1. Ramtin Soroush
Mark Villamin
Chung Long Wong
Sean Young
BUSM 1100 – 002
Langara College
March 29, 2009

2. History
 1967: Created by Victor and Rita Bertrand. Named Ritvik
Toys Inc.
 1998: Amalgamated with Ritvik Holdings Inc.
 2002: Name changed to MEGA Bloks Inc.
 2006: Name changes to MEGA Brands Inc. after
acquisition of various other brand names

3. What do they do?
 Market products under various brand names
 Invest 3-4% of sales to drive innovation
 Manufactures and distributes toys as well as office
supplies for children and businesses

4. MEGA Brands’ International Divisional Structure
 President & CEO - Marc Bertrand
 Chief Innovation Officer - Vic Bertrand
 Executive VP & CFO - Alain Tanguay
 Executive VP & Chief Operations Officer - Anthony Bazan
 President, Toys - Gerardo Yepez Reyna
 President, Stationery & Activities - Al Hunyadi
 Executive VP & Chief Marketing Officer - Kathleen
Campisano
 VP International - Michel Moggio

5. Social Responsibility Programs
 Developed safety standards
 Worked with leading safety testing authorities
 Implemented a zero-defects program
 Planned safety programs

6. Defensive Stance
 Subject of 2 voluntary product recalls
 Uncooperative with government
 Violated the terms of one of the recalls
 Improper follow-up after recall

7. Size and Location
 6000 employees
 Based in Canada
 Have influence worldwide
 Outsourced manufacturing in China

8. Industry and Competitors
 Toy industry
 Because of MEGA Bloks, their natural competitor is Lego
 Other top competitors are Hasbro and Mattel

9. Customers and Benefits/Value Provided
 Customers are families with young children
 Contribute to development of growing children
 Their mission benefits and places children first

10. Special Employee Program
 Created in year 2007
 Extended training for qualified young employees
 Create and maintain existing jobs
 Sufficiently funded

11. Capital Structure
 Stocks: Common Stocks
 Bonds: None
 Utilize Equity Financing
 Primary Capital needs are flexible, varying depending on
the situation

12. Growing? Profitable?
 Sales of stationery and activity branches
 Relocated/outsourced manufacturing
 Partnership with Intertek
 multi-year licensing deal with Nickelodeon
and Viacom consumer products
 licensing pact with Marvel
 Net Loss of: $97,136

13. Short-Term Solvency and Activity Ratio
Solvency and Activity Ratio
12.00
10.00
8.00
Ratio
6.00
Short-Term Solvency
Activity
4.00
2.00
0.00
2006 2005 2004 2003
Years

14. Solvency & Activity Comparison 2006
Short-Term and Activity Comparison
7
6
5
4
Industry Average
Ratio
Mega Brands
3
2
1
0
Short-Term Solvency Activity

15. Profitability Ratios
Profitability Ratios
50.0%
45.0%
40.0%
35.0%
30.0%
Percentage
25.0%
Return on Equity %
20.0% Return on Sales %
15.0%
10.0%
5.0%
0.0%
2006 2005 2004 2003
Year

16. Profitability Comparison 2006
Profitability
16.00%
14.00%
12.00%
10.00%
PErcantage
Industry Average
8.00%
Mega Brands
6.00%
4.00%
2.00%
0.00%
Return on Equity % Return on Sales %

17. Earnings per share
Earnings per share
$1.40
$1.20
$1.00
$0.80
Dollar
Earnings per share
$0.60
$0.40
$0.20
$0.00
2006 2005 2004 2003
Years

18. Earnings per share Comparison 2006
Earning per Share
$1.80
$1.60
$1.40
$1.20
$1.00
Dollar
$0.80
$0.60
$0.40
$0.20
$0.00
Industry Average Mega Brands

19. Long-term Solvency
Long-Term Solvency Ratio
$2.50
$2.00
$1.50
Dollar ratio
Long-Term Solvency
$1.00
$0.50
$0.00
2006 2005 2004 2003
Years

20. Long-term Solvency Comparison 2006
Long-Term Solvency Comparison
$2.50
$2.00
$1.50 Industry Average
Dollar
Mega Brand
$1.00
$0.50
$0.00

21. Conclusion
 MEGA Brands’ long journey
 Implementation of safety protocols
 Employee programs
 Growth
 Ratios
 Return to competitive status