Iron ore ± Bulk commodities ± Power ‡ High quality assets & resources ‡ Low cost producer . Aluminum.Vedanta Group ‡ $11.4bn diversified group ‡ Sectors: Mining & Power ‡ Resources ± Base Metals: Copper. Zinc.

Strategic Diversifications COMPANY Sterlite Industries MALCO BALCO Hindustan Zinc Limited Konkola Copper Mines Sesa Goa Cairn India YEAR 1988 1995 2001 2002 2004 2007 2010 RESOURCE Copper Aluminum Aluminum Zinc Copper Iron Oil .

com/ .vedantaresources.Diversification into Oil Source: http://www.

± Mangala field can produce up to 150. KG Basin Entire Rajasthan block is estimated to have a potential of up to 240. 1 in Srilanka Operations in Rajasthan Block.Cairn India ‡ ‡ ‡ ‡ ‡ Third largest oil gas explorer Market Cap: $13bn 10 oil blocks in India.000 barrels per day.000 barrels ‡ Deep skill sets in oil & gas .

5 bn at end of March 2010 ‡ Subject to shareholder and regulatory approvals .Transactions ‡ Vedanta to acquire a 31% of Cairn India at Rs 332.602 per share ± Funds through debt and cash resources ‡ Sesa Goa to acquire 20% stake in Cairn India through open offer ± Surplus cash & Reserves to the tune of $ 1.

Strategic Investment for Sesa Goa ‡ World class asset with significant growth potential ‡ Participation in a controlling interest by Vedanta Group ‡ Will benefit from the value created as part of the Vedanta group ‡ Superior investment returns on surplus cash ‡ Immediate EPS enhancement ‡ Expansion programme to 50mmtpa unaffected by this transaction .

459 Net Debt/EBITDA 0.Credit Metrics US$mn FY 2010 Pro forma FY 2010 Pro forma FY 2011E1 Pro forma FY 2012E1 Net Debt 947 11.5x <2x <1x Net gearing 8% 37% <25% <20% ‡ Combination of strong balance sheets and cash flows supports credit ‡ Significant headroom within debt covenants ‡ Financial flexibility retained ‡ Existing capex programme remains unaffected .296 2.4x 4.030 EBITDA 2.

Synergy ‡ Unique natural resources champion ‡ Doubling oil production in Rajasthan oil block in short term ‡ Revenue generation for future growth ± Reinvestment ± Sustainable development ‡ Exploration opportunities ± Indian oil sector: under explored ± 35+ new sites identified .

GAIL ± Already acquired $10bn through international borrowings ‡ Change in ownership of oil explorations ± Requires oil ministry approval ‡ Oil ministry approval under two conditions ± protection of interests of ONGC and minority investors ± Complete compliance with the production-sharing contract Cairn has with the PSU ‡ Government concerns ± Vedanta's lack of competence oil sector ± Might end up hurting the promise for the sake of shortterm gains .Challenges ‡ Counter bids from ONGC.

Corporate Social Responsibility ‡ ‡ Vedanta and Cairn India share a similar vision on sustainability Both the companies have rigorous and extensive focus on ± ± ± ± Health Environment Communities Safety Vedanta ‡ ‡ ‡ ‡ Midday meal scheme serves 180. teacher training and theatre in school ‡ Comprehensive child and maternal health programmes ‡ Mobile health vans covering 64 villages ‡ Rigorous focus on safety reflected in achieving LTIFR below industry average .000 students daily Extensive computer education programme in government schools Currently operates/supports anganwadis (child care centres) 72% reduction in LTIFR over last 5 years Cairn India ‡ Special literacy initiatives.

Summary  Creating an Indian natural resources champion: comprehensive footprint across India s resources sector  Richest assets and working culture  Strategic advantage for Vedanta s core skills  Common goals : high quality and low cost  Variegation of Vedanta s strong growth profile  Financial flexibility  Positive impact on existing expansion programmes .

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