ASIAN STAR COMPANY LIMITED

CORPORATE PRESENTATION

June 2020

THE COMPANY

ORIGINS

BUSINESS

HIGHLIGHTS

• Set up as a partnership firm in 1971• Became a public limited company in 1995 and

listed on Bombay Stock Exchange in 1996

• Diamond Cutting and Polishing• Diamond Jewellery Manufacturing and Marketing• Retailing

Company Snapshot

• Leading supply partners for loose polished and jewellery to some of the leading brands and retail chains across the globe

•More than 70% of the company’s turnover is generated from the overseas markets

VISION

To be a world-class diamantaire enjoying sustainablegrowth;to maximize the potential of our core competenciesandadd long-term value to the diamondpipeline.

ISSION

We will live each day our passion for innovation and excellence,so as to create highly desirable diamonds andexperiencesthat surpass our customers’ expectations.

M

VIntegrity Partnership Excellence Responsibility Unity

ALUES

Corporate Objectives

Management Profile

• Mr. Dinesh Shah – CFO & Executive Chairman

• Mr. Vipul Shah – CEO & Managing Director

• Mr. Arvind Shah – Executive Director

• Mr. Priyanshu Shah – Executive Director

• Mr. Rahil Shah – Executive Director

• Mr. Dharmesh Shah – Non Executive - NonIndependent Director

Approved manufacturer of FOREVERMARK

Certified Member of RJC (Responsible Jewellery Council)

ISO 9001:2015 certification from TUV NORD, Germany

‘A2+’ rating for short-term and ‘A- ; Stable’ rating for long-term bank facilities by CARE – Credit Analysis and Research Ltd

Has the prestigious Star Trading House Status

Ranked 294 in Dun & Bradstreet’s “India’s Top 500 Companies” in 2019

Corporate Credentials

Direct supply from source – ALROSA, DE BEERS, DOMINION DIAMOND

Ranked 476 in the “Top 500 Corporations of India” in 2019

by Fortune India

Presence In Major Diamond Consuming Cities Globally, Powered By Nearly 2000 Skilled Employees

Global Presence

Key Success Factors Delivering Competitive Advantage

• Vertically Integrated Business Model delivers a sound and synergistic commercial proposition.

• World-Class Infrastructure base for diamond processing and jewellery manufacturing.

• Widespread Marketing Network allows instant access to new potential markets and provides detailed market knowledge.

• Consistency of the ‘Asian Star make’ and reputation as a one-stop-shop in the trading circles.

• Focused R&D to consistently deliver specialized cuts for diamondsand innovations in jewellery.

• Excellent Design Team based in India, the USA and Hong Kong.

• Experienced Management & Strong Financial Base fueling future growth plans

OPERATIONS

Vertically Integrated Business Model

Ethical sourcingof Rough

World-class cutting& polishing unit in Surat, India

Polished distribution to top jewellery manufacturers &

retailers globally (B2B)

Diamond jewellery distribution to top retailers &

brands globally (B2B)

Diamond jewellery retailing to HNI customers–in India & Middle East(B2C)

Polished used in-house- jewellery manufacturing

units in Mumbai & Hosur,India

LONG-TERM SUPPLY CONTRACTS

Direct Rough Sourcing

APPROVED MANUFACTURER

• World-class infrastructure at Surat,measuring 100,000square feet.

• 900+ skilled workers.

• Overall production capacity per annum of over USD 300million.

• Product range – fine makes in round brilliant in all colours and clarities up to 5 carats, proprietary cuts and generic fancy shapes.

Manufacturing Facility-Loose Polished

• Production capacity of 750,000pieces per annum.

• Factory premises of 50,000 squarefeet at Mumbai and Hosur.

• Expertise in mass producedmachine-made jewellery and hand-made couture jewellery.

• In-house designers and productdevelopment team for key marketsand clients.

• Cater to major retailers and retailchains in the domestic andinternational jewellery markets.

Manufacturing Facility-Diamond Jewellery

Diamond setting

Laser

IN

HOUSE

C O L L E C T I O N S

A W A R D

W I N N I N G

DESIGNS

Get Unwired Flowers of Paradise

For All SeasonsDancing Flame

Distribution

Widespread marketing network present inmajor diamond consuming cities globally.

Our customer base comprises of jewellery manufacturers,independent retailers, large retail chains and e-commerce retailers,with increasing focus on large retail chains and e- commerceretailers to drive growth and value.

Well-balanced demand for our productsacrossregions.

•Participation in over 20 Domestic and International Trade Fairs and Buyer Seller meets.

•Product dissemination through Catalogues/ Brochures, Trade Magazine Ads, PR, E-mailers and Websites.

•Skilled photography and multimedia team enables us toprovide our clients with high-resolution product images andcreative designs.

Marketing

JEWELLERY BROCHURE BOOTH – IIJS, INDIA

JEWELLERY AD

Couture Jewellery Boutique:

• Our couture boutique, ex-factory Mumbai, caters exclusively to HNIcustomers.

• Besides offering a wide range of prêt diamond jewellery, we alsoundertake customized orders with jewellery design consultations forspecial occasions.

Retailing

Boutique, Mumbai

Quality Norms

De Beers BPP(Best Practice Principles)

RJCCertified Member

We represent the highest ethical, social, environmental and quality standards by adhering to international codes of practice -

Committed to the

Kimberley Process(a UN mandated system)

ISO 9001: 2015

(Certified by TUV NORD)

Canadian Diamond Code of Conduct

The Company shares corporate benefits with the

community and supports many charitable causes for

the betterment of the society.

• Focuses on community development projects,prioritizing local needs in the area of education,health, livelihood, environment and rehabilitationof disaster-hit areas to ensure long-termsustainable benefits.

• Contributes funds to trusts supporting eradication of hunger and poverty, education of girl child and the youth, women empowerment and medical aid to improve quality of life.

• Supports industry beneficiation programmes.

Corporate Social Responsibility

Health Care

Donated Mobile EyeClinics

Girl Child Education

INDUSTRY OVERVIEW

GEMS & JEWELLERY

Industry Overview - Global

• Global diamond jewellery sales increased by 4% toUSD 85.9 bn in 2018.

• The USA, which accounts for half of global diamondjewellery sales, showed 4% growth whereas Asia,which accounts for about 30% share, had acomparable growth of 5%. China remains the keysales driver in this region.

• Sales increased marginally in the US, China andJapan, whereas there has been a degrowth inEurope and India.

• The diamond market in all regions remainsunderpinned by the engagement and bridalsegment. Couples spent an average of USD 7,829on an engagement ring in 2018 in the USA, up anastonishing 56% from USD 5,023 in 2017.

• By 2020, more than 50% of global consumers willbe the Millennials and the Gen Z and will form therising new middle class with high disposable income.

2018 Global Retail Sales ofDiamond Jewellery

Gulf &Turkey9.2%

HK/China&Taiwan15.7%

USA 49.6%

Europe 7.8%

India 6.5%

ROW6.2% Japan

5.0%

Industry Overview - Domestic

• The Indian Gems and Jewellery industry contributed 12% toIndia’s total merchandise exports in FY19, down from 14%in FY18. Gross gems and jewellery exports from Indiadeclined to USD 39.68 bn in FY19, compared to USD 40.96bn in the previous year.

• While exports of cut and polished diamonds increasedmoderately by 0.42% to USD 23.8 bn, gold jewelleryexports grew by a impressive 24.6% to USD 12.03 bn inFY19.

• India’s domestic jewellery market, currently at market sizeUSD 60 bn, is expected to grow at a CAGR of 5.6% overFY19-23.

• The diamond consumer market in India is still under-

developed with 6.5% of world consumption. Only

10% of Indian women own a diamond, against 20% in China and 70% in the US.

• Organised jewellery retailers will corner 42% market shareand will maintain CAGR of 10-11% over FY19-23 on thebasis of fresh store additions at the rate of 17%, productmix favouring high-margin diamond jewellery andaggressive long-term promotional schemes.

OrganisedRetailers

UnorganisedRetailers

30%

42%

58%

70%

Inner Ring: Year 2018 Outer Ring: Year2023

FINANCIALS

Financial Performance-Consolidated

REVENUE BREAK-UP

TOTAL REVENUE

Diamonds Jewellery

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2014-15 2015-16 2016-17 2017-18 2018-19

3,9053,642

3,221 3,302 3,494

Rs. in Crore

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2014-15 2015-16 2016-17 2017-18 2018-19

2,7512,9792,877

3,048

470 425515 555 594

Rs. in Crore3,350

Financial Performance-Consolidated

EBITDA PAT

P/E

200180160140120100806040200

2014-15 2015- 16 2016-17 2017-18 2018-19

137130 129

188 189

Rs. in Crore

120

100

80

60

40

20

0

2014- 15 2015-16 2016-17 2017-18 2018-19

8274 66

109 115

Rs. in Crore

15

25

20

10

5

02014- 15 2015-16 2016-17 2017-18 2018-19

24

1516 16

10

in Rs.

EPS BOOK VALUE

DEBT EQUITY RATIO

Financial Performance-Consolidated

1

1.5

2.5

2

0.5

02014- 15 2015-16 2016-17 2017-18 2018-19

1.44 1.43

1.16

0.860.64

600

500

400

300

200

100

0

700

2014- 15 2015-16 2016-17 2017-18 2018-19

443489

525

615672

in Rs.

80

70

60

50

40

30

20

10

02014- 15 2015-16 2016-17 2017-18 2018-19

5146

41

6872

in Rs.

This investor presentation has been prepared by Asian Star Co. Ltd. (“Asian Star”) and does not constitute a

prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other

documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute

an offer. No representation or warranty, express or implied is made as to, and no reliance should be placed

on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein.

The information contained in this presentationis only current as of itsdate.

Certain statements made in this presentation may not be based on historical information or facts and may be

“forward looking statements”, including those relating to the general business plans and strategy ofAsian

Star, its future financial condition and growth prospects, future developments in its industry and its

competitive and regulatory environment, and statements which contain words or phrases such as ‘will’,

‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of

such expressions. These forward-looking statements involve a number of risks, uncertainties and other

factors that could cause actual results, opportunities and growth potential to differ materially from those

suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to

risks with respect to its Diamond business, its Jewellery business and its Retailing business.

Asian Star may alter, modify or otherwise change in any manner the content of this presentation, without

obligation to notify any person of such revision or changes. This presentation cannot be copied and

disseminated in any manner. No person is authorized to give any information or to makeany

representation not contained in and not consistent with this presentation and, if given or made, such

information or representation must not be relied upon as having been authorized by or on behalf of Asian

Star. This presentation is strictlyconfidential.

Disclaimer

www.asianstargroup.com