EARNINGS PRESENTATION Q1 - FY17

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EXECUTIVESUMMARY• IonExchange(India)Ltd (IonExchange), formed in1964, isapioneer inwater,wastewatertreatment&environmentsoluBonsandcaterstovariousindustries,homes&communiBes.

• Headquartered in Mumbai, the company has six manufacturing & assembly faciliBes across India, and one each inBangladeshandUAE.Italsohaspresenceacrossotherkeygeographies.

• InstallaBon:1lakhglobally;500+incoresectors.

OVERVIEW

• Engineering (54%)–Providescomprehensiveand integratedservicesandsoluBons inwater&wastewater treatmentincludingSeaWaterdesalinaBon,RecycleandZeroliquiddischargeplantstodiverseindustries.

• Chemicals (36%) - Provides a comprehensive rangeof resins, speciality chemicals and customized chemical treatmentprogrammesforwater,non-waterandspecialtyapplicaBons.

• ConsumerProducts (10%)–Caters to individuals,hotels, spas,educaBonal insBtuBons,hospitals, laboratories, railwayanddefenceestablishmentsprovidingsafedrinkingwaterandacleanenvironment.

BUSINESS&REVENUEMIX(STANDALONE%)

• Industrial–NTPC,NPC,Reliance,IOCL,JSW,CPCL,L&T,Essargroup,IRCTC,BHEL,TataGroup,• InsNtuNonal – Leela, Military Engineering Services, Taj Hotels, Holiday Inn, Hyaa Regency, Oberoi Hotels, ApolloHospitals,EscortsHeartInsBtute,DLF,Puravankar.

• InternaNonal–Cargill,TechnipFrance,Unilevergroup,Jurong,Thyssenkrupp(Uhde),Jacobs,Kawasaki,Mitsubishi,PDOOman,EmiratesSteel,IKPPIndonesia

MARQUEECLIENTS

• TotalIncome–INR8,123Mn• EBITDA–INR720Mn• PAT–INR345Mn

STANDALONEFINANCIALS(FY16)

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COMPANYOVERVIEW•  Ion Exchange was originally formed as a subsidiary of PermuBt, UK in 1964. It

became a wholly owned Indian company in 1985. The company is currentlycelebraBngits51stYearofoperaBons.

•  The company has expanded its footprints globally and possesses a diversifiedproductrange.Itoffersonestopwaterandnon-watertreatmentsoluBonscateringtodiversesegmentslikeinfrastructure,industry,insBtuBons,municipal,homesandcommuniBes,urbanandrural.

•  The company offers a wide range of soluBons across the water cycle from pre-treatment toprocesswater treatment,wastewater treatment, recycle, zero liquiddischarge,sewagetreatment,packagedDrinkingwater,SeaWaterdesalinaBonetc.

•  The company is also engaged in manufacturing ion exchange resins, specialitychemicalsforwaterandwastewatertreatmentaswellasnon-waterapplicaBons.

•  IthastwofaciliBesforIn-houseR&DandtwoapplicaBonsandtesBngcenters.

•  Thecompanyhasover50patentstotheircreditand100+productscommercialized.

•  ThecompanyhasaglobalpresenceapartfrompresenceinmajorciBesinIndiawithsales&servicecentersanddealernetworkofmorethan100.

•  ThecompanyexportstoAfrica,Japan,MiddleEast,Russia,SouthEastAsia,Europe,UK,USA,Canadaandneighbouringcountries.

STANDALONEREVENUEBREAKUPFY16

Engineering54%

Chemical36%

Consumer10%

DomesBc78%

Exports22%

STANDALONEGEOGRAPHICALBREAKUPFY16

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q  Q1-FY17Financialperformance:

•  TotalIncome:INR1,939Mn;Growthof(19.7%)Q-o-Qand16.9%Y-o-Y

•  EBITDA:INR156Mn;Growthof(48.2%)Q-o-Qand34.5%Y-o-Y

•  EBITDAMargin:8.0%;Growthof(450)BpsQ-o-Qand100BpsY-o-Y

•  NetProfit:INR67Mn;Growthof(59.6%)Q-o-Qand52.3%Y-o-Y

•  PATMargin:3.5%;Growthof(340)BpsQ-o-Qand80BpsY-o-Y

•  DilutedEPS:4.61INR

Q1-FY17FINANCIALHIGHLIGHTS

Q1-FY17–STANDALONEINCOMESTATEMENT

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INCOMESTATEMENT(INRMN) Q1-FY17 Q4-FY16 Q-o-Q Q1-FY16 YoY

TotalIncome* 1,939 2,415 (19.7%) 1,659 16.9%

TotalExpenses 1,783 2,114 (15.7%) 1,543 15.6%

EBITDA 156 301 (48.2%) 116 34.5%

EBITDAMargin 8.0% 12.5% (450Bps) 7.0% 100Bps

DepreciaBon 26 25 4.0% 24 8.3%

FinanceCost 27 30 (10.0%) 24 12.5%

PBT 103 246 (58.1%) 68 51.5%

Tax 36 80 (55.0%) 24 50.0%

ProfitAaerTax 67 166 (59.6%) 44 52.3%

PATMargin 3.5% 6.9% (340Bps) 2.7% 80Bps

EPS(INRDiluted) 4.61 11.19 (58.8%) 2.97 55.2%*Totalincomeincludesotherincome

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SEGMENTALBREAKUP-QUARTERLYSTANDALONEENGINEERING CHEMICALS CONSUMERPRODUCTS

REVENUE

EBIT

27

39

0

10

20

30

40

50

Q1FY16 Q1FY17

671

786

500

600

700

800

Q1FY16 Q1FY17

94

104

70

80

90

100

110

Q1FY16 Q1FY17

170

242

100120140160180200220240260

Q1FY16 Q1FY17

-15

-9

-16-14-12-10-8-6-4-20

Q1FY16 Q1FY17

845

983

700

800

900

1,000

Q1FY16 Q1FY17

INRMn

INRMn

INRMn INRMn

INRMnINRMn

HISTORICALSTANDALONEINCOMESTATEMENT

*Totalincomeincludesotherincome 7

INCOMESTATEMENT(INRMN) FY13 FY14 FY15 FY16

TotalIncome* 7,732 7,201 7,400 8,123

TotalExpenses 7,208 6,705 6,813 7,403

EBITDA 524 496 587 720

EBITDAMargin 6.8% 6.9% 7.9% 8.9%

DepreciaBon 79 84 98 100

FinanceCost 120 98 109 106

PBT 325 314 380 514

Tax 110 109 119 169

ProfitAaerTax 215 205 261 345

PATMargin 2.8% 2.8% 3.5% 4.2%

EPS(INRDiluted) 14.56 14.08 17.61 23.2

HISTORICALBALANCESHEET-STANDALONE

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PARTICULARS(INRMN) FY15 FY16 PARTICULARS(INRMN) FY15 FY16EQUITIES&LIABILITIES ASSETSShareholderFunds NonCurrentAssets(A)ShareCapital 145 146 (A)FixedAssets 750 823(B)Reserves&Surplus 2,058 2,355 (B)Non-currentinvestments 552 552Total-ShareholderFunds 2,203 2,501 (C)Deferredtaxassets(Net) 0 0

NonCurrentLiabiliBes (D)Longtermloans&advance 597 692(A)LongTermBorrowings 102 155 (E)Othernon-currentassets 67 58(B)DeferredTaxLiabiliBes(Net) 46 43(C)OtherLongTermliabiliBes 73 84 Total-Non–CurrentAssets 1,966 2,125(D)LongTermprovisions 108 119 CurrentAssetsTotal-Non–CurrentLiabiliNes 329 401 (A)CurrentInvestments 1 1CurrentLiabiliBes (B)Inventories 453 598(A)ShorttermBorrowings 357 410 (C)TradeReceivables 3,265 3,353(B)TradePayables 2,703 2,893 (D)Cash&BankBalances 148 192

(C)OtherCurrentLiabiliBes 565 595 (E)Short-termloans&advances 486 724(D)Short-termprovisions 164 198 (F)Othercurrentassets 2 5Total–CurrentLiabiliNes 3,789 4,096 Total–CurrentAssets 4,355 4,873

GRANDTOTAL-EQUITIES&LIABILITES 6,321 6,998 GRANDTOTAL–ASSETS 6,321 6,998

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HISTORICALCONSOLIDATEDINCOMESTATEMENTINCOMESTATEMENT(INRMN) FY13 FY14 FY15 FY16

TotalIncome* 8,620 7,978 8,048 8,760

TotalExpenses 8,081 7,588 7,539 8,138

EBITDA 539 390 509 622

EBITDAMargin 6.3% 4.9% 6.3% 7.1%

DepreciaBon 123 106 121 126

FinanceCost 156 136 150 150

PBT 260 148 238 346

Tax 113 100 124 177

ProfitAaerTax,beforeMinorityinterest 147 48 114 169

Add:Profit/(Loss)fromAssociate (1) 0 0 1

Less:MinorityInterest 4 2 16 17

PAT 142 46 98 153

PATMargin 1.6% 0.6% 1.2% 1.7%

EPS(INRDiluted) 9.80 3.22 6.78 10.61*Totalincomeincludesotherincome

PARTICULARS(INRMN) FY15 FY16 PARTICULARS(INRMN) FY15 FY16EQUITIES&LIABILITIES ASSETSShareholderFunds NonCurrentAssets(A)ShareCapital 141 141 (A)FixedAssets 989 1050(B)Reserves&Surplus 1,420 1,560 (B)Non-currentinvestments 24 24Total-ShareholderFunds 1,561 1,701 (C)Deferredtaxassets(Net) 8 8MinorityInterest 85 62 (D)Longtermadvance 476 543NonCurrentLiabiliBes (E)Othernon-currentassets 263 263(A)LongTermBorrowings 202 230(B)DeferredTaxLiabiliBes(Net) 47 44 Total-Non–CurrentAssets 1,760 1,888(C)OtherLongTermliabiliBes 110 128 CurrentAssets(D)LongTermprovisions 116 129 (A)CurrentInvestments 1 1Total-Non–CurrentLiabiliNes 475 531 (B)Inventories 793 814CurrentLiabiliBes (C)TradeReceivables 3,582 3,630(A)ShorttermBorrowings 567 567 (D)CashandBankBalances 262 334

(B)TradePayables 3,162 3,314 (E)Short-termloansandadvances 401 489(C)OtherCurrentLiabiliBes 783 781 (F)Othercurrentassets 3 5(D)Short-termprovisions 169 205 Total–CurrentAssets 5,042 5,273Total–CurrentLiabiliNes 4,681 4,867

GRANDTOTAL-EQUITIES&LIABILITES 6,802 7,161 GRANDTOTAL–ASSETS 6,802 7,161

HISTORICALBALANCESHEET-CONSOLIDATED

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CAPITALMARKETDATA

PRICEDATA(ASON30thJUNE,2016)

Facevalue(INR) 10

MarketPrice(INR) 327.7

52WeekH/L(INR) 394.2/221

MarketCap(INRMn) 4,807.4

EquitySharesOutstanding(Mn) 14.67

1YearAvg.tradingvolume(‘000) 8.97

SHAREHOLDINGPATTERN(ASON30thJUNE,2016)

SHAREPRICEPERFORMANCE(UPTO30thJUNE,2016)

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44%

2%

54%

Promoters

DII

Others

-40%

-20%

0%

20%

40%

60%

80%ION SENSEX

DisclaimerIonExchange(India)LimitedNorepresentaBonorwarranty,expressorimplied,ismadeasto,andnorelianceshouldbeplacedon,thefairness,accuracy,completenessorcorrectnessoftheinformaBonoropinions contained in this presentaBon. Such informaBon and opinions are in all events not current aser the date of this presentaBon. Certain statements made in thispresentaBon may not be based on historical informaBon or facts and may be "forward looking statements" based on the currently held beliefs and assumpBons of themanagementof IonExchange (India) Limited (“Company” or“IONEX” ),whichareexpressed ingood faithand in theiropinion reasonable, including those relaBng to theCompany’sgeneralbusinessplansandstrategy,itsfuturefinancialcondiBonandgrowthprospectsandfuturedevelopmentsinitsindustryanditscompeBBveandregulatoryenvironment.Forward-looking statements involve known and unknown risks, uncertainBes and other factors, which may cause the actual results, financial condiBon, performance orachievementsoftheCompanyorindustryresultstodiffermateriallyfromtheresults,financialcondiBon,performanceorachievementsexpressedorimpliedbysuchforward-looking statements, including future changes or developments in theCompany’s business, its compeBBve environment andpoliBcal, economic, legal and social condiBons.Further,pastperformanceisnotnecessarilyindicaBveoffutureresults.Giventheserisks,uncertainBesandotherfactors,viewersofthispresentaBonarecauBonednottoplaceundue reliance on these forward-looking statements. The Company disclaims any obligaBon to update these forward-looking statements to reflect future events ordevelopments.ThispresentaBonisforgeneral informaBonpurposesonly,withoutregardtoanyspecificobjecBves,financialsituaBonsor informaBonalneedsofanyparBcularperson.ThispresentaBondoesnotconsBtuteanofferorinvitaBontopurchaseorsubscribeforanysecuriBesinanyjurisdicBon,includingtheUnitedStates.NopartofitshouldformthebasisoforberelieduponinconnecBonwithanyinvestmentdecisionoranycontractorcommitmenttopurchaseorsubscribeforanysecuriBes.NoneofoursecuriBesmaybeofferedorsoldintheUnitedStates,withoutregistraBonundertheU.S.SecuriBesActof1933,asamended,orpursuanttoanexempBonfromregistraBontherefrom.ThispresentaBonisconfidenBalandmaynotbecopiedordisseminated,inwholeorinpart,andinanymanner.ValoremAdvisorsDisclaimer:ValoremAdvisorsisanIndependentInvestorRelaBonsManagementServicecompany.ThisPresentaBonhasbeenpreparedbyValoremAdvisorsbasedoninformaBonanddatawhichtheCompanyconsidersreliable,butValoremAdvisorsandtheCompanymakesnorepresentaBonorwarranty,expressorimplied,whatsoever,andnorelianceshallbeplacedon,thetruth,accuracy,completeness,fairnessandreasonablenessofthecontentsofthisPresentaBon.ThisPresentaBonmaynotbeallinclusiveandmaynotcontainalloftheinformaBonthatyoumayconsidermaterial.Anyliabilityinrespectofthecontentsof,oranyomissionfrom,thisPresentaBonisexpresslyexcluded.ValoremAdvisorsalsoherebycerNfiesthatthedirectorsoremployeesofValoremAdvisorsdonotownanystockinpersonalorcompanycapacityoftheCompanyunderreview.

ForfurtherdetailspleasecontactourInvestorRelaNonsRepresentaNves:VALOREMADVISORSMr.AnujSonpalTel: +91-22-3006-7521/22/23/24 Email: ion@valoremadvisors.com 12

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