Dorel Industries Inc. Class A · TSX:DII.A
Dorel Industries Inc. Class A — Investor Day (May 2013)
37 slides from Dorel Industries Inc. Class A's investor day presentation, May 2013
Slide 1: Robert P. Baird Jr., Group President & CEO
Robert P. Baird Jr. Group President & CEO
Slide 2: Agenda
Agenda I. Bicycle Market Overview II. Who We Are… III. The Next Phase IV. Our Competitive Advantage Note: All figures are in US$ Slide 2
Slide 3: I. Bicycle Market Overview
|. Bicycle Market Overview c in\tep) mongoose. rr SCHWINN) =IRON-AORSE © SUGOi.
Slide 4: Growing Market Opportunity
Growing Market Opportunity • $50 billion global opportunity in 2012. • U.S. market at $5 billion, 4 dominant players. • Europe at $13.9B+ with 222 + competitors. SOURCE: MINTEL/BASED / ON BUREAU OF ECONOMIC ANALYSIS, NATIONAL INCOME AND PROGRAM ACCOUNTS, February 2012 Slide 4
Slide 5: Positive Global Trends for Recreation
Positive Global Trends for Recreation Slide 5
Slide 6: U.S. Market Overview
U.S. Market Overview • C Category NNet Revenue R has h increased i d 20.3% 20 3% in i the h UU.S. S market k ini the h past five years (2006 – 2011). • U.S. Bicycles and accessories sales grew 5.5% in 2011. Th U • The S market U.S. k t iis expected t d tto grow another th 15% iin th the nextt fi fiv
Slide 7: II. Who We Are…
ll. Who We Are... INNOVATION Step mongoose. orzr SCHWINN) JRONHORSE €SUGOi.
Slide 8: Where our story begins
Where our story begins Dorel acquires 2012 Dorel acquires Ironhorse KidTrax 2008 Dorel 2009 acquires GURU 2004 Dorel acquires 2007 Cannondale & SUGOI LLate t 80’s 80’ Dorel acquires Vancouver Pacific Cycle SUGOI is Group containing: Mid-70’s born California GT is born 1971 Connecticut Cannondale is
Slide 9: Operating For Success
Operating For Success Pacific Cycle Cycling Sports SUGOI Group Group Mass Market IBD / Specialty IBD / Specialty Channel Channel Channel • Schwinn • Cannondale • SUGOI • Mongoose • GT • IronHorse • Mongoose • InStep • Schwinn • Kid Trax • Ch Charge • Roadmaster Slide 9
Slide 10: Strategic & Comprehensive Portfolio
Strategic & Comprehensive Portfolio Slide 10
Slide 11: Global Presence
Global Presence Cannondale 86 countries GT 71 countries *Mongoose 49 countries *Schwinn 50 countries SUGOI 28 countries * = IBD & Mass Market Slide 11
Slide 12: Deep Bench of Talent
Deep Bench of Talent Robert Baird CEO, Dorel Recreational/Leisure Peter Woods Global CFO Alice Tillett Global President, Pacific Cycle Jeff McGuane Global President, Cycling Sports Group Kyle Weiner Gl b l President, Global P id t SUGOI Andy Coccari SVP, Strategic Growth Initiatives Vanessa Lapins p
Slide 13: Strong Organic Growth
Strong Organic Growth USD USD $m Total Revenue $m Earnings from Ops + 17% 900 + 11% 60 800 + 14% 55 + 31% 50 700 45 600 40 500 35 400 30 2008 2009 2010 2011 2008 2009 2010 2011 CAGR: 9.5% CAGR: 13.1% • Up 52% in profit since 2009 Slide 13
Slide 14: Third Party Endorsements / Recognition
Third Party Endorsements / Recognition “Best Road Bike in the World” by Tour France’s “Bike of the Year” by Velo Vert “E-Bike of the Year” byy Rai Vereniging g g Slide 14
Slide 15: III. The Next Phase
lll. The Next Phase cannondale c in\tep) mongoose. rr SCHWINN) =IRON-AORSE © SUGOi.
Slide 16: New Vision
New Vision Our brands will be in every household, creatingg inspired p experiences p for a fun, healthy world Slide 16
Slide 17: LEAD. INSPIRE. WIN.
LEAD. INSPIRE. WIN. LEAD byy taking g accountability, y, continuously learning and thinking with a global mindset. LEAD. INSPIRE by challenging the INSPIRE. status quo and taking smart risks to create innovative, inspirational consumer solutions. WIN. WIN by playing as a courageous team, operating w
Slide 18: IV. Our Competitive Advantage
IV. Our Competitive Advantage
Slide 19: Our Competitive Advantage
Our Competitive Advantage Slide 19
Slide 20: Competitive Advantage: Breakthrough Innovation
Competitive Advantage Breakthrough Innovation 1933 Schwinn First bike with 26 x 2.125 balloon tire 1963 Schwinn Launches Sting‐Ray 1973 GT Fi heli‐arc First h li welded ld d chrome‐moly h l BMX frame f 1974 Mongoose First U.S.‐made cast‐magnesium alloy wheels for BMX bikes 1983 Cannondale First bicy
Slide 21: Investing in the Future: R&D Facilities
Investing in the Future R&D Facilities Bethel, CT, USA Freiburg, Germany Taichung, Taiwan Global R&D Facility Global R&D Facility Freiburg, Germany Bethel, CT Global R&D Facility Taichung, Taiwan Slide 21
Slide 22: Investing in the Future: Model Year 2013
Investing in the Future Model Year 2013 Slide 22
Slide 23: Investing in the Future: Cannondale C.E.R.V. Concept Bike
Investing in the Future Cannondale C.E.R.V. Concept Bike Slide 23
Slide 24: Investing in the Future: GT Milenio QR Concept Bike
Investing in the Future GT Milenio QR Concept Bike Slide 24
Slide 25: Dorel Years of Innovation
DOREL 50 YEARS OF INNOVATION SCHWINN’ IRON-ORSE SS SuGoi.
Slide 26: Competitive Advantage: Strong Mass Distribution
Competitive Advantage Strong Mass Distribution Pacific Cycle has established strong relationships across all channels of distribution. Pacific Cycle has a strong sales support structure to manage the needs of our key accounts: • Category management • Forecast analysis • Sales management • Marketing
Slide 27: Investing in the Future: Mass Merchandising
Investing in the Future Mass Merchandising Slide 27
Slide 28: Investing in the Future: IBD Retail Lab
Investing in the Future IBD Retail Lab Showcasing Cycling Sports Group and SUGOI brands Slide 28
Slide 29: Investing in the Future: GURU Experience
Investing in the Future GURU Experience Slide 29
Slide 30: Brand portfolio
SCHWINN’ IRONHORSE SS SuGoi.
Slide 31: SUGOI Brand Positioning
Brand Positioning Go Beyond Price Point $10 ‐ $300 (from socks to BIB shorts) Channel IBD/ E‐Commerce/ E Commerce/ Select Sporting Goods/ Independent Run Stores # of Countries 28 Highlights •Celebrating their 25th anniversary •Official sublimated apparel pp sponsor p for North America Ironman events
Slide 32: Schwinn: Founded in 1895
Founded in 1895 Brand Positioning Recreational lifestyle brand for today’s modern family. Price Point $69 99 ‐ $1399 $69.99 Channel Mass / IBD / E‐Commerce # of Countries 50 Highlights Launched global digital campaign highlighting the Schwinn lifetime value proposition. proposition Product Line Urba
Slide 33: GT Brand Positioning
Brand Positioning Earn Your Wings P i Point Price P i $139 99 ‐ $5999.99 $139.99 $5999 99 Channel IBD # of Countries 71 Highlights GT Factory Racing team is named “Fastest Team ” in the 2012 Mountain Downhill World Cup Product Line Mountain, Road, Urban, BMX, Kids, Women and Parts Slide 33
Slide 34: Mongoose Brand Positioning
Brand Positioning There is nothing you can’t do on a Mongoose Price Point $59.99 ‐ $4999.99 Channel Mass / IBD /E‐commerce # of Countries 49 Highlights •Hosted first ever Mongoose Jam •Exclusive bike sponsor of Dew Tour Product Line Cruisers, Hybrid, Urban, Kids, BMX, X‐Country, Downhill Slide 34
Slide 35: Cannondale: Forty years strong
Forty years strong Brand Positioning Create the Perfect Ride Price Point $499.99 ‐ $10,999.99 Channel IBD # of Countries 86 Highlights •Won “Best Bike In The World” by Tour Magazine •Launched Cannondale Tours Product Line Urban, Cruisers, Sports Hybrid, X ‐Country, Downhill, Triathlon, Road, Helmets
Slide 36: Investing in the Future: Cannondale Pro Cycling
Investing in the Future Cannondale Pro Cycling Taking on active management role of Pro Cycling team. Demonstrates our continuous commitment to professional cycling cycling. Slide 36
Slide 37: Summary
Attractive, on trend industry Uniquely positioned company Eleven quarters of financial growth Investing in the future Slide 37