill, Liquid handling, 2,493 651 492 1,350 Bhagyam & Aishwariya EOR, Tight Oil & Gas etc Aluminium Sector Line 3: Fully capitalised Jharsuguda 1.
Slide 38: Entity Wise Cash and Debt
Entity Wise Cash and Debt 31 Mar 2020 (₹ Crore) 31 Mar 2019 (₹ Crore) Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Vedanta Limited Standalone 38,937 5,029 33,908 42,204 8,269 33,935 Cairn India Holdings Limited 1 3,696 7,776 (4,080) 2,624 8,326 (5,702) Zinc India 611 22,253 (21,642) 2,538
Slide 39: Debt Breakdown & Funding Sources
Debt Breakdown & Funding Sources Diversified Funding Sources for Term Debt of $6.2bn Debt Breakdown (as of 31st Mar 2020) (as of 31 Mar 2020) Debt breakdown as of (in $bn) (₹ in 000’ Cr) 31 March 2020 1% Term debt 6.2 46.6 Term Loans-INR 15% Working capital 0.7 5.0 Bonds-INR Short term borrowing 1.0
Slide 40: EBITDA Bridge (FY2019 vs. FY2020)
EBITDA Bridge (FY2019 vs. FY2020) (In ₹ crore) Aluminum (3,954) Zinc, Lead & Silver (2,153) Iron ore 531 Brent (1,026) ZI 396 Steel (508) ESL 125 Iron ore (199) Aluminium 70 HZL (628) Cairn (638) 24,012 7,839 592 11 20,352 102 422 388 21,060 3,576 Market & Regulatory Operational ₹ (3,660) crore ₹ 32
Slide 41: Segment Summary – Zinc India
Segment Summary – Zinc India Q4 Q3 Full year Production (in ’000 tonnes, or as stated) FY 2020 FY 2019 % change YoY FY2020 FY 2020 FY 2019 % change YoY Mined metal content 249 245 2% 235 917 936 (2)% Underground mines 249 245 2% 235 917 936 (2)% Open cast mines - - - - - - - Integrated metal 221 227
Slide 42: Segment Summary – Zinc International
Segment Summary – Zinc International Q4 Q3 Full year Production (in’000 tonnes, or as stated) FY 2020 FY 2019 % change YoY FY2020 FY 2020 FY 2019 % change YoY Refined Zinc – Skorpion 15 21 (28)% 11 67 66 2% Mined metal content- BMM 12 19 (34)% 18 66 65 1% Mined metal content- Gamsberg* 30 14 - 31 10
Slide 43: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Q4 Q3 Full year OIL AND GAS (boepd) FY 2020 FY 2019 % change YoY FY2020 FY 2020 FY 2019 % change YoY Average Daily Gross Operated 160,838 187,063 (14)% 172,189 172,971 188,784 (8)% Production (boepd) Rajasthan 132,315 152,825 (13)% 145,075 144,260 155,903 (7)% Ravva 17,56
Slide 44: Segment Summary – Oil & Gas
Segment Summary – Oil & Gas Q4 Q3 Full year OIL AND GAS (boepd) FY 2020 FY 2019 % change YoY FY2020 FY 2020 FY 2019 % change YoY Average Daily Production Gross operated 160,838 187,063 (14%) 172,189 172,971 188,784 (8%) Oil 138,205 172,859 (20%) 153,472 154,677 178,207 (13%) Gas (Mmscfd) 136 85 60%
Slide 45: Segment Summary – Aluminium
Segment Summary – Aluminium Particulars (in’000 tonnes, or as Q4 Q3 Full year stated) FY 2020 FY 2019 % change YoY FY2020 FY 2020 FY 2019 % change YoY Alumina – Lanjigarh 479 424 13% 476 1,811 1,501 21% Total Aluminum Production 474 481 (2)% 483 1,904 1,959 (3)% Jharsuguda-I 133 135 (1)% 139 543 545
Slide 46: Aluminium profitability
Aluminium profitability $/t Q3 ‘20 1,752 59 67 1,879 (625) (698) (368) (90) (98) 132 230 49 (138) (247) (106) 1,691 Q4 ‘20 1,451 72 62 1,823 1,690 571 560 320 - - 145 34 340 340 249 (55) 245 LME Ingot Value Realisation Alumina Power Other Hot Conversion Underlying RPO Reported Exceptional Dep Int PB
Slide 47: Segment Summary – Power
Segment Summary – Power Q4 Q3 Full year Particulars (in million units) % change % change FY 2020 FY 2019 FY2020 FY 2020 FY 2019 YoY YoY Total Power Sales 2,107 3,520 (40)% 2,282 11,162 13,517 (17)% Jharsuguda 600 MW 482 615 (22)% 7 776 1,039 (25)% BALCO 600 MW* 460 593 (22)% 387 1,726 2,168 (20)% HZ
Slide 48: Segment Summary – Iron Ore and Steel
Segment Summary – Iron Ore Particulars (in million dry metric tonnes, or Q4 Q3 Full year as stated) FY 2020 FY 2019 % change YoY FY2020 FY 2020 FY 2019 % change YoY Sales 2.3 1.4 62% 1.7 6.6 3.8 73% Goa 0.6 0.0 0% .20 0.9 1.3 (33)% Karnataka 1.6 1.4 17% 1.5 5.8 2.6 - Production of Saleable Ore 0.8 0
Slide 49: Segment Summary – Copper India
Segment Summary – Copper India Q4 Q3 Full year Production (in ’000 tonnes, or as stated) % change % change FY 2020 FY 2019 FY 2020 FY 2020 FY 2019 YoY YoY Copper - Cathodes 26 26 (3)% 20 77 90 (13)% Financials (In ₹ crore, except as stated) Revenue 2,256 2,803 (20)% 1,835 9,053 10,739 (16)% EBITDA (
Slide 50: Sales Summary
Sales Summary Sales volume Q4 FY2020 Q4 FY2019 FY2020 FY 2019 Q3 FY2020 Zinc-India Sales Refined Zinc (kt) 173 177 680 694 172 Refined Lead (kt) 48 52 180 198 41 Total Zinc-Lead (kt) 220 229 860 892 213 Silver (tonnes) 144 196 586 676 153 Zinc-International Sales Zinc Refined (kt) 20 26 67 66 6 Zinc
Slide 51: Sales Summary
Sales Summary Q4 FY Q4 FY Q3 Sales volume Q4 Q4 Q3 Sales volume FY2020 FY2019 FY 2020 FY2019 2020 2019 FY2020 Power Sales (mu) FY 2020 FY 2019 FY2020 Iron-Ore Sales Jharsuguda 600 MW 482 615 776 1,039 7 Goa (mn DMT) 0.6 0.0 0.9 1.3 0.2 TSPL 1,094 2,235 8,223 9,858 1,820 Karnataka (mn DMT) 1.6 1.4 5.
Slide 52: Currency and Commodity Sensitivities
Currency and Commodity Sensitivities Foreign Currency - Impact of 1 Rs depreciation in FX Rate Currency Increase in EBITDA INR/USD ~ INR 600 crs / year Commodity prices – Impact of a 10% increase in Commodity Prices FY‘20 Commodity Average price EBITDA ($mn) Oil ($/bbl) 61 96 Zinc ($/t) 2,402 190 Al
Slide 53: Augment our Reserves and Resources Base
Augment our Reserves and Resources Base Focused exploration to expand our reserves and resources base for support our future growth through • Targeted and disciplined exploration • Offsetting depletion and bringing on stream more discoveries • Team aim to discover mineral and oil deposits in a safe
Slide 54: Group – Present Debt Structure
Group – Present Debt Structure ($ bn) Vedanta Resources (Consolidated) Volcan FY20 FY20 EBITDA 3.00 EBITDA - Net Debt 10.00 Net Debt 0.33 Vedanta Resources (Standalone) FY20 % EBITDA 0.03 1% Net Debt 7.15 72% Divisions of Vedanta Limited 79.4% 50.1% ⚫ Sesa Iron Ore Konkola Copper Mines (KCM) Vedanta
Slide 55: Results Conference Call Details
Results Conference Call Details Results conference call is scheduled at 6:00 PM (IST) on June 8, 2020. The dial-in numbers for the call are given below: Event Telephone Number India: +91 7045671221 Earnings conference call on June 8, 2020 Toll free: 1800 120 1221 Universal access: India – 6:00 PM (I
Slide 56: Intimation under Regulation 30 of SEBI Listing Regulations
Intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with reference to SEBI Circular bearing reference no. SEBI/HO/CFD/CMD1/CIR/P/2020/84 dated May 20, 2020 This is further to our letter no. VEDL/Sec./SE/19-20/172 dated March 30, 2020, we wou
Slide 57: Steps taken to ensure smooth and safe functioning of operations
2. Steps taken to ensure smooth and safe functioning of operations During these testing times our priority is to ensure the health and safety of our employees, contractors and stake holders, while ensuring the business continuity to the extent possible. Our strategy has been threefold: practice phys
Slide 58: Impact on the financial statements
6. Impact on the financial statements There will be no impact of COVID-19 on the publishing of financial statements. The Company will publish its results for the quarter and year ended March 31, 2020 with annual audited accounts within the stipulated timelines. The Company will be holding its Annual