Delta Galil Industries Ltd. · TASE:DELG

Delta Galil Industries — Q3 2015 Earnings Presentation

18 slides from Delta Galil Industries's earnings presentation, 2015

  1. Slide 1: Results Overview Q3 2015

    DELTA GALIL INDUSTRIES LTD

  2. Slide 2: Disclaimer (Hebrew)

    ‫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 ‪ 30‬בספטמבר ‪.2015‬‬ ‫בין היתר‪ ,‬העובדות והנתונים ששימשו בסיס למידע המפורט במצג

  3. Slide 3: Q3 2015 Highlights

    Q3 2015 HIGHLIGHTS 12% GROWTH IN ORIGINAL CURRENCY 10% ORGANIC GROWTH IN ORIGINAL CURRENCY ($ MILLION) % SALES IN ORIGINAL CURRENCY % CHANGE Q3 Q3 CHANGE 6% UP 12%, REPORTED SALES UP 6% TO $284.6M ORGANIC SALES UP 10% 2015 2014 VS LAST YEAR IN ORIGINAL CURRENCY Sales 284.6 267.2 6% 12% OPERATING PRO

  4. Slide 4: YTD 2015 Highlight

    YTD 2015 HIGHLIGHT 11% ORGANIC GROWTH IN ORIGINAL CURRENCY ($ MILLION) SALES IN ORIGINAL CURRENCY % CHANGE % CHANGE 5% UP 11%, REPORTED SALES UP 5% TO $792.9M ORGANIC SALES UP 11% YTD 2015 YTD 2014 VS LAST IN ORIGINAL YEAR CURRENC OPERATING PROFIT EXCLUDING Sales 792.9 754.5 5% 11% ONE-TIME ITEMS AM

  5. Slide 5: Strong Balance Sheet

    STRONG BALANCE SHEET ($ MILLION) SEP. 30 % SEP. 30 % 2015 FROM TOTAL 2014 FROM TOTAL Cash and cash equivalents 128.5 16% 147.9 20% Other current assets 353.2 46% 337.5 45% $128M CASH ON HAND Total current assets 481.7 62% 485.4 65% Fixed assets & Intangible assets, net of accumulated 295.0 38% 263.0

  6. Slide 6: Financial Indicators

    FINANCIAL INDICATORS 30.09.2015 30.09.2014 Current ratio 2.74 2.75 Quick ratio 1.58 1.61 Days of Sales Outstanding 39 39 Days Payable Outstanding 37 44 Inventory Days 91 98 Operating cash flow - Q3 ($ million) 5.9 14.8 Operating cash flow - YTD ($ million) 10.2 18.4 Operating cash flow - Last 4 Quar

  7. Slide 7: Results on a Quarterly Basis

    RESULTS ON A QUARTERLY BASIS EXCLUDING ONE-TIME ITEMS ($ THOUSANDS) 2014 2015 LAST 4 QUARTERS Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Sales 238,074 249,152 267,237 277,398 252,838 255,537 284,556 1,070,329 EBIT 14,838 15,538 21,672 22,305 15,329 14,471 22,053 74,158 excluding one-time items % 6.2% 6.2% 8.1% 8.0% 6

  8. Slide 8: Sales Analysis by Geographic Area

    SALES ANALYSIS BY GEOGRAPHIC AREA 12% GROWTH IN ORIGINAL CURRENCY IN Q3 2015 10% ORGANIC GROWTH IN ORIGINAL CURRENCY ($ MILLION) Q3 YTD % CHANGE % CHANGE % OF % OF % % OF % OF % 2015 SALES 2014 SALES CHANGE IN ORIGINAL 2015 SALES 2014 SALES CHANGE IN ORIGINAL CURRENCY CURRENCY U.S.A 172.4 61% 147.3

  9. Slide 9: Q3 Sales and EBIT by Segment

    Q3 SALES AND EBIT BY SEGMENT ($ THOUSANDS) SALES EBIT % CHANGE Q3 2015 Q3 2014 % CHANGE IN ORIGINAL Q3 2015 Q3 2014 CURRENCY Delta USA 8,787 7,841 % from segment sales 133,457 116,680 14% 14% 6.6% 6.7% Global Upper Market 75,952 68,865 10% 12% 8,164 4,982 % from segment sales 10.8% 7.2% Schiesser 5,

  10. Slide 10: YTD Sales and EBIT by Segment

    YTD SALES AND EBIT BY SEGMENT ($ MILLION) SALES EBIT % CHANGE YTD 2015 YTD 2014 % CHANGE IN ORIGINAL YTD 2015 YTD 2014 CURRENCY Delta USA 23,201 19,692 % from segment sales 368,728 325,943 13% 13% 6.3% 6.0% Global Upper Market 213,425 202,732 5% 8% 18,122 16,363 % from segment sales 8.5% 8.1% Schies

  11. Slide 11: Euro / USD Ex-Rate Impact on 2015 YTD EBIT

    EURO / USD EX-RATE IMPACT ON 2015 YTD EBIT ASSUMING CONSTANT CURRENCY ($ MILLION) 2015 Q1 Q2 Q3 2015 YTD 2015 1.128 2015 1.107 2015 1.112 2015 1.116 EURO/USD EX-RATES 2014 1.370 2014 1.372 2014 1.326 2014 1.356 CHG. (18%) CHG. (19%) CHG. (19%) CHG. (18%) EX-RATE IMPACT ON EBIT (3.2) (0.7) (3.0) (6.9

  12. Slide 12: Segmental Results on a Quarterly Basis

    SEGMENTAL RESULTS ON A QUARTERLY BASIS EXCLUDING ONE TIME ITEMS ($ THOUSANDS) 2015 TRAILING TWELVE Q3 Q4 Q1 Q2 Q3 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 7,841 116,680 7,254 123,023 4,878 111,673 9,536 123,599 8,787 133,457 30,455 491,752 % from sales 6.7%

  13. Slide 13: Capital Expenditures

    CAPITAL EXPENDITURES INVESTING IN OUR FUTURE GROWTH ($ MILLION) 28.6 OTHER INVESTMENTS ACQUISITION OF PJ SALVAGE 37.4 EGYPT– COMPLETION OF NEW DYE HOUSE ACQUISITION (TOTAL INVESTMENT $3.5M) 2.0 18.7 CAPEX MANUFACTURING 11.4 SCHIESSER (EXCLUDING MANUFACTURING) 2.7 ISRAELI MARKET 3.6 NEW OFFICES 8.3 O

  14. Slide 14: Diversified Portfolio

    DIVERSIFIED PORTFOLIO % FROM SALES (FOR SEPTEMBER YTD 2015) BUSINESS SEGMENTS DELTA USA GLOBAL UPPER MARKET SCHIESSER DELTA ISRAEL 46% 26% 17% 11% PRODUCT CATEGORIES LADIES MENS SOCKS KIDS 51% 20% 16% 13% GEOGRAPHIC AREA U.S.A EUROPE ISRAEL OTHER 59% 28% 11% 2% BRANDED / PRIVATE LABEL BRANDED PRIVAT

  15. Slide 15: Reiterating 2015 Guidance

    REITERATING 2015 GUIDANCE EXCLUDING ONE TIME ITEMS BASED ON CURRENT MARKET CONDITIONS EX-RATES USED: EURO/USD 1.12; USD/NIS 3.85 ($ MILLION EXCEPT PER SHARE DATA) % ORGANIC 2012 2013 2014 2015 INCREASE 2015 IN ORIGINAL ACTUAL ACTUAL ACTUAL GUIDANCE GUIDANCE COMPARED CURRENCY TO 2014 ACTUAL Sales 817

  16. Slide 16: 2015 Highlights

    2015 HIGHLIGHTS CONTINUE TO GROW TOP LINE ORGANICALLY BY 7-9%‎ IN ORIGINAL CURRENCY - LED BY ACTIVEWEAR CONTINUES IMPROVEMENT IN DELTA USA PERFORMANCE IMPROVEMENT IN THE UPPER MARKET HEADWINDS FROM EX-RATES FLUCTUATIONS WEAKNESS IN THE ISRAELI MARKET SUCCESSFUL INTEGRATION OF NEW JV’S IN SOCKS AND S

  17. Slide 17: Growth Engines

    GROWTH ENGINES WE OPENED OUR NEW SEAMLESS R&D CENTER AT NIKE HQ IN PORTLAND, OREGON SIGNED COLUMBIA MEN’S & LADIES UNDERWEAR LICENSE AGREEMENT TO BE LAUNCHED IN 2016 WE ARE ON TRACK TO OPEN OUR NEW VIETNAMESE FACTORY IN THE FIRST HALF OF 2016 STRENGTHENING OUR MANAGEMENT TO SUPPORT FUTURE GROWTH CON

  18. Slide 18: Thank You

    THANK YOU

Delta Galil Industries — Q3 2015 Earnings Presentation on 6ix