Slide 1: First Quarter 2024 Earnings
First Quarter 2024 Earnings (Unaudited Results) April 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 Significant Gross Margin expansion, positive Adjusted EBITDA1, and very strong improvement in Free Cash Flow1 Net Sales declined 1% as reported and in constant currency1 Adjusted Gross Margin1 increased 830 basis points to 48.3% Adjusted EBITDA improved $67 million, from
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 progress in the toy business Barbie was #1 Doll property globally and continued to gain share1; 65th anniversary celebrations begun; Mini BarbieLand launched Hot Wheels led the Vehicles category1, with further expansion of its die-cast line and
Slide 7: Mattel's Strategy – Expand Entertainment Offering
Mattel’s Strategy – Expand Entertainment Offering Recent progress outside the toy aisle Successful award season for the Barbie movie, highlighted by Grammy, Golden Globe, and Oscar wins We continue to make meaningful progress advancing our theatrical slate of 15 announced films in development, with
Slide 8: Q1 2024 Earnings
Q1 2024 Earnings ©2024 Mattel, Inc. All Rights Reserved. 8
Slide 9: P&L Highlights
P&L Highlights Achieved strong bottom-line results in the quarter YOY (in millions, Q1 2024 except EPS, percentages, and bps) Change Net Sales $810 -1% Constant Currency1 -1% Adjusted Gross Margin1 48.3% +830 bps Adjusted Operating Loss1 ($23) +$63 Adjusted EPS1 ($0.05) +$0.19 Adjusted EBITDA1 $54 +
Slide 10: Q1 2024 Gross Billings by Category
1 Q1 2024 Gross Billings by Category Gross Billings declined 2% YOY Growth Rate (%) Worldwide Gross Billings YOY Growth Rate (%) Worldwide Gross (as reported; Billings $ in millions) As Constant (as reported; $ in millions) As Reported Constant1 Currency Reported Currency1 Dolls 295 -4% -5% Dolls 29
Slide 11: Q1 2024 Gross Billings by Region
1 Q1 2024 Gross Billings by Region Growth in three of four regions YOY Growth Rate (%) Gross Billings As Constant (as reported; $ in millions) Reported Currency1 North America 506 1% 1% EMEA 223 -11% -13% Latin America 93 6% 1% Asia Pacific 76 11% 15% We believe retail inventory levels are now appro
Slide 12: Q1 2024 Adjusted Gross Margin Comparison
1 Q1 2024 Adjusted Gross Margin Comparison Significant increase in Adjusted Gross Margin, +830 bps +830bps 1.8% 48.3% 1.2% 0.8% 2.2% 2.3% 40.0% Multiple drivers of first quarter gross margin performance (1) Amounts may not add due to rounding. Please see Appendix – Reconciliation of Non-GAAP Financi
Slide 13: Advertising and Adjusted SG&A
1 Advertising and Adjusted SG&A Adjusted SG&A increase primarily driven by market-related pay increases and investments, partly offset by cost savings Advertising Adj. SG&A (in millions) (in millions) +$6 $336 $343 -$5 $76 $71 n/m n/m Q1'23 Q1'24 Q1'23 Q1'24 Expect 2024 Advertising and Adjusted SG&A
Slide 14: Adjusted Profit Metrics
Adjusted Profit Metrics Improvement driven primarily by Gross Margin expansion Adj. Operating Income 1 Adj. EBITDA1 Adj. EPS1 (in millions) (in millions) n/m n/m n/m +$67 $54 +$63 +$0.19 ($23) ($14) $(0.05) $(0.24) ($87) Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Off to a good start and expect to achieve f
Slide 15: Cash Flow
Cash Flow Improvements in both Working Capital performance and Net Income (in millions)1 Q1 2024 Q1 2023 Net Income (Loss) ($28) ($106) Depreciation & Amortization $42 $43 Share-Based Compensation $18 $17 Other Non-Cash Charges $21 $22 Changes in Working Capital & Other ($17) ($183) Cash from Operat
Slide 16: Balance Sheet Highlights
Balance Sheet Highlights Strong financial position with more than $1.1 billion in cash (in millions) Q1 2024 Q1 2023 Cash $1,130 $462 Debt $2,331 $2,327 Accounts Receivable $673 $674 Inventory $669 $961 Leverage Ratio (Total Debt / Adj. EBITDA)1 2.3x 2.9x Debt portfolio well positioned with no matur
Slide 17: 2024-2026 Optimizing for Profitable Growth (OPG)
2024-2026 Optimizing for Profitable Growth (OPG) Realizing benefits from new cost savings program Target Cumulative Target Savings1 Allocation $200 $200 S&A $17 million of savings achieved in Q1 ~30% 2025-26 Target program savings of $200 million ~$60 COGS Expected cash expenditures of $130-$165 mil
Slide 18: 2024 Guidance
2024 Guidance Expect to outpace the industry, gain global market share, and improve profitability 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 Adjust
Slide 19: Closing
Closing “We are off to a good start to the year with significant gross margin expansion, positive Adjusted EBITDA, and very strong improvement in free cash flow. Trends in consumer demand for our product improved through the quarter and we expect to outpace the industry and gain market share in 2024
Slide 20: Q1 2024 Earnings Call
Q1 2024 Earnings Call ©2024 Mattel, Inc. All Rights Reserved. 20
Slide 21: Appendix
Appendix 21
Slide 22: Consolidated Statements of Operations
Consolidated Statements of Operations ©2024 Mattel, Inc. All Rights Reserved. 22
Slide 23: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets ©2024 Mattel, Inc. All Rights Reserved. 23
Slide 24: Supplemental Balance Sheet and Cash Flow Data
Supplemental Balance Sheet and Cash Flow Data ©2024 Mattel, Inc. All Rights Reserved. 24
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2024 Mattel, Inc. All Rights Reserved. 25
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2024 Mattel, Inc. All Rights Reserved. 26
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2024 Mattel, Inc. All Rights Reserved. 27
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2024 Mattel, Inc. All Rights Reserved. 28
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2024 Mattel, Inc. All Rights Reserved. 29
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2024 Mattel, Inc. All Rights Reserved. 30
Slide 31: Worldwide Net Sales and Gross Billings
Worldwide Net Sales and Gross Billings ©2024 Mattel, Inc. All Rights Reserved. 31
Slide 32: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment ©2024 Mattel, Inc. All Rights Reserved. 32
Slide 33: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment ©2024 Mattel, Inc. All Rights Reserved. 33
Slide 34: 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 35: 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 operating activities less capital expenditures. Free Cash Flow Conversion represents Mattel’s free cash