Delta Galil Industries Ltd. · TASE:DELG

Delta Galil Industries — Q3 2018 Earnings Presentation

20 slides from Delta Galil Industries's earnings presentation, November 2018

  1. Slide 1: Results Overview Q3 2018

    RESULTS OVERVIEW Q3 2018 NOVEMBER 2018

  2. Slide 2: ‫האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד‪ ,‬ועל מנת לקבל

    ‫האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד‪ ,‬ועל מנת לקבל תמונה מלאה של פעילות החברה ושל הסיכונים עימם מתמודדת החברה‪,‬‬ ‫יש לעיין בדיווחיה השוטפים של החברה לרבות בדוח הרבעוני לתקופה שהסתיימה ביום ‪ 30‬לספטמבר ‪.2018‬‬ ‫בין היתר‪ ,‬העובדות והנתונים ששימשו בסיס למידע המפורט במצג

  3. Slide 3: Q3 2018 Highlights

    Q3 2018 R E S U L T S O V E R V I E W Q 3 2 0 1 8 HIGHLIGHTS CONCLUDED THE QUARTER WITH  9% increase in sales  10% increase in EBIT excluding one-time items STRONG QUARTER FOR DGUSA  9% increase in sales and 49% increase in EBIT to LY  Stronger H2 than H1 due to seasonality Significant improveme

  4. Slide 4: Q3 2018 Highlights

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 Q3 2018 HIGHLIGHTS Delta European Brands  Now including Schiesser and Eminence’s brands  $27.1M contribution to sales from Eminence  Softness in European market contributed to 4% drop in Schiesser sales DGPB EBIT impacted by shift in sales from Q3 to Q4 a

  5. Slide 5: Eminence Acquisition

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 EMINENCE ACQUISITION  Completed on July 6th. Consolidated group results starting Q3/2018  Eminence will be part of Delta European brands Segment together with Schiesser  $27.1M contribution to sales in Q3/2018  Increase Delta’s BRANDED PORTFOLIO from 68%

  6. Slide 6: Eminence Purchase Price Allocation

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 EMINENCE PURCHASE PRICE ALLOCATION €M CASH AND RESTRICTED CASH, NET 5.3 WORKING CAPITAL 32.0 FIXED ASSETS 18.2 CUSTOMERS RELATIONSHIP 28.9 AND LICENSES AGREEMENT BRANDS 29.9 GOODWILL 35.7 DEFERRED TAX LIABILITIES, NET (18.5) LIABILITIES (4.2) TOTAL ACQUIRED

  7. Slide 7: One-Time Items

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 ONE-TIME ITEMS Q3 AND Sep YTD 2018 )$ MILLION( Q3 Sep YTD RESTRUCTURING COST IN GUM 5.4 5.4 DEAL COST EMINENCE 0.3 4.3 ACQUISITION ADJUSTMENTS 3.8 3.8 EMINENCE (inventory step up) TOTAL IMPACT ON EBIT 9.6 13.5 TAX 2.5 3.8 TOTAL IMPACT ON NET PROFIT 7.0 9.7 T

  8. Slide 8: Q3 2018 Results

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 Q3 2018 ($ million) % change vs RESULTS Q3 2018 Q3 2017 last year Sales 370.8 340.3 9.0% Operating Profit 17.0 24.2 (29%) +9% % from sales 4.6% 7.1% Sales Operating Profit Sales in original currency +9% 26.7 24.3 10% Excluding one-time items Sales excluding

  9. Slide 9: YTD 2018 Results

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 YTD 2018 ($ million) RESULTS % change vs 2018 2017 last year Sales 1,044.2 996.4 5% Operating Profit 42.3 52.1 (19%) % from sales 4.1% 5.2% +5% Sales Sales in original currency +3% Operating Profit Excluding one-time items 55.9 54.9 2% Sales excluding Eminen

  10. Slide 10: Q3 Sales and EBIT by Segment

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 Q3 SALES AND EBIT BY SEGMENT % change in ($ thousands) SALES EBIT original Q3 2018 Q3 2017 % change currency Q3 2018 Q3 2017 Delta USA 108,704 100,160 9% 9% 8,836 5,917 % from segment sales 8.1% 5.9% Global Upper Market 78,239 78,801 (1%) (1%) 5,053 9,281 %

  11. Slide 11: YTD Sales and EBIT by Segment

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 YTD SALES AND EBIT BY SEGMENT % change in ($ thousands) SALES EBIT original 2018 2017 % change currency 2018 2017 Delta USA 330,302 328,148 1% 1% 20,387 20,284 % from segment sales 6.2% 6.2% Global Upper Market 222,456 221,581 0.4% 0.4% 15,428 24,417 % from

  12. Slide 12: Sales Analysis by Geographic Area

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 SALES ANALYSIS BY GEOGRAPHIC AREA ($ thousands) Q3 YTD % change % change % of % of % % of % of % 2018 2017 in original 2018 2017 in original sales sales change currency sales sales change currency U.S.A 185,519 50% 177,549 52% 4% 4% 556,909 53% 561,845 56% (

  13. Slide 13: Segmental Results on a Quarterly Basis

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 SEGMENTAL RESULTS ON A QUARTERLY BASIS Excluding one time items 2017 2018 TRAILING TWELVE ($ thousands) Q3 Q4 Q1 Q2 Q3 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 5,917 100,160 10,016 117,174 4,966 102,688 6,586 118,911

  14. Slide 14: Capital Expenditures

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 CAPITAL EXPENDITURES 33.3 ($ million) 23.5 Manufacturing .…….…………………… 16.4 Schiesser* ……….……………………. 3.7 Delta Israel ….………………………..... 4.4 DGPB** ….……………………….…….. 5.4 Others ….……………………………..... 3.4 YTD YTD Total ……...………………………..….. 33.3 2017 2018 * excluding m

  15. Slide 15: Balance Sheet

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 BALANCE ($ million) SHEET % FROM % FROM Sep. 30 2018 Sep. 30 2017 TOTAL TOTAL Cash and cash equivalents 61.9 5% 97.3 10% Increased following Other current assets 580.0 48% 451.8 46% Eminence acquisition Total current assets 641.9 53% 549.1 56% $62M Cash on h

  16. Slide 16: Financial Indicators

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 FINANCIAL INDICATORS 30.09.2018 30.09.2017 Current ratio 1.76 2.43 Quick ratio 0.78 1.21 Days of Sales Outstanding 46 40 Days Payable Outstanding 54 44 Inventory Days 141 117 Operating cash flow - Q3 ($ million) (14.2) 16.9 Operating cash flow - YTD ($ milli

  17. Slide 17: Diversified Portfolio

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 Enables Delta to mitigate the market changes DIVERSIFIED % from sales (for Q3.2018) PORTFOLIO The numbers are rounded 17

  18. Slide 18: Updating 2018 Guidance

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 UPDATING 2018 GUIDANCE * Excluding one time items ($ million except per share data) % INCREASE 2018 2017 ACTUAL 2018 GUIDANCE GUIDANCE COMPARED TO 2017 ACTUAL Sales 1,368 1,475 - 1,495 8% - 9% EBIT 87.4 97 - 99 11% - 13% EBITDA 115.9 127 - 130 10% - 12% Net

  19. Slide 19: Future Growth

    R E S U L T S O V E R V I E W Q 3 2 0 1 8 FUTURE GROWTH  Sell thru in the US market trending well  Continued long term growth in DGPB to get to above 10% EBIT  Launch of Ted Baker with initial bookings coming in ahead of plan  Vietnam factory full for 2019 leading to a positive effect on our bot

  20. Slide 20: Thank You

    THANK YOU 20

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