Vedanta Limited · NSE:VEDL

Vedanta — Motilal Oswal Annual Investor Conference 2015

26 slides from Vedanta's conference presentation, September 2015

  1. Slide 1: Commodities – Global Perspective

    Commodities – Global Perspective Tom Albanese Chief Executive Officer Vedanta Ltd September 2015

  2. 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

  3. Slide 3: Vedanta Ltd: A Global Diversified Natural Resources Company

    Vedanta Ltd: A Global Diversified Natural Resources Company Diversified Business Model…. • Portfolio of large, structurally low cost, long life Tier-I EBITDA Mix2 for Q1 FY2016 assets: 1% 12% − Significant near term growth with well invested asset base not requiring large capex 6% 29% 6% − Well posi

  4. Slide 4: Recent volatility in commodities mainly driven by China

    Recent volatility in commodities mainly driven by China Commodity Price Performance & Chinese Stock Index (rebased to 100) 110 PBOC rate cut Δ YTD Δ 3m Aluminium -13% -9% 100 Copper -18% -15% 90 Iron Ore -15% -8% Oil -21% -25% 80 China Market sell off given Zinc -18% -16% weak Chinese 70 economic da

  5. Slide 5: China: Recalibration of economy and growth

    China: Recalibration of economy and growth China Investment in absolute to grow at 6% CAGR “Soft landing” for China 8.0 49% 7.0 48% • New normal: shifting from high speed growth to 6.0 47% moderate growth 5.0 46% 45% 4.0 • Lower growth on higher base 44% 3.0 43% − Investment to GDP peaked, but absol

  6. Slide 6: Oil: Volatility in short-term, with stability in medium term

    Oil: Volatility in short-term, with stability and improved market dynamics in medium term Current Demand and Supply Dynamics Oil Supply & Demand forecasts (mmbbl/d) (mmbbl/d)  Over supply has resulted in prices falling by c.50% last year 1.4 100 1.2  Iran could add to over-supply in the market 98

  7. Slide 7: Aluminum: Cost curve suggests 50%+ of world’s capacity at loss

    Aluminum: Cost curve suggests 50%+ of world’s capacity at loss Aluminium Cost Curve Current Demand and Supply Dynamics  Sharp rise in Chinese exports causing short-term market Cost (US$/t) 3,000 saturation  Cost curve suggest >50% of world capacity at loss based on current 2,500 Spot price + Premi

  8. Slide 8: Zinc: Attractive Fundamentals

    Zinc: Attractive Fundamentals Zinc market is expected to be in a state of deficit Concentrate deficit supporting zinc prices ‘000 mt  Zinc has strong fundamentals in the commodity complex; 500 Concentrate Surplus (+) Deficit (-) recent fall in Zinc prices driven by the broader sell off in commodity

  9. Slide 9: Copper and Iron Ore

    Copper and Iron Ore Copper market to witness supply deficit in the medium term  Supply surplus partially offset by supply interruptions Tuticorin Smelter  Smelter continues to maintain strong operational efficiency  Positioned in the lowest cost quartile  Strong TC/RC outlook and acid realizatio

  10. Slide 10: Indian Government Committed to Reforms

    Indian Government Committed to Reforms What has happened?  Electrifying India through 22,000Km transmission lines  Highway projects of c.8,000km awarded (3,621Km in FY14)  Record increase in Coal production Government priorities and targets  Housing for all by 2022: 60 million houses in urban an

  11. Slide 11: Vedanta: Addressing current market volatility, well positioned for long term growth

    Vedanta: Addressing current market volatility, well positioned to benefit from long term growth Aluminium consumption to rise with growth in population and urbanisation  Diversified portfolio and high quality 60,000 2050 population level 10 workforce have enabled us to endure 50,000 45% 50% 40% urb

  12. Slide 12: Appendix

    = vedanta Appendix

  13. Slide 13: Safety and Sustainability: Key to our Operations

    Safety and Sustainability: Key to our Operations Safety  Focus on bringing in a culture of Zero-Harm LTIFR (per million man-hours worked)  Performance incentives linked to safety performance 0.89  Ensure effective implementation of Safety Standards 0.52 0.45 0.43 Environment  “Zero” Higher Categ

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: 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  Greater financial f

  17. Slide 17: 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

  18. Slide 18: 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

  19. Slide 19: 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

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: 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 3

  23. Slide 23: 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 BALCO 600 MW1 10 10 MALCO 193 229 -16% 231 897 HZL Wind Power 127 146 -

  24. Slide 24: 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

  25. Slide 25: 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 Karnataka (mn DMT)1 0.5 0.5 - 1.2 BALCO 270 MW 99 70 18 89 Total (m

  26. Slide 26: 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%

Vedanta — Motilal Oswal Annual Investor Conference 2015 on 6ix