fourth quarter - dorel• unique cocoon stroller to use from birth up to approximately 3.5 years....

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Ended December 30, 2018

Fourth Quarter

Forward-Looking Statement

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Except for historical information provided herein, this presentation may contain information andstatements of a forward-looking nature concerning the future performance of Dorel Industries Inc.These statements are based on assumptions and uncertainties as well as on management's bestpossible evaluation of future events. The business of the Company and these forward-lookingstatements are subject to a number of risks and uncertainties that could cause actual results to differfrom expected results. Important factors which could cause such differences may include, withoutexcluding other considerations, general economic conditions; changes in product costs and supplychannels; foreign currency fluctuations; customer and credit risk, including the risk resulting from theliquidation and reorganization of Toys“R”Us referred to in this presentation and the concentration ofrevenues with a small number of customers; costs associated with product liability; changes in incometax legislation or the interpretation or application of those rules; the continued ability to developproducts and support brand names; changes in the regulatory environment; continued access to capitalresources, including compliance with covenants, and the related costs of borrowing; debt refinancing;failure related to information technology systems; changes in assumptions in the valuation of goodwilland other intangible assets and future decline in market capitalization; and there being no certainty thatDorel’s current dividend policy will be maintained. A description of the above mentioned items andcertain additional risk factors are discussed in the Company’s Annual MD&A and Annual InformationForm, filed with the Canadian securities regulatory authorities. The risk factors outlined in thepreviously mentioned documents are specifically incorporated herein by reference. The Company’sbusiness, financial condition, or operating results could be materially adversely affected if any of theserisks and uncertainties were to materialize. Given these risks and uncertainties, investors should notplace undue reliance on forward-looking statements as a prediction of actual results.

Note: All figures are in US dollars.

Non-GAAP Financial Measures

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As a result of impairment losses on goodwill, intangible assets and property,plant and equipment, restructuring and other costs, remeasurement offorward purchase agreement liabilities and loss on early extinguishment oflong-term debt incurred in 2018 and 2017, the Company is including in thisinvestor presentation the following non-GAAP financial measures: “adjustedgross profit”, “adjusted operating profit”, “adjusted tax rate”, “adjusted netincome” and “adjusted earnings per diluted share”. The Company believesthat this results in a more meaningful comparison of its core businessperformance between the periods presented. These non-GAAP financialmeasures do not have a standardized meaning prescribed by GAAP andtherefore are unlikely to be comparable to similar measures presented byother issuers. Reconciliations of these non-GAAP financial measures to themost directly comparable financial measures calculated in accordance withGAAP are included in the MD&A for the fourth quarter and twelve monthsended December 30, 2018.

Overview

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• 3 business segments

• Dorel Home (2018 revenue - $804 million)

• Dorel Juvenile (2018 revenue - $932 million)

• Dorel Sports (2018 revenue - $883 million)

• $2.6 billion in sales annually

• Approximately 9,200 employees

• Sales to 100+ countries

• Facilities located in 25 countries

TSX: DII.B DII.A

Overview

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(in thousands, other than EPS) 2018 2017(1)

Total revenue $ 683,546 $ 677,052

Net loss $ (443,898) $ (6,134)

Adjusted net income $ 10,298 $ 17,268

EPS (diluted) $ (13.68) $ (0.19)

Adjusted EPS (diluted) $ 0.31 $ 0.53

(1) The Company has initially applied IFRS 15 and IFRS 9 as at December 31, 2017. Under thetransition methods chosen, comparative information is not restated.

Fourth Quarters ended December 30

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(in thousands) 2018 2017(1)

Total revenue $ 209,262 $ 200,975

Gross profit $ 33,460 $ 38,698

Operating profit $ 17,495 $ 21,064

Adjusted operating profit $ 17,747 $ 21,064

(1) The Company has initially applied IFRS 15 and IFRS 9 as at December 31, 2017. Under the transition methods chosen, comparative information is not restated.

Q4 Highlights

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Revenue increased despite certain customers cancelling orders in response toU.S. tariffs being imposed in the second half of the year.

E-commerce sales represented a record 59% of total segment gross sales. Brick and mortar sales experienced a slight improvement, aided by new business

for Cosco Home & Office at a major DIY chain. Branded-product sales of Novogratz and Little Seeds were up substantially year-

over-year and sales for the new Cosmo Living business experienced a decentstart .

Gross profit declined 330 basis points. A major component of the margin declinewas the potential impact of further U.S. tariffs on Chinese-sourced productexpected January 1, 2019. Purchases were accelerated into 2018, creating highertransportation costs, higher inventories and increased warehousing and otheroverhead costs. Product mix was also less favourable with a higher proportion oflower margin product sales. Operational costs to support e-commerce growthwere also higher than prior year.

As a result operating profit was down $3.6 million, or 16.9%.

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Total revenue $ 241,598 $ 239,306

Gross profit $ 61,426 $ 70,645

Adjusted gross profit $ 61,978 $ 70,926

Operating loss $ (265,752) $ (14,305)



Q4 Highlights

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Organic revenue improved 4.1% excluding the impact of FX rate changes year-over-year.

The revenue growth trend in 2018 continued in the U.S. and Brazil, partiallyoffset by declines in Dorel Juvenile’s other markets. The most notable salesshortfall was in Chile as revenue declined significantly due to a difficult holidayseason and the right-sizing of both its retail footprint and product offerings.

Despite increasing slightly from Q3 levels, lower gross margins continue to bethe major driver of depressed adjusted operating profit for the segment. Goingforward, price increases currently in place and the introduction of newproducts are expected to continue the upward trend in gross margins and thistrend should gradually improve in 2019.

New senior management changes at Dorel Europe were implemented inJanuary.

Dorel Juvenile USA - Innovation

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Maxi-Cosi Magellan

• One premium car seat which combines 10 years of safety, comfort and adventure.

• 5-in-1 seating system for children from 5 - 120 lbs, designed to grow with children from birth to 10 years.

• The only convertible car seat equipped with Maxi-Cosi’s patented Adjustable Side Impact Protection.

Dorel Juvenile Europe - Innovation

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Maxi-Cosi Lila

• Unique cocoon stroller to use from birth up to approximately 3.5 years.

• Ergonomic memory foam ‘ShapeOfYou’ inlay for newborns, designed in collaboration with pediatricians.

• Easy one-hand folding which brings a new level of comfort to parents.

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Total revenue $ 232,686 $ 236,771

Gross profit $ 48,161 $ 52,105

Adjusted gross profit $ 48,096 $ 51,386

Operating profit (loss) $ (232,084) $ 6,545




Q4 Highlights

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Cycling Sports Group posted double-digit organic revenue growth andsignificant operating profit improvement, mainly from growth in Europeand in the U.S. sporting goods channel due to innovation in model-year2019 products.

In Brazil, Caloi also delivered double-digit sales and operating profit growthin Brazilian Reals, driven by a stronger mix of products, success with their29-inch mountain bikes as well as with the Cannondale line.

Pacific Cycle revenue and gross profit both dropped due to weaker thanexpected mass channel holiday POS on bikes and interactive batterypowered ride-ons, as well as by retailer inventory reductions.

The miss in the quarter was primarily due to the slowdown in bicycle salesacross the board at Pacific Cycle as well as by the unexpected fourthquarter impairment loss on trade accounts receivable of $2.1 million asEvans Cycles entered administration in the UK.

Recent Cannondale Introductions

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Moterra

SynapseQuick

Recent Pacific-Cycle Introductions

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Schwinn Koen and Elm

CAT Dump Truck

Dorel Sports – 3 Divisions

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1) Cycling Sports Group (CSG)

• IBD Division.

• Premium Brands.

• Innovation – continuing focus


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2) Pacific Cycle

• Mass merchants/sporting goods channel.

• Full service provider – bikes and parts & accessories.

• Brand building has enhanced Schwinn/Mongooseawareness.

• Electric ride-on toys.


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3) Caloi

• Largest bicycle brand in LATAM and leader in Brazilian market.

• Portfolio includes full range of bicycles, from high-performance to children’s mountain bikes, urban, recreational and road bikes.

• Caloi’s factory in Manaus is largest bicycle manufacturing plant outside Southeast Asia.

• Brazil is a Dorel production hub, assembling Caloi, Cannondale, Schwinn, Mongoose & GT brand bicycles for local and export markets.

Other

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Taxes

During the fourth quarter and year ended December 30, 2018, the Company’s

effective tax rates were 10.1% and 10.8%, respectively versus (184.1%) and

37.9% for the same periods in the prior year. Excluding income taxes on

impairment losses on goodwill, intangible assets and property, plant and

equipment, as well as restructuring and other costs, the Company’s fourth

quarter adjusted tax rate was 9.7% in 2018 and 19.6% in 2017. Excluding income

taxes on impairment losses on goodwill, intangible assets and property, plant

and equipment, restructuring and other costs, remeasurement of forward

purchase agreement liabilities and loss on early extinguishment of long-term

debt, the adjusted tax rate for the year was 14.8% in 2018 versus 22.7% in 2017.

Variations in the adjusted tax rate year-over-year for the fourth quarter and full

year are explained largely due to changes in the jurisdictions in which the

Company generated its income, including the impact related to the U.S. Tax

Reform signed into law on December 22, 2017, effective as of January 1, 2018.

Other

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Long-Term Debt UpdateDorel is currently reviewing its refinancing options with its financial advisors andwill pursue what it believes to be the best alternative. In this regard, Dorel is in theprocess of refinancing its $120.0 million convertible debentures maturing onNovember 30, 2019, although there can be no assurance that it will be able tosuccessfully complete such refinancing. On March 8, 2019, Dorel amended itsrevolving bank loans and term loan agreement to facilitate the compliance with itscovenants in light of the last twelve months’ results of operations, and to permitadditional financing from other lenders to refinance and repay the convertibledebentures. The amendment also extends the maturity date to July 1, 2021 if theconvertible debentures are repaid or refinanced by May 30, 2019. If the convertibledebentures have not been repaid or refinanced, the maturity remains on May 30,2019. Given the convertible debentures are not yet repaid or refinanced, as such,the convertible debentures, the revolving bank loans and term loan were allclassified as current as at December 30, 2018.

Other

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Quarterly Dividend

Dorel’s Board of Directors declared a revised quarterly dividend of $0.15 per share

on the outstanding number of the Company’s Class “A” Multiple Voting Shares,

Class “B” Subordinate Voting Shares, Deferred Share Units, cash-settled Restricted

Share Units and cash-settled Performance Share Units. The dividend is payable on

April 11, 2019 to shareholders of record as at the close of business on March 28,

2019.

The reduction in the dividend will allow Dorel to retain approximately $19.5 million

annually in cash, which will be used to enhance Dorel’s financial position and give us

additional flexibility to enhance long-term value. The Board of Directors will

continue to assess potential future dividend levels on a quarterly basis.

Other

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Impairment Losses on Goodwill, Intangible Assets and Property, Plant andEquipmentA sustained decline in Dorel’s stock price during 2018 has caused Dorel’s marketcapitalization to be significantly lower than the carrying value of its net assets andas such the Company has recorded total impairment losses on goodwill, intangibleassets and property, plant and equipment of $501.4 million during the fourthquarter of 2018, of which $264.2 million was within Dorel Juvenile and$237.2 million was within Dorel Sports.

Other

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Impairment loss recorded on Toys“R”Us’ trade accounts receivableOn March 15, 2018, Toys“R”Us, Inc. (“Toys“R”Us”), one of the Company’s customers,announced that it had filed a motion seeking Bankruptcy Court approval to begin the processof conducting an orderly wind-down of its U.S. business and liquidation of inventory in all ofits U.S. stores. In August 2018, the Bankruptcy Court approved the Toys“R”Us settlementagreement with its creditors and lenders. As part of the settlement agreement reached, theCompany received approximately 22 cents on the dollar. Considering these events, theCompany had determined that the trade accounts receivable from this customer were at riskof collection. Accordingly, the Company recorded an impairment loss of $3.8 million for theyear ended December 30, 2017 and an additional $12.5 million for the year ended December30, 2018 with respect to these trade accounts receivable from Toys“R”Us U.S. Of the$12.5 million, $2.1 million (fourth quarter ended December 30, 2017 – nil) was within DorelHome, $3.8 million (fourth quarter ended December 30, 2017 – $0.7 million) was withinDorel Juvenile and $6.6 million (fourth quarter ended December 30, 2017 – $3.1 million) waswithin Dorel Sports. These amounts represented management’s best estimate of potentiallosses arising from non-payment based on information available at that time. As at December30, 2018, $4.6 million was received under the settlement agreement and in total, Dorel had aremaining balance of trade accounts receivable from Toys“R”Us U.S. amounting to$0.3 million (net of impairment loss allowance).

Outlook

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Dorel Home:Dorel Home is expected to deliver revenue and adjusted operating profitimprovements in 2019 led by continued growth in e-commerce sales asconsumers become more accustomed to purchasing furniture on-line.Dorel Home’s expansion of key product brands — including Little Seeds,Novogratz, and Cosmo Living — is expected to drive revenue growthacross various categories, while the recent acquisition of UK-basedAlphason should boost adjusted operating profit by the second half of2019. While tariffs in the home furnishings segment are not expected toimpact sales or adjusted operating profit in 2019, we remain watchful onthe effects of expected anti-dumping duties on mattresses made in Chinaand its impact on costs.

Outlook

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Dorel Juvenile:Improvement is anticipated in adjusted operating profit for Dorel Juvenilein 2019, buoyed by growth in sales in the majority of our markets. In NorthAmerica and Europe, we expect mid-single digit revenue increases andimproved adjusted gross profit on the strength of our new productintroductions and our market-leading brands. As in 2018, in Latin Americawe expect continued growth in Brazil, Peru and Mexico, while a focussedproduct line and a more rationalized cost base is expected to improveadjusted operating profit in Chile. Finally, we expect that Dorel JuvenileChina will be a positive contributor to earnings improvement in 2019. FXfluctuations remain a risk to earnings in 2019. Should the US dollarstrengthen significantly from current levels against other currencies,principally the Euro and RMB, Dorel Juvenile’s adjusted operating profitexpectations for 2019 may be dampened.

Outlook

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Dorel Sports:A rebound in profits is forecast for Dorel Sports in 2019 with revenueexpected to grow in the mid-single digits driven by price increases relatedto tariffs passed on to consumers at Pacific Cycle and volume and marketshare growth in CSG and Caloi. Improved adjusted operating profit isforecast at CSG and Caloi throughout 2019. CSG growth will be driven byrecent restructuring efforts and new product innovations particularly inthe expanding e-bike category. At Caloi, we project increased sales with itsexpansion into the OPP segment and OEM manufacturing for retail andbike share programs. Revenue and adjusted operating profit improvementat Pacific Cycle is expected mostly in H2, based on the rapidly growing e-commerce channel, new customer distribution points and an expandedproduct line. This includes a broadened line of electric ride-ons andentering adjacent categories, such as scooters.

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APPENDIX

Financial Performance 5 Years Reported

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(In thousands of U.S. dollars, except per share data)

* The Company has initially applied IFRS 15 and IFRS 9 as at December 31, 2017. Under the transition methods chosen, comparative information is not restated.

Financial Performance 5 YearsAdjusted*

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(In thousands of U.S. dollars, except per share data)

* The Company is presenting adjusted financial information in this 5-year financial performance table, excluding impairment losses on goodwill, intangible assetsand property, plant and equipment, restructuring and other costs, remeasurement of forward purchase agreement liabilities and loss on early extinguishmentof long-term debt, as it believes this provides a more meaningful comparison of its core business performance between the years presented. For additionalinformation regarding the specific items and non-GAAP financial measures, please refer to the section "operating results: non-GAAP financial measures" in theManagement Discussion and Analysis for the quarters and the years ended December 30, 2018, 2017, 2016, 2015 and 2014.

** The Company has initially applied IFRS 15 and IFRS 9 as at December 31, 2017. Under the transition methods chosen, comparative information is not restated.

Growth Through Acquisitions

• 1988 Cosco Inc (DJG)

• 1990 Charleswood Corporation

• 1994 Maxi-Miliaan B.V. (Maxi-Cosi)

• 1998 Ameriwood Industries

• 2000 Safety 1st Inc.

• 2001 Quint B.V. (Quinny)

• 2003 Ampa France (Dorel Europe)

• 2004 Pacific Cycle

• 2007 IGC Australia

• 2008 Cannondale/SUGOI (SUGOI was divested of in Q2 2018)

• 2008 PTI Sports

• 2009 Baby Art

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Growth Through Acquisitions

• 2009 Dorel Brazil

• 2009 Iron Horse Bicycles

• 2009 Gemini Bicycles (Australia)

• 2009 Hot Wheels, Circle Bikes (UK)

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

• 2012 Poltrade (Poland)

• 2012 Best Brands Group SA (Panama) and Baby Universe SAS(Colombia) – 70% interest

• 2013 Caloi (Brazil)

• 2014 Tiny Love Ltd. (Israel)

• 2014 Right to sell Infanti brand in Brazilian market

• 2014 Juvenile business of Lerado Group (Hong Kong)

• 2014 Intercycles (Chile)

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Total Revenue by Segment

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2018 2017

36%

33%

31%35%

34%

31%

DOREL JUVENILE DOREL SPORTS DOREL HOME

Geographical Distribution of Total Revenue

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2018 2017

60%

4%

21%

3%10% 2%

61%

4%

21%

2%10% 2%

US Canada Europe Other Latin America Asia

Sustainability Philosophy

• Active in sustainability on several fronts throughout all three segments.

• Dorel Home Products facility is FSC certified.

• Cornwall RTA plant recycling for 10 years.

• 98% of materials are recycled or sold.

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

• Strict policy in place to ensure sustainable business practices of suppliers.

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fourth quarter - dorel• unique cocoon stroller to use from birth up to approximately 3.5 years....

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