DOREL INVESTOR DAYDOREL INVESTOR DAYJune 2, 2010

Hani BasileHani Basile

• Dorel Industries Inc 2003 – Present• Dorel Industries Inc.  2003 – Present

– 2003 – Sept.2004; VP Corporate Management

– Oct. 2004 – Nov. 2006; CEO Dorel Distribution Canada

– Nov. 2006 – April 2008; Corporate VP Juvenile & Recreation

– May 2008 – Jan 2009; Corporate COO Juvenile GroupMay 2008  Jan. 2009; Corporate COO, Juvenile Group

– Feb. 2009 – Present; Group President, Juvenile Group

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Global Leadership Across CategoriesGlobal Leadership Across Categories

l l h l l h l ll•Dorel Juvenile is the largest juvenile company with sales in all categories except for feeding, toys and diapers

••Dorel Juvenile 2009 PerformanceDorel Juvenile 2009 Performance•$1 Billion in Sales•$1 Billion in Sales•$275 Million in Gross Profit•$92.5 Million in Earnings from Operations

••Dorel Juvenile is comprised of the following 4 categories:Dorel Juvenile is comprised of the following 4 categories:

Home SafetyTravel Safety

Car Seats Large FurnitureStrollersWalkers / SACs

Small FurnitureSafety

Bath SeatsB tht b

Booster Car SeatsC tibl C Travel Safety

Infant HealthNursery MonitorsFeedingSoft Infant

Walkers / SACsHigh ChairsPlay YardsTravel SystemsBassinets

BathtubsBedrailsFeeding Booster SeatsP i

Convertible Car         SeatsInfant Car Seats

Soft Infant Carriers

BassinetsSwings

Potties Bath AccessoriesBouncersDiaper PailsGGates

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Dorel Juvenile’s Global Leading EdgeDorel Juvenile’s Global Leading Edge

• Strong brands

–– QuinnyQuinny MaxiMaxi CosiCosi & Safety 1& Safety 1ststQuinnyQuinny, Maxi , Maxi CosiCosi & Safety 1& Safety 1

• Factories

• Understanding the regulatory environment• Understanding the regulatory environment

• Product Differentiation

R l i hi i h il• Relationship with our retail accounts

• Exceptional relationships with Domestic and International suppliers

• Experience & success with Distribution platform in emerging markets

• Dorel China

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All Figures in Million’s of US $

Dorel Juvenile

2005 2006 2007 2008 2009

Sales $847 $889 $1,017 $1,074 $995

Gross Profit $249 $264 $309 $310 $274

Earnings 

Juvenile Consolidated Juvenile Consolidated ll

FromOperations

$99 $92 $113 $127 $93

$ $ $ $ $FinancialsFinancialsNote: 2008 and 2009 numbers have been reclassified to reflect the way in which the divisions Note: 2008 and 2009 numbers have been reclassified to reflect the way in which the divisions 

EBITDA $131 $122 $145 $160 $129

f f yf f yresults are reported internally effective the first day of 2009results are reported internally effective the first day of 2009

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Dorel EuropeDorel Europe

•• A strong presence in the Specialized trade which A strong presence in the Specialized trade which g p pg p prepresents 66% of the Juvenile marketrepresents 66% of the Juvenile market

•• Major brand portfolio:Major brand portfolio:Maxi Maxi CosiCosiQuinnyQuinnyBebeBebe ConfortConfortSafety 1Safety 1stst

•• Short term performance will be affected by currency Short term performance will be affected by currency volatilityvolatilityvolatility. volatility. 

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Dorel Europe Brand PortfolioDorel Europe Brand Portfolio

Brand Positioning Price Range

QuinnyQuinny: : Walk your Way

HoppopHoppop: : Where designer and clever baby products make you 

wish you were little again. 

HPP / HPP+

CarseatsCarseats & Strollers/& Strollers/

Maxi Maxi CosiCosi & & BebeBebe ConfortConfort: : Help parents and children have an enjoyable time together.

HPP / MPP+CarseatsCarseats & Strollers/     & Strollers/     

Equipment/ Small Equipment/ Small NuseryNuseryan enjoyable time together.

“Your Child C Fi t” MPP / OPP+

CarseatsCarseats /S/Strollers/            trollers/            Equipment/ Home SafetyEquipment/ Home Safety

Comes First” MPP / OPP+

OPP / Own LabelOPP / Own Label Solid Value OPPOPP / Own LabelOPP / Own Label OPP 

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DOREL UKDOREL NETHERLANDS

DOREL UK

DOREL BELGIUM DOREL GERMANY

DOREL FRANCEDOREL JUVENILE SWITZERLAND

DOREL EUROPE HQ

DOREL FRANCE

DOREL PORTUGAL

DOREL HISPANIADOREL ITALIA

DOREL HISPANIA

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European Juvenile Products IndustryEuropean Juvenile Products Industry

•• €€4.6 Billion Juvenile Market 4.6 Billion Juvenile Market 

•• Population  Population  ‐‐ 499 million 499 million 

•• 5.4 million births annually5.4 million births annually

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European Juvenile ChannelsEuropean Juvenile Channels4.6 B 4.6 B €€

TTop 8 op 8 EuropeanEuropean Countries*Countries*2008 2008 weightweight

5 B 5 B €€TTop 8 op 8 EuropeanCountriesEuropeanCountries**EstimatedEstimated 2012 2012 weightweight

Specialized Specialized StSt

gg

66 %~ 60 %

gg

StoresStores 66 %

MM

InternetInternet 6 % ~ 10 %

Mass Mass MarketMarket 28 % ~ 30 %

100 % 100 %

* France, Belgium, Netherlands, Spain, Portugal, Italy, UK, Germany

100 % 100 %

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European Juvenile Market OverviewEuropean Juvenile Market Overview

Top 8 Top 8 EuropeanEuropean Countries*Countries*

MarketMarket: 4.6: 4.6 BB €€

60 %60 % HPPHPP “High Price Point”

14 % MPP14 % MPP“Mid Price Point”

26 % OPP26 % OPP “Opening Price Point”

* France, United Kingdom, Spain, Germany, Netherlands, Portugal, Italy, Belgium

Sources : Interconnection data 2008 & extrapolation of Nielsen Panel for small nursery

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HPP : Strengthen Leadership via InnovationHPP : Strengthen Leadership via Innovation

MaxiMaxi‐‐CosiCosi / / BébéBébé ConfortConfort ‐‐ Leverage Market Penetration Leverage Market Penetration 

StrengthenStrengthen keykey carseatcarseat categorycategory throughthrough productproduct innovation & innovation & differentiationdifferentiation

Opal  ‐ Launch June 2010Gr 0+/1 carseat 

(forward /rearward facing)

FamilyFix – Launched in Q4’09

(forward /rearward facing)

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HPP : HPP : StrengthenStrengthen Leadership via InnovationLeadership via InnovationHPP : HPP : StrengthenStrengthen Leadership via InnovationLeadership via Innovation

– Resume stroller growth

»» ELEA ELEA –– LaunchLaunch Q3 2010Q3 2010

– Develop equipment : enter category for Maxi Cosi»» KEYOKEYO –– LaunchLaunch Q4 2010 Q4 2010 

fromfrom birthbirth to 3 to 3 yearsyears oldold;  ;  alwaysalways atat the right the right heightheight

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HPP : HPP : StrengthenStrengthen Leadership via InnovationLeadership via InnovationHPP : HPP : StrengthenStrengthen Leadership via InnovationLeadership via InnovationQ iQ i R j tR j t P d t P tf liP d t P tf liQuinnyQuinny: : RejuvenatesRejuvenates Product Portfolio Product Portfolio 

Senzz launch

Launched in Q1 2010

Zapp‐xtraL h S 2010Launch : Sept. 2010

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MPP/ OPP: MPP/ OPP: GrowGrow position position acrossacross EuropeEuropeMPP/ OPP: MPP/ OPP: GrowGrow position position acrossacross EuropeEurope

SafetySafety 1st : 1st : AccelerateAccelerate growthgrowth via via widerwider productproduct portfolio and portfolio and exclusivityexclusivity

StrollersC ’ it

Car seatP i fiCompa’city

LaunchLaunch DecDec. 2010 . 2010 PrimeofixLaunchLaunch DecDec. 2010. 2010

Equipment: 2 in 1 Tower highchair

From 6 months … … To toddler

2 in 1 Tower highchairLaunchLaunch DecDec. 2010. 2010

OPP & Own Label:OPP & Own Label: New range developed to eNew range developed to expand distributionxpand distribution

HighchairBooster

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HoppopHoppop & Baby Art & Baby Art IntegrationIntegration

Successful integration within Europe. Future growth to be accelerated via Successful integration within Europe. Future growth to be accelerated via 

new products and distribution gainsnew products and distribution gains

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Common Common PressPress AdvertisingAdvertising BBC BBC ‐‐MCMC

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QuinnyQuinny SENZZ SENZZ –– InIn‐‐Store DisplaysStore Displays

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SafetySafety 1st 1st WebsiteWebsite & Online & Online ActivitiesActivities

kk t lt l tt b ildb ild && tt th b dth b dkeykey toolstools to to buildbuild awarenessawareness & & promotepromote the brandthe brand

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U.S. Juvenile Products IndustryU.S. Juvenile Products Industry

•• $2.85 Billion Juvenile Market $2.85 Billion Juvenile Market $$

•• 2009 Population = 307 million2009 Population = 307 million

•• 4.25 million births annually4.25 million births annually

•• Historical average annual Juvenile Industry growth rate 3%Historical average annual Juvenile Industry growth rate 3%‐‐4%4%

•• However in 2009, Juvenile Industry saw a 7% decreaseHowever in 2009, Juvenile Industry saw a 7% decrease, y, y

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US Positioning Price Range

HPPClassic All America Design HPP

byby Innovative Design with Safety in Mind

MPP+

“Your Child  MPPComes First” MPP

Magical International MPPEntertainment

MPP

Solid ValueSmart Design OPP / OPP+g

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International Positioning Price Range

Walk Your Way SPP

The Original European Brand Synonymous with 

Safety, Quality and StylePPP

Where beautifully ydesigned, comfortable products make you wish you were little again

HPP

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DJG USA Internal StructureDJG USA Internal Structure

3 Primary Operating Locations

Ontario, CAWest Coast Warehouse

Columbus, INCorporate Office, Manufacturing Facility and Distribution Center

Foxboro, MADorel Design and Development Center

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Profit Improvement Plan UpdateProfit Improvement Plan Update

2009 Strategy:2009 Strategy:gygySales RetrenchmentSales Retrenchment

Concentrate on more profitable itemsConcentrate on more profitable items

Going forward; establish profit targets by product categoryGoing forward; establish profit targets by product category

What happened in 2009:What happened in 2009:Tempered growth of top lineTempered growth of top line

Substantial profit improvementSubstantial profit improvement

Where we are going to in 2010 and beyond:Where we are going to in 2010 and beyond:g g yg g yGrow top lineGrow top line

Sustain and improve gross marginSustain and improve gross margin

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Child Restraint Systems (CRS)Child Restraint Systems (CRS)

Mission StatementMission StatementMission StatementMission Statement

Dorel CRS is committed to providing real safety innovation for every childreal safety innovation for every child 

occupant and every family.  

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A revolutionary system that shields the occupant’s A revolutionary system that shields the occupant’s h d d d f h h hh d d d f h h hhead and reduces impact forces through the precise head and reduces impact forces through the precise release of air. release of air. 

• 30% reduction in neck forces

• 50% reduction in neck rotation

• 30% reduction in peak forces to the head

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C.R.S Development PlanC.R.S Development PlanQ1 Q1 20102010

Q2 Q2 20102010

Q3 Q3 20102010

Q4Q420102010

Q1Q120112011

Q2Q220112011

Q3 Q3 20092009 20102010 20102010 20102010 20102010

Complete Air

20112011 20112011

Complete Air 65

20092009

Boost Air

onBoard35 Air 

onSide Air

Rumi Air Tentative Carseat

launch

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RumiRumi AirAirConsumer Insight:  Consumer Insight:  The next evolution in car seat development and the The next evolution in car seat development and the superior performance of <AIR> protection.superior performance of <AIR> protection.

►<Air> Protect Technology

►Designed to comfortably fit your growing Toddler 

►Use for children 22lbs‐65lbs with the harness 34‐52”

► Converts to a Belt‐Positioning Booster 40‐100lbs, 43‐57”

►Focus on Ease of Use

►Integrated cupholder and snack tray with a comfy overmold for your child’s convenience

►Launch Q3 2010

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New CRS Competency Center

Grand Opening:Sept. 2010

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Large Furniture Large Furniture Safety 1Safety 1stst Pegasus CollectionPegasus CollectionSafety 1Safety 1 Pegasus CollectionPegasus Collection

Safety 1Safety 1stst ClicClic! Infant Car Seat Carrier! Infant Car Seat Carrier

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International BrandsInternational BrandsNew New 

HoppopHoppop Line  (26 SKUs) Line  (26 SKUs) ‐‐Now in stores Now in stores 

NN Q iQ i SS ddNew New QuinnyQuinny SenzzSenzz and and MaxiMaxi‐‐CosiCosi Mila Stroller Mila Stroller launch launch ‐‐May, 2010May, 2010

2011 Maxi2011 Maxi‐‐CosiCosi and and QuinnyQuinny New Fashion New Fashion 

shipping now shipping now 

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Small FurnitureSmall Furniture

BedrailsBedrailsFeeding Feeding BoostersBoosters

Potties   Potties    BathtubsBathtubs

Step Step StoolsStools

Safety Safety GatesGates

BouncersBouncers Bath Bath AccessoriesAccessories

Diaper Diaper PailsPailsStoolsStoolsGatesGates AccessoriesAccessories Pails  Pails  

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Health & SafetyHealth & Safety

M iM iH S fH S f T l S fT l S f MonitorsMonitorsHome SafetyHome Safety Travel SafetyTravel Safety

Grooming & HealthGrooming & Health ThermometersThermometers

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Web Site Web Site ‐‐Safety 1Safety 1stst TVTVhttp://www.safety1st.com/usa/eng/safety1sttv

•• Safety 1Safety 1stst TV Channel launched April 19TV Channel launched April 19thth!!•• 5050 WebisodesWebisodes featuring Real Moms Asking Realfeaturing Real Moms Asking Real50 50 WebisodesWebisodes featuring Real Moms Asking Real featuring Real Moms Asking Real Questions and our Real Experts Answer Them!Questions and our Real Experts Answer Them!•• Social Networking Sharing Social Networking Sharing •• Viral PickupViral Pickup•• Multimedia News ReleaseMultimedia News ReleaseMultimedia News ReleaseMultimedia News Release•• Promoted on YouTubePromoted on YouTube•• Promoted by PR Newswire on 70 Syndicated SitesPromoted by PR Newswire on 70 Syndicated Sites•• Promoted on 6 Syndicated Partner ChannelsPromoted on 6 Syndicated Partner Channels•• Mobile Platform for Viewing onMobile Platform for Viewing on iPhoneiPhone,,Mobile Platform for Viewing on Mobile Platform for Viewing on iPhoneiPhone, , Blackberry and DroidBlackberry and Droid•• Reuters TV in Times SquareReuters TV in Times Square•• Las Vegas Strip TVLas Vegas Strip TV

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AdvertisingAdvertising

2010 Safety 12010 Safety 1stst brand campaignbrand campaignPrint and OnlinePrint and Online

K MK M 25 f i S f 125 f i S f 1ststKey Message Key Message –– over 25 years of putting Safety 1over 25 years of putting Safety 1stst ……

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DDC OverviewDDC Overview

•Dorel Distribution Canada (DDC) is a complete sales and distribution model servicing the Canadian retail industrydistribution model servicing the Canadian retail industry. 

• DDC represents all 3 Dorel segments integrating the brands, p g g g ,technology & services of our sister divisions into the Canadian environment. 

• DDC also facilitates product development and sourcing unique to their specific market but within the scope of  capabilities.

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Canada Juvenile Products IndustryCanada Juvenile Products Industry

• $425 million Juvenile market$

• 2009 Population = 33.9 million

• 377,000 births reported in 2009

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DDC ‐ Structure

The The Montreal Montreal

Office andOffice andOffice and Office and WarehouseWarehouse

The Toronto Office is in The Toronto Office is in close proximity to all close proximity to all

Major RetailersMajor RetailersMajor Retailers. Major Retailers.

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Canadian SpecificCanadian Specific

A ll ti d lA ll ti d lA new collection and looA new collection and loo

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Canadian SpecificCanadian SpecificSmall Small

furniturefurniturefurniture furniture

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Canadian SpecificCanadian Specific

Diaper Diaper BB

Strollers Strollers BagsBags

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Web ActivityWeb Activity

Building our Canadian sites .ca

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Media pick upMedia pick up

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In Good Care In Good Care –– IGC / Dorel AustraliaIGC / Dorel Australia

•• Dorel’s first joint ventureDorel’s first joint venturef jf j

•• In addition to the brands previously identified, IGC owns and operates In addition to the brands previously identified, IGC owns and operates the following Australian principal brands:the following Australian principal brands:

Mother’s Choice– Mother’s Choice– Bertini

•• Australia regulations require Australia regulations require carseatscarseats to meet side impact standardsto meet side impact standardsg qg q pp– Currently, Australia is the only territory requiring such a standard– This limits our ability to introduce new car seat platforms– However, we are increasing our carseat offerings by adapting some 

existing relevant Dorel platformsexisting relevant Dorel platforms

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Australia Juvenile Products IndustryAustralia Juvenile Products Industry

A li ’ bi h i 2009 264 364A li ’ bi h i 2009 264 364•• Australia’s birth rate in 2009:  264,364Australia’s birth rate in 2009:  264,364

•• 2009 population: 21 million2009 population: 21 million

•• Significant changes in 2009 & 2010 which may effect the birthrate:Significant changes in 2009 & 2010 which may effect the birthrate:

Changes in Australian Government Baby Bonus Scheme 

Rise in Interest Rate

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Brand Categories Brand Categories 

BRAND PRODUCT IMAGESCATEGORY

• Hardgoods• Softgoods• Wood

• Hardgoods• Softgoods• Wood• Auto

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Brand Categories Brand Categories 

BRAND PRODUCTCATEGORY

IMAGES

• Hardgoods

• Hardgoods• Auto

• Safety d d• Hardgoods

• Auto

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Product Launches Product Launches –– 2010 2010 

Launched in Q1 2010Launched in Q1 2010

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Product Development Product Development –– 2010 Outlook2010 Outlook

“Air” “Air” –– Forward Facing Car Seat Forward Facing Car Seat Launch Date: Q3 2010Launch Date: Q3 2010Launch Date: Q3, 2010Launch Date: Q3, 2010

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Product Development Product Development –– 2010 Recreation  2010 Recreation  

Swing SetsSwing Sets• Increase market penetration within• Increase market penetration within 

existing channels via additional SKU’s at competitors expense

• New Trading Customers  established

• Expansion of New Zealand businessExpansion of New Zealand business

• Additional sales through related outdoor play equipment

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Product Development Product Development –– 2010 Recreation2010 Recreation

Bicycle CategoryBicycle Category

• Expansion of accessory range in Mass p y gMerchant Retailers

• Success in grocery channel

• New Zealand market ‐ First year sales in bicycle category

• Introduction of new category, bike helmets

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Dorel Brazil Dorel Brazil 

•New sales office  & showroom in Sao Paulo

•Manufacturing & warehousing is based in Campos dos Goytacazes (RJ)•Manufacturing & warehousing is based in Campos dos Goytacazes (RJ)

• Recent Warehouse expansion 

• Government has launched a 1 month carseat campaign to promoteGovernment has launched a 1 month, carseat campaign to promote 

and enforce the use of carseats for children between 0 to 7 years of age

On June 12, 2010 fines will be distributed to nonOn June 12, 2010 fines will be distributed to non‐‐compliant driverscompliant drivers

•Dorel Brazil’s Brand Portfolio includes Quinny, Maxi Cosi, Bebe Confort, Safety 

1st, Cosco and local brand, Stillo

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Brazilian Quick FactsBrazilian Quick Facts

Population in 2009: 194 million (world’s fifth largest)

Land: 8.5 million km2 (world’s fifth largest)

52% of population is middle class (2008)  p p ( )

2009 # of births: 3.6 million

Annual Population Growth Rate (2009): 0,98%Annual Population Growth Rate (2009):  0,98%

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Opportunities / OutlookOpportunities / Outlook

– Shore up weaknesses we may have in certain territories –Shore up weaknesses we may have in certain territories relevant in Europe

Seek opportunities which compliment our product lines– Seek opportunities which compliment our product lines (innovations/brands) where we currently do not occupy a leadership position

• Allows us to enter new sales channels where we may not have a strong foothold

• Defensive in nature

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3 Pillars to our Growth Strategy

• Strong International Brands

• Continuous Product Innovation

• Expansion into new international markets as• Expansion into new international markets as we have done in Australia and Brazil

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Thank You