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Vedanta Resources Plc FY 2012 Annual General Meeting Presentation

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  • 1. VEDANTA RESOURCES PLCFY 2012 Annual General Meeting 28 AUGUST 2012
  • 2. Cautionary Statement and DisclaimerThe views expressed here may contain information derived from publicly available sources that have not beenindependently verified.No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of thisinformation. Any forward looking information in this presentation including, without limitation, any tables, chartsand/or graphs, has been prepared on the basis of a number of assumptions which may prove to be incorrect. Thispresentation 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. Inthis 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, uncertaintiesarise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations ininterest and or exchange rates and metal prices; from future integration of acquired businesses; and fromnumerous 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 futureresults to be materially different that those expressed in our forward-looking statements. We do not undertake toupdate our forward-looking statements.This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation ofan offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Vedanta or anyof its subsidiary undertakings or any other invitation or inducement to engage in investment activities, nor shallthis presentation (or any part of it) nor the fact of its distribution form the basis of, or be relied on in connectionwith, any contract or investment decision.FY2012 Annual General Meeting - 28 August 2012 2
  • 3. Wide Geographic Footprint South Africa Oil and GasIndia • Block-1 Zinc-lead-silver • Debari smelter Zinc-lead-silver • Chanderiya smelters • Black Mountain • Rampura-Agucha mine • Gamsberg Oil and Gas • Dariba mine, smelters • Rajasthan • Zawar mine Namibia • Cambay • Sindesar Khurd mine • Ravva • East Coast Zinc-lead-silver • West Coast • Skorpion • Sri Lanka Ireland Zinc-lead-silver • Lisheen Liberia Iron ore • Liberia Iron Ore Assets Aluminium • Lanjigarh alumina refinery Zambia • Jharsuguda smelter Copper • Korba smelter and Iron ore • KCM power plant • Goa • BALCO coal block • Karnataka Australia Power Copper • Talwandi Sabo • CMT Copper • Jharsuguda power • Tuticorin • MALCO power plant copper smelter Sri LankaFY2012 Annual General Meeting - 28 August 2012 3
  • 4. FY2012 HighlightsFinancials 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 Total Dividend at 55 US cents per shareCorporate Group simplification creates Sesa Sterlite – on track for completion in CY2012 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 FY2014Note: 1. Excludes Copper Custom Smelting operations 2. Free Cash Flow before Growth Capex 3. Subject to approvalsFY2012 Annual General Meeting - 28 August 2012 4
  • 5. FY2012 HighlightsOperations 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 & GasSustainability New sustainability framework rolled out LTIFR reduced by 10% over last year Doubled water recycling across the GroupFY2012 Annual General Meeting - 28 August 2012 5
  • 6. Delivering on Strategic Priorities Delivered in FY2012 Focus for FY2013 Cairn India and Zinc-Intl Rajasthan ramp-up to significant GROWTH integrated part of 240kbopd1 in CY2013; Liberia Iron Ore assets acquired progress towards basin potential of 300kbopd1 16moz Silver capacity at Zinc- Organic Growth, India Ramp-up at Konkola and Power Value Accretive Progressed on organic growth Next leg of growth M&A projects Simplification of the Group Complete the simplification of the UNLOCK structure announced Group structure VALUE Exploration success Adding R&R Low cost advantage maintained Reduce gearing through strong Free Optimise Returns Cash Flow post capex Long Term Value Creation with a Focus on SustainabilityNote: 1. Subject to approvalsFY2012 Annual General Meeting - 28 August 2012 6
  • 7. Responsible Stewardship – Health & Safety Health Safety Investing in technologically advanced Goal is to reach & sustain “Zero Harm” processes that reduce possible 48% reduction in LTIFR in last five exposure levels at work area years Focused programme on elimination of Regular medical check ups - Over unsafe conditions across units 87,000 medical examinations conducted Exco sub-committee on sustainability in FY2012 formed - current focus is on safety performance Monitoring and review of industrial 134,000 man hours of safety training hygiene parameters such as noise imparted last year exposure, illumination levels and Targeting LTIFR less than 0.80 in manual handling FY2013 and less than 0.50 by FY2016 Vedanta is committed to providing a safe, injury-free and healthy place to workFY2012 Annual General Meeting - 28 August 2012 7
  • 8. Responsible Stewardship – Environment Water Doubled water recycling to 55.7MCM in FY2012 14.5MCM of rainwater harvested in FY2012 Energy Energy saving target for FY2013 is 3.9mn GJ, equivalent to 120MW power station Climate Change 273MW wind power capacity 61MW generated from waste heat 16.2% decrease in GHG emissions (scope 1 & 2) per total revenue Solid Waste More than 70% of non-hazardous waste generated is constructively utilised Extensive research with best institutes in India to constructively utilize Jarofix and Red mud Vedanta is committed to mitigating the environmental impact of our activitiesFY2012 Annual General Meeting - 28 August 2012 8
  • 9. Adding and Sharing Value – Our Communities Community programmes reaching 3.1 million people Community spend of US$38 million in FY 2012 Working in partnership with 149 NGO’s and academic institutions Focus areas– Child Care, Education, Women Empowerment, Sustainable Livelihood , Health Water & Sanitation and Bio-Investment US$4.4 billion total contribution to government exchequers 350 bed Cancer Research Hospital at Raipur - US$61mn investment Working in partnership with our communities is an integral part of our strategyFY2012 Annual General Meeting - 28 August 2012 9
  • 10. Assurance – Scott Wilson Vedanta sustainability framework of policies and technical standards completed The framework has been reviewed independently for compliance with the IFC performance standards, the ICMM guidelines and the UN Global Compact Scott Wilson – 17 points closed, 6 points awaiting review for closure, 4 to be closed by the end of year − Final sign off by June 2013 Formalizing our approach to international standards and best practicesFY2012 Annual General Meeting - 28 August 2012 10
  • 11. Sustainability: Our approach Embed sustainable development into every aspect of what we do To improve our health and safety performance for a safer, more secure and healthier environment To contribute further and in a more targeted way to local communities To continue to manage and minimize our impact on air, water and land To maintain a dialogue with stakeholders to help us further understand what is needed to help support a sustainable society and planetFY2012 Annual General Meeting - 28 August 2012 11
  • 12. Summary Business model based on growth, value Year End Capacity creation and continuous improvement (in copper equivalent kt) Zinc-Lead Silver Iron Ore Copper Strong focus on sustainability Aluminium Power Oil&Gas 4,000 World-class diversified portfolio of large, structurally low-cost assets with long mine- 3,500 life − Recent acquisitions provide additional 3,000 growth options 2,500 Strong cash flow growth driven by 2,000 substantially invested projects 1,500 Group simplification on track for completion 1,000 in CY2012 500 0 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015Note: 1. All metal and power capacities rebased using average Copper LME and Commodity prices for FY2012 2. Copper custom smelting capacities rebased at TC/RC for FY2012FY2012 Annual General Meeting - 28 August 2012 12

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