Slide 1: Q4 2023 Supplemental Information
Q4 2023 Supplemental Information
Slide 2: Disclaimer
Disclaimer This presentation of Spin Master Corp. (“Spin Master” or “the Company”) contains certain statements, other than statements of historical fact, which constitute “forward-looking information” within the meaning of applicable securities laws, including the Securities Act (Ontario). Such stat
Slide 3: Reimagining Everyday Play
REIMAGINING EVERYDAY PLAY Leading Global Children’s Entertainment Company with a Diversified Multi-Platform Portfolio 3 ©2024 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: Q4 2023 Highlights
Q4 2023 Revenue $502.6M Q4 7.9% 5.7% $1,904.9M 2023 YoY YoY Net (Loss) Income $(30.1M) $151.4M Adjusted Net Income1 $20.5M $225.2M Adjusted EBITDA1 $64.9M $418.8M Adjusted EBITDA Margin1 12.9% 22.0% Cash provided by Operating Activities $67.9M $227.0M Q4 & 2023 Free Cash Flow1 $44.3M $122.9M HIGHLIG
Slide 6: Toy Gross Product Sales and Revenue by Creative Centre Q4 2023 vs. Q4 2022
Toy Gross Product Sales1 and Revenue by Creative Centre Q4 2023 vs. Q4 2022 TOYS +4.8% TOYS +7.9% as reported as reported +2.5% Q4 2023 Q4 2022 +6.0% +2.4% as reported 600.0 in constant currency1 in constant currency1 +0.4% in constant currency1 500.0 502.3 502.6 479.2 465.8 US$ millions 400.0 406.8
Slide 7: Toy Gross Product Sales and Revenue by Creative Centre 2023 vs. 2022
Toy Gross Product Sales1 and Revenue by Creative Centre 2023 vs. 2022 TOYS TOYS -9.7% -5.7% as reported -11.3% as reported -10.9% as reported 2023 2022 -6.5% in constant currency1 2,500.0 -12.4% in constant currency1 in constant currency1 2,000.0 2,020.3 1,978.8 US$ millions 1,787.2 1,737.6 DIGITAL
Slide 8: Gross Profit and Gross Margin
Gross Profit and Gross Margin Gross Profit ($) Gross Margin1 (%) 1,103.8 1,038.4 +220bps -10bps as reported as reported Q4 2023 FY 2023 54.5 54.6 52.1 262.0 232.4 49.9 Q4 2023 Q4 2022 2023 2022 Q4 2023 Q4 2022 2023 2022 1. Gross margin is calculated as Gross profit divided by Revenue. v 8 ©2024 Spin
Slide 9: Key P&L Financial Metrics
Key P&L Financial Metrics % % Q4 Q4 2023 2022 Change 2023 2022 Change as reported as reported Selling, General and Administrative Expenses 244.8 237.8 2.9% 775.7 782.1 -0.8% (“SG&A“) Adjusted SG&A1 232.4 233.1 -0.3% 726.4 758.6 -4.2% Depreciation and amortization 34.6 10.7 223.4% 104.7 39.2 167.1% (
Slide 10: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics (in US$ millions) Capital Allocation December December Business Acquisitions: 31, 2023 31, 2022 4D3 $14.6M Cash and cash HEXBUG3 $12.9M 705.7 644.3 equivalents Other $5.8M Trade receivables, 414.4 311.0 net During 2023, repurchased $10.5M (397,700) subordinate
Slide 11: Toys Highlights
Q4 2023 TOYS $502.3M Q4 Toy Gross 4.8% 9.7% Q4 & 2023 Product Sales1 YoY YoY $1,787.2M 2023 HIGHLIGHTS $406.8M Q4 Toy Revenue 2.5% 11.3% YoY YoY $1,540.9M 2023 Operating (Loss) Income $(30.0M) $101.0M Operating Margin (7.4)% 6.6% Adjusted EBITDA1 $19.3M $212.4M Adjusted EBITDA Margin1 4.7% 13.8% 1.
Slide 12: Toy Gross Product Sales Q4 2023 vs. Q4 2022
Toy Gross Product Sales1 Q4 2023 vs. Q4 2022 Activities, Games & Puzzles and Plush Outdoor +25.9% +1.5% Flat -11.9% Wheels Preschool and & Action Dolls & Interactive Toy Gross Product Sales1 increased by 4.8% to $502.3M v 1. Non-GAAP financial measure or ratio. The composition, usefulness and quanti
Slide 13: Toy Gross Product Sales 2023 vs. 2022
Toy Gross Product Sales1 2023 vs. 2022 Activities, Wheels Preschool and Games & Puzzles & Action Dolls & Interactive and Plush Outdoor -9.2% -5.7% -13.2% -26.8% Toy Gross Product Sales1 decreased by 9.7% to $1,787.2M v 1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitat
Slide 14: Point-of-Sale ("POS") Metrics
Point-of-Sale ("POS") Metrics 2023 FY 23 Geographic Global1 FY 23 Spin Master POS +21% Global1 YoY Q4 and FY 2023 Q4 -10% Q4 Global1 Global1 Global US Int. (ex. US) +11% Q4 Global1 -10% Q4 FY Q4 FY Q4 FY +18% 20231 20231 20231 20231 20231 20231 7% 7% 5% FY 23 4% 3% Global1 +22% FY 23 1% 1% Global1 F
Slide 15: Entertainment Highlights
ENTERTAINMENT Q4 2023 Q4 & 2023 HIGHLIGHTS Entertainment Revenue $55.2M Q4 76.9% 60.0% YoY $190.1M 2023 YoY Operating Income $9.7M $78.0M Adjusted Operating Income 1 $10.5M $80.7M Operating Margin 17.6% 41.0% Adjusted Operating Margin1 19.0% 42.5% 1. Non-GAAP financial measure or ratio. The composit
Slide 16: +$200M Box Office
+$200M Box Office 16
Slide 17: Digital Games Highlights
DIGITAL GAMES Q4 2023 Q4 & 2023 HIGHLIGHTS Digital Games Revenue $40.6M Q4 7.1% 6.1% YoY $173.9M 2023 YoY Operating Income $9.7M $49.1M Adjusted Operating Income1 $10.8M $58.1M Operating Margin 23.9% 28.2% Adjusted Operating Margin1 26.6% 33.4% 1. Non-GAAP financial measure or ratio. The composition
Slide 18: Monthly Active Users and Active Subscriptions
Monthly Active Users1 ("MAU") Active Subscriptions2 Ages 2-5 ~ 330k1 +13% Subscription vs. 292k Q4 2022 Ages: In App 6+ Purchase 95.4k NEW 1. Includes Piknik subscribers Average Ending Ages MAU MAU 2-5 ~ 35k2 -11% vs. 39k Q4 2022 Q4 2023 Subscription +6.6M +4.3M 34k 59.4M 62.1M NEW 2. Includes ELA a
Slide 19: 2024 Outlook
2024 Outlook Toy Gross Adjusted Product Sales1 Revenue EBITDA Margin1 2023 $1,787.2M $1,904.9M 22.0% In line with 2023, In line with 2023, In line with 2023, excluding Melissa & excluding Melissa excluding Melissa Doug. & Doug. & Doug and net cost Net Cost Synergies synergies realized. Excluding Sea
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 21 ©2024 Spin Master. All Rights Reserved. costs associated with donations. 2. Subject to external verification.