The Annual Report on the World's Most Valuable Toy Brands March 2017

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Toys 25 2017 The annual report on the world’s most valuable toy brands March 2017 Foreword Contents

steady downward spiral of poor communication, Foreword 2 wasted resources and a negative impact on the bottom line. Definitions 4 Methodology 6 Brand Finance bridges the gap between the marketing and financial worlds. Our teams have Executive Summary 8 experience across a wide range of disciplines from market research and visual identity to tax and Full Table (USDm) 11 accounting. We understand the importance of design, advertising and marketing, but we also Understand Your Brand’s Value 12 believe that the ultimate and overriding purpose of How We Can Help 14 brands is to make money. That is why we connect brands to the bottom line. Contact Details 15

By valuing brands, we provide a mutually intelligible language for marketers and finance teams. David Haigh, CEO, Brand Finance Marketers then have the ability to communicate the What is the purpose of a strong brand; to attract significance of what they do and boards can use customers, to build loyalty, to motivate staff? All the information to chart a course that maximises true, but for a commercial brand at least, the first profits. answer must always be ‘to make money’. Without knowing the precise, financial value of an asset, how can you know if you are maximising your Huge investments are made in the design, launch returns? If you are intending to license a brand, how and ongoing promotion of brands. Given their can you know you are getting a fair price? If you are potential financial value, this makes sense. intending to sell, how do you know what the right Unfortunately, most organisations fail to go beyond time is? How do you decide which brands to that, missing huge opportunities to effectively make discontinue, whether to rebrand and how to arrange use of what are often their most important assets. your brand architecture? Brand Finance has Monitoring of brand performance should be the conducted thousands of brand and branded next step, but is often sporadic. Where it does take business valuations to help answer these questions. place it frequently lacks financial rigour and is heavily reliant on qualitative measures poorly Brand Finance’s recently conducted share price understood by non-marketers. study revealed the compelling link between strong brands and stock market performance. It was found As a result, marketing teams struggle to that investing in the most highly branded companies communicate the value of their work and boards would lead to a return almost double that of the then underestimate the significance of their brands average for the S&P 500 as a whole. to the business. Skeptical finance teams, Acknowledging and managing a company’s unconvinced by what they perceive as marketing intangible assets taps into the hidden value that lies mumbo jumbo may fail to agree necessary within it. The following report is a first step to investments. What marketing spend there is can understanding more about brands, how to value end up poorly directed as marketers are left to them and how to use that information to benefit the operate with insufficient financial guidance or business. The team and I look forward to continuing accountability. The end result can be a slow but the conversation with you.

2. Brand Finance AustraliaGlobalAirlinesToys 25 500 30February 100 30February MarchFebruary 2017 20162016 2015 Brand Finance Toys 25 February 2017 3. Definitions

Effect of a Brand on Stakeholders Definitions E.g. + Enterprise Value – the value of the Mattel entire enterprise, made up of Directors Potential Middle ‘Branded‘Branded multiple branded businesses Customers Managers Enterprise’Enterprise’

Existing All Other ‘Branded‘Branded + Branded Business Value – the Customers Employees Business’ E.g. Business’ Barbie value of a single branded business operating under the subject brand ‘Brand’ Contribution’ Influencers Production + Brand Contribution– The total e.g. Media Brand E.g. economic benefit derived by a Barbie business from its brand ‘Brand Value’ Trade Sales Channels E.g. + Brand Value – the value of the Barbie trade marks (and relating Strategic marketing IP and ‘goodwill’ Debt Allies & providers attached to it) within the branded Suppliers Investors business

Branded Business Value Brand Contribution Brand Value Brand Strength

A brand should be viewed in the context of the The brand values contained in our league tables In the very broadest sense, a brand is the focus Brand Strength is the part of our analysis most business in which it operates. For this reason are those of the potentially transferable brand for all the expectations and opinions held by directly and easily influenced by those Brand Finance always conducts a Branded asset only, but for marketers and managers customers, staff and other stakeholders about an responsible for marketing and brand Business Valuation as part of any brand valuation. alike, an assessment of overall brand contribution organisation and its products and services. management. In order to determine the strength Where a company has a purely mono-branded to a business provides powerful insights to help However, when looking at brands as business of a brand we have developed the Brand architecture, the business value is the same as optimise performance. assets that can be bought, sold and licensed, a Strength Index (BSI). We analyse marketing the overall company value or ‘enterprise value’. more technical definition is required. investment, brand equity (the goodwill Brand Contribution represents the overall uplift accumulated with customers, staff and other In the more usual situation where a company in shareholder value that the business derives Brand Finance helped to craft the internationally stakeholders) and finally the impact of those on owns multiple brands, business value refers to from owning the brand rather than operating a recognised standard on Brand Valuation, ISO business performance. the value of the assets and revenue stream of the generic brand. 10668. That defines a brand as “a marketing- business line attached to that brand specifically. related intangible asset including, but not limited Following this analysis, each brand is assigned We evaluate the full brand value chain in order to Brands affect a variety of stakeholders, not just to, names, terms, signs, symbols, logos and a BSI score out of 100, which is fed into the understand the links between marketing customers but also staff, strategic partners, designs, or a combination of these, intended to brand value calculation. Based on the score, investment, brand tracking data, stakeholder regulators, investors and more, having a identify goods, services or entities, or a each brand in the league table is assigned a behaviour and business value to maximise the significant impact on financial value beyond combination of these, creating distinctive images rating between AAA+ and D in a format similar returns business owners can obtain from their what can be bought or sold in a transaction. and associations in the minds of stakeholders, to a credit rating. AAA+ brands are exceptionally brands. thereby generating economic benefits/value”. strong and well managed while a failing brand would be assigned a D grade.

4. Brand Finance Toys 25 February 2017 Brand Finance Toys 25 February 2017 5. Methodology

League Table Valuation Methodology Brand Finance Typical Project Approach Brand Finance calculates the values of the 2 Determine the royalty rate range for the respective brands in its league tables using the ‘Royalty brand sectors. This is done by reviewing comparable Relief approach’. This approach involves licensing agreements sourced from Brand Finance’s estimating the likely future sales that are extensive database of license agreements and other attributable to a brand and calculating a royalty online databases. Brand Equity Stakeholder Brand Inputs Performance rate that would be charged for the use of the 3 Calculate royalty rate. The brand strength score is Value Drivers Behaviour Contribution brand, i.e. what the owner would have to pay for applied to the royalty rate range to arrive at a royalty the use of the brand—assuming it were not rate. For example, if the royalty rate range in a brand’s already owned. sector is 1-5% and a brand has a brand strength The steps in this process are as follows: score of 80 out of 100, then an appropriate royalty 1 2 3 4 rate for the use of this brand in the given sector will Brand Audit Trial & Preference Acquisition & Valuation Modelling 1 Calculate brand strength on a scale of 0 to 100 based be 4.2%. Retention on a number of attributes such as emotional 4 Determine brand specific revenues estimating a connection, financial performance and sustainability, proportion of parent company revenues attributable Audit the impact Run analytics to Link stakeholder Model the impact of behaviour on to a specific brand. of brand understand how behaviour with core financial performance and among others. This score is known as the Brand key financial isolating the value of the brand 5 Determine forecast brand specific revenues using a management and perceptions link to Strength Index, and is calculated using brand data investment on behaviour value drivers contribution from the BrandAsset® Valuator database, the world’s function of historic revenues, equity analyst forecasts brand equity largest database of brands, which measures brand and economic growth rates. equity, consideration and emotional imagery 6 Apply the royalty rate to the forecast revenues to attributes to assess brand personality in a category- derive brand revenues. agnostic manner. 7 Brand revenues are discounted post tax to a net present value which equals the brand value. Brand strength Brand Brand revenues Brand value index ‘Royalty rate’ How We Help to Maximise Value (BSI)

6. Build scale through licensing/franchising/partnerships Brand Strong brand investment 5. Build core business through market expansion

4. Build core business through product development Brand

equity Maximising a strong brand 3. Portfolio management/rebranding Group companies

2. Optimise brand positioning and strength Brand Weak brand performance Forecast revenues 1. Base-case brand and business valuation (using internal data), growth strategy Evaluate ongoing performance formulation, target-setting, scorecard and Brand strength BSI score applied to an Royalty rate applied to Post-tax brand tracker set-up expressed as a BSI appropriate sector forecast revenues to revenues are Current brand and Target brand and score out of 100. royalty rate range. derive brand values. discounted to a net business value business value present value (NPV) which equals the brand value. 6. Brand Finance Toys 25 February 2017 Brand Finance Toys 25 February 2017 7.

Executive Summary

Rank 2017: 1 2016: 1 Rank 2017: 6 2016: 7 BV 2017: $7,597m BV 2017: $252m 1 +68% 6 +10% BV 2016: $4,520m BV 2016: $229m Brand Rating: AAA+ Brand Rating: AA+

Toys Rank 2017: 2 2016: 16 Rank 2017: 7 2016: 5 BV 2017: $1,024m BV 2017: $ 247m 2 +652% 7 +2% BV 2016: $136m BV 2016: $ 241m Brand Rating: AA+ Brand Rating: AA

Rank 2017: 3 2016: 2 Rank 2017: 8 2016: 12 BV 2017: $773m 8 BV 2017: $232m 25 3 -13% +33% BV 2016: $886m BV 2016: $175m Brand Rating: AAA- Brand Rating: AAA-

Rank 2017: 4 2016: 3 Rank 2017: 9 2016: 8 BV 2017: $388m BV 2017: $211m 4 -32% 9 +1% BV 2016: $571m BV 2016: $208m Brand Rating: AAA- Brand Rating: AAA-

Rank 2017: 5 2016: 6 Rank 2017: 10 2016: 14 BV 2017: $297m BV 2017: $198m 5 +29% 10 +41% BV 2016: $231m BV 2016: $141m Brand Rating: AAA- Brand Rating: AAA

Lego is the world’s most valuable toys brand, with appointment of Jørgen Vig Knudstorp, who Geographic expansion provides further Meanwhile, Lego Life, launched in the UK in a brand value that now stands at US$7.6 billion. It discontinued unpopular ranges and ensured that opportunities for growth. Lego opened its first November 2016, enables them to post pictures of is also the industry’s strongest brand (as all products were compatible with the core range, factory in China in Jiaxing in 2014 as well as a new their proudest creations or imagine new ones and determined by Brand Finance’s Brand Strength both visually and mechanically, helping to reverse Asian Head Office in Shanghai. China presents makes Lego a profoundly social experience as Index) and is in fact the most powerful brand the dilution of the brand and enhance brand equity. risks, including the fact that Lego cannot rely on well as a personal one. Lego’s monobrand across any industry category. The building blocks the nostalgia or awareness that it has enjoyed in structure makes it a rarity within the industry and for Lego’s brand strength have always been Since then a decade of repeated marketing and Europe and the US for decades, however it is also helps to explain why, even accounting for its present. Its appeal spans generations; as well as financial successes have transformed Lego’s a huge opportunity. China is a vast market (there formidable brand strength, it is in a league of its the creative freedom it gives children, the brand fortunes.The release of the Lego Movie in 2014 are nearly 150 million children under the age of own in terms of brand value. Mattel for example appeals to the nostalgia of adults. provided the final push required to make it not just 10) but domestic scandals over the safety of has a house of brands approach, so no one brand a very powerful brand, but the world’s most children’s products leave fertile ground for a can challenge Lego in value terms. It generally avoids gendered marketing. By powerful brand in 2015. The film was both a critical foreign firm with a reputation for reliability, high appealing to boys and girls equally, Lego and commercial success (it was the top grossing standards of production and for nurturing Bandai Namco is the second most valuable and maximises the size of its target demographic. That film of 2014 in the UK and Ireland), providing not children’s creative and cognitive development. fastest growing brand. Its value grew an impressive approach also pleases parents, as concerns just immediate revenue but also an unrivalled 652% to US$1 billion. The combined name of mount over the effect toys may have on the outlook marketing tool. Further film releases are planned Whilst Lego will always draw its strength and brand Namco Bandai had only been applied in a and ambitions of children – girls in particular. In the for September 2017, March 2018 and 2019, which identity from the simplicity of its tangible products, corporate context. This year, the name has been early 2000s, Lego was facing near bankruptcy. An will continue to build the brand for years to come it is also responding to the digital era. Lego Boost, applied across a range of consumer-facing overextended product range and problems with while contributing significantly to Lego’s already set to launch in August, allows children to turn products, ultimately increasing revenue attributable stock control had led the company to a nadir. The vast licensing income. Lego creations into programmable robots using a to the brand and thus, brand value. downward spiral was arrested following the smartphone app.

8. Brand Finance Toys 25 February 2017 Brand Finance Toys 25 February 2017 9. Brand Finance Executive Summary Toys 25 (USDm) Brand Value Over Time Top 100 most valuable toy brands 1 - 25. Rank Rank Brand name Domicile Brand % Brand Brand Brand 8 2017 2016 value (USDm) change value(USDm) rating rating Nerf 2017 2016 2017 2016 1 1 Lego Denmark 7,597 68% 4,520 AAA+ AAA+ 7 2 16 Bandai Namco Japan 1,024 652% 136 AA+ A+ 3 2 Fisher-Price United States 773 -13% 886 AAA- AAA- Barbie 4 3 Barbie United States 388 -32% 571 AAA- AAA- 6 5 6 Nerf United States 297 29% 231 AAA- AAA- 6 7 Mattel United States 252 10% 229 AA+ AAA- Fisher-Price 7 5 Gundam Japan 247 2% 241 AA A+ 5 8 12 Hot Wheels United States 232 33% 175 AAA- AA+ 9 8 Hasbro United States 211 1% 208 AAA- AAA- 10 14 My Little Pony United States 198 41% 141 AAA AAA- 4 Bandai Namco 11 11 Monster High 12 4 Yo-Kai Watch 13 13 Play-Doh 3 Lego 14 10 Power Rangers Brand ae n 15 9 Playskool 2 16 15 Monopoly 17 New MEGA Bloks 18 23 Magic: The Gathering 1 19 20 Masked Rider 20 18 Transformers 21 25 American Girl 0 22 New Tomy Company 23 24 Littlest Pet Shop 2013 2014 2015 2016 2017 24 New TOMICA 25 New Disney Princess Brand Value Change 2016-2017 (USDm) Brand Value Change 2016-2017 (%) The world has seen a 3% decline in global sales of million. The doll-maker has faced pressures about Lego Lego 3077 3077 Bandai NamcoBandai Namco 652% 652% games and puzzles and Monopoly’s brand value the shape of a Barbie, often accused of promoting Bandai NamcoBandai Namco 888 888 Lego Lego 68% 68% reflects this trend. Its value fell 6% to US$132 an unhealthy body image since its inception.

Nerf Nerf 66 66 My Little PonyMy Little Pony 41% 41% million this year. What is surprising is the fact that some traditional brands have managed to To combat this, Mattel introduced a range of body Hot Wheels 57 American Girl 38% Hot Wheels 57 American Girl 38% withstand the pressure of the global trend, largely types for the Barbie doll as well as incorporating My Little PonyMy Little Pony 57 57 Magic: The Magic:Gathering The Gathering 35% 35% thanks to licensing. Hasbro, for example, has ethnic diversity. However, despite the attempt to Magic: TheMagic: Gathering The Gathering 29 29 Hot WheelsHot Wheels 33% 33% developed a Jenga: Disney Frozen edition to rid the brand of negative connotations, sales fell appeal to a younger demographic. 2% globally in the fourth quarter of 2016. The American GirlAmerican Girl 26 26 Nerf Nerf 29% 29% brand has since unveiled its 3D Barbie Hello Mattel 246 10% Mattel 246 Mattel Mattel 10% Hasbro has attempted to modernise Monopoly by Hologram which will be launched in the latter half -8 Monopoly-8 Monopoly -6% Monopoly-6% Monopoly introducing new editions such as ‘Here and Now’ of this year. -9 Masked-9 RiderMasked Rider -8% Masked-8% RiderMasked Rider and ‘Ultimate Banking’, yet its efforts seem futile in recapturing interest. Hasbro has now announced The new internet-enabled digital assistant will -12 Transformers-12 Transformers -11% Transformers-11% Transformers the discontinuation of Monopoly’s thimble token, allow its user to verbally communicate with it, not -42 Power Rangers -42 Power Rangers -13% Fisher-Price-13% Fisher-Price a standard-issue since the game first launched in dissimilar to Apple’s Siri. It will be interesting to -54 Playskool -54 Playskool -23% Power-23% RangersPower Rangers 1935. This decision demonstrates the continued see whether the departure from traditional, -113 Fisher-Price -113 Fisher-Price -28% Playskool-28% Playskool attempt to move away from an outdated reputation. ‘tangible’ dolls positively impacts Barbie’s brand -159 value in the following year. -159Yo-Kai WatchYo-Kai Watch -32% Barbie -32% Barbie Barbie has seen its brand value fall 32% to US$388 -183 Barbie -48% -183 Barbie Yo-Kai-48% WatchYo-Kai Watch -300.000000314.285714928.5714291542.8571432157.1428572771.4285713385.7142864000.000000 -60 16 92 168 244 320 396 472 548 624 700 10. Brand Finance -300.000000Toys 25314.285714 February928.571429 20171542.8571432157.1428572771.4285713385.7142864000.000000 -60 16 92 168 244 320 396 472 548 624 700 Brand Finance Toys 25 February 2017 11. Understand Your Brand’s Value

Drivers of Change Brand Strength Index 2016 An ideal balanced scorecard of fundamental brand related measures Brand Value Dashboard Three key areas impact Brand Value (EURm) Brand Valuation Assumptions Effective BSI Weighting Attributes 18 131 Underlying economic assumptions used in valuation 34 $707m $882m $10,216m 6.25% Product: R&D expenditure, Widely recognised factors deployed by Brand Capital expenditure Strong brand (EUR) (EUR) Marketers to create brand loyalty and Brand [XXX] Brand Value Brand Value (EUR) Brand value (EURm) Investment Enterprise Value AA+ Investment 25% 6.25% Place: Website Ranking 729 729 Inputs market share. We therefore benchmark 78/100 616 616 650 6.25% People: Number of Employees, €650m €729m €9,399m Employee Growth brands against relevant input measures by Brand 25% Equity X 6.25% Promotion: Marketing expenditure sector against each of these factors. % = Historic brand value performance (EURm) Peer Group Comparison (USDm) $650 Brand Performance Forecast revenues $6,265 2015 Brand Strength Business Performance External Changes 2016 5.00% Familiarity 800 729 Weak brand $ $3,031 7.50% Consideration How do stakeholders feel about the brand 650 $2,328 $1,913 $707 700 607 7.50% Preference vs. competitors? Brand Strength Business Outlook Economic Outlook Customer 35% 7.50% Satisfaction 600 [XXX] [XXX]’s brand strength has increased compared to last year. Brands drive higher revenues. An investor would therefore All future returns are subject to risk. If the risk of not 7.50% Recommendation/NPS • Brand equity accounts for 50% to reflect Revenue Long Term Growth Rate Tax Rate Discount Rate 500 pay more for a brand that makes more money. receiving the forecast returns is higher (increasing the Brand the importance of stakeholder As the brand continues its sustainability drive, [XXX] has discount rate), the brand’s market is not growing as quickly Equity 5.00% Employee Score Licensing payments for the use of a After the explicit forecasts, the brand Forecasted royalties are reduced by Earnings in the future are worth less 320 Staff 5% perceptions to behaviour 400 Brand Value by Product Segment been improving across all CSR scores. It now has the [XXX]’s revenue base and the 5 year forecast growth have as expected (lower long term growth rate) or the tax rate in brand are derived from revenue. will continue to grow. However, it is the tax rate to reflect the actual than consumption now. This rate is 275 highest CSR scores it has had in the last four years across fallen this year, resulting in a loss of $177m USD to total the brand’s regions of operation is higher, then the brand’s 300 Increases or decreases in forecasted unlikely that the company will sustain amount that would be received by therefore used to reduce future 213 Environment, Employees and Governance. brand value. value is reduced and vice versa. 50% 2.50% Credit Rating • Brand Equity is important to all 37% Financial 5% revenue increase or decrease the extraordinary returns into the future the brand owner after tax. earnings to their value today. Nutrition 2.50% Analyst Recommendation stakeholder groups with customers being 200 The premium approach is also leading to significant margin However, it is important to note that this has arisen as a final valuation. so forecast industry growth rates are advantages – positively affecting “performance”. result of the company divesting a number of divisions. the most important 100 Performance Materials 1.67% Environment Score applied. 58% External 5% 1.67% Community Score 0 Other Activities 4% 1.67% Governance Score 2011 2012 2013 2014 2015 2016 2016 2015 2016 2015 2016 2015 5 year Compound Annual Growth Rate Long Term Growth Rate Tax Rate Discount Rate Brand 5 Year Forecast 6.25% Revenue (CAGR) 78 76 2.6% 3.4% Discount Rate 9.1% 8.6% Brand Strength Index Strength Growth Quantitative market, market share and 7% Brand 6.25% % Margin financial measures resulting from the Long Term Growth 3.2% 2.6% 2015 2014 2015 2014 2015 2014 2015 2014 Base Year 8,205 9,570 Performance Outputs 25% 6.25% % Forecast Margin Revenue (EURm) strength of the brand. 6.25% % Forecast Revenue Growth Tax 28.9% 30.2% 25% 2.6% 3.4% -0.8% 3.2% 2.6% +0.6% 29% 30% -1.3% 9.1% 8.6% +0.5%

Determining the Royalty Rate In order to apply the Brand Strength Index, a hypothetical royalty rate range needs to be set Competitor Royalty Rates

Following the OECD guidelines, Brand Finance sets the hypothetical brand royalty rate ranges by reference to three tests: Competitor royalty rates will be different based on different strengths of the brand, having different operating segments and company-specific long term affordability • Comparable Agreements: A search of comparable licensing agreements for brands in each industry is conducted every year. The margin analyses are then compared against the royalty rates found in these agreements to analyse the importance of brand in the industry and set an appropriate 1.2% average industry royalty rate. 1.0% • Industry Margins: An analysis of 25% to 40% of margins, generally accepted as rules of thumb for licensing rates for all intangible assets in a company. These rates are adjusted to take into account the importance of brand in a given industry. 0.8% 0.8% 0.8% 0.8% • Affordability: Thirdly, an analysis of the brand’s specific royalties is conducted. If the brand has been able to sustain extraordinary profits over an 0.7% 0.6% extended time it is likely that hypothetical brand owners would be willing to pay closer to the company’s margins than the industry average. In the 0.6% 0.6% 0.6% case of Brand Finance’s League Table models, affordability will be based on the forecast EBIT. 0.5% • Average industry royalty rate ranges can be seen below

High

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% DSM BASF Dow Du Pont Akzo Nobel Akzo Nobel

Mid [XXX] Low

Akzo Nobel – Paints and [XXX] BASF Dow Du Pont Akzo Nobel - Corporate Coatings 78 78 80 80 82 82

A Brand Value Report provides a complete + Internal understanding of brand Royalty Rates Trademark Audit breakdown of the assumptions, data + Brand value tracking sources and calculations used to arrive at + Competitor benchmarking Analysis of competitor royalty rates, industry Analysis of the current level of protection for the your brand’s value. + Historical brand value royalty rate ranges and margin analysis used to brands word marks and trademark iconography Each report includes expert recommendations determine brand specific royalty rate. highlighting areas where the marks are in need for growing brand value to drive business of protection. performance and offers a cost-effective way to Brand Strength Index + Transfer pricing gaining a better understanding of your position + Licensing/ franchising negotiation + Highlight unprotected marks against competitors. A breakdown of how the brand performed on + International licensing + Spot potential infringement various metrics of brand strength, benchmarked + Competitor benchmarking + Trademark registration strategy A full report includes the following sections against competitor brands in a balanced which can also be purchased individually. scorecard framework. For more information regarding our Brand Value Cost of Capital Reports, please contact: + Brand strength tracking Brand Valuation Summary + Brand strength analysis A breakdown of the cost of capital calculation, Alex Haigh + Management KPI’s including risk free rates, brand debt risk Director of League Tables, Brand Finance Overview of the brand valuation including + Competitor benchmarking premiums and the cost of equity through CAPM. executive summary, explanation of changes in [email protected] brand value and historic and peer group + Independent view of cost of capital for internal comparisons. valuations and project appraisal exercises +44 (0)207 389 9400

12. Brand Finance Toys 25 February 2017 Brand Finance Toys 25 February 2017 13. How we can help Contact details

1. Valuation: What are my intangible assets 2. Analytics: How can I improve marketing Contact us Our offices worth? effectiveness? Valuations may be conducted for technical purposes Analytical services help to uncover drivers of demand For brand value report and to set a baseline against which potential strategic and insights. Identifying the factors which drive enquiries, please contact: brand scenarios can be evaluated. consumer behaviour allow an understanding N 2. IO AN of how brands create bottom-line impact. Alex Haigh T A A L Director of League Tables U Y L T Brand Finance A I V C • Branded Business Valuation • Trademark Valuation [email protected] . S • Market Research Analytics • Brand Audits 1 • Intangible Asset Valuation • Brand Contribution Brand & • Brand Scorecard Tracking • Return on Marketing Investment

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4. Transactions: Is it a good 3 3. Strategy: How can I increase

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deal? Can I leverage my S the value of my branded business? T

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Y T . 4 owners of branded businesses get a better deal modelling will identify the best opportunities, [email protected] by leveraging the value of their intangibles. ensuring resources are allocated to those activities which have the most impact on brand and business value. For all other enquiries, please contact: • M&A Due Diligence • Franchising & Licensing • Brand Governance • Brand Architecture & Portfolio Management [email protected] • Tax & Transfer Pricing • Expert Witness • Brand Transition • Brand Positioning & Extension +44 (0)20 7389 9400 For further information on Brand Finance®’s services and valuation experience, please contact your local representative: Country Contact Email address Australia Mark Crowe [email protected] Brazil Pedro Tavares [email protected] MARKETING FINANCE TAX LEGAL linkedin.com/company/ Canada Bill Ratcliffe [email protected] brand-finance China Minnie Fu [email protected]

We help marketers to connect We provide financiers and We help brand owners and We help clients to enforce and Caribbean Nigel Cooper [email protected] their brands to business auditors with an independent fiscal authorities to understand exploit their intellectual East Africa Jawad Jaffer [email protected] performance by evaluating the assessment on all forms of the implications of different property rights by providing France Victoire Ruault [email protected] return on investment (ROI) of brand and intangible asset tax, transfer pricing and brand independent expert advice in- facebook.com/brandfinance Germany Dr. Holger Mühlbauer h.mü[email protected] brand based decisions and valuations. ownership arrangements. and outside of the courtroom. Greece Ioannis Lionis [email protected] strategies. Holland Marc Cloosterman [email protected] India Ajimon Francis [email protected] + Branded Business Valuation + Branded Business Valuation + Branded Business Valuation + Branded Business Valuation twitter.com/brandfinance Indonesia Jimmy Halim [email protected] + Brand Contribution + Brand Contribution + Brand Contribution + Brand Contribution Italy Massimo Pizzo [email protected] + Trademark Valuation + Trademark Valuation + Trademark Valuation + Trademark Valuation Malaysia Samir Dixit [email protected] + Intangible Asset Valuation + Intangible Asset Valuation + Intangible Asset Valuation + Intangible Asset Valuation Disclaimer + Brand Audit + Brand Audit + Brand Audit + Brand Audit Mexico Laurence Newell [email protected] Brand Finance has produced this study LatAm (exc. Brazil) Laurence Newell [email protected] + Market Research Analytics + Market Research Analytics + Market Research Analytics + Tax & Transfer Pricing with an independent and unbiased + Brand Scorecard Tracking + Brand Scorecard Tracking + Franchising & Licensing + Expert Witness analysis. The values derived and Middle East Andrew Campbell [email protected] opinions produced in this study are Nigeria Babatunde Odumeru [email protected] + Return on Marketing + Return on Marketing + Tax & Transfer Pricing based only on publicly available Investment Investment + Expert Witness information and certain assumptions Portugal Pedro Tavares [email protected] + Brand Transition + Brand Transition that Brand Finance used where such Russia Alexander Eremenko [email protected] data was deficient or unclear . Brand + Brand Governance + Brand Governance Finance accepts no responsibility and Scandinavia Alexander Todoran [email protected] + Brand Architecture & + Brand Architecture & will not be liable in the event that the Singapore Samir Dixit [email protected] Portfolio Management Portfolio Management publicly available information relied upon is subsequently found to be South Africa Jeremy Sampson [email protected] + Brand Positioning & + Brand Positioning & inaccurate. Spain Lorena Jorge Ramirez [email protected] Extension Extension Sri Lanka Ruchi Gunewardene [email protected] + Franchising & Licensing + Mergers, Acquisitions and The opinions and financial analysis expressed in the report are not to be Switzerland Victoire Ruault [email protected] Finance Raising Due construed as providing investment or Diligence business advice. Brand Finance does Turkey Muhterem Ilgüner [email protected] not intend the report to be relied upon UK Alex Haigh [email protected] + Franchising & Licensing for any reason and excludes all liability + Tax & Transfer Pricing to any body, government or USA Anne Bahr-Thompson [email protected] + Expert Witness organisation. Vietnam Lai Tien Manh [email protected]

14. Brand Finance Toys 25 February 2017 Brand Finance Toys 25 February 2017 15. Contact us.

The World’s Leading Independent Branded Business Valuation and Strategy Consultancy T: +44 (0)20 7839 9400 E: [email protected] www.brandfinance.com

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