#1Blue Star Limited Investor Presentation - Q1FY24 August 4, 2023 BLUE STAR#2About Blue Star BLUE STAR • India's leading air-conditioning, commercial refrigeration and MEP contracting company • Total Revenue from Operations: Rs. 7977 crores Employee Strength: 3132 • 7 manufacturing facilities • 30 offices; 4040 channel partners Present in select markets in the Middle East, Africa, SAARC and ASEAN regions; recently incorporated subsidiaries in US, Europe, Japan and Uganda Comprehensive solutions for corporate, commercial, residential customers Winner of multiple Golden Peacock Awards for Corporate Governance and Risk Management 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 Ashok M Advani Suneel M Advani Board of Directors Shailesh Haribhakti Chairman Vir S Advani Vice Chairman & Managing Director B Thiagarajan Managing Director Sam Balsara Independent Director Anil Harish Independent Director Anita Ramachandran 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#5bhnd Business Segments 5#6Business Segments Electro-Mechanical Projects & Commercial Air Conditioning Systems Unitary Products (Room ACs, Air Coolers, Air Purifiers, Water Purifiers and Commercial Refrigeration Products & Systems) BLUE STAR Professional Electronics and Industrial Systems (Housed under a wholly owned subsidiary, Blue Star Engineering & Electronics Ltd) 0000 0000 0000 100000 6#7Segment I Electro-Mechanical Projects and Commercial Air Conditioning Systems 7#8Electro-Mechanical Projects BLUE STAR Design, engineering, procurement and execution of MEP projects in buildings (including Airports), factories (including Data centres) and infrastructure (Metro rail, Electrical substations, Railway electrification & Water MEP) 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 Winner of 'MEP Contractor of the year' seven times in a row (2017 to 2023) wallpapersus.com 8#9Commercial Air Conditioning Systems BLUE STAR Complete range of energy-efficient Packaged and Ducted split air conditioners Innovative New range of Packaged & Ducted Split air conditioners with Special Filters and UVGI Innovative ducted system new generation Inverter VRF V Plus, the fifth generation VRF designed for Indian conditions and higher efficiency • Side Discharge VRFs Highly Channelized Business - 660 dealers in 218 towns BLUE STAR INVERTER 9#10Commercial Air Conditioning Systems LUE STAR Highly efficient 5 Star rated Configured Oil Free chillers Mix and Match Configured Series- Air- Cooled and Water-Cooled Screw chillers Energy-efficient 5 Star VFD Star VFD 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 R134a AIR COOLED VFD SCREW CHILLER LUST 10#11Commercial Air Conditioning Systems BLUE STAR Large Capacity Mix and Match Configured Series- Screw chillers 5th Generation Side discharge VRF VREVS CLUE STAR ☑ VRF VS 11#12After Sales Service BLUE STAR India's largest air conditioning and refrigeration service provider Maintaining around 2 million tonnes of air conditioning and refrigeration equipment Backed by our value proposition "Gold Standard service delivery", we extensively expanded our service reach to Tier 2, 3 & 4 towns and are currently handling 3900 towns with > 1.2 million service calls a year Focus on Same day installation for 90% jobs; response time of 3 hours and turnaround time of 18 hours State of the art 'Remote Monitoring Centre' at Thane ISO 9001-2015 and ISO 45001 certified Accreditations from TAB, NEBB, CMVP, IAQ and NADCA 12#13International 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 13#14Some of our prestigious projects 19915 Yotta Data Centre - Noida MEP WORS BLUE STAR Wistron Infocomm - Bengaluru Bangalore Metro Rail Corporation Freudenberg Plant - Punjab 1111 Jockey Factory - Cuttack Hines Group 14#15Some of our prestigious international projects MYOX Al Wasl Shopping Centre - Dubai Vox Cinema - Dubai Al Bayt International Stadium PAVILION BUKIT JALIL Al Salam - Dubai BLUE STAR PAVILLION 2, BUKIT JALIL MALL, Malaysia Bowyer Wick Office & Warehouse 15#16Segment II Unitary Products 16#17Room Air Conditioners • Wide range of highly-affordable split ACs offering state-of-the-art features and premium build quality Installed base of over two million units. Products available in 8000 outlets in more than 650 locations across the country. • Focus on inverter technology, energy efficient products and ACs with purification technologies. • 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 17#18Low penetrated market and growing middle class purchasing power offer immense opportunity for growth... BLUE STAR Market Size (Units in millions) - FY23 150 85 8 Global China India 30.0% Penetration % - FY23 60.0% 7.0% Global China India Blue Star Market Share (%) 12.3% 12.5% 13.0% 13.3% 13.5% FY19 FY20 FY21 FY22 FY23 18#19Commercial Refrigeration Products Wide range of commercial refrigeration equipment Market leader in most of the segments 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 ELLESTAR www. BLUE STAR 9 19#20State-of-the-Art Manufacturing Facilities Himachal Pradesh 2 Ahmedabad Dadra Wada BLUE STAR Himachal Pradesh 1 New world-class manufacturing facility for Room ACs at Sri City under Blue Star Climatech Limited, a wholly owned subsidiary commenced commercial production in FY23 Second plant at Wada commenced commercial production in FY23 Bird's eye view of the Sri City Plant 20 20#21Manufacturing Facilities BLUE STAR Specialise in manufacturing a variety of highly engineered and custom-built products. • Manufacturing footprint of 1.3 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. 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, Blue star has now embarked upon complete process improvement MSEP D.G. 21#22Manufacturing 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 22#23Research & 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 23#24Segment III Professional Electronics & Industrial Systems E 24#25Professional Electronics & Industrial Systems BLUE STAR CPU ASMANI Managed by the Company's wholly owned subsidiary, Blue Star Engineering & Electronics Ltd Bringing world class technology led solutions to customers across a wide range of industries Evolved from being only a distributor of leading global manufacturers to a high-end system integrator and value-added reseller Recognized as a gateway for advance technologies in India Offerings across diverse industry segments including - - - - Advanced Technology Products Turnkey Engineering Solutions Customized Testing Products Value-added services ENTRUST TU New ARMANSI BGR CPU 76% 04:20 AM July 2000 587 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 OCH VATICH MES 236330 443 DM 138 ipme 42052AM 003 0263646 11 25#26Professional Electronics & Industrial Systems BLUE STAR Lines of Business include: - MedTech Solutions Data Security Solutions ASMAOI SI TUUT 28 - Industrial Solutions Non-Destructive Testing Solutions • Material Testing Systems • Warehouse Automation Metrology Solutions OVIDIA X-F New York City INTACH ARMANS511 0.008/ Core 1 GO Core 2 CPU 117% 0% 178 BAM 29% 12316 VRAM CPU NT CTU w: 25, 3002 Intel Pentium 4 340 Ju95 / 707|WA CTECH A3GB/DOT7GH VIDEO GAMES GE 25 OGGIRANG 3900 Floo D www-QRELAGE 7/236330 ENTRUST Lipost GAME Tuesday 78% July 28 76% 04:20 AM July 2000 AT 1234 56789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ARMANI 911 707 MB 200 GB 26#27BLUE STAR E S G Environment, Social contribution and Governance 27 22#28ESG Principles Embedded in Blue Star's BLUE STAR Business Practices ENVIRONMENT ⚫ Industry leader in energy-efficiency for Room ACs, Deep Freezers and Screw SOCIAL GOVERNANCE Chillers with VFDs • Number 1 in E-Waste compliance in the Room AC industry • 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 • Focused initiatives on skill development and sustainable development projects . Philanthropic initiatives in the areas of education and healthcare Leading AC&R training partner for multiple institutes and corporates • Committed to highest standards of safety practices for employees and business partners Well-enumerated Code of Conduct, Whistle Blower Mechanism and a Governance, Risk and Compliance policy Integrated Vigil Mechanism Framework; all Governance pillars integrated with each other • Balanced and diverse Board with an optimum mix of Executive & Non- Executive Directors 28#29bhnd Financial Performance Q1FY24 29 29#30Financial Performance - Q1FY24 Revenue (Rs Cr) 2226 123 1977 Q1FY23 EBITDA (Rs Cr) 145 Q1FY24 Q1FY23 Q1FY24 Earnings per share (EPS)* (Rs) Profit before tax (Rs Cr) 4.33 114 3.86 101 BLUE STAR Q1FY23 Q1FY24 Q1FY23 Q1FY24 *Not Annualized 30#31Balance Sheet indicators - Q1FY24 -81 Net Borrowing (Rs Cr) Q1FY23 7.3 283 Net Debt/Equity (times) * Q1FY24 Q1FY23 Capital Turns (times) Q1FY23 *Net Positive Cash Position 0.20 Q1FY24 Return on Capital Employed (%) 40% 6.1 34% Q1FY24 Q1FY23 Q1FY24 BLUE STAR 31#32Segment 1: EMP and Commercial Air-Conditioning systems Segment Revenue (Rs Cr) 797 Q1FY23 949 Q1FY24 Capital Employed (Rs Cr) 308 527 Segment Result (Rs Cr) 49 45 Q1FY23 67 Q1FY24 BLUE STAR Return on Capital Employed (%) 54% 71% Q1FY23 Q1FY24 Q1FY23 Q1FY24 32#33Segment 1: EMP and Commercial Air-Conditioning systems Orders Booked (Rs Cr) Carried forward Orders (Rs Cr) 1366 1225 3655 5106 Q1FY23 Q1FY24 Q1FY23 Q1FY24 BLUE STAR 33#34Segment 2: Unitary Products Segment Revenue (Rs Cr) 1128 Q1FY23 1198 Segment Result (Rs. Cr) 91 Q1FY24 Q1FY23 89 Q1FY24 BLUE STAR Capital Employed (Rs Cr) Return on Capital Employed (%) 439 696 53% 49% Q1FY23 Q1FY24 Q1FY23 Q1FY24 34 34#35Segment 3: Professional Electronics & Industrial Systems Segment Revenue (Rs Cr) Segment Result (Rs. Cr) 53 78 6 10 Q1FY23 Q1FY24 Q1FY23 Q1FY24 BLUE STAR 35#36Thank you 22 BLUE STAR 021 36