Slide 1: Fourth Quarter and Full Year 2024 Earnings
Fourth Quarter and Full Year 2024 Earnings (Unaudited Results) February 4, 2025
Slide 2: Cautionary Note Regarding Forward-Looking Statements / Presentation Information
Cautionary Note Regarding Forward-Looking Statements / Presentation Information Mattel cautions the viewer that this presentation contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain. Forward-looking statements can be ide
Slide 3: Mattel, Inc. Who We Are
Mattel, Inc. Who We Are Mattel is a leading global toy and family entertainment company and owner of one of the most iconic brand portfolios in the world. We engage consumers and fans through our franchise brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO, Mast
Slide 4: Mattel's Strategy
Mattel’s Strategy Grow IP-Driven Toy Business and Expand Entertainment Offering TOYS ENTERTAINMENT GROW CAPTURE PROFITABLY FULL VALUE OF IP ACCELERATE SCALE OPTIMIZE EVOLVE DEMAND GROW CONTENT, CONSUMER PORTFOLIO OPERATIONS CREATION FRANCHISE PRODUCTS, DIGITAL AND BRANDS LIVE EXPERIENCES Our mission
Slide 5: Chairman and CEO Perspective on 2024
Chairman and CEO Perspective on 2024 Achieved priorities to grow profitability, expand gross margin, and generate strong free cash flow1 (in millions, YOY FY 2024 except EPS, percentages, and bps) Change Net Sales $5,380 -1% Constant Currency1 -0.5% Adjusted Gross Margin1 50.9% +340 bps Adjusted EBI
Slide 6: Chairman and CEO Perspective on 2024, continued
Chairman and CEO Perspective on 2024, continued Successful year for Mattel, in line with our priorities Strong execution on toy strategy with meaningful progress on entertainment strategy $83 million of OPG cost savings achieved in 2024, out of $200 million target by end of 2026 Continued to strengt
Slide 7: Q4 2024 Performance
Q4 2024 Performance Grew top line and achieved very strong profitability (in millions, YOY Q4 2024 except EPS, percentages, and bps) Change Net Sales $1,646 +2% Constant Currency1 +3% Adjusted Gross Margin1 50.8% +200 bps Adjusted EBITDA1 $249 +6% Adjusted EPS1 $0.35 +21% Top line growth driven by V
Slide 8: 2024 Category Performance and Highlights
2024 Category Performance and Highlights Progress in scaling portfolio, optimizing operations, evolving demand creation and strengthening franchise brands Vehicles Challenger Categories Meaningful growth; Hot Wheels Collectively grew, led by double-digit growth in achieved 7th consecutive record yea
Slide 9: Expanding Our Entertainment Offering
Expanding Our Entertainment Offering 2024 highlights Film Television Masters of the Universe worldwide theatrical Hot Wheels Let’s Race Season 2 was Top release date announced; production starts 10 TV show on Netflix in 27 countries1 Feb 2025 All three Barbie animated premieres ranked Matchbox live-
Slide 10: 2025 Expectations for Mattel
2025 Expectations for Mattel1 Top and bottom-line growth Net Sales Adj. EPS2 + 2% to 3% + 2% to 6% (constant currency1) Increasing investment in self-publishing digital games business to drive long-term growth, in line with capital allocation priorities (1) Includes the anticipated impact of new U.S
Slide 11: 2025 Drivers
2025 Drivers Category Highlights Infant, Toddler, and Vehicles Games Action Figures Preschool Dolls Vehicles to grow Building on UNO’s New movie products FP Wood expanding Improving trends in with another record momentum tied to Minecraft and distribution across Barbie driven by year for Hot Wheels
Slide 12: 2025 Entertainment Highlights
2025 Entertainment Highlights Continuing progress • MOTU and Matchbox films in production Film • 14 announced films in development • Hot Wheels Let’s Race Season 3 • Barbie animated special Television • New seasons of Thomas and Friends and Polly Pocket • New episodes of Barney’s World • Goal of lau
Slide 13: Q4 and FY 2024 P&L Highlights
Q4 and FY 2024 P&L Highlights Strong profitability in fourth quarter and full year (in millions, YOY YOY Q4 2024 FY 2024 except EPS, percentages, and bps) Change Change Net Sales $1,646 +2% $5,380 -1% Constant Currency1 +3% -0.5% Adjusted Gross Margin1 50.8% +200 bps 50.9% +340 bps Adjusted Operatin
Slide 14: Q4 and FY 2024 Gross Billings by Category
Q4 and FY 2024 Gross Billings by Category1 Growth in Vehicles and Challenger categories overall Q4 Worldwide Gross Billings Q4 YOY Growth Rate (%) FY YOY Growth Rate (%) (as reported; $ in millions) As Constant As Constant Reported Currency Reported Currency Dolls $735 -4% -3% -8% -8% Vehicles $544
Slide 15: Q4 and FY 2024 Gross Billings by Region
Q4 and FY 2024 Gross Billings by Region1 Grew in three of four regions in Q4 Q4 Gross Billings Q4 YOY Growth Rate (%) FY YOY Growth Rate (%) (as reported; $ in millions) As Constant As Constant Reported Currency Reported Currency North America $1,057 1% 1% -1% -1% EMEA $503 10% 10% -1% -2% Latin Ame
Slide 16: Q4 2024 Adjusted Gross Margin
Q4 2024 Adjusted Gross Margin1 Another quarter of significant year-over-year gains +200bps 0.6% 0.9% 0.9% 0.8% 0.9% 0.5% 50.8% 48.8% Benefiting primarily from costs savings and efficiency improvements (1) Amounts may not sum due to rounding. Please see Appendix – Reconciliation of Non-GAAP Financial
Slide 17: FY 2024 Adjusted Gross Margin
FY 2024 Adjusted Gross Margin1 Significant year-over-year increase +340 bps 50.9% 47.5% 2023 2024 Increase primarily driven by supply chain efficiencies and cost savings, more than offsetting the prior year benefit from the Barbie movie (1) Please see Appendix – Reconciliation of Non-GAAP Financial
Slide 18: Q4 2024 Advertising and Adjusted SG&A
Q4 2024 Advertising and Adjusted SG&A1 Advertising reflects shift of spend; Adjusted SG&A increased due to higher compensation partly offset by cost savings Advertising Adj. SG&A +$x ($ in millions) ($ in millions) +2% -$x +10% $418 $409 $257 $234 Q4'23 Q4'24 Q4'23 Q4'24 Full year Advertising decrea
Slide 19: Q4 and FY 2024 Adjusted Profit Metrics
Q4 and FY 2024 Adjusted Profit Metrics Benefiting from strong Gross Margin Adj. Operating Income1 Adj. EBITDA1 Adj. EPS1 $ in millions $ in millions +10% +6% +21% Q4 $147 $161 $234 $249 $0.29 $0.35 2023 2024 2023 2024 2023 2024 +12% +32% +15% $1,058 $948 $1.62 $738 $1.23 FY $641 2023 2024 2023 2024
Slide 20: 2024 Cash Flow
2024 Cash Flow Cash flow generation was strong FY 2024 FY 2023 (in millions)1 Net Income $542 $214 Depreciation & Amortization $168 $177 Share-Based Compensation $79 $83 Other Non-Cash Charges $81 $273 Changes in Working Capital & Other ($69) $122 Cash From Operations $801 $870 Capital Expenditures
Slide 21: Balance Sheet Highlights
Balance Sheet Highlights Another year of improving our financial position ($ in millions) Q4 2024 Q4 2023 Year-End Inventory (in millions) Cash $1,388 $1,261 $894 Accounts Receivable $1,003 $1,082 $777 Inventory $502 $572 $572 $502 Debt $2,334 $2,330 Leverage Ratio 2.2x 2.5x (Total Debt / Adj. EBITD
Slide 22: Optimizing for Profitable Growth (OPG) 2024-2026
Optimizing for Profitable Growth (OPG) 2024-2026 Realized cost savings of $24 million in Q4 and $83 million in full year 2024 Target Cumulative Target Savings1 Allocation1 $200 $200 S&A ~30% 2025-26 $83 COGS ~70% 2024 2024 2026 On track to achieve target of $200 million of cost savings by 2026 (1) I
Slide 23: 2025 Guidance
2025 Guidance1 Expect top and bottom-line growth $ in millions, FY2025 FY2024 except EPS and percentages2 Guidance Actual Net Sales (Constant Currency) +2% to 3% $5,380 Adjusted Gross Margin Comparable 50.9% Adjusted Operating Income $740 - $765 $738 Adjusted Tax Rate 23% - 24% 21% Adjusted EPS $1.6
Slide 24: Closing
Closing “2024 was a year of strong operational excellence for Mattel with topline growth in the fourth quarter. Our priorities for the year were to grow profitability, expand gross margin, and generate strong free cash flow and we achieved all three objectives, well ahead of expectations. As we prog
Slide 25: ©2025 Mattel, Inc. All Rights Reserved.
©2025 Mattel, Inc. All Rights Reserved. 25
Slide 26: Appendix
Appendix 26
Slide 27: Consolidated Statements of Operations
Consolidated Statements of Operations ©2025 Mattel, Inc. All Rights Reserved. 27
Slide 28: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets ©2025 Mattel, Inc. All Rights Reserved. 28
Slide 29: Supplemental Balance Sheet and Cash Flow Data
Supplemental Balance Sheet and Cash Flow Data ©2025 Mattel, Inc. All Rights Reserved. 29
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 30
Slide 31: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 31
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 32
Slide 33: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 33
Slide 34: Worldwide Net Sales and Gross Billings
Worldwide Net Sales and Gross Billings ©2025 Mattel, Inc. All Rights Reserved. 34
Slide 35: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment ©2025 Mattel, Inc. All Rights Reserved. 35
Slide 36: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment ©2025 Mattel, Inc. All Rights Reserved. 36
Slide 37: Glossary of Non-GAAP Financial Measures & Key Performance Indicator
Glossary of Non-GAAP Financial Measures & Key Performance Indicator NON-GAAP FINANCIAL MEASURES To supplement our financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Mattel presents certain non-GAAP financial measures within the mean
Slide 38: Glossary of Non-GAAP Financial Measures & Key Performance Indicator
Glossary of Non-GAAP Financial Measures & Key Performance Indicator NON-GAAP FINANCIAL MEASURES Free Cash Flow and Free Cash Flow Conversion Free Cash Flow represents Mattel’s net cash flows from for operating activities less capital expenditures. Free Cash Flow Conversion represents Mattel’s free c