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a global consumer products company - Dorel Industries

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Juvenile Recreational/Leisure Home<br />

Furnishings<br />

a <strong>global</strong> <strong>consumer</strong> <strong>products</strong> <strong>company</strong><br />

www.dorel.com


<strong>Dorel</strong><br />

anOverview<br />

Three distinct segments<br />

<strong>Dorel</strong> <strong>Industries</strong> Inc. (TSX: DII.MV, DII.SV; NASDAQ: DIIB) is<br />

a <strong>global</strong> <strong>consumer</strong> <strong>products</strong> <strong>company</strong> engaged in the design,<br />

manufacture or sourcing, marketing and distribution of a<br />

diverse portfolio of known brands. Its range of quality <strong>products</strong> is<br />

marketed through three business segments:<br />

Juvenile<br />

Home Furnishings<br />

and Recreational/Leisure<br />

One common commitment<br />

<strong>Dorel</strong>’s strength lies in the diversity and quality of its brands. <strong>Dorel</strong> strives<br />

to maximize cross-selling, cross-marketing, procurement and other<br />

complementary business opportunities. Separate management teams<br />

operate each business segment.<br />

The Company achieves synergies through its <strong>Dorel</strong> China office, which<br />

provides support to all <strong>Dorel</strong> segments, including quality assurance,<br />

supply certification, sourcing of materials and freight forwarding.<br />

A worldwide presence<br />

<strong>Dorel</strong>’s long-established distribution channels range from the<br />

world’s largest mass merchants to local specialty boutiques.<br />

These are serviced through facilities and offices located<br />

in North America, Europe and Asia. <strong>Dorel</strong> employs<br />

approximately 5,000 people and its <strong>products</strong> are sold<br />

in more than 60 countries around the world.<br />

2004 sales were US$1.7 billion.<br />

2


Product<br />

Segments<br />

Juvenile<br />

<strong>Dorel</strong> is the world’s largest distributor of juvenile furniture <strong>products</strong>. Widely<br />

accepted by <strong>consumer</strong>s, the <strong>products</strong> are recognized for their quality, safety and<br />

innovative designs, which incorporate fashion forward, state-of-the-art features.<br />

<strong>Dorel</strong>’s disciplined approach to product development has led to an uninterrupted<br />

flow of exciting innovations, driven by the <strong>Dorel</strong> Juvenile Group’s Design and<br />

Development Center in Canton, Massachusetts.<br />

<strong>Dorel</strong> Juvenile Group USA, and <strong>Dorel</strong> Juvenile Group Europe offer infant/children’s<br />

car seats, strollers, high chairs, play yards, walkers, bouncers, bassinets, beds and<br />

bed rails, nursery monitors, security gates and other safety aids, apparel, activity toys,<br />

feeding and bathing accessories.<br />

<strong>Dorel</strong> Juvenile Group USA<br />

Juvenile <strong>products</strong> are primarily marketed under<br />

the Safety 1 st and Cosco brands.<br />

Developed the internationally recognized “Baby on Board” sign<br />

Claimed a market niche in child safety and was the first to develop<br />

a comprehensive line of “child-proofing” <strong>products</strong>, gaining a reputation<br />

for feature-rich merchandise at affordable prices<br />

Distributes over 200 <strong>products</strong> to more than 1,000 retailers around the globe<br />

Accounts for more than 50% of the child safety <strong>products</strong> market<br />

Safety 1 st brand serves as a platform for new product categories in North America<br />

and Europe<br />

Ranks #11 of the 107 most recognized brands in the U.S. and #6<br />

in perceived quality (out of a total of 2,000)<br />

Is recognized as one of the premier juvenile <strong>products</strong> manufacturers<br />

in the United States<br />

Has long been a leader in car seat design and child passenger safety<br />

Develops revolutionary new <strong>products</strong>, such as the first-ever rear-facing car seat<br />

Meets changing needs, exemplified by the ‘Tote n’ Go’, which turns<br />

a lap/shoulder belt into a 5-point harness in the absence of a regular car seat<br />

In addition, <strong>Dorel</strong> has licensing agreements with<br />

Eddie Bauer, Disney and General Motors.<br />

3


Product<br />

Segments<br />

Juvenile<br />

<strong>Dorel</strong> Juvenile Group Europe<br />

Innovative, high quality <strong>products</strong> are marketed under<br />

Maxi-Cosi, Quinny, Babidéal, Bébé Confort, Baby Relax<br />

and MonBébé.<br />

Acquisition of Ampafrance in 2003 greatly enhanced market position<br />

throughout Europe, particularly in southern Europe<br />

Maxi-Miliaan, acquired in 1994, is strong in northern Europe<br />

Ampafrance is the market leader in France<br />

Ampafrance is the oldest manufacturer of juvenile <strong>products</strong> in Europe<br />

Ampafrance is one of the top three players in Spain, Italy and Portugal<br />

Few competitors match the comprehensive range of <strong>products</strong> offered<br />

Sells in more than 60 countries<br />

Serves both mass merchants and specialty stores<br />

Bébé Confort and Baby Relax are the two best known brands in France<br />

4


Juvenile<br />

Eddie Bauer natural wood high chair<br />

Cosco Alpha Omega Elite car seat<br />

Corvette<br />

Eddie Bauer play yard<br />

Zapp stroller<br />

Cabrio<br />

1<br />

2 3<br />

4<br />

5<br />

6<br />

1. This handsome Eddie Bauer high chair sells itself. Made of sturdy natural<br />

wood, it features removable plastic trays, a retractable jar holder and an<br />

attractive seat cushion<br />

2. This all-in-one convertible car seat is equipped for both rear-facing and<br />

forward-facing travel<br />

3. What a combination – Safety 1st and the power and passion of the legendary<br />

Corvette. This kid-friendly sports car accelerates up to 5 mph!<br />

4. Presto – the Eddie Bauer play yard sets up in minutes<br />

5. Tops in safety, the streamlined Zapp from Maxi-Cosi rides like a dream over<br />

any surface<br />

6. Simply safe, the Cabrio car seat, also from Maxi-Cosi, features a unique built-in<br />

seat adjustor and integrated sun canopy<br />

5


Product<br />

Segments<br />

Home Furnishings<br />

<strong>Dorel</strong> is among the top two producers of ready-to-assemble<br />

(RTA) furniture in North America. The Home Furnishings<br />

Segment capitalizes on the distribution channels established<br />

by <strong>Dorel</strong>'s other businesses. <strong>Dorel</strong>’s home furnishings subsidiaries<br />

include Ameriwood, Cosco Home & Office and <strong>Dorel</strong> Asia.<br />

Ameriwood produces home/office furniture, entertainment units, and kitchen and<br />

storage units, under the brand names Ameriwood,<br />

Ridgewood/Charleswood, Carina, and SystemBuild<br />

RTA furniture is manufactured and packaged as component parts and is<br />

assembled by the <strong>consumer</strong><br />

Ameriwood has introduced numerous new designs and product platforms<br />

which bring a renewed, positive perception to RTA furniture<br />

Ameriwood offers attractive furniture as a reasonably-priced alternative<br />

to traditional case-good furniture<br />

Ameriwood distributes mostly to mass merchants, office superstores<br />

and hardware/home centres<br />

Ameriwood is a leader in the <strong>global</strong> futon market and has recently installed<br />

revolutionary new, environmentally friendly production equipment which can<br />

double capacity to 1.4 million units annually<br />

Founded in 1935, Cosco was the first to manufacture a full line of household<br />

step stools<br />

Cosco is a leading brand name in step stools<br />

Through a licensing agreement, Cosco Home & Office markets a line of<br />

Samsonite ® commercial office furniture, synonymous with quality, increased<br />

durability, and functionality<br />

Cosco is the #1 manufacturer of folding metal tables and chairs<br />

Cosco launched an unprecedented 60 innovative new <strong>products</strong> in 2003<br />

and projects 75 to 100 new <strong>products</strong> for 2004<br />

Created to capitalize on an exciting new source of <strong>products</strong>, in response<br />

to the increasingly competitive factor of imports from the Orient<br />

<strong>Dorel</strong> Asia markets a variety of home furnishings<br />

Provides sourcing to Home Furnishings Segment<br />

Offerings include leather recliners, game tables and other specialty <strong>products</strong><br />

6


Home Furnishings<br />

Futon<br />

Home Entertainment Unit<br />

Super Fold<br />

California Closets<br />

Visitors chair<br />

Transporter<br />

1<br />

2<br />

3<br />

4<br />

5<br />

6<br />

1. Modern, comfortable and finely crafted, this two-position frame futon serves as<br />

a sofa and a bed. Ideal for those unexpected guests!ractive seat<br />

2. Combining versatility with beauty, home entertainment units such as<br />

this one add charm to any room. Available in a variety of finishes, it features<br />

adjustable shelving and provides ample space for books, curios and accessories<br />

3. The Super Fold is a convenient aluminium-framed step ladder with a unique<br />

bi-directional design. Compact and lightweight it also features safety grips for<br />

easy climb and an integrated tool tray that make any job around the home that<br />

much easier<br />

4. New California Closets-branded RTA furniture custom home storage systems.<br />

Includes multiple hanging sections, adjustable shelving and much more.<br />

5. This large collection of Samsonite stackable chairs is available in a variety of<br />

fashionable fabric upholstery. Built to last, these visitors chairs feature<br />

a contoured seat and heavy-duty steel frame<br />

6. Developed under the Transport by Schwinn brand, Cosco’s Ability Care Essentials<br />

introduced a Mobility line to include this adult electric scooter.<br />

7


Product<br />

Segments<br />

Recreational/Leisure<br />

Pacific Cycle<br />

In early 2004, <strong>Dorel</strong> acquired Pacific Cycle,<br />

a <strong>company</strong> on the leading edge of design, marketing<br />

and distribution of quality branded bicycles and<br />

recreational <strong>products</strong>. <strong>Dorel</strong> sells more bicycles in the<br />

U.S. than anyone else, with a portfolio of powerful<br />

brands that is one of the strongest in the sporting<br />

goods industry. The widely known brands are Schwinn,<br />

Mongoose, GT, InSTEP and Roadmaster.<br />

Has an industry-leading 27% share of total U.S. bicycle sales<br />

including 44% of the bicycle sales in the mass merchant sector<br />

The only bicycle supplier to sell through all key retail channels:<br />

mass, independent dealers and sports specialty shops<br />

The first bike supplier to sell bikes retailing above $300 through<br />

the mass distribution channel<br />

High quality <strong>products</strong> are offered through low-cost Far East sourcing,<br />

efficient supply chain management, and multi-channel retail distribution<br />

Markets tricycles, wagons, sleds, jogging strollers, bicycle trailers,<br />

home-use fitness equipment, and cycling accessories<br />

Has launched modern-day version of the popular Sting-Ray, shaping<br />

up to be the most exciting new bicycle introduction in over a decade<br />

Schwinn has an 88% market awareness and is an American icon dating<br />

back to 1895<br />

Mongoose has a 73% market awareness and is particularly<br />

well known in the aggressive, performance-oriented BMX bicycle<br />

and freestyle riding market<br />

8


Recreational/Leisure<br />

Sting-Ray (Schwinn)<br />

GT<br />

Mongoose<br />

InSTEP<br />

Motor Scooter<br />

1<br />

2<br />

3 4<br />

5<br />

1. A new breed of Sting-Ray for a new breed of rider. From the Wishbone<br />

Kickstand to the Mud Stud Fender, every part of the new Sting-Ray<br />

is customized to keep its owner cruising in style<br />

2. Among the first mountain bikes in the industry, GT boasts innovation,<br />

technology and performance<br />

3. Youthful, aggressive and cool, the Mongoose features unique magnesium<br />

Moto Mag wheels and Front Porch head tubes<br />

4. You can’t miss them – InSTEP jogging strollers and bicycle trainers are the<br />

industry’s leading brands.<br />

5. The new Schwinn Motor Scooter offers the same style, quality and fun<br />

you’ve come to expect from a brand you know and trust. With its 49.5-cc,<br />

four-stroke engine, this scooter is the sweetest ride on the road.<br />

9


Our Customers<br />

10


Contact Information<br />

www.dorel.com<br />

Senior Management<br />

Martin Schwartz<br />

President<br />

and Chief Executive Officer<br />

Jeffrey Schwartz<br />

Executive Vice-President,<br />

Chief Financial Officer<br />

and Secretary<br />

Jeff Segel<br />

Executive Vice-President,<br />

Sales and Marketing<br />

Alan Schwartz<br />

Executive Vice-President,<br />

Operations<br />

Camillo Lisio<br />

Vice-President,<br />

Chief Operating Officer<br />

Frank Rana<br />

Vice-President, Finance<br />

and Assistant-Secretary<br />

Pierre Dupuis<br />

Vice-President, Management Development<br />

Ed Wyse<br />

Vice-President, Global Procurement<br />

Head Office<br />

<strong>Dorel</strong> <strong>Industries</strong> Inc.<br />

1255 Greene Avenue<br />

Suite 300<br />

Westmount, Quebec<br />

Canada H3Z 2A4<br />

Investor Relations<br />

Maison Brison<br />

Rick Leckner or Brian Quick<br />

3201 Graham Blvd.<br />

T.M.R., Quebec, Canada<br />

H3R 1K1<br />

Tel.: (514) 731-0000<br />

Fax: (514) 731-4525<br />

@: brison1@maisonbrison.com<br />

Stock Exchange Listing<br />

Share Symbols:<br />

TSX – DII.MV; DII.SV<br />

NASDAQ – DIIB<br />

11


www.dorel.com

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