toy industry overview

Toy Industry Overview – Annual 2007April 2008

Housekeeping

Presentation (1:15) + Q&A (:45) Syndicated Presentation Two documents – category structure & evaluation Digital Copy of the Deck The NPD Group / Consumer Tracking Service

– Recalls and returns not accounted for

Data presented is as of January 2008 data release Per National Retail Federation, 2007 has an extra week

v. 2006 Product images are representative of the property

Agenda

Toy Industry Overview Toy Categories Boys and Girls Retailers Licensing Kids

Toy Industry Overview

The Big Picture

$22.5 $22.6$22.2

2005 2006 2007

3.3

3.13.0

2005 2006 2007

Billions of Dollars Billions of Units

-2.0%+0.4%

- 5.0% - 4.1%

ARP: $7.45 +2%

Source: The NPD Group / Consumer Tracking Service

A Bumpy Road For Toys…

Toy Recalls Shaky economy

– Toys are discretionary– Toys used to shelter children

Competition for Kids’ time is fierce– Digital Kids (consumer electronics, online activities, virtual worlds)– Outrageous +43% growth in Video Games

Girls’ toys not performing well– Declines in Barbie, Bratz and Dora– Lack of new movie/TV licenses for girls

The Good News For Toys…

Consumers continue to pay higher prices for toys Several segments grew

– Online channel (+9%)– Grandfathers (+33%)– Boys Ages 0-8 (+5%)– Connected Web Play (+>200%)

Higher birth rates continue (+6%) U.S. HH penetration for toys is high (>90%) Europe is growing (+2%)

Big 5 European Countries Combined Grow Value Sales by 2%

€2,218 €2,196

€1,537 €1,552€1,944 €1,982

€645 €669 €683 €743

UK Germany France Italy Spain

2006

2007

Change vs. 2006

-1% +9%+1% +4%+2%

POS

UK: Transformers, Spider-Man, In the Night Garden, HSM, Online

Germany: LEGO, Silverlit

France: Specialty stores, Toys space in Food, Transformers, LPS

Italy: Gormiti craze, LEGO, Dolls: Cicciobello, Baby Alive and Winx Club

Spain: Cars, Mickey Mouse, Spider-Man, Pocoyo, Formula 1

Quarterly Trends Show Increasing Declines

9.7%

-3.2% -3.6%-5.1%

Q1 '07 v '06 Q2 '07 v '06 Q3 '07 v '06 Q4 '07 v '06

Total Industry % Dollar Change – by Quarter in 2007 v 2006


Per National Retail Federation, January 2007 has an extra week v. January 2006

-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Movies Helped Some Categories Grow

Dollar

Sales (MM)

Total Traditional Toys $22.2 B

Action Figures & Accessories $1,364

Vehicles $2,288

Plush $1,344

Building Sets $678

All Other Toys $2,065

Arts & Crafts $2,603

Youth Electronics $1,040

Games/Puzzles $2,370

Outdoor & Sports Toys $2,744

Infant/Preschool $3,134

Dolls $2,540

Annual 2007 vs. 2006

Dollar % Change

16%

38%

46%


16.9%

12.5%

4.3%

3.8%

2.6%

2.1%

2.0%

2.5%

1.6%

1.8%

Mattel

Hasbro

MGAEntertainment

JAKKS Pacific

Crayola

Spin Master

LeapFrog

LEGO Systems

Mega Brands

VTech

Dollar Share (%)

Share Point Change

2007 vs. 2006Annual 2006

Ranking

Dollar Volume Percent Change

2007 vs. 2006

Top 10 Corporate Manufacturers, 2007 Dollar Share

1

2

3

4

6

10

5

8

7

9

Innovation, Licensing, Line Extension, Focus


-0.9 -7%

0.8 5%

_ _ -2%

0.3 5%

0.3 10%

1.0 60%

-0.3 -16%

0.2 11%

-0.3 -12%

0.1 2%

Boys +2%

Boys Ages 3-5 Soared, Girls Was Down Across The Board

Age 6-8 21%

Age 9+ 28%

Age 0-2 21%

Age 3-5 31%

Flat

+10%+4%

-3%

Dollar Share/Sales Trend Annual 2007

Girls -7%

Age 6-8 22%

Age 9+ 26%

Age 0-2 21%

Age 3-5 31%

-10%

-6%-7%

-2%


Licensed Toys: Age 3-5: +19%

54% 46%+2 pt. -2 pt.

Licensed Toys: Age 0-2: -13%

Toy Categories

-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Two Supercategories Drove Sales In 2007

Dollar

Sales (MM)

Total Traditional Toys $22,171


Vehicles $2,288

Plush $1,344

Building Sets $678




Games & Puzzles $2,370



Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Action Figures & Accessories

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Vehicles

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


http://images.productserve.com/preview/1203/15521064.jpg

-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Plush

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


http://www.amazon.com/gp/product/images/B000OV7A62/sr=1-1/qid=1202817758/ref=dp_image_0?ie=UTF8&n=165793011&s=toys-and-games&qid=1202817758&sr=1-1

-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Building Sets

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

All Other Toys

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Arts & Crafts

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Youth Electronics

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Games & Puzzles

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


http://www.twoboutiques.com/images/1/dragonballzcentral_1950_337132076.jpg

-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Outdoor & Sports Toys

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Infant / Preschool

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


-8%

-5%

-5%

-3%

-3%

-3%

-1%

6%

8%

-2%

0%

0%

Dolls

Dollar

Sales (MM)



Vehicles $2,288

Plush $1,344

Building Sets $678







Dolls $2,540


Dollar % Change


Boys and Girls

21%

21%

11%

31%

17%

Age 0-2

Age 3-5

Age 6-8

Age 9-11

Age 12+

Boys By Age of Recipient, Dollar Share, 2007

+0%

+10%+4%

-9%

+1%

Sales To Boys Were Up Overall Fueled By Growth In Boys Ages 3-8


Boys +2%

Q4: -9%

$77

$95

$95

$167

$276All Other Infant Toys

PS Vehicles

PS Electronic Learning

Sports Activities & Games

Special Feature Plush

Boys, 0-2 Years Old2007: $2,184MM

% Change vs YAG: 0%

$ Share of Industry: 11%

ARP: $8.88

Top $ Categories (MM) & % Growth/Decline

Sesame Street Is Tops With Boys Ages 0-2


Top $ Growth Properties (MM)

Interesting Findings:

Grandfathers, representing 6% of dollar sales, spend 126% more for the average toy, $11.16. Grandmothers (22% of total sales) only spend $9.99 on average.

36% of purchases were for No Special Occasion, as opposed to total toys where only 29% of purchases were for No Special Occasion (Index = 124).

$14

$14

$17

$19

$28Cars the Movie

Spider-Man

Tonka

Thomas &Friends

Laugh & Learn

- 3%

+ 15%

- 4%

- 16%

+20%

$198

$194

$186

$167

$294Action Figures

Mini Vehicles

PS Vehicles

PS Electronic Learning


The 3-5 Boys Group Is The Largest And Growing



% Change vs YAG: +10%


ARP: $7.61


$19

$39

$52

$91

$91Spider-Man

Transformers

Cars the Movie

Smart Cycle

Hot Wheels


This segment had the strongest growth in three channels: Food/Drug (+39%), Online/Internet (+36%) and Mass Merchant/Discount (+6%)

For boys 3-5, Dad’s are up +13% and Grandpa’s are up +49%. Male buyers found these movie licenses especially appealing.

+26%

- 2%

+5%

+21%


+18%

$190

$189

$184

$110

$279Action Figures


Building Sets

Radio/Remote Ctrl Vehicles

Miscellaneous Toys

Action Figures Stay On Top for Boys 6-8 With Transformers Driving Growth





ARP: $7.85



The toy channel experienced 21% growth in this segment. The Food channel also grew (+52%) as did the Online channel (+12%)

24% of all toys purchased for boys 6-8 are for their birthday. This is the highest index (141) for birthday across all age segments.

+31%

- 8%

+19%

+22%

+28%


$71

$38

$24

$23

$90Transformers

Spider-Man

Pokemon

Air Hogs

Webkinz

9-11 Is The Smallest Segment For Boys, And Declining

+35%

-7%

-15%

+5%

$136

$119

$74

$47

$137Sports Activities & Games

Action Figures

Building Sets

Radio/Remote Ctrl

Strategic Trad Card Games



% Change vs YAG: -9%


ARP: $8.17


$16

$15

$14

$23

$36Air Hogs

Pokemon

Spider-Man

Nerf

WWE


Grandparents spend the most money on average for this segment ($11.04) while parents spend the least ($7.17)

Target was the only major retailer that grew in this age group (+23%); Wal-Mart (-3%) and Toys R Us (-22%) both declined


+8%

- 1%

-43%

-18%

+3%

21%

31%22%

13%

13%

Age 0-2

Age 3-5

Age 6-8

Age 9-11

Age 12+

Girls, By Age of Recipient Dollars, 2007

-10%

-6%-7%

+3%

-6%

Girls Sales Experienced A 7% Decline Overall


Girls -7%

Girls 0-2 Experienced Largest Sales Declines



$7

$7

$8

$9

$14Disney

Princess

Fisher-Price

Baby Born

Go Diego Go

Radio Flyer

Girls, 0-2 Years Old2007: $1,874MM



ARP: $9.43


Moms buying for their daughters ages 0-2 declined by nearly $170MM or down -18%.

Licensed Toys were down -13%

All three major retailers suffered declines: Toys R Us (-15%), Wal-Mart (-10%) and Target (-9%)

$73

$85

$102

$135

$227All Other

Infant Toys

TraditionalPlush

PS RolePlaying

NurturingDolls

PS ElectronicLearning

Top $ Categories (MM)

-14%

-10%

-10%

- 4%

- 7%

The 3-5 Group Is The Largest Among Girls, But Declining





ARP: $7.47 (-10%)




Grandfather spending grew 66%, the greatest % growth for any segment. He is also overdeveloped for this group as compared to total toys (I = 150)

Target grew +5% for girls 3-5. This was the only girl’s segment to see growth for any of the top 3 retailers

$167

$172

$187

$207

$255Fashion ThemeDolls/Figurines

Cray/Markr/Pncl/Chlk

Playset ThemeFigurines & Access

PS ElectronicLearning

Fashion Role Play

-14%

+6%

$15

$23

$26

$26

$29Crayola

Leapster

Baby Alive

HannahMontana

Kid Tough

+4%

+19%

+27%

$97

$127

$127

$142

$308Fashion Themed

Dolls/Figs

Traditional Plush

Playset Theme Fig

Cray/Mrkr/Pen/Chlk

Fashion Role Play& Access

Hannah Montana And High School Musical Experience Growth Among Girls 6-8, While Overall Segment Declines





ARP: $8.28



$11

$12

$29

$47

$47HannahMontana

Webkinz

High SchoolMusical

Little Tikes

Disney AllOther


28% of all volume for Connected Web Play toys are for girls ages 6-8, the highest of any segment.

Girls 6-8 was the largest segment for Hannah Montana (53%), High School Musical (38%) and Webkinz (28%).

-13%

-8%

-24%

-9%

-6%

$58

$60

$74

$117

$143Fashion Themed

Dolls/Figs

Traditional Plush

Cray/Mrkr/Pen/Chlk

Youth Elect/Comm

Playset ThemeFig&Acc

Girls 9-11 Is The Only Girl’s Segment To Show Growth





ARP: $8.36


$46

$20

$19

$18

$14

Webkinz

American Girl

Littlest PetShop

High SchoolMusical

HannahMontana


Department/Major Chains (+55%) and All Other channel (+15%) experienced the highest growth percentage of any segment with girls 9-11

This age group had the most influence. 72% of sales resulted from “asking for a toy” and 44% asking for a “specific toy”


+3%

+34%

-10%

+2%

+0%

Retailers

Target Moves Up To #2

29% 28% 28%

12% 14% 15%

16% 15% 14%

37% 37% 37%

2005 2006 2007

Wal-Mart Target Toys R Us Kmart KB Toys All Other

Retailer Dollar Share


$ %Chg

+1%

-5%

-2%

-2%

-2%

-2%

$2,043 $1,932 $1,791 $1,959 $2,090

$5,246$5,666

$5,376

$2,131

2005 2006 2007 2005 2006 2007 2005 2006 2007

Annual Per Store Sales Declines For The Big 3 Retailers

Retailer Dollar Sales Per Store (,000)

Wal-Mart Target Toys R Us

+8%

# Stores 3,189 3,331 3,506 679 586 5861,398 1,488 1,537


+9%

-2%-2%

-5%-5%

-7%-7%-5%-5%

Q4 Chg. -11% -8% -6%

Online Channel Grows +9%

12%19% 16% 18%

11%9% 15% 12%4%5%

6% 6%13%9%

12% 10%5% 7%

8%4%

51% 47%39% 44%

Annual 2006 Annual 2007 Q4'06 Q4'07

Amazon.com Walmart.com Target.com Toysrus.com eBay.com All Other

Retailer Dollar Share – Online Channel; Annual ’07 vs. ’06; Q4’07 vs. Q4’06


Note: Toysrus.com and Amazon.com separated in July 2006; therefore, neither can be compared versus year-ago for Annual trends.

$ %Chg

-15%

-15%+13%*

+13%

-42%

+18%

-14%

NA+35%

NA

+58%

+1%

* <200 transactions: Proper caution should be used in interpretation

$ %Chg+9% +3%

Regional Ups & Downs For The Big 3 Retailers

Retailer Dollar % Change – Annual 2007 vs. 2006

$% %Chg

Wal-Mart 23% -2%Target 20% +5% Toys R Us 14% -1%

$% %ChgWal-Mart 28% -4%Target 15% +3% Toys R Us 13% -12%

$% %ChgWal-Mart 20% -1% Target 11% -1% Toys R Us 20% -9%

$% %ChgWal-Mart 37% -2% Target 13% -2% Toys R Us 13% +1%

WEST (Flat)

CENTRAL (-3%)

NORTHEAST (-1%)

SOUTH (-3%)


Pricing Strategy Matters

57% 59%46%

22%

21% 21%

28%

28%

9% 8%11%

16%

6% 6% 8%

14%

11%6%

Total Toys Wal-Mart Target Toys R Us

<$5 $5-$10 $10-$15 $15-$20 $20-$30 $30-$50 $50+

Unit Distribution of Sales by Price Point – Annual 2007

26%


50%

20%22%

+2 pts.

-2 pts.-2 pts.

+1 pt.

-1 pt.

flat

-2% -5%+1%-2%

US Household Penetration For Toys High Among Dollar Stores

60%

32%

21%18% 17% 16%

$163

$49

$14$7

$87

$93

0%

10%

20%

30%

40%

50%

60%

70%

Wal-Mart Target Dollar Tree Dollar General Toys R Us K-Mart$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

US HH Penetration Annual $ Sales/HH

Source: The NPD Group / Consumer Tracking Service / Market Summary Report

US HH Penetration for Toys (Excluding Internet) – Annual 2007

Dollar Share 28.3% 14.5% 0.7% 1.3% 14.2% 4.0%

Licensing

Licensed Toys Outperformed The Industry

Non-Licensed Toys

73%

Licensed Toys

27%

Annual 2007

Non-Licensed Toys

74%

Licensed Toys

26%

Annual 2006

Dollar Share of Licensed vs. Non-Licensed ToysAnnual 2006 vs. 2007

+2%-3%

Four Of The Top 10 Licensors Showed Growth

$694

$453

$354

$316

$257

$227

$156

$61

$1,535

$40

Disney

Nickelodeon

Marvel Enterprises

Lucas Licensing

HIT Entertainment

Sesame Workshop

4Kids Entertainment

Warner Brothers

Cartoon Network

Dreamworks

% Chg. ’07 vs. ‘06Dollar Volume (MM)

19%

-10%

91%

-18%

-2%

-11%

-29%

-40%

198%

180%

Top 10 Licensors, Ranked on Annual 2007 Dollar Sales


Annual 2006Ranking

1

2

8

3

4

6

5

7

11

13

$503

$482

$190

$182

$181

$179

$170

$150

$578

$149

Mattel

Fisher-Price Friends (Mattel)

Hasbro Toys

Fisher-Price Core (Mattel)

Jakks Pacific

Play Along (Jakks Pacific)

Creative Designs (Jakks Pacific)

Bandai America

LEGO Systems

Learning Curve Toys (RC2)

Six Of The Top 10 Manufacturers Of Licensed Toys Have 75% Or More Of Their Portfolio Tied To Licenses

% of Total Sales LicensedLicensed Dollar Volume (MM)

34%

93%

27%

17%

85%

78%

75%

85%

33%

96%

Top 10 Manufacturers for Licensed Toys, Ranked on Annual 2007 Licensed Dollar Sales


$550

$510

$399

$395

$389

$357

$353

$349

$669

$319

Barbie

Crayola

Bratz

Dora the Explorer

Cars the Movie

Spider-Man

Disney Princess

Star Wars

Transformers

Hot Wheels

Annual 2006Ranking Dollar Volume (MM)

1

3

2

4

7

20

6

5

30

8

-7%

6%

-16%

-14%

26%

160%

8%

-18%

+>200%

4%

Top 10 Properties - Ranked on Annual 2007 Dollar Sales

A Perspective On Top Properties

Annual 2007 vs. 2006% Change


Top 3 Licenses Tie For #1

$389

$357

$353

$270

$257

$163

$128

$395

$399

$112

Dora the Explorer

Cars the Movie

Spider-Man

Disney Princess

Star Wars

Thomas and Friends

Sesame Street

Barbie

Disney All Other

WWE

Annual 2006Ranking

Annual 2007 vs. 2006% ChangeDollar Volume (MM)

1

4

7

3

2

6

5

8

18

17

-14%

26%

160%

8%

-18%

6%

-11%

11%

43%

25%

Licensed Sales Only, Brand Data Excluded

Top 10 Licenses - Ranked on Annual 2007 Dollar Sales


Annual ‘07 Dollar Volume (MM)

Spider-Man Climbed To #1 Growth License Spot

Annual ‘07 vs. ’06% Change

$240

$99

$83

$78

$62

$39

$38

$31

$28

$28

Spider-Man

Hannah Montana

Cars the Movie

High School Musical

Pokemon

Ben 10

Disney All Other

Go Diego Go!

Shrek

Disney Princess

Absolute $ Growth Change Annual ‘07 vs. Annual ‘06 (MM)

$389

$99

$395

$82

$98

$60

$128

$90

$37

$357

160%

+>200%

26%

+>200%

173%

191%

43%

53%

+>200%

8%

Top 10 Absolute Dollar Growth Licenses


Are You Smarter Than a 5th Grader?

$40

Top 10 Licenses By Descending Dollars for Ages 0-2, 2000-2007

Only Sesame Street, Winnie The Pooh, & Thomas and Friends Have Licensing Staying Power For Kids Ages 0-2


2000 2001 2002 2003 2004 2005 2006 2007

1SESAME STREET

SESAME STREET

SESAME STREET SESAME STREET SESAME STREET SESAME STREET SESAME STREET SESAME STREET

2WINNIE THE POOH

WINNIE THE POOH

WINNIE THE POOH

WINNIE THE POOH

WINNIE THE POOH & FRIENDS

DORA THE EXPLORER

DORA THE EXPLORER

DORA THE EXPLORER

3 BLUES CLUES BLUES CLUESBOB THE BUILDER

DORA THE EXPLORER

DORA THE EXPLORER


THOMAS AND FRIENDS

THOMAS AND FRIENDS

4

DISNEY STD.CHARACTERS BARBIE

MICKEY & FRIENDS CARE BEARS CARE BEARS

THOMAS AND FRIENDS

WINNIE THE POOH & FRIENDS CARS THE MOVIE

5 BARBIE JOHN DEERE BLUES CLUESTHOMAS AND FRIENDS

DISNEY PRINCESS

DISNEY PRINCESS CARS THE MOVIE

DISNEY PRINCESS

6 JEEP TONKATHOMAS AND FRIENDS

MICKEY & FRIENDS

THOMAS AND FRIENDS CARE BEARS

DISNEY PRINCESS


7THOMAS AND FRIENDS

DISNEY STD.CHARACTERS TONKA

DISNEY PRINCESS JEEP CABBAGE PATCH CABBAGE PATCH CABBAGE PATCH

8 TONKATHOMAS AND FRIENDS BARNEY

BOB THE BUILDER WIGGLES JOHN DEERE JOHN DEERE SPIDERMAN

9 BARNEYBOB THE BUILDER

SPONGEBOB SQUAREPANTS TONKA SPIDERMAN

SPONGEBOB SQUAREPANTS

SPONGEBOB SQUAREPANTS GO DIEGO GO!

10 TOY STORY JEEPMAGNA DOODLE


MICKEY & FRIENDS SPIDERMAN

MICKEY & FRIENDS BACKYARDIGANS



2000 2001 2002 2003 2004 2005 2006 2007

1 BARBIE BARBIE BARBIE BARBIE SPIDERMANDORA THE EXPLORER

DORA THE EXPLORER

DORA THE EXPLORER

2 POKEMONTHOMAS AND FRIENDS SPIDERMAN

DISNEY PRINCESS DISNEY PRINCESS

DISNEY PRINCESS DISNEY PRINCESS

CARS THE MOVIE

3 TOY STORYPOWER RANGERS

THOMAS AND FRIENDS SPIDERMAN

DORA THE EXPLORER STAR WARS

THOMAS AND FRIENDS

DISNEY PRINCESS

4 BLUES CLUES TONKAPOWER RANGERS

POWER RANGERS BARBIE

THOMAS AND FRIENDS CARS THE MOVIE SPIDERMAN

5WINNIE THE POOH

BOB THE BUILDER

BOB THE BUILDER

THOMAS AND FRIENDS POWER RANGERS SPIDERMAN BARBIE

THOMAS AND FRIENDS

6POWER RANGERS HOT WHEELS JEEP CARE BEARS CARE BEARS BATMAN SPIDERMAN BARBIE

7 HOT WHEELS MONSTERS, INC. TOY STORYDORA THE EXPLORER

THOMAS AND FRIENDS BARBIE POWER RANGERS

POWER RANGERS

8 TONKA TOY STORY STAR WARS HULKNINJA TURTLES(TMNT)

POWER RANGERS STAR WARS STAR WARS

9 CHEVROLET SCOOBY DOODISNEY PRINCESS JEEP JEEP JEEP


DISNEY ALL OTHER

10 SESAME STREETWINNIE THE POOH TONKA TRANSFORMERS


NINJA TURTLES(TMNT) SESAME STREET GO DIEGO GO!

Only Barbie and Power Rangers Have Consistently Made The Top 10 Licenses List Since 2000 For Kids Ages 3-5


For Kids Ages 6-8, Hot Entertainment Licenses Made It Into The Top 10 In 2007


2000 2001 2002 2003 2004 2005 2006 2007

1 POKEMON BARBIE BARBIE YU-GI-OH YU-GI-OH STAR WARS STAR WARS STAR WARS

2 BARBIE POKEMON STAR WARS BARBIE SPIDERMAN YU-GI-OH CARS THE MOVIE SPIDERMAN

3 STAR WARS HARRY POTTER SPIDERMAN BEYBLADE BARBIE BARBIEDISNEY PRINCESS

DISNEY PRINCESS

4POWER RANGERS

POWER RANGERS YU-GI-OH SPIDERMAN

POWER RANGERS

DISNEY PRINCESS BARBIE

HANNAH MONTANA

5 DIGIMON STAR WARS HARRY POTTER HULKNINJA TURTLES(TMNT) BATMAN YU-GI-OH

CARS THE MOVIE

6 CHEVROLET DIGIMON POKEMON TRANSFORMERSDISNEY PRINCESS SPIDERMAN SPIDERMAN POKEMON

7POWERPUFF GIRLS

POWERPUFF GIRLS

POWER RANGERS

POWER RANGERS BEYBLADE

CABBAGE PATCH

POWER RANGERS BARBIE

8BRITNEY SPEARS WWF ZOIDS POKEMON CARE BEARS

POWER RANGERS

DORA THE EXPLORER

HIGH SCHOOL MUSICAL

9 WWF NASCAR TRANSFORMERS HARRY POTTERSPONGEBOB SQUAREPANTS

DISNEY ALL OTHER BATMAN

DORA THE EXPLORER

10 HOT WHEELS DRAGON BALL Z RAPUNZEL HUMMER POKEMON CARE BEARSSPONGEBOB SQUAREPANTS WWE

27

73

68

32

11

89

29

71

19

81

27

73

28

72

25

75

21

79

30

70

31

69

35

65

Total Industry

Action Figures & Access.

Arts & Crafts

Building SetsDolls

Games/Puzzles

Infant/Preschool

Youth Electronics

Outdoor & Sports ToysPlush

Vehicles

All Other Toys

Not Licensed

Licensed

Licensed Toys Became More Important Overall And In Six Supercategories As Compared To Last Year

2007 Dollar Share of Licensed vs. Non-Licensed Toys By Supercategory

Share Chg. from 2006 for Licensed +1 -8 +3+1 0 +40 -1 +2 -5+7+1


Age 3-5, 39%

Age 12+, 8% Age 0-2,

26% Age 9-11, 8%

Age 6-8, 19%

Young Boys Saw Growth Due In Part To Licenses Such As Cars, Spider-Man and Pokemon

Age 6-8, 19%

Age 9-11, 10%

Age 0-2, 20%

Age 12+, 16%

Age 3-5, 35%

Boys +7%

Dollar Share of Licensed Toys by Gender and Age of Recipient, Annual 2007

Girls -5%

-13%

-8%

+10%

+18%


+6%

+19%

-13%

+11%

-13%

-3%-10%

62%38%

+3 pt. -3 pt.

Ages 2-4 Is The Sweet Spot For Boys Licensed Toys

Individual Age Distribution of Licensed Toys for Boys, Annual 2005, 2006 and 2007, Dollar Volume (MM)

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

<1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Male 2007

Male 2006

Male 2005

Gains in ages 6-8 mostly due to Star Wars & Spider-Man.

Gains in ages 2-4 mostly due to Thomas & Friends, Cars the Movie and Spider-Man.


Girls 5 And Under Saw Declines In Licensed Toys, 64%

Individual Age Distribution of Licensed Toys for Boys vs. Girls, Annual 2005, 2006 and 2007, Dollar (MM)*


$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

<1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Female 2007

Female 2006

Female 2005

Declines in ages 2-4 mostly due to Dora the Explorer, Sesame Street & Cabbage Patch

Gains in ages 7-10 mostly due to Hannah Montana and High School Musical


Where Are The Licensed Toys For Girls?

Age Distribution of Licensed Toys for Boys vs. Girls, Annual 2007, Dollar Volume (MM)


$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

<1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Male

Female


Total Gap widened to $1.3 billion

Blockbuster movies scheduled for 2008 – Boy Oh Boy!

Batman - The Dark Knight

(July ‘08)

RATED R

Indiana Jones and the Kingdom of the

Crystal Skull

(May ‘08)

Speed Racer

(May ‘08) Wall-E

(June ‘08)

Harry Potter and the Half-Blood Prince

(November’ 08)

Hannah Montana/ Miley Cyrus: Best of Both

Worlds Concert Tour

(February ‘08)

Kung Fu Panda

(June ‘08)

The Incredible Hulk

(June ‘08)

Iron Man

(May ‘08)

High School Musical 3:

Senior Year

(October ‘08)

Star Wars: The Clone Wars

(August ‘08)

http://speedracerthemovie.warnerbros.com/cmp/main.html

http://www.movieweb.com/movies/film/07/3607/posters.php

http://movies.clevver.com/fullphoto/70815/500/950/star-wars-the-clone-wars-production-photos-1.jpg

Where Is Money Being Spent For Kids?

Source: The NPD Group / Kids Share of Wallet

23%

13%

13%12%

8%

7%

7%

4%

3%3%

3% 2%2%1%

Apparel & Accessories

Toys, Board Games, Arts & Crafts

Leisure Activities

Non-Grocery Food/Beverages

Video Game System/Software

Footwear

Books, Music, Movies

Allowance

Consumer Electronics

Subscriptions

Party Supplies

Room Décor

Events and/or Concerts

Baby and/or Infant Products

Kids Age 0-14

23%

13%

13%12%

8%

7%

7%

4%

3%3%

3%2% 2%1%

Apparel Sales To Kids Grew With Disney Taking The Top Spot And Many Store Brands Making The List

Disney

Carters

Old Navy

Gap

The Children’s Place

Hanes

Faded Glory (Wal-Mart)

Gymboree

Cherokee

Oshkosh B Gosh

Fruit Of The Loom

Arizona Jean (JCP)

Nike

Top Apparel Brands – Kids 0-13 Years Old – Annual 2007

Source: The NPD Group / Consumer Tracking Service – Children’s Wearer Segment

McDonald’s (15%)

Burger King (4%)

Wendy’s (3%)

Taco Bell

Pizza Hut

KFC

Sonic

Dunkin Donuts

Subway

Dominos

23%

13%

13%

12%

8%

7%

7%

4%

3%3%

3%2% 2%1%

Restaurant Traffic Was Up +1% for Kids 0-12

Source: The NPD Group / Consumer Tracking Service – FoodService

Top QSR Restaurants for Kids 0-12, Annual 2007

Video Games Continue Strong Growth As Traditional Toys’ Growth Levels Off

$0

$5

$10

$15

$20

$25

$30

$35

$40

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Re

tail

Sa

les

($

Bill

ion

s)

Toys Video Games

Note: Toy data reflects multiple methodologies. Significant changes were made in both 2002 and 2003.

23%

13%

13%12%

8%

7%

7%

4%

3%3%

3%2% 2%1%


+43%

$22B

$18B

Among Kids, Girls Show Higher Rate Of Growth

$440M

$1.2B

$745M

$2.2B

$0

$500

$1,000

$1,500

$2,000

$2,500

2003 2004 2005 2006 2007

Girls 8 & under Boys 8 & under

Girls 9-12 Boys 9-12

Video Games Industry Dollar Sales - Millions

Annual ’07 vs. ’06 % Change

22%

16%

40%

45%


Portable Gaming Is Hot For Kids

0 10 20 30 40 50

Nintendo Portable

PS2

Wii

PSP

360

Gamecube

Xbox

PS3

20072006

Unit Share, Kids 12 & Under

DS replacing GBA


Licenses Drive Top Games For Kids

78.3 million units of games sold for kids 12 & under in 2007 equating to $2.4 B


Kids Were Into These Big Games Too!


Skechers

Nike

Stride Rite

Heelys

Vans

Crocs

Timberland

Faded Glory

Smart Fit (Payless)

Adidas

Kids Footwear Was Up +3%: Brands Matter!

23%

13%

13%12%

8%

7%

7%

4%

3%3%

3%2% 2%1%

Top Footwear Brands – Kids 0-13 Years Old – Annual 2007

Source: The NPD Group / Consumer Tracking Service – Footwear Children’s Wearer Segment

http://www.amazon.com/gp/product/images/B000OYC3L6/sr=1-1/qid=1206368735/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206368735&sr=1-1

Top Music Artists (CD & Digital Albums)

Kids 0-12 Years Old – Annual 2007


http://www.amazon.com/gp/product/images/B000OYC3L6/sr=1-1/qid=1206368735/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206368735&sr=1-1

http://www.amazon.com/gp/product/images/B000QCTGIE/sr=1-1/qid=1206368803/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206368803&sr=1-1

http://www.amazon.com/gp/product/images/B000OZ2CO8/sr=1-2/qid=1206368913/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206368913&sr=1-2

http://www.amazon.com/gp/product/images/B000I5YCCO/sr=1-1/qid=1206368972/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206368972&sr=1-1

http://www.amazon.com/gp/product/images/B000ASATO4/sr=1-1/qid=1206369082/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206369082&sr=1-1

http://www.amazon.com/gp/product/images/B000CCXCTW/sr=1-3/qid=1206369197/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206369197&sr=1-3

http://www.amazon.com/gp/product/images/B000NA1OXY/sr=1-1/qid=1206371707/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206371707&sr=1-1

http://www.amazon.com/gp/product/images/B000H4VV52/sr=1-1/qid=1206371739/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206371739&sr=1-1

http://www.amazon.com/gp/product/images/B000V9KF0A/sr=1-1/qid=1206371771/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206371771&sr=1-1

http://www.amazon.com/gp/product/images/B000QFCD5Y/sr=1-1/qid=1206371815/ref=dp_image_0?ie=UTF8&n=5174&s=music&qid=1206371815&sr=1-1

Top VHS/DVD Sales/Rentals

Kids 0-12 Years Old As Primary Viewers – Annual 2007

Source: The NPD Group / VideoWatch

http://www.amazon.com/gp/product/images/B00005JNS0/ref=dp_image_0/102-4756833-6578551?ie=UTF8&n=130&s=dvd

http://www.amazon.com/gp/product/images/B000MV9026/sr=8-1/qid=1206372595/ref=dp_image_0?ie=UTF8&n=130&s=dvd&qid=1206372595&sr=8-1

http://www.amazon.com/gp/product/images/B000VR0570/sr=1-1/qid=1206372640/ref=dp_image_0?ie=UTF8&n=130&s=dvd&qid=1206372640&sr=1-1

http://www.amazon.com/gp/product/images/B000UVKGQ2/sr=1-1/qid=1206372672/ref=dp_image_0?ie=UTF8&n=130&s=dvd&qid=1206372672&sr=1-1

Kids’ Personal Ownership And Usage Of Consumer Electronics (2007)

0

10

20

30

40

50

60

70

80

VideoGame (P)

CD Player(P)

ConsoleVideo

TV (NP) Stereo (P) PDMP DVD (P) CellPhone

DVD (NP) DigitalCamera

DesktopComputer

Laptop VideoCamera

23%

13%

13%12%

8%

7%

7%

4%

3%3%

3%2% 2%1% Ownership

Usage

P – Portable NP – Non-Portable

Source: The NPD Group / Kids & Consumer Electronics Wave 3

Electronics: Average Age Of Initial Kid Use Continues To Decline

Age

6

7

8

9

10

11

2005 2006 2007

Laptop PDMPDigital Camera Cell Phone

Source: The NPD Group / Kids & Consumer Electronics Wave 3

Most Of Kids “Digital” Time Is Spent On Games And Music

Download ringtones/ ringtunes

2%

Listen to music31%

Watch TV shows3%

Watch movies 8%

Send or receive pictures/ images

5%

Watch music videos

3% Play games45%

Watch online/streaming

video clips3%

23%

13%

13%12%

8%

7%

7%

4%

3%

3%

3%2% 2%1%

% of Time Spent on Digital Activities Across 4 Key Devices(PDMP, Computer, Cell Phone, Video Game Systems)

Source: The NPD Group / Kids & Digital Content 2007 Edition

Boys Are From Mars, Girls Are From Venus

Movie licenses TV licensesVideo Games Web Connected PlayOnline Channel

Online Channel

DadMomLicensed ToysARPBirthdayNo Special Occasion

Top 3 Retailers Combined

Industry Landscape Opportunities

Higher Birth RatesGrandparentsGrowth In EuropeToy SafetyHigher PricesNew TV Licenses for Girls

toy industry overview – annual 2007 april 2008. housekeeping presentation (1:15) + q&a (:45)...

Documents

toys space

outdoor sports toys

dollar change

video gamesgirls toys

dollar sharesales trend

youth electronics

boys ages