SIMBA DICKIE GROUP announces its annual results

Balance sheet:stable sales trend despite the economic crisis / earnings situation improved through consolidation measures – Outlook: crucial investments in production sites and logistics centre / purchase of the renowned game publisher ZOCH   – Novelties: creative ideas from the French ideas factory / well-built model cars for RC fans and collectors/ high quality concepts for the specialist shop

Fürth- The SIMBA DICKIE GROUP achieved a consolidated total turnover of 500 million euros in 2009. Compared to the previous year (525 million euros), this signifies a fall of about 5%.

"Although one might presume it, this drop in turnover had nothing at all to do with the overall economic trend associated with the financial and economic crisis", according to CEO Manfred Duschl. "On the contrary, one can indeed state that, up to now, the economic crisis has not yet reached the toys sector or the SIMBA DICKIE GROUP." The reasons for the drop in turnover are, firstly, because of the conversion of sales revenue in foreign currency, especially that in US$, into euros. The euro was far stronger in 2009 than in 2008. The second reason is that, as part of consolidation measures within the SIMBA DICKIE GROUP, it was consciously decided to divest the group of weak contribution margin turnover or else cut this back.

International share of turnover
The international share of the SIMBA DICKIE GROUP turnover is by now over 70%. The most important export markets of the SIMBA DICKIE GROUP in 2009 were France, Spain, Italy, Belgium and England, whereby turnover declined in England because of the economic crisis and partly due to the extreme weakness of the British pound against the US$ and the euro.

The macroeconomic environment will remain difficult in 2010, or possibly become even more difficult. Against this background, the SIMBA DICKIE GROUP plans to further consolidate and stabilise in 2010, and to concentrate on its core business areas. The goal for 2010 is to maintain turnover at the 500 million euros level achieved in 2009.

Workforce
The SIMBA DICKIE GROUP had 1,650 employees worldwide at the end of 2009.

The previous year it was 1,700 employees. The slight change is mainly due to a loss of 125 employees from the sale of the joint-venture participation to Chinese company Simba Le-Root, and a gain of 75 employees from the purchase of Spanish tricycle and doll's pram manufacturer Picó. Apart from that, there were hardly any noticeable changes in the manpower levels of the domestic and foreign companies within the SIMBA DICKIE GROUP when compared to the previous year.

Including the workforce in the Chinese joint-venture factories, the SIMBA DICKIE GROUP now has about 3,500 employees.

At the end of 2009 the SIMBA DICKIE GROUP had 520 employees in Germanyand 130 employees in its two firms in Hong Kong. The remaining 400 employees work for the SIMBA DICKIE GROUP in subsidiaries abroad. As in the previous year, SMOBY TOYS has about 600 employees worldwide.

Earnings/Financial situation
The earnings and financial situation of the SIMBA DICKIE GROUP continues to be sound and healthy.

"By well-directed asset management in the areas of stock on hand and receivables, along with deliberate divestment of "unhealthy" turnover, the earnings situation has improved slightly by around 5% despite the decline in sales," according to Manfred Duschl.

Important investments and changes in 2009
In 2009 the SIMBA DICKIE GROUP made investments of approximately 20 million euros.

The most important investment steps and changes in 2009 were in detail:

Founding of a subsidiary in Indiavia the joint venture in the Middle East. The firm of Simba Toys India Ltd, with headquarters in Mumbai, started its activities at the end of 2009.

Founding of Simba Dickie Finland Oy in Finlandas a 100% subsidiary of Simba Toys GmbH & Co. KG, for sales-oriented support of the Finish market with all SIMBA DICKIE GROUP products, including Smoby.

Founding in autumn 2009 of Simba Smoby Toys UK Ltd. in Leeds, as a joint venture with the former commercial agent, and for decades UKmarket partner, of the SIMBA DICKIE GROUP. The existing Smoby subsidiary in Bristolwas wound up because all activities with all products of the SIMBA DICKIE GROUP, including Smoby, are to be controlled via the new joint-venture company. The UKmarket was hitherto already a strategically important market of the SIMBA DICKIE GROUP. Through a separate sales company locally it is now also possible to work this market more intensely.

Founding of SIMBA-DICKIE-Vertriebs GmbH with the goal of directly supplying and supporting the specialist retail trade in Germanywith all of the SIMBA DICKIE GROUP's products. The company started its activities in May of last year, initially with 6 sales representatives.

Purchase of the Spanish tricycle and doll's pram manufacturer in Alicante(Spain). The firm of Picó is another company from the former Smoby Organisation, with appealing products and a wealth of experience in the metal-working sphere.

Liquidation of the American subsidiary. It makes no economic sense to maintain a separate sales organisation there due to the forthcoming tighter safety regulations that will also affect toys in the USAfrom 2010 onwards. Moreover, there are the associated costs for testing, and the fact that more than 90% of turnover in the USAis done on a FOB basis direct from Hong Kong. For these reasons it was decided to wind up the firm of Simba Toys USA Ltd by 30. April 2010.

Investment in new machinery, tools and products in all businesses within the SIMBA DICKIE GROUP.

Planned investment and activities in 2010
For 2010 the SIMBA DICKIE GROUP has essentially planned the following investment and activities:                            

Expansion of the warehouse capacity by investment in a new warehouse providing an additional 6,750 m² total area in the logistics centre of the SIMBA DICKIE GROUP in Sonneberg/Thuringia. This is expected to create 15 new jobs in Germany.

Investment in a new production building with a total area of about 5,000 m² at the main production site of Smoby Toys in Arinthod as well as modernisation of the main administrative centre of Smoby Toys in Lavans (in France).

Investment in new die-casting technologies at the production sites of firms Smoby Toys and BIG of the order of more than 3 million euros.

Now that all of the German companies in the SIMBA DICKIE GROUP have been running the SAP software since 1st January 2009or 1st May 2009as the case may be, a start should be made from 2010 onwards to successively bring the foreign companies onto the network. SAP integration of the companies in Switzerland Austria and Polandis planned for 2010.

Purchase of the firm of ZOCH GmbH. This is a renowned German game publisher which has had the distinction of winning many game prizes over the past years. With headquarters in Munich, the firm of ZOCH GmbH is to be continued and developed further under the umbrella of the firm of NORIS-SPIELE. With this investment, the SIMBA DICKIE GROUP plans to further expand and accelerate the games sector.

Investment in new machinery and plant in all production facilities of the SIMBA DICKIE GROUP as well as investment in new product developments, company's own tools and in new products.

Investment of the order of approximately 30 million euros is planned for 2010. Roughly 10 million euros of this is to be invested in Germany.

Outlook: Trade fair highlights
Innovations of the SIMBA DICKIE GROUP at the 61st international trade fair for toys and games in Nuremberg.

At the opening of the international trade fair for toys and games in Nuremberg, the SIMBA DICKIE GROUP again presented a diverse range of attractive innovations. With its varied range of products, the firm from Fürth reached almost all target groups – from baby toys through to the model builder, and from the doll mummy through to the RC freak.

Creativity and outstanding design, with a great deal of attention to detail, is embodied in all new toys designed by the ideas artisans at SMOBY TOYS in France.

A fantastic loft kitchen for up-and-coming chefs has been created with a good deal of imagination for small and large children's rooms. The specialist in the role-playing category has thought of everything that both parents and children might want. Numerous realistic functions and detail-rich equipping of the compact and solid kitchen, featuring a glowing little gas flame and cakes that rise in the mould when baked, promise the next generation many hours of enjoyable play.

Little discoverers aged from 12 months up are comfortably underway on their outings in the stable three-wheeled Baby Balade Swing. And an attractive table soccer set brings pleasant anticipation of the World Cup in South Africa. After exciting soccer duels, the soccer table can be quickly and safely stowed away thanks to its fold-down design.

A cool new construction set for kids from four years upwards offers unlimited fun and games. Numerous parts of different play sets, all with the construction site as their theme, turn into cool vehicles. The key elements in this case are the red screws of the construction set. The constructions, which offer many exciting features, can be brought to life thanks to the accompanying cordless screwdriver.

Well-built cars are presented by brands DICKIE in the RC sphere, and SCHUCO for collectors of high quality miniature models. The fascination of the legendary Lamborghini or the gull-winged Mercedes-Benz SLS AMG sports car make motoring fans' hearts beat faster.

A unique RC experience is on offer with the finely-detailed models of the SCHUCOTRONIC 2.4 series on a scale of 1:18. SCHUCO goes to the starting grid at this year's toy and games trade fair with a "Police" VW beetle and the Mercedes -Benz Unimog 401 "Winter Road Clearance". Besides the working front headlights and rear tail-lights and indicators, the original engine sound and horn will delight collectors and RC fans alike.

ROOKIES by SCHUCO is the new premium die-cast vehicle range for playing and collecting, for youngsters aged 4 to 8. Stunning sports and racing cars from marques such as Audi, Porsche or Maserati on scales of 1:24down to 1:87 are offered. But they are more than just attractive vehicles. Each model is accompanied by a game- and collector's card that reveals real technical data. The theme is supported by information, online games and communities on the website at www.rookies-world.com.

DICKIE TOYSmakes for cool appearances with its RC car Bugglezz. With its unconventional design, the new RC extreme stunt buggy is a real eye-catcher, and to boot, is as agile as a viper. Little children's hands will have a lot of fun with DICKIE ACTION CARS. From fire engines to refuse collection trucks and ambulances – all of these topics so loved by kids are manifest in DICKIE TOYS' new range. Exciting extras such as an extendible fire engine ladder and a realistic working waste disposal allow lifelike situations to be imitated.

Amaze those around you – this is what yo-yo freaks can do with a bit of practice and the fantastic new YOTEC Triple Switch yo-yos from SIMBA TOYS. Three different settings - standard, free spin with auto-return or manual return, and flashlight for especially sensational appearances in the dark, make this classic toy a genuine highlight.

For little doll mummies aged 3 years and up, SIMBA TOYS offers new imaginative game sets with an 11cm high dress-up doll EVI. From Easter onwards, EVI's pets can really pamper themselves in the EVI animal spa and salon, and from Christmas onwards an animal clinic with a lot of beautifully appointed accessories will be available in the shops.

A high-quality wooden toy with a refined look, totally exclusive to specialist shops, is on offer in the "Eichhorn The Collection" line. Persuasive are 25 different, carefully chosen FSC-certified articles for small children by virtue of the high quality and well-thought-out play value. The ever-popular railway is given a new interpretation: by combining the separate themes of railway and marble run, an exciting and dynamic game world is born.

Irresistibly cuddly is the baby plush toy from NICOTOY. Equally delighted are children and adults alike when they first take hold of it. Pastel-coloured teddies, spring-like designs and amusing clowns create a colourful range of products that pamper babies with comfort blankets, musical boxes and pillows. And "Funky Long Legs" decorative animals, with their extra long arms and legs, are cuddled with delight by grown-ups too.

DICKIE-TAMIYAis proud of a highlight of a very special kind. Thirty years ago, the legendary TAMIYA Sand Scorcher on a scale of 1:10was dedicated to the Volkswagen Beetle. VW Bus coachbuilder and Tamiya fan, Walter Jelinek, turned the tables and built the model on a scale of 1:1 – the result is to be seen for the first time on the exhibition stand in Nuremberg. And a relaunching of the original TAMIYA Sand Scorcher as an anniversary model is now offered as an assembly kit.

CARSON-MODEL SPORTexhibits a fully functioning RC model of a Linde forklift truck. The forklift on a scale of 1:14is remotely controlled via a 6-channel 2.4 GHz console that can be hung from the driver's neck by a comfortable belt.

Fun and excitement for the whole family is offered by NORIS-SPIELE with its TRIOLOGIE party game. Luck, strategy and tactics – these are what count if one wants to win "the three Magi" game. A superbly illustrated game plan carries one off to magical worlds. The "blue amulet" and "fire salamander" also promise entertaining games pleasure in imaginative worlds.

SCHIPPERArts&Crafts puts a smile on the Mona Lisa's face. She is there for all to admire in a magnificent frame, safe behind toughened glass on the stand at the toy and games fair. Creative painting by numbers artists can delight in the famous motif. The perfect execution of the paint contours, as well as the true-to-the-original colour mixing, are in keeping with the well-known and highly regarded quality of all SCHIPPER products.

Adventurers who go treasure hunting with TOBAGOhave to negotiate dense jungle, craggy heights and wild waters. The exciting new board game from ZOCH offers a further novelty as well. By virtue of the game plan, no game is the same as another. Because three game plan segments and three plugs can be assembled with their front and rear sides in different ways, the result is 32 different island scenarios.

In January 2010 the 17 millionth BIG-BOBBY-CAR came off the production line. Reason enough for BIG to offer a special edition for the winner's podium. With the BIG-BOBBY-CAR in dynamic racing look and a matching helmet, both young and old racing drivers will be a sensation on the circuits from September onwards.

No need to panic any more if the lighting is poor – soon there will be light for the BIG-BOBBY-CAR too. A new light module with state-of-the-art LED technology provides high illumination while at the same time consuming very little power. The BIG-BOBBY-CAR is assembled in no time at all. To safeguard children's eyes, the LED light is conformant to laser protection class 1, making it suitable even for kids under 3 years old to play with free from any worries.

The new BIG-BIKE scootabike for children aged 1½ years and up is dynamic, ergonomically perfect in design, and ox-strong as regards quality and safety. Excellent cornering ability is the BIG-BIKE's outstanding feature, with the young rider's sense of balance being trained entirely playfully.

Ideal for playing in the sand or else in the nursery is the new BIG-POWER-LINE for all little builders and up-and-coming farmers of 2 years and up. Digging and building are so much fun because the robust vehicles fitted with soft tyres are so easy for children's hands to take hold of. Large loading capacity and multiply mobile scoops and dumpers that open automatically when unloading are just some of the many functions that guarantee enjoyable play.