Slide 1: Q2 2023 Supplemental Slides
Q2 2023 Supplemental Slides
Slide 2: Disclaimer
Disclaimer This presentation for Spin Master Corp. (“Spin Master” or “the Company”) contains forward-looking statements about the Company’s objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects and opportunities. Specific fo
Slide 3: Reimagining Everyday Play
REIMAGINING EVERYDAY PLAY Leading Global Children’s Entertainment Company with a Diversified Multi-Platform Portfolio 4 ©2023 Spin Master. All Rights Reserved.
Slide 4: Three Creative Centres
Three Creative Centres Toys Entertainment Spin Master Entertainment creates With distribution in over 100 countries, Spin Master is best known and produces compelling for award-winning brands PAW Patrol®, Bakugan®, Kinetic Sand®, multiplatform content, through its Air Hogs®, Hatchimals®, Rubik’s Cub
Slide 5: Q2 & YTD Q2 Highlights
Q2 YTD Q2 Revenue $420.7M Q2 16.9% 25.6% $692.1M YTD Q2 Net Income $28.0M $26.1M Adjusted Net Income1 $49.4M $61.7M Adjusted EBITDA1 $88.4M $119.0M Adjusted EBITDA Margin1 21.0% 17.2% Cash provided by Operating Activities $19.1M $14.8M 2023 Free Cash Flow1 $(5.9M) $(40.3M) Q2 & YTD Q2 HIGHLIGHTS Bas
Slide 6: Toy Gross Product Sales and Revenue by Creative Centre Q2
Toy Gross Product Sales1 and Revenue by Creative Centre Q2 2023 vs. Q2 2022 TOYS TOYS -16.9% -19.5% as reported as reported -20.9% Q2 2022 Q2 2023 -17.1% 600 -20.0% as reported in constant currency1 in constant currency1 -21.3% 500 in constant currency1 506.3 484.4 US$ millions 400 437.6 420.7 DIGIT
Slide 7: Toy Gross Product Sales and Revenue by Creative Centre YTD
Toy Gross Product Sales1 and Revenue by Creative Centre YTD Q2 2023 vs. YTD Q2 2022 TOYS -31.3% TOYS -25.6% as reported -32.5% as reported -31.1% as reported YTD Q2 2022 YTD Q2 2023 -25.3% in constant currency1 in constant currency1 1000 -32.4% in constant currency1 900 930.5 800 881.9 788.5 700 US$
Slide 8: Gross Profit and Gross Margin
Gross Profit and Gross Margin Gross Profit in $ Gross Margin in %2 521.0 -110bps +30bps as reported as reported 389.5 Q2 2023 YTD Q2 2023 56.3 283.7 56.0 56.0 231.0 54.9 YTD YTD YTD YTD Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 v 1. Non-GAAP financial measure or ratio. Non-GAAP
Slide 9: Key P&L Financial Metrics
Key P&L Financial Metrics % % Q2 Q2 YTD Q2 YTD Q2 2023 2022 Change 2023 2022 Change as reported as reported SG&A2 179.5 190.4 -5.7% 328.8 349.0 -5.8% Adjusted SG&A1,2 163.5 181.0 -9.7% 303.0 334.8 -9.5% Depreciation and amortization 20.1 9.3 116.1% 31.4 19.8 58.6% (COGS) Depreciation and amortizatio
Slide 10: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics (in US$ millions) Capital Allocation June 30, June 30, December 31, 2023 2022 2022 Business Acquisitions: 4D3 $14.6M Cash and cash HEXBUG3 $12.9M 554.9 558.1 644.3 equivalents Other $5.3M Trade receivables, net 272.4 262.3 311.0 v Other receivables4 60.0 71.7
Slide 11: Toys Q2 & YTD Q2 Highlights
TOYS Q2 YTD Q2 2023 Q2 & YTD Q2 Toy Gross $390.0M Q2 19.5% 31.3% HIGHLIGHTS Product Sales1 $606.3M YTD Q2 $346.3M Q2 Toy Revenue 20.9% 32.5% $532.6M YTD Q2 Adjusted EBITDA1 $47.7M $26.3M Adjusted EBITDA Margin1 13.8% 4.9% 1. Non-GAAP financial measure or ratio. Non-GAAP financial measures and ratios
Slide 12: Toy Gross Product Sales Q2 2023 vs. Q2 2022
Toy Gross Product Sales1 Q2 2023 vs. Q2 2022 Activities, Wheels Preschool and Games & Puzzles & Action Dolls & Interactive and Plush Outdoor -12.8% -20.8% -24.4% -11.7% Toy Gross Product Sales1 decreased by 19.5% to $390.0M v 1. Non-GAAP financial measure or ratio. Non-GAAP financial measures and ra
Slide 13: Toy Gross Product Sales YTD 2023 vs. YTD 2022
Toy Gross Product Sales1 YTD 2023 vs. YTD 2022 Activities, Wheels Preschool and Games & Puzzles & Action Dolls & Interactive and Plush Outdoor -32.8% -30.3% -31.5% -30.8% Toy Gross Product Sales1 decreased by 31.3% to $606.3M v 1. Non-GAAP financial measure or ratio. Non-GAAP financial measures and
Slide 14: POS Metrics
POS Metrics YTD Q2 2023 Global1 -34% Global1 Geographic Spin Master POS -7% YoY Q2 2023 and YTD Q2 2023 Global1 US1 Int.1 (ex. US) Global1 Global1 YTD YTD YTD -2% Q2 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2023 Q2 2023 -15% v -5% Flat Global1 -11% +61% -17% -16% Global1 -6% -22% 15 ©2023 Spin Master. All Ri
Slide 15: Entertainment Q2 & YTD Q2 Highlights
ENTERTAINMENT Q2 YTD Q2 2023 Q2 & YTD Q2 Entertainment $33.9M Q2 19.4% 41.3% HIGHLIGHTS Revenue $71.5M YTD Q2 Operating Income $15.7M $45.0M Adjusted Operating Income 1 $16.3M $46.2M Operating Margin 46.3% 62.9% Adjusted Operating Margin1 48.1% 64.6% 1. Non-GAAP financial measure or ratio. Non-GAAP
Slide 16: 17
17
Slide 17: Digital Games Q2 & YTD Q2 Highlights
DIGITAL GAMES Q2 YTD Q2 2023 Q2 & YTD Q2 Digital Games $40.5M Q2 0.5% 3.7% HIGHLIGHTS Revenue $88.0M YTD Q2 Operating Income $9.6M $25.8M Adjusted Operating Income1 $12.8M $31.8M Operating Margin 23.7% 29.3% Adjusted Operating Margin1 31.6% 36.1% 1. Non-GAAP financial measure or ratio. Non-GAAP fina
Slide 18: Digital Games Revenue and Monthly Active Users
Digital Games ~ 76M vs. 75M Q2 2022 Digital Games Revenue – Q2 (US$ millions) TOCA BOCA Toca Flat Ages 6+ Monthly Active Users (MAU) ~ 58M* vs. 56M Q2 2022 Toca Life World MAU +3% TOCA LIFE WORLD * included in Toca Boca balance above Ages 6+ ~ 293k vs. 306K Q2 2022 -4% Sago Kids in Active Subscriber
Slide 19: Maintains 2023 Outlook
Maintains 2023 Outlook Toy Gross Adjusted Product Sales1 Revenue EBITDA Margin1 2022 $1.979M $2.02M v 19.2% Excluding PAW Excluding PAW 2023 Patrol: The Mighty Patrol: The Mighty OUTLOOK Movie Distribution Movie Distribution Revenue1, Revenue1, Flat to slightly down In line with 2022 Flat to slightl
Slide 20: CSR Vision
CSR Vision Reimagining Everyday Play for Future Generations Spin Master creates magical play experiences for children and their families. We foster an inclusive culture, empowering children to grow and learn through play while acting as responsible custodians of the world these children will one day
Slide 21: 2022 CSR Performance
2022 CSR Performance v 1.Cash donations include monetary contributions to registered charities, cost of goods of donated products and direct operational costs associated with donations. 22 ©2023 Spin Master. All Rights Reserved. 2. Subject to external verification.