agenda - dorel · agenda • jean-claude jacomin - who am i? ... • children can carry their own...
TRANSCRIPT
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Agenda
• Jean-Claude Jacomin - Who am I? • Global Juvenile Business
– Market overview – Dorel’s vision & strategic focus – Brand portfolio & product innovation – Expansion
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International Profile
Career in Consumer Brands
Innovation Track Record
Leading Business Transformation
Jean-Claude Jacomin
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Broad International Experience
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Career in Consumer Brands
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Track Record Within Dorel Europe (DEU)
• Successful Innovative Product Launches • Leading Business Transformation • Business Model Innovation
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DEU: Successful Innovative Products
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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
• Implementation of a European structure - Driving synergies by the creation of a Pan-European Competence Centre - Implementation of Market clusters to increase synergies by centralized Sales Support functions
• Worldwide distribution of DEU brands and products in more than 80 countries
• DEU product platforms and brands are shared globally across Juvenile division
• Successful integration of acquisitions
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DEU: Business Model Innovation
2011 2012
Design of the New Business model
May
Finalization of the New Business model
Apr
il
July
Key priorities defined; Services to consumer, Brand connections with consumers, E-commerce, services to retailers
June
Launch of the New Business model in the organization: June Conference S
epte
mbe
r Installation taskforces
Installation Service Competence center M
arch
M
arch
Business Model Kick off week across DEU
Team Sessions and workshops A
pril
May
Final presentation roadmap of taskforces
Acceleration principles defined M
ay
Change summit Ju
ne We accelerate now!
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We Accelerate Now!
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Dorel Juvenile A Global Business
in Transition
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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 through acquisition
• Know-how in smooth integration of new
companies
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Dorel
Juvenile
(1)
2007
(1) 2008
(1) 2009
2010
2011
Sales
$1,017
$1,074
$995
$1,030
$980
(2)
Gross Profit
$309
$310
$274
$281
$247
Operating
Profit
$113
$127
$93
$96
$54
Juvenile Consolidated Financials (in Millions of US $)
(1) Financial information for 2007, 2008 and 2009 has been prepared in accordance with Canadian GAAP (2) Since the fiscal year ended December 30, 2009, the Company has applied CICA section 3031 Inventories and accordingly, depreciation expense related to manufacturing activities is included in cost of sales starting in 2008
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Juvenile Market Overview Europe*
5.3 B €
USA
2.55 B US$
Canada
450 M US$
Latin America
320 M US$
40% OPP
22% OPP
49% OPP
35% OPP
30% MPP
26% MPP
22% MPP 48% MPP
25% HPP
52% HPP
29% HPP
17% HPP
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA Europe Canada Chili
HPPMPPOPP
40% OPP
22% OPP
49% OPP
35% OPP
30% MPP
26% MPP
22% MPP 48% MPP
25% HPP
52% HPP
29% HPP
17% HPP
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA Europe Canada Chili
HPPMPPOPP
40% OPP
22% OPP
49% OPP
35% OPP
30% MPP
26% MPP
22% MPP 48% MPP
25% HPP
52% HPP
29% HPP
17% HPP
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA Europe Canada Chili
HPPMPPOPP
* Top 8 countries: France, United Kingdom, Spain, Germany, Netherlands, Portugal, Italy, Belgium
35% OPP
49% OPP
22% OPP
45% OPP
48% MPP22% MPP
26% MPP
30% MPP
17% HPP
29% HPP
52% HPP
25% HPP
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
USA Europe Canada Chili
HPPMPPOPP
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The World is Changing in Many Ways…
Urbanization; changing mobility
Sustainability; brand reputation
Demographic developments; Gen Y
Technology advancements
Economic developments; shift of power
Increasing power of consumer
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Dorel Juvenile Vision
A Growing & Coherent Global Juvenile
Business Delivering Enhanced Performance
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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 the global Juvenile Division • Continuously adapt our organization and invest in
our talented resources
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4 Pillars to Our Growth Strategy
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Juvenile Operating Structure
Dorel Distribution Canada
DJG USA
Dorel Chile
Dorel Brazil
Dorel Europe
IGC Australia
Dorel China
3400 people in 20 countries
Dorel Colombia
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Sylvain Duval Nicolas Duran
Jean-Claude Jacomin
DOREL JUVENILE USA
DOREL DISTRIBUTION
CANADA
DOREL EUROPE
DOREL BRAZILDOREL AUSTRALIA
DOREL CHILE
DOREL COLOMBIA
Dave Taylor Mark Robbins Jean-Claude Jacomin (interim)
Dean Jennings Rafael Camarano Christian Sitnisky
Dorel Juvenile Organisation Structure
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Strong International Brands and Product Innovation
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Global Brand Presence
69
countries
62
countries
68
countries
56
countries
• Global market leader in car seats and child safety
• #1 in the USA in Home Safety and Infant Health
• Our multi specialist brand with strong footprint in South Europe
• The primary stroller brand in many European countries and emerging markets
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Car Seats Strollers Large Furniture
Safety Small Furniture
Small Nursery
HPP
MPP
OPP
Strong Global Brand Portfolio
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Continuous Product Innovation
Maintains our Leading Market Position
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• 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:
• Transport Research Laboratory (TRL) developed new crash test dummy Q10 in cooperation with Dorel
Global Leadership in Child Safety and Regulation
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The European
Future of Child Safety
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DEU Introduces 2 Way Family
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• 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 • Targeted Mobile Advertising for Prezi Launch
• Fit Pregnancy Eblast to deploy 9/27 to more than 200,000 subscribers
• Fit Pregnancy to add to their Fall Buyer’s Guide
Prezi – USA Superior Side Impact Performance
30 Before After
“ Government of Canada Introduces Toughest-Ever Testing Standards for
Child Car Seats”
2013 Canadian CRS Development
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• 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!
BoostApak On the Go Convenience
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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
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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
Natural Comfort Launched in Europe
* Life Cycle assessment approved by external agency
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Global Life Cycle Management
February 2013 Cologne 2014
Zapp Xtra Zapp Xtra 2.0 Folding seat
Zapp Xtra 3.0 Redesign
Cologne 2010
Zapp
2004
Keep improving Quinny Zapp Xtra and continue generating revenues
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Brand Communication to Strengthen and
Support our Global Brands
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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-length posts by People.com, mom media powerhouse Babble blog
and the South Florida Sun Sentinel fashion editor
Total Media Impressions to Date: 57,641,591
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New Global Quinny Website
• Matches brand values - gutsy, dynamic and conscious
• Increase awareness and conversion
• Introduction: International - Cologne, Local – October ‘12
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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!
Air Protect Brand Awareness Campaign
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Channel
Expansion and
Market
Development
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Dorel Juvenile Geographic Sales
45%
39%
3%
7% 4% 2%
2011
43%
41%
3% 7% 4% 3% 0
2010
39%
37%
9%
6% 4% 4%
2012 YTD
Europe
USA
Brazil/Chile
Canada
Australia
Other
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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 Child Restraint Systems in these markets
• Safety 1st remains the dominant home safety and infant health brand in North America
• DJG USA’s product/ brand portfolio leads in 3 of North
Americas top mass retailers
DJG USA Turnaround Plan
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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 economy – Unprecedented regulatory oversight and government
intervention
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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
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DJG USA - Strategic themes
1) Product innovation and brand focus
2) Revenue growth and customer profitability
3) Cost reduction
4) Reorganization and people alignment
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DJG USA
Update
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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
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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)
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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
• Strong brands, product innovation and local product development in CRS is the driving force behind our future growth primarily in the Independent sector.
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Improved Shop in Shop Experience Across the Globe
French Award winning approach!
Canada
China
USA
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Successful Introduction in Korea
“Travel First Class” with Quinny
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Strategic Acquisitions
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 rate in key markets like Mexico, Colombia, Brazil,
Chile • Developing retail landscape allowing for brand and product
penetration with adequate segmentation 54
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 capabilities
• Assemble a strong talent pool that can lead and execute Dorel's
strategic vision
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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 Infanti brand to which Dorel already owns the rights in Chile, Bolivia, Peru and Argentina
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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
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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 Latin America
• Appetite for strategic acquisitions
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