2010 Annual Report - Dorel Industries

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JuvenileSegmentAs the global leader in children’s car seats,Dorel recognizes the inherent responsibilityto raise the bar in cutting edge innovationwith the highest standards of qualityand safety.Conservative consumer spending was the barometer thatdefined 2010. As the economy continued to recover from therecession, the Dorel Juvenile Segment saw optimistic resultsattributable to quality products at varied price points. Havingstrategically invested for the future, our top priority continuesto be product innovation and safety.EuropeAfter a challenging 2009, Dorel Europe was able to overcomea difficult economic environment as well as the volatility of theEuro exchange. Despite these hurdles, Dorel Europe was onceagain successful in staying ahead of the competition with itsestablished brands, continuous investments in product developmentand innovation.In addition to Dorel Europe’s ongoing focus on high pricepoint products, they have enlarged their mid price point offeringby increasing their Safety 1st product representation. Thishas proven to be a winning strategy. As a result, Dorel Europeis now able to expand its appeal to a wider customer base byoffering product at all price points.Maxi-Cosi and Bebé Confort, both signature brands and leadersin children’s car seats and strollers, have achieved materialgrowth due to their innovation and rapid global expansion.Dorel Europe’s ability to create exciting new products was underlinedby their distinctive designs featured during the 2010Cologne, Germany trade show, one of the largest in the world.Product introductions such as the Elea stroller, Opal car seatand Zapp Xtra were enthusiastically received by customers andthe trade media.Dorel Europe’s commitment to customer excellence was againmanifested with further investments in the division’s infrastructure,specifically at its Portugal and UK distribution centres.North AmericaAs the economy continued to rebound from the recession,2010 proved to be a challenging year for Dorel Juvenile GroupUSA (DJG USA). Consumers remained prudent with their10Dorel Industries Inc.
purchases and as the year wore on, retailers reacted by reducinginventories.Substantial resources have been devoted to product developmentat DJG USA. As the global leader in children’s car seats,Dorel recognizes the inherent responsibility to raise the bar incutting edge innovation with the highest standards of qualityand safety. In September 2010, DJG USA opened the DorelTechnical Centre for Child Safety in Columbus, Indiana.The Centre features three crash test-sleds, increasing ourspeed-to-market by developing the most advanced car seatdesigns in the world. Dorel has centralized all of its NorthAmerican R&D and product development in child restraintsystems into this multi-million dollar facility.As a further indication of the innovation and commitmentDJG USA is bringing to the market, it developed Flex-Tech, a next generation carseat crash energy managementstructure, which is incorporated in the new Rumi and EssentialAir combination booster carseats. In addition, DJG USAhas the most complete line of infant carseat carriers, designedto include our “tiny fit” system to properly fit prematureinfants weighing as low as 4 pounds.Dorel Distribution Canada (DDC) has successfully differentiateditself through its Canadian-specific initiatives, solidifyingits leadership position within the juvenile market. This isevident by DDC’s improved year-over-year performance.The new Canadian Motor Vehicle Restraint Systems andBooster Seats Safety Regulations will come into effect January1, 2012; noteworthy changes being specific dynamicperformance testing criteria, such as testing with a lap andshoulder belt. DDC has undertaken the necessary measuresto ensure they meet and comply with this new regulation.International PlatformsMarket conditions in Australia also prompted the country’sjuvenile retailers to increase promotional activity and reducereplenishment orders. This affected Dorel Australia’s overallperformance, however its car seat and booster seat salesremained strong.Dorel Brazil has become an established profit generator,posting notable sales and earnings gains in 2010 as new locallegislation drove car seat sales. Supported by Dorel’s stronginternational brands, infrastructure and continuous productinnovation, we expect their operations will continue to grow.Juvenile Segment’s Growth PathIn addition to the initiatives outlined above, we are takingseveral other steps to augment our presence and reward Dorelshareholders. Worldwide market penetration is a key objectiveto extending our reach into other emerging territories.Our ventures in Australia and Brazil have proven to besuccessful.Dorel’s juvenile brands are recognized throughout much ofthe world. Our intention is to maximize this strength byensuring we have the safest and highest quality products andmaking certain that consumers have our products top ofmind. With the excellence of our juvenile teams across theglobe, I am confident we will continue to build on theleading market positions we have established.Hani BasileGroup President & CEOJuvenile SegmentAnnual Report 2010 11
Page 3 and 4: 2Investing for the FutureDorel is r
Page 5 and 6: Recreational / LeisureHome Furnishi
Page 7 and 8: Financial Highlights from 2006 to 2
Page 9 and 10: products with safety and quality at
Page 11: JuvenileSegmentInvesting for the Fu
Page 15 and 16: Recreational / LeisureSegmentInvest
Page 17 and 18: In September, we were thrilled to a
Page 19 and 20: 2010 was marked by a significant va
Page 21 and 22: Dorel in the CommunityEmployees of
Page 23 and 24: Board of DirectorsMartin SchwartzPr
Page 25 and 26: 172 Friendship Village Road,Bedford
Page 27 and 28: Management’s Discussion and Analy
Page 29 and 30: Management’s Discussion and Analy
Page 31 and 32: In Australia, Dorel is the majority
Page 33 and 34: Operating ResultsNote: all tabular
Page 35 and 36: As referred to above, to protect it
Page 37 and 38: The Juvenile segment revenue decrea
Page 39 and 40: Gross margins declined by 40 basis
Page 41 and 42: Balance SheetSelected Balance Sheet
Page 43 and 44: In Recreational / Leisure a new fac
Page 45 and 46: As such, derivative financial instr
Page 47 and 48: Phase 3: Solution Design and Develo
Page 49 and 50: StandardsIAS 12:Income TaxesCompari
Page 51 and 52: StandardsIAS 21:The Effect ofChange
Page 53 and 54: StandardsIAS 39:FinancialInstrument
Page 55 and 56: StandardsIFRS 3:BusinessCombination
Page 57 and 58: In the Juvenile segment, the Compan
Page 59 and 60: Liquidity and Access to Capital Res
Page 61 and 62: Factors that could cause actual res
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Consolidated Balance SheetsAs at De
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Consolidated Statements of IncomeFo
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Consolidated Statements of Changes
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Notes to the Consolidated Financial
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www.dorel.com1255 Greene Avenue, su
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2010 Annual Report - Dorel Industries

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