SFLNSE15 August 2023

Sheela Foam Limited has informed the Exchange about Investor Presentation

Sheela Foam Limited

15th August, 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

Dear Sir/Madam,

Sub: Investors Presentation update under regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

In terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the management of Sheela Foam Limited (the “Company”) will be participating in a physical meeting from 16th August 2023 with a group of potential investors, hosted by Citigroup Global Markets India Private Limited ("Meeting”).

This is to further inform you that the copy of the investor presentation has been uploaded on the stock exchange and on the website of the Company on 11 August 2023. However, due to an exigency on the part of the Company or the potential investors, we would like to inform that the Company will be replacing investor presentation uploaded on 11 August 2023 with minor modifications and without any material or substantial changes.

We hereby attach a copy of the fresh investor presentation proposed to be made in the Meeting.

The above disclosure is also being uploaded on the website of the Company at https://www.sheelafoam.com .

Thanking you,

Yours truly, For Sheela Foam Limited

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

Corporate Presentation August 2023

Strictly Private and Confidential

Table of Contents

1. Overview of Potential Targets

2. Acquisition Considerations

3. Key Competitive Strengths

4. SFL - Financial Summary

5. Future Growth Strategy

Largest Manufacturer of Polyurethane (“PU”) Foam in India

“Sleepwell” is the leading mattress brand in India

Presence in both B2B and B2C segments

Integrated platform with a wide product basket

Experienced management

19% market share in Indian organized modern mattress industry1

~40% market share in Australia

Presence across multiple geographies

High profile enterprise clientele

Strategic focus on high margin products

Consistent positive cash flow generation

Low Gearing Ratio2 - Standalone: 0.41% Consolidated: 21%

Proven track record in acquisitions and integration

E T A R O P R O C

L A N O T A R E P O

L A C N A N F

Note: (1) In terms of revenue FY2023 (2) Ratio for FY2023.

Sheela Foam’s (“SFL” or the “Company”) Evolution Driven by Strong Organic Growth, Coupled with Overseas Acquisitions

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

2005

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

Flagship brand named `Sleepwell' launched. Over time, it turned out to be one of the most preferred choices of urban India households

1994

Sheela Foam's journey begins from Sahibabad, Uttar Pradesh, founded by the Chairperson Emeritus Mrs. Sheela Gautam

1971

1998- 99

2001- 03

2008- 10

India's largest PU (polyurethane) foam producing plant commenced operations in Greater Noida.

Expanded operations in Rajpura, Punjab and Sikkim in order to be close to their target markets

Awarded the Nasscom CNBCTV18 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 such as Impressions, Latex Plus, Resitec Air, Duet Luxury, Durafirm, Serenity and Amity.

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

2016

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.

2018

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

2021

Issued bonus shares in a ratio of 1:1

Received In Principle approval for ESOP by the Stock Exchanges

2022

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

2017

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

2019

1. Overview of Potential Targets

Kurl-on: Third Largest Organized Player in the Modern Mattress Segment

Kurl-on, one of the oldest and most trusted mattress brands in India, has a notable reputation in the manufacture and innovation of rubberized coir mattresses

Company Overview

Distribution Network (As on FY2023)

•

Founded in 1962, Kurl-on is part of the renowned Pai family business group based in South India

• Market leadership in Rubberized Coir Mattress

•

Third largest mattress player with ~11% market share in Indian organized modern mattress market

10 manufacturing plants strategically located across 6 states across India

• Operates through an unparalleled distribution and logistics network, coupled with one of the largest direct dealership

networks in the sector

4,500+ Multi Brand Outlets

500+ Exclusive Brand Outlets

4 Centralized Hubs

550+ Shop-in-Shop model outlets

10,000+ Dealer Touchpoints

Source: Company Filings.

Furlenco: Frontrunner in the Indian Furniture and Home Lifestyle Space

Facilitates products and services for efficient ‘rent, subscribe, buy and sell back’ of furniture under one roof

Company Overview

•

Incorporated in 2012, House of Kieraya (“Furlenco”) is a furniture rental company offering wide range of furniture products and services, such as cleaning, repairing, etc

• Offers entire home solutions (Furniture and appliances) for living rooms, bedrooms, and dining rooms, along with a host of

value-add services including free relocation, free swap, free deep-cleaning and damage waivers

• Unique tech-driven business model with end-to-end implementation of digital capabilities

• Serves customers through warehouse cum refurbishment facilities across tier 1 and tier 2 cities and has a network of

multiple vendors who contract manufacture furniture

• Presence across major cities in India including Mumbai, Pune, Gurugram, Bengaluru, Noida, Hyderabad, Chennai, Delhi,

Ghaziabad, Faridabad

Revenue (INR mn) and Customer Acquisitions

32.5k

67.2k

1,292

843

36.8k

1,547

FY21

FY22

FY23

Revenue

Customer Acquisitions

Source: Company Filings.

Furlenco: Rental + Sale Business Model

Continuum of product and service offerings for all furniture and lifestyle needs

Rent

Buy Brand New

Buy Remanufactured

Assured Buyback

Value Added Services

Loyalty & Rewards

Furlenco: Key Metrics

Furlenco has robust performance metrics

High LTV to CAC Ratio

• LTV to CAC Ratio of 9x (only 1 rupee spent on marketing for every 9 rupees earned)

Large Order Sizes

• Upfront collection of ~7.5x monthly revenues resulting in front loaded cash flows (INR 16k per order / ARPU of INR 2k per

month)

Utilization

• Utilization has always been at peak levels and touched a high of 92.4%

High Yielding Assets

• Currently managing an AUM of INR 300cr and ability to manage an AUM of INR 450cr • Assets are high yielding in nature, providing an average of ~7% monthly yield

Huge Subscriber Base

• ~350k homes furnished since existence, peak homes addition of ~8k per month • Current tech stack and refurbishing capacity has potential to serve an active subscriber base of 100k+ households

Note: CAC – Customer acquisition cost, LTV – Lifetime Value.

2. Acquisition Considerations

Proposed Acquisitions to Propel Augmentation of Addressable Market and Integration Across Value Chain (1/6)

• Post acquisitions, SFL would strengthen its competitiveness in mattress market as well as enter the furniture market • The gap with the next competitor would further widen post acquisitions and would take a lot of time and resources for the peers

to match the combined companies in terms of:

Leading market share in Indian modern mattress market supplemented by furniture capabilities

High growth potential of the combined business

Wider distribution network – number of EBOs and MBOs

Cross-selling opportunities given large use case for foam is furniture

Established brands / products across the value chain

Ability to invest more in targeted brands thereby creating further market visibility

Pan India network of production facilities and supply chain

Access to latest technology such as Vertical Variable Pressure Foaming (“VPF”) that reduces cost

Proposed Acquisitions to Propel Augmentation of Addressable Market and Integration Across Value Chain (2/6)

Strong Strategic Rationale for a Combination with Kurl-on

Opportunity for capacity optimization

Consolidation of Fragmented Market

• Strong pan-India brand positioning

• Sleepwell dominates in North and West; whereas Kurl-on in South

and East

Strengthened Product Offering

• Diverse product offerings ensuring no cannibalization

• Customers can choose between PU foam (Sleepwell) and

rubberized coir (Kurl-on) mattress

Improvement in Kurl-on’s Operational Efficiencies

• Potential to reverse decline in margins during last few years

• Significant scope of improvement in Kurl-on’s plant efficiencies,

RM landed costs and operational spends

Opportunity for white space realization

Manufacturing Facilities

Economies of Scale

• Complementarity across geographies, channels, price points and

products may result in incremental market share

• Better negotiating power with dealers, vendors and banks with

room to improve net margins over next 2-3 years

SFL

Kurl-on

Proposed Acquisitions to Propel Augmentation of Addressable Market and Integration Across Value Chain (3/6)

Organized Mattress Market shares by Region

62%

7% 31%

North

68%

17% 14%

South

71%

14% 15%

East

82%

5% 13%

West

Others

Kurlon

SFL

Business split by MBO / EBO

20%

80%

Industry

80%

20%

SFL

25%

75%

Kurl-on

EBO

MBO

Mattress Business Landscape (INR bn)

50 – 60

4.0 - 4.5

0.7 – 0.8

Industry Mattress MBO

Kurl-on Mattress MBO

SFL Mattress MBO (excl EBO)

Note: Metrics In terms of FY2023 revenue.

Strong Strategic Rationale for a Combination with Kurl-on

Diversification of Customer Base

• Premium brand (SFL) + Mass brand (Kurl-on)

• Migration from unorganized to organized market

Leveraging Distribution Channels

• EBO channel (SFL) + MBO channel (Kurl-on) resulting in

estimated incremental reach

• Better penetration into newer markets like semi-urban and rural

COGS and Network Optimization

• Potential opportunities to reduce raw material spend for the

combined entity

• Optimized manufacturing footprint will potentially lead to improvement

in capacity utilization and reduction in logistics costs

Cultural Fit

SFL

• Kurl-on being a family run business, will be a good cultural fit for

• People management / retention and integration will be much easier

Proposed Acquisitions to Propel Augmentation of Addressable Market and Integration Across Value Chain (4/6)

Kurl-on’s Brand Portfolio

Brands

Brief

Top selling Brands

Positioning

• Rubberised Coir Mattress • Foam Mattress • Spring Mattress

• Inspire • KurloBond • Desire • KurloCoir • Spine Therapy

• Mass and Mass Premium

• Collection of top international and

premium brands

• Spring Air, Englander, Chattam &

Wells

• Four Seasons

• Premium to Luxury

• Wholly owned subsidiary of KEL with

core focus on PU foam

• Goldline Plus • Heera • SilverLine

• B2B

• Range of modular furniture, home furnishings, home accessories

• Lounger sets • 3 Seater sets • Cots, Shoe Racks

• Mass Premium

Mattress

Foam and Other Products

Furniture

Proposed Acquisitions to Propel Augmentation of Addressable Market and Integration Across Value Chain (5/6)

International Brands Intoduced by Kurl-on Offer More ‘Choices’ to Customers

Brand

Features

➢ Kurl-on is already positioned with wide portfolio of brands to cater Indian consumers’ taste shifts towards

aspirational and premium products

➢ In FY20, Kurl-on acquired SpringAir Bedding – a franchise offering portfolio of luxury international brands

through licensing

➢ Further Kurl-on has formed a new entity - Belvedore International to increase focus on international brands

/ premium products

Affordable Luxury

Premium Luxury

• Offers pure PU Foam as well as spring

mattresses

• Micro coils, copper memory foam, latex and

fabric wrapped springs

• Pocketed spring support blended with

memory foam, natural latex

• Organic mattresses – 5 layered – memory foam, latex, double insulation cotton layer, pocket springs for support

• Natural latex supported with heavy duty base

foam

Brand partnerships across the spectrum of furniture, furnishings and accessories to upsell the other product categories

Proposed Acquisitions to Propel Augmentation of Addressable Market and Integration Across Value Chain (6/6)

Furlenco Offers Complementary Product Play

Increase in TAM – Entry into Fast Growing Market

• Entry into renting and selling branded furniture (a larger segment)

• Overall furniture market is ~$19bn; of which rental market is $3bn

(expected CAGR of 26 - 28% in next 5 years)

• 25% of overall market is organized

Faster Diversification

• Established Furlenco brand will save time to market and cost

• Strong design capabilities and digital play with limited players in

market, positions Furlenco well to reach the next level

Stronger Collaboration on R&D Efforts

• Specialized sleep solutions and design capabilities to align with

Furlenco’s focus on providing comfort and convenience

• Initiatives to create innovative products that blend foam technology

with furniture design

Leverage Furlenco’s platform to cross sell SFL’s products

• Large use case for foam is furniture

• SFL can cross sell mattresses and bedding products on Furlenco’s

platform - leading to increased sales

• Furlenco can offer Refurbishment-as-a-Service for SFL’s furniture

Powerhouse of Brands in the Furnishing Market in India

Brands enjoying leadership positions in respective foam based and rubberized coir based mattresses will be brought under one umbrella – SFL – further strengthening market leadership position

SFL

Kurl-on

Furlenco

Mattress

Furniture

Comfort / Technical / Furniture Foam

SFL is expecting to retain the brands of Kurl-on and Furlenco as is; Based on the market feedback in near future, positioning of the different brands on a Company level shall be decided upon

Revised Group Structure

SFL

93.66%

Interplasp (Spain)

100%

Joyce Foam (Australia)

100%

Staqo

94.66%

Kurl-on

35%

Furlenco

3. Key Competitive Strengths

Key Competitive Strengths

Growing Industry with Favorable Levers in Place

Impeccable Track Record with Consistent Focus on Breakthrough Innovation

Vertically Integrated Manufacturing Facilities across Globe

Wide Product Basket catering to Clients across Industries

Extensive Distribution Network

Best-in-class Management Team Backed by Diversified Board

Large Addressable Market with Increasing Demand for PU Foams

India flexible PU foam market has reached ~INR 110bn by the fiscal year 2023

India Flexible PU Foam Market (INR bn)

India Flexible PU Foam Market (FY23)

35-45 10-15 25-30

FY12

85-95

33-38

53-58

FY21

Moulded

CAGR

50-60

17-22

32-37

FY16 Slabstock

105-112

36-40

69-72

FY23

Slabstock 65%

Moulded 35%

10%

12%

13%

15%

50%

4% 5%

5% 6%

80%

Mattress

Furniture

Automotive

Footwear

Refrigeration

Industrial Insulation

Others

Types of Polyurethane Foam

Key Applications

Polyurethane foam

Flexible PU foam

Rigid PU foam

Slabstock

• Mattress • Furniture • Bedding

• Carpet

underlay • Garments

• Footwear • Acoustic insulation

Moulded

• Automotive seating

• Refrigeration • Thermo-ware

• Industrial insulation • Furniture

Indian Players Well-positioned to Capture Growth in Mattress Segment given their Deep Distribution Capabilities

Indian mattress market expected to demonstrate strong growth owing to consumer driven factors such as increasing population, rising urbanization and increase in disposable income

Indian Modern Mattress Market (INR bn)

Indian Modern Mattress Market Breakup

Growth Drivers:

123

FY18

FY23

CAGR

Mattress Market by Price Point (Mar’23)

Modern Mattress Market by Type (Mar’23)

65%

35%

FY18

60%

40%

FY23

Organized

Unorganized

Channel Contribution (Mar’23)

Modern Trade 8%

E-commerce 1%

• Growing consumption in India driven by new (~7mn) and replacement (~12mn) mattresses, totaling ~19mn units per year

• Clear transition from unorganized to organized sector – with the growth of branded / MNC players

• Hybrid formats of work-from-home culture continuing well beyond Covid is a huge opportunity

• Government initiatives such as smart city, Housing for All that favor the real estate sector fuel further demand

Above 50k 3%

20k-50k 18%

Below 8k 25%

8k-20k 54%

Spring 28%

Coir 22%

Foam 50%

Institutional 20%

General Trade 71%

Strong Macro Tailwinds Accelerating Market Shifts

Market growth fueled by rising disposable incomes, rapid shift to the organized sector and changing preferences towards greater variety of products

Rising Incomes with Middle-class Expansion

~3x More Spend on Living with Higher Income

Increased Share of Branded Products

High (1%)

Upper Mid (6%)

Increase in household spend on living (by Income Group) steps up ~3x while moving from one group to the next

•

Shift in consumer spend from asset creation to in- period consumption

High (1%)

High (3%)

Lower Mid (18%)

Low (76%)

Upper Mid (31%)

Lower Mid (43%)

Low (26%)

Upper Mid (42%)

Lower Mid (37%)

Low (18%)

– Diverging preferences of customers drive greater

variety, more SKUs and price points

– Value consciousness among customers aiding

growth of value-for-money brands

• Consumers are more digitally active and

brand aware

– Millennials and Gen-Z expected to be 75%+ of

population by 2030; will drive digital consumption

– E-commerce is unlocking access even in low

consumption density areas – more Indians will leapfrog from traditional retail to e-commerce

Low

Lower Mid Upper Mid

High

2010

2020

2030E

Sleepwell is Market Leader, Followed by Kurl-on

Sleepwell leads the market in both volume and value terms; market share majorly contributed from North and West India presence

% Value Market Share (Branded Modern Mattress Market)1

19%

Sleepwell

11%

Kurlon

12-14%

9-11%

5-7%

Competitor 1

Competitor 2

Competitor 3

Other Competitors

38-44%

Leading position in highly competitive market

Sleepwell leader in foam mattresses, whereas Kurl-on leads in rubberized coir mattresses

Sleepwell increased market presence with increase in % share in outlets

Sleepwell’s market share increased across all sizes (king, queen, single)

Note: (1) As on FY2023.

Sleepwell - Impeccable Track Record of Quality and Consistent Innovation Backed by Technology

Established brand presence helped Sleepwell maintain market share of ~19% in the Indian modern mattress market

Track record of innovative manufacturing backed by technology

Diversified product offerings…

Radio frequency identification (“RFID”) chips in mattresses helps check counterfeits

“Zero Turn” technology ensures mattresses don’t require periodic turning to avoid sagging

“Breathable visco-elastic” or “Memory foam” reduces stress and ensures correct sleep posture – SFL is the only manufacturer

“Neem fresche” technology in Sleepwell products for protection from various allergies

“SANtech” technology maintains improved air-flow, thereby enhancing firmness and durability of the material

“Comfort Cell” technology in the mattress to raise the comfort quotient to the consumer

Initiative to suggest customized mattresses that are best suited to the customer’s body structure, weight and certain diagnostic measurements

Available in multiple formats

Supportec

Firmtec

Softec

… supported by strategic investments in brand building (INR mn)

694

3.2%

FY20

522

2.1%

FY21

Ad Exp (INR mn)1 Ad Exp/ Revenue (%)1

704

2.5%

FY22

745

2.6%

FY23

Note: (1) Figures for the Consolidated entity (SFL).

SFL’s Strong Business Performance Backed by Balance Sheet

Long Term Rating Short Term Rating (CRISIL / ICRA)

AA- / -- A1+ / --

-- / A -- / A2

Competitor 1

BB+ / A A4+ / A1

FY22 Revenue (INR mn) FY21 Revenue (INR mn)

FY20-22

Revenue CAGR (%)

FY22 EBITDA Margin (%) FY21 EBITDA Margin (%)

FY22 PAT Margin (%) FY21 PAT Margin (%)

FY22 ROE1 (%) FY22 ROCE2 (%)

FY22 Net Debt / EBITDA FY22 Net Debt / Equity

Source: Company Filings. Note: (1) ROE = PAT / Net worth (2) ROCE = EBIT / (Total Assets – Current Liabilities), (3) NM stands for Not Meaningful (multiples are negative).

7,952 7,588 NMNM8,934 5,666 45.3% (1.0%)7.4% (3.6%)3.6% (8.9%)(19.1%)NMNM9.7% 11.0% 14.9% 7.6% 9.9% 15.6% 17.3% 1.4x 0.3x 28,656 24,372 (7.0%)2.4% 14.2% (0.7%)4.4% (1.2%)(0.6%)3

Integrated Manufacturing Facilities in India, Coupled with Global Manufacturing Prowess (1/2)

Extensive global presence and export relations with 25 nations

Inhouse manufacturing of raw materials and vertical integration

Reverse logistics benefits – same infrastructure for supply of raw materials to mfg. facilities and onward supply of finished products to distributors

India

Rajpura (Punjab)

Surajpur (UP)

Kala Amb (HP)

Sahibabad (UP)

Greater Noida (UP)

Jalpaiguri (WB)

Jabalpur (upcoming Mfg. plant)

Silvassa (D&N Haveli)

Nandigram Talwada (Gujarat)

Erode (Tamil Nadu)

Hyderabad (Telangana)

PU Foam manufacturing and processing PU Foam processing

Spain

Yecla

Australia

Perth

Adelaide

Sydney Canberra

Melbourne

Auckland

New Zealand

Integrated Manufacturing Facilities in India, Coupled with Global Manufacturing Prowess (2/2)

Company benefits from synergized business operations through manufacturing of home comfort products as well as raw materials

11 Manufacturing Units in India1 • Pioneers in VPF – World’s most environmentally responsible foam manufacturing. Equipped with state of the art

HENNECKE Foaming machines

• Largest integrated manufacturer of PU foam and mattresses • 129,000 MTPA

Spain Unit

• Caters to 1% of Europe’s market • ‘Bed in a Box’ concept opens opportunities to target US markets • 16,000 MTPA

5 Manufacturing Units in Australia

• Sustainable stable business • 40% market share in Australia • 10,000 MTPA in Australia

Note: (1) Excluding Jabalpur plant.

‘A Mattress for Every Indian’ is the Motto behind the Newly Envisaged Plant in Jabalpur

SFL is setting up an integrated manufacturing plant at Jabalpur to cater the traditional market (currently forming 64% of the total Indian mattress market size)

• Targeting cotton / EPE foam mattress users (traditional market)

–

64% Indians sleep on cotton mattresses, durees, chattais, etc.

Objective

• Increasing penetration by shifting from traditional to modern market

• 3-fold mattress which can also be used as sofa-cum-bed

• Durability and affordability for rural / semi urban markets

Technology

• Key benefits of VPF technology

– Highest quality level and environmentally friendly – Enhanced properties with 10-15% lower cost – Reduced waste and improved worker safety –

Increased production capacity

• Manufacturing plant at Jabalpur - centrally located and well connected to the entire country

Plant Details

• Plant spread across ~28.95 acres of land

• Capex of INR 1.04bn

• Plant yet to be commissioned

Jabalpur (upcoming manufacturing plant)

Wide Portfolio Offering Technologically Advanced Products

Innovation and adoption of contemporary manufacturing technologies enables production of personalised and niche home comfort products

41%

Mattresses Segmentation

My Mattress, Spring range, Technology range, Custom Cell range, Back Support range, Flexi PUF range, Showroom range, Economy range, SleepX Online brand, Luxury range, Revital and GenX range, Spring range, Durafirm range, Omni and Basic range

Product Portfolio

26%

Technical Foam

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

Sound Absorption foam

Automotive foam

Reticulated foam

Silentech foam

UV stablefoam

21%

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

12%

Furniture Foam

Sleepwell Resitec, Sleepwell Cool Gel, Primo, Pro sofa

Note: Revenue mix for FY23.

Well Recognised and Established Brands

Company has proven track record of nurturing winning brands that reflects comfort and luxury enhancing the lifestyle of modern households

Indian Brands

Flagship brand for mattresses and comfort accessories

Pure PU foam

E-commerce brand for mattress

Superior quality polyester foam for lamination

Mattress brand

Spanish subsidiary

Australian subsidiary

International Subsidiaries

Extensive Distribution Network in India; Global Sales Expansion Opportunity into Europe/ North America using Spain Facility

Strategically located distribution network of exclusive distributors, retail dealers and multi-brand outlets backed by digital technology enable SFL to efficiently offer its products worldwide

Long term association with distributors

Strategic proximity

IT-enabled distribution network

Active engagement

Long term relationship of 20+ years

Distributors are in strategic proximity – helps minimize product damage

Digitization to reduce turnaround time and quicken strategic decisions

150+ sales personnel actively engage with key distributors

Exclusive Sleepwell Outlets across 3 Formats

115+ Channel Partners

5,600+ Exclusive Brand Outlets

Sleepwell World Average size 1,000 Sq. Ft/ 427 Outlets

Sleepwell Galleries Average size 600 - 950 Sq. Ft/ 1,067 Outlets

Sleepwell Shoppes Average size 200 - 350 Sq. Ft/ 1,114 Outlets

➢ Global distribution: Technical foam grades are sold to finished products manufacturers in India, Middle East,

South Asia, Europe, Australia, USA, Brazil and Argentina

➢ Spain facility to cater to extensive sales opportunities in Europe and North America

➢ Dedicated sales team to handle business development and relationship management of the technical foam

manufacturing business

Note: (1) As on 31st March, 2023.

7,500+ Multi Brand Outlets and Cushioning Partners

Ecommerce Channel / Penetration

➢ The Company has witnessed an increase in its online sales

in FY23, with 24% growth YoY

➢ Online sales contributes 8% of the total sales volume

Best-in-class Management Team Backed by Diversified Board (1/2)

Versatile leadership and family-based management team with proven experience of successfully navigating SFL through domestic and international shocks

Key Management

Name

Biography

Name

Biography

Nilesh Mazumdar CEO - India

Joined the Company in Feb 2023

• • Previously served as CEO of Construction Chemical division at Pidilite for 14 years

Amit Gupta Group CFO

Joined the Company in May 2023

• • Previously served as Vice President (Strategy and M&A) at Samvardhana Motherson Group

Kevin Graham COO – Australia

• Associated with Joyce since 2011 • Previously held management roles with

international specialty retailer Toys ”R” Us

Md. Iquebal Ahmad Company Secretary and Compliance Officer

Joined the Company in Nov 2008

• • Associate member of the Institute of Company

Secretaries of India

Alejandro Palao Serrano CEO – Spain

• Associated with Interplasp since several years • Has held many roles and headed multiple

departments

Pertisth Mankotia Chief Information Officer

Joined the Company in Sep 1995

• • Heads the IT department since 2015 and has

20+ years of experience in the IT sector

Best-in-class Management Team Backed by Diversified Board (2/2)

SFL is led by ever-guiding board consisting of experienced and formidable team with well defined strategic direction

Board of Directors

Name

Biography

Name

Biography

Name

Biography

Rahul Gautam Chairman and Managing Director

Namita Gautam Whole-time Director

Rakesh Chahar Whole-time Director

•

Founder of the Company and MD since 1996 46+ years of experience in the home comfort products and PU foam industry

Associated since 1991 and whole-time director since 2003 Has headed the HR, Marketing and Projects departments

Associated since 1990 and director since 2003 31+ years of experience in selling and marketing bedding products and PU foam

Tushaar Gautam Whole-time Director

Anil Tandon Independent Director

Som Mittal Independent Director

•

• •

Associated since 2002 and director since 2007 20+ years of total experience in heading Production, Research and Development

Associated since 2016 Currently serves as MD of Tex Corporation

Associated since 2016 Has several years of experience in manufacturing and information technology sectors

Ravindra Dhariwal Independent Director

Lt Gen Vijay Ahluwalia Independent Director

Meena Jagtiani Independent Director

• •

Associated since 2016 Previously served as Group CEO of Bennett and Coleman

Associated since 2018 Previously served as a Judge of Armed Force Tribunal

30+ years of HR experience Previously held various roles in Aditya Birla Group, Daksh eServices and Korn/Ferry

4. SFL - Financial Summary

SFL – Consolidated Financial Performance

Revenue (INR mn)

EBITDA (INR mn) and EBITDA Margin (%)

PAT (INR mn) and PAT Margin (%)

Networth (INR mn) and Net Debt / Equity Ratio

• Revenue mix % from overseas operations saw a huge increase in FY21 due to the addition of full-year Spain revenues

• Prices of key raw materials have been

volatile in recent past and are expected to be stable in near term

9,264 11,932 14,002 16,087 0.27x 0.23x 0.30x 0.33x FY20FY21FY22FY231,943 2,402 2,187 2,031 8.9% 9.9% 7.6% 7.1% FY20FY21FY22FY233,004 3,642 3,149 2,973 13.8% 14.9% 11.0% 10.4% FY20FY21FY22FY2321,736 24,372 28,656 28,733 FY20FY21FY22FY23SFL – Consolidated Income Statement

Particulars (INR mn)

Operational Revenue

Cost of Materials consumed

Other Manufacturing Expenses

Employee costs

Other Expenses

EBITDA

Margin %

PAT

Margin %

FY21

24,372

13,888

496

2,317

4,029

3,642

14.9%

2,402

9.9%

FY22

28,656

18,770

623

2,555

3,559

3,149

11.0%

2,187

7.6%

FY23

28,733

17,868

677

2,792

4,423

2,973

10.4%

2,031

7.1%

Revenue By Geography (FY20)

Revenue By Geography (FY23)

15%

14%

15%

81%

71%

•

Prices of two main raw materials of PU have behaved differently during last 1 year

– Polyol prices were on a gradual decline

from INR 203/kg (Q3FY22) to INR 130/kg (Q4FY23); while TDI prices increased from INR 212/kg to INR 231/kg during the same period

EBITDA margin reduced from FY21 to FY22 primarily due to increase in RM costs

FY23 revenue was flat YoY due to softer demand in India on account of inflation and weaker demand in Spain

SFL - Consolidated Balance Sheet and Cash Flow

Particulars (INR mn)

Total Equity

Non-current Liabilities

Borrowings

Lease Liabilities

Current Liabilities

Borrowings

Lease Liabilities

Trade Payables

Non-current Assets

Current Assets

Inventories

Cash and Bank balances1

Trade Receivables

Particulars (INR Mn)

Cash flow from Operating activities

Cash flow from / (used in) Investing activities

Cash flow from / (used in) Financing activities

Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

s m e t I

t e e h S e c n a l a B

t c e l e S

w o F h s a C

FY21

11,932

1,326

1,086

730

201

3,301

12,380

3,153

581

3,022

FY21

2,539

(2,083)

(323)

133

441

574

FY22

14,002

2,282

1,056

1,096

231

2,854

15,768

3,145

411

2,694

FY22

1,971

(3,064)

927

(166)

574

408

FY23

16,087

2,838

875

1,838

160

2,594

12,775

3,313

425

2,820

FY23

2,120

(2,684)

5792

408

423

Note: (1) Includes bank balance (2) Includes effect of exchange differences on translation of foreign currency cash. .

•

Lean balance sheet with significant headroom for additional debt

• Healthy capital structure with a focus to mitigate all existing and potential risks, maintain shareholder, vendor and market confidence and sustain continuous growth and development

• Consistent cashflow generation from

operating activities has given ample support for the capacity expansion plans

5. Future Growth Strategy

Expansion Strategy

Strengthen leadership position by offering high quality comfort products globally

Continue to increase TAM, leverage brand equity and product premiumization

Continue to focus on consumer preferences and development of personalized products

Expand distribution network and export sales

• Strengthen brand leadership

• Product extension in higher-grade technical PU foam opportunity

• Capture traditional (64% of total Indian mattress market) and mass market (Kurl-on)

• Vertical integration across foam to

furniture value chain

• Leverage and integrate existing suite of products, know-how and manufacturing capabilities to produce niche products

• Manufacture higher volumes of high-

margin customized products

• Stay ahead of the curve by judiciously investing in R&D and new product development for innovation and design

• Augment existing distribution network to

expand in Tier 1 and Tier 2 cities

• Leverage domestic sales network to

create significant demand at high price- points and effectively offset transportation costs

• Digitization to reduce turnaround time and

quicken strategic decisions

• Scale up export operations especially using the Spain manufacturing plant to cater to Europe and North America

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. The information set out herein is provided only as at the date of this Presentation (unless stated otherwise), its accuracy is not guaranteed, and it may be subject to updating, completion, revision, verification and amendment without notice and such information may change materially. This Presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. This presentation does not comply with the disclosure requirements prescribed by the SEBI or any other applicable authority in relation to a public issue of securities on the Indian stock exchanges. It should be understood that subsequent developments may affect the information contained in this Presentation, which neither the Company nor its advisors or representatives are under an obligation to update, revise or affirm. This document is a summary only and it is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the financial or trading position or prospects of the Company. This Presentation has not been and will not be reviewed or approved by any statutory or regulatory authority in India or any stock exchange in India or any other jurisdiction. You should conduct such independent investigations and analysis of the Company as you deem necessary or appropriate in order to make an independent determination of the suitability, merits and consequences of investments in the Company. The information contained in this Presentation is not to be taken as any recommendation made by the Company or any other person to enter into any agreement with regard to any investment. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the accuracy, completeness or correctness of any information, including any forward-looking statements, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. You will be solely responsible for your own assessment of the market and the market position of the Company and you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. It should be understood that subsequent developments may affect information contained in this Presentation, which neither the Company, nor its affiliates, advisors or representatives are under an obligation to confirm. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This Presentation is based on information regarding the Company and the economic, regulatory, market and other conditions as in effect on the date hereof. Subsequent developments may affect the information contained in this Presentation, which neither the Company nor any of their Representatives are under an obligation to update, revise or affirm. This Presentation and its contents are confidential and may not be taken away, copied, published, disseminated, or reproduced or redistributed or passed on directly or indirectly to any other person, whether within or outside your organization or firm, or published in whole or in part, for any purpose by recipients directly or indirectly to any other person. This document is a Presentation and is not and should not be construed as an offer letter, offering circular, offering document, draft red herring prospectus, red herring prospectus, invitation, advertisement or prospectus as defined under the Indian Companies Act, 2013 as amended and the SEBI ICDR Regulations, as amended or any other applicable law in India. This Presentation includes certain external industry data and projections that have been obtained from industry publications, surveys and forecasts. Accordingly, the Company and its respective affiliates, advisers and representatives make no representation as to the accuracy or completeness of that data, and none of them shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This data involves risks and uncertainties and is subject to change based on various factors. No representation or claim is made that the results contained in this Presentation will actually be achieved. All industry data contained in this Presentation is based on data obtained from the sources cited and involve significant elements of subjective judgment and analysis, which may or may not be correct.

Sheela Foam Ltd

For further information please contact our Company Secretary Mr. Md. Iquebal Ahmad Sheela Foam Ltd Tel: 97170 96729 Email: investorrelation@sheelafoam.com

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