MATTEL REPORTS SECOND QUARTER

2023 FINANCIAL RESULTS

Second Quarter 2023 Highlights Versus Prior Year

 Net Sales of $1,087 million, down 12% as reported, or 13% in constant currency
 Gross Margin of 45.1%, an increase of 70 basis points; Adjusted Gross Margin of 44.9%, flat
to the prior year
 Operating Income of $63 million, a decrease of $62 million; Adjusted Operating Income of
$75 million, a decrease of $47 million
 Net Income of $27 million compared to prior year Net Income of $66 million
 Earnings per Share of $0.08 compared to prior year Earnings per Share of $0.18; Adjusted
Earnings per Share of $0.10 compared to prior year Adjusted Earnings per Share of $0.18
 Adjusted EBITDA of $148 million, a decrease of $37 million
 Repurchased $16 million of shares, bringing first half total to $50 million
 Company reiterates 2023 guidance

EL SEGUNDO, Calif., Jul. 26, 2023 – Mattel, Inc. (NASDAQ: MAT) today reported second
quarter 2023 financial results.

Ynon Kreiz, Chairman and CEO of Mattel, said: “Mattel’s second quarter financial results were
in-line with our expectations. We significantly increased free cash flow and continued to gain
market share. Importantly, this moment will be remembered as a key milestone in our
company’s history with the release of the Barbie movie, our first ever major theatrical film.”

Mr. Kreiz continued: “The Barbie movie is a showcase for the cultural resonance of our IP, our
ability to attract and collaborate with top creative talent, and the capabilities of our franchise
management organization. This also speaks to the potential of Mattel Films and the significant
progress of our strategy to capture the full value of our IP.”

Anthony DiSilvestro, CFO of Mattel, added: “While comparisons improved from the first quarter,
our second quarter financial results were negatively impacted as retailers continued to manage
inventory levels and by some overall industry softness. At this point, we believe the retail
inventory correction is mostly behind us, and we look forward to meeting consumer demand for
our product, as we enter the second half of the year and all-important holiday season. Given our
year-to-date performance and outlook for the balance of the year, we are reiterating our
guidance.”

Financial Overview

For the second quarter, Net Sales were down 12% as reported, or 13% in constant currency,
versus the prior year’s second quarter. Reported Operating Income was $63 million, a decrease
of $62 million, and Adjusted Operating Income was $75 million, a decrease of $47 million.
Reported Earnings Per Share were $0.08, compared to prior year Reported Earnings Per Share
of $0.18, and Adjusted Earnings Per Share were $0.10, compared to prior year Adjusted
Earnings Per Share of $0.18.

For the first six months of the year, Net Sales declined 16% as reported, and 17% in constant
currency, versus the prior year’s first six months. Reported Operating Loss was $52 million, a
decline of $257 million, and Adjusted Operating Loss was $12 million, a decrease of $224
million. Reported Loss Per Share was $0.22, a decline of $0.46, and Adjusted Loss Per Share
was $0.14, a decline of $0.40.

Net Sales in the North America segment decreased 18% as reported and in constant currency,
versus the prior year’s second quarter.

Gross Billings in the North America segment decreased 18% as reported and in constant
currency, due to declines in Action Figures, Building Sets, Games, and Other (primarily Action
Figures), Infant, Toddler, and Preschool (including Fisher-Price®), and Vehicles (including Hot
Wheels®), partially offset by growth in Dolls.

Net Sales in the International segment decreased 3% as reported, or 5% in constant currency.

Gross Billings in the International segment decreased 1% as reported, or 3% in constant

currency, due to declines in Action Figures, Building Sets, Games, and Other (primarily Action
Figures), and Infant, Toddler, and Preschool (including Fisher-Price), partially offset by growth in
Vehicles (including Hot Wheels) and Dolls.

Net Sales in the American Girl® segment decreased 16% as reported and in constant currency.
Gross Billings in the American Girl segment decreased 15% as reported and in constant
currency.

Reported Gross Margin increased to 45.1%, versus 44.4% in the prior year’s second quarter,
and Adjusted Gross Margin of 44.9% was flat versus the prior year. The increase in Reported
Gross Margin was primarily driven by pricing, savings from the Optimizing for Growth program,
foreign exchange favorability and lower severance and restructuring expenses, partially offset
by cost inflation, unfavorable fixed cost absorption, inventory management efforts, including
higher close-out sales and obsolescence, and mix and other factors.

Reported Other Selling and Administrative Expenses increased $3 million, to $337 million,
primarily due to the gain on a sale of assets recognized in the second quarter of 2022, market-
related pay increases, and higher severance and restructuring expenses, partially offset by cost
management efforts and savings from the Optimizing for Growth program. Adjusted Other
Selling and Administrative Expenses decreased $19 million, to $324 million, primarily driven by
cost management efforts and savings from the Optimizing for Growth program, partially offset
by market-related pay increases.

For the six months ended June 30, 2023, Cash Flows Used for Operating Activities were $326
million, an improvement of $99 million, versus the prior year’s first six months, primarily due to
lower working capital usage, partially offset by changes in net earnings, excluding the impact of
non-cash items. Cash Flows Used for Investing Activities were $62 million, an increase of $8
million, primarily due to lower proceeds from the sale of assets, partially offset by higher net
proceeds from foreign currency forward contracts in the first half of 2023. Cash Flows Used for
Financing Activities and Other were $74 million, as compared to cash inflows of $22 million in
the prior year’s first six months, primarily due to share repurchases and lower proceeds from the
exercise of stock options.

Gross Billings by Categories

For the second quarter, worldwide Gross Billings for Dolls were $441 million, up 10% as
reported, or 9% in constant currency, versus the prior year, primarily driven by Disney Princess
and Disney Frozen, and Monster High, partially offset by a decline in Barbie.

Worldwide Gross Billings for Infant, Toddler, and Preschool were $197 million, down 28% as
reported, or 29% in constant currency, primarily due to declines in Fisher-Price.

Worldwide Gross Billings for Vehicles were $364 million, up 11% as reported, or 10% in
constant currency, primarily driven by growth in Hot Wheels.

Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $226
million, down 39% as reported, or 40% in constant currency, primarily due to declines in Action
Figures (primarily related to 2022 theatrical releases) and Other.

2023 Guidance

Mattel’s full year 2023 guidance remains:

(in m illions,
except EPS and percentages) FY2023 Guidance FY2022
Comparable
Net Sales $5,435
(Constant Currency)
Adjusted Gross Margin ~ 47% 45.9%
Adjusted EPS $1.10 - $1.20 $1.25
Adjusted EBITDA $900 - $950 $968
Adjusted Tax Rate 25 - 26% 24%
Capital Expenditures $175 - $200 $187
Free Cash Flow > $400 $256

A reconciliation of Mattel’s non-GAAP financial measures on a forward-looking basis, including

Net Sales on a constant currency basis, Adjusted Gross Margin, Adjusted EBITDA, Adjusted
EPS, and Adjusted Tax Rate is not available without unreasonable effort. Mattel is unable to
predict with sufficient certainty items that would be excluded from the corresponding GAAP
measures, including the effect of foreign currency exchange rate fluctuations, unusual gains and
losses or charges, and severance and restructuring charges, due to the unpredictable nature of
such items, which may have a significant impact on Mattel’s GAAP measures.

The company is operating in a challenging macro-economic environment with higher volatility,

including inflation, that may impact consumer demand. Mattel’s guidance takes into account
what the company is aware of today but remains subject to further volatility and any unexpected
disruption, including fluctuations in foreign exchange rates, inflation, changes in global
economic conditions and consumer demand, labor market fluctuations, and other macro-
economic risks and uncertainties.

Conference Call and Live Webcast

At 5:00 p.m. (Eastern Standard Time) today, Mattel will host a conference call with investors
and financial analysts to discuss its second quarter financial results. The conference call will be
webcast on Mattel's Investor Relations website, https://investors.mattel.com. To listen to the live
call, log on to the website at least 10 minutes early to register, download, and install any
necessary audio software. An archive of the webcast will be available on Mattel's Investor
Relations website for 12 months and may be accessed beginning approximately three hours
after the completion of the live call.

Cautionary Note Regarding Forward-Looking Statements

Mattel cautions the reader that this press release contains a number of forward-looking
statements, which are statements that relate to the future and are, by their nature, uncertain.
Forward-looking statements can be identified by the fact that they do not relate strictly to
historical or current facts and include statements regarding Mattel’s guidance and goals for
future periods and other future events. The use of words such as “anticipates,” “expects,”
“intends,” “plans,” “projects,” “look forward,” “confident that,” “believes,” and “targeted,” among
others, generally identify forward-looking statements. These forward-looking statements are
based on currently available operating, financial, economic, and other information and
assumptions, and are subject to a number of significant risks and uncertainties. A variety of
factors, many of which are beyond Mattel’s control, could cause actual future results to differ
materially from those projected in the forward-looking statements. Specific factors that might
cause such a difference include, but are not limited to: (i) Mattel’s ability to design, develop,
produce, manufacture, source, ship, and distribute products on a timely and cost-effective basis;
(ii) sufficient interest in and demand for the products and entertainment Mattel offers by retail
customers and consumers to profitably recover Mattel’s costs; (iii) downturns in economic
conditions affecting Mattel’s markets which can negatively impact retail customers and
consumers, and which can result in lower employment levels and lower consumer disposable
income and spending, including lower spending on purchases of Mattel’s products; (iv) other
factors which can lower discretionary consumer spending, such as higher costs for fuel and
food, drops in the value of homes or other consumer assets, and high levels of consumer debt;
(v) potential difficulties or delays Mattel may experience in implementing cost savings and
efficiency enhancing initiatives; (vi) other economic and public health conditions or regulatory
changes in the markets in which Mattel and its customers and suppliers operate, which could
create delays or increase Mattel’s costs, such as higher commodity prices, labor costs or
transportation costs, or outbreaks of disease; (vii) the effect of inflation on Mattel’s business,
including cost inflation in supply chain inputs and increased labor costs, as well as pricing
actions taken in an effort to mitigate the effects of inflation; (viii) currency fluctuations, including
movements in foreign exchange rates, which can lower Mattel’s net revenues and earnings, and
significantly impact Mattel’s costs; (ix) the concentration of Mattel’s customers, potentially
increasing the negative impact to Mattel of difficulties experienced by any of Mattel’s customers,
such as bankruptcies or liquidations or a general lack of success, or changes in their purchasing
or selling patterns; (x) the inventory policies of Mattel’s retail customers, as well as the
concentration of Mattel’s revenues in the second half of the year, which coupled with reliance by
retailers on quick response inventory management techniques, increases the risk of
underproduction, overproduction , and shipping delays; (xi) legal, reputational, and financial
risks related to security breaches or cyberattacks; (xii) work disruptions, including as a result of
supply chain disruption such as plant or port closures, which may impact Mattel’s ability to
manufacture or deliver product in a timely and cost-effective manner; (xiii) the impact of
competition on revenues, margins, and other aspects of Mattel’s business, including the ability
to offer products that consumers choose to buy instead of competitive products, the ability to
secure, maintain, and renew popular licenses from licensors of entertainment properties, and
the ability to attract and retain talented employees and adapt to evolving workplace models;
(xiv) the risk of product recalls or product liability suits and costs associated with product safety
regulations; (xv) changes in laws or regulations in the United States and/or in other major
markets, such as China, in which Mattel operates, including, without limitation, with respect to
taxes, tariffs, trade policies, or product safety, which may increase Mattel’s product costs and
other costs of doing business, and reduce Mattel’s earnings and liquidity; (xvi) business
disruptions or other unforeseen impacts due to economic instability, political instability, civil
unrest, armed hostilities (including the impact of the war in Ukraine), natural and manmade
disasters, pandemics or other public health crises, such as the COVID-19 pandemic, or other
catastrophic events; (xvii) failure to realize the planned benefits from any investments or
acquisitions made by Mattel; (xviii) the impact of other market conditions or third party actions or
approvals, including those that result in any significant failure, inadequacy, or interruption from
vendors or outsourcers, which could reduce demand for Mattel’s products, delay or increase
the cost of implementation of Mattel’s programs, or alter Mattel’s actions and reduce actual
results; (xix) changes in financing markets or the inability of Mattel to obtain financing on
attractive terms; (xx) the impact of litigation, arbitration, or regulatory decisions or settlement
actions; (xxi) Mattel’s ability to navigate regulatory frameworks in connection with new areas of
investment, product development, or other business activities, such as non-fungible tokens and
cryptocurrency; and (xxii) other risks and uncertainties as may be described in Mattel’s filings
with the Securities and Exchange Commission, including the “Risk Factors” section of Mattel’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and subsequent
periodic filings, as well as in Mattel’s other public statements. Mattel does not update forward-
looking statements and expressly disclaims any obligation to do so, except as required by law.

Presentation Information / Non-GAAP Financial Measures

The financial results included herein represent the most current information available to
management and are preliminary until Mattel’s Form 10-Q is filed with the SEC. Actual results
may differ from these preliminary results.

To supplement our financial results presented in accordance with generally accepted

accounting principles in the United States (“GAAP”), Mattel presents certain non-GAAP financial
measures within the meaning of Regulation G promulgated by the Securities and Exchange
Commission. The non-GAAP financial measures that Mattel uses in this earnings release
includes Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Other Selling and
Administrative Expenses, Adjusted Operating Income (Loss), Adjusted Operating Income (Loss)
Margin, Adjusted Earnings Per Share, earnings before interest expense, taxes, depreciation and
amortization (“EBITDA”), Adjusted EBITDA, Free Cash Flow, Free Cash Flow Conversion (Free
Cash Flow / Adjusted EBITDA), Leverage Ratio (Total Debt / Adjusted EBITDA), Net Debt,
Adjusted Tax Rate, and constant currency. Mattel uses these measures to analyze its
continuing operations and to monitor, assess, and identify meaningful trends in its operating and
financial performance, and each is discussed below. Mattel believes that the disclosure of non-
GAAP financial measures provides useful supplemental information to investors to be able to
better evaluate ongoing business performance and certain components of Mattel’s results.
These measures are not, and should not be viewed as, substitutes for GAAP financial measures
and may not be comparable to similarly titled measures used by other companies.
Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP
financial measures are attached to this earnings release as exhibits and to our earnings slide
presentation as an appendix.

This earnings release and our earnings slide presentation are available on Mattel's Investor
Relations website, https://investors.mattel.com/, under the subheading “Financial Information –
Quarterly Earnings.”

Adjusted Gross Profit and Adjusted Gross Margin

Adjusted Gross Profit and Adjusted Gross Margin represent reported Gross Profit and reported
Gross Margin, respectively, adjusted to exclude severance and restructuring expenses.
Adjusted Gross Margin represents Mattel’s Adjusted Gross Profit, as a percentage of Net Sales.
Adjusted Gross Profit and Adjusted Gross Margin are presented to provide additional
perspective on underlying trends in Mattel’s core Gross Profit and Gross Margin, which Mattel
believes is useful supplemental information for investors to be able to gauge and compare
Mattel’s current business performance from one period to another.

Adjusted Other Selling and Administrative Expenses

Adjusted Other Selling and Administrative Expenses represents Mattel’s reported Other Selling
and Administrative Expenses, adjusted to exclude severance and restructuring expenses, the
impact of the inclined sleeper product recalls, and the impact of sale of assets, which are not
part of Mattel’s core business. Adjusted Other Selling and Administrative Expenses is presented
to provide additional perspective on underlying trends in Mattel’s core other selling and
administrative expenses, which Mattel believes is useful supplemental information for investors
to be able to gauge and compare Mattel’s current business performance from one period to
another.

Adjusted Operating Income (Loss) and Adjusted Operating Income (Loss) Margin

Adjusted Operating Income (Loss) and Adjusted Operating Income (Loss) Margin represent
reported Operating Income (Loss) and reported Operating Income (Loss) Margin, respectively,
adjusted to exclude severance and restructuring expenses, the impact of the inclined sleeper
product recalls, and the impact of sale of assets, which are not part of Mattel’s core business.
Adjusted Operating Income (Loss) Margin represents Mattel’s Adjusted Operating Income
(Loss), as a percentage of Net Sales. Adjusted Operating Income (Loss) and Adjusted
Operating Income (Loss) Margin are presented to provide additional perspective on underlying
trends in Mattel’s core operating results, which Mattel believes is useful supplemental
information for investors to be able to gauge and compare Mattel’s current business
performance from one period to another.

Adjusted Earnings Per Share

Adjusted Earnings Per Share represents Mattel’s reported Diluted Earnings Per Common
Share, adjusted to exclude severance and restructuring expenses, the impact of the inclined
sleeper product recalls, and the impact of sale of assets/business, which are not part of Mattel’s
core business. The aggregate tax effect of the adjustments was determined using the effective
tax rates on a jurisdictional basis of the respective adjustments, and dividing by the reported
weighted-average number of common shares. Adjusted Earnings Per Share is presented to
provide additional perspective on underlying trends in Mattel’s core business. Mattel believes it
is useful supplemental information for investors to gauge and compare Mattel’s current earnings
results from one period to another. Adjusted Earnings Per Share is a performance measure and
should not be used as a measure of liquidity.

EBITDA and Adjusted EBITDA

EBITDA represents Mattel’s Net Income (Loss), adjusted to exclude the impact of interest
expense, taxes, depreciation, and amortization. Adjusted EBITDA represents EBITDA adjusted
to exclude share-based compensation, severance and restructuring expenses, the impact of the
inclined sleeper product recalls, and the impact of sale of assets/business, which are not part of
Mattel’s core business. Mattel believes EBITDA and Adjusted EBITDA are useful supplemental
information for investors to gauge and compare Mattel’s business performance to other
companies in its industry with similar capital structures. The presentation of Adjusted EBITDA
differs from how Mattel calculates EBITDA for purposes of covenant compliance under the
indentures governing its high yield senior notes and the syndicated facility agreement governing
its senior secured revolving credit facilities. Because of these limitations, EBITDA and Adjusted
EBITDA should not be considered as measures of discretionary cash available to invest in the
growth of Mattel’s business. As a result, Mattel relies primarily on its GAAP results and uses
EBITDA and Adjusted EBITDA only supplementally.

Free Cash Flow and Free Cash Flow Conversion

Free Cash Flow represents Mattel’s net cash flows from operating activities less capital
expenditures. Free Cash Flow Conversion represents Mattel’s free cash flow divided by
Adjusted EBITDA. Mattel believes Free Cash Flow and Free Cash Flow Conversion are useful
supplemental information for investors to gauge Mattel’s liquidity and performance and to
compare Mattel’s business performance to other companies in our industry. Free Cash Flow
does not represent cash available to Mattel for discretionary expenditures.

Leverage Ratio (Total Debt / Adjusted EBITDA)

The leverage ratio is calculated by dividing Total Debt by Adjusted EBITDA. Total Debt
represents the aggregate of Mattel’s current portion of long-term debt, short-term borrowings,
and long-term debt, excluding the impact of debt issuance costs and debt discount. Mattel
believes the leverage ratio is useful supplemental information for investors to gauge trends in
Mattel’s business and to compare Mattel’s business performance to other companies in its
industry.

Net Debt

Net Debt represents the aggregate of Mattel’s current portion of long-term debt, short-term
borrowings, and long-term debt, less cash and cash equivalents. Mattel believes Net Debt is
useful supplemental information for investors to monitor Mattel’s liquidity and evaluate its
balance sheet.

Adjusted Tax Rate

The Adjusted Tax Rate is calculated by dividing Adjusted Provision for Income Taxes by
Adjusted Income Before Income Taxes. Adjusted Income Before Income Taxes represents
reported Income Before Income Taxes, adjusted to exclude severance and restructuring
expenses, the impact of inclined sleeper product recalls, and the impact of sale of
assets/business. The Adjusted Provision for Income Taxes represents reported Provision for
Income Taxes, adjusted to exclude the aggregate tax effect of adjustments. Mattel believes the
adjusted tax rate provides useful supplemental information for investors to gauge and compare
the impact of tax expense on Mattel's earnings results from one period to another.

Constant Currency

Percentage changes in results expressed in constant currency are presented excluding the
impact from changes in currency exchange rates. To present this information, Mattel calculates
constant currency information by translating current period and prior period results for entities
reporting in currencies other than the US dollar using consistent exchange rates. The constant
currency exchange rates are determined by Mattel at the beginning of each year and are
applied consistently during the year. They are generally different from the actual exchange rates
in effect during the current or prior period due to volatility in actual foreign exchange rates.
Mattel considers whether any changes to the constant currency rates are appropriate at the
beginning of each year. The exchange rates used for these constant currency calculations are
generally based on prior year actual exchange rates. The difference between the current period
and prior period results using the consistent exchange rates reflects the changes in the
underlying performance results, excluding the impact from changes in currency exchange rates.
Mattel analyzes constant currency results to provide additional perspective on changes in
underlying trends in Mattel’s operating performance. Mattel believes that the disclosure of the
percentage change in constant currency is useful supplemental information for investors to be
able to gauge Mattel’s current business performance and the longer-term strength of its overall
business since foreign currency changes could potentially mask underlying sales trends. The
disclosure of the percentage change in constant currency enhances investor’s ability to
compare financial results from one period to another.

Key Performance Indicator

Gross Billings

Gross Billings represent amounts invoiced to customers. It does not include the impact of sales
adjustments, such as trade discounts and other allowances. Mattel presents changes in gross
billings as a metric for comparing its aggregate, categorical, brand, and geographic results to
highlight significant trends in Mattel’s business. Changes in Gross Billings are discussed
because, while Mattel records the details of such sales adjustments in its financial accounting
systems at the time of sale, such sales adjustments are generally not associated with
categories, brands, and individual products.

About Mattel

Mattel is a leading global toy company and owner of one of the strongest catalogs of children’s
and family entertainment franchises in the world. We create innovative products and
experiences that inspire, entertain, and develop children through play. We engage consumers
through our portfolio of iconic brands, including Barbie®, Hot Wheels®, Fisher-Price®, American
Girl®, Thomas & Friends™, UNO®, Masters of the Universe®, and MEGA®, as well as other
popular intellectual properties that we own or license in partnership with global entertainment
companies. Our offerings include film and television content, gaming and digital experiences,
music, and live events. Founded in 1945, we operate in 35 locations and our products are
available in more than 150 countries in collaboration with the world’s leading retail and
ecommerce companies. Mattel is proud to be a trusted partner in empowering children to
explore the wonder of childhood and reach their full potential. Visit us online at mattel.com.

Contacts:
News Media Securities Analysts
Catherine Frymark David Zbojniewicz
[email protected] [email protected]

MAT-FIN MAT-CORP
 MATTEL, INC. AND SUBSIDIARIES EXHIBIT I

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1

For the Three Months Ended June 30, For the Six Months Ended June 30,
2023 2022 2023 2022
(In millions, except % Change % Change % Change % Change
per share and % Net % Net as in Constant % Net % Net as in Constant
percentage information) $ Amt Sales $ Amt Sales Reported Currency $ Amt Sales $ Amt Sales Reported Currency
Net Sales $1,087.2 $1,235.7 -12% -13% $1,901.7 $2,277.0 -16% -17%
Cost of Sales 597.4 54.9 % 686.8 55.6 % -13% 1,086.1 57.1 % 1,245.2 54.7 % -13%
Gross Profit 489.8 45.1 % 548.9 44.4 % -11% -13% 815.6 42.9 % 1,031.8 45.3 % -21% -22%
Advertising and Promotion
Expenses 90.0 8.3 % 90.2 7.3 % —% 166.1 8.7 % 163.9 7.2 % 1%
Other Selling and
Administrative Expenses 337.0 31.0 % 333.6 27.0 % 1% 701.8 36.9 % 662.7 29.1 % 6%
Operating Income (Loss) 62.8 5.8 % 125.1 10.1 % -50% -59% (52.3) -2.7 % 205.1 9.0 % n/m n/m
Interest Expense 30.6 2.8 % 32.8 2.7 % -7% 61.8 3.2 % 65.9 2.9 % -6%
Interest (Income) (4.3) -0.4 % (2.0) -0.2 % 121% (10.8) -0.6 % (3.2) -0.1 % 243%
Other Non-Operating
(Income) Expense, Net (2.1) 7.1 (3.6) 16.3
Income (Loss) Before Income
Taxes 38.6 3.6 % 87.1 7.0 % -56% -65% (99.6) -5.2 % 126.2 5.5 % n/m n/m
Provision (Benefit) for
Income Taxes 14.4 26.6 (12.6) 50.5
(Income) from Equity
Method Investments (3.0) (5.9) (7.7) (12.2)
Net Income (Loss) $ 27.2 2.5 % $ 66.4 5.4 % -59% $ (79.3) -4.2 % $ 87.9 3.9 % n/m
Net Income (Loss) Per
Common Share - Basic $ 0.08 $ 0.19 $ (0.22) $ 0.25
Weighted-Average Number
of Common Shares 354.6 353.5 354.7 352.8
Net Income (Loss) Per
Common Share - Diluted $ 0.08 $ 0.18 $ (0.22) $ 0.24
Weighted-Average Number
of Common and Potential
Common Shares 357.2 359.8 354.7 358.9
1
Amounts may not sum due to rounding.
n/m - Not meaningful
 MATTEL, INC. AND SUBSIDIARIES EXHIBIT II

CONDENSED CONSOLIDATED BALANCE SHEETS1

June 30, December 31,

2023 2022 2022
(In millions) (Unaudited)
Assets
Cash and Equivalents $ 299.9 $ 274.5 $ 761.2
Accounts Receivable, Net 890.9 989.2 860.2
Inventories 971.6 1,177.6 894.1
Prepaid Expenses and Other Current Assets 261.3 273.2 213.5
Total Current Assets 2,423.7 2,714.4 2,729.0
Property, Plant, and Equipment, Net 464.1 442.1 469.1
Right-of-Use Assets, Net 296.2 326.2 318.7
Goodwill 1,384.2 1,379.2 1,378.6
Other Noncurrent Assets 1,329.5 1,305.8 1,282.3
Total Assets $ 5,897.8 $ 6,167.7 $ 6,177.7

Liabilities and Stockholders’ Equity

Short-Term Borrowings $ — $ 3.0 $ —
Current Portion of Long-Term Debt — 250.0 —
Accounts Payable and Accrued Liabilities 1,021.7 1,216.0 1,150.2
Income Taxes Payable 9.4 19.2 37.6
Total Current Liabilities 1,031.1 1,488.2 1,187.7
Long-Term Debt 2,327.8 2,323.3 2,325.6
Noncurrent Lease Liabilities 243.8 282.3 271.4
Other Noncurrent Liabilities 332.8 345.9 336.6
Stockholders’ Equity 1,962.4 1,728.0 2,056.3
Total Liabilities and Stockholders’ Equity $ 5,897.8 $ 6,167.7 $ 6,177.7

SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1

June 30,
2023 2022
Key Balance Sheet Data:
Accounts Receivable, Net Days of Sales Outstanding (DSO) 74 72

For the Six Months Ended June 30,

(In millions) 2023 2022
Condensed Cash Flow Data:
Cash Flows (Used for) Operating Activities $ (326) $ (425)
Cash Flows (Used for) Investing Activities (62) (54)
Cash Flows (Used for) Provided by Financing Activities and Other (74) 22
Decrease in Cash and Equivalents $ (461) $ (457)

1
Amounts may not sum due to rounding.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT III

SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES

For the Three Months Ended June 30, For the Six Months Ended June 30,
(In millions, except percentage information) 2023 2022 Change 2023 2022 Change
Gross Profit
Gross Profit, As Reported $ 489.8 $ 548.9 $ 815.6 $ 1,031.8
Gross Margin 45.1 % 44.4 % 70 bps 42.9 % 45.3 % -240 bps
Adjustments:
Severance and Restructuring Expenses (1.2) 5.8 (1.2) 8.4
Gross Profit, As Adjusted $ 488.6 $ 554.7 $ 814.4 $ 1,040.2
Adjusted Gross Margin 44.9 % 44.9 % 0 bps 42.8 % 45.7 % -290 bps

Other Selling and Administrative Expenses

Other Selling and Administrative Expenses, As Reported $ 337.0 $ 333.6 1% $ 701.8 $ 662.7 6%
% of Net Sales 31.0 % 27.0 % 400 bps 36.9 % 29.1 % 780 bps
Adjustments:
Severance and Restructuring Expenses (9.8) (5.8) (33.7) (12.6)
Inclined Sleeper Product Recalls (3.4) — (7.7) (0.6)
2
Sale of Assets — 15.2 — 15.2
Other Selling and Administrative Expenses, As Adjusted $ 323.8 $ 343.1 -6% $ 660.3 $ 664.7 -1%
% of Net Sales 29.8 % 27.8 % 200 bps 34.7 % 29.2 % 550 bps

Operating Income (Loss)

Operating Income (Loss), As Reported $ 62.8 $ 125.1 -50% $ (52.3) $ 205.1 n/m
Operating Income (Loss) Margin 5.8 % 10.1 % -430 bps -2.7 % 9.0 % n/m
Adjustments:
Severance and Restructuring Expenses 8.6 11.5 32.5 21.0
Inclined Sleeper Product Recalls 3.4 — 7.7 0.6
2
Sale of Assets — (15.2) — (15.2)
Operating Income (Loss), As Adjusted $ 74.7 $ 121.4 -38% $ (12.0) $ 211.6 n/m
Adjusted Operating Income (Loss) Margin 6.9 % 9.8 % -290 bps -0.6 % 9.3 % n/m

1
Amounts may not sum due to rounding.
2
For the three and six months ended June 30, 2022, Mattel recorded a gain on sale of assets of $15.2 million in other selling and administrative expenses.
n/m - Not meaningful
MATTEL, INC. AND SUBSIDIARIES EXHIBIT III

SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
For the Three Months Ended June 30, For the Six Months Ended June 30,
(In millions, except per share and percentage information) 2023 2022 Change 2023 2022 Change
Earnings Per Share
Net Income (Loss) Per Common Share, As Reported $ 0.08 $ 0.18 -56% $ (0.22) $ 0.24 n/m
Adjustments:
Severance and Restructuring Expenses 0.02 0.03 0.09 0.06
Inclined Sleeper Product Recalls 0.01 — 0.02 —
Sale of Assets/Business2 — (0.04) — (0.04)
Tax Effect of Adjustments3 (0.01) — (0.03) —
Net Income (Loss) Per Common Share, As Adjusted $ 0.10 $ 0.18 -44% $ (0.14) $ 0.26 n/m

EBITDA and Adjusted EBITDA

Net Income (Loss), As Reported $ 27.2 $ 66.4 -59% $ (79.3) $ 87.9 n/m
Adjustments:
Interest Expense 30.6 32.8 61.8 65.9
Provision (Benefit) for Income Taxes 14.4 26.6 (12.6) 50.5
Depreciation 34.3 35.8 68.0 71.7
Amortization 9.5 9.7 19.0 19.0
EBITDA 116.1 171.3 56.9 294.9
Adjustments:
Share-Based Compensation 20.0 18.6 36.9 37.9
Severance and Restructuring Expenses 8.6 10.5 32.5 18.9
Inclined Sleeper Product Recalls 3.4 — 7.7 0.6
Sale of Assets/Business2 — (15.2) — (15.2)
Adjusted EBITDA $ 148.0 $ 185.2 -20% $ 134.1 $ 337.2 -60%

Free Cash Flow

Net Cash Flows Used for Operating Activities $ (325.6) $ (425.0)
Capital Expenditures (73.4) (78.5)
Free Cash Flow $ (399.0) $ (503.5)

1
Amounts may not sum due to rounding.
2
For the three and six months ended June 30, 2022, Mattel recorded a gain on sale of assets of $15.2 million in other selling and administrative expenses.
3
The aggregate tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments, and dividing by
the reported weighted average number of common and potential common shares.
n/m - Not meaningful
MATTEL, INC. AND SUBSIDIARIES EXHIBIT III

SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
For the Three Months Ended June 30,
(In millions, except percentage and pts information) 2023 2022 Change
Tax Rate
Income Before Income Taxes, As Reported $ 38.6 $ 87.1
Adjustments:
Severance and Restructuring Expenses 8.6 11.5
Inclined Sleeper Product Recalls 3.4 —
Sale of Assets/Business2 — (15.2)
Income Before Income Taxes, As Adjusted $ 50.6 $ 83.4

Provision for Income Taxes, As Reported $ 14.4 $ 26.6

Adjustments:
Tax Effect of Adjustments3 2.8 (1.0)
Provision for Income Taxes, As Adjusted $ 17.2 $ 25.6

Tax Rate, As Reported 37% 31% 6 pts

Tax Rate, As Adjusted 34% 31% 3 pts

June 30,
2023 2022
Net Debt
Long-Term Debt $ 2,327.8 $ 2,323.3
Current Portion of Long-Term Debt — 250.0
Short-Term Borrowings — 3.0
Adjustments:
Cash and Equivalents (299.9) (274.5)
Net Debt $ 2,027.9 $ 2,301.8

1
Amounts may not sum due to rounding.
2
For the three months ended June 30, 2022, Mattel recorded a gain on sale of assets of $15.2 million in other selling and administrative expenses.
3
Tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments.
 MATTEL, INC. AND SUBSIDIARIES EXHIBIT III

SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
For the Trailing Twelve Months Ended June 30,
(In millions, except percentage and pts information) 2023 2022 Change
Leverage Ratio (Total Debt/Adjusted EBITDA)
Total Debt
Long-Term Debt $ 2,327.8 $ 2,323.3
Current Portion of Long-Term Debt — 250.0
Short-Term Borrowings — 3.0
Adjustments:
Debt Issuance Costs and Debt Discount 22.2 26.7
Total Debt $ 2,350.0 $ 2,603.0
EBITDA and Adjusted EBITDA
Net Income, As Reported $ 226.7 $ 1,108.8 -80%
Adjustments:
Interest Expense 128.7 151.2
Provision (Benefit) for Income Taxes 72.8 (410.8)
Depreciation 140.9 145.2
Amortization 37.9 38.0
EBITDA 607.0 1,032.4
Adjustments:
Share-Based Compensation 68.1 67.7
Severance and Restructuring Expenses 46.3 33.0
Inclined Sleeper Product Recalls 6.9 3.5
Sale of Assets/Business (8.3) (15.2)
Loss on Liquidation of Argentina Subsidiary 45.4 —
Adjusted EBITDA $ 765.3 $ 1,121.4 -32%

Total Debt / Net Income 10.4x 2.3x

Leverage Ratio (Total Debt / Adjusted EBITDA) 3.1x 2.3x

Free Cash Flow

Net Cash Flows Provided by Operating Activities $ 542.2 $ 301.9 80%
Capital Expenditures (181.4) (155.2)
Free Cash Flow $ 360.8 $ 146.7 146%

Net Cash Flows Provided by Operating Activities / Net Income 239% 27% 212 pts
Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) 47% 13% 34 pts

1
Amounts may not sum due to rounding.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT III

SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
For the Year Ended
December 31,
(In millions, except percentage and per share information) 2022
Gross Profit
Gross Profit, As Reported $ 2,481.4
Gross Margin 45.7 %
Adjustments:
Severance and Restructuring Expenses 10.7
Gross Profit, As Adjusted $ 2,492.0
Adjusted Gross Margin 45.9 %

Earnings Per Share

Net Income Per Common Share, As Reported $ 1.10
Adjustments:
Severance and Restructuring Expenses 0.10
Sale of Assets/Business2 (0.07)
Loss on Liquidation of Argentina Subsidiary3 0.13
Net Income Per Common Share, As Adjusted $ 1.25

EBITDA and Adjusted EBITDA

Net Income, As Reported $ 393.9
Adjustments:
Interest Expense 132.8
Provision for Income Taxes 135.9
Depreciation 144.6
Amortization 37.9
EBITDA 845.0
Adjustments:
Share-Based Compensation 69.1
Severance and Restructuring Expenses 32.7
Inclined Sleeper Product Recalls (0.3)
Sale of Assets/Business2 (23.5)
Loss on Liquidation of Argentina Subsidiary3 45.4
Adjusted EBITDA $ 968.4
1
Amounts may not sum due to rounding.
2
For the year ended December 31, 2022, Mattel recorded a gain on sale of assets of $23.5 million in other selling and administrative expenses.
3
During the year ended December 31, 2022, the liquidation of Mattel’s subsidiary in Argentina was substantially completed, and Mattel recognized its
cumulative translation adjustments of $45.4 million as a loss in other non-operating expense, net.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT III

SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
For the Year Ended
December 31,
(In millions, except percentage information) 2022
Tax Rate
Income Before Income Taxes, As Reported $ 504.3
Adjustments:
Severance and Restructuring Expenses 36.8
Inclined Sleeper Product Recalls (0.3)
Sale of Assets/Business2 (23.5)
Loss on Liquidation of Argentina Subsidiary3 45.4
Income Before Income Taxes, As Adjusted $ 562.8

Provision for Income Taxes, As Reported $ 135.9

Adjustments:
Tax Effect of Adjustments4 1.3
Provision for Income Taxes, As Adjusted $ 137.2

Tax Rate, As Reported 27%

Tax Rate, As Adjusted 24%
1
Amounts may not sum due to rounding.
2
For the year ended December 31, 2022, Mattel recorded a gain on sale of assets of $23.5 million in other selling and administrative expenses.
3
During the year ended December 31, 2022, the liquidation of Mattel’s subsidiary in Argentina was substantially completed, and Mattel recognized its
cumulative translation adjustments of $45.4 million as a loss in other non-operating expense, net.
4
Tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT IV

WORLDWIDE NET SALES AND GROSS BILLINGS1 (Unaudited)2

For the Three Months Ended June 30, For the Six Months Ended June 30,
% Change % Change
% Change in % Change in
as Constant as Constant
2023 2022 Reported Currency 2023 2022 Reported Currency
(In millions, except percentage information)
Worldwide Net Sales:
Net Sales $ 1,087.2 $ 1,235.7 -12% -13% $ 1,901.7 $ 2,277.0 -16% -17%

Worldwide Gross Billings by Categories:

Dolls $ 440.5 $ 401.3 10% 9% $ 746.6 $ 797.5 -6% -6%
Infant, Toddler, and Preschool 197.3 274.6 -28 -29 347.5 480.2 -28 -28
Vehicles 363.8 328.3 11 10 647.4 610.4 6 6
Action Figures, Building Sets, Games,
and Other 225.9 372.0 -39 -40 397.4 652.7 -39 -39
Gross Billings $ 1,227.5 $ 1,376.3 -11% -12% $ 2,138.8 $ 2,540.7 -16% -16%

Supplemental Gross Billings Disclosure

Worldwide Gross Billings by Top 3 Power Brands:

Barbie $ 282.7 $ 300.8 -6% -7% $ 459.6 $ 598.8 -23% -23%
Hot Wheels 315.2 286.5 10 9 560.1 527.9 6 6
Fisher-Price 164.7 228.9 -28 -29 290.3 400.2 -27 -28
Other 464.9 560.0 -17 -18 828.8 1,013.8 -18 -18
Gross Billings $ 1,227.5 $ 1,376.3 -11% -12% $ 2,138.8 $ 2,540.7 -16% -16%

1
Gross billings represent amounts invoiced to customers and do not include the impact of sales adjustments, such as trade discounts and other allowances.
Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends
in Mattel’s business.
2
Amounts may not sum due to rounding.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT V

NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2

For the Three Months Ended June 30, For the Six Months Ended June 30,
% Change % Change
% Change in % Change in
as Constant as Constant
2023 2022 Reported Currency 2023 2022 Reported Currency
(In millions, except percentage information)
North America Net Sales:
Net Sales $ 596.8 $ 726.5 -18% -18% $ 1,033.8 $ 1,328.6 -22% -22%

North America Gross Billings by Categories:

Dolls $ 210.9 $ 190.7 11% 11% $ 343.8 $ 372.9 -8% -8%
Infant, Toddler, and Preschool 119.9 178.3 -33 -33 207.1 309.8 -33 -33
Vehicles 173.5 177.6 -2 -2 315.7 324.4 -3 -2
Action Figures, Building Sets, Games,
and Other 133.0 228.3 -42 -42 239.3 409.6 -42 -41
Gross Billings $ 637.4 $ 774.9 -18% -18% $ 1,105.9 $ 1,416.6 -22% -22%

Supplemental Gross Billings Disclosure

North America Gross Billings by Top 3 Power Brands:

Barbie $ 148.1 $ 156.7 -5% -5% $ 237.7 $ 320.7 -26% -26%
Hot Wheels 146.9 152.6 -4 -3 266.6 274.3 -3 -3
Fisher-Price 100.7 150.3 -33 -33 176.1 262.9 -33 -33
Other 241.6 315.2 -23 -23 425.6 558.8 -24 -24
Gross Billings $ 637.4 $ 774.9 -18% -18% $ 1,105.9 $ 1,416.6 -22% -22%

1
Gross billings represent amounts invoiced to customers and do not include the impact of sales adjustments, such as trade discounts and other allowances.
Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in
Mattel’s business.
2
Amounts may not sum due to rounding.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT VI

NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2

For the Three Months Ended June 30, For the Six Months Ended June 30,
% Change % Change
% Change in % Change in
as Constant as Constant
2023 2022 Reported Currency 2023 2022 Reported Currency
(In millions, except percentage information)
International Net Sales by Geographic Area:
EMEA $ 241.7 $ 270.9 -11% -12% $ 451.0 $ 548.7 -18% -17%
Latin America 138.0 124.8 11 3 213.6 196.7 9 2
Asia Pacific 83.0 80.7 3 7 142.2 134.9 5 11
Net Sales $ 462.7 $ 476.4 -3% -5% $ 806.8 $ 880.2 -8% -8%

International Gross Billings by Geographic Area:

EMEA $ 303.8 $ 328.2 -7% -8% $ 555.7 $ 668.6 -17% -16%
Latin America 160.7 144.5 11 3 248.4 227.8 9 3
Asia Pacific 97.3 95.3 2 7 166.2 158.0 5 11
Gross Billings $ 561.8 $ 568.0 -1% -3% $ 970.4 $ 1,054.3 -8% -8%

International Gross Billings by Categories:

Dolls $ 201.4 $ 177.3 14% 12% $ 340.2 $ 354.9 -4% -4%
Infant, Toddler, and Preschool 77.4 96.3 -20 -21 140.4 170.3 -18 -17
Vehicles 190.2 150.7 26 25 331.7 286.0 16 16
Action Figures, Building Sets, Games,
and Other 92.9 143.7 -35 -37 158.1 243.1 -35 -35
Gross Billings $ 561.8 $ 568.0 -1% -3% $ 970.4 $ 1,054.3 -8% -8%

Supplemental Gross Billings Disclosure

International Gross Billings by Top 3 Power Brands:

Barbie $ 134.6 $ 144.2 -7% -8% $ 221.9 $ 278.1 -20% -20%
Hot Wheels 168.3 133.9 26 24 293.6 253.6 16 16
Fisher-Price 63.9 78.6 -19 -20 114.2 137.3 -17 -17
Other 195.0 211.3 -8 -9 340.7 385.2 -12 -12
Gross Billings $ 561.8 $ 568.0 -1% -3% $ 970.4 $ 1,054.3 -8% -8%

1
Gross billings represent amounts invoiced to customers and do not include the impact of sales adjustments, such as trade discounts and other allowances.
Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in
Mattel’s business.
2
Amounts may not sum due to rounding.
MATTEL, INC. AND SUBSIDIARIES EXHIBIT VII

NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2

For the Three Months Ended June 30, For the Six Months Ended June 30,
% Change % Change
% Change in % Change in
as Constant as Constant
2023 2022 Reported Currency 2023 2022 Reported Currency
(In millions, except percentage information)
American Girl Net Sales:
Net Sales $ 27.6 $ 32.8 -16% -16% $ 61.1 $ 68.1 -10% -10%

American Girl Gross Billings:

Gross Billings $ 28.3 $ 33.4 -15% -15% $ 62.6 $ 69.7 -10% -10%

1
Gross billings represent amounts invoiced to customers and do not include the impact of sales adjustments, such as trade discounts and other allowances.
Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in
Mattel’s business.
2
Amounts may not sum due to rounding.