For Official Use

Investor PresentationJune 2018

Exchange: A Competitive ‘Market’

Exchanges provide a transparent, competitive and efficient platform fortransactions in any market – Stock or commodity. Same is true for powersector.

The concept of Exchanges in Power Sector was initially introduced in 1990-91in Europe.

Now, worldwide Power Exchanges are operating in almost 40 countries.

Power Exchanges are most preferred option for sale and purchase of Power.

In India, after Electricity Act, 2003 market framework for Exchangeoperations was put in place.

Exchanges in India started operations from 2008.

IEX, India’s leading Power Exchange

Inception in June 2008

Operating under the Regulatory oversight of Central ElectricityRegulatory Commission (CERC)

Transparent online market platform for delivery based trading

Flexible trading with separate price discovery for 96 time-blocks of15 min each for Day-Ahead Market

Technology buy out: On May 16, 2017, IEX acquired tradingsoftware along with the team

IEX became publically listed on 23rd October 2017

3

Company Snapshot

Market Share: 97%

Average daily trade: 5000+ MW

High Participation: 6200+

3900+ Industries I 50 Discoms (all) I 100+ ESCert Entities

400+ Generators I 1500+ RE Generators & Obligated entities

Competition

LiquidityTransparency

Market Share-FY 18 (DAM & TAM)Average Daily Trade- FY18

4

IEX Market Segments

Day-Ahead Marketsince June,08

• Delivery for next day• Price discovery: Closed , Double-sided Auction

Term-Ahead Contracts since Sep’09

• For delivery up to 11 days• Daily Contracts, Weekly Contracts

Renewable Energy Certificatessince Feb’11

Energy Saving Certificatessince 27th Sept’17

Intraday Market & Day-Ahead ContingencyRound the clock since Jul’15

• Intraday: For Delivery within the same day• Day Ahead Contingency: Another window for next day• Gate closure : 3 hours

• Green Attributes as Certificates• Sellers : RE generators not under feed in tariffs• Buyers: Obligated entities; 1MWh equivalent to 1 REC

• 1 ESCert = 1 mtoe (metric Tonne of Oil Equivalent)• Trading Session on every Tuesday of the Week• Trading time 1300 hrs to 1500 hrs

5

Auction Continuous

IEX Volume Growth : Strong trend line

6,214

12,71214,415

22,811

29,270 28,363

34,397

40,528

46,214

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

Cle

are

d V

olu

me

(M

U)

Electricity Volume

6

Source: IEX Data (DAM+TAM)

SECTOR OVERVIEW &

IMPACT ON POWER EXCHANGE

Generation Transmission Distribution

7

Installed Generation Capacity of India

71112

130 145165

185 192 19715

2021

2324

26 26 26

4

55

5

6

6 7 7

35

3939

41

41

4344 45

8

2428

29

32

3957

69

132

200223

243268

298

327344

0

50

100

150

200

250

300

350

400

End of 10thPlan

End of 11thPlan

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Cap

acit

y (G

W)

Coal Gas & Diesel Nuclear Hydro RES

Generation

8

Category Installed

Capacity (MW)PLF

Generation (BUs) FY-18

Feasible PLF

Possible Generation (BUs)

Coal 197172 60% 986 80% 1382Gas 24897 23% 50 20% 44

Diesel 838 3% 0.24 0% 0

Hydro 45293 32% 126 33% 131Nuclear 6,780 64.5% 38 80% 48

RE 69022 17% 102 18% 109

Total 344,002 1302 1713

Installed Capacity (March 2018) & Generation (FY 2017-18)

Installed capacity has increased at a CAGR of 9.5 % i.e. from 199 GW in FY 12 to 344 GW inFY 18.; enough to meet the demand of next 5 years at a growth rate of 6%

In last 6 years, Peak demand met increased at a CAGR of 5.6 % and energy supply hasgrown at 5.8% CAGR which is much below growth of capacity addition.

Above has resulted into surplus capacity, PLF for thermal power plants for FY 18 is 61% only. Further capacity addition of 50,000 MW of conventional power and more than 1,00,000

MW of Renewable power expected during 13th Plan

Source: CEA

9

Generation

Installed capacity has grown at a faster pace compared to demand

Highgeneration, increased competition : Pushed prices down at Exchange

10

1,3

34

1,9

19

2,8

42

4,4

56

4,7

37

4,9

42

4,9

07

5,4

45

6,5

22

1,3

02

2,3

71

2,5

39

3,9

56

5,7

41

4,6

89

6,4

34

8,8

06

8,3

28

70

4

1,3

47

1,5

71

2,5

54

3,3

02

3,2

12

3,8

78

4,5

47

5,1

28

5.19

3.56 3.54 3.49

2.80

3.51

2.732.41

3.26

FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

Purchase Bid (MW) Sell Bid (MW) Cleared Volume (MW) MCP (Rs/kWh)

Increase in generation capacity pushed the prices down except FY 18 when prices increased primarily due to coal shortage

Volume Lost due to Congestion lowered and price convergence in regions

Market Clearing Volume (MU)

Cleared volume (MU)

Curtailed Volume(MU)

Curtailment (%)

FY13-14 34,230 28,925 5,306 15%

FY14-15 31,227 28,131 3,096 10%

FY15-16 36,210 34,067 2,144 6%

FY 16-17 41,310 39,784 1,526 3.7%

FY 17-18 45121 44925 83 0.4%

With transmission augmentation, congestion has reduced and ONE NATION ONE GRID ONE PRICE achieved on 90% days in the FY 18.

Reduced congestion has increased reliability in sourcing power from exchanges

11

4.375.13

6.86

4.73 5.113.79

2.79 3.313.49 3.27 3.132.55

3.23 2.77 2.58 3.253.48 3.27 3.07 2.52 3.07

2.46 2.293.23

0.00

2.00

4.00

6.00

8.00

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18Avg

MC

P (

Rs/

kWh

)

South (S1) North (N2) RoI (W2)

New Schemes by the GoI

• Government of India initiatives like ‘Saubhagya’, ‘24*7 Power

Supply’ and ‘Rural Electrification’ has boosted power demand in

the Country

• Another major initiative UDAY is helping DISCOMs to achieve

financial stability and increase power purchase capability

• These initiatives have resulted in increase in overall electricity

demand by 6.1% in last fiscal

• In last fiscal some states witnessed very high growth in demand

like Telangana – 14%, DVC – 14%, UP – 12%, Chhattisgarh – 9%,

Maharashtra, AP, Odisha, J&K – 8%.

Distribution

12

Increase in demand is helping short term market grow

Source: CEA, World Bank

To bring per capita close to global average, 3X power generation will be required : POTENTIAL FOR GROWTH

13,246

7,289 7,081 6,486

3,044 3,298 2,438 1075

US France Germany Russia Global Average

China Brazil India

kWh

Per Capita consumption

• With expected thrust on economic and industrial development and 24/7 power supply, Per Capita consumption bound to increase

DistributionPer capita consumption very low compared to world average

13

Power Exchange across Globe:Enormous potential to grow for India compared to international benchmarks

INDIA TRADES ~3% OF ITS OVERALL CONSUMPTION ON EXCHANGE MARKETS COMPARED TO 15-91% GLOBALLY GLOBAL BENCHMARKS ON PENETRATION OF ST MARKETS

Indian markets still at a nascent stage and high potential for growth for the Indian Power Exchanges

14

VOLUME IN BU (Billion Units)

MARKET SNAPSHOT

15

India Power Sector I Key Market Segments

Source: CERC MMC Report

Long Term Short Term

Long-term Power Purchase Agreements

(PPA)

Bilateral & Banking Transactions

Deviation settlement/Unscheduled Interchange

89.4% 4.8% 3.8% 2.0%

Exchanges (Only up to 11 days) Day Ahead Contingency DailyWeekly Day Ahead Market

Short Term Power market is at 10.6 %, Power Exchange volume in the segment have been growing significantly

Up to 25 yearsOTC:

Intraday to 1 yearExchanges:

Intraday – 11 daysReal Time

1,202,971 MU

1,075,354 MU 57,835 MU 45,572 MU 24,209 MU

All values for FY18

16

Short term market snapshot (Billion Units)

17

Source: CERC MMC Report

56.0

40.0

23.2

57.8

45.6

24.2

Direct/Banking &Trader

Power Exchanges DSM

FY 17 FY 18

119.2

1157.9

127.6

1203.0

Short Term Total Generation

4%

7%

4%

14%

Overall generation in the country, increased by 5.32% in FY 18

3%

FY18_Product Wise IEX’s Volume Growth (Billion Units)

18

0.0

4.6

40.5

45.1

1.3

9.3

46.2

56.8

ESCert* REC Electricity Trade (DAM &TAM)

Total

FY 2017 FY 201814%

26%

102%

*Note – Energy Saving Certificates (Escerts) trading started from September 2017 on IEX

Monthly Price Trend (Avg. MCP) (Rs./unit)

2.52.3

3.2 3.2

2.6

3.4

2.9

2.6 2.5

2.92.6

2.6

2.9

2.72.6

2.1 2.1

2.72.5

2.32.6

2.8 3.0

2.7

2.82.9

2.6 2.5

3.1

4.1 4.1

3.5

3.03.2 3.2

4.0

0.0

1.0

2.0

3.0

4.0

5.0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

FY2015-16 FY2016-17 FY2017-18

19

Source: IEX data

FY 16 : 2.73FY 17 : 2.42FY 18 : 3.26

Strong and Growing Base of Participants

Participation has shown significant growth over the years

20

Average registered participants has been growing

0500

100015002000250030003500400045005000

Jun

-08

Sep

-08

Dec

-08

Mar

-09

Jun

-09

Sep

-09

Dec

-09

Mar

-10

Jun

-10

Sep

-10

Jan

-11

May

-11

Au

g-1

1Ja

n-1

2A

pr-

12

Sep

-12

Feb

-13

May

-13

Oct

-13

Mar

-14

Oct

-14

Jan

-15

Jul-

15

Jan

-16

Sep

-16

Sep

-17

Dec

-17

Open Access Volumes have shown rapid growth

Open Access Consumers Present Across States And Spread Across Industries

Haryana, 476

Gujarat, 533

Rajasthan, 328

Punjab, 428

Karnataka, 247Telangana, 224

Tamil Nadu, 820

Andhra Pradesh, 487

Uttarakhand, 125 Others, 300

As on Mar'18

-

500

1,000

1,500

2,000

2,500

3,000

De

c'1

4

Feb

'15

Ap

r'1

5

Jun

'15

Au

g'1

5

Oct

'15

De

c'1

5

Feb

'16

Ap

r'1

6

Jun

'16

Au

g'1

6

Oct

'16

De

c'1

6

Feb

'17

Ap

r'1

7

Jun

'17

Au

g'1

7

Oct

'17

De

c'1

7

Feb

'18

Drawal (MUs)

0

100

200

300

400

500

600

Paper Textile Chemical Metal AutoComp

Cement Other

FY 14-15 FY 15-16 FY16-17 FY 17-18

OPPORTUNITIES & CHALLENGES FOR EXCHANGE OPERATIONS

21

IEX | Key Growth Drivers for the Power Exchange Market Efficient price discovery has been the biggest growth driver for exchanges in the past

♦ Discoms can source cheaper power through Exchange to meet shortages

♦ Industries can source competitive power to reduce their input costs

♦ Prices at Exchange always lower than Bilateral contracts

Efficient Price

discovery

22

1214

22

29 28

34

40

45

28

36 36 35 35 3534

41

3.58 3.47 3.73

2.89 3.46

2.71 2.49 3.26

4.744.23 4.34 4.27 4.30 4.13

3.54 3.61

-1

1

2

3

4

5

6

7

8

-

5

10

15

20

25

30

35

40

45

FY 11 FY12 FY13 FY14 FY15 FY16 FY 17 FY 18

IEX Volume Trader Volume IEX Wt. Avg Price Bilateral Price

Source: CERC MMC Reports

IEX | Key Growth Drivers for the Power Exchange Market Exchange provides flexibility to purchase power as per requirement throughout theyear

Option available to Buy/Sell different quantum for each 15 mins time block. Minimumbid quantum can be as low as 0.1 MW

Flexibility

23

-

10

20

30

40

50

60

Mill

ion

Un

its

Gujarat Buy Volume for April-18

IEX | Key Growth Drivers for the Power Exchange Market 24

0

400

800

1200

1600

2000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

MW

Gujarat Buy Volume on 1st May, 2018

IEX | Key Growth Drivers for the Power Exchange Market 25

0

200

400

600

800

1000

1200

1400

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94

Bid

Qu

anti

ty (

MW

)

Time Block

Bihar Buy Volume on 3rd June,2018

IEX | Key Growth Drivers for the Power Exchange Market 26

0

100

200

300

400

500

600

700

800

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94

Bid

Qu

anti

ty (

MW

)

Time Block

Uttar Pradesh Buy Volume 3rd June,2018

IEX | Key Growth Drivers for the Power Exchange Market 27

0

5000

10000

15000

20000

25000

30000

35000

1-M

ay-18

3-M

ay-18

5-M

ay-18

7-M

ay-18

9-M

ay-18

11

-May-1

8

13

-May-1

8

15

-May-1

8

17

-May-1

8

19

-May-1

8

21

-May-1

8

23

-May-1

8

25

-May-1

8

27

-May-1

8

29

-May-1

8

31

-May-1

8B

id Q

uan

tity

(M

wh

)

Telangana Sell Volume for May-18

IEX | Key Growth Drivers for the Power Exchange Market 28

Telangana Sell Volume on 5th May,18

0

500

1000

1500

2000

2500

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94

Bid

Qu

anti

ty (

MW

)

Time Block

IEX | Key Growth Drivers for the Power Exchange Market 29

580

600

620

640

660

680

700

720

740

760

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94

Bid

Qu

anti

ty (

MW

)

Time Block

Sembcorp IPP Sell Volume on 9th Oct,17

IEX | Key Growth Drivers for the Power Exchange Market

Improvement in

transmission

infrastructure

♦ With more transmission capacity augmentation, the loss in volume due tocongestion is expected to be further reduced

♦ Congested volume reduced from 11% in FY 12 to 0.4% in FY 18

♦ This gives comfort that power can be purchased when required and will result inless dependence on bilateral agreement. Bilateral volumes can shift to IEX

♦ Guidelines of Ministry of Power and CERC draft regulations allow for grid connectedneighboring countries like Bhutan, Nepal and Bangladesh to trade power throughthe Term Ahead Market of the Exchanges

Cross Border

Trade

♦ Exchange also gives an option to replace costly PPAs (Portfolio Optimization) and

flexibility in procurement of power

♦ Discoms can replace high variable cost power under PPA with Exchange power and

achieve savings

Phasing out of

Old plants

Portfolio Optimization by

Discoms

30

♦ Phasing out of all vintage and inefficient plants’ will shift demand to the short term

market

Increased demand will push Discoms to harness short term and exchange markets

• MoPNG Minister Mr Dharmendra Pradhan announcedintent of the govt. to have a gas trading platform this year.

• OIDB (Oil India Development Board) awarded KPMG theconsultancy assignment to develop a framework for gastrading hub.

• On the direction of the Ministry, PNGRB (Petroleum andNatural Gas Board) has appointed CRISIL to assist indeveloping market rules and regulation for a gas tradinghub/exchange in India.

31

• Considering the similaritybetween Electricity andNatural Gas as commodity,IEX is best placed to offer thisplatform for the Gas Sector.

• IEX will be working with thetop consulting firms to ensurewe are launch ready onceconducive framework is inplace.

GAS Exchange

IEX | Other Growth Drivers for the Power Exchange Market

IEX | Other Growth Drivers for the Power Exchange Market

New products and market segments

Forward and Future Contracts

Participants on Power Exchanges in India currently lack hedgingoptions in the form of futures & forwards which are common inglobal markets.

With increased liquidity in the spot market, GoI & regulatorshave started discussing introduction of forward & future marketin electricity. This will be a business opportunity for IEX in thefuture.

Introduction of better intraday regulations & ancillary servicemarket, for balancing closer to real time, will also help PowerExchanges gain share of the UI electricity volumes

Intraday & Ancillary Market

32

States blocking Open Access

Increasing CSS by some States

Additional surcharge introduced in few states such as Rajasthan, HP, Punjab and DNH reducing viability for OA consumers, Non-issuance of NoC (UP, WB)

DEEP Platform offering competitive pricesE-bidding portal (DEEP) launched by GoI to facilitate short term procurement of power by

DISCOMS

Low liquidity in Term Ahead Products at IEX.

Volumes traded in Intra Day, DAC and other TAM products is low. In last fiscal year, the growth in TAM was 85% Y-o-Y

Coal Price and Availability

High international coal prices and low domestic coal availability has resulted reduced sell bids

Challenges to growth of Exchanges 33

With separation of content and carriage as expected in EA Amendment, tariff and non tariff barriers on Open Access are expected to reduce

IEX prices still more competitive, there is more flexibility on Exchange for power purchase

At present gate closure is 3 hours. Internationally, gate closure is half hour. We are working with CERC to reduce gate closure time. Liquidity will increase with reduced gate closure

Buy bid increased by 20% and sell bid decreased by 5%

Short Term Market Volumes on a rise

34

Source: CRISIL

CRISIL Short-term power market forecast (in billion units / percentage)

119.2142.6

163.4

194.3

237.5

300

40.5 48.960.9

76.297.7

126.4

10.3%

11.8%13.1%

15.0%

17.5%

21.1%

FY17 FY18E FY19E FY20E FY21E FY22E

Short term Volume Potential (BU) IEX Volume (BU) Short term volume/ Total generation

IEX Volume update for all current product segments vis-à-vis last year

Product CategoryApr-Mar – Million Units

FY 16-17 FY 17-18 % change

Day Ahead Market 39783 44,842 13%

Term Ahead Market 744 1,372 85%

Total Electricity 40527 46214 14%

REC 4619 9328 102%

ESCert Nil 1299

Total 45146 56841 26%

35

Stellar Financial Performance: IEX

Value in INR Crores

36

Particular FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18

Revenue 71 138 174 177 200 233 256

Operating Expenditure

19 33 38.5 41 50 55 46

Operating Profit (EBITDA)

52 105 135.5 136 150 178 210

EBITDA % 73% 76% 78% 77% 75% 76% 82%

PBT 48 93 133 133 147 174 200

PAT 34 66 92 90 100 114 132

• Financials results up to FY 2015-16 are audited as per I-GAAP and FY 2016-17 & FY 2017-18 are audited as per Ind AS.

• Dividend of RS 22/ share declared for the FY 18 ; Cash outflow is 61% (incl. DDT) of total profit

Top 10 shareholders of IEX (As on 31st March,2018)

SL No. Name of Shareholder% of Total Equity

Share Capital

1 TVS SHRIRAM GROWTH FUND 15.00%

2 DCB POWER VENTURES LIMITED 10.00%

3AGRI POWER AND ENGINEERING SOLUTIONS PRIVATE LIMITED 4.99%

4 WESTBRIDGE CROSSOVER FUND, LLC 4.75%

5 RIMCO (MAURITIUS) LIMITED 4.50%

6 RURAL ELECTRIFICATION CORPORATION LTD 4.12%

7 ADANI TRADEX LLP 4.12%

8 SIGULER GUFF NJDM INVESTMENT HOLDINGS LTD 3.02%

9 LIGHTSPEED VENTURE PARTNERS VIII MAURITIUS 3.00%

10 INDIA BUSINESS EXCELLENCE FUND - IIA 2.68%

Others 43.82%

TOTAL 100.0%

37

Awards & Accolades “Investor Relations Award 2018 - Best IPO in Mid Cap Segment”

IR Society of India

“Best CFO Award in 100-500 turnover category”- 2018The Financial Express

“Leaders in Power Market Development”- 2014 I 2015Council of Power Utilities

“Exchange of the Year”- 2014Power Business View, a First View Group Venture

“Best Performing Power Exchange - 2014India Power Award

“Best Power Exchange in India” – 2012 I 2013 I 2014 I 2015Enertia Foundation –

“Best Performing Power Trading Company/Exchange” – 2012 I 2013 I 2014Power line

“Innovators in Product and Technology”- 2013 I 2014Inc. India

“Best E- Enabled Consumer Platform” - 2009Inc. India

38

39

THANK YOU