Delta Galil Industries Ltd. · TASE:DELG
Delta Galil Industries — Q4 2015 Earnings Presentation
23 slides from Delta Galil Industries's earnings presentation, 2016
Slide 1: Results Overview Q4 2015
RESULTS OVERVIEW Q4 2015
Slide 2: Hebrew results summary
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Slide 3: Continue to grow top line organically
CONTINUE TO GROW TOP LINE ORGANICALLY BY 9% IN ORIGINAL CURRENCY INCREASE IN SAME STORE SALES IN GERMANY(4.4%) AND IN ISRAEL (5.7%) STRONG OPERATING CASH-FLOW OF 70M$ SUCCESSFUL ACQUISITION OF P.J.SALVAGE SUCCESSFUL INTEGRATION OF JV’s HEADWINDS FROM EX-RATES FLUCTUATIONS NEGATIVELY IMPACT THE EBIT
Slide 4: Same Stores Sales — Israeli Market
SAME STORES SALES — ISRAELI MARKET 6.3%
Slide 5: Investing in our long term growth
INVESTING IN OUR LONG TERM GROWTH > WE INVESTED $14.0M IN MANUFACTURING FACILITIES MAINLY IN VIETNAM & EL-MENIA IN EGYPT > WE INVESTED IN DEVELOPMENT CENTER FOR SEAMLESS PRODUCT > WE INVESTED IN CONSOLIDATION OF OUR HEADQUARTERS BOTH IN USA AND ISRAEL VIETNAM FACTORY RESULTS OVERVIEW Q4 2015 >> 05
Slide 6: New York
Slide 7: Caesarea
Slide 8: Efficiency measures and restructuring
EFFICIENCY MEASURES AND RESTRUCTURING > FOCUS ON THE WHOLESALE CHANNEL OF LMM ACTIVITY & CLOSING THE RETAIL CHAIN: M$ > IMPAIRMENT OF TRADEMARK AND FIXED ASSETS (NON-CASH) ..-.-e.ccceeoennee . 2.1 > IMPACT OF LEASE CONTRACTS (cco eee eens 1.9 4.0 > TAKING EFFICIENCY MEASURES IN OUR EGYPTIAN FACILITY
Slide 9: 2015 Highlights
2015 HIGHLIGHTS 10% SALES GROWTH IN ORIGINAL CURRENCY 9% ORGANIC GROWTH IN ORIGINAL CURRENCY ($ MILLION) % % CHANGE SALES IN ORIGINAL CURRENCY CHANGE IN 5 Hf UP 10%, ORGANIC SALES UP 2015 2014 VS LAST ORIGINAL 9%, REPORTED SALES UP 5% (0) rien YEAR CURRENCY Sales 1,080.0} 1,031.9 5% 10% OPERATING PR
Slide 10: Q4 2015 Highlights
Q4 2015 HIGHLIGHTS 8% SALES GROWTH IN ORIGINAL CURRENCY 5% ORGANIC GROWTH IN ORIGINAL CURRENCY 3% SALES IN ORIGINAL CURRENCY UP 8%, REPORTED SALES UP 3% TO $287.1M 6% OPERATING PROFIT UP 11% EXCLUDING $1.1M NEGATIVE EX-RATE EFFECT OPERATING PROFIT EXCLUDING ONE-TIME ITEMS INCREASED 6% ($ MILLION) %
Slide 11: 2015 Sales and EBIT by Segment
2015 SALES AND EBIT BY SEGMENT ($ THOUSANDS) SALES % CHANGE 2014 % CHANGE __ IN ORIGINAL CURRENCY Delta USA 29,961 26,946 % from segment sales 491,013 448,957 9% 9% 6.1% 6.0% Global Upper Market 25,838 20,592 % from segment sales 288,002 267,418 8% 12% 9.0% 7.7% Schiesser 13,880 18,428 % from segmen
Slide 12: Q4 Sales and EBIT by Segment
Q4 SALES AND EBIT BY SEGMENT ($ THOUSANDS) SALES % CHANGE Q4 2015 Q4 2014 % CHANGE _ IN ORIGINAL Q4 2015 Q4 2014 CURRENCY Delta USA 6,762 7,254 % from segment sales 122,285 123,023 (1%) (1%) 5.5% 5.9% Global Upper Market 7,716 4,230 % from segment sales 74,577 64,686 15% 17% 10.3% 6.5% Schiesser 3,9
Slide 13: Sales Analysis by Geographic Area
SALES ANALYSIS BY GEOGRAPHIC AREA 8% GROWTH IN ORIGINAL CURRENCY IN Q4 2015 AND 10% FOR THE YEAR IMPROVEMENT IN ALL GEOGRAPHIC AREAS IN ORIGINAL CURRENCY ($ MILLION) Q4 YTD % CHANGE % CHANGE % OF % IN 201g OF % IN SALES CHANGE ORIGINAL SALES CHANGE ORIGINAL CURRENCY CURRENCY U.S.A 151.6 | 53% | 149.
Slide 14: Segmental Results on a Quarterly Basis
SEGMENTAL RESULTS ON A QUARTERLY BASIS EXCLUDING ONE TIME ITEMS ($ THOUSANDS) TRAILING TWELVE MONTHS EBIT SALES Delta USA 7,254 | 123,023) 4,878 | 111,673| 9,536 | 123,599| 8,787 | 133,457 | 6,762 | 122,285 29,961 491,013 % from sales 5.9% 44% 7.7% 6.6% 5.5% 6.1% oa Pper 4280 | 64686) 4,389 | 66,106
Slide 15: Euro/USD Ex-Rate Impact on 2015 EBIT
FURO/USD EX-RATE IMPACT ON 2015 EBIT EURO/USD EX-RATES 2015 1.128 2014 1.370 CHG. (17.6%) 2015 1.107 2014 1.372 CHG. (19.3%) 2015 1.112 2014 1.326 CHG. (16.1%) 2015 1.095 2014 1.249 CHG. (12.3%) ($ MILLION) 2015 YTD 2015 1.111 2014 1.327 CHG. (16.3%) EX-RATE IMPACT ON EBIT (3.2) (0.7) (3.1) (2.4) (9
Slide 16: Capital Expenditures
CAPITAL EXPENDITURES INVESTING IN OUR FUTURE GROWTH ($ MILLION) 40.4 CAPEX MANUFACTURING ecsesnnsensnnsnsnnsnnnnnnnnnsenen 14.0 SCHIESSER® i eesee snes 4.3 aa ISRAELI MARKET 4.9 NEW OFFICES AND SHOWROOMS... -eseeneeonn 11.5 Oe *EXCLUDING MANUFACTURING OTHER INVESTMENTS ACQUISITION OF PJ SALVAGE eee
Slide 17: Strong Balance Sheet
STRONG BALANCE SHEET SUPPORT OUR LONG TERM GROWTH AND ACQUISITION STRATEGY ($ MILLION) % % DEC. 31 FROM DEC. FROM S$ 5 | 6 8M Ceo OR ene! 2015 TOTAL 2014 TOTAL Cash and cash equivalents 168.1 21% 167.4 23% Other current assets 327.8 41% 323.8 44% Total current assets 495.9 62% 491.2 67% 357M = : | F
Slide 18: Financial Indicators
FINANCIAL INDICATORS 31.12.2015 31.12.2014 Current ratio 2.53 200 Quick ratio 1.53 1.83 Days of Sales Outstanding 33 35 Days Payable Outstanding 46 38 Inventory Days 89 85 Operating cash flow - Q4 ($ million) 60.3 34.9 Operating cash flow - YTD ($ million) 70:5 53.0) EBITDA - Q4 ($ million) 29.5 28.
Slide 19: Diversified Portfolio
DIVERSIFIED PORTFOLIO % FROM 2015 SALES BUSINESS SEGMENTS DELTA USA GLOBAL UPPER MARKET SCHIESSER DELTA ISRAEL 45% 26% 17% 12% PRODUCT CATEGORIES GEOGRAPHIC AREA BRANDED / PRIVATE LABEL BRANDED PRIVATE LABEL 53% 4T% MARKET SEGMENT UPPER TIER MID TIER MASS MARKET MN 27% 32% PRODUCTION OUTSOURCING IN
Slide 20: 2016 Guidance
2016 GUIDANCE EXCLUDING ONE TIME ITEMS BASED ON CURRENT MARKET CONDITIONS EX-RATES USED: EURO/USD 1.10; USD/NIS 3.90 ($ MILLION EXCEPT PER SHARE DATA) % INCREASE 2016 acriit curpaics Teac Sales 974.7 1,031.9 1,080 1,090-1,110 1%-3% EBIT 67.9 74.4 75.5 78-82 3%-8% EBITDA 86.2 93.0 95.3 99-103 3%-8% N
Slide 21: Dividend & Shares Buy Back Plan
DIVIDEND & SHARES BUY BACK PLAN > $3.5 M DIVIDEND DECLARED FOR Q4 > ACCUMULATED DIVIDEND OF $14M FOR THE FULL YEAR > THE COMPANY ANNOUNCED SHARES BUY BACK PLAN OF UP TO $7.5 M SS RESULTS OVERVIEW Q4 2015 > at
Slide 22: Growth Engines
GROWTH ENGINES > LAUNCHING MENS & LADIES COLUMBIA UNDERWEAR LICENSE AGREEMENT IN FALL 2016 > SIGNED JUICY COUTURE TO BE LAUNCHED IN Q4 2016 > LAUNCH OF PUMA LICENSE IN ISRAEL > OPENING OUR NEW VIETNAMESE FACTORY DURING THE SECOND HALF OF 2016 > STRENGTHENING OUR MANAGEMENT TO SUPPORT FUTURE GROWTH A
Slide 23: www.deltagalil.com
www.deltagalil.com
Delta Galil Industries — Q4 2015 Earnings Presentation on 6ix