Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Investor Presentation (November 2019)
46 slides from Indian Energy Exchange's investor presentation, Nov 29, 2019
Slide 1: Analyst/Investor Presentation filing letter
•1 INDIAN ENERGY EXCHANGE Dated: November 29, 2019 The Manager The Manager BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot no C/1 Dalai Street G Block, Bandra Kurla Complex Mumbai- 400001
Slide 2: IEX Analyst Meet 28.11.2019
IEX Analyst Meet 28.11.2019 1
Slide 3: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 4: Vision and Mission
Vision and Mission VISION Create marketplaces for efficient use of the energy resources MISSION To operate an energy marketplace that is transparent, competitive and reliable, for the benefit of all stakeholders 1
Slide 5: Who we are
Who we are • Automated, open and transparent platform for physical delivery of electricity • Commenced operations in 2008, CAGR 33%, CERC regulated Transparency • India’s leading power exchange, Market Share: 97% • Average daily trade 6000+ MW • Record day volume : 308 MU’s (12,900 MW) Liquidity • O
Slide 6: IEX benefitting Power Sector….and the nation
IEX benefitting Power Sector….and the nation • Provides benchmark prices for all electricity transactions • Transparent Mechanism for Price Discovery • High liquidity on exchange has ensured lowest cost and assured supply Truly benefited Indian Power Sector Generation Transmission Distribution Signa
Slide 7: Robust financials & operational excellence
Robust financials & operational excellence Revenue Operating Cash Profit (In Rs Crore) 145 85 133 121 74 H2 H2 59 H1 H1 149 148 90 95 112 123 58 68 F Y1 7 FY1 8 FY1 9 H1 FY2 0 F Y1 7 F Y1 8 F Y1 9 H1 F Y2 0 EBITDA PAT 118 80 110 H2 68 H2 92 58 H1 H1 125 123 85 88.4 86 101 56 64 F Y1 7 FY1 8 FY1 9 H1
Slide 8: Top 10 shareholders
Top 10 shareholders (In lakh) % of S. No. Name of Shareholder No. of Shares % of Shares Category No of Shares Shares Top 10 Shareholders FOREIGN INVESTMENT 1,323 44.18 1 TVS SHRIRAM GROWTH FUND 1B LLP & Group 431 14.38 - FOREIGN PORTFOLIO – CORP 858 28.66 2 DALMIA POWER LIMITED 300 10.02 - FOREIGN C
Slide 9: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 10: Sector transformation drivers
Sector transformation drivers Deployment of low-carbon Small-scale generation across Decarbonization technologies - wind and solar. T&D network Decentralization Outlook: Outlook: • Renewables to become leading • RE a threat to centralized energy sources energy production • Emerging new tech like hyb
Slide 11: Sector transformation drivers
Sector transformation drivers Paris Climate Agreement – Renewable energy to constitute 40% Hybridization requires technology of total installed capacity base of 1250 GW driven apps and automation Bio-Power 3% Solar Wind 8% Power Solar 10% Bio- 20% Small Power Solar Hydro 2% 36% Thermal 1% 35% Hydro
Slide 12: Electricity consumption set to increase
Electricity consumption set to increase • India a third of global average in per capita consumption • Economic activity will accelerate • Government envisions India as a $5tn economy by FY’25 • Manufacturing contribution up from 15% to 25% • Core sector growth will drive electricity consumption • Ra
Slide 13: IEX : two dimensional strategy
IEX : two dimensional strategy Deepen power market • Maximize DISCOM and Open Access volumes • Longer duration contracts upto 1 year • Cross Border Trade • Real Time Markets • Green Market • Ancillary Markets Tech based new opportunities • Smart Power Procurement • Analytics • New Product Developmen
Slide 14: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 15: Electricity value chain
Electricity value chain CAGR (%) CAPACITY (GW) Share of REN* 305 327 344 356 362 18.8% 22% REN FY'16 FY'17 FY'18 FY'19 FY'20 (1H'20) 6.7% Thermal Nuclear Hydro RES GENERATION (BU) 1303 1372 Generation Transmission Distribution Energy 1168 1236 732 De-licensed is licensed licensed deficit 10.5% decre
Slide 16: Power market structure
Power market structure Long Term (89.4%) Short Term (10.6%) (3Yr CAGR: 8%; 1H’20: -1.7%) Bilateral (BU) 1,372 BU (incl REN)* OTC: Exchanges: Up to 25 years Real Time Intraday to 1 year Intraday – 11 days 67 -2.8% 55 56 -27.1% 72.2% 47 1,226.5 BU 66.5 BU 53.5 BU 25.1 BU 36 34 40 21 17 19 16 21 89.4%
Slide 17: 1H'20 volumes performance
1H’20 volumes performance Product Q1’20 YoY Q2’20 YoY 1 H’20 YoY o Macro-economic factors DAM 11,985 -14% 12,963 -6% 24,947 -10% o IEX correlation to: IIP: 81.3%; Core TAM 1,009 113% 1,632 425% 2,641 236% sector growth: 99.6%; Electricity Electricity 12,994 -10% 14,595 4% 27,589 -3% demand: 86.1% RE
Slide 18: Way Forward
Way Forward New Product Launches DISCOM Open Access • Real time electricity market • Power procurement cost • Addition of clients optimization • Cross Border Trade • Customer outreach • ST Bilateral replacement • Longer Duration Contracts • Marketing initiatives • Engaging Marcom • Green TAM • Polic
Slide 19: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 20: Technology Vision
Technology Vision Creating a customer centric energy marketplace through efficient and state of the art Technology Solutions Image To be Added 19
Slide 21: Customer centric, Efficient and State of the Art
Customer centric, Efficient and State of the Art Image To be Added Customer Centric Efficient State of the Art • Intuitive Design • Efficient Matching Algorithm • Analytics • Secure • Automation • Future ready • Responsive • Low Latency Customer survey Global Standard Algorithm (MILP, NSide) Forecas
Slide 22: Technology in transformation
Technology in transformation Automated Digital • Digital Inside Manual Workflow • Open API integration Mesh • Robotic Process Automation Modular Digital • Service Oriented Architecture Monolithic • Automated Bank Integration Twins Desktop Based All Platforms • Web Based Portal • Trading App • Custom
Slide 23: Smart Product/Bids
Smart Product/Bids Standard Intra-Day Minimum Day Ahead Income Contract Condition TAM Single Bid Load Gradient Daily Bid (Term Ahead Market) MIC (Schedule Weekly Stop Condition) Day Ahead market (DAM) REC Standard Real Time Market (RTM) Parent Child Reverse Auction LDC Block Bid Minimum Fill Quantit
Slide 24: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 25: Customer Experience
Customer Experience Provide the most intuitive, reliable and cost effective power procurement option Ease of Bidding Social Welfare Liquidity Maximization Customer Experience Customer Experience Drivers 24
Slide 26: Customer Interactions with Exchange
Customer Interactions with Exchange Bidding Anytime, Anywhere and Easy Customer interactions Automated Confirmation Financial Scheduling Real time and Transparent and Minimum Customer Effort Settlement Create Customer Delight for each Interaction 25
Slide 27: Customer Experience Strategy
Customer Experience Strategy S – Self-service web/mobile applications • enable customers anytime anywhere easy access I – Intelligent process automation • reduce customer effort; insights to enable effective decision making M – Matching engine optimization • increase social welfare P – Product launc
Slide 28: Customer Experience Transformation
Customer Experience Transformation 1 2 3 4 Intelligent process Digital customer Digital trading automation experience platform Data-driven insight Key Pillars of Transformation 27
Slide 29: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 30: Transforming people
Transforming people VISION MISSION To support IEX in becoming the To be recognized as a trusted and most preferred Energy Market valued business partnering function Place by attracting, recruiting, which is employee focused and developing and retaining a high delivers best in class HR processes pote
Slide 31: IEX Leadership Team
IEX Leadership Team MD & CEO Rajiv Srivastava Head – Corp Head- Risk & Head BD Head F&A- CS Head- MO Head- HR & Admin Head – Technology Communication Head – Strategy Diversification Rohit Bajaj Vineet Harlalka Amit Kumar Samir Prakash Sangh Gautam Rajesh Mediratta Shruti Bhatia Indranil Chatterjee L
Slide 32: IEX a World Class Company
Mission & Strategy Driven Principled & Value Driven Delighted Customers IEX a World Class Company Engaged Employees Inspiring Leadership Outperformance 31 Innovation Focused
Slide 33: IEX Leadership Framework
IEX Leadership Framework •Strategic Thinking •Growth Mindset •Leading Change •Ownership & •Innovation & Accountability Creativity •Drive for Results Growth Mindset Thought Organisational People Self • Build a High •Inspirational Caliber team • Mobilise team • Communication 32
Slide 34: Way forward
Way forward Performance Organisation Culture Talent Management Employee Engagement Management - IEX Leadership Framework - Monthly Meetings - New HRMS - Stronger Employer Brand - Clear & Signed Off Goals - Extended Leadership Meetings - Higher ownership through - Top Search & Recruitment - Individua
Slide 35: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 36: MoP Actions
MoP Actions GENERIC MARKET • SAUBHAGYA – 24x7 Power for All • 5 Year Vision document (draft) • Ultra Mega RE Parks • Electricity Act Amendment • Generator’s Distress Mitigation • National Tariff Policy • Payment security Order (Mandatory LC) • MoP Committee on ‘Deepening of Power Markets • Sanctity
Slide 37: Regulatory Successes
Regulatory Successes • Linking of DSM Prices with IEX prices • National Open Access Registry for Gate Closure time reduction • Rationalization of Transmission Charges (new draft Transmission Charge Regulation) • Resolution of SEBI/CERC jurisdiction issue • CBET Guidelines (new guidelines included tr
Slide 38: Regulatory status on new products
Regulatory status on new products 1. Long Duration Contracts/Electricity Derivatives : Jurisdiction Issue resolved b/w SEBI and CERC; Both Regulators filed Joint application before SC to withdraw appeals. 2. Cross Border Trade in DAM & TAM: CEA and POSOCO to issue Procedures; Petition for CBTE-TAM a
Slide 39: CSR Objective: Sustainability & socio-economic empowerment
CSR Objective: Sustainability & socio-economic empowerment Education Akshaya Patra Foundation – Mid Day Meal Program, Mathura, UP Health Care HelpAge India – Mobile Health Unit, Satna, Madhya Pradesh Community Dev / Sustainability Bharatiya Jain Sangathan – Sujalam Suphalam Project – Drought Free MH
Slide 40: CSR initiatives
Mobile Health Services delivered to 32 villages in Satna district of Madhya Pradesh Smile Twin e-Learning Programme with Smile Foundation in Delhi-NCR 10 KW Solar PV Systems at four Skilling of Solar Technicians Isha Schools in Tamil Nadu School bus to Isha Vidhya Rural Mid Day Meals to 5,000 School
Slide 41: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 42: Gas Exchange
Gas Exchange • GoI policy targets to increase share of natural gas in India’s energy basket from 6.5% to 15% in 5 years. GoI vision of gas • This would lead to Indian Gas market growing 2.5X (166 to 380 MMSCMD) by 2030. based economy • A robust gas trading exchange enabling seamless transactions can
Slide 43: In this presentation
IEX : Who we are Sector transformation, our strategy Electricity value chain, New product launches In this Technology - our differentiator presentation Customer experience IEX a world class company Regulatory enablers and IEX as a corporate citizen New initiative Way forward & Summary
Slide 44: Way forward
Way forward 1. Expand coverage and market • Launch new products • Advocacy to increase short term market 2. Best in class, futuristic Technology Infrastructure • Enterprise IT, trading platform • Technology & analytics solutions for customers 3. Strengthen the organisation • Capacity building, hi-pe
Slide 45: In Summary
In Summary • Very interesting phase in our journey • energy space is transforming at a fast pace • demand well positioned to grow • IEX has developed 360 plans to transform the energy basket of India • All execution mode now!! 44
Slide 46: Thank You!
Thank You!
Indian Energy Exchange — Investor Presentation (November 2019) on 6ix