Vedanta Resources plc FY 2015 Results · FY 2015 Results 14 May 2015. ... Any forward looking information in this presentation including, without limitation, any tables, charts and/or

Vedanta Resources plc

FY 2015 Results14 May 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.

1VEDANTA RESOURCES PLC – FY2015 RESULTS PRESENTATION

Overview

Anil Agarwal

Executive Chairman

Strategic Review

Tom Albanese

Chief Executive Officer

Focus on Safety – Key to Operational Excellence

� Fatal accidents and injury rates have declined

� Implementing programs to eliminate fatalities and

control injuries:

− Leadership focused on a Zero-Harm culture

across the organization

− Consistent application of ‘Life-Saving’

performance standards

− Quantitative risk assessments for all the critical

areas

− Formal identification of process safety risks and

focusing on the management of controls

− Improved safety investigations and follow-up

− Building internal capacity to deliver and drive

our programs

− Review of safety incidents at Board, Business

and Operational levels


2220 19

8

FY2012 FY2013 FY2014 FY2015

Fatal incidents

0.83

0.55 0.540.46

FY2012 FY2013 FY2014 FY2015

LTIFR (per million man-hours worked)

Sanquelim Reclaimed Iron Ore Mine, Goa

Making a positive contribution in FY2015

Environment

� Significant investments ($ 50+ mn over last 3 years)

� Signed WBCSD Pledge for access to safe Water,

Sanitation and Hygiene (WASH)

Preserving and protecting our license to operate

� Integrated approach: Sustainable Development and CSR

� Benefitting around 4 million people through community

development programmes

� Multiple talent development platforms for employees


Communities : Social Investment

$42 million

Contribution to India’s Oil Production

27%

Payment to Government Exchequers

$4.6 billion1

Direct and Indirect Employment

82,000

Notes:1. Tax transparency report to be issued

FY2015 Results Highlights

Operations

� Zinc-India: Record full year mined metal production;

underground transition better positioned

� Aluminium & Alumina: Record full year production; new

smelters started

� Copper India: Record full year production

� Copper Zambia: Lower production; KDMP Shaft # 1 back on

line in Q4

� Iron Ore: Commenced production at Karnataka; approvals at

Goa awaited, export duty reduced to 10%

� Oil & Gas: Production normalised post shutdown in Q2

Financial

� Strong underlying results from diversified portfolio in a

volatile commodity price environment

� EBITDA of $3.7 bn, adjusted EBITDA margin 38%2

� Underlying Attributable Profit of $(39)mn3, underlying EPS of

USc (14.2)3

� Free cash flow post capex of $1 bn

� Gross debt reduced by $200 mn during the year; Gross and

Net debt reduced by $600 mn in H2 FY2015

� Non-cash Impairment charge of $4.5 bn (net of tax),

primarily at Oil & Gas due to lower oil price outlook

� Final Dividend of 40 US cents per share, up 3%


1. Mysteel Iron Ore index price for 56% Fe FoB India2. Excludes custom smelting at Copper and Zinc-India operations3. Based on profit for the period after excluding special items and other gains and losses,

and their resultant tax and minority interest effects

Corporate

� Cairn Tax Matter: Multiple legal options being pursued

� Royalties reduction announced at Copper-Zambia

Commodity prices and EBITDA Margins

FY2015 Q4 FY2015

$/ tonne unless otherwise indicated

Commodityprices

Margin(%)

Commodityprices

Margin (%)

Oil & Gas ($/bbl) 85 62% 54 28%

Zinc India 2,177 51% 2,080 47%

Zinc Intl 31% 24%

Aluminium 1,890 20% 1,800 19%

Power 23% 2%

Iron Ore/Pig Iron1 52 10% 40 (5)%

Copper Zambia 6,558 (0.4)% 5,818 (8)%

Group Adjusted2 38% 23%

Production Growth and Asset optimisationOperating at full capacity

Strengthening the Balance SheetReduce Gearing; maximise free cash flows

Identify next generation of ResourcesContinue to add R&R

Simplification of the Group structure

Protect and preserve our License to Operate

Building Momentum on Delivering our Strategic Priorities


Strategic Priority What we Achieved Focus Areas

� Achieved record annual production in alumina, aluminium, Copper - India , and Zinc - India

� Started idle Aluminium smelting capacity� Restarted Iron Ore operations in Karnataka

� Achieved synergies from Sesa Sterlite merger� Realised synergies of $50 mn in operating costs &

procurement in FY 2015

� Zinc India: Gross addition of 1.1 mn tonnes MIC to R&R

� Oil and gas: Gross 2P reserve addition of 16 mn boe� Gamsberg 250 kt project approved and commenced

� Gross debt reduced by $200 mn in FY2015 and $600 mn in H2 FY2015

� Optimising capex and opex across businesses

� Decline in fatal accidents and LTIFR� Achieved water and energy saving targets� Around 4 mn beneficiaries of our

community initiatives

Achieve full capacity across businesses� Al & Power: Ramp-up pots; secure domestic bauxite and coal;

commence production from Chotia coal block� Zn-India: Ramp-up of RAM U/G and SK mine � O&G: Ramp-up EOR at Mangala; increase gas production� KCM: Deliver operational turnaround� Iron Ore: Commence operations at Goa

� Pursue further simplification� Realise $1.3 bn of procurement and marketing savings

� Optimize oil exploration activities; while preserving growth options

� Leverage expertise of central mining exploration group� Identifying next generation of resources at Barmer Hill and

satellite fields� Phased development of Gamsberg

� Maintain positive FCF despite current market volatility� Reduce net gearing in the medium term� Efficiently refinance upcoming maturities

� Achieve zero harm� Implement biodiversity management plans at all sites� Obtain local consent prior to accessing resources

…Delivering Margins and Progressive Dividends

Resilient Portfolio in Volatile Commodity Environment


Diversified Portfolio with Low Cost Assets… EBITDA Mix for FY2015

39%

37%

11%

4%

7% 1%

Oil & Gas

Zinc

Aluminium

Power

Copper

Iron Ore

Competitive Position on Global Cost Curve

I II III IV

Zinc Intl.

Oil & Gas62%

ZincIndia51%

Aluminium20%

31%

Size of circle denotes EBITDA contribution and

% denotes EBITDA margin in FY2015

Copper Zambia(0.4)%

EBITDA Margins Dividends

0

300

600

900

1,200

1,500

1,800

0

10

20

30

40

50

60

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12PF

FY13

FY14

FY15

Adjusted EBITDA Margin % ¹ (LHS) LMEX ²

Brent ² Copper Equiv. Production- kt (RHS)

Note: 1. Excludes custom smelting at Copper and Zinc-India operations.2. LMEX and Brent rebased3. In FY2004, a single dividend of 5.5 USc per share was paid, for the four months since listing, equivalent to an annual payment of 16.5 USc per Share

0

10

20

30

40

50

60

70

FY04³ FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Usc/

sh

are

Well-Invested Assets Driving Production Growth

9

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

Co

pp

er Eq

uiv

ale

nt

Pro

du

cti

on

(kt)

Zinc-Lead Silver Copper Aluminium Power Iron Ore Oil & Gas

VEDANTA RESOURCES PLC – FY2015 RESULTS PRESENTATION

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

India: Strong Growth Forecast

Building growth momentum

� Pick up in investments and lower oil prices

� Continuing reforms: Insurance, Coal and MMDR bills

passed

� Lower inflation providing headroom for interest rate cuts

Government priorities and targets

� Make in India: Import substitution and employment

generation

� Housing for all by 2022: 60 million houses in urban and

rural areas

� Smart cities: USD1.2 trillion investment on building

urban infrastructure over next 20 years to improve

quality of life

� Power for all by 2019: focus on energy efficiency, smart

grids, coal and gas availability and renewable energy

� Digital India: transform India into a digitally empowered

society and knowledge economy

� Construction of 30 km highway per day, development of

high speed rail and waterways


6.6%

10.4% 10.1%

Zinc Aluminium Copper

India: Fastest Growing Major Economy in 20151

India’s Metal Consumption Growth Rate FY20152

Notes:

1. IMF World Economic Outlook Database, April 2015

2. Includes secondary and value added consumption from all sources

7.2 7.5 7.57.46.8 6.3

0.6

(3.8)

(1.1)

0.1

(1.0)

1.0

2014 2015 2016

India China Russia Brazil

Regulatory Developments


� Participating in a national review to increase gas production

� Development approvals received for Raageshwari Deep Gas ProjectOil and Gas

Aluminium & Power

Iron Ore

Zinc India

Zambia

� VAT refund procedure for exports eased, on a going-forward basis� Government announced intention to reduce royalties

� First stage of coal block auctions concluded

� MMDR Act 2015 approved by parliament, to pave way for resource auctions

� CTO received for BALCO 1,200 MW power plant

� Resumed mining at Karnataka

� Mining leases renewed at Goa; allocated interim capacity of 5.5 mtpa saleable ore

� Export duty reduced from 30% to 10% (<58% Fe)

� Mining leases renewed under the new MMDR Act, at least til 2030

─ Royalty issues under the new MMDR Act

Copper- Zambia

India

Zambia

Financial Review

D.D. Jalan

Chief Financial Officer

Financial Highlights

� Strong EBITDA margins from our diversified portfolio in a volatile commodity environment

� Gross and Net debt reduced by c.$600 mn in H2 and Gross debt reduced by c.$200 mn in full year

� Non-cash Impairment charge of $4.5 bn (net of tax), primarily at Oil & Gas

� Committed to progressive dividend policy, full year dividend up 3%

VEDANTA RESOURCES PLC – FY2015 RESULTS PRESENTATION 13

$mn or as stated FY2014¹ FY2015 Change

EBITDA 4,491 3,741 (17)%

Adjusted EBITDA margin² (%) 45% 38%

Free Cash Flow before Growth Capex 2,695 2,578 (4)%

Growth Capex 1,425 1,531 7%

Free Cash Flow after Growth Capex 1,270 1,047 (18)%

Gross Debt 16,871 16,668 (1)%

Net Debt 7,920 8,460 7%

Gearing (%) 30.6% 40.8%

Gearing – pre-impairment (%) 30.6% 33.5%

Net Debt/EBITDA 1.8 2.3

Underlying Attributable PAT3 40 (39)

Underlying EPS (USc/share)3 14.7 (14.2)

Total Dividend (USc/share) 61 63 3%

Notes:

1. Previous period figures have been regrouped / rearranged wherever necessary to conform to current period presentation.

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

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

4,491

147

87

4,275

3,741

(121)

(190)

(301)(43)

EBITDAFY2014

LME/Oil/Commodity

prices

Premuims/TcRc/ Brent Disc

Currency ProfitPetroleum to

GoI

AdjustedEBITDA

Volume COP Others EBITDAFY2015

EBITDA Bridge

FY2015 vs. FY2014 ($mn)


c.$200mn due to regulatory

changes (additional levies as

per new MMDR Act; royalty

increases; coal cess etc.)

Non Controllable$(216) mn

Controllable $(534) mn

Income Statement

Depreciation

� Lower depreciation rate: Useful life of metal & mining

assets increased with effect from 1 October 2014

Amortisation

� Lower due to lower production at Oil & Gas and Zinc Intl.

Interest Expense

� Refinanced debt at lower cost, debt repayments

Investment Revenue

� Higher MTM gains due to declining interest rates in India

Special items

� Non-cash impairment charge, primarily at

oil & gas assets: $4.5 bn net of tax ($6.7 bn pre-tax)

� Other than impairment, special items of $50mn

Tax Expense

� FY 2014 included one-time reversal due to group

consolidation and simplification completed in Aug 2013


$mn or as stated FY2014 FY2015

EBITDA 4,491 3,741

Depreciation (1,411) (1,255)

Amortisation (793) (751)

EBIT 2,288 1,735

Interest Expense (1,440) (1,387)

Investment Revenues 688 833

Special Items, FX & Emb. Derivative MTM

(418) (6,821)

Profit Before Tax 1,118 (5,640)

(Tax Expense)/ Tax Credit (129) 1,853

Effective Tax Rate1 13% 32%

PAT 989 (3,788)

Attributable PAT (196) (1,799)

Minorities %1 111% 110%

Underlying PAT 1,370 821

Underlying Attributable PAT 40 (39)

Underlying Minorities %2 97% 105%

1. Excluding Special Items

2. Excluding special items, FX and embedded derivatives

Also refer to Detailed Consolidated Income statement in the financials which shows the income statement with and without special items

Non-Cash Impairment Charge

� Total impairment charge of $4.5 bn net of tax ($6.7 bn pre-tax)

� Oil and Gas

− Non-cash impairment charge taken, following carrying value test in light of steep decline in crude oil

price

− Present value of long term future cash flows based on oil price of $60/bbl in FY2016, increasing to

$84/bbl in FY2020, and an annual escalation of 2.5% p.a. thereafter

− Impairment of Sri Lanka assets of c.$800 mn, due to commercial non-viability

� Konkola Copper Mines, Zambia

− $52 mn impairment of part of Nchanga underground assets on account of maturity of assets and fall

in copper prices

� No impact on company’s financial covenants or its funding position


Strong Financial Profile

� Credit rating of BB-/Ba31

� Cash and Liquid Investments of $8.5bn, additional $1.2bn undrawn

committed lines of credit

� Debt profile: c.50% fixed, 50% floating rate; c.70% USD-

denominated, 30% INR-denominated

� Vedanta Plc Debt maturities

− FY2016: Refinancing in place

− FY2017: Refinancing to be tied up in H2 CY2015

17

Term Debt Maturity Profile (as of 31 March 20152)

Notes:

1. Issue Credit rating of BB-(Negative) by S&P and Ba3(Negative) by Moody’s.

2. Debt numbers shown at face value, excludes one-year rolling working capital facilities of $732mn due in FY 2016.

0.4

2.01.0

2.6

0.3

1.5

2.1

1.3

1.7

1.7

0.7

0.8

2.4

3.3

2.7

4.3

1.0

2.3

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 and later

Debt at VED Plc Term Debt at Subsidiaries


25%

11%

7%

14%

35%

7%

Bonds - USD

Bonds - INR

Convertible Bonds - USD

Term Loan - INR

Term Loan - USD

Short Term Loans

Diversified Funding Sources for Term Debt (as of 31 March 2015)

0.61.1 1.2

0.5

0.3

0.2

0.5

0.3

0.50.3

0.3

0.2

1.4

2.7

1.5

2.6

2.0

1.0

FY2014 FY2015 FY2016eoriginal

Oil & Gas Capex¹ Zinc Capex M&M Capex² Free Cash Flow³

� Free cash flow post growth capex of $1bn in a volatile commodity price environment

� Prioritising capital to high-return, low-risk projects, to maximise cash flows

− Oil & Gas

� FY2016 capex revised from $1.2bn to $0.5bn

� Retain the flexibility to invest further $ 1.4bn as oil prices improve

− Gamsberg Project Rephased

� FY2016 capex revised from $250mn to $80mn

FY2016 capex reduced from $2bn to $1bn

Optimising Capex to drive Cash Flow Generation


Notes:

1. Capex net to Cairn India; subject to Government of India approval; O&G refers to Oil & Gas

2. M&M refers to Metals and Mining and Power, excludes Zinc; excludes capex on Lanjigarh refinery expansion and Tuticorin smelter

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

Cash Flow and Growth Capex Profile - $bn

FY2016eRevised

FY2014 FY2015

Financial Priorities


Focused on

shareholder returns

and progressive

dividends

Cost SavingsDeleveraging &

Reduction in

Borrowing Cost

Disciplined Capital

Allocation:

Optimising capex,

focus on FCF

Group Structure

Simplification

$

Business Review

Tom Albanese

Chief Executive Officer

Oil & Gas

FY2015 Results

� Gross Average Production: 211,671 boepd

− MBA field stable; Aishwariya field crosses the 30,000 boepd

mark for the first time

− Cambay production up 8% yoy

− Ravva production up 31% yoy in Q4; crosses 30,000 barrels of

oil mark after 3.5 years

� Added Gross 2P reserves of 16 mn boe in FY2015

� Net capex of ~$1.1 bn - 60% Development; 40% Exploration

RJ Exploration

� Executed largest Exploration & Appraisal program till date; 34 E&A

wells drilled

RJ projects

� 1st polymer injected at Mangala in Q3

� Mangala-ASP Pilot successfully completed in Q4

� MPT Facility upgraded to 800 kbfpd in Q3

� Raag Deep Gas Field Development Plan for 100 mmscfd approved,

planning and contracting underway

Barmer Hill

� Large Resource Base: HIIP >2bn; 10-15% recovery factor

� FY15 exit production of 5,000 bopd from Barmer Hill & Satellite

Fields

Outlook

� FY16 production expected to remain stable at FY2015 level

� Potential growth options at Barmer Hill leveraging technology and

existing MPT infrastructure


MPT: Facility modifications

MPT: Facility modifications

Gas: Commissioning of compressor fansPhase 1:BH-M&A+SFs

Phase 2: BH-DP&NL+SFs

Phase 0: Appraisal PhaseBH-M&A+SFs

Barmer Hill + Satellite Fields Production Potential

(kboepd)

Barmer Hill vs. US Shale

Parameter Unit US Shale Barmer Hill

Porosity % 4-16 15-30

Permeability md 0.001-0.3 0.1-5

Viscosity cP 0.1-0.3 5

HIIP Bn Bbls Large >2

Depth Metres 1,500-3,000 600-1,100

Pay Thickness Metres 15-600 150-300

IP Rate- Horizontal well Bbl/day 900-2,000 700-1,000*

Drilling & Completion Cost/well $ Mn 5-9 5-7*

*IP rates and D&C cost/well in Appraisal Phase at Mangala & Aishwariya Barmer Hill fields

Phase 3: BH-V&V+ SFs

30,000

Rampura Agucha Mine Isometric

Zinc India

FY2015 Results

� Record full year mined metal production of 887 kt

− Refined metal lower at 734 kt due to lower mined metal in H1, as per plan

� Lower silver production due to lower grades at Sindesar Khurd (SK) mine

� Maintained lowest quartile cost position; Q4 CoP lower at $865/t

� Exploration: Gross addition of 1.1 mn tonnes MIC to R&R

Outlook

� FY 2016 mined and refined volumes expected to be higher than FY2015; though Q1 will be lower than average due to mine plan

� Silver production expected at 350 to 400 tonnes due to better grades at SK mine

� COP expected to be stable

MMDR Amendment Act 2015 passed

� Renewal of all leases till at least 2030

� Additional levy of up to 100% of current royalty; potential impact on mining of low grade and deep ore bodies

Projects

� SK mine expansion to 3.75mtpa progressing ahead of schedule

� RAM U/G main shaft sunk to 650m out of 950m; currently producing from decline

� Preparatory work started at RAM open pit to extend mine life to FY2020


Shaft Access

South Ventilation

Shaft

NorthVentilation

Shaft

MainHoistingShaft

Main Decline

Open PitExtension shell

Underground resource:

As Built development

Open PitTo Feb 2015

High Lead Content Deposit

RA UG14 OB

Skorpion LoM Extension

Zinc International

FY2015 Results

� Lower Production at 312 kt

− Lower Lisheen production; expected to end production in

mid FY 2016

− Unplanned disruptions at Skorpion in Jan; now normalised

� Q4 FY2015 COP higher at $1,500/t

Outlook

� FY2016 volume expected at c.220-230kt

� COP expected to remain at current levels of

c. $1450-$1500/t as mines go deeper

Projects

� 250kt Gamsberg Project: Capex re-phased

− First ore production maintained in FY2018

− Breaking ground by end Q2

− Ramp-up in line with capital re-phasing

� Skorpion mine life extension from FY2017 to FY2019

− Deepening of current open pit to access additional

resources

− Mine production will end in FY 2019, and oxide ore

processing will continue till FY 2020 from stockpiles


Production Break-up

67 59

172 150

125102

364312

FY2014 FY2015

BMM Lisheen Skorpion

Currentpitshell

New LOM pushback pit

Original LOM push back pit

Copper - Zambia

FY2015 Results and Initiatives

� Integrated production lower at 117 kt due to shaft

remediation at Konkola, low equipment availability and falling

grades at Nchanga

� Focus on ramping up production at Konkola

− Konkola: Large, long-life, high-grade Copper mine

− Shaft no.1 resumed partial hoisting in March 2015

− Remediation work at Shaft 4 to finish in Q3 FY2016

− Equipment availability steadily improved from 50% to

70% in Q4

� Production at Nchanga dropping due to falling grades and

rising costs; open pit reserves approaching depletion

� At TLP treatment of CRO in addition to LOB ore started to

maximize capacity utilization

Regulatory Update

� Easing of VAT refund procedure will drive higher custom

production and greater smelter efficiencies

� Engaged with the Government on past VAT refunds

� Government has announced intention to reduce royalty rates


Notes:

Top right chart: Data set only includes producing mines. Production for Escondida,

Olympic Dam, Antamina and Konkola is as of 2014 March year end.

1. Konkola has Cu grade of 2.80%; Kamoto has Cu grade of 4.70%

2 . Escondida, Collahuasi and Olympic Dam have contained Cu R&R of 101.2mt, 79.8mt and 77.4mt respectively

Top 20 copper mines by contained copper (mt)

Konkola Production Ramp up (kt)

407

11 60

FY 2015 Pivot initiative Equipment FY 2016e

• Shaft remediation

• Waste management

• 950 level debottlenecking

• Remote control units

• Mobile Fleet workshops

• Maintenance improvement

• 70% + availability

Copper – Zambia (contd.)

Cost Reduction Initiatives to drive turnaround

� Rigorous cost saving initiatives being implemented:

reduction of power usage, fuel and chemicals

consumption, and repair & maintenance costs

� Dedicated team working on identified initiatives

� Realized $8mn savings in Q4 FY2015


Outlook

� FY2016 total production expected to be 190-210 kt

with integrated production of 120-130 kt at C1

cost of $2.25/lb

� Production expected to ramp up after first quarter

Notes:C1 cash cost excludes royalty, logistics, depreciation, interest and sustaining capex1. Annualised2. Spend base rebased with Q2 FY2015 as 100

Declining trend of absolute and C1 cash costs Volumes

100 9584

306

267

221

Q2 FY2015 Q3 FY2015 Q4 FY2015

Average spend base² C1 cash cost (US c/lb)

46 40 43

2724 21

5652 49

5352 66

181168

179

190-210

FY2014 FY2015 Q4 FY2015¹ FY 2016

Konkola Nchanga TLP Custom

Integrated120-130kt

Custom70-80kt

Aluminium Costs and Margins (in $/t, for FY2015)

Aluminium

FY2015 Results

� Record production of c.1mt at alumina refinery

� Record Aluminium production, new Jharsuguda-II and Korba-II smelters started up

� CoP higher at $1,755/t¹ due to higher alumina and coal e-auction prices− Coal supplies improving with higher e-auction volumes in Q4

� Ingot premiums softening; focus on value added products

� Raw material linkages: − Laterite mines and Chotia coal block to commence production

in FY2016.− Increased bauxite production at BALCO− MMDR Act to facilitate auctions of bauxite deposits

Outlook

� BALCO-II: additional pots expected to ramp up from May, full smelter to ramp up over the year

� Jharsuguda-II: additional pots expected to ramp up from June, with each line of 312kt taking c. 6 months for ramp up; plan to start 2 lines sequentially

� FY 2016 production: +1 mn tonnes

� FY 2016 COP: $1,650-1,700/tonne

� Balco 1,200 MW (4x300 MW) power plant:− Unit I – Commercial: Trial runs commenced; to be

commissioned in Q1 − Unit II- Captive: Commissioning in Q1


245

500

325

1,250 2,320

BALCO 245kt

(Operating)

J'guda 500kt

(Operating)

BALCO 325kt

Project

J'guda 1.25mt

Project

Total Aluminium

Capacity

Roadmap to 2.3mtpa Aluminium Capacity(in ktpa)

1st phase: 84 pots commissioned; Further pots to

gradually ramp up in FY16

50+pots started and under trial

runs

Operating smelters Capacity under commissioning Capacity to be commissioned

Notes:1. Including CoP of Balco-II smelter; excluding this CoP is $1,718/t

1,890

37985 2,355

480(672)

(373) (48) (44) (11)

LME Ingot

Premium

Value

Addition

Total

Realisation

Alumina

Cost

Power Cost Other Hot

Metal

Costs

Ingot

Conversion

Costs

Value

Addition -

ConversionCosts

Others EBITDA

Value added production increased to 51%

Captive bauxite can significantly reduce this

92& capex spent

86% capex spent

Other Assets – Power, Iron Ore and Copper - India


Karnataka:

� Recommenced mining @ 2.3 mtpa in Feb

2015

Goa

� MOEF reinstated Environment clearances

for state in March

� Received allocation of interim capacity of

c.5.5mtpa of saleable ore; mining

expected to commence post monsoons

� Export duty on low grade ore reduced

from 30% to 10%

� Cost optimisation initiatives underway

� Pig Iron EBITDA margin of $70/t

Jharsuguda 2,400MW:

� 39% PLF during the year due to low

demand

� To commence supplying power to 1.25mt

Aluminium smelter in June; will drive

higher PLF in FY2016

TSPL:

� Unit I capitalised in December

� Units II and III expected to start in H1

FY2016

� EBITDA margin of Rs. 1/unit in the near

term

Appointed Power CEO to leverage

synergies across 9 GW power portfolio

Tuticorin Smelter:

� Record production; 91% capacity

utilisation

� 90%+ utilisation going forward

� 29% higher TcRc at 21.4c/lb

− CY15 global TcRc settled higher;

expected FY2016 realisations of over

24c/lb

� 160 MW power plant operated at 86%PLF

Power Iron Ore Copper India

Production Growth and Asset optimisationOperating at full capacity

Strengthening the Balance SheetReduce Gearing; maximise free cash flows

Identify next generation of ResourcesContinue to add R&R

Simplification of the Group structure

Protect and preserve our License to Operate

Focused on maximizing free cash flows, progressive dividend and deleveraging

Strategic Priorities


Appendix

Segment Wise Summary


Oil & Gas FY2014 FY2015

Average Daily Gross Operated

Production (boepd) 218,651 211,671

Rajasthan 181,530 175,144

Ravva 27,386 25,989

Cambay 9,735 10,538

Average Daily Working Interest

Production (boepd) 137,127 132,663

Rajasthan 127,071 122,601

Ravva 6,162 5,847

Cambay 3,894 4,215

Average Brent (US$/bbl) 107.6 85.4

Average realizations Oil & gas (US$/boe) 94.5 76.0

EBITDA ($mn) 2,347 1,477

Zinc-India FY2014 FY2015

Mined Metal (kt) 880 887

Refined Zinc – Integrated (kt) 743 721

Refined Lead – Integrated (kt)1 105 111

Saleable Silver – Integrated (moz) 9.774 8.552

Average Zinc LME ($/t) 1,909 2,177

Zinc CoP2 ($/t) 817 868

EBITDA ($mn) 1,145 1,193

1. Excludes captive consumption2. Excluding royalty. Revenues from silver not credited to CoP. With IFRIC adjustment. Without IFRIC

adjustment, the COP was $837/t in FY2014 and $870/t in FY2015

Zinc-International FY2014 FY2015

Mined Metal – Lisheen & BMM (kt) 239 209

Refined Zinc – Skorpion (kt) 125 102

Total Zinc-Lead Metal 364 312

CoP ($/t) 1,167 1,393

EBITDA ($mn) 213 181

Segment Wise Summary contd.


Copper-India/Australia FY2014 FY2015

Mined Metal – Australia (kt) 18 -

Copper Cathodes– India (kt) 294 362

Tuticorin Power Plant (mu) 601 641

Average Copper LME ($/t) 7,103 6,558

Copper Tc/Rc 16.6 21.4

Conversion cost – India (c/lb) 9.7 4.2


Copper-Zambia FY 2014 FY 2015

Mined Metal (kt) 72 65

Finished Metal – Total (kt) 177 169

Integrated (kt) 124 117

Custom Smelting (kt) 53 52

Copper LME ($/t) 7,103 6,558

C1 Cash Cost – Integrated1 (USc/lb) 238 258

Total Cash Cost– Integrated2 (USc/lb) 334 329

EBITDA ($mn) 156 (4)

PAT ($mn)3 (90) (191)

1. C1 cash cost, excludes royalty, logistics, depreciation, interest, sustaining capex2. Total Cash Cost includes C1 cash cost, royalty, interest and sustaining capex3. Includes special items of $61mn in FY2015 and $51mn in FY2014

Aluminium FY2014 FY2015

Aluminium Production (kt) 794 877

Jharsuguda-I 542 534

Jharsuguda-II - 19

Korba-I 245kt 251 253

Korba-II 325kt 1 71

Aluminium LME ($/t) 1,773 1,890

Aluminium COP ($/t)1 1,658 1,755

BALCO 1,781 1,961

Jharsuguda-I 1,602 1,630

Alumina Production (kt) 524 977

Alumina COP ($/t) 358 356


1. 1.Including CoP of new Balco-II smelter; excluding this smelter CoP is $1,718/t

Segment Wise Summary contd.


Iron Ore and Pig Iron FY2014 FY2015

Sales (mt) 0.0 1.2

Goa - -

Karnataka 0.0 1.2

Production 1.5 0.6

Goa - -

Karnataka 1.5 0.6

Average Net Sales Realizations ($/t) 32.0 28.0

Pig iron - Production (kt) 510 611

Met coke – Production (kt) 408 500

EBITDA ($mn) (24) 31

Power FY2014 FY2015

Power Sales (mu) 9,374 9,859

Jharsuguda 2,400MW 7,625 7,206

BALCO 270MW 390 89

BALCO 600MW - 10

MALCO 911 897

Talwandi Sabo - 1,213

HZL Wind Power 448 444

Power Realisation 1(Rs/u) 3.54 3.25

Power Cost of generation (Rs/u) 2.23 2.14


1. Excluding Talwandi Sabo

Entity Wise Financials

($mn or as stated)VED Plc Consol KCM Plc Cos Elim

VED Ltd Consol

VED Ltd stand-alone

Cairn India HZL ZI BALCO CMT MALCO TS TSMHL Others¹ Elim

Group Revenue 12,879 1,077 - (174) 11,976 5,290 2,397 2,386 587 784 1 87 81 - 1,021 (659)

EBITDA 3,741 (4) (1) - 3,745 795 1,477 1,220 181 60 (34) 25 22 (0) 2 (3)

Depreciation (1,254) (187) (0) 2 (1,069) (220) (573) (126) (86) (33) (11) (2) (8) - (11) 0

Amortisation (751) (1) - 0 (751) (7) (698) (13) (25) (4) - - 0 - (4) -

Special Items (6,744) (61) 0 - (6,684) (33) (6,642) (0) - (5) - - - - (4) -

Operating Profit (5,009) (252) (1) 2 (4,759) 535 (6,436) 1,081 70 18 (45) 24 14 (0) (16) (3)

Investment Revenue 833 0 338 (375) 869 367 295 461 8 3 0 1 - 141 167 (575)

Finance Cost (1,387) (67) (547) 264 (1,038) (657) (15) (4) (7) (23) (2) (33) (14) (326) (39) 83

Other Gains/ (Losses) (77) - 2 0 (79) (31) (21) 0 - (5) - 0 (20) - (1) -

Profit Before Taxation (5,640) (318) (207) (108) (5,006) 213 (6,177) 1,538 71 (7) (47) (8) (20) (185) 111 (495)

Current Tax (571) (1) (0) (46) (524) (9) (164) (325) (19) - 0 - - - (7) -

Deferred Tax 2,423 128 - (1) 2,297 (5) 2,148 147 5 8 (4) 0 - - (3) (0)

Profit after tax (3,788) (191) (207) (155) (3,233) 199 (4,193) 1,361 56 2 (51) (8) (20) (185) 101 (495)

Attributable to equity holders (1,798) (152) (207) (155) (1,284) 124 (1,584) 547 34 1 (32) (6) (12) (114) 64 (307)

Underlying PAT 821 (183) (209) (155) 1,369 246 332 1,361 56 8 (51) (8) 0 (185) 104 (495)

Underlying Attributable PAT (39) (146) (209) (155) 471 153 125 547 34 3 (32) (6) 0 (114) 67 (307)

Property Plant and Equipment² 15,411 1,899 0 - 13,512 6,156 1,726 1,872 220 1,822 13 23 1,673 - 7 -

Mining Reserve 2,372 - - - 2,372 715 1,207 61 98 16 - - - - 275 -

Exploratory Assets 5,569 - - - 5,569 32 5,173 - 139 - - - - - 225 -

33

Notes:

1. Includes Fujairah Gold, GEPL, Sesa Resources Ltd, SMCL, VGCB, WCL, and other Vedanta Ltd Investment companies.

2. Includes Capital Work in Progress.

FY2015


Entity Wise Cash and Debt

34

Notes:

Debt numbers at Book Values, as of 31 March 2015. Since the table above shows only external debt, it does not include the following:

- $2.6bn inter-company receivable at Vedanta plc from TSMHL. There was an accrued interest of $16mn on the inter-company receivable, as of 31 March 2015.

- $1.25bn two-year intercompany facility from Cairn India Limited to a wholly owned overseas subsidiary of Vedanta Ltd. in Q1 FY2015, which was fully disbursed during H1 at arm’s length terms and conditions

with an annual interest rate of LIBOR+300bps. The wholly owned overseas subsidiary has used the proceeds of $1.25bn to pay $450mn accrued interest and $800mn of the principal of the separate

intercompany debt extended from VED plc to SSLT.

- $235mn receivable at plc from KCM

1. Includes Investment Companies.

2. Twin Star Mauritius Holdings Limited (SPV holding the 39.4% stake in Cairn India as on 31 March 2015).

3. Others include: CMT, Fujairah Gold, MEL, Sesa Resources Ltd, VGCB, and Vedanta Ltd. Investment companies.

4. Includes $14mn debt related derivative asset

5. Includes $8mn debt related derivative asset

6. Includes $2mn debt related derivative liability.

Net Debt Summary ($mn)

31 March 2014 30 Sept 2014 31 March 2015

Company Debt Cash & LI Net Debt Debt Cash & LI Net Debt Debt Cash & LI Net Debt

Vedanta plc1 8,323 16 8,307 7,532 59 7,473 7,707 34 7,673

KCM 733 10 723 813 0 813 802 65 738

Vedanta Ltd. Standalone 5,011 427 4,585 5,407 519 4,889 4,574 135 4,439

Zinc International - 169 (169) - 189 (189) - 137 (137)

Zinc India - 4,345 (4,345) - 4,478 (4,478) - 4,937 (4,937)

Cairn India - 3,912 (3,912) - 2,732 (2,732) - 2,857 (2,857)

BALCO 679 0 679 739 5 734 767 0 766

Talwandi Sabo 835 4 831 940 2 939 1,037 24 1,013

TSMHL2 1,190 8 1,181 1,680 166 1,514 1,679 9 1,670

Others3 100 47 53 123 23 100 102 12 90

Vedanta Ltd. Consolidated 7,815 8,912 (1,097) 8,889 8,112 777 8,159 8,111 48

Total (in $mn) 16,871 8,938 7,9204 17,234 8,171 9,0555 16,668 8,210 8,4606


Inter-company Debt

During FY2015

� Cairn India lent $1.25bn to a

wholly owned overseas

subsidiary of Vedanta Ltd

� Vedanta Ltd paid $0.8bn

towards principal payable to

Vedanta plc, and $0.45bn

towards related accrued

interest

35

Vedanta Ltd.(excluding Cairn India) 31 March 2014 31 March 2015

AnnualizedInterest Cost

Gross External Debt 7,919 8,202 c.650

Intercompany Payable to Vedanta 3,894 2,590 200

Intercompany Payable to Cairn India - 1,250 40

Debt Service Liability 11,813 12,042 890

Vedanta Resources plc 31 March 2014 31 March 2015Annualized

Interest Cost

Gross External Debt 8,511 7,891 c.500

Intercompany Receivable at Plc from Vedanta Ltd (3,894) (2,590) (200)

Debt Service Liability 4,617 5,301 300

Cairn India Ltd. 31 March 2014 31 March 2015Annualized

Interest Cost

Intercompany Receivable at Cairn India from Vedanta Ltd

- (1,250) (40)

Debt Service Liability(in $mn)

Notes: Debt numbers at Face Values. Annualized interest cost represents an approximate annual interest cost based on debt levels as of 31 March 2015, and excludes accretive interest on convertible bonds and

amortisation of borrowing costs.


7,920

221

1,531

819

511

260 8,460

(2,802)

Opening Net Debt(1 Apr 2014)

Cash Flow fromOperations¹

Sustaining Capex Project Capex Subsidiary sharepurchases

Shareholder andMinority Dividends

Others Closing Net Debt(31 March 2015)

Net Debt Reconciliation

FY2015 ($mn)

36

Notes:

1. Excludes sustaining capex.


Project Capex

37

Capex in Progress StatusCapex

(US$mn)Spent up to March 2014

Spent in FY2015

Unspent as at 31 March 2015

Cairn India Phase wise completion ($500 mn to be spent in FY16 and retain the flexibility to invest balance $1.4 bn as oil prices improve and costs bottom out)

3,030 - 1,080 1,949

Total Capex in Progress - Oil & Gas 3,030 - 1,080 1,949

Aluminium Sector

BALCO – Korba-II 325ktpa Smelter and 1200MW power plant(4x300MW)

Smelter: 84 post capitalised in Sep 20141,872 1,721 98 53

Lanjigarh Refinery (Phase II) – 4mtpa Awaiting approval 1,570 809 - 761

Jharsuguda 1.25mtpa smelterPotline-wise commissioning: 1st phase of 50 pots started

2,920 2,500 35 385

Power Sector

Talwandi 1980MW IPP Unit II under Trial Run 2,150 1,869 142 139

Zinc Sector

Zinc India (Mines Expansion) Phasewise Completion 1,500 435 167 898

Zinc International

Gamsberg Mining Project Capex Rephased 630 - 5 625

Skorpion Refinery Conversion 152 - 4 148

Total Capex in Progress –Metals & Mining 10,794 7,334 451 3,009

Capex Flexibility

Copper Sector

Tuticorin Smelter 400ktpa EC awaited 367 129 - 239

Total Capex Flexibility 367 129 - 239

Total Capex (Excluding Cairn) 11,161 7,463 451 3,247

Total Capex (Including Cairn) 14,191 7,463 1,531 5,197


Credit Metrics

FY2014 FY2015 Covenant

Net Debt/EBITDA 1.8x 2.3x < 2.75x

EBITDA/Net Interest Expense1 8.4x 6.8x > 4.0x

Net Assets/Debt 2.2x 1.9x > 1.75x

Gearing2 30.6% 40.8%

Gearing – pre-impairment2 30.6% 33.5%

38

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

39

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

Commodity

FY2015

Average price

FY2015

EBITDA ($mn)

Oil ($/bbl) 85 190.1

Zinc ($/t) 2,177 198.0

Aluminium ($/t) 1,890 138.8

Copper ($/t) 6,558 108.6

Lead ($/t) 2,021 28.2

Silver ($/oz) 18.1 17.0

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

Currency

FY2015

Average FX rate

FY2015

EBITDA ($mn)

INR/USD 61.1471 185.9


Sales Summary

Sales volume FY2014 FY2015

Iron-Ore Sales

Goa (mn DMT) - -

Karnataka (mn DMT) 0.03 1.2

Total (mn DMT) 0.03 1.2

MetCoke (kt) 413 505

Pig Iron (kt) 543 605

Copper-India Sales

Copper Cathodes (kt) 174 191

Copper Rods (kt) 123 171

Sulphuric Acid (kt) 514 504

Phosphoric Acid (kt) 116 193

Copper-Zambia Sales

Copper Cathodes (kt) 177 163

Power Sales (mu)

Jharsuguda 2,400MW 7,625 7,206

TSPL - 1,213

BALCO 270MW 390 89

BALCO 600 MW - 10

MALCO 911 897

HZL Wind power 448 444

Total sales 9,374 9,859

Power Realisations (INR/kWh)

Jharsuguda 2,400MW 3.3 3.0

TSPL - 5.1

BALCO 270MW 3.9 2.9

MALCO 5.5 5.5

HZL Wind power 4.0 3.5

Average Realisations13.5 3.3

Power Costs (INR/kWh)

Jharsuguda 2,400MW 2.1 2.0

TSPL - 4.2

BALCO 270MW 2.9 4.0

MALCO 3.9 3.8

HZL Wind power 0.5 0.6

Average costs 2.2 2.1


Sales volume FY2014 FY2015

Zinc-India Sales

Refined Zinc (kt) 751 736

Refined Lead (kt) 121 129

Zinc Concentrate (DMT) - -

Lead Concentrate (DMT) - -

Total Zinc (Refined+Conc) kt 751 736

Total Lead (Refined+Conc) kt 121 129

Total Zinc-Lead (kt) 872 865

Silver (moz) 11.3 10.5

Zinc-International Sales

Zinc Refined (kt) 125 98

Zinc Concentrate (MIC) 176 158

Total Zinc (Refined+Conc) 301 256

Lead Concentrate (MIC) 59 48

Total Zinc-Lead (kt) 360 304

Aluminium Sales

Sales - Wire rods (kt) 286 310

Sales - Rolled products (kt) 51 46

Sales - Busbar and Billets (kt) 121 116

Total Value added products (kt) 458 472

Sales - Ingots (kt) 335 406

Total Aluminium sales (kt) 793 878

Notes:1. Excluding TSPL

Group Structure

41

Konkola Copper

Mines (KCM)

62.9%

Vedanta Resources Plc

100%64.9%

Zinc India(HZL)

AustralianCopper Mines

Vedanta Ltd

Cairn India

59.9%

79.4%

Subsidiaries of Vedanta Ltd

� Sesa Iron Ore

� Sterlite Copper (Tuticorin)

� Power (2,400 MW Jharsuguda)

� Aluminium

(Odisha aluminium and power assets)

Divisions of Vedanta Limited

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)


NotesShareholding based on basic shares outstanding as on 31 March 2015

Documents

Vedanta Resources plc FY 2015 Results · FY 2015 Results 14 May 2015. ... Any forward looking information in this presentation including, without limitation, any tables, charts and/or