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TRADING INFO (AS OF APRIL 9, 2018) BRAND TIMELINE TSX: TOY SPIN MASTER CORP. FLOAT*: 28,126,094 Subordinate Voting Shares MARKET CAP OF FLOAT: 1.44B TOTAL MARKET CAP: 5.20 B * Excludes 73,549,812 Multiple Voting Shares issued and outstanding 1994 1998 2003 2006 2007 2008 2010 2012 2013 2014 2015 2016 2017 2018 2018 FACT SHEET 225 KING STREET WEST, SUITE 200, TORONTO, ON M5V 3M2 CANADA • TEL. (416) 364-6002 • [email protected] • WWW.SPINMASTER.COM CORPORATE PROFILE Spin Master creates, designs, manufactures, licenses, and markets a diversified portfolio of innovative toys, games, products, and entertainment properties. Spin Master is best known for its award-winning brands including Zoomer ® , Bakugan ® , Erector ® by Meccano ® , Hatchimals ® , Air Hogs ® , and PAW Patrol ® . Since 2000, Spin Master has received 92 TIA Toy of The Year (TOTY) nominations with 28 wins across a variety of product categories, including 13 TOTY nominations for Innovative Toy of the Year, more than any of its competitors. To date, Spin Master has produced six television series, including 2007 success Bakugan Battle Brawlers and current hit PAW Patrol, which is broadcast in over 160 countries and territories globally. Spin Master has significant global scale and reach and Spin Master products are sold in over 70 countries around the world through Spin Master’s direct sales and marketing offices or through third party distributors. Spin Master has over 1,600 employees globally and offices in Canada, United States, Mexico, France, Italy, United Kingdom, Slovakia, Poland, Germany, Sweden, the Netherlands, China, Hong Kong, Japan, Vietnam, and Australia. A LEADING GLOBAL CHILDREN’S ENTERTAINMENT COMPANY – CREATING INNOVATIVE TOYS, GAMES, PRODUCTS AND ENTERTAINMENT PROPERTIES GROWTH STRATEGIES INNOVATE ACROSS THE PORTFOLIO OF BRANDS AND BUSINESS SEGMENTS Leverage competitive strengths to build a robust pipeline in all business segments. Continue to focus on strategic brand building. Continue to invest in advanced technology and entertainment licenses. Expand capability and product offering in digital mobile gaming. INCREASE SALES IN INTERNATIONAL DEVELOPING AND EMERGING MARKETS Optimize international distribution network. Strategically tailor product offering to local international markets. Increase proportion of sales outside of North America to 40% in the medium term. DEVELOP EVERGREEN GLOBAL ENTERTAINMENT PROPERTIES Capitalize on success of current entertainment properties. Develop at least one new show per year. Strategically relaunch properties to capitalize on value of owned content library. LEVERAGE GLOBAL PLATFORM THROUGH STRATEGIC ACQUISITIONS Fragmented industry with opportunities for consolidation. Strong balance sheet with financial flexibility.

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Page 1: A LEADING GLOBAL CHILDREN’S ENTERTANI MENT COMPANY … › download › SM_COR_FactSheet18_02.pdf · trading info (as of april , 2018) brand timeline ts toy spin master corp. float

TRADING INFO (AS OF APRIL 9, 2018)

BRAND TIMELINE

TSX: TOY

SPIN MASTER CORP.

FLOAT*:

28,126,094Subordinate Voting Shares

MARKET CAP OF FLOAT:

1.44BTOTAL MARKET CAP:

5.20B* Excludes 73,549,812 Multiple Voting

Shares issued and outstanding

1994

1998

2003

2006

2007

2008

2010

2012

2013

2014

2015

2016

2017

2018

TM

TM

2018 FACT SHEET

225 KING STREET WEST, SUITE 200, TORONTO, ON M5V 3M2 CANADA • TEL. (416) 364-6002 • [email protected] • WWW.SPINMASTER.COM

CORPORATE PROFILESpin Master creates, designs, manufactures, licenses, and markets a diversified portfolio of innovative toys, games, products, and entertainment properties. Spin Master is best known for its award-winning brands including Zoomer®, Bakugan®, Erector® by Meccano®, Hatchimals®, Air Hogs®, and PAW Patrol®. Since 2000, Spin Master has received 92 TIA Toy of The Year (TOTY) nominations with 28 wins across a variety of product categories, including 13 TOTY nominations for Innovative Toy of the Year, more than any of its competitors. To date, Spin Master has produced six television series, including 2007 success

Bakugan Battle Brawlers and current hit PAW Patrol, which is broadcast in over 160 countries and territories globally. Spin  Master has significant global scale and reach and Spin Master products are sold in over 70 countries around the world through Spin Master’s direct sales and marketing offices or through third party distributors. Spin Master has over 1,600 employees globally and offices in Canada, United States, Mexico, France, Italy, United Kingdom, Slovakia, Poland, Germany, Sweden, the Netherlands, China, Hong Kong, Japan, Vietnam, and Australia.

A LEADING GLOBAL CHILDREN’S ENTERTAINMENT COMPANY – CREATING INNOVATIVE TOYS, GAMES, PRODUCTS AND ENTERTAINMENT PROPERTIES

GROWTH STRATEGIESINNOVATE ACROSS THE PORTFOLIO OF BRANDS AND BUSINESS SEGMENTS• Leverage competitive strengths to build a robust pipeline

in all business segments. • Continue to focus on strategic brand building.• Continue to invest in advanced technology and

entertainment licenses.• Expand capability and product offering in digital

mobile gaming.

INCREASE SALES IN INTERNATIONAL DEVELOPING AND EMERGING MARKETS• Optimize international distribution network.• Strategically tailor product offering to local

international markets.• Increase proportion of sales outside of North America

to 40% in the medium term.

DEVELOP EVERGREEN GLOBAL ENTERTAINMENT PROPERTIES• Capitalize on success of current entertainment

properties.• Develop at least one new show per year.• Strategically relaunch properties to capitalize

on value of owned content library.

LEVERAGE GLOBAL PLATFORM THROUGH STRATEGIC ACQUISITIONS• Fragmented industry with opportunities for consolidation.• Strong balance sheet with financial flexibility.

Page 2: A LEADING GLOBAL CHILDREN’S ENTERTANI MENT COMPANY … › download › SM_COR_FactSheet18_02.pdf · trading info (as of april , 2018) brand timeline ts toy spin master corp. float

225 KING STREET WEST, SUITE 200, TORONTO, ON M5V 3M2 CANADA • TEL. (416) 364-6002 • [email protected] • WWW.SPINMASTER.COM

SENIOR MANAGEMENTRonnen HararyChair and Co-Chief Executive Officer

Anton RabieDirector and Co-Chief Executive Officer

Ben VaradiDirector, Executive Vice President and Chief Creative Officer

Ben GadboisDirector, Global President and Chief Operating Officer

Mark SegalExecutive Vice President and Chief Financial Officer

Bill HessExecutive Vice President of Operations and Chief Information Officer

Christopher BeardallExecutive Vice President of Global Sales

Adam BederExecutive Vice President of Global Licensing and Business Affairs

Christopher HarrsExecutive Vice President and General Counsel, Corporate Secretary

Nancy ZwiersExecutive Vice President and Chief Marketing Officer

INDEPENDENT BOARD MEMBERS Jeffrey I. CohenDina HowellTodd TappinCharles Winograd

ANALYST COVERAGE Robert Bek CIBC World Markets

Derek Dley Canaccord Genuity Corp.

Gerrick Johnson BMO Capital Markets

Sabahat Khan RBC Capital Markets

David McFadgen Cormark Securities

Brian Morrison TD Securities

Adam Shine National Bank Financial

Kenric S. Tyghe Raymond James

Stephanie Wissink Jefferies

SPIN MASTER CORP.

2018 FACT SHEET

69 TITLES

15Mactive users

monthly

Remote Control and Interactive Characters

Activities, Games, Puzzles and Fun Furniture

Boys Action and High-tech Construction

Outdoor

Pre-school and Girls

36%

7%22%

30%

5%

BUSINESS SEGMENTS2017 Gross Product Sales by Business Segment

DIGITAL MOBILEToca Boca and Sago Mini apps have over 15 million monthly active users

ENTERTAINMENTDeveloping and producing global entertainment properties, characters, and content

FINANCIAL INFORMATION (US$ MILLIONS)

GLOBAL SCALE

2013 2014 2015 2016 2017

Gross Product Sales $576.9 $811.9 $982.7 $1,254.6 $1,657.0

Revenue $507.5 $715.7 $879.4 $1,154.5 $1,551.3

Gross Margin 48.2% 50.0% 52.2% 51.7% 51.6%

Adjusted EBITDA $53.1 $111.7 $160.5 $205.5 $292.2

Adjusted Net Income $22.8 $66.3 $98.6 $120.1 $173.0

Adjusted EPS N/A $0.78 $1.08 $1.19 $1.70

Net Debt $278.3 $157.3 $4.6 $58.7 $(116.7)

TOKYO

HONG KONGJIAXING

SYDNEY

DONGGUAN

TORONTO

NEW YORK

STOCKHOLM

VIRGINIA BEACHTARBORO 1

BENTONVILLE

MEXICO CITY

LOS ANGELESSAN FRANCISCO

LONDONPARISMILANAMSTERDAMMUNICHCALAIS 1

BRATISLAVA2

WARSAW

1. Manufacturing Facility 2. Order processing office

CENTRES OF SALES & MARKETINGAND IDEATION, INNOVATION,DESIGN AND DEVELOPMENT

CENTRES OF IDEATION, INNOVATION,DESIGN AND DEVELOPMENT

CENTRES OF SALES & MARKETING

SPIN MASTER R&D, DIRECT SALESAND MARKETING OFFICES

DISTRIBUTION MARKETS

MISSION

DELIVERING INSPIRATION, IMAGINATION, AND JOY TO CHILDREN IN TROUBLED AREAS AROUND THE WORLD

The Toy Movement brings together committed partners within the children’s entertainment industry, third party logistics providers, and various levels of government to do one thing: provide children with the opportunity to play, learn and grow regardless of their circumstances – allowing kids to be kids no matter where they live. Over the past few years, Spin Master has passionately led this initiative and delivered over 350,000 toys in countries and regions such as South Africa, Nicaragua, Turkey, Mexico, Jordan, Israel and Gaza.