Vedanta : Q3FY21 Presentations

Q3 FY2021

January 2021

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 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.

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. We caution you that reliance on any forward-looking

statement involves risk and uncertainties, and that, although we believe that the assumption on which our forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statement based on those assumptions could be materially incorrect.

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.

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

2

Sensitivity: Internal (C3)

Contents

Section	Presenter	Page
Q3 FY21 Review & Business Update	Sunil Duggal, CEO	4
Financial Update	Arun Kumar, CFO	18
Appendix		25

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	3
	Sensitivity: Internal (C3)

Q3 FY2021

Q3 FY2021 Review & Business Update

Sunil Duggal | Chief Executive Officer

Key Highlights: Q3 FY2021

• Aluminium Sustained lower cost of production at $1,387/t and EBITDA margin of 28%
• Zinc India Highest ever quarterly ore production of 4.0 Mnt and record mine development of 27km Lowest 9M cost of production since transition to UG operation
• Zinc International Gamsberg highest ever quarterly production of 43kt

Operational

▪ O&G New gas facility commissioned; gas production being ramped up by ~15 kboepd

• Significant EBITDA contribution from Iron ore; capitalized opportunity to increase Goa sales to 0.6Mnt; Pig iron margins significantly up to $129/t
• ESL Steel Ever highest hot metal production of 372kt since acquisition; VAP mix increased to 85% from 71% in Q2 FY21
• EBITDA ₹7,695 crore, up 18% q-o-q & y-o-y, highest quarterly performance for > 2 years
• Industry leading EBITDA margin of 39%*, highest in past 4 years

Financial

▪ Attributable PAT (before exceptional items & tax on dividend) at ₹ 3,017 crore, up 51% q-o-q

• Net debt at ₹ 35,357 crores with Net debt/EBITDA at 1.5x, maintained at low level.
• Liquidity position with total Cash & Cash Equivalents of ₹ 27,055 cr.

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	* Excludes custom smelting at Copper India and Zinc India operations	5

Sensitivity: Internal (C3)

Step changes towards better ESG performance

Vedanta

Ltd.

Hindustan

Zinc Ltd.

Dow Jones Sustainability Index Ranking Improves to 12th Globally (20th in 2019)

Ranked 2nd in Asia Pacific Region in metals and mining sector (7th in 2019)

Dow Jones Sustainability Index Ranking 2nd Globally (5th in 2019) Continue to Rank 1st in Asia Pacific Region (metals and mining sector)

Social performance update

Vision: To become a developer of choice in the areas we

	operate
Review of SP work	▪ Findings presented to the senior
2019	management
Self assessment	▪ Workshops conducted across all
workshops	units at Vedanta
Formation of SPMC	▪ Site teams are formed across all
units to manage social performance
Initiation of the pilot	▪ Pilot across 2 sites in Vedanta to
initiate in Q4

Carbon vision update

Ambitious Target: Substantially decarbonise by 2050

Group wide carbon	▪ The forum is responsible in
forum with CEO level	ensuring the group's Carbon
engagement	vision is achieved
Vedanta moves	▪ Signed the declaration along
towards 'Carbon
with 24 top private companies
Neutrality'
	▪ India CEO forum for climate
Vedanta joins hands	change is a designed to chart a
roadmap and share challenges
for climate change
for companies and government
	bodies

2,000th Nand Ghar* Vedanta's flagship CSR project has touched a new milestone in transforming lives of India's Women & Children

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	* Women and Child care centre	6
	Sensitivity: Internal (C3)

Heading Towards - Zero Harm, Zero Waste, Zero Discharge

Safety Program Update

▪ Group wide review of permit to work

3 fatalities in Q3	and isolation procedure
▪ Safety Alert Dashboard for improving
	implementation of fatality learnings
	▪ ICAM training for improving
Training	investigation quality
▪ Cross business safety audit training
	conducted across businesses
Critical risk management	▪ Critical risk management pilot in the
	aluminium and power business

Environment Update

Water	▪	~7.5 million m3 of water
conservation		savings over three years
Plastic protocol ▪	Implemented across 3 BU
GHG	▪	16.65% reduction in GHG
Management		emissions intensity from 2012
		baseline;
Fly Ash	▪	>100% fly-ash utilization
Management

		Fatality								LTIFR						Water Consumed & Recycled		Waste Recycling (mMT)
																		(mil m3)			(High Volume Low Toxicity)
		9									0.66			242		243	250			17			1413	1513
5	7		7	6			0.40	0.35	0.46				0.58							196		14	1312
														71	67	71	59
						FY17	FY18	FY19	FY20	9M FY21	FY18	FY19	FY20	9M FY21		F718	FY19		FY20	9M FY21
FY17	FY18	FY19	FY20	9M FY21
																		Consumed		Recycled				Generation			Recycled
	VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION																				7

Sensitivity: Internal (C3)

Aluminium: Record Cost Performance

	Structural Reduction in Cost	Performance Update
1,691		1,769	Quarter Performance:
		1,387	▪ Aluminium production 503 kt*, up 5% y-o-y and 6% q-o-q
	1,288	1,315

• Aluminium COP $ 1,387/t, down 18% y-o-y and up 8% q-o-q
• Lanjigarh production 407 kt, down 14% y-o-y and 12% q-o-q
• Lanjigarh COP at $ 249/t, down 7% y-o-y and up 10% q-o-q

Q3 FY20

Q2 FY21

Q3 FY21

9M FY20

9M FY21

• Radhikapur (West) Coal Block: Coal Mine Development and Production Agreement signed with Govt. of India

Alumina Production & COP

			1,332	1,345	Nine Months Performance:
					▪ Aluminium production 1,442 kt*, up 1% y-o-y
					▪ Record Aluminium COP at $ 1,315/t, down 26% y-o-y and
476	462	407			lowest in last 5 years
269	227	249	282	230	▪ Lanjigarh production 1,345 kt, up 1% y-o-y
Q3 FY20	Q2 FY21	Q3 FY21	9M FY20 9M FY21	▪ Lanjigarh COP at $ 230/t, down 18% y-o-y
	Production (kt)	COP ($/T)
VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION		*Including trial run	8

Sensitivity: Internal (C3)

Aluminium: Significant progress on Strategic levers Continues

COP $/t

1,690

1,300-1,350	c. 1,200

FY20

FY21e

Target (2-3 years)

• Lanjigarh operational excellence, significantly reducing COP
• Optimised local and global bauxite source mix
• Power: Lower E-Auction coal premiums, Lower Renewable power obligation rates

• Lanjigarh capacity expansion from ~2 Mtpa to 5 Mtpa*
• Radhikapur (West) coal block won; Operationalisation of coal blocks
• Operational excellence across Power Plants, Smelters

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	*Subject to obtaining required government approvals	9
	Sensitivity: Internal (C3)

Zinc India: Completed 1.2 Mnt Mined Metal Project Activities

Sustained production post-transition to fully UG mining company

																	1,500
UG%	39%	53%	76%	100%	100%				1,200
in kt					947	936
Metal	889	907					917
Mined
		FY16		FY17		FY18		FY19		FY20		FY21E			Target		Target
																(1-2 years)		(4-5 years)

Optimize Operations: 50 kms development target. Reduction in waste dilution factor and achieving benchmark recovery

Faster stope turnaround: Maximum use of tailings as back-fillingmaterial for faster development of stopes

Shaft driven haulage: RA and SK Shaft stabilization ongoing for hauling from lower blocks possible. RD Shaft upgradation ongoing

Active Program For Addition To R&R In Sync

With Higher Production Going Forward

						550
(Mnt)R&R		313			403
		FY11	FY20		Target

• Upgrading galena zone at Rampura Agucha
• Exploring a new ore body below shaft at Sindesar Khurd
• Establishing new lenses at Zawar

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

Volume Leverage And Efficiencies To Maintain First

Decile COP

COP	9M FY21:	Near term
<$1,000/t	$958/t	Target: $900/t

Key structural initiatives on:

• Digital transformation
• Minor metal extraction
• Ore to metal ratio to 90%
• Operational efficiencies via shaft, paste fill, etc.
• Energy basket optimisation

10

Sensitivity: Internal (C3)

Zinc India: Strong Momentum in Silver Production

Maintaining our position globally as a leading silver producer								Fastest Growing Silver Company	1,000
																Silver Production in tonnes	800
			2018	2019		Target
		2015		Top 3						679
		Rank - 6
		Rank - 9
		Rank - 18									610
373	610											558
		635
										425	453
					1,054	995
		1,257
											FY16		FY17 FY18 FY19 FY20 FY21e			Target		Target
	Hindustan zinc (tonnes)		Top 3 Threshold (tonnes) Source: World Silver Survey, 2020,																		(1-2 years)		(4-5 years)

Higher mining rate and recovery initiatives to drive Silver growth

							Target: 1000t
		FY 2020
	Lead Concentrate				Lead Smelting		876t
					Volume growth,
	661t (66%)				610t
					Silver rich deposits

Silver in Ore
					64t
			Zinc Concentrate		Zinc
					Fuming technology
FY2020				Smelting
		163t (16%)			& recycling
				0t
1004t
					60t
			Mine Tailings		Tailings		Recovery from tailings,
			180t (18%)		0t		Achieve benchmark
							recoveries

We expect to be among Top 3 silver producers and the largest Integrated silver producer globally in the next 2-3 years

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

11

Sensitivity: Internal (C3)

Zinc International: Gamsberg Positioning for Long Term Value Creation

Continued Performance Ramp up

Performance Update

600

▪ Highest ever Production at 43kt, up 39% y-o-y and

469

23% q-o-q.

380

279

▪ COP at $1,240, down 13% y-o-y and almost flat q-o-q

due to better recoveries, cost control measures offset by exchange rate appreciation

					▪ Healthy ore stock-pile of ~1 Mnt ahead of plant
Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21e Q4 FY21 exit
	Avg Production (tonnes per day)	▪ Mining at Gamsberg is commenced in early Jan 2021
	Achieved Better Than Design Milling	after full risk assessment and DMRE approval

		Throughput in Q3
				82	1,420			1,430	1500
		73			100	1,246	1,240
	69					1,2641300
60					50				1100
451	465	507		524					900
					31	35	43	78	103
Q1 FY21	Q2 FY21	Q3 FY21	Q4 FY21e	Q4 FY21 exit	0				700
					Q3 FY20	Q2 FY21	Q3 FY21	9M FY20	9M FY21
	Milling Throughput (tph)	Recovery %		MIC Production (kt)	COP $/t
VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION						12

Sensitivity: Internal (C3)

Oil & Gas: Focus on Delivery of Growth Projects

Growth Projects

• Gas Terminal: New gas facility commissioned; gas production being ramped up by ~15 kboepd
• Aishwariya Barmer Hill: Surface facility to be commissioned in Q4 FY21; shall increase volumes from ~ 8 kboepd to ~15 kboepd
• MBA Infill & Polymer: Polymer Injection in Bhagyam & Aishwariya being ramped up. This will enable decline management.
• Liquid Handling upgradation project to be completed by Q4 FY21; shall increase volumes by ~ 5 kboepd
• RJ Exploration: Exploration drilling being planned for Q1 FY22.

OALP

• Drilling:

o Rajasthan: Oil discovery notified in the first well (KW2-Updip-1); evaluation on-going to establish potential.

• 1. Assam & Cambay: Drilling to commence in Q4 FY21 to evaluate block potential
• Seismic: Acquisition underway in Rajasthan and Cambay

Operations

Gross Production (kboepd)

220

165 160

Q2 FY21 Q3 FY21 Q4 FY21e Q4 FY21	FY22
exit	exit

• 249 wells drilled, 131 hooked-up till now, 34% up q-o-q
• Operating cost at $7.7/boe in Q3 FY21 vs $7.0/boe in Q2 FY21, up 10% due to increase in workover activities

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	13
	Sensitivity: Internal (C3)

Iron ore: Increasing YTD Profitability by ~75%

Iron Ore Goa

▪ Capitalised opportunity of rising Global prices by increasing sales in Q3

• Mobilized existing inventory of 1.1 Mnt
• Strategic sourcing of Iron Ore through govt auctions

Value Added Business

• Benefitted by domestic steel prices and International coal prices
• Margin improvement through on-going efficiency enhancing projects in our largest Blast Furnace

Iron Ore Karnataka

• Production up 21% y-o-y and down 1% q-o-q
• Margins supported by ever highest domestic Iron ore price Index

Sales (Mnt)

1.3

0.6

0.2	0.2				0.2
Q3 FY20	Q2 FY21	Q3 FY21	9M	9M
					FY20	FY21

Margin ($/t)	Production (Mnt)
129	3.6	3.9

84							87
																1.2	1.5	1.4
								29
24
	Q3 FY20 Q2 FY21 Q3 FY21		9M			9M	Q3 FY20 Q2 FY21 Q3 FY21	9M	9M
									FY20		FY21					FY20	FY21

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	14
	Sensitivity: Internal (C3)

Other Assets: ESL Steel and FACOR

ESL Steel	FACOR
Performance Update	Margin Improved By 2.5x Post Acquisition
▪ Ever highest quarterly 372 kt hot metal	Complete Turnaround Performance
production since acquisition	▪ Operationalized and enhanced production in 2 mines
▪ Robust margin of ~22% in Q3, highest in FY21	▪ 100% use of captive ore vs 50% earlier
▪ VAP mix increased to 85% in Q3 FY21 vs 71% in	▪ Introduced E-auction of Fe chrome, resulted in NSR
Q2 FY21
improvement by 20%
▪ Achieved ~1.5 Mnt designed hot metal	▪ Domestic market share increased to 75% in Q3 vs
production run rate in Q3
	65-70
	35% in H1 FY21

		111						400
	94
			83		47
			61
55				34
						71
					29
Q3 FY20	Q2 FY21	Q3 FY21	9M FY20	9M FY21	H1 FY21	Q3 FY21	Q4 FY21e	Near Term
		Margin ($/t)						Target
					Ore Production (kt)	Margin ($/t)
VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION					15

Sensitivity: Internal (C3)

Creating Value: New Business Model - Integrated Procurement & Marketing

Single face for selling of key commodities

Focus on digitalization & Strategic Buying through touch

less processes, automation & best-in-class partners

Optimizing working capital

by leveraging group synergies

Consolidated buying for

majority spends across businesses - Economies of scale, value buying

Move to E-Commerce sales

for connecting with SME and

MSME

Increasing cross-sell

opportunities & new product

development & market growth

Vision For Unlocking Potential Savings of $1.0 bn Through Our

Integrated Procurement And Marketing

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

16

Sensitivity: Internal (C3)

Project Pratham: Digital First

Digital Transformation, R&D and Innovation driving business value

	Smart Manufacturing and					Project Disha: Integrated
	Advance Process Control					Data and Decision Platform
	driving volume increments			enabling analytics-led
			decisions and monetizing
	and asset optimization
			wealth of group-wide data
						Digital Logistics Control Towers
	Unified HSE and HR Platform
				and Quality Automation
	enabling harmonization and
			enabling visibility,
	effectiveness of group			transparency and delivering
	processes			cost impact

Vedanta Spark: Global Startup

Platform and Innovation Cafes

innovation culture and mindset

change, strengthening group

wide digital capabilities

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

17

Sensitivity: Internal (C3)

Q3 FY2021

Finance Update

Arun Kumar | Chief Financial Officer

Financial snapshot Q3

EBITDA	Attributable PAT (before exceptional	ND/EBITDA
	items & tax on dividend)
₹ 7,695 cr	₹ 3,017 cr	1.5x

Up 18% q-o-q

Up 51% q-o-q

Maintained at low level

EBITDA Margin *	ROCE #	Cash & Cash Equivalents
39%	c.13%	₹ 27,055cr

Industry leading margin	Continuing double digit	Liquidity position

* Excludes custom smelting at Copper India and Zinc-India operations.

• ROCE is calculated as EBIT net of tax outflow divided by average capital employed.

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

19

Sensitivity: Internal (C3)

EBITDA Bridge (Q3 FY2020 vs. Q3 FY2021)

(In ₹ crore)

Aluminum	606
Oil & Gas	(368)
Zinc, Lead & Silver	650
IOB	180
ESL	177

RPO(256)

PP(55)

Oil & Gas (1437)

Aluminum 143

Others 215

1,244

6,531

338 451 321 8,243

Market & Regulatory

• 1,712 crore

530	1079
		7,695
Al		283
TSPL		(65)
IOB		133
HZL		265
Cairn		(86)

Q3 FY20	LME/ Brent /	Input	Currency	Regulatory &	Adjusted	Volume and	Others	Q3 FY21
	Premiums	Commodity		Profit	EBITDA	Cost & Mktg
		Inflation		Petroleum

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	20
	Sensitivity: Internal (C3)

EBITDA Bridge (Q2 FY 2021 vs. Q3 FY 2021)

(In ₹ crore)

Aluminium	795
Zinc, Lead & Silver	462
IOB	142
Electrosteel	161

AL (131)

Cu (28)

1,658	182	115	15	7,877	31	213	7,695
6,531
				Al		(208)
					IOB		193
					ZI		23
					Cairn		17

Market & Regulatory

• 1,346 crore

Q2 FY 21	LME/ Brent /	Input	Currency	Regulatory &	Adjusted	Volume, Cost &	Others	Q3 FY 21
		Premiums	Commodity		Profit	EBITDA	Marketing
			Inflation		Petroleum
VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION					21

Sensitivity: Internal (C3)

Net Debt for Q3 FY 2021

(In ₹ crore)

Inventory ,Debtors and others	(1,082)
Creditors / Customers advance	(1,773)

					3,108	67	35,357
				6,684
27,190	6,425		2,013
		2,855
	FCF Post Capex ₹ 1,557Cr
Net Debt	CF from	WC	Capex	Dividend	Inter co.	Translation	Net Debt
1st Oct'20	Operations	Movements		Paid	loan to	& Others	31st Dec'20
		(Incl Buyer's			Vedanta
		credit)			Resources

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	22
	Sensitivity: Internal (C3)

Balance Sheet

Term Debt Maturities : INR 53,864 Cr ($7.4bn) (as at 31 Dec 2020)

38%

20.6

26%

				14.3
						18%				7.7
Crore				4.7		9.5			14%
				7.7
'000
	3%				4.5				12.9
₹				9.5
1.8					5.6
	0.3				5.0
	1.5				2.1
		FY21		FY22			FY23			FY24	FY25 & Later
					Standalone		Subsidiaries		% of Total Term Debt

Average Term Debt Maturity (years)

• Liquidity
• • Cash and cash equivalents at ₹ 27,055 crore
• Net Interest -

• • Interest Income - Returns ~6.0%.
  • Interest Expense - Maintained ~7.8%
• Average term debt maturity maintained above 3 years
• Credit Rating:
• • CRISIL rating at AA- with stable outlook
  • India ratings AA- with negative outlook

Net Debt / EBITDA - maintained at low level

			3.5	3.4
		3.3
3.2	3.2

1.1

1.5

1.2

2.7

0.9

0.4

1.0

Mar-17Mar-18Mar-19Jun-20Sep-20Dec-20

FY'17

FY'18

FY'19

FY'20

H1 FY'21 Q3 FY'21

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	23
	Sensitivity: Internal (C3)

Strategy to Enhance Long Term Value

Continue Focus on World Class ESG Performance

Augment Our Reserves & Resources Base

Operational Excellence and Cost Leadership

Optimise Capital Allocation & Maintain Strong Balance Sheet

Delivering on Growth Opportunities

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

24

Sensitivity: Internal (C3)

Q3 FY2021

Appendix

Income Statement

Depreciation & Amortization

• Depreciation q-o-q remained flat.
• Lower y-o-y majorly on account of Oil & Gas assets impairment in Q4 FY 20.

Finance Cost

• Finance cost q-o-q remained flat.
• Higher y-o-y on account of higher borrowings

Investment Income

• Higher primarily due to one-time interest incomes.

Taxes

• Normalised ETR is 27% (excluding tax on dividend from Zinc India), compared to 29% in last quarter due to change in PBT mix within entities.

In ₹ Crore	Q3	Q3	Q2
FY'21	FY'20	FY'21#
Revenue from operations	22,498	21,126	20,804
Other operating income	237	234	303
EBITDA^	7,695	6,531	6,531
Depreciation & amortization	(1,912)	(2,291)	(1,938)
Finance Cost	(1,321)	(1,232)	(1,312)
Investment Income	771	628	621
Exchange gain/(loss)	177	-	30
Exceptional item Credit/(Expense)	(0)	168	95
Profit Before Taxes	5,410	3,806	4,027
Tax Charge/(Credit)	(1,468)	(1,082)	(1,150)
One time tax credit/(charge)*	282	-	(1,187)
Tax credit/(charge) on exceptional items	-	(58)	(33)
PAT before exceptional items & one-time tax	3,942	2,555	2,782
Profit/(Loss) After Taxes	4,224	2,665	1,657
Attr. profit before exceptional items & one-time tax	3,017	2,238	1,993
Attr. Profit/(Loss) After Taxes	3,299	2,347	838
Minorities % (after exceptional item)	22%	12%	49%

^EBITDA includes one off for past exploration cost recovery at Oil & Gas business (₹ 1,276 cr) & true-up of RPO liability in line with Regulatory changes at Aluminium Business (₹ 460 cr) in Q3 FY'20 *One Time tax credit/(charge) includes tax on dividend and impact of change in ordinance

#Q2 FY21 restated, refer note 7 of Vedanta Limited consolidated results

Note: Previous period figures have been regrouped or re-arranged wherever necessary to conform to the current period's presentation

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

26

Sensitivity: Internal (C3)

Entity Wise Cash and Debt

									(In ₹ crore)
		Dec 31, 2020			Sep 30, 2020			Dec 31, 2019
Company
Debt	Cash &	Net Debt	Debt	Cash &	Net Debt	Debt	Cash &	Net Debt
	Cash Eq	Cash Eq	Cash Eq
Vedanta Limited Standalone	33,824	2,993	30,831	32,790	1,967	30,823	36,569	3,808	32,761
Cairn India Holdings	2,826	1,127	1,699	3,616	4,615	(1,000)	3,157	6,900	(3,743)
Limited1
Zinc India	10,036	21,054	(11,018)	9,798	27,659	(17,860)	2,990	22,535	(19,545)
Zinc International	263	400	710	309	301	8	428	395	33
BALCO	3,606	684	2,922	3,897	430	3,466	4,173	11	4,162
Talwandi Sabo	7,434	127	7,307	7,797	182	7,615	6,289	181	6,108
Vedanta Star Limited2	-	-	-	-	-	-	3,381	30	3,351
Others3	4,423	669	2,907	4,552	415	4,137	1,602	1,345	257
Vedanta Limited	62,412	27,055	35,357	62,759	35,569	27,190	58,589	35,205	23,384
Consolidated

Notes: Debt numbers are at Book Value and excludes inter-company eliminations.

1. Cairn India Holdings Limited is a wholly owned subsidiary of Vedanta Limited which holds 50% of the group's share in the RJ Block
2. Vedanta Star limited, 100% subsidiary of VEDL which owns 95.5% (FY19: 90%) stake in ESL
3. Others includes MALCO Energy, CMT, VGCB, Electrosteel, Fujairah Gold, Vedanta Limited's investment companies and ASI.

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	27
	Sensitivity: Internal (C3)

Inter Company Loan

Below is the summary details of Inter Company Loan ("ICL") extended by overseas subsidiaries (CIHL)

of Vedanta Limited to Vedanta Resources Limited and its wholly owned subsidiary during the year:

ICL outstanding*	$ 956mn
	$ 207mn due in June 2021
Repayment Schedule	$ 300mn due in June 2022
$ 300mn due in June 2023
	$ 149mn due in Dec 2023
Average Maturity Profile	2.2 years
Interest Rate	Reset based on external arm's length study

*Refer note 7 of Vedanta Limited Consolidated results

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

28

Sensitivity: Internal (C3)

Debt Breakdown & Funding Sources

Diversified Funding Sources for Term Debt of $7.4bn	Debt Breakdown
(as of 31st Dec 2020)
(as of 31st Dec 2020)

1%

	13%			Term Loans-INR
				Bonds-INR
				Term Loans-USD/Foreign
				Currency
30%	57%			Bonds-FC

Debt breakdown as of	(in $bn)	(₹ in 000' Cr)
31st Dec 2020
Term debt	7.4	53.9
Working capital	0.5	3.3
Short term borrowing	0.7	5.2
Total consolidated debt	8.5	62.4

		Cash and Cash Equivalents	3.7	27.1
Term debt of $4.3bn at Standalone and $3.1bn at Subsidiaries, total	Net Debt#	4.8	35.4
consolidated $7.4bn
		Debt breakup ($8.5bn)
		- INR Debt		88%
		- USD / Foreign Currency Debt		12%
Note: USD-INR:₹ 73.02 on 31st Dec 2020
	VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION			29
	Sensitivity: Internal (C3)

Segment Summary - Zinc India

Production (in '000 tonnes, or as stated)		Q3		Q2	9M
FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Mined metal content	244	235	4%	238	684
Integrated metal	235	219	7%	237	674
Refined Zinc - Integrated	182	178	2%	180	520
Refined Lead - Integrated1	52	41	28%	57	153
Refined Saleable Silver - Integrated (in tonnes)2	183	149	23%	203	503
Financials (In ₹ crore, except as stated)
Revenue	5,890	4,600	28%	5,491	15,233
EBITDA	3,308	2,274	45%	2,912	7,774
Zinc CoP without Royalty (₹ /MT)	69,700	76,600	(9)%	68,200	71,400
Zinc CoP without Royalty ($/MT)	946	1,077	(12)%	919	958
Zinc CoP with Royalty ($/MT)	1,302	1,402	(7)%	1,234	1,274
Zinc LME Price ($/MT)	2,628	2,388	10%	2,335	2,314
Lead LME Price ($/MT)	1,901	2,045	(7)%	1,873	1,819
Silver LBMA Price ($/oz)	24.4	17.3	41%	24.3	21.8

1. Excludes captive consumption of 1,611 tonnes in Q3 FY 20201 vs 1,937 tonnes in Q3 FY 2020.
2. Excludes captive consumption of 9.0 MT in Q3 FY 2021 vs 10.1 MT in Q3 FY 2020.

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	30
	Sensitivity: Internal (C3)

Segment Summary - Zinc International

		Q3		Q2	9M
Production (in'000 tonnes, or as stated)
FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Refined Zinc - Skorpion	-	11	-	-	1
Mined metal content- BMM	16	18	(13)%	16	43
Mined metal content- Gamsberg	43	31	39%	35	103
Total	59	60	(2)%	51	147
Financials (In ₹ Crore, except as stated)
Revenue	823	681	21%	632	1,829
EBITDA	283	106	-	261	610
Consolidated CoP - ($/MT)	1,317	1,580	(17)%	1,310	1,336
Zinc LME Price ($/MT)	2,628	2,388	10%	2,335	2,314
Lead LME Price ($/MT)	1,901	2,045	(7)%	1,873	1,819

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	31
	Sensitivity: Internal (C3)

Segment Summary - Oil & Gas

OIL AND GAS (boepd)			Q3		Q2	9M
	FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Average Daily Gross Operated Production		159,621	172,189	(7%)	165,045	161,157
(boepd)
Rajasthan		132,174	145,075	(9%)	132,296	130,813
Ravva		16,770	13,360	26%	21,610	20,132
Cambay		10,677	13,754	(22%)	11,139	10,212
Average Daily Working Interest Production		100,998	110,656	(9%)	102,216	100,588
(boepd)
Rajasthan		92,522	101,553	(9%)	92,607	91,569
Ravva		3,773	3,006	26%	4,862	4,530
Cambay		4,271	5,501	(22%)	4,456	4,085
KG-ONN 2003/1		432	596	(28%)	291	405
Total Oil and Gas (million boe)
Oil & Gas- Gross operated
	14.7	15.8	(7%)	15.2	44.3
Oil & Gas-Working Interest		9.3	10.2	(9%)	9.4	27.7
Financials (In ₹ crore, except as stated)
Revenue		1,892	3,930	(52)%	1,666	4,947
EBITDA		852	2,761	(69)%	794	2,137
Average Oil Price Realization ($ / bbl)		43.9	57.2	(23%)	41.9	38.4
Brent Price ($/bbl)		44.2	63.3	(30%)	43.0	38.8
	VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION					32
			Sensitivity: Internal (C3)

Segment Summary - Oil & Gas

OIL AND GAS (boepd)			Q3		Q2	9M
	FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Average Daily Production
Gross operated		159,621	172,189	(7%)	165,045	161,157
Oil		136,687	153,472	(11%)	142,150	140,528
Gas (Mmscfd)		138	112	23%	137	124
Non-operated- Working interest		432	596	(28%)	291	405
Working Interest		100,998	110,656	(9%)	102,216	100,588
Rajasthan (Block RJ-ON-90/1)
Gross operated		132,174	145,075	(9%)	132,296	130,813
Oil		114,680	131,360	(13%)	115,757	115,863
Gas (Mmscfd)		105	82	28%	99	90
Gross DA 1		119,863	130,257	(8%)	120,620	118,557
Gross DA 2		12,119	14,415	(16%)	11,396	11,996
Gross DA 3		192	403	(52%)	280	260
Working Interest		92,522	101,553	(9%)	92,607	91,569
Ravva (Block PKGM-1)
Gross operated		16,770	13,360	26%	21,610	20,132
Oil		12,910	9,972	29%	17,151	15,844
Gas (Mmscfd)		23	20	15%	27	26
Working Interest		3,773	3,006	26%	4,862	4,530
Cambay (Block CB/OS-2)
Gross operated		10,677	13,754	(22%)	11,139	10,212
Oil		9,097	12,139	(25%)	9,242	8,821
Gas (Mmscfd)		9	10	(2%)	11	8
Working Interest		4,271	5,501	(22%)	4,456	4,085
Average Price Realization
Cairn Total (US$/boe)		42.3	55.3	(24%)	38.5	36.5
Oil (US$/bbl)		43.9	57.2	(23%)	41.9	38.4
Gas (US$/mscf)		5.3	6.5	(18%)	2.9	3.8
	VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION					33
			Sensitivity: Internal (C3)

Segment Summary - Aluminium

Particulars (in'000 tonnes, or as stated)		Q3		Q2	9M
FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Alumina - Lanjigarh	407	476	(14)%	462	1,345
Total Aluminum Production	497	483	3%	473	1,438
Jharsuguda-I	132	139	(5)%	131	396
Jharsuguda-II*	218	203	7%	200	617
245kt Korba-I	68	65	5%	66	199
325kt Korba-II	79	76	3%	75	227
Financials (In ₹ crore, except as stated)
Revenue	7,378	6,789	9%	6,395	19,816
EBITDA - BALCO	570	35	-	428	1,485
EBITDA - Vedanta Aluminium	1,492	761	96%	1,237	3,548
EBITDA Aluminum Segment	2,062	796	-	1,665	5,032
Alumina CoP - Lanjigarh ($/MT)	249	269	(7)%	227	230
Alumina CoP - Lanjigarh (₹ /MT)	18,400	19,100	(4)%	16,800	17,200
Aluminium CoP - ($/MT)	1,387	1,691	(18)%	1,288	1,315
Aluminium CoP - (₹ /MT)	102,300	120,100	(15)%	95,600	97,900
Aluminum CoP - Jharsuguda ($/MT)	1,337	1,675	(20)%	1,245	1,272
Aluminium CoP - Jharsuguda(₹ /MT)	98,600	119,000	(17)%	92,400	94,800
Aluminum CoP - BALCO ($/MT)	1,504	1,727	(13)%	1,390	1,416
Aluminium CoP - BALCO (₹ /MT)	110.900	122,700	(10)%	1,03,200	105,400
Aluminum LME Price ($/MT)	1,916	1,752	9%	1,704	1,709

* Including trail run production of 15.9kt in Q3 FY2021, 0.1kt in Q2 FY2021 and NIL in Q3 FY2020. For 9M FY2021 trail run production was 16.0kt vs NIL in previous year.

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	34
	Sensitivity: Internal (C3)

Aluminium profitability

$/t

Q2 'FY21

1,704

47

66

1,817

(534)

(479)

(275)

(51)

477

(139)

(333)

5

1,288

Q3 'FY21

					1,387
1,916	43	68	2,027
				603
					484
						300	76	565	136	323
										245	105
LME	Ingot	Value	Realisation	Alumina	Power	Other	Conversion	EBITDA	Dep	Int	PBT
	Premium	addition	Hot
				& Others
						Metal

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

35

Sensitivity: Internal (C3)

Segment Summary - Power

Particulars (in million units)		Q3		Q2	9M
FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Total Power Sales	2,066	2,282	(9)%	3,998	7,910
Jharsuguda	784	7	-	807	2,277
BALCO	395	387	2%	418	1,217
HZL Wind Power	67	68	(2)%	107	286
TSPL	820	1,820	(55)%	2,666	4,130
Financials (in ₹ crore except as stated)
Revenue	1,048	1,307	(20)%	1,860	3,926
EBITDA	386	379	2%	471	1,256
Average Cost of Generation(₹ /unit) ex. TSPL	2.32	3.14	(26)%	2.17	2.21
Average Realization (₹ /unit) ex. TSPL	3.06	3.91	(22)%	3.14	3.11
TSPL PAF (%)	60%	94%	-	81%	79%
TSPL Average Realization (₹ /unit)	2.06	3.47	(41)%	4.18	2.76
TSPL Cost of Generation (₹ /unit)	1.13	2.42	(53)%	3.32	1.86

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	36
	Sensitivity: Internal (C3)

Segment Summary - Iron Ore

Particulars (in million dry metric tonnes, or		Q3		Q2		9M
as stated)	FY 2021	FY 2020	% change YoY	FY2021		FY 2021
Sales	1.78	1.72	3%		1.49	4.28
Goa	0.58	0.20	-		0.16	1.32
Karnataka	1.20	1.52	(21)%		1.33	2.96
Production of Saleable Ore	1.44	1.19	21%		1.46	3.85
Goa	-	-	-		-	-
Karnataka	1.44	1.19	21%		1.46	3.85
Production ('000 tonnes)
Pig Iron	145	179	(19)%		186	440
Financials (In ₹ crore, except as stated)
Revenue	1,284	836	54%		878	2,801
EBITDA	570	214	-		256	1,011

Segment Summary - Steel

Particulars ('000 tonnes, or			Q3		Q2	9M
as stated)		FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Total Production		340	317	7%	260	868
Pig Iron		31	48	(36)%	74	141
Billet 1		18	(11)	-	6	153
TMT Bar		124	122	2%	66	220
Wire Rod		124	114	9%	81	264
Ductile Iron Pipes		43	44	(2)%	34	90
Financials (In ₹ crore, except as stated)
Revenue		1,321	1,067	24%	931	3,202
EBITDA		272	107	-	188	562
Margin ($/t)		111	55	-	94	83
1. Opening stock of billets used for further rolling of TMT Bars, Wire rods in Q3 FY20
	VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION					37

Sensitivity: Internal (C3)

Segment Summary - Copper India

Production (in '000 tonnes, or as stated)		Q3		Q2	9M
FY 2021	FY 2020	% change YoY	FY2021	FY 2021
Copper - Cathodes	25	20	22%	25	66
Financials (In ₹ crore, except as stated)
Revenue	2,664	1,835	45%	2,904	6,945
EBITDA	(31)	(61)	(15)%	(11)	(105)
Copper LME Price ($/MT)	7,166	5,881	22%	6,519	6,364

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION	38
	Sensitivity: Internal (C3)

Sales Summary

Sales volume	Q3 FY2021	Q3 FY2020	Q2 FY2021	9M FY2021
Zinc-India Sales
Refined Zinc (kt)	182	172	181	526
Refined Lead (kt)	53	41	57	155
Total Zinc-Lead (kt)	235	213	238	681
Silver (tonnes)	183	153	203	532
Zinc-International Sales
Zinc Refined (kt)	0	6	0	1
Metal in Zinc Concentrate (kt)	51	37	44	123
Total Zinc (Refined+Conc)	51	43	44	125
Metal in Lead Concentrate (kt)	7	10	8	21
Total Zinc-Lead (kt)	58	53	52	146
Aluminium Sales
Sales - Wire rods (kt)	93	76	86	232
Sales - Rolled products (kt)	10	7	8	22
Sales - Busbar and Billets (kt)	93	68	62	193
Total Value added products (kt)	196	151	155	446
Sales - Ingots (kt)	306	336	314	1,003
Total Aluminium sales (kt)	502	487	469	1,450

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

39

Sensitivity: Internal (C3)

Sales Summary

Sales volume	Q3	Q3	Q2	9M
FY 2021	FY 2020	FY 2021	FY2021
Iron-Ore Sales
Goa (Mn DMT)	0.6	0.2	0.2	1.3
Karnataka (Mn DMT)	1.2	1.5	1.3	3.0
Total (Mn DMT)	1.8	1.7	1.5	4.3
Pig Iron (kt)	153	176	182	444
Copper-India Sales
Copper Cathodes (kt)	1.5	1.0	1.3	3.9
Copper Rods (kt)	32	25	37	85.4
Total Steel Sales (kt)	333	317	271	908
Pig Iron	34	46	73	146
Billet	17	4	7	154
TMT Bar	120	126	70	238
Wire Rod	121	102	87	275
Ductile Iron Pipes	41	39	34	96

1. Based on Availability
2. Average excludes TSPL

Sales volume	Q3	Q3	Q2	9M
Power Sales (mu)	FY 2021	FY 2020	FY 2021	FY2021
Jharsuguda	784	7	807	2277
TSPL	820	1,820	2,666	4130
BALCO	395	387	418	1217
HZL Wind power	67	68	107	286

Total sales	2,066	2,282	3,998	7,910
Power Realisations
(INR/kWh)
Jharsuguda	2.54	-	2.60	2.57
TSPL1	2.06	3.47	4.18	2.76
Balco	3.96	4.01	3.94	3.92
HZL Wind power	3.83	3.79	4.03	4.04
Average Realisations2	3.06	3.91	3.14	3.11
Power Costs (INR/kWh)
Jharsuguda 600 MW	2.33	55.68	2.31	2.31
TSPL1	1.13	2.42	3.32	1.86
Balco	2.39	2.35	2.22	2.28
HZL Wind power	1.63	1.86	0.92	1.08
Average costs2	2.32	3.14	2.17	2.21

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

40

Sensitivity: Internal (C3)

Currency and Commodity Sensitivities

Foreign Currency - Impact of ₹ 1 depreciation in FX Rate

Currency	Increase in EBITDA
INR/USD	~ ₹ 600 crore / year

Commodity prices - Impact of a 10% increase in Commodity Prices
Commodity	YTD FY 2021	Full Year Impact on
Average price	EBITDA ($mn)
Oil ($/bbl)	39	60
Zinc ($/t)	2,314	177
Aluminium ($/t)	1,709	284
Lead ($/t)	1,819	37
Silver ($/oz)	22	52

VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION

41

Sensitivity: Internal (C3)

Group - Present Debt Structure

($ bn)

Vedanta Resources (Consolidated)

Volcan

9M FY21

9M FY21

EBITDA

2.5

EBITDA

-

Net Debt

11.8

Net Debt

0.2

Vedanta Resources (Standalone)

9M FY21

%

EBITDA

-

Divisions of Vedanta Limited

Net Debt

7.0

59%

⚫ Sesa Iron Ore

55.1%

⚫ Sterlite Copper

Vedanta Ltd (Consolidated)

⚫ Power (600 MW Jharsuguda)

9M FY21

%

EBITDA

2.5

100%

⚫ Aluminium

Net Debt

4.8

41%

(Odisha aluminium and power assets)

⚫ Cairn Oil & Gas*

Subsidiaries of Vedanta Ltd

64.9%			51%					100%		95.5%					100%
	Zinc India (HZL)				Bharat Aluminium (BALCO)		Zinc International^		Electrosteel Steels			Talwandi Sabo Power
				9M FY21		%			9M FY21		%				9M FY21	%			9M FY21			%						9M FY21		%
	EBITDA		1.1		43%		EBITDA	0.2		10%		EBITDA		0.1	3%		EBITDA	0.1			3%		EBITDA			0.1		5%
	Net Cash		1.5				Net Debt	0.4		3%		Net Debt		0.1	1%		Net Debt	0.4			3%		Net Debt			1.0		8%
	Note: Shareholding as on Dec 31, 2020
• *50% of the share in the RJ Block is held by a subsidiary of Vedanta Ltd								Listed entities						Unlisted entities
	^Skorpion 100%, BMM & Gamsberg 74%
		VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION																	42

Sensitivity: Internal (C3)

Results Conference Call Details

Results conference call is scheduled at 6:30 PM (IST) on January 29, 2021. The dial-in numbers for the call are given below:

	Event		Telephone Number
	Earnings conference call on January 29, 2021	India - 6:30 PM (IST)	India: [phone]
			Toll free: 1800 120 1221
			Universal access:
			[phone]
			[phone]
		Singapore - 9:00 PM (Singapore Time)	Toll free number
			800 101 2045
		Hong Kong - 9:00 PM (Hong Kong Time)	Toll free number
		800 964 448
		UK - 01:00 PM (UK Time)	Toll free number
		0 808 101 1573
		US - 8:00 AM (Eastern Time)	Toll free number
			1 866 746 2133
	For online registration	https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber
	=3706657&linkSecurityString=b904b5837
		Will be available on Vedanta limited website 30th Jan.'2021 onwards
	Call Recording	https://www.vedantalimited.com/Pages/FinancialReports.aspx
VEDANTA LIMITED - Q3 FY2021 INVESTOR PRESENTATION		43

Sensitivity: Internal (C3)