BACK TO BASICS · 11/19/2019 · 2 2019 Gildan Institutional Investor and Analyst Conference...

2019 Gildan Institutional Investor and Analyst Conference – San Pedro Sula, Honduras - November 19-21, 20191

BACKTO BASICS2019 INSTITUTIONAL

INVESTOR & ANALYST

CONFERENCE

SAN PEDRO SULA, HONDURAS

NOVEMBER 19-21, 2019



Forward looking statementsCertain statements included in this presentation constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities legislation and regulations, andare subject to important risks, uncertainties, and assumptions. This forward-looking information includes, amongst others, information with respect to our objectives and the strategies to achieve these objectives, as well asinformation with respect to our beliefs, plans, expectations, anticipations, estimates, and intentions. Forward-looking statements generally can be identified by the use of conditional or forward-looking terminology such as“may”, “will”, “expect”, “intend”, “estimate”, “project”, “assume”, “anticipate”, “plan”, “foresee”, “believe”, or “continue”, or the negatives of these terms or variations of them or similar terminology. We refer you to theCompany’s filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission, as well as the risks described under the “Financial risk management”, “Critical accounting estimates andjudgments”, and “Risks and uncertainties” sections of the Company’s MD&A for the three months ended September 29, 2019 and for the fiscal year ended December 30, 2018 for a discussion of the various factors that mayaffect the Company’s future results. Material factors and assumptions that were applied in drawing a conclusion or making a forecast or projection are also set out throughout this document.

Forward-looking information is inherently uncertain and the results or events predicted in such forward-looking information may differ materially from actual results or events. Material factors, which could cause actual resultsor events to differ materially from a conclusion, forecast, or projection in such forward-looking information, include, but are not limited to: our ability to implement our growth strategies and plans; our ability to successfullyintegrate acquisitions and realize expected benefits and synergies; the intensity of competitive activity and our ability to compete effectively; changes in general economic and financial conditions globally or in one or more ofthe markets we serve; our reliance on a small number of significant customers; the fact that our customers do not commit to minimum quantity purchases; our ability to anticipate, identify, or react to changes in consumerpreferences and trends; our ability to manage production and inventory levels effectively in relation to changes in customer demand; fluctuations and volatility in the price of raw materials used to manufacture our products,such as cotton, polyester fibres, dyes and other chemicals; our reliance on key suppliers and our ability to maintain an uninterrupted supply of raw materials and finished goods; the impact of climate, political, social, andeconomic risks in the countries in which we operate or from which we source production; disruption to manufacturing and distribution activities due to such factors as operational issues, disruptions in transportation logisticfunctions, labour disruptions, political or social instability, bad weather, natural disasters, pandemics, and other unforeseen adverse events; compliance with applicable trade, competition, taxation, environmental, health andsafety, product liability, employment, patent and trademark, corporate and securities, licensing and permits, data privacy, bankruptcy, anti-corruption, and other laws and regulations in the jurisdictions in which we operate; theimposition of trade remedies, or changes to duties and tariffs, international trade legislation, bilateral and multilateral trade agreements and trade preference programs that the Company is currently relying on in conducting itsmanufacturing operations or the application of safeguards thereunder; factors or circumstances that could increase our effective income tax rate, including the outcome of any tax audits or changes to applicable tax laws ortreaties; changes to and failure to comply with consumer product safety laws and regulations; changes in our relationship with our employees or changes to domestic and foreign employment laws and regulations; negativepublicity as a result of actual, alleged, or perceived violations of labour and environmental laws or international labour standards, or unethical labour or other business practices by the Company or one of its third -partycontractors; changes in third -party licensing arrangements and licensed brands; our ability to protect our intellectual property rights; operational problems with our information systems as a result of system failures, viruses,security and cyber security breaches, disasters, and disruptions due to system upgrades or the integration of systems; an actual or perceived breach of data security; our reliance on key management and our ability to attractand/or retain key personnel; changes in accounting policies and estimates; and exposure to risks arising from financial instruments, including credit risk on trade accounts receivables and other financial instruments, liquidityrisk, foreign currency risk, and interest rate risk, as well as risks arising from commodity prices.

These factors may cause the Company’s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on the Company’sbusiness. For example, they do not include the effect of business dispositions, acquisitions, other business transactions, asset write-downs, asset impairment losses, or other charges announced or occurring after forward-looking statements are made. The financial impact of such transactions and non-recurring and other special items can be complex and necessarily depends on the facts particular to each of them.

There can be no assurance that the expectations represented by our forward-looking statements will prove to be correct. The purpose of the forward-looking statements is to provide the reader with a description ofmanagement’s expectations regarding the Company’s future financial performance and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward-looking statements contained in thispresentation are made as of the date of this presentation, and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, futureevents, or otherwise unless required by applicable legislation or regulation. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement.


GLENN J. CHAMANDYPRESIDENT AND CHIEF EXECUTIVE OFFICER

STRATEGIC BUSINESS OVERVIEW



LEVERAGING OUR CUSTOMERS’ DISTRIBUTION CAPABILITIES

BACKTO BASICS

LEVERAGING OUR CORE COMPETENCIES Low-cost, large-scale vertically integrated manufacturer


SIMPLIFYING PRODUCT PORTFOLIO

DRIVING MANUFACTURING COST ADVANTAGE AND SCALE

DRIVES GROWTH AND IMPROVED GROSS MARGIN, SG&A AND RONA

5 2019 Gildan Institutional Investor and Analyst Conference – San Pedro Sula, Honduras - November 19-21, 2019

2.82.9

20182017 2019E

0.3

1.1

1999 2009

POSITIONED FOR NEXT PHASE OF GROWTH


HISTORICAL NET SALES1

Organic growth in imprintablesshare in the U.S.

Development of Central American manufacturing hub

High organic growth Acquisitions bolster capabilities

Acquired brands, products anddistribution assets to build a platform for future growth,

which added complexity

Back-to-Basics

Launched Back to Basics with consolidation of business units and

initiatives to reduce complexity and leverage our scale, enabling

the next phase of growth

Developing next major manufacturing hub in Bangladesh

LSD

dec

line

Net sales in US $b

1.1

2.2

20132009

2.2

2.8

2013 2017

Accelerated penetration intoInternational markets

Leveraged capabilities to expand into retail innerwear, initially via

M&A

Established initial Bangladesh production

Expansion into new areas

1 On a calendar year basis


BACK-TO-BASICS PRODUCT PORTFOLIO SIMPLIFICATION


SKU COUNT BY REGION

• Rationalizing redundant ship-to-the-piece SKUs

– Expected completion of phase-out by Q1 2020

• Continuing to grow in underpenetrated categories

• Improve mix and profitability by growing International SKU offering

Simplifying product portfolio and rationalizing less productive SKUs, while introducing new products in underpenetrated North American and International growth areas

U.S. INTERNATIONAL

1610

2

U.S. Europe Asia

Long-term increase / decreaseSKU figures in ‘000’s


Textile manufacturing hubs

Countries in which Gildan has a presence

Yarn spinning facilities


GLOBAL VERTICALLY INTEGRATED LOW-COST MANUFACTURING SUPPORTED BY TWO HUBS IN CENTRAL AMERICA AND BANGLADESH

HIGHLIGHTS

1 Newest, state-of-the-art North American yarn spinning asset base

Large-scale integrated operations in textile, sewing and hosiery

Strategically located and duty favorable

~$1.9b capital invested in yarn, textile, hosiery and sewing facilities

~53k employees worldwide

Expanding large-scale, low-cost Bangladesh hub

2

3

4

5

GLOBAL PRESENCE

Gildan products

sold in 60+

countries

6



DRIVING OUR MANUFACTURING HUBS TO GENERATE INCREMENTAL CAPACITY AND SUPPORT GROWTH

CENTRAL AMERICA / CARIBBEAN BASIN

BANGLADESH

Incremental capacity to support over $1b in incremental sales with margin expansion opportunity

• Large-scale open-end and ring-spun products suited for North American markets

• Consolidating production into the most attractive regions

• Furthering Gildan’s low-cost competitive advantage

• Opportunity to support further growth in North American Fashion Basics

• Unlocking International and Private Brand growth opportunities

• Provides opportunity to broaden our product portfolio

• Leveraging sourced fabrics creates incremental growth opportunities


SIMPLIFYING OUR IMPRINTABLE AND RETAIL U.S. DISTRIBUTION INFRASTRUCTURE

Go-forward distribution centers


• Expected completion of pick-to-the-piece distribution footprint consolidation by Q1 2020

• Leveraging distributor networks for imprintablesbusiness

• Retail Brick and Mortar and e-commerce partners for retail business

• Opportunities to further enhance overall distribution strategy

STRATEGYOPTIMIZED U.S. DISTRIBUTION FOOTPRINT

Exited distribution centers



LEVERAGING OUR GLOBAL IMPRINTABLES DISTRIBUTOR NETWORK

Distributors’ distribution points

1 ~30 distribution points located in China

+60 distribution

points in the

Americas

+50distribution

points in Europe,

Middle East and Africa

+40distribution

points in Asia1

Over 150 distribution points worldwide


UTILIZING OUR RETAIL BRICK AND MORTAR AND E-COMMERCE PARTNERS TO DRIVE OUR RETAIL BUSINESS

SELECT U.S. BRICK AND MORTAR AND E-COMMERCE PARTNERS

RANGE OF INTERNATIONAL E-COMMERCE OPPORTUNITIES



PRIVATE BRANDS

MAJOR CUSTOMERS

GILDAN’S GROWTH DRIVERS

STRATEGIC BUSINESSOVERVIEW


RETAIL BRANDS

BRAND PORTFOLIO

IMPRINTABLE BRANDS

Drive leadership in growing Fashion Basics product segment, reinforce core

brands’ value proposition and grow internationally by replicating North

American success

BRAND PORTFOLIO

Grow the Gildan family of brands with key retailers and e-

commerce partners

Partner with selected retailers and brands to supply large scale Basic

apparel programs

Investing in capacity to support growth

$500m in Central America $500m in Bangladesh

2019 Gildan Institutional Investor and Analyst Conference – San Pedro Sula, Honduras - November 19-21, 201913 2019 Gildan Institutional Investor and Analyst Conference – San Pedro Sula, Honduras - November 19-21, 2019

MIKE HOFFMANPRESIDENT, SALES, MARKETING AND DISTRIBUTION

SALES AND MARKETING OVERVIEW


Global imprintables

North American retail

1 Source: Management estimates for the imprintable market, and NPD Retailers Tracking service, POS and Consumer data as well as management estimates for the retail market2 Activewear includes t-shirts, fleece and polos, underwear includes men’s underwear bottoms and ladies panties, hosiery includes men’s, women’s and children’s socks and sheer; Other includes imprintable outerwear, workwear and accessories

GILDAN’S GLOBAL ADDRESSABLE MARKET

BY PRODUCT CATEGORY1,2 BY SALES CHANNEL1

~$20b global addressable

market

~$20b global addressable

market

Other


Gildan’s share represents 15% of its addressable market

Hosiery

Underwear

Activewear


~$11B GLOBAL IMPRINTABLES MARKET SIZE BY PRODUCT CATEGORY

1 Management estimates, go-forward constant economy growth rates, in wholesale dollars 2 Represents ~$6.7b at the Distributor level3 Includes T-shirts, long-sleeves, fleece and other basic products


U.S. MARKET INTERNATIONAL MARKET

~$5.5b U.S. market1,2

~$5.7b International

market1

Uniforms, workwear, outerwear andaccessories

Performance(synthetic)

Uniforms, workwear, outerwear and accessoriesBasics

(open-end)3

Basics(open-end)3

Fashion Basics(ring-spun)

Fashion Basics(ring-spun)


Event merchandising, tourism and all others | ~30%

OVERVIEW OF IMPRINTABLE PRODUCT END-USERS


Corporate | ~35%

Uniforms | 10%

Education | 10%

Consumer | 15%

Range of imprintable

end-user applications

Source: Management estimates


MARKET DYNAMICS INCREASING ACCESSIBILITY AND OPPORTUNITY

↑ Ideal for short runs with multiple colors

↑ Rapid speed to market

GROWING UNIVERSE OF ONLINE PLATFORMS SELLING DIRECTLY TO CONSUMERS AND SMALL BUSINESSES

DIGITAL PRINTING IS DRIVING THE GROWTH OF ON-DEMAND RETAIL READY PRODUCTS

Developing new products optimized for digital printing

Opportunity for Gildan

Advantages

Gildan’s products are compatible with digital printing



IMPRINTABLES CORE BRAND POSITIONING

Natural worn and comfortable look with a rich color

pallet

Globally iconic fashion brand with

a premium Fashion offering

Premium polo shirts for the new

business preuxfessional

Imprintablesindustry leader

with value Fashionoffering


GILDAN AMERICAN APPAREL COMFORT COLORS PRIM + PREUX


DRIVING SHARE IN U.S. FASHION BASICS


AMERICAN APPAREL COMFORT COLORS

Gildan is well positioned with a ~20-25% share in ring-spun Fashion Basics in the U.S. and expects continued growth at above market rates, supported by vertically integrated, low-cost manufacturing

PORTFOLIO OF U.S. FASHION BASIC BRANDS

GILDAN

4.5oz. 6.0oz. Tri-blend Side-seamed Garment dyed5.5oz.

Gildan 5000 Ring-Spun

Launching in 2020


Gildan 64000 becoming 2nd largest imprintable style

INDUSTRY LEADING RING-SPUN FASHION BASICS PORTFOLIO

Price: ~$2.00 Price: ~$2.25

Price: ~$3.00 Price: ~$3.00

2001 COMPETITOR A COMPETITOR B

Price: ~$3.00

GILDAN 64000 CONTINUING RAPID GROWTH TRAJECTORY

FULL RANGE OF RING-SPUN FASHION BASICS ADDRESSING ALL PRICE POINTS

201720152014 2016 2018

Gildan 64000 volume growth +20% CAGR

64000 980

Source: Pricing at leading distributor

5000R/S

C1717

Price: ~$4.00


H000

Price: ~$2.25 Price: ~$2.50


NORTH AMERICAN RETAIL REPRESENTS A ~$9B ADDRESSABLE MARKET


BY CHANNEL BY PRODUCT

~$9b U.S. market

~$9b U.S. market

Source: NPD Consumer Data and management estimates, in wholesale dollars 1 Includes men’s, women’s and children’s socks and sheer

Activewear

Underwear

Hosiery1

MassDepartment stores /

national chains

Off-price

Other brick-and-mortar retail

Online


ADDRESSABLE RETAIL MARKET BY PRODUCT CATEGORY


ACTIVEWEAR UNDERWEAR HOSIERY1

Retail Brands

Private Brands Private Brands

Retail Brands

Private Brands

Retail Brands

~$3b market size

~$3b market size

~$3b market size

Source: NPD Consumer Data and management estimates, in wholesale dollars 1 Includes men’s, women’s and children’s socks and sheer


OVERVIEW OF GILDAN’S RETAIL BRAND PORTFOLIO

Globally iconic premium fashion brand Leading global lifestyle sock brand

Leading basics brand spanning multiple product categories

Premium heritage hosiery brand Leader in Canadian sheer

Iconic ladies hosiery brand


GILDAN’S RETAIL BRAND PORTFOLIO IS WELL ESTABLISHED IN BRICK-AND-MORTAR

Largest brand by revenue

LEVERAGING ONLINE MARKETPLACES

Continuing to grow retail brands via a marketplace centric e-commerce strategy

ACTIVEWEAR UNDERWEAR HOSIERY


RETAILER SELECT PRIVATE BRANDS

GROWING RELEVANCE OF PRIVATE BRANDS



RETAILERS COMMITTED TO DRIVE PRIVATE BRANDS


ELEVATING CUSTOMER PERCEPTIONS WITH HIGHER QUALITY PRODUCTS AND PREMIUM FEATURES

RECONFIGURING FLOOR SPACE TO EMPHASIZE PRIVATE BRAND OFFERINGS

Ring-spun

Four-way stretch

Moisture wicking

Anti-microbial

Tag-free comfort

Shifting floor plans to emphasize Private Brands


UNIQUELY POSITIONED TO CAPITALIZE ON SHIFT TO PRIVATE BRANDS


• Low-cost and large-scale manufacturing capacity

• Long-standing relationships with key retailers and brands

• Distribution infrastructure

• Systems and organizational capabilities to execute on large programs

• Financial capacity to support large-scale programs

• Long-term opportunities with low risk of attrition

• Minimal SG&A spend required

KEY SUCCESS FACTORS

Underwear

Hosiery

Activewear


BACKTO BASICS


POSITIONED TO SUCCEED

LEADING PRODUCT VALUE

PROPOSITION

LONG-TERM RELATIONSHIPS

SCALE OF OUR ORGANIZATIONAL CAPABILITIES

LOW-COST MANUFACTURING


BENITO MASIPRESIDENT, MANUFACTURING

MANUFACTURING OVERVIEW


MORE THAN TWO DECADES OF DEVELOPINGLARGE SCALE MANUFACTURING BASE AND SPECIALIZED SKILL SET

HONDURASMANUFACTURING

DISTRIBUTION CENTRE

HONDURAS

SCREEN-PRINTING(NEW BUFFALO ACQUISITION)

HONDURASRIO NANCE 6

TEXTILESDEVELOPMENT

OF BANGLADESH HUB

DOMINICAN REPUBLIC

TEXTILES

NICARAGUA1ST SEWING FACILITY

HONDURASRIO NANCE I

TEXTILES

HONDURAS1ST OFF-SHORE

PLANT SEWING

HONDURASRIO NANCE 4

HOSIERY

HONDURASRIO NANCE 5

TEXTILES

201620152010 2012 2013 20192018201720141997 2002 2005 2006 2007

HONDURASRIO NANCE 3

HOSIERY

HONDURASRIO NANCE 2

TEXTILES

BANGLADESH ACQUISITION

HONDURASGARMENT DYEING

ACQUIRED 4 PLANTS

BUILT 3 PLANTS

U.S. YARN SPINNING INVESTMENTS




GILDAN’S COMPETITIVE ADVANTAGE

OVERVIEW OF GILDAN’S MANUFACTURING COMPETITIVE ADVANTAGES

Yarn spinningcapability

Large scale in knittextiles, hosiery and

sewing

Scale of organizational

capabilities

Our people

Gildan’s competitive advantage stems from a ~$1.9b investment in large-scale, low-cost, vertically integrated, environmentally responsible manufacturing facilities

• State-of-the-art North American yarn spinning asset base provides cost advantage and consistent, high-quality supply of open-end, MVS and ring-spun yarns

• Strategically located in low-cost and duty favorable geographies

• Fixed cost leverage from cost reduction initiatives and investments in industry leading technologies

• Scale provides ability to streamline manufacturing facilities to optimize capacity and costs

• Flexible and resilient network of sewing facilities in Central America and Bangladesh

• Infrastructure and full spectrum of capabilities to support large-scale programs

• Strong balance sheet to support manufacturing capacity and working capital investments to secure large programs

• Ability to invest to drive innovation

• Strong localized management infrastructure with depth of talent

• Skilled workforce with >50K employees in Central America / Caribbean Basin and Bangladesh

Leading CSR • Vertically-integrated owned and operated facilities provide control and oversight



STATE-OF-THE-ART NORTH AMERICAN YARN SPINNING ASSET BASE

~$500m capital investment

Acquired new open-end facility (Eden) in 2019

OVERVIEW OF YARN OPERATIONS

7 yarn spinning facilities in close proximity to cotton

sources

Optimized transportation loop from raw materials to

finished goods

State-of-the-art spinning asset base

Newly acquired Eden facility

Yarn plants

Distribution centers (East Coast)



BIOMASS

RN3RN1

GILCHEM

RN5RN4

RN6

BIO-TOP

RN2

HDC

SUBSTATION

GLOBAL MANUFACTURING OFFICES

Scale and expertisedrives competitive

advantage

New open width capacity

New Ctex Lab and color lab capabilities

$1.3BILLION

INVESTED IN CENTRAL AMERICA AND

CARIBBEAN BASIN

2001-201932

RIO NANCE TEXTILE AND HOSIERY COMPLEX




REINFORCING OUR CENTRAL AMERICA COMPETITIVE ADVANTAGE

• Ramp-up of the state-of-the-art Rio Nance 6 facility

• Expanding capacity in existing Rio Nance 1, 2 and 5 facilities

• Consolidating and relocating higher cost Mexican and AKH production into existing Central American and Caribbean Basin facilities

• Consolidation of sock manufacturing capacity

• Divesting higher cost sewing plants

1

3

4

5

MANUFACTURING AND SUPPLY CHAIN INITIATIVES

~$1.3b investedin Central

America and Caribbean Basin

~ 45k

employees


2

Reducing costs while supporting $500m of incremental revenue


• Skilled workforce at competitive labour rates

• Water and energy availability at low-cost

• Duty-free access to targeted International markets

• Leveraging existing management team and close to 10 years of operating experience in Bangladesh

Supports $500m of

incremental revenue

ESTABLISHING A LARGE-SCALE, MULTI-PLANT MANUFACTURING COMPLEX IN BANGLADESH

BANGLADESH CAPACITY EXPANSION SUPPORTS FASHION BASICS, PRIVATE BRANDS AND INTERNATIONAL GROWTH

Shahriyar facility acquisition

Phase 1 supports 2022 sales

Land acquisition & site development

Infrastructure and building

investment

Manufacturing equipment investment

2010 2019 2020 2021 2022

Timeline


Phase 1 investment of ~$200m


ESTABLISHING A LARGE-SCALE, MULTI-PLANT MANUFACTURING COMPLEX IN BANGLADESH

InfrastructurePhase I

footprint

Optionality to construct a

second phase

SCALE AND FLEXIBILITY OF SITE PROVIDES OPTIONALITY

Illustrative site layout

Fully integrated textile production including knitting,

dyeing, finishing and cutting

Multi-story sewing facility on-site

INCREMENTAL SEWING CAPACITY

Expanding sewing capacity in Bangladesh by leveraging

sourced fabrics

Ensures sewing capacity in place

to support quicker ramp-up

of new Bangladesh

facility

Enables merchandising of

full range,including

ancillary product for retailers



BACKTO BASICS

WIDENING THE COMPETITIVE ADVANTAGE GAP WITH OUR COMPETITORS

LEADING CORPORATE

SOCIAL RESPONSIBILITY

LEVERAGING OUR PEOPLE AND

GLOBAL ORGANIZATION

VERTICAL INTEGRATION

INCREASING CAPACITY IN

CENTRAL AMERICA

EXPANDING BANGLADESH HUB

TO SUPPORT GROWTH



RHODRI J. HARRIESEXECUTIVE VICE-PRESIDENT, CHIEF FINANCIAL AND ADMINISTRATIVE OFFICE

FINANCIAL REVIEW


388504 524

586 596

201820152014 2016 2017 2019E

SOLID FINANCIAL PERFORMANCE

1.1

2

1.4

2

1.4

7

1.6

1

1.6

6

1.1

4

1.4

6

1.5

1

1.7

2

1.8

6

20162014 2015 2017 2018

1.4

3-1

.48

1.6

5-1

.70

2019E

2,2992,569 2,585 2,751 2,909

2014 20162015 2017 2018 2019E

-82

159

398

519429

201820172014 2015 2016 2019E

SALES1 ADJUSTED EBITDA1,2,4

EARNINGS PER SHARE1,2

In m $US6%

CAGR(2014-18)

13%3

CAGR(2014-18)

11%CAGR(2014-18)

Approx. $1.4b(2014-18)

FREE CASH FLOW1,2,4

In $US

In m $US

In m $US

545-555

200-250

LSD decline

FINANCIAL REVIEW

Diluted EPS Diluted adjusted EPS2

1 On a calendar year basis 2 See definition and reconciliation of non-GAAP financial measures in Gildan’s 2018 Report to Shareholders 3 Based on diluted adjusted EPS4 Adjusted EBITDA and Free Cash Flow for 2019 are expected to be positively impacted by ~$16m and ~$13m respectively, due to the initial adoption of the new lease accounting standard (IFRS 16)

3%CAGR

(2015-19E)

2%CAGR

(2015-19E)

3%3

CAGR(2015-19E)

Approx. $1.7b

(2015-19E)


REVENUE OVERVIEW

FINANCIAL REVIEW

REVENUE BY PRODUCT

15%

2017

87%

13%

85%

2018

85%

15%

20193

2,7512,909

US Rest of world1

REVENUE BY GEOGRAPHY

26%

74%

2017

80%

20%

2018

82%

18%

20193

2,7512,909

Hosiery and underwearActivewear

LSD decline2 LSD decline2

1 Includes Canada and International2 Represents full year guidance3 Percentages are based on 2019 YTD revenue breakdown by product and geography

In $m In $m


CONTINUING TO ENHANCE PROFITABILITY TO DRIVE RETURNS

GROSS MARGIN

FINANCIAL REVIEW

SG&A AS A % OF SALES

RONA1

27.8% 29.1% 27.7%30.0%

2019E20172016 2018 Target

13.0% 13.6% 12.5% 12.0%

2016 2017 2018 2019E Target

<12.5%

14.0% 14.9% 15.6%

20.0%

2016 2019E20182017 Target

• Improving product mix

• Reducing complexity

• Expanding and optimizing low-cost manufacturingadvantage

• Optimizing distribution by leveraging distributors, retailers and e-commerce partners

KEY DRIVERS

<27.7%

In % In %

In %

<15.6%

1 See definition and reconciliation of non-GAAP financial measures in Gildan’s 2018 Report to Shareholders


CAPITAL INVESTMENTS TO EXPAND LOW-COST MANUFACTURING ADVANTAGE

FINANCIAL REVIEW

CAPITAL EXPENDITURES 1

In $m and %

14095

125

175

5%4% 4%

6%

-20

-15

-10

-5

0

5

10

0

50

100

150

200

250

2019E20172016 2018 Go-forward

Capex as a % of sales Capex

Depreciationof PPE2

$119 $137 $131 $133

1 Capex includes both purchases of property, plant and equipment and intangible assets 2 Depreciation of property, plant and equipment included in net earnings

4-5%


STRONG FREE CASH FLOW GENERATION

FINANCIAL REVIEW

FREE CASH FLOW1

In $m

398

519

429

2019E20172016 2018 Go-forward

AdjustedEBITDA1

$524 $586 $596 $545-$555

1 See definition and reconciliation of non-GAAP financial measures in Gildan’s 2018 Report to Shareholders

200-250


MAINTAINING 20% DIVIDEND GROWTH

FINANCIAL REVIEW

DIVIDEND PER SHARE1

In $ per common share

0.160.19

0.230.26

0.31

0.37

0.45

0.54

201820142012 20152013 2019E2016 2017

~20%

Div. yield %2 1.0% 0.8%

1 Based on a calendar year basis2 Based on quarterly average share price on a fiscal year basis 3 Based on share price as of November 12th, 2019

0.8% 0.9% 1.1% 1.2% 1.5% 2.0%3


CONTINUING TO RETURN CAPITAL TO SHAREHOLDERS VIA SHARE REPURCHASES

FINANCIAL REVIEW

SHARE REPURCHASES

In $m

395

329

368

2016 2017 2018 2019E

5.0% 6.1%

5.0% NCIB program in

place

% of shares repurchased

5.7%


MAINTAINING 1X-2X LEVERAGE

FINANCIAL REVIEW

NET DEBT / ADJUSTED EBITDA1

1.0x

1.3x1.2x

1.0x

1.3x

1.1x 1.1x1.0x

1.3x

1.5x1.4x

1.0x

1.6x

1.8x1.7x

Q4 Q1Q1 Q2Q3Q1Q2 Q3 Q4 Q2Q3Q2 Q1 Q4 Q3 Target

Net debt / Adjusted EBITDA framework

2016 2017 2018 20192

1 See definition and reconciliation of non-GAAP financial measures in Gildan’s 2018 Report to Shareholders 2 Average impact of implementation of IFRS 16 on the 2019 net debt / adjusted EBITDA ratio is +0.1x

2.0x

1.0x


Dividend yieldOrganic growth Share repurchasesOperating margin expansion

Expected total shareholder return

~10%

ACHIEVING TSR OF ~10% VIA OPERATIONAL ENHANCEMENTS AND CAPITAL RETURN

FINANCIAL REVIEW

TOTAL SHAREHOLDER RETURN OBJECTIVE (%)


2019 RECAP AND 2020 GROWTH DRIVERS

FINANCIAL REVIEW

*Includes trade account receivables charge for Heritage bankruptcy1Includes expected restructuring and acquisition-related charges of ~$45m and does not include additional potential GAAP charges of $35-$45m2 As at September 29, 2019 - 1.7x

Sales LSD decrease Fashion Basics, International and Private Brands

Gross Margin <27.7%Margin expansion from manufacturing initiatives,

easing of raw material headwinds

SG&A <12.5% Continued SG&A cost containment

Diluted EPS1 $1.43-$1.48*

Adjusted EPS $1.65-$1.70* Attractive EPS growth

Capex $175m ~4 -5% of sales

Free Cash Flow $200-$250m Strong cash flow generation

Net debt / EBITDA2 1x-2x Strong balance sheet

FY2019 guidance FY2020 drivers


GLENN J. CHAMANDYPRESIDENT AND CHIEF EXECUTIVE OFFICER

CONCLUSION



Leading brands, products and customer relationships

Mid-single digit revenue growth30% gross margin, 12% SG&A

Dividend growth, acquisitions and return of capital via share repurchases

LEVERAGING OUR CORE COMPETENCIES

Imprintable Brands

Drive leadership in growing Fashion

Basics product segment, reinforce core

brands’ value proposition and grow

internationally by replicating North

American success

Grow the Gildan family of brands with

key retailers and e-commerce

partners

Partner with selected retailers and

brands to supply large scale Basic

apparel programs

Retail Brands Private Brands

CONCLUSION

Driving manufacturing cost advantage and scale with$1b of incremental low-cost capacity in

Central America and Bangladesh

Simplifying product portfolio

Leveraging our customers’ distribution capabilities


SAN PEDRO SULA, HONDURAS

NOVEMBER 19-21, 2019

QUESTIONPERIOD


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