Sheela Foam Ltd. · NSE:SFL
Sheela Foam — Investor Presentation (2017)
32 slides from Sheela Foam's investor presentation, 2017
Slide 1: Sheela Foam Limited
2 Sheela Group ISO 9001 Certified Sheela Foam Limited é¢ "Sista ee te i be + Sleep is that golden chain that ties — ~ _ health and our bodies together. sleepedia a
Slide 2: Agenda
I. Introduction to Sheela Foam Limited II. Overview of the Indian mattress and PU Foam industries III. Investment thesis IV. Operational and financial performance V. Strategy and outlook Appendix 2
Slide 3: Overview of Sheela Foam Limited
Overview of Sheela Foam Limited India Business Australia Business Background: Established in 1971, Sheela Foam Limited (“Sheela Foam” or Background: Sheela Foam has a strong presence in Australia through its the “Company”) manufactures mattresses, other foam-based home comfort wholly owned subsidiar
Slide 4: Evolution of Sheela Foam as the leading manufacturer of mattresses and PU Foam in India
Evolution of Sheela Foam as the leading manufacturer of mattresses and PU Foam in India Sheela Foam gets Listed in New business initiatives 2013: Merger 2016 with SNB Capital expenditure Bedding International, Merger / Acquisition / JV / RG Pillow Listing (India), Kanpav Overseas and Auora Foams 201
Slide 5: Product portfolio
Product portfolio Home comfort products Technical foam products Product Product lines Product Product lines End-use industries My Mattress, Spring range, Technology range, Back Seat covers, Sound absorption systems, Automotive Poly-ester foam, Mattresses support range, Flexi PUF range, Showroom rang
Slide 6: Agenda
I. Introduction to Sheela Foam Limited II. Overview of the Indian mattress and PU Foam industries III. Investment thesis IV. Operational and financial performance V. Strategy and outlook Appendix 6
Slide 7: Indian mattress market is set to reach ~INR 140 bn by the fiscal year 2021
Indian mattress market is set to reach ~INR 140 bn by the fiscal year 2021 1 • India mattress industry, comprising rubberized coir, polyurethane foam and Indian mattress market (INR bn) spring mattresses, is estimated at INR 85-90 billion as of fiscal year 2016 CAGR 130-140 2 85-90 • The industry ha
Slide 8: Organized mattress market in India is placed favorably for PU Foam mattresses
Organized mattress market in India is placed favorably for PU Foam mattresses PU Foam mattresses account for the highest (~50%) share of the organized mattress market in India • PU Foam mattresses account for 49-51% share of the organized market Indian organized mattress market by type • The dominan
Slide 9: Indian flexible PU foam market is set to reach ~INR 90 bn by the fiscal year 2021
Indian flexible PU foam market is set to reach ~INR 90 bn by the fiscal year 2021 Types of polyurethane foam Key applications • Mattress • Carpet • Footwear Slabstock • Furniture underlay • Acoustic • Bedding • Garments insulation Flexible PU foam Moulded • Automotive seating Polyurethane foam • Ref
Slide 10: Agenda
I. Introduction to Sheela Foam Limited II. Overview of the Indian mattress and PU Foam industries III. Investment thesis IV. Operational and financial performance V. Strategy and outlook Appendix 10
Slide 11: Key competitive strengths
Key competitive strengths 1 Well recognized and established brand built over consistent quality and innovation 2 Extensive and well developed pan-India sales and distribution network 3 Quality manufacturing capabilities and technological innovation 4 Integrated operations and economies of scale 5 We
Slide 12: Well recognized and established brand built over consistent quality and innovation
1 Well recognized and established brand built over consistent quality and innovation Launched in 1994 Developed through “innovation”… …and personalization / customization… Radio frequency identification (“RFID”) chips in mattresses An initiative whereby mattresses are suggested that are helps check
Slide 13: Extensive and well developed pan-India sales and distribution network
2 Extensive and well developed pan-India sales and distribution network Pan-India network of exclusive distributors and retail dealers for home-comfort products Long term Most distributors have been associated with the Company for over 20 years association 1101+ Strategic Exclusive distributors are
Slide 14: Quality manufacturing capabilities and technological innovation
3 Quality manufacturing capabilities and technological innovation • 11 manufacturing facilities in India Large production • All facilities manufacture home comfort products, while five of these also capacity Kala Amb (HP) manufacture PU Foam with a total capacity of 123,000 TPA Rajpura (Punjab) Sahi
Slide 15: Integrated operations and economies of scale
4 Integrated operations and economies of scale The Company benefits from synergized business operations through the manufacture of home comfort products as well as Backward integration the underlying foam; As a result of this, the Company does not source PU Foam from external suppliers Six of the ma
Slide 16: Well qualified and professional management
5 Well qualified and professional management Sheela Gautam Chairperson Emeritus Over 45 years of experience in the business of manufacture of home comfort products and polyurethane foam Holds a bachelor’s degree in education and a bachelor’s degree in arts from Lucknow University Was a member of the
Slide 17: Agenda
I. Introduction to Sheela Foam Limited II. Overview of the Indian mattress and PU Foam industries III. Investment thesis IV. Operational and financial performance V. Strategy and outlook Appendix 17
Slide 18: Summary operational and financial performance – Standalone
Summary operational and financial performance – Standalone Ramp-up in the production volumes of foam… …has led to a strong growth in revenue… Production volumes of foam (tonnes)3 Net revenue from operations (INR mn) 14,459 44,119 12,650 40,121 42,577 11,359 35,214 10,025 8,854 7,395 2013-14 2014-15
Slide 19: Summary operational and financial performance – Consolidated
Summary operational and financial performance – Consolidated Ramp-up in the production volumes of foam… …has led to a strong growth in revenue… Production volumes of foam (tonnes)3 Net revenue from operations (INR mn) 51,095 53,831 47,893 17,500 42,314 8,518 9,712 15,500 7,772 14,177 3,041 7,100 12,
Slide 20: Agenda
I. Introduction to Sheela Foam Limited II. Overview of the Indian mattress and PU Foam industries III. Investment thesis IV. Operational and financial performance V. Strategy and outlook Appendix 20
Slide 21: Strategy going forward (1 of 2)
Strategy going forward (1 of 2) Continue building brand leadership in core home comfort products, such as mattresses and bedding material, as well as higher-grade technical PU Foam lines which represents a significant opportunity for our future growth Continue to develop Consolidate customer recall
Slide 22: Strategy going forward (2 of 2)
Strategy going forward (2 of 2) Further develop the domestic sales network in two types of territories: • Characterized by lower transportation costs Expand distribution • Significant demand of the Company’s products, where price-points can effectively offset higher transportation costs network and
Slide 23: Appendix
I. Introduction to Sheela Foam Limited II. Overview of the Indian mattress and PU Foam industries III. Investment thesis IV. Operational and financial performance V. Strategy and outlook Appendix 23
Slide 24: Appendix I: Shareholding pattern as of June 30, 2017
Appendix I: Shareholding pattern as of June 30, 2017 S.N. Name of shareholder # Equity shares % shareholding Promoters Ms. Sheela Gautam 17,561,8801 36.00 Mr. Rahul Gautam 9,955,419 20.41 Polyflex Marketing Private Limited 65,51,373 13.43 Promoter Group Ms. Namita Gautam 5,715,879 11.72 Mr. Tushaar
Slide 25: Appendix II: Organization structure
Appendix II: Organization structure Managing Director Director Director Director CSR Sales &Marketing Busi. & Tech. Development CIO COO CFO CHRO Head SCM Head Fire Head Projects Safety HOS Head Marketing Bedding HOD - EZ Head R&D HOD - WZ HOS HOS HOS Tech & Export Furniture Cushioning Industrial Gra
Slide 26: Appendix III: Major awards
Appendix III: Major awards Year Award 2008 CNBC-NASSCOM IT User award for ‘Best IT adoption in manufacturing – SME Sector’ 2009 EDGE award for usage of IT for maximizing business impact CIO Green Edge award 2010 CIO 100 Honouree award for excellence in strategic enterprise IT deployment EDGE award f
Slide 27: Appendix IV: Financial Statements (Restated Consolidated)
Appendix IV: Financial Statements (Restated Consolidated) Select Balance Sheet Items Particulars (INR mn) As at March 31 2017 2016 2015 2014 2013 2012 I. Equity and Liabilities Shareholder’s funds (A) 4,633.92 3,384.35 2,450.39 1,965.65 1,695.19 1,377.53 Minority Interest (B) -- -- -- -- -- 12.80 No
Slide 28: Appendix IV: Financial Statements (Restated Consolidated)
Appendix IV: Financial Statements (Restated Consolidated) Select Income Statement Items For the year ended March 31 (in INR mn) Particulars 2017 2016 2015 2014 2013 2012 Income Revenue from operations 19,116.47 16,961.87 15,533.10 13,964.43 12,644.84 11,282.55 Less: Excise duty 1,616.52 1,461.97 1,3
Slide 29: Appendix IV: Financial Statements (Restated Consolidated)
Appendix IV: Financial Statements (Restated Consolidated) Select Cash Flow Statement Items For the year ended March 31 (in INR mn) Particulars 2017 2016 2015 2014 2013 2012 Net Cash Flow from Operating Activities (A) 1,216.13 1,763.59 1,473.09 1,244.27 972.52 597.91 Net Cash from Investing Activitie
Slide 30: Appendix V: Financial Statements (Restated Standalone)
Appendix V: Financial Statements (Restated Standalone) Select Balance Sheet Items As at March 31 Particulars (in INR mn) 2017 2016 2015 2014 2013 2012 I. Equity and Liabilities Shareholder’s funds (A) 4,210.14 3,105.34 2,203.14 1,858.74 1,608.68 1,347.15 Non-current liabilities Long-term borrowings
Slide 31: Appendix V: Financial Statements (Restated Standalone)
Appendix V: Financial Statements (Restated Standalone) Select Income Statement Items For the year ended March 31 (in INR mn) Particulars 2017 2016 2015 2014 2013 2012 Income Revenue from operations 16,075.10 14,112.46 12,715.14 11,278.92 10,008.58 8,167.76 Less: Excise duty 1,616.52 1,461.98 1,356.4
Slide 32: Appendix V: Financial Statements (Restated Standalone)
Appendix V: Financial Statements (Restated Standalone) Select Cash Flow Statement Items For the year ended March 31 (in INR mn) Particulars 2017 2016 2015 2014 2013 2012 Net Cash Flow from Operating Activities (A) 1,024.35 1,705.90 1,102.62 1,206.27 763.71 334.81 Net Cash from Investing Activities (