. '" ) INDIAN ENERGY EXCHANGE Dated: May 24, 2019 The - PDF document

(e . '" ) INDIAN ENERGY EXCHANGE Dated: May 24, 2019 The Manager The Manager BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5 th Floor, Plot no C/1 Dalai Street G Block, Bandra Kuria Complex Mumbai- 400001 Bandra (E), Mumbai-400 051 Scrip Code: BSE- 540750; NSE- IEX Subject: Investors Presentation Financial Year 2019 Dear Sir / Madam, Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, please find attached Investor presentation Financial Year 2019. This is for your information and records. Thanking You Yours faithfully, For Indian Energy Exchange Limited eet Harlalka 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 1 Fax +91-11-4300 4015 (IN: L749911112007PLC277039

Investor Presentation F INANCIAL Y EAR 19 For Public Use

IEX: India’s leading Power Exchange 52 BUs of electricity traded in FY19 with an increase of 13% w.r.t. FY18 165.04 Crs PAT in FY19 with an increase of 25% w.r.t. FY18 Dominant market share of 97.5% of traded volume in electricity Traded volume on a day, crossed 306 million units (highest ever) on 29 th Sept’18 in the Day Ahead Market Diverse registered participants base of more than 6400 Business Model based on highly scalable and proven technology 2

Exchange: A Competitive ‘Market’ 3  Exchanges provide a transparent, competitive and efficient platform for transactions in any market – Stock or commodity. Same is true for power sector.  The concept of Exchanges in Power Sector was initially introduced in 1990-91 in 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 Exchange operations was put in place.  Exchanges in India started operations from 2008.

IEX Evolution 4  Inception in June 2008  Operating under the Regulatory oversight of Central Electricity Regulatory Commission (CERC)  Transparent online market platform for delivery based trading  Flexible trading with price discovery for 96 time-blocks of 15 min each for Day-Ahead Market  Technology buy out: On May 16, 2017, IEX acquired trading software along with the team  IEX became publically listed on 23rd October 2017

Company Snapshot 5  Market Share: 97.5%  Average daily trade: 6000+ MW  High Participation: 6400+ 4000+ Industries I 56 Discoms (all) I 500+ Generators I 1600+ RE Generators & Obligated entities I 100+ ESCert Entities Transparency Liquidity Competition Market Share- FY 19 (DAM & TAM) Average Daily Trade- FY 19

IEX Market Segments 6 • Day-Ahead Delivery for next day • Market Price discovery: Closed , Double-sided Auction since June,08 • Intraday Market & Day- Intraday: For Delivery within the same day • Ahead Contingency Day Ahead Contingency: Another window for next day • Round the clock since Jul’15 Gate closure : 3 hours • Term-Ahead Contracts For delivery up to 11 days • since Sep’09 Daily Contracts, Weekly Contracts • Renewable Energy Green Attributes as Certificates • Certificates Sellers : RE generators not under feed in tariffs • since Feb’11 Buyers: Obligated entities; 1MWh equivalent to 1 REC • Energy Saving Certificates 1 ESCert = 1 mtoe (metric Tonne of Oil Equivalent) • since 27th Sep’17 Trading Session on every Tuesday of the Week • Trading time 1300 hrs to 1500 hrs Auction Continuous

IEX Volume Growth : Strong trend line 7 Electricity Cleared Volume (MUs) 52,706 46,214 40,528 34,397 29,270 28,363 22,811 14,415 12,712 6,214 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 Source: IEX (DAM+TAM); DAM Volume taken on delivery basis

8 SECTOR OVERVIEW & IMPACT ON POWER EXCHANGE Generation Transmission Distribution

Installed Generation Capacity of India (GW) 9 Generation 356 344 327 298 78 69 57 268 39 243 45 32 45 44 223 43 7 29 7 7 200 41 6 26 26 28 26 26 41 6 24 24 39 5 39 23 5 132 21 5 8 20 35 201 197 192 185 4 165 15 145 130 112 71 10th Plan 11th Plan FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Coal Gas & Diesel Nuclear Hydro RES

InstalledCapacity &Generation-FY19 10 Generation Installed Generation Feasible Possible Generation Category PLF(%) Capacity (MW) (BUs) PLF(%) (BUs) Coal 200,705 61 1,022.3 80 1407 Gas 24,937 23 49.8 25 55 Diesel 638 2 0.1 0 0 Hydro 45,399 34 134.9 40 159 Nuclear 6,780 64 37.8 80 48 RE 77,642 19 126.0 20 136 Total 356,100 1371 1,804  Installed capacity has increased at a CAGR of 8.7% in last 7 years (i.e. from 199 GW in FY 12 to 356 GW in FY 19) whereas demand increased at a rate of 4.5%.  Above has resulted into surplus capacity. As a result of this coal based plants operated at a PLF of about 60% whereas they can operate at 80%.  Further capacity addition of 50,000 MW of conventional power and more than 80,000 MW of Renewable power expected during 13th Plan The present Installed capacity & planned addition are adequate to meet demand growth of 6% in next 7-8 years Source: CEA

Adequate Transmission System 11 Average Market Clearing Price (Rs./ Unit) South (S1) North (N2) 6.86 RoI 5.13 5.11 4.73 4.37 3.96 3.88 3.79 3.27 3.31 3.49 3.23 3.13 2.77 2.79 3.25 2.55 3.81 2.58 3.27 3.23 3.48 3.07 3.07 2.52 2.46 2.29 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Market Curtailed Cleared Curtailment FY Clearing Volume volume (MU) (%) Volume (MU) (MU) FY14 34,230 28,925 5,305 15.5 FY15 31,227 28,141 3,086 9.9 FY16 36,210 34,067 2,143 5.9 FY17 41,310 39,830 1,480 3.6 196 0.4 FY18 45,121 44,925 FY19 50,600 50,136 464 0.9  With transmission augmentation, congestion has reduced.  Reduced congestion has increased reliability in sourcing power from exchanges

Demand will Continue to Increase 12 Distribution  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 peak demand and energy requirement by 8% and 5.2% respectively in FY19 YoY  In FY19 states like, Rajasthan(12%), Bihar(11%), Telangana(11%), Odisha(10%) Andhra Pradesh(9%), Madhya Pradesh(9%), Haryana(6%), Maharashtra(6%) and Gujarat(6%) witnessed significant increase in demand YoY Increase in demand is helping short term market grow

Per capita electricity consumption very low compared to world average 13 Distribution 12994 Per Capita Electricity consumption 6940 7035 kWh 6603 3927 3127 2601 1149* US France Germany Russia Global China Brazil India Average • With expected thrust on economic and industrial development and 24/7 power supply, Per Capita consumption bound to increase To bring per capita close to global average, 3X power generation will be required : HIGH POTENTIAL FOR DEMAND GROWTH Source: CEA, World Bank (2014) *2017-18,CEA

Power Exchange across Globe 14 Enormous potential to grow for India compared to international benchmarks INDIA TRADES ~3 OF ITS OVERALL CONSUMPTION ON EXCHANGE GLOBAL BENCHMARKS ON PENETRATION OF ST MARKETS MARKETS COMPARED TO 15-91 GLOBALLY VOLUME IN BU (Billion Units) Indian markets still at a nascent stage and high potential for growth for the Indian Power Exchanges

15 MARKET SNAPSHOT

India Power Sector I Key Market Segments (As on 28 Th Feb 2019) 16 Long Term Short Term 1245317 MUs OTC: Exchanges: Up to 25 years Real Time Intraday to 1 year Intraday – 11 days 69918 MU 11001119 25132 MU 50148 MU 4.1% 2.0% 88.3% 5.6% Exchanges (Only up to 11 days)  Day Ahead Long-term Power Bilateral & Banking Deviation settlement/ Purchase Agreements Transactions Contingency Unscheduled  Daily (PPA) Interchange  Weekly  Day Ahead Market Short Term Power market is at 11.7%, Power Exchange volume in the segment have been growing significantly Source: CERC MMC Report Source: CERC MMC Report

Short term market snapshot (BUs) 17 FY 10 FY 19 5.5% 9.2% 8.7% 70 24.3% 50 0.3% 33 26 25 7 Total STM Direct/Banking & Trader Power Exchanges DSM Generation Overall generation in the country, increased by 5.6% CAGR. *Source: CERC MMC Report % change is CAGR

Product Wise IEX’s Volume Growth _FY 18 FY 18 FY 19 13% 52189 46203 4% 9329 8955 DAM & TAM (MUs) REC* ( '000) Decrease in REC volume due to lower inventory

Price Trend : Avg. MCP (Rs./kWh) 19 FY17: 2.42 FY18: 3.26 FY19: 3.85 5.94 4.69 4.67 4.09 3.73 4.08 4.02 3.98 3.59 3.34 3.33 3.30 3.46 3.23 3.12 3.08 2.92 3.55 2.77 3.20 2.59 2.49 3.13 3.00 2.91 2.56 2.54 2.50 2.46 2.43 2.32 2.31 2.32 2.32 2.17 2.16 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar