LeapFrog 2012 Annual Report Download - page 5

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In summary, LeapFrog’s success in 2012 was driven by several factors:
• We built upon the progress of the last few years as the company better focused its development
efforts, improved its supply chain and reduced its cost structure.
• With our deep 18-year heritage, we continued developing life-changing, market-leading
learning solutions.
• We expanded our reach in children’s educational entertainment with the launch of the next
generations of our leading learning tablet and handheld gaming system lines, new learning toys and
significantly more content.
• We had a far greater focus on content including significantly more titles, new digital app content and
distribution partnerships with all the best kids’ entertainment companies.
• We continued to add to our base of millions of connected consumers in our ecosystem that we can
directly communicate with in a personalized manner.
• We increased our initiatives to localize our content and offer more platforms in international markets.
• And, we continued to improve our business processes and business execution.
2013 and Beyond
As we look to 2013 and beyond, we are very excited about our many opportunities. We have market-leading
products and exciting new product launches in 2013, including a new learn-to-read and write system, new
iPhone and iPad app activity products, new LeapPad tablets and hundreds of new content titles. In 2013, we
will make significant investments in content, online communities, systems and new platforms. We will seek
to capitalize on international opportunities to support our global growth, and build richer relationships with
families, teachers and caregivers. These investments will enable us to continue our market leadership and
further build a solid foundation for growth.
LeapFrog’s advantage is that educational entertainment is our total focus, and we have 18 years of experience
developing life-changing learning solutions. Our heritage boasts a massive connected consumer base, an
incredible brand, proprietary curricula, life-changing learning solutions, a growing base of content partners,
and the best team in the industry.
I would like to recognize all of the talented and passionate employees of LeapFrog who are dedicated every
day to making a real difference in the lives of children. I would also like to thank you, our shareholders, for
your continued support of LeapFrog and our mission to help children achieve their potential.
Sincerely,
William B. Chiasson
Chairman
April 24, 2013
1 Source: GSV Advisors and Candlestick Research, 2012.
2
U.S. Source: #1 Kids’ Learning Tablet based on The NPD Group/Retail Tracking Service; Preschool Electronic Learning, Kids Learning Tablet brands as
defined by LeapFrog in dollars, annual 2012.
3
U.S. Source: #1 Learning Game System based on The NPD Group/Retail Tracking Service; Preschool Electronic Learning, Educational Gaming System
brands as defined by adding LeapsterGS Explorer and Leapster Explorer dollars, annual 2012.
4U.S. Source: #1 Learn-to-Read System based on The NPD Group/Retail Tracking Service; Preschool Electronic Learning, Learn-to-Read brands as defined
by LeapFrog in dollars, annual 2012.
5 U.S. Source: #1 Preschool Electronic Learning Toy based on The NPD Group/Retail Tracking Service as defined in dollars, annual 2012.
6 Based on brand tracking surveys in 2012 conducted by LeapFrog.
7
U.S. Source: LeapFrog Explorer Licensed and Non-Licensed Software Assortment was the #1 Toy in the U.S. based on The NPD Group/Retail Tracking
Service as defined in dollars, annual 2012.
8
U.K. Source: #1 Toy in the U.K. based on The NPD Group/Retail Tracking Service as defined in British pounds, annual 2012.
LeapFrog Annual Report 2012