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VEDANTA RESOURCES PLCPreliminary Results Presentation
for year ended 31 March 2012
17 MAY 2012
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 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.
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 2
Overview
Navin Agarwal
Deputy Executive Chairman
FY2012 Highlights
Financials
� EBITDA of $4.0bn; EBITDA margin 41%1
� Underlying EPS of $1.42
� Free Cash Flow of $2.5bn2; Cash and Liquid Investments of $6.9bn
� Final Dividend at 35 US cents per share
Corporate
� Group simplification creates Sesa Sterlite – on track for completion in CY2012
� Integrated Cairn India – Rajasthan production now at 175kbopd; basin potential of 300kbopd3� Integrated Cairn India – Rajasthan production now at 175kbopd; basin potential of 300kbopd3
� Acquired Liberia Iron Ore assets with c.1bn tonnes R&R; first shipment in FY2014
Operations
� Growth capex largely invested – to drive production and cash flow growth
� Significant production growth in Silver, Alumina, Aluminium, Power and Oil & Gas
� Exploration success at Zinc, Iron Ore and Oil & Gas
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Note: 1. Excludes Copper Custom Smelting operations
2. Free Cash Flow before Growth Capex
3. Subject to approvals
4
Growing Metals and Energy Demand
� Driven by emerging markets
Industry Landscape - the Vedanta Advantage
� Significant production growth in key commodities
� Proximity to emerging markets
� Low-cost advantage: high quality assets, competitive
labour cost and integrated approach
� Long-life assets with further exploration upside
Sector Theme Vedanta Positioning
Supply-Side Headwinds
� Operating costs: wage and energy cost
inflation, declining grades
� Many large mines nearing end-of-life
Growing Metals and Energy Demand
Supply-Side Headwinds
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
� Long-life assets with further exploration upside
Project Delivery Challenges
� Capital costs and timelines
� Investment vs. return of capital
� Growth projects significantly invested, and ramping-up
� Vedanta at inflection point with strong returns driven by
volume growth
Regulation
� Regulatory and fiscal changes
� Regional issues occurring globally
� Substantial contributor to economies and communities
� Partnering with Government
� Many large mines nearing end-of-life
Project Delivery Challenges
Regulation
5
Tier-1 Diversified Asset Portfolio
FY2012 Production Capacity R&R Life1 Sustainable Cost Position
Zinc India 830kt 1mtpa 25+ Lowest Quartile
Zinc Intl 444kt 400ktpa 20+ Lower Half
Silver 7.8moz 16moz pa 25+ By-product
Oil and Gas 173kboepd 260kboepd2
17 Lowest Quartile
Zinc India
Zinc Intl.
Silver
Oil & Gas
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Iron Ore 13.8mt 20.5mtpa 18 Lowest Quartile
Copper 200kt 400ktpa 24+4
Lower Half
Aluminium 675kt 2.3mtpaCurrently Lower Half;
Lowest Quartile with Captive Bauxite
Iron Ore3
Copper Zambia
Aluminium
Note: 1. At capacity
2. Capacity expected for the current producing assets, subject to approvals
3. Excluding Liberia
4. Mine life of Konkola Deeps
Large, Low-Cost, Long-Life, Scalable Assets
6
Delivering on Strategic Priorities
� Cairn India and Zinc-Intl integrated
� Liberia Iron Ore assets acquired
� 16moz Silver capacity at Zinc-India
� Progressed on organic growth projects
� Rajasthan ramp-up to significant part of
240kbopd1 in CY2013; progress towards basin
potential of 300kbopd1
� Recovery of Iron Ore volumes, and ramp-up
at Konkola and Power
� Next leg of growth – Liberia, Gamsberg, Zinc-
India
Delivered in FY2012 Focus for FY2013
GROWTH
Organic Growth, Value Accretive M&A
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
� Simplification of the Group structure
announced
� Exploration success at Oil & Gas, Iron
Ore, and Zinc
� Low cost advantage maintained
� Complete the simplification of the Group
structure
� Adding R&R at Oil & Gas, Iron Ore, and Zinc
� Continued focus on securing Coal and Bauxite
� Reduce gearing through strong Free Cash
Flow post capex
Note: 1. Subject to approvals
UNLOCK VALUE
Optimise Returns
Long Term Value Creation with a Focus on Sustainability
7
0.5 1.2
1.1
Free Cash Flow² Capex-ex-Cairn Capex-Cairn
2,000
2,500
3,000
3,500
4,000
Zinc-Lead Silver Iron Ore Copper
Aluminium Power Oil & Gas
Delivering Free Cash Flow
Cash Flow and Capex Profile - $bn1 Year-end Capacity (in Copper Equivalent - kt)3
1.8
2.3
3.1
3.7
2.52.2
1.91.7
1.4
FY2010 FY2011 Proforma FY2012
FY2013e FY2014e FY2015e
0
500
1,000
1,500
2,000
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
Notes: 1. Refers to organic growth capex. Cairn India has not announced capex for FY2015
2. Free cash flow before Growth Capex
3. All metal and power capacities rebased to copper equivalent capacity (defined as production x commodity price / copper price) using Long Term commodity price estimates. Power rebased using FY2012 Realisations.
Copper custom smelting capacities rebased at TC/RC for FY2012
Free Cash Flow at an Inflection Point
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 8
EBITDA (CY11 - $bn)
Market cap($bn)
BHP Billiton 38.5 176.8
Vale 33.8 109.4
Rio Tinto 28.5 99.1
Glencore Xstrata1 16.2 79.2
Anglo American 13.3 46.9
Industry-Leading Growth
Top Global Diversified Natural Resources Companies
Industry-Leading Growth
(Copper Equivalent FY2012 to FY2015 CAGR)3
Glencore-Xstrata
Vale
Sesa Sterlite
Vedanta
Anglo American 13.3 46.9
Vedanta2 5.9 5.4
Teck 5.5 19.6
Sesa Sterlite2 5.3 -
ENRC 3.4 11.2
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Source: Company filings and broker reports. Market data as of 10 May 2012
Note: 1. Assumes proposed merger completes
2. Pro forma EBITDA for the twelve months ended December 2011, including Cairn India for full year
3. Vedanta and Sesa Sterlite based on year-end capacity growth, peers based on equity research production estimates. Converted into copper equivalent using Long Term commodity price estimates. Power rebased using
Vedanta FY2012 Realisations and Copper custom smelting capacities rebased at TC/RC for FY2012.
0% 5% 10% 15% 20%
Anglo American
ENRC
Rio Tinto
BHP Billiton
9
Financial Results
D D Jalan
Chief Financial Officer
Financial Highlights
$mn or as stated FY2012 FY2011 Change
FY2012 proforma with
Cairn
EBITDA 4,026 3,567 13% 5,353
EBITDA margin1 (%) 40.6% 44.6% - 46.7%
Underlying Attributable PAT2 387 715 (46)% 571
Underlying EPS($/share)2 1.42 2.63 (46)% 2.09Underlying EPS($/share)2 1.42 2.63 (46)% 2.09
Free Cash Flow before Growth Capex 2,534 2,347 8% 3,128
Growth Capex3 2,398 2,517 (5)% 2,728
Total Dividend (USc/share) 55.0 52.5 5%
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Notes: 1. Excludes custom smelting operations
2. Based on profit for the year after adding back special items and other gains and losses, and their resultant tax and minority interest effects
3. Excludes sustaining capex
11
(126)(201)
(428)3,567
978 39 160
37 4,026
EBITDA Reconciliation
FY2012 vs. FY2011 ($mn)
61% Commodity
linked
EBITDAFY 2011
New Assets¹ Price Volume excl. Iron Ore
Volume Iron Ore
Export Duty Cash Cost Others EBITDAFY 2012
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Notes: 1. Includes $265mn from Zinc-Intl and $713mn from Cairn India. Cairn India is accounted for as a subsidiary from 8 December 2011.
12
EBITDA to PAT
4,026
(1,408)
(230)
FY2012 ($mn)
1,229
387
92
(517)
(1,169)60
(420)
(314)
EBITDA Depreciation and
Amortization
SpecialItems
Net Interest Expense
FX and Embedded Derivatives
Tax Profit from Associates
PAT including Associates
Minority Interest
Attributable PAT
Underlying Attributable
PAT¹
77%
Underlying Minority Interest
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Notes: 1. Profit for the year after adding back special items and other gains and losses, and their resultant tax and minority interest effects
13
4.1
3.2
4.5
Strong Financial Profile
� Cash and Liquid Investments of $6.9bn, with additional $2.9bn undrawn lines of credit
� FY2012 Proforma Net Debt:EBITDA including Cairn of 1.9x; Credit ratings of BB/Ba3/BB1
� Post group structure simplification, debt service liability at plc reduces by 61% to $3.9bn
− Debt service cost at Vedanta reduces from $500mn to $190mn in FY2013
− Payout-based dividend policies at subsidiaries to result in significantly higher dividends flowing to plc
� Limited maturities at plc in FY2013 – $250mn already refinanced
Debt Maturity Profile as of 31 March 2012 ($bn)2
$1.8bn - Bridge loan to be rolled over into long term facilities$0.5bn - Revolving working capital facility$0.8bn - To be repaid through internal cash flows
1.00.5 0.1 0.3
3.0
2.21.5
1.3
3.10.5
1.3
0.4
0.32.3
2.4 2.7
0.7
3.2
FY2013 FY2014 FY2015 FY2016 FY2017³ FY2018 and later
Debt at VED plc Debt to be transferred from VED plc to Sesa Sterlite Debt at Subsidiaries
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Notes: 1. Issue credit Ratings as per S&P, Moody’s and Fitch respectively
2. Debt numbers shown at face value
3. Includes convertibles at Vedanta Plc of $883mm due in FY2017 (with a put option in April 2013) and $1,250mm due in FY2017 (with a put option in July 2014)
$0.8bn - To be repaid through internal cash flows
14
Business Review
M.S. Mehta
Chief Executive Officer
Aluminium3%
Copper13%
Oil & Gas38%
Power2%Aluminium
4%
Copper17%
Oil & Gas18%
Power3%Aluminium
7%
Copper19%Iron Ore
33%
Power4%
EBITDA: Continued Growth and Diversification
FY2011 FY2012Proforma FY2012
with Cairn India for Full Year
Zinc-India23%
Zinc-Int.7%
Iron Ore14%
Zinc-India31%Zinc-Int.
9%
Iron Ore18%
Zinc-India34%
Zinc-Int.3%
EBITDA: $3.6 bn EBITDA: $4.0bn
+13%
EBITDA: $5.4bn
+50%
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 16
1.9 1.7 1.51.1 1.0
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
Sustainability – Integral to our Business
� 48% reduction in LTIFR over 5 years
− Structured programs in place to enhance safety and prevent
fatalities
� Climate Change
− Continued improvement in specific energy and water consumption
− Participated in Carbon Disclosure Project 2011: Sesa Goa received
7th position in India
� Green Energy
− Operating 274MW wind power
− Generating 61MW from waste heat
� New Sustainability Framework rolled-out
-48%
Specific Water Consumption
BALCO (m3/MT)-75%
LTIFR
19.0
17.0 16.9 16.3 16.2
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012
15.6 14.2
7.2 3.9
FY 2009 FY 2010 FY 2011 FY 2012
Specific Energy Consumption
HZL Smelters (GJ/MT)
� New Sustainability Framework rolled-out
− New policies and technical standards rolled-out
− Exco Sustainability Sub-Committee formed to enhance sustainability
focus
− 17 of 29 Scott Wilson recommendations implemented, others on
schedule
� Community programs covering 3.1million people
− Jointly working with NGOs, administration, and beneficiaries,
supported by a strong team of CSR personnel and extension
workers.
− Focus: Health and Nutrition, Education, Women Empowerment,
Water & Sanitation, and Sustainable Livelihood
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
-15%
17
Creating Long Term Value Through Exploration
� Added 3x times
mined out in
FY2012
� Added 4.8x times
mined out since IPO
� R&R increased to
332mt, from 144mt
at Vedanta IPO
� 25+year mine life
Zinc-India Iron Ore
India
� Added net 68mt in
FY2012, 18 year
mine life at current
capacity
� R&R increased from
190mt2 at
acquisition to
374mt – added 3.4x
� R&R replacement
ratio of 1.75x in
FY2012
� Potential resource
increased to 7.3
billion boe gross in
place from 6.5
billion boe gross in
place at Rajasthan
Oil & GasCopper-Zambia
� R&R increased to
689mt from 457mt
at acquisition
� 24+ year mine life
with high grade at
KDMP
� Added mine life at
all three assets
� Current mine life:
− Skorpion:
5+years1
− BMM: 10+years
− Lisheen: 3years
� 186mt Gamsberg
Zinc-Intl
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
� 25+year mine life
with 10%+grades
374mt – added 3.4x
times mined out
Liberia
� 1bn tonnes R&R
− Aeromagnetic
study completed
− Initial drilling
indicates
potential upside
� Exploration success
at Sri Lanka and
Nagayalanka
� 17 year R&R life
� 186mt Gamsberg
deposit feasibility
study underway
Notes: 1. With some additional work for conversion of resources to reserves
2. 120mt excluding Orissa from Sesa Goa acquisition, and 70mt from Dempo acquisition
Creating Long Term Value through Exploration
18
Cairn India - Delivering Growth and Cash Flows
Production Growth - Rajasthan
� Since acquisition, output has been enhanced from
125kbopd to 175kbopd
� Mangala field producing since Aug 2009; currently at
150kbopd
� Bhagyam field producing since Jan 2012; currently at
25kbopd
� Resource base supports basin potential to produce
300kbopd1
Exploration Growth
� Diversity of basin, plays and environments
Significant
part of
300,0001
Basin
Rajasthan Gross Production (bopd)
� Diversity of basin, plays and environments
− Exploration success ratio ~50%
� Achieved reserve & resource replacement ratio of 175%
during the year
� Net unrisked exploration potential for the portfolio at
2.1bn boe
� Significant exploration upside at Rajasthan
� Successful discoveries at Sri Lanka and KG-ONN-2003/1
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Note: 1. Subject to approvals
part of
240,0001
in CY2013
Primarily
from MBA
Aishwariya
towards
end CY2012
Basin
Potential
Barmer Hill
Further
exploration175,000
Currently
Mangala
150kbopd
Bhagyam
upto
40kbopd
125,000 at
Acquisition
completion
Mangala
125kbopd
19
Cairn India
� Acquisition completed in December 2011
− Integration completed
− Announced Dividend Policy of ~20% payout of net
income
� Cairn India production and contribution
− Average daily gross operated production in FY2012 at
172,887 boe
− Reduced India’s crude oil import dependency by
~US$6bn on a gross basis
� Rajasthan potential increased to 7.3bn boe gross in place
from 6.5 billion boe gross in place since acquisition
Rapid Production Growth(Gross Production in kboepd)
Production
FY2011 FY2012
Average Daily Gross Operated Production (boepd)
149,103 172,887
Rajasthan 100,993 128,267
Ravva 36,942 36,379
Cambay 11,169 8,242
Average Daily Working Interest Production (boepd)
83,474 101,268
Rajasthan 70,695 89,787
Ravva 8,312 8,185
Cambay 4,468 3,297
EBITDA1 - 713
Note: 1. Numbers post acquisition
from 6.5 billion boe gross in place since acquisition
announcement
− Recoverable risked prospective resource estimated at
530 mmboe gross
� Development
− Rajasthan EOR Pilot on track; booked 70 mm bbls as
Proved & Probable Reserves
− Barmer to Salaya section of the pipeline being
debottlenecked and augmented
− Ravva infill drilling completed, decline rate slowed
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
450 467581
Q2FY2012 Q3FY2012 Q4FY2012
Note: 1. Subject to approvals Note: 2. Numbers in Indian GAAP as reported by Cairn India Ltd
EBITDA2 ($mn)
20
Zinc
Zinc-India
� Record production of refined Zinc, Lead and Silver
− Maintained lowest quartile cost position
� Strong ramp-up of lead and silver production
− Silver rich 2mtpa SK mine at 90% utilization
− Silver contributed $210mn EBITDA
− 11.3moz Integrated silver production in FY2013
� 27mt gross addition to R&R in FY12
− More than 25 years mine life
Production and Cash Costs
Zinc-India FY2011 FY2012
Mined Metal (kt) 840 830
Refined Zinc (kt) 712 759
Refined Lead (kt)1 63 99
Silver – Integrated (moz)1 5.75 7.61
Zinc CoP2 ($/t) 808 834
Zinc-InternationalFY2011
post acq’n FY2012
Mined Metal – Lisheen & BMM (kt) 44 299
1,220 1,245
101 3661,321
1,611
FY 2011¹ FY 2012
India International
Zinc-International
� Stable operating performance
� Exploration: Mine life extended at all three assets
− Skorpion: 5+ year mine life1
− BMM: 10+ year mine life
− Lisheen: 3 year mine life
� 186mt Gamsberg project:
− Feasibility study to complete in current quarter
− Targeting mine production in 2 years
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
EBITDA ($mn)
Note: 1. For the period post acquisition
Refined Zinc – Skorpion (kt) 50 145
CoP ($/t) 1,129 1,165
Notes: 1. Includes captive consumption
2. Excluding royalty
Note: 1. With some additional work for conversion of resources to reserves
21
Iron Ore
India
� Net addition of 68mt of R&R
− Total R&R of 374mt, implying 18 year mine life
� Operating performance affected by
− Logistics bottlenecks at Goa: Expanding roads
and developing new corridors
− Karnataka mining ban: process underway to
resuming mining
� Margins affected by 30% export duty from Dec 2011
� Commissioning of 375kt Pig Iron expansion project in
current quarter
Production and Sales (mn DMT)
Iron Ore FY2011 FY2012
Sales1 18.1 16.0
Goa 14.4 13.3
Karnataka 2.1 2.7
Orissa 1.7 -
Production 18.8 13.8
Pig iron - Production (kt) 276 249
Note: 1. Iron ore sales includes captive consumption of 0.30 mt each in FY2011 and FY2012
current quarter
Liberia
� Aeromagnetic survey completed and scoping study
near completion
− Indicates significant upside to earlier estimated
resource base of 1bn tonne
� Targeting first shipment in FY2014
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
1,174
721
FY 2011 FY 2012
EBITDA ($mn)
22
Copper-India
Copper India/Australia
� Strong volume and cost performance
� EBITDA up 24% - driven by higher volumes, better
by-product credits, and higher Tc/Rc
� Higher smelter availability through technology and
process improvements
� 160MW CPP Project - mechanical completion of first
80MW achieved
Production and Cash Costs
Copper India/Australia FY2011 FY2012
Mined Metal 23 23
Refined Metal – India (kt) 304 326
Conversion cost – India (c/lb) 4.0 0.0
80MW achieved
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
73 59
166239
240
298
FY 2011 FY 2012
Copper Australia Copper India
EBITDA ($mn)
23
Copper-Zambia
Copper Zambia
� Integrated production up 5%
− Commissioned 2900level high speed tramming facility
increasing mine development pace
− Copper smelter recovery at 98.5%
− Costs affected by higher power, fuel and labour costs
− UOB – trial mining successfully completed, confirmed
higher grades of Copper and Cobalt
� Commissioned during the year
− 2nd Cobalt Recovery Furnace commissioned in Q4,
fully ramped-up in April
Production and Cash Costs
Copper Zambia FY2011 FY2012
Mined Metal 144 142
Refined Metal – Integrated 133 139
Refined Metal - Custom Smelting 84 61
CoP – Integrated ($/lb) 1.97 2.37
440388
FY 2011 FY 2012
− 7.5mt East Mill commissioned in Q4, ramping-up
− TLP-IV debottlenecking to 75ktpa completed
� Exploration: Maintained track record of R&R replacement
� FY2013 Priorities:
− 3mt West Mill to be commissioned in Q2FY2013
− Accelerate Konkola mine development pace to
60km/year
− Bottom shaft loading at KDMP by Q3 - Platform for
25-30% year-on-year growth in mined metal
− Start regular mining at UOB
− 175kt Integrated Production
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
EBITDA ($mn)
24
Aluminium
� Record Alumina and Aluminium production
− Value added product sales up 25%, at c.400kt
� Resumed efficient operations at VAL in H2, following
a power outage in H1
− Reduced specific consumption of power and
carbon
− Significantly lower COP in H2, with Q4 COP at
$1,930/t despite input cost pressures
− Q4 COP in second quartile of cost curve, without
bauxite linkage
Volumes and Cash Costs
Aluminium and Alumina FY2011 FY2012
Aluminium Production (kt) 641 675
BALCO 255 246
VAL 385 430
Aluminium COP ($/t) 1,878 2,091
BALCO 1,784 1,922
VAL 1,940 2,188
Alumina Production (kt) 707 928
Alumina COP ($/t) 326 350
Power – BALCO 270MW (mu)
Sales 1,623 1,605
Realisation (Rs/unit) 3.4 3.2
COP (Rs/unit) 1.9 2.2bauxite linkage
� Working with government on bauxite allocation
� BALCO projects
− 1200MW CPP: 1st Unit synchronization in
Q1FY2013
− 325ktpa smelter – first metal in Q3 FY2013
− Captive coal mining in FY20131
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
COP (Rs/unit) 1.9 2.2
353
182
FY 2011 FY 2012
EBITDA ($mn)
Note: 1. Subject to approvals
25
Aluminium Industry Dynamics
� Input cost inflation globally in 2011
− LME below c1 costs of c.50% of global capacity
− Capacity cuts by several marginal cost smelters
− Correction in input prices seems inevitable
� VAL and BALCO are in 2nd quartile of cost curve in
Q4FY2012
− EBITDA margin in Q4, in-line with peers
− Cost efficient even without bauxite linkage2,000
2,500
3,000
VAL1-
$1,9
30/t
BALCO1-
$1,9
19/t
Aluminium Cost Curve ($/t)
� Committed to an integrated Aluminium strategy
− Well invested plant with world-class technology
and infrastructure at benchmark project costs
− Strategic location in Eastern India: Proximity to
Bauxite and Coal deposits
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
0 10 20 30 40 50 60 70 80 90 100
500
1,000
1,500
Cumulative Production (Percentile)
First Quartile -
$1,7
61/t
Second Quartile -
$2,0
57/t
Third Quartile -
2,2
72/t
Source: Wood-Mackenzie CY2012Q1 C1 Cost Estimates, Company sources for VAL and BALCO
Note: 1. Q4 FY2012 COP
26
Power
� Sales significantly higher reflecting commissioning of
new capacity at 2,400MW Jharsuguda power plant
− Three 600MW units operational
− 4th unit under trial runs, to be commissioned in
current quarter
− 65% average plf expected for all units in FY2013
� Continuous operational improvement at Jharsuguda
− Q4 cost lower at INR2.26/unit
− On track to further reduce specific coal
consumption
Sales and Cash Costs
FY2011 FY2012
Total Sales (mu) 1,878 6,554
SEL (mu) 8561 5,6382
Others3 1,022 916
Average realisation (USc/u) 9.7 7.5
Average cost of generation (USc/u) 6.2 5.5
Average realisation (INR/u) 4.44 3.61
Average cost of generation (INR/u) 2.81 2.63Notes: 1. Includes 646mu generated under trial run
2. Includes 926mu generated under trial run
3. MALCO 100MW & WPP274MW
consumption
� 1st 660 MW unit of 1,980MW Talwandi Sabo on track
for commissioning by Q4 FY2013
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
44
122
FY 2011 FY 2012
EBITDA ($mn)
27
2,500
3,000
3,500
4,000
Zinc-Lead Silver Iron Ore Copper
Aluminium Power Oil&Gas
Summary
� World-class diversified portfolio of large, structurally
low-cost assets with long mine-life
� Strong cash flow growth driven by substantially
invested projects
� Recent acquisitions provide additional growth options
� Group simplification on track for completion in CY
2012
Year End Capacity
(in copper equivalent kt)
0
500
1,000
1,500
2,000
2,500
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Note: 1. All metal and power capacities rebased using average Copper LME and Commodity prices for H1 FY2012
2. Copper custom smelting capacities rebased at TC/RC for H1 FY2012
28
Appendix
Entity Wise Financials – FY2012
FY2012 ($mn or as stated)VED
Consol HZLZinc-Intl Sesa
SIIL(inclCMT) KCM BALCO VAL
SEL & TSPL
Cairn India
VED Plc1
Others and Elimination
Cairn India (Associate)
EBITDA 4,026 1,274 366 722 296 388 120 62 86 713 0 (1)
Depreciation (927) (127) (119) (50) (45) (143) (44) (164) (51) (180) (6) 2
Amortization (481) (7) (118) (177) (13) (166)
Special Items (230) (9) (2) (14) (89) (24) (1) (31) (59) (3)
Net Interest Income (Expense) (420) 310 (3) (27) 158 (51) 2 (356) (30) 16 (235) (205)
FX and Embedded Derivative MTM (314) 4 3 2 (48) (160) (45) 3 (73)
Share of Profit in Associates 92 922
Profit before Tax 1,745 1,441 131 458 322 170 16 (618) (40) 351 (297) (280) 92
Tax (517) (294) (16) (147) (87) (51) 8 104 (5) (29)
Profit after Tax 1,229 1,147 115 311 234 119 24 (618) (40) 455 (302) (308) 92
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Attributable (%) 4.9 37.6 53.9 55.1 58.0 79.4 29.6 87.6 58.0 49.8 100.0 91.8 70.9
Attributable PAT 60 432 62 171 136 94 7 (541) (23) 242 (302) (283) 65
Underlying Attributable PAT 387 434 60 175 170 108 17 (401) 3 255 (246) (253) 65
As of 31 March 2012
Property Plant and Equipment3 17,575 1,773 624 567 487 2,082 1,871 5,460 2,322 2,371 58 (40)
Mining Reserve 6,265 74 319 1,185 21 32 4,634
Exploratory Assets 10,758 183 176 42 10,357
Note: 1. Includes Vedanta plc and Investment companies at 100% attributable and MALCO at 94.8% attributable
2. Represents a total holding of 28.8% of Cairn India
3. Includes Capital Work in Progress
30
Entity-Wise Cash and Debt Details
Net Debt Summary ($mn)
31 Mar 2011 30 Sep 2011 31 Mar 2012
Company Debt Cash & LI1 Net Debt Debt Cash & LI1 Net Debt Debt Cash & LI1 Net Debt
Vedanta plc2 4,557 265 4,292 6,340 1,136 5,204 9,263 205 9,058
Sterlite standalone incl. CMT 746 1,139 (394) 636 771 (135) 565 758 (193)
Zinc-India - 3,403 (3,403) - 3,384 (3,384) - 3,574 (3,574)
Zinc-International 32 392 (360) 28 306 (278) 9 215 (206)
BALCO 518 68 451 618 26 592 711 49 662
Sterlite Energy Ltd 597 92 505 910 15 895 1,175 37 1,138
Others 24 27 (4) 52 - 52 53 1 51
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Others 24 27 (4) 52 - 52 53 1 51
Sterlite Consolidated 1,917 5,122 (3,205) 2,244 4,501 (2,258) 2,511 4,633 (2,122)
Vedanta Aluminium Ltd 2,810 115 2,695 2,825 15 2,810 3,505 85 3,420
Copper Zambia 256 6 250 765 - 765 750 42 709
Sesa Goa 212 2,194 (1,982) 867 220 648 681 118 564
MALCO - 74 (74) 16 17 (1) - 6 (6)
Cairn India - - - - - - 244 1,797 (1,553)
Total (in $mn) 9,753 7,777 1,9703 13,056 5,889 7,1664 16,955 6,885 10,0645
Note: 1. Liquid Investments
2. Includes Investment Companies
3. Includes $5 million debt related derivative
4. Includes $2 million debt related derivative
5. Includes $6 million debt related derivative
31
Cairn India2
7,097
(2,920)
7,248
558
10,064
Net Debt Reconciliation
FY2012 ($mn)
Other 61 Liberia 90
1,970
2,398 386
364 60
Opening Net Debt
(1 Apr 2011)
Project Capex Sustaining Capex
Shareholder and Minority Dividends
Subsidiary share
purchases
Acquisitions Others Cash Flow from
Operations¹
Closing Net Debt
(31 Mar 2012)
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Note: 1. Excluding sustaining capex
2. Net of cash and liquid investments at acquisition
32
Credit Metrics
FY2011 FY2012 Covenant
Net Debt/EBITDA 0.55 x 1.9 x < 2.75 x
EBITDA/Gross Interest Expense1 5.0 x 4.5 x > 4.0 x
Tangible Net Worth ($bn) 5.5 4.5 > 3.0
Net Assets/Debt 2.61 x 2.47 x > 1.75 x
Gearing2 13% 35%
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Note: 1. Interest includes Capitalized Interest
2. Gearing is calculated as Net Debt divided by the sum of Net Debt and Equity
33
EBITDA Sensitivities
Commodity prices – Impact of a 10% increase in Commodity Prices (LME/Prices in $/t, or as stated)
Commodity
FY2012
Average price
FY2012 EBITDA
($mn)
Oil ($/bbl) 114 247
Zinc 2,098 221
Aluminium 2,313 162
Copper 8,475 140
Iron Ore 76 121
Lead 2,269 37
Silver ($/oz) 35.3 24
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Foreign Currency - Impact of a 10% depreciation in Closing FX Rate
Currency
FY2012
Average FX rate
FY2012 EBITDA
($mn)
INR/USD 47.9458 195
34
Sales Summary
Sales volume FY2011 FY2012Zinc-India Sales
Refined Zinc (kt) 713.1 758.5
Refined Lead (kt) 56.9 91.7
Zinc Concentrate (DMT) 66.0 -
Lead Concentrate (DMT) 38.5 10.1
Total Zinc (Refined+Conc) kt 779.1 758.5
Total Lead (Refined+Conc) kt 95.3 101.8
Total Zinc-Lead (kt) 874.5 860.3
Silver (moz) 4.7 6.6
Zinc-International Sales1
Refined Zinc (kt) 47.3 152.8
Zinc Concentrate (MIC) 28.8 216.8
Total Zinc (Refined+Conc) 76.1 369.6
Lead Concentrate (MIC) 19.4 84.0
Sales volume FY20112 FY2012Iron-Ore Sales
Goa (mn DMT) 14.4 13.3
Karnataka (mn DMT) 2.1 2.7
Orissa (mn DMT) 1.7 -
Total (mn DMT) 18.1 16.0
MetCoke (kt) 265.7 251.7
Pig Iron (kt) 266.1 250.6
Copper-India Sales
Copper Cathodes (kt) 116.6 159.0
Copper Rods (kt) 186.7 161.5
Sulphuric Acid (kt) 520.8 594.9
Phosphoric Acid (kt) 158.7 151.7
Copper-Zambia Sales
Copper Cathodes (kt) 214.5 200.9
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Total Zinc-Lead (kt) 95.5 453.6
Aluminium Sales
Sales - Wire rods (kt) 219.7 267.2
Sales - Rolled products (kt) 60.1 64.0
Sales - Busbar and Billets (kt) 38.3 66.0
Total Value added products (kt) 318.1 397.2
Sales - Ingots (kt) 315.0 271.8
Sales - Total (kt) 633.0 669.0
Copper-Zambia Sales
Copper Cathodes (kt) 214.5 200.9
Note: 1. For the period post-acquisition by Vedanta
2. FY2011 numbers restated as per reclassification of energy segment in Q1 FY2012. Accordingly, Non-SEL now includes power sales from MALCO 100MW and HZL Wind. BALCO 270MW and surplus sales at captive power
plants are shown in their respective segments
Power Sales (mu)
SEL 856 5,638
Non-SEL 1,023 916
Total sales 1,879 6,554
BALCO 270 MW 1,623 1,605
Power Realisations (USc/mu)
SEL 6.8 7.2
Non-SEL 10.3 9.4
Average Realisations 9.7 7.5
BALCO 270 MW 7.5 6.7
Power Costs (USc/mu)
SEL 4.9 5.4
Non-SEL 6.4 6.0
Average costs 6.2 5.5
BALCO 270 MW 4.1 4.5
35
Group Structure Simplification - Timeline
Status Event Expected
� BSE and NSE approval sought Mar 2012
� Competition Commission approval sought Mar 2012
� Foreign Investment Promotion Board approval sought Mar 2012
� BSE and NSE approval received Apr 2012
� Competition Commission approval received Apr 2012
� Application to High Court in India and Supreme Court of Mauritius Apr 2012
Scheme documents posted to shareholders May 2012
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Vedanta / Sesa / Sterlite / MALCO EGM Jun 2012
Foreign Investment Promotion Board approval Jun 2012
High Courts of India and Supreme Court of Mauritius approval Sep 2012
Transaction completion CY 2012
36
Proposed New Group Structure
Konkola Copper
Mines (KCM)
58.3%
Vedanta Resources
Sesa Sterlite
79.4%
� Iron Ore (Sesa Goa)
� Copper Smelting (Tuticorin)
� Power (2,400MW Jharsuguda)
� Aluminium (VAL aluminium
assets)
Divisions of Sesa Sterlite
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
100%64.9%
Zinc-India (HZL)
AustralianCopper Mines
Cairn India
58.9%
Subsidiaries of Sesa Sterlite
assets)
Option to increase stake
to 94.4%
Unlisted entitiesListed entities
Note: Shareholding based on basic shares outstanding
Talwandi Sabo Power (1,980MW)
100%
VAL Power and MALCO
Power (1,405MW)
100%
Skorpion & Lisheen -100%
BMM -74%
100%
Zinc-International
51%
Bharat Aluminium (BALCO)
Option to increase stake
to 100%
51%
Western Cluster (Liberia)
Option to increase stake
to 100%
37
Vedanta Group Structure
Konkola Copper
Mines (KCM)
54.6%
Vedanta Resources(Listed on LSE)
Madras Aluminium (MALCO)
94.8%70.5%
29.5% Sterlite Industries(Listed on BSE, NSE and NYSE)
VedantaAluminium
(VAL)
79.4%
Sesa Goa (Listed on BSE
and NSE)
55.1%
3.6% Cairn India Ltd(Listed on BSE
and NSE)
38.7%
20.1%
FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012
Zinc-IndiaCopperAluminium Iron ore Power
KEY
51.0% 100%64.9%
Zinc-India(HZL)(Listed on BSE
and NSE)
AustralianCopper Mines
Bharat Aluminium (BALCO)
Sterlite Energy
100% 51%
Skorpion and Lisheen
Black Mountain
100% 74%
Zinc-International
Liberia Iron Ore Assets
Oil & GasZinc-International
Note: Structure as at 31 March 2012
38