STRENGTHEN ACCELERATE SIMPLIFY

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1 1 2 3 STRENGTHEN ACCELERATE SIMPLIFY 2 / All other product names and associated designs mentioned or shown in this 1

2 SIMPLIFY Streamline Structure & Processes Optimize Supply Chain 3 SIMPLIFY more nimble 4 / All other product names and associated designs mentioned or shown in this 2

3 SIMPLIFY more innovative 5 SIMPLIFY more effective 6 / All other product names and associated designs mentioned or shown in this 3

4 SIMPLIFY more efficient 7 LONG-TERM FINANCIAL OBJECTIVES SALES GROWTH GROSS MARGIN ADVERTISING SG&A OPERATING MARGIN 8 / All other product names and associated designs mentioned or shown in this 4

5 MATTEL STRATEGIES 9 CONTINUED COMMITMENT TO COST SAVINGS OE 3.0 OE 2.0 $142MM YTD $187MM Overall Generated ~$550M in gross savings to date GCL $225MM Source: Mattel Financials YTD 10 / All other product names and associated designs mentioned or shown in this 5

6 CONTINUED COMMITMENT TO COST SAVINGS OE 3.0 OE 2.0 $142MM YTD $187MM ~$60MM ADVERTISING ~$230MM GROSS MARGIN Procurement Lean manufacturing Packaging Global procurement GCL $225MM ~$260MM SG&A Front and back of the house functions Source: Mattel Financials YTD YTD 11 FUNDING OUR FUTURE SG&A Better Overall Quality 25% 21% - 22% Source: Mattel Internal Financials Trailing 12 months 12 / All other product names and associated designs mentioned or shown in this 6

7 FUNDING OUR FUTURE 50% GROSS MARGIN 51% In-line with long-term objective Headwinds Input Cost Inflation Going Forward Tailwinds Lower Inventory Clean-Up Product Mix Lower Mega FV Adjustments OE 3.0 Savings Trailing 12 months Pricing Source: Mattel Internal Financials / All other product names and associated designs mentioned or shown in this 7

8 TARGET $ MM in gross savings by Structure & Process Improvement Supply Chain Optimization TARGET $ MM in gross savings by / All other product names and associated designs mentioned or shown in this 8

9 FUNDING OUR FUTURE Structure & Process Improvement Supply Chain Optimization 17 FUNDING OUR FUTURE Structure & Process Improvement 18 / All other product names and associated designs mentioned or shown in this 9

10 FUNDING OUR FUTURE Structure & Process Improvement STREAMLINE SCALE REALLOCATE 19 FUNDING OUR FUTURE Structure & Process Improvement STREAMLINE SCALE REALLOCATE 20 / All other product names and associated designs mentioned or shown in this 10

11 OPPORTUNITY TO WORK BETTER TOGETHER Across Brands Supply Chain 21 STREAMLINE 22 / All other product names and associated designs mentioned or shown in this 11

12 STREAMLINE 23 FUNDING OUR FUTURE Structure & Process Improvement STREAMLINE SCALE REALLOCATE 24 / All other product names and associated designs mentioned or shown in this 12

13 SCALE 25 SCALE - EXAMPLE DIGITAL PAST: DIGITAL FRAGMENTED ACROSS BRANDS & REGIONS 26 / All other product names and associated designs mentioned or shown in this 13

14 SCALE - EXAMPLE DIGITAL FUTURE: DIGITAL CENTER OF EXCELLENCE 27 SCALE FUTURE: EXPANDING CENTERS OF EXCELLENCE 28 / All other product names and associated designs mentioned or shown in this 14

15 FUNDING OUR FUTURE Structure & Process Improvement STREAMLINE SCALE REALLOCATE 29 REALLOCATE SG&A Invest in High Potential Growth Opportunities 30 / All other product names and associated designs mentioned or shown in this 15

16 REALLOCATE SG&A Mature Markets Growth Markets 31 REALLOCATE SG&A Mature Markets Growth Markets 32 / All other product names and associated designs mentioned or shown in this 16

17 REALLOCATE SG&A Objective Below our 5 Year Average 24% 25% 23-24% 21-22% SG&A 5-Year Average Trailing 12 month Near-Term Objective Long-Term Objective Source: Mattel Internal Financials 33 REALLOCATE OPTIMIZE ADVERTISING CORE BRANDS BIGGER BETTER IDEAS TOY BOX BRANDS 34 / All other product names and associated designs mentioned or shown in this 17

18 REALLOCATE OPTIMIZE ADVERTISING HOW WHERE WHEN 35 REALLOCATE INVEST IN ADVERTISING 11% - 13% ADVERTISING ADVERTISING 5-year average Future Source: Mattel Internal Financials 36 / All other product names and associated designs mentioned or shown in this 18

19 PROCESS IMPROVEMENTS SG&A ADVERTISING OPERATING INCOME CASH FLOW $ $ $ $ $ 37 FUNDING OUR FUTURE Supply Chain Optimization PROCUREMENT PACKAGING LABOR 38 / All other product names and associated designs mentioned or shown in this 19

20 Supply Chain $2.8B Annual Costs Source: Mattel Internal Financials 39 FUNDING OUR FUTURE Supply Chain Optimization PROCUREMENT PACKAGING LABOR 40 / All other product names and associated designs mentioned or shown in this 20

21 SUPPLY CHAIN 41 FUNDING OUR FUTURE Supply Chain Optimization PROCUREMENT PACKAGING LABOR 42 / All other product names and associated designs mentioned or shown in this 21

22 20% Supply Chain LABOR $2.8B Annual Costs MANUFACTURING Source: Mattel Internal Financials 43 CHINA MINIMUM WAGE RMB 2, % CAGR 1,500 1, Source: Mattel Internal Analysis / All other product names and associated designs mentioned or shown in this 22

23 70%-80% of Products are New Every Year Source: Mattel Internal Analysis TIME IS RIGHT FOR AUTOMATION LABOR RATES SPEED TO MARKET 46 / All other product names and associated designs mentioned or shown in this 23

24 PRODUCT LIFECYCLE DESIGN MANAGEMENT FOR MANUFACTURE FOCUS PRODUCT ON SIGNIFICANT LIFECYCLE MANAGEMENT AUTOMATION 47 DESIGN FOR MANUFACTURE PRODUCT LIFECYCLE MANAGEMENT 48 / All other product names and associated designs mentioned or shown in this 24

25 PRODUCT LIFECYCLE MANAGEMENT DESIGN FOR MANUFACTURE FOCUS DESIGN ON SIGNIFICANT FOR MANUFACTURE AUTOMATION 49 PRODUCT LIFECYCLE MANAGEMENT DESIGN FOR MANUFACTURE 50 / All other product names and associated designs mentioned or shown in this 25

26 CAPITAL EXPENDITURE Higher Investment in Capex Increased Automation Lower Labor Cost 51 FUNDING OUR FUTURE Supply Chain Optimization PROCUREMENT PACKAGING LABOR 52 / All other product names and associated designs mentioned or shown in this 26

27 FUNDING OUR FUTURE Supply Chain Optimization TARGET $100MM IN GROSS SAVINGS BY 2016 PROCUREMENT PACKAGING LABOR 53 GROSS MARGIN OBJECTIVES LONG-TERM Above 50% TARGET NEAR-TERM LOW TO MID 50% 54 / All other product names and associated designs mentioned or shown in this 27

28 Structure & Process Improvement TARGET $150 $200MM in gross savings by 2016 Supply Chain Optimization TARGET $100MM in gross savings by 2016 TOTAL TARGET $ MM in gross savings by STRENGTHEN ACCELERATE SIMPLIFY 56 / All other product names and associated designs mentioned or shown in this 28

29 CASH GENERATION OUR BRANDS STRONG OPERATING MARGINS SHORT CYCLE BUSINESS 57 CASH GENERATION 58 / All other product names and associated designs mentioned or shown in this 29

30 CAPITAL & INVESTMENT FRAMEWORK DIVIDEND (Annualized $ / share) Deployed $1.5 Billion over past 4 years* $1.24 $1.44 $1.52 $1.52 Remains Our FIRST PRIORITY $0.83 $0.92 Key Component of TSR Framework * Excludes YTD 2014 Activity Source: Mattel Financials YTD Preferred Way to Return Cash 59 CAPITAL & INVESTMENT FRAMEWORK DIVIDEND STRENGTHEN ACCELERATE SIMPLIFY Continued Strong Cash Flows Sustain Dividend in the Near-term Grow Dividend over the Long-term 60 / All other product names and associated designs mentioned or shown in this 30

31 CAPITAL & INVESTMENT FRAMEWORK ACQUISITIONS & SHARE REPURCHASES Deployed $2.2B over past 4 years* $1.1B of Acquisitions Opportunistic Share Repurchases * Excludes YTD 2014 Activity Source: Mattel Financials YTD 61 CAPITAL & INVESTMENT FRAMEWORK ACQUISITIONS Gross Sales Source: Mattel Internal Analysis 62 / All other product names and associated designs mentioned or shown in this 31

32 AN EXCELLENT INVESTMENT Industry Leader Culture of Innovation Strong Cash Flows Right Strategies Financial Discipline 63 STRENGTHEN ACCELERATE SIMPLIFY Growth enablers: Investments in Product Development Marketing Advertising Continued Expansion $ MM Gross Savings Target Core Brand Growth Bigger, Better Ideas Consistent Global Execution Robust Movie Slate Structure & Process Review Increased Automation Great, Must-Have Innovative Toys Emerging Market Momentum Reinvest for Growth Restore & Grow Profitability 64 / All other product names and associated designs mentioned or shown in this 32

33 creating the future of play! Q&A 65 / All other product names and associated designs mentioned or shown in this 33