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Republication of LEGO Company press release of May 3, 2000:
http://www.lego.dk/info/pressspecific.asp?PressReleaseId=99&Year=2000
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On the right road!
The LEGO Company’s global net turnover rose by DKK 2,128 million in 1999 -
equivalent to 28%. Total net turnover were DKK 9,808 million. Result before tax
was DKK 516 million after restructuring costs of DKK 555 million. In other
words, the primary result was just over DKK 1.071 million, an improvement of DKK
1,353 million comparid to 1998.
This result was, in particular, attributable to three factors. First, 1999 was
the year in which we really experienced the effect of the investment that has
been made in recent years in product and business development. Thus, sales of
Play Materials rose by 16% and turnover in our new business areas doubled.
Secondly, we put into action the ideas on organisation and management that we
have been developing in recent years. The Fitness Programme was implemented at
record speed and resulted in a much simpler, reactive and - above all - more
global business system.
Thirdly, the strategy that we began to implement in the early ’90s is now
beginning to show results. We are developing a much broader commercial
foundation and a wider platform for our brand values.
We have created new business areas that, as well as being business in their own
right, have created synergy across product groups and provided us with new
interfaces with our consumers.
Creativity, play, learning and development - the values that our brand
represents - have never been more relevant than they are today. Our goal, for
the LEGO brand to be the strongest among families with children in 2005 - is
within our grasp. But we shall only achieve it with a continued joint effort and
a continuing focus on our three strategic priorities: the LEGO Brand, People and
Culture, and Profitable Growth.
We must increasingly sell brand experiences that stimulate creativity and
imagination. Our brand must be linked with the development of people through
lifetime learning.
We must develop people and culture so that we achieve a really global company
that is open to its surroundings. A company in which the culture reflects a
shared vision and in which change and improvement are elements in a creative,
happy and colourful working day.
We must ensure that we preserve a company in which family ownership is
maintained through profitable growth. An independent, family-owned company in
which we can concentrate on the pursuit of a long-term strategy, with all the
benefits that that confers.
My dream is for every employee to react as an entrepreneur, wisely administering
our brand and our human and financial resources. In the bottom of this page are
the ”fundamental beliefs” that form part of the LEGO Company’s strategy in the
period up to 2005.
[PHOTO] Kjeld Kirk Kristiansen
Key Figures
The key figures from the annual accounts cover the 57 subsidiaries of the LEGO
Company. The companies are owned by the Kirk Kristiansen family.
The LEGO Company’s subsidiaries are not all members of a single group and are
therefore not covered by the statutes governing the reporting of consolidated
accounts. The accounts for the Danish LEGO A/S Group are prepared and submitted
to the Danish Commerce and Companies Agency in accordance with statutory
requirements.
In order to provide LEGO employees with relevant information, without at the
same time giving information to our competitors that could have a negative
impact on our competitive situation, we have chosen to present the annual
accounts in summarised form, specifying the principal items.
The treatment of accounting entries in the accounts is in full accordance with
the International Company Accounts Act and the guidelines for Danish accounts.
The annual accounts for the LEGO Company are a composition of the accounts for
individual LEGO Company entities with elimination of amounts relating to
transactions within the company. The annual accounts are thus structured as if
the LEGO Company were a single company, with all accounting items the result of
the LEGO Company’s business activities with the wider world.
[TABLE] Profit and Loss
[TABLE] Financial Key Figures
Definitions: Net turnover consists of net sales for the year to the LEGO
Company’s customers. Operating costs comprises costs associated with
development, production, sales, marketing and administration.
Financial items comprises mainly interest on bank deposits with deduction of
interest on interest-bearing debt.
Tax on the year’s result is the forecast tax payable on the result for the year.
Fixed assets comprises mainly tangible fixed assets, consisting of land and
buildings, plant and machinery, and office and IT equipment.
These assets are valued at acquisition price with deduction of depreciation over
the years. Depreciation is calculated on the basis of the asset’s expected
useful life, which for buildings is 25 years and for other assets between 2 and
10 years. Current assets relates primarily to stock, trade receivables from the
sale of goods and cash at banks.
Provisions comprises mainly tax liability - taxation for which, in accordance
with applicable legislation, payment can be deferred to later years. Long-term
debt comprises debts that fall due for payment after more than one year. Short-
term debt comprises debts that fall due for payment within one year. Number of
employees includes temporary employees, converted into full-time employees.
Profit margin is the net result for the year (after tax) expressed as a
percentage of net turnover. Return on EQUITY is the net result for the year
(after tax) expressed as a percentage of equity capital at the beginning of the
year. Solvency ratio is equity capital expressed as a percentage of total
assets.
[TABLE] Result Before Tax
[TABLE] Ballance
[TABLE] Net Turnover
[TABLE] Number of Employees
LEGO Company’s beliefs and mission
Fundamental beliefs:
Children are our role models.
They are curious, creative and imaginative. They embrace discovery and wonder.
They are natural learners. These are precious qualities that should be nurtured
and stimulated throughout life.
Lifelong creativity, imagination and learning are stimulated by playful
activities that encourage hands-on and minds-on creation, fun, togetherness, and
the sharing of ideas.
People who are curious, creative and imaginative - who have a childlike urge to
learn - are best equipped to thrive in a challenging world and be the builders
of our common future.
Mission:
To nurture the child in each of us.
We will do this as the world leader in providing quality products and
experiences that stimulate creativity, imagination, fun and learning.
For further information please contact:
LEGO Company:
Eva Lykkegaard
Global Information & Public Relations
00 45 79 50 74 24
eva.lykkegaard@europe.lego.com
© 2000 LEGO Company
TM and ® indicate trademarks of the LEGO Company
Page updated May 3rd, 2000
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