Sheela Foam Ltd. · NSE:SFL
Sheela Foam — Investor Presentation (May 2022)
37 slides from Sheela Foam's investor presentation, May 25, 2022
Slide 1: Investor presentation cover letter to exchanges
€ sleepwell Date: May 25, 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 Subje
Slide 2: Sheela Foam Ltd.
“ SHEELA GROUF Sneela Foam Lta. ew!
Slide 3: Company Snapshot
D SHEELA GROUP YEARS OF EXCELLENCE AD SHEELA GROUP 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 manufa
Slide 4: Company Overview
Company Overview D SHEELA GROUP ¢ — 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 cushi
Slide 5: Company Overview
COmpany Overview Investor Presentation March 2022
Slide 6: Board of Directors
Board of Directors D SHEELA GROUP Rahul Gautam Chairman & Managing Director Vijay Kumar Chopra Independent Director He has been associated with the Company since 1971 and been our Managing Director Fe | po | He has been associated with the company since 7 June, 2016. He is a fellow member of the sin
Slide 7: Key Management Personnel
| Key Management Personnel D SHEELA GROUP 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 Financ
Slide 8: Timeline
| Timeline SHEELA GROUP 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 rubberized coir products expand operations me
Slide 9: Geographical Presence
| Geographical Presence D SHEELA GROUP Rajpura (Purifier (HP) Sahibabad (UP) Surajpur (UP) iia ur) & INDI Jaljalpaiguri ri (WB)(WB * Jabalpur (upcoming Mfg. plant) Nandigram esiivassd oan Haveli) Talwada (Gujarat) Hyderabad (Telangana) * PU Foam manufacturing Erode (Tamil Nadu)x and processing @ PU
Slide 10: Manufacturing Facilities
| Manufacturing Facilities D SHEELA GROUP 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 P
Slide 11: Prominent Dealer-Distribution Network
| Prominent Dealer-Distribution Network 2 SO wszsate| 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 minim
Slide 12: Social Media and BTL Marketing efforts
|| Social Media and BTL Marketing efforts eo her | * Consistently expanding BTL Marketing efforts for its legacy brands like Sleepwell, . vee aod ol FeatherFoam, etc. “a a * Revitalizing E-commerce marketing by using content marketing in order to cater to z : the urban population. Se aes * Sleep X,
Slide 13: Branded Portfolio
|| Branded Portfolio } sleepuvell ~< featherfoam From the house of Sleepwell From GAS the house o S—IiEEPX J 0) l ( p (O Sass interplasp Australian subsidiary Joyce Inc Spanish subsidiary Interplasp Inc nvestor Presentation | Sheela Foam Ltd.
Slide 14: Marquee Clients
|| Marquee Clients DA SO wzsssiee| SHEELA GROUP Mattress Industry gy TN EROcOM HOF relaxwell Rec\iners INDIA UPAS MATTRESS i* ES ¢ Ce MATTRESSES Rubberised Coir Products Furniture Industry . w. d Urban Ladder oa ABOUT Indian Artware Sie HOME BAS AWD) 4 3 Let’s Create DESIGN PVT LTD Where Siye Meets
Slide 15: Awards and Accolades
Awards and Accolades BD SHEELA GROUP Great Place Gee, Lie Kee To Ie SHEELA FOAM LTD. HONOREE Work. ital FORTUNE 500 USSU staat) Certified ov LT le ng eed 'INDIA'S MOST TRUSTED BRAND’ INDIA BY INDIA TODAY Business Pergon ofthe Year Rahul Gautai Sheela Foam Ltd. When small be 1g, = ** AWARDED AS «+ *
Slide 16: B Oh crv! =~! Nf
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Slide 17: Product Mix
| Product Mix om Mattresses segmentation 42%: Comfort Foam and Home Care My Mattress, Spring Range, Products 24%: 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, Ran
Slide 18: Mattresses (Sleepwell)
* 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 range from
Slide 19: Comfort Foam and Home Care Products
| Comfort Foam and Home Care Products SHEELA GROUP * 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. *
Slide 20: Technical Foam
Technical Foam D SHEELA GROUP 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 4,540 surroundings. 3,600 3,
Slide 21: Furniture Foam
J) Furniture Foam * Being one of the largest producers of PU Foam in India, Sheela Foam has expanded into allied om 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.
Slide 22: Australia
|| Australia SHEELA GROUP | * Sheela Foam has a strong presence in Australia through its wholly owned subsidiary, Joyce Foam Pty Ltd (“Soyce Foam”) * The company acquired the business of manufacturing of PU Foam and polystyrene products of three Joyce? Australian companies, namely, Joyce Corporation
Slide 23: Spain
|| Spain SHEELA GROUP | 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. lt has a modernized manufacturing facilit
Slide 24: Industry & Strategic Overview
SHEELA GROUP INDUSTRY & STRATEGIC OVERVIEW
Slide 25: Industry Fundamentals
|| Industry Fundamentals eo her | * 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 mattr
Slide 26: Growth Drivers
| Growth Drivers D SHEELA GROUP 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 bee
Slide 27: Capacity Expansion Plans
| Capacity Expansion Plans D India- Domestics Operations OJ ola Pinal oleiarela * 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
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% 251 205 38.2% 197 128 115 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 =O—TD) —@ POLyoL Gross Margins (%) SFL India Australia - Joyce Spain - Interplasp 48.3% —— 38.8% 42.1% 43.
Slide 29: Financial Overview
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Slide 30: Historical Standalone Income Statement
|| Historical Standalone Income Statement SHEELA GROUP | PARTICULARS (INR Mn) FY19 FY20 a Pal a Oe Operational Revenue 18,138 17,548 16,939 21,244 Operating Expenses 16,302 15,278 14,566 18,906 EBITDA 1,835 2,270 2,373 2,338 EBITDA Margins (%) 10.12% 12.94% 14.01% 11.01% Other Income 305 413 474 702
Slide 31: Historical Standalone Balance Sheet
|| Historical Standalone Balance Sheet SHEELA GROUP | PARTICULARS (INR Mn) FY19 FY20 FY21 FY22 PARTICULARS (INR Mn) FY19 FY20 ara FY22 ASSETS EQUITY & LIABILITIES Non-current Assets 4,334 5,808 8,497 11,159 Equity 6,691 8,301 10,134 | 12,095 Property, Plant & Equipment 2,654 2,542 2,536 2,350 (A) Sh
Slide 32: Historical Consolidated Income Statement
|| Historical Consolidated Income Statement PARTICULARS (INR Mn) FY19 FY20 ia Pa ees Operational Revenue 21,414 21,736 24,372 29,818 Operating Expenses 19,305 18,732 20,730 26,669 EBITDA 2,109 3,004 3,642 3,149 EBITDA Margins (%) 9.85% 13.82% 14.94% 10.56% Other Income 276 400 502 792 Depreciation 3
Slide 33: Historical Consolidated Balance Sheet
| Historical Consolidated Balance Sheet SHEELA GROUP PARTICULARS (INR Mn) FY19 FY20 FY21 ee eer i) ee Cs eZ ASSETS EQUITY & LIABILITIES Non-current Assets 4,761 8,870 12,381 15,511 Equity 7,301 | 9,264 | 11,932 | 14,002 Property, Plant & Equipment 3,396 4,204 4,300 4,355 (A) Share Capital 244 244 24
Slide 34: Consolidated Financial Performance
Consolidated Financial Performance ora Revenues (INR Mn) EBITDA (INR Mn) and EBITDA Margins (%) PAT (INR Mn) and PAT Margins (%) 3,642 29,818 2,402 3,004 3,149 24,372 21,414 21,736 2,109 13.82% eee 9.85% FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 mag EBITDA EBITDA Margins wm PAT PAT
Slide 35: Capital Market Information
|| Capital Market Information SHEELA GROUP | 100% 1-Year Stock Performance (Up to 31% March 2022) 80% 60% 40% 20% 0% -20% Apr-21 May-21 May-21 Jun-21 Jul21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 eee SheelaFoam e====Sensex Shareholding Pattern as on 31% March 2022 Price Data as on 31
Slide 36: Disclaimer
| Disclaimer oD SHEELA GROUP 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 c
Slide 37: Investor Presentation March
Investor Presentation March 2022