Sheela Foam Ltd. · NSE:SFL
Sheela Foam — H1 FY2023 Earnings Presentation
37 slides from Sheela Foam's earnings presentation, Dec 1, 2022
Slide 1: Exchange filing cover letter: Investor presentation
Date: December 01, 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: Inv
Slide 2: Sheela Foam Ltd. Investor Presentation – November
Sheela Foam Ltd. Investor Presentation – November
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
Slide 5: 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. • 35,000 21.00% The Company manufactures various foam-based home comfort products like mattresses, furniture cushion
Slide 6: Board of Directors
Board of Directors Rahul Gautam Chairman & Managing Director Som Mittal Independent Director He has been associated with the Company since 1971 and been our Managing Director He has been associated with the Company since 7 June, 2016. He holds a Bachelor’s degree since 1 April, 1996. He holds a Bach
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 INDIA Jabalpur (upcoming Mfg. plant) Nandigram • 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 s
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
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Slide 17: Product Mix
Product Mix Mattresses segmentation Comfort Foam and Home Care My Mattress, Spring Range, Products Technology Range, Custom Cell Range, Back Support Range, Flexi PUF Foam Sheets, Foam Blocks, Comfort range Range, Showroom Range, Economy 41% 21% accessories, Foam Cores, Furniture Cushions, Range, Sle
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 4,540 accessories, auditoriums, hospital beds, and various other industries, enhancing comfort and convenience in our surroundings. 3,222 3,233 2,688 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
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 Australia - • The company is setting up a new • Capex on India operations
Slide 28: Raw Material Prices and Gross Margins
Raw Material Prices and Gross Margins TDI & Polyol Price Trend (INR/kg) SFL Consolidated Gross Margins (%) 267 44.6% 227 39.9% 39.1% 39.8% 212 248 37.4% 200 203 178 174 173 131 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23 Q2-FY23 TDI POLYOL Gross Margins (%) SFL India Aust
Slide 29: Historical Financial Overview
Historical Financial Overview
Slide 30: Historical Standalone Income Statement
Historical Standalone Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 FY22 H1-FY23 Operational Revenue 18,138 17,548 16,939 21,244 10,478 Operating Expenses 16,302 15,278 14,566 18,906 9,399 EBITDA 1,835 2,270 2,373 2,338 1,079 EBITDA Margins (%) 10.12% 12.94% 14.01% 11.01% 10.30% Other Income
Slide 31: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet PARTICULARS (INR Mn) FY21 FY22 H1-FY23 PARTICULARS (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY & LIABILITIES Non-current Assets 8,497 11,159 10,020 Equity 10,134 12,095 12,972 Property, Plant & Equipment 2,536 2,350 2,354 (A) Share Capital 244 244 244 Capital Work In
Slide 32: Historical Consolidated Income Statement
Historical Consolidated Income Statement PARTICULARS (INR Mn) FY19 FY20 FY21 FY22 H1-FY23 Operational Revenue 21,414 21,736 24,372 29,818 14,513 Operating Expenses 19,305 18,732 20,730 26,669 13,071 EBITDA 2,109 3,004 3,642 3,149 1,442 EBITDA Margins (%) 9.85% 13.82% 14.94% 10.56% 9.94% Other Income
Slide 33: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet PARTICULARS (INR Mn) FY21 FY22 H1-FY23 PARTICULARS (INR Mn) FY21 FY22 H1-FY23 ASSETS EQUITY & LIABILITIES Non-current Assets 12,381 15,589 14,794 Equity 11,932 14,002 14,995 Property, Plant & Equipment 4,300 4,355 5,568 (A) Share Capital 244 244 244 Capital Work
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% 29,818 4,000 3,642 30.00% 2,402 2,500 25.00% 3,500 3,149 2,187 3,004 25.00% 24,372 3,000 1,943 21,736 2,000 20.00% 21,414 20.00% 2,500 2,109 1,500 1,337 15.00% 14
Slide 35: Capital Market Information
Capital Market Information 1- year Stock Performance (Up to 30th September 2022) 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Sheela Foam Midcap Index Sensex Shareholding Pattern as on 30th September 2022 Price Data as o
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