SFLNSE6 August 2022

Sheela Foam Limited has informed the Exchange about Updated Investor Presentation

Sheela Foam Limited

06" August, 2022

The BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai-400001 Scrip Code: 540203

The National Stock Exchange India Limited Exchange Plaza, Bandra Kurla Complex Bandra(E), Mumbai-400051 NSE Symbol: SFL

Subject: Updated investor presentation

Dear Sir/Madam

Furtherance to our earlier communication and results for the quarter and year ended 30" June, 2022, Please find attached updated investor presentation on results.

Thanking you.

Yours faithfully, For Sheela Foam Limited

(Md. Iquebal Ahmad) Company Secretary and Compliance Officer

SHEELA FOAM LTD.

#14, Sleepwell Tower , Sector 135, Noida- 201301 Ph: Int-91(0)-120-4162200 « Fax: Int-91-(0)-120-4162282, 4162283 +« Email: contactus@sheelafoam.com

Regd. Office: 604 Ashadeep, 9 Hailey Road, New Delhi-110001, India + Ph: Int-91(0)-11-22026875-76 Toll Free: 1800 103 6664 « www.sleepwellproducts.com * www.sheelafoam.com CIN-L74899DL1971 PLC005679

Sheela Foam Ltd.

Earnings Presentation Q1-FY23

Company Snapshot

Experienced Management

‘Sleepwell’ mattresses a household Brand and one of the most trusted brands in India

Backward Integrated Player with a wide product basket

Largest manufacturers of PU Foam in India

20-25% Market Share in the Mattresses segment

40% market share in Australia

Presence across multiple geographies

Low Gearing ratio

Consistent Positive cash flow generation

Strategic move to focus on high margin products

Earnings Presentation August 2022

Marquee Investors

Proven track record in Acquisitions and Integration

•

35, 000

30, 000

25, 000

20, 000

15, 000

10, 000

5, 000

Company Overview

Incorporated in 1971, Sheela Foam is the market leader and the largest manufacturer of Polyurethane Foam (PU) in India.

India Operations

The Company manufactures various foam-based home comfort products like mattresses, Furniture cushions, as well as technical grades of polyurethane foams for end-use in a range of industries like automobile, acoustics, etc.

The flagship household brands include: ‘Sleepwell’ for mattresses and home comfort, ‘Feather Foam’ a pure PU Foam and ‘Lamiflex’ a polyester foam for lamination.

Manufacturing Plants

The company has a global manufacturing footprint with 11 nationwide manufacturing plants in India, 5 in Australia, and 1 in Spain.

It has a strong presence and market share in Australia through its wholly-owned subsidiary, Joyce Foam Pty Ltd. and also in Spain through its subsidiary, Interplasp S.L.,

The company has an integrated manufacturing facility 123,000 MTPA with a robust distribution network of 100+ exclusive distributors, 5,400+ exclusive brand outlets, and 7,850+ multi-brand outlets.

Revenue , EBITDA and EBITDA Margins (INR Mn)

Q1-FY23 Revenue Breakup

123,000

MTPA of Total Capacity

20 – 25%

Market share in India

29,818

Geographical Distribution

Business Segment Distribution

Global Operations

21,414

21,736

24,372

14.94%

9.85%

2,109

13.82%

10.56%

7,291

9.02%

3,004

3,642

3,149

658

14%

15%

19%

71%

81%

FY19

FY20

FY21

FY22

Q1-FY23

Revenues

EBITDA

EBITDA Margins

India Europe

Australia

Home Comfort

Technical Foam

Earnings Presentation August 2022

Manufacturing plants in Australia with a capacity of 11,000 MTPA

40%

Market share in Australia

Manufacturing plant in Spain with a capacity of 22,000 MTPA to cater to European and US markets

Q1-FY23 Performance Highlights

Earnings Presentation August 2022

Q1-FY23 Financial and Operational Highlights

Q1-FY23 Consolidated Financial Performance

INR 658 Mn

EBITDA

INR 425 Mn

Net Profit

INR 7,291 Mn Revenue from Operations

9.02%

EBITDA Margin

5.83%

PAT Margin

EBITDA

Net Profit

INR 8.72 Basic/ Diluted EPS

INR 44.83 Basic/ Diluted EPS

•

Q1-FY23 Operational Highlights

Strong start to the financial year with 32% YoY growth in Revenue from Operations and 69% YoY growth in Profit after Tax

India & Australia operations registered strong growth while Spain’s growth was impacted due to external challenges in Europe

YoY margin improvement was driven by reduction in key raw material costs, with Polyol prices gradually came down while TDI prices reducing in the beginning of the quarter but went up again towards the end of the quarter

Sleepwell presented its 360-degree retail offering at the HGH 2022 annual trade show with the tagline ‘Leap of Change’ which received a very positive response

The company made an entry into a new network with Sleepwell cushioning partners for Feather foam Mattresses and furniture cushioning

Mid-term Outlook

India & Australia - inflation is impacting consumer sentiments; growth is expected to be moderate

External factors in Europe will have impact on Spain operation. We will focus on growing into new industrial segment and funnel new customers in Madrid + Barcelona

Polyol & TDI Prices will positively impact sequential margins in coming quarters

Earnings Presentation August 2022

Q1-FY23 Geographical Revenues

SFL India (INR Mn)

Australia - Joyce (INR Mn)

Spain - Interplasp (INR Mn)

Consolidated (INR Mn)

6, 000

5, 000

4, 000

3, 000

2, 000

1, 000

3,257

5.71%

192

5,144

15. 00%

1, 200

13. 00%

11. 00%

9. 00%

1, 000

800

1,034

1,103

11.90%

8.73%

7. 00%

600

8.61%

5. 00%

3. 00%

1. 00%

400

200

383

1,225

5.55%

15. 00%

1, 400

13. 00%

1, 200

11. 00%

1, 000

9. 00%

7. 00%

5. 00%

3. 00%

1. 00%

800

600

400

200

1,046

8.98%

15. 00%

8, 000

13. 00%

7, 000

11. 00%

6, 000

9. 00%

5, 000

7. 00%

4, 000

5. 00%

3, 000

3. 00%

2, 000

1. 00%

1, 000

7,291

9.02%

5,513

6.95%

251

425

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

- 1.00%

Revenues

PAT

EBITDA Margins

Revenues

PAT

EBITDA Margins

Revenues

PAT

EBITDA Margins

Revenues

PAT

EBITDA Margins

Earnings Presentation August 2022

15. 00%

13. 00%

11. 00%

9. 00%

7. 00%

5. 00%

3. 00%

1. 00%

- 1.00%

Mattresses (INR Mn)

Furniture Foam (INR Mn)

Technical Foam (INR Mn) Technical Foam

Comfort Foam and HC Line (INR Mn)

Q1-FY23 Business Segment Revenues

57.1%

2,195

1,397

62.9%

627

64.8%

1,236

385

750

48.8%

1,077

724

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

Mattresses (Volumes in 000’s)

Furniture Foam (Volumes in MT)

Technical Foam (Volumes in MT) Technical Foam

Comfort Foam (Volumes in MT)

43.1%

501

54.6%

1,302

350

842

51.1%

3,313

2,192

53.1%

4,942

3,229

Q1-FY22

Q1-FY23 Earnings Presentation August 2022

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

Q1-FY22

Q1-FY23

Raw Material Prices and Gross Margins

TDI & Polyol Price Trend

SFL Consolidated Gross Margins (%)

217

210

212

203

200

173

267

227

178

174

39.9%

39.1%

37.4%

39.8%

35.5%

Q1-FY22

Q2-FY22

Q3-FY22

Q4-FY22

Q1-FY23

TDI

POLYOL

Q1-FY22

Q2-FY22

Q3-FY22

Q4-FY22

Q1-FY23

SFL India

41.1%

39.7%

40.3%

37.0%

36.7%

Gross Margins (%)

Australia - Joyce

54.1%

50.6%

50.1%

52.1%

Spain - Interplasp

48.1%

23.5%

24.0%

16.6%

26.0%

20.1%

Q1-FY22 Q2-FY22 Q3-FY22 Q4-FY22 Q1-FY23

Earnings Presentation August 2022

Quarterly Standalone Financial Performance

Particulars (INR Mn)

Revenue from Operations

Operating Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Q1-FY23

Q1-FY22

5,144

4,695

449

8.73%

163

516

133

383

3,257

3,071

186

5.71%

148

235

192

PAT Margin (%)

7.45%

5.89%

Other Comprehensive Income

Total Comprehensive Income

Basic/Diluted EPS (INR)

Earnings Presentation August 2022

(35)

348

7.85

216

3.94

Y-O-Y

57.9%

52.9%

302 Bps

10.1%

(1.4)%

(8.0)%

99.5%

156 Bps

61.1%

99.2%

Q4-FY22

5,637

5,087

550

9.76%

151

608

134

474

8.41%

(63)

411

9.71

Q-O-Q

(8.7)%

(7.7)%

(18.4)%

(103) Bps

7.9%

(15.1)%

(0.7)%

(19.2)%

(96) Bps

(44.4)%

(15.3)%

(19.2)%

Particulars (INR Mn)

Revenue from Operations

Operating Expenses

EBITDA

EBITDA Margin (%)

Other Income

Depreciation

Finance Cost

PBT

Tax

PAT

Quarterly Consolidated Financial Performance

Q1-FY23

Q1-FY22

7,291

6,633

658

9.02%

184

206

584

159

425

5,513

5,130

383

6.95%

179

185

327

251

Y-O-Y

32.3%

29.3%

71.8%

207 Bps

2.8%

11.4%

6.1%

78.6%

69.3%

PAT Margin (%)

5.83%

4.55%

128 Bps

Other Comprehensive Income

Total Comprehensive Income

Basic/Diluted EPS (INR)

Earnings Presentation August 2022

(66)

359

8.72

276

5.15

30.1%

69.3%

Q4-FY22

7,636

6,918

718

9.41%

158

237

618

125

493

6.46%

(67)

426

10.11

Q-O-Q

(4.5)%

(4.1)%

(8.4)%

(39) Bps

16.5%

(13.1)%

(5.5)%

27.2%

(13.8)%

(63) Bps

(1.5)%

(15.7)%

(13.7)%

Historical Financial Overview

Earnings Presentation August 2022

PARTICULARS (INR Mn)

Operational Revenue

Operating Expenses

EBITDA

EBITDA Margins (%)

Other Income

Depreciation

Finance Cost

PBT

Exceptional Items

Tax

PAT

PAT Margins (%)

Other Comprehensive Income

Total Comprehensive Income

Diluted EPS (INR)

Earnings Presentation August 2022

Historical Standalone Income Statement

FY19

18,138

16,302

1,835

10.12%

305

311

1,756

519

1,237

6.82%

(9)

1,228

25.35

FY20

17,548

15,278

2,270

12.94%

413

331

2,271

120

496

1,655

9.43%

(43)

1,612

33.93

FY21

16,939

14,566

2,373

14.01%

474

325

2,435

623

1,812

10.70%

1,833

37.13

FY22

21,244

18,906

2,338

11.01%

702

324

2,645

673

1,973

9.29%

(12)

1,961

40.45

Q1-FY23

5,144

4,695

449

8.73%

163

516

133

383

7.45%

(35)

348

7.85

PARTICULARS (INR Mn)

ASSETS

Non-current Assets Property, Plant & Equipment Capital Work In Progress Right of Use Assets Investment Property Investment In Subsidiaries Financial Assets (a) Investments (b) Loans (c) Other Financial Assets (d) Investment in Preference Shares Non-current Assets (Net) Other Non Current Assets Current Assets Inventories Financial Assets (a) Investments (b) Trade Receivable (c) Cash And Cash Equivalent (d) Other Bank Balances (e) Loans (f) Other Current Fin Assets Other Current Assets GRAND TOTAL – ASSETS Earnings Presentation August 2022

FY19

4,334 2,654 7 - 38 994

492 23 1 - 106 19 5,895 1,530

2,677 1,026 107 16 1 257 281 10,229

Historical Standalone Balance Sheet FY20

PARTICULARS (INR Mn)

FY21

FY22

5,808 2,542 165 211 37 2,137

118 485 3 - 96 14 5,887 1,652

2,179 1,264 289 2 56 100 345 11,695

8,497 2,536 12 201 38 2,137

3,036 486 21 - 3 26 5,713 2,283

1,060 1,630 350 5 56 87 241 14,210

11,159 2,350 6 184 36 1,967

5,288 778 180 299 45 26 5,079 2,035

840 1,516 143 3 56 293 194 16,238

EQUITY & LIABILITIES

Equity

(A) Share Capital

(B) Other Equity

Non-current Liabilities

Financial Liabilities

(A) Borrowings

(B) Lease Liabilities

Provisions

Deferred Tax Liabilities (Net)

Other Non Current Liabilities

Current Liabilities

Financial Liabilities

(A) Borrowings

(B) Lease Liabilities

(D) Other Current Fin Liabilities

Provisions

Other Current Liabilities

GRAND TOTAL - EQUITIES & LIABILITES

FY19

FY20

FY21

FY22

6,691

244

6,447

882

697

114

8,301

10,134

12,095

244

8,057

904

244

9,890

11,851

653

877

737

502

183

503

141

2,656

2,490

3,423

3,266

1,165

1,141

2,333

2,095

743

699

739

553

381

664

413

722

10,229

11,695

14,210

16,238

PARTICULARS (INR Mn)

Operational Revenue

Operating Expenses

EBITDA

EBITDA Margins (%)

Other Income

Depreciation

Finance Cost

PBT

Exceptional Items

Tax

PAT

PAT Margins (%)

Other Comprehensive Income

Total Comprehensive Income

Diluted EPS (INR)

Earnings Presentation August 2022

Historical Consolidated Income Statement

FY19

21,414

19,305

2,109

9.85%

276

395

1,894

557

1,337

6.24%

(9)

1,328

27.41

FY20

21,736

18,732

3,004

13.82%

400

590

130

2,684

120

621

1,943

8.94%

(31)

1,912

39.83

FY21

24,372

20,730

3,642

14.94%

502

729

177

3,238

837

2,402

9.86%

188

2,590

49.23

FY22

29,818

26,669

3,149

10.56%

792

808

169

2,964

776

2,187

7.33%

(18)

2,169

44.83

Q1-FY23

7,291

6,633

658

9.02%

184

206

584

159

425

5.83%

(66)

359

8.72

PARTICULARS (INR Mn)

ASSETS

Non-current Assets Property, Plant & Equipment

Capital Work In Progress Right of Use Assets Investment Property Goodwill Financial Assets (a) Investments (b) Loans

Other Non Current Assets Current Assets Inventories Financial Assets

(a) Investments (b) Trade Receivable

(e) Loans (f) Other Current Fin Assets Other Current Assets GRAND TOTAL – ASSETS

FY19

4,761 3,396

7 0 639 82

492 29

11 87

18 6,857 1,871

2,684 1,522

168 35

2 257 318 11,618

Historical Consolidated Balance Sheet FY20

PARTICULARS (INR Mn)

FY21

FY22

8,870 4,204

180 1,167 590 2,546

118 26

21 5

13 7,569 2,269

2,196 2,158

441 5

56 55 389 16,439

12,381 4,300

15,511 4,355

326 1,418 590 2,631

3,036 2

52 -

26 8,313 3,153

1,070 3,021

574 7

56 69 363 20,694

1,199 1,394 562 2,520

5,288 1

45 67

80 8,213 3,145

893 2,850

408 3

56 264 594 23,724

EQUITY & LIABILITIES

Equity

(A) Share Capital

(B) Other Equity Non Controlling Interest Non-current Liabilities

Financial Liabilities

(A) Borrowings

(B) Lease Liabilities

Provisions

Other Non current Liabilities

Deferred Tax Liabilities (Net)

Current Liabilities

Financial Liabilities

(A) Borrowings

(B) Lease Liabilities

(D) Other Current Fin Liabilities

Provisions

Current Tax Liabilities (Net)

Other Current Liabilities GRAND TOTAL - EQUITIES & LIABILITES

FY19

FY20

FY21

FY22

7,301

9,264

11,932

14,002

244

7,057 - 896

696

244

8,953 67 3,328

1,571

824

737

110

244

11,599 89 3,068

13,682 76 4,136

1,326

1,086

502

2,282

1,057

503

274

3,421

3,847

5,694

5,586

227

1,432

913

129

720

360

159

1,534

1,075

129

590

11,618 16,439

730

201

1,096

231

3,301

3,013

531

147

454

739 20,694

768 23,724

Earnings Presentation August 2022

Consolidated Financial Performance

Revenues (INR Mn)

EBITDA (INR Mn) and EBITDA Margins (%)

PAT (INR Mn) and PAT Margins (%)

29,818

21,414

21,736

24,372

3,642

3,004

3,149

14.94%

13.82%

2,109

9.85%

10.56%

9.02%

658

4, 000

3, 500

3, 000

2, 500

2, 000

1, 500

1, 000

500

30. 00%

25. 00%

20. 00%

15. 00%

10. 00%

5. 00%

0. 00%

7,291

2,402

2,187

1,943

1,337

6.24%

8.94%

9.86%

7.33%

5.83%

425

3, 000

2, 500

2, 000

1, 500

1, 000

500

30. 00%

25. 00%

20. 00%

15. 00%

10. 00%

5. 00%

0. 00%

FY19

FY20

FY21

FY22

Q1-FY23

FY19

FY20

FY21

EBITDA

FY22 Q1-FY23 EBITDA Margins

FY19

FY20

FY21

PAT

FY22 Q1-FY23 PAT Margins

Net Debt to Equity Ratio (x)

Networth (INR Mn)

ROE and ROCE (%)

0.21

0.16

0.12

9,264

7,301

14,002

11,932

0.01

FY19

FY20

FY21

FY22

FY19

FY20

FY21

FY22

Earnings Presentation August 2022

20.9%

21.0%

20.1%

18.3%

19.2%

19.4%

15.6%

12.9%

FY19

FY20

FY21

FY22

ROE

ROCE

Capital Market Information

1-Year Stock Performance (Up to 30th June 2022)

80%

70%

60%

50%

40%

30%

20%

10%

-10%

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

Sheela Foam

Midcap Index

Feb-22

Sensex

Mar-22

Apr-22

May-22

Jun-22

Shareholding Pattern as on 30th June 2022

Price Data as on 30th June, 2022

Face Value

CMP

52 Week H/L

Market Cap (INR Mn)

No. of Share outstanding (Mn)

1 Year Avg. Trading Volume (000)

INR

5.00

2,653.8

4,054 / 2,195

129,462

48.8

32.3

Promoters 72.95%

Mutual Funds 22.57%

Public 1.10%

Foreign Portfolio Investors 3.11%

AIF 0.26%

Earnings Presentation August 2022

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 date of this presentation. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management Sheela Foam Limited (“Company” or “Sheela Foam Ltd.”), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatory environment.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements to reflect future events or developments.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registration there from.

This presentation is confidential and may not be copied or disseminated, in whole or in part, and in any manner.

Valorem Advisors Disclaimer: Valorem Advisors is an Independent Investor Relations Management Service company. This Presentation has been prepared by Valorem Advisors based on information and data which the Company considers reliable, but Valorem Advisors and the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Valorem Advisors also hereby certifies that the directors or employees of Valorem Advisors do not own any stock in personal or company capacity of the Company under review.

For further information please contact our Investor Relations Representatives: Mr. Anuj Sonpal Valorem Advisors Tel: +91-22-4903-9500 Email: sheela@valoremadvisors.com

Earnings Presentation August 2022

THANK YOU

Earnings Presentation August 2022

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