Delta Galil Industries Ltd. · TASE:DELG

Delta Galil Industries — Q1 2018 Earnings Presentation

16 slides from Delta Galil Industries's earnings presentation, May 2018

  1. Slide 1: Results Overview Q1 2018

    RESULTS OVERVIEW Q1 2018 May 2018

  2. Slide 2: 2017 Record Year

    ‫‪R E S U L T S‬‬ ‫‪O V E R V I E W‬‬ ‫‪Q 1‬‬ ‫‪2 0 1 8‬‬ ‫‪2017 RECORD YEAR‬‬ ‫האמור במצגת בכל הקשור לניתוח פעילותיה של החברה הינו תמצית בלבד‪ ,‬ועל מנת לקבל תמונה מלאה של פעילות החברה ושל הסיכונים עימם מתמודדת החברה‪,‬‬ ‫‪RECORD ACHIEVED IN 2017:‬‬ ‫יש לעיין בדיווחיה השוטפים של החברה לרבות בדוח הר

  3. Slide 3: Q1 2018 Highlights

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 Q1 2018 HIGHLIGHTS  SALES +6%  EBIT excluding one time items +8%  EBIT REPORTED +37%  EBITDA +12%  DIVIDEND DECLARED $3.5M 3

  4. Slide 4: Q1 2018 Highlights

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 Q1 2018 HIGHLIGHTS  SIGNIFICANT IMPROVEMENT IN DELTA ISRAEL  31% INCREASE IN SALES AND $3.4M IMPROVEMENT IN EBIT  STRONG GROWTH IN COMPARABLE SALES AND ONLINE CHANNEL  STRONG RESULTS FOR SCHIESSER  22% INCREASE IN SALES AND 71% INCREASE IN EBIT  9% SAL

  5. Slide 5: Q1 2018 Highlights

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 Q1 2018 HIGHLIGHTS  DGPB HIGHLIGHTS  HIRED TIM BAXTER AS CEO OF DGPB  FOCUSED ON IMPROVING PROFITABILITY, Q1 EBIT +45%  CLOSED 7 LOSING STORES THIS QUARTER, 20 SINCE ACQUISITION  REPLATFORMED OWNED ECOMMERCE SITES TO MAGENTO 2.2  LAUNCH OF MARGHERITA M

  6. Slide 6: Q1 2018 Results

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 Q1 2018 Q3 2017 Q1 2018 Q1 2017 % change vs ($ million) last year RESULTS Sales 334.5 315.7 6% Operating Profit 14.0 10.2 37% +6% % from sales Operating Profit 4.2% 3.2% Sales 14.0 12.9 8% Excluding one-time items Sales in original currency +2% % from sales

  7. Slide 7: Q1 Sales and EBIT by Segment

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 Q1 SALES AND EBIT BY SEGMENT ($ thousands) SALES % change in EBIT Q1 2018 Q1 2017 % change original currency Q1 2018 Q1 2017 Delta USA 102,688 109,201 (6%) (6%) 4,966 6,081 % from segment sales 4.8% 5.6% Global Upper Market 68,423 62,878 9% 9% 3,798 5,613 %

  8. Slide 8: Sales Analysis by Geographic Area

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 SALES ANALYSIS BY GEOGRAPHIC AREA ($ thousands) Q1 % change % of % of % 2018 2017 in original sales sales change currency U.S.A 176,249 53% 181,015 57% (3%) (3%) Germany 50,926 15% 41,993 13% 21% 5% Europe 48,864 15% 47,394 15% 3% (4%) (excluding Germany) Is

  9. Slide 9: Segmental Results on a Quarterly Basis

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 SEGMENTAL RESULTS ON A QUARTERLY BASIS Excluding one time items ($ thousands) 2017 2018 TRAILING TWELVE Q1 Q2 Q3 Q4 Q1 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 6,081 109,201 8,286 118,787 5,917 100,160 10,016 117,174

  10. Slide 10: Capital Expenditures

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 CAPITAL EXPENDITURES ($ million) 9.5 Manufacturing .…….…………………. 4.7 7.8 Schiesser* ……….………………….. 1.0 Israeli market ………………………... 0.8 DGPB** ….……………………….…… 2.2 Others ….……………………………... 0.8 Total ……...………………………..….. 9.5 2017 2018 * excluding manufacturing ** ma

  11. Slide 11: Strong Balance Sheet

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 STRONG ($ million) BALANCE Mar 31 2018 % FROM TOTAL Mar. 31 2017 % FROM TOTAL SHEET Cash and cash equivalents Other current assets 88.5 467.5 9% 47% 66.2 403.8 7% 45% $88M cash on hand Total current assets Non current assets 555.9 437.2 56% 44% 470.0 432.7 5

  12. Slide 12: Financial Indicators

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 FINANCIAL INDICATORS 31.03.2018 31.03.2017 Current ratio 2.41 2.48 Quick ratio 1.16 1.17 Days of Sales Outstanding 41 38 Days Payable Outstanding 44 36 Inventory Days 125 110 Operating cash flow - Q1 ($ million) (30.3) (13.1) Operating cash flow - Last 4 Qua

  13. Slide 13: Diversified Portfolio

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 Enables Delta to mitigate the market changes DIVERSIFIED % from sales (for Q1.2018) PORTFOLIO 13 The numbers are rounded

  14. Slide 14: Reiterating 2018 Guidance

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 * REITERATING 2018 GUIDANCE Excluding one time items Based on current market conditions Ex-rates used: Euro/USD 1.20; USD/NIS 3.60 ($ million except per share data) % INCREASE 2018 GUIDANCE 2017 ACTUAL 2018 GUIDANCE COMPARED TO 2017 ACTUAL Sales 1,368 1,400

  15. Slide 15: Future Growth

    R E S U L T S O V E R V I E W Q 1 2 0 1 8 FUTURE GROWTH  DGPB  DESIGNER/INFLUENCER COLLABORATIONS & SPECIAL PRODUCT LAUNCHES TO CONTINUE UPWARD GROWTH TREND  STORE OF THE FUTURE FOR 7 FOR ALL MANKIND OPENING IN JUNE IN LOS ANGELES  INVESTMENTS IN MANUFACTURING FACILITIES WILL START TO HAVE POSIT

  16. Slide 16: Thank You

    THANK YOU

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