Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and the war in Ukraine.
• High inflation rates impacting consumer purchasing power.
• Changes in distribution channels and shifts between toy segments.
• Increased competition in the doll market.
• Decreasing number of major customers and distributors due to changes in the retail landscape.

Mitigation Strategies

• Restructuring measures (personnel reduction, working capital reduction).
• Strategic cooperation with MGA Entertainment.
• Focus on established brands and high-quality products.
• Cooperation with suppliers committed to ICTI Code of Conduct.
• New marketing initiatives (YouTube series).
• New collaborations and partnerships (German discounters).

Supply Chain Management

Responsible Procurement

• Cooperation with suppliers committed to ICTI Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: A&M GmbH Wirtschaftsprüfungsgesellschaft

Environmental Metrics

Environmental Challenges

• Reduced sales due to changed consumer behavior, Ukraine war, inflation, and increased costs.
• High inflation impacting purchasing power.
• Intensifying competition and changing market and distribution structures.
• Concentrations in customer structure and resulting market power of individual customers.
• Risks in the procurement area due to global supply chain disruptions.
• Cybersecurity risks.

Mitigation Strategies

• Cost control measures.
• Stable procurement partnerships and high quality reliability.
• Technically and qualitatively sophisticated new developments to remain innovative and price-competitive.
• Market observation and development of innovative products.
• Working exclusively with manufacturers committed to the ICTI Code of Conduct.
• Intensive work on further expanding existing structures to efficiently and securely design operational processes in the future.
• Using natural hedging of currency risks and, where possible and economically viable, foreign exchange forward transactions.

Supply Chain Management

Supplier Audits: All suppliers were ICTI certified at the end of 2022.

Responsible Procurement

• Long-term and partnership-based cooperation with suppliers.
• Ensuring appropriate working hours and social standards.
• Compliance with the ICTI Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, HGB, AktG

Certifications: ICTI

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft