LEGO Group in key figures 3

Toy of the Century 4

How LEGO products have developed 4

Moving to the future 7

LEGO products for all children 9

The minifigure 10

LEGOLAND Parks 12

LEGO Community 13

Learning through play 15

How LEGO bricks are made 16

Selected LEGO statistics 17

Using the LEGO brand name 18

Company Profile 2006An introduction to the LEGO® Group

Company profile 2

The founder, Ole Kirk Christiansen,hit upon the LEGO name in 1934.He took the first two letters of the

Danish words LEG GODT, meaning “playwell”, and put them together – quite unawarethat one meaning of the word in Latin is ... “Iput together”. “LEGO” is both the name andthe idea behind the company. Play is a keyelement in children’s growth and develop-ment. Play is nutrition for the soul. Play sti-mulates the imagination, the emergence ofideas, and creative expression.It is LEGO philosophy that “good play” enri-ches a child’s life – and its subsequent adul-thood. With this in mind, the LEGO Grouphas developed and marketed a wide range ofproducts, all founded on the same basic phi-losophy. A philosophy of learning and deve-lopment – through play.

In 2006 there are many views on what chil-dren will play with in future. The toy markethas changed radically in recent years, andconsumer electronics such as mobile phones,MP3 music players and game consoles aregiving traditional toys some stiff competition.But the LEGO Group is of the firm opinionthat the LEGO brick will continue to be rele-vant to children of all ages. There are hours ofplay in the LEGO brick that few other sour-ces offer. A world of imagination and totalabsorption. Putting two LEGO bricks toget-her is intuitive and delivers the spontaneousjoy of creation which can perhaps be supple-mented – but never replaced – by electronicexperiences.

Fashion and trends in toys change quickerthan at any other time in history, making itmore and more difficult to forecast what chil-dren will want to play with tomorrow. At thesame time the market for traditional toys iscrowded with cut-price products – forcingmanufacturers to produce quality toys at lowcost. As a consequence, in recent years manytoy manufacturers have relocated labour-intensive parts of production to low-wagecountries. Over the past few years the LEGOGroup, too, has been carefully considering allits business options. In 2005 the Group deci-ded to sell off its LEGOLAND Parks from itscore business and to close its own productionplant in Korea. And in spring 2006 it closedits own production facilities in Switzerland.Production was transferred to the Group’sown factory in the Czech Republic and tosubcontractors in Eastern Europe. The Com-pany continues to review its current produc-tion structure and expects over the next fewyears to relocate all or part of its production.

It all began in 1934...

Company profile 3

Financial Highlights (mDKK): 2005 2004 2003 2002 2001

Income Statement:Revenue 7,050 6,315 6,792 9,601 9,000Expenses (6,582) (6,252) (7,902) (8,795) (8,142)Profit/(loss) before special items,

financial income and expenses and tax 468 63 (1,110) 806 858Impairment of fixed assets 95 (723) (172) – –Restructuring expenses (104) (502) (283) – (122)Operating profit/(loss) 459 (1,162) (1,565) 806 736Financial income and expenses (3) (75) 67 (189) (215)Profit/(loss) before tax 456 (1,237) (1,498) 617 521Profit/(loss) on continuing activities 331 (1,473) (953) 348 420Profit/(loss) on discontinuing activities 174 (458) 18 (22) (54)Net profit/(loss) for the year 505 (1,931) (935) 326 366

Employees:Average number of employees (full time),

continuing activities 5,321 5,620 6,542 6,659 6,474Average number of employees (full time),

discontinuing activities 1,322 1,725 1,756 1,657 1,184

LEGO Group in key figures

The LEGO Group ended 2005 in thefirm belief that it has survived its finan-cial crisis. Results for 2005 indicate that

the Company is once more on the right track.The overall result before tax – a surplus of DKK702m – exceeded all expectations for the year.Despite generally slow growth on global toymarkets, the LEGO Group enjoyed an increasein sales and in market share in all major mar-kets. This was the case in the largest toy market,USA, and the Group’s core market in Germanyraised its sales significantly. Total Group sales in2005 increased by approx. 12%.

Idea and ProductionThe LEGO Group has approx. 5,300 employ-ees worldwide.Concept and product development takes placeprimarily at the company’s Billund headquartersin Denmark and at satellite offices around theworld. The creative core is made up of 120

designers representing 15 different nationalities.Most of these designers have trained at designand art schools throughout the world but theLEGO Group makes no formal demand forsuch an educational background – staff selec-tion is based on hands-on assignments and per-sonal interviews.

LEGO bricks are manufactured at several sites.LEGO elements are moulded at the Group’sown factories in Denmark and the CzechRepublic and by external suppliers. They arethen processed and packed as finished productsin Denmark, Czech Republic and the USA aswell as by external suppliers. Approx. 15 billionLEGO bricks and other components are madeevery year – equivalent to approx. 1.7m itemsan hour or 28,500 elements a minute.

There are about 2,000 different parts in theLEGO range. Plus 55 different colours and 20different materials.

Company profile 4

At the beginning of the 21st centurythe LEGO brick was acclaimed “Toyof the Century” – first by Fortune

Magazine and later by the British Associationof Toy Retailers. When Carpenter Ole KirkChristiansen began making wooden toys in1932, he could not have foreseen the devel-opment he had set in motion. Since then thecompany has passed from father to son.Today it is the founder’s grandson, Kjeld KirkKristiansen, who owns the LEGO Group,which in terms of sales is the world’s sixth-largest toy manufacturer:

1. Mattel2. Hasbro3. Bandai4. MPA5. LeapFrog6. The LEGO Group

The LEGO Group has itself grown throughthe various ages of play by passing on know-how and vision to the next generation – at thesame time incorporating new technology inits products along the way. The Company’shistory shows that the scope of product devel-opment has been immense but that the prod-uct foundation has remained constant.

How LEGO products havedeveloped

In the first era construction and building funwere the central elements in play. In the sec-ond era LEGO products gained motion withthe introduction of wheels, small motors andgears. Role play and themes formed the basisof the third era – and LEGO figures wereborn. A fourth era followed, with intelligenceand behaviour becoming an integral part ofLEGO products.

LEGO System of PlayThe classic LEGO interlocking principle wasdeveloped more than 40 years ago. The manypossible ways of combining LEGO compo-nents encouraged children to use their imagi-nation and explore their own creative uni-verse. In 1950 Godtfred Kirk Christiansentook over at the helm of the LEGO Groupwhen his father, Ole Kirk Christiansen,stepped down. Five years later the LEGOGroup introduced the revolutionary “LEGOSystem of Play” with the first “Play andLearn” concept, emphasising the importanceof learning through play. Shortly afterwardsthe company passed yet another milestone. In1958 it launched the LEGO brick with itsnew interlocking system.

Inventing the wheelTo Godtfred Kirk Christiansen this was justthe start of the LEGO System. In 1962 hereinvented the wheel and began experiment-ing with motors – and in 1966 introducedthe first LEGO train with its own rails and a4.5v motor. Many more innovative ideas fol-

Toy of the Century

Company profile 5

lowed. The LEGO TECHNIC series, intro-duced in 1977, included parts such as gears,beams and gearboxes. The product rangeinvited older children to build vehicles andother machines which were just as complexas their “real-life” counterparts.

Big bricks for little fingersAnother revolutionary development hap-pened in the late 1960s: Instead of aimingbroadly at the target group “children”,LEGO products were adapted to age groupsand stages of development. Godtfred KirkChristiansen recognised that younger child-ren could get much more fun from theLEGO system. But they needed differenttools. LEGO DUPLO was launched to givethe youngest ones the opportunity to playwith LEGO products. LEGO DUPLObricks are twice as long, high and wide asordinary LEGO bricks – and therefore easi-er for the youngest hands to manipulate.

LEGOLAND on the mapIn 1968 the LEGO Group set up LEGO-LAND Park in Billund. The park was toprove the most famous and vibrant symbolof creativity and imagination – viewed fromthe child’s perspective. LEGOLAND offersadventures for children and fun and enjoy-ment for the whole family.

LEGO figure is bornThe third era in LEGO history opened in1974 with the first LEGO figures. The fig-ures represented a whole new LEGO con-

cept, with role play and personality becom-ing part of LEGO play.

System within a systemIn 1978 Godtfred’s son, Kjeld Kirk Kris-tiansen, introduced a business model whichcreated a “system within the system” andgave the LEGO Group an objective in itsproduct development: to an increasingdegree, the different product ranges were totake account of the child’s needs and abil-ities at each stage in its life – continuouslyaiming for optimum stimulation of thechild’s creativity and imagination. KjeldKirk Kristiansen was named president andCEO of the LEGO Group in 1979. A com-pany and its traditions were placed in thehands of the third generation.

Expanding the universeKjeld Kirk Kristiansen added a new dimen-sion to the LEGO system of play. LEGOfigures were already established as popularcharacters, and the focus therefore switchedto stories, themes and role play. On the con-tinued principle of unlimited play, childrenwere introduced to brand-new LEGOworlds on which they could build andexpand their imagination. In 1979 theLEGO Group reached beyond the skieswhen it launched the LEGO Space series.Neil Armstrong may have been the first manon the Moon – but there was no doubt itwas a LEGO figure that first visited an aliengalaxy.

Company profile 6

Partnership with scienceIn 1984, before digital development reallytook off, the LEGO Group entered a part-nership with Media Laboratory at the Mas-sachusetts Institute of Technology, USA.Research in technology and learning pro-cesses enabled the LEGO Group to spear-head development. By blending physicaland virtual worlds into an integrated playuniverse, the company came up with newproducts. LEGO TECHNIC ComputerControl was launched in 1986 as one of thepartnership’s first tangible results. LEGOproducts for the educational sector benefit-ed substantially from this invention, whichlater paved the way for the first computer-controlled LEGO robots.

Many products in the 1990sIn the 1990s the LEGO Group launched asteady flow of new products. In 1994 theLEGO TECHNIC Supercar sparked theenthusiasm of young motoring fans all overthe world. That was also the year LEGOBelville, a product for young girls, appearedwith its nuclear family, horses and scenesfrom everyday life. LEGO Belville alsomoved later into the classic world of thefairy tale with princesses, fairies and butter-flies. In 1995 the LEGO Group launchedproducts for the very youngest, includingLEGO PRIMO, designed for children aged0-2 years.

During the 1990s the company opened twonew LEGOLAND Parks outside Denmark:one in Windsor, Britain, in 1996, the other

in California, USA, in 1999. The fourthpark appeared on the map at Günzburg,Germany, in 2002.

Robot technology for childrenThe 1990s were also the decade in whichthe LEGO Group stepped firmly into itsfourth era. Intelligence and behaviourbecame integral features of the LEGO prod-uct range. In 1998 the partnership withMassachusetts Institute of Technology pro-duced amazing results. By integrating robottechnology with the LEGO constructionsystem, LEGO MINDSTORMS enabledchildren to create and programme intelli-gent LEGO models. FIRST LEGO Leagueis a result of this work: a worldwide technol-ogy tournament in which schoolchildrencompete with each other. Tournaments areheld in collaboration with the US non-prof-it organisation FIRST (For Inspiration andRecognition of Science and Technology).Children design their own robots, and at thesame time they are required to participate ina series of scientific and mathematical/tech-nical projects.

Story-tellingIn 1998 the LEGO Group announced anexclusive licensing agreement with Lucas-film Ltd. It gave the Group the right todevelop, manufacture and market a newseries of LEGO sets based on themes fromthe original Star Wars™ trilogy and thethree new Star Wars movies. The BIONICLE universe made its appear-ance in 2001. It was the first time the

Company profile 7

LEGO Group had developed a completestory from scratch as the basis for a newproduct range. Through a combination ofphysical products and a detailed online uni-verse, children are invited to tell how theysee the story and the action developing.With the BIONICLE range the LEGOGroup brought a brand-new category to thetoy market: Constraction (combination of“construction toys” and “action figures”).The knights of the Knights’ Kingdom rangewere later added to the Constraction cate-gory.

Moving to the future

Change of courseIn October 2004 President and CEO KjeldKirk Kristiansen decided after 25 years inthe post to hand over the reins to Jørgen

Vig Knudstorp. Kjeld Kirk remains deputychairman of the Board of the LEGOGroup. The change-over took place afterKjeld Kirk Kristiansen – over the precedingmonths and in conjunction with the newleadership team – had charted and initiateda change of course for the company with aview to restoring the profitability of theLEGO Group. One of the principal ele-ments in the action plan which was set inmotion is that in future the company willconcentrate on its core business: toys. Atthe same time, costs have been cut general-ly, and the company is working intensivelyon efforts to improve relations with its cus-tomers, the retail trade. As far as consumersare concerned, the most visible changeshave taken place in product development.New products and product lines have beencentred on the classic product idea, theLEGO brick – and perpetual themes suchas Town, Castle, Pirates and Vikings havereceived a new lease of life. In the process,production time from concept to finalproduct on the retailer’s shelf has been dra-matically reduced. The average period ofdevelopment for a new product is nowabout 12 months.

Company profile 8

Shared VisionThe LEGO Group’s strategy for the yearsup to 2010 goes under the name of SharedVision. The strategy is made up of manycomponents – but its core remainsunchanged. The Group’s aim is to: • Be the best at creating value for our cus-

tomers and sales channels.• Refocus on the value of what we offer our

consumers.• Increase operational excellence.

The strategy underlines the continuedimportance of focusing on profitabilitywithin the organisation. The situation fac-ing all toy manufacturers at present is thatthey are pressured from many quarters – byconsumers, customers and competitors.The LEGO Group meets this challengewith a determination to bind consumers,fans and retailers even closer to the organ-isation.

At the same time, the Group will increas-ingly refine and improve its product rangeto enable its new products to compete, forexample, with the many electronic productson the market.

It continues to be the LEGO Group’s pri-mary purpose to supply good, healthy play– developing children and helping them toface the challenges of tomorrow.

Kjeld Kirk KristiansenVice Chairman of the Board since1996. Member of the Board since1975. Chairman of the Board of KIRK-BI A/S, the LEGO Foundation, OleKirk’s Foundation, and Edith andGodtfred Kirk Christiansen’s Founda-tion. President and CEO for theLEGO Group from 1979-2004. Major-ity shareholder of the LEGO Group.

Jørgen Vig Knudstorp, CEOJørgen Vig Knudstorp joined theLEGO Group in September 2001.From May 2002 he headed theLEGO Group’s strategy department.From April to November 2003 hewas acting Chief Financial Officer,and in November 2003 he becameSenior Vice President and joinedsenior management, Global Man-agement Team (now LG-LT), withresponsibility for Corporate Affairs. InOctober 2004 became he CEO.

The range embraces products for allchildren. The entire product portfolio isgraduated in its challenge to reflect the

fact that children grow older and develop. Con-sequently, all children from 0-16 years can havemeaningful enjoyment with LEGO play mate-rials.LEGO products can be grouped into a numberof categories:

Pre-school productsPre-school products are the category for child-ren who haven’t yet started school. The productsare specially developed to cater for the capabil-ities of the youngest children – encouragingthem through creative play to use their handsand develop their motor skills. Today LEGODUPLO comprises both loose bricks – encour-aging the child to build entirely what comesinto its mind – and play themes – for example,airport, train and castle. The series is graded indifficulty for children aged 2-6 years.Safety and quality are key features of the Pre-school range. The elements are large enough forchildren under three years to play with withoutswallowing them – and thanks to the way theyhave been moulded no bits can become loose.

Creative BuildingCreative Building is the name given to sets orbuckets with traditional LEGO bricks and spe-cial parts such as windows, wheels and roof tiles.No building instructions needed here – just abit of imagination. With Creative Building youcan build what you want. Run out of ideas?There are booklets enclosed – with illustrationsto feed the active mind. Creative Building isavailable in DUPLO and standard LEGObricks.

Play themesPlay themes are all those products that are builtup around a story. For example, there arethemes such as fire station, police, airport,knights’ castle, racers – and many more.Another example is the BIONICLE universe,which has its own very special story.As well as enjoying building, the child canspend many hours playing with the finishedmodels.

Licensed productsLicensed products are play themes based, forexample, on movies or books for which theLEGO Group has acquired the rights. LEGOdesigners recreate the universe and characters inLEGO bricks so that play can continue on thefloor at home.Examples of series produced by the LEGOGroup under licence are Star Wars™ and a Har-ry Potter range in LEGO bricks.

MINDSTORMS NXTWith LEGO MINDSTORMS NXT you candesign your own robot. By means of the soft-ware included in the set, robots can be pro-grammed to perform loads of different opera-tions.The robot can be fitted, for example, with sen-sors which can control motors and react to light,sound, touch, etc.

LEGO EducationLEGO Education products have been devel-oped specially for the educational sector andcontain material for both teachers and pupils.Pupils get the opportunity to do their ownresearch, for example, into how cause and effectare related. When you learn by doing, youremember it better than if someone simply tellsyou. This is the philosophy on which theLEGO Education learning concepts are based.

Company profile 9

LEGO products for all children

Company profile 10

The first LEGO minifigure appearedon the market nearly 30 years ago.Since then the little yellow figure

has gone from strength to strength. Overthe years approx. 4 billion minifigures havebeen produced – making it the world’sbiggest population group!The minifigure has appeared in many guis-es, including knight, astronaut, policeman,racing driver, Star Wars warrior, Harry Pot-ter, Santa Claus, Steven Spielberg, craneoperator, footballer, explorer, nurse, basket-ball player, Spider-Man, scuba diver, skier,firefighter, skeleton, pirate, skater, AmericanIndian, queen ...

When the minifigure first appeared, it wasdecided that its face should have only onecolour: yellow. And that its facial featuresshould be happy and neutral. The figurewould have no sex, race or role – thesewould be determined by the child’s imagi-nation and play.It was not until the launch of LEGO Piratesin the 1980s that the need seemed to arisefor having a figure would could be evil orgood, happy or grumpy. With licensed products such as LEGO StarWars and LEGO Harry Potter the figurebegan appearing in specific roles, and withLEGO Basketball it took on authentic skincolours.In 2004 the LEGO minifigure assumed aneven wider range of skin colours when it wasdecided that the figures in licensed productsshould resemble the original characters as

closely as possible. One result was that thefigures in LEGO Harry Potter changedfrom yellow to a more authentic skin colour.

Minor and major steps in the history of the minifigure:1978: The first minifigures are launched

for the themes Town, Space andCastle. There were seven differentfigures to start with.

1978: Two months after the appearanceof the first minifigures the firstfemale minifigure arrived on thescene: a hospital nurse.

1989: Minifigures change their facialexpressions. Now they can be eithergood or bad – and can even have apatch over one eye! Some of the fig-ures are equipped with a woodenleg and hook. The Pirates are thefirst LEGO product range to topDKK 1bn (EUR 134m) in sales.

1997: The minifigure comes to life. In thecomputer game “Panic on LEGOIsland” the minifigure makes itsfirst-ever appearance as an animat-ed character. The launch of thisnew game is preceded by extensiveexperiment in developing thefigure’s movements and lan-guage.

1998: With the new Star Warscharacters the minifiguremakes its first appearance in a spe-

The minifigure

Company profile 11

cific role. This personification of theminifigure is later extended toLEGO Harry Potter, LEGO Studios,LEGO Basketball and other series.

2000: In LEGO Football the minifigure ismounted on a spring – becoming afunctional element. There is furtherdevelopment with LEGO Basketball– when the spring is used to activatethe figure’s hip movement.

2003: For the first time in the history of theminifigure its yellow facial colouringis replaced by a more authentic skincolour. In LEGO Basketball thereare both dark and light players, withhair-styling printed on thecharacter’s head.

2004: LEGO licensed products no longerhave yellow faces – Harry Potter, forexample, assumes a more naturalskin tone.

Company profile 12

LEGOLAND Parks are family parks inwhich children enter an exciting worldof adventure built of LEGO bricks. The

LEGO Group sold all four LEGOLANDParks in summer 2005. The purchaser wasMerlin Entertainments, a member of theBlackstone Group. A new company was set upunder the deal: Merlin Entertainments Group,with Merlin owning 70% of the shares, theremaining 30% being held by the LEGOGroup and Kirkbi A/S.The decision to sell was made when theLEGO Group was in economic difficulties andbecause it was judged that all managementresources should be concentrated on toy pro-duction if the Group was to regain its stability.And in 2006 that strategy looks as if it was theright one.

The four LEGOLAND ParksLEGOLAND Billund opened in 1968 andquickly became Denmark’s most popular tour-ist attraction outside the capital, Copenhagen.LEGOLAND Billund has seven theme areas –and 50,000,000 LEGO bricks have been usedto create the unique environment withknights, pirates, cowboys and other impressiveLEGO models.

A second park was opened in 1996 – in Wind-sor in the south of England. LEGOLANDWindsor is located approx. 35 km west ofLondon, with Windsor Castle as its nearestneighbour. The following year the park washailed the most popular new attraction in Brit-ain.

The third LEGOLAND Park opened in 1999in Carlsbad, USA, 30 miles north of San Die-go and an hour’s drive south of Anaheim, Cal-ifornia. Like the other LEGOLAND Parks,LEGOLAND California combines interactiveattractions, family activities, shows, restau-rants, shops and LEGO models. A total of30,000,000 LEGO bricks were used to createthe 5,000 LEGO models installed all over thepark. The park is open all year round.

The fourth LEGOLAND Park opened in2002 in Günzburg in southern Germany. Atotal of 50,000,000 LEGO bricks were used tobuild life-size giraffes and hippopotami, andinteractive games and learning, attractions andshows all help give the visitor a fun and excit-ing experience. The park has more than 40attractions plus a staff of 120 permanent and600 seasonal employees.

LEGOLAND Parks

Company profile 13

Over the years enough LEGO brickshave been manufactured to giveeach of the world’s six billion

humans an average of 52 LEGO bricks. It isimportant to the LEGO Group to have closecontact with its fans and consumers through-out the world. And to this end, the companyengages in many initiatives to strengthen tiesbetween LEGO enthusiasts and the company.

LEGO.comThe aim of LEGO.com is to create a virtualLEGO universe in which users can enjoy oneof the most intense LEGO experiences.LEGO.com is more than just a product cata-logue. It is the place where children, parentsand LEGO fans of all ages can play and learnabout LEGO Group values and ideas throughgames, stories, activities and experiences. LEGO.com now tops the list of family andchildren’s sites on the Internet. More andmore people are clicking their way toLEGO.com. In 2005 the website had an aver-age of 6,308,558 individual visitors (hits) amonth – which is 26% up on 2004.The average website visit lasts an average of 6-7 minutes. Shop at Home and LEGO Club online arethe two main sites under LEGO.com.BIONICLE, Racers, Make & Create and StarWars pages each attract about one millionusers a month. LEGO Factory is also climb-ing the popularity ladder. In December 2005www.LEGO.com again featured onHitWise’s Top 20 list of the world’s best web-sites for children.

LEGO ClubLEGO Club is for children in the 6-12 agegroup and has a membership of 2.3m. Allmembers receive a bi-monthly magazine andhave access to a special Internet website. Themagazine is published in English, German,French and Japanese. Through the LEGOClub, members can show each other picturesof their favourite building work and drawinspiration for future play.

In 2004 a new club offer was launched in theUS: LEGO BrickMaster, aimed at childrenaged seven years and upwards. The new offeris an option for the most enthusiastic mem-bers, who can have access to an even broaderrange of LEGO activities. Forthe first time, children canhave a selection of LEGOproducts supplied regularlyto their home address. Inaddition, they receivedetails of special competi-tions, information andbehind-the-scenes LEGOstories.

www.LEGOfactory.comThe LEGO Group now giveschildren the opportunity tobuild their own virtual modelsby computer – and have thephysical LEGO model sent bypost. At www.LEGOfacto-ry.com children (and otherbuilding enthusiasts) can buildvirtual LEGO models usingthe professional software

LEGO Community

Company profile 14

application, LEGO Digital Designer. Con-sumers can design and build precisely themodel they think is lacking from the officialLEGO range. Each builder then decideswhether he or she wants to buy the modelor simply exhibit it in the digital gallery forother visitors to admire.

The aim of the website is to bring a wholenew dimension to the experience of build-ing with LEGO bricks. If children are look-ing for advice or ideas, they can see inspira-tional material at the site posted by LEGOdesigners and adult LEGO fans.

LEGO Inside TourTwice a year it is possible to join a veryexclusive visit to the LEGO Group and beshown round the company. Enthusiastsfrom many different parts of the world takepart in these unique events. During the tour, visitors have close-quarterencounters with product developers,designers and modelmakers, who introducethe fans to a themed building competitionwith LEGO bricks. They also learn of thecompany’s history, culture and values.There is after-hours access to LEGOLANDand general access to parts of the companyotherwise closed to the public.

Adult Fans of LEGOA growing number of adult LEGO enthu-siasts have begun setting up groups to dis-cuss their LEGO hobby. They call them-selves “AFOLs” – “Adult Fans of LEGO”.Over a period of years, the LEGO Group

has actively developed relations with many“AFOL” groups, who have their own web-sites, organise public events, and take partin LEGO development projects. In 2005the LEGO Group announced its “LEGOAmbassador” programme for AFOLsworldwide. The purpose of this programmeis to expand mutually useful relationsbetween the LEGO Group and its loyal,talented and committed consumers.

Company profile 15

Research into the fields of play andlearning has always been an impor-tant LEGO Group activity – com-

bined with creativity it is referred to as“playful learning”. To advance this research,the Group works closely with severalresearch institutes throughout the world.The development of MINDSTORMSNXT, due to launch in autumn 2006, is anexcellent example of how collaborationwith the Massachusetts Institute of Tech-nology has resulted in a new, innovativeproduct.

LEGO EducationIn the Group’s educational division, LEGOEducation, playful learning is the focus ofmany products. But although the products of the LEGOEducation are based on the LEGO brick,the product range should not be mistakenfor toys for schools. They are in fact a widerange of options for teachers and pupils,providing a good introduction to the learn-ing of science concepts through practicalexercises. All the concepts behind the prod-ucts of the LEGO Education have beendeveloped in close collaboration with edu-cationists and teachers. The products haveproved their usefulness especially in subjectsin which pupils learn, for example, abouttechnical principles, the environment or IT.LEGO Education is involved in many pro-jects throughout the world often in con-junction with the local education author-ities.

FIRST LEGO LeagueFIRST LEGO League is a robotic tourna-ment for children and youngsters aged 9-14years. Teams are made up of 5-10 players,who compete against other teams in severalfields. The children build their own robots,based on the LEGO MINDSTORMSRobotics Invention System™. Tourna-ments are held in collaboration with the USnon-profit organisation FIRST (For Inspi-ration and Recognition of Science andTechnology). The partnership inspireschildren and encourages their interest inscientific and mathematical/technical sub-jects.The finals of the tournament in Atlanta,Georgia, in April 2006 saw 80 teams ofchildren competing from 30 countries.They had been selected from among the85,000 children who had taken part in thetournament.

Learning through play

Company profile 16

There’s a big differencebetween building only a tower

six bricks high ...

... and including all the possibil-ities you get when you build a

structure sideways three brickshigh.

The LEGO Group manufacturesbricks round the clock, seven days aweek.

During the moulding process, the plastic isheated to 232ºC until its consistency isabout that of dough. It is then injected intothe moulds at a pressure of 25-150 tons,depending on which element is being pro-duced. It takes seven seconds to cool andeject new elements. Thanks to the accuracyof the moulding process, only 18 elementsin every million produced do not meet thecompany’s high quality standard. Themoulds used in production are accurate towithin two-thousandths of a millimeter(0.002 mm).

All LEGO elements are fully compatible,irrespective when they were made duringthe period from 1958 to the present or bywhich factory.

LEGO products must satisfy all marketstandards, regardless of where in the worldthey have been manufactured. In otherwords, all products must be able to satisfyall safety standards on all markets. Thismeans that the LEGO Group’s own stan-dards are equal to the most rigorousrequirements in force anywhere in theworld.

915 million ways to combine six LEGO bricksWhen people used to visit us at the LEGOGroup, one of the things they were told wasthat there are 102,981,500 possible ways tocombine six eight-stud LEGO bricks of thesame colour. But one day the Group wascontacted by a professor of mathematicswho had calculated that this figure was toolow. With the aid of computer program-ming he had calculated that the exact figurewas 915,103,765.The discrepancy is explained by the factthat in the original method of calculation,the only possibilities counted were the onesthat eventually produce a column six brickshigh. But, of course, it is also possible tobuild the six bricks – for example – in achunk three bricks high. The difficulty inthe early 1970s was that a computer wasnot available to perform that calculation.The correct figure is therefore more than915 million possibilities.

How LEGO bricks are made

Company profile 17

● More than 400,000,000 children andadults will play with LEGO bricks thisyear.

● LEGO products are on sale in more than130 countries.

● If you built a column of about40,000,000,000 LEGO bricks, it wouldreach the moon.

● Approx. four LEGO sets are sold each sec-ond.

● The eight robots at work in the LEGObrick warehouse in Billund can move 660boxes of elements an hour.

● The King’s Castle at LEGOLAND Billundcost DKK 45,000,000 to build. The exter-nal decoration required 160 tons ofcrushed granite and 150 tons of boulders.The King’s Castle was build in only eightmonths – the fastest-built castle in Den-mark.

● The large Dockosaurus making up part ofthe water roller-coaster in LEGOLANDGermany required 90,750 LEGO ele-ments and weighs a total of 262 kg.

● The world’s children spend 5 billion hoursa year playing with LEGO bricks.

● There are 915,103,765 different ways ofcombining six eight-stud bricks of thesame colour.

● On average every person on earth has 52LEGO bricks.

● With a production of about 306 milliontyres a year, the LEGO Group is theworld’s largest tyre manufacturer.

● If all the LEGO sets sold over the past 10years were placed end to end, they wouldreach from London, England, to Perth,Australia.

● The largest model at LEGOLAND Wind-sor is the Technosaurus, which consists ofmore than one million bricks. And thesmallest? A pigeon on Trafalgar Square.

● In the manufacture of LEGO bricks themachine tolerance is as small as 0.002 mm.

Selected LEGO statistics

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Help us to protect our brand name:

● The LEGO brand name should always bewritten in capital letters.

● LEGO must never be used as a genericterm or in the plural or as a possessive pro-noun, e.g. “LEGO’s”.

● When the LEGO brand name is used aspart of a noun, it must never appear on itsown. It should always be accompanied by anoun. For example, LEGO set, LEGOproducts, LEGO Group, LEGO playmaterials, LEGO bricks, LEGO universe,etc.

● The first time the LEGO trademarkappears it should be accompanied by theregistration symbol ®.

Thank you for helping us!

LEGO® is a brand name and the property ofthe LEGO Group

© 2006 The LEGO Group

Using the LEGO brand name