ATA Report December 2016 Copyright 2015. 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. 2 Industry Trends The end of the year closed with a decline of -8.3% compared to 2015. The market couldn’t recover from the value lost during the toy catalogue. In fact December didn’t fulfil the market expectations and suffer a decline of -6.1%. In terms of units there was an increase YOY of 0.4% in 2016, but compared to value, we can say that the market is focusing on lower price tag models across the industry Value ($m) Units (m) Dec-16 YTD -6.1% -8.3% Dec-16 YTD 3.9% 0.4% 2015 2016 2015 2016 Monthly sales ($m) and Average Price 350.0 $25 $20.92 300.0 $18.90 Millions $18.66 $18.92 $20 $17.21 $16.69 $16.61 250.0 $15.97 $16.44 $15.72 $15.76 $15.21 $15.47 $15 200.0 150.0 $10 100.0 $5 50.0 - $0 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 Total Sales AVG Price 3 Category Trends Value Change YTD Games & … 13.5% Plush 3.3% Vehicles 1.8% Dolls -0.2% Building Sets -3.8% Arts & Crafts -5.7% I&P -4.2% Action … -11.1% All Other Toys -14.3% Outdoor … -19.4% Youth … -41.4% Category Share YTD 17.8% Building Sets 17.3% 20.2% Outdoor & Sports Toys 16.4% 15.6% Infant/Toddler/Preschool Toys 14.8% 10.5% Dolls 10.5% 8.0% Action Figures & Acc 6.6% 5.4% Games/Puzzles 6.3% 6.5% Vehicles 6.3% 6.5% Arts & Crafts 5.7% 3.7% Plush 3.7% 3.5% Youth Electronics 2.1% YTD 2015 share YTD 2016 share 2.4% All Other Toys 2.0% 5 Property Ranking Rank Top 20 Properties Rank Rank Rank Dec-16 Nov-16 Oct-16 YTD 1 Star Wars 1 1 1 2 Shopkins 4 3 3 3 Nerf 8 9 7 4 City 2 2 2 5 Paw Patrol 5 4 4 6 Friends 3 5 5 7 Barbie 7 10 9 8 Fisher Price 6 6 6 9 Hot Wheels 9 7 10 10 Thomas & Friends 10 8 8 11 Trolls 33 75 52 12 Vtech 16 17 14 13 Pokemon 11 12 16 14 Disney Princess 13 13 11 15 Razor 21 25 21 16 Teenage Mutant Ninja Turtles 19 11 12 17 Duplo 17 19 20 18 Laugh & Learn 14 14 15 19 Furreal 20 20 24 20 Disney Frozen 23 18 13 Licensing Trends 38% 36% 37% 36% 36% 35% 36% 35% 36% 35% 35% 35% 35% Millions 33% 33% 32% 32% 33% 33% 32% 31% 32% 31% 31% 30% 29% Licenced Non licenced Licenced share 6 Best 3Properties by Category Oct-16 Category Top Properties Key Manufacturer Value Val % Chg vs. Share YA Star Wars HASBRO 14.0% -22.8% Action Figurs & Acc Teenage Mutant Ninja Turtles HEADSTART 12.7% 4.0% Transformers HASBRO 10.9% -1.4% Crayola CRAYOLA 17.0% -20.2% Arts & Crafts Play-Doh HASBRO 11.2% 49.2% Faber Castell FABER CASTELL 6.5% -53.7% City LEGO 15.4% -0.1% Building Sets Star Wars LEGO 13.6% -9.4% Friends LEGO 12.6% 49.2% Shopkins MOOSE TOYS 19.4% 29.4% Dolls Barbie MATTEL 14.7% 34.9% Sylvanian Families MODERN BRANDS 5.3% 49.8% Pokemon CROFTMINSTER 14.9% 168.7% Games / Puzzles Monopoly HASBRO 8.1% 36.4% Pie Face HASBRO 3.8% 453.1% Fisher Price MATTEL 10.8% 23.7% Infant/Toddler/Preschool Thomas & Friends MATTEL 9.9% 14.3% Toys Laugh & Learn MATTEL 8.3% 44.9% Nerf HASBRO 9.9% 22.5% Outdoor & Sports Toys Little Tikes HEADSTART 4.3% -6.1% Razor FUNTASTIC GRP 4.3% -39.0% Furreal HASBRO 22.5% 25.4% Plush Ty Beanie Babies BIG BALLOON 15.9% 97.5% Pokemon TOMY 3.3% 1269.2% Hot Wheels MATTEL 25.4% 58.4% Vehicles Monster Jam MATTEL 7.2% -20.7% Tonka FUNRISE TOYS 5.3% 75.3% Little Live Pets MOOSE TOYS 34.5% -29.5% Youth Electronics Hatchimals SPIN MASTER 16.7% NEW Zoomer FUNTASTIC GRP 8.3% -48.7% Schleich MODERN BRANDS 5.4% -4.7% All Other Toys Star Wars BIG BALLOON 4.0% 914.0% Aqua Dragons MODERN BRANDS 3.6% -31.1% 7 Distributor Trends 24% 20% 16% 12% 8% 4% 0% Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Oct 16 Nov 16 Dec 16 LEGO HASBRO MATTEL MOOSE TOYS HEADSTART FUNTASTIC YTD Rank Rank Top 10 Distributors YTD Val Chg % 1 Lego -3.6% 2 Mattel -12.1% 3 Hasbro -4.2% 4 Headstart -12.0% 5 Moose Toys -5.8% 6 Funtastic Grp -26.8% 7 Hunter Leisure -19.5% 8 Big Balloon -31.8% 9 Hunter Products -17.6% 10 Tomy 8.3% 11 Modern Brands 21.1% 12 Vtech 61.6% 13 Crayola -9.3% 14 Croftminster 7.7% 15 Kids Ii Australia -2.3% 16 Rubies Deerfield -28.8% 17 Crown & Andrews 39.9% 18 Faber Castell 9.4% 19 Playgro -6.2% 20 Action Sports -30.7% Thank You Industries Countries Automotive Australia Beauty Belgium Consumer Brazil Electronics Canada Entertainment China Fashion France Food / Foodservice Germany Home India Luxury Italy Mobile Japan Office Supplies Mexico Sports and Leisure Netherlands Trends New Zealand Technology Poland Toys Russia Video Games South Korea Spain Sweden Turkey United Kingdom Keep up with what’s new at The NPD Group. United States Subscribe to our newsletter and other communications by visiting npd.com and clicking “Subscribe.” Contact OZToys Miguel Velasquez Account Manager T: (02) 8257 6468 M: +61 (0) 499 000 233 E: [email protected] The NPD Group, Inc. | Proprietary and Confidential 8 .