DorelHomeFurnishings

NormanBraunstein President,DorelHomeFurnishings

Ourvision:Tobetheproduct,innovation,andvolumemarketleadersinthesupplyofHomeFurnishingstothemajorNorthAmericanretailers

Fiveindividualbusinessunits Greatproductdiversity Currentlytakeadvantageofsharedservicestoreducecostand

increaseefficiencywithinIT,SG&A,supplychainanddistribution

2

Todaysagenda

Overviewofthefurnitureindustryy DorelHomeFurnishingsDivisions

CoscoHomeandOfficeA i d Ameriwood

Altra DHP DorelAsia

ECommerceC l i Conclusion

$

3

Note:amountsareinUS$

OverviewofUSFurnitureMarket

Aft t f d li th US f it k t 4% i 2010 d Aftertwoyearsofdecline,theUSfurnituremarketgrew4%in2010and2.4%in2011.

Furniture demand is strongly tied to new home and home sale increases.Furnituredemandisstronglytiedtonewhomeandhomesaleincreases.BothofthesedatapointshavebeenfairlystagnantintheUS.,butarenowshowingsignsofimprovement.

Upholsteryisexpectedtobethefastestgrowingsegmentashomeownersinvestintheirhomes.Bedroomisthelargestsegment.

Furniture stores continue to be the largest sales channel however non Furniturestorescontinuetobethelargestsaleschannel,howevernontraditionalchannelssuchasInternetandmassmerchantsaregrowingatamuchfasterrate.

Walmart,includingSamsClub,isUSslargestfurnitureretailer.

Ashley(furniturestore),Walmart (massmerchant)andIKEA(specialty)arethethreelargestretailersoffurniture.

4

$ValueofUSHomeFurnitureSales

Afteradeclinein2008and2009thefurnituremarkethasshowngrowthin2010and2011.Furnitureisexpectedtogrowby18%from2011to2016.

$80.0$90.0$100.0

y

($billions)

$30 0$40.0$50.0$60.0$70.0$80.0

ReasonsforIndustryGrowth ImprovedhousingmarketLifestyle changes

$0.0$10.0$20.0$30.0 Lifestylechanges

HispanicpurchasingpowerReplacementofwornitems

Source:MintelIntl.Group,October2011&August2012

5

Wheredopeoplebuyfurniture?

70 20042007

DorelHFsalesviaInternetpresentsabigopportunity

DorelwellpositionedTotakeadvantagein

40

50

60e

n

t

2007

2011thesethreecategories

20

30

P

e

r

c

e

0

10

Internet Furniture Mass Home* Club Departmenttstore

Basedonasurveyof1000peoplewhohaveboughtfurnitureinthelastyear *Nodatafor2004

Source:MintelIntl.Group,October2011

6

USDistributionofRetailFurniturePeople are buying furniture outside of the traditional channelsPeoplearebuyingfurnitureoutsideofthetraditionalchannels

$20

$30

$40

$50

20082009

(inbillions)

$0

$10

$20

FurnitureStores MassMerc. AllOther*

20102011

* AllotherincludesInternet,catalogue,officesuperstores,homecentersandspecialtystores

Source:MintelIntl.Group,October2011

7

HaveyouPurchasedFurnitureinthelast24months?

40%

60%

AgeofFurnitureBuyer

40%60%

IncomeofFurnitureBuyer

0%

20%

40%

0%20%

Furniture Buying by

40%

60%

FurnitureBuyingbyEthnicity

0%

20%

40%

Caucasian African Asian Hispanic Other

Source:MintelIntl.Group,August2012

Caucasian AfricanAmerican

Asian Hispanic Other

8

LeadingUSFurnitureRetailers2011

$3.0(inbillions)

$1 5

$2.0

$2.5

$0.5

$1.0

$1.5

$0.0

=CurrentDorelHFCustomerSource:FurnitureToday,Aug2012

9

ManufacturerSalesofFurnitureintotheUS20092010

$

$3.5(inbillions)

$

$2.0

$2.5

$3.0

$0 0

$0.5

$1.0

$1.5 2009

2010

$0.0

Source:FurnitureToday:November,2011

10

DorelHomeFurnishings

11

DorelHomeFurnishingsSources

Canada26%26%

Import50%

US24%

50%

Doreliswell positionedtocapitalizeonthegrowthofimportedfurniturewhilehavingasubstantialNorthAmericanpresenceinRTAandlowcostfutonmanufacturing.g

12

HomeFurnishingsSegmentAsiaOperations

Asia:

InvestmentinonthegroundresourcesProductDevelopmentEngineeringQualityControlOrder Flow and LogisticsOrderFlowandLogisticsSourcing60Employees

Kunshan

Xiamen

DongguanHoChiMinh

13

HomeFurnishingsGeographicStrategy

Canada ReorganizedourCanadianHomeFurnishingsorganizationin

2009

Substantialgrowthinthelastthreeyears SellproductfromallDorelHomeFurnishingsdivisions TargetCanadaopportunity

ExploringsalesopportunitiesoutsideNorthAmerica SouthAmerica/CentralAmerica Europe Australia/NewZealand China

14

LargeBreadthofProductCategoryDivision Ameriwood Altra DHP DorelAsia Cosco

Folding Steel/woodg /

Step Stools\Ladders Steel/alum.

Bedroom RTA RTA Metal Wood/Metal

Office RTA RTAWood

Storage RTA RTAStorage RTA RTA

Entertainment RTA RTAWood

HollowCoreAccents

Futons Metal\woodUpholsteredUpholstered

Sofas Fabric\PULeather

Upholstery Fabric\PULeather

Commercial RTA BlowMold

Dinning Wood\metal\Glass

Mattresses Coil\Foam\Fiber

15

CoscoHome&Office

Location Columbus,IN, Imports foldingfurniture,stepstools,handtrucksand

specialtyladders

Importdistributionfacilities Ontario,CaliforniaandSavannah,Georgia

Main customers Mass merchants clubs home centersMaincustomers Massmerchants,clubs,homecenters,commercialofficesuppliers,hardwarechains

16

FoldingFurniture:

17

FoldingFurnitureMarketldi f i i $ kFolding furniture is a $465M market averaging 3% historical growth

3

0

0

500(in millions)

$

3

6

7

.

5

$

3

8

5

.

9

$

4

0

5

.

2

$

4

2

1

.

4

$

4

4

0

.

5

$

4

6

0

.

3

$

4

8

1

.

0

$

4

5

1

.

0

$

4

6

5

.

0

200300400

0100

0

0

2

0

0

3

0

0

4

0

0

5

0

0

6

0

0

7

0

0

8

0

0

9

0

1

0

2

0

2

0

2

0

2

0

2

0

2

0

2

0

2

0

2

0

Source:2010HomeWorldBusinessandCoscoHomeandOffice

Coscohasa40%shareatretail

18

StepStoolsandLadders:

19

StepStoolMarket

Retail Dollar Sales of Step Stools (inmillions)

200

250

167178 187

199211

179164 166

150

167 164 166

50

100

Source: 2010 HomeWorld Business and

02004 2005 2006 2007 2008 2009 2010 2011

Source:2010HomeWorldBusinessandCoscoHomeandOffice

20

ProductLineExpansions::

21

Ameriwood

Location Wright City MO Location WrightCity,MO DomesticmanufacturerofRTA.Maincategoriesinclude

homeoffice,entertainment,bedroom,garageandmultipurposestorage

Manufacturinganddistributionfacilities Cornwall,ON,Tiffin OH and Dowagiac MITiffin,OHandDowagiac,MI

Maincustomers massmerchants,homecenters,officesuperstores

22

$SalesofReadytoAssembleFurniture

Consumer spending on RTA furniture ended the year 5% ahead of last year, totaling over $3.3 billion in 2011

$3,000,000

$3,500,000

$4,000,000(Dollars - Thousands)

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$0

$500,000

$1,000,000

, ,

2007 2008 2009 2010 2011

Dollars 3,456,555 3,203,928 3,354,260 3,175,330 3,338,479

2007 2008 2009 2010 2011

Source:KeyStatMarketing,Q42011

23

WhichoftheFollowingistheMostImportantFactortoYouWhenPurchasingRTAFurniture?

Style/Color,10.40%

Brand,1.40%

Quality/Perf.,28.40%

EaseofAssembly,12 80%12.80%

MadefromSolid

Price,26.30%

Wood,20.80%

Source:KeyStatMarketing,Q42011

24

MarketShareofRTAFurnitureSoldInUSA

MarketShareQ42011

17% IKEA

Dorel

9%

53%

Dorel

Walmart

Sauder

h8%

7%

53% Bush

Target

Other

2%1%

Source:KeyStatMarketing,Q42011

25

RTAStorage:Ameriwood

26

RTABedroom/Office:Ameriwood

27

DorelhastheAdvantageofDomesticallyProducedRTA

Ameriwood,throughitsdomesticmanufacturingfacilities,isasignificantsourceofcashgenerationandrevenueforDorelHomeFurnishingsFurnishings.

Ameriwoodoperatesthreehighlyefficient/lowCAPEXmanufacturinganddistributionfacilities

Cornwall ON Cornwall,ON Tiffin,OH Dowagiac,MI

Retailersrecognizetheadvantagesofdomesticproduction Shorterleadtimes Reducedinventorycosts Reducedfreightcosts

Morestablecostenvironmentcomparedtoimport MadeinNorthAmerica

28

AltraFurniture

Location WrightCity,MOg y, ImporterofRTAwithconcentrationinhomeentertainment,

homeoffice,commercialoffice,andstoragefurniture

Importerofcasepiecesforhomeofficeandhomeentertainment

Import distribution facilities Ontario California andImportdistributionfacilities Ontario,CaliforniaandSavannah,Georgia

Maincustomers massmerchants,officesuperstores,homeentertainmentsuperstores,clubs

29

RTA ReadytoAssemble:Altra

30

CasePieces:Altra

31

RTA/BacktoCollege:Altra

32

DorelHomeProducts

Location Montreal,QC Manufacturerandimporteroffutons,mattresses,baby

mattresses

Importer of futons accent tables leisure seating and metal Importeroffutons,accenttables,leisureseatingandmetalbunkandloftbeds

Importdistributionfacility Ontario,California,Savannah,Georgia

Domesticdistributionfacility Montreal,QCM i t h t di t h i I t t Maincustomers massmerchants,discountchains,Internet

33

Futons

MassRetailersandClubs

Source:InternalAnalysis,2012

34

Futons:DHP

35

Mattresses:DHP

36

MattressSalesStartingtoRebound

$

$17

s

SalesofMattresses&OtherSleepEnvironments

$14

$15

$16e

s

$

b

i

l

l

i

o

n

s

Environments

l$12

$13

$14

a

t

t

r

e

s

s

S

a

l

e

$3$10

$16 $19DorelMattressSales$millions

$10

$11

$12

U

S

M

a

$102007 2008 2009 2010 2011 2012est

Source:MintelInternational,Oct2011&Internal

37

38

MetalBunkBeds:DHP

39

DorelAsia

ImporterUpholstery Upholstery

Bedroom Dining and KitchenDiningandKitchen Youth Accent

Importdistributionfacility Ontario,California,Savannah,

GeorgiaGeorgia

Maincustomers massmerchants,clubs,Internet

40

Upholstery:DorelAsia

41

BedroomFurniture:DorelAsia

42

Dining/Accent:DorelAsia

43

ECommerce Onlineresearchnowveryimportantforcomparisonshopping FreeShipsightsorfreepickupatstoredrivingonline

purchasespurchases

Importanceofonlinereviewsinbuyingdecision Physicalfootprintoffurnitureatbrickandmortarretailersis

d l ldrivingonlinelineextensions

Abilitytousevideoandanimationwillallowforincreasesonline

2/3rdsofconsumersstillwanttotouchandfeelfurniturebeforepurchase,especiallyatthehigherend

Youngerconsumersincreasinglylikelytobuyonline

44

GrowthofDorelHFOnlineBusiness

$100

$millions

$70

$80

$90

$50

$60

$70

$ USD

$20

$30

$40$USD

$0

$10

$20

2009 2010 2011 2012*2009 2010 2011 2012* *Projected

45

HomeFurnishingsOnlineStrategy

Todelivertothefrontdooroftheconsumerthebestvalueinfurniture

Newonlinedistributionf lfacilityinSavannah,Georgia

ExistingWestCoastDistribution

46

OnlineAllowsProductExtensionsBeyondtheInstorePurchase

47

OnlineAllowsProductExtensionsBeyondtheInstorePurchase

InstoreNolanItematTarget

NolanExtensionsofferedonTarget.com

48

OnlineAllowsProductExtensionsBeyondtheInstorePurchase

InstoredeskatOfficeDepot

LineextensionsatOfficedepot.com

49

HomeFurnishingsConsolidatedFinancials(in thousands)

H F i hi 2007(1) 2008(1) 2009(1) 2010 2011

(inthousands)

HomeFurnishings 2007(1) 2008(1) 2009(1) 2010 2011

Sales $422,244 $451,545 $463,734 $507,790 $522,278

( ) $ $ $ $ $GrossProfit(2) $56,070 $50,915 $77,308 $69,083 $65,589

OperatingProfit $10,083 $7,964 $36,696 $34,587 $29,251

(1)Financialinformationfor2007,2008and2009hasbeenpreparedinaccordancewithCanadianGAAP.

(2)SincethefiscalyearendedDecember30,2009,theCompanyhasappliedCICAsection3031Inventoriesandaccordingly,depreciationexpenserelatedtomanufacturingactivitiesisincludedincostofsales starting in 2008

50

salesstartingin2008.

DorelPoisedforTurnaroundinHousing

700

800$463

$508 $522

Dorel Sales

500

600

700a

l

e

s

(

0

0

0

s

)

$422 $428DorelSales$millions

300

400

w

H

o

m

e

S

a

0

100

200

U

S

N

e

w

02007 2008 2009 2010 2011

51

ComparisontoFurnitureIndustry

50%

60%

SGA%ofRevenue

30%

40%

10%

20%2009

2010

2011

0% LaZB

Ethan

FBI

Hooke

Stanle

Flexst

Besta

Steelc

Basse

Natuz

DorelBoy

nAllen

er

ey

teel

r case

ett

zzi HF

52

ComparisontoFurnitureIndustry

5%

10%OperatingReturnonRevenue

5%

0% LaZBo

EthanA

FBI

Hooke r

Stanley

Flexstee

Bestar

Steelca

Basset t

Natuzzi

DorelH

15%

10%

oy

Allen

r y el

se

t i HF

2009

2010

2011

25%

20%

35%

30%

53

TheNextThreeYears

ContinuetogeneratesignificantcashflowforDorelIndustries Revenuegrowththroughthedevelopmentofvalue oriented,

ell designed prod ctwelldesignedproduct

Increasedpenetration:additionalcustomersandchannelsStrongefforttoincreaseonlinesales

Possibleconsolidationofdivisionstoincreaseprofitability,efficienciesandeffectivenessinproductdevelopment,sourcing,andcustomerpresentations

Possibleacquisitionsinordertodriverevenue,expandourproductline,orenableverticalintegration

Continuedfocusonbottomlineprofitabilitywhileincreasingd lrevenueandreturnoncapital

54

InConclusion:TheDorelAdvantage

Diversification Domesticmanufacturingandimportdistributionfootprint Industryleadersinfoldingfurniture,stepstools,futons,and

amongtheleadersinRTA

CustomerBase:Focusonbigboxretailers fastestgrowingfurnituresegment.Provideproduct,sourcing,andlogisticsexpertise

Takingadvantageofconsumertrends Potentialtoleveragecrossdivisionalsynergiesthrough

administrative,distribution,andsales/marketingconsolidation

Strongdivisionalmanagementteamg g Corporatestrength

THANKYOU.....ANYQUESTIONS?55