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WELCOME BACK TO FIRST MOVE.
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
KIDS CAN SEAMLESSLY JUMP FROM
ONE TO THE OTHER.
THEY DON'T THINK ABOUT NOW
PLAYING DIGITALLY AND
PHYSICALLY.
THEY REALLY LIKE WHEN THEY CAN
SEE SOMETHING, THEY CAN MOVE TO
THE PHYSICAL, THEY CAN ACTUALLY
DO SOMETHING AND THEY CAN MOVE
AROUND AND THEY ARE BACK INTO
DIGITAL AND THEY CAN DO STUFF.
I THINK AS A COMPANY, SUPER TO
BE THE ONES TO BUILD THAT RIGHT?
IT'S NOT A SMALL CHALLENGE.
I WAS ACTUALLY DOWN IN NORTH
CAROLINA ON TUESDAY.
TO WORK ON EXACTLY THE MISSION
THAT I THINK YOU PUT OUT REALLY
WELL ON HOW WE SOLVE FOR THAT.
>> COME BACK AND TALK TO US.
>> COME BACK AND TALK TO US
WHEN YOU'RE READY TO DO IT IT
IS A LITTLE LIKE O'NEILL'S
WATCHING YOU FIRMLY --
YOU CAN GET MARKS OUT OF TEN
FOR YO