new final results overviwe q4 2013

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RESULTS OVERVIEW Q4 2013

RESULTS OVERVIEW | Q4 2013

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האמור במצגת זו כולל גם מידע צופה פני עתיד, כהגדרתו בחוק ניירות ערך, של תחזיות, מטרות, הערכות, אומדנים ומידע אחר המתייחסים לאירועים ו/או לעניינים עתידיים, שהתממשותם אינה ודאית ואינה בשליטת החברה. מידע צופה פני עתיד והנתונים העיקריים ששימשו והוא מבוסס רק על הערכה סובייקטיבית של החברה. העובדות אינו מהווה עובדה מוכחת בסיס למידע זה הנם עובדות ונתונים בנוגע למצב הנוכחי של החברה ושל עסקיה ועובדות ונתונים מאקרו כלכליים, והכול כפי שהם ידועים לחברה במועד הכנת מצגת זו. לפיכך, קוראי מצגת זו מוזהרים, כי התוצאות וההישגים בפועל של החברה

בעתיד עלולים להיות שונים באופן מהותי מאלה שהוצגו במידע הצופה פני עתיד המוצג במצגת זו.החברה, בעלי מניותיה, נושאי המשרה בה ומי מטעמם אינם ולא יהיו אחראים לשלמות או דיוק המידע הכלול במצגת זו, לרבות מידע צופה פני עתיד, ולא יהיו אחראים לשלמות ודיוק הערכות ותחזיות המופיעות במצגת זו והם לא נושאים ולא

יישאו באחריות או חבות לנזקים או הפסדים העלולים להיגרם כתוצאה מהשימוש או מההסתמכות על מידע זה.

בהעדר אינדיקציה אחרת, הנתונים הכספיים הנכללים במצגת זו מתייחסים לשנת 2013.

THANK YOUASSOCIATES AND MANAGEMENT

FOR 5TH CONSEQUTIVE ANNUAL IMPROVEMENT


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2009 2010 2011 2012 2013

573620

679

818

975

CAGR14.2%

SALES

2009 2010 2011 2012 2013

16

33

40

51

68CAGR43.6%

EBIT*

*Excluding one time items

CONSISTENT GROWTH($ Million)


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2013 ACCOMPLISHMENTS

CONTINUES IMPROVEMENT OF DELTA USA FINANCIAL RESULTS

(000$)

EBIT

1.0%

6.0%

3.5%3.1

12.0

24.0

SALES

312.09%

18%

339.9

402.6

2011 2012 2013

Entered Wholesale Clubs

Growth with key customers

Increased our Branded Activity


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DELTA RECEIVED THE MANUFACTURER OF THE YEAR FEMMY AWARD BY THE INTIMATE APPAREL INDUSTRY



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GROWTH IN PERFORMANCE SOCKS CATEGORY



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SUCCESSFUL INTEGRATION OF SCHIESSER



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IMPROVE DELTA ISRAEL RESULTS



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GROWING OUR BRANDED BUSINESS FROM 40% IN 2012 TO 50% FROM SALES IN 2013



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GETTING LACOSTE AND MARC O’POLO LICENSES



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2013 CHALLENGES

Political Instability in Egypt Business is Soft in Europe


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US Market

Activewear

Performance Socks

Delta Israel

Lacoste world wide for Men's underwear licenses

Schiesser / Marc O’Polo

GROWTH DRIVERS 2014 AND BEYOND

ORGANIC GROWTH


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2014 AVIA BRAND LAUNCHING IN WALMART

FINANCIAL RESULTS


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4%

17

7%

12%

4%

22.1

Sales UP 4% to $255.9M

17 Consecutive Qtrs. of Organic Sales Growth

Operating Income Increased 7% to $21.1M comp. to $19.7M

EBITDA UP 12% to $26.9M

Diluted EPS went UP by 4%

Operating cash flow of $22.1M

Q4 RECORD SALES, NET PROFIT & EPS

Q4 2013 Q4 2012%

Change vs LY

Sales 255.9 246.6 4%

Operating Profit % from Sales

21.18.2%

19.78.0%

7%

EBITDA% from sales

26.910.5%

24.19.8%

12%

Net income attributed to company's shareholders 14.5 13.8 5%

Diluted EPS ($ per share) 0.57 0.55 4%

Operating Cash flow 22.1 32.7

($ Million)


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RECORD ANNUAL RESULTS

19%534%

33%

31%

28%

Sales UP 19% to $974.7M, representing Organic Growth of 9%

5th consequtive Annual Growth

Operating Income Increased 34% to $67.9M

EBITDA UP 33% to $86.2M

Net Income excluding one time items Increased 31% to $44.1M

Diluted EPS before one times item went UP by 28%

2013 2012%

Change vs LY

Sales 974.7 817.8 19%

Operating Profit excluding one time items% from Sales

67.9

7.0%

50.7

6.2%

34%

EBITDA% from sales

86.28.8%

64.87.9%

33%

Net income attributed to company's shareholders excluding one time items% from Sales

44.1

4.5%

33.8

4.1%

31%

Diluted EPS excluding one time items($ per share)

1.75 1.37 28%

Operating Cash flow 46.2 72.9

($ Million)


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STRONG BALANCE SHEET

$322M

13%

49.4%

$98.7M

Increase in Equity to $322M

Net Debt/CAP Ratio down to 13% from 21.9%

Equity from total balance sheet ratio

Record Cash on Hand

31.12.2013 %from total 31.12.2012 %

from total

Cash and cash equivalents 97.3 15% 45.5 8%

Restricted cash 1.4 0% 2.8 1%

Trade receivables 112.3 18% 108.7 19%

Inventories 169.3 26% 150.3 27%

Assets held for sale 1.0 0% 6.5 1%

Others 15.0 2% 13.0 2%

Total current assets 396.3 61% 326.8 58%

Fixed assets,net of accumulated depreciation 95.8 15% 93.0 17%

Intangible assets, net of accumulated depreciation and other long term assets

159.0 24% 139.4 25%

Total Assets 651.1 100% 559.2 100%

Short-term bank loans 26.6 4% 41.5 7%

Current maturities of Debentures 17.8 3% 16.0 3%

Trade payables and others 132.2 20% 124.9 22%

Total current liabilities 176.6 27% 182.4 32%

Debentures 129.7 20% 79.3 14%

Others non-current liabilities 22.9 4% 19.7 4%

Total long term liabilities 152.6 24% 99.0 18%

Equity 321.9 49% 277.8 50%

Total Liabilities and equity 651.1 100% 559.2 100%

($ Million)


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IMPROVED FINANCIAL INDICATORS

31.12.2013 31.12.2012

Current ratio 2.24 1.79

Quick ratio 1.29 0.97

Days of Sales Outstanding 39 40

Days Payable Outstanding 37 37

Inventory Days 87 77

Operating cash flow - Q4 ($ million) 22.1 32.7

Operating cash flow - YTD ($ million) 46.2 72.9

EBITDA - Q4 ($ million) 26.9 24.1

EBITDA - YTD ($ million) 86.2 64.8*

Net financial debt ($ million) 63.3 92.2

Financial debt to EBITDA ratio (based on Last 4 Quarters) 0.7 1.4

Equity / Equity & Liabilities 49.4% 49.7%

Equity ($ million) 321.9 277.8

Net Debt / CAP 13.0% 21.9%

*On a pro-forma basis EBITDA for year 2012, including schiesser, Amounted to $ 67.3M

($ Million)


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RESULTS ON A QUARTERLY BASIS

Excluding one time items

2012 2013 Last 4 Quarters

(2013)Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Net Sales 168,067 169,149 233,996 246,570 227,255 234,368 257,199 255,897 974,719

EBIT before one time items 6,390 8,785 15,802 19,680 11,567 13,979 21,286 21,090 67,922

% 3.8% 5.2% 6.8% 8.0% 5.1% 6.0% 8.3% 8.2% 7.0%

EBITDA 9,129 11,774 19,740 24,109 15,759 18,288 25,235 26,889 86,171

% 5.4% 7.0% 8.4% 9.8% 6.9% 7.8% 9.8% 10.5% 8.8%

Net Income excluding one time items 3,931 6,124 9,995 13,869 6,656 8,833 14,248 14,517 44,254

Operating Cash Flow 19,393 16,088 4,754 32,667 (13,273) 18,002 19,375 22,136 46,240

Permanent Cash Flow 7,596 5,834 14,128 16,895 10,411 11,196 21,334 20,552 63,493

($ Million)


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SALES ANALYSIS BY GEOGRAPHIC AREA

Strong Growth & Improved sales distribution

Q4 ANNUAL

2013 % of sales 2012 % of

sales%

change 2013 % of sales 2012 % of

sales%

change

North America 134.1 52% 128.3 52% 5% 542.6 56% 483.4 59% 12%

Germany 44.4 17% 42.2 17% 5% 157.9 16% 86.0 11% 84%

Europe (excluding Germany)

38.3 15% 44.6 18% (14%) 156.4 16% 153.9 18% 2%

Israel 37.3 15% 30.2 12% 23% 111.3 11% 90.4 11% 23%

Others 1.8 1% 1.3 1% 6.5 1% 4.2

Total 255.9 100% 246.6 100% 4% 974.7 100% 817.8 100% 19%

($ Million)


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IMPROVED GROSS MARGIN% From Sales

Change in Accounting Policy – Design and Development expenses were classified to “Selling and Marketing expenses”

Q42012

Q42013

2012 2013

25.9%

28.8%

32.1%

25.7%

30.2%

2.9%

3.0%

3.3%

3.2%29.1%

22.4%

27.0%


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Q4 SALES AND EBIT BY SEGMENT

Sales EBIT

Q4 2013 Q4 2012 % Chg. Q4 2013 Q4 2012

Delta USA% from segment sales

103,395 94,190 10% 4,629*4.5%

6,4336.8%

Global Upper Market% from segment sales

62,496 72,517 (14%) 5,5168.8%

4,4276.1%

Schiesser % from segment sales

55,221 50,979 8% 5,54010.0%

5,30010.4%

Delta Israel% from segment sales

37,252 29,980 24% 5,95116.0%

4,21614.1%

Intersegment sales% from segment sales (2,467) (1,096)

Others (546) (696)

Total Sales and EBIT 255,897 246,570 4% 21,0908.2%

19,6808.0%

*Including $2.1 million provision for consolidation of offices in Delta USA. Q4 2013 EBIT, Excluding the consolidation amounted to $6.7M

($ Million)


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ANNUAL SALES AND EBIT BY SEGMENT

Sales EBIT

2013 2012 % Chg. 2013 2012

Delta USA% from segment sales

402,583 339,847 18% 23,984*6.0%

12,0043.5%

Global Upper Market% from segment sales

274,576 292,492 (6%) 24,7049.0%

22,4027.7%

Schiesser % from segment sales

193,974 99,367 14,6597.6%

11,52711.6%

Delta Israel% from segment sales

111,218 89,719 24% 8,4467.6%

6,2046.9%

Intersegment sales & other% from segment sales (7,632) (3,643)

Others (3,871) (1,479)

Total Sales and EBIT 974,719 817,782 19% 67,9227.0%

50,6586.2%

One time items (1,529) 24,180

Total Reported EBIT 66,393 74,838

*Including $2.1 million provision for consolidation of offices in Delta USA. 2013 EBIT, Excluding the consolidation amounted to $26.1M

($ Million)


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SEGMENTAL RESULTS ON A QUARTERLY BASIS

Excluding one time items

2012 2013 Last 4 Quarters(2013)Q4 Q1 Q2 Q3 Q4

EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES EBIT SALES

Delta USA 6,433 94,190 4,307 91,692 8,087 104,004 6,960 103,493 4,629 103,395 23,984 402,583

% from sales 6.8% 4.7% 7.8% 6.7% 4.5% 6.0%

Global Upper Market 4,427 72,517 3,917 66,427 7,502 72,625 7,769 73,027 5,516 62,496 24,704 274,576

% from sales 6.1% 5.9% 10.3% 10.6% 8.8% 9.0%

Schiesser 5,300 50,979 3,456 48,035 (1,464) 35,221 7,127 55,497 5,540 55,221 14,659 193,794

% from sales 10.4% 7.2% (4.2%) 12.8% 10.0% 7.6%

Delta Israel 4,216 29,980 852 23,242 1,086 23,888 557 26,835 5,951 37,252 8,446 111,218

% from sales 14.1% 3.7% 4.5% 2.1% 16.0% 7.6%

Adjustments (696) (1,096) (965) (2,141) (1,232) (1,370) (1,127) (1,653) (546) (2,467) (3,871) (7,632)

Total EBIT/Sales 19,680 246,570 11,567 227,255 13,979 234,368 21,286 257,199 21,090 255,897 67,922 974,719

% from sales 8.0% 5.1% 6.0% 8.3% 8.2% 7.0%

($ Million)


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NET PROFIT & DILUTED EPS

NET PROFIT* EXCLUDING ONE TIME ITEM

EPSQ4 ANNUAL

2013 2012 % Chg. 2013 2012 % Chg.

Diluted EPS ($) excluding one time items*

0.57 0.55 4% 1.75 1.37 28%

Reported Diluted EPS ($)* 0.57 0.55 4% 1.69 2.30 (27%)

Q42012

Q42013

2012 2013

13.814.5

33.8

44.1

5%

31%

*Attributed to the company shareholders

($ Million)


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CAPITAL EXPENDITURES

Investing in our future growth

Israeli Market(New Logistic Center $0.8 & Retail Stores $4.0M)

4.8

Schiesser(Mainly new Retail Stores and Excluding manufacturing)

7.0

Manufacturing 9.3

Others 1.4

Total 22.52012 2013

21.6 22.5

17.6

14.3

8.24.0

For the 6 Months ending 31.12.2012

SCHIESSER

($ Million)


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2014 GUIDANCE

2011Actual

2012Actual

2013Last

Guidance

2013Actual

2014Forecast

% Increase 2014 Forecast

compared to 2013 Actual

Sales 678.8 817.8 965-975 974.7 1,035-1,065 6%-9%

EBIT 39.7 50.7 66.5-68.5 67.9 75-81 10%-19%

EBITDA 51.5 64.8 83.4-85.4 86.2 93-99 8%-15%

Net Profit 27.6 33.8 43.0-44.5 44.3 49-54 11%-22%

Diluted EPS ($) 1.15 1.37 1.71-1.75 1.75 1.93-2.11 10%-21%

($ Million)Excluding one time items


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CONSISTENT GROWTH

Growth Engines: Brands Activewear Retail

2009 2010 2011 2012 2013 2014Forecast

16

33

40

51

68

75-81

CAGR37.3%

2009 2010 2011 2012 2013 2014Forecast

573620

679

818

975

1035-1065

CAGR12.9%

SALES EBIT*

*Excluding one time items

($ Million)


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SALES ON A QUARTERLY BASIS

17 consecutive Qtrs. of sales ORGANIC GROWTH compared to prior years

2009 2010 2011 2012 2013

Q3 Q4Q2Q1

123

136

163

151 153

176

247256

170

185

234

257

157160

169

199

35

141

157

168179

48

227234

SCHIESSER SCHIESSER

($ Million)


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DIVERSIFIED PORTFOLIO

% FROM SALES (For the year of 2013)

Continue to Growth Organicallyand through Acquisitions

Continue to grow our Brandedand Retail Businesses

Continue to grow Globally

Invest in Innovation

Growth in Activewear, Socksand Seamless

Business Segments

Product Categories

Geographic Area

Branded / Private Label

Production

Market Segment

DELTA USA

LADIES

NORTH AMERICA

PRIVATE LABEL

OUTSOURCING

UPPER MARKET MID TIER MASS MARKET

BRANDED

IN HOUSE

EUROPE ISRAEL

MENS SOCKS KIDS

41%

45%

56%

50%

76%

40% 30% 30%

50%

24%

33% 11%

22% 19% 14%

28% 20% 11%

GLOBAL UPPER MARKET

SCHIESSR DELTAISRAEL


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SUMMARYFIFTH CONSEQUTIVE ANNUAL GROWH

POSITIVE GUIDANCE FOR 2014

QUARTERLY DIVIDEND OF $3.0M & 2013 TOTAL DIVIDEND OF $11.0M

STRONG ORGANIC GROWTH ENGINES

1234


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THANK YOU

new final results overviwe q4 2013

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