Investment Case

A culture of excellence and innovation helps us to uphold world-class standards of integrated mining operations, digitalised mines, and first quartile position in the global zinc cost curve, all of which together differentiate us from the competition in the industry. We are also proud to maintain our 6th position globally as a primary silver producer. Our robust execution discipline and tight control on cost, driven by higher operational efficiencies and digitalisation helps us cater to markets profitably. We have maintained our dominant domestic market share (~80%) in the primary zinc segment by offering a wide range of high-quality products. Our strategic focus to further enhance our value-added products portfolio, with sustained efforts and sharp focus on holistic and sustainable growth helps to deliver industry leading returns for our investors.

UNDERSTANDING OUR INVESTMENT PROPOSITION WELL-ESTABLISHED

PRODUCTION CAPACITIES WITH SUSTAINABLE MINING OPERATIONS

A key metric of our value proposition is our ability to deliver steady operational performance regardless of various internal and external factors at play. Amid the challenging COVID-19 crisis, we progressed on various fronts.

• Moved with agility to adapt to the fast-transforming business environment led by our deep understanding of the markets and market leadership position
• Leveraged our digital and automation capabilities, and robust portfolio of operational assets, with low cost of production to stay ahead of the curve
• We have proven ore deposits with above average zinc-lead grade
• Continued our investment in new- age operational methods and tools to accelerate mine development rate, improve productivity and optimise cost
• Progressing well on our transition to a low-carbon economy
• Optimising our water, waste and land footprint through innovation and technology
• Effectively harnessing the power of technology and digitalisation to ensure on-time delivery of volume
• Beneficial collaboration with globally renowned execution experts further enhances our capabilities and capacities for efficient project execution
• Trained teams for meticulous planning of projects, while rationalisation of operating processes promotes execution discipline

We remain resolutely focussed on sustainable growth across our mining operations and further raise the bar of operational excellence in the years ahead.

PORTFOLIO OF MINES WITH LONG LIFE

We have in place a well-articulated strategic roadmap to steer short and long-term business growth and value delivery to our stakeholders.

• Growing R&R through continuous efforts on exploration (agile miner)
• Replenish every tonne of the mined metal to sustain mine life above 25 years at current rate of production
• Adopting new and innovative technologies to run robust exploration programme for delineation and upgradation of Reserves and Resources (R&R) within our licence areas

We are fully geared to maximise returns on the opportunities catalysed by these campaigns in the years to come.

^*During FY 2021-22
^#As on March 31, 2022

GLOBAL ZINC COST LEADERSHIP (FIRST QUARTILE OF GLOBAL ZINC COST CURVE)

Fiscal prudence is vital for our ability to deliver value-accretive returns to all our shareholders.

• Consistently remain as one of the lowest cost producers of zinc-lead globally, despite transition to UG mining. Maintained our leadership position in the first quartile of the global zinc cost curve
• Follow resilient capital deployment strategies, as evident in our robust credit rating, strong balance sheet and high EBITDA margin
• Steadfast focus to manage our cost efficiencies, with well rationalised cost structure
• Continually ramp-up volume and deploy automation technologies to further improve ore-to-metal index
• Boost asset productivity, optimise power and generation of superior value from waste

We shall continue to augment our efforts to drive growth and improve profitability through concerted efforts on all fronts to maintain our cost leadership.

DIVERSIFIED PRODUCT PORTFOLIO

Our focussed approach is centred to meet ever-evolving customer needs and quality expectations through innovative products and tailor-made solutions, tools and platforms.

• Growing alloys portfolio: On-track to establish 30 kt alloys plant under Hindustan Zinc Alloys Private Limited (HZAPL) to enhance our Value Added Product portfolio as a go-to-market strategy
• Collaborate with customers to develop products designed to meet specific requirements
• Large-scale distribution network helps us remain close to our customers and service them effectively
• Long-term customer connect ensures timely redressal of grievances, just-in-time inventory for our long-term partners, and need-based visits by our in-house and external subject matter experts to our customers’ facilities

Constant endeavour to scale up customer engagement initiatives and deliver a par-excellence experience to our customers at every stage of their journey with Hindustan Zinc.

^#As on March 31, 2022

SUSTAINABLE BUSINESS WITH CORE FOCUS ON ESG (LEADING AMONGST PEERS)

We have always stayed at the forefront of sustainability amongst our global and domestic peers

• Committed to optimal use of natural resources, reduction in carbon footprint, safe operations, and renewable energy utilisation, as part of our 2025 Sustainability Goals
• Ranked 5^th Globally in Metal and Mining Sector in DJSI & 1^st in Asia-Pacific region
• Ranked 1^st in Environment Dimension in the Metal and Mining Sector globally
• In the Sustainability Yearbook 2022 (5^th year in a row)
• Ranked in top 100 global companies by Global Sustainability Magazine
• Positive progress on our ESG roadmap, with a US$ 1 billion investment allocated towards climate change initiatives including EV deployment in our operations, RE Power (to reduce and eventually eliminate thermal power dependence)

We will continue to invest and strengthen our sustainability focus by delivering on our well- defined goals and progress on our sustainable value-accretive journey.

SUPERIOR RETURNS TO SHAREHOLDERS (DIVIDENDS, HIGH ROI PROJECTS)

Our robust balance sheet, with strong free cash flow from operations, facilitates in delivering excellent return on investment to our shareholders

• Helps us to embark and evaluate new projects for investment with above average Internal Rate of Returns (IRRs)
• Strong cost optimisation measures, operational excellence, and targeted sustainability strategies, further help to create and deliver value to our shareholders
• Demonstrated ability to grow production, optimise cost and implement sustainability strategies effectively
• Strong resolute to growth and to maintain a strong balance sheet sustainably will aid our value creation journey

We shall always strive to invest in our assets profitably and enhance shareholder value throughout the economic lifecycles of our projects.