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Toy Marketsin the World

Copyright 2007. 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.

Prepared for ICTI by NPD

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Contents

Objective & MethodologyToy Markets in the WorldTop 10sIn 2007 …Key Facts

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Objective

To provide an estimate of the Toy markets around the World

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Methodology

Statistical models from the 12 existing markets NPD alreadyoperates:

Kids (0-14 Years Old)

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

15 Years +

% ConsumptionBased on GDP/Inhabitant In US$

– Toys Consumer Panel: France, Germany, Italy, UK, U.S.A.

– Toys Point of Sales Panel: Australia, Austria, Belgium, Poland, Portugal, Spain, Switzerland

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

56%of the World Market

All calculations have been made in US$. Exchange rates are as of December 2006. Markets are estimated based on NPD Categories.

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Models are based on GDP/Inhabitant

$/Kid by country, based on GDP/Inhabitant

0

50

100

150

200

250

300

350

0 10 000 20 000 30 000 40 000 50 000 60 000

GDP/Inhabitant ($)

$/Ki

d ($

)

% Market to 15 Years old +, based on GDP/Inhabitant

0%

5%

10%

15%

20%

25%

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

% M

arke

t to

15+

(% V

alue

)

All models start from «0»

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6Source: The NPD Group, Inc. – Toy Markets in the World

2004 2005 2006

$61.2

$63.7

$67.0

Worth $67billion, the world Toy market is dynamic

World Toy Market (billion $)

+5.2%

+4.0%

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Latin America and Asia are growing fast

Source: The NPD Group, Inc. – Toy Markets in the World

Share of Toy Market by Key Regions (% Value) - 2006

06 vs. 05:+4.8%

06 vs. 05:+13.6%

06 vs. 05:+1.2%

06 vs. 05:+6.1%

06 vs. 05:+20.8%

06 vs. 05:+8.3%

European Union

85.5%

3.8%10.7%

2006

OtherEuropeEU +12

EU 15

Asia24%

Europe29%

Latin America and Caribbean

7%

North America36%

Africa2%

Oceania2%

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$1.480b

374M

Market

Kids

$16.204b

1,081M

Market

Kids

$19.188b

113M

Market

Kids

$4.532b

162M

Market

Kids

$24.093b

67M

Market

Kids

$1.479b

8M

Market

Kids

Toy Markets in the World - 2006

Source: The NPD Group, Inc. – Toy Markets in the World

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$4

1%

$/Kid

% 15+

$15

7%

$/Kid

% 15+

$169

14%

$/Kid

% 15+

$28

1%

$/Kid

% 15+

$287

21%

$/Kid

% 15+

$161

13%

$/Kid

% 15+

$ / Kid - Top 10 Countries - 2006

Source: The NPD Group, Inc. – Toy Markets in the World

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10Source: The NPD Group, Inc. – Toy Markets in the World

2004 2005 2006 E2007

$61.2$63.7

$67.0

$71.0

We could anticipate a 6% increase in 2007

World Toy Market (billion $)

+5.2%

+4.0%

+6.0%

Kids in 2007:

+0.2% (+4.5 million)

Africa

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Asia25%

Europe28%

Latin America and Caribbean

7%

North America35%

Africa3%

Oceania2%

Latin America and Asia will keep growing fast

Source: The NPD Group, Inc. – Toy Markets in the World

Share of Toy Market by Key Regions (% Value) - 2007

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Key Facts

Worth $67billion, the toy markets in the world are dynamic.Growing areas are:– Latin America, through Brazil and to a lesser extent Mexico,– Asia, especially through China, India, and to a lesser extent Indonesia,– Europe, through the Russian Federation.

In the markets audited by The NPD Group, manufacturers face keychallenges:– 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