#1INVESTOR PRESENTATION JANUARY 2018 ION EXCHANGE Refreshing the Planet#2Our Vision ION EXCHANGE Refreshing the Planet To be the leader in our business which is so vital to people's lives and the environment. 36330 Celebrating YEARS OF TRUST 2#3EXECUTIVE SUMMARY COMPANY OVERVIEW BUSINESS OVERVIEW FINANCIAL OVERVIEW ION EXCHANGE Refreshing the Planet 3#4EXECUTIVE SUMMARY ION EXCHANGE Refreshing the Planet 4#5Executive Summary • . OVERVIEW (lon Ion Exchange (India) Ltd. Exchange), formed in 1964, is a pioneer in water, waste water treatment & environment solutions and caters to various industries, homes & communities. Headquartered in Mumbai, the company has six manufacturing & assembly facilities across India, and one each in Bangladesh and UAE. It also has presence across other key geographies. • Installation: 1 lakh globally; 500+ in core sectors. Total Income* INR 10,298 Mn *FY17-Consolidated Figures • BUSINESS & REVENUE (%) MIX - CONSOLIDATED Provides Engineering (60%) comprehensive and integrated services and solutions in water & waste water treatment including Sea Water desalination, Recycle and Zero liquid discharge plants to diverse industries. Provides α Chemicals (30%) comprehensive range of resins, speciality chemicals and customized chemical treatment programmes for water, non-water and specialty applications. Consumer Products (10%) - Caters to individuals, hotels, spas, educational institutions, hospitals, laboratories, railway and defence establishments providing safe drinking water and a clean environment. EBITDA* INR 833 Mn . . . ION EXCHANGE Refreshing the Planet MARQUEE CLIENTS Industrial NTPC, NPC, Reliance, IOCL, JSW, CPCL, L&T, Essar group, IRCTC, BHEL, Tata Group. Institutional Leela, Military Engineering Services, Taj Hotels, Holiday Inn, Hyatt Regency, Oberoi Hotels, Apollo Hospitals, Escorts Heart Institute, DLF, Puravankar. International Cargill, Technip France, Unilever group, Jurong, Thyssenkrupp (Uhde), Jacobs, Kawasaki, Mitsubishi, PDO Oman, Emirates Steel, IKPP Indonesia. PAT* INR 283 Mn 5#6COMPANY OVERVIEW ION EXCHANGE Refreshing the Planet 6#7Company Overview • • • • • Ion Exchange was originally formed as a subsidiary of Permutit, UK in 1964. It became a wholly owned Indian company in 1985. The company is currently in its 53rd Year of operations. The company has expanded its footprints globally and possesses a diversified product range. It offers one stop water and non-water treatment solutions catering to diverse segments like infrastructure, industry, institutions, municipal, homes and communities, urban and rural. The company offers a wide range of solutions across the water cycle from pre-treatment to process water treatment, waste water treatment, recycle, zero liquid discharge, sewage treatment, packaged drinking water, sea water desalination etc. The company is also engaged in manufacturing ion exchange resins, speciality chemicals for water and waste water treatment as well as non- water applications. It has two facilities for in-house R&D and two applications and testing centers. The company has over 50 patents to their credit and 100+ products commercialized. The company has a global presence apart from presence in major cities in India with sales & service centers and dealer network of more than 100. The company exports to Africa, Japan, Middle East, Russia, South East Asia, Europe, UK, USA, Canada and neighbouring countries. ION EXCHANGE Refreshing the Planet REVENUE BREAKUP 9M-FY18* 11% ■ Engineering ■Chemicals 36% 53% ■Consumer Products * Standalone Numbers GEOGRAPHICAL BREAKUP FY17* * Consolidated Exports 32% Domestic 68% 7#8• Key Management Personnel Rajesh Sharma, Chairman & MD Joined in 1974. Experience in Sales, Marketing, International Business Management. • More than 4 decades of experience in Water Treatment Industry. Aankur Patni Executive Director Dinesh Sharma Executive Director Ajay A. Popat MANAGEMENT TEAM President Corporate Diversification, Technology & Marketing N. M. Ranadive Executive VP - Finance Dinesh Sadasivan Executive VP - Standard Systems, CSD & Services S. V. Mehendale Executive VP - Resins & Membranes . S. N. Iyengar ION EXCHANGE Refreshing the Planet Executive VP - Medium Industry Anil Khera Executive VP- Chemical Vasant Naik Sr. VP Finance Prashant K. Chitnis Sr. VP Technology J. P. Pathare Sr. VP International Division C. K. Sandeep Sr. VP - Environment 8#9Key Milestones ION EXCHANGE Refreshing the Planet 1964 Incorporated as 60% subsidiary of Permutit Co., U.K. 1965 Resin Production and equipment facility started at Ambernath. 1977 Listed on BSE. 1978 First company to launch RO concept in India. 1979 Resin manufacturing plant set-up at Ankleshwar. 1982 Engineering and fabrication setup started at Hosur. 1983 Industrial Chemical Production started at Patancheru. 1986 Zero-B Launched with Suraksha tap attachment. 1987 Started manufacturing RO membranes at Halol. 1996 First sea water RO desalination plant in India at GEB, Sikka. 1998 Consumer products manufacturing started at Goa. 2010 Commissioned largest RO based water desalination plant. 2015 Contract for Water supply project worth USD 194 mn signed with Sri Lanka Water Board. 2017 Integrated and automated reverse osmosis membrane manufacturing process at Verna, Goa. 9#10Global Footprint Canada USA Bahrain Bangladesh Saudi Arabia UAE India Oman Thailand Tanzania Singapore Malaysia Nigeria Kenya Indonesia South Africa International Division Manufacturing Facilities ION EXCHANGE Refreshing the Planet 10 10#11Domestic Footprint ANKLESHWAR, GUJARAT Resin Facility - Water and non-water RABALE, MAHARASHTRA VERNA, GOA EOU & Engineering Design Facility Standard Systems 10 Corporate Office International Division Regional & Branch offices Service Locations Service Offices Manufacturing Facilities Design Centres ION EXCHANGE Refreshing the Planet WADA, MAHARASHTRA Fabrication Facility Chemicals Facility Standard Systems PATANCHERU, TELANGANA HOSUR, TAMIL NADU#12Research And Development Q Strong focus on R&D ION EXCHANGE Refreshing the Planet Well established in-house R&D department since 1965 Recognized by Department of Scientific and Industrial Research (DSIR), New Delhi For Chemicals at Patancheru, Telangana For Engineered Products & Systems at Vashi, Maharashtra Product application and testing centers with numerous patents to their credit Over 50 patents Over 100 products launched 12#13Awards & Accolades WATER ION EXCHANGE Refreshing the Planet Water Digest Water Award (UNESCO) 2015-16 Chemtech CEW Leadership & Excellence Award 4 TIMES IN A ROW Mera Brand Awards for Zero B- Most Preferred RO Brand 3 TIMES Best Water Solutions Provider 8 TIMES Best Water Company with Unesco 2015-16 Best Water Treatment Solutions Provider 4 TIMES Best Water Treatment- Chemicals 3 TIMES Best Water Treatment Project - Industrial 2015-16 Construction Week Runner-up 2010 VOICE OF CUSTOMER- Water Treatment Chemicals India Excellence in Chemicals, Materials & Foods Award 13#14Key Strengths ION EXCHANGE Refreshing the Planet 1 Design, Engineering and supply of water, waste water treatment and recycle plants on turnkey, BOT and EPC basis. 2 Largest one stop shop water solution's provider in Asia. Global footprint with exports to several African, European and Middle East countries as well as to UK and USA. A २. 4 50 years of pan India presence. 5 Manufacturer of chemicals and ion exchange resins in ISO 9001, 14001 and OHSAS 18001 certified facilities. 6 Comprehensive 24/7 support ensures continuity. 14#15Future Strategy ION EXCHANGE Refreshing the Planet • Engineering Increased exposure to international markets. Selectively target Infrastructure and Municipal projects. Chemicals • Export of resins and development of new products for the US & Europe markets. A Consumer Products Initiation by the government to improve infrastructure. • • Increased application coverage of resin and membrane technologies. New Government initiatives resulting in more opportunities. • Resins for pharmaceutical industry. • • • Introduction of new specialty chemicals. Continued Investment in R&D and value. Introduction of surface water treatment solutions in association with PHED's & State Rural Water Supply Departments. • Focus on expansion of ground water treatment solutions. 15#16BUSINESS OVERVIEW ION EXCHANGE Refreshing the Planet 16#17Business ION EXCHANGE Refreshing the Planet Ion Exchange (India) Ltd, formed in 1964, is a pioneer in water, waste water treatment & environment solutions and caters to various industries, homes & communities Management of Process Water Process Water Treatment 14 - Ion Exchange & Membrane Based Pretreatment Process Applications with Resins/Membranes Industrial Waste Water Treatment/Recycle & Solid Waste Management Drinking Water Treatment ZERO B Sewage Treatment, Effluent Recycle & Solid Waste Management 17#18Business Segments Business Segments ^ A Consolidated as on FY2017 ION EXCHANGE Refreshing the Planet Engineering (60%) Industrial Municipal O&M / Services Chemicals (30%) Consumer Products (10%) Retail Industrial Chemicals Institution Resins Rural Water treatment chemicals Specialty Chemicals Conventional Resins Specialty Resins 18#19Work-flow Process • Water Treatment Water Treatment Raw Water Treatment II ION EXCHANGE Refreshing the Planet Waste Treatment & Recycle Specialty Chemicals Disinfection 。 Chlogen О Ozonator Membrane Processes Micro/Ultra- O UV System Filtration Clarification Reverse Ion Exchange Processes • • • Softeners De-alkalisers О Ultra High Rate Osmosis • Clarifier Nano-Filtration Ion Exchange Resins • Demineralizers о Aerobic Process о Activated Sludge Process MBR о MBBR о SBR Anaerobic • о UASB Metal Removal . • 。 Lampak Filtration Multi Grade О Filter о о Carbon & Sand filters Valveless Gravity Filter Advanced Oxidation Reject Containment/Zero Discharge Polyelectrolytes 。 Coagulants o Flocculants Boiler Water Treatment Chemicals Scale & Corrosion Control Treatment Sludge Conditioner Alkalinity Builders . Cooling Water Treatment Chemicals Equipment Membranes Resins Chemicals Enzymes 19#20Engineering • • • • • The Company designs, engineers, manufactures and sells medium and large size equipment for water and waste water treatment plants including recycling & Zero liquid discharge plants. Extensive technologies, process design & detailed engineering experience and project management capabilities are integrated into advanced solutions for industrial and municipal applications. These are offered as standard and pre-engineered plants as well as customized, design & build projects undertaken on turnkey, BOOT or EPC basis. Exercise of rigid controls and stringent quality assurance systems at every stage of design, engineering and execution ensures absolute reliability and commissioning. The Engineering segment caters to industrial, municipal and institutional segment and also includes O&M Services. It caters to diverse industries like Petrochemical & Refinery, Power, Steel, Auto, Sugar, Electronics, Pharma, Pulp & Paper, Textile, Cement, F&B etc. ION EXCHANGE REVENUES* (INR MN) Refreshing the Planet 6,418 5,572 5,140 4,850 4,573 FY13 FY14 FY15 FY16 FY17 ENGINEERING SEGMENTS O&M & SERVICES INDUSTRIAL APPROXIMATE ORDER BOOK & PIPELINE: Engineering projects INR 5,000 Mn Bid Pipeline INR 30,000 Mn 20 20 *Consolidated#21• • Engineering - Industrial PROJECTS: Ion Exchange integrates extensive process technologies and design, engineering & project management expertise into design & build projects, on turnkey, BOOT or EPC basis. Specially formed teams manage and support each and every stage of project implementation. Projects cater to treatment needs of industries such as nuclear and thermal power, fertilizer, refinery, petrochemical, automobile, electronics, paper, textile and chemical. STANDARD SYSTEMS: Packaged and pre-engineered range softeners, filters, demineralizers and reverse osmosis systems, Ultra-filtration plants are engineered to meet the exacting process water quality requirements of different industries. These high performance, pre-tested and skid-mounted fast track delivery systems are quick to commission, and easy to use and maintain. For example, specifically for the pharma industry, the company has a completely integrated package for purified/ WFI water generation and distribution. MEMBRANES: In 1978, Ion Exchange pioneered and promoted the application of reverse osmosis concept in India and it now manufactures its own Membrane Elements and Pressure tubes. Reverse osmosis: Industrial and domestic applications - brackish, Sea & process water, waste water treatment/recycle and drinking water systems. ION EXCHANGE Refreshing the Planet Demineralization Plant for thermal power station RO-SKID-A 21#22Clientele - Industrial & Institution ION EXCHANGE Refreshing the Planet HEAVY INDUSTRIAL PETROCHEMICALS AUTO- MOBILES HOTELS POWER PHARMA TEXTILES ELECTRONICS/ ELECTRICALS PAPER AND PULP JSW ( इंडियन ऑयल) BAJAJ Distinctly Ahead TAJ ADANI حديد الإمارات IIIC emirates steel Indian Oil Reliance Industries Limited CPCL Kawasaki GM MITSUBISHI H Holiday Inn Cipla Caring for life TATA POWER Zydus Cadila HYATT HOTELS & RESORTS Feel the Hyatt Touch बीएचईएल BHEL Maharatna Company Aventis Aventis Pharma L THE LEELA MUMBAI एनटीपीसी NTPC GRASIM LG A EASY DRESSING FOR THE SELF MADE MAN ITC Limited TRIDENT GROUP" moserbaer GROUP ashima SAMSUNG Baxter TEXCELLENCE JK PAPER LTD. indah kiat pulp and paper products: Technip شركة تنمية نفط عمان همم Petroleum Development Oman LLC. CHEMICALS JACOBS ESSAR OIL & GAS AIS Asahi India Glass Ltd. ADITYA BIRLA NUVO SUGAR CEMENT dhampur GEM GROUP ACC ACC LIMITED Ambuja Cement FOOD & BEVERAGES HATSUN KDIL HOSPITALS REAL ESTATE Apollo HOSPITALS ESCORTS HEART INSTITUTE AND RESEARCH CENTRE LIMITED DLF⭑ PURAVANKARAⓇ 22#23Engineering - O&M and Services Ion Exchange's O&M and services provides single-source responsibility, saves customers expense, manpower, supervision and the hassle of maintaining facilities in-house. O&M CONTRACTS Annual Maintenance: Water & waste water equipment for efficient performance and zero downtime, scheduled inspection visits and scheduled maintenance & services. A comprehensive service contract where Ion Exchange takes complete responsibility for supply of treated water in required quantity and quality at the customer's place. Boiler & Cooling Water Treatment Programs. Consultancy & Surveys. SERVICES: It has a network of more than 1,500 trained service and plant management personnel for operation, maintenance & services. RANGE OF SERVICES INCLUDES Water Management Surveys Feasibility & Pilot Plant Studies Erection & Commissioning BOOT Projects • Operator Training • Servicing • Supply of Fabricated Components & Consumables ION EXCHANGE Refreshing the Planet 00 • Operation & Maintenance 23 23#24Engineering Industry Overview • · • • • MARKET POTENTIAL ION EXCHANGE Refreshing the Planet The global water industry including sectors like desalination, wastewater treatment and water-efficiency technologies, is expected to touch $652.38 billion in 2017. The domestic industrial sector is expected to grow at a CAGR of 5-7% while waste water management is projected to grow at a CAGR of 8-10% through 2015-2020. Capital expenditure on water and wastewater infrastructure in India is set to increase by 83% over the next five years, hitting an annual run rate of USD 16 bn by 2020. Out of this, the utilities market would account for USD 14 billion and the industrial sector would account for the balance USD 2 billion. Water demand in the country is expected to grow at 21% CAGR over 2015-2020. A study by the Central Pollution Control Board (CPCB) has revealed that almost 62,000 MLD of sewage is generated across urban India and there are just 816 STP installed that treat 23,277 MLD or 37.5% of sewage per day. In 2001, per capita water availability was 1,820 cubic meters which is projected to decline to 1,140 cubic meters by 2050. This in turn will generate strong growth opportunities for the water & waste water recycling market. INDUSTRIAL REQUIREMENT • • • • Around 40% of the STP's do not conform to the environment protection standards. Compliance by state owned STP's is low. The waste water treatment sector is expected to grow faster than the water treatment sector. Increased government regulations on waste water discharge to drive demand for water and waste water treatment chemicals. Capital expenditure on water reuse is expected to grow at a CAGR of 19.5%. Many contracts are now being awarded under DBO or EPC+O&M model with operating contracts of 5 or more years. • In India only 60% of industrial waste water is treated. 24 24#25Engineering Industry Overview MAKE IN INDIA ION EXCHANGE Refreshing the Planet • • The GOI's 'Make in India' Programme is expected to generate new opportunities as Industrial capex gains traction. INR 500 bn (USD 7.7 bn) has been allocated for investment in 500 towns and cities under AMRUT and another INR 480 bn (USD 7.4 bn) has been put aside for upgrading 100 cities to attain 'smart' status. Water and waste water infrastructure is anticipated to constitute up to 40% of the total investment under these initiatives. • • • . • SWACHH BHARAT ABHIYAN "Namami Gange", the clean Ganga initiative, can create significant opportunities. INR 200 bn (USD 3 bn) has been pledged by the government over the next five years to clean up the Ganga. A new Ganga River Basin Management Plan (GRBMP) was submitted in January 2015, outlining important steps to prevent the discharge of untreated waste water into the river. The CPCB has introduced tighter waste water discharge standards for municipal waste water treatment plants. Future facilities will need to comply with these standards, while existing WWTPs will need to meet them within five years. Source: Market Reports on India, EBTC, ValueNotes, Business Standard Global Water Intelligence, Ken research, IEI, Broker Research Reports, Frost & Sullivan 25#26Chemicals . The company is engaged in manufacturing water treatment chemicals, ion exchange resins and other specialty chemicals. Water treatment chemicals are used in boiler, cooling water treatment, coagulation and flocculation, membrane cleaning etc. Package treatment programmes are tailor made to suit customer needs. • Ion exchange resins are Used for softening, demineralization in water treatment. They are also used in various non-water separation across many verticals such as pharmaceuticals, biotechnology, food and beverages etc. • Specialty Chemicals include performance chemicals used in processing of Paper, Sugar, Pharma and Refinery segment. ION EXCHANGE Refreshing the Planet REVENUES* (INR MN) 3,243 3,106 2,949 2,547 2,435 FY13 FY14 FY15 FY16 FY17 CHEMICALS RESINS (50%) * Consolidated INDUSTRIAL CHEMICALS (50%) 26 26#27Water Treatment & Speciality Chemicals ION EXCHANGE Refreshing the Planet The company manufactures Water Treatment & Specialty Chemicals in a modern ISO 9001, 14001 and OHSAS 18001 certified manufacturing facility. Ion Exchange is known for their tailor made treatment programs coupled with continuous developments of newer formulations to satisfy diverse customer needs and backed by a strong service team. The Company has a range of products covering the complete spectrum of customer needs in various sectors like refineries, steel, power, textile, chemical etc which includes: Water Treatment Chemicals Coagulants and Flocculants • RO and Thermal desalination Chemicals • Fuel & Fireside additives . Process Chemicals - Sugar, Paper, Ceramics, Refinery and Mining application • Water quality testing kits 27#28Chemicals - Resins Resins are backed by innovation, quality and service, sustained R&D and state-of-the-art ISO 9001 and 14001 certified manufacturing facilities. They also have FDA approved pharma grade resin facility. Ion Exchange offers products under the registered trademark of INDION RESINS which include the following: • ION EXCHANGE Refreshing the Planet SPECIALTY RESINS FOR DECOLORIZING Sugar • Chemical & - Complete range of cation and anion resins for water and waste water treatment, purification of bio-diesel, sugar, food and beverages & host of speciality applications pharmaceutical excipients, catalysts, nuclear grade resins, brine softening, heavy metal removal and adsorbent grade resins. Resins for removal of colour, odour, organics, nitrate, iron, fluoride, arsenic and tannin. Tailor-made resins developed to suit specific applications which has over 30 patents to their credit, over ten of these on ion exchange resin products and processes. Bio-Diesel . Pharmaceutical Special Processes • Refinery Processes Industrial Water Treatment Potable Water Hydrometallurgy Nuclear Food & Beverage 28#29Chemicals Industry Overview • • • • • • • MARKET POTENTIAL ION EXCHANGE Refreshing the Planet The market for water and water treatment chemicals in India is expected to expand leaps and bounds due to the focus on optimum utilization of water resources. The global demand for water chemicals is currently estimated at USD 25.1 bn and in the next five years the market is estimated to grow at 5.8% p.a to reach USD 33.3 bn in 2019. In India, the water chemicals market is expected to grow by close to 15% to about USD 0.8 bn by 2019. Segments using water treatment chemicals constitute approximately 18% of the water consumption in India and is bound to grow further with the governments increased focus on water treatment. Global ion exchange resins market is expected to reach USD 2.26 bn by 2026. In the budget 2017, as part of a sub mission of the National Rural Drinking Water Programme (NRDWP), it has been proposed to provide safe drinking water to over 28,000 arsenic and fluoride affected habitations in the next four years. INDUSTRIAL APPLICATION 29% of the revenue contribution in the Industrial water treatment chemicals market is contributed by corrosion and scale inhibitors. Coagulants and Flocculants constitute the largest segment of approximately 38% of the total market size, followed by biocides and disinfectants which constitute close to 19%. Other large segments are defoamers (7% share) and pH adjusters (5% share). GROWTH POTENTIAL Increased investments by the Government, industry and rapid urbanization will lead to greater demand for water treatment infrastructure. • Chemicals business is expected to grow at an average rate of around 13-15% with a healthy bottomline. Source: Market Reports on India, EBTC, ValueNotes, Research & Markets, TechSci research, IEI, Broker Research Reports 29 29#30Consumer Products The company's water and environment management solutions extend beyond the industrial sector to homes, hotels, spas, educational institutions, hospitals, laboratories, realty sector and defence establishments providing safe drinking water and a clean environment. It focuses on household and point of use water purifiers and plans to increase its presence in the rural drinking water treatment. Apart from systems for specific medical, laboratory and hospital water applications, typical requirements include: • Water for drinking and use in kitchens and canteens • Softened water for bathing and laundry • Management of heating and cooling water circuits with speciality chemical treatment programmes • Swimming pool water filtration and disinfection ION EXCHANGE REVENUES* (INR MN) Refreshing the Planet 1,048 878 865 871 832 FY13 FY14 FY15 FY16 FY17 CONSUMER PRODCUTS RETAIL INSTITUTION RURAL *Consolidated 30 30#31Consumer Products - Retail & Community • • ION EXCHANGE Refreshing the Planet Ion Exchange is the pioneer of the revolutionary RO technology, in India. With its National & International presence, Zero B has emerged as one of the premier brand of the company in this segment. At Zero B, every product is crafted with meticulous attention to detail so that it provides ultimate protection against all water- borne diseases and ensures complete protection. Zero B has pioneered many path-breaking innovations in the field of technology to provide a one stop water treatment solution for home and the community. NON-ELECTRIC PURIFIERS WATER SOFTENERS RO PURIFIERS Suraksha SOFT HONE ONEXCHANGE 0000 Intella ecoRO 22708 HAR 31#32FINANCIAL OVERVIEW 32 32 ION EXCHANGE Refreshing the Planet#33Standalone Income Statement ION EXCHANGE Refreshing the Planet INCOME STATEMENT (INR MN) FY13 FY14 FY15 FY16 FY17 9MFY18** Total Income* 7,732 7,201 7,400 8,139 9,513 6,888 Total Expenses 7,208 6,705 6,813 7,419 8,575 6,311 EBITDA 524 496 587 720 938 577 EBITDA Margins (%) 6.8% 6.9% 7.9% 8.9% 9.9% 8.4% Depreciation 79 84 98 100 108 94 Finance Cost 120 98 109 106 128 108 PBT Tax 325 314 380 514 702 375 110 109 119 169 242 135 Profit After Tax 215 205 261 345 460 240 PAT Margins (%) 2.8% 2.8% 3.5% 4.2% 4.8% 3.5% Other Comprehensive Income (3) Total Comprehensive Income 237 EPS Diluted (INR) 14.56 14.08 17.61 23.20 31.36 20.04 * Incudes other income ** As per Ind As 33#34Historical Standalone Balance Sheet (As per IGAAP) ION EXCHANGE Refreshing the Planet PARTICULARS (INR MN) EQUITIES & LIABILITIES FY15 FY16 FY17 PARTICULARS (INR MN) FY15 FY16 FY17 Shareholder Funds (A) Share Capital ASSETS Non Current Assets 145 146 147 (A) Fixed Assets 750 823 1,233 (B) Reserves & Surplus 2,058 2,355 Total -Shareholder Funds 2,203 2,501 2,812 (B) Non-current investments 2,959 (C) Deferred Tax Assets (Net) 552 552 552 0 0 0 Non Current Liabilities (A) Long Term Borrowings 102 155 (B) Deferred Tax Liabilities (Net) 46 43 (D) Long term loans & advance 277 (E) Other non-current assets 41 Total - Non - Current Assets 597 692 650 67 59 39 1,966 2,126 2,474 (C) Other Long Term liabilities 73 84 86 (D) Long Term provisions 108 119 108 Current Assets Total Non - Current Liabilities 329 401 512 (A) Current Investments 1 1 1 Current Liabilities (B) Inventories 453 598 858 (A) Short term Borrowings 357 410 408 (C) Trade Receivables 3,265 3,352 4,216 (B) Trade Payables 2,703 2,893 3,532 (D) Cash & Bank Balances 148 192 1,511 (C) Other Current Liabilities (E) Short-term loans & 565 595 2,511 486 724 1,051 advances (D) Short-term provisions 164 198 - Total Current Liabilities 3,789 4,096 193 (F) Other current assets 6,644 Total - Current Assets 2 5 4,355 4,872 7,641 GRAND TOTAL - EQUITIES & 6,321 6,998 10,115 GRAND TOTAL - ASSETS 6,321 6,998 10,115 LIABILITES 34#35Standalone Balance Sheet (As per IND-AS) PARTICULARS (INR MN) EQUITIES & LIABILITIES Equity (A) Equity Share Capital (B) Other Equity Total Equity Non-Current Liabilities (A) Financial Liabilities (i) Borrowings H1FY18 PARTICULARS (INR MN) ASSETS ION EXCHANGE Refreshing the Planet H1FY18 Non-Current Assets 147 (A) Property, Plant and Equipments 850 2,661 (B) Capital Work-in-progress 418 2,808 (C) Other Intangible Assets 13 (D) Financial Assets (i) Investments 575 (ii) Trade Receivables 36 234 (iii) Loans 381 (ii) Other financial Liabilities (B) Provisions 89 (E) Income Tax Assets 3 125 (F) Other Non-Current Assets 62 (C) Deferred Tax Liabilities (Net) 20 - Total Non Current Assets 2,338 (D) Other Non-Current Liabilities Total Non-Current Liabilities 0 Current Assets 468 (A) Inventories 1,044 Current Liabilities (A) Financial Liabilities (i) Borrowings (ii) Trade Payables (iii) Other Financial Liabilities (B) Other Current Liabilities (C) Provisions (B) Financial Assets (i) Investments 4 1,166 (ii) Trade Receivables 4,313 3,446 (iii) Cash & Cash Equivalents 321 299 (iv) Bank Balances 1,725 2,900 (v) Loans 744 36 (vi) Others 36 (D) Liabilities for current tax (Net) 142 (C) Other current assets 740 Total Current Liabilities 7,989 Total Current Assets 8,927 GRAND TOTAL - EQUITIES & LIABILITES 11,265 GRAND TOTAL - ASSETS 11,265 35#36Financials - Standalone (As per IGAAP) REVENUES* (INR MN) EBITDA (INR MN) CAGR 17% 8,139 FY16 ION EXCHANGE Refreshing the Planet PAT (INR MN) 9,513 938 460 CAGR 30% 720 CAGR 33% 345 FY17 NET DEBT/EQUITY 0.1 FY 16 * Incudes other income FY16 FY17 ROE and ROCE -ROE -ROCE 18.9 16.2 FY16 FY17 WORKING CAPITAL DAYS 50 40 15.5 13.8 -0.3 FY17 FY16 FY17 FY16 FY17 36#37Consolidated Income Statement (As per IGAAP) INCOME STATEMENT (INR MN) Total Income^ Total Expenses EBITDA EBITDA Margins (%) Depreciation Finance Cost PBT Tax Profit After Tax (+) Share of Profit / (Loss) in Associates (-) Minority Interest PAT after Minority Interest PAT Margins (%) EPS Diluted (INR) A Includes other income * PAT after Minority Interest ION EXCHANGE Refreshing the Planet FY13 FY14 FY15 FY16 FY17 8,620 7,978 8,048 8,776 10,298 8,081 7,588 7,539 8,155 9,465 539 390 509 621 833 6.3% 4.9% 6.3% 7.1% 8.1% 123 106 121 126 133 156 136 150 149 163 260 148 238 346 537 113 100 124 177 251 147 48 114 169 286 (1) 0 0 1 6 2 16 17 142 46 98 153 283 1.6% 0.6% 1.2% 1.7% 2.7% 9.80 3.22 6.78 10.61 19.94 37#38Historical Consolidated Balance Sheet (As per IGAAP) ION EXCHANGE Refreshing the Planet FY15 FY16 FY17 PARTICULARS (INR MN) EQUITIES & LIABILITIES Shareholder Funds FY15 FY16 FY17 PARTICULARS (INR MN) ASSETS Non Current Assets (A) Share Capital 141 141 142 (A) Fixed Assets 989 1050 1,453 (B) Reserves& Surplus 1,420 1,560 1,837 (B) Non-current investments 24 24 29 Total-Shareholder Funds 1,561 1,701 1,979 (C) Deferred Tax Assets (Net) 8 8 9 Minority Interest 85 62 63 (D) Long term advance 476 543 453 Non Current Liabilities (E) Other non-current assets 263 263 266 (A) Long Term Borrowings 202 230 - 299 Total Non - Current Assets 1,760 1,888 2,210 (B) Deferred Tax Liabilities (Net) 47 44 41 (C) Other Long Term liabilities 110 128 126 Current Assets (D) Long Term provisions 116 129 118 (A) Current Investments 1 1 1 Total Non - Current Liabilities 475 531 584 (B) Inventories 793 814 1,109 Current Liabilities (C) Trade Receivables 3,582 3,630 4,405 (A) Short term Borrowings 567 567 608 (D) Cash and Bank Balances 262 334 1,669 (B) Trade Payables 3,162 3,314 3,960 (E) Short-term loans and 401 489 646 advances (C) Other Current Liabilities 783 781 2,650 (F) Other Current Assets 3 5 5 (D) Short-term provisions 169 205 - Total Current Liabilities 4,681 4,867 201 Total Current Assets 7,419 5,042 5,273 7,835 GRAND TOTAL - EQUITIES & LIABILITES 6,802 7,161 10,045 GRAND TOTAL - ASSETS 6,802 7,161 10,045 38#39Financials - Consolidated (As per IGAAP) REVENUES* (INR MN) EBITDA (INR MN) 833 CAGR 17% 8,776 10,298 621 CAGR 34% FY16 NET DEBT/EQUITY 0.3 FY17 FY16 FY17 ROE and ROCE ROE -ROCE 21.8 16.8 ION EXCHANGE Refreshing the Planet PAT **(INR MN) 283 CAGR 85% 153 FY16 FY17 WORKING CAPITAL DAYS 47 40 40 14.3 -0.4 9.0 FY16 FY17 FY16 FY17 FY16 FY17 39 * Incudes other income **PAT after Minority Interest#40Market Data (Bloomberg - ION IN, Reuters - IONX.BO) • ION EXCHANGE 1 YEAR SHARE PRICE MOVEMENT (AS ON 31st DECEMBER, 2017) ⚫ION Exchange -Sensex Refreshing the Planet 140% 120% Nov-17 Dec-17 100% 80% 60% Jul-17 Aug-17 Sep-17 Jun-17 40% 20% 0% Feb-17 Mar-17 Apr-17 May-17 SHAREHOLDING PATTERN (AS ON 31st DECEMBER, 2017) Oct-17 Jan-17 PRICE DATA (AS ON 31st DECEMBER, 2017) Face value (INR) 10 Market Price (INR) 599.7 52 Week H/L (INR) 638/286 Others 50.2% Market Cap (INR Mn) 8,795.6 Equity Shares Outstanding (Mn) 14.67 1 Year Avg. trading volume ('000) 12.82 Promoter 44.0% DII 5.5% FII 0.3% 40 40#41Disclaimer e ION EXCHANGE Refreshing the Planet Ion Exchange (India) Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of lon Exchange (India) Limited ("Company" or "IONEX"), which are expressed in good faith and in their opinion reasonable, including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward- looking statements, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from. This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner. Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review. XX VALOREM ADVISORS For further details please contact our Investor Relations Representatives: VALOREM ADVISORS Mr. Anuj Sonpal Tel: +91-22-49039500 Email: [email protected] 41#42• ION EXCHANGE Refreshing the Planet THANK YOU