Mattel 2012 Annual Report Download - page 8

In addition to delivering strong
overall fi nancial performance, we
also made important investments in
the Company’s future. For example,
we acquired HIT Entertainment,
opened three new American Girl
stores, established a subsidiary in
Russia and expanded our digital
capabilities to help our brands
engage with consumers. We also
made investments in our infrastruc-
ture, including improvements in
and expansion of our manufacturing
and IT capabilities to improve
productivity and enable growth.
Looking to the future, I am optimistic
about our plans for 2013. We remain
bullish on the toy industry and
continue to see growth opportunities.
I believe we have laid a great
foundation to grow our business
in an industry that has signifi cant
room to expand globally.
We plan to grow our brands long term,
whether core, franchise or our
partner brands, in the U.S. and even
faster outside of the U.S. We have
yet to realize the full potential of the
Fisher-Price brand around the globe.
Our Girls portfolio, which we believe
is the most competitive and attrac-
tive in the toy industry, has great
momentum. We’re excited about
the global potential of our second
new franchise, Max Steel®, and
we will launch its toy line this Fall.
We also are excited by the many
more creative franchises to come.
Today, our International business
is about half of our sales and we
believe it has the potential to grow
to 60%. HIT Entertainment gives us
not only the classic brand Thomas,
but also the opportunity to leverage
strong heritage brands like Bob the
Builder® and Fireman Sam®, and
the opportunity to introduce new
properties like Mike the Knight®
around the world. New digital
platforms should help us to deepen
consumer engagement with our
brands globally. The potential for our
new leaders to drive our business to
even higher levels is energizing.
Maybe what excites me most as I
look to the future is that I strongly
believe we have the best people in
the toy business. Yes, I know I may
not be impartial here, but our ability
to attract and retain the best talent
in the industry is a great asset
for Mattel. I am happy to say that,
for the sixth year in a row, Mattel
was ranked among FORTUNE
Magazine’s “100 Best Companies
to Work For.” Also, in 2012,
we launched our fourth Global
Citizenship Report, “We Believe
Play Matters,” which highlights
Mattel’s commitment to operating
as a responsible member of the
global business community.
Underscoring our efforts, Mattel
was recently listed among the
“World’s Most Ethical Companies”
for 2013 by Ethisphere Magazine.
Mattel employees around the world
contribute daily to these efforts,
embodying the company values to
Play with Passion, Play Together,
Play to Grow and Play Fair.
To wrap things up, I want to take
a moment to recognize and thank
Bob Eckert for his 11 years of
service to Mattel as its CEO and
his 12 years as Chairman. The
transition between Bob and me has
been very smooth, thanks to Bob’s
leadership and support. He will be
missed and we wish him well.
We also transitioned leadership
on the Board of Directors with the
retirement of Tully Friedman. Tully
was an outstanding member of the
Board of Directors for 28 years
and served as independent Lead
Director for almost fi ve years. With
Tully’s retirement, Chris Sinclair, a
member of the Board of Directors
for 15 years, has been elected by
the Board to serve as its indepen-
dent Lead Director. Craig Sullivan
also left the Board of Directors last
May and I want to thank him for his
contributions to Mattel.
Visit us online at
corporate.mattel.com
to fi nd out more about
our global initiatives.