Vedanta Resources — Debt Investor Presentation (May 2024)
41 slides from Vedanta Resources's debt investor presentation, May 31, 2024
Slide 1: Virtual Bond Holder Meeting FY 2023-24
Virtual Bond Holder Meeting FY 2023-24 Sensitivity: Internal (C3)
Slide 2: Aluminium: From Mine to Market – An Integrated Approach
Aluminium From Mine to Market – An Integrated Approach John Slaven, Chief Executive Officer, Vedanta Aluminium 2 Sensitivity: Internal (C3)
Slide 3: Vedanta's Compelling Competitive Advantage delivering strong performance
Vedanta’s Compelling Competitive Advantage delivering strong performance Vertically integrated, strategically located assets creating unrivalled, unequalled competitive advantage FY24 Production 2370 KT Located in mineral rich province EBITDA margin of $587/T in H2FY24 Serving Customers in 60 countr
Slide 4: Demonstrated track record of Operational Excellence in Volume and Cost
Demonstrated track record of Operational Excellence in Volume and Cost, Powerful cash generation engine Planned ~3x growth in EBITDA to deliver exceptional value creation Production Volume (in MTPA) Cost of Production (in $/T) $/T EBITDA 3.00 ~2,700 300 ~1,200 ~$1,000/T ~0.5 MTPA reduction increase
Slide 5: Driving profitable growth through balanced vertical integration
Driving profitable growth through balanced vertical integration Projects underway to achieve ~3 MTPA of Integrated Supply Aluminum Value Chain – Existing Post Expansion Bauxite Alumina VAP Bauxite VAP Alumina 3 MTPA 2 MTPA 1.4 MTPA 12 MTPA 2.6 MTPA (Overland) (Captive) (61%) (Captive) (83%) 6 MTPA 3
Slide 6: Key takeaways
Key takeaways Vertically-integrated supply Exclusive focus on value- ~3MTPA production at $1,200/T chain enabling industry-leading added products to meet EBITDA margin delivering costs. From mid Q1 to lowest sophisticated customer needs in exceptional value creation overall rapidly growing Indian Ma
Slide 7: Zinc India: A legacy of leadership
Zinc India A legacy of leadership Arun Misra Executive Director Vedanta Limited 7 Sensitivity: Internal (C3)
Slide 8: Zinc India: Key Strengths
Zinc India : Key Strengths • World’s 2nd largest integrated zinc producer and 3rd leading silver producer Smelting Capacity • Fully integrated India’s only zinc-lead-silver producer over five decades of expertise in mining and smelting • 2nd highest zinc R&R base globally with average grade of Zinc
Slide 9: Zinc India: Vision, Mission and Growth Narrative
Zinc India: Vision, Mission and Growth Narrative Vision to be the world’s largest and most admired Zinc, Lead & Silver Company 01 02 03 Capacity Expansion Mine Portfolio with long life Cost Optimization • Roaster of 160 Ktpa at Debari: FY2025 • Innovative technology and advanced • Efficient ore haul
Slide 10: Zinc India: Vision, Mission and Growth Narrative
Zinc India : Vision, Mission and Growth Narrative MISSION: Enhance stakeholder value, be the lowest cost producer & maintain market leadership 04 05 Expanding VAP Portfolio Sustainable Future • Ramp up of 30kt Alloy plant • RE power delivery agreement to cater • Forward integration through 510 Ktpa
Slide 11: Key Takeaways – A Diversified Growth
Key Takeaways – A Diversified Growth HZL • Robust EBITDA margin of ~50% • World’s 3rd largest silver producer • Strong Resource and Reserve base to potentially expand to a capacity of 2 million tonnes metal with 1500 tonnes of silver. 11 Sensitivity: Internal (C3)
Slide 12: Base Metals: Unlocking the potential of reserves' powerhouse
Base Metals Unlocking the potential of reserves’ powerhouse Chris Griffith Chief Executive Officer, Vedanta Base Metal 12 Sensitivity: Internal (C3)
Slide 13: Base Metals Assets Overview
Base Metals Assets Overview Highly scalable base metal portfolio of multinational future-facing assets Locations of Key Operations Asset Base Zinc International Copper Sector KCM Black Mountain Copper India Mining UAE Fujairah Gold INDIA • Underground Mining • Silvassa Refinery 220 • Underground & S
Slide 14: Vedanta Zinc International – Vision to be 1MTPA producer
Vedanta Zinc International – Vision to be 1MTPA producer at <1,200$/t Strong pipeline of projects to tap on ~35 MT R&R Cost & Mine Portfolio Ramping up Exploration Capacity Ramping up Drive cost and margin profitability with long life to enhance R&R Expansion Gamsberg mine EBITDA potential Optimisat
Slide 15: Copper Sector Vision
Copper Sector Vision To become 1 million tonnes custom copper producer by 2030 Custom smelting & refining of Copper Fujairah State of the Art ~2.5X increase in Copper India Ramp up cathode UAE & Greenfield expansion Profitability profitability (EBITDA volume to ~500ktpa Saudi KSA project in Saudi Ar
Slide 16: Konkola Copper Mines: brownfield expansion to +300ktpa by 2031
Konkola Copper Mines Low-cost brownfield expansion to achieve +300ktpa production by 2031 Project and Execution plan to achieve 300 ktpa KDMP ramp up to Cost & Drive cost and margin Mine Portfolio Strong R&R with high Capacity achieve mined profitability EBITDA potential with long life copper grade.
Slide 17: Key takeaways
Key takeaways A portfolio of large- Unlocking further Aspiring to become a Heading towards 1 Leading to an scale, multinational potential with assets premier 1 mtpa mtpa Zinc production EBITDA potential of assets primed for the like KCM in Zambia Copper producer by milestone by 2030 at $2bn p.a. by
Slide 18: Value Accretion: Committed to delivering all round ESG performance
Value Accretion Committed to delivering all roundESG performance ↑ Ajay Goel Chief Financial Officer, Vedanta Limited 18 Sensitivity: Internal (C3)
Slide 19: Driving Success: Balanced Capital Allocation – Growth & Deleveraging
Driving Success: Balanced Capital Allocation – Growth & Deleveraging FY26/FY27e All building blocks in place for Particulars UoM FY24 FY25e (Annual) EBITDA augmentation Group EBITDA $bn 4.7 6.5 7.0 – 8.0 ($bn) ~ 25% CAGR FCF (pre growth Capex)1 $bn 2.8 3.5 – 4.0 4.5 – 5.5 7.5 6.5 Growth Capex1 $bn 1
Slide 20: Vedanta Resources Balance sheet – De-leveraged and Reprofiled
Vedanta Resources Balance sheet – De-leveraged and Reprofiled Net debt at VRL Standalone Maturity restructured through Liability Management (LM) ($bn) Pre Post ($bn) 9.7 4.1 8.3 7.7 6.0 1.8 1.1 0.9 0.9 0.8 0.8 0.6 0.2 0.0 FY25 FY26 FY27 FY28 FY29 Mar-22 Sep-22 Mar-23 Mar-24 VRL has de-leveraged its
Slide 21: Vedanta Group short term Debt Management
Vedanta Group short term Debt Management quite comfortable with healthy cash flows Vedanta Resources Long Term Debt Maturities Vedanta Limited Long Term Debt Maturities Loans Bonds ($bn) Subsidiaries Standalone ($bn) 0.8 2.2 0.9 3.0 0.4 2.2 0.9 0.9 1.3 1.3 FY 25 FY 26 FY27 FY 25 FY 26 FY27 onwards o
Slide 22: Vedanta Resources to further deleverage by $3 bn
Key Highlight Vedanta Resources to further deleverage by $3 bn over next 3 years and bring its standalone debt below $3 bn. 22 Sensitivity: Internal (C3)
Slide 23: Conclusion: Vedanta Promising a Bold tomorrow
Conclusion Vedanta Promising a Bold tomorrow FY25e EBITDA: Cost Leadership: Further Consistent explorations and Doubling Power (IPP) 10% CoP reduction target in development leads to O&G 6.5 $bn, 57% Growth Capacity to ~5 GW volume augmentation Aluminum & Zinc India 3 MTPA Aluminum + Zinc Internation
Slide 24: Appendix
Appendix 24 Sensitivity: Internal (C3)
Slide 25: Oil & Gas: Fueling India's Growth
Oil & Gas Fueling India’s Growth Steve Moore Deputy Chief Executive Officer, Vedanta Oil and Gas 25 Sensitivity: Internal (C3)
Slide 26: Vision: Cairn Oil & Gas | Fuel for Change
Vision : Cairn Oil & Gas | Fuel for Change Assets, Acreage & R&R • Cairn has 62 blocks Contribute over • (5 PSC, 46 OALP, 10 DSF, 1 CBM) • >60,000 sq. km Acreage • R&R 1.2 bnoe 50% Key Enablers People of India’s Oil Technology & Gas Production Partners Safe & Sustainable Production 26 Sensitivity: I
Slide 27: Exploration Portfolio – Overview
Exploration Portfolio – Overview Rajasthan: North-East: Western Offshore, Eastern Offshore 1112 8 OALP blocks 12 OALP blocks 1540 North (HF-GV) Cambay: 12 OALP blocks Rajasthan North-East GK-GS Cambay RJ PSC, 404 MB Mahanadi Ravva Unconventional, Western Offshore: PSC, 304 7 OALP blocks KG Eastern O
Slide 28: Strong Reserve and Resource Base
Strong Reserve and Resource Base Convert PR → Resources → Reserves (Mmboe) Production Potential (Kboepd Gross) 300 Long Term Mid Term Short Term 2P Developed Reserves 2C Discovered Resources 250 Exploration Exploration (1) 5,000 200 150 668 2C Resources New Exploration/ > Appraisal Near Execution 51
Slide 29: Cairn Decarbonization Roadmap
Cairn Decarbonization Roadmap Path to Net Zero (1) Aim for 2030 with an aggressive target for 2028 Emissions Starting Reduction / Point Electrification Renewables Investments 35 (2) (25 MW committed 47 MW underway) kgCO2e/boe Waste to Power + Carbon Capture + ~2X EOR (Concept Studies) Natural Carbon
Slide 30: Key takeaways
Key takeaways Rich set of acreage comprising Strong Reserve & Resource Robust exploration portfolio of Onshore & Offshore fields portfolio of 1.2 million barrels with over 5 billion barrels of across India to drive short and mid term volume prospective resource portfolio. growth - infill wells, EOR
Slide 31: Power: Powering a Brighter Future
Power Powering a Brighter Future Vibhav Agarwal Chief Executive Officer, Vedanta Power 31 Sensitivity: Internal (C3)
Slide 32: Thermal Opportunity – Explosive growth ahead
Thermal Opportunity – Explosive growth ahead Globally - RE installed capacity vs Thermal Opportunity – Thermal Power remains dominant 1 RE % share in power generation mix2 Need for Capacity Addition1 Non-RE RE Installed RE Capacity (GW) Capacity Addition Peak Power - Demand 1600 50% required by FY32
Slide 33: Asset Portfolio
Asset Portfolio Operating Capacity : 2580 MW MEL : 1000 MW Athena : 1200 MW 4780 MW FY24 FY25 FY26 FY27 4780 MW running at full efficiency Talwandi Sabo Power Jharsuguda Meenakshi Energy Athena Operational Growth Limited 1980 MW IPP 600 MW Limited 1000 MW 1200 MW 4th largest Punjab Odisha Andhra Pra
Slide 34: Accelerating growth in EBITDA, Revenue (FY24-FY27)
Accelerating growth in EBITDA, Revenue (FY24-FY27) FY24 FY27 Share of Revenue FY 24 Share of Revenue FY 27 TSPL JSG TSPL JSG ATHENA MEENAKSHI All figures are 4541 in ₹ Cr 6099* 30% Revenue ₹ 6910 crore 2.2X ₹ 15000 88% 1222 crore 8% 6148* 40% 3404 22% EBITDA ₹ 1050 crore 3.4X ₹ 3500 811 crore 12% *R
Slide 35: Key takeaways
Key takeaways Already a significant Power Business to Growth roadmap of Capacity expansion RE switchover of player in the Power be a major Power Business beyond ~5 GW metal business to Sector with ~5 GW contributors to includes foray into driven through enable captive capacity bottom line of Nuclear
Slide 36: Vedanta Zinc India and Iron and Steel Business
Vedanta Vedanta Zinc Iron and India SteelBusiness Business Arun Misra Executive Director Vedanta Limited 36 Sensitivity: Internal (C3)
Slide 37: Sesa Goa Overview
Sesa Goa Overview Liberia (WCL) Karnataka (IOK) Goa (IOG) Sesa Coke Includes Bomi (currently producing), Bea and Mano iron Includes Bicholim iron ore mine and Cudnem iron ore mine Includes two merchant coke Includes A. Narrain iron ore mine (first production expected mid-2024) plants in Gujarat and
Slide 38: Sesa Goa: Growth
Sesa Goa : Growth Saleable Iron Ore (Mnt dmt) Production Volume (Mnt) IOK WCL IOO IOG Mining 55 VAB Coke 4 • VAB – 0.4 MTPA DIP • IOK – 15 MTPA EC Enhancement 600 10 • 1 MTPA Green-steel Expansion • WCL – 31 MTPA Expansion 4X 3X • IOO – Captive Consumption Ramp-up • IOG – EC Enhancement to 4 MTPA 18
Slide 39: ESL at a Glance
ESL at a Glance Integrated Platform - EBITDA 3 MTPA 5.5 MTPA 65% ~2,300 UP TO 20 - 30%(1) 3MTPA- 500 mn$ 15MTPA Operational Installed 100% Captive Captive Power Acres Lower Capex 10 MTPA- 2 bn$ Highlights Expansion Capacity Iron Ore in Odisha (Thermal, of Land for gas based Potential (by Dec-24) (c.
Slide 40: Poised to be India's largest Ferrochrome producer by 2027
FACOR’s Grow th Vision Poised to be the India’s largest Ferrochrome producer by 2027 with 500 KTPA capacity LEASE LEASE PERIOD RESERVE RESOURCE MINES AREA (Ha) (year) (Mn ton) (Mn ton) 45 & 33 MVA Furnaces Osthapal 73 2035 19.6 17.5 K'ggta 24 2058 0.33 1.5 100 MW Power Plant Kathpal 113 2030 0.5 1.1
Slide 41: Thank You
Thank You Sensitivity: Internal (C3)
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