Delta Galil Industries Ltd. · TASE:DELG

Delta Galil Industries — Q2 2016 Earnings Presentation

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

  1. Slide 1: Results Overview Q2 2016

    RESULTS ————— — = OVERVIEW > Q2 2016 eo

  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 ‪ 30‬ביוני ‪.2016‬‬ ‫בין היתר‪ ,‬העובדות והנתונים ששימשו בסיס למידע המפורט במצגת

  3. Slide 3: Q2 2016 Highlights

    Q2 2016 HIGHLIGHTS ($ MILLION) % Q2 2016 Q2 2015 CHANGE VS LAST YEAR WEAKNESS IN THE U.S. Sales 249.5 255.5 (2%) MARKET AFFECTED OUR FINANCIAL RESULTS Operating Profit 13.5 14.5 (7%) % from sales 5.4% 5.7% EBITDA 18.9 19.0 (1%) THE COMPANY’S RESULTS % from sales 7.6% 7.5% WERE PARTIALLY OFFSET BY Ne

  4. Slide 4: H1 2016 Highlights

    H1 2016 HIGHLIGHTS ($ MILLION) % H1 H1 CHANGE 2016 2015 VS LAST YEAR ALTHOUGH THE WEAKNESS IN THE Sales 506.2 508.4 (0.4%) U.S. MARKET THE COMPANY PRESENTS RELATIEVLY STABLE Operating Profit 28.4 29.8 REVENUES % from sales (5%) 5.6% 5.9% EBITDA 39.1 38.7 OPERATING PROFIT DECREASED 1% % from sales 7.

  5. Slide 5: Q2 Sales and EBIT by Segment

    Q2 SALES AND EBIT BY SEGMENT ($ THOUSANDS) SALES EBIT % CHANGE IN Q2 2016 Q2 2015 % CHANGE ORRIGINAL Q2 2016 Q2 2015 CURRENCY Delta USA 5,052 9,536 % from segment sales 109,447 123,599 (11%) (11%) 4.6% 7.7% Global Upper Market 8,211 5,579 % from segment sales 71,352 71,367 - - 11.5% 7.8% Schiesser (

  6. Slide 6: H1 Sales and EBIT by Segment

    H1 SALES AND EBIT BY SEGMENT ($ THOUSANDS) SALES EBIT % CHANGE IN H1 2016 H1 2015 % CHANGE ORIGINAL H1 2016 H1 2015 CURRENCY Delta USA 11,923 14,414 % from segment sales 222,206 235,271 (6%) (6%) 5.4% 6.1% Global Upper Market 15,277 9,968 % from segment sales 138,865 137,473 1% 1% 11% 7.3% Schiesser

  7. Slide 7: Sales Analysis by Geographic Area

    SALES ANALYSIS BY GEOGRAPHIC AREA ($ MILLION) Q2 YTD % % CHANGE IN CHANGE IN ORIGINAL ORIGINAL % OF % OF % % OF % OF % 2016 2015 CURRENCY 2016 2015 CURRENCY SALES SALES CHANGE SALES SALES CHANGE U.S.A 137.9 55% 153.9 60% (10%) (10%) 275.3 54% 297.3 59% (7%) (7%) Europe (excluding 39.5 16% 36.7 15% 8

  8. Slide 8: Segmental Results on a Quarterly Basis

    SEGMENTAL RESULTS ON A QUARTERLY BASIS EXCLUDING ONE TIME ITEMS ($ THOUSANDS) 2015 2016 TRAILING TWELVE Q2 Q3 Q4 Q1 Q2 MONTHS EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 9,536 123,599 8,787 133,457 6,762 122,285 6,871 112,758 5,052 109,447 24,472 479,947 % from sales

  9. Slide 9: Capital Expenditures

    CAPITAL EXPENDITURES INVESTING IN OUR FUTURE GROWTH ($ MILLION) 21.5 CAPEX 18.0 MANUFACTURING 10.4 SCHIESSER* 2.8 ISRAELI MARKET 1.9 OFFICES AND SHOWROOMS 3.9 OTHERS 2.5 TOTAL 21.5 H1 2015 H1 2016 *EXCLUDING MANUFACTURING RESULTS OVERVIEW Q2 2016 09

  10. Slide 10: Strong Balance Sheet

    STRONG BALANCE SHEET SUPPORT OUR LONG TERM GROWTH AND ACQUISITION STRATEGY ($ MILLION) % % $134 June . 30 June . 30 FROM FROM CASH ON HAND 2016 2015 TOTAL TOTAL Cash and cash equivalents 134.2 17.1% 199.6 25.1% Other current assets 332.6 42.4% 342.8 43.1% $363 EQUITY Total current assets Fixed asset

  11. Slide 11: Financial Indicators

    FINANCIAL INDICATORS .20166.003 .20156.003 Current ratio 2.60 2.98 Quick ratio 1.52 1.90 Days of Sales Outstanding 41 42 Days Payable Outstanding 46 47 Inventory Days 100 97 Operating cash flow - Q2 ($ million) 26.5 24.0 Operating cash flow – H1 ($ million) 3.0 4.2 Operating cash flow - Last 4 Quart

  12. Slide 12: Diversified Portfolio

    DIVERSIFIED PORTFOLIO % FROM SALES (FOR H1 2016) BUSINESS SEGMENTS DELTA USA GLOBAL UPPER MARKET SCHIESSER DELTA ISRAEL %44 %26 %17 %13 PRODUCT CATEGORIES LADIES MENS SOCKS KIDS %50 %20 %18 %12 GEOGRAPHIC AREA U.S.A EUROPE ISRAEL OTHER %54 %30 %13 %3 BRANDED / PRIVATE LABEL BRANDED PRIVATE LABEL %58

  13. Slide 13: 2016 Guidance

    2016 GUIDANCE EXCLUDING ONE TIME ITEMS ($ MILLION EXCEPT PER SHARE DATA) % INCREASE 2016 2015 2016 GUIDANCE ACTUAL GUIDANCE COMPARED TO 2015 ACTUAL DUE TO THE CONTINUANCE OF Sales 1,080 1,090-1,110 1%-3% THE SOFT MARKET IN THE U.S. WE EXPECT TO MEET THE EBIT 75.5 78-82 3%-8% LOWER RANGE OF THE GUIDA

  14. Slide 14: Q2 2016 Summary

    Q2 2016 SUMMARY CHALLENGING RETAIL ENVIRONMENT IN THE U.S. MARKET – CONTINUES TO THE 3RD QUARTER IMPROVEMENT IN ALL THE OTHER BUSINESS SEGMENTS $ 3.5M DIVIDEND DECLARED FOR Q2 THE COMPANY COMPLETED SHARES BUY BACK PLAN OF $6.9M RESULTS OVERVIEW Q2 2016 14

  15. Slide 15: Future Growth

    FUTURE GROWTH RECENT ACQUISITION GIVES US GROWTH PLATFORM IN NEW CATEGORIES VIETNAM FACTORY TO BE OPENED IN SEPTEMBER WILL CONTRIBUTE TO OUR 2017 / 2018 GROWTHS THE COMPANY IS FOCUSED ON GROWING ITS E-COMMERCE BUSINESS WE SEE GROWTH IN 2017 WITH OUR MAJOR CUSTOMERS WE CONTINUE WITH OUR INVESTMENTS T

  16. Slide 16: Thank You

    THANK YOU 16

Delta Galil Industries — Q2 2016 Earnings Presentation on 6ix