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SOFTWARE Toy Markets in the World SPORTS Summary Charts- Annual 2009 TOYS

WIRELESS Presented to ICTI April 7,2010 Jane Zimmy, The NPD Group, Inc. [email protected]

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. The market grew by nearly 4% to a level of $80 billion USD

World Toy Market (billion $)

82

80 $80.280

78 $78.308 $77.472 76

USD billion 74

72

70 2007 2008 2009

-1.1% +3.6%

Proprietary and Confidential Impact of the exchange rate fluctuations this year accounted for the change in market size

World Toy Market (billion $)

82 t: 80 pacct: IImmpa $80.280 .9bbnn $77.472 $$22.9 78 $77.378 $77.472 76

USD billion 74 Current Rate 72 Constant Rate 70 (2008) 2008 2009

Proprietary and Confidential 2009 toy revenues by region (billions of $)

World Toy Market by Region (billion $)

$21.486 $23.542 +2.0% $23.382 +4.5% -.6%

$2.934 $6.854 bn +1.1% $2.081 +11.1% +35%

4 Proprietary and Confidential No rank order changes until #9-Top 10 still represent 66% of total

Toy Market Kids Country Rank Country Size Country Share Spend/kid Population % to 15+ yrs

2009 2009 2008 2009 (million $) 2009 2008 2009 ($) 2009 (million) United States 1 1 $21510 26.8% 27.9% $280 61.9 19%

Japan 2 2 $5820 7.2% 7.5% $288 17.1 15%

China 3 3 $4954 6.2% 5.8% $20 242.7 1%

4 4 United $4317 5.4% 5.3% $361 10.2 14% Kingdom France 5 5 $4239 5.3% 5.2% $308 11.9 13%

Germany 6 6 $3420 4.3% 4.1% $244 11.2 20%

Brazil 7 7 $2773 3.5% 2.7% $51 53.1 3%

India 8 8 $2091 2.6% 2.5% $6 352.5 0%

Australia 9 13 $1881 2.3% 1.8% $401 3.93 16%

10 12 Canada $1872 2.3% 2.1% $296 5.39 15%

Proprietary and  Indicates the presence of a tracking service from NPD Confidential NPD is optimistic and forecasts the toy market to continue to grow in 2010 (up 4.5%)

World Toy Market (billion $)

$83.900

$80.280 82.000 $78.308 80.000 $77.472

78.000

76.000

USD billion 74.000

72.000

70.000 2007 2008 2009 2010 Most countries will rebound and continued growth from China, Brazil Current Exchange rates for 2010

Proprietary and Confidential Summary

 The Global Financial Crisis had limited impact on total revenue. The UK was an exception due to the closure of a major retailer.  Consumers did delay their purchasing, December was stronger than usual.

 Consumers did look for “value” however they did not shift to less expensive toys.

 Consumers made personal sacrifices rather than disappoint their children.

 Most retailers and manufacturers were pleasantly surprised with the 2009 outcome!

Proprietary and Confidential