SFLNSE12 July 2023

Sheela Foam Limited has informed the Exchange about Investor Presentation

Sheela Foam Limited

12th July, 2023

The BSE Limited The National Stock Exchange India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai-400001 Bandra(E), Mumbai-400051 Scrip Code: 540203 NSE Symbol: SFL

Subject: Investor Presentation

Dear Sir/Madam,

As per Regulations 30 of Stock Exchange Board of India (Listing Obligation and Disclosure

Requirements) Regulations, 2015, please find attach the Investor Presentation based on

FY 23 Annual Financials.

Thanking you,

Yours truly, For Sheela Foam Limited

Md. Iquebal Ahmad Company Secretary & 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-L74899DL1971PLC005679

Sheela Foam Ltd.

Investor Presentation – June 2023

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

30-35% 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

Marquee Investors

Proven track record in Acquisitions and Integration

Company Overview

•

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

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.

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 retail dealers, and 7,850+ multi-brand outlets.

35,000

30,000

25,000

20,000

15,000

10,000

5,000

India Operations

Global Operations

11 Manufacturing Plants

123,000 MTPA of Total Capacity

30 – 35% Market share in India

Investor Presentation | Sheela Foam Ltd.

5 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

Revenue , EBITDA (INR Mn), EBITDA Margin (%)

21,291

20,532

23,550

28,733

28,656

35.00%

28.00%

21.00%

14.00%

14.63%

15.46%

9.90%

2,109

3,004

3,642

10.99% 3,149

10.35% 2,973

7.00%

0.00%

FY19

FY20

FY21

FY22

FY23

FY23 Revenue Breakup

Geographical Distribution

Business Segment Distribution

14%

15%

26%

71%

74%

India

Australia

Europe

Home Comfort

Technical Foam

Board of Directors

Rahul Gautam Chairman & Managing Director

He has been associated with our Company since 1971 and has been our Managing Director since 1 April 1996. He holds a Bachelor's degree in Technology - Chemical Engineering from the Indian Institute of Technology, Kanpur, and a Master's degree in Science - Chemical Engineering from the Polytechnic Institute of New York. He has over 46 years of experience in the home comfort products and PU foam industry and is the Chairman Emeritus of the Indian Polyurethane Association.

Namita Gautam Whole-Time Director She has been associated with our Group for the past 34 years and has been a Whole-Time Director of our Company since 14 November 2003. During her tenure, she has headed the Human Resources, Marketing, and Projects departments of the Company. She currently leads our CSR initiative through the Sleepwell Foundation and heads Special Projects. She holds a bachelor's degree in Law and a master's degree in Economics from Kanpur University.

Rakesh Chahar Whole-Time Director

He has been associated with our Company since 1 November 1990 and has been a Whole- Time Director since 14 November 2003. He has more than 31 years of experience in the business of selling and marketing bedding products and polyurethane foam. He heads the Sales and Marketing function.

Tushaar Gautam Whole-Time Director

He has been associated with our Company since 7 January 2002 and has been a Whole-Time Director since 1 April 2007. He also served as CEO of Indian Operation. He holds a bachelor's degree from Purdue University, USA, where his courses of study included Financial, Marketing, and Operations Management. He oversees the operations of the Company and our subsidiary Joyce Foam Pty Ltd and Interplasp Spain and serves on their Board of Directors. He has more than 20 years of experience in heading Production, Research and Development. Anil Tandon Indepedent Director He has been associated with our Company since 7 June 2016. He is holding a bachelor's degree of Technology in Electrical Engineering from the Indian Institute of Technology, Kanpur and a Post-graduate Diploma in Management from the Indian Institute of Management, Ahmedabad. Since 1995, he has been the Managing Director of Tex Corp Pvt Ltd, a leading organisation in the field of fastening products. He has several years of national and international experience in the zip-fastening products sector.

Som Mittal Independent Director He has been associated with the Company since 7 June, 2016. He holds a Bachelor’s degree in Metallurgical Engineering from the Indian Institute of Technology, Kanpur, and a post graduate diploma in Business Administration from the Indian Institute of Management, Ahmedabad. He has several years of experience in manufacturing and information technology sectors.

Ravindra Dhariwal Independent Director

He has been associated with the Company since 7 June, 2016. He holds a Bachelor’s degree in Chemical Engineering from the Indian Institute of Technology, Kanpur, and a post graduate diploma in Management from the Indian Institute of Management, Calcutta. He was the Group CEO of Bennett & Coleman, India’s largest media company. He has vast experience in the fields of Sales and Marketing Management.

Lt Gen (Dr.) Vijay Kumar Ahluwalia Independent Director

He has been associated with the company since 5 March, 2018. He is holding a Master’s degree in Defence Studies and Management from Madras University, M. Phil in Defence Studies from Indore University and PhD in Management - Internal Security and Conflict Resolution from Amity University, Noida. He has several years of experience in Defence Services. He also served as a Judge of Armed Force Tribunal and as Director General of Raffles Group of Institutions, Raffles University, Neemrana, Rajasthan.

Meena Jagtiani Independent Director

She is an MBA from the Symbiosis Institute of Business Management and has done an Executive Development Programme from Wharton Business School, University of Pennsylvania. At present, she is working as an independent HR advisor. She has three decades of rich industry experience in the field of HR. She served in various corporate houses such as the Aditya Birla Group, Daksh e- Services Private Limited, and Korn/Ferry International - world’s leading search firm before taking her role as an Independent Advisor.

Investor Presentation | Sheela Foam Ltd.

Key Managerial Personnel

Nilesh Mazumdar CEO (India Business)

Mr. Nilesh Mazumdar joined our Company in February 2023. He has done his BE Electronics from University of Poona, MBA (Marketing) from Symbiosis Institute of Business Management and Diploma in Business Finance from ICFAI. He has a strong and varied track record of leadership spanning over 3 decades served and led large teams across marquee organisations such as Forbes Marshal Limited, Asian Paints, MIRC Electronics Limited(Onida), Subhiksha Industries Limited and most recently Pidilite Industries Ltd

Amit Kumar Gupta Group Chief Financial Officer

Mr. Amit Kumar Gupta joined our Company in May 2023. He has done his PGDBM- Finance from SGRRITS, Dehradun. LLB (Mercantile Law) from HNB Garhwal University. He comes with around 25 years of rich experience across a large number of targets in both domestic and international markets. Prior to joining the Company, his immediate assignment was with Samvardhana Motherson Group as a Vice President (Strategy and M&A). He has also worked with various brand leaders like Focus Energy Ltd, Ballarpur Industries Ltd, HT Media Ltd, Amar Ujala Publications Ltd under various capacities.

Md. Iquebal Ahmad Company Secretary and Compliance Officer He has been associated with our Company since November 17, 2008. He is a member of the Institute of Company Secretaries of India. He holds a Bachelor’s degree in law and a Diploma in Corporate Law and Management. He has in the past been associated with Golden Overseas Limited (Dhanuka Group Company) as its Company Secretary and with AVA Associates, PCS firm, as an Associate. He is responsible for the secretarial and legal matters of our Company. He has been associated with the Company for about 14 years and has experience in secretarial and legal compliance.

Investor Presentation | Sheela Foam Ltd.

Timeline

Sheela Foam’s Limited journey begins from Sahibabad, Uttar Pradesh, founded by the chairperson emeritus Mrs. Sheela Gautam

The Company introduced rubberized coir products under the brand name Starlite and successfully tied-ups with Serta, USA, and Dunlopillo, UK, to manufacture mattresses.

Major acquisition to expand operations globally, the Company acquired the polyurethane and polystyrene business of Joyce, Australia.

Received the Computer World Premier Award. Company got listed on NSE and BSE

Many awards won including the Star SME of the Year by Business Standard; Silver medal in the India Green Manufacturing Challenge 2017, by International Research Institute for Manufacturing, India; 5 Awards for Excellence in IT.

Set up a new Subsidiary called as International Comfort Technologies to focus on key growing businesses like Exports, E-commerce and Low value Economy mattresses to cater to the 65% of the rural population

1971

1998 1999

2005

2016

2018

2021

1994

2001 2003

2008 2010

2017

2019

2022

Flagship brand named ‘Sleepwell’ launched. Over the time it turned out to be one of the most popular choices of urban India households

India’s largest PU (polyurethane) foam producing plant started operations in Greater Noida. Expanded operations in Rajpura, Punjab and Sikkim in order to develop a closer proximity to their target markets

Awarded the Nasscom CNBC- TV18 IT user award, Silver Edge’ Award; CIO Green Edge Special Award; CIO Asia Award; and the CIO 100 Award for the 2nd time. The Company also launched revolutionary technologies with products like Impressions, Latex Plus, Resitec Air, Duet Luxury, Durafirm, Serenity and Amity.

Awarded by PU Tech for Innovative Technology for Vertical Variable Pressure Foaming..

Footprint in Europe, the Company acquired Interplasp S.L. in Spain

Issued bonus shares in a ratio of 1:1

Investor Presentation | Sheela Foam Ltd.

Geographical Presence

INDIA

Jabalpur (upcoming Mfg. plant)

Nandigram

SPAIN

Yecla

Perth

AUSTRALIA

Adelaide

Sydney

Canberra

Melbourne

• Currently operating 11

manufacturing facilities in India. Upcoming 12th manufacturing plant in Jabalpur for Foaming and Foam processing

• Dispersed manufacturing plants to cater to strategic geographical touch points

• The plants

are

situated in close proximity to markets and ports which enables fast and better serviceability to customers and cost-effective import of raw materials as well as export of technical foam

Leading manufacturer of Mattresses and PU Foam

Geographically Dispersed

Investor Presentation | Sheela Foam Ltd.

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

Largest Integrated Manufacturer of PU Foam and Mattresses

MTPA 123,000

5 Manufacturing Units in Australia

Sustainable Stable business with ~40% Market Share

MTPA 11,000

Spain Unit

‘Bed in a Box’ concept opens opportunities to target US markets.

MTPA 22,000

Investor Presentation | Sheela Foam Ltd.

Prominent Dealer-Distribution Network

Most distributors have been associated with the company for more than 20+ years

Well-integrated with the Company’s IT platforms, tracking secondary sales made by distributors and dealers in real time

enables

that

Exclusive distributors are in strategic proximity to the manufacturing facilities, hence it helps reduce carriage fees and minimizes product damage

sales

150+ engaged with key distributors

personnel

are

actively

100+

Exclusive Dealers

5,400+ Exclusive Brand Outlets

7,850+ Multi Brand Outlets

Sleepwell World Average Size 1,000 Sq. Ft/ 321 Outlets

Sleepwell Galleries Average Size 600 Sq. Ft/ 535 Outlets

Sleepwell Shoppes

Average Size 200 Sq. Ft/1,159 Outlets

Investor Presentation | Sheela Foam Ltd.

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, has launched a wide collection of durable, high-quality mattresses for enhanced back support and comfort, keeping the changing buying habits/lifestyles of the youth in mind.

Content Marketing

• Sleepedia:

is one of the initiatives undertaken to raise awareness about the significance of sleep, sleep disorders and how to combat them, and methods to inculcate and promote healthy sleeping habits.

• Sleep Talk: Information and suggestions for a healthy sleep routine.

• Your Sleep Story: Community engagement initiative for sharing sleep stories and

experiences.

• Sleep Expert: Sleep advice from experts with answers to Frequently Asked Questions

Investor Presentation | Sheela Foam Ltd.

Advertisement Expenses (INR Mn) and Ad Expense / Revenue (%)

1000

900

800

700

600

500

400

300

200

100

885

760

756

694

704

745

522

4.90%

4.30%

4.10%

3.38%

2.21%

2.46%

2.59%

FY17

FY18

FY19

FY20

FY21

FY22

FY23

9.00%

8.00%

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

Branded Portfolio

Australian subsidiary Joyce Inc

Spanish subsidiary Interplasp Inc

Investor Presentation | Sheela Foam Ltd.

Marquee Clients

Mattress Industry

Furniture Industry

Automotive Lamination Industry

Peeling Industry

Acoustic Industry

Investor Presentation | Sheela Foam Ltd.

Awards and Accolades

Investor Presentation | Sheela Foam Ltd.

Business Overview

Product Mix

Mattresses segmentation

My Mattress, Spring Range, Technology Range, Custom Cell Range, Back Support Range, Flexi PUF Range, Showroom Range, Economy Range, SleepX Online Brand

Comfort Foam and Home Care Products

Foam Sheets, Foam Blocks, Comfort range accessories, Foam Cores, Furniture Cushions, Pillows, Bedsheets, Comforters/Blankets, Mattress Protectors, Sofa-cum-Beds

41%

21%

PRODUCT PORTFOLIO

Technical Foam

Automotive Foams, Reticulated Foams, Ultra- Violet Stable Foams, Silentech Foams

26%

12%

Furniture Foam

Sleepwell Resitec, Sleepwell Cool Gel, Primo

Investor Presentation | Sheela Foam Ltd.

Revenue breakup as on FY23

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 range from INR 8,000/- to INR 1 lakh+.

30-35% Market share in India

Volumes (Mn)

2.0

2.1

2.0

Revenues (INR Mn)

7,249

7,108

8,288

8,190

3.0

2.5

2.0

1.5

1.0

0.5

0.0

Private Label Offerings – Customized product Products for the custom and value-orientated consumer

Sleepwell – No. 1 bedding brand in the India. Combines innovation, engineering and industry-leading testing to ensure quality and durability

Starlite

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Investor Presentation | Sheela Foam Ltd.

Technical Foam

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 surroundings.

Product

Product Lines

End User Industries

Automotive Foam

Poly-ester Foam, Poly-ether Foam

Seat cover, Sound absorption systems, Sun visors, Headliners, Door trims, Lamination systems

Reticulated foam

Ester-based foam, Ether- based foam

Ultra Violet Stable foam

Slientech foam

Ester-based PU Foam

Filtration systems, Ceramic foam filters, Outdoor furniture, Microphones and headphones, Safety fuel tanks, Ink cartridges

Sportswear, Innerwear and lingerie, Clothing, Swimwear, Comfort accessories for shoes

Automotive, Diesel generator canopies, Theatres, auditoriums, indoor stadiums, Broadcasting rooms and recording studios, Industrial silencers, Aco

Revenues (INR Mn)

5,204

4,299

3,000

3,084

FY20

FY21

FY22

FY23

Volumes (MT)

11,500

10,178

15,389

13,422

FY20

FY21

FY22

FY23

Sound Absorption Foam

Automotive Foams

Reticulated Foams

UV Stable Foams

Silentech Foams

Investor Presentation | Sheela Foam Ltd.

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 Accessories Product Portfolio: Pillows, Mattress Protector, Bolsters, Back

Cushion.

Revenues (INR Mn)

Volumes (MT)

4,813

4,250

19,567

19,047

3,566

3,672

22,826

20,736

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

* Volumes (MT) only includes Comfort Foam, the company does not maintain volumes data for home comfort products

Investor Presentation | Sheela Foam Ltd.

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.

Furniture Cushioning Range:

• Primo - Incorporates unique composition and extra thickness for enhanced comfort and support.

• Resitec - Using advanced High Resilience (HR) Cushioning Technology that provides personalized

comfort, for the ultimate cushioning experience.

• Cool Gel-S - Cool Gel-S particles are a scientific breakthrough in Furniture Cushioning that dissipate

heat easily, offering a cool feeling.

Revenues (INR Mn)

Volumes (MT)

2,530

2,253

2,622

2,491

7,939

5,724

6,139

5,744

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Investor Presentation | Sheela Foam Ltd.

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 Limited and Marfoam Pty Limited through Joyce Foam in 2005.

•

It has 5 state-of-the-art production centers at Adelaide, Canberra, Melbourne, Perth and Sydney

Joyce foam produces raw materials for branded mattresses makers and has products catering to the following industries:

Furniture

2. Medical

Industrial

4. Moulded

5. Polystyrene

11,000 MTPA

~40% Market Share in Australia

Revenues (INR Mn)

4,130

4,295

4,379

3,157

FY20

FY21

FY22

FY23

Certifications

Investor Presentation | Sheela Foam Ltd.

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 in Spain, one of the most cost-effective manufacturing locations in Europe, enabling the company to enjoy a competitive edge and develop strong footprints in the region.

Interplasp is well placed to focus on expanding operations to meet the demand from Europe and US

• The company has started exporting to US with the ‘Bed-in-a-box’ mattresses strategy from its Spain plant, this is a new opportunity in the US as the country imposes trade restrictions on other countries.

•

Interplasp is a EUROPUR (European association of flexible polyurethane foam blocks manufacturers) member and has the Innovative Company and the Quality OEKO-TEX Standard 100 stamps.

The constant development has allowed them to have five ranges of flexible polyurethane foams:

• CONTACT PLUS – Conventional foams

• CONTACT BIO – Soy foams

• CONTACT HR – High -end foams, high resilience

• CONTACT BS – Fire retardant foams

• CONTACT DREAM – Viscoelastic foams

22,000 MTPA

Caters to 1% of Europe’s market

Investor Presentation | Sheela Foam Ltd.

Revenues (INR Mn)

4,300

3,954

3,360

1,032

FY20

FY21

FY22

FY23

INDUSTRY & STRATEGIC OVERVIEW

Industry Fundamentals • The Indian modern 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 local distribution channels. The branded market is just 40% of the total Indian modern mattress market. There are 25 players in the branded market with Sleepwell and Kurlon occupying a dominant share.

• In budget 2022-23, 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban and INR 48,000 Cr is

allocated for this purpose.

• India Railways has been boosting its efforts to improve the infrastructure of coaches and finding new space for import substitution such as the supply of foams to the Railways which were earlier imported. 400 new energy-efficient Vande Bharat trains will be introduced by 2025, is about INR 40,000 Cr of business coupled with jobs and other spin-off benefits

• Real estate sector in India is expected to reach US$ 1 Tn in market size by 2030, up from US$ 200 Bn in 2021 and contribute 13% to the country’s GDP by

2025. Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.

• The Indian foam industry’s future seems promising with increasing opportunities in various applications, such as building and construction, bedding and

furniture, transportation, electrical and electronics, footwear and others.

Indian Modern Mattress Market (INR Bn)

Indian Modern Mattress Market Break-up

INDIAN ORGANIZED MATTRESS MARKET BY TYPE OF MATTRESS

180

Organized

Unorganized

FY12

FY16

FY22

Investor Presentation | Sheela Foam Ltd.

67%

65%

33%

FY12

35%

FY16

60%

40%

FY21

Spring 22%

Rubberized Coir 28%

PU Foam 50%

Growth Drivers

Rising share of the organized sector

With the growth of international players and branded companies, consumers are shifting from traditional, to branded mattresses. The shift in demand for better quality and customized products has been resulting in a significant rise of organized players.

low-quality

products

High Margin Products

Portfolio expansion in new and adjacent categories in addition to higher engagement through digital also been instrumental in deeper market penetration and growth.

channel has

Growing Consumption

The total market for mattresses in India was around 18.6 million units, with an estimated new demand for mattresses being ~7 million units per year. In addition, the average replacement cycle for mattresses was ~12 years, and the replacement demand for mattresses was 11.6 million units.

WFH Culture

Changes in the way people work has brought in the need to 'allocate' a space for 'office work'. trend has played out across homes, This irrespective of their sizes. 'Office furniture' has entered our homes. This is a big opportunity for businesses involved with the segment.

End-User Industries

initiatives like Smart City, The government Housing for All combined with favorable measures and policies would increase the number of residential units and favor the real lead to higher estate segment, which will mattress consumption, thereby fueling the growth of the mattress industry.

Investor Presentation | Sheela Foam Ltd.

Capacity Expansion Plans

India- Domestics Operations

• 65% - 70% of the Population sleeps on Dari, Chaitai and this represents the opportunity in the Low– Value Economy mattress segment

• Capex on India operations would be focused on setting up a new plant in Madhya Pradesh and Gujarat with leveraged technology from Australia and Spain

• New Distribution channel would be set up to

create touch points in rural India

ICT – International Comfort Technologies

• Expansion of manufacturing base with the opening of a new 100% Export Oriented Greenfield Unit in Nandi Gaon, Gujarat and in Mandala near Jabalpur, Madhya Pradesh.

• These two units will be focused towards the new businesses; Exports, E-commerce and Low Value Economy the rural population.

segment products

for

Capex Distribution

Australia - Joyce 15%

India Operations 70%

INR

350 +Cr

Spain - Interplasp 15%

India Operations

Australia - Joyce

Spain - Interplasp

• Mattress production in expected to grow from 1,000 Mattresses/Day to 3,000 Mattresses/Day

Expected Asset Turnover of 3x - 4x

Australia Operations

• The company is setting up a new

plant in Adelaide

• Focus of

this plant would be to expand the current market share of the company in Australia

Spain Operations

• The company is doubling our capacity from 17,000 MTPA to ~22,000 MTPA

• Primarily, the focus would be on ‘Bed in a Box’ strategy for US exports and expanding the market share from the current 1% in Europe.

Investor Presentation | Sheela Foam Ltd.

Raw Material Prices and Gross Margins

TDI & Polyol Price Trend (INR/kg)

SFL Consolidated Gross Margins (%)

267

227

178

174

248

131

243

119

231

130

33.9%

35.3%

40.0%

37.0%

39.4%

Q4-FY22

Q1-FY23

Q2-FY23

Q3-FY23

Q4-FY23

Q4-FY22

Q1-FY23

Q2-FY23

Q3-FY23

Q4-FY23

TDI

POLYOL

SFL India

Gross Margins (%)

Australia - Joyce

32.5%

34.2%

39.1%

39.5%

35.4%

52.0%

51.3%

48.1%

49.8%

49.1%

Spain - Interplasp

26.0%

20.1%

31.0%

28.8%

22.7%

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

Investor Presentation | Sheela Foam Ltd.

Historical Financial Overview

Historical Standalone Income Statement

FY20

16,344

14,074

2,270

13.89%

413

331

2,271

120

496

1,655

10.13%

(43)

1,612

16.97

FY21

16,117

13,744

2,373

14.72%

474

325

2,435

623

1,812

11.24%

1,833

18.57

FY22

20,082

17,744

2,338

11.64%

702

324

2,645

672

1,973

9.82%

(12)

1,961

20.22

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)

Investor Presentation | Sheela Foam Ltd.

FY23

20,198

17,975

2,223

11.01%

786

338

2,607

658

1,949

9.65%

(39)

1,910

19.97

Historical Standalone Balance Sheet

PARTICULARS (INR Mn)

FY21

FY22

FY23

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

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

11,171 2,350 6 184 36 1,967

5,288 778 191 299 46 26 4,911 2,035

840 1,360 143 3 56 282 192 16,082

6,909 2,371 19 163 34 1,967

564 1,223 170 299 67 32 11,142 1,889

7,065 1,640 104 3 6 64 371 18,051

PARTICULARS (INR Mn)

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

Current Tax Liabilities (net)

Other Current Liabilities

FY21

FY22

FY23

10,134 244

9,890

653

12,095 244

11,851

796

13,958 488

13,470

515

502

3 3,423

2,333

381

664

183

503

2 3,191

149

255

2 3,578

1,941

1,827

413

105

721

863

109

754

GRAND TOTAL - EQUITIES & LIABILITES

14,210

16,082

18,051

Investor Presentation | Sheela Foam Ltd.

Historical Consolidated Income Statement

FY20

20,532

17,528

3,004

14.63%

400

590

130

2,684

120

621

1,943

9.46%

(31)

1,912

19.92

FY21

23,550

19,908

3,642

15.46%

502

729

177

3,238

836

2,402

10.20%

188

2,590

24.62

FY22

28,656

25,507

3,149

10.99%

792

808

169

2,964

777

2,187

7.63%

(18)

2,169

22.42

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)

Investor Presentation | Sheela Foam Ltd.

FY23

28,733

25,760

2,973

10.35%

865

896

211

2,731

700

2,031

7.07%

125

2,156

20.81

Historical Consolidated Balance Sheet

PARTICULARS (INR Mn)

FY21

FY22

FY23

ASSETS

Non-current Assets Property, Plant & Equipment Capital Work In Progress Right of Use Assets Investment Property Intangible Assets Financial Assets (a) Investments (b) Loans (c) Other Non Current Fin Assets Deferred Tax Assets 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

Investor Presentation | Sheela Foam Ltd.

12,381 4,300 326 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

15,767 4,355 1,199 1,394 562 2,520

5,288 1 45 78 69 256 7,865 3,145

894 2,694 408 3 56 263 402 23,632

12,775 4,290 2,875 1,086 534 2,740

564 19 52 137 124 354 14,333 3,313

7,120 2,820 423 3 6 10 638 27,108

PARTICULARS (INR Mn)

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

FY21

FY22

FY23

11,932

14,002

16,087

244

11,599 89 3,068

1,326

1,086

502

244

13,682 76 4,134

2,282

1,057

503

193

488

15,516 83 4,187

2,838

875

259

130

5,694

5,496

6,834

730

201

3,301

531

147

739 20,694

1,096

230

2,854

440

106

770 23,632

1,838

160

2,594

917

205

1,108 27,108

Consolidated Financial Performance

Revenues (INR Mn)

EBITDA (INR Mn) and EBITDA Margins (%)

PAT (INR Mn) and PAT Margins (%)

28,656

28,733

23,550

20,532

3,642

3,004

3,149

2,973

14.63%

15.46%

10.99%

10.35%

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%

3,000

2,500

2,000

1,500

1,000

500

2,402

1,943

2,187

2,031

9.46%

10.20%

7.63%

7.07%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Net Debt to Equity Ratio (x)

Networth (INR Mn)

ROE and ROCE (%)

0.26

0.21

16,087

14,002

11,932

0.16

0.12

9,264

FY20

FY21

FY22

FY23

FY20

FY21

FY22

FY23

Investor Presentation | Sheela Foam Ltd.

21.0%

20.1%

19.2%

19.4%

15.6%

12.9%

12.6%

10.2%

FY20

FY21

FY22

FY23

ROE

ROCE

Capital Market Data 1 year stock performance (As on 31st March 2023)

20%

10%

-10%

-20%

-30%

-40%

-50%

Apr-22

May-22

Jun-22

Jul-22

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

Mar-23

Sheela

Sensex

Midcap

Shareholding Pattern as on 31st March, 2023

Price Data (As on 31st March, 2023)

Face Value

CMP

52 Week H/L

Market Cap (INR Mn)

No. of Share outstanding (Mn)

1 Year Avg. Trading Volume (000)

INR

5.0

995.6

2,027.0 / 905.5

97,136.3

97.6

21.6

Promoters 72.95%

Public 1.52% Foreign Portfolio Investors 3.26%

AIF 0.05%

Mutual Funds 22.22%

Investor Presentation | Sheela Foam Ltd.

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

Investor Presentation | Sheela Foam Ltd.

THANK YOU

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