Vedanta Limited · NSE:VEDL
Vedanta — Sesa Sterlite — Investor Presentation (February 2014)
22 slides from Vedanta's investor presentation, February 2014
Slide 1: Sesa Sterlite Limited Investor Presentation
Sesa Sterlite Limited Investor Presentation February 2014
Slide 2: Cautionary Statement and Disclaimer
Cautionary Statement and Disclaimer The views expressed here may contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this information. Any forwa
Slide 3: Sesa Sterlite: Investment Highlights
Sesa Sterlite: Investment Highlights Financial Highlights • One of the world’s largest diversified natural In Rs. crore except as stated resource majors Q3 FY2014 FY20131 – Operations across Base Metals, Iron EBITDA 6,565 25,232 Ore, Silver, Oil & Gas and Commercial EBITDA Margin2 48% 48% Power Attr
Slide 4: Portfolio of Tier-1 Assets
Portfolio of Tier -1 Assets Oil & Gas: India’s largest private sector Zinc India: World’s 2nd largest integrated zinc Zinc International: Assets in South Africa, Business crude oil producer producer, one of the largest silver producers Namibia and Ireland R&R 15 years 25+ years 20+ years Capacity 22
Slide 5: Vision and Strategy
Vision and Strategy To deliver growth, long-term value and sustainable development through our diversified portfolio of large, long-life, low-cost assets. Our Strategy is based on the following three pillars: Growth Long Term Value Sustainability Responsible Organic Growth Optimise Returns Stewardsh
Slide 6: Key Priorities
Key Priorities Production growth Continue to add R&R Reduce gearing from in our existing portfolio across portfolio with of assets Minority buyouts free cash flow focus on returns to drive long-term value Production ramp-up Disciplined capital from well-invested Continued focus to Buyout of GoI’s al
Slide 7: Opportunities and Challenges
Opportunities and Challenges Group Structure Merger Completed Buyout of GoI’s stake in HZL and BALCO Zinc India Mining Expansion: 1.2mtpa by FY2017 225+ kboepd by FY2014 Oil & Gas GoI issued policy on Integrated Block Development Re-commenced exploration in Rajasthan Karnataka:
Slide 8: Strong Production Growth with Consistent EBITDA Margin
Strong Production Growth with Consistent EBITDA Margin Production Growth Consistent Margins driven by Diversification (in Copper Equivalent kt)1 (EBITDA by Segment in USD mn) Zinc-Lead Silver Copper Aluminium Zinc Iron ore 2,500 Copper Aluminium Power Iron Ore Oil & Gas Power Oil & Gas EBITDA Margin
Slide 9: One of the World's Largest Diversified Natural Resource Companies
Sesa Sterlite Limited One of the World’s Largest Diversified Natural Resource Companies World’s fastest growing Energy company* World’s 2nd largest integrated Zinc producer Owns one of the World’s largest undeveloped Zinc deposits One of the World’s largest Aluminium capacities with captive power On
Slide 10: Appendix
= . 3 esa sterlite a vedanta company Appendix
Slide 11: 9M FY2014 performance
9M FY2014 performance Production¹ (% change 9M FY2014 Vs. 9M FY2013) EBITDA Margin by Segment ¹ Oil & Gas² 5% Oil & Gas Zinc India - Mined Metal 11% 75% Zinc- India Zinc India - Silver³ 18% 54% Zinc - International -13% Power 34% Copper Australia -13% Zinc- International 30% Copper India⁴ 7% Alumini
Slide 12: Zinc-Lead-Silver
Zinc-Lead-Silver Zinc India Zinc-India 9M FY2013 9M FY2014 Production & COP Mined Metal (kt) 610 680 Refined Zinc – Integrated (kt) 479 564 • Ramp-up in mined metal volumes Refined Lead – Integrated (kt)1 75 87 • Operational efficiencies drove strong refined volumes Saleable Silver – Integrated (ton
Slide 13: Oil & Gas
Oil & Gas Robust production growth and Operational efficiency Oil & Gas 9M FY2013 9M FY2014 • 5% Y-o-Y production growth during 9M FY 2014 Average Daily Gross Operated Production 206,405 216,760 • Cumulative production of ~560 mmboe till 31st December 2013 (boepd) • Facility Uptime >99% with a low f
Slide 14: Oil & Gas: Rajasthan - A World Class Asset
Oil & Gas: Rajasthan - A World Class Asset Excellence in execution Production Growth • Top quartile HSE performance (kboepd) • Discovery to production in 4 years • Onshore, low cost asset with primarily liquids • Leveraging technology 178 169 – World’s longest heated 128 pipeline 101 – Modular well
Slide 15: Copper – India/Australia
Copper – India/Australia Production Copper-India/Australia 9M FY2013 9M FY2014 • Smelter restarted in end June 2013 Mined Metal – Australia (kt) 19 17 – record copper cathode production in Q3 Copper Cathodes– India (kt) 267 197 • Australian Mine production affected due to an accident in Q3 Tuticorin
Slide 16: Iron Ore
Iron Ore Karnataka Iron Ore and Pig Iron 9M FY2013 9M FY2014 • Resumed mining in Dec 2013 Sales (mt) 3.1 - – provisional capacity of 2.29 mtpa Goa 3.0 - • Ramping up production to a run-rate of 0.5 mt/month Karnataka 0.1 - Production 3.7 - Average Net Sales Realizations ($/t) 70 - Pig iron - Product
Slide 17: Aluminium
Aluminium Aluminium and Alumina 9M FY2013 9M FY2014 Production & COP Aluminium Production (kt) 579 595 • BALCO and Jharsuguda smelters operated above rated capacity BALCO 185 187 Jharsuguda-I 394 407 • Lanjigarh refinery operating at 72% utilisation Aluminium LME ($/t) 1,964 1,794 – expected to ramp
Slide 18: Power
Power Power 9M FY2013 9M FY2014 Production & COP • PLF impacted due to lower demand and evacuation Total Sales (mu) 7,491 7,282 constraints Jharsuguda 2,400 MW 1 5,457 5,924 • Stable COP on account of improvement in coal quality BALCO 270 MW 959 306 and lower auxiliary consumption MALCO 100 MW 643 6
Slide 19: Maturity Profile
Maturity Profile Diversified Funding Sources Term Debt Maturity Profile (in $bn) (as of 31 December 2013) (as of 31 December 2013) Total Subsidiaries Short Term 2.3 Loans – 11% Bonds- INR, 21 1.6 0.6 Convertible 0.6 1.0 Term Loans- Bonds-USD USD 30% 0.8 0.8 11% 0.4 1.7 0.1 1.0 0.4 0.5 0.1 0.7 Term L
Slide 20: Well-Invested Assets Driving Positive Cash Flow
Well-Invested Assets Driving Positive Cash Flow • Positive Free Cash Flow with production ramp-up $1.6 Capex and Free Cash Flows ($bn) bn free cash flow (post growth capex) in H1 O&G Capex¹ M&M Capex Free Cash Flow³ Free Cash Flow-H1³ • Actively managing and reviewing our capex requirements 4.0 • Ca
Slide 21: Entity wise Debt and Cash
Entity wise Debt and Cash Net Debt Summary ($ mn) 31 March 2013 (Proforma) 31 December 2013 Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Sesa Sterlite Standalone 6,830 494 6,336 6,617 592 6,025 Zinc India - 3,929 (3,929) - 3,689 (3,689) Zinc International - 197 (197) - 184 (184) Cairn Ind
Slide 22: Group Structure
Group Structure Vedanta Resources Plc Divisions of Sesa Sterlite 79.4% 58.3% Iron Ore (Sesa Goa) Konkola Copper Smelting (Tuticorin) Copper Sesa Sterlite Mines (KCM) Power (2,400 MW Jharsuguda) Aluminium (VAL aluminium and power assets) Subsidiaries of Sesa Sterlite 58.8% 64.9% 51% 100% 100%
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