Blue Star Ltd — Investor Presentation 2019

May 9, 2019

• =::"'? PLATINUM 7 JUBILEE

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. Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

National Stock Exchange of India Ltd. Exchange Plaza, C-1 , Block G, Sandra Kurla Complex, Sandra (East), Mumbai - 400 051

BSE Scrip Code: 500067

NSE Symbol: BLUESTARCO

May 9, 2019

Dear Sir,

Sub: Investors' Presentation- Q4 FY19

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 are enclosing herewith the Investors' Presentation for Q4 FY19.

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

Thanking you, Yours faithfully, For Blue Star Limited

,(LVijay Devadiga V Company Secretary

Encl: a/a

Registered Office: Kasturi Buildings, Mohan T Advani Chowk, Jamshedji Tata Road, Mumbai 400 020, India. T: +91 22 6665 4000 F: +91 22 6665 4152. CIN: L 28920MH1949PLC 006870

1

Blue Star Limited Investor Presentation

May 3, 2019

About Blue Star

• India"s leading air-conditioning, commercial refrigeration company and MEP contracting company
• Total Revenue from Operations: ~ 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

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. "

Governance Structure Governance Structure

Chairman Emeritus

Ashok M Advani

Suneel M Advani

B Thiagarajan

Rajiv R Lulla Non-Executive Director

Sunaina Murthy Non-Executive Director

Gurdeep Singh Independent Director

Board of Directors

Shailesh Haribhakti Chairman

Vir S Advani Vice Chairman & Managing Director

Sam Balsara Independent Director

Rumjhum Chatterjee Independent Director

Anil Harish Independent Director

Arvind K Singhal Independent Director

Shobana Kamineni Independent Director

Dinesh Vaswani Non-Executive Director

Business Segments

Segment I Electro-Mechanical Projects and Packaged Air Conditioning Systems

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 2018 (fourth year in a row)

Commercial Air Conditioning business (Central and Packaged Air Conditioning Products)

• 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

Commercial Air Conditioning business

• 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

Commercial Air Conditioning business

• 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

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 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

International Business

• 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.

Market Opportunity

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

Some of our prestigious projects

GIFT City

Tata Power - HT Substation Tata Steel

Chhatrapati Shivaji International Airport-T2

Parliament House

Some of our prestigious international projects

China Centre, Seeb, Oman Al Dafna West Bay, Doha

Kuala Lumpur Grand Hyatt , Malaysia Polonnaruwa Auditorium, Sri lSanka

Qatar University, Qatar Lexus Car Show room,DFC,Dubai

Segment II Unitary Products

Room 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 ¹⁷

Low penetrated market and growing middle class purchasing power offer immense opportunity for growth…

Future Growth

Market Size (Units in millions)

Blue Star Market Share (%)

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
• Commercial Kitchen Refrigeration
• Medical Refrigeration
• Retail Refrigeration ¹⁹

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 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

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 ²³

Segment III 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

Financial Performance

Financial Performance – FY19

5235

248

Revenue * (Rs Cr)

FY18 FY19

PBT (Before exceptional items) (Rs Cr)

FY18 FY19

Growth of 31%

190

4541

Growth of 15%

*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.

Balance Sheet indicators – FY19

Segment 1: EMP and Packaged Air-Conditioning system

Blue Star continued to maintain its dominant position in integrated MEP space.

29 *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.

Segment 1: EMP and Packaged Air-Conditioning system

Segment 2: Unitary Products

31 * 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.

Thank you