Delta Galil Industries Ltd. · TASE:DELG

Delta Galil Industries — Q3 2017 Earnings Presentation

19 slides from Delta Galil Industries's earnings presentation, November 2017

  1. Slide 1: Results Overview Q3 2017

    November 2017 RESULTS OVERVIEW Q3 2017

  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 ‪.2017‬‬ ‫בין היתר‪ ,‬העובדות והנתונים ששימשו בסיס למידע המפורט במ

  3. Slide 3: Q3 2017 Highlights

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 3 Q3 2017 Highlights  CONCLUDED THE QUARTER WITH  15% INCREASE IN SALES  8% INCREASE IN EBIT  2% INCREASE IN SALES EXCL. DGPB  STRONG QUARTER IN GUM 13% increase in sales and 32% increase in EBIT  GOOD RESULTS FOR SCHIESSER 13% increase in sales and 15

  4. Slide 4: Q3 2017 Highlights

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 4 Q3 2017 Highlights  DELTA PREMIUM BRANDS  Q3 EBIT $ 4.5M, YTD EBIT $ 10.3M  Corporate overhead – reduced since acquisition from 600 people to 316  Implementing 3rd restructuring plan for $ 2.1m  Splendid / Ella Moss  Negotiating to license Ella Moss

  5. Slide 5: Q3 2017 Highlights

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 5 Q3 2017 Highlights  LTM OPERATING CASH FLOW $ 81M  NET FINANCIAL DEBT TO EBITDA DOWN FROM 2.0 TO 1.4  LTM EBITDA +18.3% AT $ 115M  $ 3.5M DIVIDEND DECLARED FOR Q3 2017, $ 10.5M YTD

  6. Slide 6: Q3 2017 Results

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 6 Q3 2017 Results ($ million) % change vs Q3 2017 Q3 2016 last year 15% Sales Operating Profit 340.3 24.2 296.6 24.6 15% (2%) Sales up 15% % from sales 7.1% 8.3% Sales excl. DGPB up 2% Operating Profit 24.3 22.5 8% Excluding one-time items 8% OP excluding on

  7. Slide 7: YTD 2017 Results

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 7 YTD 2017 Results ($ million) % change vs YTD 2017 YTD 2016 last year 24% Sales Operating Profit 996.4 52.1 802.8 53.0 24% (2%) Sales up 24% Sales excl. DGPB up 3% % from sales 5.2% 6.6% Operating Profit 54.9 50.9 8% Excluding one-time items 8% % from sales

  8. Slide 8: 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 7 8 Q3 Sales and EBIT by segment ($ thousands) SALES % change in EBIT Q3 2017 Q3 2016 % change original currency Q3 2017 Q3 2016 Delta USA 100,160 112,800 (11%) (11%) 5,917 8,692 % from segment sales 5.9% 7.7% Global Upper Market 78,801 69,829 13% 13% 9,281 7,

  9. Slide 9: 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 7 9 YTD Sales and EBIT by segment ($ thousands) SALES % change in EBIT YTD 2017 YTD 2016 % change original currency YTD 2017 YTD 2016 Delta USA 328,148 335,004 (2%) (2%) 20,284 20,615 % from segment sales 6.2% 6.1% Global Upper Market 221,581 208,694 6% 6% 24,

  10. Slide 10: 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 7 10 Sales Analysis by Geographic Area ($ thousands) Q3 YTD % of % of % % of % of % 2017 2016 2017 2016 sales sales change sales sales change U.S.A 177,549 52% 158,054 53% 12% 561,845 56% 433,310 54% 30% Europe 52,837 16% 47,753 16% 11% 150,553 15% 126,428 16%

  11. Slide 11: 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 7 11 Segmental Results on a Quarterly Basis Excluding one time items ($ thousands) 2016 2017 TRAILING TWELVE MONTHS Q3 Q4 Q1 Q2 Q3 EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 8,692 112,800 10,153 126,465 6,081 109,201 8,286 118,

  12. Slide 12: Capital Expenditures

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 12 Capital Expenditures 32.1 ($ million) 23.5 Manufacturing .…….…………………. 7.3 Schiesser* ……….………………….. 3.0 Israeli market ………………………... 3.4 DGPB …………………………….…… 6.5 Others ….……………………………... 3.3 Total ……...………………………….. 23.5 YTD 2016 YTD 2017 *excluding manufactur

  13. Slide 13: Strong Balance Sheet

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 13 Strong Balance Sheet ($ million) % FROM % FROM SEPT. 30 2017 SEPT. 30 2016 TOTAL TOTAL $97M cash on hand Cash and cash equivalents Other current assets 97.3 451.8 10% 46% 49.6 438.4 6% 49% Total current assets 549.1 56% 488.0 54% $436M Non current assets

  14. Slide 14: Financial Indicators

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 14 Financial Indicators 30.09.2017 30.09.2016 Current ratio 2.43 1.86 Quick ratio 1.21 0.84 Days of Sales Outstanding* 40 38 Days Payable Outstanding* 44 44 Inventory Days* 117 111 Operating cash flow - Q3 ($ million) 16.9 12.6 Operating cash flow - YTD ($ m

  15. Slide 15: Diversified Portfolio

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 15 Diversified Portfolio Enables Delta to mitigate the market changes % from sales (for YTD 2017) 15

  16. Slide 16: Reiterating 2017 Guidance

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 16 Reiterating 2017 Guidance Excluding one time items Based on current market conditions Ex-rates used: Euro/USD 1.17; USD/NIS 3.50 ($ million except per share data) % INCREASE 2017 GUIDANCE 2016 ACTUAL 2017 GUIDANCE COMPARED TO 2016 ACTUAL Sales 1,179 1,330

  17. Slide 17: Future Growth

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 17 Future Growth  LAST TWO YEAR INVESTMENTS FOR ADDITIONAL MANUFACTURING CAPACITY AND STARTUPS WILL BEAR FRUIT IN 2018 AND BEYOND  LAUNCHING OF CK BRAND KIDS UNDERWEAR IN 2018  GROWING OUR PRESENCE IN ASIA AND SOUTH AMERICA  FOCUSING ON PRODUCING PRIVATE

  18. Slide 18: Future Growth

    R E S U L T S O V E R V I E W Q 3 2 0 1 7 18 Future Growth  CONTINUE IMPROVING OUR FINANCIAL RESULTS OF DGPB  DGPB LAUNCHES FOR 2018:  Splendid Yoga  Splendid Sleepwear  Seven For All Mankind men’s underwear  BEGINNING TO SHIP SPLENDID KIDS IN Q1 2018  NEW ECOMMERCE PLATFORM FOR DGPB LAUNCHIN

  19. Slide 19: Thank You

    THANK YOU . aa

Delta Galil Industries — Q3 2017 Earnings Presentation on 6ix