AUTOMOTIVE BEAUTY COMMERCIAL TECHNOLOGY CONSUMER TECHNOLOGY ENTERTAINMENT FASHION FOOD & BEVERAGE FOODSERVICE HOME OFFICE SUPPLIES SOFTWARE SPORTS TOYS WIRELESS Toy Markets in the World Annuall 2010 010 Presented to ICTI October 17, 2011 Jane Zimmy, The NPD Group, Inc. jane.zimmy@npd.com 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 Concept behind the Worldwide Projections The primary factors that drive toys and games market consumption are: – Population by core age groups – GDP per inhabitant Changes g in both of these factors contribute to changes g in market size. The business-as-usual projection of the toys and games market sizes historically have been produced using projections of these driving variables provided by IMF, the U.N., and The NPD Group. The framework assumptions – The richer the country, the higher the Average Expenditure in Toys per Child (AETC) – The richer the country, the higher the proportion of consumers age 15 years old and older. 2 Proprietary and Confidential Sources of information Population • World Population Population, International Database Database, Dec Dec. 2010 U.S. Census Bureau, International Macro economics Macro-economics • World Economic Outlook Database, Oct. 2010 International Monetary Fund Existing Toy Markets • Australia, Austria, Belgium, France, Germany, Italy, Poland, Portugal, Spain, UK, U.S.A. - The NPD Group All calculations have been made in U.S. $. Exchange rates are as of December 2009 & December 2010. 2010 3 Proprietary and Confidential In 2009, NPD estimated the Global Toy market at just under $80 billion USD World Toy Market (billion $) 82 USD billion 80 78 $79,552 $78.088 76 $77.224 74 72 70 2007 2008 -1.1% 2009 +3.0% Proprietary and Confidential NPD was optimistic and forecasted the toy market to continue to grow in 2010. World Toy Market (billion $) $83.900 (est.) 82 000 82.000 USD billio on 80.000 79.552 $78.088 78.000 $77.224 76.000 74.000 72.000 70.000 2007 2008 2009 2010 Current Exchange rates for 2010 Proprietary and Confidential Impact of FX on Top 10 Markets: Not all are as bleak as those trading the EURO Currency Effect 15% 10% 5% 0% -5% 5% -10% US Japan China UK France Germany Brazil India Australia Canada If there was no growth in local currency what would the market size trend be in USD? Proprietary and Confidential European Toy Market Trends 2010 (Value) restated in USD Trends +4.6% -2.9% +3.4 -2.1% +4.8% -3.3% -4.9% -5.2% -7.1% +23.4% Source: NPD Consumer and POS Panels. Trends for Big 5 represent TOTAL market, others are NPD’s POS services and do not represent total market. Trend in local Currency Proprietary and Confidential 2010 Results were in line with NPD’s optimistic forecastA growing market (up 4.7%) USD billion World Toy Market (billion $) 90.000 88.000 86.000 84.000 82.000 80.000 78.000 76.000 74.000 72.000 70.000 $79.600 $78.100 2007 $83.300 $77.200 2008 2009 2010 Proprietary and Confidential 2010 toy revenues by region (billions of $) World Toy Market by Region (billion $) $23.3 -.7% $23.9 +2.5% $7.3 $7 3 +10.7% $3.1 +5 6% +5.6% $23.1 $ +9.2% $2.6 +23% 9 Proprietary and Confidential Top p Countries 10 Proprietary and Confidential 2010: Top 10 still represent 2/3 of total Country Rank 2010 2009 1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 9 9 8 10 10 Country United States Japan China United Kingdom France Germany Brazil Australia India Canada Country Share Spend/kid Kids Population % to 15+ yrs 2010 2009 2010($) 2010 (million) 2010 26.3% 27.0% $ $284 62.4 19% 7.5% 7.3% $312 16.9 16% 6 7% 6.7% 6 2% 6.2% $23 238 3 238.3 2% 5.4% 5.4% $365 10.8 12% 4.9% 5.3% $307 12.0 10% 4.0% 4.3% $247 11.0 19% 3.9% 3.5% $59 53.3 4% 2.8% 2.4% $486 4.0 17% 2.7% 2.6% $6 352.8 0% 2.5% 2.4% $317 5.4 17% Indicates the presence of a tracking service from NPD Proprietary and Confidential Best Estimate of 2011 (current) World Toy Market (billion $) 90.000 88.000 USD billion 86.000 84.000 82 000 82.000 $79.600 $78.100 80.000 $83.300 $85.000 2010 2011 (October) $77.200 78.000 76.000 74.000 72.000 70.000 2007 2008 2009 Current expectation of mixed performance in Europe, lackluster sales in U.S. balanced by continued growth from developing countries –resulting in a 2% increase. Proprietary and Confidential Obrigado ありがとう Tak Dzięki Tack どうもありがとう For further information: Jane Zimmy Jane.zimmy@npd.com 001 516 625 2226 001.516.625.2226 Proprietary and Confidential