Mr. Max Rangel reports

SPIN MASTER REPORTS PRELIMINARY Q4 2023 AND 2023 REVENUE

Spin Master Corp. has released preliminary unaudited revenue and toy gross product sales for the three months and year ended Dec. 31, 2023. All financial information is presented in U.S. dollars and has been rounded to the nearest hundred thousand, except where indicated.

These preliminary unaudited revenue results for the fourth quarter and full year 2023 are intended to provide context for Spin Master's performance in line with timing of financial results for the broader industry. Spin Master is scheduled to report its financial results for the three months and year ended Dec. 31, 2023 after the close of business on February 28, 2024.

"We are very pleased with how our team navigated the challenging macroeconomic environment to deliver revenue growth in the 4th quarter," said Max Rangel, Global President & CEO. "We harnessed the strength of our three creative centres to meet our full-year revenue expectations. While our Toy revenue declined for the full year compared to 2022, our POS remained ahead of the industry2 and we grew market share globally, by introducing innovation into the toy aisle, engaging fans of popular franchises both licensed and owned, and growing our evergreen brands to create magical play experiences for-millions of children globally. We saw strong increases in Entertainment from the PAW Patrol movie and the delivery of the Unicorn Academy series, and we grew Digital Games revenue, highlighting the power of our diversified portfolio to drive long-term growth."

Preliminary Revenue Highlights for Q4 2023 as compared to the same period in 2022

Revenue was $502.6-million, up 7.9 per cent from $465.8-million, due to increases in Entertainment, Toy and Digital Games revenue of 76.9 per cent, 2.5 per cent and 7.1 per cent respectively. Constant Currency Revenue1 was $493.9-million, an increase of 6.0 per cent from $465.8-million.

Toy Revenue

The following table provides a summary of preliminary Toy revenue, by product category, for the three months ended Dec. 31, 2023 and 2022:

• Toy revenue increased by $10.1-million or 2.5 per cent to $406.8-million driven by an increase in Toy Gross Product Sales1 partially offset by an increase in Sales Allowances.
• Toy Gross Product Sales1 grew by $23.1-million or 4.8 per cent to $502.3-million from $479.2-million. Constant Currency Toy Gross Product Sales1 increased by $11.4-million or 2.4 per cent to $490.6-million from $479.2-million. The increase was driven by Wheels & Action and Preschool and Dolls & Interactive, partially offset by a decline in Outdoor.
• The growth in Toy revenue and Toy Gross Product Sales1 arose from higher order volumes.
• Toy Gross Product Sales1 in Preschool and Dolls & Interactive grew by $3-million or 1.5 per cent to $204.7-million from $201.7-million, primarily driven by Bitzee and Gabby's Dollhouse, partially offset by PAW Patrol and Purse Pets.
• Toy Gross Product Sales1 in Activities, Games & Puzzles and Plush was flat at $160.6-million, with increases in GUND and Kinetic Sand offset by declines in Orbeez and Pixobitz.
• Toy Gross Product Sales1 in Wheels & Action increased by $23.3-million or 25.9 per cent to $113.3-million from $90-million, from increases in Monster Jam and HEXBUG.
• Toy Gross Product Sales1 in Outdoor decreased by $3.2-million or 11.9 per cent to $23.7-million from $26.9-million primarily driven by SwimWays.
• Sales Allowances increased to $95.5-million from $82.5-million. Sales Allowances as a percentage of Toy Gross Product Sales1 were 19.0 per cent, compared to 17.2 per cent, primarily driven by higher markdowns and promotional activity, caused by pressure on consumer discretionary spending levels.

Entertainment Revenue

• Entertainment revenue was $55.2-million, an increase of $24-million or 76.9 per cent from higher distribution revenue associated with new content deliveries including Unicorn Academy, Rubble & Crew and Vida the Vet and from on-going distribution revenue from PAW Patrol: The Mighty Movie. Constant Currency Entertainment Revenue1 increased by $24.1-million or 77.2 per cent to $55.3-million, from $31.2-million.

Digital Games Revenue

• Digital Games revenue was $40.6-million, an increase of $2.7-million or 7.1 per cent from $37.9-million, due to higher in-game purchases in Toca Life World and higher subscription revenue from both the Piknik bundle and PAW Patrol Academy. Constant Currency Digital Games Revenue1 increased by $2.6-million or 6.9 per cent to $40.5-million, from $37.9-million.
• Preliminary Revenue Highlights for Year Ended Dec. 31, 2023, as compared to the same period in 2022
• Revenue was $1,904.9-million, a decrease of 5.7 per cent from $2,020.3-million driven by a decline in Toy revenue, partially offset by an increase in Entertainment and Digital Games revenue. Constant Currency Revenue1 was $1,889.6-million, a decrease of 6.5 per cent from $2,020.3-million. Revenue, excluding PAW Patrol: The Mighty Movie Distribution Revenue1 of $15.6-million, declined by 6.5 per cent to $1,889.3-million.

Preliminary Revenue

Highlights for Year Ended December 31, 2023, as compared to the same period in 2022 Revenue was $1,904.9-million, a decrease of 5.7 per cent from $2,020.3-million driven by a decline in Toy revenue, partially offset by an increase in Entertainment and Digital Games revenue. Constant Currency Revenue1 was $1,889.6-million, a decrease of 6.5 per cent from $2,020.3-million. Revenue, excluding PAW Patrol: The Mighty Movie Distribution Revenue1 of $15.6-million, declined by 6.5 per cent to $1,889.3-million.

Toy Revenue

The following table provides a summary of Spin Master's preliminary Toy revenue, including by product category, for the year ended Dec. 31, 2023 and 2022:

• Toy revenue declined by $196.7-million or 11.3 per cent to $1,540.9-million with declines across all product categories and an increase in Sales Allowances.
• Toy Gross Product Sales1 declined by $191.6-million or 9.7 per cent to $1,787.2-million from $1,978.8-million driven by declines across all product categories. Constant Currency Toy Gross Product Sales1 decreased by $215.7-million to $1,763.1-million from $1,978.8-million, a decline of 10.9 per cent.
• Toy Gross Product Sales1 in Preschool and Dolls & Interactive decreased by $49.3-million or 5.7 per cent to $817.7-million from $867-million, due to PAW Patrol, Purse Pets and Wizarding World, offset in part by Bitzee and Gabby's Dollhouse.
• Toy Gross Product Sales1 in Activities, Games & Puzzles and Plush decreased by $74.2-million or 13.2 per cent to $487.5-million from $561.7-million, mainly due to declines in the Games & Puzzles portfolio, Kinetic Sand, Cool Maker, Pixobitz and Orbeez, offset in part by Rubik's.
• Toy Gross Product Sales1 in Wheels & Action decreased by $41.5-million or 9.2 per cent to $409.3-million from $450.8-million, mainly due to DC and Bakugan, offset in part by an increase in Monster Jam and HEXBUG.
• Toy Gross Product Sales1 in Outdoor decreased by $26.6-million or 26.8 per cent to $72.7-million from $99.3-million primarily driven by SwimWays.
• Sales Allowances increased by $5.1-million to $246.3-million from $241.2-million. Sales Allowances as a percentage of Toy Gross Product Sales1 were 13.8 per cent compared to 12.2 per cent, primarily driven by higher markdowns and promotional activity in the fourth quarter, caused by pressures on consumer discretionary spending in the second half of 2023.

Entertainment Revenue

• Entertainment revenue increased by $71.3-million or 60.0 per cent to $190.1-million, from higher distribution revenue associated with new content deliveries including PAW Patrol: The Mighty Movie, Unicorn Academy, Rubble & Crew and Vida the Vet as well as the company's share of revenue from the PAW Patrol series and the continued distribution of PAW Patrol: The Movie. Constant Currency Entertainment Revenue1 increased by $71.3-million or 60.0 per cent to $190.1-million, from $118.8-million.

Digital Games Revenue

• Digital Games revenue increased by $10-million or 6.1 per cent to $173.9-million, from higher in-game purchases in Toca Life World . Constant Currency Digital Games Revenue1 increased by $12.7-million or 7.7 per cent to $176.6-million, from $163.9-million.

Outlook

Toy Gross Product Sales1, declined by 9.7 per cent for the year ended Dec. 31, 2023 compared to 2022, consistent with the high single digits guidance provided on November 1, 2023.

Revenue, excluding PAW Patrol: The Mighty Movie Distribution Revenue of $15.6-million, declined by 6.5 per cent for the year ended Dec. 31, 2023 compared to 2022, consistent with the mid-single digits guidance provided on November 1, 2023.

The company continues to expect 2023 Adjusted EBITDA Margin excluding PAW Patrol: The Mighty Movie Distribution Revenue of $15.6-million 1 to be up compared to 2022 Adjusted EBITDA Margin, consistent with the guidance provided on November 1, 2023.

This press release contains certain preliminary unaudited financial metrics for the three months and year ended Dec. 31, 2023. These financial metrics represent the most current information available to the company's management as financial closing procedures for the three months ended Dec. 31, 2023, and the year ended Dec. 31, 2023 are not yet complete. The company's actual consolidated financial statements for such periods may result in material changes to the financial metrics summarized in this press release (including by any one financial metric, or all of the financial metrics, being below or above the figures indicated) as a result of the completion of normal quarter and year end accounting procedures. Although the company believes the expectations reflected in this press release are based upon reasonable assumptions, the company can give no assurance that actual results will not differ materially from these expectations.

Conference call

Max Rangel, Global President and Chief Executive Officer and Mark Segal, Chief Financial Officer will host a conference call to discuss the audited financial results on Thursday, February 29, 2024 at 9:30 a.m. (ET).

The call-in numbers for participants are (416-764-8650 or 888-664-6383. A live webcast of the call will be accessible via Spin Master's website at: http://www.spinmaster.com/events.php . Following the call, both an audio recording and transcript of the call will be archived on the same website page for 12 months.

About Spin Master

Spin Master Corp. (TSX:TOY) is a leading global children's entertainment company, creating exceptional play experiences through its three creative centres: Toys, Entertainment and Digital Games. With distribution in over 100 countries, Spin Master is best known for award-winning brands PAW Patrol, Bakugan, Kinetic Sand, Air Hogs, Melissa & Doug, Hatchimals, Rubik's Cube and GUND, and is the global toy licensee for other popular properties. Spin Master Entertainment creates and produces compelling multiplatform content, through its in-house studio and partnerships with outside creators, including the preschool franchise PAW Patrol and numerous other original shows, short-form series and feature films. The company has an established presence in digital games, anchored by the Toca Boca and Sago Mini brands, offering open-ended and creative game and educational play in digital environments. Through Spin Master Ventures, the company makes minority investments globally in emerging companies and start-ups. With 31 offices spanning nearly 20 countries, Spin Master employs close to 3,000 team members globally.