Delta Galil Industries Ltd. · TASE:DELG

Delta Galil Industries — Q1 2016 Earnings Presentation

17 slides from Delta Galil Industries's earnings presentation, 2016

  1. Slide 1: Results Overview Q1 2016

    RESULTS 4 OVERVIEW Q1 2016

  2. Slide 2: Results Overview Q1 2016 disclaimer

    ‫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 ‪ 31‬במרס ‪.2016‬‬ ‫בין היתר‪ ,‬העובדות והנתונים ששימשו בסיס למידע המפורט במצגת ז

  3. Slide 3: Q1 2016 Highlights

    Q1 2016 HIGHLIGHTS )$ MILLION( 2% SALES UP 2% TO $256.7M % ORGANIC SALES REMAIN Q1 Q1 CHANGE UNCHANGED VS LAST 2016 2015 YEAR Sales 256.7 252.8 2% OPERATING PROFIT UP 17% EXCLUDING CURRENCY 17% TRANSACTIONS IMPACT*. REPORTED OPERATING PROFIT DECREASED 3% Operating Profit % from sales Operating Profi

  4. Slide 4: Euro/USD Rate Q1 2016 vs Q1 2015

    EURO/USD RATE Q1 2016 VS Q1 2015 1.22 Closing Average % var. 1.2 Q1/2016 1.138 1.103 3.2% 1.18 Q1/2015 1.074 1.128 -4.8% % var. 6% -2.2% 1.165 1.16 1.14 1.138 Closing Q1/2016 1.136 1.128 1.12 1.111 1.111 1.1 1.103 1.087 1.085 1.08 1.074 Closing Q1/2015 1.06 1.04 1.02 0 01 201 0 01 201 1 01 201 23 01

  5. Slide 5: Q1 2016 Highlights

    Q1 2016 HIGHLIGHTS )$ MILLION( % Q1 Q1 CHANGE VS LAST 2016 2015 YEAR NET INCOME AND DILUTED EPS Net Income 7.9 8.9 3.1% 3.5% )12%( UP 13% EXCLUDING CURRENCY % from sales 13% TRANSACTIONS IMPACT*. REPORTED NET INCOME AND DILUTED EPS DECREASED BY 12% Net Income excluding currency impact* % from sales

  6. Slide 6: Q1 Sales and EBIT by Segment

    Q1 SALES AND EBIT BY SEGMENT )$ THOUSANDS( SALES EBIT % CHANGE IN Q1 2016 Q1 2015 %CHANGE ORIGINAL Q1 2016 Q1 2015 CURRENCY Delta USA 6,871 4,878 % from segment sales 112,758 111,673 1% 1% 6.1% 4.4% Global Upper Market 7,066 4,389 % from segment sales 67,513 66,106 2% 2% 10.5% 6.6% Schiesser 1,173 6

  7. Slide 7: Schiesser Q1 EBIT Bridge

    SCHIESSER Q1 EBIT BRIDGE )$ MILLIONS( Q1 2016 Q1 2015 Reported EBIT 1.2 6.0 Loss (gain) from currency transactions mark to market 1.5 (1.4) Increase in marketing expenses due to advanced advertising campaign to Q1 0.7 2016 Normalized EBIT 3.4 4.7 RESULTS OVERVIEW Q1 2016 7

  8. Slide 8: Sales Analysis by Geographic Area

    SALES ANALYSIS BY GEOGRAPIC AREA ORGANIC GROWTH REMAIN STABLE ALTHOUGH THE WEAKNESS IN THE US MARKET )$ MILLION( Q1 % CHANGE IN % ORIGINAL %OF %OF CURRENCY 2016 SALES 2015 SALES CHANGE U.S.A 137.3 54% 143.4 57% )4%( )4%( Germany 39.5 15% 40.4 16% )2%( 0% Europe (excluding Germany) 39.2 15% 35.3 14%

  9. Slide 9: Segmental Results on a Quarterly Basis

    SEGMENTAL RESULTS ON A QUARTERLY BASIS EXCLUDING ONE TIME ITEMS )$ THOUSANDS( 2015 2016 TRAILING TWELVE Q1 Q2 Q3 Q4 Q1 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 4,878 111,673 9,536 123,599 8,787 133,457 6,762 122,285 6,871 112,758 31,956 492,099 % from sales

  10. Slide 10: Capital Expenditures

    CAPITAL EXPENDITURES INVESTING IN OUR FUTURE GROWTH )$ MILLION( 10.2 CAPEX MANUFACTURING 5.1 SCHIESSER* 1.3 8.4 ISRAELI MARKET 1.0 OFFICES AND SHOWROOMS 2.2 OTHERS 0.6 TOTAL 10.2 *EXCLUDING MANUFACTURING Q1 2015 Q1 2016 RESULTS OVERVIEW Q1 2016 10

  11. Slide 11: Strong Balance Sheet

    STRONG BALANCE SHEET SUPPORT OUR LONG TERM GROWTH AND ACQUISITION STRATEGY )$ MILLION( % % $130M MARCH. 31 MARCH. 31 FROM FROM CASH ON HAND 2016 2015 TOTAL TOTAL Cash and cash equivalents 130.3 17% 145.8 21% Other current assets 343.2 43% 319.0 45% $369M Total current assets 473.5 60% 464.8 66% EQUI

  12. Slide 12: Financial Indicators

    FINANCIAL INDICATORS 31.03.2016 31.03.2015 Current ratio 2.78 3.00 Quick ratio 1.61 1.80 Days of Sales Outstanding 41 39 Days Payable Outstanding 42 33 Inventory Days 100 93 Operating cash flow - Q1 ($ million( )23.6( )19.8( Operating cash flow - Last 4 Quarters ($ million( 66.7 40.1 EBITDA - Q1 ($

  13. Slide 13: Diversified Portfolio

    DIVERSIFIED PORTFOLIO % FROM SALES (FOR Q1 2016) BUSINESS SEGMENTS DELTA USA GLOBAL UPPER MARKET SCHIESSER DELTA ISRAEL 44% 24% 19% 13% PRODUCT CATEGORIES LADIES MENS SOCKS KIDS 50% 21% 18% 11% GEOGRAPHIC AREA U.S.A EUROPE ISRAEL OTHER 54% 30% 13% 3% BRANDED / PRIVATE LABEL BRANDED PRIVATE LABEL 57%

  14. Slide 14: Reiterating 2016 Guidance

    REITERATING 2016 GUIDANCE EXCLUDING ONE TIME ITEMS BASED ON CURRENT MARKET CONDITIONS EX-RATES USED: EURO/USD 1.12; USD/NIS 3.80 )$ MILLION EXCEPT PER SHARE DATA( % INCREASE 2016 2015 2016 GUIDANCE ACTUAL GUIDANCE COMPARED TO 2015 ACTUAL Sales 1,080 1,090-1,110 1%-3% EBIT 75.5 78-82 3%-8% EBITDA 95.

  15. Slide 15: Q1 2016 Summary

    Q1 2016 SUMMARY CHALLENGING RETAIL ENVIRONMENT IN THE US - WE DO NOT SEE TURNAROUND TILL SECOND HALF OF THE YEAR WE CONTINUE TO GROW TOP LINE BY 2% IN Q1 2016 IMPROVEMENT IN DUSA OPERATING PROFIT IMPROVEMENT IN GLOBAL UPPER MARKET PERFORMANCE LED BY IMPROVING OWNED FACTORIES EFFICIENCY NEGATIVE EFFE

  16. Slide 16: Future Growth

    FUTURE GROWTH WE ARE WORKING TO ATTAIN DOUBLE DIGIT EBIT GROWTH IN 2017 & 2018 WE WILL BE LAUNCHING OUR VIETNAMESE FACTORY ON THE SECOND HALF OF 2016 AND IT WILL CONTRIBUTE TO OUR GROWTH IN 2017 & 2018 THE COMPANY IS FOCUSED ON GROWING ITS E-COMMERCE BUSINESS CONTINUE TO PURSUE STRATEGIC ACQUISITION

  17. Slide 17: Thank You

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