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Vedanta Resources Plc India Operations Site Visit: Corporate Presentation
This document provides an overview and agenda for Vedanta Resources PLC's India operations site visit on September 24, 2012. It includes a cautionary statement about forward-looking information. The agenda covers Vedanta's market positioning, business operations, financials, and sustainable development. It also outlines the site visit itinerary to various Vedanta operations in India over four days.
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Vedanta Resources Plc India Operations Site Visit: Corporate Presentation
- 1. VEDANTA RESOURCES PLC IndiaOperations Site Visit: Corporate Presentation 24 SEPTEMBER 2012
- 2. Cautionary Statement andDisclaimer 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. FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 2
- 3. Agenda Overview Navin Agarwal, Deputy Executive Chairman Vedanta Market Positioning M.S. Mehta, Chief Executive Officer Business and Operations Financials D.D. Jalan, Chief Financial Officer Sustainable Development Tony Henshaw, Chief Sustainability Officer FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 3
- 4. Site Visit Itinerary Tuesday- 25 September India Operations Site Visit 1. Jharsuguda Aluminium S.K. Roongta and Power plants CEO, Aluminium and Power Zinc-Lead-Silver • Rampura Agucha mine • Dariba smelters • Sindesar Khurd mine Wednesday - 26 September 2. Rampura Agucha mine Akhilesh Joshi CEO, Hindustan Zinc 3 Agucha, Dariba smelters Barmer Zinc India 2 Dariba, Sindesar Khurd Sindesar Khurd mine Oil & Gas • Rajasthan Jharsuguda 1 Power Thursday - 27 September Mumbai • Jharsuguda power 3. Rajasthan (Mangala) P. Elango Interim CEO, Cairn India 4 Aluminium oil fields • Jharsuguda smelter Oil & Gas Goa Iron Ore • Goa Friday - 28 September P. K. Mukherjee 4. Goa Iron ore mines CEO, Sesa Goa Iron Ore FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 4
- 5. Overview Navin Agarwal Deputy Executive Chairman
- 6. Highlights Vedanta:A Global Diversified Natural Resources Major World-class portfolio of large, structurally low-cost, scalable assets with long life of R&R Strong financial profile supported by diversified cash flow growth Delivering industry-leading production growth driven by substantially invested projects Recent acquisitions provide additional growth options EBITDA (US$mn) Free Cash Flow (US$mn) Underlying EPS (USc/share) +42% CAGR +32% CAGR +29% CAGR 5,353 3,128 209 323 335 27 FY2004 FY2012 FY2004 FY2012 FY2004 FY2012 proforma proforma proforma Note: FY2012 numbers are proforma with Cairn India for full year FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 6
- 7. Strategic Priorities Deliver industry-leading production growth across our portfolio Continue to add reserves and resources to drive long-term value Complete the simplification of the Group structure Minority buyouts at HZL and BALCO Reduce gearing from free cash flow Growth and Long-Term Value Creation with a Focus on Sustainability FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 7
- 8. Optimising Group Structure Restructuringon track for completion in CY2012 Consolidates and simplifies group structure, Vedanta Resources eliminates cross-holdings Financial Benefits: − Delivers significant synergies upto $200mn/yr 79.4% 58.3% − Improves capital structure Konkola − Improves allocation and cost of capital Copper Sesa Sterlite Mines − Enhances fungibility of cash − Enhances visibility of earnings and cash flows Reduces Debt service liability at plc by 61% to $3.9bn Minority Buyouts Buyout of government stake in HZL and BALCO Zinc- remains a priority Iron Alumi- Lead- Oil & Gas Copper Power Ore nium Silver HZL Sesa Goa Cairn Tuticorin BALCO Talwandi India Sabo Zinc Int’l WCL CMT VAL Jharsuguda BALCO Note: Shareholding based on basic shares outstanding MALCO FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 8
- 9. Tier-1 Diversified AssetPortfolio FY2012 Target Production Capacity R&R Life1 Sustainable Cost Position2 Zinc India 830kt 1mtpa 25+ Lowest Quartile 3 Zinc Intl. 444kt 400ktpa 20+ Lower Half Silver 7.8moz 16mozpa 25+ By-product 4 Oil & Gas 173kboepd 260kboepd 17 Lowest Quartile 4 5 Iron Ore5 13.8mt 20.5mtpa 18 Lowest Quartile 6 Copper Zambia 200kt 400ktpa 24+ Lower Half Currently Lower Half; Lowest Aluminium 675kt 2.3mtpa Quartile with Captive Bauxite Large, Low-Cost, Long-Life, Scalable Assets Note: 1. At capacity 2. Cost position for base metals from Wood-Mackenzie, Iron ore from Metalytics ,and Oil & Gas from Company Study 3. Includes Gamsberg 4. For current producing assets, subject to approvals 5. Does not include Liberia 6. Mine life of Konkola Deeps FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 9
- 10. A Global DiversifiedNatural Resources Major Top Global Diversified Natural Resources Companies FY12/CY11 PE EBITDA Multiple ($bn) 2% 23% 52% 15% 10% BHP Billiton 33.7 9.9 2% 98% Vale 33.8 5.8 Rio Tinto 28.5 7.8 69% 17% 4% 14% Anglo American 13.3 9.7 37% 28% 15% 6% 21% 2% Xstrata 11.6 11.2 10% 46% 7% 33% Teck 5.5 9.6 16% 36% 48% 2% Vedanta 5.3 5.0 38% 30% 13% 13% 3% ENRC 3.4 6.9 37% 6% 46% 11% O&G Zinc-lead Iron ore¹ Copper Base metals² Coal Aluminium Ferroalloys Other Scale and Diversification Source: Company filings and broker reports. PE multiples based on BEST next year PE estimate from Bloomberg as of 14 September 2012. Vedanta numbers are proforma with Cairn India for full year FY2012. Note: Commodity split based on pro forma EBITDA for Vedanta and EBIT for major diversified mining companies. 1. For Vale, Iron ore includes all ferrous metals 2. For BHP, base metals includes copper and zinc-lead. For Xstrata, base metals includes nickel. FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 10
- 11. Strong and ConsistentProfitability Consistent Profit Margins FY2012 EBITDA Margins by Segment Share of EBITDA Group EBITDA margin¹ Average LMEX Oil & Gas² 56% 18% 59% 55% Zinc- India 54% 31% Iron Ore 43% 18% 45% 43% 41% 41% Zinc- International 41% 9% 35% 33% 33% 3,756 Copper Australia 30% 2% Power 27% 3% Copper Zambia 23% 10% 1,636 Aluminium 10% 4% 1 Group 41% FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Profitability driven by Asset Quality and Diversification Notes: 1. Excludes copper custom smelting operations 2. Oil and Gas EBITDA margins have been calculated after adding back Rajasthan royalties and profit sharing with government to revenues. EBITDA margin based on reported revenues was 81%. FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 11
- 12. Well-Invested Capex DrivingNear-Term Growth Cash Flow and Growth Capex Profile - $bn Year-end Capacity (in Copper Equivalent kt)3 Free Cash Flow¹ Capex-ex-Cairn Capex-Cairn² Zinc-Lead Silver Iron Ore Copper Aluminium Power Oil & Gas 4,000 3,500 3,000 0.5 1.6 2,500 2,000 3.7 0.4 3.1 - 1,500 2.5 2.3 2.2 1,000 1.8 1.7 1.5 1.3 500 0 FY2010 FY2011 Proforma FY2013e FY2014e FY2015e FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY2012 Free Cash Flow at an Inflection Point Notes: 1. Free cash flow after Sustaining Capex but before Growth Capex 2. Capex net to Cairn India; part of FY2014e capex is subject to Government of India approval; FY2015e capex has not been announced. Shaded portions pertain to growth not reflected in the RHS capacity growth chart. 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 FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 12
- 13. Vedanta Market Positioning M.S. Mehta Chief Executive Officer
- 14. Resourcing India Zinc ConsumptionEstimates – India and China Aluminium Consumption Estimates – India and China Annual demand in mn tonnes Annual demand in mn tonnes Size of bubble indicates 54% Size of bubble indicates 53% % of world consumption 100 % of world consumption 16.4 40% (logarithmic scale) (logarithmic scale) 41% 8.2 4.1 7% 7% 10 2.0 1.0 5% 4% 0.5 0.3 1 2005 2010 2015 2020 2025 2030 2005 2010 2015 2020 2025 2030 India R&R and Consumption: India and World Strong demographics and urbanization driving metal 31 consumption growth 634 Abundant reserves to support further domestic 3,305 production 2,004 Vedanta uniquely positioned as domestic suppluer of key commodities Zinc R&R (mt) Zn Consumption Bauxite R&R (mt) Al Consumption 2012e (kt) 2012e (kt) Note: Source: Wood Mackenzie for metal consumption 1. Commodity data represents Total estimated Reserves and Resources based upon public sources including GSI, GOI, Brook Hunt, UNFC, IBM, and E&Y. FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 14
- 15. Proximity to RapidlyGrowing Markets Vedanta Revenues by Geography Strong Market Positioning in India FY2012 FY2012 India Market Shares Rest of the World 12% #1 #1 #1 #1 #1 #2 Middle East and Africa 9% 82% India Other Far 48% East and Asia 11% China 20% India Operations: Domestic Sales as % of Total Sales FY2012 2010-25 India Consumption CAGR % 39% 6% 5% 10% 8% 9% 10% 4% 33% 30% 100% 100% 81% 80% 62% 58% 19% 6% 5% Zinc India Zinc India Silver Copper Aluminium Iron Ore Oil and Zinc Lead Silver Copper Aluminium Oil - Zinc - Lead India Gas Note: Consumption CAGR over 2010-25 for base metals as per Wood-Mackenzie estimates. For Iron Ore, steel consumption CAGR over FY2012-17 as per Ministry of Steel, India considered. Silver consumption growth rate over 2012-2025 as per Ministry of Mines, India. Notes: Rank excludes imports. Oil & Gas production numbers considered instead of sales. Oil & Gas consumption growth rate over 2008-2035 as per EIA. Source: Wood Mackenzie, Indian Ministry of Petroleum and Natural Gas, IBIS, company sources FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 15
- 16. Strong Presence inIndia and Africa India Africa Largest diversified resources major in India Largest zinc producer in Africa Largest producer of Aluminium, Copper, Operations Among top 3 copper producers Zinc, Lead, Silver Large iron ore assets in Liberia 2nd largest crude oil producer $2.5bn in Zambia Overseas Capital c.$12.5bn across various segments Two large projects – Liberia iron ore and Invested Gamsberg zinc deposit Contribution to Among the largest: c.$4.8bn in proforma Largest in Zambia Exchequer FY2012 (incl $2.8bn by Cairn India) Contribution to Community programmes benefiting 2.8mn Community programmes benefiting Society people across 1006 villages 150,000 people across 3 countries Employees Largest employer in several states Largest private-sector employer in Zambia FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 16
- 17. Business and Operations M.S. Mehta Chief Executive Officer
- 18. Delivering Growth Color Key Group Zinc-Lead Copper Aluminium Power FY2010 FY2012 FY Iron Ore Acq VS Dempo 2012 Oil and Gas Group Structure Cmd KDMP Mid-shaft loading Simplification ancd FY Acq Cairn India Cmd 210kt Zn smelter 2011 Exp RA mine to 6mt Acq Liberia iron ore assets FY2011 Cmd 350t Ag refinery FY2004 FY2008 Acq Zinc Intl FY Cmd 100kt Dariba Pb Ancd 1mt Cmd 170kt Zn 2010 Cmd 1.5mt mill at smelter alumina refinery smelter silver-rich SK mine Cmd 7.5mt Nchanga East project at VAL Cmd 80MW CPP at Cmd 2,400 MW mill FY2006 Chanderiya Jharsuguda power Pre-IPO FY Dbn TLP to 75kt Cmd 170kt Zn and 2009 1997: Cmd 50kt Pb smelter, Cmd 2nd Co furnace FY2009 Tuticorin smelter 154MW CPP Exp 274MW wind power FY Exp RA mine to 5mt 1999: Acq Exp Tuticorin 2008 FY2005 Australia Cu mines smelter to 300kt Cmd 311kt Nchanga Acq KCM FY smelter, 6mt Konkola 2001 – Acq BALCO 2007 Concentrator KDMP project 2002- Acq HZL launched FY First metal at 500kt VAL 2006 Jharsuguda aluminium FY FY2007 smelter 2005 Abbreviations: FY Acq Sesa Goa Dbn: Debottlenecked Pre- 2004 Exp: Expanded IPO Cmd 245kt Al smelter and 540 Cmd: Commissioned Vedanta IPO MW CPP at BALCO Ancd: Announced Acq: Acquired Dbn Tuticorin smelter to 400kt FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 18
- 19. Continued Growth andDiversification FY2004 Proforma FY2012 FY2011 (IPO) with Cairn India for Full Year Power Aluminium 2% 3% Oil & Gas Power Aluminium Copper 38% 4% 7% 13% Copper Iron Ore 19% Aluminium 33% 16% Copper 29% Zinc India 55% Zinc-Int. Zinc India Zinc India 3% 34% 23% Iron Ore Zinc-Int. 14% 7% EBITDA: $323mn EBITDA: $3.6 bn EBITDA: $5.4bn +10x +16x FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 19
- 20. Oil and Gas Achieved Rajasthan Gross Production (bopd) Rajasthan block producing at c.175kbopd − 7.3bn boe of estimated gross in-place resources Exploration success ratio c.50% − FY2012 R&R replacement ratio of 175% − Exploration success at Sri Lanka, KG Basin Focus Significant 300,0001 Rajasthan Block Ramp-up1 part of Basin 240,0001 Potential − Pipeline debottlenecking and augmentation in CY2013 Barmer Hill − Development - Bhagyam, Aishwariya; EOR pilot Primarily Further c.175,000 from MBA Currently exploration − 300kbopd basin production potential Aishwariya Mangala towards Exploration – 10 blocks in diverse basins c.150kbopd 125,000 at end FY2013 South Africa JV: c.20,000 sq km in geologically Acquisition Bhagyam completion upto proven basin2 40kbopd Mangala 125kbopd Notes. 1. Subject to approvals 2. Closure of transaction is subject to South African regulatory approvals FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 20
- 21. Zinc India Achieved Refined Zinc – Lowest Quartile Cost Position 5,000 Organic growth: 1mtpa zinc-lead, 16moz silver Zn Composite cost - c1 cash 4,000 Sustained lowest quartile cost position cost ($/t) 3,000 25+year mine life with 10%+ grades 2,000 1,000 HZL Focus ($ 342/t)1 0 Operational efficiency and capacity utilization 25% 50% 75% Cumulative Production (Percentile) − Significant near term upside in silver and lead Source: Wood-Mackenzie for Zinc C1 cost curve; 1 Zinc India FY2012 COP of $342/t calculated as per Wood-Mackenzie methodology. Zinc India remains in the First Quartile based on reported FY2012 COP of $834/t, which does not consider credits for silver and lead. Continue to add more R&R than depletion at existing Operating Performance mines Zinc-Lead Metal Production (kt) kt Zinc reported COP excluding royalty ($/t) $/t Zinc LME ($/t) Additionally, large-scale exploration across India 1000 4,000 900 3,500 covering over 20,000 sq km 800 3,000 700 Feasibility study underway for next leg of growth 600 2,500 500 2,000 400 1,500 300 1,000 200 100 500 0 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 21
- 22. Zinc International Achieved 2012e Production (kt) Mine Life Business acquired in FY2011, stable operating Rampura-Agucha 710 25+ performance Red Dog Century R&R: Mine life extended at all three assets Mount Isa Pb/Zn San Cristobal Antamina Focus Brunswick Further mine life extension at existing operations McArthur River Tara Gamsberg project (186mt) Penasquito − 20 year mine life at 400ktpa zinc production Vazante Lanping − Feasibility study to complete in current quarter Lisheen 168 − Targeting production in 2 years Skorpion 164 Gamsberg… 400 20+ 0 500 1000 Source: Wood-Mackenzie FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 22
- 23. Iron Ore Achieved Vedanta Liberia Iron Ore Significant expansion since acquisition Asset Type R&R Mano River Brownfield 80 mt Sustained lowest quartile cost position Bea Mountain Greenfield 923 mt R&R: 68mt net addition in FY2012 Bomi Hills Brownfield 50 mt Distance 0 50 100 − 374mt total R&R, implying 18+ year mine life1 key(km) Liberia iron ore assets acquired: Liberia − Aeromagnetic study and initial drilling indicates Vedanta Mount Nimba (ArcelorMittal) significant upside to the resource base estimate Mano River of 1bn tonnes Bea Mountain Bomi Hills Proposed Simandou Focus Bong Railway Robertsport (Wuhan Monrovia Steel) India Putu Buchanan (Severstal) − Goa: Expanding roads and developing new corridors to mitigate logistics bottlenecks Dida Asset Key Greenville − Karnataka: Process underway to resume mining Major Roads Railway Other Iron Ore Mines Liberia Western Cluster Mines − First shipment in FY2014 Note: 1. At capacity for current producing assets, subject to approvals; Does not include Liberia FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 23
- 24. Copper India/Australia Achieved Lowest Quartile Cost Position 50 Cu smelting net cash conversion cost One of the most efficient copper smelters globally 40 − Sustained lowest quartile cost position 30 Value addition into copper rods, c.50% in FY12 (c/lb) 20 98%+ copper recovery and efficient by-product Copper India 10 (0 c/lb) management 0 -10 25% 50% 75% Focus Cumulative Production (Percentile) Source: Wood-Mackenzie for Copper Smelting cash cost curve, FY2012 reported net COP for Copper India Commissioning of 160 MW CPP Operating Performance 400kt smelter expansion1 Copper Production (kt) Cost Curve Percentile (RHS) 400 100% 300 75% 200 50% 100 25% 0 0% FY08 FY09 FY10 FY11 FY12 Notes. 1. Subject to approvals FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 24
- 25. Copper Zambia Top 12 copper mines by Cu grade of resources (%) Achieved Underground mine Open pit mine KOV, DRC (Katanga) 5.1% Konkola shaft#4 sunk to final 1500m depth Konkola, Zambia (Vedanta) 3.6% − Commissioned 2900level high speed tramming facility Kamoto, DRC (Katanga) 3.4% increasing mine development pace Tenke, DRC (Phelps, Tenke) 3.1% Projects commissioned in FY2012 Kananga, DRC (Katanga) 2.1% Nchanga, Zambia (Vedanta) 1.6% − 2nd Cobalt Recovery Furnace Tilwezembe, DRC (Katanga) 1.5% − 7.5mt Nchanga East Concentrator Olympic Dam, Australia (BHPB) 1.1% Escondida, Chile (BHPB, Rio) 1.1% − TLP-IV debottlenecking to 75ktpa Chuquic-amata,Chile(Codelco) 0.9% Exploration: Maintained track record of R&R replacement Collahuasi, Chile (Anglo, Falconbridge) 0.8% Grasberg, Indonesia (Freeport) 0.8% Source: Raw Materials, CPR, company websites Focus - FY2013 Priorities Operating Performance Copper Production (kt) Integrated COP (in c/lb, RHS) 3mt West Mill to be commissioned in Q2FY2013 400 300 Accelerate Konkola mine development pace to 60km/year 300 200 Bottom shaft loading at KDMP by Q3 200 − Platform for 25-30% annual growth in mined metal 100 100 Start regular mining at Nchanga Upper Ore Body 0 0 FY08 FY09 FY10 FY11 FY12 FY13e¹ Notes: 1. Production incudes FY2013 est. of 175kt integrated production and Q1 FY2013 custom production annualized to 52kt; COP of Q1 FY2013. FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 25
- 26. Aluminium and Power Aluminium - Lower Half Cost Position Achieved Aluminium Smelter Costs (C1 Cash Cost Curve) 1mtpa Alumina capacity, 750kt Aluminium capacity with 3,000 1800MW captive power Al Composite cost - c1 cash cost − Higher volumes of value added products, 25% increase BALCO VAL ($ 1,910/t)1 2,000 ($ 1,845/t)1 in FY2012 ($/t) − Aluminium costs in lower half of cost curve without captive bauxite 1,000 Commercial power: 2,770MW thermal and 275MW wind 0 Focus 25% 50% 75% Cumulative Production (Percentile) Committed to an integrated Aluminium Strategy Source: Wood-Mackenzie for Aluminium C1 cost curve, VAL and BALCO shown at reported costs in Q1 FY2013 − Focus on securing Bauxite Operating Performance − BALCO 325kt smelter - First metal in Q3 FY2013 Aluminium Production (kt) CoP (in $/t, RHS) 800 3,000 − VAL 1.25mtpa smelter nearing completion and start-up under review 600 2,000 Power 400 − Commence BALCO 1,200MW and Talwandi Sabo 1,000 1,980MW power plants 200 − 211mt Coal block at BALCO 0 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Q1 FY13¹ Notes. 1. Q1 FY2013 annualized FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 26
- 27. Strong Focus onExploration 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 life2 Rajasthan potential 24+ year mine life mined out since IPO − Skorpion: with high grade at resource increased 5+years1 R&R increased from R&R increased to KDMP to 7.3bn boe gross 190mt 3 at 332mt, from 144mt − BMM: 10+years in place from 6.5bn acquisition to at Vedanta IPO − Lisheen: 3years boe 374mt – added 3.4x 25+year mine life times mined out Exploration success with 10%+grades 186mt Gamsberg deposit feasibility at Sri Lanka and Liberia study underway Nagayalanka 1bn tonnes R&R 17 year R&R life Aeromagnetic study and 25,000+metres drilling indicates strong potential upside Creating Long Term Value through Exploration Notes: 1. With some additional work for conversion of resources to reserves 2. At capacity for current producing assets, subject to approvals 3. 120mt excluding Orissa from Sesa Goa acquisition, and 70mt from Dempo acquisition FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 27
- 28. Financials D.D. Jalan Chief Financial Officer
- 29. Financial Highlights Track record of delivering strong margins − Driven by a diversified portfolio of high growth assets − Cairn India has contributed to the diversity and scale of cash flow generation Substantially invested projects to drive free cash flow Progressive dividend policy, CAGR of 17% over the last 5 years FY2012 proforma with $mn or as stated Cairn FY2012 FY2011 EBITDA 5,353 4,026 3,567 EBITDA margin1 (%) 46.7% 40.6% 44.6% Underlying Attributable PAT2 571 387 715 Underlying EPS($/share)2 2.09 1.42 2.63 Free Cash Flow before Growth Capex 3,128 2,534 2,347 Growth Capex3 2,728 2,398 2,517 Total Dividend (USc/share) 55.0 52.5 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 capex FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 29
- 30. Strong Financial Profile Cash and Liquid Investments of $6.9bn, with additional $2.9bn undrawn lines of credit FY2012 Proforma Net Debt:EBITDA including Cairn of 1.9x; Credit ratings of BB/Ba3/BB1 Debt Maturity Profile ($bn)2 $1.7bn - Bridge loan to be rolled over into long term facilities $0.7bn - Revolving working capital facility $0.4bn - Refinanced 4.5 4.1 $0.3bn - To be repaid through internal cash flows US$1bn maturities at plc in FY2013: $550mn refinanced to date 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 Subsidiaries Notes: All information as of 31 March 2012, except information on refinancing 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 $1,250mm due in FY2017 (with a put option in July 2014) FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 30
- 31. Group Simplification toReduce Debt at plc Debt Service Liability at plc ($bn) Post group structure simplification, debt service 10 9.8 liability at plc reduces by 61% to $3.9bn Intercompany receivable created at Vedanta, Debt service cost at Vedanta reduces from from Sesa Sterlite $500mn to $190mn in FY2013 (2.8) Debt transferred to Sesa Sterlite; guarantee continued by Vedanta 5 Payout-based dividend policies at subsidiaries to 3.9 result in significantly higher dividends to plc (3.1) 0 Service Liability Service Liability Pre Transaction Post Transaction Note: Numbers as of 31 March 2012 FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 31
- 32. Sustainable Development Tony Henshaw Chief Sustainability Officer
- 33. Sustainability Model 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 planet FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 33
- 34. 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 LTIFR -48% 1.9 1.7 1.5 1.1 1.0 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 Vedanta is committed to providing a safe, injury-free and healthy place to work FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 34
- 35. 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 274MW 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 activities FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 35
- 36. Adding and SharingValue – Our Communities Community programmes reaching 3.1 million people in India and Africa Community spend of US$38 million in FY2012 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$4.8 billion1 total contribution to Indian government exchequer in FY2012 350 bed Cancer Research Hospital at Raipur - US$61mn investment Working in partnership with our communities is an integral part of our strategy Notes. 1. On a proforma basis including incl $2.8bn by Cairn India for full year FY2012 FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 36
- 37. Assurance – ScottWilson 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 practices FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 37
- 38. Vedanta Sustainable DevelopmentReport 2011-12 . Please email us at : sustainability@vedanta.co.in For more information visit www.vedantaresources.com/sustainability/ www.vedantaresources.com Please write to us at : Vedanta Resources plc 5th Floor, 16 Berkeley street London W1J3DZ FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 38
- 39. Summary GlobalDiversified Natural Resources Major World-class portfolio of large, structurally low-cost, scalable assets with long mine-life Strong financial profile supported by diversified cash flow growth Delivering industry-leading production growth driven by substantially invested projects Recent acquisitions provide additional growth options Focus on additional resources to drive long-term value Group simplification on track for completion in CY 2012 FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 39
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- 41. Our Operations South Africa Oil and Gas Site visit covers Jharsuguda, Agucha, Dariba, Sindesar Khurd, Rajasthan O&G, Goa iron ore • Block-1 Zinc-lead-silver India • 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 Lanka FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 41
- 42. Global Diversified NaturalResources Major Zinc-Lead- Oil & Gas Iron ore Copper Aluminium Power Silver Country and Positioning India, Ireland, India, Sri Lanka, Zambia, India, Namibia, South India, Liberia India India South Africa1 Australia Africa World class Zambian One of India’s largest Largest Indian operations, Indian Largest integrated Strategically located One of the largest private crude oil private iron ore custom smelter zinc-lead producer large-scale assets producers in India producers producer-exporter among lowest cost smelters globally Capacity 1.5mtpa, India: 400ktpa, 3.8GW, 175kbopd, 21mtpa1 740ktpa, 16moz silver upto 800ktpa1 upto 8.6 GW upto 300kbopd1 +Liberia upto 2.3mtpa +Gamsberg Zambia upto 400ktpa (3.9GW commercial) Growth profile Gamsberg - one of 2013:c.240kbopd1 36mtpa capacity India: 400ktpa BALCO 325ktpa 1.98GW Talwandi the largest from Rajasthan expansion expansion1 first metal in Q3 Sabo by FY2014 undeveloped zinc FY2013 300kbopd1 basin Liberia project, KCM ramping up deposits: 186mt potential shipment from 1st to 400ktpa BALCO 1200MW at 6.9% grade phase in FY2014 first unit sync by Q2 FY2013 Well Invested Asset Base driving Growth Notes: 1. Subject to approvals FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 42
- 43. Oil & Gas- Assets Snapshot of Assets Working Interest Hydrocarbons Reserves and Oil and Assets – Gross 2p Initially In-place Resources Working (i.e. Gross Proved and Probable) (mmboe) (mmboe) Block Interest Rajasthan Block (RJ) - MBA Fields 2,090 636 Rajasthan Rajasthan Block (RJ) - MBA EOR - 308 RJ-ON-90/1# 70 % Rajasthan Block (RJ) - Other Fields 2,088 178 East Coast Rajasthan Block (RJ) - Total 4,178 1,122 KG-DWN-98/2 10 % Ravva Fields 690 70 KG-ONN-2003/1 49 % CBOS/2 Fields (in Cambay Basin) 182 13 PKGM-1 (Ravva)# 22.5 % Other Fields 792 426 KG-OSN-2009/3* 100 % Total 5,842 1,631 PR-OSN-2004/1* 35 % West Coast Highlights CB/OS-2# 40 % Three operating blocks MB-DWN-2009/1* 100 % − RJ current production at c.175 kbopd Sri Lanka − Basin potential of 300 kbopd − Two mature blocks, effort ongoing to arrest the decline rate SL 2007-01-001 100 % Worlds’ longest continuously heated and insulated pipeline South Africa (SA) 10 blocks under exploration Block 1** 60 % − Exploration success ratio c.50% R&R Life: 17 years Q1 FY 2012-13: − Average Daily Gross operated production at 206,963 boe − Cairn Working Interest production at 127,226 boe # Producing Blocks; *Under Force Majeure; ** Farm in agreement signed on 16 August 2012, subject to South African regulatory approvals FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 43
- 44. Zinc India -Assets Snapshot of Assets Reserves Resources Reserve Reserve Capacity- Ore Mining Assets (mt) (mt) Grade-Zn Grade-Pb (mtpa) Rampura Agucha Mine 69.3 41.1 13.7 % 1.9 % 6.2 Sindesar Khurd Mine 21.6 59.8 4.5 % 2.7 % 2.0 Rajpura Dariba Mine 8.8 43.5 6.3 % 1.7 % 0.9 Zawar Mines 7.8 64.1 3.6 % 2.0 % 1.2 Kayar Mines 1.8 9.5 12.6 % 1.8 % 1.0 * Bamnia Kalan Mines - 5.1 - - NA Total 109.3 223.1 10.6 % 2.0 % 10.3 Capacity- Capacity- Capacity- Capacity Refined Refined Lead Capacity- Captive Total Zinc- Other Assets Zinc (kt) (kt) Silver (t) Power (MW) Lead (kt) Chanderiya Smelting Complex 525 85 168 234 610 Highlights Pyrometallurgical Lead Zinc Smelter 105 35 168 - 140 Hydrometallurgical Zinc Smelter 420 - - - 420 Capacity: AusmeltTM Lead Smelter - 50 - - 50 − 1mtpa integrated zinc-lead Dariba Smelting Complex 210 100 - 160 310 − 16moz integrated silver Hydrometallurgical Zinc Smelter 210 - - - 210 High-grade mining assets Lead Smelter - 100 - - 100 300+mt R&R, Debari Smelter - Hydrometallurgical 88 - - - 88 Supports long mine life of 25+ Zinc Smelter − Pantnagar Silver Refinery - - 350 - - years Zawar Mining Complex - - - 80 - Smelters and refineries located in close proximity to mines Total 823 185 518 474 1,008 Note: * Refers to 1mtpa Kayar mine project which is under development and is not considered in total capacity FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 44
- 45. Zinc International -Assets Snapshot of Assets Reserves Resources Reserve Reserve Mining Assets (mt) (mt) Grade-Zn Grade-Pb Skorpion Mine 6.5 2.6 9.7 % - Lisheen Mine 3.8 1.7 11.2 % 1.7 % Black Mountain Mine 8.2 63.8 2.5 % 2.8 % Gamsberg - 186.3 - - Other Assets Capacity Zn (kt) Skorpion Integrated Zinc Refining1 150 Highlights Capacity: 150kt integrated zinc, 248kt zinc- lead mined metal 270+mt R&R, supports long mine life: Skorpion : 5+ years1, Lisheen : 3 years, BMM – 10+ years Gamsberg: Total resources of 186mt within 2 ore bodies − 154mt at Gamsberg North at 6.3% Zn − 32mt at Gamsberg East at 9.8% Zn − Potential to produce 400ktpa zinc at Gamsberg North − Implies a mine life of over 20 years Notes: 1. With some additional work for conversion of resources to reserves FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 45
- 46. Iron Ore –India Assets Snapshot of Assets Proved and Mining Probable Capacity Target Mining Mining Assets Reserves (mt) Grade-Fe (mt) Capacity (mt) Goa 132.5 55.1% 14.5 27.0 Karnataka – A Narrain 34.2 57.1 % 2.31 9.0 Total 166.7 55.5 % 16.8 36.0 Goa Capacity- Capacity- Karnataka Capacity- Pig Metcoke Power Other Assets Iron(kt) (kt) (MW) Amona 250 280 - Amona-expansion 375 280 30 GEPL - - 30 Total 625 560 60 Highlights Capacity: − Goa: 14.5mtpa − Karnataka: 2.3mtpa1 374mt R&R − Supports long mine life of 18+ years2 Favorable logistics – Goa mines located in proximity to port 1. CEC approved provisional capacity of 2.29 mt 2. At capacity for current producing assets, subject to approvals FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 46
- 47. Iron Ore –Liberia Assets West Africa – the next Major Iron Ore hub Vedanta Liberia Iron Ore Asset Type R&R 34bn tonnes of Iron Ore resources identified in West Mano River Brownfield 80 mt Africa Bea Mountain Greenfield 923 mt Potential to develop into a 100mtpa Iron Ore Bomi Hills Brownfield 50 mt exporting region Distance key(km) 0 50 100 Entry into Liberia Liberia 51% stake acquired in WCL Liberia Mount Nimba Vedanta (ArcelorMittal) 1bn tonnes R&R across 3 deposits, close to coast Mano River Bea Mountain Proposed 2 existing piers and stacking area at port Bomi Hills Simandou Bong Railway Favourable logistics - 70-140km from port, lowest Robertsport (Wuhan Monrovia Steel) amongst other players Putu Buchanan (Severstal) Dida Asset Key Greenville Major Roads Railway Other Iron Ore Mines Western Cluster Mines FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 47
- 48. Copper- India/Australia -Assets Snapshot of Assets Reserves Reserve Resources Resources Mining Assets (mt) Grade-Cu (mt) Grade-Cu Mt. Lyell (CMT) 6.0 1.23 % 31.5 1.11 % Copper Copper Captive Anode Cathode Rod Sulphuric Phosphoric Power Other Assets (kt) (kt) (kt) Acid (kt) Acid (kt) (MW) Tuticorin Copper Smelter 405 205 96 1,300 230 47 Silvassa Copper Refinery - 200 172 - - - Fujairah - - 100 - - - Total 405 405 368 1,300 230 47 Highlights One of the lowest-cost custom smelters globally Stable volume and cost performance FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 48
- 49. Copper- Zambia -Assets Snapshot of Assets Reserves Reserve Resources Resources Capacity- Mining Assets (mt) Grade-Cu (mt) Grade-Cu Ore (mtpa) KCM (Konkola, Nchanga, 369.9 1.63 % 319.0 2.38 % 7.5 etc) Capacity- Capacity- Capacity- Copper Copper Copper Capacity- Capacity- Other Assets Conc.(mt) Anode(kt) Cathode(kt) Acid Pyrites Nchanga 7.5 311 75 585 - Concentrator 7.5 - - - - Smelter - 311 - 585 - Tailings Leach Plant - - 75 - - Highlights Konkola 6.0 - - - - Concentrator 6.0 - - - - Konkola - one of the largest Nkana - Refinery - - 300 - - high-grade copper mines with Nampundwe - Pyrites - - - - 60 3%+ grade Total Smelting and 13.5 311 375 585 60 Refining Well-invested assets: smelter, concentrators, refinery FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 49
- 50. Aluminium - Assets Snapshotof Assets Reserves Reserve Resources Mining Assets (mt) Grade-Al (mt) BALCO 7.2 46.4% 30.7 Mainpat 3.4 46.1 % 5.0 Bodai- Daldalli 3.8 46.6 % 2.0 Pandrapat - - 8.0 Jamirapat - - 15.7 Capacity Capacity Capacity Capacity Aluminium Captive Commercial Other Assets Alumina (kt) (kt) Power (MW) Power (MW) Balco Smelter - 245 540 IPP - - 270 Highlights Expansions - 325 600 600 VAL 2.3mt integrated Aluminium Alumina Refinery 1,000 - 90 Proximity to coal and bauxite Smelter - 500 1,215 Competitive cost position – Second Expansions 4,000 1,250 210 quartile Total Current Capacity 1,000 745 1,845 270 Total Capacity 5,000 2,320 2,655 870 FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 50
- 51. Power - Assets Snapshotof Assets Capacity Power Plants (MW) Malco 100 HZL – WPP 274 SEL 2,400 Highlights Single location 2,400 MW power plant Proven execution skills with experience in building & operating large power projects HZL-WPP (not shown on map) includes wind power plants at Rajasthan (89MW), Gujarat (89MW), Maharashtra (26MW), Karnataka (49MW) and Tamil Nadu (21MW) Proximity to coal FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 51
- 52. Entity-Wise Cash andDebt 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 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 $6 million debt related derivative FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 52
- 53. Credit Metrics FY2011 FY2012 Covenant Net Debt/EBITDA 0.55 x 1.9 x < 2.75 x EBITDA/Gross Interest Expense1 5.0 x 4.5 x > 4.0 x Tangible Net Worth ($bn) 5.5 4.5 > 3.0 Net Assets/Debt 2.61 x 2.47 x > 1.75 x Gearing2 13% 35% Note: 1. Interest includes Capitalized Interest 2. Gearing is calculated as Net Debt divided by the sum of Net Debt and Equity FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 53
- 54. Group Structure SimplificationStatus 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 Supreme Court of Mauritius approval Sep 2012 High Courts of India approval / Transaction completion CY 2012 Group Structure Simplification on Track FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 54
- 55. Proposed New GroupStructure 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 58.8% 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 entities Note: Shareholding based on basic shares outstanding FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 55
- 56. 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 International KEY Aluminium Copper Iron ore Power Zinc India Zinc International Oil & Gas Note: Structure as at 31 March 2012 FY2012 INDIA OPERATIONS SITE VISIT – CORPORATE PRESENTATION - 24 SEPTEMBER 2012 56