EVEN THE LARGEST TOYMAKER CAN'T

AVOID PRICING PRESSURE.

LEGO SAYS IT WILL RAISE THE

COST OF SOME OF ITS LEGOS SETS

TO OFFSET RISING MORE MATERIAL

AN OPERATION CAUSED.

COMPANIES VOICED JUMPED BY A

THIRD LAST YEAR, --

AND OF COURSE IT WAS A PANDEMIC

WENT OVER HIS FAMILY FOUND

FRESH WAYS TO ENTERTAIN

THEMSELVES DURING LOCKDOWN.

NOW LEGO IS WORKING ON BUILDING

A BETTER FUTURE PIECE BY PIECE

WITH A ONE BILLION DOLLAR

CARBON NEUTRAL FACTORY IN

VIRGINIA.

THE NEW PLANT IS SET TO OPEN IN

2025.

PLENTY TO DISCUSS NOW, I'M

PLEASED TO SEE JOINING US IS

NEIL'S CHRISTIANSEN.

THE CEO OF THE LIVE OAK ROPE.

NEIL'S ALWAYS FANTASTIC TO GET

YOU ON THE SHOW.

MUCH TO DISCUSS, LET'S TALK

ABOUT THE DECISION TO RAISE

PRICES.

WHAT LED TO THAT?

WHAT KIND OF PRICE RISING ARE

WE TALKING ABOUT?

AND HAS TOUGH DECISION WITH ANY

POINT AND THEY HAVE TO BE MADE?

>> YES YOU ARE RIGHT IT IS LIKE

ALL OVER THE WORLD RIGHT NOW.

WE DO SEE THE INFLATION COST OF

PRESSURES ON EVERYTHING FROM

FRIGHT, TO ENERGY, TO MATERIAL

COST AND OF COURSE WE'VE HAD

THE SAME.

WE HAVE BEEN TRYING FOR

APPEARED TO ABSOLVE THAT AND TO

LEAVE THAT OWN.

AND I WILL SAY LIMITED PRICES

ON PASS ON TO A FOUR YEAR OLD

THIS AUTUMN.

AND WE ARE STILL TRYING TO

PROTECT AS MUCH AS WE CAN.

WE KNOW THE BASIC MISSION AND

LEGAL PLACE AND AS MANY KIDS AS

POSSIBLE THROUGHOUT THE WORLD

AND ALLOWS THEM TO BOAST

THEMSELVES AND TO PLAY.

WE ARE TRYING TO DO THIS IN THE

BEST POSSIBLE WAY AND OF COURSE

HAD TO MAKE SURE THERE IS

SOMEHOW AND SOMEHOW AND THEY

WERE HAPPENING.

THAT IS WHAT'S HAPPENING.

>> THE BEAUTY OF LEGOS ARE VERY

PRICE AND IF YOU HAD CANNOT

AFFORD THE MORE EXPERIENCED

PIECES YOU CAN GET THEM TO GET

SMALLER PIECES AND STILL HAVE

FUN.

ARE YOU SEEING --

ALREADY HAPPENING AND IF SO CAN

YOU GIVE US A SENSE OF WHERE IN

THE WORLD?

>> AND I WOULDN'T SAY HOW

THINGS ARE, AND WE ARE OF

COURSE AND PROTECT THE SETS

THAT ARE PRIMARILY, THEN THE

POSITION FOR YOUNGER KIDS.

SO THEY DON'T IMPACT THAT MUCH

AND THEY WERE ALL IN ALL, I

THINK WE'RE DOING BEST AND

MOST.

WE ARE DOING IT PRETTY LATE AND

IN THAT SENSE, I THINK WE ARE

TRYING TO PROTECT CONSUMERS THE

MOST THAT WE CAN.

HAVEN'T SEEN MUCH OF THAT

IMPACT AND NOT EXPECTING TO SEE

ALL OF THAT.

I THINK WE ARE ACTUALLY,

RELATIVELY SEEING A WELL

POSITION OR SO.

>> YOUR CALM VOICE I MEAN, I

THINK HUGE CONSENT GLOBALLY

WHICH IS VERY WELCOME.

DOES ANY OF WHAT YOU'RE SEEING

AND THE BACKDROP CHANGE OR

INVESTMENT PLANS?

I MENTIONED THE VIRGINIA PLANT,

YOU CAN TALK ABOUT THAT.

I WATCH A RAPIDLY OPENING

STORES LAST YEAR, I BELIEVE WAS

165 NEW LEGO STORES.

150 NEW BRICKS AND STORES THIS

YEAR.

IS THAT STILL THE PLAN?

NOTHING IS CHANGED ABOUT THAT?

>> NO NOTHING IS CHANGED ABOUT

THAT.

WHAT YOU ARE SEEING OVER THE

LAST COUPLE OF DAYS, WE HAVE A

GREAT MOMENTUM BEHIND OUR BRAND

IN OUR PORTFOLIO.

AND OUR ABILITY ACTUALLY TO GET

REALLY EXCITING STUFF TO GET

ALL OVER THE WORLD.

WE ARE DRIVING THAT MOMENTUM

AND WE ARE CONTINUING ALONG

THOSE LINES, AS YOU SAID A LOT

OF THE STORES.

--

IN THE LAST YEAR.

IT'S A REALLY EXCITING AND IT

IS A GREAT WAY NOW TO ALLOW

KIDS TO COME IN AND EXPERIENCE

THINGS THAT WE DO.

AND REALLY GET THE BRAND UNDER

THE SCALE.

I THINK THAT EXCITEMENT IS --

CONTINUING ALONG THOSE LINES,

CONTINUING TO OPEN STORES AND

AS THEY'RE ALSO TRYING TO

FOLLOW THAT SEARCH AND DEMAND

BY PROVIDING THAT CAPACITY AND

IT'S ONLY HALF A YEAR AGO.

TO BUILD THE FACTORY IN VIETNAM

AND YESTERDAY, WE ANNOUNCED TO

BUILD A HUGE FACTORY IN

VIRGINIA.

AND I'M SUPER EXCITED ABOUT

THAT.

>> THIS IS PART OF THE PLAN TO,

SHORE UP SUPPLY CHAINS IN

PARTICULAR BUT WE HAVE SEEN

OVER THE LAST TWO YEARS.

YOU TRY AND PRODUCE AS MUCH AS

YOU CAN, NEAR WHETHER, CLIENT

OR THE CUSTOMER BASE IS THAT

YOU ARE PRODUCING FOUR?

>> YES, EXACTLY.

I THINK THERE ARE SEVERAL

ELEMENTS OF THAT.

THAT IS BEEN THAT FOR QUITE

AWHILE, I KNOW OF A GREAT

SUCCESS.

THERE ARE SO MANY AMERICAN KIDS

THAT ARE REALLY, PROBABLY IN

LOVE WITH THE BRAND AND WANTING

TO PLAY.

WE WANT TO MAKE SURE THAT WE

HAVE THE SUPPLY CHAINS AND

SUPPORT.

THAT NEEDS TO BE A LOCALIZED

SUPPLY CHAIN.

AND BOTH FROM OUR ABILITY TO

REACT AND WHAT IS ACTUALLY IN

THE MAN AND WHAT THEY WANT AND

WHAT THEY NEED BUT ALSO, IN OUR

MIND SUSTAINABILITY IS REALLY

IMPORTANT.

IT DOES NOT MAKE MUCH SENSE TO

HAVE A SUPPLY CHAIN WHERE WE

WOULD BE SHIPPING LEGO ELEMENTS

ALL OVER THE WORLD.

WE WOULD MUCH MOTHER PRODUCES

PACKAGES VERY CLOSE TOGETHER IN

CONSUMER.

TO REACT QUICKLY AND TO HAVE AN

EFFICIENT SUPPLY CHAIN.

MOST OF, ALL VERY ALSO HAVE --

THAT IS WHAT WE ARE GETTING I

THINK BY ESTABLISHING OURSELVES

IN VIRGINIA.

>> I BELIEVE, MORE THAN OTHER

RELIABLE STORES WORLDWIDE NOW

ARE CHINA AS WELL.

A JEWELRY STORE THERE WHICH I

WANT TO TALK ABOUT.

THIS BLENDING OF THE PHYSICAL

AND THE DIGITAL.

FOR LEGO AND WITH THAT MEANS TO

THE FUTURE.

BUT ALSO, THE CHALLENGES WE

HAVE SEEN IN LOCKDOWN.

AND CHINA, SPECIFICALLY HAVE

YOU SEEN THE SAME KIND OF

PANDEMIC BUMPER EFFECT THAT YOU

SAW WITH PEOPLE TRYING TO

ENTERTAIN THEMSELVES AT HOME?

GIVE US A FLAVOR OF WHAT YOU

ARE SEEING THERE, IN PARTICULAR

AND THE IMPORTANCE OF DIGITAL

GROUPS.

>> YES, I ACTUALLY KNOW A LOT

OF JOURNALIST HAVE BEEN WRITING

ABOUT THE FACT THAT IT'S BEEN

SUPER POSITIVE.

WE HAVE SEEN DEMAND SURGING

FROM COVID LOCKDOWNS AND THAT I

THINK IS, THE TWO EFFECTS

ACTUALLY.

IT HAS BEEN QUITE NEGATIVE AND

WE HAVE HAD THE FACTORIES

CLOSED, WE'VE HAD STORES CLOSE.

PEOPLE CANNOT GET IN SO UNDER

THE COUNTRY, WE HAVE ACTUALLY

SEEN QUITE A BIT OF A NEW

DEMAND AND EXCITEMENT COMING

WHEN STORES WON REOPEN.

SO RIGHT NOW, WHEN HE APPOINTED

CHINA AND THE LOCKDOWN, THAT IS

A NET NEGATIVE.

YOU CANNOT GET PEOPLE INTO

STORES, YOU CAN ACTUALLY KNOCK

IT PRODUCTS IF PEOPLE.

AND THAT SENSE, IT IS LOOKING

BETTER NOW THAT THEY ARE

OPENING UP AGAIN.

WE HAVE SEEN THAT THROUGHOUT

THE WORLD THAT AS COVID EASED,

AS WE ALL GOT BACK ON THE

STREET, INTO STORES, INTO

OFFICES AND OUT OF OUR HOMES,

THAT HAS ACTUALLY BEEN

ACCELERATED THE WISH FOR KIDS

TO COME INTO THE BRAND.

WE HAVE SEEN THAT AS AN

INCREASE IN MOMENTUM AND NOT

THE OPPOSITE.

>> IT'S SUCH AN IMPORTANT

CLARIFICATION AS WELL.

AND THE, AND IT'S A PHYSICAL

PRODUCT THAT REQUIRES MAKING

SOMEWHERE IN THOSE WAREHOUSES

AND THINGS HAVE TO BE OPEN.

AS TO THE STORES, NEVER MIND

THE GROWTH THAT YOU'VE SEEN

DIGITAL.

LET'S TALK ABOUT THAT, BLENDING

OF THE DIGITAL AND PHYSICAL

INTENSIVE.

WHERE CHILDREN PLAY, I BELIEVE

YOU ARE TALKING TO EPIC.

THE MAKER OF FORTNITE TO WORK

OUT HOW LEGO PLAYS INTO THE

METAVERSE.

WHAT ROLE YOU CAN PLAY IN

BUILDING THAT.

AND A SAFE ONE TO NEIL'S, I

THINK FOR PARENTS OUT THERE AND

PARTICULAR, WE KNOW A LOT OF

YOUNG CHILDREN, TWO YOUNG

PERHAPS.

ONE CAN ARGUE ARE PLAYING

FORTNITE.

HOW DO YOU CREATE A FUN,

FRIENDLY, SAFE ENVIRONMENT IN

THE METAVERSE?

WHAT IS THE GAME PLAN?

>> IT'S A SUPER QUESTION.

THAT IS EXACTLY THE MISSION WE

ARE STARTING OUT TO DO.

WE BELIEVE ACTUALLY BY BLENDING

EPIC, PROBABLY HAS THE

STRONGEST TECHNOLOGY

PERFORMANCE WITHIN THE ENTIRE

MIX OF THOSE CREATIONS.

WITH THE BROWN LIKE THE LEGAL

BRAND THAT REALLY IS TRUSTED BY

PARENTS AND KIDS FOR BEING

SAFE.

TO MAKING SURE WE LOOK AFTER

KIDS IN THE BEST POSSIBLE WAY.

COMBINING THAT, WE SET UP WITH

THIS MISSION AS YOU SAY TO

REALLY CREATE ALSO DIGITALLY, A

SUPER SAFE SPACE.

WHERE KIDS CAN ACTUALLY BE THEY

CAN BE SAFE BUT IT NEEDS TO BE

FUN.

A NEEDS TO BE CREATIVE AND

MAGNET IF AND CREATE

EVERYTHING.

IN THE SAME EXPERIENCE AS WHEN

YOU RUN INTO A STORE LIKE THE

ONE I AM SITTING IN.

YOU SEE THESE BIG LEGAL BILLS

AND YOU GET SUPER EXCITED ABOUT

THAT.

WE NEED TO CREATE ALSO, AND THE

DIGITAL ENVIRONMENT.

AND WHAT WE KNOW IS, REALLY THE