Dorel Industries Ord Shs Class A T.DII.B

Estimated Residual Value of Dorel Ex Sports

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These are presented below, with Q1-Q3 financials annualized to 4 quarters.

Financial/ interest costs were $30 m USD in the first 3 quarters which is an annulized cost of $45 m USD.
I assume that part of the cash from Sports sale will pay off 75 % of the interest debt, hence my interest savings of $30 million USD which converts to free cash flow in 2022 .

I have ignored any savings in 2022 from 2021 restructuring or any gains in efficiency from those savings including consolidating operations by foreign plant closues.

I have alse ignored any gains from the acquisition of NOTIO which has $13.5 m USD in sales and earnings of $1.5 m USD and which will increase sales and reduce costs for EU sales market.

The value I get from using the OP Earning P/E for Sports ( 7.4 ) applied to 2021 Op Earnings ( as annulaized ) is $665 million USD which is $825 milion in CAD.

This valuation for the two remaining divisions.......excluding the much higher Price to sales ( $1.2 billion USD.........amounts to about  $25  CAD per share.

Undoubtedly, given any consideration for future gains in efficiency and sales and including some consideration for sales Volume in any subsequent sale, my simple estimates of residual value for Hiome and Juvenlie are not much diffferent that the $30-$31 per share of SA and TD





All Values in USD

	Home ( H )	Juvenile ( J )	Sport	( H + J ) X4/3	Sport ( S) X4/3
Q1-Q3 Sales	$683 m	$640 m	$892 m	$1.77  B	$1.19 B
Gross Profit	12.5%	25.0%	23.3%	19.4%	23.3%
Q1-Q3 Op Prof	$36.0 m	$ 8.9 m	$74.40	$60 m	$99.00
Interest Gains				$30 m	$0.0m
Adj OP Profit				$90 m	$99.0 m
Acquired P/ OP					7.4
Acquired Price				( $665 m )	$810 m
Acquired P/S					0.675
Acquired Price				( $1.20 B )