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Vedanta Resources Plc
Corporate Presentation
September 2015
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 forward
looking information in this presentation including, without limitation, any tables, charts and/or graphs, has been prepared on the basis
of a number of assumptions which may prove to be incorrect. This presentation should not be relied upon as a recommendation or
forecast by Vedanta Resources plc ("Vedanta"). Past performance of Vedanta cannot be relied upon as a guide to future performance.
This presentation contains 'forward-looking statements' – that is, statements related to future, not past, events. In this context, forward-
looking statements often address our expected future business and financial performance, and often contain words such as 'expects,'
'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' or 'will.' Forward–looking statements by their nature address matters that are, to
different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal
Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from
numerous other matters of national, regional and global scale, including those of a environmental, climatic, natural, political,
economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different
that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to
purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Vedanta or any of its subsidiary undertakings
or any other invitation or inducement to engage in investment activities, nor shall this presentation (or any part of it) nor the fact of its
distribution form the basis of, or be relied on in connection with, any contract or investment decision.
2VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
Management Team
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
Management team
Tarun JainDirector,
Vedanta Ltd
DD JalanChief Financial
Officer
Dilip GolaniGroup Director,
Management
Assurance and
Information
Technology
M SiddiqiGroup Director,
Projects
Roma BalwaniPresident, Group
Sustainability ,
CSR and
Communications
Rajesh
PadmanabhanPresident and
Group Chief
Human Resources
Officer
Executive Directors
Anil
AgarwalGroup Chairman
Navin
AgarwalExecutive Vice
Chairman
Tom
AlbaneseChief Executive
Officer
Mukesh BhavnaniGroup Legal Counsel
and Chief
Compliance Officer
Akhilesh JoshiPresident,
Global Zinc
Business
R Kishore
KumarChief Executive
Officer,
Iron Ore Business
Steven DinChief Executive
Officer and
Director, Konkola
Copper Mines
Abhijit PatiChief Executive
Officer,
Aluminium
Business
Mayank AsharManaging Director
and Chief
Executive Officer,
Cairn India Ltd
3
Sunil DuggalChief Executive
Officer,
Hindustan Zinc Ltd
Our History
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
1979
Sterlite Cables Ltd. acquires ShamsherSterling Corporation and becomes SterliteIndustries Ltd.
1986
SterliteIndustries Ltd. holds an initial public offering
1988
Sterlite Industries Ltd. commissions first privately developed copper smelter in India
1997
Sterlite Industries Ltd. acquires Copper Mines of Tasmania and Thalanga Copper Mines
1999
SterliteIndustries Ltd. acquires a 51% stake in BALCO
2001
Sterlite Industries Ltd. acquires a 26% stake in Hindustan Zinc Ltd. and a further 20% interest through an open market offer
2002
Vedanta Resources becomes the first Indian company to be listed on the London Stock Exchange
2003
Vedanta Resources acquires a 51% stake in KonkolaCopper Mines in Zambia
2004
Vedanta Resources acquires a 51% controlling stake in Sesa Goa Ltd.
2007
Vedanta Resources acquires Anglo American’s portfolio of zinc assets
2010
Vedanta Resources acquires a 58.5% controlling stake in Cairn India
2011
Merger of SterliteIndustries Ltd. and Sesa Goa to create Sesa Sterlite Ltd.
2013
Anil Agarwal acquires ShamsherSterling Corporation
2015
Sesa Sterlite Ltd. changed its name to Vedanta Ltd.
Vedanta Resources Plc announced the merger of its subsidiaries Vedanta Ltd and Cairn India Ltd.
4
Strategic Framework
5
Core Purpose Strategy PrioritiesGreater Value for
Shareholders
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
Vedanta is a global diversified natural resources company with low cost operations, a world class portfolio of assets and a
premium listing on the London Stock Exchange
• To deliver growth, long-term
value and sustainable
development through a
diversified portfolio of large,
long-life, low-cost assets.
• Production growth and
operational excellence, with
a focus on returns
• Reduce gearing and improve
free cash flow
• Continue to add reserves and
resources in existing
portfolio of assets to drive
long-term value
• Simplify Group structure
through consolidation
• Protect and preserve our
licence to operate
• To be a world-class,
diversified resources
company, providing superior
returns to shareholders with
high-quality assets, low-cost
operations and sustainable
development.
Group Structure
Konkola
Copper
Mines (KCM)
Vedanta
Resources Plc
Zinc India
(HZL)
Australian
Copper Mines
Vedanta Ltd
Cairn India
Sesa Goa Iron Ore
Sterlite Copper
Power
Aluminium
Divisions of Vedanta Ltd
Talwandi
Sabo
Power
(1,980 MW)
MALCO
Power
(100 MW)
Skorpion &
Lisheen -100%
BMM -74%
Bharat
Aluminium
(BALCO)
Western Cluster
(Liberia)
Note: Shareholding based on basic shares outstanding as of 30 June 2015.
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION 6
79.4% 62.9%
51% 100%64.9%59.9%
option to increase
stake to 94.4%
Subsidiaries of Vedanta Ltd
100% 100% 100%100%
option to increase
stake to 100%
On 14 June 2015, Vedanta Resources plc announced a merger between Vedanta Limited and Cairn India Limited as part of the Group’s structure simplification process. This above structure reflects group structure before the merger. The merger is expected to close in the first quarter of 2016 and post the merger Vedanta Resources plc will own a 50.1% stake in Vedanta Limited. For further details on this please refer to our website www.vedantaresources.com
Global Footprint
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
23. Lisheen mine, Ireland
24. Mt Lyell mine, Australia
23
25. Iron Ore project, Liberia
26. Konkola and Nchanga copper mines & Nchanga smelter, Zambia
27. Konkola and Nchanga copper mines & Nchanga smelter, Zambia
28. Skorpion mine, Namibia
29. Black Mountain mine, South Africa
30. South Africa Block 1
25
27
28
30
24
7
61%10%
9%
5%
9%
2%1% 3%
Revenue by Geography, FY 2015
India
China
Middle East
Europe
Far East others
Africa
Asia others
Others
10 10
11
19
17
13
1313
12
14
14
6
15
15
5
1
43
2
20
20
8
9
7
21
18
16
22Zinc-Lead-Sliver
Oil & Gas
Iron Ore
Copper
Aluminium
Power
Projects under
development/commissioning
Captive thermal power plant
1. Debari smelter
2. Chanderiya smelters
3. Rampura Agucha mine
4. Rajpura Dariba mine & smelters
and Sindesar Khurd mine
5. Zawar mine
6. Talwandi Sabo power project
7. Silvassa refinery
8. Iron ore operations – Goa
9. Iron ore operations – Karnataka
10. Tuticorin smelter
11. MALCO power plant
12. Lanjigarh alumina refinery
13. Jharsuguda smelters & power plants
14. Korba smelters & power plants
15. Rajasthan block
16. Ravva (PKGM-1) block
17. KG-ONN-2003/1 block
18. KG-OSN-2009/3 block
19. PR-OSN-2004/1 block
20. Cambay (CB/052) block
21. MB-DWN-2009/1 block
22. SL 2007-01-001 block
26
29
Diversified and Low-cost Asset Portfolio
Competitive Position on Global Cost Curve
39%
37%
11%
4%
7%1%
Oil & Gas
Zinc
Aluminium
Power
Copper
Iron Ore
Diversified mix of business – share of EBITDA in FY2015
8VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
I II III IV
Zinc
Intl.Oil & Gas
Zinc
India
Aluminium
Jharsuguda
Size of circle denotes
EBITDA contribution
Iron Ore Aluminium
BALCO
Copper Zambia
Oil & Gas
Well Invested Assets Driving Near-Term Growth
0
500
1,000
1,500
2,000
2,500
3,000
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12PF² FY13 FY14 FY15 Near
Term
Cop
per
E
qu
ivale
nt
Pro
du
ctio
n (
kt)
Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas
Total Production (copper equivalent kt)
Notes:
1. All commodity and power capacities rebased to copper equivalent capacity (defined as production x commodity price / copper price) using average commodity prices for FY2015. Power rebased using FY2015 realisations, copper custom smelting capacities
rebased at TC/RC for FY2015, iron ore volumes refers to sales with prices rebased at average 56/58% FOB prices for FY2015
2. PF refers to proforma for Cairn India acquisition
+66%
Near Term
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION 9
Ramp up of world-class aluminium smelters at Korba
and Jharsuguda; record full year aluminium and
alumina production
Record zinc and lead production at Zinc India
Record production at Copper India and improving
production at Copper Zambia
Positive free cash flow at the oil & gas business in a
falling crude environment
Iron ore mining at Karnataka resumed in February 2015
and mining at Goa to recommence post monsoons
Operational
Corporate
Refreshed brand and logo signifying commitment to
the triple bottom line approach of people, planet and
prosperity
Announced merger of Cairn India with Vedanta
Limited to simplify the Group structure
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION 10
FY2015 Highlights
FY2015 Highlights (contd.)
Strong underlying results from diversified portfolio in a volatile commodity price environment
Revenue of US$12.9 billion and EBITDA of US$3.7
billion
Adjusted EBITDA margin of 38%
Underlying EPS of (14.2) US cents (FY2014: 14.7
US cents)
Free cash flow (after growth capex) of US$1.0 billion
(FY2014 US$1.3 billion)
Gross debt of US$16.7 billion in FY 2015 (FY2014:
US$16.9 billion)
Full year dividend of 63 US cents per share, up 3%
from 2014
Tax payments of US$4.6 billion made to exchequers
in FY2015
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
Financial
11
Focus on Safety – Key to Operational Excellence
82,000Employees worldwide
756,643Hours of safety training
delivered to employees and
contractors in the past year
0.46Lost time injury frequency rate,
down 14.8% from 0.54 in
2013/14
8Fatalities – down by 69% since
2011 with a lot remaining to be
done
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION 12
Making a Positive Contribution
4mBeneficiaries in FY 2015
$42m invested in community development
in FY 2015
Sustainability Highlights
Held first Sustainable Development Day in July
Signed the pledge for access to safe Water, Sanitation and Hygiene (WASH) in the
workplace
88% of Vedanta sites are now certified to the ISO 14001 environmental standard
Turning waste into business opportunities – fly ash at Lanjigarh and smelter waste at
Tuticorin
4,600 village meetings during the year
Helped 15,000 women in India to set up small-scale businesses
Provided 4,000 young people with technical training or work placements
Continuing to contribute towards the Millennium Development Goals
Released first Tax Transparency Report (TTR) based on EITI guidelines
VEDANTA RESOURCES PLC – CORPORATE PRESENTATION 13
The Way Forward – Creating a Zero Harm Organisation
Diversity
• 25% female representation
at Vedanta Board level by
2015
• 15% female hires at fresher
and lateral level
Health & Safety
• Zero fatalities
• Further reduce LTIFR in
line with ICMM guidelines
• Implement safety
performance standards
Environment
• Water savings – 2.39 MCM
• Energy savings – 0.88
MCM
• Increase use of fly ash
• Promote Centre of
Excellence
Training and development
• Intensify training
programme
Global governance
standards
• Pursue membership of
ICMM
Human rights
• Close all gaps related to UN
convention on human rights
14VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
Future Focus – Strategic Priorities
Production Growth
across the portfolio with a focus on returns
Reduce gearing
from increasing free cash flows
Continue to add R&R
in our existing portfolio of assets to drive long-term value
Simplify the Group structure
complete Vedanta Ltd - Cairn India merger
Protect and preserve our License to Operate
achieve zero harm culture
Deliver positive free cash flow in a volatile commodity environment
15VEDANTA RESOURCES PLC – CORPORATE PRESENTATION
Contacts
UK Office India Office
Vedanta Resources Plc - Head Office
16 Berkeley Street
London, W1J 8DZ
United Kingdom
Phone: +44 020 7499 5900
Vedanta Resources Plc - Mumbai
Vedanta House 75 Nehru Road, Vile Parle East
Mumbai, Maharashtra, 400099
India
Phone: +91 22 6646 1000
Group Communications
Roma Balwani
President – Sustainability, CSR and Communications
Tel: +91 22 6646 1000
Investor Relations
Ashwin Bajaj
Director – Investor Relations
Tel: +91 22 6646 1531