Blue Star Ltd — Investor Presentation 2020

Aug 7, 2020

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August 7, 2020

BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 BSE Scrip Code: 500067	National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 NSE Symbol: BLUESTARCO

Dear Sir/Ma’am,

Sub: Investors’ Presentation – Q1FY21

Pursuant to Regulation 30 (6) of Securities and Exchange Board of India (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 Q1FY21.

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

Kindly take the same on record.

Thanking you, Yours faithfully, For Blue Star Limited Vijay Devadiga Company Secretary

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Encl: a/a

Z:(01) Blue Star Limited\2020-21\Stock Exchange Compliances\Regulation 30 - Information and Updates\Investors Presentation\Q1FY21

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Blue Star Limited Investor Presentation – Q1FY21 August 7, 2020

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• India’s leading air-conditioning, commercial refrigeration and MEP contracting company

• ~

• Total Revenue from Rs. 5360 crores Operations:

• Employee Strength: 2885

• 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

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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 StructureGovernance Structure

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Chairmen Emeriti

Ashok M Advani Suneel M Advani

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Board of Directors
Shailesh Haribhakti Vir S Advani B Thiagarajan
Chairman Vice Chairman & Managing Director Managing Director
Sam Balsara Rumjhum Chatterjee Anil Harish Arvind K Singhal Rajiv R Lulla Sunaina Murthy Dinesh Vaswani
Independent Independent Independent Independent Non-Executive Non-Executive Non-Executive
Director Director Director Director Director Director Director
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Business Segments

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Segment I Electro-Mechanical Projects and Commercial Air Conditioning Systems

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• 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.

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• 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

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• Highly efficient 5 Star rated Configured Oil Free chillers

• Mix and Match Configured SeriesAir-Cooled and Water-Cooled

• Screw chillers

• Energy-efficient 3 Star Inverter scroll chillers

• Process chillers for industrial and non-comfort cooling applications

• Wide of Chillers range Centrifugal

• from 350 TR to 4000 TR

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• 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 titled “Gold Standard service”. programme

• 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

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• 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. a Displays

• complete range of our latest energy efficient products for the Middle East.

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Some of our prestigious projects

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Bangalore Metro

Gift City

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Tata Power - HT Substation

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Tata Steel

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Chhatrapati Shivaji International Airport-T2

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Parliament House
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Some of our prestigious international projects

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HVAC works in Doha Live, Qatar

Al Bayt International Stadium

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PAVILLION 2, BUKIT JALIL MALL, Malaysia

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HOSPITAL CYBERJAYA, Malaysia

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Bowyer Wick Office & Warehouse

BB TOWER, Malaysia

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Segment II Unitary Products

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• 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

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Market Size (Units in millions) – FY20

Penetration % - FY20

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140.0
60.0%
80.0
30.0%
5.4 6.0%
Global China India Global China India
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Blue Star Market Share (%)

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12.3% 12.5%
11.1% 11.5%
10.5%
FY16 FY17 FY18 FY19 FY20
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• 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

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• Comprehensive range of stylish value for as well as and money premium differentiated of RO+UV+UF range 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 for the third time in a row

• country

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DADRA

AHMEDABAD

WADA

5 State of the art Automated Factories

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Kala Amb Kala Amb -
– Village Rampur
Ogli (HP) Jattan (HP) 19
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• Specialise in manufacturing a variety of highly engineered and custombuilt 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, Blue star has now embarked upon complete process improvement

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• Automation of robots and Cobots processes using

• 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 Virtual 3D simulation 3D process Continuity, factory modelling,

• 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

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• 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

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Segment III Professional Electronics & Industrial Systems

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• 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

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Financial Performance

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Revenue (Rs Cr) EBITDA (Rs Cr)
1575 115
626
1
Q1FY20 Q1FY21
Q1FY20 Q1FY21
PBT (Before exceptional items) (Rs Cr) Earnings per share (EPS) (Rs )
108 7.98
-29
-2.04
Q1FY20 Q1FY21 Q1FY20 Q1FY21
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*Not Annualized

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Net Borrowing (Rs Cr) Debt / Equity (times)
429 0.6

-1 NIL
0.0
Q1FY20 Q1FY21
Q1FY20 Q1FY21
Capital Turns (times) Return on Capital Employed (%)
28%
5.2
4.5
12%
Q1FY20 Q1FY21
Q1FY20 Q1FY21
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*Net Positive Cash Balance

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Segment Revenue (Rs Cr)

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624
312
Q1FY20 Q1FY21
Capital Employed (Rs Cr)
602
567
Q1FY20 Q1FY21
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Segment Result (Rs Cr)

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34
-11
Q1FY20 Q1FY21
Return on Capital Employed (%)
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26%
13%
Q1FY20 Q1FY21
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Orders Booked Carried forward Orders
(Rs Cr) (Rs Cr)
967 2807
2674
Growth of 11%
267
Q1FY20 Q1FY21 Q1FY20 Q1FY21
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Segment Revenue (Rs Cr)

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907
275
Q1FY20 Q1FY21
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Capital Employed (Rs Cr)

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390
229
Q1FY20 Q1FY21
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Segment Result (Rs. Cr)

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99
-4
Q1FY20 Q1FY21
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Return on Capital Employed (%)

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52%
19%
Q1FY20 Q1FY21
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Segment Revenue (Rs Cr) Segment Result (Rs. Cr)
45
10
39
4
Q1FY20 Q1FY21 Q1FY20 Q1FY21
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Capital Employed

The segment operated on negative capital employed in Q1FY20 and Q1FY21.

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