vedanta resources plc fy 2012 annual general meeting presentation
TRANSCRIPT
VEDANTA RESOURCES PLCFY 2012 Annual General Meeting
28 AUGUST 2012
Cautionary Statement and Disclaimer
The views expressed here may contain information derived from publicly available sources that have not been
independently verified.
No representation or warranty is made as to the accuracy, completeness, reasonableness or reliability of this
information. Any forward looking information in this presentation including, without limitation, any tables, charts
and/or graphs, has been prepared on the basis of a number of assumptions which may prove to be incorrect. This
presentation should not be relied upon as a recommendation or forecast by Vedanta Resources plc ("Vedanta").
Past performance of Vedanta cannot be relied upon as a guide to future performance.
This presentation contains 'forward-looking statements' – that is, statements related to future, not past, events. In
this context, forward-looking statements often address our expected future business and financial performance,
and often contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' or 'will.' Forward–
looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties 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 Annual General Meeting - 28 August 2012 2
Wide Geographic Footprint
India
Ireland
Zinc-lead-silver• Lisheen
Namibia
Zinc-lead-silver• Skorpion
Zinc-lead-silver• Debari smelter• Chanderiya smelters• Rampura-Agucha mine• Dariba mine, smelters• Zawar mine• Sindesar Khurd mine
Oil and Gas• Rajasthan• Cambay• Ravva• East Coast• West Coast• Sri Lanka
Zinc-lead-silver• Black Mountain • Gamsberg
South Africa Oil and Gas• Block-1
Copper• CMT
Australia
Iron ore• Liberia Iron Ore Assets
Liberia
Iron ore• Goa• Karnataka
Copper• Tuticorin copper smelter
Aluminium• Lanjigarh alumina refinery
• Jharsuguda smelter • Korba smelter and power plant
• BALCO coal block
Power• Talwandi Sabo • Jharsuguda power• MALCO power plant
Sri Lanka
Copper• KCM
Zambia
FY2012 Annual General Meeting - 28 August 2012 3
FY2012 Highlights
Financials
� 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 share
Corporate
� 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 FY2014
FY2012 Annual General Meeting - 28 August 2012
Note: 1. Excludes Copper Custom Smelting operations 2. Free Cash Flow before Growth Capex 3. Subject to approvals
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FY2012 Highlights
Operations
� 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 & Gas
Sustainability
� New sustainability framework rolled out
� LTIFR reduced by 10% over last year
� Doubled water recycling across the Group
FY2012 Annual General Meeting - 28 August 2012 5
Delivering on Strategic Priorities
Delivered in FY2012 Focus for FY2013
� Cairn India and Zinc-Intl
integrated
� Liberia Iron Ore assets acquired
� 16moz Silver capacity at Zinc-
India
� Progressed on organic growth
projects
� Rajasthan ramp-up to significant
part of 240kbopd1 in CY2013;
progress towards basin potential of
300kbopd1
� Ramp-up at Konkola and Power
� Next leg of growth
GROWTH
Organic Growth, Value Accretive
M&A
FY2012 Annual General Meeting - 28 August 2012
Note: 1. Subject to approvals
� Simplification of the Group
structure announced
� Exploration success
� Low cost advantage maintained
� Complete the simplification of the
Group structure
� Adding R&R
� Reduce gearing through strong Free
Cash Flow post capex
UNLOCK VALUE
Optimise Returns
Long Term Value Creation with a Focus on Sustainability
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Responsible Stewardship – Health & Safety
Health
� Investing in technologically advanced
processes that reduce possible
exposure levels at work area
� Regular medical check ups - Over
87,000 medical examinations conducted
in FY2012
Safety
� Goal is to reach & sustain “Zero Harm”
� 48% reduction in LTIFR in last five
years
� Focused programme on elimination of
unsafe conditions across units
� Exco sub-committee on sustainability
formed - current focus is on safety
� Monitoring and review of industrial
hygiene parameters such as noise
exposure, illumination levels and
manual handling
FY2012 Annual General Meeting - 28 August 2012 7
Vedanta is committed to providing a safe, injury-free and healthy place to work
formed - current focus is on safety
performance
� 134,000 man hours of safety training
imparted last year
� Targeting LTIFR less than 0.80 in
FY2013 and less than 0.50 by FY2016
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� 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
FY2012 Annual General Meeting - 28 August 2012 8
Vedanta is committed to mitigating the environmental impact of our activities
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 Empowerment, Sustainable Livelihood , Health
Water & Sanitation and Bio-Investment
� US$4.4 billion total contribution to government
exchequers
FY2012 Annual General Meeting - 28 August 2012 9
Working in partnership with our communities is an integral part of our strategy
350 bed Cancer Research Hospital at Raipur - US$61mn investment
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
FY2012 Annual General Meeting - 28 August 2012 10
Formalizing our approach to international standards and best practices
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 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 Annual General Meeting - 28 August 2012 11
2,500
3,000
3,500
4,000
Zinc-Lead Silver Iron Ore Copper
Aluminium Power Oil&Gas
Summary
� Business model based on growth, value creation and continuous improvement
� Strong focus on sustainability
� World-class diversified portfolio of large, structurally low-cost assets with long mine-life
− Recent acquisitions provide additional growth options
Year End Capacity
(in copper equivalent kt)
0
500
1,000
1,500
2,000
2,500
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015
� Strong cash flow growth driven by substantially invested projects
� Group simplification on track for completion in CY2012
FY2012 Annual General Meeting - 28 August 2012
Note: 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 FY2012
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