Delta Galil Company Overview 2015

COMPANY OVERVIEW 2015

INTRODUCTION

LEADING GLOBAL COMPANY , specializing in design and development of a diversified portfolio of men’s, women’s and children’s intimate apparel, sleepwear, loungewear, socks and activewear.

COMPREHENSIVE SOLUTIONS – from ideation to product on shelf.

BODY BEFORE FABRIC ™, the DGL philosophy focused on INNOVATION for comfort and style.

We INVEST 4% of our sales in R&D to develop our unique patents and intellectual properties.

Company on a GROWTH TRACK since 2009 – 12.8% increase in sales, 37.3% increase in EBIT.

Publicly traded on TEL AVIV STOCK EXCHANGE (DELTA) since 1982.

Strategic partnerships with leading international BRANDS , RETAILERS and LICENSEES.

GLOBAL COMPETITIVE AND FLEXIBLE manufacturing network.

A ‘RESPONSIBLE CORPORATE CITIZEN’, GRI graded “A”, operating in a SUSTAINABLE, GREENENVIRONMENT.


LEADERSHIP POSITIONING


We deliver comprehensive solutions that address the dynamic changes in the industry.

From anticipating EMERGING TRENDS in fashion, to IN-HOUSE DEVELOPMENT of CUTTING EDGE

TECHNOLOGIES AND FABRICS .

FABRIC INNOVATION/DEVELOPMENT

MEN’S UNDERWEAR

SHAPEWEAR

TEENS/GIRLS INTIMATE APPAREL

SEAMLESS TECHNOLOGIES

SOCKS INNOVATION

UNDERWEAR, SLEEP /LOUNGEWEAR

BRA ACTIVE WEAR


BEST-IN-CLASS INNOVATION PLATFORM4% of our sales are invested in R&D

DIVERSIFIED PORTFOLIO


BUSINESS SEGMENTS

PRODUCT CATEGORIES

GEOGRAPHIC AREA

BRANDED / PRIVATE LABEL

MARKET SEGMENT

PRODUCTION

DELTA USA46%

GLOBAL UPPER MARKET26%

SCHIESSER17%

DELTA ISRAEL11%

LADIES51%

MENS20%

SOCKS15%

KIDS14%

USA59%

EUROPE27%

ISRAEL11%

OTHER3%

BRANDED50%

PRIVATE LABEL50%

UPPER MARKET38%

MID TIER30%

MASS MARKET32%

OUTSOURCING70%

IN HOUSE30%

Egypt

Thailand USA

Bulgaria

Turkey

Israel

Slowak RepublicJordan

China

Czech Republic


Our design activities, development centers and manufacturing facilities are strategically placed to work synergistically withone another in serving our customers with high quality, cost-effective solutions that meet their exacting demands.

OUR GLOBAL PRODUCTION SPREAD

Bangladesh

Vietnam


OUR GLOBAL SALES SPREAD

USA Germany Belgium Denmark

UK France Netherlands Austria

Israel Italy Switzerland Russia

OUR CUSTOMERS


OUR LICENSES


MEN’S UNDERWEAR /LOUNGE

WOMEN’S INTIMATES / LOUNGE

GIRLS INTIMATES

SOCKS

OUR BRANDS


2/3 of the branded business is DELTA owned brands

DELTA ISRAEL


The original Delta brand has been a household name

throughout Israel for decades. Accompanying people

throughout their lives and seeing children grow int o

adults. Delta is the first name to pop to mind when

requiring every day wear – with their young, innovat ive,

stylish garments Delta’s range is always comfortabl e

and always the answer .

Delta’s garments are distributed and sold through the

country’s major retailers as well as in Delta’s own 150 stores

and online shop.

Delta has exclusive licensee agreements for Israel with

Disney, Marvel, Nici, Power Rangers, Paul Frank and

KimmiDolls, for design, production and marketing of intimate

apparel, pajamas and children’s wear.

SCHIESSER


Established in 1875, Schiesser is a true success sto ry.The best known underwear brand in Germany.

The brand’s basic values are quality, innovation, flexibility and natural materials.

Purchased by Delta Galil in 2012.Schiesser holds Germany’s top market share in the men’s segment as well as solid shares in the women’s and children’s segments.

Sold primarily under the Schiesser brand, the company also carries a youth-oriented line called: Schiesser-Uncover, and a trendy retro collection known as Schiesser-Revival. All Schiesser brands retail in department stores, specialty stores, and in company-owned stores located throughout Germany.

Other key markets include Belgium, Netherlands, Switzerland, Austria and Italy.


LittleMissMatched

“Be bold and think outside the socks. Fashion is fu n!“

LittleMissMatched started with a very simple mission: Build

a girls’ clothing brand that is FUN, inspires CREATIVITY,

embraces INDIVIDUAL STYLE and celebrates SELF

EXPRESSION.

In the LittleMissMatched world, matching is mundane,

but mixing patterns and colors is monumentally cool.

LMM offers colorful girls’ socks sold in packs of three,

bold girls’ clothing and beauty accessories, colorful

bedding, sporty arm and leg warmers, as well as awesome

backpacks, handbags and slippers.

LittleMissMatched was acquired by Delta Galil in 2012.


KAREN NEUBERGER

Heritage of softness, comfort and appeal.

With a flattering fit and boasting a knCool® smart fabric

with cooling technology, KN offers more updated styling

possibilities and a range of tops that you can wear out –

all in line with Delta Galil’s philosophy of comfort.

Established in 1994, acquired by Delta Galil in 2011.

A lifestyle brand of women’s sleepwear.

The collection includes sleep-shirts, gowns, short-sets

and robes.


NEARLY NUDE

Nearly Nude is a vital fashion foundation line, des igned to slip comfortably under any outfit, loving your b ody and providing support where you need it.

Nearly Nude was established in 2005, to close a gap spotted by the brand founder, in the Australian market. Nearly Nude serves women of all shapes and sizes with a range of classic, feminine, comfortable seamless shapewear that can be worn every day.Known for its innovative technology and engineered to slim, smooth and compress, Nearly Nude is the ultimate shaping underwear.

Nearly Nude was acquired by Delta Galil in 2010 and is currently stocked in close to 400 stores worldwide, including countries such as: Japan, USA, United Kingdom, Canada, Singapore, Indonesia, New Zealand, Hong Kong, Sweden and France.

PJ SALVAGE


Is one of the leading manufacturers of fashionable pj’s, loungewear

and women’s intimates.

Known for using luxury fabrics and chic patterns, P.J. Salvage

transformed nightwear and began a renaissance in bedroom

fashions that has crossed over into loungewear and everyday wear.

Paying meticulous attention to every detail, P.J.Salvage prides itself

in superior quality, luxurious fabrics, celebratory fits, and chic style.

The brand was purchased by Delta in 2015 and is selling in

Nordstrom, Dillard's, Bloomingdales and 1,000 specialty stores.


WE CARE

Social compliance audits (ETI, WRAP, GSP)

High quality standards

Safe and healthy working environment

A worldwide sustainability policy

Eco-friendly manufacturing processes

Developing & introducing greener products

Citizenship reporting system - GRI

Community outreach


SUMMARY

�Technology and Innovation are part of our DNA.

�Products are non-cyclical.

�Innovate collaboratively with top performance brands with long term relationships

�Strengths include globalization and diversification.

�Strong operational leverage.

�Impressive 6-year financial track record.

�Highly experienced and incentivized management team.

THANK YOUwww.deltagalil.com

http://www.deltagalil.com/

Business

Delta Galil Company Overview 2015