Spin Master (TOY) CIBC Eastern Institutional Investor Conference summary

Supply chain and cost management

• Reduced China-based production in legacy lines to 25% by year-end, achieving a diversified supply chain.

• Tariffs impacted cost of goods by $50 million, with a $40 million refund used to pay down debt.

• Retailers shifted from direct import to domestic replenishment, with fall resets returning to historical timing.

• Inflationary pressures, especially from oil and resin, added $15 million in costs, but prices were not raised.

• Product lines were adapted to commodity prices, maintaining target price points and margins.

Product innovation and brand development

• Melissa & Doug brand returned to growth, with new products like Cherry Lane and expanded partnerships.

• International expansion of Melissa & Doug underway, with increased shelf space and distribution.

• Acquisition of Hapiko brings an AI-enabled sticker printer with a recurring revenue model and high engagement.

• Plans to expand Hapiko's product pipeline and leverage scale for broader distribution.

Franchise and entertainment performance

• Third PAW Patrol movie released, generating $20 million in production revenue and strong box office results.

• Toy sales tied to the movie outperformed previous releases, aided by high-profile marketing campaigns.

• New digital games and series launched, with Netflix viewership up 5%, supporting brand health.

• Franchise investment to continue, with new announcements expected and a typical 3-4 year movie cycle.