VEDANTA LIMITED, BMO GLOBAL METALS AND MINING CONFERENCE, FEBRUARY 2017
Vedanta Limited BMO Global Metals and Mining Conference February 2017The views expressed here may contain information derived from publicly available sources that have not been independently verified by us.
No representation or warranty (express or implied) is made as to, and no reliance should be placed on, 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 and Vedanta Limited and any of their subsidiaries. Past performance of Vedanta Resources plc and Vedanta Limited and any of their subsidiaries cannot be relied upon as a guide to future performance. None of Vedanta Resources plc, Vedanta Limited, any of their respective shareholders or subsidiaries or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this presentation.
Certain statements in this presentation are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbour created thereby. Actual results may differ materially from these statements. The words "expect," "anticipate," "project," "believe" and similar expressions identify forward- looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are based on our current expectation of businesses, which is subject to change. 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 political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in these forward-looking statements. Statements in this presentation speak
only as of the date of this presentation, and we disclaim any responsibility to update or revise such 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 Resources plc and Vedanta Limited and any of their subsidiaries or 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.
This presentation contains non-GAAP financial information, which the management of Vedanta Resources plc and Vedanta Limited believes is valuable in understanding the respective performances of Vedanta Resources plc and Vedanta Limited. However, non-GAAP information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by other companies, including those in the same industry as Vedanta Resources plc and Vedanta Limited. Although these measures are important in the assessment and management of the business of Vedanta Resources plc and Vedanta Limited, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP measures.
OverviewPortfolio of large, diversified, low-cost assets geared towards base metals and oil
Well-invested assets ramping up and driving cash flow growth
Costs in lower half of the cost curve across all
Cost curve positioningPosition on respective commodity C1 cost curve
I II III IVZinc India
Zinc
Size of circle
commodities
Strong financial profile
9M FY2017 Revenue of $7.4bn, EBITDA of $2.1bn and Free Cash Flow of $0.7bn
O&G
Copper India
Iron ore¹
Intl.
Aluminium
denotes EBITDA
contribution
Net Debt/EBITDA at 0.7x, one of the lowest among global peers
Access to diversified sources of funding
Largest diversified resources company in India
Source: Wood Mackenzie as of Q4 2016, CRU Aluminium business cost curve (2015) ¹ On a 58% Fe cost basis only
EBITDA mix (9M FY2017)6%
9%
Over two-third of revenues from Indian markets
FY2016 contribution to government exchequers:
$4.4bn
2.25 million beneficiaries of community development programs across India and Africa
Merger with Cairn India approved by all sets of shareholders; expected to complete in Q1 CY2017
8%
9%
20%
46%
Zinc
Oil & Gas Aluminium Power Copper Iron Ore
Our commodity basket has captured commodity price upside, with low volatilityAluminium Zinc Copper Iron Ore 62%² Silver Brent Oil VED commodity basket¹ 700
Commodity prices(01 Jan 2004 = 100)
600
500
Vedanta's commodity basket up by 57% since Jan'16
400
300
200
100
201% Silver
186% Zinc
157% Copper
113%
89% Brent
30% Iron ore2
16% Aluminium
Vedanta commodity basket1
0
Jan-04 Dec-04 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17
Source: Company filings, Bloomberg
Vedanta Limited Commodity Basket is a weighted average of commodity prices, weights are based on actual FY2016 revenue mix. Copper India revenues based on realized Tc/Rc's.
Iron ore price is available since May 2008, prior to that iron ore was traded contractually
EBITDA Rs. Crore
Zinc Oil & Gas Aluminum Power Copper Iron ore Group EBITDA margin²
6,000
4,000
2,000
32.0%
34.0%
26.0%
29.0%
32.0%
38.5%39.3%
0
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
2. Excludes custom smelting at Copper and Zinc India operations
Vedanta Resources plc published this content on 27 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 February 2017 07:06:23 UTC.
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