Robert A. Eckert

2. Robert A. Eckert Chairman and Chief Executive Officer, Mattel Horizon Institute of Technology Arkansas State University March 2004

3. What Was She Thinking? …Mattel's Learning Co. has forgotten about profit. Jill Barad Abruptly Quits the Top Job at Mattel Departure of CEO Doesn't Solve Mattel's Problems Mattel shares drop 15 pct amid cloudy outlook. Mattel's Barad quits after steep fall in earnings Mattel Said To Be Ripe For Takeover.

4. $40.00 Average Share Price: ’88-’97 $1.75 Earnings Per Share: ’88-’97 $35.00 $1.50 $30.00 $1.25 14-Fold Increase 8-Fold Increase $25.00 $1.00 $20.00 $0.75 $15.00 $10.00 $0.50 $5.00 $0.25 $0.00 $0.00 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97

5. Lost Focus • Girls related products declined from 45% to 41% of sales • Margins declined • Cost of Selling, General, and Administration (SGA) creeping up • International business decreased

6. 1999 Friday May 13

7. What happened? 20/20 Hindsight Dot com craze, e.g, buying the Learning Company (TLC), – a software company Expected 10% revenue growth in 2% growth in toy industry Stock fell 65% to $13

8. 100 Day Goals

9. Mattel Taps Kraft Chief Robert Eckert to Succeed Jill Barad as CEO

10. Build Brands Cut Costs Develop People Still true on Day 1,394…

13. August: Month of Meetings • Pre Toy Fair Analyst Meeting • Board of Directors Meeting • TLC Meetings

14. September: Pivotal • Sold TLC for $0 • $250 million Financial Realignment Plan • 10% Headcount Reduction • Cut Dividend Stock (MAT) +3%

15. Joe EckrothCIO Bryan StocktonEVP, Strat Plan & Dev Tom DebrowskiEVP, WW Ops

16. Information Technology Strategy Global Information Technology

17. Fragmented Systems / Processes • Heavy Manual Augmentation • 80+% of Systems are Home Grown • Infrastructure is Significantly Behind • Complexity Increasing Every Year Fully Integrated Real-time 10 Goal 8 4 Manual Strategic Issue I.T. Capability 0 Time 2002

18. 8 Globally Integrated Systems The Mattel Challenge Data Warehouse Marketing PeopleSoft Service Ad Planning ProFIT ISIS Direct Import ISIS Europe Product PLANET Europe Non-Europe Planning Demand Finance Consolidator Demand Marketing MAPS Asia Sourcing Engineering product Human Resources Design Images FPDP Demand Supply Chain Financials Fisher Price Small Acct Field Planning sales Management Sales Product Forecast Videos Customer Orderss Domestic DPAM BUDS field Sales Demand Demand Sales Product Data F-P Prod. Al;location Planning Management Forecast Managemen Info Order Management Inbound EDI Procurement Royalties Web Product Planning Item Master Plant Info AMAPS Inventory Product Order MRP CRP Cost Parts Structure Management BOM MIMICS Engrng List Inventory Product Categories 3 Year Plan Project Purchasing Receiving Kit Issue Receiving Shipping Tracking Customer Invoicing Credit Credit Memos Trading WW Line DST Quality Quality F-P PRISM Company List Shipping Freight Inbound EDI W Data Costing Import Accounts Cost of Export Payable Sales Acctng Outbound Central Item Data Warehouse EDI Human Customers, Products, & Everything Else! Master Payroll Customer Point Of Sale Resources Non Benefits Production porchasing Freight Customers Carriers Sales Acctng ISIS Corporate Insurace Accounts G/L General Remittance Consumer inbound EDI Receivable Consolidation Ledger Advice Affairs 4 Today’s Ugly Reality

19. Improved Speed • Better Integration • Reduced Cost IT: The Game Changer Industries Using IT 4 X Greater Productivity Growth Industries Not Using IT Source: U.S. President’s 2001 Economic Report for FY 1995-1999

20. Mattel/Brand Image • Customer/Supplier Integration • Employee Productivity E-Business Digitizing for Speed and Productivity Data Warehouse Real-time Performance Reporting • Global Performance Reporting • Efficiency & Competitive Advantage Enterprise Transforming Mattel • Global Connectivity & Collaboration Infrastructure I.T. Foundation I.T. Strategy Four Key Focus Areas

21. Business Transformation... Business Process Change BetterTechnology Business Transformation People/Culture

22. What We’ve Done: • Global Finance & H.R. common system & processes • Shared Services… lowered cost • Upgrade Supply Chain… improved customer service/ lowered Cost • Digitize D/D processes… reduced cycle time • Global Data Warehouse… improved reporting • Brand Websites – dramatically increased web presence • Barbie.com has grown 1,239% over 3 years • Fisher-Price.com #1 parent directed website • American Girl 40% on Web

23. Productivity Profitability Quality of Life Summary • Enable “One Mattel”… Create a Common Vocabulary • Reduce Complexity… Eliminate Work • Upgrade our Global Systems… Improve Accuracy • Create a Scaleable Infrastructure… Improve Flexibility • Leverage and Empower Our People… Reduce Stress • Optimize the Company… Realize Cost Savings

24. Lessons Learned: • Strong partnership between business & I.T.; goals have to be aligned and important to strategy of company • Never take for granted how tough change can be… market WIFM for stakeholders • Measure results; “show them the money” • It’s a People Game… make sure your best and brightest are engaged • It is never as easy as projected… pay attention to the details • Less is more… fewer, higher impact projects flawlessly executed

25. December:Fingers Crossed

26. February 1, 2001 • Announced Year-End Earnings • Good News • Renewed Momentum • Delivered Results • 9 month period: +38%

27. Call a Friend “1st 90 days” Symbols Momentum Constituencies/Victims Stop Stupid Stuff Clean Sheet Follow the Cash Public Progress Storytelling Lessons Learned

28. Roadblocks • Followers Want to Follow • Post Purchase Dissonance • Personal Due Diligence • Underestimate Power of Listening

29. Communication Consistency Commitment

30. Thank You