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DORELDOREL
JUVENILEJUVENILE
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Hani BasileHani BasileHani Basile
•• Dorel Industries Inc.Dorel Industries Inc. 2003 2003 -- PresentPresent
–– 20032003--Sept. 2004; VSept. 2004; V--P Corporate Management P Corporate Management
–– Oct. 2004Oct. 2004--Nov. 2006; CEO, Dorel Distribution CanadaNov. 2006; CEO, Dorel Distribution Canada
–– Nov. 2006Nov. 2006--April 2008; Corporate VApril 2008; Corporate V--P Juvenile & RecreationP Juvenile & Recreation
–– May 2008May 2008--Jan. 2009; Chief Operating Officer, Juvenile Jan. 2009; Chief Operating Officer, Juvenile GroupGroup
–– Feb. 2009Feb. 2009-- Present; Interim Group President, Juvenile Present; Interim Group President, Juvenile GroupGroup
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Juvenile Consolidated FinancialsJuvenile Consolidated FinancialsJuvenile Consolidated Financials
Dorel Dorel
JuvenileJuvenile 20042004 20052005 20062006 20072007 20082008
SalesSales $776,370$776,370 $846,856$846,856 $888,534$888,534 $1,016,645$1,016,645 $1,109,174$1,109,174
Gross ProfitGross Profit $224,081 $224,081 $248,638 $248,638 $263,502$263,502 $309,236$309,236 $323,901$323,901
Earnings From Earnings From
OperationsOperations
$65,682$65,682 $99,400$99,400 $92,000$92,000 $113,285$113,285 $128,223$128,223
EBITDAEBITDA $93,240 $93,240 $131,015 $131,015 $121,849$121,849 $145,459$145,459 $161,123$161,123
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Home Safety
Travel Safety
Infant Health
Nursery Monitors
Feeding
Soft Infant
Carriers
Car Seats
Global Leadership Across CategoriesGlobal Leadership Across CategoriesGlobal Leadership Across Categories••Dorel Juvenile is the largest juvenile company with sales in allDorel Juvenile is the largest juvenile company with sales in all categories categories
except for feeding, toys and diapersexcept for feeding, toys and diapers
••Dorel Juvenile 2008 PerformanceDorel Juvenile 2008 Performance
• $1.1 Billion in Sales
••Dorel Juvenile is comprised of the 4 following categories:Dorel Juvenile is comprised of the 4 following categories:
Large Furniture
Strollers
Walkers / SACs
High Chairs
Play Yards
Travel Systems
Bassinets
Swings
Small FurnitureSafety
Bath Seats
Bathtubs
Bedrails
Feeding Booster
Seats
Potties
Bath Accessories
Bouncers
Diaper Pails
Gates
Booster Car Seats
Convertible Car
Seats
Infant Car Seats
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Dorel Juvenile’s Leading EdgeDorel JuvenileDorel Juvenile’’s Leading Edges Leading Edge
•• Strong BrandsStrong Brands
•• FactoriesFactories
•• Understanding of regulationsUnderstanding of regulations
•• Relationship with our retail accountsRelationship with our retail accounts
•• Product differentiationProduct differentiation
•• Exceptional relationships with Domestic Exceptional relationships with Domestic
and International suppliersand International suppliers
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Dorel EuropeDorel EuropeDorel Europe
• Very strong presence with independents.
• Major brand portfolio:– Maxi Cosi
– Quinny
– Bebe Comfort
– Safety 1st
• Short term performance will be affected by currency.
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DOREL UK
DORELFRANCE
DOREL
PORTUGAL
DOREL HISPANIA
DOREL JUVENILE SWITZERLAND
DOREL ITALIA
DOREL BELGIUM
DOREL NETHERLANDS
DOREL GERMANY
DOREL EUROPE HQ
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European Juvenile Market Overview
5.2 Million Births Annually
European Juvenile Market OverviewEuropean Juvenile Market Overview
5.2 Million Births Annually
Sources : Interconnec tion data 2006 & extrapol ation of Nielsen Panel 2007 for small nursery
26 % OPP26 % OPP “Opening Price Point”
14 % MPP14 % MPP“Mid Price Point”
60 %60 % HPPHPP “High Price Point”
Top 8 European Top 8 European
Countries Market Countries Market
4.64.6 BB €€
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European Juvenile ChannelsEuropean Juvenile ChannelsEuropean Juvenile Channels
Sources : Interconnec tion data 2006 & extrapol ation of Nielsen Panel 2007 for small nursery
Expected 3 year Expected 3 year
TrendTrend
Expected FutureExpected Future
WeightWeight
70 %70 %
Specialized Specialized
StoresStores~~ 65 %65 %
30 %30 %Mass Mass
MarketMarket
~ ~ 35 %35 %
4.64.6 BB €€
TTop 8 European op 8 European
CountriesCountries
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Europe’s Growth StrategyEuropeEurope’’s Growth Strategys Growth Strategy
1.1. Organic GrowthOrganic Growth
– OPP/MPP
• Mass Merchants
– Large Furniture, Small Furniture, Feeding,
Safety 1st Peg Items
– Scandinavia, Old Eastern Bloc Countries, Export
Countries
2.2. Explore acquisition opportunities, started Explore acquisition opportunities, started
by Hoppop in 2009by Hoppop in 2009
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Mila & AxissMila & AxissMila & Axiss
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Quinny Products Quinny Products Quinny Products
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Quinny SenzzQuinny SenzzQuinny Senzz
•• InnovativeInnovative
•• Competitive Price PointCompetitive Price Point
•• September 2009 LaunchSeptember 2009 Launch
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European Safety 1st 2009 Product LaunchEuropean Safety 1st 2009 Product LaunchEuropean Safety 1st 2009 Product Launch
+ + +
TRITRI--SAFESAFE
Gr. 1/2/3Gr. 1/2/3
Easy 1Easy 1stst TRIOTRIO
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Hoppop Integration Hoppop Integration Hoppop Integration
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BrandBrand PositioningPositioning Price RangePrice Range
“Your Child Comes First” MPP
HPPClassic, All American Style with
Unmatched Quality
Solid Value, Smart Design OPP
Magical InternationalEntertainment
MPP
Always ahead in Baby Mobility
The Original European Brand Synonymous
with Safety, Quality and StylePPP
PPP+
Smart Solutions for Today's Active Parents HPP
Dorel Juvenile Group USADorel Juvenile Group USADorel Juvenile Group USA
• Goal to improve profitability by 2011
• Brand portfolio & Strategy:
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3 Primary Operating Locations
DJG USA Internal StructureDJG USA Internal StructureDJG USA Internal Structure
Columbus, INCorporate Office, Manufacturing Facility and Distribution Center
Ontario, CAWest Coast Warehouse
Foxboro, MADorel Design and Development Center
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U.S. Juvenile Products IndustryU.S. Juvenile Products IndustryU.S. Juvenile Products Industry
•• $2.85 Billion Market $2.85 Billion Market
•• 4.3 million births annually4.3 million births annually
•• Average annual growth rate 3%Average annual growth rate 3%--4%4%
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PIP – Profit Improvement PlanPIP – Profit Improvement Plan
1.1. Sales RetrenchmentSales Retrenchment
2.2. Concentrate on more profitable itemsConcentrate on more profitable items
3.3. Going forward; establish profit targets by Going forward; establish profit targets by
product category product category
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PIP OutlookPIP OutlookPIP Outlook
•• Tempered growth of top lineTempered growth of top line
•• Substantial profit improvementSubstantial profit improvement
•• Which will lead us to consider further Which will lead us to consider further
acquisitionsacquisitions
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POPPOPCarton GraphicsCarton Graphics
A signature series logoA signature series logo
BLACK LABELBLACK LABEL
With a StoryStoryStoryStory…With a With a StoryStoryStoryStoryStoryStoryStoryStory……
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Pro-GradeProPro--GradeGrade
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3/24/200924
Carseats ~ What’s in the category?Carseats ~ WhatCarseats ~ What’’s in the category?s in the category?
Infant Car Seats
Convertible Car Seats
Combination Boosters
Belt-positioning Boosters
Convertible
Car Seats
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3/24/200925
3/24/2009 25
Large Furniture ~ What’s in the category?Large Furniture ~ WhatLarge Furniture ~ What’’s in the category?s in the category?
Highchairs Play yards
Travel Systems
Swings Walkers
Travel Systems
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Small Furniture ~ What’s in the category?Small Furniture ~ WhatSmall Furniture ~ What’’s in the category?s in the category?
Bedrails
Stepstools
Feeding Boosters
Safety Gates
Potties Bathtubs
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Health & Safety ~ What’s in the category?Health & Safety ~ WhatHealth & Safety ~ What’’s in the category?s in the category?
MonitorsMonitors
Travel SafetyTravel Safety
Home SafetyHome Safety Infant SafetyInfant Safety
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Scenera Carseat SuccessScenera Carseat SuccessScenera Carseat Success
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“Green” Product Initiatives ““GreenGreen”” Product Initiatives Product Initiatives
BioBio--plastic collection: stepstool, tub, potty & boosterplastic collection: stepstool, tub, potty & booster
EarthEarth--friendly Bamboo Booster & Bamboo Gate w/ Recycled Plasticfriendly Bamboo Booster & Bamboo Gate w/ Recycled Plastic
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Dorel Distribution Canada - DDCDorel Distribution Canada Dorel Distribution Canada -- DDCDDC
• Currency has significantly affected DDC’s performance in 2008.
• DDC, As Dorel’s first distribution platform, sells products from all three segments in the Canadian market place.
• DDC can seek other non-Dorel products to represent in Canada.
• DDC adapts products from other divisions to meet Canadian regulations but also adapts Asian off-the shelf products to augment its product offering and revenues.
• Because of the relatively small population base, it is essential that DDC carry a large SKU count to support its revenue stream.
• DDC’s financial results for the foreseeable future will be affected by the weakening of the Canadian currency.
• Locations: Montreal (Warehouse) and Toronto (Sales), Canada
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MonitorsMonitors
Canadian Specific Initiatives
Angel care, Digital 1 and Baby Figure, all sourced outside of US core listing. Retaining higher price point options.
Schwinn Branded Car Seats
Licensed Schwinn brand car seats exclusively to Canadian Tire to retain placement and offer market differentiation.
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Bottle & Diaper BagsBottle & Diaper Bags
Canadian Specific Initiatives
Sourced through existing suppliers
Car Accessories
Sourced through existing suppliers
30708 – wipe warmer
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Total Fitness Market $325 Million
Fitness FirstFitness First
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In Good Care – IGC / Dorel AustraliaIn Good Care In Good Care –– IGC / Dorel AustraliaIGC / Dorel Australia
• Dorel’s first partnership.
• Along with the brands previously identified, IGC owns and operates these additional Australian principal brands:
– Mother’s Choice
– Bertini
• Australia car seats regulations require seats to meet side impact standards. At this time, Australia is the only territory requiring such a standard, which limits our ability to introduce new car seat platforms.
• Dorel Australia performance will also be affected by its weakening currency.
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• Australia’s birth rate in:
• 2007: 285,254
• Based on historical Australian birth rates, the current economic situation in
Australia has the potential to flat line this upward trend resulting in a slight
down turn.
Source: ** Aust ralian Bureau of St atistics -www.abs.gov.au
Quick Facts – Australian Birth RatesQuick Facts Quick Facts –– Australian Birth RatesAustralian Birth Rates
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BRAND PRODUCT
CATEGORY
IMAGES
• Hardgoods
• Softgoods• Wood
•Hardgoods• Softgoods
• Wood
• Auto
Brand Categories Brand Categories Brand Categories
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Product Development Product Development –– 2009 Outlook2009 Outlook
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� New hardgoods (wheelgoods) ranges.
� Travel system to hit independent market in
June/July.
� Pressing forward with monitors, scales and traditional Safety 1st offerings not previously
available in Australia.
� Further expansion of Car Seat/Booster Seat
offerings.
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Product Development Product Development –– 2009 Outlook2009 Outlook
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Developed and modify the Mico Developed and modify the Mico
Infant Car Seat to meet the Infant Car Seat to meet the
AS/NZS1754/2004 Safety StandardAS/NZS1754/2004 Safety Standard
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Dorel BrazilDorel Brazil
• Our latest partnership.
• No activities in 2008.
• 2009 activities - just been launched.
• Focus on car seats and strollers.
• Significant growth is projected in the next few years due to a compulsory car seat regulation recently implemented.
• We will be transferring assets and technology to capitalize on the changing regulatory environment.
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Quick Facts - BrazilQuick Facts Quick Facts -- BrazilBrazil
DOREL BRAZIL:DOREL BRAZIL:
• Established on 01/ 07/2009
• Offices are located in Rio de Janeiro and São Paulo, manufacture & warehouse
based in Campos dos Goytacazes (RJ)
• Warehouse size: 1,000m2
BRAZIL:BRAZIL:
• Brazil Population: 186 million (world’s fifth largest)
• Brazil Land mass: 8.5 million km2 (world’s fifth most dense)
• Brazil GDP: US$1.3 trillion (2007)
• 52% of population economically active is middle class
• 11 million households with assets of over US$1 million
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Brand PositioningBrand Positioning
OPP
MPP
HPP
HPP
SuperPremium
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Brazil Product Line Brazil Product Line -- OPPOPP
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Brazil Product Line Brazil Product Line -- OPPOPP
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Brazil Product Line Brazil Product Line –– MPP / HPPMPP / HPP
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Brazil Product Line Brazil Product Line –– MPP / HPPMPP / HPP
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Brazil Product Line Brazil Product Line -- HPP / Super PremiumHPP / Super Premium
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Potential AcquisitionPotential AcquisitionPotential Acquisition
• Opportunity Focus: – Shore up weaknesses we may have in certain
territories – relevant in Europe.
– 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.
• Continue to examine potential emerging markets as we have done in Australia and Brazil.