#1Investor Presentation - Q2FY24 & H1FY24 BLUE STAR LIMITED October 31, 2023 BLUE STAR#2India based air conditioning, commercial refrigeration and MEP contracting company BLUE STAR Commenced operations in 1943, with c. 80 years of operations in India Air conditioning, Refrigeration and MEP solution provider Maintains c. 2 million tonnes of air conditioning and refrigeration equipment¹ Presence in 18+ countries¹ Plans to strengthen presence in USA, Europe and Japan 7 manufacturing facilities in India¹ 4,040 Channel Partners¹ 1,251 Service Associates¹ Note: 1. 2. R&D After-sales Manufacturing Integrated Business model EPC2 Contractor Trading As at March 31, 2023 Engineering, Procurement and Construction Revenue by geography (FY23) End-markets 8% 0 92% ■ India International Residential Light Commercial Commercial Industrial Infrastructure 2#3Vision, Credo and The Blue Star Way BLUE STAR Vision ✰ BLUE STAR "To dream, to strive, to care and, above all to be the best in everything we do." Credo 4 am Blue Star. I take pride in delivering a world-class customer experience." ✓ The Blue Star Way Be a company that is a pleasure to do business with Win out people's hearts and minds Continuously improve shareholder value Give primacy to meritocracy and professional management Place the company's interest above one's own Conduct business with personal integrity and ethics Treat business partners as respected members of our organisation Encourage learning, experimentation and innovation in what we do Ensure high standards of corporate governance Be a good corporate citizen 3#4Diversified B2B & B2C business with exposure to different end-markets BLUE STAR 1 Electro-Mechanical Projects & Commercial Air Conditioning Systems Central 2 Unitary Products Cooling & Purification MEP Projects AC Division After sales services (CAD) Appliances Group (CPAG) Commercial Refrigeration Business Group (CRBG) 3 Professional Electronics and Industrial Systems Med-Tech Solutions TRECHITHL Industrial Solutions (MEP Projects, Central Air Conditioning Business, After Sales Service, Product Exports) Key customers: Commercial Buildings, Retail, Hospitals, Hotels, Education, Industrial Facilities, Data Centres, Metro Rail, Railways, Utilities (Room ACs, Air Coolers, Air Purifiers, Water Purifiers and Commercial Refrigeration Products & Systems) Key customers: Residential, Light Commercial - Shops / Showrooms, Ice- cream, Hospitality, QSRs (Quick Service Restaurants) (Solutions and System Integration in MedTech, Industrial Systems and Data Security) Key customers: Healthcare, Automotive, Aerospace, Steel, BFSI (Banking, Financial Services and Insurance) 4#5Operates 7 plants in India for both domestic & export markets... BLUE STAR Himachal Pradesh 2 Started: 2011 Area: 9,800m² Key products: Room air conditioners Ahmedabad Started: 2012 Area: 9,360m² Key products: Deep freezers Wada 1 Wada 2 Started: 2007 Area: 29,900 m² Started: 2022 Area: 19,300m² Key products: Chillers, Cold Rooms, Storage Water Coolers Key products: Deep Freezers and Storage Water Coolers Set-up after 2022 Set-up prior to 2022 Himachal Pradesh 1 Started: 2005 Area: 16,000m² Key products: Room air conditioners 0000 Manufacturing footprint of 130k square meter Started: 1997 Dadra Area: 12,000m² Key products: Ducted air conditioners and VRF Over 300 models manufactured across 25 product lines Sri City Plant Started: 2023 Area: 31,874m² Sri City plant brings Blue star closer to its customers in South India Key products: Room ACs Intelligent I-Factory (Industry 4.0: Robots, IoT and digitalization) 5#6Operates 7 plants in India for both domestic & export markets... BLUE STAR Specialise in manufacturing a variety of highly engineered and custom-built products. Lean manufacturing and world-class practices. Green Building initiatives - Wada factory certified 'Green factory' - Platinum category from IGBC Sri City factory certified 'Green factory' - Gold category from IGBC Solar plants installed at Dadra and Sri City ☐ Successful implementation of Manufacturing excellence program; embarked upon complete process improvement Automation of processes using robots and Cobots Using Product Life Cycle Management to improve New product Introduction process Improved efficiency of operations through Digital Work Instruction, Augmented reality, Auto guided vehicle, Additive manufacturing, Poka Yoke, e QMS, Automatic storage & retrieval system ☐ Usage of new edge techniques like Advance Planning & Scheduling, Business process Continuity, Virtual factory 3D simulation modelling, 3D plant layout, Predictive analytics □ Product monitoring & traceability though QR Code, logistic monitoring thru specially designed sensors and remote monitoring of products like chillers ப Manufacturing factories are ISO 9001-2015 & ISO 45001:2018 certified by TUV Nord 6 00#7Research & Development BLUE STAR ☐ Consistent investment in R&D to enhance company's product offerings and technical capabilities Focus on energy efficient and sustainable products and technologies Cost innovation through Total Cost Management and Design to Value, initiative for highly affordable air conditioners High level of product development and testing capabilities with several patents for new breakthrough products ☐ Enhanced electronics design capability for variable speed products and smart controllers □ NABL (ISO-17025) accredited laboratories for performance testing of products NABL (ISO-17025) accredited reliability and safety test facilities Launched the Ashok M Advani Innovation Mission to fast-track R&D and innovation programs supported by Innovation Centres in India and under the newly incorporated subsidiary at Japan 7#8ESG principles are embedded in Blue Star's business practices BLUE STAR Well-enumerated Code of Conduct, Whistle Blower Mechanism and a Governance, Risk and Compliance policy Integrated Vigil Mechanism Framework and integrated governance pillars Female employees in the management cadre Governance Product energy- efficiency E-Waste compliance in the Room AC industry Environment BLUE STAR Remains committed at all time to the highest standards of ESG endeavors Focused initiatives for reducing energy and water consumption Focus on Circular Economy initiatives Founding member of the Indian Green Building Council Committed towards having a diverse and inclusive workforce Social Philanthropic initiatives in the areas of education and healthcare Focused initiatives on skill development and sustainable development projects AC&R training partner for multiple institutes and corporates Net zero road map Consumption FY22 FY23 Renewable energy % of total energy 5.7% 6.6% Energy intensity per rupee of turnover (Gigajoule per million *) 1.05 0.95 Water intensity per rupee of turnover (*) 2.55 1.97 Carbon Footprint Mapping Energy Efficiency Renewable Energy (1.0 Reduction Targets Carbon Footprint 2022-40 Logistics: Inbound/ Outbound MW) Employee Commute Disposal of Material Transfer Energy Zero Water Zero Zero Waste to Landfill Product & Plant Initiatives ✓ Factories are built to be 'green' in their design, processes and operations Use of eco-friendly refrigerants, tree- planting drives and reduce the consumption of water and electricity Energy-efficient Room ACs, VRFs, Deep Freezers, and Screw Chillers Wada factory/Thane Innovation Centre are Platinum rated by IGBC¹. Sri City factory applied for Gold rating Social Initiatives c. 50% of factory workers in Sri City plant are woman Children in schools at Palghar benefits from digital education programme Farmer families in Tamil Nadu are supported via Farmer Producer organization Employs Apprentices every year under the Central Govt.'s skill development Programme (NETAP) Note: 1. Indian Green Building Council (IGBC) 8#9Strong governance is the key pillar of Blue Star through out its existence Arvind K Singhal Independent Director * Also a key management personnel (KMP) Chairmen Emeriti Ashok M Advani Suneel M Advani Board of Directors Shailesh Haribhakti Independent Chairman Vir S Advani* Vice Chairman & Managing Director B Thiagarajan* Managing Director BLUE STAR Rajiv R Lulla Non-Executive Director Sunaina Murthy Non-Executive Director Dinesh Vaswani Non-Executive Director Sam Balsara Independent Director Anil Harish Independent Director Anita Ramachandran Independent Director 9#10Industry recognition for achievements BLUE STAR Corporate governance and management (CS) Winner of ICSI Best Governed Company (Listed: Medium) 2019 Great Place To Work Great Place to Work - Certified Organization 2023 Golden Peacock Award for Corporate Governance 2019/2020/2021 Golden Peacock Award for Risk Management 2020/2022/2023 Construction Week AWARDS 2022 MEP Contractor of the Year 2017-2023 WATER DIGEST Best Water R&D and Technological Breakthrough-Domestic 2022 NE.BB ISO NEBB Certified ISO 9001-2015 Certified AHRI Industry expertise CII Multiple CII National Manufacturing Awards EMERSON REFCOLD India Emerson Awards for First Runner- up under Innovative Refrigeration Product 2022 Certified R&D capabilities AHRI IAQA IAQA Membership Certified CX ASIA EXCELLENCE AWARDS 2022 Best Customer Service Initiative of the Year 2022 और SUVERENT NABL C GREEN SERVICE GREEN MUILOF BUILDI AHRI Certified for Air Cooled Chiller Lab AHRI Certified for Water Cooled Chiller Lab NABL ISO 17025 Certified Lab for Testing Wada Plant receiving the IGBC Platinum Certification under 'Green Factory Building' category 10 10#11Business Segments Overview BLUE STAR#12Segment 1: Electro-Mechanical Projects & Commercial Air Conditioning Systems BLUE STAR#13Electro-Mechanical Projects Group BLUE STAR Design, Engineering, Procurement and Construction (EPC) of Mechanical, Electrical & Plumbing (MEP) systems for commercial buildings, industrial facilities & infrastructure projects Our Value Proposition - Superior project delivery through intelligent engineering, modern execution practices, and committed teams Winner of 'MEP Contractor of the year' seven times in a row (2017 to 2023) Increasing order inflows from emerging segments including Metro Railways, Healthcare facilities, Factories, & Data Centres Prestigious Projects Yotta Data Centre - Noida Wistron Infocomm - Bengalure Large central AC & Bangalore Metro Rail Corp. Freudenberg Plant - Punjab Plumbing projects ventilation projects Fire-fighting projects Electrical projects Water projects Railway electrification Jockey Factory - Cuttack Hines Group 13#14Central Air Conditioning Systems Ducted Complete range of energy efficient QCO compliant packaged and ducted split air conditioning systems Next generation inverter based ducted systems and inverter heat pump air conditioning systems Top discharge VRF systems from 7 HP to 112 HP. Designed for Indian conditions - 100% capacity at 43'C and non-stop cooling 56'C Side discharge VRF systems from 4 HP to 16 HP, VRF lite from 4 HP to 6 HP for residential applications Star labelled air cooled and water cooled scroll chillers from 10 TR 78 TR Configured series air cooled and water cooled screw chillers from 70 TR to 600 TR range Configured series oil free magnetically levitated centrifugal chillers from 70 TR to 450 TR Configured series water cooled fixed speed and VFD based centrifugal chillers 450 TR to 1000 TR Intellectual Property across product range is all owned by Blue Star 660 Dealers in 218 towns¹ Customer base spread across all segments with contributions from government, healthcare, industrial, hospitality, educational and builders & developers 1. As at March 31, 2023 Note: HP: Horse Power; TR: Ton of Refrigeration; QCO: The Quality Control Order Chiller VRF VRF V Plus 5th Gen Side System Discharge VRFs VRF Lite BLUE STAR High ambient performance A broad range of VRFS for all applications - 4HP to 112HP Ducted splits QCO compliant products Full range of Inverter- based systems Air-Cooled & Water-Cooled Screw chillers and Inverter Scroll chillers 3 Star Inverter scroll chillers and 5 Star VFD Screw Chillers ☐ Introduce high efficiency oil-free chillers Recently launched centrifugal chillers ☐ High-efficiency inverter- based systems Large Capacity Configured Series Screw chillers Oil-free chillers Centrifugal chillers 14#15After-sales Service Maintaining c. 2 million tonnes of air conditioning and refrigeration equipment Extensively expanded service reach to Tier 2, 3 & 4 towns Select end-markets Air conditioning Currently handling c. 3,900 towns with > 1.2 million service calls a year PSU / Govt. Industrial Focus on same day installation ISO 9001-2015 and ISO 45001 certified ☑ Operates remote monitoring centre at Thane Accreditations from TAB, NEBB, CMVP, IAQ and NADCA Digital infrastructure Customer care app enables customers and channel partners with ease for logging service requests, which gets tracked and follows auto escalation mode, supporting quick resolution Field service technician app enable technicians to update & closure of breakdown & PMS tickets through their mobile, all parameters are digitally recorded and stored Knowledge Management system - Star Vault enables us to centrally store, manage and retrieve business critical documents and SOP's Automotive Dairy 0 0 0 0 0 BLUE STAR Infrastructure Refrigeration ד TTT Hospitals QSRs Retail Pharma Healthcare 15#16International Business BLUE STAR The Company's wholly owned subsidiary, Blue Star International FZCO at Dubai Airport Free Zone (DAFZA) Dubai manages businesses in the Middle East, Africa, ASEAN and SAARC regions Focus on building a larger international footprint by appointing new distributors and going deeper with current distributors into the market. A state-of-the-art showroom at Dubai displaying the latest developments on product lines manufactured by Blue Star ☐ International projects at Qatar managed by a subsidiary of the company 'Blue Star Qatar' International projects in Malaysia managed by the company's Joint Venture at Malaysia under the management of Blue Star Formed new subsidiaries in the United States, Europe and Uganda to pursue opportunities there Prestigious Projects Al Wasl Shopping Centre - Dubai MYOX Vox Cinema - Dubai 2002977 Al Bayt International Stadium Al Salam - Dubai PAVILION BUKIT JALIL Pavillion 2 Bukit Jalil Mall Malaysia Bowyer Wick Office & Warehouse 16#17Segment 2: Unitary Products Segment BLUE STAR#18Cooling and Purification Appliances BLUE STAR Room Air conditioners □□□□ Wide range of premium, affordable premium and affordable split ACs with superior build quality Installed base of over 2.5 million units Products available in c. 8,500 outlets in more than 650 locations Focus on inverter technology, energy efficient products and ACs with purification technology Launched a range of differentiated models including 'Super Energy-Efficient ACs,' 'Heavy-Duty ACs,' 'Smart ACs,' 'ACs with Hot & Cold Technology Serves the residential and light commercial markets Other categories Wide range of Air conditioners Inverter Split AC Window ACs INVERTER INVERTER Fixed Speed Split AC Portable ACS Super energy efficient ACs SMART ACs INVERTER Air Coolers Water Purifiers Heavy Duty ACs Hot & Cold ACs 18#19Commercial Refrigeration Wide range of commercial refrigeration products Wide range of solutions for food preservation - deep freezers, modular cold rooms and super market and commercial kitchen refrigeration Wide range of water cooler products BLUE STAR Deep Freezers Bottle Coolers Cold Rooms Commissioned a new manufacturing facility in 2022 for a new series of hardtop and glass top deep freezers After sales service is a critical requirement and is an integral part of the business Serves customers across Ice-creams, food & beverage, retail, restaurants and QSR chains Visi Coolers/ Freezers BLUE STAR Bottled Water Dispensers Commercial Kitchen Refrigeration Storage Water Coolers Ice Cubers/ Flakers Medical Refrigeration 19#20Segment 3: Professional Electronics & Industrial Systems BLUE STAR#21Professional Electronics & Industrial Systems BLUE STAR ✓ Managed by wholly owned subsidiary, Blue Star Engineering & Electronics (Blue Star E&E) Provider of advanced technology products as well as system integrated solutions Has set up its new medical diagnostic equipment refurbishment facility at Bhiwandi Lines of Business Operates in three broad segments: MedTech Solutions, Data Security Solutions and Industrial Solutions MedTech Solutions Advanced Technology Products Customized Testing Products Data Security Solutions Industrial Solutions Turnkey Engineering Solutions ✓ Non-Destructive Testing Solutions ✓ Material Testing Systems Value-added services ✓ Warehouse Automation ✓ Metrology Solutions 21 24#22Financial Performance - Q2FY24 BLUE STAR#23Financial performance 1582 Revenue (Rs Cr) - Q2FY24 1890 5.4% EBITDA (Rs Cr) 6.5% BLUE STAR 86 123 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Profit before tax (Rs Cr) Earnings per share (EPS)* (Rs) 58 95 2.21 Q2FY23 Q2FY24 Q2FY23 3.65 Q2FY24 *Not Annualized 23#24Segment performance - Q2FY24 961 Segment I Segment Revenue (Rs Cr) Segment II 1077 729 529 Segment III 92 84 BLUE STAR Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Segment Result (Rs Cr) Segment I Segment II Segment III 61 65 32 62 14 12 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 24 24#25Financial Performance - H1FY24 BLUE STAR#26Financial performance 3559 Revenue (Rs Cr) - H1FY24 4116 5.9% EBITDA (Rs Cr) 6.5% BLUE STAR 209 268 H1FY23 H1FY24 H1FY23 H1FY24 Profit before tax (Rs Cr) Earnings per share (EPS)* (Rs) 158 209 6.07 H1FY23 H1FY24 H1FY23 7.98 H1FY24 *Not Annualized 26#27Balance Sheet Indicators - H1FY24 Net Borrowing (Rs Cr) 393 H1FY23 Net Debt/Equity (times) 0.37 * BLUE STAR -286 H1FY24 H1FY23 H1FY24 Capital Turns (times) 6.3 4.9 Return on Capital Employed (%) 34% H1FY23 H1FY24 H1FY23 29% H1FY24 *Net Positive Cash Position 27#28Segment 1: EMP and Commercial Air-Conditioning Systems BLUE STAR Segment Revenue (Rs Cr) 1758 Segment Result (Rs cr) 132 2026 106 H1FY23 H1FY24 H1FY23 H1FY24 Capital Employed (Rs cr) Return on Capital Employed (%) 413 597 62% 60% H1FY23 H1FY24 H1FY23 H1FY24 28#29Segment 1: EMP and Commercial Air-Conditioning Systems BLUE STAR Orders Booked (Rs Cr) 2989 2564 Carried Forward Orders (Rs cr) 3930 5742 H1FY23 H1FY24 H1FY23 H1FY24 29 29#30Segment 2 Unitary Products Segment Revenue (Rs Cr) 1928 1656 Segment Result (Rs cr) 124 151 BLUE STAR H1FY23 H1FY24 H1FY23 H1FY24 Capital Employed (Rs cr) Return on Capital Employed (%) 1061 721 39% 35% H1FY23 H1FY24 H1FY23 H1FY24 30#31Segment 3 Professional Electronics & Industrial Systems BLUE STAR Segment Revenue (Rs Cr) 145 162 Segment Result (Rs cr) 20 20 23 H1FY23 H1FY24 H1FY23 H1FY24 31#32Thank You BLUE STAR