Vedanta Resources : Capital Markets Day

20 March 2015

Vedanta Resources plc
Capital Markets Day

Vedanta Resources Plc is today hosting a Capital Markets Day in London, for analysts and investors, providing a corporate and financial overview of the Group and outlining key developments in its core businesses. As part of the presentation, senior management and business leaders from across the Group will focus on the progress being made by Vedanta against its strategic priorities.

Highlights of today's presentation will include:

Diversified, Low-Cost Portfolio of High Quality, Well-invested Assets

Vedanta's diversified business model and low-cost portfolio of assets has consistently generated strong EBITDA margins: 43% EBITDA margin in 9M FY2015.

Vedanta has been consistently generating industry leading EBITDA margins with its suite of
world- class and low cost Zinc, Oil & Gas and Iron Ore assets. The Aluminium assets are currently operating in the second quartile, and are well positioned to further improve on costs with ramp up of 800kt of new capacity in FY2016 and as we work towards captive raw material linkages.

Since 2004, Vedanta has delivered copper equivalent production growth of 25% CAGR. With its
well-invested assets, there is a potential to increase the copper equivalent production by 59% in the
near- term.

With a clear focus on operational excellence, Vedanta will continue to carry out productivity improvements, and reduce operating costs. Specifically, Vedanta is undertaking an exercise to drive significant savings and efficiencies in its procurement and marketing spend. This includes over US$800mn of underlying savings in procurement and more than US$500mn of additional value from marketing the products to a broader selection of customers and markets over the next four years.

Capital Expenditure, Leverage and Dividend Policy

Following a period of investment to increase production in its key commodities, Vedanta is benefitting from a ramp up in volumes.  Vedanta remains focused on delivering volume benefits, optimising operational and capital expenditure and consolidating its market positions.  The Group has revised its capital expenditure plans in order to optimise free cash flow against the backdrop of the recent downturn in commodity prices. Capital expenditure for FY2015 has been revised from US$1.9bn to US$1.5bn, while FY 2016 capital expenditure has been reduced from US$2bn to US$1bn.

The reduction in capital expenditure combined with cost reductions reflects the Group's target of achieving gearing of 25% in the medium term and maintaining a progressive dividend policy.

Continued Focus on Safety and Sustainability

Safety remains a key part of Vedanta's operational excellence and Vedanta is prioritising working with its 80,000 employees and contractors to eliminate fatalities and institute a culture of Zero-Harm.

Vedanta remains committed to working with its stakeholders and the local communities in which it operates, to build a sustainable business and improve the environment and lives of the people around the Group's operations.

India's Growth Potential and Natural Resource Opportunities

India's potential as a major resource market, as well as a resource producer, continues to provide significant opportunities for Vedanta. According to the IMF and the World Bank, India is poised to become the fastest growing economy in the world by 2017. The country's substantial coal, zinc, iron ore and bauxite reserves, coupled with a favourable regulatory and investment environment, provide excellent pre-requisites for utilising these resources for the benefit of the nation. Vedanta, which contributes 0.3% of India's GDP, is fully committed to working towards improving the country's socio-economic situation, creating further investment in infrastructure, education and healthcare for Indian citizens.

Tom Albanese, Chief Executive Officer, Vedanta Resources Plc,  said "Vedanta's diversified and well-invested asset base, low cost of production and exposure to the fast - growing Indian market puts us in a strong position to manage the volatility in the commodity markets. Our focus on operational excellence, reduction of costs and optimisation of capex will help generate strong free cash flow, delever and maintain a progressive dividend policy."

Today's presentations will be webcast live from 9.00 amUK time at http://edge.media-server.com/m/p/7pnxetit. Presentations, as well as the transcript and replay of the event will be available in the Investor Relations section of our website, www.vedantaresources.com.

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About Vedanta Resources plc

Vedanta Resources plc ("Vedanta") is a London listed diversified global natural resources company. The group produces aluminium, copper, zinc, lead, silver, iron ore, oil & gas and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland, Liberia, Australia and Sri Lanka. With an empowered talent pool globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visitwww.vedantaresources.com.

Disclaimer

This press release 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," "should" 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 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.