Sheela Foam Ltd. · NSE:SFL
Sheela Foam — Investor Presentation (August 2023)
32 slides from Sheela Foam's investor presentation, Aug 10, 2023
Slide 1: Exchange filing cover letter for corporate presentation
10th August, 2023 To The BSE Limited The National Stock Exchange India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai-400001 Bandra(E), Mumbai-400051 Scrip Code: 540203 NSE Symbol: SFL Subject: Corporate Presentation for the Investor Meet to be held from
Slide 2: Corporate Presentation August 2023
Corporate Presentation August 2023 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 3: Disclaimer
Disclaimer 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 the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 4: Company Overview
@ SheelaFoam Company Overview
Slide 5: Legacy of Delivering Comfort
Legacy of Delivering Comfort 2 # of Countries with Leading Mattress International Brand3 Operations ~19% 42 Market Share in # of Key Acquisitions Branded Modern Mattress Market INR2,031 Mn / ~INR112 Bn1 INR433 Mn Market Cap (~7%) / (~7%) FY23 / Q1FY24 PAT INR2,973 Mn / INR28,733 Mn / INR777 Mn INR6,
Slide 6: Evolution Driven by Strong Organic and Inorganic Growth
Evolution Driven by Strong Organic and Inorganic Growth, Coupled with Driving Penetration Founded by Acquired Joyce, IPO Listing Increased focus on ‘A Mattress for Chairperson Australia1 high growth future Every Indian’ - Emeritus Mrs. businesses Upcoming Sheela Gautam - Economy plant in Jabalpur ma
Slide 7: Integrated Approach Bringing in Economies of Scale
Integrated Approach Bringing in Economies of Scale Technical experts bringing in economies of scale through multi-industry applications for products Home Comfort (~74% of Revenue) Technical Foam (~26% of Revenue) Mattresses Comfort Foam and Home Care Furniture Foam Products 41% 21% 12% 26% Note: Dat
Slide 8: Our Combined & Enduring Strengths
Our Combined & Enduring Strengths
Slide 9: Our Combined and Enduring Strengths
Our Combined and Enduring Strengths Market leader with strong Extensive pan-India sales and brands distribution Leader in domestic branded modern 6,100+ EBOs and 12,000+ MBOs2,4 mattress market1 Optimal manufacturing Replicating India success footprint in India internationally 11 facilities of Sheel
Slide 10: Well-positioned to Capture Growth in Mattress Segment By Being Across the Pyramid
Well-positioned to Capture Growth in Mattress Segment By Being Across the Pyramid Indian mattress market is expected to demonstrate strong growth owing to consumer driven factors such as increasing population, rising urbanization and increase in disposable income Sizable Branded Play with Significan
Slide 11: Leading Brands with Market Leadership
Leading Brands with Market Leadership Market Leader in the Branded Modern Mattress Market in India 38-44% #1 Player with ~29% share in the domestic 29% branded modern mattress market 11% 12-14% 9-11% 19% 5-7% Sleepwell + Kurlon Competitor A Competitor B Competitor C Others With A Strong Position Acr
Slide 12: Backed by Continuous Innovation "Zero Turn" Technology
Backed by Continuous Innovation Focus leading to a track record of quality & consistent innovation Track record of innovative manufacturing backed by technology Comfort Cell RFID Chips Track Record of New technology to raise the Helping Innovation comfort quotient for the check counterfeits consumer
Slide 13: Extensive Pan-India Sales and Distribution
Extensive Pan-India Sales and Distribution Complimentary distribution network of EBOs and MBOs to further expand presence for both brands Exclusive Brand Outlets1 Multi-Brand Outlets1 Bolsters Customer Connect Larger Universe of Outlets Ease in Premiumization Drives Access Faster Feedback Loop Expan
Slide 14: Optimal Manufacturing Footprint in India
Optimal Manufacturing Footprint in India Pan-India coverage through 21 facilities to be closer to the end markets Complementary Network ‘A Mattress for Every Indian’ No City Overlap in Manufacturing Facilities ◼ Setting up an integrated manufacturing plant at Jabalpur to cater the traditional market
Slide 15: Transformational Transaction: #1 Player in Domestic Market
Transformational Transaction #1 Player in Domestic Market Acquisition of Kurlon, once completed, is expected to strengthen Sheela Foam’s leadership position Combined Business Market Share ~19% ~11% ~29% (FY23) (#1 player in India) (#3 player in India) (>2x of #2 player) Geographic Strong positioning
Slide 16: Sheela Foam Can Unlock Significant Synergies: Kurlon
Sheela Foam Can Unlock Significant Synergies Kurlon: 3rd Largest Organized Player in the Modern Mattress Segment Company Overview Continue to Strengthen Customer Connect – Brand Heritage ◼ Founded in 1962, Kurlon manufactures various foam-based home comfort products – “Sit and Sleep” solutions such
Slide 17: Sheela Foam Can Unlock Significant Synergies: Furlenco
Sheela Foam Can Unlock Significant Synergies Furlenco: Expansion into the Large Furniture Market in India Company Overview Significantly Larger Addressable Market ~4.4x Mattress Furniture ◼ Incorporated in 2012, House of Kieraya (“Furlenco”) is a Industry ~INR341bn Industry INR1,500bn+ furniture ren
Slide 18: Replicating India Success Internationally
Replicating India Success Internationally Robust global B2B business developed on the back of strong technical capabilities Australia (15% of FY23 Revenue) Spain (14% of FY23 Revenue) Australia Spain Sydney Perth Canberra Yecla Adelaide Melbourne ~40% 10k 16k Bed in a Box Market MTPA MTPA To Target
Slide 19: Talent and Culture
Talent and Culture Experienced management team resulting in high corporate governance standards Visionary leadership team… Rahul Gautam, Chairman and Managing Director Tushaar Gautam, Whole-Time Director ◼ Associated with Sheela Foam since 1971 ◼ Heads the R&D division for Sheela Foam ◼ 40+ years of
Slide 20: Strategic Priorities to Drive Future Growth
Strategic Priorities to Drive Future Growth
Slide 21: Strategic Priorities to Drive Future Growth
Strategic Priorities to Drive Future Growth Expanding in Being Closer to Capturing the Driving Complementary Customers Entire Market Penetration Categories 16
Slide 22: Being Closer to Customers
Strategic Priorities to Drive Future Growth Being Closer to Customers Focus on customer experience through a conscious investment on brand building and expanding network Continuous Investments in Brand Building… …Backed by an Expanding Brand Presence Innovative campaigns to increase brand recall Exp
Slide 23: Capturing the Entire Market
Strategic Priorities to Drive Future Growth Capturing the Entire Market Capturing the addressable market by presence across products, price points and distribution channels Products Price Distribution1 5,600+ for SFL & 500+ for Kurlon 7,500+ for SFL & 4,500+ for Kurlon Note: 1. Data as of Mar 31, 20
Slide 24: Driving Penetration by Democratization
Strategic Priorities to Drive Future Growth Driving Penetration by Democratization Increasing penetration through acquired brands and channel expansion, supplemented by organic expansion ■ New plant in Jabalpur to allow cheaper production of foam mattresses using Variable Capex: c.INR1bn1 Technology
Slide 25: Continuing to Expand in Complimentary Categories
Strategic Priorities to Drive Future Growth Continuing to Expand in Complimentary Categories Driving growth by continuing to expand in newer complimentary categories on the back of core technical strengths Continuously Expanding in Complimentary Categories New leg of Furlenco growth Investment1 Bene
Slide 26: Financial Track Record
@ SheelaFoam Financial Track Record
Slide 27: Consistent Financial Track Record
Consistent Financial Track Record Proven growth and profitability metrics Revenue Gross Margin INRmn 40% 41% 46% 41% 32% 35% 36% 28,656 28,733 9,984 9,987 10,188 8,789 9,263 24,372 7,904 21,414 21,736 19,653 2,306 6,451 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY18 FY19 FY20 FY21 FY22 FY23 Q1FY24 Gross
Slide 28: Consistent Financial Track Record: Cash Flow and Working Capital
Consistent Financial Track Record Superior cash flow generation backed by lower capex and working capital requirements Cash Flow from Operations Capex INRmn INRmn 2,539 2,099 2,120 1,971 1,555 1,573 1,429 1,337 1,379 819 633 521 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Working Cap
Slide 29: Appendix
@ SheelaFoam Appendix
Slide 30: Group Structure
Group Structure Sheela Foam 100% ~94% 100% ~95% 35% Joyce Foam Interplasp Staqo Kurlon Furlenco (Australia) (Spain) Acquisition in Progress 23
Slide 31: Raw Material Prices
Raw Material Prices Key raw material prices have declined during FY23 TDI Price Trend (INR/KG) 300 267 251 248 243 231 205 200 177 134 100 FY23 Trends 0 2019 2020 2021 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Polyol Price Trend (INR/KG) 300 FY23 Trends 197 200 171 174 128 131 119 130 115 100 0 2019 2020
Slide 32: Thank you
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