India is richly endowed with natural resources that can fuel its future growth. At Vedanta, it is our desire to drive this transforming growth. We are working with all stakeholders, elements transforming elements to unlock India’s vast potential. vedanta book_Flaps_dp.indd 1 6/23/2017 4:34:58 PM Our initiatives included building schools, hospitals, educating children, Last year we empowering contributed women and US $6 billion to creating skill the countries’ development exchequers, in programmes for the form of taxes the youth in our & royalties, and communities. At invested over US Vedanta, this is not $18 million in social just CSR, it’s good development to business and it is benefit over 2.2 important to plough million people back 75% of wealth globally. created to social good. 2 vedanta book_Flaps_dp.indd 2 6/23/2017 4:34:59 PM Empowering Growth We are a London Stock Exchange listed, globally diversified natural resources company with interests in Aluminium, Zinc, Lead, Silver, Power, Copper, Iron Ore, and Oil & Gas. We operate primarily in India and Africa, with our operations spread across four continents. With our world class assets today, we are among the global leaders in the diversified natural resources industry contributing towards the economic & social development of communities and economies through our operations. >$11.5 Billion revenue >US$1.5 Billion strong free cash flow >$6 Billion paid in taxes & royalties >2.2 Million people benefited through sustainable development initiatives >$18 Million investment on community development A strong workforce of 71,667 employees (direct + indirect) vedanta book Without Flap_dp Option.indd 1 6/23/2017 5:32:54 PM Our Business Vedanta’s geographic foothold spans across India, Zambia, Namibia, South Africa, Ireland and Australia. Its portfolio includes: ZINC - LEAD – SILVER India’s leading producer of Zinc-Lead, and the world’s second largest integrated Zinc-Lead producer. A leading Silver producer globally. India | Namibia | South Africa | Ireland 2 vedanta book Without Flap_dp Option.indd 2 6/23/2017 5:32:55 PM IRON ORE Steady production ramp-up makes us well-positioned for market recovery. India’s largest producer-exporter in the private sector. India | West Africa OIL & GAS Operates ~26% of India’s oil production. One of the largest exploration and production companies in India. India | South Africa 3 vedanta book Without Flap_dp Option.indd 3 6/23/2017 5:32:56 PM COPPER Among the leading copper producers in India, at 0.4 mn tonnes per annum. Operates one of the most efficient, lowest cost custom copper smelters. Among Zambia’s largest private sector employers. Africa | India | Australia 4 vedanta book Without Flap_dp Option.indd 4 6/23/2017 5:32:58 PM ALUMINIUM Leading aluminium producer in India. Efficient asset operator in the lower half of the cost curve. Largest capacity in India at 2.3mn tonnes per annum. India POWER Power portfolio of 9 GW. 3.6 GW of commercial power generation capacity, balance for captive usage. One of the largest producers of wind power in India. India 5 vedanta book Without Flap_dp Option.indd 5 6/23/2017 5:32:58 PM Value Creation in India We are India’s premier and one of the world’s largest diversified natural resources companies. Our operations in India include our subsidiary, Vedanta Limited. We are: India’s market leader in most of the commodities we operate in (FY2017 production): One of the largest private sector oil and gas companies: ~1,90,000 boepd of oil and gas World’s Second Largest Zinc-Lead (mined metal) producer: 1,06,3000 tonnes Largest custom copper smelter and copper rods producer: 4,02,000 tonnes Largest producer exporter of iron ore in the private sector: 10.9 million tonnes Largest primary producer of aluminium: 12,13,000 tonnes Fully operational power portfolio of 9 GW: 12.9 billion kwh 6 vedanta book Without Flap_dp Option.indd 6 6/23/2017 5:32:59 PM Vedanta in Africa: a rich past, a richer future We build strong and sustainable partnerships that enable us to have a greater positive impact on our host communities. A presence in Africa since 2004: Invested over US$4bn in Africa to date One of the leading copper (integrated & customs) producers in Zambia: 1,80,000 tonnes Producing zinc and lead concentrate at Black Mountain Mining (BMM) in South Africa: 70,000 tonnes Special High Grade zinc metal at Skorpion Zinc in Namibia: 85,000 tonnes Commenced construction of the US$400m Gamsberg Zinc Project: One of the world’s largest undeveloped zinc sulphide deposits 7 vedanta book Without Flap_dp Option.indd 7 6/23/2017 5:33:02 PM Sustainable Development: Synergies with Business Goals 51% of high volume & low effect waste recycled in sustainable applications 375,573 hours of training on Code of Conduct including Human Rights aspects were provided 1,115,562 man-hours of training delivered to employees and contractors on HSE 12,700 employees and contractors trained on risk-based decision making at KCM 3.93 million m3 water savings achieved against target of 2.26 million m3 World-class mine closure of Vedanta’s Lisheen mine in Ireland & Sanquelim mines, in Goa leaves a positive legacy 5 star rating for Sustainable Mining given by the Indian Government to the Kaidh mine of Hindustan Zinc Limited and A.Narrain, Codli, Bicholim mines of Sesa Goa Iron Ore The Gamsberg project is a ‘No Net Loss’ biodiversity project & in South Africa translocated 87,000 plants Cairn India’s Raageshwari Gas Terminal crossed the safety milestone of 12 million LTI-free man-hours 8 vedanta book Without Flap_dp Option.indd 8 6/23/2017 5:33:04 PM Our Innovation: Leveraging new technology Fast Tracking Discovery through Advanced Exploration Technologies Deployment n Data Acquisition with air based surveys n Data Processing & Interpretation with 3D Modelling & visualisation n Reserve Resource Geostatistics based 3D estimations n Highly Experienced Multi-disciplinary Team n Pioneered the application of 4-D seismic technology in the Indian Sub-continent for Oil & Gas n Executed one of world’s largest Polymer flood based Enhanced Oil Recovery project n Operate the world’s longest (~670 km) continuously heated and insulated pipeline for crude oil 9 vedanta book Without Flap_dp Option.indd 9 6/23/2017 5:33:04 PM Corporate Social Responsibility We believe that a shared destiny approach in our business will benefit the community and boost economic prosperity which will create a society that provides equal opportunities, across socio- economic and gender differences. US$ 18 million contributed 4000 Modern Anganwadis to community to be developed over three years across development, benefiting India. Committed to the Indian Prime Minister’s national vision of eradicating 2.2 million people in India, child malnutrition, providing education, Australia and Africa. healthcare and empowering women with skill development, the Anganwadis named Nandghars will benefit 2.5 million community members. 10 vedanta book Without Flap_dp Option.indd 10 6/23/2017 5:33:05 PM Over 38,000 benefited from Women empowerment, Entrepreneurship & Skill development initiatives that contribute towards the socioeconomic empowerment of rural women and youth by imparting training which makes them capable of generating income. Agriculture, students Livestock & Livelihood development Over 2,11,000 accessed quality education through programmes focused on improving the schools and colleges across our agrarian economy through up-gradation global locations. of the traditional agricultural practices. Over 68,500 children were provided fresh and nutritious meals daily, in support of the Government of India’s midday meal program. 11 vedanta book Without Flap_dp Option.indd 11 6/23/2017 5:33:07 PM The India of Today India is blessed with a vibrant democracy, an independent media, entrepreneurial culture and a strong industrial and manufacturing sector which is a large contributor to the Indian economy and is playing a fundamental role in India’s growth story. India has the potential to be a manufacturing and export powerhouse as well as provide exciting employment for country’s youth. 3rd largest economy (PPP) 3rd largest energy consumer ~7.2% Average annual GDP growth rate (estimated) 12 vedanta book Without Flap_dp Option.indd 12 6/23/2017 5:33:11 PM India’s Demand Outlook India is one of the engines of global economic growth. India’s economic rise since 1991 alongside its growing population, has resulted in a sharp rise in resource needs from petroleum products to power and infrastructure. Rising need of infrastructure, resources and energy ~US$ 76 billion of oil & gas import bill ~US$ 500 billion of annual imports Rising demand for commodities Despite economic progress, India still has a low per capita consumption of commodities With economic progress the gap between India’s demand and domestic supply of oil is set to widen 13 vedanta book Without Flap_dp Option.indd 13 6/23/2017 5:33:12 PM India’s Potential India is among the top countries in the world with large reserves of Iron Ore, Bauxite, Zinc and Coal. The natural resource sector has the potential to add $ 1 trillion to the economy generating significant employment opportunities. Strong fundamentals will drive India’s demand for commodities: n One of the fastest growing large economies n Increasing pace of urbanisation n Increasing labour force as a percentage of the population n Increasing per capita income n Low per capita consumption of metals and Oil & Gas compared to the world average Vedanta through its strategically located high quality assets and scalable capacities is well-positioned to leverage the opportunities in India and other emerging economies. INDIA’S MINERAL WEALTH Resources & Reserves 5th Largest Coal: 295 bn tonnes 6th Largest Zinc: 50 mn tonnes 7th Largest Iron Ore: 29 bn tonnes 8th Largest Bauxite: 3.5 bn tonnes 14 vedanta book Without Flap_dp Option.indd 14 6/23/2017 5:33:16 PM Our Recent History 1979 Anil Agarwal acquired Shamsher Sterling Corporation through a family firm 1988 Sterlite Industries (India) Ltd.