#1Blue Star Limited Investor Presentation 3,2019 BLUE STAR#2About Blue Star BLUE STAR India's leading air-conditioning, commercial refrigeration company and MEP contracting company • Total Revenue from Operations: 2 ~ Rs. 5200 crores Employee Strength: ~ 2800 Network of 32 offices; ~2900 channel partners Presence in 19 international markets in the Middle East, Africa and South Asia • 5 modern manufacturing facilities Comprehensive solutions for corporate, commercial and residential customers 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."#4Governance Structure Chairman Emeritus Board of Directors Sam Balsara Independent Director Ashok M Advani Suneel M Advani Shailesh Haribhakti Chairman Vir S Advani B Thiagarajan Vice Chairman & Managing Director Managing Director Rumjhum Chatterjee Independent Director Anil Harish Independent Director Shobana Kamineni Independent Director Rajiv R Lulla Non-Executive Director Arvind K Singhal Independent Director Dinesh Vaswani Non-Executive Director BLUE STAR Sunaina Murthy Non-Executive Director Gurdeep Singh Independent Director#5bhnd Business Segments#6Segment I Electro-Mechanical Projects and Packaged Air Conditioning Systems 6#7Electro-Mechanical Projects Design, supply, installation and commissioning of Large central air conditioning projects Electrical projects LIPPO Plumbing projects Fire-fighting projects Execution of turnkey industrial projects •⚫ Our Value Proposition Superior project delivery through intelligent engineering, modern execution practices, and committed teams Awarded 'MEP Contractor of the year' in Sep 2018 (fourth year in a row) wallpapersus.com BLUE STAR#8Commercial Air Conditioning business BLUE STAR (Central and Packaged Air Conditioning Products) Expertise of over seven decades in system design, contracting, installation and maintenance ANZ Expert turnkey cooling solutions to a variety of customers in the corporate, commercial and industrial sectors Significant market share in segments such as Industrial, Infrastructure, Metro, Power, Hospitality, Education, IT/ITES, Retail and Healthcare Superior project management capabilities resulting in on-time delivery, high project quality and seamless coordination at all levels 44 1638#9Commercial Air Conditioning business BLUE STAR Complete range of energy-efficient packaged air conditioners and ducted split air conditioners Inverter Ducted System, innovative new range of ducted system VRF V Plus, the fifth generation VRF is launched which is ' 100% Inverter-based VRF system with higher output capacity and efficiency VRF Sprint, ' Pre piped Inverter-based VRF system for residential application. VRF IV S, Side Discharge Inverter-based VRF system for medium sized commercial applications. Driven by segments such as offices, education, industrial, show-rooms, healthcare, hospitality, banquet halls and retail VRF V PLUS 100% INVERTER#10Commercial Air Conditioning business BLUE STAR Highly efficient centrifugal chillers • Air Conditioning, Heating & Refrigeration Institute (AHRI) - certified Configured Series- screw chillers Flexible and energy-efficient scroll chillers Process chillers for industrial and non-comfort cooling applications • Air cooled and water cooled variants BLUE STAR#11After Sales Service BLUE STAR India's largest air conditioning and refrigeration service provider, maintaining around 2 million tonnes of air conditioning and refrigeration equipment. Service reach to more than 3700 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 certified. Recognised as "Leader in Customer Management" during Business Excellence Star Recognition by CII in Sep 2018 Forayed into Engineering Facility Management which covers a wide repertoire of operation and maintenance services for electro-mechanical utilities 11#12International 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 was inaugurated at Dubai on April 15th 2019. Displays a complete range of our latest energy efficient products for the Middle East. 12#13Market Opportunity BLUE STAR ■ The HVAC market in India is forecast to reach US$ 7.7 billion by 2022 Government propelled infrastructure expected to drive growth in medium term. investments is ■ Sectors like Metros Rail, Healthcare, Education, Airports, Light industrial projects and commercial offices would see significant capital expenditure. Infrastructure investments in tier-2/3/4 cities like shopping malls, retail complexes, airports will further push growth. wallpapersus.com#14Some of our prestigious projects Bangalore Metro GIFT City CAUTION Tata Power - HT Substation Tata Steel BLUE STAR 14 Chhatrapati Shivaji International Airport-T2 Parliament House#15Some of our prestigious international projects CHINA CENTER China Centre, Seeb, Oman Al Dafna West Bay, Doha BLUE STAR Polonnaruwa Auditorium, Sri Sanka Kuala Lumpur Grand Hyatt, Malaysia CLEUS Qatar University, Qatar Lexus Car Show room, DFC, Dubai#16Segment II Unitary Products 16#17Room Air Conditioners Installed base of over two million units • Products available in 4800 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, durability & stability of the product make our product widely accepted#18Low penetrated market and growing middle class purchasing power offer immense opportunity for growth... Market Size (Units in millions) - FY 19 140.0 Penetration % - FY 19 BLUE STAR 80.0 30.0% 60.0% 5.5 5.0% Global China India Global China India Future Growth Market Size (Units in millions) 6.0 Blue Star Market Share (%) 12.3% 10.5% 11.1% 11.5% 6.5 9.5% II FY15 FY16 FY17 FY18 FY19 FY20 FY21 18#19Commercial 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 Retail Refrigeration 19#20Water Purifiers Offers a stylish, premium and differentiated range of RO+UV+UF products across price points from Rs 11,000 to Rs 45,000 Unique features such as cold and hot water, filter change alerts, aqua taste boosters and electronic dispensing • Available in over 150 towns with ~200 channel partners and 2800 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 LUE STAR 20 021 0086#21Manufacturing Facilities 5 state-of-the-art, automated factories located at: Dadra - Himachal (2 facilities) - Wada - Ahmedabad BLUE STAR#22Manufacturing Facilities Specialise in manufacturing a variety of highly engineered and custom-built products Manufacturing footprint of 1 lakh sq. m. • Over 1125 SKUS manufactured 21 assembly lines Lean manufacturing and world-class practices across Wada factory certified as 'Green factory' Gold category certification from IGBC - BLUE STAR 22 MSER D.G.#23BLUE STAR Research & Development High level of product development and testing capabilities with several patents for new breakthrough products Department of Scientific & Industrial Research approved ⚫ Lab certification programme for facility upgradation Enhanced capability in reliability and electronics for digital and smart products In-house capacity for testing and certification for safety compliance Consistent investment in R&D to enhance company's product offerings and technical capabilities 23#24Segment III Professional Electronics & Industrial Systems E 24#25Professional Electronics & Industrial Systems •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 BLUE STAR -Infra Security System: Video Surveillance, Traffic Management -Communication Systems: Satellite Test Equipment, Radio Frequency recorders -Testing Machines: UTM, Hardness Testers, Chambers ARMANI -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 Hipme 42952AM 003 026 36 46 Geforce 8600 GT 60°C •Evolved from being only a distributor of leading global manufacturers to a high end system integrator and value-added reseller MFGB G6 3900 LAGE 19 20 21 22 23 24 25 18#26bhnd Financial Performance 26#27Financial Performance - FY19 Revenue * (Rs Cr) EBITDA (Rs Cr) 4541 FY18 Growth of 15% 5235 266 FY19 PBT (Before exceptional items) (Rs Cr) 190 Growth of 31% 248 FY18 Growth of 30% 347 FY19 Earnings per share (EPS) (Rs) 19.75 15.03 FY18 FY19 BLUE STAR FY18 FY19 *Prior to GST going live on July 1, 2017, revenue included excise duty and other input taxes. Comparable revenue growth has been computed by adjusting excise duty and other input taxes in revenue of Q1 FY18. Effective Apr 01, 18, we have adopted Ind AS 115 and accordingly accounting changes were applied with retrospective effect to each of the prior reporting periods presented. 27#28Balance Sheet indicators - FY19 Net Borrowing (Rs Cr) Debt/Equity (times) 295 247 FY18 FY19 Capital Turnover (times) 5.3 5.3 0.4 FY18 0.3 FY19 Return on Capital Employed (%) 26% 30% BLUE STAR FY18 FY19 FY18 FY19 28#29Segment 1: EMP and Packaged Air- Conditioning system Segment Revenue * (Rs Cr) 2338 Growth of 18% Segment Results (Rs Cr) Growth of 24% 2748 122 151 FY18 FY19 FY18 Capital Employed (Rs Cr) 453 FY18 515 FY19 FY19 Return on Capital Employed (%) 29% FY18 31% FY19 BLUE STAR Blue Star continued to maintain its dominant position in integrated MEP space. * Prior to GST going live on July 1, 2017, revenue included excise duty and other input taxes. Comparable revenue growth has been 29 computed by adjusting excise duty and other input taxes in revenue of Q1 FY18. Effective Apr 01, 18, we have adopted Ind AS 115 and accordingly accounting changes were applied with retrospective effect to each of the prior reporting periods presented.#30Segment 1: EMP and Packaged Air- Conditioning system 2491 Orders Booked (Rs Cr) Growth of 19% 2952 Carry forward Orders (Rs Cr) Growth of 22% 1877 2283 FY18 FY19 FY18 FY19 BLUE STAR 30#31Segment 2: Unitary Products Segment Revenue * (Rs Cr) Growth of 13% 2005 FY18 Segment Results (Rs. Cr) Growth of 11% 2269 168 FY19 Capital Employed (Rs Cr) 469 383 FY18 FY19 FY18 186 FY19 Return on Capital Employed (%) 55% 44% FY18 FY19 BLUE STAR * Prior to GST going live on July 1, 2017, revenue included excise duty and other input taxes. Comparable revenue growth has been 31 computed by adjusting excise duty and other input taxes in revenue of Q1 FY18. Effective Apr 01, 18, we have adopted Ind AS 115 and accordingly accounting changes were applied with retrospective effect to each of the prior reporting periods presented.#32Thank you 22 BLUE STAR 021 32 0086