IEX INDIAN ENERGY EXCHANGE Dated: August 21, 2019 The Manager The - - PDF document

IEX

INDIAN ENERGY EXCHANGE

Dated: August 21, 2019 The Manager BSE Limited Corporate Relationship Department Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400001 The Manager National Stock Exchange of India Ltd Listing Department Exchange Plaza, 5th Floor, Plot no C/1 G Block, Bandra Kurla Complex Bandra (E), Mumbai-400 051 Scrip Code: BSE- 540750; NSE- IEX Subject: Investors Presentation Q1 Financial Year 2020 Dear Sir / Madam, Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, please find attached Investor presentation Q1 Financial Year 2020. This is for your information and records. Thanking You Yours faithfully, For Indian Energy Exchange Limited

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Company Secretary & Compliance Officer Encl: as above

www.iexindia.com

Indian Energy Exchange Limited

Registered & Corporate Office: Unit No. 3, 4, 5 & 6, Plot No.7, Fourth Floor, TDI Centre, District Centre, Jasola, New Delhi — 110025 Tel: +91-11-4300 4000 I Fax: +91-11-4300 4015

CIN: L74999DL2007PLC277039

For Public Use

Investor Presentation

Q1 FY 2020

• IIFL Conference – New Delhi

Contents

2

1

India’s economic roadmap Energy transformation drivers Power market – key drivers IEX - driving the thought leadership Summary

2 3 4 5

India continues to remain the fastest growing emerging economy – Electricity a key input to growth!

3

• India GDP projected at 6.9%

for FY’20

• Government envision to make

India $5tn economy by FY’25

• India is poised to surpass

Japan to become the third largest economy in 2025

• World’s 17 of 20 fastest

growing cities in India

• India is the 3rd largest

producer and consumer of electricity in the world; and 5th largest in RE capacity

• Make in India - target to

increase contribution of manufacturing in GDP to 25% from 17% currently.

• Industrial sector consumes

42% of total electricity in India whereas agriculture and domestic consume 18% and 24% respectively.

Sectoral contribution to GDP % FY’19 (%)

Agriculture, forestry & fishing 16.1 Mining & quarrying 2.4 Manufacturing 16.4 Construction 8.0 Services 57.1

Energy – the Shift to 4 Ds

4

• The rapid deployment of low-

carbon technologies such as wind and solar.

• Outlook:
• Renewables will become

leading energy sources

• New technologies like

hybrid would emerge in future depending on local characteristics and specific financial incentives.

Decarbonization

• The addition of intelligent

control systems and internet- enabled software to optimize plants and the grid.

• Outlook:
• Aggregation (DR,VPP)

would emerge with the adoption of new digital technologies.

Decentralization

• The distribution of small-

scale generation throughout the T&D network.

• Outlook:
• RE in general will pose

a threat to centralized energy production paradigm.

• Need for local

solutions will increase

Digitization Democratization

• The empowerment of

consumers by putting of economic power in the hands of individuals and taking some political power away from large corporations.

• Outlook:
• Energy trading

between consumers

Increasing play of renewable energy

5

Paris Climate Agreement – Ren energy to constitute 40% of total installed capacity base of 1250 GW

Source: CEA

Thermal 63% Nuclear 2% Hydro 13% Small Hydro 1% Wind Power 10% Bio-Power 3% Solar 8% Thermal 53% Nuclear 2% Hydro 10% Small Hydro 1% Wind Power 12% Bio- Power 2% Solar 20% Thermal 35% Nuclear 2% Hydro 8% Small Hydro 1% Wind Power 17% Bio-Power 1% Solar 36%

2019 2022 2030

• RE target of 175 GW by 2022, current 79GW
• $5Bn of transmission line capacity augmentation
• Decentralized generation close to consumers
• New tech, innovative solutions & business models

Power markets – key drivers

Growing demand

• Government of India’s commitment to provide

electricity to all and on 24x7 basis

• Economy growth from $ 2.7tn to $ 5tn by FY

2025

• Paris Climate Agreement
• Rapid Urbanization and Smart Cities

Policy and Regulatory enablers

• MoP 5 year vision document
• Government’s focus to address DISCOM distress
• Market framework
• Real Time Electricity Market and National

Open Access Registry

• Domestic Coal Allocation
• Phasing out of Old plants
• Cross Border Trade; Long Duration

Contracts; Green TAM

• Budget highlights: Uday 2.0, addressal of barriers

to open access like Cross Subsidy Surcharge; electric mobility

Total electricity demand in the country has increased by 4.5% in the last 5 years

IEX has seeded & developed a robust power market in India

7

• Ensuring Availability and Accessibility of

electricity aligned with the government’s vision:

• Power for all
• Power on 24*7
• Ensuring competitive price discovery

through diversified participation

• Providing flexibility in procurement
• Scalable and proven technology

infrastructure Electricity Cleared Volume (BU)

FY15 FY16 FY17 FY18 FY19 Q1 FY20

28.3 34.3 40.5 46.2 52.2 13.0

74.2 67.8 69.7 61.7 56.2 58.5 41.9 37.9 39.6

83% 83% 84%

80% 81% 82% 83% 84% 85% 0.0 20.0 40.0 60.0 80.0

Q1 FY 2019 Q4 FY 2019 Q1 FY 2020 Revenues EBITDA PAT EBITDA Margin

Financial Performance (Rs Cr) Increasing ease of doing business and reducing cost of doing business

Business strategy aims to diversify market

• ffering to maximize core

Maximize Core

Real Time Markets; National Open Access Registry Strengthen day ahead market Long duration contracts to create market from 1day to 365 days Cross Border Trade G-TAM Ancillary Markets

New Opportunities

Technology Play

• India will continue to be the fastest growing economy.
• Energy will be a critical input into India’s growth story.
• India is on the cusp of shift in the energy sector.
• Power markets are at nascent stage; potential for growth is immense.
• Increase in power demand and regulatory enablers will accelerate power exchange

market.

• IEX is delivering the government’s vision

Summary

Thank You