#1Blue Star Limited Investor Presentation - Q1FY21 August 7, 2020 BLUE STAR 1#2About Blue Star BLUE STAR • India's leading air-conditioning, commercial refrigeration and MEP contracting company • Total Revenue from Operations: Employee Strength: 2885 ~ Rs. 5360 crores 5 manufacturing facilities; 32 offices; 3880 channel partners Presence in 18 international markets in the Middle East, Africa, SAARC and ASEAN regions Comprehensive solutions for corporate, commercial, residential customers Winner of the prestigious Golden Peacock Awards, 2019 for 2 categories (a) Excellence in Corporate Governance and (b) Corporate Ethics - • Winner of ICSI Best Governed Company (Listed Company: Medium Category) - 2019 award. 2#3BLUE STAR Blue Star - Vision & Credo Vision: "To dream, to strive, to care and, above all to be the best in everything we do." Credo: "I am Blue Star. I take pride in delivering a world- class customer experience." 3#4Governance Structure Chairmen Emeriti Shailesh Haribhakti Chairman Ashok M Advani Suneel M Advani Board of Directors Vir S Advani Vice Chairman & Managing Director B Thiagarajan Managing Director Sam Balsara Independent Director Rumjhum Chatterjee Independent Director Anil Harish Independent Director Arvind K Singhal Independent Director Rajiv R Lulla Non-Executive Director BLUE STAR Sunaina Murthy Non-Executive Director Dinesh Vaswani Non-Executive Director 4#5bhind Business Segments 5#6Segment I Electro-Mechanical Projects and Commercial Air Conditioning Systems 6#7Electro-Mechanical Projects BLUE STAR Design, engineering, procurement and execution of MEP projects in buildings, factories and infrastructure (Metros & Airports) segments Large central air conditioning & ventilation projects Electrical projects Plumbing projects Fire-fighting projects Mechanical EPC projects in large Industrial sector & Electrical EPC projects for Electrical substations Our Value Proposition Superior project delivery through intelligent engineering, modern execution practices, and committed teams Awarded 'MEP Contractor of the year' in Sep 2019. 7 wallpapersus.com#8Commercial Air Conditioning Systems BLUE STAR Complete range of energy-efficient Packaged and Ducted split air conditioners • Innovative new generation Inverter ducted system • VRF V Plus, the fifth generation VRF designed for Indian conditions and higher efficiency • VRF IV S, Side Discharge system for Residential and medium sized commercial applications. Highly Energy Efficient Water Cooled VRF Highly Channelized Business - 525 dealers in 175 towns VRF V PLUS 100% INVERTER J 8#9Commercial Air Conditioning Systems BLUE STAR Highly efficient 5 Star rated Configured Oil Free chillers • Mix and Match Configured Series- and Water-Cooled Air-Cooled Screw chillers Energy-efficient 3 Star Inverter scroll chillers Process chillers for industrial and non-comfort cooling applications Wide range of Centrifugal Chillers from 350 TR to 4000 TR BLUE STAR 9#10After Sales Service BLUE STAR India's largest air conditioning and refrigeration service provider Maintaining around 2 million tonnes of air conditioning and refrigeration equipment • Reach to more than 4000 towns handling > 1.2 million service calls a year • Runs an excellence programme titled "Gold Standard service". Same day installation and response time of 3 hours and turnaround time of 18 hours • ISO 9001-2015 and ISO 45001 certified • Offers Engineering Facility Management covering operation and maintenance services for electro-mechanical utilities 10#11International Business BLUE STAR Headquartered and managed by the Company's wholly owned subsidiary at Dubai. • Offers Air Conditioning and Refrigeration products, after-sales service as well as system integration in global markets. • Product portfolio includes Unitary products, DX Commercial, refrigeration and Applied systems products. • Focus on building a larger international footprint by enhancing reach of distributors, channel associates. • International projects managed by the Company's international joint ventures in Qatar and Malaysia. • State-of-the-art exclusive showroom at Dubai. Displays a complete range of our latest energy efficient products for the Middle East. 11#12Some of our prestigious projects Bangalore Metro Gift City CAUTION BAY-2 Tata Power - HT Substation C Tata Steel Chhatrapati Shivaji International Airport-T2 Parliament House BLUE STAR 12#13Some of our prestigious international projects HVAC works in Doha Live, Qatar PAVILION BUKIT JALIL PAVILLION 2, BUKIT JALIL MALL, Malaysia BB TOWER, Malaysia 7 BLUE STAR Al Bayt International Stadium HOSPITAL CYBERJAYA, Malaysia Bowyer Wick Office & Warehouse 13#14Segment II Unitary Products 14 114#15Room Air Conditioners Installed base of over two million units. • Products available in 6000 outlets in more than 650 locations across the country. Focus on inverter technology and energy efficient products. Focus on residential as well as corporate and commercial customers Aesthetics and low noise make our products widely recommended by interior designers Higher quality consistent performance under various Indian conditions 15#16Low penetrated market and growing middle class purchasing power offer immense opportunity for growth... BLUE STAR Market Size (Units in millions) - FY20 140.0 80.0 5.4 Global China India 30.0% Penetration % - FY20 60.0% 6.0% Global China India Blue Star Market Share (%) 12.3% 12.5% 11.1% 11.5% 10.5% FY16 FY17 FY18 FY19 FY20 16#17Commercial Refrigeration Products Wide range of commercial refrigeration equipment • Market leader in most of the segments BLUE STAR Products having latest technology with innovative features: - Deep Freezers - Bottle Coolers — - - Visi Coolers/Freezers - Storage Water Coolers/Dispensers Bottled Water Dispensers - Ice Cubers/Flakers - Cold Rooms - - Commercial Kitchen Refrigeration Medical Refrigeration Supermarket Refrigeration 17 15#18Water Purifiers Comprehensive range of stylish value for money as well as premium and differentiated range of RO+UV+UF products across price points from Rs 7,900 to Rs 46,900 Unique features such as cold and hot water, filter change alerts, aqua taste boosters and electronic dispensing Available in over 450 towns with ~200 channel partners and 3000 retail points Won the Water Digest Awards 2019 for 'Best Domestic RO+UV Purifier' in the country for the third time in a row BLUE STAR 18#19Manufacturing Facilities AHMEDABAD Kala Amb - Village Ogli (HP) 5 State of the art Automated Factories DADRA BLUE STAR WADA - Kala Amb Rampur Jattan (HP) 19#20SEP Manufacturing Facilities BLUE STAR Specialise in manufacturing a variety of highly engineered and custom- built products. Manufacturing footprint of 1 lakh square meter. Over 300 models manufactured across 25 product lines. Lean manufacturing and world-class practices. Green Building initiative - Wada factory certified 'Green factory' - Gold category from IGBC and Solar plant installed at Dadra. Capacity expansion underway in line with growth. Intelligent I-Factory through application of Industry 4.0 for Real-time monitoring of assets to improve overall equipment effectiveness, Utility & Energy. • Successful implementation of Manufacturing excellence program, star has now embarked upon complete process improvement Blue 20 20#21Manufacturing Facilities • Automation of processes using robots and Cobots BLUE STAR 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 Manufacturing factories are ISO 9001-2015 & ISO 45001:2018 certified by TUV Nord SEP 21#22Research & Development BLUE STAR Department of Scientific & Industrial Research (DSIR) approved R&D facilities Consistent investment in R&D to enhance company's product offerings and technical capabilities Focus on energy efficient and sustainable products and technologies 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 • Third party safety compliance test facility 22#23Segment III Professional Electronics & Industrial Systems E 23#24Professional Electronics & Industrial Systems ASMAQ BLUE STAR Jul 25. 2002 Managed by the Company's wholly owned subsidiary, Blue Star Engineering & Electronics Ltd Lines of Business include: - - - - - - Healthcare Systems: MRI & CT Scanner Data Security Solutions: Payment HSM, PKI, Encryption CTU Infra Security System: Video Surveillance, Traffic Management Communication Systems: Satellite Test Equipment, Radio Frequency recorders Testing Machines: UTM, Hardness Testers, Chambers NDT Systems & Industrial Automation: Ultrasonic, Eddy Current Systems, X-Ray, MPI, Bagging, Truck Loading NDT Products: Ultrasonic, RVI, X-Ray, CT, CR, Metrology - Industrial Products: Pumps, Valves, Filters, Analysers Hipime 42052AM 003 0265546 Geforce 8600 G Evolved from being only a distributor of leading global manufacturers to a high-end system integrator and value-added reseller 14.20 AM 2000 56789 10.11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ARMANI SES 18 CO MFGB 4G6 LAGE 24#25bhind Financial Performance 25#26Financial Performance - Q1FY21 1575 Revenue (Rs Cr) 626 Q1FY20 Q1FY21 PBT (Before exceptional items) (Rs Cr) 108 -29 115 Q1FY20 EBITDA (Rs Cr) 1 Q1FY21 Earnings per share (EPS)* (Rs) 7.98 Q1FY20 Q1FY21 Q1FY20 -2.04 Q1FY21 BLUE STAR *Not Annualized 26#27Balance Sheet indicators - Q1FY21 Net Borrowing (Rs Cr) Q1FY20 429 Q1FY21 Capital Turns (times) 5.2 Q1FY20 *Net Positive Cash Balance 4.5 Debt/Equity (times) NIL Q1FY20 0.6 Q1FY21 Return on Capital Employed (%) 28% 12% Q1FY21 Q1FY20 Q1FY21 BLUE STAR 27#28Segment 1: EMP and Commercial Air-Conditioning systems Segment Revenue (Rs Cr) 624 Q1FY20 312 Q1FY21 Capital Employed (Rs Cr) 567 Segment Result (Rs Cr) 34 Q1FY20 -11 Q1FY21 Return on Capital Employed (%) 26% 602 13% BLUE STAR Q1FY20 Q1FY21 Q1FY20 Q1FY21 28#29Segment 1: EMP and Commercial Air-Conditioning systems 967 Orders Booked (Rs Cr) 267 Carried forward Orders (Rs Cr) 2807 2674 Q1FY20 Q1FY21 Q1FY20 Q1FY21 BLUE STAR 29#30Segment 2: Unitary Products Segment Revenue (Rs Cr) 907 Segment Result (Rs. Cr) 275 99 Q1FY20 Q1FY21 Capital Employed (Rs Cr) 229 390 Q1FY20 Q1FY21 Return on Capital Employed (%) 52% 19% BLUE STAR Q1FY20 Q1FY21 Q1FY20 Q1FY21 30#31Segment 3: Professional Electronics & Industrial Systems Segment Revenue (Rs Cr) Segment Result (Rs. Cr) 45 39 Q1FY20 Q1FY21 10 10 BLUE STAR Q1FY20 Q1FY21 Capital Employed The segment operated on negative capital employed in Q1FY20 and Q1FY21. 31#32Thank you BLUE STAR 32