Sheela Foam Ltd. · NSE:SFL
Sheela Foam — Investor Presentation (March 2022)
37 slides from Sheela Foam's investor presentation, Mar 15, 2022
Slide 1: Exchange cover letter for investor presentation
Date: March 15, 2022 To The Secretary The Manager, (Listing Department) The National Stock Exchange India Limited The BSE Limited Exchange Plaza, Bandra Kurla Complex Phiroze Jeejeebhoy Towers Bandra(E), Mumbai-400051 Dalal Street, Mumbai-400001 BSE Scrip Code: 540203 NSE Symbol: SFL Subject: Invest
Slide 2: Sheela Foam Ltd. Investor Presentation – March 2022
Sheela Foam Ltd. Investor Presentation – March 2022
Slide 3: Company Snapshot
Company Experienced Snapshot Management ‘Sleepwell’ mattresses a Backward Integrated household Brand and Player with a wide one of the most trusted product basket brands in India Largest 20-25% Market Share 40% market share in Presence across manufacturers of PU in the Mattresses Australia multiple
Slide 4: Company Overview
Company Overview • Incorporated in 1971, Sheela Foam is the market leader and the largest manufacturer of Polyurethane Foam (PU) Revenue , EBITDA (INR Mn), EBITDA Margin (%) in India. • The Company manufactures various foam-based home comfort products like mattresses, furniture cushions, as 30, 000
Slide 5: Company Overview
Company Overview Investor Presentation March 2022 4
Slide 6: Board of Directors
Board of Directors Rahul Gautam Chairman & Managing Director Vijay Kumar Chopra Independent Director He has been associated with the Company since 1971 and been our Managing Director since 1 April, 1996. He holds a Bachelor’s degree in Technology - Chemical Engineering He has been associated with th
Slide 7: Key Management Personnel
Key Management Personnel Nikhil Datye Group Chief Financial Officer He has been associated with our Company for one year. He is a qualified Chartered Accountant and did his Chartered Accountancy in the year 2000. He comes with more than two decades of management experience in Finance, Supply Chain a
Slide 8: Timeline
Timeline Many awards won including Set up a new Subsidiary called the Star SME of the Year by as International Comfort Sheela Foam’s Limited The Company introduced Major acquisition to Business Standard; Silver Technologies to focus on key journey begins from rubberized coir products expand operatio
Slide 9: Geographical Presence
Geographical Presence INDI Jabalpur (upcoming Mfg. plant) Nandigram A • Currently operating 11 manufacturing facilities in India. Upcoming 12th manufacturing plant in Jabalpur for Foaming and Foam processing Leading manufacturer of Mattresses and PU Foam • Dispersed manufacturing plants to cater to
Slide 10: Manufacturing Facilities
Manufacturing Facilities 11 Manufacturing Units in India Pioneers in Vertical Variable Pressure Foaming (VPF) – World’s most environmentally responsible foam manufacturing and is equipped with state of the art HENNECKE Foaming machines Spain Unit Largest Integrated Manufacturer of PU Foam and ‘Bed i
Slide 11: Prominent Dealer-Distribution Network
Prominent Dealer-Distribution Network Most distributors have been associated with the company for more than 20+ years Exclusive distributors are in strategic proximity to the manufacturing facilities, hence it helps reduce carriage fees and Well-integrated with the Company’s IT minimizes product dam
Slide 12: Social Media and BTL Marketing efforts
Social Media and BTL Marketing efforts • Consistently expanding BTL Marketing efforts for its legacy brands like Sleepwell, FeatherFoam, etc. • Revitalizing E-commerce marketing by using content marketing in order to cater to the urban population. • Sleep X, the e-commerce brand from Sheela Foam, ha
Slide 13: Branded Portfolio
Branded Portfolio Australian subsidiary Joyce Inc Spanish subsidiary Interplasp Inc Investor Presentation | Sheela Foam Ltd. 12
Slide 14: Marquee Clients
Marquee Clients Mattress Industry Furniture Industry Automotive Lamination Industry Peeling Industry Acoustic Industry Investor Presentation | Sheela Foam Ltd. 13
Slide 15: Awards and Accolades
Awards and Accolades Investor Presentation | Sheela Foam Ltd. 14
Slide 16: Business Overview
Business Overview Investor Presentation March 2022 15
Slide 17: Product Mix
Product Mix Mattresses segmentation 44%: Comfort Foam and Home Care My Mattress, Spring Range, Products 23%: Technology Range, Custom Cell Range, Back Support Range, Flexi PUF Foam Sheets, Foam Blocks, Comfort range Range, Showroom Range, Economy accessories, Foam Cores, Furniture Cushions, Range, S
Slide 18: Mattresses
Mattresses • Household Brand ‘Sleepwell’ was established in 1994 and over time has become one of the most popular mattresses brands in India. • The company continuously invests in Research and Innovation and has taken consistent efforts to improve its product portfolio. • These products have a price
Slide 19: Comfort Foam and Home Care Products
Comfort Foam and Home Care Products • Comfort Foam products are Industrial grade products that find their applications in mattress manufacturing, sofa manufacturing, and others. • The company forayed into the Home accessories segment with an aim to expand their strategic offerings. • Comfort Accesso
Slide 20: Technical Foam
Technical Foam Revenues (INR Mn) Technical products offered by Sheela Foam find diverse applications in home furnishings, car seats, clothes and accessories, auditoriums, hospital beds, and various other industries, enhancing comfort and convenience in our 3,600 surroundings. 3,222 3,233 3,232 Produ
Slide 21: Furniture Foam
Furniture Foam • Being one of the largest producers of PU Foam in India, Sheela Foam has expanded into allied segments to create more value for its product portfolio. • Furniture cushioning is one of the most important part of furniture like Sofa Sets, Chairs, Custom Sofas, Sofa cum bed, etc. Furnit
Slide 22: Australia
Australia • Sheela Foam has a strong presence in Australia through its wholly owned subsidiary, Joyce Foam Pty Ltd (“Joyce Foam”) • The company acquired the business of manufacturing of PU Foam and polystyrene products of three Australian companies, namely, Joyce Corporation Limited, Joyce Indpac Li
Slide 23: Spain
Spain • Sheela Foam has a strong presence in Europe through its wholly-owned subsidiary ‘Interplasp’. • Interplasp is one of the best European flexible polyurethane foam manufacturers characterized by a strong technological base and innovation. • It has a modernized manufacturing facility at Yecla i
Slide 24: Industry & Strategic Overview
INDUSTRY & STRATEGIC OVERVIEW Investor Presentation March 2022 23
Slide 25: Industry Fundamentals
Industry Fundamentals • The Indian mattress market is expected to grow at a CAGR of 10% and is en route to attaining an INR 18,000 Cr mark by the year 2022. • Indian market is fragmented with a large number of branded and non-branded players present in the market selling variety of mattresses with l
Slide 26: Growth Drivers
Growth Drivers Rising share of the organized sector With the growth of international players and branded companies, consumers are shifting from traditional, low-quality products to branded mattresses. The shift in demand for WFH Culture better quality and customized products has been resulting in a
Slide 27: Capacity Expansion Plans
Capacity Expansion Plans India- Domestics Operations Capex Distribution • 65% - 70% of the Population sleeps on Dari, Chaitai and this represents the opportunity in the Low– Australia Operations Value Economy mattress segment • Capex on India operations would be focused on Australia - • The company
Slide 28: Raw Material Prices and Gross Margins
Raw Material Prices and Gross Margins TDI & Polyol Price Trend (INR/kg) SFL Consolidated Gross Margins (%) 49.2% 43.7% 43.4% 251 204 38.5% 177 134 197 128 171 115 FY19 FY20 FY21 9M-FY22 FY19 FY20 FY21 9M-FY22 TDI POLYOL Gross Margins (%) SFL India Australia - Joyce Spain - Interplasp 48.3% 38.8% 43.
Slide 29: Historical Financial Overview
Historical Financial Overview
Slide 30: Historical Standalone Income Statement
Historical Standalone Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 9M-FY22 Operational Revenue 18,138 17,548 16,895 15,608 Operating Expenses 16,302 15,278 14,566 13,820 EBITDA 1,835 2,270 2,329 1,788 EBITDA Margins (%) 10.12% 12.94% 13.78% 11.46% Other Income 305 413 518 551 Depreciation 31
Slide 31: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet PARTICULARS (INR MN) FY19 FY20 FY21 H1-FY22 PARTICULARS (INR MN) FY19 FY20 FY21 H1FY22 ASSETS EQUITY & LIABILITIES Non-current Assets 4,334 5,808 8,497 10,008 Equity 6,691 8,301 10,134 11,072 Property, Plant & Equipment 2,654 2,542 2,536 2,454 (A) Share Capital 24
Slide 32: Historical Consolidated Income Statement
Historical Consolidated Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 9M-FY22 Operational Revenue 21,414 21,736 24,354 22,182 Operating Expenses 19,305 18,732 20,731 19,751 EBITDA 2,109 3,004 3,623 2,431 EBITDA Margins (%) 9.85% 13.82% 14.88% 10.96% Other Income 276 400 521 634 Depreciation 3
Slide 33: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet PARTICULARS (INR MN) FY19 FY20 FY21 H1-FY22 PARTICULARS (INR MN) FY19 FY20 FY21 H1-FY22 ASSETS EQUITY & LIABILITIES Non-current Assets 4,761 8,870 12,381 13,962 Equity 7,301 9,264 11,932 12,935 Property, Plant & Equipment 3,396 4,204 4,579 4,856 (A) Share Capita
Slide 34: Consolidated Financial Performance
Consolidated Financial Performance Revenues (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) PAT (INR Mn) and PAT Margins (%) 3, 000 30. 00% 24,354 4, 000 3,623 30. 00% 2,402 2, 500 25. 00% 3,004 3, 500 25. 00% 3, 000 1,943 2,431 20. 00% 2, 000 1,694 20. 00% 22,182 2, 500 2,109 14.88% 13.82% 1,337 21
Slide 35: Capital Market Information
Capital Market Information 1-Year Stock Performance (Up to 31st December 2021) Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Jul/21 Aug/21 Sep/21 Oct/21 Nov/21 Dec/21 Sheela Foam Sensex Price Data as on 31st December, 2021 INR Shareholding Pattern as on 31st December 2021 Face Value 5.00 Promoters CMP 3
Slide 36: 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 37: Thank You
THANK YOU Investor Presentation March 2022 36