Vedanta : Q3FY20 Presentations

Q3 FY 2020

January 2020

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 FY2020 INVESTOR PRESENTATION

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Contents

Section	Presenter	Page
Q3 FY20 Review	Venkat, CEO	4
Financial Update	Arun Kumar, CFO	17
Appendix		22

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Q3 FY 2020

Q3 FY2020 Review

Venkat

ChiefExecutiveOfficer

Indian Economy: Many Factors are Expected to Drive Resurgence in Growth

The Reforms Push: Many Big Steps in 2019

Corporate tax cut	Real Estate Fund
Biggest corporate tax cut	₹ 25,000 crore fund for
in 28 years, rates slashed	the real estate sector,
by up to 10%. Outflow	for over 1,600 stalled
up to ₹ 1.45 lakh crores	housing projects

Bank Merger

Capital infusion of

• 70,000 crore into
  PSBs, to boost lending
  and improve the
  liquidity. 10 PSBs to be merged into 4 entities

IBC Amendment	RCEP Withdrawal	FDI Rules
Enforce a strict 330 day	India pulled out of the 16-	100% FDI in coal mining
timeline for the	nation trade bloc citing	and contract
insolvency resolution	adverse impact of the	manufacturing. Eased
process, including any	deal	sourcing norms for
legal challenge		single-brand retailers,
		approved 26% FDI in
		digital media

India expected to grow fastest among emerging economies with real GDP

growth rates >7% from 2020

Purchasing Manager's Index (PMI - Mfg.)
	54.3
54					52.7
53.9		52.7	52.5
			51.4
53.2	52.6			51.2
		52.1
	51.8
			51.4
					50.6

PMI-Mfg. shoots up from two-year low in October

GDP growth %

10.0
8.0					7.0	7.4	7.4	7.4	7.3
					5.9
6.0					5.8	5.7	5.6
				4.6				5.5
					4.8	4.8	4.8
					4.8
4.0									3.6
2.0					3.4	3.6	3.6	3.6
									1.4
0.0					1.6	1.4	1.3	1.3
2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
India	China		World	G7	Emerging market and developing economies

Source : IMF World Economic update, Oct 2019; GDP at constant prices

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Key Highlights: Q3 FY2020

Operational

▪Zinc IndiaMined Metal production 235 kt, up 7% q-o-q, Silver production up 11% q-o-q at 149 tonnes ▪Zinc InternationalGamsberg production up 28% q-o-q with cost lower by 4%

▪O&GEarly gas production facility ramped up to design capacity of 90 mmscfd

▪Aluminumcontinues structural reduction in cost, down 9% q-o-q at $1,691/t

Financial

▪Highest ever Lanjigarh alumina production 476kt, up 16% q-o-q with COP $269/t down 9% q-o-q▪TSPL achieved 94% plant availability

▪Iron Oreachieved highest ever sales of 1.5 million tonnes at Karnataka

▪Electrosteelproduction at 317 kt, up 18% q-o-q, lowest cost of sales since acquisition

▪EBITDA^ of ₹ 6,531 crore, up 10% y-o-y (up 45% q-o-q) with Industry leading EBITDA Margin* of 34%

▪Attributable PAT at ₹ 2,348 crore, up 49% y-o-y (up 9% q-o-q)

• Net debt at ₹ 23,384 crores with strong Net debt/EBITDA at 1.0x, lowest amongst Indian peers.
• Strong financial position with total cash & liquid investments of ₹ 35,205 cr.
• Zinc India recognized as "Disclosure Champion" in FTI Asia Disclosure Index 2019

Awards &	▪Vedanta Oil & Gas and BALCO won "National Safety Awards" for consistent safety performance
Recognition

• BALCO won "Indian Manufacturing Excellence Awards 2019" by Frost & Sullivan

^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.) *EBITDA Margin excludes custom smelting at Copper India & Zinc India and includes impact of one-offs. EBITDA Margin (excl. customs & impact of one-off) is 27%

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Heading Towards - Zero Harm, Zero Waste, Zero Discharge

Safety Program Update

1 fatality in Q3	•Investigation completed; action-plan in place to prevent
repeats
Visible felt leadership	•Toolkit to ease communication during VFL rolled out @ Cairn
•Revised VFL scorecard @ BALCO
Controls-in-place for	•LOTOV implementation @ ESL
safety critical tasks	•Logistic Safety Council @ HZL
	•Launch of driver simulator @ Cairn
Business partner	•Review of BP pre-qualification and on-boarding process
engagement	•Committee established to aid BP enhance safety
	deliverables

Environment Update

Tailings	•	Continuous improvements as
Management		per Golder recommendations
		are taking place across all Bus
	•Responded to the Church of
		England request for TSF
		disclosures
Air emissions	•	Dust suppression mechanisms
management		installed at Jharsuguda and
		VGCB

										Water Consumed & Recycled		Waste Recycling (mMT)
											(m3)			(High volume low toxicity)
12	Fatality					LTIFR			242	242	245		17	17
													1413
	9	9						0.71				180		14	1110
	7		0.49	0.40		0.46						8
			5	0.35
							65	71	67
										53
2016	2017	2018	2019	9M	2016	2017	2018	2019	9M	2017	2018	2019	9M FY20	2017	2018	2019	9M FY20
				FY20					FY20		Consumed	Recycled		Generation

1250thNand Ghar* Vedanta's flagship CSR project has touched a new milestone in transforming lives of India's

Women and Children

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

* women and children care center

7

Zinc India: Strong Foundation Driving Growth and Transformation

RAM UG Crusher Commissioned

Hauling from RAM UG Shaft expected to start

in Feb 2020

All major Projects under 1.2 Mtpa MIC Capacity

to be completed in Q4

Smelter Debottlenecking to 1.13 Mtpa

completed, in line of MIC capacity of 1.2 Mtpa

Vedanta set to become the Largest Zinc-Lead

Miner Globally in next 2 years

in Kt

1500

1200

Metal

900

Mined

India

600

2019

300

Zinc

0

Glencore Vedanta Teck

Nexa

Boliden Sumitomo MMG

Zhongjin

Zijin

Minera

Resources

Limited

Lingnan

Mining

Volcan

Fully integrated operations with matching mining

and smelting capacities

	1200
tonnes	1000
600
	800
'000	400
	200
	0
		FY 2018		FY 2019		FY 2020e
				Zinc Capacity		Lead Capacity		MIC Production

	Quadrupled UG Performance since start of
		Expansion in FY 2013	>54%
Mnt			13.8
Production		10.9
		8.6
		6.0
Ore	3.8	4.4
2.5

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020e

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Zinc India: Production Grows as Projects Approach Completion

Performance Update

Quarter Performance:

• MIC Production 235kt, up 7%q-o-q
• Metal Production 219kt, up 4%q-o-q
• Silver Production 149 tonnes, up 11%q-o-q
• COP at $1,077/t, up 3%q-o-q due to higher mine development and one time repair & maintenance cost partly offset by higher volume, operational efficiencies and lower coal cost

Strong Underground Mine Performance with 25% CAGR

>54%

249 360 481 223 936

638	529	426		724
FY2015	FY2016	FY2017	FY2018	FY2019	FY2020e
		Open Cast			Underground

Mine Performance / Expansion Update

Rampura Agucha

• Mine crosses 4.0 Mtpa Ore Production run rate in Q3
• Set to achieve 4.5 Mtpa Ore production run rate in Q4

Sindesar Khurd

• Q3 Mined Metal Production up 16%q-o-q
• Q3 Silver Grades up 16%q-o-q

Zawar

• Set to deliver record Mined Metal Production in FY20
• 16% higher production in 9M vs last year
• Dry Tailing Plant commissioned
• Two Paste Fill commissioning is underway in Zawar expected to start back filling in Feb 2020

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Zinc International: Gamsberg Positioning for Long Term Value Creation

Performance Update

Quarter Performance:

• Q3 production at 60kt, 5% lower
• COP of $1,580/t, slightly lowerq-o-q

Nine Months Performance:

• Production 183kt, up 95%
• COP of $1,628/t, down 24%

Consolidated Production and COP

Gamsberg

• Production at 31kt, up 28%q-o-q
• COP at $1,420 ($833/t excl. TCRCs), down 4%q-o-q
• Ore mining run rate sustainably ramped up to 4.0 Mtpa
• ~1.8 Mt of healthy ore stockpile ahead of plant
• Crusher consistently running on throughput of ~700 tph better than design throughput of 685 tph
• Best ever Plant production in Nov with 12kt MIC

1,724

2,131 183

1,584 1,580

941,628

Production and COP

1474	1397	1477	1420
912			833

60 63 60

Q1 FY20	Q2 FY20	Q3 FY20		9M FY19	9M FY20
			MIC (kt)		Cost ($/t)

			961	1,005
14	23	24	31
Q4 FY19	Q1 FY20	Q2 FY20		Q3 FY20
		MIC (kt)		Cost Excl TCRCs($/t)		Cost ($/t)

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Oil & Gas: Portfolio being monetized to drive multi-fold growth

Performance Update	Production Ramp Up (kboepd)

▪193 wells drilled, 72 wells hooked up		225
▪Early gas production facility ramped up to	178
design capacity of 90 mmscfd. New Terminal
construction progressing as per plan.
▪All wells drilled in Mangala Infill, Bhagyam
and Aishwariya Polymer and ABH program;	9M FY20	FY20 Exit
well hook up in progress.

▪	MPT shutdown planned in February for		Key Drivers for Production Ramp Up
	maintenance & key growth projects tie-ins to
				Q3 FY20 Exit		H2 FY20 Exit
	enable production enhancement. The overall
			193		240
	Wells Drilled
	impact of shutdown will be 7-10 days
	equivalent production. This shutdown will			72
	Wells Hooked Up		120
	facilitate next growth phase.
	Liquid Handling		1.20 mmblpd	1.25 mmblpd
▪Ravva drilling commenced	Capacity

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Oil & Gas: Building for Future Growth

OALP Blocks

51	Well Diversified	~60,000 Acreage
40 Onshore
	sq km
	11 Offshore
500	Peak Production	5.5	Resources (bnboe)
(kboepd)
Upside Scenario
	Upside Scenario
$800	Capex		Exploratory Wells
commitment	192
mn	To be drilled
For exploration

phase

• Full Tensor Gravity (FTG)survey completed in Assam block; to be extended to other blocks as well
• Seismic Contractsawarded for Assam, Rajasthan and Cambay blocks; acquisition commenced in Assam
• Drilling contract expected to be awarded in Q4

PSC Blocks

Work

Investment Resources ProgramDrilling

($mn) (mmboe) (Wells)Status

Rajasthan	EOI released for integrated exploration &
Exploration
appraisal work program

Rajasthan	75	200	14	5 wells
Tight Oil	drilled
Appraisal
KG -	60	300	2	Evaluation of
Offshore	discoveries

ongoing

Strong exploration fundamentals supports reserves & resources growth

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Aluminium: Achieving Design Structure

Structural Reduction in Cost

2,018

1,852

1,7641,769

1,691

Q1 FY20

Q2 FY20

Q3 FY20

9M FY19

9M FY20

Alumina Production & COP

1,332

1,077

446	410	476
284	293	269	333	281
Q1 FY20	Q2 FY20	Q3 FY20	9M FY19	9M FY20
	Production (kt)	COP ($/T)

Performance Update

Quarter Performance:

• Aluminium COP at $1,691/t, down 9%q-o-q
• Highest ever Lanjigarh production 476 kt, up 16%q-o-q
• Lanjigarh COP at $269/t, down 8%q-o-q
• First steps in Jamkhani coal block: Entered into Coal Mines Development and Production Agreement (CMDPA) with Govt of India

Nine Months Performance:

• Aluminium COP at $1,769/t, down 12%
• Lanjigarh production 1,332 kt, up 24%
• Lanjigarh COP at $281/t, down 16%
• Local bauxite meeting over half of the total requirement

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Aluminium: Significant progress on Strategic levers Continues

2,074

1,691

1,500

1,576

Coal

Alumina

Bauxite

Others

Initiatives

Ramp Up

Sourcing

Q3 FY19

Q3 FY20 Dec 2019

Target

	Initiatives	Action Plan
	Coal	▪Increase Linkages through participation in Tranche V & VI, Coal Block Auctions
	▪Target coal security 90% of requirement, currently at 72%
	Initiatives
	▪Balance Requirements: E-Auctions, Actively evaluate options available for best deals
	Alumina	▪Phase-I expansion to 2.7 Mtpa
	▪Medium term expansion to 4 Mtpa
	Ramp Up
	▪Easing of Alumina prices to sub $300/t levels
	Bauxite	▪Efforts to significantly increase mine output
	Sourcing	▪Exploration of new resources under the New Mineral Policy
	Carbon &	▪Logistics: Shifting from road to rail
	▪Procurement efficiencies: Strategic partnerships with key suppliers, long-term contracts
	Others
	▪Ongoing improvement in power plant operating parameters, Fixed cost reduction
VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION	14

Other Assets: Iron ore and Electrosteel Steels

Iron Ore

Performance Update

Quarter Performance:

• Karnataka sales 1.5 Mnt, highest ever
• Pig Iron production 179kt, up 2%q-o-q

Nine Months Performance:

• Karnataka sales 4.1 Mnt, significantly up
• Pig Iron production 533kt, up 6%
  Karnataka Sales (Mnt)

									4.1
1.2	1.4	1.5			1.2
Q1 FY20	Q2 FY20	Q3 FY20	9M FY19	9M FY20
		Pig Iron Production (kt)
								502	533
178	176	179
	Q1 FY20	Q2 FY20	Q3 FY20	9M FY19 9M FY20

Electrosteel Steels

Performance Update

Quarter Performance:

• Production 317kt, up 18%q-o-q
• Sales 317kt, up 12%q-o-q
• Margin at $55/t, up significantlyq-o-q on account of operational efficiencies and favourable input commodity prices

Nine Months Performance:

• Production 911kt, up 7%
• Sales 874kt, up 10%
• Margin at $61/t, down 47% on account of softening of steel prices in domestic market

Sales (kt)	792	874

273 283 317

Q1 FY20 Q2 FY20 Q3 FY20

9M FY19 9M FY20

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Strategy to Enhance Long Term Value

Continue Focus on World Class ESG Performance

Augment Our Reserves & Resources Base

Delivering on Growth Opportunities

Optimise Capital Allocation & Maintain Strong Balance Sheet

Operational Excellence

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Q3 FY 2020

Financial Update

Arun Kumar

ChiefFinancialOfficer

Financial snapshot Q3

EBITDA^	Attributable PAT	ND/EBITDA
₹ 6,531 cr	₹ 2,348 cr	1.0x

Up 45% q-o-q

Up 9% q-o-q

Lowest among Indian peers

EBITDA Margin *	ROCE #	Cash & Cash Equivalents
34%	10.9%	₹ 35,205 cr

Industry leading margin	Remains strong	Strong liquidity

• Includes one off for past exploration cost recovery at Oil & Gas business (₹1,276cr)& true-up of RPO liability in line with Regulatory changes at Aluminium Business (₹460cr)* EBITDA Margin excludes custom smelting at Copper India and Zinc-India and includes impact of one offs. Excluding one offs margin is 27%.
  #ROCE has been calculated based on LTM basis

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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EBITDA Bridge (Q2 FY 2020 vs. Q3 FY 2020)

(In ₹ crore)

Oil & Gas	1435
HZL	(42)

Zinc, lead & Silver	52
Oil & Gas	(98)
Aluminium	(76)
Electrosteel	(65)

RPO	517
Profit Petroleum	(282)

1,327 6,531

2484,788

4,497	257	195	105

Market & Regulatory

• 291 crore

416

Al	261
ESL	130
Cairn	(125)
HZL	98
IOB	56

Q2 FY 20	LME/ Brent /	Input Commodity	Currency	Regulatory &	Adjusted EBITDA Volume, Cost &	Others	Q3 FY 20
	Premiums	Inflation		Profit Petroleum	Marketing

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Net Debt for Q3 FY 2020

(In ₹ crore)

			Creditors/Customer Advance	(5,067)
			Debtor Movement	(920)
			Inventory Built-up	(180)
26,956
					2,624	78	211	23,384
	20,081		5,355	6,167
				FCF Post Capex
				₹ (3,436) Cr
Net Debt 31st	Net Debt 30	th	CF from	WC	Capex	ESL	Translation	Net Debt 31st
Mar'19		Movements		Share	& others	Dec'19
Sep'19		Operations
		(Incl Buyer's		Acquisition
				credit)

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Balance Sheet

Term Debt Maturities - ₹ 41,374 Crore ($5.8 bn) (as of Dec 31, 2019)

			12.7
			3.8				9.8
		8.4
Crore		3.0			5.4	4.3	5.3
'000
		8.9	2.7
₹	0.8	5.4
					3.1	4.5
					2.7
	0.1				1.2
	0.7
	FY20	FY21		FY22		FY23	FY24	FY25 & Later
				Standalone		Subsidiaries

Average Term Debt Maturity (years)

	3.2	3.2	3.3	3.3
3.1		3.1
	2.7

Mar-16Mar-17Mar-18Mar-19Jun-19Sep-19Dec-19

• Liquidity
• • Cash and investments at ₹ 35,205 cr rated Tier I by CRISIL;
  • Undrawn line of credit c. ₹ 8,400 crore
• Net Interest -

• • Interest Income -Returns ~7.2%.
  • Interest Expense -Maintained ~8%
• Average term debt maturity maintained above 3 years

Net Debt / EBITDA - lowest among peers

1.3

1.11.0

0.90.9

0.6

0.4

FY'16

FY'17

FY'18

FY'19 Q1 FY'20 Q2 FY'20 Q3 FY'20

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Q3 FY 2020

Appendix

Income Statement

Depreciation & Amortization

• Higher 4%y-o-y due to increased ore production at Zinc India and commencement of Gamsberg operations partially offset by lower charge at Skorpion.
• Lower 4%q-o-q on account of lower volumes at Oil & Gas and Skorpion business and accelerated depreciation in Zinc India taken in the last quarter.

Finance Cost

• Lower 9%y-o-y and 8% q-o-q, primarily due to repayment of high cost debt and fall in interest rates in line with market trend.

Investment Income

• Investment income for Q3 FY20 was at ₹ 628 crore, lower by 40%y-o-y and 25% q-o-q primarily on account of mark to market loss in Q3 FY20 compared to mark to market gain in Q3 FY19 and Q2 FY20.

Taxes

• Normalised tax rate for the quarter is 30% in line with the prior guidance, compared to 33% in Q3 FY19 due to change in profit mix amongst businesses.

In ₹Crore	Q3	Q3	Q2
FY'20	FY'19	FY'20
Revenue from operations	21,126	23,435	21,739
Other operating income	234	234	219
EBITDA^	6,531	5,953	4,497
Depreciation & amortization	(2,291)	(2,207)	(2,395)
Finance Cost	(1,232)	(1,358)	(1,340)
Investment Income	628	1,043	832
Exchange gain/(loss)	-	47	(50)
Exceptional item Credit/(Expense)	168	-	(422)
Profit Before Taxes	3,806	3,478	1,122
Tax Charge/(Credit)	1,141	1,146	(1,609)
Profit After Taxes	2,665	2,332	2,731
Attributable profit	2,348	1,574	2,158
Basic Earnings Per Share (EPS)	6.34	4.25	5.83
(₹/share)
Minorities % (after exceptional item)	12%	33%	21%

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

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Entity Wise Cash and Debt

									(In ₹ crore)
		Dec 31, 2019			Sep 30, 2019			Dec 31, 2018
Company
Debt	Cash & LI	Net Debt	Debt	Cash & LI	Net Debt	Debt	Cash & LI	Net Debt
Vedanta Limited Standalone	36,569	3,808	32,761	37,956	7,162	30,794	42,708	4,784	37,924
Cairn India Holdings	3,157	6,900	(3,743)	1,213	5,180	(3,968)	3,330	7,195	(3,865)
Limited1
Zinc India	2,990	22,535	(19,545)	-	19,655	(19,655)	4,935	17,483	(12,548)
Zinc International	428	395	33	423	833	(410)	133	275	(142)
BALCO	4,173	11	4,162	4,412	169	4,243	5,019	9	5,010
Talwandi Sabo	6,289	181	6,108	6,477	1,265	5,212	8,814	10	8,804
Vedanta Star Limited2	3,381	30	3,351	3,386	27	3,359	3,367	32	3,335
Others3	1,602	1,345	257	2,031	1,526	506	1,755	742	1,013
Vedanta Limited	58,589	35,205	23,384	55,898	35,817	20,081	70,061	30,530	39,531
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 96% (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 FY2020 INVESTOR PRESENTATION

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EBITDA Bridge (Q3 FY2019 vs. Q3 FY2020)

(In ₹ crore)

						Oil & Gas	1264
Aluminum	(767)
Oil & Gas	(270)					Aluminum	(444)
						Others	(98)
Steel	(242)
Zinc, Lead & Silver	(211)
IOB	(94)		RPO	347
			Profit Petroleum	(55)

6876,531

5,953	1,584		281	241
	1,066	113	5,603
					Al		441
					IOB		162
					ESL		89
					HZL		(329)
					Cairn		(152)

Market & Regulatory

• (350) crore

Q3 FY19	LME/ Brent /	Input	Currency	Regulatory &	Adjusted	Volume and	Others	Q3 FY20
	Premiums	Commodity		Profit	EBITDA	Cost & Mktg
		Inflation		Petroleum

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Zinc India

Production(in '000 tonnes, or as stated)		Q3		Q2	9M
FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Mined metal content	235	247	(5)%	219	668
Integrated metal	219	242	(9)%	210	649
Refined Zinc - Integrated	178	188	(5)%	166	516
Refined Lead - Integrated1	41	54	(24)%	44	132
Refined Saleable Silver - Integrated (in tonnes)2	149	178	(16)%	134	442
Financials(In ₹crore, except as stated)
Revenue	4,600	5,467	(16)%	4,395	13,866
EBITDA	2,274	2,839	(20)%	2,066	6,769
Zinc CoP without Royalty (₹/MT)	76,600	71,900	7%	73,800	74,900
Zinc CoP without Royalty ($/MT)	1,077	997	8%	1,048	1,065
Zinc CoP with Royalty ($/MT)	1,402	1,332	5%	1,361	1,401
Zinc LME Price ($/MT)	2,388	2,631	(9)%	2,348	2,495
Lead LME Price ($/MT)	2,045	1,964	4%	2,028	1,988
Silver LBMA Price ($/oz)	17.3	14.5	19%	17.0	16.4

1. Excludes captive consumption of 1,937 tonnes in Q3 FY 2020 vs 1,554 tonnes in Q3 FY 2019.
2. Excludes captive consumption of 10.1 MT in Q3 FY 2020 vs 8.1 MT in Q3 FY 2019.

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Zinc International

		Q3		Q2	9M
Production(in'000 tonnes, or as stated)
FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Refined Zinc - Skorpion	11	20	(45)%	23	52
Mined metal content- BMM	18	18	2%	16	53
Mined metal content- Gamsberg*	31	3	-	24	78
Total	60	41	48%	63	183
Financials(In ₹Crore, except as stated)
Revenue	681	622	9%	890	2,395
EBITDA	106	206	(49)%	207	441
Consolidated CoP - ($/MT)	1,580	1,757	(10)%	1,584	1,628
Zinc LME Price ($/MT)	2,388	2,631	(9)%	2,348	2,495
Lead LME Price ($/MT)	2,045	1,964	4%	2,028	1,988

*Including Trial Run Production of 3kt in Q3 FY'19

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Oil & Gas

		Q3		Q2	9M
Production (in boepd, or as stated)	FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Average Daily Production
Gross operated	172,189	187,191	(8)%	178,744	176,986
Oil	153,472	176,997	(13)%	160,991	160,127
Gas (Mmscfd)	112	61	84%	107	101
Non operated- Working interest	596	108	-	565	442
Rajasthan (Block RJ-ON-90/1)
Gross operated	145,075	151,574	(4)%	150,421	148,213
Oil	131,360	146,534	(10)%	137,235	136,304
Gas (Mmscfd)	82	30	-	79	71
Ravva (Block PKGM-1)
Gross operated	13,360	16,775	(20)%	12,544	13,130
Oil	9,972	13,881	(28)%	9,966	10,290
Gas (Mmscfd)	20	17	18%	15	17
Cambay (Block CB/OS-2)
Gross operated	13,754	18,842	(27)%	15,780	15,643
Oil	12,139	16,581	(27)%	13,791	13,534
Gas (Mmscfd)	10	14	(29)%	12	13

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Oil & Gas

Production (in boepd, or as stated)		Q3		Q2	9M
FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Average Daily Working Interest Production	110,656	117,521	(6)%	114,994	113,403
Rajasthan	101,553	106,102	(4)%	105,294	103,749
Ravva	3,006	3,774	(20)%	2,822	2,954
Cambay	5,501	7,537	(27)%	6,312	6,257
KG-ONN 2003/1	596	108	-	565	442
Average Price Realization
Brent Price ($/bbl)	63.3	68.8	(7)%	61.9	64.7
Cairn Total (US$/boe)	55.3	64.6	(14)%	58.7	59.6
Oil (US$/bbl)	57.2	65.1	(12)%	61.1	61.8
Gas (US$/mscf)	6.5	8.7	(25)%	5.7	6.3
Financials (In ₹crore, except as stated)
Revenue	3,930	3,350	17%	3,196	10,257
EBITDA	2,761	1,973	40%	1,817	6,402

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Aluminium

Particulars (in'000 tonnes, or as stated)		Q3		Q2	9M
FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Alumina - Lanjigarh	476	404	18%	410	1,332
Total Aluminum Production	483	502	(4)%	476	1,429
Jharsuguda-I	139	137	-	137	409
Jharsuguda-II1	203	221	(7)%	201	604
245kt Korba-I	65	66	(2)%	63	190
325kt Korba-II	76	79	(3)%	75	226
BALCO 900 MW (MU)	202	29	-	392	958
Financials(In ₹crore, except as stated)
Revenue	6,789	7,605	(11)%	6,576	20,199
EBITDA - BALCO	35	356	(90)%	62	179
EBITDA - Vedanta Aluminium	761	(94)	-	(176)	682
EBITDA Aluminum Segment	796	262	-	(114)	861
Alumina CoP - Lanjigarh ($/MT)	269	308	(13)%	293	281
Alumina CoP - Lanjigarh (₹/MT)	19,100	22,200	(14)%	20,600	19,800
Aluminium CoP - ($/MT)	1,691	2,074	(19)%	1,852	1,769
Aluminium CoP - (₹/MT)	120,100	1,49,500	(20)%	130,300	124,400
Aluminum CoP - Jharsuguda ($/MT)	1,675	2,072	(19)%	1,883	1,771
Aluminium CoP - Jharsuguda(₹/MT)	119,000	1,49,300	(20)%	132,500	124,600
Aluminum CoP - BALCO ($/MT)	1,727	2,079	(17)%	1,775	1,763
Aluminium CoP - BALCO (₹/MT)	122,700	1,49,900	(18)%	124,900	124,000
Aluminum LME Price ($/MT)	1,752	1,971	(11)%	1,762	1,769

1. Including trial run production of nil in Q3 FY2020 and 14 kt in Q3 FY2019.

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Aluminium profitability

$/t
Q2 '20	1,761	61	83	1,905	(697)	(774)	(381)	(81)	(28)	-	(28)	-	(133)	(245)	(406)
						1,852
Q3 '20
						1,691
	1,752	59	67	1,879
					625
						698
							368	90		132*	230	49*	138
							98		247
															(106)

Ingot

Value

Realisation Alumina

Power Other Hot

Conversion Underlying RPO

Reported

Exceptional Dep

245

PBT

LME

Int

Premium

addition

Metal

& Others

EBITDA

EBITDA

Item

*True-up of RPO liability in line with regulatory changes at Aluminium business of ₹628 Crore

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Power

Particulars (in million units)		Q3		Q2	9M
FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Total Power Sales	2,282	3,165	(28)%	3,253	9,055
Jharsuguda	7	136	(94)%	20	294
BALCO1	387	438	(12)%	454	1,266
HZL Wind Power	68	48	41%	165	366
TSPL	1,820	2,543	(28)%	2,615	7,129
Financials (in ₹crore except as stated)
Revenue	1,307	1,623	(20)%	1,646	4,656
EBITDA	379	364	4%	419	1,191
Average Cost of Generation(₹/unit) ex. TSPL	3.14	2.92	8%	2.35	2.61
Average Realization (₹/unit) ex. TSPL	3.91	3.58	9%	3.88	3.65
TSPL PAF (%)	94%	81%	-	92%	94%
TSPL Average Realization (₹/unit)	3.47	4.19	(17)%	4.29	4.07
TSPL Cost of Generation (₹/unit)	2.42	3.18	(24)%	3.29	3.04

1. BALCO IPP:received an order dated January 1, 2019 from CSERC for Conversion of 300 MW IPP to CPP.

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Iron Ore

Particulars(in million dry metric tonnes, or		Q3		Q2	9M
as stated)	FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Sales	1.7	0.7	-	1.4	4.3
Goa	0.2	0.1	-	0.0	0.2
Karnataka	1.5	0.6	-	1.4	4.1
Production of Saleable Ore	1.2	0.7	75%	1.3	3.6
Goa	-	-	-	-	-
Karnataka	1.2	0.7	75%	1.3	3.6
Production ('000 tonnes)					-
Pig Iron	179	163	10%	176	533
Financials(In ₹crore, except as stated)
Revenue	836	658	27%	757	2,390
EBITDA	214	101	-	201	529

Segment Summary - Steel

Particulars('000 tonnes, or		Q3		Q2	9M
as stated)	FY 2020	FY 2019	% change YoY	FY2020	FY 2020
Total Production	317	325	(2)%	270	911
Pig Iron	48	47	2%	45	121
Billet 1	(11)	24	-	27	31
TMT Bar	122	111	10%	89	339
Wire Rod	114	103	10%	78	300
Ductile Iron Pipes	44	40	9%	31	120
Financials (In ₹crore, except as stated)
Revenue	1,067	1,198	(11)%	986	3,157
EBITDA	107	249	(57)%	18	321
Margin ($/t)	55	120	(38)%	25	61

1. Opening stock of billets used for further rolling of TMT Bars, Wire rods in Q3.

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Segment Summary - Copper India

Production(in '000 tonnes, or as stated)		Q3		Q2	9M
FY 2020	FY 2019	% change YoY	FY 2020	FY 2020
Copper - Cathodes	20	23	(13)%	16	52
Financials(In ₹crore, except as stated)
Revenue	1,835	2,763	(34)%	3,185	6,797
EBITDA	(61)	(75)	(18)%	(105)	(232)
Copper LME Price ($/MT)	5,881	6,172	(5)%	5,802	5,928

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Sales Summary

Sales volume	Q3 FY2020	Q3 FY2019	Q2 FY2020	9M FY2020
Zinc-India Sales
Refined Zinc (kt)	172	187	168	507
Refined Lead (kt)	41	54	44	132
Total Zinc-Lead (kt)	213	241	212	639
Silver (tonnes)	153	178	135	442
Zinc-International Sales
Zinc Refined (kt)	6	16	23	46
Metal in Zinc Concentrate (kt)	37	6	34	99
Total Zinc (Refined+Conc)	43	22	57	145
Metal in Lead Concentrate (kt)	10	11	11	32
Total Zinc-Lead (kt)	53	33	67	177
Aluminium Sales
Sales - Wire rods (kt)	76	90	78	238
Sales - Rolled products (kt)	7	6	7	20
Sales - Busbar and Billets (kt)	68	105	89	285
Total Value added products (kt)	151	201	174	543
Sales - Ingots (kt)	336	294	307	906
Total Aluminium sales (kt)	487	495	481	1,449

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Sales Summary

Sales volume	Q3	Q3	Q2	9M
FY 2020	FY 2019	FY 2020	FY2020
Iron-Ore Sales
Goa (Mn DMT)	0.2	0.1	-	0.2
Karnataka (Mn DMT)	1.5	0.6	1.4	4.1
Total (Mn DMT)	1.7	0.7	1.4	4.4
Pig Iron (kt)	176	155	159	507
Copper-India Sales
Copper Cathodes (kt)	1.0	2	0.7	1.76
Copper Rods (kt)	25	31	22	68
Total Steel Sales (kt)	317	290	283	874
Pig Iron	46	50	47	117
Billet	4	3	16	21
TMT Bar	126	102	100	335
Wire Rod	102	99	93	296
Ductile Iron Pipes	39	36	29	105

1. Based on Availability

Sales volume	Q3	Q3	Q2	9M
Power Sales (mu)	FY 2020	FY 2019	FY 2020	FY 2020
Jharsuguda	7	136	20	294
TSPL	1,820	2,543	2,615	7,129
BALCO 2	387	438	454	1,266
HZL Wind power	68	48	165	366

Total sales	2,282	3,165	3,253	9,055
Power Realisations
(INR/kWh)
Jharsuguda	-	3.15	1.68	2.18
TSPL1	3.47	4.19	4.29	4.07
Balco 2	4.01	3.67	3.90	3.88
HZL Wind power	3.79	3.93	4.06	4.04
Average Realisations3	3.91	3.58	3.88	3.65
Power Costs (INR/kWh)
Jharsuguda 600 MW	55.68	4.68	17.28	6.20
TSPL1	2.42	3.18	3.29	3.04
Balco 2	2.35	2.45	2.33	2.27
HZL Wind power	1.86	2.18	0.62	0.88
Average costs3	3.14	2.92	2.35	2.61

2. BALCO IPP:received an order dated January 1, 2019 from CSERC for Conversion of 300 MW IPP to CPP.	3. Average excludes TSPL
	VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION	36

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	Q3 FY 2020	Full Year Impact on
Average price	EBITDA ($mn)
Oil ($/bbl)	63	103
Zinc ($/t)	2,388	195
Aluminium ($/t)	1,752	275
Lead ($/t)	2,045	37
Silver ($/oz)	17	33

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Group Structure

Vedanta

Resources Ltd

Divisions of Vedanta Limited

79.4%

50.1%

⚫Sesa Iron Ore

⚫Sterlite Copper

Konkola

Vedanta Ltd

⚫

Power (600 MW Jharsuguda)

Copper

⚫Aluminium

Mines (KCM)

(Odisha aluminium and power assets)

⚫Cairn Oil & Gas*

Subsidiaries of Vedanta Ltd

64.9%

51%

100%

100%

96%

Bharat

Zinc

Talwandi Sabo

Zinc India

International

Electrosteels

Aluminium

Power

(HZL)

(Skorpion -100%

Steel limited

(BALCO)

(1,980 MW)

BMM-74%)

Note: Shareholding as on Dec 31, 2019

*50% of the share in the RJ Block is held by a subsidiary of Vedanta Ltd

Listed entities

Unlisted entities

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

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Results Conference Call Details

Results conference call is scheduled at 6:00 PM (IST) on January 31, 2020. The dial-in numbers for the call are given below:

Event		Telephone Number
Earnings conference call on January 31, 2020	India - 6:00 PM (IST)	India:
		Local Dial In: [phone]
		Toll free:1800 120 1221, 1800 266
		1221
		Universal access:
		[phone]
		[phone]
	Singapore - 8:30 PM (Singapore Time)	Toll free number: 800 101 2045
		Toll number: 6531575746
	Hong Kong - 8:30 PM (Hong Kong Time)	Toll free number 800 964 448
		Toll number: 85230186877
	UK - 12:30 PM (UK Time)	Toll free number 0 808 101 1573
	Toll number: 442034785524
	US - 7:30 AM (Eastern Time)	Toll free number 1 866 746 2133
	Toll number: 13233868721
For online registration	https://services.choruscall.in/DiamondPassRegistration/register?confirmationNumber=1
06340&linkSecurityString=35240b00
Replay of Conference Call		India[phone]
(January 31, 2020 to February 7, 2020)
	Passcode: 63835#

VEDANTA LIMITED - Q3 FY2020 INVESTOR PRESENTATION

39