Gildan Activewear Inc. · TSX:GIL
Gildan Activewear — Investor Presentation (September 2021)
22 slides from Gildan Activewear's investor presentation, September 2021
Slide 1: Investor Presentation September 2021
INVESTOR PRESENTATION SEPTEMBER 2021 1
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain statements included in this presentation constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation and regulations, and are subject to important risks, uncertainties,
Slide 3: Company Overview
C O M PA N Y O V E R V I E W 3
Slide 4: Brands
BRANDS is a leading ethical and sustainable manufacturer of everyday basic apparel, including activewear, underwear, socks, hosiery, and legwear products. owns and operates vertically-integrated, large-scale manufacturing facilities primarily located in North America, Central America, the Caribbea
Slide 5: More than two decades of developing large scale manufacturing base and specialized skill set
MORE THAN TWO DECADES OF DEVELOPING LARGE SCALE MANUFACTURING BASE AND SPECIALIZED SKILL SET HONDURAS HONDURAS HONDURAS RIO NANCE 1 RIO NANCE 2 RIO NANCE 5 TEXTILES U.S. YARN SPINNING INVESTMENTS TEXTILES TEXTILES 7 PLANTS HONDURAS HONDURAS RIO NANCE 3 RIO NANCE 4 HONDURAS HOSIERY HOSIERY GARMENT DY
Slide 6: Global Manufacturing Infrastructure
GLOBAL MANUFACTURING INFRASTRUCTURE Our global low-cost manufacturing is supported by manufacturing hubs in North America, Central America and Bangladesh. Our vertical integration allows us to control almost every step of the manufacturing process, drive operational and resource efficiencies and dep
Slide 7: Long Term Track Record of Growth
LONG TERM TRACK RECORD OF GROWTH HISTORICAL NET SALES US$ millions 2.8 2.4 1.7 Our Back-to-Basics strategy is reinforcing our 0.6 1.0 competitive positioning enabling the next phase of growth FY 2003 FY 2007 FY 2011 FY 2015 FY 2019 ACQUISITIONS HIGH ORGANIC GROWTH EXPANSION INTO NEW AREAS BACK-TO-BA
Slide 8: 2020 Net Sales Breakdown
2020 NET SALES BREAKDOWN BY GEOGRAPHY BY CATEGORY 11% 24% 89% 76% North America Activewear International Hosiery and Underwear 8
Slide 9: Key Customers and End Markets
PRODUCTS KEY CUSTOMERS AND END MARKETS IMPRINTABLES CUSTOMERS: RETAIL & PRIVATE BRANDS MAJOR DISTRIBUTORS AND SCREENPRINTERS CUSTOMERS: SERVICING THE FOLLOWING END MARKETS1 ▪ CORPORATE PROMOTIONAL ▪ BIG-BOX RETAILERS ▪ EVENT MERCHANDISING, TRAVEL & TOURISM ▪ MAJOR SPORTWEAR COMPANIES ▪ UNIFORM/EDUCA
Slide 10: Environmental, Social & Governance
RECOGNITIONS & PARTNERSHIPS ENVIRONMENTAL, SOCIAL & GOVERNANCE Listed 32nd on the Wall Street Journal’s top 100 Most BASED ON 3 CENTRAL PILLARS Sustainably Managed Companies Eight consecutive-year inclusion on DJSI CARING FOR CONSERVING THE CREATING STRONGER OUR PEOPLE ENVIRONMENT COMMUNITIES ALIGNM
Slide 11: A 20 Year Track Record in ESG
A 20 YEAR TRACK RECORD IN ESG 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 FIRST ENVIRONMENTAL CODE ENVIRONMENTAL FIRST FIRST BIOTOP POLICY OF MANAGEMENT BIOMASS WATER WASTEWATER CONDUCT SYSTEM ENERGY SYSTEM CONSUMPTION TREATMENT DATA OEKO-TEX SYSTEM CODE FIRST FIRST FIRST ESG STANDARD 100
Slide 12: A 20 Year Track Record in ESG
A 20 YEAR TRACK RECORD IN ESG 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 INCLUDED IN NEW 5YR ALIGNMENT COVID RELIEF DJSI WITH INITIATIVES ENVIRONMENTAL WORLD INDEX FOR SDGS FIRST TARGETS THE FIRST TIME HUMAN & HEAT RECOVERY SYSTEM SASB FIRST LABOUR RIGHTS REPORTING 5YR COMPANY WIDE POLICY IMP
Slide 13: Strategic Overview
S T R AT E G I C O V E R V I E W 13
Slide 14: Go-forward organization
BACK TO BASICS POSITIONING GILDAN TO DRIVE INITIATIVES TO DATE GROWTH & MARGIN EXPANSION Launched Back-to-Basics strategy by 2018 realigning Printwear and Branded Apparel under a single business unit (SMD) reducing overlap and complexity SIMPLIFYING PRODUCT FOCUS Exited to-the-piece distribution and
Slide 15: Simplifying Product Portfolio
Back to Basics SIMPLIFYING PRODUCT PORTFOLIO Overall MORE THAN SKU RATIONALIZATION OF IMPRINTABLES AND RETAIL PRODUCT OFFERING 60% ✓ Removing complexity in manufacturing to drive efficiencies REDUCTION ✓ Eliminating overlapping and less productive SKUs ✓ Improving mix and profitability of SKU offeri
Slide 16: Driving Manufacturing Cost Advantage & Scale
Back to Basics DRIVING MANUFACTURING COST ADVANTAGE & SCALE CENTRAL AMERICA / BANGLADESH CARIBBEAN BASIN Driving major greenfield expansion project in Bangladesh to support international markets and other sales drivers Attractive attributes ✓ Two-phase project Duty-free access to targeted internatio
Slide 17: Simplifying Our Distribution Infrastructure
Back to Basics SIMPLIFYING OUR DISTRIBUTION INFRASTRUCTURE & LEVERAGING OUR CUSTOMERS’ DISTRIBUTION CAPABILITIES ✓ Optimizing distribution network with warehouse consolidation ✓ Driving improved productivity with lower SKU base ✓ Leveraging distributor networks for imprintables channel ✓ Leveraging
Slide 18: Gildan's Growth Drives
GILDAN’S GROWTH DRIVES IMPRINTABLE BRANDS INTERNATIONAL RETAIL BRANDS PRIVATE BRANDS Driving leadership in key Replicating North Growing with key retailers Supporting large scale product segments American success and e-commerce partners basic apparel programs 18
Slide 19: Uniquely Positioned to Capitalize on Current Industry Shifts
UNIQUELY POSITIONED TO CAPITALIZE ON CURRENT INDUSTRY SHIFTS PRIVATE BRANDS SOURCING TRENDS ESG CASUALIZATION ONLINE Le an increasing part of the gaining traction vs focusing on reliable amplified by remote growing convergence of national brands supply chains to mitigate decision-making process of w
Slide 20: Positioned for Long-Term Success
POSITIONED FOR LONG-TERM SUCCESS ▪ Strong foundation ▪ Leader in our industry - Focused business model and strong financial position - Manufacturing excellence and low-cost structure - Leading sustainable and ethical practices - Talented people ▪ Stronger competitive advantage with Back to Basics ▪
Slide 21: Solid Foundation & Strong Positioning for Future
SOLID FOUNDATION & STRONG POSITIONING FOR FUTURE NET SALES2 ADJUSTED EBITDA1,2 In m $US 2,909 2,824 In m $US 2,569 2,585 2,751 4% 524 586 596 548 7% 2,299 5-yr CAGR 504 5-yr CAGR (2014-19) (2014-19) 1,981 388 165 2014 2015 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 DILUTED EARNINGS
Slide 22: Prim + Preux, Goldtoe
PRIM +PREUX GOLDTOE
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