Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

Analyst presentation q2 2018 v13

•
•
Clutch animation house
Clutch animation house

- The company completed the acquisition of Eminence earlier than planned in July 2018. Eminence is expected to contribute $0.40-0.45 to profit per share in 2019. - Q2 2018 sales were down 0.5% and gross margin was down 30 basis points compared to Q2 2017, however net income increased 2%. - Several business segments saw sales increases and improved earnings compared to Q2 2017, while others faced challenges from currency fluctuations and other costs. - For the first half of 2018, sales increased 3% while net income excluding one-time items increased 3% compared to the same period in 2017.

1 of 19
Download to read offline
RESULTS OVERVIEW Q2 2018 AUGUST 2018
‫בלבד‬ ‫תמצית‬ ‫הינו‬ ‫החברה‬ ‫של‬ ‫פעילותיה‬ ‫לניתוח‬ ‫הקשור‬ ‫בכל‬ ‫במצגת‬ ‫האמור‬,‫החברה‬ ‫מתמודדת‬ ‫עימם‬ ‫הסיכונים‬ ‫ושל‬ ‫החברה‬ ‫פעילות‬ ‫של‬ ‫מלאה‬ ‫תמונה‬ ‫לקבל‬ ‫מנת‬ ‫ועל‬, ‫ביום‬ ‫שהסתיימה‬ ‫לתקופה‬ ‫הרבעוני‬ ‫בדוח‬ ‫לרבות‬ ‫החברה‬ ‫של‬ ‫השוטפים‬ ‫בדיווחיה‬ ‫לעיין‬ ‫יש‬30‫ליוני‬2018. ‫היתר‬ ‫בין‬,‫זו‬ ‫מצגת‬ ‫הכנת‬ ‫במועד‬ ‫לחברה‬ ‫שידוע‬ ‫כפי‬ ‫מידע‬ ‫על‬ ‫מבוססים‬ ‫זו‬ ‫במצגת‬ ‫המפורט‬ ‫למידע‬ ‫בסיס‬ ‫ששימשו‬ ‫והנתונים‬ ‫העובדות‬,‫ידי‬ ‫על‬ ‫שפורסמו‬ ‫נתונים‬ ‫זה‬ ‫ובכלל‬ ‫לחברה‬ ‫חיצוניים‬ ‫גופים‬,‫לנכונותם‬ ‫אחראית‬ ‫אינה‬ ‫החברה‬ ‫ולפיכך‬ ‫עצמאי‬ ‫באופן‬ ‫החברה‬ ‫ידי‬ ‫על‬ ‫נבדק‬ ‫לא‬ ‫תוכנם‬ ‫אשר‬.‫עתיד‬ ‫פני‬ ‫צופה‬ ‫מידע‬ ‫גם‬ ‫כולל‬ ‫זו‬ ‫במצגת‬ ‫האמור‬, ‫ערך‬ ‫ניירות‬ ‫בחוק‬ ‫כהגדרתו‬,‫תחזיות‬ ‫של‬,‫מטרות‬,‫הערכות‬,‫עתידיים‬ ‫ועניינים‬ ‫לאירועים‬ ‫המתייחסים‬ ‫אחר‬ ‫ומידע‬ ‫אומדנים‬,‫בשליטת‬ ‫ואינה‬ ‫ודאית‬ ‫אינה‬ ‫שהתממשותם‬ ‫החברה‬.‫המצגת‬ ‫הכנת‬ ‫במועד‬ ‫החברה‬ ‫של‬ ‫סובייקטיבית‬ ‫הערכה‬ ‫על‬ ‫ורק‬ ‫אך‬ ‫מבוסס‬ ‫והוא‬ ‫מוכחת‬ ‫עובדה‬ ‫מהווה‬ ‫אינו‬ ‫עתיד‬ ‫פני‬ ‫צופה‬ ‫מידע‬. ‫להתממש‬ ‫שלא‬ ‫עשוי‬ ‫במצגת‬ ‫הכלול‬ ‫עתיד‬ ‫פני‬ ‫הצופה‬ ‫המידע‬,‫חלקו‬ ‫או‬ ‫כולו‬,‫שנצפה‬ ‫מכפי‬ ‫שונה‬ ‫באופן‬ ‫להתממש‬ ‫או‬,‫בשליטת‬ ‫שאינם‬ ‫גורמים‬ ‫השפעת‬ ‫עקב‬ ‫לרבות‬ ‫מראש‬ ‫להעריכם‬ ‫ניתן‬ ‫לא‬ ‫ואשר‬ ‫החברה‬,‫החברה‬ ‫לפעילות‬ ‫הרלוונטיים‬ ‫הסיכון‬ ‫מגורמי‬ ‫באיזה‬ ‫שינוי‬ ‫זאת‬ ‫ובכלל‬,‫החיצוניים‬ ‫ובגורמים‬ ‫הכלכלית‬ ‫בסביבה‬ ‫התפתחויות‬ ‫וכן‬ ‫החברה‬ ‫על‬ ‫המשפיעים‬.‫מועד‬ ‫לאחר‬ ‫שיחולו‬ ‫נסיבות‬ ‫או‬ ‫אירועים‬ ‫שישקפו‬ ‫מנת‬ ‫על‬ ‫כאמור‬ ‫זו‬ ‫במצגת‬ ‫הכלולים‬ ‫הערכה‬ ‫או‬ ‫תחזית‬ ‫כל‬ ‫שינוי‬ ‫או‬ ‫בעדכון‬ ‫מחויבת‬ ‫אינה‬ ‫החברה‬ ‫המצגת‬.‫לפיכך‬,‫מוזהרים‬ ‫זו‬ ‫מצגת‬ ‫קוראי‬,‫עתיד‬ ‫פני‬ ‫הצופה‬ ‫במידע‬ ‫שהוצגו‬ ‫מאלה‬ ‫מהותי‬ ‫באופן‬ ‫שונים‬ ‫להיות‬ ‫עלולים‬ ‫בעתיד‬ ‫החברה‬ ‫של‬ ‫בפועל‬ ‫וההישגים‬ ‫התוצאות‬ ‫כי‬ ‫זו‬ ‫במצגת‬ ‫המוצג‬,‫בעתיד‬ ‫ביצועים‬ ‫על‬ ‫בהכרח‬ ‫מצביעים‬ ‫אינם‬ ‫עבר‬ ‫נתוני‬ ‫כי‬ ‫בחשבון‬ ‫לקחת‬ ‫ויש‬. ‫אחרת‬ ‫אינדיקציה‬ ‫בהעדר‬,‫לרבעון‬ ‫מתייחסים‬ ‫זו‬ ‫במצגת‬ ‫הנכללים‬ ‫הכספיים‬ ‫הנתונים‬‫המסתיים‬ ‫שני‬‫בחודש‬‫יוני‬2018. 2
EMINENCE ACQUISITION R E S U L T S O V E R V I E W Q 2 2 0 1 8  Completed the acquisition on July 6th , earlier than planned  Consolidated Eminence group results starting Q3/2018  The contribution to profit per share for 2019 is projected to amount to $0.40-0.45.  Q2 results include $3.95M total deal cost  Acquisition was financed with our cash balance supplemented by low interest Euro bank loans 3
Q2 2018 HIGHLIGHTS R E S U L T S O V E R V I E W Q 2 2 0 1 8 4  Sales -0.5% and Gross Margin -30 bps, however Net Income was +2%  Costs increased in H1 2018 due to RMB currency appreciation. We will see a benefit during Q4 2018 and beyond as RMB weakened  DGUSA sales flat to last year – EBIT challenged by reduction of margin related to RMB and increased distribution costs  Retail improving in H2 2018  Order file for 2019 tracking ahead of 2018
Q2 2018 HIGHLIGHTS R E S U L T S O V E R V I E W Q 2 2 0 1 8 5  DGPB EBIT negatively influenced by the new distribution center running cost and shift in Easter sale vs last year  H1 EBIT flat to last year  Tim Baxter, DGPB CEO, started in May 2018  GUM EBIT challenged by Thailand factory due to change in our sales and production mix as well as continued startup losses in Vietnam factory  Vietnam factory at full capacity starting August 2018
Q2 2018 HIGHLIGHTS R E S U L T S O V E R V I E W Q 2 2 0 1 8  Significant improvement in Delta Israel  14% increase in sales and $2m improvement in EBIT  22% increase in sales for H1 and $5m improvement in EBIT  Strong growth in comparable sales and online channel  Strong results for Schiesser  10% increase in sales and $1.6m improvement in EBIT  17% increase in sales for H1 and $2.6m improvement in EBIT  Hired Andreas Lindemann as new CEO  Dividend declared $3.5M 6
($ million) Q2 2018 Q2 2017 % change vs last year Sales 338.9 340.5 (0.5%) Operating Profit 11.3 17.7 (36%) % from sales 3.3% 5.2% Operating Profit Excluding one-time items 15.2 17.7 (14%) % from sales 4.5% 5.2% EBITDA 22.9 25.5 (10%) % from sales 6.8% 7.5% Net Income 6.5 8.9 (28%) Net Income Excluding one-time items 9.1 8.9 2% Diluted EPS ($ per share) 0.25 0.35 (27%) Diluted EPS ($ per share) Excluding one-time items 0.36 0.35 3% Operating Cash Flow 10.4 15.9 (35%) Sales Sales in original currency -2% EBITDA -0.5% -14% -10% Q2 2018 RESULTS +2% Operating Profit excluding one-time items Reported OP -36% Net income excluding one-time items Reported -28% R E S U L T S O V E R V I E W Q 2 2 0 1 8 7
($ million) Sales Sales in original currency 0% EBITDA +3% -4% -1% H1 2018 RESULTS +3% Operating Profit excluding one-time items Reported OP -9% Net income excluding one-time items Reported -4% R E S U L T S O V E R V I E W Q 2 2 0 1 8 2018 2017 % change vs last year Sales 673.4 656.1 3% Operating Profit 25.3 27.9 (9%) % from sales 3.8% 4.3% Operating Profit Excluding one-time items 29.2 30.6 (4%) % from sales 4.3% 4.7% EBITDA 44.3 44.6 (1%) % from sales 6.6% 6.8% Net Income 13.9 14.5 (4%) Net Income Excluding one-time items 16.6 16.2 3% Diluted EPS ($ per share) 0.55 0.57 (2%) Diluted EPS ($ per share) Excluding one-time items 0.65 0.63 4% Operating Cash Flow (20.0) 2.8 8
The numbers are rounded R E S U L T S O V E R V I E W Q 2 2 0 1 8 Q2 2018 Q2 2017 % change Q2 2018 Q2 2017 Delta USA 118,911 118,787 0% 0% 6,586 8,286 % from segment sales 5.5% 7.0% Global Upper Market 75,793 79,902 (5%) (5%) 6,577 9,523 % from segment sales 8.7% 11.9% Schiesser 44,979 40,870 10% 2% 422 (1,181) % from segment sales 0.9% Delta Israel 39,665 34,783 14% 13% 1,297 (707) % from segment sales 3.3% Delta Premium Brands 66,425 68,434 (3%) (5%) 1,454 2,969 % from segment sales 2.2% 4.3% Intersegment Sales (6,866) (2,315) Others (1,091) (1,196) Total Sales / EBIT before one-time items 338,907 340,461 (0%) (2%) 15,245 17,694 % from total sales 4.5% 5.2% One-Time items, net (3,950) Reported EBIT 11,295 17,694 SALES EBIT% change in original currency Q2 SALES AND EBIT BY SEGMENT R E S U L T S O V E R V I E W Q 2 2 0 1 8 ($ thousands) 9
($ thousands) H1 SALES AND EBIT BY SEGMENT The numbers are rounded R E S U L T S O V E R V I E W Q 2 2 0 1 8 2018 2017 % change 2018 2017 Delta USA 221,599 227,988 (3%) (3%) 11,551 14,367 % from segment sales 5.2% 6.3% Global Upper Market 144,217 142,780 1% 1% 10,375 15,136 % from segment sales 7.2% 10.6% Schiesser 102,972 88,221 17% 4% 2,817 216 % from segment sales 2.7% 0.2% Delta Israel 83,676 68,275 22% 18% 2,094 (3,326) % from segment sales 2.5% Delta Premium Brands 133,138 135,194 (2%) (4%) 5,521 5,774 % from segment sales 4.1% 4.3% Intersegment Sales (12,208) (6,316) Others (3,154) (1,599) Total Sales / EBIT before one-time items 673,394 656,142 3% 0% 29,205 30,568 % from total sales 4.3% 4.7% One-Time items, net (3,945) (2,665) Reported EBIT 25,260 27,903 SALES EBIT% change in original currency 10
SALES ANALYSIS BY GEOGRAPHIC AREA ($ thousands) R E S U L T S O V E R V I E W Q 2 2 0 1 8 2018 % of sales 2017 % of sales % change % change in original currency 2018 % of sales 2017 % of sales % change % change in original currency U.S.A 195,141 58% 203,282 60% (4%) (4%) 371,390 55% 384,297 59% (3%) (3%) Europe (excluding Germany) 49,732 15% 51,533 15% (3%) (7%) 98,596 15% 97,716 15% 1% (4%) Germany 40,130 12% 38,149 11% 5% (3%) 91,056 14% 81,354 12% 12% 0% Israel 39,668 12% 34,791 10% 14% 13% 83,670 12% 68,340 10% 22% 18% Others 14,236 4% 12,705 4% 12% 12% 28,682 4% 24,436 4% 17% 17% Total 338,907 100% 340,461 100% (0%) (2%) 673,394 100% 656,142 100% 3% (0%) Q2 YTD The numbers are rounded 11
SEGMENTAL RESULTS ON A QUARTERLY BASIS Excluding one time items ($ thousands) R E S U L T S O V E R V I E W Q 2 2 0 1 8 EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 8,286 118,787 5,917 100,160 10,016 117,174 4,966 102,688 6,586 118,911 27,484 438,932 % from sales 7.0% 5.9% 8.5% 4.8% 5.5% 6.3% Global Upper Market 9,523 79,902 9,281 78,801 5,465 68,975 3,798 68,423 6,577 75,793 25,122 291,992 % from sales 11.9% 11.8% 7.9% 5.6% 8.7% 8.6% Schiesser (1,181) 40,870 6,110 58,763 6,281 60,898 2,395 57,993 422 44,979 15,208 222,633 % from sales 10.4% 10.3% 4.1% 0.9% 6.8% Delta Israel (707) 34,783 30 38,470 7,149 55,024 796 44,011 1,297 39,665 9,273 177,170 % from sales 0.1% 13.0% 1.8% 3.3% 5.2% Delta Premium Brands 2,969 68,434 4,489 66,697 3,258 73,387 4,067 66,714 1,454 66,425 13,268 273,222 % from sales 4.3% 6.7% 4.4% 6.1% 2.2% 4.9% Intersegment Sales and Others (1,196) (2,315) (1,493) (2,590) 320 (3,820) (2,062) (5,342) (1,091) (6,866) (4,326) (18,617) Total EBIT / Sales 17,694 340,461 24,334 340,301 32,488 371,637 13,960 334,487 15,245 338,907 86,029 1,385,332 % from sales 5.2% 7.2% 8.7% 4.2% 4.5% 6.2% TRAILING TWELVE MONTHSQ1Q2 Q3 Q4 Q2 2017 2018 The numbers are rounded 12
CAPITAL EXPENDITURES R E S U L T S O V E R V I E W Q 2 2 0 1 8 H1.2017 H1.2018 14.8 21.9 Manufacturing .…….…………………… 11.2 Schiesser* ……….……………………. 2.2 Delta Israel ….………………………..... 2.5 DGPB** ….……………………….…….. 4.0 Others ….……………………………..... 2.0 Total ……...………………………..….. 21.9 * excluding manufacturing ** mainly IT in the new logistics center ($ million) 13
STRONG BALANCE SHEET ($ million) Cash on hand Equity Equity from total balance sheet Net debt / EBITDA $106M $450M 44% 1.5 R E S U L T S O V E R V I E W Q 2 2 0 1 8 Jun. 30 2018 % FROM TOTAL Jun. 30 2017 % FROM TOTAL Cash and cash equivalents 105.9 10% 100.7 10% Other current assets 478.0 47% 434.2 45% Total current assets 583.9 57% 534.9 55% Non current assets 434.5 43% 429.1 45% Total Assets 1,018.4 100% 964.0 100% Current liabilities 271.3 27% 215.6 22% Debentures 248.0 24% 277.9 29% Others non-current liabilities 49.0 5% 52.8 5% Total long term liabilities 297.0 29% 330.7 34% Equity 450.1 44% 417.8 43% Total Liabilities and Equity1,018.4 100% 964.0 100% 14
FINANCIAL INDICATORS R E S U L T S O V E R V I E W Q 2 2 0 1 8 30.06.2018 30.06.2017 Current ratio 2.15 2.48 Quick ratio 1.06 1.27 Days of Sales Outstanding 41 40 Days Payable Outstanding 49 42 Inventory Days 123 109 Operating cash flow - Q2 ($ million) 10.4 15.9 Operating cash flow - YTD ($ million) (20.0) 2.8 Operating cash flow - Last 4 Quarters ($ million) 51.9 76.4 EBITDA - Q2 ($ million) 22.9 25.5 EBITDA - YTD ($ million) 44.3 44.6 EBITDA - Last 4 Quarters ($ million) 115.6 112.6 Net financial debt ($ million) 178.7 169.7 Net financial debt to EBITDA (based on Last 4 Quarters) 1.5 1.5 Equity / Equity & Liabilities 44.2% 43.3% Equity ($ million) 450.1 417.8 Net Debt / CAP 24.0% 24.5% 15
% from sales (for Q2.2018) Enables Delta to mitigate the market changes DIVERSIFIED PORTFOLIO The numbers are rounded R E S U L T S O V E R V I E W Q 2 2 0 1 8 16
REITERATING 2018 GUIDANCE Excluding one time items Excluding Eminence impact which is expected to positively contribute to our results Based on current market conditions Ex-rates used: Euro/USD 1.15; USD/NIS 3.65 ($ million except per share data) * R E S U L T S O V E R V I E W Q 2 2 0 1 8 2017 ACTUAL 2018 GUIDANCE % INCREASE 2018 GUIDANCE COMPARED TO 2017 ACTUAL Sales 1,368 1,400 - 1,440 2% - 5% EBIT 87.4 91 - 96 4% - 10% EBITDA 115.9 119 - 125 3% - 8% Net Income 50.7 54 - 59 7% - 16% Diluted EPS ($) 1.98 2.11 - 2.30 7% - 16% 17
FUTURE GROWTH  Signed global Ted Baker license for Men’s, launching Spring 2019  Continued long term growth in DGPB to get to above 10% EBIT  Investments in manufacturing facilities will start to have positive effects on our bottom line towards Q4 2018  Corporate initiative to sell to key online retailers  Eminence acquisition will allow us to expand our distribution of Delta core products R E S U L T S O V E R V I E W Q 2 2 0 1 8 18
THANK YOU 19

More Related Content

Analyst presentation q2 2018 v13

  • 1. RESULTS OVERVIEW Q2 2018 AUGUST 2018
  • 2. ‫בלבד‬ ‫תמצית‬ ‫הינו‬ ‫החברה‬ ‫של‬ ‫פעילותיה‬ ‫לניתוח‬ ‫הקשור‬ ‫בכל‬ ‫במצגת‬ ‫האמור‬,‫החברה‬ ‫מתמודדת‬ ‫עימם‬ ‫הסיכונים‬ ‫ושל‬ ‫החברה‬ ‫פעילות‬ ‫של‬ ‫מלאה‬ ‫תמונה‬ ‫לקבל‬ ‫מנת‬ ‫ועל‬, ‫ביום‬ ‫שהסתיימה‬ ‫לתקופה‬ ‫הרבעוני‬ ‫בדוח‬ ‫לרבות‬ ‫החברה‬ ‫של‬ ‫השוטפים‬ ‫בדיווחיה‬ ‫לעיין‬ ‫יש‬30‫ליוני‬2018. ‫היתר‬ ‫בין‬,‫זו‬ ‫מצגת‬ ‫הכנת‬ ‫במועד‬ ‫לחברה‬ ‫שידוע‬ ‫כפי‬ ‫מידע‬ ‫על‬ ‫מבוססים‬ ‫זו‬ ‫במצגת‬ ‫המפורט‬ ‫למידע‬ ‫בסיס‬ ‫ששימשו‬ ‫והנתונים‬ ‫העובדות‬,‫ידי‬ ‫על‬ ‫שפורסמו‬ ‫נתונים‬ ‫זה‬ ‫ובכלל‬ ‫לחברה‬ ‫חיצוניים‬ ‫גופים‬,‫לנכונותם‬ ‫אחראית‬ ‫אינה‬ ‫החברה‬ ‫ולפיכך‬ ‫עצמאי‬ ‫באופן‬ ‫החברה‬ ‫ידי‬ ‫על‬ ‫נבדק‬ ‫לא‬ ‫תוכנם‬ ‫אשר‬.‫עתיד‬ ‫פני‬ ‫צופה‬ ‫מידע‬ ‫גם‬ ‫כולל‬ ‫זו‬ ‫במצגת‬ ‫האמור‬, ‫ערך‬ ‫ניירות‬ ‫בחוק‬ ‫כהגדרתו‬,‫תחזיות‬ ‫של‬,‫מטרות‬,‫הערכות‬,‫עתידיים‬ ‫ועניינים‬ ‫לאירועים‬ ‫המתייחסים‬ ‫אחר‬ ‫ומידע‬ ‫אומדנים‬,‫בשליטת‬ ‫ואינה‬ ‫ודאית‬ ‫אינה‬ ‫שהתממשותם‬ ‫החברה‬.‫המצגת‬ ‫הכנת‬ ‫במועד‬ ‫החברה‬ ‫של‬ ‫סובייקטיבית‬ ‫הערכה‬ ‫על‬ ‫ורק‬ ‫אך‬ ‫מבוסס‬ ‫והוא‬ ‫מוכחת‬ ‫עובדה‬ ‫מהווה‬ ‫אינו‬ ‫עתיד‬ ‫פני‬ ‫צופה‬ ‫מידע‬. ‫להתממש‬ ‫שלא‬ ‫עשוי‬ ‫במצגת‬ ‫הכלול‬ ‫עתיד‬ ‫פני‬ ‫הצופה‬ ‫המידע‬,‫חלקו‬ ‫או‬ ‫כולו‬,‫שנצפה‬ ‫מכפי‬ ‫שונה‬ ‫באופן‬ ‫להתממש‬ ‫או‬,‫בשליטת‬ ‫שאינם‬ ‫גורמים‬ ‫השפעת‬ ‫עקב‬ ‫לרבות‬ ‫מראש‬ ‫להעריכם‬ ‫ניתן‬ ‫לא‬ ‫ואשר‬ ‫החברה‬,‫החברה‬ ‫לפעילות‬ ‫הרלוונטיים‬ ‫הסיכון‬ ‫מגורמי‬ ‫באיזה‬ ‫שינוי‬ ‫זאת‬ ‫ובכלל‬,‫החיצוניים‬ ‫ובגורמים‬ ‫הכלכלית‬ ‫בסביבה‬ ‫התפתחויות‬ ‫וכן‬ ‫החברה‬ ‫על‬ ‫המשפיעים‬.‫מועד‬ ‫לאחר‬ ‫שיחולו‬ ‫נסיבות‬ ‫או‬ ‫אירועים‬ ‫שישקפו‬ ‫מנת‬ ‫על‬ ‫כאמור‬ ‫זו‬ ‫במצגת‬ ‫הכלולים‬ ‫הערכה‬ ‫או‬ ‫תחזית‬ ‫כל‬ ‫שינוי‬ ‫או‬ ‫בעדכון‬ ‫מחויבת‬ ‫אינה‬ ‫החברה‬ ‫המצגת‬.‫לפיכך‬,‫מוזהרים‬ ‫זו‬ ‫מצגת‬ ‫קוראי‬,‫עתיד‬ ‫פני‬ ‫הצופה‬ ‫במידע‬ ‫שהוצגו‬ ‫מאלה‬ ‫מהותי‬ ‫באופן‬ ‫שונים‬ ‫להיות‬ ‫עלולים‬ ‫בעתיד‬ ‫החברה‬ ‫של‬ ‫בפועל‬ ‫וההישגים‬ ‫התוצאות‬ ‫כי‬ ‫זו‬ ‫במצגת‬ ‫המוצג‬,‫בעתיד‬ ‫ביצועים‬ ‫על‬ ‫בהכרח‬ ‫מצביעים‬ ‫אינם‬ ‫עבר‬ ‫נתוני‬ ‫כי‬ ‫בחשבון‬ ‫לקחת‬ ‫ויש‬. ‫אחרת‬ ‫אינדיקציה‬ ‫בהעדר‬,‫לרבעון‬ ‫מתייחסים‬ ‫זו‬ ‫במצגת‬ ‫הנכללים‬ ‫הכספיים‬ ‫הנתונים‬‫המסתיים‬ ‫שני‬‫בחודש‬‫יוני‬2018. 2
  • 3. EMINENCE ACQUISITION R E S U L T S O V E R V I E W Q 2 2 0 1 8  Completed the acquisition on July 6th , earlier than planned  Consolidated Eminence group results starting Q3/2018  The contribution to profit per share for 2019 is projected to amount to $0.40-0.45.  Q2 results include $3.95M total deal cost  Acquisition was financed with our cash balance supplemented by low interest Euro bank loans 3
  • 4. Q2 2018 HIGHLIGHTS R E S U L T S O V E R V I E W Q 2 2 0 1 8 4  Sales -0.5% and Gross Margin -30 bps, however Net Income was +2%  Costs increased in H1 2018 due to RMB currency appreciation. We will see a benefit during Q4 2018 and beyond as RMB weakened  DGUSA sales flat to last year – EBIT challenged by reduction of margin related to RMB and increased distribution costs  Retail improving in H2 2018  Order file for 2019 tracking ahead of 2018
  • 5. Q2 2018 HIGHLIGHTS R E S U L T S O V E R V I E W Q 2 2 0 1 8 5  DGPB EBIT negatively influenced by the new distribution center running cost and shift in Easter sale vs last year  H1 EBIT flat to last year  Tim Baxter, DGPB CEO, started in May 2018  GUM EBIT challenged by Thailand factory due to change in our sales and production mix as well as continued startup losses in Vietnam factory  Vietnam factory at full capacity starting August 2018
  • 6. Q2 2018 HIGHLIGHTS R E S U L T S O V E R V I E W Q 2 2 0 1 8  Significant improvement in Delta Israel  14% increase in sales and $2m improvement in EBIT  22% increase in sales for H1 and $5m improvement in EBIT  Strong growth in comparable sales and online channel  Strong results for Schiesser  10% increase in sales and $1.6m improvement in EBIT  17% increase in sales for H1 and $2.6m improvement in EBIT  Hired Andreas Lindemann as new CEO  Dividend declared $3.5M 6
  • 7. ($ million) Q2 2018 Q2 2017 % change vs last year Sales 338.9 340.5 (0.5%) Operating Profit 11.3 17.7 (36%) % from sales 3.3% 5.2% Operating Profit Excluding one-time items 15.2 17.7 (14%) % from sales 4.5% 5.2% EBITDA 22.9 25.5 (10%) % from sales 6.8% 7.5% Net Income 6.5 8.9 (28%) Net Income Excluding one-time items 9.1 8.9 2% Diluted EPS ($ per share) 0.25 0.35 (27%) Diluted EPS ($ per share) Excluding one-time items 0.36 0.35 3% Operating Cash Flow 10.4 15.9 (35%) Sales Sales in original currency -2% EBITDA -0.5% -14% -10% Q2 2018 RESULTS +2% Operating Profit excluding one-time items Reported OP -36% Net income excluding one-time items Reported -28% R E S U L T S O V E R V I E W Q 2 2 0 1 8 7
  • 8. ($ million) Sales Sales in original currency 0% EBITDA +3% -4% -1% H1 2018 RESULTS +3% Operating Profit excluding one-time items Reported OP -9% Net income excluding one-time items Reported -4% R E S U L T S O V E R V I E W Q 2 2 0 1 8 2018 2017 % change vs last year Sales 673.4 656.1 3% Operating Profit 25.3 27.9 (9%) % from sales 3.8% 4.3% Operating Profit Excluding one-time items 29.2 30.6 (4%) % from sales 4.3% 4.7% EBITDA 44.3 44.6 (1%) % from sales 6.6% 6.8% Net Income 13.9 14.5 (4%) Net Income Excluding one-time items 16.6 16.2 3% Diluted EPS ($ per share) 0.55 0.57 (2%) Diluted EPS ($ per share) Excluding one-time items 0.65 0.63 4% Operating Cash Flow (20.0) 2.8 8
  • 9. The numbers are rounded R E S U L T S O V E R V I E W Q 2 2 0 1 8 Q2 2018 Q2 2017 % change Q2 2018 Q2 2017 Delta USA 118,911 118,787 0% 0% 6,586 8,286 % from segment sales 5.5% 7.0% Global Upper Market 75,793 79,902 (5%) (5%) 6,577 9,523 % from segment sales 8.7% 11.9% Schiesser 44,979 40,870 10% 2% 422 (1,181) % from segment sales 0.9% Delta Israel 39,665 34,783 14% 13% 1,297 (707) % from segment sales 3.3% Delta Premium Brands 66,425 68,434 (3%) (5%) 1,454 2,969 % from segment sales 2.2% 4.3% Intersegment Sales (6,866) (2,315) Others (1,091) (1,196) Total Sales / EBIT before one-time items 338,907 340,461 (0%) (2%) 15,245 17,694 % from total sales 4.5% 5.2% One-Time items, net (3,950) Reported EBIT 11,295 17,694 SALES EBIT% change in original currency Q2 SALES AND EBIT BY SEGMENT R E S U L T S O V E R V I E W Q 2 2 0 1 8 ($ thousands) 9
  • 10. ($ thousands) H1 SALES AND EBIT BY SEGMENT The numbers are rounded R E S U L T S O V E R V I E W Q 2 2 0 1 8 2018 2017 % change 2018 2017 Delta USA 221,599 227,988 (3%) (3%) 11,551 14,367 % from segment sales 5.2% 6.3% Global Upper Market 144,217 142,780 1% 1% 10,375 15,136 % from segment sales 7.2% 10.6% Schiesser 102,972 88,221 17% 4% 2,817 216 % from segment sales 2.7% 0.2% Delta Israel 83,676 68,275 22% 18% 2,094 (3,326) % from segment sales 2.5% Delta Premium Brands 133,138 135,194 (2%) (4%) 5,521 5,774 % from segment sales 4.1% 4.3% Intersegment Sales (12,208) (6,316) Others (3,154) (1,599) Total Sales / EBIT before one-time items 673,394 656,142 3% 0% 29,205 30,568 % from total sales 4.3% 4.7% One-Time items, net (3,945) (2,665) Reported EBIT 25,260 27,903 SALES EBIT% change in original currency 10
  • 11. SALES ANALYSIS BY GEOGRAPHIC AREA ($ thousands) R E S U L T S O V E R V I E W Q 2 2 0 1 8 2018 % of sales 2017 % of sales % change % change in original currency 2018 % of sales 2017 % of sales % change % change in original currency U.S.A 195,141 58% 203,282 60% (4%) (4%) 371,390 55% 384,297 59% (3%) (3%) Europe (excluding Germany) 49,732 15% 51,533 15% (3%) (7%) 98,596 15% 97,716 15% 1% (4%) Germany 40,130 12% 38,149 11% 5% (3%) 91,056 14% 81,354 12% 12% 0% Israel 39,668 12% 34,791 10% 14% 13% 83,670 12% 68,340 10% 22% 18% Others 14,236 4% 12,705 4% 12% 12% 28,682 4% 24,436 4% 17% 17% Total 338,907 100% 340,461 100% (0%) (2%) 673,394 100% 656,142 100% 3% (0%) Q2 YTD The numbers are rounded 11
  • 12. SEGMENTAL RESULTS ON A QUARTERLY BASIS Excluding one time items ($ thousands) R E S U L T S O V E R V I E W Q 2 2 0 1 8 EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES Delta USA 8,286 118,787 5,917 100,160 10,016 117,174 4,966 102,688 6,586 118,911 27,484 438,932 % from sales 7.0% 5.9% 8.5% 4.8% 5.5% 6.3% Global Upper Market 9,523 79,902 9,281 78,801 5,465 68,975 3,798 68,423 6,577 75,793 25,122 291,992 % from sales 11.9% 11.8% 7.9% 5.6% 8.7% 8.6% Schiesser (1,181) 40,870 6,110 58,763 6,281 60,898 2,395 57,993 422 44,979 15,208 222,633 % from sales 10.4% 10.3% 4.1% 0.9% 6.8% Delta Israel (707) 34,783 30 38,470 7,149 55,024 796 44,011 1,297 39,665 9,273 177,170 % from sales 0.1% 13.0% 1.8% 3.3% 5.2% Delta Premium Brands 2,969 68,434 4,489 66,697 3,258 73,387 4,067 66,714 1,454 66,425 13,268 273,222 % from sales 4.3% 6.7% 4.4% 6.1% 2.2% 4.9% Intersegment Sales and Others (1,196) (2,315) (1,493) (2,590) 320 (3,820) (2,062) (5,342) (1,091) (6,866) (4,326) (18,617) Total EBIT / Sales 17,694 340,461 24,334 340,301 32,488 371,637 13,960 334,487 15,245 338,907 86,029 1,385,332 % from sales 5.2% 7.2% 8.7% 4.2% 4.5% 6.2% TRAILING TWELVE MONTHSQ1Q2 Q3 Q4 Q2 2017 2018 The numbers are rounded 12
  • 13. CAPITAL EXPENDITURES R E S U L T S O V E R V I E W Q 2 2 0 1 8 H1.2017 H1.2018 14.8 21.9 Manufacturing .…….…………………… 11.2 Schiesser* ……….……………………. 2.2 Delta Israel ….………………………..... 2.5 DGPB** ….……………………….…….. 4.0 Others ….……………………………..... 2.0 Total ……...………………………..….. 21.9 * excluding manufacturing ** mainly IT in the new logistics center ($ million) 13
  • 14. STRONG BALANCE SHEET ($ million) Cash on hand Equity Equity from total balance sheet Net debt / EBITDA $106M $450M 44% 1.5 R E S U L T S O V E R V I E W Q 2 2 0 1 8 Jun. 30 2018 % FROM TOTAL Jun. 30 2017 % FROM TOTAL Cash and cash equivalents 105.9 10% 100.7 10% Other current assets 478.0 47% 434.2 45% Total current assets 583.9 57% 534.9 55% Non current assets 434.5 43% 429.1 45% Total Assets 1,018.4 100% 964.0 100% Current liabilities 271.3 27% 215.6 22% Debentures 248.0 24% 277.9 29% Others non-current liabilities 49.0 5% 52.8 5% Total long term liabilities 297.0 29% 330.7 34% Equity 450.1 44% 417.8 43% Total Liabilities and Equity1,018.4 100% 964.0 100% 14
  • 15. FINANCIAL INDICATORS R E S U L T S O V E R V I E W Q 2 2 0 1 8 30.06.2018 30.06.2017 Current ratio 2.15 2.48 Quick ratio 1.06 1.27 Days of Sales Outstanding 41 40 Days Payable Outstanding 49 42 Inventory Days 123 109 Operating cash flow - Q2 ($ million) 10.4 15.9 Operating cash flow - YTD ($ million) (20.0) 2.8 Operating cash flow - Last 4 Quarters ($ million) 51.9 76.4 EBITDA - Q2 ($ million) 22.9 25.5 EBITDA - YTD ($ million) 44.3 44.6 EBITDA - Last 4 Quarters ($ million) 115.6 112.6 Net financial debt ($ million) 178.7 169.7 Net financial debt to EBITDA (based on Last 4 Quarters) 1.5 1.5 Equity / Equity & Liabilities 44.2% 43.3% Equity ($ million) 450.1 417.8 Net Debt / CAP 24.0% 24.5% 15
  • 16. % from sales (for Q2.2018) Enables Delta to mitigate the market changes DIVERSIFIED PORTFOLIO The numbers are rounded R E S U L T S O V E R V I E W Q 2 2 0 1 8 16
  • 17. REITERATING 2018 GUIDANCE Excluding one time items Excluding Eminence impact which is expected to positively contribute to our results Based on current market conditions Ex-rates used: Euro/USD 1.15; USD/NIS 3.65 ($ million except per share data) * R E S U L T S O V E R V I E W Q 2 2 0 1 8 2017 ACTUAL 2018 GUIDANCE % INCREASE 2018 GUIDANCE COMPARED TO 2017 ACTUAL Sales 1,368 1,400 - 1,440 2% - 5% EBIT 87.4 91 - 96 4% - 10% EBITDA 115.9 119 - 125 3% - 8% Net Income 50.7 54 - 59 7% - 16% Diluted EPS ($) 1.98 2.11 - 2.30 7% - 16% 17
  • 18. FUTURE GROWTH  Signed global Ted Baker license for Men’s, launching Spring 2019  Continued long term growth in DGPB to get to above 10% EBIT  Investments in manufacturing facilities will start to have positive effects on our bottom line towards Q4 2018  Corporate initiative to sell to key online retailers  Eminence acquisition will allow us to expand our distribution of Delta core products R E S U L T S O V E R V I E W Q 2 2 0 1 8 18