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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
5FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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.
6FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
8FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
9FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
10FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
11FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
13FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
$mn or as stated H1 FY2013¹ H1 FY2014 change
EBITDA 2,572 2,207 (14)%
EBITDA margin² (%) 47% 45%
Free Cash Flow before Growth Capex 1,438 1,046 (27)%
Growth Capex 954 630 (34)%
Free Cash Flow after Growth Capex 484 417 (14)%
Net Debt 9,835 8,463 (14)%
Gearing (%) 34% 33%
Net Debt/EBITDA (LTM) 2.0 1.9
Underlying Attributable PAT³ 267 80 (70)%
Underlying EPS (USc/share)³ 98 29 (70)%
Interim Dividend (USc/share) 21 22 5%
Notes: 1. The comparative information has been restated so as to reflect the adoption of new accounting standards
2. Excludes custom smelting at Copper and Zinc-India operations
3. Based on profit for the year after excluding special items and other gains and losses, and their resultant tax and minority interest effects
EBITDA Bridge
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013 14
2,572
48 2,088106 13 2,207(225)
(140)
(134) (33)
EBITDAH1 FY2013
Prices Profit Petroleumto Govt of India
IronOre
SterliteCopper
Q1 Closure
FX incl. EBITDATranslation
& Others
Adjusted EBITDA
Volume CashCosts
EBITDAH1 FY2014
H1 FY2014 vs. H1 FY2013 ($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
15FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
$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
16FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
17FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013 19
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.
20FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
-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$3/bbl
− High facility uptime at 98.4%
− State-of-the-art technologies for field monetisation
� Partner approval / alignment in Rajasthan Block
− Approval secured for implementation of the world’s
largest polymer EOR project in Mangala Field
− Technical alignment in place for the Field
Development Plans of Barmer Hill, NI and NE
− GoI issued policy on Integrated Block Development
� Active Exploration
Rajasthan
− 4 of the 6 wells drilled found hydrocarbons
− Declaration of potential commerciality filed for 26th
Discovery
Other Blocks
− India: E&A progress at KG-ONN Onshore and Ravva
− Exploration progress in Sri Lanka and South Africa
21FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Oil & Gas H1 FY2013 H1 FY2014
Average Daily Gross Operated Production (boepd)
207,105 212,873
Rajasthan 169,486 174,503
Ravva 30,591 28,704
Cambay 7,028 9,666
Average Daily Working Interest Production (boepd)
128,335 132,477
Rajasthan 118,641 122,152
Ravva 6,883 6,458
Cambay 2,811 3,866
Average Brent (US$/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
22FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
23FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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 $3bn capex program
� To support an optimal mix of organic and inorganic
opportunities
Notes: PSC: Production Sharing Contract; EOR: Enhanced Oil Recovery
India’s Oil Requirements & Cairn India’s Share of Production
Zinc
Zinc-India
� Improved operational efficiencies driving strong
volumes
− Ramp-up in mined metal volumes
− Operational efficiencies drove strong refined
volumes
� Maintained lowest quartile cost position
� FY 2014 expected volumes
− Mined metal: approx. 950 kt
− Refined Saleable Silver: 10.8 moz
� Expansion to 1.2mtpa mined zinc-lead underway
− Production from Kayad and Rampura Agucha
underground mine in FY2014
Zinc-International
� Stable operations in Q2
� FY2014 expected production of approx. 390kt
24FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Zinc-India H1 FY2013 H1 FY2014
Mined Metal (kt) 377 459
Refined Zinc – Integrated (kt) 310 368
Refined Lead – Integrated (kt)1 53 60
Saleable Silver – Integrated (moz) 4.62 5.16
Average Zinc LME ($/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 ($mn)
374 460
13599
135117
644 676
H1 FY2013 H1 FY2014
Zinc India (excl. Silver) Zinc India (Silver) Zinc International
Rampura Agucha Mine – Isometric View
� Total ore production sustained at c.6mtpa from a combination of open cast and underground
− Commercial production from underground project in FY14
25FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Iron Ore
India
� Karnataka: Supreme Court cleared our mine to
resume operations
− Awaiting final clearance to resume mining
� Goa mining: Supreme Court hearings completed,
interim order passed
− Allowed to sell inventory as prescribed
− To review and decide by Feb 2014 regarding the
state’s iron ore output capacity
� Pig Iron production up 97% in H1, driven by new
capacities commissioned in Q2 FY2013
Liberia
� Drilling has confirmed 1 bn tonnes deposits with
further upside
� Reviewing phased options, including 1st phase of
2mtpa
26FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Iron Ore and Pig Iron H1 FY2013 H1 FY2014
Sales (mt) 3.1 -
Goa 3.0 -
Karnataka 0.1 -
Production 3.7 -
Average Net Sales Realizations ($/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: $12 mn
27FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
EBITDA ($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 $2.20/lb
� Turnaround required to optimise operations and
realize the potential of these assets
28FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Copper-Zambia H1 FY2013 H1 FY2014
Mined Metal (kt) 86 70
Finished Metal – Total (kt) 110 94
Integrated (kt) 83 65
Custom Smelting (kt) 27 29
Copper LME ($/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 $355/t
− c.60% of production converted to value added
products
� Pursuing multiple options for allocation of captive bauxite
with Odisha Government
� Projects
− BALCO 325kt smelter - First metal in Q3 FY2014
− BALCO 1200 MW power plant – Synchronisation in
Q4 FY2014
− BALCO 211mt coal block mining in Q1 FY2015¹
− Jharsuguda-II 1.25 mt smelter: Evaluating
commissioning of one line of 312.5kt
29FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Aluminium and Alumina H1 FY2013 H1 FY2014
Aluminium Production (kt) 382 395
BALCO 123 124
Jharsuguda-I 259 271
Aluminium LME ($/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 ($mn)
75
108
26
17101
125
H1 FY2013 H1 FY2014
Vedanta Aluminium and Power BALCO
Power
� Jharsuguda 2,400 MW : H1 PLF of 43%
− Q2 PLF of 31%, primarily on account of lower
demand due to good monsoon and weak balance
sheets of Discoms, despite power shortage
− H2 PLF expected at 50% as demand improves
� 1st 660 MW unit of 1,980 MW Talwandi Sabo on
track for synchronisation in Q3 FY2014
30FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Power H1 FY2013 H1 FY2014
Total Sales (mu) 5,364 5,087
Jharsuguda 2,400 MW 1 3,879 4,098
BALCO 270 MW 684 231
MALCO 431 445
HZL WPP 370 313
Realisation (Rs/u) 3.6 3.7
Cost of generation (Rs/u) 2.3 2.3
Realisation (USc/u) 6.6 6.2
Cost of generation (USc/u) 4.2 3.9
Notes: 1. Includes trial run generation of 339 million units in H1 FY2013
Source: Morgan Stanley analysis, World Energy Council – “World Energy Perspective 2013”, Bloomberg New Energy Finance, IIFL Institutional Securities
Notes: Cost of Generation as reported for Vedanta. For peers, this includes fuel cost, O&M, depreciation, interest and return on equity at 15.5% at an exchange rate of INR61.84 as on 6-Nov-13.
EBITDA ($mn)
127
123
H1 FY2013 H1 FY2014
39
37
49
70
Vedanta
IndiaCaptive Coal
IndiaLinkage Coal
IndiaImported Coal
Comparative Cost of Generation(US$/MWh)
Summary
31FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Long-Term Value Creation with a Focus on Sustainability
Production growth across portfolio with a focus on
returns
Continue to add R&R in our existing portfolio
of assets to drive long-term value
� Disciplined capital allocation: Low-risk and phased development
� Sustained operational excellence and cost efficiencies
� Active engagement with Governments
� Exploration programme to realise vision of 300kboepd at Rajasthan
� Continued focus to more than replace production
Reduce gearing from increasing free cash flow
� Production ramp-up from well-invested assets driving strong free cash flow
� Generate positive free cash flow from all businesses
� Utilise cash flows to de-lever
Consolidation and Simplification
of the Group structure
� Sesa Sterlite merger: Realize full synergies
� Buyout of GoI’s stake in HZL and BALCO
Appendix
Entity Wise Financials
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
H1 FY2014 ($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
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013 35
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 $mn) 17,006 7,163 9,8354 16,593 7,982 8,6165 16,605 8,135 8,4636
8,616
172
630
277 8,463
(1,219)
(13)
Opening Net Debt(1 Apr 2013)
Cash Flow from Operations¹
Sustaining Capex Project Capex Shareholder and Minority Dividends
Others Closing Net Debt(30 Sep 2013)
Net Debt Reconciliation
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
H1 FY2014 ($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.$200mn in
FY2014
� Payout-based dividend policies at subsidiaries to result in
significantly higher dividends to plc
37FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Debt Service Liability³
($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
38FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Capex in Progress Completion Time
Capex
(US$mn)
Spent H1
2013-14
Spent up to
Sept. 2013
Unspent
as at 30.9.13
Cairn India 3,673 223 808 2,866
Total Capex Oil & Gas 3,673 223 808 2,866
Copper Sector
160 MW CPP at Tuticorin 80MW commissioned, next 80MW awaiting approval 161 6 157 4
KCM KDMP Project (7.5 mtpa) Completed 973 19 908 65
Aluminium Sector
BALCO - Korba 325 ktpa Smelter 1st Metal tapping by Q3 FY 2013-14 772 43 752 20
BALCO - Korba 1200 MW CPP 1st unit synchronisation in Q4 FY 2013-14 1,100 26 912 188
BALCO – 211 mt Coal Block Mining from Q1 FY 2014-15 150 1 14 136
Jharsuguda 1.25 mtpa smelter Line wise completion 2,920 4 2,483 437
Power Sector
Jharsuguda 2400 MW power plant Completed 1,769 5 1,736 33
Talwandi 1980 MW IPP 1st unit synchronisation in Q3 FY 2013-14 2,150 155 1,750 400
Zinc Sector
Zinc India (Mines Expansion) Phasewise Completion 1,500 90 282 1,218
Total Capex in Progress 11,495 348 8,994 2,501
Project Capex
39FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
Improvement and Enabling Capex Completion Time
Capex
(US$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$mn)
Spent H1
2013-14
Spent up to
Sept. 2013
Unspent
as at 30.9.13
Copper Sector
Tuticorin Smelter 400 ktpa EC awaited 367 5 128 239
Aluminium Sector
Lanjigarh Debottlenecking 1.0 mtpa Approval pending, on hold 150 - 77 73
Lanjigarh Refinery (Phase II) 3.0 mtpa Approval pending 1,570 - 808 762
Iron Ore
Sesa Iron Ore mine Expansion (36 mtpa) On hold 500 - 155 345
Total Capex with Optionality 2,587 5 1,168 1,419
Total Capex (Excluding Cairn) 14,443 407 10,451 3,992
Total Capex (Including Cairn) 18,117 630 11,259 6,858
Credit Metrics
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
FY2013 LTM H1 FY2014 Covenant
Net Debt/EBITDA 1.8x 1.9x < 2.75x
EBITDA/Net Interest Expense1 8.4x 7.8x > 4.0x
Tangible Net Worth ($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
41FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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
FY2014 INTERIM RESULTS PRESENTATION - 15 NOVEMBER 2013
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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