EARNINGS PRESENTATION Q4 / FY16

1

EXECUTIVE SUMMARY • Ion Exchange (India) Ltd (Ion 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.

OVERVIEW

•Engineering (52%) – Provides comprehensive and integrated services and solutions in water & waste water treatment including Sea Water desalination, Recycle and Zero liquid discharge plants to diverse industries.

•Chemicals (37%) - Provides a comprehensive range of resins, speciality chemicals and customized chemical treatment programmes for water , non-water and specialty applications.

•Consumer Products (11%) – Caters to individuals, hotels, spas, educational institutions, hospitals, laboratories, railway and defence establishments providing safe drinking water and a clean environment.

BUSINESS & REVENUE (%) MIX

• 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

MARQUEE CLIENTS

•Total Income – INR 8,760 Mn

•EBITDA – INR 622 Mn

•PAT – INR 153Mn

CONSOLIDATED FINANCIALS (FY16)

2

• 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 celebrating its 51st 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.

Domestic 77%

Export 23%

COMPANY OVERVIEW REVENUE BREAK UP FY16

3

GEOGRAPHICAL BREAKUP FY15

Engineering 56%

Chemicals 34%

Consumer 10%

4

Q4-FY16 performance:

• Total Income : INR 2,415 Mn; Growth of 17.7% Q-o-Q and 1.6% Y-o-Y

• EBITDA : INR 301 Mn; Growth of 88.1% Q-o-Q and 24.4% Y-o-Y

• EBITDA Margin : 12.5%; Growth of 470 Bps Q-o-Q and 230 Bps Y-o-Y

• Net Profit : INR 166 Mn; Growth of 124.3% Q-o-Q and 18.6% Y-o-Y

• PAT Margin : 6.9%; Growth of 330 Bps Q-o-Q and 100 Bps Y-o-Y

• Diluted EPS : 11.19 INR

FY16 performance:

• Total Income : INR 8,123 Mn; Growth of 10% Y-o-Y

• EBITDA : INR 720 Mn; Growth of 23% Y-o-Y

• EBITDA Margin : 8.9%; Growth of 100 Bps Y-o-Y

• Net Profit : INR 345 Mn; Growth of 32.1% Y-o-Y

• PAT Margin : 4.2%; Growth of 70 Bps Y-o-Y

• Diluted EPS : 23.2 INR

Q4/FY16 STANDALONE FINANCIAL HIGHLIGHTS

5

FY16 performance:

• Total Income : INR 8,760 Mn; Growth of 9% Y-o-Y

• EBITDA : INR 622 Mn; Growth of 22.2% Y-o-Y

• EBITDA Margin : 7.1%; Growth of 80 Bps Y-o-Y

• Net Profit : INR 153 Mn; Growth of 56.1% Y-o-Y

• PAT Margin : 1.7%; Growth of 50 Bps Y-o-Y

• Diluted EPS : 10.61 INR

FY16 CONSOLIDATED FINANCIAL HIGHLIGHTS

Q4 FY16 – STANDALONE INCOME STATEMENT

6

INCOME STATEMENT (INR MN) Q4-FY16 Q3-FY16 Q-o-Q Q4-FY15 YoY

Total Income* 2,415 2,051 17.7% 2,377 1.6%

Total Expenses 2,114 1,891 11.8% 2,136 (1.0)%

EBITDA 301 160 88.1% 242 24.4%

EBITDA Margin 12.5% 7.8% 470bps 10.2% 230bps

Depreciation 25 26 (3.8)% 11 127.3%

Finance Cost 30 27 11.1% 26 15.4%

PBT 246 107 129.9% 205 20.0%

Tax 80 33 142.4% 65 23.1%

Profit After Tax 166 74 124.3% 140 18.6%

PAT Margin 6.9% 3.6% 330bps 5.9% 100bps

EPS (Diluted) 11.19 4.95 126.1% 9.46 18.3%

*Total income includes other income

7

SEGMENTAL BREAKUP- QUARTERLY STANDALONE ENGINEERING CHEMICALS CONSUMER PRODUCTS

REVENUE

EBIT

88

76

70

75

80

85

90

Q4FY15 Q4FY16

795

828

770

780

790

800

810

820

830

840

Q4FY15 Q4FY16

143

190

0

50

100

150

200

Q4FY15 Q4FY16

249

264

240

245

250

255

260

265

270

Q4FY15 Q4FY16

-3

-4 -5

-4

-3

-2

-1

0Q4FY15 Q4FY16

EBIT

1,428

1,424

1,420

1,430

Q4FY15 Q4FY16

FY16 – STANDALONE INCOME STATEMENT

8

INCOME STATEMENT (INR MN) FY16 FY15 YoY

Total Income* 8,123 7,400 10%

Total Expenses 7,403 6,813 9%

EBITDA 720 587 23%

EBITDA Margin 8.9% 7.9% 100bps

Depreciation 100 98 2%

Finance Cost 106 109 (3)%

PBT 514 380 35%

Tax 169 119 42%

Profit After Tax 345 261 32%

PAT Margin 4.2% 3.5% 70bps

EPS (Diluted) 23.2 17.61 32%

*Total income includes other income

9

SEGMENTAL BREAKUP- ANNUAL STANDALONE ENGINEERING CHEMICALS CONSUMER PRODUCTS

REVENUE

EBIT

3,979

4,488

3,600

3,800

4,000

4,200

4,400

4,600

FY15 FY16

151

178

135140145150155160165170175180185

FY15 FY16

2,863

3,049

2,750

2,800

2,850

2,900

2,950

3,000

3,050

3,100

FY15 FY16

405

505

0

100

200

300

400

500

600

FY15 FY16

826

869

800

810

820

830

840

850

860

870

880

FY15 FY16

-23

-38 -40

-35

-30

-25

-20

-15

-10

-5

0

FY15 FY16

FY16 – CONSOLIDATED INCOME STATEMENT

10

INCOME STATEMENT (INR MN) FY16 FY15 YoY

Total Income* 8,760 8,048 9%

Total Expenses 8,138 7,539 8%

EBITDA 622 509 22%

EBITDA Margin 7.1% 6.3% 80bps

Depreciation 126 121 4%

Finance Cost 150 150 NA

PBT 346 238 45%

Tax 177 124 43%

Profit After Tax, Before Minority Interest 169 114 48%

Add: Profit/(Loss) from Associate 1 0 100%

Less: Minority Interest 17 16 6%

PAT 153 98 56%

PAT Margin 1.7% 1.2% 50bps

EPS (Diluted) 10.61 6.78 56%

*Total income includes other income

11

SEGMENTAL BREAKUP- ANNUAL CONSOLIDATED ENGINEERING CHEMICALS CONSUMER PRODUCTS

REVENUE

EBIT

4,573

5,123

4,200 4,300 4,400 4,500 4,600 4,700 4,800 4,900 5,000 5,100 5,200

FY15 FY16

114

137

0

20

40

60

80

100

120

140

160

FY15 FY16

2,949

3,106

2,850

2,900

2,950

3,000

3,050

3,100

3,150

FY15 FY16

382

490

0

100

200

300

400

500

600

FY15 FY16

832

871

810

820

830

840

850

860

870

880

FY15 FY16

-16

-37 -40

-35

-30

-25

-20

-15

-10

-5

0

FY15 FY16

HISTORICAL STANDALONE INCOME STATEMENT

*Total income includes other income 12

INCOME STATEMENT (INR MN) FY13 FY14 FY15 FY16

Total Income* 7,732 7,201 7,400 8,123

Total Expenses 7,208 6,705 6,813 7,403

EBITDA 524 496 587 720

EBITDA Margin 6.8% 6.9% 7.9% 8.9%

Depreciation 79 84 98 100

Finance Cost 120 98 109 106

PBT 325 314 380 514

Tax 110 109 119 169

Profit After Tax 215 205 261 345

PAT Margin 2.8% 2.8% 3.5% 4.2%

EPS (Diluted) 14.56 14.08 17.61 23.2

HISTORICAL STANDALONE BALANCE SHEET

13

PARTICULARS FY 15 FY16 PARTICULARS FY15 FY16

EQUITIES & LIABILITIES ASSETS

Shareholder Funds Non Current Assets

(A) Share Capital 145 146 (A) Fixed Assets 750 823

(B) Reserves& Surplus 2,058 2,355 (B) Non-current investments 552 552

Total -Shareholder Funds 2,203 2,501 (C) Deferred tax assets (Net) 0 0

Non Current Liabilities (D) Long term loans & advance 597 692

(A) Long Term Borrowings 102 155 (E) Trade receivables 66 57

(B) Deferred Tax Liabilities (Net) 46 43 (F) Other non-current assets 1 1

(C) Other Long Term liabilities 73 84 Total - Non – Current Assets 1,966 2,126

(D) Long Term provisions 108 119 Current Assets

Total - Non – Current Liabilities 329 401 (A) Current Investments 1 0

Current Liabilities (B) Inventories 453 598

(A) Short term Borrowings 357 410 (C) Trade Receivables 3,265 3,353

(B) Trade Payables 2,703 2,893 (D) Cash & Bank Balances 148 192

(C) Other Current Liabilities 565 595 (E) Short-term loans & advances 486 724

(D) Short-term provisions 164 198 (F) Other current assets 2 5

Total – Current Liabilities 3,789 4,096 Total – Current Assets 4,355 4,872

GRAND TOTAL - EQUITIES & LIABILITES 6,321 6,998 GRAND TOTAL – ASSETS 6,321 6,998

HISTORICAL CONSOLIDATED INCOME STATEMENT

14

INCOME STATEMENT (INR MN) FY16 FY15

Total Income* 8,760 8,048

Total Expenses 8,138 7,539

EBITDA 622 509

EBITDA Margin 7.1% 6.3%

Depreciation 126 121

Finance Cost 150 150

PBT 346 238

Tax 177 124

Profit After Tax, Before Minority Interest 169 114

Add: Profit/(Loss) from Associate 1 0

Less: Minority Interest 17 16

PAT 153 98

PAT Margin 1.7% 1.2%

EPS (Diluted) 10.61 6.78

*Total income includes other income

PARTICULARS (INR MN) FY 15 FY 16 PARTICULARS (INR MN) FY15 FY 16

EQUITIES & LIABILITIES ASSETS

Shareholder Funds Non Current Assets

(A) Share Capital 141 141 (A)Fixed Assets 989 1050

(B) Reserves& Surplus 1,420 1,560 (B) Non-current investments 24 24

Total -Shareholder Funds 1,561 1,701 (C) Deferred tax assets (Net) 8 8

Minority Interest 85 62 (D) Long term advance 476 543

Non Current Liabilities (E) Trade receivables 262 263

(A) Long Term Borrowings 202 230 (F) Other non-current assets 1 0

(B) Deferred Tax Liabilities (Net) 47 44 Total - Non – Current Assets 1,760 1,888

(C) Other Long Term liabilities 110 128 Current Assets

(D) Long Term provisions 116 129 (A) Current Investments 1 1

Total - Non – Current Liabilities 475 531 (B) Inventories 793 814

Current Liabilities (C) Trade Receivables 3,582 3,630

(A) Short term Borrowings 567 567 (D) Cash and Bank Balances 262 334

(B) Trade Payables 3,162 3,314 (E) Short-term loans and advances 401 489

(C) Other Current Liabilities 783 781 (F) Other current assets 3 5

(D) Short-term provisions 169 205 Total – Current Assets 5,042 5,273

Total – Current Liabilities 4,681 4,867

GRAND TOTAL - EQUITIES & LIABILITES 6,802 7,161 GRAND TOTAL – ASSETS 6,802 7,161

HISTORICAL CONSOLIDATED BALANCE SHEET

15

MARKET DATA (BLOOMBERG – ION IN, REUTERS – IONX.BO)

PRICE DATA (AS ON 31st MARCH, 2016)

Face value (INR) 10

Market Price (INR) 309.2

52 Week H/L (INR) 394.2/192.0

Market Cap (INR Mn) 4,501.1

Equity Shares Outstanding (Mn) 14.56

1 Year Avg. trading volume (‘000) 9.45

SHAREHOLDING PATTERN (AS ON 31st MARCH, 2016)

1 YEAR SHARE PRICE MOVEMENT (UPTO 31ST MARCH, 2016)

16

-40%

-20%

0%

20%

40%

60% Ion Exchange Sensex

44.37%

2%

53.63%

Promoters

DII

Others

Disclaimer Ion Exchange 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 Ion Exchange 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.

For further details please contact our Investor Relations Representatives: VALOREM ADVISORS Mr. Anuj Sonpal Tel: +91-22-3006-7521/22/23/24

Email: ion@valoremadvisors.com 17

THANK YOU

18