STYLAMINDNSE28 January 2022

Stylam Industries Limited has informed the Exchange about Investor Presentation

Stylam Industries Limited

Ref . No. : S I VCH D / 2021-22 / 28012022

oated: 28.o1.2022

BSE timited (BSE) Corporate Relation Department Phiroze jeejeebhoy Towers, 25th Floor, Da lal Street, Mumbai- 400001

The Manager Listing Department National Stock Exchange of lndia timited (NSE) Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra, Mumbai -400051

Scrip Code: 526951

Symbol: SWIAMIND

Sub: lnvestor Presentation forthe Quarter & Nine Months ended on 3ft December, 2021

Dear Sir/Mam,

Pursuant to Regulation 30 of the Securities and Exchange Board of lndia (Listing Obligations and Disclosure Require ments) Regulations,2015, Please find enclosed the Presentation forthe Quarter & Nile months ended on 31't December,2021.

Please take the same on record

Thanking You,

For

am lndustries Limited

Jagdish Gupta Managing Director

Stylam lndustries Limited Begd. offt(e: sCO 14, Sector 7 c. Madhya Marg, chandigarh (tNDtA)- 160019 tt +91-172 - 5021555/5021666 t: +91- 1 72-50214g5 worktl:Plot No. 192'193, lndustrial AreaPhase'l Panchkula (Haryana) INDIA- 1341091.: +g1-172-2563907 /2565387 wo.ks ll: village Manak rabra towards Raipur Rani, Mattewara chowk, Distt. panchkura (Haryana) w: www stylanr.com qil: L2o2 r r cHr 99r pLcor 1732 (Govt. of India recognised star Export House)

S T Y L A M I N D U S T R I E S L I M I T E D

I N V E S T O R P R E S E N T A T I O N

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Table of Contents

C O R P O R A T E O V E R V I E W

P R O D U C T P O R T F O L I O

I N F R A S T R U C T U R E & P R E S E N C E

M A R K E T I N G I N I T I A T I V E S

C E R T I F I C A T I O N S & A W A R D S

F I N A N C I A L U P D A T E S

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S H A R E H O L D E R S V A L U E C R E A T I O N

Stylam Industries Limited

Corporate Overview

•

Stylam Industries is the one of the fastest growing companies in the high-quality decorative laminates and allied products industry.

• We operate Asia’s largest single location laminate manufacturing plant with a diverse product portfolio, catering to a wide range of customer preferences, built with over 30 years of experience in the industry.

• We are a pioneer in India for introducing the PU+ Lacquer Coating process thereby producing high quality, high value-add laminate finishes. Apart from laminates, we have state of the art technologies and manufacturing facilities for Solid Acrylic Surfaces and Panels.

• We also diversified into a new segment and added a short cycle press capacity for lamination

of impregnated paper on Medium Density Fiber (MDF) panels.

• About two-third of our revenues are derived from exports to over 65 countries; the balance

being derived from our presence across the Indian subcontinent.

Stylam Industries Limited

Diversified Product Portfolio (1/3)

Stylam laminates have set benchmarks in the past because of the unique design range and consistently high quality.

FASCIA brings a unique façade system, manufactured using special quality resins, thereby providing effective weather protection.

CUBOID - modular restroom and locker cubicle systems. The range has been crafted with the finest materials and highest quality of fixtures and fittings.

Marvella Solid Surfaces; the perfect recipe for an exquisite décor. These surfaces offer unseen and spellbinding patterns along with long-lasting sturdiness.

Anti-Fingerprint Laminates are used in the most demanding interior design applications. A unique technology during manufacturing ensures that finger marks are almost never visible.

GLOSSPRO+ Laminates are crafted with State-of-the-art machines having a cutting- edge German Technology. The brilliance of gloss shall stay through years without any signs of wearing out.

Granex Solid Surfaces is an extremely versatile product - tough, durable, non-porous and repairable, that can be customized to integrate seamlessly.

ANTI-BACTERIAL & ANTI-FUNGIE LAMINATES

Anti-bacterial & Anti-fungie Laminates are intended for applications where there is a need for additional protection on the surfaces against bacteria/fungie.

Stylam Industries Limited

Diversified Product Portfolio (2/3)

What makes UNICORE unique is the identical colour of the decorative surface and its core layers as well.

Digital Laminates have just the features everyone has needed. A whole new world of creative and quality laminates among customized designs.

Stylam Synchro Laminates have the real feel of wood and an elegant natural look while carrying all advantages of a laminate.

Plus Guard Stylam Laminate provides a highly durable surface in lab conditions and has better abrasion and scratch resistance.

SYNCHRO LAMINATES

CHEMICAL RESISTANT LAMINATES

POST FORMING LAMINATES

MAGNETIC LAMINATES

MIRROR SHIELD LAMINATE

CHALK BOARDS & MARKER BOARDS

Post Forming Laminates enhance the decorative property of the edges of any regular laminate by ensuring no seams around the corners and a smooth, evenly laminated surface.

Magnetic Laminates have a strong magnetic effect and can be written on with chalks or special board markers. They are ideal for a wide variety of applications.

Mirror laminates are considered ideal for adding flair to light duty, horizontal or vertical applications. They can be used on walls, furniture, retail fixtures, signages, exhibits and display areas.

Chalkboard Laminate is the perfect solution for any space or application that demands a durable and affordable writing surface.

Stylam Industries Limited

Diversified Product Portfolio - Multiple Applications (3/3)

Stylam Industries Limited

Manufacturing Infrastructure: One of the largest in Asia (1/2)

Stylam Industries Limited

Manufacturing Infrastructure: State of the Art Facilities (2/2)

• Stylam operates one of the largest single location laminate manufacturing plants in Asia,

spread across 44 acres having an annual capacity of 14.3 mn sheets.

• We are a Global Pioneer for the ‘Hot Coating Process’ of PU+ Lacquer coating on thin laminates. This one-of-a-kind Hot Coating Process machine is made with a patented technology by KLEIBERIT and BARBERAN.

• We are also a Pioneer in India for Solid Acrylic Surfaces, setting up the first production line to

manufacture these products in India.

• We recently received a Certification from NSF International, USA for our Solid Acrylic Surface

products.

• Over 1,200 employees devote themselves to Stylam and its vision with a smile daily.

Stylam Industries Limited

Strong Global & Domestic Presence

Well penetrated globally as well as a wide domestic presence

Global presence in over 65 countries across Europe, Middle & Far East, the Americas (North and South), Asia, Africa and other geographies;

Increasing domestic presence across the country.

Stylam Industries Limited

Marketing Initiatives

Stylam Industries Limited

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Recent Certifications

• Stylam’s status has been upgraded to “Three Star Export House” from the earlier

“Two Star Export House” as per the Foreign Trade Policy provisions.

• NSF International, USA recognized and certified Stylam authorizing the

Company to bear the NSF mark.

• Our Company is certified under the AEO programme (Authorized Economic

Operator) by the Indian Customs.

Stylam Industries Limited

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Awards & Recognitions

“Over the last three decades we have strived to achieve our dream which has been a constant endeavor. We aim to improve each day and these recognitions motivate us to aim higher and perform better.”

The ISO 9001:2015 certification is a hallmark of integrity, quality and reliability. The design and efficiency of the laminates have earned us the CE Marking Award.

Stylam takes pride in being recognized as:

Export House by the Government of India, meeting all the quality, safety and green standard requirements while operating as a responsible corporate citizen.

Recognised by Financial Times and Statista as one of the FT 1,000 High-

Growth Companies Asia-Pacific 2018.

Honored with the Power Brands Rising Star Award 2016.

Honoured by the Renewable Energy Department for commendable work in

adopting energy conservation measures under the L.T. Industry Category.

Stylam Industries Limited

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Summary Financial Performance (Consolidated)

(₹ crore)

Net Revenue

EBITDA

PAT

(₹ crore)

Net Revenue

EBITDA

PAT

Q1FY22

Q2FY22

Q3FY22

Q4FY22

YTD FY22

131

172

169

Q1FY21

Q2FY21

Q3FY21

Q4FY21

115

124

167

471

FY21

476

Stylam Industries Limited

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Quarterly Sales Performance

115

124

167

103

Q1FY21

Q2FY21

Q3FY21

Q4FY21

Domestic

Figures in ₹ crore unless mentioned otherwise

Stylam Industries Limited

131

Q1FY22

Exports

172

104

169

106

Q2FY22

Q3FY22

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Profit and Loss (Consolidated)

(₹ crore)

Net Revenue

Material Consumption

Contribution

Contribution Margin (%)

Employee Expenses

Other Expenses

EBITDA

EBITDA Margin (%)

Other Income

Finance Costs

Depreciation and Amortization

Less: Exceptional Items

PBT

PBT Margin (%)

Tax Expense

PAT

PAT Margin (%)

Sheets Sold (# mn)

Stylam Industries Limited

Q3FY22

Q2FY22

Q3FY21

9MFY22

169

41.5

14.8

12.7

9.0

2.4

172

101

41.5

14.2

12.1

8.5

2.7

124

49.5

20.5

14.0

10.0

1.9

471

268

203

43.1

16.0

13.0

9.3

6.9

FY21

476

247

229

48.2

20.0

14.8

11.5

6.9

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Balance Sheet (Consolidated)

ASSETS (₹ crore)

9MFY22

Fixed assets

Capital work in progress

Investment in property

Other non-current assets

Total non-current assets

Inventory

Trade receivables

Cash and bank

Other current assets

Total current assets

Total assets

180

185

122

124

296

481

FY21

188

193

213

407

LIABILITIES (₹ crore)

9MFY22

FY21

Equity share capital

Other equity

Net Worth

Long term borrowings*

Short term borrowings

Total Debt

Trade payables

Other current liabilities

Other non - current liabilities

Total liabilities

292

300

251

260

Total equity and liabilities

481

407

Note - *Long Term Borrowings include current maturities

Stylam Industries Limited

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Historical Sales Performance

338

230

108

FY18

294

204

FY17

Figures in ₹ crore unless mentioned otherwise

Stylam Industries Limited

460

462

302

308

158

FY19

154

FY20

Exports

Domestic

476

328

148

FY21

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Improving Margin Profile

20.0%

17.3%

17.2%

15.5%

FY17

14.5%

FY18

FY19

FY20

FY21

EBITDA

EBITDA Margin

Figures in ₹ crore unless mentioned otherwise

Stylam Industries Limited

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Balance Sheet Transformation

183

146

126

186

187

204

112

FY17

FY18

FY19

FY20

Net Worth

Net Debt

260

FY21

Figures in ₹ crore unless mentioned otherwise

Stylam Industries Limited

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Improving Return Profile

23.8%

22.1%

22.6%

17.4%

18.1%

12.7%

FY20

FY21

9MFY22*

RoE

RoCE (post-tax)

Note – RoE and RoCE for FY20 has been computed without considering exceptional item for better comparison; *9MFY22 RoE and RoCEs are on an annualised basis.

Stylam Industries Limited

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Review of Financial Performance (Q3FY22)

•

Stylam maintained its strong performance in the third quarter with sales of INR 169 crore, a solid 36.0% YoY growth.

Sales growth during the quarter was backed primarily by exports, which were INR 106 crore (25.6% YoY and in line with Q2FY22). Domestic sales witnessed strong YoY growth to INR 63 crore (57.8% YoY), but de-grew QoQ given the pick-up of the third wave of Covid and the omicron variant.

The Company sold 2.4 million laminate sheets during the third quarter of FY22 (vs. 1.9 million in Q3FY21; a 24.5% YoY growth). Per sheet average realizations vary based on the product mix during the period.

The industry continues to witness pressure in raw materials, significantly impacting margins. This is attributable to the supply chain constraints witnessed globally. To exacerbate the situation logistics and freight costs have also witnessed significant increases.

• Consequently, our contribution margin witnessed pressure and stands at 41.5% for Q3FY22. Despite these challenges, EBITDA for the quarter stood at INR 25 crore. In terms of margins, it stood at 14.8% (vs. 14.2% in Q2FY22 and 20.5% in Q3FY21).

•

Stylam has maintained its working capital despite adversities; the cycle stands at 93 days for the third quarter (vs. 92 days for Q2FY22).

• Net debt witnessed a slight uptick and stood at INR 76 crore as on 31st December 2021. Net worth stands at INR 300

crore

Stylam Industries Limited

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Update: Foray into Plywood

•

The global Plywood market is estimated at USD 43 billion in 2020 and is projected to reach USD 58 billion by 2026.

The Indian Plywood market is estimated at approximately INR 25,000 crore (as per Plyreporter) as compared to other panels (MDF, Particle board etc.) which is about INR 6,000 crore.

India is predominantly a Plywood consuming market with the mix of Plywood to other panels (MDF, PB etc.) being about 80:20.

• Given the long-term thesis and the recent pick-up in construction activity, home renovations and the building

materials sector as a whole, we are confident of setting up and scaling this new vertical.

•

Stylam received an approval from the Board on the 27th of May 2021 to expand into the Plywood segment with an estimated outlay of upto INR 60 crores.

• Consequently, the Company set up a wholly owned subsidiary, Stylam Panels Limited with an authorized capital of

INR 2 crores with a face value of INR 10 each.

•

The Company envisages its entry into the premium plywood segment in addition to the mass consumption market and the industrial commercial segment.

Stylam Industries Limited

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Vision 2021-2025

•

Increase capacity utilisation on the back of completed expansion (capacities in place to double revenues).

Improve and enhance share of value-add products in the product mix as well as expanding the product range.

• Strengthen domestic presence with a deeper reach and penetration and creation of a strong brand.

• Expand coverage across newer exports regions along with increasing business with existing partners.

• Setting up the Plywood manufacturing facility - Stylam Panels Limited incorporated.

•

To be a net debt free Company.

Stylam Industries Limited

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Value Creation for Shareholders

1,780

• During

Q4FY21,

Company completed its sub-division of shares (i.e. share split).

the

1,183

816

• One share with Face Value INR 10 was

split into two shares of INR 5 each.

•

The total outstanding shares of the company increased from 84,74,030 to 1,69,48,060.

Q3FY21

FY21

Q3FY22

Market Capitalization (₹ crore)

Stylam Industries Limited

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Safe Harbor Statement

This presentation and the accompanying slides (the “Presentation”), which have been prepared by Stylam Industries Limited (the “Company”), have been prepared solely for information purposes and DOES not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied on in connection with any contract or binding commitment whatsoever. The Presentation is not intended to form the basis of any investment decision by a prospective investor. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, reliability or fairness 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. In particular, but without prejudice to the generality of the foregoing, no representation or warranty whatsoever is given in relation to the reasonableness or achievability of the projections contained in the Presentation or in relation to the bases and assumptions underlying such projections and you must satisfy yourself in relation to the reasonableness, achievability and accuracy thereof.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the wind power industry in India and world-wide, the Company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.

No responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this Presentation and any and all responsibility and liability is expressly disclaimed by the Management, the Shareholders and the Company or any of them or any of their respective directors, officers, affiliates, employees, advisers or agents.

Stylam Industries Limited

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T H A N K Y O U

REGISTERED OFFICE: SCO 14, Sector-7C, Chandigarh Plant 1: Plot No. 191, Industrial Area-1, Panchkula, Haryana Plant 2: Village Manak Tabra, Ramgarh-Raipur Rani Road, Distt. Panchkula, Haryana Website: www.stylam.com

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