VEDANTA RESOURCES PLC - marketscreener.com€¦presentation should not be relied upon as a...

VEDANTA RESOURCES PLCInterim Results Presentation for the half year ended 30 September 2013

15 NOVEMBER 2013

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.

2FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013

Chairman’s

Remarks

Anil Agarwal

Executive Chairman

Overview

Navin Agarwal

Deputy Executive

Chairman

H1 FY2014 Highlights

Corporate

� Sesa Sterlite merger completed

Financial

� EBITDA of $2.2bn, EBITDA margin 45%1

� Underlying Attributable Profit of $80mn2, Underlying EPS of $0.292

� Free Cash Flow of $1.0bn3 (47% of EBITDA), Free Cash Flow after Growth Capex of $417mn

� Net Debt reduced by c.$1.6bn over the last 18 months

� Interim Dividend of 22 US cents per share, up 5%

Operations

� Record oil & gas production

� Increased production of refined zinc, lead and silver at Zinc India

� Continued strong performance at Aluminium

� Managing cost performance despite industry-wide inflationary trends


Note: 1. Excludes custom smelting at Copper and Zinc-India operations

2. Based on profit for the half year after excluding special items and other gains and losses, and their resultant tax and minority interest effects

3. Free Cash Flow before Growth Capex

Sesa Sterlite Merger Completed

� Simplified structure, cross-

holdings eliminated

� On track to achieve announced

financial synergies

� Evaluating further operational

synergies

� Better aligns cash flows and debt

� Interest cost at Vedanta plc

reduced from c.$500mn to

c.$200mn p.a.


Konkola

Copper

Mines

VedantaResources

Sesa Sterlite

58.3%79.4%

HZL

Zinc

International

Zinc-Lead-Silver

India

Liberia

Iron OreOil & Gas

Tuticorin

CMT

Copper

BALCO

Vedanta

Aluminium

Aluminium

Jharsuguda

BALCO

MALCO

Talwandi Sabo

Power

Listed on LSE

Listed on NSE, BSE and NYSE

Cairn India

Tier-1 Asset Portfolio

FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013

PositioningR&R Life1

H1 FY2014Production Capacity2

Oil & GasIndia’s largest private-sector crude oil

producer

15 213kboepd225+

3

kboepd

Zinc IndiaLargest integrated zinc producer

25+ 459kt 1.2mtpa

Zinc Intl.One of the largest undeveloped zinc

deposits

20+ 196kt 400ktpa

SilverOne of the largest silver producers

25+ 6.0moz 16mozpa

Iron Ore4

Largest private sector exporter in India,

Large deposit in Liberia

20+ -5

16.8mtpa

Copper ZambiaWorld class resource potential

25+ 65kt 6

400ktpa

AluminiumStrategically located large-scale assets

with integrated power

395kt 2.3mtpa

Notes

1. Based on FY2013 production and R&R as at 31 March 2013; Iron ore is based on existing

capacity; Zinc International includes Gamsberg deposit in R&R

2. Includes announced expansions; Iron ore shown at existing EC capacity of 14.5mt in Goa and

2.3mt provisional capacity in Karnataka

3. Expected capacity for currently producing assets, subject to approvals

4. Numbers excluding Liberia

5. Iron Ore operations affected by mining restrictions in Karnataka and Goa

6. Integrated Production

Large, long-life, low-cost, scalable assets

7

Competitive Position on Cost Curve Quartiles

I II III IV

Zinc Intl.

Oil & Gas

ZincIndia

Cost

of

Produ

cti

on

Cumulative Production

Iron Ore

Aluminium

Copper Zambia

Size of circle denotes EBITDA

contribution

Positive Free Cash Flow post Growth Capex

0

500

1,000

1,500

2,000

2,500

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Zinc-Lead Silver Copper Aluminium

Power Iron Ore Oil & Gas

Production Growth (in Copper Equivalent kt)1

Well-Invested Assets


Notes: 1. All metal and power capacities rebased to copper equivalent production (defined as production x commodity price / copper price) using commodity prices for H1 FY2014. Copper custom

smelting capacities rebased at TC/RC for H1 FY2014.

2. Free cash flow after sustaining capex and before growth capex

0.0

1.0

2.0

3.0

4.0

5.0

FY09 FY10 FY11 FY12 FY13 H1 FY14

Free Cash Flow² - H1 Free Cash Flow² - H2

Growth Capex - H1 Growth Capex - H2

Strong Free Cash Flows($bn)

Generating Significant Free Cash Flows

Consistent Margins driven by Diversification(EBITDA by Segment in $mn)

Consistent and High Margins through the Cycle


Notes: 1. Excludes custom smelting at Copper and Zinc-India operations

Industry-leading Margins

0%

10%

20%

30%

40%

50%

60%

70%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 H1

FY14

Zinc Iron ore Copper

Aluminium Power Oil & Gas

EBITDA Margin %¹

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

VED¹ Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7

Cost Efficient Tier-1 Assets driving High Margins (EBITDA margin)

Source: Bloomberg

Peers are Anglo American, BHP Billiton, Freeport-McMoRan, Glencore Xstrata (Mining

business), Rio Tinto, Teck and Vale.

Opportunities and Challenges


Group Structure� Sesa Sterlite Merger: Completed

� Buyout of GoI’s stake in HZL and BALCO: Shareholder approval renewed

Zinc � Mining Expansion: 1.2mtpa by FY2017

Oil & Gas

� 225+ kboepd by FY2014

� GoI issued policy on Integrated Block Development

� Re-commenced exploration in Rajasthan

Iron Ore

� Karnataka: Await final clearance

� Goa: Supreme Court’s interim order permits sales of inventory

� Liberia: Phased approach, 1st phase of 2mtpa under review

Aluminium and

Power

� Power: Increase utilization of Jharsuguda 2,400MW; start-up Talwandi Sabo 1,980MW

� Bauxite: Pursuing multiple options for captive source

Copper� Tuticorin Smelter: Restarted with fast ramp-up to full capacity

� KCM: Operational turnaround required to realise potential of assets

�

�

�

�

Key Strategic Priorities


Long-Term Value Creation with a Focus on Sustainability

Production growth across portfolio with a focus on

returns

Continue to add R&R in our existing portfolio

of assets to drive long-term value

� Disciplined capital allocation: Low-risk and phased development

� Sustained operational excellence and cost efficiencies

� Active engagement with Governments

� Exploration programme to realise vision of 300kboepd at Rajasthan

� Continued focus to more than replace production

Reduce gearing from increasing free cash flow

� Production ramp-up from well-invested assets driving strong free cash flow

� Generate positive free cash flow from all businesses

� Utilise cash flows to de-lever

Consolidation and Simplification

of the Group structure

� Sesa Sterlite merger: Realize full synergies

� Buyout of GoI’s stake in HZL and BALCO

Financials

D.D. Jalan

Chief Financial Officer

Financial Highlights

� Consistent and strong EBITDA margin driven by diversified portfolio

� Underlying EPS lower due to lower EBITDA, higher finance cost, and profit mix

� Strong FCF after growth capex and continued reduction in net debt

� Refinanced $3.5bn of debt in H1 FY2014


$mn or as stated H1 FY2013¹ H1 FY2014 change

EBITDA 2,572 2,207 (14)%

EBITDA margin² (%) 47% 45%

Free Cash Flow before Growth Capex 1,438 1,046 (27)%

Growth Capex 954 630 (34)%

Free Cash Flow after Growth Capex 484 417 (14)%

Net Debt 9,835 8,463 (14)%

Gearing (%) 34% 33%

Net Debt/EBITDA (LTM) 2.0 1.9

Underlying Attributable PAT³ 267 80 (70)%

Underlying EPS (USc/share)³ 98 29 (70)%

Interim Dividend (USc/share) 21 22 5%

Notes: 1. The comparative information has been restated so as to reflect the adoption of new accounting standards

2. Excludes custom smelting at Copper and Zinc-India operations

3. Based on profit for the year after excluding special items and other gains and losses, and their resultant tax and minority interest effects

EBITDA Bridge

FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013 14

2,572

48 2,088106 13 2,207(225)

(140)

(134) (33)

EBITDAH1 FY2013

Prices Profit Petroleumto Govt of India

IronOre

SterliteCopper

Q1 Closure

FX incl. EBITDATranslation

& Others

Adjusted EBITDA

Volume CashCosts

EBITDAH1 FY2014

H1 FY2014 vs. H1 FY2013 ($mn)

$ (484) mn

$ 119 mn

Non-Controllable

Controllable

Group Simplification and INR Depreciation

� Sesa Sterlite Merger Completed

− Transfer of Cairn India stake and associated debt

of $6.0bn: Effective 26 August 2013

− Rest of the schemes effective for the full year

− Interest cost at Plc reduced from c.$500mn to

c.$200mn p.a.

− Financial synergies of $200mn p.a. expected for

the next few years

� Depreciation of the Indian Rupee

− Favourable impact on EBITDA

− Unfavourable one-time MTM impact on foreign

currency debt of Indian subsidiaries


$mn or as stated H1 FY2013 H1 FY2014

EBITDA 2,572 2,207

Depreciation & Amortization (1,132) (1,092)

EBIT 1,440 1,115

Net Interest Expense (236) (358)

Special Items, FX & Emb. Derivative MTM

(136) (495)

Profit Before Tax 1,068 261

Tax Expense (125) (18)

Effective Tax Rate(%) 11.7 6.8

PAT 943 243

Attributable PAT 174 (217)

Minorities % 82% 189%

Underlying PAT 1,070 710

Underlying Attributable PAT 267 80

Underlying Minorities % 75% 89%

Bonds-USD

29%

Bonds-INR

9%

Convertible

Bonds-USD13%

Term Loans-

INR10%

Term Loans-

USD32%

Short Term

Loans6%

Strengthened Financial Profile

� Successfully refinanced $3.5bn in H1, increased

average maturity of term debt to 4years¹

� Cash and Liquid Investments of $8.1bn, with

additional $0.9bn undrawn lines of credit

� Net Debt/EBITDA of 1.9x; Net Gearing ratio of 33%

� Sesa Sterlite merger better aligns cash flows and

debt


Notes: 1. Debt numbers shown at face value, excludes one-year rolling working capital facilities of $1,365mn (of which $1,279mn is due in FY 2014 and $86mn is due in FY 2015)

2. $810mn of the $883mn convertible at Vedanta plc due in FY2017 was put in March 2013 and was paid in April 2013. The balance $73mn is shown at the next put date of 30 March

2015. The $1,250mn convertible at Vedanta plc due in FY2017 (with a put option in July 2014) is shown at first put date.

Term Debt Maturity Profile

(as of 30 September 20131)

$0.5 bn– Refinancing tied up via syndicated bank Loan with average maturity of ~4yrs.

Diversified Funding Sources

(as of 30 September 2013)

0.5 0.1 0.7 1.00.5

4.2

1.30.3

1.6

1.00.9

1.4

2.1

0.8

3.0

1.6 1.9 1.9

6.3

FY2014² FY2015² FY2016 FY2017 FY2018 FY2019 and later

Debt at VED Plc Convertibles at put date Term Debt at Subsidiaries

Total Term Debt$15.6bn

Well-Invested Assets Driving Cash Flow Growth

� Continued growth in Free Cash Flow with production

ramp-up

− $0.4bn free cash flow (post growth capex) in H1

� Actively managing and reviewing our capex requirements

� Capex to be spent up to FY20163

− Oil & Gas: c.$2.7bn1

� 80% of capex on proven and high-margin

Rajasthan block

− Metals & Mining: c.$2bn

� $0.7bn for expansion at Zinc India

� Remaining $1.3bn on Talwandi Sabo, Aluminium

smelters and other ongoing projects


Cash Flow and Growth Capex Profile - $bn

Notes: M&M refers to Metals and Mining, O&G refers to Oil & Gas

1. Capex net to Cairn India; subject to Government of India approval

2. Free cash flow after sustaining capex but before growth capex

3. Flexible capex of a further 1.4bn (Lanjigarh Refinery, Tuticorin Smelter, and India Iron Ore Expansions): Awaiting regulatory approvals and subject to review

0.40.5

1.0

0.5

0.5

0.4

-

-

0.2

0.5

1.3

- -

0.8

- -

3.7

1.8

2.5

2.3

2.7

3.1

2.0

3.5

0.6

1.01.0

2.3

1.3

FY2010 FY2011 FY2012 PF FY2013 H1FY2014

H2FY2014

FY2015e FY2016e

Free Cash Flow-H1² Free Cash Flow-H2² M&M Capex O&G Capex¹

Positive Free Cash Flows post growth capex to drive Deleveraging

Business and

Operations

M.S. Mehta

Chief Executive Officer

3%

22%

12%

(11)%

(22)%

(8)%

(44)%

3%

(5)%

Oil & Gas

Zinc India - Mined Zinc-Lead

Zinc India - Integrated Saleable Silver

Zinc International

Copper Zambia - Integrated

Copper Australia

Copper India

Aluminium

Commercial Power

(3)%

3%

1%

(9)%

(7)%

Zinc India - Zinc

Zinc Intl

Copper Zambia

Aluminium

Commercial Power

Production Growth and Cost Performance


Notes: 1. Excludes Iron Ore

H1 FY2014 Unit Costs1 (% change vs. H1 FY2013)

H1 FY2014 Production1 (% change vs. H1 FY2013)

Increase in Profitable Production

% of H1 EBITDA

51%

25%

5%

5%

1%

2%

6%

6%

1.9

1.7

1.5

1.11.0

0.70.6

1.8

FY08 FY09 FY10 FY11 FY12 FY13 H1 FY14 Peer

Average

Sustainability – Integral to our Business

Responsible Stewardship

� Reduction in LTI’s, but 6 fatalities during H1

− LTIFR of 0.63 within FY2014 target of 0.70

− Focus on unsafe conditions elimination programme

� Structured projects for specific water and energy

consumption reduction

Building Strong Relationships

� Focus on stakeholder engagement

� Enhanced Human Rights focus

� Community relations: 250+ partnerships with NGOs, local

governments, academic institutions and private hospitals

Adding & Sharing Value

� Contribution to exchequer in H1: $2.5bn

� Community infrastructure development projects

� Community reach: 3.7mn people

Assurance

� 2nd year of Vedanta Sustainability Assurance Programme

(VSAP)

� Independent Review by URS Scott Wilson

− Final audit completed in Oct’13.


-67%

Source: Peer average of CY 2012 reported numbers for FTSE-100 metals and mining

companies who report LTIFR

Lost Time Injury Frequency Rate (LTIFR)

(per mn man hours)

Oil & Gas

� Cairn India recognized as the fastest growing energy

company in the world (Platts Top 250 Global Energy

Company Rankings 2013)

� Operational efficiency and cost optimization

− Low cost operator with field direct opex <US$3/bbl

− High facility uptime at 98.4%

− State-of-the-art technologies for field monetisation

� Partner approval / alignment in Rajasthan Block

− Approval secured for implementation of the world’s

largest polymer EOR project in Mangala Field

− Technical alignment in place for the Field

Development Plans of Barmer Hill, NI and NE

− GoI issued policy on Integrated Block Development

� Active Exploration

Rajasthan

− 4 of the 6 wells drilled found hydrocarbons

− Declaration of potential commerciality filed for 26th

Discovery

Other Blocks

− India: E&A progress at KG-ONN Onshore and Ravva

− Exploration progress in Sri Lanka and South Africa


Oil & Gas H1 FY2013 H1 FY2014

Average Daily Gross Operated Production (boepd)

207,105 212,873

Rajasthan 169,486 174,503

Ravva 30,591 28,704

Cambay 7,028 9,666

Average Daily Working Interest Production (boepd)

128,335 132,477

Rajasthan 118,641 122,152

Ravva 6,883 6,458

Cambay 2,811 3,866

Average Brent (US$/boe) 108.9 106.5

Average realizations – oil & gas(US$/boe)

98.0 94.3

EBITDA ($mn)

1,291 1,123

H1 FY2013 H1 FY2014

Oil & Gas: Rajasthan – A World Class Asset


Under Development

Future Development & Prospective Resource

2,2721,925

3,100

7,297

1,069

165530

1,764

MBARS¹ BH+19 Disc Exploration Total

Gross In Place Gross EUR

Resource Potential – 7.3bn boe in place

(in mmboe)

Rajasthan Block

� On-shore

� Low-cost & Scalable

� Primarily Oil

� Exploration Upside

� Close to Markets

15

128

175

200+

FY10 FY12 H1 FY14 Exit FY14

Increase in Ultimate Recovery through use of Advanced Technology - EOR Pilot Performance

Note: 1. Includes EOR potential

Production Growth -

Rajasthan Block

(kboepd)

Shakti NE

Shakti

N-C-West-A

Bhagyam

N-I North

N-I

Bhagyam South N-E

N-P

MangalaMangala BH

Aishwariya

VijayaVandana

Kaam-W-6

Kaam-W-3

Kaam-West-2 (Oil) Kaameshwari

Saraswati

Saraswati Crest

GS-V

Tukaram-P50

Raageshwari Oil RaageshwariDeep Gas

Raageshwari S-1

Guda-GRF

DA-1

DA-2

DA-3

Oil Discoveries (22)

Gas Discoveries (4)

Legend

Rajasthan Block - 26 discoveries to date

Oil & Gas – Regulatory Alignment and Outlook

Alignment with Government and Rajasthan JV Partner

on India’s Energy Security

� Increasing share of domestic production to reduce

imports

� Policy on Integrated Block Development Plan issued,

helps to fast-track hydrocarbon discoveries to production

� Submitted formal application for extension of Rajasthan

and Ravva licence terms as per existing PSC

� Contributed c.$2bn to the exchequer in H1 FY14

� Accounted for over 75% of the total Profit Petroleum

received by the Government


10%

20% 23%

27%

0%

10%

20%

30%

0

500

1000

1500

2000

FY 2010 FY 2011 FY 2012 FY 2013

Production (mmboe)

Net Import (mmboe)

Cairn India % of Domestic Production

Cairn India Outlook

On track for FY14 exit production target of over 225kboepd

� EOR and Infill wells to sustain production from existing

assets and enhance recoveries

� Barmer Hill and other satellite discoveries to fuel growth

� Evaluating options to increase commercial gas

Aggressive Exploration and Appraisal (E&A) Program in RJ

� Plan to drill out half of 530mmboe prospective resources

by FY14

� ~100 E&A wells to be drilled over the next 3 years

� Ramping up the rig count to 13 by end FY2014

Financial flexibility

� To fund ongoing 3 year $3bn capex program

� To support an optimal mix of organic and inorganic

opportunities

Notes: PSC: Production Sharing Contract; EOR: Enhanced Oil Recovery

India’s Oil Requirements & Cairn India’s Share of Production

Zinc

Zinc-India

� Improved operational efficiencies driving strong

volumes

− Ramp-up in mined metal volumes

− Operational efficiencies drove strong refined

volumes

� Maintained lowest quartile cost position

� FY 2014 expected volumes

− Mined metal: approx. 950 kt

− Refined Saleable Silver: 10.8 moz

� Expansion to 1.2mtpa mined zinc-lead underway

− Production from Kayad and Rampura Agucha

underground mine in FY2014

Zinc-International

� Stable operations in Q2

� FY2014 expected production of approx. 390kt


Zinc-India H1 FY2013 H1 FY2014

Mined Metal (kt) 377 459

Refined Zinc – Integrated (kt) 310 368

Refined Lead – Integrated (kt)1 53 60

Saleable Silver – Integrated (moz) 4.62 5.16

Average Zinc LME ($/t) 1,906 1,850

Zinc CoP2 ($/t) 832 810

Zinc-International H1 FY2013 H1 FY2014

Mined Metal – Lisheen & BMM (kt) 147 127

Refined Zinc – Skorpion (kt) 73 69

CoP ($/t) 1,090 1,122

Notes: 1. Includes captive consumption

2. Excluding royalty. Revenues from silver not credited to CoP.

EBITDA ($mn)

374 460

13599

135117

644 676

H1 FY2013 H1 FY2014

Zinc India (excl. Silver) Zinc India (Silver) Zinc International

Rampura Agucha Mine – Isometric View

� Total ore production sustained at c.6mtpa from a combination of open cast and underground

− Commercial production from underground project in FY14


Iron Ore

India

� Karnataka: Supreme Court cleared our mine to

resume operations

− Awaiting final clearance to resume mining

� Goa mining: Supreme Court hearings completed,

interim order passed

− Allowed to sell inventory as prescribed

− To review and decide by Feb 2014 regarding the

state’s iron ore output capacity

� Pig Iron production up 97% in H1, driven by new

capacities commissioned in Q2 FY2013

Liberia

� Drilling has confirmed 1 bn tonnes deposits with

further upside

� Reviewing phased options, including 1st phase of

2mtpa


Iron Ore and Pig Iron H1 FY2013 H1 FY2014

Sales (mt) 3.1 -

Goa 3.0 -

Karnataka 0.1 -

Production 3.7 -

Average Net Sales Realizations ($/t) 70 -

Pig iron - Production (kt) 121 238

Met coke – Production (kt) 146 173

.

EBITDA ($mn)

117

(18)

H1 FY2013 H1 FY2014

Copper-India/Australia

� Smelter restarted in end June

− Ramped up to full capacity in Q2

� Stable mining operations at Australia

� Net COP higher due to lower sulphuric acid credits

� Strong outlook for TC/RC

� EBITDA contribution from 80 MW CPP: $12 mn


EBITDA ($mn)

Copper-India/Australia H1 FY2013 H1 FY2014

Mined Metal – Australia (kt) 13 12

Copper Cathodes– India (kt) 175 98

Tuticorin Power Plant (mu) - 295

Average Copper LME ($/t) 7,785 7,110

Copper Tc/Rc 11.8 14.6

Conversion cost – India (c/lb) 6.3 13.8

.

33 15

75

62

108

77

H1 FY2013 H1 FY2014

Copper Australia Copper India

Copper-Zambia

� Integrated production volumes

− Chingola Open Pits F&D remain suspended since

Jan 2013

− Excluding COP-F&D, integrated production up by

7kt

− Expect 140kt integrated production in FY2014

� EBITDA lower on account of lower LME and lower

production volumes

� Cost of production (C1) flat despite lower production

− Absence of high-cost COP-F&D production

− Cost control initiatives taking effect

− Q2 CoP at $2.32/lb

− H2 FY2014 CoP at $2.20/lb

� Turnaround required to optimise operations and

realize the potential of these assets


Copper-Zambia H1 FY2013 H1 FY2014

Mined Metal (kt) 86 70

Finished Metal – Total (kt) 110 94

Integrated (kt) 83 65

Custom Smelting (kt) 27 29

Copper LME ($/t) 7,785 7,110

COP – Integrated1 ($/lb) 2.26 2.28

Notes: 1. Excludes Royalty

EBITDA ($mn)

185

101

H1 FY2013 H1 FY2014

Aluminium

� Strong operating performance: Jharsuguda-I and BALCO

smelters operated above rated capacity

� Sustained 2nd quartile costs, without captive bauxite

− Q2 costs at $1,651/t

� Alumina Refinery recommenced operations in July

− Ramp-up to full capacity in Q3 FY2014

� Premiums of $355/t

− c.60% of production converted to value added

products

� Pursuing multiple options for allocation of captive bauxite

with Odisha Government

� Projects

− BALCO 325kt smelter - First metal in Q3 FY2014

− BALCO 1200 MW power plant – Synchronisation in

Q4 FY2014

− BALCO 211mt coal block mining in Q1 FY2015¹

− Jharsuguda-II 1.25 mt smelter: Evaluating

commissioning of one line of 312.5kt


Aluminium and Alumina H1 FY2013 H1 FY2014

Aluminium Production (kt) 382 395

BALCO 123 124

Jharsuguda-I 259 271

Aluminium LME ($/t) 1,947 1,807

Aluminium COP ($/t) 1,873 1,702

BALCO 1871 1,844

Jharsuguda-I 1,874 1,637

Alumina Production (kt) 423 116

Alumina COP ($/t) 340 329

Notes: 1. Subject to approvals

EBITDA ($mn)

75

108

26

17101

125

H1 FY2013 H1 FY2014

Vedanta Aluminium and Power BALCO

Power

� Jharsuguda 2,400 MW : H1 PLF of 43%

− Q2 PLF of 31%, primarily on account of lower

demand due to good monsoon and weak balance

sheets of Discoms, despite power shortage

− H2 PLF expected at 50% as demand improves

� 1st 660 MW unit of 1,980 MW Talwandi Sabo on

track for synchronisation in Q3 FY2014


Power H1 FY2013 H1 FY2014

Total Sales (mu) 5,364 5,087

Jharsuguda 2,400 MW 1 3,879 4,098

BALCO 270 MW 684 231

MALCO 431 445

HZL WPP 370 313

Realisation (Rs/u) 3.6 3.7

Cost of generation (Rs/u) 2.3 2.3

Realisation (USc/u) 6.6 6.2

Cost of generation (USc/u) 4.2 3.9

Notes: 1. Includes trial run generation of 339 million units in H1 FY2013

Source: Morgan Stanley analysis, World Energy Council – “World Energy Perspective 2013”, Bloomberg New Energy Finance, IIFL Institutional Securities

Notes: Cost of Generation as reported for Vedanta. For peers, this includes fuel cost, O&M, depreciation, interest and return on equity at 15.5% at an exchange rate of INR61.84 as on 6-Nov-13.

EBITDA ($mn)

127

123

H1 FY2013 H1 FY2014

39

37

49

70

Vedanta

IndiaCaptive Coal

IndiaLinkage Coal

IndiaImported Coal

Comparative Cost of Generation(US$/MWh)

Summary


Long-Term Value Creation with a Focus on Sustainability

Production growth across portfolio with a focus on

returns

Continue to add R&R in our existing portfolio

of assets to drive long-term value

� Disciplined capital allocation: Low-risk and phased development

� Sustained operational excellence and cost efficiencies

� Active engagement with Governments

� Exploration programme to realise vision of 300kboepd at Rajasthan

� Continued focus to more than replace production

Reduce gearing from increasing free cash flow

� Production ramp-up from well-invested assets driving strong free cash flow

� Generate positive free cash flow from all businesses

� Utilise cash flows to de-lever

Consolidation and Simplification

of the Group structure

� Sesa Sterlite merger: Realize full synergies

� Buyout of GoI’s stake in HZL and BALCO

Appendix

Entity Wise Financials


H1 FY2014 ($mn or as stated)VED

Consol KCM Plc Cos SSLT

standalone Cairn India HZL ZI BALCO CMT MALCO TS TSMHL Others¹ Elim

Group Revenue 6,164 687 - 1,906 1,472 1,093 352 293 84 43 - 380 (146)

EBITDA 2,207 101 (1) 226 1,123 581 117 22 15 13 (0) 1 9

Depreciation (647) (86) (0) (138) (287) (62) (47) (19) (5) (2) - 0 1

Amortisation (445) - - (0) (399) (6) (37) (0) - - - - (3)

Special Items (62) (4) 1 - - (10) (47) - - - - (77) 77

Investment Revenue 303 0 189 181 102 145 2 1 0 3 - 82 58 (463)

Finance Cost (661) (24) (295) (310) (6) (2) (0) (8) (0) (0) - (203) (4) 193

Other Gains/ (Losses) (433) - 1 (265) (90) 0 0 (39) 1 - (41) (2) 0

Profit Before Taxation 261 (13) (105) (306) 442 646 (13) (43) 12 14 (41) (122) (24) (186)

Current Tax (137) (0) - 266 (205) (133) (23) - (3) (3) - (2) (34)

Deferred Tax 119 0 - 77 2 45 19 11 (0) 0 - (1) (34)

Profit after tax 243 (13) (105) 37 239 558 (17) (32) 8 12 (41) (122) (27) (254)

Attributable to equity holders (217) (10) (105) (59) 125 210 (13) (9) 5 11 (24) (105) (17) (226)

Underlying PAT 710 (10) (106) 302 330 565 19 (5) 7 12 (0) (122) 51 (331)

Underlying Attributable PAT 80 (8) (106) 135 171 213 8 (2) 4 11 0 (105) 30 (271)

Property Plant and Equipment² 15,597 2,143 1 6,501 1,725 1,654 375 1,709 25 24 1,420 - 20 -

Mining Reserve 5,055 947 3,858 52 176 22

Exploratory Assets 10,088 158 9,791 139

33

Notes: 1. Includes Fujairah Gold, VGCB, and other Sesa Sterlite Investment companies

2. Includes Capital Work in Progress

Proforma Entity Wise Financials


H1 FY2014 ($mn or as stated)VED

Consol KCM Plc Cos Elim SSLT

Consol SSTL

standalone Cairn India HZL ZI BALCO CMT MALCO TS TSMHL Others¹ Elim

Group Revenue 6,164 687 - - 5,477 1,906 1,472 1,093 352 293 84 43 - 380 (146)

EBITDA 2,207 101 (1) - 2,106 226 1,123 581 117 22 15 13 (0) 1 9

Depreciation (647) (86) (0) 1 (561) (138) (287) (62) (47) (19) (5) (2) - 0 -

Amortisation (445) - - (3) (442) (0) (399) (6) (37) (0) - - - -

Special Items (62) (4) 1 (0) (58) - - (10) (47) - - - - (77) 77

Investment Revenue 303 0 189 (197) 310 181 102 145 2 1 0 3 - 82 58 (266)

Finance Cost (661) (24) (295) 161 (504) (310) (6) (2) (0) (8) (0) (0) - (203) (4) 32

Other Gains/ (Losses) (433) - 1 - (434) (265) (90) 0 0 (39) 1 - (41) (2)

Profit Before Taxation 261 (13) (105) (38) 417 (306) 442 646 (13) (43) 12 14 (41) (122) (24) (148)

Current Tax (137) (0) - (34) (103) 266 (205) (133) (23) - (3) (3) - (2)

Deferred Tax 119 0 - (34) 154 77 2 45 19 11 (0) 0 - (1)

Profit after tax 243 (13) (105) (106) 467 37 239 558 (17) (32) 8 12 (41) (122) (27) (148)

Attributable to equity holders (145) (10) (105) (106) 76 21 82 211 (13) (9) 5 7 (24) (71) (17) (116)

Underlying PAT 710 (10) (106) (106) 933 302 330 565 19 (5) 7 12 (0) (122) 51 (225)

Underlying Attributable PAT 97 (8) (106) (106) 317 176 113 214 8 (2) 4 7 (0) (71) 29 (161)

Property Plant and Equipment² 15,597 2,143 1 - 13,453 6,501 1,725 1,654 375 1,709 25 24 1,420 - 20 -

Mining Reserve 5,055 5,055 947 3,858 52 176 22

Exploratory Assets 10,088 10,088 158 9,791 139

34

Notes: 1. Includes Fujairah Gold, VGCB, and other Sesa Sterlite Investment companies

2. Includes Capital Work in Progress

Proforma for Sesa Sterlite Merger and Group Simplification

Entity-Wise Cash and Debt


Debt numbers at Book Values, as of 30 September 2013

Notes: 1. Includes Investment Companies

2. Twin Star Mauritius Holdings Limited (SPV holding the 38.7% stake in Cairn India with associated debt of $6.0bn). Since the table above shows external debt, it does not include the

$3.89bn inter-company receivable at Vedanta plc from TSMHL.

3. Others include: CMT, VGCB, Fujairah Gold, and SIIL investment companies

4. Includes $8 million debt related derivative asset

5. Includes $5 million debt related derivative liability

6. Includes $8 million debt related derivative asset

Net Debt Summary ($mn)

30 Sep 2012 31 Mar 2013 30 Sep 2013

Company Debt Cash & LI1 Net Debt Debt Cash & LI1 Net Debt Debt Cash & LI1 Net Debt

Vedanta plc1 6,506 43 6,463 6,424 91 6,334 8,090 85 8,005

KCM 769 4 765 761 10 751 743 32 711

Sesa Sterlite Standalone 5,336 673 4,663 5,263 515 4,748 5,116 598 4,518

Zinc International - 208 (208) - 197 (197) - 188 (188)

Zinc India - 3,698 (3,698) 0 4,045 (4,045) 0 3,886 (3,886)

Cairn India 119 2,499 (2,381) - 3,102 (3,102) - 3,299 (3,299)

Balco 692 - 692 687 0 687 633 14 619

Talwandi Sabo 714 3 711 706 1 705 723 2 721

TSMHL2 2,753 - 2,753 2,638 10 2,628 1,188 15 1,173

Others3 118 35 83 113 10 103 113 16 97

Sesa Sterlite Consolidated 9,731 7,116 2,615 9,407 7,881 1,526 7,773 8,018 (245)

(Total (in $mn) 17,006 7,163 9,8354 16,593 7,982 8,6165 16,605 8,135 8,4636

8,616

172

630

277 8,463

(1,219)

(13)

Opening Net Debt(1 Apr 2013)

Cash Flow from Operations¹

Sustaining Capex Project Capex Shareholder and Minority Dividends

Others Closing Net Debt(30 Sep 2013)

Net Debt Reconciliation


H1 FY2014 ($mn)

36

Notes: 1. Excludes sustaining capex

Impact of Sesa Sterlite Merger on pro-forma basis

Group Simplification to Reduce Debt at plc

� Post group structure simplification, debt service liability at plc

reduces to c.$4.4bn

� Debt service cost at plc reduces from c.$500mn to c.$200mn in

FY2014

� Payout-based dividend policies at subsidiaries to result in

significantly higher dividends to plc


Debt Service Liability³

($mn or as stated)

H1 FY2014Actual

H1 FY2014Proforma

EBITDA 2,207 2,207

Underlying Attributable PAT¹ 80 97

Underlying EPS($/share)¹ 0.29 0.36

Free Cash Flow after Growth Capex 1,046 1,046

Interest cost at plc² 230 c.100

Notes: 1. Based on profit for the year after excluding special items and other gains and losses, and their resultant tax and minority interest effects

2. Interest paid on external debt net of interest income on inter-company receivable. Interest excludes accretive interest on convertible bonds and amortisation of borrowing costs

3. Debt numbers at Face Values, as of 30 September 2013

SESA STERLITE

Sesa SterliteDebt Service

Liability ($ mn)

Gross External Debt 7,924

Intercompany Payable to Vedanta 3,894

Debt Service Liability 11,818

Vedanta Resources plc

Debt ServiceLiability ($ mn)

Annual InterestCost ($ mn)

Gross External Debt 8,332 c. 500

Effect of Intercompany Receivable at Plc from Sesa Sterlite

(3,894) c. (300)

Debt Service Liability 4,438 c. 200

Inter-company Debt ($ mn)

Intercompany Receivable from Sesa Sterlite due to Cairn acquisition

4,810

Intercompany Payable to Sesa Sterlite(advanced by Zinc Intl and CMT)

(916)

Net Receivable to Vedanta 3,894

Project Capex


Capex in Progress Completion Time

Capex

(US$mn)

Spent H1

2013-14

Spent up to

Sept. 2013

Unspent

as at 30.9.13

Cairn India 3,673 223 808 2,866

Total Capex Oil & Gas 3,673 223 808 2,866

Copper Sector

160 MW CPP at Tuticorin 80MW commissioned, next 80MW awaiting approval 161 6 157 4

KCM KDMP Project (7.5 mtpa) Completed 973 19 908 65

Aluminium Sector

BALCO - Korba 325 ktpa Smelter 1st Metal tapping by Q3 FY 2013-14 772 43 752 20

BALCO - Korba 1200 MW CPP 1st unit synchronisation in Q4 FY 2013-14 1,100 26 912 188

BALCO – 211 mt Coal Block Mining from Q1 FY 2014-15 150 1 14 136

Jharsuguda 1.25 mtpa smelter Line wise completion 2,920 4 2,483 437

Power Sector

Jharsuguda 2400 MW power plant Completed 1,769 5 1,736 33

Talwandi 1980 MW IPP 1st unit synchronisation in Q3 FY 2013-14 2,150 155 1,750 400

Zinc Sector

Zinc India (Mines Expansion) Phasewise Completion 1,500 90 282 1,218

Total Capex in Progress 11,495 348 8,994 2,501

Project Capex


Improvement and Enabling Capex Completion Time

Capex

(US$mn)

Spent H1

2013-14

Spent up to

Sept. 2013

Unspent

as at 30.9.13

Zinc India 240 24 184 56

ZI – Gamsberg 24 9 17 7

Western Cluster- Liberia 97 21 87 10

Total Improvement and Enabling Capex 361 54 289 72

Capex in Optionality Completion Time

Capex

(US$mn)

Spent H1

2013-14

Spent up to

Sept. 2013

Unspent

as at 30.9.13

Copper Sector

Tuticorin Smelter 400 ktpa EC awaited 367 5 128 239

Aluminium Sector

Lanjigarh Debottlenecking 1.0 mtpa Approval pending, on hold 150 - 77 73

Lanjigarh Refinery (Phase II) 3.0 mtpa Approval pending 1,570 - 808 762

Iron Ore

Sesa Iron Ore mine Expansion (36 mtpa) On hold 500 - 155 345

Total Capex with Optionality 2,587 5 1,168 1,419

Total Capex (Excluding Cairn) 14,443 407 10,451 3,992

Total Capex (Including Cairn) 18,117 630 11,259 6,858

Credit Metrics


FY2013 LTM H1 FY2014 Covenant

Net Debt/EBITDA 1.8x 1.9x < 2.75x

EBITDA/Net Interest Expense1 8.4x 7.8x > 4.0x

Tangible Net Worth ($bn) 4.3 3.8 > 3.0

Net Assets/Debt 2.38x 2.3x > 1.75x

Gearing2 31% 33%

40

Notes: 1. Interest includes Capitalized Interest

2. Gearing is calculated as Net Debt divided by the sum of Net Debt and Equity

Currency and Commodity Sensitivities


Commodity prices – Impact of a 10% increase in Commodity Prices

Commodity

H1 FY2014

Average price

H1 FY2014

EBITDA ($mn)

Oil ($/bbl) 106 135

Zinc ($/t) 1,850 91

Aluminium ($/t) 1,807 48

Copper ($/t) 7,110 56

Lead ($/t) 2,076 17

Silver ($/oz) 22.2 13

Foreign Currency - Impact of a 10% depreciation in FX Rate

Currency

H1 FY2014

Average FX rate

H1 FY2014

EBITDA ($mn)

INR/USD 59.1138 67

Sales Summary


Sales volume H1 FY2013 H1 FY2014

Zinc-India Sales

Refined Zinc (kt) 322 368

Refined Lead (kt) 55 61

Zinc Concentrate (DMT) - -

Lead Concentrate (DMT) - -

Total Zinc (Refined+Conc) kt 322 368

Total Lead (Refined+Conc) kt 55 61

Total Zinc-Lead (kt) 377 429

Silver (moz) 5.0 5.9

Zinc-International Sales

Refined Zinc (kt) 70 68

Zinc Concentrate (MIC) 110 91

Total Zinc (Refined+Conc) 180 159

Lead Concentrate (MIC) 37 33

Total Zinc-Lead (kt) 216 192

Aluminium Sales

Sales - Wire rods (kt) 147 148

Sales - Rolled products (kt) 28 25

Sales - Busbar and Billets (kt) 36 57

Total Value added products (kt) 211 229

Sales - Ingots (kt) 167 159

Sales - Total (kt) 377 388

Sales volume H1 FY2013 H1 FY2014

Iron-Ore Sales

Goa (mn DMT) 3.0 -

Karnataka (mn DMT) 0.1 -

Total (mn DMT) 3.1 -

MetCoke (kt) 133 198

Pig Iron (kt) 117 258

Copper-India Sales

Copper Cathodes (kt) 91 48

Copper Rods (kt) 80 49

Sulphuric Acid (kt) 328 189

Phosphoric Acid (kt) 82 41

Copper-Zambia Sales

Copper Cathodes (kt) 107 94

Power Sales (mu)

Jharsuguda 2,400 MW 3,879 4,098

BALCO 270 MW 684 231

Others 801 758

Total sales 5,364 5,087

Power Realisations (USc/mu)

Jharsuguda 2,400 MW 6.3 5.9

BALCO 270 MW 5.5 6.2

Others 8.8 8.3

Average Realisations 6.6 6.2

Power Costs (USc/mu)

Jharsuguda 2,400 MW 4.1 3.8

BALCO 270 MW 4.8 4.9

Others 4.1 4.0

Average costs 4.2 3.9

42

Group Structure


Konkola Copper

Mines (KCM)

58.3%

Vedanta Resources

100%64.9%

Zinc India (HZL)

AustralianCopper Mines

Sesa Sterlite

Cairn India

58.8%

79.4%

Subsidiaries of Sesa Sterlite

� Iron Ore (Sesa Goa)

� Copper Smelting (Tuticorin)

� Power (2,400 MW Jharsuguda)

� Aluminium & Power assets (VAL)

Divisions of Sesa Sterlite

Option to increase stake

to 94.4%

Unlisted entitiesListed entities

Talwandi Sabo Power (1,980 MW)

100%

MALCO Power

(100 MW)

100%

Skorpion & Lisheen -

100%BMM -74%

100%

Zinc International

51%

Bharat Aluminium (BALCO)

Option to increase stake

to 100%

100%

Western Cluster

(Liberia)

43

Note: Shareholding based on basic shares outstanding as on 30 September 2013

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