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INVESTOR PRESENTATIONINVESTOR PRESENTATION

F I R S T QUART E RF I R S T QUART E RF I R S T QUART E RF I R S T QUART E RJ u n e 2 0 1 2J u n e 2 0 1 2

FORWARDFORWARD‐‐LOOKING STATEMENTLOOKING STATEMENT

Except for historical information provided herein, this presentation may containinformation and statements of a forward‐looking nature concerning the futureperformance of Dorel Industries Inc. These statements are based on suppositions andperformance of Dorel Industries Inc. These statements are based on suppositions anduncertainties as well as on management's best possible evaluation of future events. Thebusiness of the Company and these forward‐looking statements are subject to a numberof risks and uncertainties that could cause actual results to differ from expected results.Important factors which could cause such differences may include, without excludingImportant factors which could cause such differences may include, without excludingother considerations, increases in raw material costs, particularly for key input factorssuch as particle board and resins; increases in ocean freight container costs; thecontinued ability to develop product and support brand names; changes to theCompany’s effective income tax rate as a result of changes in the anticipated geographicCompany s effective income tax rate as a result of changes in the anticipated geographicmix of revenues; the impact of price pressures exerted by competitors, and settlementsfor product liability cases which exceed the Company’s insurance coverage limits. Adescription of the above mentioned items and certain additional risk factors arediscussed in the Company’s Annual MD&A and Annual Information Form, filed with thediscussed in the Company s Annual MD&A and Annual Information Form, filed with theCanadian securities regulatory authorities. The risk factors outlined in the previouslymentioned documents are specifically incorporated herein by reference. The Company’sbusiness, financial condition, or operating results could be materially adversely affectedif any of these risks and uncertainties were to materialize. Given these risks andif any of these risks and uncertainties were to materialize. Given these risks anduncertainties, investors should not place undue reliance on forward‐looking statementsas a prediction of actual results.Note: All figures are in US dollars.

DOREL’S KEY BRANDSDOREL’S KEY BRANDS

3

FIRSTFIRST QUARTERS ENDED MARCH 31QUARTERS ENDED MARCH 31

First Quarters Ended March 31

(in thousands of US$, other than EPS) 2012 2011T t l $ 621 100 $ 607 783Total revenue $ 621,100 $ 607,783Net income 29,163 31,164EPS (diluted) 0.91 0.94

First QuarterFirst QuarterJuvenile HighlightsJuvenile HighlightsJuvenile HighlightsJuvenile Highlights

• Revenue: unchanged at $269.5 M last year

• Operating profit: $20.7 M vs $23.7 M

•Best quarter since Q1 2011•Revenue increased 12.5% quarter‐over‐quarter• European sales consistent w/prior year despite p /p y pdifficult economy

•Dorel Brazil increased sales•Dorel Chile contributed to both revenue and earnings

Juvenile SegmentJuvenile Segment


(in thousands of US$) 2012 2011Total revenue $ 269,499 $ 269,620Gross profit 74,367 71,620Operating profit 20,665 23,672

A World Leader in JuvenileA World Leader in JuvenileI ti i N th A iI ti i N th A iInnovation in North AmericaInnovation in North America

• New G‐cell HX Superior Side Impact technology• New G‐cell HX Superior Side Impact technologydeveloped at Dorel Technical Center with specialists in race car cockpit crash protectionp p p

• Air Protect® ‐ side impact technology

• FlexTech™ Energy Management System – internalFlexTech Energy Management System internal truss design which absorbs and mitigates crash forces

• Tiny Fit™ System – removable insert providing better fit for smaller babies

A World Leader in JuvenileA World Leader in JuvenileLatest Development in Car Seat Safety

Maxi‐Cosi PreziMaxi Cosi Prezi

A World Leader in JuvenileA World Leader in Juvenile

Dorel Europe• A major player – over $450 million in sales annually

• Strong brands

• Traditionally sales made to Juvenile product chains, boutiques, independents

• Building mass merchant relationships; products successfully introduced in mid‐price point categories eg Safety 1stcategories, eg. Safety 1st

• Maintaining market share in difficult economic environmentenvironment

Innovation Innovation ‐‐ EuropeEurope•QUINNY MOODD ‐ The ultra modern stroller that automatically unfoldsautomatically unfolds.

•QUINNY YEZZ – FeaturesQUINNY YEZZ Featureshigh‐performance plastic frame and parachute fabric seat. Weighs only 5 kg. Easily foldable to a compact package and can be carriedpackage and can be carried on your back. Recipient of several awards.

First QuarterFirst QuarterRecreational/Leisure HighlightsRecreational/Leisure HighlightsRecreational/Leisure HighlightsRecreational/Leisure Highlights

•Revenue: + 10 2% to $220 9 M•Revenue: + 10.2% to $220.9 M•Operating profit: +20.3% to $21.4 M•Operating profit highest in segment’s history•Operating profit highest in segment s history

• The apparel division was a positive contributor to earningsearnings

•Cannondale, GT & Mongoose brands doing especially well in Europeespecially well in Europe

• Strong spring shipments at CSG Canada

• Sales up modestly to mass merchant channel• Sales up modestly to mass merchant channel

Recreational/Leisure SegmentRecreational/Leisure Segment



Strategic and Comprehensive PortfolioStrategic and Comprehensive Portfolio


Three distinct operating divisions

Cycling Sports Group (CSG)Cycling Sports Group (CSG)

• IBD Division

• Premium Brands• Premium Brands

• Growing dealer network

CSG l i idl t id• CSG sales growing rapidly outsideNorth America

• Innovation – continuing focus• Innovation – continuing focus

• Building Dorel’s bike business to # 1 position

Recreational/Leisure SegmentRecreational/Leisure SegmentP ifi C lPacific Cycle

• Mass merchants/sporting goods chains

• Bicycle parts/accessories • Full service provider – bikes, parts and accessories,branded apparel

• Brand building has enhanced Schwinn’sawareness

• 2012 marketing to target Mongoose


Apparel Footwear Group (AFG)

P f l di i i i t• Performance apparel division incorporates strong SUGOI brand

i l• New management team in place

• Division was a positive contributor in Q1 to earnings

• Turnaround on track

First QuarterFirst QuarterHome Furnishings HighlightsHome Furnishings HighlightsHome Furnishings HighlightsHome Furnishings Highlights

•Revenue: $130.7 M vs $137.7 MRevenue: $130.7 M vs $137.7 M

•Operating profit: $5.8 M vs $7.8 M

• Less profitable sales mix – reduction in sales ofLess profitable sales mix reduction in sales of imported RTA and folding furniture

•Higher sales of imported furniture and strongHigher sales of imported furniture and strong dot com sales

Home Furnishings SegmentHome Furnishings Segment



OutlookOutlook

Operational improvements and new product introductions will helpdrive the Juvenile turn around This along with the contribution ofdrive the Juvenile turn around. This, along with the contribution ofDorel Chile as well as earnings improvements in Brazil, make usconfident that 2012 will be better than 2011. While our juveniledivisions around the world are well positioned within their respectivedivisions around the world are well positioned within their respectivemarketplaces, uncertain economic conditions and volatility incurrencies leave us cautious about our outlook. Dorel’s bicyclebusiness continues to grow its revenues and earnings and allbusiness continues to grow its revenues and earnings, and allindications are that this momentum will be maintained. There hasbeen substantial improvement in the AFG apparel division and this willalso help earnings The Home Furnishings segment experienced aalso help earnings. The Home Furnishings segment experienced achallenging second quarter in 2011 and we are expecting this year'ssecond quarter to be better than last year. The segment is expecting

ti d th i th l d t I t t t il h lcontinued growth in the already strong Internet retail channel.

APPENDIXAPPENDIX

Growth Through AcquisitionsGrowth Through Acquisitions

• 1988 Cosco Inc (DJG)

• 1990 Charleswood Corporation

• 1994 Maxi‐Miliaan B.V. (Maxi Cosi)( )

• 1998 Ameriwood Industries

• 2000 Safety 1st Inc.2000 Safety 1 Inc.

• 2001 Quint B.V. (Quinny)

• 2003 Ampa France (Dorel Europe)• 2003 Ampa France (Dorel Europe)

• 2004 Pacific Cycle

• 2007 IGC Australia (55% interest)• 2007 IGC Australia (55% interest)

Growth Through AcquisitionsGrowth Through Acquisitions

• 2008 Cannondale/SUGOI

• 2008 PTI Sports

• 2009 Baby Art

• 2009 Dorel Brazil (70% interest)

• 2009 Iron Horse Bicycles y

• 2009 Gemini Bicycles (Australia)

• 2009 Hot Wheels, Circle Bikes (UK)2009 Hot Wheels, Circle Bikes (UK)

• 2011 Silfa Group (Chile, Peru, Bolivia, Argentina; 70% interest)

• 2012 Poltrade (Poland)

Total Revenue by SegmentTotal Revenue by Segment

2011 2010

42%22%

45%22%

36% 33%

JUVENILE RECREATIONAL/LEISURE HOME FURNISHINGS

Geographical Distribution of Total RevenueGeographical Distribution of Total Revenue(by customer)(by customer)

7% 7%

2011 2010

61%6%

26%7%

61%6%

26%7%

US CANADA EUROPE OTHER

SustainabilitySustainability PhilosophyPhilosophy

• Active in sustainability on several fronts throughout all th tthree segments

• Facility is FSC certified

• Cornwall RTA plant recycling for 10 years

• 98% of materials are recycled or sold98% of materials are recycled or sold

• DJG’s sustainability initiatives include zero landfill, water usage reduced by 98%; high efficiency lighting systemsusage reduced by 98%; high‐efficiency lighting systems

• Strict policy in place to ensure sustainable business ti f lipractices of suppliers

WhyWhy InvestInvest in in DorelDorel??

• A record of successfully integrated acquisitions

A f J il d Bik h D l i k l• A focus on Juvenile and Bikes where Dorel is a key player

• A portfolio of known, premium brands

• Product development capabilities that drive growth

• Established customer relationships

• A quarterly dividend

• Strong generator of cash flow to support acquisitions

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