Slide 1: Q3 2023 Supplemental Information
Q3 2023 Supplemental Information
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: Q3 & YTD Q3 Highlights
Q3 YTD Q3 Revenue $710.2M Q3 13.8% 9.8% $1,402.3M YTD Q3 Net Income $155.4M $181.5M Adjusted Net Income1 $143.6M $204.7M Adjusted EBITDA1 $234.9M $353.9M Adjusted EBITDA Margin1 33.1% 25.2% Cash provided by Operating Activities $144.3M $159.1M 2023 Free Cash Flow1 $118.9M $78.6M Q3 & YTD Q3 HIGHLIGH
Slide 6: Toy Gross Product Sales and Revenue by Creative Centre, Q3
Toy Gross Product Sales1 and Revenue by Creative Centre Q3 2023 vs. Q3 2022 TOYS +9.9% TOYS +13.8% as reported as reported +8.9% Q3 2023 Q3 2022 +12.2% +7.7% as reported 800.0 in constant currency1 in constant currency1 +7.1% 700.0 in constant currency1 710.2 678.6 600.0 624.0 617.7 601.5 US$ millio
Slide 7: Toy Gross Product Sales and Revenue by Creative Centre, YTD
Toy Gross Product Sales1 and Revenue by Creative Centre YTD Q3 2023 vs. YTD Q3 2022 TOYS TOYS -14.3% -9.8% as reported -15.4% as reported -15.2% as reported YTD Q3 2023 YTD Q3 2022 -10.2% in constant currency1 1,600.0 -16.1% in constant currency1 in constant currency1 1,400.0 1,499.6 1,340.9 1,200.0
Slide 8: Gross Profit and Gross Margin
Gross Profit and Gross Margin Gross Profit ($) Gross Margin1 (%) 871.4 776.4 -170bps -70bps as reported as reported Q3 2023 YTD Q3 2023 56.2 56.1 386.9 350.4 55.4 54.5 YTD YTD YTD YTD Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 v 9 ©2023 Spin Master. All Rights Reserved. 1. Gross
Slide 9: Key P&L Financial Metrics
Key P&L Financial Metrics % % Q3 Q3 YTD Q3 YTD Q3 2023 2022 Change 2023 2022 Change as reported as reported SG&A2 202.1 195.3 3.5% 530.9 544.3 -2.5% Adjusted SG&A1,2 191.0 190.7 0.2% 494.0 525.5 -6.0% Depreciation and amortization 38.7 8.7 n.m. 70.1 28.5 146.0% (COGS) Depreciation and amortization 6
Slide 10: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics (in US$ millions) Capital Allocation September September December 30, 2023 30, 2022 31, 2022 Business Acquisitions: 4D3 $14.6M Cash and cash HEXBUG3 $12.9M 650.7 674.9 644.3 equivalents Other $5.3M Trade receivables, 442.8 255.1 311.0 v net As at Q3 2023 repur
Slide 11: Toys Q3 & YTD Q3 Highlights
TOYS Q3 YTD Q3 2023 Q3 & YTD Q3 Toy Gross $678.6M Q3 9.9% 14.3% HIGHLIGHTS Product Sales1 $1,284.9M YTD Q3 $601.5M Q3 Toy Revenue 8.9% 15.4% $1,134.1M YTD Q3 Adjusted EBITDA1 $166.8M $193.1M Adjusted EBITDA Margin1 27.7% 17.0% 1. Non-GAAP financial measure or ratio. Non-GAAP financial measures and r
Slide 12: Toy Gross Product Sales Q3 2023 vs. Q3 2022
Toy Gross Product Sales1 Q3 2023 vs. Q3 2022 Activities, Games & Puzzles and Plush Outdoor +4.1% +22.1% -1.8% -39.7% Wheels Preschool and & Action Dolls & Interactive Toy Gross Product Sales1 increased by 9.9% to $678.6M v 1. Non-GAAP financial measure or ratio. Non-GAAP financial measures and ratio
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 -18.0% -7.9% -18.5% -32.3% Toy Gross Product Sales1 decreased by 14.3% to $1,284.9M v 1. Non-GAAP financial measure or ratio. Non-GAAP financial measures and
Slide 14: POS Metrics
POS Metrics YTD Q3 2023 Global1 -28% Global1 Geographic Spin Master POS -12% YoY Q3 2023 and YTD Q3 2023 Global US Int. (ex. US) Global1 Global1 YTD YTD YTD 10% Q3 20231 Q3 20231 Q3 20231 Q3 20231 Q3 20231 Q3 20231 -21% v 1% -1% Global1 +31% -8% -9% Global1 -2% -12% -13% 15 ©2023 Spin Master. All Ri
Slide 15: Entertainment Q3 & YTD Q3 Highlights
ENTERTAINMENT Q3 YTD Q3 2023 Q3 & YTD Q3 Entertainment $63.4M Q3 71.4% 54.0% HIGHLIGHTS Revenue $134.9M YTD Q3 Operating Income $23.3M $68.3M Adjusted Operating Income 1 $24.0M $70.2M Operating Margin 36.8% 50.6% Adjusted Operating Margin1 37.9% 52.0% 1. Non-GAAP financial measure or ratio. Non-GAAP
Slide 16: $170M Box Office
$170M Box Office 17
Slide 17: Digital Games Q3 & YTD Q3 Highlights
DIGITAL GAMES Q3 YTD Q3 2023 Q3 & YTD Q3 Digital Games $45.3M Q3 30.9% 5.8% HIGHLIGHTS Revenue $133.3M YTD Q3 Operating Income $13.6M $39.4M Adjusted Operating Income1 $15.5M $47.3M Operating Margin 30.0% 29.6% Adjusted Operating Margin1 34.2% 35.5% 1. Non-GAAP financial measure or ratio. Non-GAAP f
Slide 18: Digital Games – Q3 Financial Results
Digital Games – Q3 Financial Results Revenue Adj. Operating (US$ millions) Income (US$ millions) Capital Expenditures (US$ millions) 45 35 16 10 5 3 2023 2022 2023 2022 2023 2022 19 ©2023 Spin Master. All Rights Reserved.
Slide 19: Monthly Active Users and Active Subscribers
Monthly Active Users (MAU) Active Subscribers Ages Ages: In App 2-5 ~ 293k1 -4% 6+ Purchase Subscription vs. 306k Q3 2022 25.8k Average Ending NEW MAU MAU 1. Includes Piknik subscribers Q3 2023 Ages 2-5 ~ 37k2 -1% +8.2M Subscription vs. 38k Q3 2022 +6.3M 57.1M 35.7k -8.6% vs Q3 2022 60.6M -3.3k 3.5k
Slide 20: Updated 2023 Outlook
Updates 2023 Outlook Toy Gross Adjusted Product Sales1 Revenue EBITDA Margin1 2022 $1.979M $2.02M v 19.2% Excluding PAW Patrol: Excluding PAW Patrol: 2023 down high single digits The Mighty Movie The Mighty Movie OUTLOOK compared to 2022, Distribution Revenue1,to Distribution as compared to flat to
Slide 21: 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 22: 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. 23 ©2023 Spin Master. All Rights Reserved. 2. Subject to external verification.