AUTOMOTIVE BEAUTY COMMERCIAL TECHNOLOGY CONSUMER TECHNOLOGY ENTERTAINMENT FASHION FOOD & BEVERAGE FOODSERVICE HOME OFFICE SUPPLIES

SOFTWARE SPORTS TOYS WIRELESS

June, 2008
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.

Content
Objectives & Methodology Toy Markets in the World

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Objective & Methodology

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Objective

Leverage The NPD knowledge and expertise in the Toy Industry to provide with an estimate of the Toy markets around the World. Because The NPD Group already operates on the Toy Industry in more than 12 countries, we have developed a market estimate statistical model based on this accurate information. It's a logical place to start, as some of these countries have been covered by The NPD Group for a long period.

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The Concept
The primary factors that drive the Toys & Games market consumption over the period are:
Average expenditures per child, Changes in population age groups, GDP per inhabitant and change in GDP per inhabitant.

The business-as-usual projection of the Toys & Games market sizes were produced, using the projections of these driving variables provided by IMF, the UN, and The NPD Group. The framework assumptions involved in this business-as-usual projection are:
The richer the country is, the higher the Average Expenditure in Toys per Child (AETC), The richer the country is, the larger proportion of Consumers 15 years old and over.

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Methodology
Statistical models from the 12 existing markets NPD already operates:
Toys Consumer Panel: Australia, France, Germany, Italy, New Zealand, UK, U.S.A. Toys Point of Sales Panel: Austria, Belgium, Poland, Portugal, Spain 55%
of the World Market

We divided the Toy Markets in 2 sections; and created 2 models, based on the GDP/Inhabitant:
Kids (0-14 Years Old)
(Number of Kids) X ($ per Kid) Based on GDP/Inhabitant In US$

15 Years +
% Consumption Based on GDP/Inhabitant In US$

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Models are based on GDP/Inhabitant

$/Kid by country, based on GDP/Inhabitant

350 300 250 200 150 100 50 0 0 10 000 20 000 30 000 40 000 50 000 60 000 GDP/Inhabitant ($)

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

25%

% Market to 15+ (% Value)

20%

$/Kid ($)

15%

10%

5%

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

All models start from 0

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Sources of Information

All calculations have been made in US$, with exchange rates are as of December 2007.
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Toy Markets in the World

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Worth $72billion, the world Toy market is dynamic

World Toy Market (billion $)

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

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Impact of the Exchange Rates

All calculations have been made in US$. Exchange rates are as of December 2007. Because the models are based on information tracked on 12 countries, using 6 different currencies, exchange rates vs. USD impact the trends

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Impact of the Exchange Rates

$68 520.1

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Impact of the Exchange Rate: Summary

In 2007 USD, the World Toy Market adds to: 2006
(2007 Exchange rates)

2007 $71.963 bn +5.0%

World Toy Market

$68.520

In 2006 USD, the World Toy market adds to: 2006 World Toy Market $67.030 2007
(2006 Exchange rates)

$70.398 bn +5.0%

In Current USD, the World Toy Market adds to: 2006

(2006 Exchange rates)

2007
(2007 Exchange rates)

World Toy Market

$67.030

$71.963 bn +7.4%

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Growing areas are: Latin America, through Brazil and to a lesser extent Mexico, Europe, thanks to favorable exchange rates, and through the Russian Federation. Asia, especially through China, India, and to a lesser extent Indonesia

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More Countries Contribute to the Toy Market

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Key Facts

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Key Facts
Worth $71.963 billion, the toy markets in the world are dynamic. Growing areas are:
Latin America, through Brazil and to a lesser extent Mexico, Europe, thanks to favorable exchange rates, and through the Russian Federation, Asia, especially through China, India, and to a lesser extent Indonesia.

In the markets audited by The NPD Group, manufacturers face key challenges:
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
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Thank You
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