VEDANTA RESOURCES PLCPreliminary Results Presentation for year ended 31 March 2012         17 MAY 2012
Cautionary Statement and DisclaimerThe views expressed here may contain information derived from publicly available source...
Overview      Navin AgarwalDeputy Executive Chairman
FY2012 HighlightsFinancials        EBITDA of $4.0bn; EBITDA margin 41%1        Underlying EPS of $1.42        Free Cash Fl...
Industry Landscape - the Vedanta Advantage           Sector Theme                                             Vedanta Posi...
Tier-1 Diversified Asset Portfolio                                               FY2012                                   ...
Delivering on Strategic Priorities                                                Delivered in FY2012                     ...
Delivering Free Cash FlowCash Flow and Capex Profile - $bn1                                                               ...
Industry-Leading GrowthTop Global Diversified                                                                             ...
Financial Results       D D Jalan Chief Financial Officer
Financial Highlights                                                                                                      ...
EBITDA ReconciliationFY2012 vs. FY2011 ($mn)                                                                              ...
EBITDA to PATFY2012 ($mn)     4,026                         (1,408)                                                (230)  ...
Strong Financial Profile         Cash and Liquid Investments of $6.9bn, with additional $2.9bn undrawn lines of credit    ...
Business Review     M.S. MehtaChief Executive Officer
EBITDA: Continued Growth and Diversification                                                                              ...
Sustainability – Integral to our Business   48% reduction in LTIFR over 5 years                                      LTIFR...
Creating Long Term Value Through Exploration         Zinc-India                                     Zinc-Intl             ...
Cairn India - Delivering Growth and Cash FlowsProduction Growth - Rajasthan                                     Rajasthan ...
Cairn India        Acquisition completed in December 2011                          Rapid Production Growth                ...
ZincZinc-India                                                                           Production and Cash Costs        ...
Iron OreIndia                                                       Production and Sales (mn DMT)   Net addition of 68mt o...
Copper-IndiaCopper India/Australia                                  Production and Cash Costs   Strong volume and cost per...
Copper-ZambiaCopper Zambia                                                  Production and Cash Costs   Integrated product...
Aluminium        Record Alumina and Aluminium production                     Volumes and Cash Costs        −        Value ...
Aluminium Industry Dynamics   Input cost inflation globally in 2011                   Aluminium Cost Curve ($/t)   −   LME...
Power   Sales significantly higher reflecting commissioning of   Sales and Cash Costs   new capacity at 2,400MW Jharsuguda...
Summary        World-class diversified portfolio of large, structurally                                                   ...
Appendix
Entity Wise Financials – FY2012                                                                                           ...
Entity-Wise Cash and Debt DetailsNet Debt Summary ($mn)                                                                 31...
Net Debt ReconciliationFY2012 ($mn)                                                                                       ...
Credit Metrics                                                                                           FY2011   FY2012  ...
EBITDA SensitivitiesCommodity prices – Impact of a 10% increase in Commodity Prices (LME/Prices in $/t, or as stated)     ...
Sales SummarySales volume                                                      FY2011                FY2012               ...
Group Structure Simplification - Timeline               Status   Event                                                    ...
Proposed New Group Structure                                                                               Vedanta Resourc...
Vedanta Group Structure                                                                             Vedanta Resources     ...
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Vedanta Resources Plc Preliminary Results Presentation for year ended 31 March 2012

  1. 1. VEDANTA RESOURCES PLCPreliminary Results Presentation for year ended 31 March 2012 17 MAY 2012
  2. 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 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 2
  3. 3. Overview Navin AgarwalDeputy Executive Chairman
  4. 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 Final Dividend at 35 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 FY2014Operations 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 & GasNote: 1. Excludes Copper Custom Smelting operations 2. Free Cash Flow before Growth Capex 3. Subject to approvalsFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 4
  5. 5. Industry Landscape - the Vedanta Advantage Sector Theme Vedanta PositioningGrowing Metals and Energy DemandGrowing Metals and Energy Demand Driven by emerging markets Significant production growth in key commodities Proximity to emerging marketsSupply-Side HeadwindsSupply-Side Headwinds Operating costs: wage and energy cost Low-cost advantage: high quality assets, competitive inflation, declining grades labour cost and integrated approach Many large mines nearing end-of-life Long-life assets with further exploration upsideProject Delivery ChallengesProject Delivery Challenges Capital costs and timelines Growth projects significantly invested, and ramping-up Investment vs. return of capital Vedanta at inflection point with strong returns driven by volume growthRegulationRegulation Regulatory and fiscal changes Substantial contributor to economies and communities Regional issues occurring globally Partnering with GovernmentFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 5
  6. 6. Tier-1 Diversified Asset Portfolio FY2012 Production Capacity R&R Life1 Sustainable Cost Position Zinc India Zinc India 830kt 1mtpa 25+ Lowest Quartile Zinc Intl Intl. Zinc 444kt 400ktpa 20+ Lower Half SilverSilver 7.8moz 16moz pa 25+ By-product 2 Oil and & Gas Oil Gas 173kboepd 260kboepd 17 Lowest Quartile Iron Ore Ore3 Iron 13.8mt 20.5mtpa 18 Lowest Quartile 4 Copper Zambia Copper 200kt 400ktpa 24+ Lower Half Currently Lower Half; Aluminium Aluminium 675kt 2.3mtpa Lowest Quartile with Captive Bauxite Large, Low-Cost, Long-Life, Scalable AssetsNote: 1. At capacity 2. Capacity expected for the current producing assets, subject to approvals 3. Excluding Liberia 4. Mine life of Konkola DeepsFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 6
  7. 7. Delivering on Strategic Priorities Delivered in FY2012 Focus for FY2013 Cairn India and Zinc-Intl integrated Rajasthan ramp-up to significant part of 240kbopd1 in CY2013; progress towards basin GROWTH Liberia Iron Ore assets acquired potential of 300kbopd1 16moz Silver capacity at Zinc-India Recovery of Iron Ore volumes, and ramp-up Organic Growth, Progressed on organic growth projects at Konkola and Power Value Accretive M&A Next leg of growth – Liberia, Gamsberg, Zinc- India Simplification of the Group structure Complete the simplification of the Group announced structure UNLOCK VALUE Exploration success at Oil & Gas, Iron Adding R&R at Oil & Gas, Iron Ore, and Zinc Ore, and Zinc Continued focus on securing Coal and Bauxite Optimise Returns Low cost advantage maintained Reduce gearing through strong Free Cash Flow post capex Long Term Value Creation with a Focus on SustainabilityNote: 1. Subject to approvalsFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 7
  8. 8. Delivering Free Cash FlowCash Flow and Capex Profile - $bn1 Year-end Capacity (in Copper Equivalent - kt)3 Free Cash Flow² Capex-ex-Cairn Capex-Cairn Zinc-Lead Silver Iron Ore Copper Aluminium Power Oil & Gas 4,000 3,500 3,000 0.5 1.2 2,500 1.1 3.7 2,000 3.1 1,500 2.5 2.3 2.2 1.8 1.9 1,000 1.7 1.4 500 0FY2010 FY2011 Proforma FY2013e FY2014e FY2015e FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY2012 Free Cash Flow at an Inflection PointNotes: 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 FY2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 8
  9. 9. Industry-Leading GrowthTop Global Diversified Industry-Leading GrowthNatural Resources Companies (Copper Equivalent FY2012 to FY2015 CAGR)3 EBITDA Market cap (CY11 - $bn) ($bn) BHP Billiton 38.5 176.8 Vedanta Vale 33.8 109.4 Sesa Sterlite Rio Tinto 28.5 99.1 Vale Glencore Xstrata1 16.2 79.2 Glencore-Xstrata Anglo American 13.3 46.9 BHP Billiton Vedanta2 5.9 5.4 Rio Tinto Teck 5.5 19.6 ENRC Sesa Sterlite2 5.3 - ENRC 3.4 11.2 Anglo American 0% 5% 10% 15% 20%Source: Company filings and broker reports. Market data as of 10 May 2012Note: 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.FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 9
  10. 10. Financial Results D D Jalan Chief Financial Officer
  11. 11. Financial Highlights FY2012 proforma with$mn or as stated FY2012 FY2011 Change CairnEBITDA 4,026 3,567 13% 5,353EBITDA margin1 (%) 40.6% 44.6% - 46.7%Underlying Attributable PAT2 387 715 (46)% 571Underlying EPS($/share)2 1.42 2.63 (46)% 2.09Free Cash Flow before Growth Capex 2,534 2,347 8% 3,128Growth Capex3 2,398 2,517 (5)% 2,728Total Dividend (USc/share) 55.0 52.5 5%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 capexFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 11
  12. 12. EBITDA ReconciliationFY2012 vs. FY2011 ($mn) 160 978 39 (126) (201) 37 4,026 3,567 (428) 61% Commodity linked EBITDA New Assets¹ Price Volume excl. Volume Export Duty Cash Cost Others EBITDA FY 2011 Iron Ore Iron Ore FY 2012Notes: 1. Includes $265mn from Zinc-Intl and $713mn from Cairn India. Cairn India is accounted for as a subsidiary from 8 December 2011.FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 12
  13. 13. EBITDA to PATFY2012 ($mn) 4,026 (1,408) (230) (420) (314) 92 1,229 (517) 77% Underlying Minority Interest 387 60 (1,169) EBITDA Depreciation Special Net Interest FX and Tax Profit from PAT including Minority Attributable Underlying and Items Expense Embedded Associates Associates Interest PAT Attributable Amortization Derivatives PAT¹Notes: 1. Profit for the year after adding back special items and other gains and losses, and their resultant tax and minority interest effectsFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 13
  14. 14. 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 – $250mn already refinancedDebt Maturity Profile as of 31 March 2012 ($bn)2 4.5 4.1 $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 3.2 2.3 2.7 0.3 2.4 3.1 0.5 1.3 3.0 1.5 0.7 2.2 1.3 1.0 0.4 0.5 0.1 0.3 FY2013 FY2014 FY2015 FY2016 FY2017³ FY2018 and later Debt at VED plc Debt to be transferred from VED plc to Sesa Sterlite Debt at SubsidiariesNotes: 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)FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 14
  15. 15. Business Review M.S. MehtaChief Executive Officer
  16. 16. EBITDA: Continued Growth and Diversification Proforma FY2012 FY2011 FY2012 with Cairn India for Full Year Power Aluminium Power Aluminium 2% 3% Oil & Gas Power Aluminium 3% 4% Copper 38% 4% 7% Oil & Gas 13% Copper 18% 17% CopperIron Ore 19% 33% Iron Ore 18% Zinc-Int. Zinc-India Zinc-India Zinc-India 3% 34% Zinc-Int. 31% 23% 9% Iron Ore Zinc-Int. 14% 7% EBITDA: $3.6 bn EBITDA: $4.0bn EBITDA: $5.4bn +13% +50%FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 16
  17. 17. Sustainability – Integral to our Business 48% reduction in LTIFR over 5 years LTIFR -48% − Structured programs in place to enhance safety and prevent fatalities Climate Change 1.9 1.7 1.5 − Continued improvement in specific energy and water consumption 1.1 1.0 − Participated in Carbon Disclosure Project 2011: Sesa Goa received 7th position in India FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Green Energy Specific Water Consumption − Operating 274MW wind power BALCO (m3/MT) − Generating 61MW from waste heat -75% New Sustainability Framework rolled-out − New policies and technical standards rolled-out 15.6 14.2 − Exco Sustainability Sub-Committee formed to enhance sustainability 7.2 3.9 focus FY 2009 FY 2010 FY 2011 FY 2012 − 17 of 29 Scott Wilson recommendations implemented, others on schedule Specific Energy Consumption Community programs covering 3.1million people HZL Smelters (GJ/MT) -15% − Jointly working with NGOs, administration, and beneficiaries, supported by a strong team of CSR personnel and extension workers. 19.0 Focus: Health and Nutrition, Education, Women Empowerment, 17.0 16.9 − 16.3 16.2 Water & Sanitation, and Sustainable Livelihood FY 2008 FY 2009 FY 2010 FY 2011 FY 2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 17
  18. 18. Creating Long Term Value Through Exploration Zinc-India Zinc-Intl Iron Ore Copper-Zambia Oil & Gas Added 3x times Added mine life at India R&R increased to R&R replacement mined out in all three assets 689mt from 457mt ratio of 1.75x in Added net 68mt in FY2012 at acquisition FY2012 FY2012, 18 year Current mine life: Added 4.8x times mine life at current Potential resource 24+ year mine life mined out since IPO − Skorpion: capacity with high grade at increased to 7.3 5+years1 R&R increased to KDMP billion boe gross in R&R increased from 332mt, from 144mt − BMM: 10+years place from 6.5 190mt2 at at Vedanta IPO − Lisheen: 3years billion boe gross in acquisition to place at Rajasthan 25+year mine life 374mt – added 3.4x with 10%+grades 186mt Gamsberg times mined out deposit feasibility Exploration success study underway at Sri Lanka and Liberia Nagayalanka 1bn tonnes R&R 17 year R&R life − Aeromagnetic study completed − Initial drilling indicates potential upside Creating Long Term Value through ExplorationNotes: 1. With some additional work for conversion of resources to reserves 2. 120mt excluding Orissa from Sesa Goa acquisition, and 70mt from Dempo acquisitionFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 18
  19. 19. Cairn India - Delivering Growth and Cash FlowsProduction Growth - Rajasthan Rajasthan Gross Production (bopd) 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 300kbopd1Exploration Growth Significant 300,0001 part of Basin Diversity of basin, plays and environments 240,0001 Potential − Exploration success ratio ~50% in CY2013 Barmer Hill Achieved reserve & resource replacement ratio of 175% Primarily during the year 175,000 Further from MBA exploration Currently Net unrisked exploration potential for the portfolio at Aishwariya 2.1bn boe Mangala towards 150kbopd end CY2012 Significant exploration upside at Rajasthan 125,000 at Acquisition Bhagyam Successful discoveries at Sri Lanka and KG-ONN-2003/1 completion upto 40kbopd Mangala 125kbopdNote: 1. Subject to approvalsFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 19
  20. 20. Cairn India Acquisition completed in December 2011 Rapid Production Growth Production − Integration completed (Gross Production in kboepd) FY2011 FY2012 − Announced Dividend Policy of ~20% payout of net Average Daily Gross Operated 149,103 172,887 income Production (boepd) Rajasthan 100,993 128,267 Ravva 36,942 36,379 Cairn India production and contribution Cambay 11,169 8,242 − Average daily gross operated production in FY2012 at Average Daily Working Interest 83,474 101,268 172,887 boe Production (boepd) − Reduced India’s crude oil import dependency by Rajasthan 70,695 89,787 ~US$6bn on a gross basis Ravva 8,312 8,185 Cambay 4,468 3,297 EBITDA1 - 713 Rajasthan potential increased to 7.3bn boe gross in place Note: 1. Numbers post acquisition from 6.5 billion boe gross in place since acquisition announcement EBITDA2 ($mn) − Recoverable risked prospective resource estimated at 530 mmboe gross Development − Rajasthan EOR Pilot on track; booked 70 mm bbls as Proved & Probable Reserves 581 450 467 − Barmer to Salaya section of the pipeline being debottlenecked and augmented − Ravva infill drilling completed, decline rate slowed Q2FY2012 Q3FY2012 Q4FY2012Note: 1. Subject to approvals Note: 2. Numbers in Indian GAAP as reported by Cairn India LtdFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 20
  21. 21. ZincZinc-India Production and Cash Costs Record production of refined Zinc, Lead and Silver Zinc-India FY2011 FY2012 − Maintained lowest quartile cost position Mined Metal (kt) 840 830 Strong ramp-up of lead and silver production Refined Zinc (kt) 712 759 Refined Lead (kt)1 63 99 − Silver rich 2mtpa SK mine at 90% utilization Silver – Integrated (moz)1 5.75 7.61 − Silver contributed $210mn EBITDA Zinc CoP2 ($/t) 808 834 − 11.3moz Integrated silver production in FY2013 27mt gross addition to R&R in FY12 FY2011 Zinc-International post acq’n FY2012 − More than 25 years mine life Mined Metal – Lisheen & BMM (kt) 44 299 Refined Zinc – Skorpion (kt) 50 145Zinc-International CoP ($/t) 1,129 1,165 Stable operating performance Notes: 1. Includes captive consumption 2. Excluding royalty Exploration: Mine life extended at all three assets EBITDA ($mn) − Skorpion: 5+ year mine life1 India International − BMM: 10+ year mine life 1,611 1,321 − Lisheen: 3 year mine life 101 366 186mt Gamsberg project: 1,220 1,245 − Feasibility study to complete in current quarter − Targeting mine production in 2 years FY 2011¹ FY 2012Note: 1. With some additional work for conversion of resources to reserves Note: 1. For the period post acquisitionFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 21
  22. 22. Iron OreIndia Production and Sales (mn DMT) Net addition of 68mt of R&R Iron Ore FY2011 FY2012 − Total R&R of 374mt, implying 18 year mine life Sales1 18.1 16.0 Operating performance affected by Goa 14.4 13.3 Karnataka 2.1 2.7 − Logistics bottlenecks at Goa: Expanding roads and developing new corridors Orissa 1.7 - − Karnataka mining ban: process underway to Production 18.8 13.8 resuming mining Pig iron - Production (kt) 276 249 Margins affected by 30% export duty from Dec 2011 Note: 1. Iron ore sales includes captive consumption of 0.30 mt each in FY2011 and FY2012 Commissioning of 375kt Pig Iron expansion project in current quarter EBITDA ($mn)Liberia Aeromagnetic survey completed and scoping study near completion − Indicates significant upside to earlier estimated resource base of 1bn tonne 1,174 Targeting first shipment in FY2014 721 FY 2011 FY 2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 22
  23. 23. Copper-IndiaCopper India/Australia Production and Cash Costs Strong volume and cost performance Copper India/Australia FY2011 FY2012 Mined Metal 23 23 EBITDA up 24% - driven by higher volumes, better Refined Metal – India (kt) 304 326 by-product credits, and higher Tc/Rc Conversion cost – India (c/lb) 4.0 0.0 Higher smelter availability through technology and process improvements 160MW CPP Project - mechanical completion of first 80MW achieved EBITDA ($mn) Copper Australia Copper India 298 240 239 166 73 59 FY 2011 FY 2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 23
  24. 24. Copper-ZambiaCopper Zambia Production and Cash Costs Integrated production up 5% Copper Zambia FY2011 FY2012 − Commissioned 2900level high speed tramming facility Mined Metal 144 142 increasing mine development pace Refined Metal – Integrated 133 139 − Copper smelter recovery at 98.5% Refined Metal - Custom Smelting 84 61 − Costs affected by higher power, fuel and labour costs CoP – Integrated ($/lb) 1.97 2.37 − UOB – trial mining successfully completed, confirmed higher grades of Copper and Cobalt Commissioned during the year − 2nd Cobalt Recovery Furnace commissioned in Q4, fully ramped-up in April − 7.5mt East Mill commissioned in Q4, ramping-up − TLP-IV debottlenecking to 75ktpa completed EBITDA ($mn) 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 440 388 − Bottom shaft loading at KDMP by Q3 - Platform for 25-30% year-on-year growth in mined metal − Start regular mining at UOB FY 2011 FY 2012 − 175kt Integrated ProductionFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 24
  25. 25. Aluminium Record Alumina and Aluminium production Volumes and Cash Costs − Value added product sales up 25%, at c.400kt Aluminium and Alumina FY2011 FY2012 Aluminium Production (kt) 641 675 BALCO 255 246 Resumed efficient operations at VAL in H2, following VAL 385 430 a power outage in H1 Aluminium COP ($/t) 1,878 2,091 BALCO 1,784 1,922 − Reduced specific consumption of power and VAL 1,940 2,188 carbon Alumina Production (kt) 707 928 − Significantly lower COP in H2, with Q4 COP at Alumina COP ($/t) 326 350 $1,930/t despite input cost pressures Power – BALCO 270MW (mu) Sales 1,623 1,605 − Q4 COP in second quartile of cost curve, without Realisation (Rs/unit) 3.4 3.2 bauxite linkage COP (Rs/unit) 1.9 2.2 EBITDA ($mn) Working with government on bauxite allocation BALCO projects − 1200MW CPP: 1st Unit synchronization in Q1FY2013 353 − 325ktpa smelter – first metal in Q3 FY2013 182 − Captive coal mining in FY20131 FY 2011 FY 2012Note: 1. Subject to approvalsFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 25
  26. 26. Aluminium Industry Dynamics Input cost inflation globally in 2011 Aluminium Cost Curve ($/t) − LME below c1 costs of c.50% of global capacity 3,000 − Capacity cuts by several marginal cost smelters BALCO1 - $1,919/t − Correction in input prices seems inevitable VAL1 - $1,930/t 2,500 VAL and BALCO are in 2nd quartile of cost curve in Q4FY2012 − EBITDA margin in Q4, in-line with peers 2,000 − Cost efficient even without bauxite linkage Second Quartile - $2,057/t Committed to an integrated Aluminium strategy First Quartile - $1,761/t Third Quartile - 2,272/t 1,500 − Well invested plant with world-class technology and infrastructure at benchmark project costs − Strategic location in Eastern India: Proximity to Bauxite and Coal deposits 1,000 500 0 10 20 30 40 50 60 70 80 90 100 Cumulative Production (Percentile) Source: Wood-Mackenzie CY2012Q1 C1 Cost Estimates, Company sources for VAL and BALCO Note: 1. Q4 FY2012 COPFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 26
  27. 27. Power Sales significantly higher reflecting commissioning of Sales and Cash Costs new capacity at 2,400MW Jharsuguda power plant FY2011 FY2012 − Three 600MW units operational Total Sales (mu) 1,878 6,554 − 4th unit under trial runs, to be commissioned in SEL (mu) 8561 5,6382 current quarter Others3 1,022 916 − 65% average plf expected for all units in FY2013 Average realisation (USc/u) 9.7 7.5 Average cost of generation (USc/u) 6.2 5.5 Average realisation (INR/u) 4.44 3.61 Continuous operational improvement at Jharsuguda Average cost of generation (INR/u) 2.81 2.63 − Q4 cost lower at INR2.26/unit Notes: 1. Includes 646mu generated under trial run 2. Includes 926mu generated under trial run 3. MALCO 100MW & WPP274MW − On track to further reduce specific coal consumption EBITDA ($mn) 1st 660 MW unit of 1,980MW Talwandi Sabo on track for commissioning by Q4 FY2013 122 44 FY 2011 FY 2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 27
  28. 28. Summary World-class diversified portfolio of large, structurally Year End Capacity low-cost assets with long mine-life (in copper equivalent kt) Zinc-Lead Silver Iron Ore Copper Strong cash flow growth driven by substantially Aluminium Power Oil&Gas invested projects 4,000 Recent acquisitions provide additional growth options 3,500 Group simplification on track for completion in CY 3,000 2012 2,500 2,000 1,500 1,000 500 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 H1 FY2012 2. Copper custom smelting capacities rebased at TC/RC for H1 FY2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 28
  29. 29. Appendix
  30. 30. Entity Wise Financials – FY2012 SIIL VED Zinc- (incl SEL & Cairn VED Others and Cairn IndiaFY2012 ($mn or as stated) Consol HZL Intl Sesa CMT) KCM BALCO VAL TSPL India Plc1 Elimination (Associate)EBITDA 4,026 1,274 366 722 296 388 120 62 86 713 0 (1)Depreciation (927) (127) (119) (50) (45) (143) (44) (164) (51) (180) (6) 2Amortization (481) (7) (118) (177) (13) (166)Special Items (230) (9) (2) (14) (89) (24) (1) (31) (59) (3)Net Interest Income (Expense) (420) 310 (3) (27) 158 (51) 2 (356) (30) 16 (235) (205)FX and Embedded Derivative MTM (314) 4 3 2 (48) (160) (45) 3 (73)Share of Profit in Associates 92 922Profit before Tax 1,745 1,441 131 458 322 170 16 (618) (40) 351 (297) (280) 92Tax (517) (294) (16) (147) (87) (51) 8 104 (5) (29)Profit after Tax 1,229 1,147 115 311 234 119 24 (618) (40) 455 (302) (308) 92Attributable (%) 4.9 37.6 53.9 55.1 58.0 79.4 29.6 87.6 58.0 49.8 100.0 91.8 70.9Attributable PAT 60 432 62 171 136 94 7 (541) (23) 242 (302) (283) 65Underlying Attributable PAT 387 434 60 175 170 108 17 (401) 3 255 (246) (253) 65As of 31 March 2012Property Plant and Equipment3 17,575 1,773 624 567 487 2,082 1,871 5,460 2,322 2,371 58 (40)Mining Reserve 6,265 74 319 1,185 21 32 4,634Exploratory Assets 10,758 183 176 42 10,357Note: 1. Includes Vedanta plc and Investment companies at 100% attributable and MALCO at 94.8% attributable 2. Represents a total holding of 28.8% of Cairn India 3. Includes Capital Work in ProgressFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 30
  31. 31. Entity-Wise Cash and Debt DetailsNet Debt Summary ($mn) 31 Mar 2011 30 Sep 2011 31 Mar 2012Company Debt Cash & LI1 Net Debt Debt Cash & LI1 Net Debt Debt Cash & LI1 Net DebtVedanta 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 51Sterlite 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 3,420Copper Zambia 256 6 250 765 - 765 750 42 709Sesa Goa 212 2,194 (1,982) 867 220 648 681 118 564MALCO - 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 10,0645Note: 1. Liquid Investments 2. Includes Investment Companies 3. Includes $5 million debt related derivative 4. Includes $2 million debt related derivative 5. Includes $6 million debt related derivativeFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 31
  32. 32. Net Debt ReconciliationFY2012 ($mn) 558 7,248 10,064 (2,920) Cairn India2 7,097 364 60 386 Liberia 90 2,398 Other 61 1,970 Opening Net Project Capex Sustaining Shareholder Subsidiary Acquisitions Others Cash Flow Closing Net Debt Capex and Minority share from Debt (1 Apr 2011) Dividends purchases Operations¹ (31 Mar 2012)Note: 1. Excluding sustaining capex 2. Net of cash and liquid investments at acquisitionFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 32
  33. 33. Credit Metrics FY2011 FY2012 CovenantNet Debt/EBITDA 0.55 x 1.9 x < 2.75 xEBITDA/Gross Interest Expense1 5.0 x 4.5 x > 4.0 xTangible Net Worth ($bn) 5.5 4.5 > 3.0Net Assets/Debt 2.61 x 2.47 x > 1.75 xGearing2 13% 35%Note: 1. Interest includes Capitalized Interest 2. Gearing is calculated as Net Debt divided by the sum of Net Debt and EquityFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 33
  34. 34. EBITDA SensitivitiesCommodity prices – Impact of a 10% increase in Commodity Prices (LME/Prices in $/t, or as stated) FY2012 FY2012 EBITDACommodity Average price ($mn)Oil ($/bbl) 114 247Zinc 2,098 221Aluminium 2,313 162Copper 8,475 140Iron Ore 76 121Lead 2,269 37Silver ($/oz) 35.3 24Foreign Currency - Impact of a 10% depreciation in Closing FX Rate FY2012 FY2012 EBITDACurrency Average FX rate ($mn)INR/USD 47.9458 195FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 34
  35. 35. Sales SummarySales volume FY2011 FY2012 Sales volume FY20112 FY2012Zinc-India Sales Iron-Ore SalesRefined Zinc (kt) 713.1 758.5 Goa (mn DMT) 14.4 13.3Refined Lead (kt) 56.9 91.7 Karnataka (mn DMT) 2.1 2.7Zinc Concentrate (DMT) 66.0 - Orissa (mn DMT) 1.7 -Lead Concentrate (DMT) 38.5 10.1 Total (mn DMT) 18.1 16.0Total Zinc (Refined+Conc) kt 779.1 758.5 MetCoke (kt) 265.7 251.7Total Lead (Refined+Conc) kt 95.3 101.8 Pig Iron (kt) 266.1 250.6Total Zinc-Lead (kt) 874.5 860.3 Copper-India SalesSilver (moz) 4.7 6.6 Copper Cathodes (kt) 116.6 159.0Zinc-International Sales1 Copper Rods (kt) 186.7 161.5Refined Zinc (kt) 47.3 152.8 Sulphuric Acid (kt) 520.8 594.9Zinc Concentrate (MIC) 28.8 216.8 Phosphoric Acid (kt) 158.7 151.7Total Zinc (Refined+Conc) 76.1 369.6 Copper-Zambia SalesLead Concentrate (MIC) 19.4 84.0 Copper Cathodes (kt) 214.5 200.9Total Zinc-Lead (kt) 95.5 453.6 Power Sales (mu)Aluminium Sales SEL 856 5,638Sales - Wire rods (kt) 219.7 267.2 Non-SEL 1,023 916Sales - Rolled products (kt) 60.1 64.0 Total sales 1,879 6,554Sales - Busbar and Billets (kt) 38.3 66.0 BALCO 270 MW 1,623 1,605Total Value added products (kt) 318.1 397.2 Power Realisations (USc/mu)Sales - Ingots (kt) 315.0 271.8 SEL 6.8 7.2Sales - Total (kt) 633.0 669.0 Non-SEL 10.3 9.4Copper-Zambia Sales Average Realisations 9.7 7.5Copper Cathodes (kt) 214.5 200.9 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 5.5Note: 1. For the period post-acquisition by Vedanta BALCO 270 MW 4.1 4.5 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 segmentsFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 35
  36. 36. 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 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 2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 36
  37. 37. Proposed New Group Structure Vedanta Resources Divisions of Sesa Sterlite 79.4% 58.3% Iron Ore (Sesa Goa) Konkola Copper Smelting (Tuticorin) Copper Sesa Sterlite Mines (KCM) Power (2,400MW Jharsuguda) Aluminium (VAL aluminium assets) Subsidiaries of Sesa Sterlite 58.9% 64.9% 51% 51% 100% 100% 100% 100% Skorpion & VAL Power Bharat Western Talwandi Australian Zinc-India Lisheen - and MALCO Cairn India Aluminium Cluster Sabo Power Copper (HZL) 100% Power (BALCO) (Liberia) (1,980MW) Mines BMM -74% (1,405MW) Option to Option to Option to Zinc- increase stake increase stake increase stake International to 94.4% to 100% to 100% Listed entities Unlisted entitiesNote: Shareholding based on basic shares outstandingFY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 37
  38. 38. Vedanta Group Structure Vedanta Resources (Listed on LSE) 79.4% 70.5% 54.6% 94.8% 55.1% 38.7% Konkola Vedanta 29.5% Sterlite Industries 3.6% Madras Sesa Goa 20.1% Cairn India Ltd Copper Aluminium (Listed on BSE, Aluminium (Listed on BSE (Listed on BSE Mines (KCM) (VAL) NSE and NYSE) (MALCO) and NSE) and NSE) 51.0% 64.9% 100% 74% 100% 100% 51% Bharat Zinc-India(HZL) Skorpion and Black Australian Liberia Aluminium (Listed on BSE Sterlite Energy Lisheen Mountain Copper Mines Iron Ore Assets (BALCO) and NSE) Zinc-InternationalKEY Aluminium Copper Iron ore Power Zinc-India Zinc-International Oil & GasNote: Structure as at 31 March 2012FY2012 PRELIMINARY RESULTS PRESENTATION - 17 MAY 2012 38

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