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Klosters Toy Manufacturer Newsletter September 2018

|Includes: FNKO, Hasbro, Inc. (HAS), JAKK, MAT, SNMSF, VTKLF
Summary

A summary of all major developments at Mattel, Hasbro, Leapfrog/VTech, Toys To Life, Spin Master and Funko in August based on feedback from national buyers at 30 key retailers worldwide.

Sell-through performance in July and August and third quarter projections for these toy manufacturers and their main product categories.

Charts showing the top five brands in Fashion Dolls, Action Figures and the Learning Space worldwide at 30 retailers in 17 toy markets at the end of August.

Market share changesin August affecting the leading companies in the Fashion Doll, Action Figure,Board Games and Learning Space categories.

Klosters Toy Manufacturer Newsletter September 1, 2018 – Page Index

Page

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Title

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Title

Contents

1

1

OVERALL CAVEATS

All projections are based on sell-through and do not include shipments in transit or any Forex impact

1

2

TOYSRUS

Third-quarters and full-year impact of TRU store closures on leading manufacturers

1

3

MATTEL

1

3.1

Management

Appointment of Adriana Cisneros and Roger Lynch

2

3.2

. Second Quarter Performance

Analysis of second quarter performance

2

3.3

Third Quarter Outlook

July and August sell-through and projection for third quarter; Jurassic World performance

2

3.4

The Boy/Girl Segment

2

Sales Projection 3rd Quarter

July and August sell-through and projection for third quarter

2

Top Fashion Doll IPs in each major market

The top Fashion Dolls at 30 major retailers in 17 leading toy markets

3

North America

Top five Fashion Doll IPs; market share changes for Mattel, Hasbro, MGA, Spin Master and Just Play; U.S. market share readings Fashion Doll IPs between April 2017 and July 2018

4

Europe:

Top five Fashion Doll IPs; market share changes for Mattel, Hasbro, MGA and Just Play

4

AustralAsia, Latin America, Africa

Top five Fashion Doll IPs; market share changes for Mattel, Hasbro and MGA

5

Fashion Dolls Worldwide

Winners and losers – Mattel, Hasbro, MGA, Spin Master and Just Play

5

3.5

Fisher Price

July and August sell-through; third quarter projection

5

3.6

American Girl

July and August sell-through; third quarter projection

6

3.7

Mega

July and August sell-through; third quarter projection; retail inventories

6

3.8

Other Events

NPD data on Fashion Dolls worldwide versus Klosters findings

6

4

HASBRO

6

4.1

Second quarter performance

Analysis of second quarter performance

6

4.2

Third Quarter Outlook

Third quarter sell-through projection

6

4.3

Boys’ Properties

6

Sales Projection third quarter

July and August sell-through and projection to third quarter; Nerf shelf space and competitors

7

Top Action Figure IPs in each major market

The top Action Figure IPs at 30 major retailers in 17 leading toy markets

7

North America

Top five Action Figure IPs; market share changes for Hasbro, Mattel, Funko, Spin Master, Jazwares and eOne; Incredibles performance

8

Europe

Top five Action Figure IPs; market share changes for Hasbro, Mattel, Funko, Spin Master, Jazwares and eOne; Incredibles performance

9

AustralAsia, South Africa, Latin America

Top five Action Figure IPs; market share changes for Hasbro, Mattel, Funko, Spin Master, Jazwares and eOne; Incredibles performance

10

Action Figures Worldwide

Winners and losers - Hasbro, Mattel, Funko, Spin Master, Jazwares

10

4.4

Girls properties

Third quarter projection for Princess and entire category

10

4.5

Preschool

Sell-through projection third quarter; Playskool asbestos issue

10

4.6

Games and Puzzles

10

Sales Projection

Third quarter sell-through projection

10

Position in each major market

11

North America

Changes in Hasbro’s position between 2/25/2018 and 8/25/2018,market share changes

11

Europe:

Changes in Hasbro’s position between 2/25/2018 and 8/25/2018,market share changes

12

Australasia, South Africa and Latin America:

Changes in Hasbro’s position between 2/25/2018 and 8/25/2018,market share changes

13

Hasbro Games Position Worldwide

Market share changes between May and August 2018

13

4.7

Other Events

Hasbro’s strategy for expendable IPs – license or sell; NPD data worldwide versus Klosters findings

13

5

LEAPFROG/VTECH

13

5.1

Second Quarter Performance

Second quarter sell-through findings

13

5.2

Third Quarter Outlook

Sell-through projection for third quarter

13

5.3

Top IPs in each major market

The top Learning Product IPs at 30 major retailers in 17 leading toy markets

14

North America:

Top five Learning IPs; market share changes for VTech/Leapfrog, Mattel, Spin Master,Melissa +Doug, and MGA

14

Europe

Top five Learning IPs; market share changes for VTech/Leapfrog, Mattel,, Melissa +Doug, and MGA

15

Australasia, South Africa and Latin America

Top five Learning IPs; market share changes for VTech/Leapfrog, Mattel, Spin Master, Melissa +Doug, and MGA

16

Learning Product Positions Worldwide

market share changes for VTech/Leapfrog, Mattel, Spin Master, Melissa +Doug, and MGA

16

6

JAKKS PACIFIC

16

6.1

Second Quarter Performance

Second quarter analysis

16

6.2

July and August Sell-through Performance

July and August sell-through performance and third quarter projection; Incredibles; Disguise

17

6.3

. Other Events

Meisheng offer to acquire 51% of Jakks

17

7

TOYS TO LIFE

Ubisoft’s Starlink on preorder. Toys To Life market share at end July 2018

17

8

SPIN MASTER

17

8.1

Second Quarter Performance

Second Quarter analysis

18

8.2

July and August Sell-through Performance

Sell-through projection for third quarter

18

8.3

Other Events

Acquisition activity

18

9

FUNKO

18

9.1

Second Quarter Performance

Assessment of 2nd Q numbers; difference between sell-through and shipments; Funko seasonality; TRU impact

19

9.2

July and August Sell-through Performance

Third quarter sell-through projection; Figurines vs non-Figurines mix; U.S. vs International; third quarter shipments

20

9.3

Other Events

Pikachu and Fortnite licenses; Hasbro’s Mighty Muggs distribution

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.