The merger of Sterlite Industries (India) Limited and Sesa Goa

VISION
“To be a world class, diversified
resources company that provides
superior returns to its
shareholders, through high quality
assets, low-cost operations and
responsible corporate citizenship”
KEY FACTS
The merger of Sterlite Industries (India) Limited and Sesa Goa Limited, and the consolidation of
the Vedanta Group has created India’s largest and one of the world’s top seven diversified
natural resource majors by market capitalisation and EBITDA.
Sesa Sterlite has a portfolio of large, world-class, low cost, scalable assets in close proximity to
high growth markets. Its business primarily involves exploring, extracting and processing
minerals and oil & gas. The company operates in zinc, lead, silver, copper, aluminium, iron ore,
oil & gas and commercial power and have a presence across India, South Africa, Namibia,
Ireland, Australia, Liberia and Sri Lanka.
A diversified portfolio of the merged entity is expected to reduce volatility of earnings through
commodity cycles, lowering the cost of capital and enhancing value. The consolidation will
generate significant financial and operational synergies such as improved fungibility of cash
that will facilitate debt servicing, efficient cash management, and tax efficiencies.
Sustainability is at the core of Sesa Sterlite’s strategy, with a strong focus on health, safety and
environment and on enhancing the lives of local communities.
Sesa Sterlite is a subsidiary of Vedanta Resources Plc, listed in the LSE. Sesa Sterlite is listed on
the Bombay Stock Exchange and the National Stock Exchange in India and has ADRs listed on
the New York Stock Exchange.
GEOGRAPHICAL FOOTPRINT
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Key Facts as of 30 September 2013 – (Last updated on 1 Nov 2013)
STRATEGY
“To deliver growth and long-term
value while upholding sustainable
development through our
diversified portfolio of large, longlife and low-cost assets.”
STRATEGIC PRIORITIES
• Production growth across
portfolio with a focus on returns
• Continue to add R&R in our
existing portfolio of assets to
drive long-term value
• Reduce gearing from increasing
free cash flow
• Minority Buyouts of HZL and
BALCO
Mr. Anil Agarwal, Chairman: “The
merger of Sterlite Industries and
Sesa Goa has created one of the
world’s largest global diversified
natural resources companies. Sesa
Sterlite is the Indian flagship of our
group and with its world class
assets, efficient operations and our
strong track record, we are well
placed to deliver superior returns
for shareholders.”
Mangala processing terminal,
Cairn India
DIVERSIFICATION
Sesa Sterlite is one of the world’s
largest diversified natural resource
companies.
TIER-1 ASSETS WITH COMPETITIVE COS T POSITI ON
Our portfolio consists of world-class
assets that have structural
advantages in terms of scale, cost,
mine life and growth options, and
are diversified across commodity
and geography. These structural
advantages will help ensure that
our assets deliver strong cash flow
through the economic cycle which is
of critical importance in this period
of commodity price volatility.
DELIVERING CONSISTEN T PROF ITABILITY
A diversified portfolio is expected to
reduce volatility of earnings
through commodity cycles, lowering
the cost of capital and enhancing
value.
Aerial view of the Skorpion Zinc
mines, Namibia
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Key Facts as of 30 September 2013 – (Last updated on 1 Nov 2013)
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Cairn India, a subsidiary of Sesa
Sterlite, is the World’s fastest
growing E&P Company (Platts Top
250 Energy Company Awards 2013)
PORTFOLIO STRENGTHS
Cairn India contributes to over 25%
of India’s current domestic crude
production.
Zinc-Lead-Silver
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Oil & Gas
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Iron Ore
One of the world’s largest integrated zinc-lead producers – Largest in India.
Operations in India, Namibia, South Africa and Ireland.
One of the leading silver producers globally - Silver-rich ore from the Sindesar Khurd lead-zinc mine.
Owns and operates the world’s largest zinc-lead mine - the Rampura Agucha mine in India.
One of the largest undeveloped zinc deposits in the world at Gamsberg, South Africa
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Copper
India’s largest private sector producer of iron ore.
FY2013 operations were affected by state-wide restrictions on mining in Goa and Karnataka.
Strong exploration success at India operations – net addition of 59mt taking R&R to 433mt
Over 1 billion tonnes iron ore deposit at Liberia, West Africa
Largest private sector crude oil producer in India.
Platts Top 250 Energy Company Awards 2013-Cairn India is the World’s fastest growing E&P Company.
Ranks among the top 20 independent E&P companies globally.
It contributes to over 25% of India’s current domestic crude production.
Rajasthan block is the largest onshore discovery in India in 20 years
Rajasthan block has an estimated 7.3 billion boe in place and a basin potential to support 300,000bopd
Strong track record of exploration – 26th discovery in the Rajasthan basin achieved recently
 We are the largest Copper producer in India
 We operate one of the lowest cost custom smelters in the world at Tuticorin, India.
 Our Australian mines supply a part of the concentrate requirements of our Indian operations.
Aluminium
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Power
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We are the largest Aluminium producer in India
Strategically located large-scale assets including smelters, captive power plants and mines.
Efficient assets operating in the lower half of the global cost curve with purchased alumina & bauxite.
Operations located in the bauxite and coal rich regions in eastern India.
We are one of the largest independent power producers in India.
Near-term growth from the new 1,980MW Talwandi Sabo plant in India
HZL,a subsidiary of Sesa Sterlite,
owns and operates the world’s
largest zinc-lead mine i.e. the
Rampura Agucha mine in india.
Efficient aluminium assets
operating in the lower half of the
global cost curve with purchased
alumina & bauxite.
HIGHLIGHTS

Strong and Liquid Balance
Sheet with
o
Total Assets of c.
Rs210,000 crore ($35 bn)
o
Cash and liquid
investments of Rs.42,000
crore ($7 bn)
FY2013 PROFORMA FINA NCIALS
Particulars (In Rs. Crore, except as stated)
Proforma FY2013
Proforma H1FY2014
71,780
32,387
25,232
12,434
47%
47%
Profit After Taxes
14,625
5,795
Attributable PAT after exceptional item
7,252
2,003
Basic Earnings per Share (Rs./share)
24.46
6.75
Net Sales/Income from operations
EBITDA
1
EBITDA margin excl. custom smelting (%)
*Proforma numbers represents consolidation of financials of all the businesses for the full period irrespective of the effective dates of merger /
stake transfer and also one time impact of the adjustment & accelerated amortisation at Lisheen mine. Please refer to explanation in consolidated
financial performance section.
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Key Facts as of 30 September 2013 – (Last updated on 1 Nov 2013)
Ravva offshore terminal, Cairn
India.
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WELL POSITIONED TO CAPITALIZE ON IN DIA’S GROWTH
Sesa Sterlite has a strong position
in emerging markets, with over
80% of its revenues from India,
China, East Asia, Africa and the
Middle East.
Sesa Sterlite is now the largest
producer in India of Zinc,
Aluminium, primary Lead, primary
Silver, Aluminium and is the
controlling shareholder of the
largest private producer of Crude
oil and Iron Ore.
SESA STERLITE STRUCT URE
Aerial view of Tailings
management facility
rehabilitation plots, Lisheen
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Key Facts as of 30 September 2013 – (Last updated on 1 Nov 2013)
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