The LEGO Group

ABOUT THE LEGO GROUP

Based on the world-famous LEGO® brick and the philosophy of Learning-throughPlay, the LEGO Group provides unique play experiences for children of all ages.

LEGO bricks are part of the LEGO System in Play, which essentially means that the bricks can easily be combined in innumerable ways – and just as easily be dismantled. The combination of a structured system, logic and endless possibilities encourages the child to unlimited creativity.

Through creative play, the LEGO Group aims to inspire and develop the builders of tomorrow and nurture the skills to help future generations thrive and develop – skills such as creativity, problem solving, self-awareness and empathy – all necessary for children to build the world of tomorrow.

The LEGO Group was founded by the Kirk Kristiansen family in 1932 and has ever since then been headquartered in Billund, Denmark. Production facilities are located in Denmark, the Czech Republic, Hungary, China and Mexico, and the company has main offices in Enfield, USA, London, UK, Shanghai, China, and Singapore.

The LEGO Group is owned 75% by KIRKBI A/S, and the remaining 25% is owned by the LEGO Foundation through Koldingvej 2, Billund A/S.

HIGHLIGHTS FOR 2018

In 2018, the LEGO Group celebrated the 60th anniversary of the LEGO brick. While physical play remains the core for the LEGO Group, the company will continue to invest in innovative, fun and safe ways to integrate the brick with possibilities of digital play. The company also introduced the first elements made from plant-based plastics and pledged to use 100 percent sustainable packaging by 2025.

2018 was also a defining year for the toy industry. Disruption in retail channels and increasing digitalisation reshaped the landscape.

The LEGO Group stabilised its business during 2018 and increased revenue by 4% to DKK 36.4 billion. Excluding the impact of foreign currency exchange, revenue for the full year increased 7% compared with 2017.

All established market groups delivered single-digit revenue growth in 2018, while China achieved double-digit revenue growth.

The LEGO Group’s profit before tax amounted to DKK 10.5 billion in 2018 against DKK 10.2 billion the year before, an increase of 3%.

Cash flow for the year continues to remain strong, delivering an operating cash flow of DKK 9.8 billion against DKK 10.7 billion in 2017. Investments of DKK 1.5 billion were made in expanding the LEGO Group’s production facilities to meet future demand for LEGO products. In 2019, the LEGO Group expects that revenue will grow low single-digits.

CEO

Niels B. Christiansen, President and Chief Executive Officer

EXECUTIVE LEADERSHIP TEAM

Niels B. Christiansen, President and Chief Executive Officer Marjorie Lao, Chief Finanical Officer Julia Goldin, Chief Marketing Officer Loren I. Shuster, Chief People Officer Carsten Rasmussen, Chief Operations Officer Ulrik Gernow, Chief Business Transformation Officer Claus Flyger Pejstrup, Senior Vice President Skip Kodak, Senior Vice President Victor Saeijs, Senior Vice President

BOARD OF DIRECTORS

Jørgen Vig Knudstorp, Executive Chairman Thomas Kirk Kristiansen, Deputy Chairman Eva Berneke Kjeld Kirk Kristiansen Jan Thorsgaard Nielsen Kåre Schultz Søren Thorup Sørensen

Photo: The LEGO Group

LEGO® plants from plants. In 2018, the LEGO Group introduced the first elements made from plant-based plastics and pledged to use 100% sustainable packaging by 2025.

5 YEARS’ PERFORMANCE

(m DKK)

40,000

30,000

20,000

10,000

0 2014 2015 2016 2017 2018

Revenue Operating profit (EBIT)

FINANCIAL HIGHLIGHTS

(m DKK)

2018 2017

Revenue Operating profit Profit for the year 36,391 34,995 10,774 10,359 8,076 7,806

Equity 21,753 20,714

Cash flow from operating activities

9,847 10,691 Investments (1,502) (1,529) Average number of employees (FTE) 15,050 16,480