Note: All figures are in US dollars.

Transcription

1 Investor Presentation April 2010

2 FORWARD LOOKINGOOKING STATEMENTS Except for historical information provided herein, this presentation may contain information and statements of a forward looking nature concerning the future performance of Dorel Industries Inc. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. The business of the Company and these forward looking statements are subject to a number of risks and uncertainties that could cause actual results to differ from expected results. Important factors which could cause such differences may include, without excluding other considerations, increases in raw material costs, particularly for key input factors such as particle board and resins; increases in ocean freight container costs; failure of new products to meet demand expectations; changes to the Company s effective income tax rate as a result of changes in the anticipated geographic mix of revenues; the impact of price pressures exerted by competitors, and settlements for product liability cases which exceed the Company s insurance coverage limits. A description of the above mentioned items and certain additional risk factors are discussed in the Company s Annual MD&A and Annual Information Form, filed with the securities regulatory authorities. The risk factors outlined in the previously mentioned documents are specifically incorporated herein by reference. The Company s business, financial condition, or operating results could be materially adversely affected if any of these risks and uncertainties were to materialize. Given these risks and uncertainties, investors should not place undue reliance on forward looking statements as a prediction of actual results. Note: All figures are in US dollars. 2

3 AT A GLANCE DIVISIONS PRODUCT RANGE OUR PREMIUM BRANDS DOREL EUROPE DOREL JUVENILE GROUP USA DOREL DISTRIBUTION CANADA IGC DOREL PTY (AUSTRALIA) DOREL BRAZIL CYCLING SPORTS GROUP (CSG) PACIFIC CYCLE APPAREL &FOOTWEAR GROUP (AFG) Children s car seats Strollers High chairs Playpens Toddler beds Early learning/infant health/safety aids Cribs, dressers Bicycles Fitness apparel Jogging strollers Swing sets Ride on toys Others recreational products AMERIWOOD COSCO HOME & OFFICE DOREL ASIA DOREL HOME PRODUCTS ALTRA FURNITURE Ready to assemble furniture Metal folding furniture Step stools Ladders Futons Bunk beds Upholstery 3

4 RECENT ACQUISITIONS 2003 Ampa France (Dorel France) 2004 Pacific Cycle 2007 IGC Australia (55% interest) 2008 Cannondale/SUGOI 2008 PTI Sports 2009 Baby Art (Hoppop Brand) 2009 Dorel Brazil (70% interest) 2009 IronHorse Bicycles 2009 Gemini Bicycles 2009 Hot Wheels, Circle Bikes 4

5 REVENUE BY SEGMENT % 22% 46% JUVENILE RECREATIONAL/LEISURE HOME FURNISHINGS 5

6 GEOGRAPHIC DISTRIBUTION OF SALES (BY CUSTOMER) % 6% 2% 63% US CANADA EUROPE OTHER 6

7 MANAGING THE ECONOMIC DOWNTURN 2009 Highly proactive in product development Invested in 5 acquisitions Opening to mid price point products maintained strong point of sale levels Exciting new product introductions 7

8 JUVENILE SEGMENT Years Ended December Revenues $ 995,014 $ 1,073,722 Gross Profit 274, ,680 Earnings from operations* 92, ,837 *Includes out of period F/X (losses)/gains $ (12.6) $ 8.9 Excluding F/X effect 105, ,937 8

9 A WORLD LEADER IN JUVENILE World s largest Juvenile Products Company in our categories. Consistent growth: 5% average annual growth 6% earnings from operations CAGR Intense product development = pipeline of new products 9

10 A WORLD LEADER IN JUVENILE DOREL NORTH AMERICA in the Market Booster Car Seats Convertible Car Seats Infant Car Seats Strollers Walkers High Chairs N O 1 DOREL DOREL Graco DOREL DOREL Graco N O 2 Graco Evenflo Evenflo Graco Evenflo DOREL N O 3 Evenflo Graco Dorel McLaren/Kolkraft Fisher Price Fisher Price Playards Travel Systems Bassinets Swings Bath Tubs Bath Accessories N O 1 Graco Graco Graco Fisher Price Fisher Price Munchkins N O 2 DOREL DOREL Kolkraft Graco DOREL Sassy N O 3 Evenflo Evenflo Delta Kids II RC2 Kids II Bedrails Feeding Booster Seat Potties Bouncers Diaper Pails Gates N O 1 Summer DOREL DOREL Kids II Playtex Evenflo N O 2 RC2 Fisher Price Fisher Price Fisher Price Baby Trend RC2 N O 3 DOREL Summer RC2 Summer DOREL Northstates Homesafety Travel Safety Infant Health Monitors Feeding Infant Carriers N O 1 DOREL Fisher Price DOREL DOREL Playtex Evenflo N O 2 Kidco Munchkin RC2 Summer Evenflo Infantino N O 3 PrivateLabel DOREL Summer Fisher Price Avent Baby Bjorn Company estimates 10

11 INNOVATION NORTH AMERICA Air Protect developed by DJG and Kettering University Revolutionary, ground breaking safety feature designed to protect children in side impact collisions Initial exclusive BRU launch in July enhanced DJG results Additional retailers commencing January 2010 Air Protect TM platform evolving with new models to be introduced 11

12 A WORLD LEADER IN JUVENILE Dorel Europe A major player close to US$450 million in sales Strong brands Majority of sales to Juvenile product chains, boutiques, independents Building mass merchant relationships General softness; no loss of market share Strong new product introductions Introducing products in lower to mid price point categories 12

13 A WORLD LEADER IN JUVENILE DOREL EUROPE in the Market France Spain Italy Belgium Portugal Switzerland Netherlands Germany UK Strollers N O 1 DOREL PLAY/JANE CHICCO DOREL DOREL CHICCO DOREL HAUCK GRACO N O 2 CHICCO DOREL PEG PERICLES CHICCO DOREL BUGABOO HARTAN M&P N O 3 MACLAREN CHICCO CAM BUGABOO BEBECAR BUGABOO MUTSY TEUTONIA MOTHERCARE Carseats N O 1 DOREL PLAY/JANE CHICCO DOREL DOREL DOREL DOREL RÖMER DOREL N O 2 TEAM TEX DOREL CAM RÖMER CHICCO RÖMER RÖMER DOREL BRITAX N O 3 RÖMER CHICCO INGLESINA CYBEX BEBECAR RECARO TEAM TEX RECARO GRACO Furniture N O 1 CHICCO JANE CHICCO CHICCO CHICCO CHICCO CHICCO HAUCK M&P N O 2 DOREL CHICCO PERICLES BREVI DOREL STOKKE TOPMARK GRACO CHICCO Small Nursery Product N O 1 AVENT CHICCO CHICCO AVENT CHICO AVENT AVENT NUK AVENT N O 2 TIGEX/NUK AVENT CHICCO AVENT BIBI CHICCO AVENT JACKEL Company estimates 13

14 INNOVATION EUROPE Quinny Senzz designed by Dorel Europe Lightweight, compact, easyto maneuver Features a one hand, flat one piece fold. Like a full feature stroller Naturally shaped seat reclines for the child s seating comfort 14

15 INNOVATION EUROPE Maxi Cosi FamilyFix Revolutionary in car seat safety & convenience Uses IsoFix attachment for top rate safety Only one base required for two consecutive age car seats (up to 35years 3.5 old) Light/sound confirmation of correct installation 15

16 RECREATIONAL/LEISUREEISURE SEGMENT Years Ended December Revenues $ 681,366 $ 656,613 Gross Profit 153, ,804 Earnings from operations 39,837 41,874 16

17 RECREATIONAL/LEISUREEISURE Three distinct operating divisions Cycling Sports Group (CSG) IBD Division Premium Brands Growing European distribution Focusing on breakthroughtechnology technology Build Dorel s bike business to # 1 position 17

18 RECREATIONAL/LEISUREEISURE Pacific Cycle Mass merchants/sporting goods chains Bicycle parts/accessories (PTI) Provides one stop shop for buyers Non bike platform of products 18

19 RECREATIONAL/LEISUREEISURE Apparel Footwear Group (AFG) Growing performance apparel divisionincorporatesincorporates SUGOI, Cannondale, GT, Schwinn, IronHorse and Mongoose lines New 70,000 sq. ft. Vancouver facility New high speed equipment New apparel industry veteran as President Focus custom apparel Objective triple business in 5 years 19

20 RECREATIONAL/LEISUREEISURE Worldwide Centers of Excellence Strategy Evolve as global innovation leader in R/L markets 5 Centers of Excellence around the world Expansion of Bethel, CT into world class Innovation Center for all R/L brands Bedford, PA to test and assemble Manufacturing of frames at new Taichung, Taiwan Center of Excellence 20

21 RECREATIONAL/LEISUREEISURE 2009 Acquisitions Assets of Iron Horse Bicycles Best known for downhill/extreme trail bikes Adds highly recognized brandto R/L portfolio Targeting Sporting Goods channel Assets of Australia s s Gemini Bicycles New division: Cycling Sports Group, Australia Assets of Hot Wheels and Circle Bikes New division: Cycling Sports Group, UK 21

22 RECREATIONAL/LEISUREEISURE A renewed commitment to the Schwinn brand Schwinn is the bicycle most Americans learned to ride on Multi million dollar national marketing, dealer activation and support program Objective: re energize America s most iconic bicycle brand Full page magazine ads, national cable TV and social media Dealer promotions, co op advertising, i special ilevents Updated logo renews nostalgic feeling Theme: Bicycle bell rings in Schwinn Br ring ring ding: Let s Go For A Ride! 22

23 HOME FURNISHINGS SEGMENT Years Ended December Revenues $ 463,734 $ 451,545 Gross Profit 77,308 50,915 Earnings from operations 36,696 7,964 23

24 GROWING HOME FURNISHINGS MUCH IMPROVED Ameriwood solidly profitable Increased RTA capacity Significant improvement at Cosco Home & Office (metal folding furniture, step stools) Focus on reasonably priced furniture sold at mass merchants 24

25 PROVEN CORPORATE STRATEGY Recession resistant products Right products, right price points, right time North American consumers are shopping more at mass merchants Ensuring market flexibility in Europe, building relationships with mass merchants Investing heavily in product innovation Known brands Generate strong cash flow 25

26 SUSTAINABILITY PHILOSOPHY Active in sustainability on several fronts throughout all three segments By nature of large volume of units sold, Dorel s eco conscious programs make an important contribution by reducing their environmental impact Despite goal of keeping prices to consumers low, Dorel intends to remain proactive in its sustainability initiatives Strict policy in place to ensure sustainable business practices of suppliers 26

27 SUSTAINABILITY INITIATIVES DHP: the first company supplying the mass market retail segment with a futon made from 100% FSC certified wood Altra Furniture: uses Bamboo in some furniture; Smart tprogram 100% non virgin i wood Ameriwood: 1. All saw dust, scrap, wood chips are recycled and returned to suppliers manufacturing processes 2. Over 500 tons of scrap metal is recycled annually LEED Gold Certified distribution facility reduces carbon foot print with two coast distribution system Safety 1 st Nature Next Collection features products made from eco conscious materials Warehouses are equipped with light sensors to eliminate entire areas being lit needlessly 27

28 FULL YEAR 2009 (in millions of US$, other than EPS) Revenue $ 2,140.1 $ 2,181.9 Pre tax income Net income* EPS (diluted) *Includes out of period F/X (losses)/gains $ (12.6) $ 8.9 Excluding F/X effect 105, ,937 28

29 Q months (in millions of US$, other than EPS) Revenue $ 545,303 $ 479,880 Net income 24,211 19,167 EPS (diluted) 0.73 (1) 0.57 (2) 1) Out of period F/X gain $0.02/diluted share 2) Out of period F/X loss $0.15 / diluted share 29

30 NEW LONG TERM FINANCING US$50 million Series A Senior Guaranteed Notes 4.24% interest Principal repayment due April 2015 US$150 million Series B Senior Guaranteed Notes 5.14% interest Principal repayments commence April 2013, due April

31 OUTLOOK Established opportunities in Juvenile and Recreational/Leisure Foresee organic growth through new international markets, new products Continued innovative juvenile product introductions through 2010 Increased IBD bike sales due to exciting new models Growth at Apparel Footwear Group Build on successes achieved in Home Furnishings No significant improvement expected in world economy but Dorel s products will protect Company to certain extent 31

32 WHY INVEST IN DOREL? A consistent record of successfulacquisitions A focus on Juvenile and Bikes where Dorel is a key player A strong performance in Home Furnishings A portfolio of known, premium brands Product development capabilities that drive growth A strategy of the right ihproducts and varied idprice points Dedicated quality control/customer service by solid Asian presence Established customer relationships Strong cash flow Payment of a quarterly dividendid d 32

33 33 QUESTION & ANSWER PERIOD

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