A lot of people already done their Christmas shopping a lot of people are trying to frame out. I think it's a said it started a
month ago. Yeah yeah I know. We've got some of it down. We're almost there. But the real question is are they going to be
shortages. Are they going to be issues that you can't get what you want. You know Price is the CEO of Mattel the toy giant of
course known for Barbie Fisher-Price Hot Wheels even some of the names. It's also in the movie business now. Thank you very much
indeed for your time today. The question that I suspect everybody is asking you at the moment and I'm going to ask it as
well is are people going to get what they want for Christmas this year. Is it all going to arrive on time and be there under
the Christmas tree. Well we're seeing stronger demand for our product. We are ready
for a strong Christmas holiday. We have appropriate promotional plans in place. We're seeing a lot of activity. And we are ready
with our inventory and logistics to put a lot of toys under the trees and have a happy holiday season. So you said that you do
have enough inventory. How have you been navigating the supply chain crisis. Are you big enough that you can pull some levers
to make sure that your inventory stays on the shelf. Global commercial organization and the commercial commercial
operation did a very good job anticipating the short supply and the logistical challenges that we face. And we factor that into
our planning with very specific actions that would put in place. We accelerated procurement of raw material with expedited
production. We've contracted capacity in shipping lanes in advance. We secured rates that allowed us to put
plans in motion. And with that we made a lot of progress in progress in advancing our where our supply and put product from
shelves. Are there any bottlenecks that you're worried about.
It's not that we are not impacted. And of course there are challenges in the marketplace. But with our scale our flexible
model and all the work that we've done over the last three years to create a very productive very efficient supply chain system
we're able to work through the disruption collaborate with our retail partners and put products on the shelf and be ready for a
happy holiday season. How much of those disruptions though have cost you. Are they impacting your margins. Are you passing costs
to the consumer. Yeah it did impact our margin. We're also seeing inflation. We
are. We raised prices in the third quarter and we also taking a cost saving actions to be able to mitigate for the for
inflation. And we expect that over time we'll be able to mitigate the impact of cost inflation. How much did you raise
those prices. It varies by product and by region. But when we raise prices we
always take consumer in mind and then and find the balance between quantity safety and value for consumers.
And how long do you think this is going to last for. Is this something we're going to still be dealing with midway
through next year. It is hard to tell. We entered the fourth quarter with a lot of momentum. We expect that momentum to
continue into next year. We just raised guidance for the third time this year from a third. We expect 15 percent growth year
for the full year and we expect to continue growing for for next year. And the one after.
We also expect our profitability to continue to improve and exceed a billion thought our EBITDA in 2022. So we are seeing
growth. We are seeing momentum. And we are ready to manage and work through supply chain disruptions. Go global for us if you
will. I know within the US there is a lot of concern about consumer demand once the extra stimulus and the government
checks had expired. Are you seeing that in the U.S. and how does that compare to the demand that you see on a more regional basis
globally. There are the toy industry is a growth industry. It's having a lot of momentum. It grew 17 percent year to date.
And when you think about it the toy industry as a whole is a category. What parents will always prioritize especially in
winter when it comes to quantity product and trusted brands. And we are seeing the toy industry being resilient especially in
challenging economic times. And we expect demand to continue. And within that environment at
Mattel we are looking to continue to accelerate our growth and continue to grow our market share with with strong demand or
across multiple categories. You don't think you are going to see a change in the patterns of
demand from children from parents once kids start getting vaccinated.
We don't see that the physical play is here to stay. Toys are in demand. The items are not expensive. And this is something that
parents do prioritize. And we are seeing the man across all categories pretty much and that is expected to continue. The toy
industry is also forecasted to continue to grow for the next five years according to you and monitor at five point four
percent KAGA for the next five years. And this was expected before the pandemic we saw during the pandemic. And we expect
the toy industry to continue growing after different. Derek talked to us about the partnerships that you have with Disney.
Some of the films MGM working with them to create toys to go along with some of those movies as well. How much do you see
that as a way to enhance the current business or maybe provide some supplemental income as well. When we went out with with
leading leading franchises that we don't own. We just announced a partnership with Disney for light here.
This is the origin story of Buzz Lightyear. And it's expected to be a big release a big movie for Disney. And likewise we also
continue to to find value in commercializing our own catalog. We own one of the strongest offering of children and family
entertainment franchises in the world. And the opportunity that we see is to extend our toy business beyond the toy aisle into a
highly accretive business verticals. Think film television life events consumer products and
merchandise online games music all big categories that are driven by big franchises. And this is where our scale and
quality product come into play. We've announced 13 movies that are in development right now. We released eight new series
television series already this year and have many more in production and expect to continue to find ways to engage
consumers on multiple levels. In addition to what we're doing the toy side.