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June, 2008

Copyright 2008. The NPD Group, Inc. All Rights Reserved. This presentation is Proprietary and Confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD. Content

 Objectives & Methodology  Toy Markets in the World

2 Proprietary and Confidential Objective & Methodology

3 Proprietary and Confidential Objective

Leverage The NPD knowledge and expertise in the Toy Industry to provide with an estimate of the Toy markets around the World.

Because The NPD Group already operates on the Toy Industry in more than 12 countries, we have developed a market estimate statistical model based on this accurate information. It's a logical place to start, as some of these countries have been covered by The NPD Group for a long period.

4 Proprietary and Confidential The Concept

 The primary factors that drive the Toys & Games market consumption over the period are: – Average expenditures per child, – Changes in population age groups, – GDP per inhabitant and change in GDP per inhabitant.  The business-as-usual projection of the Toys & Games market sizes were produced, using the projections of these driving variables provided by IMF, the UN, and The NPD Group. The framework assumptions involved in this business-as-usual projection are: – The richer the country is, the higher the Average Expenditure in Toys per Child (AETC), – The richer the country is, the larger proportion of Consumers 15 years old and over.

5 Proprietary and Confidential Methodology

 Statistical models from the 12 existing markets NPD already operates: – Toys Consumer Panel: , , , , , UK, U.S.A. 55% – Toys Point of Sales Panel: Austria, , of the World Market Poland, Portugal,

 We divided the Toy Markets in 2 sections; and created 2 models, based on the GDP/Inhabitant:

Kids (0-14 Years Old) 15 Years +

(Number of Kids) X ($ per Kid) % Consumption Based on GDP/Inhabitant In US$ Based on GDP/Inhabitant In US$

6 Proprietary and Confidential Models are based on GDP/Inhabitant

$/Kid by country, based on % Market to 15 Years old +, based GDP/Inhabitant on GDP/Inhabitant

350 25%

300 20% 250

15% 200

$/Kid ($) 150 10%

100

% Market% to 15+ Value) (% 5% 50

0 0% 0 10 000 20 000 30 000 40 000 50 000 60 000 0 10 000 20 000 30 000 40 000 50 000 60 000 GDP/Inhabitant ($) GDP/Inhabitant ($)

All models start from «0» 7 Proprietary and Confidential Sources of Information

 All calculations have been made in US$, with exchange rates are as of December 2007.

8 Proprietary and Confidential Toy Markets in the World

9 Proprietary and Confidential Worth $72billion, the world Toy market is dynamic

World Toy Market (billion $)

Source: The NPD Group, Inc. – Toy Markets in the World 10 Proprietary and Confidential Impact of the Exchange Rates

 All calculations have been made in US$. Exchange rates are as of December 2007.

 Because the models are based on information tracked on 12 countries, using 6 different currencies, exchange rates vs. USD impact the trends

11 Proprietary and Confidential Impact of the Exchange Rates

$68 520.1

12 Proprietary and Confidential Impact of the Exchange Rate: Summary

 In 2007 USD, the World Toy Market adds to: 2006 2007 (2007 Exchange rates) World Toy Market $68.520 $71.963 bn +5.0%

 In 2006 USD, the World Toy market adds to: 2006 2007 (2006 Exchange rates) World Toy Market $67.030 $70.398 bn +5.0%

 In Current USD, the World Toy Market adds to: 2006 2007 (2006 Exchange rates) (2007 Exchange rates) World Toy Market $67.030 $71.963 bn +7.4%

13 Proprietary and Confidential Growing areas are: Latin America, through and to a lesser extent , Europe, thanks to favorable exchange rates, and through the Russian Federation. Asia, especially through , India, and to a lesser extent Indonesia

14 Proprietary and Confidential 15 Proprietary and Confidential More Countries Contribute to the Toy Market …

16 Proprietary and Confidential Key Facts

17 Proprietary and Confidential Key Facts

 Worth $71.963 billion, the toy markets in the world are dynamic.  Growing areas are: – Latin America, through Brazil and to a lesser extent Mexico, – Europe, thanks to favorable exchange rates, and through the Russian Federation, – Asia, especially through China, India, and to a lesser extent Indonesia.  In the markets audited by The NPD Group, manufacturers face key challenges: – Kids Getting Older Younger (KGOY), – Increased usage of consumer electronic products, – Change in distribution channels, with more use of the Internet, – Concentration of sales in the seasonal peaks, driving to an «occasion based purchased» – Eco-Awareness in these markets

18 Proprietary and Confidential Thank You

Proprietary and Confidential