Blue Star Ltd — Investor Presentation 2018

Aug 29, 2018

Blue Star Limited Band Box House, 4th Floor, 254 D, Dr Annie Besant Road, Worli, Mumbai 400 030, India. T : +91 22 6654 4000 F : +91 22 6654 4001 www.bluestarindia.com

BSE ltd.	National Stock Exchange of India Ltd.
Phiroze Jeejeebhoy Towers,	Exchange Plaza,
Dalal Street, Fort,	Bandra Kurla Complex, Bandra (East),
Mumbai - 400 023	Mumbai -400 051
BSE Scrip Code: 500067	NSE Symbol : BLUESTARCO

August 29, 2018

Dear Sir,

Sub: Intimations of Schedule of Analyst/Institutional Investor Meeting

Pursuant to Regulation 30 (6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the "Listing Regulations") read with Part A of Schedule Ill of the Listing Regulations, we have to inform you that following meetings are scheduled with the Analyst/Institutional Investor:

Date	Name	Venue	Type of Meeting
	Stewart Investors		IIFL Conference
	J.P. Mor an Asset Mana ement
September 3, 2018
	~--------------------------------~ London
	Investment Mana ement Limited
	Hermes Global Emer
	Fundsmith LLP
			II FL Roadshow
September 4, 2018

Registered Office: Kasturi Buildings, Mohan T Advani Chowk, ams edji lata Road, Mumbai 400 020,1ndia. T: +91 22 6665 4000 F: +91 22 6665 4152. CIN: L 28920MH1949PLC 006870

Kindly note that the above is subject to changes, if any.

We are attaching herewith the Investors' Presentation to be made at the aforesaid meetings, for your records.

Pursuant to Regulation 46 (2) (o) of the Listing Regulations, the aforesaid information is also being placed at the website of the Company i.e. www.bluestarindia.com

Thanking you, Yours faithfully, For Blue Star Limited

~ Yijay Devadiga 'JCompany S~cretary

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Blue Star Limited Investor Presentation

About Blue Star

• India's leading air-conditioning, commercial refrigeration company and MEP contracting company • Total Revenue from Operations: ~ US\$ 650 Mn
• Employee Strength: ~ 2800
• Network of 35 offices; 2200 dealers, 600 retailers
• 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

Journey so far…

Manufacturing of Water Coolers Air conditioned 1st Sky scrapers of Mumbai Dadra plant inaugurated Set up plants at Wada and Ahmedabad Forays into Water Purifiers and Air Purifiers Company formed by Mohan T Advani Set up wholly owned subsidiary in Dubai Forays into the residential Air Conditioning Set up plant at Himachal Pradesh Goes public and Thane plant inaugurated 1972 1997 2007 2016 1943 1969 2005 2011 2017 1948 Manufacturing of centrifugal packaged chillers 1985

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 worldclass customer experience. "

Trend-setters in technology

• First Company to Introduce energy – efficient scroll compressors in India
• Pioneered Precision Inverter ACs with 'Precision Cooling Technology' (Enables setting of temperature in decimals)
• First Indian manufacturer of Inverter VRF systems and Inverter drives for Room ACs
• Launched India's first hot and cold RO+UV water purifier with 'Immuno Boost Technology'
• First to Introduce remote monitoring of chillers
• First to Introduce the super-efficient Turbocor Chillers in India
• First Indian Company to secure certifications from National Environment Balancing Bureau (NEBB), USA for Testing and balancing chilled water systems and National Air Duct Cleaners Association (NADCA), USA for duct cleaning

Shareholding Pattern – As on March 18

Promoters Indian Public FI/Banks/Mutual Funds Foreign Holdings Bodies Corporate

Market Capitalization

Based on the last day of financial year

Governance Structure

Chairman Emeritus

Ashok M Advani

Board of Directors

Suneel M Advani Chairman

Vir S Advani Managing Director

B Thiagarajan Joint Managing Director

Sam Balsara Independent Director

Shailesh Haribhakti Independent Director

Anil Harish Independent Director

Shobana Kamineni Independent Director

Rajiv R Lulla Non-Executive Director

Gurdeep Singh Independent Director

Dinesh Vaswani Non-Executive Director

Committees of the Board

• Audit Committee
• Nomination and Remuneration Committee
• Investor Grievance cum Stakeholders' Relationship Committee
• Corporate Social Responsibility (CSR) Committee
• Risk Management Committee
• Executive Management Committee
• Share Transfer Committee

Business Segments

Electro-Mechanical Projects and Central Air Conditioning Products

Electro-Mechanical Projects

• Design, supply, installation and commissioning of

• Large central air conditioning projects
• Electrical projects
• 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 2017 (third year in a row)

Central Air Conditioning Projects

• Expertise of over seven decades in system design, contracting, installation and maintenance
• 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

Central Air Conditioning Products

• 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

Central Air Conditioning Products continued…

16

• Highly efficient centrifugal chillers
• AHRI-certified Configured Seriesscrew chillers
• Flexible and energy-efficient scroll chillers
• Process chillers for industrial and non-comfort cooling applications
• Air cooled and water cooled variants

After Sales Service

• 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 3000 towns handling > 1 million service calls a year
• ISO 9001-2015 certified
• Focus on service delivery quality through a Service Quality Assurance Group, Service Specialists' Group for high-end technical requirements
• Forayed into Engineering Facility Management which covers a wide repertoire of operation and maintenance services for electro-mechanical utilities

International Business

• Offers air-conditioning and refrigeration products, aftersales service as well as system integration in global markets
• Product portfolio includes Unitary Products, DX Commercial Products, Applied System and Refrigeration solution 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, Malaysia and Oman
• Wholly owned subsidiary set up in Dubai to consolidate and expand International business

Market Dynamics

Electro Mechanical Projects

• Size : Approximately US\$ 1.43 Bn
• Share of Blue Star : 10%
• Ranking of Blue Star: Market leader
• Key Competitors : Voltas | Sterling & Wilson

Central Air Conditioning Products

• Size : VRF – US\$ 140 Mn | Ducted – US\$ 110 Mn | Chiller – US\$ 110 USD Mn
• Share of Blue Star : VRF – 16% | Ducted - 40% | Chiller – 35%
• Ranking of Blue Star : VRF and Chiller – 3rd Position | Ducted – Market leader
• Key Competitors : VRF – Daikin and LG | Ducted – Voltas and Carrier |

Chiller – Trane and Carrier

Some of our prestigious projects

Parliament House Delhi Metro

Chhatrapati Shivaji International Airport-T2 JW Marriott

Microsoft Tata Steel

Some of our prestigious international projects

AMCORP Trade Centre, Malaysia Bank of Mauritius

Kuala Lumpur Grand Hyatt , Malaysia Hotel Rehabilitasi, Malaysia

Civil Aviation Headquarters, Oman New District Hospital, Qatar

Unitary Products

Room Air Conditioners

• Installed base of over two million units
• Products available in 4500 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

Commercial 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
• Professional Kitchen Refrigeration
• Medical Refrigeration
• Retail Refrigeration

Water 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 174 towns with ~200 channel partners and 2400 retail points
• Won the Water Digest Awards 2018 for 'Best Domestic RO+UV Purifier' in the country for the second time in a row

Market Dynamics

Room Air Conditioners

• Size : Approximately US\$ 1.71 Bn (penetration – 4%)
• Share of Blue Star : FY 18 - 11.5% | FY17 – 11.2%
• Ranking of Blue Star : 5th Position

Key Competitors : Voltas | Daikin | Hitachi | LG | Lloyds | Samsung

Commercial Refrigeration

Size : Deep Freezer – US\$ 140 Mn | Water Cooler – US\$ 50 Mn |

Cold Room - US\$ 50 Mn

• Share of Blue Star : Deep Freezer – 28% | Water Cooler – 33% | Cold Room – 32%
• Ranking of Blue Star : Market leader
• Key Competitors : Voltas

Manufacturing Facilities

• 5 state-of-the-art, automated factories located at:
• Dadra
• Himachal (2 facilities)
• Wada
• Ahmedabad

Manufacturing Facilities

• Specialise in manufacturing a variety of highly engineered and custom-built products

• Manufacturing footprint of 1 lakh sq. m.
• Over 1125 SKUs manufactured across 21 assembly lines
• Lean manufacturing and world-class practices
• Wada factory certified as 'Green factory' Gold category certification from IGBC

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

Professional Electronics & Industrial Systems

Professional 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
• –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
• •Evolved from being only a distributor of leading global manufacturers to a high end system integrator and value-added reseller

Market Opportunity

Enormous opportunities to unfold backed by growth in Indian and global economies

• Capability to cater wide range of market segments gives the opportunity to grow
• The HVAC market in India is forecast to reach US\$ 7.7 billion by 2022
• Government propelled infrastructure investments is expected to drive growth in medium term.
• Sectors like Metros Rail, Healthcare, Education, Airports, Light industrial projects and commercial offices would see significant capital expenditure.

Market Opportunity

Infrastructure investments in tier-2/3/4 cities like shopping malls, retail complexes, airports will further push growth.

Lower penetration of air conditioners as compared to developed countries and faster pace of development of Tier 3,4 and 5 cities

Backward integration in manufacturing processes – leading to increased indigenisation of products

Opportunities in new categories that are adjacencies to the existing product lines

Financial Performance

Key Performance Indicators

Total Income (US\$ Mn)

EBITDA (US\$ Mn)

PAT (US\$ Mn)

Operating Margin (%)

Key Performance Indicators continued…

Return on Capital Employed (%)

Earning Per Share (Rs per share)

Debt / Equity (times)

Return on Equity (%)

Financial Highlights

Particulars	UOM	FY14	FY15	FY16	FY17	FY18
Operating Results:
Total Income	US\$ Mn	422	456	521	595	666
EBITDA	"	21	24	27	32	39
Profit for the year after tax	"	11	8	12	18	21
Dividend (Including corporate dividend tax)	"	6	8	11	12	17
Financial Position:
Share Capital	"	3	3	3	3	3
Shareholders' Funds	"	66	65	90	108	119
Borrowings (Net)	"	61	50	45	17	41
Capital Employed	"	122	103	120	110	147
Other Information:
Number of Shareholders	Nos	22490	20686	19221	25553	39692
Number of Employees	"	2667	2599	2567	2711	2819

Financial Highlights continued…

Particulars	UOM	FY14	FY15	FY16	FY17	FY18
Performance Indicators:
Revenue Growth	%	-0.3	8.1	14.4	14.2	11.9
Gross Margin	%	28.9	30.4	29.5	24.7	30.1
EBITDA Growth	%	66.5	11.2	13.4	17.2	24.2
EBITDA Margin	%	5.1	5.3	5.2	5.4	6.0
Earnings per Share	Rs.	8.4	6.0	8.7	12.9	15.6
Dividend per Share	Rs.	4.0	5.0	6.5	7.5	10.0
Book Value per Equity Share	Rs.	51.2	50.7	66.2	79.4	86.8
Debt Equity Ratio	Ratio	0.9	0.8	0.5	0.2	0.3
Capital Turnover Ratio	Ratio	3.6	4.0	4.6	5.1	5.2
Return on Shareholders' Funds	%	16.8	11.9	13.0	15.6	17.6
Return on Capital Employed	%	15.9	16.8	20.6	24.4	25.5

Thank you