Corporate Presentation Hindustan Zinc Limited Z I N C | L E A D | S I L V E R
Safety & Environment – Vision Zero Harm LTIFR Trend Water Conservation Specific Water Consumption (M 3 / MT of MIC) Zero discharge • 14.56 33% total water 13.78 13.70 • requirement met from recycling/ reuse water (2017) Water CDP • 15-16 16-17 17-18 (Target) disclosure 2017 Climate Change & Energy Enhanced awareness, lead indicators reporting up 127% • in last 2 years Specific Energy Consumption (GJ / MT of MIC) 10 UNFCCC projects • 23.49 21.33 21.30 Zero occupational illness cases • 325 MW green power • Safety perception score improvement from 62% to 88% • 9% specific energy • reduction (2017) LTIFR Benchmarking CDP disclosure 2017 • (One million man-hours) & Scope 3 GHG 1.85 15-16 16-17 17-18 (Target) emission 1.40 1.30 Waste Management 1.20 Fumer project for Total Waste Generation (Million MT) • 75 waste minimisation 0.49 Paste fill plant at 0.39 • 49 0.30 44 SKM and RAM UG Focus on value • HZL Vedanta Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Glencore Rio Tinto Vale Anglo Antofagasta from waste Xstrata American Paver block from • Source: SD report 2016 of all companies 15-16 16-17 17-18 (Target) waste *Waste includes mining waste 2
Corporate Overview 2 nd largest zinc-lead miner globally with 12 million+ MT of ore production capacity Rampura Agucha: 2 nd largest zinc mine globally 4 th largest zinc-lead smelter globally: 1 million+ MT of production capacity 18 th largest silver producer of the world* One of the lowest cost zinc producers in the world 3 mines with five-star ratings by Indian Bureau of Mines Vision: To be the world’s largest and most admired zinc-lead & silver company Rankings source: (1) Wood Mackenzie, Long-Term Outlook Q2 2017 (2) For HZL related data, actuals for FY 16-17 * Source : Thomson Reuters 3
What Differentiates Us? Core Strengths Among the Lowest Cost Producers of Zinc Zinc Mine Composite Costs Curve Captive mines with R&R base of 2500 1 404.4 million MT ensuring mine life of 25+ years 2250 Peer 5 2000 C1 Cash Cost ($/t Zn) Peer 4 Peer 3 1750 Peer 2 Integrated metal production Hindustan Zinc 1500 supported by captive power 2 plants 1250 Peer 1 1000 750 Low cost of operations driven 3 by quality assets and recovery 500 from waste 250 0 0 10 20 30 40 50 60 70 80 90 100 Market leadership in India with Cumulative Production (Percentile) strong presence in emerging 4 economies of Asia Note: C1 cash cost includes by-product credits Source: Wood Mackenzie Research (Q2 2017) Leading the Way with Fully Integrated Operations 4
Portfolio of Tier - 1 Assets Rampura Agucha Mine Reserves : 49.7 mn MT Resources : 50.3 mn MT Chanderiya Smelting Complex Reserve Grade : Zn 13.9%, Pb 1.9% Current Ore Capacity : 6.15 mtpa Pyrometallurgical Lead Zinc Smelter : 1,05,000 MTpa zinc and 35,000 MTpa lead Kayad Mine Hydrometallurgical Zinc Smelter : 4,20,000 MTpa zinc Reserves : 5.4 mn MT Resources : 1.7 mn MT AusmeltTM Lead Smelter : 50,000 MTpa lead Reserve Grade : Zn 7.8%, Pb 1.1% Captive Power Plant : 234 MW Current Ore Capacity : 1.00 mtpa Dariba Smelting Complex Sindesar Khurd Mine Hydrometallurgical Zinc Smelter : Reserves : 35.6 mn MT 2,20,000 MTpa zinc Resources : 87.2 mn MT Reserve Grade : Zn 4.2%, Pb 2.9% Lead Smelter : 1,00,000 MTpa lead Current Ore Capacity : 4.50 mtpa Captive Power Plant : 160 MW Rajpura Dariba Mine Zinc Smelter Debari Reserves : 9.0 mn MT Hydrometallurgical Zinc Smelter : Resources : 50.3 mn MT 88,000 MTpa zinc Reserve Grade : Zn 6.3%, Pb 1.5% Current Ore Capacity : 0.90 mtpa Pantnagar & Haridwar Zawar Mining Complex Processing and refining of zinc, lead and silver Reserves : 9.5 mn MT Resources : 85.7 mn MT Reserve Grade : Zn 3.3%, Pb 1.8% Renewable Power Current Ore Capacity : 4.00 mtpa Wind: 274 MW CPP : 80 MW Solar: 16 MW Waste heat recovery: 35 MW 5
Strong Track Record of Growth Reserves & Resources (mn MT) – 2.5X Growth Mined Metal (kt) – 3X Growth 404 907 390 889 887 880 870 375 365 840 830 348 769 332 735 113 151 110 106 145 313 88 92 299 86 629 272 84 572 232 532 78 295 210 283 267 67 261 239 409 60 178 223 165 216 364 197 146 183 298 774 54 765 770 756 752 739 744 152 47 683 651 133 109 36 551 98 505 472 92 355 317 262 109 110 108 109 102 104 107 97 89 80 77 67 69 54 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 MIC - Zinc MIC - Lead Total Mined Metal Reserve Resource Net R&R Ore Production (mn MT) – 3.5X Growth Silver Metal – Integrated Saleable (MT) – 9X Growth 453 422 301 288 266 202 148 139 3.0 105 80 51 47 35 24 11 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Multi-fold growth since disinvestment 6
Robust Financial Performance EBITDA PAT Cash & Cash Equivalents* Rs. bn Rs. bn Rs. bn Special 90.00 400.00 Dividend payout 80.00 350.00 70.00 300.00 60.00 250.00 50.00 200.00 40.00 150.00 30.00 100.00 20.00 50.00 10.00 - - FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 *net off dividend accounts & temporary borrowings; includes investments at fair value & interest accrued thereon EPS Market Cap LME Price Rs. Rs. bn $/MT 25.00 1,400.00 4,000 Zinc LME 3,500 1,200.00 Lead LME 20.00 3,000 1,000.00 2,500 15.00 800.00 2,000 600.00 10.00 1,500 400.00 1,000 5.00 200.00 500 - - - FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 7
History of Project Delivery Captive Power MW 474 394 MW 80 MW 314 Debari 80 MW 234 Dariba 80 MW 154 Zawar 80 MW 2017 Chanderiya 277 MW SKM 3 to 3.7 mtpa Chanderiya RAUG 1.4 mtpa SK Mill commissioned 2005 2008 2009 2010 2011 2016 SKM 2 to 3 mtpa 2013 2012 Production commenced at Pb Smelter Dariba (100 kt) Kayad Mine Silver refinery Pantnagar (500 MT) 2012 SKM 0.3 to 2 mtpa 2010 Zn Hydro-3 at 2010 Dariba (210 kt) RA OC 5 to 6 mtpa 2008 Zn Hydro-2 at 2009 Chanderiya (170 kt) RA OC 3.75 to 5 mtpa Smelters 2006 Ausmelt at Chanderiya 2007 (50 kt) 2005 SKM 0.3 mtpa Zn Hydro-1 at Chanderiya (170 kt) Mines 2005 RA OC 2.3 to 3.75 mtpa 8
Mine Expansion Project Overview Underground Mines Ore Capacity Expansion 3.8 mtpa 17.5 mtpa 4.0 3.3 4.5 0.9 2.0 1.2 1.0 0.6 RAUG SKM Kayad Zawar RDM Pre Expansion Planned (FY 2020) OC to UG Transition 17.5 UG ramp up 5 year CAGR 39% 11.9 10.5 9.4 9.3 Mine expansions in sync with increasing R&R • 17.5 8.6 3.8 6.0 4.4 Five major projects to increase MIC capacity to 1.2 mtpa, • including RAM OC replacement 5.5 5.0 4.5 3.3 Transition from Open Cast to UG mining • Smelters’ debottlenecking to remain integrated • FY 14 FY 15 FY 16 FY 17 FY 20 Six year capex of $1.6 bn; ~$1 bn spent Open Pit UG • 9
Resource Driven Growth Sustained Commitment to Exploration → Strong Track Record of R&R Addition mn MT 10 Year R&R Trend � R&R 404 mn tonne in FY 2017 450 40 36.1 36.1 35.3 35.2 35 34.7 � R&R estimation to the JORC 34.1 34.1 400 35 standard and audited by 31.5 international consultants 350 30 27.5 � Drilling 80,000+ metres pa to 300 add new resource tonnage 25 295 250 283 � Clear exploration strategy to 267 261 239 20 223 grow R&R 216 200 197 183 � Use of latest global 15 152 150 technologies 10 100 5 110 109 108 107 109 50 104 102 97 89 80 0 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Reserve Resource Contained Metal Every year since disinvestment, we have added more than depleted 10
Corporate Social Responsibility Vision Core Principles To enhance the quality of life and economic well being of communities around our operations. Neighbourhood Communities Our first and foremost commitment Goals • To positively & holistically impact the quality of life of the The Partnership Multiplier communities living around our areas of operation. Work, as much as possible, through • To work in partnership through a multi-stakeholder approach strong and credible local partners for innovatively, effectively and efficiently addressing development challenges. Impact Centric • To emerge as a thought leader, creating benchmarks of good In almost everything we do, we practices in CSR across Rajasthan & country. focus on impact rather than on spends Strong Governance Reach Multi-tiered and objective governance structures and routines Over half a million people in Rajasthan; positively impacting lives of more than 100,000 households HZL is proud to have had an unbroken social license to operate for the last 5 decades 11
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