a leading global children’s entertani ment … · troubled areas around the world the toy...
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TRADING INFO (AS OF OCT. 11, 2017)
BRAND TIMELINE
TSX: TOY
SPIN MASTER CORP.
FLOAT*:
28,071,845Subordinate Voting Shares
MARKET CAP OF FLOAT:
1.44BTOTAL MARKET CAP:
5.22B* Excludes 73,549,812 Multiple Voting
Shares issued and outstanding
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2017 FACT SHEET
121 Bloor Street East, Toronto, ON M4W 3M5 Canada • Tel. (416) 364-6002 • [email protected] • www.spinmaster.com
CORPORATE PROFILESpin Master creates, designs, manufactures, licenses, and markets a diversified portfolio of innovative toys, games, products, and entertainment properties. Spin Master is best known for its award-winning brands including Zoomer®, Bakugan®, Meccano®, and 2017 Toys of the Year, Hatchimals®, Air Hogs®, and PAW Patrol®. Since 2000, Spin Master has received 82 TIA Toy of The Year (TOTY) nominations with 21 wins across a variety of product categories, including 13 TOTY nominations for Innovative Toy of the Year, more than any of its competitors. To date, Spin Master has produced six television series, including
2007 success Bakugan Battle Brawlers and current hit PAW Patrol, which is broadcast in over 160 countries and territories globally. Spin Master has significant global scale and reach and Spin Master products are sold in over 70 countries around the world through Spin Master’s direct sales and marketing offices or through third party distributors. Spin Master has over 1,500 employees globally and offices in Canada, United States, Mexico, France, Italy, United Kingdom, Slovakia, Poland, Germany, Sweden, the Netherlands, China, Hong Kong, Japan, Vietnam, and Australia.
A LEADING GLOBAL CHILDREN’S ENTERTAINMENT COMPANY – CREATING INNOVATIVE TOYS, GAMES, PRODUCTS AND ENTERTAINMENT PROPERTIES
GROWTH STRATEGIESINNOVATE ACROSS THE PORTFOLIO OF BRANDS AND BUSINESS SEGMENTS• Leverage competitive strengths to build a robust pipeline
in all business segments.
• Continue to focus on strategic brand building.
• Continue to invest in advanced technology and entertainment licenses.
• Expand capability and product offering in digital mobile gaming.
INCREASE SALES IN INTERNATIONAL DEVELOPING AND EMERGING MARKETS• Optimize international distribution network.
• Strategically tailor product offering to local international markets.
• Increase proportion of sales outside of North America to 35–40% in the medium term.
DEVELOP EVERGREEN GLOBAL ENTERTAINMENT PROPERTIES• Capitalize on success of current entertainment
properties.
• Develop at least one new show per year.
• Strategically relaunch properties to capitalize on value of owned content library.
LEVERAGE GLOBAL PLATFORM THROUGH STRATEGIC ACQUISITIONS• Fragmented industry with opportunities for consolidation.
• Strong balance sheet with financial flexibility.
121 Bloor Street East, Toronto, ON M4W 3M5 Canada • Tel. (416) 364-6002 • [email protected] • www.spinmaster.com
SENIOR MANAGEMENTRonnen HararyDirector and Co-Chief Executive Officer
Anton RabieChair and Co-Chief Executive Officer
Ben VaradiDirector, Executive Vice President and Chief Creative Officer
Ben GadboisDirector, Global President and Chief Operating Officer
Mark SegalExecutive Vice President and Chief Financial Officer
Bill HessExecutive Vice President of Operations and Chief Information Officer
Christopher BeardallExecutive Vice President of Global Sales
Adam BederExecutive Vice President of Global Licensing and Business Affairs
Christopher HarrsExecutive Vice President and General Counsel, Corporate Secretary
Nancy ZwiersExecutive Vice President and Chief Marketing Officer
INDEPENDENT BOARD MEMBERS John Cassaday Lead Director
Jeffrey I. CohenDina HowellTodd TappinCharles Winograd
ANALYST COVERAGE Robert Bek CIBC World Markets
Derek Dley Canaccord Genuity Corp.
Gerrick Johnson BMO Capital Markets
Sabahat Khan RBC Capital Markets
David McFadgen Cormark Securities
Brian Morrison TD Securities
Adam Shine National Bank Financial
Kenric S. Tyghe Raymond James
Stephanie Wissink Jefferies
SPIN MASTER CORP.
2017 FACT SHEET
65 TITLES
200MDownloads
Remote Control and Interactive Characters
Activities, Games, Puzzles and Fun Furniture
Boys Action and High-tech Construction
Outdoor
Pre-school and Girls
23%
12%
27%
37%
1%
BUSINESS SEGMENTS2016 Gross Product Sales by Business Segment
DIGITAL MOBILEToca Boca and Sago Mini apps have over 200 million downloads worldwide since 2011
ENTERTAINMENTDeveloping and producing global entertainment properties, characters, and content
FINANCIAL INFORMATION (US$ MILLIONS)
GLOBAL SCALE
2012 2013 2014 2015 2016
Gross Product Sales $480.6 $576.9 $811.9 $982.7 $1,254.6
Revenue $417.7 $507.5 $715.7 $879.4 $1,154.5
Gross Margin 46.0% 48.2% 50.0% 52.2% 51.7%
Adjusted EBITDA $(22.9) $53.1 $111.7 $160.5 $205.5
Adjusted Net Income $(34.4) $22.8 $66.3 $98.6 $120.1
Adjusted EPS N/A N/A $0.78 $1.08 $1.19
Net Debt $325.3 $278.3 $157.3 $4.6 $58.7
TOKYO
HONG KONG
GUANGZHOU
HAI PHONG
JIAXING
SYDNEY
DONGGUAN
TORONTO
NEW YORK
STOCKHOLM
VIRGINIA BEACHTARBORO 1
BENTONVILLE
MEXICO CITY
LOS ANGELESSAN FRANCISCO
LONDONPARISMILANAMSTERDAMMUNICHCALAIS 1
BRATISLAVA2
WARSAW
1. Manufacturing Facility 2. Order processing office
CENTRES OF SALES & MARKETINGAND IDEATION, INNOVATION,DESIGN AND DEVELOPMENT
CENTRES OF IDEATION, INNOVATION,DESIGN AND DEVELOPMENT
CENTRES OF SALES & MARKETING
SPIN MASTER R&D, DIRECT SALESAND MARKETING OFFICES
DISTRIBUTION MARKETS
MISSION
DELIVERING INSPIRATION, IMAGINATION, AND JOY TO CHILDREN IN TROUBLED AREAS AROUND THE WORLD
The Toy Movement brings together committed partners within the children’s entertainment industry, third party logistics providers, and various levels of government to do one thing: provide children with the opportunity to play, learn and grow regardless of their circumstances – allowing kids to be kids no matter where they live. Over the past few years, Spin Master has passionately led this initiative and delivered over 150,000 toys in countries and regions such as Turkey, Mexico, Jordan, Israel and Gaza.