Mattel 2006 Annual Report Download - page 6

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One of the areas I am most proud of is Mattel’s ability to create opportunities in the communities in which
we live, work and play. This year is particularly exciting, as we mark the 10-year milestone of Mattel’s Global
Manufacturing Principles, the cornerstone of our ongoing commitment to responsible manufacturing practices
around the world. In commemoration of this historical achievement for Mattel, and the toy industry at large,
Mattel recently released its 2007 Global Citizenship Report, the company’s second such report, which is
available on www.mattel.com. Mattel remains the only company in the toy industry to produce such a report,
as well as the only toy company (and one of the few consumer goods companies) to publicly disclose third-party
audit results of its factories. Of note, Mattel was named one of the top 100 Best Corporate Citizens by
CRO Magazine.
I am immensely proud that, during the past 10 years, Mattel’s efforts have had an enormous and positive
impact on how the toy industry views and addresses ethical manufacturing practices, and we continue to bring
transparency to the process.
Mattel relaunched its philanthropy programs in 2005 to focus globally on a vision of making a meaningful
difference, one child at a time. In 2006, we stayed true to that vision through grant-making activities by the
Mattel Children’s Foundation in 37 countries, employee volunteer programs and Mattel’s donation of almost
1.2 million toys worth approximately $11 million to children in need around the world.
This letter began by addressing opportunities at the broadest level – the worldwide
toy business. I’d like to fi nish with comments for one of our most specifi c and
important audiences, you, the investor. Since we began refocusing the company
in May 2000, Mattel’s Total Shareholder Return has averaged 13 percent
compounded annually.
* Our dividend last year was raised to $0.65 per share,
30 percent above the 2005 payout. At the end of 2006, our dividend yield was
almost 3 percent, which compares favorably to many alternative investments.
The most important statistic from 2006, however, is that we generated terrifi c cash fl ow from operations at
$876 million. This business generates attractive levels of cash, which your Board of Directors has strategically
used to invest in the growth of the business, acquire Radica,
® repurchase shares (15 percent of shares
outstanding since the program’s inception three and a half years ago), reduce debt and raise the dividend.
WE’VE MADE
A MEANINGFUL
DIFFERENCE,
ONE CHILD
AT A TIME
OPPORTUNITY TO DEVELOP
* Stock price appreciation and reinvestment of dividends, as measured from 5-16-2000 through 12-31-2006.
GET FUNKY!
RADICA® U. B. FUNKEYS™
NICKI™
GIRL OF THE
YEAR 2007!
AMERICAN GIRL®