Slides
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Q1 2025 Supplemental Information
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Disclaimer This presentation of Spin Master Corp. (“Spin Master” or “the Company”) contains certain statements, other than statements of historical fact, which constitute “forward-looking information” within the meaning of applicable securities laws, including the Securities Act (Ontario). Such statements may concern the Company’s objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects and opportunities and specific forward-looking statements in this presentation include, without limitation, statements with respect to: future growth expectations in 2025 and beyond; content, digital game and product pipeline and launches; drivers and trends for such growth and financial performance; the successful execution of its strategies for growth; the integration of and benefits from acquisitions; financial position, cash flows, and financial performance; and CSR priorities and goals. Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made in this presentation, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking information in this presentation. Such risks and uncertainties and the material factors and assumptions used to develop the forward-looking information herein include, without limitation, those discussed in the Company's disclosure materials, including the Management's Discussion and Analysis dated April 30, 2025 for the three months ended March 31, 2025 (the “Company’s Interim MD&A”) or subsequent, most annual Management's Discussion and Analysis for the year ended December 31, 2024 (the “Company’s Interim MD&A”) and the Company's most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available under the Company's profile on SEDAR+ (www.sedarplus.com), including those listed within any forward-looking statement safe harbour therein. The risk factors are not intended to represent a complete list of the factors that could affect the Company and investors are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided as of the date of this presentation and for the purpose of providing information about management’s expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. This presentation uses certain financial measures and ratios that do not have any standardized meaning prescribed by International Financial Reporting Standards (“non-GAAP”) and therefore may not be comparable to similar measures presented by other issuers. ©2025 Spin Master. All Rights Reserved.2
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DIGITAL GAMES Create exceptional digital play experiences for kids of all ages around the world. TOYS Be a global leader in Toys by creating play experiences that spark creativity and imagination in kids and families globally. ENTERTAINMENT Be a leading global creator of children’s entertainment, igniting imaginations and deep character connections. Leading Global Children’s Entertainment Company with a Diversified Multi-platform Portfolio. Reimagining Everyday Play VISION ©2025 Spin Master. All Rights Reserved.3
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Three Creative Centres Toys With distribution in over 100 countries, Spin Master is best known for award-winning brands PAW Patrol®, Bakugan®, Kinetic Sand®, Air Hogs®, Melissa & Doug®, Hatchimals®, Rubik’s Cube® and GUND®, and is the global toy licensee for other popular properties. Entertainment Spin Master Entertainment creates and produces compelling multiplatform content, through its in-house studio and partnerships with outside creators, including the preschool franchise PAW Patrol® and numerous other original shows, short-form series and feature films. Digital Games Spin Master has an established presence in digital games, anchored by the Toca Boca® and Sago Mini® brands, offering open-ended and creative game and educational play in digital environments. Wheels & Action Outdoor Activities, Games & Puzzles and Dolls & Interactive Preschool, Infant & Toddler and Plush ©2025 Spin Master. All Rights Reserved.4
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Adjusted EBITDA1 Adjusted EBITDA Margin1 Revenue Net Loss Adjusted Net Loss1 Operating Loss Cash provided by operating activities Free Cash Flow1 Diluted EPS Adjusted Diluted EPS2 Q1 2025 Highlights 1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliations of Adjusted Net Income, Adjusted EBITDA are included on page 35 and Free Cash Flow are included on page 37, and Adjusted EBITDA Margin on Page 12 and Adjusted Diluted EPS on page 5. See also slide 2 Disclaimer. ©2025 Spin Master. All Rights Reserved.5 13.6% $30.3M $7.5M $39.7M $0.5M (10.2M) $0.29 $0.07 $3.0M 10bps $359.3M ($24.5M) ($12.0M) ($22.1M) $24.8M ($10.8M) ($0.24) ($0.12) $21.6M 6.0% YoY
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Spin Master Revenue 85% Toy 15% Entertainment & Digital Games 50% U.S. 50% Rest of World 55%* Sourced from China 45%** Sourced from Vietnam, India, Mexico, etc. 27.5% of Toy COGS @ 145% Tariff 22.5% of Toy COGS @ 10% Tariff Over 55%1 of Spin Master revenue not impacted by changes in global tariff policies. *49% SM & 93% M&D sourced from China **Goal of 70% by end of 2025 Goal of 75-80% by end of 2026 ©2025 Spin Master. All Rights Reserved.6 1. Data represents management’s best estimate. Tariff Impact Summary
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Move more production for the U.S. market out of China for the second half of 2025 and beyond. Increase prices to fully absorb costs that cannot be offset. Maintain price competitiveness and deliver strong value propositions across portfolio, with emphasis on lower price points. Tariff Mitigation Strategies Manage inventory globally by moving non-tariffed inventory from other regions to meet U.S. demand. Implement different shipping methodologies to minimize impact of tariffs. Aggressively manage costs, profitability and liquidity. ©2025 Spin Master. All Rights Reserved.7 Procurement Pricing Strategy Supply Chain Financial Management
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1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A A available on SEDAR+ at www.sedarplus.com. The reconciliation of Toy Gross Product Sales and Constant Currency are included on page 38. See also slide 2 Disclaimer. Toy Gross Product Sales1 and Revenue by Creative Centre Q1 2025 vs. Q1 2024 ©2025 Spin Master. All Rights Reserved.8 313.7 273.7 37.8 47.8 264.1 226.4 43.8 46.0 T O Y G R O S S P R O D UC T S A LES T O Y R E V E N U E EN T ER T A IN M EN T R EV EN UE D IG IT A L G A M ES R EV EN UE Q1 2025 Q1 2024 +18.8% as reported +20% in constant currency1 Toys US$ millions 359.3 316.2 REVENUE +20.9% as reported +22% in constant currency1 Toys -13.7% as reported -13.7% in constant currency1 Entertainment +3.9% as reported +5.2% in constant currency1 Digital Games +13.6% as reported +14.6% in constant currency1 Spin Master
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Gross Profit ($) Gross Margin1 (%) 1. Gross margin is calculated as Gross profit divided by Revenue 2. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliation of Adjusted Gross Profit is included on page 9. See also slide 2 Disclaimer. 3. Adjusted Gross Profit and Adjusted Gross Margin excludes the impact of the fair value adjustment to Melissa & Doug’s inventories acquired as part of the acquisition on January 2, 2024 of $20.6M for Q1 2024. GROSS PROFIT ADJ. GROSS PROFIT2,3 Q1 2025 Q1 2024 195 157 195 177 Q1 2025 Q1 2024 GROSS MARGIN ADJ. GROSS MARGIN2,3 Q1 2025 Q1 2024 54.2 49.5 54.2 56 470bps as reported Q1 2025 -180bps as reported Q1 2025 Q1 2025 Q1 2024 Gross Profit and Gross Margin ©2025 Spin Master. All Rights Reserved.9
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1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliation of Adjusted SG&A is included on page 10, and Adjusted EBITDA is on page 35. See also slide 2 Disclaimer. 2. Operating margin is calculated as Operating income divided by Revenue. Q1 2025 Q1 2024 % Change as reported Selling, General and Administrative Expenses (“SG&A”) 195.3 197.7 (1.2%) Adjusted SG&A1 186.1 173.6 7.2% Depreciation and amortization (Cost of sales) 12.2 15.0 (18.7%) Depreciation and amortization (Expenses) 17.1 19.8 (13.6%) Operating Loss (22.1) (61.8) (64.2%) Operating Margin2 (6.2%) (19.5%) 1330bps Adjusted EBITDA1 21.6 18.6 16.1% Adjusted EBITDA Margin1 6.0% 5.9% 10bps ©2025 Spin Master. All Rights Reserved.10 (in US$ millions) Key P&L Financial Metrics
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March 31, 2025 March 31, 2024 December 31, 2024 Cash 152.7 205.5 233.5 Trade receivables, net 312.2 285.9 499.4 Other receivables1 61.8 62.4 54.9 Inventories, net2 180.0 252.1 184.7 Net working capital3 287.6 334.2 311.5 Capital Expenditures4 35.6 24.9 32.5 Loans and Borrowings5 359.2 473.2 389.1 Key Balance Sheet and Cash Flow Metrics (in US$ millions) Capital Allocation During Q1 2025, repurchased and cancelled subordinate voting shares: $21.7M (1,157,099 shares) During Q1 2025, dividends paid: $9.1M Dividend announced on April 30th remained at C$0.12/share per quarter ©2025 Spin Master. All Rights Reserved.11 1. Other receivables include investment tax credits receivables, sales tax receivables and other balances 2. Inventories are net of write-downs. The fair value adjustment for Melissa & Doug’s inventory recorded as part of the acquisition as at March 31, 2025, December 31, 2024 and March 31, 2024 was $nil, $nil and $45.7M respectively. 3. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliation of Net Working Capital for March 31, 2025 and March 31 2024 is included on page 25 of the Company’s interim MD&A and for December 31, 2024 is included on page 37 of the Company’s Interim MD&A. See also slide 2 Disclaimer. 4. Capital Expenditures are defined as the sum of "Investment in property, plant and equipment" and "Investment in intangible assets" in the Consolidated statements of cash flows for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024. 5. Excludes unamortized financing costs of $0.8M as at March 31, 2025, $0.9M as at December 31, 2024 and $1.8M as at March 31, 2024.
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Toys Adjusted EBITDA1 Toys Adjusted EBITDA Margin1 Toy Gross Product Sales1 Toy Revenue Toys Operating Loss Toys Operating Margin 1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliation of Toy Gross Product Sales is included on page 38, and Toys Adjusted EBITDA is on page 36. See also slide 2 Disclaimer. Toys Highlights $40.2M 2160bps 18.8% 20.9% $12.0M 690bps $313.7M $273.7M ©2025 Spin Master. All Rights Reserved.12 Q1 2025 ($50.6M) (18.5%) ($20.5M) (7.5%) YoY
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Preschool, Infant & Toddler and Plush Outdoor Wheels & Action Toy Gross Product Sales1,2 Q1 2025 vs. Q1 2024 Toy Gross Product Sales1 increased by 18.8% to $313.7M 1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliation of Toy Gross Product Sales is included on page 38. See also slide 2 Disclaimer. ©2025 Spin Master. All Rights Reserved.13 Activities, Games & Puzzles and Dolls & Interactive +63.1%+16.0% +61.2% -9.9%
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1. Point-of-Sale represents the value of retail sales, as measured at the point where the customer is purchasing and sales tax is applied. 2. Source: Circana, LLC, Retail Tracking Service, G11 (US, CA, MX, FR, IT, SP, DE, UK, AU, BX), Total Toys, Projected USD, JAN – MAR 2025 v. JAN – MAR 2024. 3. Source: Circana, LLC, Retail Tracking Service, US, Total Toys, Projected USD, JAN – MAR 2025 v. JAN – MAR 2024. 4. Source: Circana, LLC, Retail Tracking Service, G10 (CA, MX, FR, IT, SP, DE, UK, AU, BX), Total Toys, Projected USD, JAN – MAR 2025 v. JAN – MAR 2024. Global2 ©2025 Spin Master. All Rights Reserved.14 -6% -8% -3% Geographic Spin Master Point-of-Sale1 ("POS") Metrics Q1 2025 vs. Q1 2024 US3 Int. (ex. US)4
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v Entertainment Revenue Entertainment Operating Income Entertainment Adjusted Operating Income1 Entertainment Operating Margin Entertainment Adjusted Operating Margin1 1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliation of Entertainment Adjusted Operating Income is included on page 36. See also slide 2 Disclaimer. (13.7%) 320bps 260bps ($2.7M) ($3.0M) $37.8M Entertainment Highlights Q1 2025 ©2025 Spin Master. All Rights Reserved.15 $25.9M $26.1M 68.5% 69.0% YoY
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v Digital Games Revenue Digital Games Operating Income Digital Games Adjusted Operating Income1 Digital Games Operating Margin Digital Games Adjusted Operating Margin1 1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are i ncorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com . The reconciliation of Digital Games Adjusted Operating Income is included on page 37. See also slide 2 Disclaimer. 3.9% (1150bps) (1310bps) ($5.0M) ($5.7M) $47.8M Digital Games Highlights Q1 2025 ©2025 Spin Master. All Rights Reserved.17 17.2% 19.9% $8.2M $9.5M YoY
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22 19 15 1051 48 46 48 Adj. Operating Income1 (US$ millions) Revenue (US$ millions) Digital Games – Q1 Financial Results Q1 2025 Q1 2023 Q1 2022 Q1 2024 Q1 2025 Q1 2023 Q1 2022 Q1 2024 1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are i ncorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sed arplus.com. The reconciliation of Digital Games Adjusted Operating Income is included on page 37. See also slide 2 Disclaimer. ©2025 Spin Master. All Rights Reserved.18
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Monthly Active Users1 ("MAU") Average MAU Q1 2025 ~55M -5% (~3M users) vs Q1 2024 Ages 6+ In App Purchase Active Subscriptions2 Ages 2-5 Subscription Total Subscriptions Q1 2025 1. Monthly Active Users (MAU) represents the number of devices which have launched a defined digital game (such as Toca Boca) during a defined period. 2. Active Subscriptions represents the number of users who pay for access or are on an active free trial, per subscription se rvice as of the end of a defined period. 3. Includes Sago Mini, Piknik, Originator (Math Tango and ELA) and PAW Patrol Academy subscribers. ©2025 Spin Master. All Rights Reserved.19 Ending MAU Q1 2025 ~58M +6% (~3M users) vs Q1 2024 ~ 488k3 +13% vs. 430k Q1 2024
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SUBSCRIPTIONS IN APP PURCHASES LIVE GLOBALLY1 LIMITED RELEASE / TESTING2 1. Live service updates planned across the portfolio in coming months/quarters. 2. Available in select markets to test KPIs around; Acquisition, Engagement, and Monetisation prior to launching Globally. Digital Games Portfolio ©2025 Spin Master. All Rights Reserved.20
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CSR at Spin Master CSR Vision Reimagining Everyday Play for Future Generations Spin Master creates magical play experiences for children and their families. We foster an inclusive culture, and empowering children to grow and learn through play while acting as responsible custodians of the world these children will one day inherit. Our Product As a leading children’s entertainment company, we are committed to producing safe, high- quality and responsibly sourced products. We are striving to incorporate responsible product materials and packaging to provide consumers with more sustainable options. Our Environment We are committed to minimizing the impact of our operations on the planet to ensure we help protect the world for children and families today and for generations to come. Our People Our talented team is the driving force behind our purpose of creating magical experiences for children and their families. We are committed to investing in our employees’ well-being and development and to fostering an inclusive workplace where everyone can thrive, grow and ultimately have fun. Our Communities We give children in communities around the world the opportunity to grow, explore and learn through the power of play. Through our in- kind donations, investments in educational programming, local community engagement and employee volunteerism, we are helping children harness their creativity and develop skills to achieve things they thought unimaginable. ©2025 Spin Master. All Rights Reserved.21