Slides
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Q2 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 July 30, 2025 for the three and six months ended June 30, 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 Annual 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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2025 Q2 & YTD 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 45 and Free Cash Flow are included on page 47, and Adjusted EBITDA Margin on Page 14 and Adjusted Diluted EPS on page 5. See also slide 2 Disclaimer. ©2025 Spin Master. All Rights Reserved.5 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 EPS $400.7M ($46.5M) ($7.4M) ($52.4M) $28.7M 7.2% ($0.46) ($0.07) $26.1M ($15.2M) Q2 2025 $760.0M ($71.0M) ($19.4M) ($74.5M) $50.3M 6.6% ($0.70) ($0.19) $50.9M ($26.0M) YTD 2025
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1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A A available on SEDAR+ at www.sedarplus.com. The reconciliation of Toy Gross Product Sales and Constant Currency are included on page 50. See also slide 2 Disclaimer. Toy Gross Product Sales1 and Revenue by Creative Centre Q2 2025 vs. Q2 2024 ©2025 Spin Master. All Rights Reserved.6 371.0 322.3 32.1 46.3 384.7 340.9 36.4 34.7 TOY GROSS PRODUCT SALES TOY REVENUE ENTERTAINMENT REVENUE DIGITAL GAMES REVENUE Q2 2025 Q2 2024 -3.6% as reported -3.9% in constant currency1 Toys US$ millions REVENUE -5.5% as reported -5.7% in constant currency1 Toys -11.8% as reported -11.8% in constant currency1 Entertainment +33.4% as reported +30.8% in constant currency1 Digital Games -2.7% as reported -3.2% in constant currency1 Spin Master
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US$ millions 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 50. See also slide 2 Disclaimer. Toy Gross Product Sales1 and Revenue by Creative Centre YTD 2025 vs. YTD 2024 ©2025 Spin Master. All Rights Reserved.7 684.7 596.0 69.9 94.1 648.8 567.3 80.2 80.7 TOY GROSS PRODUCT SALES TOY REVENUE ENTERTAINMENT REVENUE DIGITAL GAMES REVENUE YTD Q2 2025 YTD Q2 2024 +5.5% as reported +5.8% in constant currency1 Toys 760.0 728.2 REVENUE +5.1% as reported +5.3% in constant currency1 Toys -12.8% as reported -12.8% in constant currency1 Entertainment +16.6% as reported +16.2% in constant currency1 Digital Games +4.4% as reported +4.5% 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 10. 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 $24.2M for Q2 2024 and 44.8M for YTD 2024. GROSS PROFIT ADJ. GROSS PROFIT2,3 Q2 2025 Q2 2024 GROSS MARGIN ADJ. GROSS MARGIN2,3 52.4 48.4 53.3 48.9 52.4 54.3 53.3 55.1 Gross Profit and Gross Margin ©2025 Spin Master. All Rights Reserved.8 210 200 405 356 210 224 405 401 YTD 2025 YTD 2024 Q2 2025 Q2 2024 YTD 2025 YTD 2024 Q2 2025 Q2 2024 YTD 2025 YTD 2024 Q2 2025 Q2 2024 YTD 2025 YTD 2024 +400bps as reported Q2 2025 +440bps as reported YTD 2025 -190bps as reported Q2 2025 -180bps as reported YTD 2025
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1. Non-GAAP financial measure or ratio. The composition, usefulness and quantitative reconciliations for each such measure are incorporated by reference from the section “Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures” in the Company’s Interim MD&A available on SEDAR+ at www.sedarplus.com. The reconciliation of Adjusted SG&A is included on page 11, and Adjusted EBITDA is on page 14. See also slide 2 Disclaimer. 2. Operating margin is calculated as Operating income divided by Revenue. Q2 2025 Q2 2024 % Change as reported Selling, General and Administrative Expenses (“SG&A”) 221.0 200.3 10.3% Adjusted SG&A1 196.6 187.5 4.9% Depreciation and amortization (Cost of sales) 14.5 16.4 (11.6%) Depreciation and amortization (SG&A) 16.9 15.4 9.7% Operating Loss (52.4) (23.0) 127.8% Operating Margin2 (13.1%) (5.6%) -750bps Adjusted EBITDA1 28.7 53.6 (46.5%) Adjusted EBITDA Margin1 7.2% 13.0% -580bps ©2025 Spin Master. All Rights Reserved.9 (in US$ millions) Key P&L Financial Metrics YTD 2025 YTD 2024 % Change as reported 416.3 398.0 4.6% 382.7 361.1 6.0% 26.7 31.4 (15.0%) 34.0 35.2 (3.4%) (74.5) (84.8) (12.1%) (9.8%) (11.6%) 180bps 50.3 72.2 (30.3%) 6.6% 9.9% -330bps (in US$ millions)
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June 30, 2025 June 30, 2024 December 31, 2024 Cash 128.0 154.6 233.5 Trade receivables, net 355.9 315.7 499.4 Other receivables 1 61.9 57.8 54.9 Inventories, net2 225.0 275.4 184.7 Net working capital3 276.0 286.1 311.5 Capital Expenditures4 41.3 30.0 32.5 Loans and Borrowings5 385.0 460.0 390.0 Key Balance Sheet and Cash Flow Metrics (in US$ millions) Capital Allocation YTD 2025, repurchased and cancelled subordinate voting shares: $32.2M (1,793,731 shares) YTD 2025, dividends paid: $17.1M Dividend announced on July 30th remained at C$0.12/share per quarter ©2025 Spin Master. All Rights Reserved.10 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 as part of the acquisition as at June 30, 2025, June 30, 2024 and December 31, 2024 was $nil, $ 21.5M and $nil 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 June 30, 2025 and June 30, 2024 is included on page 34 of the Company’s interim MD&A and for December 31, 2024 is included on page 37 of the Company’s Annual 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 June 30, 2025, June 30, 2024, and December 31, 2024. 5. Excludes unamortized financing costs of $2.8M as at June 30, 2025, $1.6M as at June 30, 2024, and $0.9M as at December 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 49, and Toys Adjusted EBITDA is on page 46. See also slide 2 Disclaimer. Toys Highlights ©2025 Spin Master. All Rights Reserved.11 2025 Q2 & YTD $371.0M $322.3M ($39.7M) (12.3%) ($0.7M) (0.2%) Q2 2025 $684.7M $596.0M ($90.3M) (15.2%) ($21.2M) (3.6%) YTD 2025
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Preschool, Infant & Toddler and Plush Outdoor Wheels & Action Q1 2025 vs. Q1 2024 Toy Gross Product Sales1 decreased by 3.6% to $371.0M 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 21. See also slide 2 Disclaimer. ©2025 Spin Master. All Rights Reserved.12 Activities, Games & Puzzles and Dolls & Interactive +17.3%+12.1% -39.5% -31.7% Toy Gross Product Sales1 Q2 2025 vs. Q2 2024
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Preschool, Infant & Toddler and Plush Outdoor Wheels & Action Toy Gross Product Sales1 increased by 5.5% to $684.7M 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 22. See also slide 2 Disclaimer. ©2025 Spin Master. All Rights Reserved.13 Activities, Games & Puzzles and Dolls & Interactive +33.3%+13.8% +18.7% -23.4% Toy Gross Product Sales1 YTD 2025 vs. YTD 2024
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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, AU, BE, CA, FR, GE, IT, MX, NE, SP, UK), TAM: Total Toys excl. Building Sets, Explorative & Other Toys and Strategic Trading Cards, Projected USD Adjusted, Jan - Jun 2025©2025 Spin Master. All Rights Reserved.14 Geographic Spin Master Point-of-Sale1 ("POS") Metrics $POS Change YoY – Q2 & YTD 2025 Global2 Int. (ex. US)2US2 Q2 2025 YTD 2025 7.4% 8.1% 5.6% 0.3% -0.3% 1.6% Q2 2025 YTD 2025 Q2 2025 YTD 2025
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v Entertainment Revenue Entertainment Operating Income Entertainment Adjusted Operating Income1 Entertainment Operating Margin Entertainment Adjusted Operating Margin 1 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 46. See also slide 2 Disclaimer. Entertainment Highlights 2025 Q2 & YTD ©2025 Spin Master. All Rights Reserved.15 $15.7M $17.7M 48.9% 55.1% $32.1M Q2 2025 YTD 2025 $41.6M $43.8M 59.5% 62.7% $69.9M
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Delivering Family Entertainment Franchises
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v Digital Games Revenue Digital Games Operating Loss Digital Games Adjusted Operating Income1 Digital Games Operating Margin Digital Games Adjusted Operating Margin 1 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 47. See also slide 2 Disclaimer. Digital Games Highlights 2025 Q2 & YTD ©2025 Spin Master. All Rights Reserved.17 ($15.5M) $7.7M (33.5%) 16.6% $46.3M Q2 2025 YTD 2025 ($7.3M) $17.2M (7.8%) 18.3% $94.1M
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Adj. Operating Income1 (US$ millions) Revenue (US$ millions) 10 13 6 840 41 35 46 Digital Games – Q2 Financial Results Q2 2025 Q2 2023 Q2 2022 Q2 2024 Q2 2025 Q2 2023 Q2 2022 Q2 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 47. See also slide 2 Disclaimer. ©2025 Spin Master. All Rights Reserved.18
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Monthly Active Users1 ("MAU") Average MAU Q2 2025 ~54M -5% (~3M users) vs Q2 2024 Ages 6+ In App Purchase Active Subscriptions2 Ages 2-5 Subscription Total Subscriptions Q2 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 servi ce 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 Q2 2025 ~57M -6% (~4M users) vs Q2 2024 ~ 479k3 +12% vs. 426k Q2 2024
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Procurement Move more production for the U.S. market out of China for the second half of 2025 and beyond. Pricing Strategy 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 Supply Chain 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. Financial Management Aggressively manage costs, profitability and liquidity. ©2025 Spin Master. All Rights Reserved.20
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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 exposed to Tariff 22.5% of Toy COGS exposed to Tariff *49% SM & 93% M&D sourced from China ©2025 Spin Master. All Rights Reserved.21 1. Data represents management’s best estimate. Sourcing Summary As at April 30, 2025 Over 55%1 of Spin Master revenue not impacted by changes in global tariff policies.
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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.22