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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.

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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 Industryto 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 inToys per Child (AETC),

– The richer the country is, the larger proportion of Consumers 15years old and over.

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Methodology

� Statistical models from the 12 existing markets NPD alreadyoperates:

Kids (0-14 Years Old)

(Number of Kids) X ($ per Kid)Based on GDP/Inhabitant In US$

15 Years +

% ConsumptionBased on GDP/Inhabitant In US$

– Toys Consumer Panel: Australia, France, Germany, Italy, New Zealand, UK, U.S.A.

– Toys Point of Sales Panel: Austria, Belgium, Poland, Portugal, Spain

� We divided the Toy Markets in 2 sections; and created 2 models, based on the GDP/Inhabitant:

55%of the World Market

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Models are based on GDP/Inhabitant

$/Kid by country, based on

GDP/Inhabitant

0

50

100

150

200

250

300

350

0 10 000 20 000 30 000 40 000 50 000 60 000

GDP/Inhabitant ($)

$/K

id (

$)

% Market to 15 Years old +, based

on GDP/Inhabitant

0%

5%

10%

15%

20%

25%

0 10 000 20 000 30 000 40 000 50 000 60 000

GDP/Inhabitant ($)

% M

ark

et

to 1

5+

(%

Va

lue

)

All models start from «0»

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Sources of Information

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� 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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10Source: The NPD Group, Inc. – Toy Markets in the World

Worth $72billion, the world Toy market is dynamic

World Toy Market (billion $)

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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:

� In 2006 USD, the World Toy market adds to:

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

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2006(2007 Exchange rates)

2007

World Toy Market $68.520 $71.963 bn+5.0%

2006 2007(2006 Exchange rates)

World Toy Market $67.030 $70.398 bn+5.0%

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 RussianFederation,

– Asia, especially through China, India, and to a lesser extent Indonesia.

� In the markets audited by The NPD Group, manufacturers face keychallenges:

– 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