2013 AGM Presentation - Dorel Industries

ANNUAL MEETING MEETING OF
OF
SHAREHOLDERS
May 23, 2013

MARTIN SCHWARTZ
President & Chief Executive Officer
2

BUSINESS AGENDA
• Chairman and Secretary
• Scrutineers’ ’ Report
• Notice of Meeting and Minutes of Last Meeting
• Presentation of Financial Statements
• Election of Directors
• Appointment of Auditors
• PPresentation t ti to t Sh Shareholders h ld
• Results of ballot – Election of Directors
• Further business and termination of the Meeting
3

MARTIN SCHWARTZ
President & Chief Executive Officer
4

CANNONDALE GAZETTE
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STOCK CHART
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Dorel Industries Inc. Inc (TSX:DII.B) (TSX:DII B) - Volume Dorel Industries Inc. Inc (TSX:DII.B) (TSX:DII B) - Price
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FORWARD FORWARD‐LOOKING LOOKING STATEMENT
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 Inc. These statements are based on suppositions and uncertainties as well as on management's
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 include, without excluding other considerations considerations, increases in raw material costs costs, particularly for
key input factors such as particle board and resins; increases in ocean freight container costs; the
continued ability to develop product and support brand names; 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 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 Canadian 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‐lookingstatementsasa
prediction of actual results results.
Note: All figures are in US dollars.
7

SEGMENT REVENUES
2012
Juvenile $1 billion + 6.2%
Recreational/Leisure $928 $928.4 4 million +77% + 7.7%
Home Furnishings $521.5 million - 0.1%
8

GEOGRAPHICAL DISTRIBUTION OF
REVENUES
25%
6%
2012 2011
11%
58%
United States Canada Europe Other
26%
6%
7%
61%
9

FISCAL 2012 OVERVIEW
2012 2011
Total revenue $2.5 billion $2.4 billion
Net income $108 $108.6 6 million $104 $104.6 6 million
Diluted EPS $3.39 $3.21
10

Q1 2013 OVERVIEW
2013 2012
Total revenue $594.2 million $621.1 million
Net income $ 22 22.3 3 million $ 29 29.1 1 million
Diluted EPS $0.70 $0.90
11

Q1 2013 OVERVIEW
• Cold weather impacted bicycle sales
• Juvenile decrease due to economy, reduced consumer
confidence
• Home Furnishings benefitted from on‐line sales growth
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2013 PRODUCT SHOWCASE
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ADVANCE 70 AIR +
Title
Zone texte
14

QUINNY BRITTO
Title
Zone texte
15

SYNAPSE
Title
Zone texte
16

RAM 3500
Title
Zone texte
17

FIRE TRUCK FANTASY LOFT
Title
Zone texte
18

SEGMENT REVIEW ‐ JUVENILE
Title
• Better Zone texteearnings
at DJG USA and Dorel Europe
• Operating profits: 2012 up 36%, Q4 2012 rose 79.4%
• Continued focus on Latin America
• Foresee mid‐term mid term potential from emerging consumer
base
19

SEGMENT REVIEW ‐ JUVENILE
Title
Zone texte
20

SEGMENT REVIEW ‐ JUVENILE
Title
• Continued Zone texte progress Central and South America
• Chile –market‐oriented economy; fastest growing in
region
• Peru –“one of fastest growing, stable economies in
Lti Latin America” A i ” – IMF
21

INNOVATION ‐ JUVENILE
Title
Zone texte
Advance Advance 70 Air Air +
+
22

ADVANCE 70 AIR +
Title
Zone texte
23

INNOVATION ‐ JUVENILE
DOREL
Title
EUROPE BRITTO
Zone texte
24

INNOVATION ‐ JUVENILE
LOOLA Title
Zone texte
25

INNOVATION ‐ JUVENILE
BÉBÉ BÉBÉ Title CONFORT
Zone texte
26

Title
Zone texte
27

SEGMENT REVIEW –
RECREATIONAL/LEISURE
Title
Zone texte
• 2012 revenue $928 million + 7.7%
• 2012 operating i profit fi $72 million illi + 18 18.6% 6%
28

RECREATIONAL/LEISURE
CANNONDALE CANNONDALE Title PRO PRO CYCLING
CYCLING
Zone texte
29

RECREATIONAL/LEISURE
SYNAPSE
Title
Zone texte
30

RECREATIONAL/LEISURE
CANNONDALE CANNONDALE Title RETAIL RETAIL STORE
Zone texte
31

RECREATIONAL/LEISURE
SCHWINN
Title
Zone texte
32

INNOVATION – RECREATIONAL/LEISURE
Title
Zone texte
33

SEGMENT REVIEW REVIEW –
HOME HOME Title FURNISHINGS
FURNISHINGS
Zone texte
34

SEGMENT REVIEW REVIEW –
HOME HOME Title FURNISHINGS
FURNISHINGS
Zone texte
• Continuing to build on‐line presence
• NNew drop‐ship d hi vendor d program working ki well ll
35

OUTLOOK
• Q1 does not reflect balance of year
• Recreational/Leisure to exceed 2012 earnings
• Juvenile to see growth year‐over‐year
• Home Furnishings to benefit from solid retail
relationships
• Overall, 2013 to exceed 2012 performance
36

QUESTION QUESTION & & ANSWER ANSWER PERIOD
PERIOD
37

BUSINESS AGENDA
• Chairman and Secretary
• Scrutineers’ ’ Report
• Notice of Meeting and Minutes of Last Meeting
• Presentation of Financial Statements
• Election of Directors
• Appointment of Auditors
• PPresentation t ti to t Sh Shareholders h ld
• Results of ballot – Election of Directors
• Further business and termination of the Meeting
38

ANNUAL MEETING MEETING OF
OF
SHAREHOLDERS
May 23, 2013