Mattel's UK Tax Strategy

Introduction

We are committed to high standards of corporate governance, transparency and responsibility in supporting the execution of our global business strategy which is to drive profitable growth in our businesses and deliver sustainable returns for our shareholders. Our approach to tax supports this strategy.

Our tax strategy and its application:

Our UK tax strategy applies to all UK entities that are part of the Mattel group, and will be reviewed on a regular basis. This tax strategy and its underlying principles guide the decisions we make relating to UK tax matters.

Governance and management of tax risk

The Board of Mattel Inc oversees the UK tax strategy. The delivery of the strategy is supported by the Europe tax, and accounting teams.

Our controls help us to identify risks, and monitor our compliance with relevant legislation. The tax landscape is constantly changing, and so the Group's tax affairs and tax risk management procedures are regularly reviewed to ensure that processes and measures are up-to-date so we are able to identify, assess, manage and mitigate tax risk.

Every Mattel employee is responsible for acting with integrity, treating others with dignity and respect, being honest and fair in all transactions and consistently striving to do the right thing. This is reflected in our code of conduct which is published on our website.

Attitude to tax planning and the level of tax risk

We aim to ensure that all tax positions are built on sound commercial business activity. Where eligible, we claim the benefit from credits, incentives and elective provisions that are intended to lower the cost of doing business or otherwise encourage investment.

In appropriate circumstances, we seek certainty on inherently uncertain tax positions by obtaining external advice or by seeking advance clearance with the relevant tax authority. This can include obtaining agreement on a unilateral or bilateral basis with respect to transfer pricing positions to ensure agreement that the amount of profit reported is aligned with where value is created. We do not engage in aggressive tax planning schemes, and our appetite for risk is low in this regard.

Working with Tax authorities

We work in a collaborative, transparent and proactive manner with revenue authorities and policy makers and interact with these bodies in a professional, courteous and timely manner.

We consider that the publication of this statement complies with the duty as set out in Paragraph 19(2) Schedule 19 Finance Act 2016.