27 April 2015 - Intelligent Energy Services at Bharti Infratel Ltd. (a Bharti Airtel ... £5,000 revenue per site x 400,000 sites in India. ... Original Business Model Mobile Network

Analyst India Roadshow

27 April 2015

Confidential © Intelligent Energy Limited 2015. All Rights Reserved

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DisclaimerThis presentation was prepared on behalf of Intelligent Energy Holdings plc (the "Company") in April 2015 for information and discussionpurposes only and a copy has now been uploaded on the Company website for the same limited purposes. No reliance may be placed for anypurposes whatsoever on the information contained in this presentation or on its completeness. The Company is not under any obligation toupdate or keep current the information contained in this presentation. No representation or warranty, express or implied, is given by or onbehalf of the Company or its respective subsidiary undertakings, affiliates, respective agents or advisers or any of such persons’ affiliates,directors, officers or employees or any other person as to the fairness, accuracy or completeness of the information, or of the opinions,contained in this presentation and no liability is accepted for any such information or opinions.

NEITHER THIS PRESENTATION NOR ITS INCLUSION ON THE COMPANY WEBSITE CONSTITUTES OR FORMS PART OF ANY OFFER, INVITATION,PROMOTION OR RECOMMENDATION TO PURCHASE OR TO SUBSCRIBE FOR, OR ANY OFFER OR INDUCEMENT OR INVITATION ORCOMMITMENT TO PURCHASE OR SUBSCRIBE FOR (OR ANY SOLICITATION OF ANY OFFER TO PURCHASE OR SUBSCRIBE FOR), ANY SHARES INTHE COMPANY OR ANY SECURITIES IN ANY OTHER ENTITY.

Without limitation to the foregoing (and subject to certain limited exceptions) this presentation is not for use in the United States and may notbe transmitted, published or otherwise distributed in the United States. The Company's securities have not been and will not be registeredunder the US Securities Act of 1933 or under any applicable securities laws of any state or other jurisdiction of the United States.

Certain statements (or information) included in this document constitute, or may constitute, forward-looking statements and / or financialprojections which can be identified by the use of terms such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “estimate”, “intend”,“continue,” “target” or “believe” (or the negatives thereof) or other variations thereon or comparable terminology. Due to various risks anduncertainties, actual events or results or actual performance of the Company may differ materially from those reflected or contemplated insuch forward-looking statements and no reliance should be placed on such forward-looking statements. No statement in this presentation isintended to be nor may be construed as a profit estimate or profit forecast.


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Contents

A. Distributed Power and Generation (DP&G) - Essential Energy profile

B. Why India and why now?

C. Route to market

D. How we make money – the 4 step process

E. Appendix


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A. Distributed Power and Generation -Essential Energy profile


Design once, deploy many times

0W Consum

erElectronics (C

E)100W Distributed Pow

er&

Generation

(DP&

G)

10kW

Automotive

100kW5


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Introducing Essential Energy (E2)• E2 was initially established in 2013 as a wholly owned subsidiary

of Intelligent Energy Holdings plc (LSE: IEH)

• We deliver comprehensive energy management services for thetelecom and other customer markets in India

• Deploying a range of energy technologies both conventional andrenewable – with an estimated 60%-70% of tower sites suitablefor hydrogen fuel cell generation

• Customer focused - systems engineering based approach takingadvantage of our hybrid automotive and combined heat & powersolutions experience

• Delivering services today at over 26,500 telecom tower sites inIndia

• Unique business models based on customer requirements todeliver reliable energy as a service


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E2: Leadership team

Peter BrownManaging Director

Murali ArikaraExecutive Director

Surajit KhanChief Operating

Officer

William MilneCFO & Executive

Director

Managing Director of EssentialEnergy. Prior to that, CEO ofTurbo Power Systems,manufacturing high performancemotors, generators, drives andpower electronics and ExecutiveVice President for Customerbusiness for Rolls Royce Energy.Over 23 years experience infinance, strategy andmanagement.

.

Executive Director of EssentialEnergy. Prior to that , ExecutiveVice President for EmergingMarkets at Intelligent Energy,Founder and CEO of Jadoo PowerSystems. Over 19 yearsexperience with energy, strategy,product development andmarketing

COO of Essential Energy .Prior tothat he was Head - Operations atViom Networks Limited(a TATA &SREI JV), General Manager-Technical Services at BhartiInfratel Ltd. (a Bharti Airtelsubsidiary), Field Operations Head–United Technologies, OtisElevator. Over 17 years experiencein Field Operations, ProjectManagement, Customer Service,Quality & Process Excellence.

CFO of Essential Energy. Prior tothat roles as Finance Director atTHUS Group PLC, Finance DirectorSeagram Distillers PLC, SeniorManager at PWC. Over 25 yearsexperience in corporate finance,telecom and advisory services


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B. Why India and why now?


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India: The energy challenge

• 17% of world population and 2.6% ofglobal GDP

• Urbanization……rapidly accelerating• Commercial buildings a key ENERGY

consumer• Energy efficiency is critical

• Over 405 million people with no access toelectricity – 30% of India’s population

• Renewables share of the installedcapacity increasing

• 27.5 GW June 2013

IndiaPower

Generatingcapacity


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Route to market: IE target markets

Centralised power Diesel generators Fuel cells

Delivered efficiency

Carbon intensity

Distributed scale

Cost of power 10

Global Industrialisedemerging markets India Telcos

Intelligent Energy’s current commercial funnel:

<100kW <50kW <20kW IEH growing a $ billion business

> £2bn a yr market1

Note1: £5,000 revenue per site x 400,000 sites in India


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India: Growth of mobile telephony in India

• Second largest mobile telecom subscriberbase globally (~1 billion subscribers)1,2

• The rollout of 3G and 4G leading to morepower and tower requirements

• Power availability is a significant challenge– 70% of the towers need at least 8 hoursof off-grid power on a daily basis3,4

• Recent spectrum auction indicative ofexpected growth in telecom market afterslowdown as a result of cancelling oflicenses

30%

20%

50%

Rural (0 - 4 hours)

Urban (20-22 hours)

Suburban (6 - 14 hours)

3.1 5.05 11.3 28.4 48.3 77.6141.74

227.01

340.27

518.52

745.64

893.96864.83

873.9970

(Sub

scrib

ers

inm

illio

ns)1

,2

Tower distribution 3,4

(legend indicates gridavailability)

Sources:1. India Telecom Market – Updated July 2014, Telecom Circle2. Telecom Regulatory Authority of India reports3. Enabling Clean Talking, Greenpeace4. Green Telecom Towers – an attractive option for sustainable tomorrow, Tata Strategic Management Group


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India: The energy challenge effects

• Grid outages severely affecting the telecom sector particularly in rural areas

• Energy expenses are about 70% of total OPEX for Mobile Network Operators MNOswhen compared to 30% in urban 5

• Infrastructure Providers (IPs) operating costs are growing >30% of their total costsdue to lack of efficient power management

• Over 3 billion litres of diesel 6 consumed annually by approximately 425,000 towers

• Batteries along with Diesel generators are widely deployed to meet theuninterrupted power demands

• Affordability of diesel based power is in question, impairing economic growth

Sources:5. Adoption of Green Technology and Safety of Wireless Network – Telecom Regulatory Authority of India presentation6. Enabling Clean Talking, Greenpeace


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India: Competitive landscape

A “perfect storm” of conditions exists for Essential Energy to makecompetitive inroads into the Indian telecommunications market

• Telecom companies are highly leveraged due to expensive spectrum auctions

• Infrastructure providers cashflow is being squeezed by an increase in operating cost, whilst aneed to expand coverage and invest in 3G and 4G technologies place further burdens oncapital position

• Deregulation of diesel prices has led to increased operational costs


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Potential Competition for E2

EfficiencyImprovement

Clean EnergyGeneration

Power & FuelManagement

Powerol

Viom

Hua

wei

PaceDelta

OMC

Ardom

AST

CambridgeClean Energy

• The three key capabilities required forenergy management are listed in thediagram along with a list of companiesbased on their capabilities

• E2 while tracking the market hasfocussed on nine (9) companies aspotential competitors

• The companies can be classified into:o OEMs – Powerol, Huawei, Pace, Deltao O&M Service Providers - Ardomo Technology integrators - AST,

Cambridge Clean Energy, OMCo Infras Co Spin offs – Viom

• Of the 9 candidates no one provides allthree aspects required forcomprehensive energy management

• OMC and any spin off by Viom of theirenergy SBU can become competitors ifthey acquire the missing factor intotheir portfolio


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C. Route to Market


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Route to market: Our approach• Identify a market segment that is in urgent

need for reliable energy

• Acquire anchor customers to provide energymanagement services across the country

• Develop the support and logistics eco-system to support customer sites

• Leverage existing assets, support andlogistics eco-system to expand supply ofenergy to adjacent customers and developlocal energy micro-grids

• Develop services that benefit the localpopulation that can be customers of E2energy services – Clean water delivery,rural banking services, primary health carecentres…

• Over 425,000 telecom towers spread across 22circlesa,1,2 all over India

• Over 70% of the towers have power outages ofmore than 8 hours/day 3,4

• Over 3 billion litres consumed on an annualbasis 6

• Energy today forming over 30% (urban) to70% (rural) of the operating cost of the towerinfrastructure providers5

• Government putting pressure to move to cleanenergy generation technologies

Initial Target Market – Telecom Infrastructure

Note: a. Definition: Circles are telecom regions covering 60 million people on average


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Route to market – Telecom value chain

Original Business ModelMobile Network

OperatorMobile Network

Operator

TelecomInfrastructure

Provider


Provider

• Delivers voice and dataservices to consumers

• MNO rents space from TelcoInfra provider and refundspower and fuel costs

• No incentive for energyefficiency or to manageenergy costs

• Responsible for:o > 99.95% availability of

energy to power networko O&M of passive assets

Mobile NetworkOperator

Mobile NetworkOperator


Provider


Provider

• Delivers voice and dataservices to consumers

• MNO rents space from TelcoInfra provider and pays powerand fuel cost on a cost perhour (CPH) basis

• Responsible foro > 99.95% availability of

energy to power networko fixed cost per hour for

energy based on source –grid, battery or dieselgenerator

o O&M of passive assets

New Business Model

ESCO(EssentialEnergy)

ESCO(EssentialEnergy)

• Manages power and energy forInfra provider to deliver incompliance with CPH

• O&M of energy managementassets

Diesel cost in

crease>

INR

50

/litre initiates

chan

ge in

mod

elD

iesel cost increase

> IN

R 5

0/litre in

itiatesch

ang

e inm

odel

E2 Opportunity: Current cost per hour tables are based on inefficient energymanagement


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Route to market: E2 addressing energy needs of telecom IPs

• Energy Service Provisioning by offering long term energy supply contracts

• Responsibility of SLA – 24X7 availability and >99.97% network uptime

• Options range from ‘Asset heavy’ to ‘Asset light’

• Responsible for fuel consumption and logistics (No pass-through to MNO)

• Responsible for Operation & Maintenance

• Clean/Renewable technology to match environmental conditions for solutiondeployment

• Hydrogen deployment over the medium to long term is expected to be greaterthan 60%-70%


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Route to market: sales opportunity pipeline

Leading Telecom Tower Infrastructure Companies (Africa)IHS Africa 21,787Helios Towers Africa 7950Eaton Towers 6000American Tower 4700SWAP 1460Helios Towers Nigeria 1300

Leading Telecom Tower Infrastructure Companies (India)Indus Towers 1,15,040Bharti Infratel 36381BSNL 61622Reliance Infratel 43379Viom Networks 42000GTL Infrastructure 27839ATC India 12500Tower Vision 8400Ascend Telecom Infrastructure 4193

Total towers (India) 425,000 7

• Total towers (Africa) 240,870 with only 18%owned by Tower IP Cos in 2014 8

• Expected to grow to 325,160 with 60%owned by Tower IP Cos by 2020 8

Closing of GTL will allow for theestablishment of a energy managementcompany of scale allowing growth intoother geographies and adjacent marketsin geography

Adjacent Telecom

Markets

Adjacent Telecom

Markets

Adjacent Markets in GeographyAdjacent Markets in Geography

Over 176,410 bankATMs in India of which83,291 are not co-located with banks 9

Rural communities in11 telecom circles havea demand of over 2.5trillion litres/year 10

Sources:7. Telefocus: Telecom Infrastructure Tele.net – February 2015 Issue8. Tower Power Africa – September 2014, GSMA Green Power for Mobile9. ATM statistics: Reserve Bank of India Website10. Drinking water demand: PWC report commissioned by Intelligent Energy on market for water - 2014


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D. How we make money – the 4 stepprocess


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How we make money – Overview

Macro viewMacro view

Micro view (per site)Micro view (per site)

ACQUIRE:Power assets orlong-term power

contracts

OPTIMISE:Efficient diesel

NEWTECHNOLOGY:

Fuel cells

SECONDCUSTOMER

1 2 3 4

Steps 3 and 4 areinterchangeable

Asset Heavy ModelE2 purchases existing energy assets of infra companiesResponsible for O&M and asset replacementPaid a monthly fee that includes – asset charges, power &fuel costs and O&M costs

Asset Heavy ModelE2 purchases existing energy assets of infra companiesResponsible for O&M and asset replacementPaid a monthly fee that includes – asset charges, power &fuel costs and O&M costs

Asset Light ModelExisting energy assets owned by infra companyAsset replacement responsibility of infra companyE2 responsible for O&M and paid a monthly fee thatincludes – power & fuel costs and O&M costs

Asset Light ModelExisting energy assets owned by infra companyAsset replacement responsibility of infra companyE2 responsible for O&M and paid a monthly fee thatincludes – power & fuel costs and O&M costs


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How we make money – Macro view

EBITDA 50-55%Capex - 20%

Cash flow c30%-35%

Asset Heavy ModelAsset Heavy Model Asset Light ModelAsset Light Model

Macro View

Contracts can varybetween the attributes

of asset heavy andasset light models

Contracts can varybetween the attributes

of asset heavy andasset light models

Margins as a % of Revenue – Target Mature State AcrossPortfolio of Sites

Per Site:Revenue (pa) up to £6kAcquisition cost £2k+Average capex (pa) £0.9k-1.3k

Per Site:Revenue (pa) up to £6kAcquisition cost £2k+Average capex (pa) £0.9k-1.3k

EBITDA 30-35%Capex - 0%

Cash flow c30%-35%

Per Site:Revenue(pa) £4k to £6kAcquisition cost £0Average capex (pa) £0

Per Site:Revenue(pa) £4k to £6kAcquisition cost £0Average capex (pa) £0


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Step 1 Acquire: Per site economics

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• Illustrative acrossa portfolio of sites

• £1 = 95 rupees

Rev

enue

(£)


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Steps 1 to 4 Per Site Economics, Asset Heavy Model

• Margin as a % ofrevenue

• Illustrative, not toscale

• c30% sitesexpected to havea 2nd customer

• c70% of sitesexpected to host

FC deployment• 5-10% range in

margin per step

EBIT

DA

mar

gin

Step 1 Step 2 Step 3 Step 4


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Steps 1 to 4 Per Site Economics, Asset Light Model

• Margin as a % ofrevenue

• Illustrative, not toscale

• c30% sites expectedto have a 2ndcustomer

• c70% of sitesexpected to host FCdeployment

• At step 3 revenuesremain the same butthe margin rises

• 5-10% range inmargin per step

EBIT

DA

mar

gin

Step 1 Step 2 Step 3 Step 4


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Micro view: Step 2. Optimise

• Overall availability improved from 99.72% to 99.99%• Site outage minutes reduced by 96%

0

25

50

75

100

July August September October

Tim

e of

pow

er o

uta

ges

, In

dex

ed

Month1 2 3 Month 480

85

90

95

100

July August September OctoberD

iese

l usa

ge,

In

dex

edMonth 1 2 3 Month 4


Micro view: Step 3. New technology

• 54 Systems will be operating inIndia on live sites by the end ofAugust 2015

• Plans in place for volume productionin Asia with final assembly in India

• Volume roll out dependant on largecommercial deals with telecomtower infrastructure companies

• Relationships in place fordevelopment of hydrogen fuellinginfrastructure

• First of its kind deployment in theIndian telecom tower market

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Micro view: Step 4.Second customer

• Second Customer utilises same assets (owned under asset heavy – access charge paid underasset light)

• Power contracts provide for cost per hour, however, cost is marginal as second customermakes use of surplus power generated

• EBITDA margins for second customer power supply to be in the range of 50%-75%

• Penetration of second customers between 20% and 30% of site portfolio over the mediumterm

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Summary

• Essential Energy provides comprehensive energy management services for the telecommarket in India

• Delivering services today at over 26,500 sites in India

• Projected EBITDA margins between 15% and 60%, depending on model and stage ofbusiness plan

• A “perfect storm” of conditions exists for Essential Energy to make competitive inroads intothe Indian telecommunications market

• Our business model is not reliant on oil and gas prices


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www.intelligent-energy.com

Thank You


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E. APPENDIX


India: The energy challenge

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Documents

27 April 2015 - Intelligent Energy Services at Bharti Infratel Ltd. (a Bharti Airtel ... £5,000 revenue per site x 400,000 sites in India. ... Original Business Model Mobile Network