Dorel Industries Inc. Class A · TSX:DII.A
Dorel Industries Inc. Class A — Investor Day (October 2012)
59 slides from Dorel Industries Inc. Class A's investor day presentation, Oct 9, 2012
Slide 1: Juvenile Investor Relations Day - October 9, 2012
. ADORE L JUVENILE INVESTOR RELATIONS DAY — OCTOBER 9, 2012
Slide 2: bertint «=infanti st
bertint «=infanti st
Slide 3: Agenda
Agenda • Jean-Claude Jacomin - Who am I? • Global Juvenile Business – Market overview – Dorel’s vision & strategic focus – Brand portfolio & product innovation – Expansion 3
Slide 4: Jean-Claude Jacomin
Jean-Claude Jacomin International Profile Career in Consumer Brands Innovation Track Record Leading Business Transformation 4
Slide 5: Broad International Experience
Broad International Experience 5
Slide 6: Career in Consumer Brands
Career in Consumer Brands 6 - Cosco Gh saferyS pereconions> ~ hagoco” hentint infanti. stillo,
Slide 7: Track Record Within Dorel Europe (DEU)
Track Record Within Dorel Europe (DEU) • Successful Innovative Product Launches • Leading Business Transformation • Business Model Innovation 7
Slide 8: DEU: Successful Innovative Products
DEU: Successful Innovative Products 8
Slide 9: DEU: Leading Business Transformation
DEU: Leading Business Transformation • Redefinition of the brand portfolio: global brand strategy and positioning - Shared platforms and product development for Maxi-Cosi and Bébé Confort • Worldwide distribution of DEU brands and products in more than 80 countries • Implementation of a European str
Slide 10: DEU: Business Model Innovation
DEU: Business Model Innovation April Team Sessions and workshops We accelerate now! July Key priorities defined; Services to consumer, June Brand connections with Change summit consumers, March Design of the Installation Final April E-commerce, services May New Service presentation Business to retai
Slide 11: We Accelerate Now!
We Accelerate Now! WAIL a A new business model for Dorel Europe Care for Precious Life 11 Emancosr Cosco GD, sarenS vertooniets fogece* berlin infanti stillo,
Slide 12: Dorel Juvenile: A Global Business in Transition
Dorel Juvenile A Global Business in Transition 12
Slide 13: Dorel Juvenile Global Leader
Dorel Juvenile Global Leader • Powerful international and regional brands • Successful product innovation driven by our best in class R&D facilities • Strong leadership in child safety and regulation • Exceptional supply chain management • Experiences and talented people • Defined growth strategy th
Slide 14: Juvenile Consolidated Financials
Juvenile Consolidated Financials (in Millions of US $) (1) (1) (1) Dorel 2007 2008 2009 2010 2011 Juvenile Sales $1,017 $1,074 $995 $1,030 $980 (2) $309 $310 $274 $281 $247 Gross Profit Operating $113 $127 $93 $96 $54 Profit (1) Financial information for 2007, 2008 and 2009 has been prepared in acco
Slide 15: Juvenile Market Overview
Juvenile Market Overview USA Europe* Canada Latin America 2.55 B US$ 5.3 B € 450 M US$ 320 M US$ 0% 17% HPP 17% H 0% PP 25% HPP 25% HPP 29% HPP 29% HPP 29% HPP 29% HPP 0% 52% HPP52% HPP 52% HPP 52% HPP 0% 0% 30% MPP 30% MPP 22% MPP 22% MPP 22% MPP 48%22% MPP MPP 48% M PP 0% 0% 26% MPP26% MPP 26% MPP
Slide 16: The World is Changing in Many Ways…
The World is Changing in Many Ways… Demographic Economic Urbanization; developments; developments; changing mobility Gen Y shift of power Increasing power Technology Sustainability; of consumer advancements brand reputation 16
Slide 17: Dorel Juvenile Vision
Dorel Juvenile Vision A Growing & Coherent Global Juvenile Business Delivering Enhanced Performance 17
Slide 18: Key Strategic Focus
Key Strategic Focus • Integrate Political and Economic changes in our Business Models • Develop innovative and competitive Product and Services • Implement effective online and offline campaign plans to build our brands worldwide • Reinforce consumer focus, including gen Y • Drive synergies across t
Slide 19: 4 Pillars to Our Growth Strategy
4 Pillars to Our Growth Strategy 19
Slide 20: Juvenile Operating Structure
Juvenile Operating Structure Dorel Distribution Canada Dorel Europe DJG USA Dorel China Dorel Colombia Dorel Chile Dorel Brazil IGC Australia 3400 people in 20 countries 20
Slide 21: Dorel Juvenile Organisation Structure
Dorel Juvenile Organisation Structure Jean-Claude Jacomin Sylvain Duval Nicolas Duran DOREL JUVENILE DOREL DOREL DOREL DOREL BRAZIL DOREL CHILE USA DISTRIBUTION EUROPE AUSTRALIA DOREL COLOMBIA CANADA Dave Taylor Mark Robbins Jean-Claude Dean Jennings Rafael Camarano Christian Sitnisky Jacomin (inter
Slide 22: Strong International Brands and Product Innovation
Strong International Brands and Product Innovation 22
Slide 23: Global Brand Presence
Global Brand Presence 69 • The primary stroller brand in many European countries countries and emerging markets 68 • Our multi specialist brand with strong footprint countries in South Europe 62 countries • Global market leader in car seats and child safety 56 • #1 in the USA in Home Safety and Infa
Slide 24: Strong Global Brand Portfolio
Strong Global Brand Portfolio Car Seats Strollers Large Safety Small Small Furniture Furniture Nursery HPP MPP OPP 24
Slide 25: Continuous Product Innovation Maintains our Leading Market Position
Continuous Product Innovation Maintains our Leading Market Position 25
Slide 26: Global Leadership in Child Safety and Regulation
Global Leadership in Child Safety and Regulation •State of the art in-house Dorel Technical Centers in the US and Europe for Child Safety •Regulation and compliance is not a global standard. Dorel Juvenile has local expertise across the globe •Strong relationship with international research centers:
Slide 27: The European Future of Child Safety
The European Future of Child Safety 27
Slide 28: DEU Introduces 2 Way Family
DEU Introduces 2 Way Family 28
Slide 29: Prezi – USA Superior Side Impact Performance
Prezi – USA Superior Side Impact Performance • The Maxi-Cosi Prezi Infant Car Seat features Superior Side Impact Performance: • Featuring New G-Cell HX™ & Air Protect® • Launch Campaign Late August • Online Teaser and Reveal • Online and In-Store “It only does Everything” • Targeted Awareness • Targ
Slide 30: 2013 Canadian CRS Development
2013 Canadian CRS Development “ Government of Canada Introduces Toughest-Ever Testing Standards for Child Car Seats” Before After 30
Slide 31: BoostApak On the Go Convenience
BoostApak On the Go Convenience • Children can carry their own booster car seat along • Collapsible armrests allow seat to convert from Belt- Positioning-Booster to backpack with spacious capacity • Convenient and safe traveling! 31
Slide 32: Award Winning Quinny Yezz
Award Winning Quinny Yezz •Compact Size and Ultra light •Designed using the latest technology and lightest materials •Strong, durable and easy to use and is ideal for tackling every challenge in the city 32
Slide 33: Natural Comfort Launched in Europe
Natural Comfort Launched in Europe The 1st eco-designed baby bottle accepted by baby whatever his feeding habit - 30% impact on the environment* - 20% less plastic* Wide neck bottle: easy to fill, easy to clean The baby bottle that answers all parents’ expectations and babies’ needs * Life Cycle ass
Slide 34: Global Life Cycle Management
Global Life Cycle Management Keep improving Quinny Zapp Xtra and continue generating revenues Zapp Xtra 2.0 Zapp Xtra 3.0 Zapp Zapp Xtra Folding seat Redesign 2004 Cologne 2010 February 2013 Cologne 2014 34
Slide 35: Brand Communication to Strengthen and Support our Global Brands
Brand Communication to Strengthen and Support our Global Brands 35
Slide 36: USA Britto Campaign
USA Britto Campaign • Quinny and Maxi-Cosi partner with Romero Britto, an artist with work that's been exhibited in galleries and museums in over 100 countries. • Multi-Tiered Launch Campaign in Miami, FL • Initial Results: – Broadcast segments with CNN en Español, NBC Miami and Telemundo – Feature-
Slide 37: New Global Quinny Website
New Global Quinny Website •Matches brand values - gutsy, dynamic and conscious •Increase awareness and conversion •Introduction: International - Cologne, Local – October ‘12 37
Slide 38: Quinny: Pan-European viral
Quinny: Pan-European viral • Quinny Yezz is introduced in Europe with a big Facebook campaign • > 19,000 videos made, 180,000 times viewed • > 470 mio impressions of the Facebook ad And… a call from Facebook head office about the extraordinary conversion rate on the banners! 38
Slide 39: Air Protect Brand Awareness Campaign
Air Protect Brand Awareness Campaign 39
Slide 40: Channel Expansion and Market Development
Channel Expansion and Market Development 40
Slide 41: Dorel Juvenile Geographic Sales
Dorel Juvenile Geographic Sales 2010 2011 4% 7% 4% 2% 7% 3%0 43% 3% 45% 3% 41% 39% 2012 YTD 4% 4% 6% 39% 9% Europe USA Brazil/Chile 37% Canada Australia Other 41
Slide 42: Mature Markets North America and Europe
Mature Markets North America and Europe • Extensive brand portfolio • Differentiation in Channels: – US and Canada sales primarily to Mass Merchants – Europe sales primarily to specialized stores • Seeking more distribution opportunities for growth, among which e-commerce • Dorel is number 1 in Chil
Slide 43: DJG USA Turnaround Plan
DJG USA Turnaround Plan 43 Emancosr Cosco safety vevéconion ragga” bertinr infanti. —stillo,
Slide 44: DJG USA Current Situation
DJG USA Current Situation • After achieving record profitability in 2009, DJG has seen a downward trend in financial performance • Primary Factors: – R&D performance below expectations – Escalating costs with inability to realize meaningful price increases – Decline in birth rates – Challenging econ
Slide 45: DJG USA Current Objective
DJG USA Current Objective • Improve overall profitability • Achieve higher return on R&D investments • Increase our agility/speed of execution • Re-align the organizational structure and the company culture in line with the new business needs 45
Slide 46: DJG USA - Strategic themes
DJG USA - Strategic themes 1) Product innovation and brand focus 2) Revenue growth and customer profitability 3) Cost reduction 4) Reorganization and people alignment 46
Slide 47: DJG USA Update
DJG USA Update 47 Cosco oh) satetyS veveconions cago" hertinr infanti. stillo,
Slide 48: Dorel Chile
Dorel Chile • Star performer in 2012 • Great local partnership with Silfa • Market leader in product development & sourcing • Main specialized retailer: 52 Baby Infanti Stores • Expansion in E-Commerce 48
Slide 49: Dorel Brazil
Dorel Brazil • Only company in the market with distribution in the OPP/MPP/HPP arena, with a complete juvenile product portfolio • International synergies with sister divisions • Local manufacturing and warehousing based in Campos dos Goytacazes (RJ) 49
Slide 50: Dorel Australia
Dorel Australia • One of the largest Juvenile companies in Australia and New Zealand • Over 35 years in the Australian and New Zealand market, across mass retail groups and Independent baby stores. • Juvenile brand portfolio: Mother’s Choice, Maxi-Cosi, Safety 1st, Bertini, Quinny and Go Safe • Stro
Slide 51: Improved Shop in Shop Experience Across the Globe
Improved Shop in Shop Experience Canada Across the Globe China USA French Award winning approach! 51
Slide 52: Successful Introduction in Korea
Successful Introduction in Korea “Travel First Class” with Quinny 52
Slide 53: Strategic Acquisitions
Strategic Acquisitions 53
Slide 54: Why Dorel is Driving Investment Expansion in Latin America?
Why Dorel is Driving Investment Expansion in Latin America? • Fastest growing & most dynamic economic region in the world • New found stability & maturity to weather external economic turmoil • Extensive trade agreements to support foreign direct investment • Growing middle class • Growing birth rat
Slide 55: Our Strategy
Our Strategy • Build on new & existing partnerships to drive further expansion • Generate scale, drive efficiencies and accelerate profitability through further investments or acquisitions in existing markets • Drive business development through the expansion and implementation of retail capabilitie
Slide 56: Dorel Continues Push into Latin America
Dorel Continues Push into Latin America Sept 25 2012 • Dorel increased its presence in the Latin American market by acquiring a 70% interest in two juvenile product businesses that sell to customers in Colombia and Central America • Acquisition will expand Dorel’s ownership of the highly popular Inf
Slide 57: Dorel Polska
Dorel Polska • Dorel acquisition of Poltrade has proven to strengthen Dorel’s market position in EEC (European Economic Community) region • Organizational integration into Dorel Europe • Leading position in Polish car seat market 57
Slide 58: Power of Dorel Juvenile - Conclusion
Power of Dorel Juvenile - Conclusion • Leading position in the Juvenile industry • Strong international brands with growth potential • Solid internal product innovation competence • Moving towards a global coherent organization • Continuous focus on new markets & channels • Promising foundation in L
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