Slide 1: Second Quarter 2024 Earnings
Second Quarter 2024 Earnings (Unaudited Results) July 23, 2024
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: Chairman and CEO Perspective
Chairman and CEO Perspective A good quarter for Mattel Net Sales declined 1% as reported, and were comparable in constant currency1 Adjusted Gross Margin1 increased 430 basis points to 49.2% Adjusted EBITDA1 improved $23 million to $171 million Adjusted EPS1 increased $0.09 to $0.19 Gross Billings1
Slide 5: Mattel's Strategy
Mattel’s Strategy Grow IP-Driven Toy Business and Expand Entertainment Offering Our mission is to create innovative products and experiences that inspire fans, entertain audiences, and develop children through play ©2024 Mattel, Inc. All Rights Reserved. 5
Slide 6: Mattel's Strategy – Grow IP-driven Toy Business
Mattel’s Strategy – Grow IP-driven Toy Business Recent toy business progress Dolls Gross Billings1 declined while POS2 was positive Vehicles was up and POS was positive In ITPS, Fisher-Price grew double-digits, reflecting early success of new strategy Challenger categories in total grew, led by Game
Slide 7: Mattel's Strategy – Expand Entertainment Offering
Mattel’s Strategy – Expand Entertainment Offering Recent entertainment progress Masters of the Universe feature film worldwide theatrical release on June 5, 2026 and distributed by Amazon MGM Studios Monster High feature film will be co-developed with Universal Pictures and Academy Award-winning pro
Slide 8: Industry Performance and Expectations
Industry Performance and Expectations Toy industry performed better than anticipated in H1 Expect toy industry to decline modestly in 2024, an improvement from our outlook at the start of the year Beyond 2024, believe trends will further improve and industry will return to growth and continue to gro
Slide 9: P&L Highlights
P&L Highlights Another quarter of increased profitability YOY (in millions, Q2 2024 except EPS, percentages, and bps) Change Net Sales $1,080 -1% Constant Currency1 - Adjusted Gross Margin1 49.2% +430 bps Adjusted Operating Income1 $96 +$21 Adjusted EPS1 $0.19 +$0.09 Adjusted EBITDA1 $171 +$23 On tr
Slide 10: Q2 2024 Gross Billings by Category
Q2 2024 Gross Billings by Category 1 Gross Billings1 declined 2% YOY Growth Rate (%) Worldwide Gross Billings (as reported; in millions) As Constant Reported Currency1 Dolls $414 -6% -5% Vehicles $370 2% 2% Infant, Toddler, $190 -4% -3% and Preschool Action Figures, Building $227 1% 1% Sets, Games a
Slide 11: Q2 2024 Gross Billings by Region
Q2 2024 Gross Billings by Region 1 Maintained share in North America, and gained share in EMEA, in Q2 and H12 YOY Growth Rate (%) Gross Billings As Constant (as reported; in millions) Reported Currency1 North America $647 -3% -3% EMEA $296 -2% -2% Latin America $157 -2% -1% Asia Pacific $101 4% 7% W
Slide 12: Q2 2024 Adjusted Gross Margin Comparison
Q2 2024 Adjusted Gross Margin Comparison 1 Significant year-over-year improvement +430bps 1.0% 49.2% 0.6% 0.4% 1.1% 1.2% 44.9% Benefiting from cost savings and cost deflation (1) Amounts may not add due to rounding. Please see Appendix – Reconciliation of Non-GAAP Financial Measures and Glossary of
Slide 13: Q2 2024 Advertising and Adjusted SG&A
Q2 2024 Advertising and Adjusted SG&A 1 Advertising timing benefit; Adjusted SG&A impacted by several factors Advertising Adj. SG&A (in millions) (in millions) +$37 $361 $324 -$16 $90 $74 n/m n/m Q2'23 Q2'24 Q2'23 Q2'24 Expect 2024 Advertising and Adjusted SG&A to be comparable as a percentage of Ne
Slide 14: Q2 2024 Adjusted Profit Metrics
Q2 2024 Adjusted Profit Metrics Increase primarily driven by Gross Margin expansion Adj. Operating Income1 Adj. EBITDA1 Adj. EPS1 (in millions) (in millions) n/m n/m +$23 n/m +$0.09 $171 $148 $0.19 +$21 $96 $75 $0.10 Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Adjusted EPS1 benefiting from lower share count
Slide 15: YTD 2024 Cash Flow
YTD 2024 Cash Flow Improvements in both Net Income and Working Capital performance (in millions)1 YTD 2024 YTD 2023 Net Income (Loss) $29 ($79) Depreciation & Amortization $84 $87 Share-Based Compensation $38 $37 Other Non-Cash Charges $50 $41 Changes in Working Capital & Other ($418) ($411) Cash (u
Slide 16: Q2 2024 Balance Sheet Highlights
Q2 2024 Balance Sheet Highlights Balance sheet and financial position continue to improve (in millions) Q2 2024 Q2 2023 Cash $722 $300 Accounts Receivable $839 $891 Inventory $777 $972 Debt $2,332 $2,328 Leverage Ratio (Total Debt / Adj. EBITDA)1 2.3x 3.1x Debt portfolio well positioned with no matu
Slide 17: 2024-2026 Optimizing for Profitable Growth (OPG)
2024-2026 Optimizing for Profitable Growth (OPG) Continue to achieve significant cost savings Target Cumulative Target Savings1 Allocation $200 $200 $20 million of savings achieved in Q2 S&A ~30% $37 million of savings achieved in H1 2025-26 Target program savings of $200 million ~$60 COGS ~70% Expe
Slide 18: 2024 Guidance
2024 Guidance Reiterating guidance; Expect to outpace industry and gain market share FY2024 FY2023 (in millions, Guidance Actual except EPS and percentages) Net Sales Comparable $5,441 (Constant Currency1) Adjusted Gross Margin1 48.5% - 49% 47.5% Adjusted EPS1 $1.35 - $1.45 $1.23 Adjusted EBITDA1 $9
Slide 19: Closing
Closing “This was a good quarter for Mattel, where we achieved significant gross margin expansion, and growth in Adjusted EBITDA and Adjusted EPS. We further strengthened our balance sheet and more than doubled free cash flow in the trailing twelve-month period. Mattel is well positioned for the sec
Slide 20: Q2 2024 Earnings Call
Q2 2024 Earnings Call One of the most iconic brand portfolios in the world ©2024 Mattel, Inc. All Rights Reserved. 20
Slide 21: Appendix
Appendix 21
Slide 22: Consolidated Statements of Operations
Consolidated Statements of Operations MATTEL, INC. AND SUBSIDIARIES EXHIBIT I CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1 For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 % Change % Change % Change in % Change in (In millions, except per share and % Ne
Slide 23: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets MATTEL, INC. AND SUBSIDIARIES EXHIBIT II CONDENSED CONSOLIDATED BALANCE SHEETS1 June 30, December 31, 2024 2023 2023 (In millions) (Unaudited) Assets Cash and Equivalents $ 722.4 $ 299.9 $ 1,261.4 Accounts Receivable, Net 839.4 890.9 1,081.8 Inventories 776.9 97
Slide 24: Supplemental Balance Sheet and Cash Flow Data
Supplemental Balance Sheet and Cash Flow Data MATTEL, INC. AND SUBSIDIARIES EXHIBIT II SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1 June 30, 2024 2023 Key Balance Sheet Data: Accounts Receivable, Net Days of Sales Outstanding (DSO) 70 74 For the Six Months Ended June 30, (In millions)
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures MATTEL, INC. AND SUBSIDIARIES EXHIBIT III SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES For the Three Months Ended June 30, For the Six Months Ended June 30, (In millions, except percentage informa
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures MATTEL, INC. AND SUBSIDIARIES EXHIBIT III SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES For the Three Months Ended June 30, For the Six Months Ended June 30, (In millions, except per share and perc
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures MATTEL, INC. AND SUBSIDIARIES EXHIBIT III SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES For the Three Months Ended June 30, (In millions, except percentage and pts information) 2024 2023 Change Tax
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures MATTEL, INC. AND SUBSIDIARIES EXHIBIT III 1 SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES For the Trailing Twelve Months Ended June 30, (In millions, except percentage and pts information) 2024 2023
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures MATTEL, INC. AND SUBSIDIARIES EXHIBIT III 1 SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited) RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES For the Year Ended December 31, (In millions, except percentage and per share information) 2023 Gross Profit
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures MATTEL, INC. AND SUBSIDIARIES EXHIBIT III SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES For the Year Ended December 31, (In millions, except percentage information) 2023 Tax Rate Income Before Inco
Slide 31: Worldwide Net Sales and Gross Billings
Worldwide Net Sales and Gross Billings MATTEL, INC. AND SUBSIDIARIES EXHIBIT IV WORLDWIDE NET SALES AND GROSS BILLINGS1 (Unaudited)2 For the Three Months Ended June 30, For the Six Months Ended June 30, % Change % Change % Change in % Change in as Constant as Constant 2024 2023 Reported Currency 202
Slide 32: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment MATTEL, INC. AND SUBSIDIARIES EXHIBIT V 1 2,3 NET SALES AND GROSS BILLINGS BY SEGMENT (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, % Change % Change % Change in % Change in as Constant as Constant 2024 2023 Reported Currenc
Slide 33: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment MATTEL, INC. AND SUBSIDIARIES EXHIBIT VI 1 2 NET SALES AND GROSS BILLINGS BY SEGMENT (Unaudited) For the Three Months Ended June 30, For the Six Months Ended June 30, % Change % Change % Change in % Change in as Constant as Constant 2024 2023 Reported Currency
Slide 34: Glossary of Non-GAAP Financial Measures & Key Performance Indicators
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 35: Glossary of Non-GAAP Financial Measures & Key Performance Indicators
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 operating activities less capital expenditures. Free Cash Flow Conversion represents Mattel’s free cash