Indian Energy Exchange Ltd. · NSE:IEX
Indian Energy Exchange — Q4 FY2021 Earnings Presentation
43 slides from Indian Energy Exchange's earnings presentation, May 14, 2021
Slide 1: Exchange filing cover letter for Investor Presentation and Press Release
Dated: May 14, 2021 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 Dalal Street G Block, Bandra Kurla Complex Mumbai- 400001 Bandra (E), Mumbai-400 051 Scr
Slide 2: Investor Presentation – Q4 FY'21 and FY'21
Investor Presentation – Q4 FY’21 and FY’21 Leading India’s Energy Transformation 1
Slide 3: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 2
Slide 4: Energy Sector is rapidly transforming
Energy Sector is rapidly transforming Deployment of low- Small-scale Decarbonisation Decentralisation carbon generation technologies - wind across T&D and solar network Intelligent CS Empowered Digitisation Democratisation and Apps to consumers - optimise plants economic power and grid shift 13-05-2
Slide 5: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 4
Slide 6: Electricity Value Chain: Key Highlights
Electricity Value Chain: Key Highlights Generation Transmission Distribution Consumption 382 GW installed World’s largest network Distribution reforms Power surplus nation capacity: underway: • 94 GW renewables Inter-regional • Tariff reforms Peak demand at • 47% private transmission capacity: • Con
Slide 7: Installed capacity has grown at a faster pace compared to demand
Installed capacity has grown at a faster pace compared to demand Thermal Nuclear Hydro RES 356 371 382 10 Yr CAGR 326 344 Capacity 299 94 224 243 268 39 57 69 78 87 growth of 200 CAPACITY (GW) 174 28 29 32 8% and 25 18 235 generation 211 218 223 226 231 113 131 152 168 189 increase of 5% in the 8% F
Slide 8: Total Installed Capacity = 382 GW
Total Installed Capacity = 382 GW Central State Renewable 98 GW 104 GW 94 GW Hydro 46 GW Thermal 234 GW Private 181 GW Nuclear 7 GW 13-05-2021 7
Slide 9: Power Sector construct
Power Sector construct Long-term (89%) Short-term (11%) 1,272 BU (incl REN) Bilateral: Exchanges: Up to 25 years DSM Less than 1 year Real Time (1hour) – 11 days 89% 3% 6% 2% Exchanges (Only up to 11 Bilateral & Deviation days) Banking Settlement/ Long-term PPA ➢Day Ahead Transactions Unscheduled Ma
Slide 10: Fast growing Exchange Markets
Fast growing Exchange Markets Exchanges (BU) Bilateral (BU) DSM (BU) 34% YoY 67 64 58 25 54 56 56 24 23 1.0% 48 -33% YoY 19 YoY 35 FY18 FY19 FY'20 YTD Jan'21 FY18 FY19 FY'20 YTD Jan'21 FY18 FY19 FY'20 YTD Jan'21 Driven by competition and flexible procurement, the Exchange markets constitute 50% of p
Slide 11: Deepening India's Power Markets
Deepening India’s Power Markets 91% 49% 47% 39% 34% 23% 15% 6% Nordpool Germany UK Netherlands Switzerland Belgium France India Markets are in the range of 30-80% in developed economies. At 6%, India has an opportunity to deepen the power market. Source: CRISIL Study 11
Slide 12: Increasing share in short term market
Increasing share in short term market Exchange Market and ST Market - % of Total Consumption – India Share of exchanges in short-term market 30.2% 34.4% 37.2% 36.9% 41.2% 54.0% Share of exchanges in total consumption Share of ST market in total consumption 11.2% 10.6% 9.9% 9.9% 9.8% 9.6% 6.1% 4.1% 3
Slide 13: Energy Consumption bound to grow
Energy Consumption bound to grow • Per capita consumption in India is 1/3rd of global average • Per capita consumption expected to double in the next 5-6 years 1268 1284 1272 1205 • Economic activity will accelerate 1135 • Government envisions India as an industrial hub 1091 • Core sector growth wil
Slide 14: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 13
Slide 15: India's premier technology-led energy marketplace
India’s premier technology-led energy marketplace • Nation wide, Automated and transparent trading platform for physical delivery of electricity, renewables & certificates • Commenced operations in 2008; CERC regulated • Publicly listed company (NSE and BSE) • ISO 9001:2015, ISO 27001:2013, ISO 1400
Slide 16: Benefitting Power Sector….and the nation
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 Signals f
Slide 17: Our Values
KO 24X7 Power Transparency Flexibility in Power Procurement © Competitive Price Payment Security Cost Saving 16
Slide 18: Robust Eco-system
Robust Eco-system 4400+ 55+ DISTRIBUTION 500+ GENERATORS INDUSTRIES UTILITIES 99% MARKET 99% MARKET 32% CAGR SHARE IN DAM SHARE IN RTM SINCE 2008 The Green Market and the Real-time Markets are poised to build India as a sustainable energy economy. 13-05-2021 17
Slide 19: Most Competitive Prices - Over the years
Most Competitive Prices - Over the years IEX Volume Trader Volume IEX Wt. Avg Price Bilateral Price 60 8 50 49 59 7 50 47 45 6 40 40 4.23 4.32 3.91 39 4.42 5 4.34 36 36 294.2735 4.30 28 35 34 35 3.54 4.13 34 3.61 3.67 30 3.58 3.73 4.03 4 3.47 3.46 3.41 30 3.15 28 22 2.89 2.71 2.49 2.64 3 20 14 20 12
Slide 20: Market Segments
Market Segments Day-Ahead Market • Delivery for next day since Jun 2008 • Price discovery: Closed, Double-sided Auction Term-Ahead Contracts • For delivery up to 11 days since Sep 2009 • Intra-day, Day-ahead Contingency, Daily Contracts, Weekly Contracts Continuous Real-Time Market • Delivery within
Slide 21: Growing @32% CAGR since inception
Growing @32% CAGR since inception 73,941 52,168 53,881 46,215 40,528 34,287 28,923 28,347 2,616 FY'09 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 Source: IEX Data (DAM+TAM+RTM+GTAM) 13-05-2021 Data based on delivery volumes 20
Slide 22: Product-wise Key Statistics
Product-wise Key Statistics DAM + TAM RTM GTAM REC ESCerts Market Share 92% 99.9% 99.9% 76% 100% (FY 20-21) State 29 States 28 States 19 States 29 States 29 States Utilities 5 UTs 4 UTs 3 UTs 5 UTs 5 UTs Generators 500+ 206 12 408 183 Industrial 4400+ 439 14 2989 97 Consumers Average Daily 174,584 M
Slide 23: New Markets Segments FY21
New Markets Segments FY21 (Apr-Mar) REAL TIME MARKET GTAM MARKET ✓Buy – 12.22 ✓Buy – 1.930 ✓Sell – 24.07 ✓Sell – 1.684 VOLUME (BU) ✓Cleared – 9.47 VOLUME (MU) ✓Cleared -0.785 ✓ Average – 2.78 ✓ Average -3.87 ✓ Min – 0.02 ✓ Min – 2.82 ✓ Max – 19.99 ✓ Max – 9.00 PRICE (Rs/Unit) PRICE (Rs/Unit) ✓ Top 5
Slide 24: Technology at the Core
Technology at the Core CUSTOMER CENTRIC EFFICIENT STATE OF THE ART Image To be Added • Digital Experience • Security and seamless uptime • National Open Access Registry • Secure Web and Mobile • Comprehensive Product Portfolio • Integration of NOAR access • Longer Duration Contract • Economic Surplu
Slide 25: Driven by customer centricity
Driven by customer centricity 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 lau
Slide 26: Robust financial performance
Robust financial performance Consolidated Financials Rs Cr 96.1 100.3 79.6 80.5 83.9 62.6 58.1 61.5 Breakup of standalone Q4 FY FY Q4 FY FY 45.6 revenues (%) 2020 2020 2021 2021 Transaction Fees 81% 80% 88% 84% Q4FY20 Q3FY21 Q4FY21 356.2 Admission and Annual Fees 7% 6% 5% 5% 297.4 289.0 242.4 206.1
Slide 27: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 26
Slide 28: NO LOCKDOWN AT IEX!
NO LOCKDOWN AT IEX! • Supporting distribution companies in supplying 24*7 uninterrupted power • Enabling replacement of costly PPAs through buying on exchange • Launched RTM and GTAM with high availability during the lockdown • Extensive customer engagements and communication drives • Providing roun
Slide 29: Providing significant savings to DISCOMs
Providing significant savings to DISCOMs “Maharashtra discoms turn to energy exchanges, shun costly PPAs” – PTI – April 12, 2020 "We are increasingly buying power from exchanges, which is cheaper than PPA tariffs," an official from state utility Mahavitaran “Power Exchanges Account for 51% of short
Slide 30: In this presentation
In this presentation: Sector in transformation Electricity value chain IEX : Who we are COVID - 19 Way forward 29
Slide 31: Transitioning towards a Futuristic Tech Architecture
Transitioning towards a Futuristic Tech Architecture Automated • Digital Inside Manual Workflow • Open API Integration Digital Mesh • Robotic Process Automation Modular • Service Oriented Architecture Monolithic • Automated Bank Integration Digital Twins Desktop-based All Platforms • Web-based Porta
Slide 32: Customer Experience Transformation
Customer Experience Transformation Platform access beyond 70+ Members • Anytime, Anywhere, Secure Web and Mobile access to 70+ Members, 6000+ Clients, Senior Leaders across Members and Clients, key Stakeholders in the Power Sector Personalized and Deep Data Insights for effective Decision making (Re
Slide 33: Immense growth potential
Immense growth potential • 100% household electrification under SAUBHAGAYA scheme Demand for Electricity • Rapid urbanization - 17 of 20 world’s fastest growing cities in India • Per capita electricity consumption is expected to increase by ~ 40% in the next 4 years • Total capacity likely to phase
Slide 34: Immense growth potential
Immense growth potential • Budget 2021: Proposed Rs 3 lakh crore distribution reform package to promote competition, consumer choice and increase penetration of automation and technology • Sharing of ISTS Charges & Losses Regulations 2020: ✓ Will increase DISCOM participation on exchange Favorable P
Slide 35: Immense growth potential
Immense growth potential • Efficient price discovery has been the biggest growth driver for exchanges in the past • Discoms can source cheaper power through Exchange to meet shortages Efficient Price discovery • Industries can source competitive power to reduce their input costs • Prices at Exchange
Slide 36: Indian Gas Exchange (IGX)
Indian Gas Exchange (IGX) OUR VISION To lead India’s transition towards a gas-based economy by architecting next generation solutions for natural gas trading and access. 1st natural gas Automated platform 01 trading exchange 02 with cutting edge technology Efficient & transparent 03 market driven pr
Slide 37: IGX Opportunity
IGX Opportunity • Under Paris Climate Agreement, govt commitment to reduce carbon emissions will promote use of Natural Gas • Government’s vision of increasing share of Natural Gas in total energy basket from 6% to 15% by 2030 will increase gas consumption in the economy from current 160 MMSCMD to 6
Slide 38: 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 39: Thank You
=) INDIAN ENERGY EXCHANGE Thank You ® Oo Mobile App (IEXApp) [email protected] Available on Android and |OS
Slide 40: Indian Energy Exchange announces audited financial results for Q4 and FY21
INDIAN ENERGY EXCHANGE ANNOUNCES AUDITED FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED MARCH 31, 2021 ● IEX delivers unprecedented performance in fiscal year 2021 with 37.3% YoY growth in the electricity volumes. ● FY’21 PAT grows 17.3% YoY with PAT margin at 57.9% ● 62.1% YoY growth in el
Slide 41: Press release: economic and power sector context
was led by improvement in economic activities due to the relaxation of lockdown restrictions across the country. Manufacturing PMI rebounded to 58.9 – the highest over the last eight years in October 2021, from -57.3 in April 2020. As of March 2021, the installed power generation capacity at 382 GW
Slide 42: Press release: revenue and volume growth
revenue. For the fiscal year 2021, this growth was 20.3% YoY with revenue at Rs 357.4 Cr. for the year. Q4FY’21 saw the highest ever quarterly electricity volume at 22.4 BU and also highest ever growth of 62.1% on YoY basis. Fiscal 2021 saw the highest ever yearly volume of 73.9 BU traded at the Exc
Slide 43: Investor relations contacts
Ms. Shruti Bhatia Mr Vineet Harlalka Head–Corporate Communication & CSR CFO & Company Secretary Telephone: +91-120 - 4648100 Telephone: +91-120 - 4648100 Email: [email protected] Email: [email protected] Page 4 of 4
Indian Energy Exchange — Q4 FY2021 Earnings Presentation on 6ix