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CONTENTS

INTRODUCTION …………………………………………………5

FOCUS ON GROWTH…………………………………………… 6

IDEA AND PRODUCTION……………………………………… 7

FACTS & FIGURES……………………………………………… 7

LEGO TIME LINE ………………………………………………. 8

HEALTH & SAFETY POLICY…………………………………. 16

PRODUCT QUALITY & SAFETY……………………………… 17

PROMISES……………………………………………………… 19-23

The Play Promise………………………………………….19

The People Promise………………………………………..19
The Partner Promise………………………………………20
The Planet Promise………………………………………...22

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 INTRODUCTION

It all began in 1932 ...

The founder, Ole Kirk Kristiansen, hit upon the LEGO® name in 1934. He took the
first two letters of the Danish words LEG GODT, meaning “play well”, and put them
together – quite unaware that one meaning of the word in Latin is ... “I put together”.
Today – many years later – “LEGO” is both the name and the idea behind the
company. Play is a key element in children’s growth and development, and play
stimulates the imagination, the emergence of ideas, and creative expression. It is
LEGO philosophy that “good play” enriches a child’s life – and its subsequent
adulthood. With this in mind, the LEGO Group has developed and marketed a wide
range of products, all founded on the same basic philosophy of learning and
developing – through play. True to its motto – Only the best is good enough – the
LEGO Group has emphasized the importance of high quality throughout its more than
75-year history, ensuring that consumers return to LEGO products again and again. At
the same time the LEGO system means that many thousands of building elements can
be easily combined in innumerable ways – and just as readily dismantled again. The
more LEGO bricks you have, the more fertile your creativity can become, and there
are hours of play in the LEGO brick that you don’t find elsewhere. Child’s play is an
ever-changing world, and the company’s product development departments therefore
work systematically with the evolution of familiar play themes and product lines
based on research among children and parents into things like play habits, family
patterns and housing conditions. Added to this is the fact that a combination of
systematize, logic and unlimited creativity activates learning through play in a very
special LEGO way which – in an age of increasing demands upon the child’s learning
and ability to solve complex problems – caters uniquely for tomorrow’s child. It is for
this reason that the LEGO system is frequently cited by many leading organizations
and individuals as an especially creative play material used in learning contexts by
institutions and schools throughout the world. The child of the future will have plenty
of things to play with. Consumer electronics is a tough competitor to traditional toys.
But the LEGO Group is in no doubt that the LEGO brick will continue in future to be
relevant to children of all ages. A world of imagination and total absorption. Putting
two LEGO bricks together is intuitive and delivers the spontaneous joy of creation
which can be supplemented but never replaced – by virtual experiences.

5
 FOCUS ON GROWTH

The LEGO Group has seen continued growth over the previous five years, and sales
have increased by double digit growth rates in the last few years. This has happened
in a global toy market characterized by stagnation throughout the last decade. The
LEGO Group expects continued growth in sales in the years ahead. The foundation
for this growth is a constant focus on the company’s core products and markets. On
this basis, seven growth initiatives have been defined:

• Grow market share in USA

USA is the world’s largest market for toys, and the LEGO Group has dramatically
increased its market share in recent years, to approximately five per cent. The LEGO
Group believes this share can be further increased in the coming years.

• Grow market share in Eastern Europe

The toy market in Eastern Europe is experiencing rapid growth, and the LEGO Group
aims to continue to expand its strong position on these markets.

• Seed “emerging markets”

The LEGO Group does not yet enjoy a strong market position in markets such as
China, Mexico, Brazil and India. These markets are expected to see strong growth in
the future, and the LEGO Group plans to invest in developing them.

• Seed new concepts

In addition to ongoing product development based on the existing core portfolio, the
LEGO Group will develop innovative new products which are “obviously Lego®
products, but never seen before”. An example of such new products is the LEGO
Games board-game series launched in 2009.

• Expand “direct to consumer” activities

The LEGO Group currently has direct contact to consumers through its own sales
channels, clubs, collaboration programs, etc. The aim is to get even closer to
consumers through greater contact and by expanding offers available direct to
consumers.

• Expand LEGO Education

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The aim is to create growth in the area of educational materials for preschools,
schools and educational institutions all over the world.

• Develop digital business

The LEGO Group currently operates on digital platforms through the LEGO.com
website and video games. Digital business will be further expanded, in particular
through LEGO Universe – the first MMOG (massively multiplayer online game) from
the LEGO Group, to be launched in the second half of 2010.

IDEA AND PRODUCTION

Concept and product development takes place primarily at the company’s Billund
headquarters – but the LEGO Group also has listening posts in Munich, Los Angeles
and Tokyo in order to monitor the latest trends. The creative core is made up of 120
designers representing about 15 different nationalities. Most of the designers have
trained at design or art schools in various parts of the world. The LEGO Group,
however, does not formally stipulate that its designers must have such training;
selection is based on hands-on work and face-to-face interviews. LEGO® bricks are
manufactured at the Group’s own factories in Denmark, Hungary, Czech Republic
and Mexico. The locations have been selected in order to be close to the Group’s most
important markets in Europe and the USA. In addition, elements and finished
products are procured from external suppliers. Approx. 23 billion LEGO elements are
made every year in Billund – equivalent to approx. 2.4 million elements an hour or
40,000 a minute. In 2010 the LEGO Group expects to achieve a global production of
more than 31 billion elements – equivalent to 60,000 elements minute or 1,000
elements every second. There are about 3,900 different elements in the LEGO range –
plus 58 different LEGO colors. Each element may be sold in a wide variety of
different colours and decorations, bringing the total number of active combinations to
more than 7,500.

FACTS & FIGURES

• More than 400 million children and adults will play with LEGO bricks this year
• LEGO products are on sale in more than 130 countries
• If you built a column of about 40,000,000,000 LEGO bricks, it would reach the
moon
• Approx. seven LEGO sets are sold each second
• Approx. 19 billion LEGO elements are made every year in Billund – equivalent to
Approx. 2m elements an hour or 36,000 a minute.
• If all LEGO sets sold in a year were stacked on top of each other, they would fill a
foot -
Ball field to a height of 77.8 m
• Laid end to end, the number of LEGO bricks sold in a year would reach more than
five

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Times round the world
• On average there are 62 LEGO bricks for every person on earth
• Since BIONICLE figures first appeared in 2001, more than 150 million BIONICLE
“Beings” have been born. That’s more than the population of France and Britain put
together
• The eight robots and 15 automatic cranes that work in the LEGO warehouse in
Billund
Can shift 660 crates of bricks in and out every hour
• The world’s children spend 5 billion hours a year playing with LEGO bricks
• With a production of about 306 million tyres a year, the LEGO Group is the worlds
Largest tyre manufacturer
• In the manufacture of LEGO bricks the machine tolerance is as small as 0.002 mm.

LEGO TIME LINE

2010
The LEGO Group launched its first MMOG (massively multiplayer online
game) called LEGO Universe in October 2010.

TimeLine 2000 - 2009

2009
The LEGO Group is now the world’s fifth largest toy manufacturer in terms
of sales.
Warner Bros. and the LEGO Group announce plans to develop the first-
ever feature film based on LEGO bricks and icons. The LEGO Group
announces a multi-year partnership with Disney Consumer Products
obtaining exclusive rights to construction toys based on the entire
portfolio of Disney and Disney Pixar properties. A completely new product
line – LEGO Games – is launched.

2008
The LEGO brick celebrates its 50th anniversary. While maintaining
production in production sites in Eastern Europe, Mexico and Denmark, the
LEGO Group decides to take back the majority of its production so that
most LEGO products will be produced in house.

2007
The LEGO Group celebrates its 75th anniversary on 10 August in good

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shape. LEGO Club has approx. 2.6 million members. All distribution for the
European and Asian markets is gathered in one distribution center in the
Czech Republic. The LEGO Group enters a license agreement with Lucas
film Inc. on the production of LEGO Indiana Jones sets. The LEGO Star
Wars™ Millennium Falcon is the largest LEGO model so far.

2006
4922 employees. The LEGO Group announces plans to outsource major
parts of production to external partners. The LEGO plant in Willisau
(Switzerland) is closed.

2005
The LEGOLAND parks are sold to Merlin Entertainments. The parent
company of the LEGO Group – KIRKBI – buys a share of Merlin
Entertainments. Today KIRKBI owns approx. one third of Merlin. The LEGO
Group posts a profit again. The company is back on track.CEO Jørgen Vig
Knudstorp launches a five-year strategy plan (Shared Vision) for the LEGO
Group.

2004
In January, the LEGO Group announces the results of 2003 – a huge deficit.
Owner and CEO Kjeld Kirk Kristiansen heads up the building of an action
plan to turn around the company. In October he appoints Jørgen Vig
Knudstorp as new CEO of the company. The year ends with another huge
deficit due to heavy write-downs.

2003
The LEGO Group signs the UN Global Compact initiative. For LEGO
minifigures who represent real-life persons or characters from books,
movies or TV series, the yellow facial coloring is replaced by a more
authentic skin colour, facial expression and hair style. The first BIONICLE
film, Mask of Light, is released and proves to be a big success.

2002
The brand statement "Play On" replaces "Just Imagine..."The LEGO DUPLO
brand is replaced by the LEGO EXPLORE brand covering all pre-school
activities. LEGO Brand Retail stores open in Cologne, Germany
(September), Milton Keynes, England (November) and Moscow, Russia
(December).

2001
LEGO My World receives an important award in Germany for the best
software learning product at the book fair in Frankfurt. LEGO Serious Play
is unveiled in the autumn. Deficit is again turned to profit for LEGO Group.

2000
The company mission and fundamental beliefs are being revised to
"Children are our role models..." The British Association of Toy Retailers

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names the LEGO brick "Toy of the Century". The LEGO Group achieves its
budgeted surplus of DKK 500 million and employees are rewarded with a
bonus and a global party.

TimeLine 1990 - 1999

1999
LEGOLAND California opens in Carlsbad, southern California, in March.
LEGO Group undergoes restructuring. The changes result in the loss of
1000 jobs.
Mitchel Resnick of the Massachusetts Institute of Technology (MIT) is
named as the new LEGO Papert Professor of Learning Research. The LEGO
brick is named as one of the "Products of the Century" by Fortune
Magazine.

1998
The brand statement "Just Imagine..." is introduced into the LEGO
universe.
For the first time ever, LEGO Group faces a deficit. In April the new LEGO
logo is presented. It is a graphically "tightened" version of the logo used
for the past 25 years.

1997
For the first time, a CD-ROM containing building instructions is included
with a model set. The set also contains a Bar Code Truck with a
programmable bar-code reader.
A 700 m2 LEGO Imagination Center is opened on 13th October in Disney
Village, Florida. The first LEGO MINDSTORMS Learning Center opens at the
Museum of Science and Industry in Chicago, USA. The names PRIMO and
DUPLO are changed to LEGO PRIMO and LEGO DUPLO on 1st January.

1996
www.lego.com is launched. LEGOLAND Windsor, the first LEGOLAND family
park outside Denmark, opens on March 29. New development department,
SPU Darwin, is established. Its work includes the development of software
based on and related to LEGO products. LEGOLAND Billund has now had
25 million visitors since its opening on in 1968.

1995
Godtfred Kirk Christiansen, son of the company's founder, passes away on

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13th July. LEGO Belgium and LEGO Netherlands become LEGO Benelux.
Weekly LEGO programmers on national television in Latvia and Lithuania.
LEGO happenings and exhibitions in Latvia, Peru, Hungary, Switzerland,
Denmark, Greenland, the USA, Canada, Italy and Ecuador.

1994
LEGO Mexico established. First ever TV campaign in China. The UNHCR
uses LEGO mini-figures on posters around the world. The "Travel in
Space", arranged by LEGO USA, opens in Space Center, Houston. E-mail is
taken into use between LEGO Japan and Billund.

1993
Building happening on the Red Square in Moscow in co-operation with the
department store GUM. LEGO South Africa re-established. LEGO Kid's
Wear launched.

1992
A Guinness record in railway line construction is set - 545 metres of LEGO
rails with three model locomotives. The world's largest LEGO Castle is built
on Swedish television. Over 400,000 LEGO bricks are transformed into a
castle 4.45 m x 5.22 m castle, measured for the Guinness Book of
Records. The Second LEGO World Cup Final is held in Billund in August
with 32 children participating from 11 countries. LEGO Japan established.
LEGO Hungary established. For the first time, a larger scale introduction of
LEGO products is made in the People's Republic of China. First LEGO Show
in Russia. LEGO Imagination Centre is opened in Mall of America in
Blomington, Minneapolis, USA.

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TimeLine 1980 - 1989

1989
The educational products department changes its name to LEGO Dacta.
The word "dacta" derives from the Greek word "didactic", meaning "the
study of the purpose, means and substance of learning and the learning
process". Dr. Seymour Papert becomes LEGO Professor of Learning
Research. The first LEGO Dacta Centre opens in LEGOLAND

1988
Kjeld Kirk Kristiansen introduces the LEGO Group vision (see else where on
this web site). The first official LEGO World Cup building championships
are held in Billund in August. LEGO Canada established. The exhibition
"The Art of LEGO" tours the United Kingdom.

1987
The brick logo is developed. Almost 6000 employees. The LEGO office in
South Africa is closed.

1986
The LEGO Group is granted the title "Purveyor to Her Majesty the Queen"
on 16th April (the Birthday of H.M. Queen Margrethe of Denmark). Godfred
Kirk Christiansen resigns as chairman of the board of LEGO System A/S
and LEGO Overseas.

1985
The LEGO Prize is founded in April. It is an international annual award of
DKK 750,000 (increased in 1989 to DKK 1,000,000) for exceptional efforts
on behalf of children. Procurement department established in Korea.
Approx. 5000 employees, 3000 of these in Billund. Collaboration with
Professor Seymour Papert and the Boston M.I.T. begins.

1984
LEGO Brazil established. LEGO Korea established.

1982
LEGO South Africa established. The LEGO Fiction department established.

1980
The Educational Products Department is established. The DUPLO rabbit

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logo is introduced. According to a survey, 70% of all Western European
families with kids

TimeLine 1970 - 1979

1979
Kjeld Kirk Kristiansen is appointed President and Chief Executive Officer of
INTERLEGO A/S. The DUPLO rabbit logo is registered as a trademark. LEGO
Singapore established.

1976
LEGOLAND Sieksdorf is closed. Sculpturer Robert Jacobsen's "LEGO" is
revealed in Billund.

1975
LEGO USA moves from Brookfield to Enfield, Connecticut. Procurement in
the US established. The LEGO Group has 2500 employees. LEGO Portugal
established. English becomes official corporate language.

1974
LEGO Spain established. LEGO Overseas A/S established. LEGO Futura ApS
established. The Mount Rushmore replica is created in the LEGOLAND
Park.The LEGOLAND Park in Billund receives visitor no. 5 million. The Esso
Motor Hotel (built 1968) in Billund is bought and the name changed to
Hotel Vis-à-Vis.

1973
A single new LEGO logo replaces the various logos that have been used
until now. The new LEGO logo unifies all the company's products under
one banner. First sales to Eastern Europe (Hungary) LEGO USA established
in Brookfield, Connecticut. LEGO Portugal established. German
psychologist Karin Grossmann writes the book "Mach mehr aus LEGO". It is
a study of 200 children and their play with LEGO bricks.

1972
The license agreement with Samsonite ends in the US. The Information &
Public Relations department established.

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TimeLine 1960 - 1969

1968
LEGOLAND® Billund opens its gates on 7th June and attracts 625,000
visitors in its first season, 3000 on the opening day. The first computer in
LEGO Group - an NCR 390 for pay administration. The machine cost
85.000 Danish Crowns.

1967
The LEGOLAND Band is established. There are now 218 different LEGO
elements (not counting colour variations) and between 18 and 19 million
LEGO sets are sold during year.

1965
First sales in Spain. More than 600 employees in Billund.

1964
Model sets, complete with building instructions, are launched as a natural
addition to existing Basic and Supplementary sets. First sales to the
Middle East (Lebanon)
LEGO bricks are exhibited at the Danish pavilion at the New York World
Fair.
Production plant LEGO Werkzeugbau GmbH in Hohenwehenstedt,
Germany opened.

1963
Godfred Kirk Christiansen presents the company to the ten product
characteristics:

1. Unlimited play potential

2. For girls and for boys
3. Fun for every age
4. Year-round play
5. Healthy, quiet play
6. Long hours of play
7. Development, imagination, creativity

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 8. The more LEGO, the greater the value
9. Extra sets available
10.Quality in every detail

1962
Sales start in Singapore, Hong Kong, Australia, Marocco and Japan.
LEGO Australia established. The first personnel manager hired.

1961
The LEGO Group invents the wheel! It is marketed in the following year.
The range comprises 50 sets, 15 vehicles and various loose elements.
Sales start in the US and Canada via a license agreement with Samsonite
Corp.
first ever strikes at LEGO (one or two days). LEGO Italy established.
Godfred Kirk Christiansen buys a small Piper Apache plane (room for two
pilots and three passengers) in association with Sonderjyllands Flyselskab
(later to become Cimber Air). A landing field is established just outside
Billund.

1960
The wooden toy warehouse is destroyed by fire. Production of wooden
toys is discontinued entirely.

TimeLine 1950 - 1959

1959
Futura, the product-development department, now has five members of
staff.
A market analysis department is established. Photography department
established.
LEGO France, British LEGO Ltd., LEGO Belgium and LEGO Sweden are
established.
The machines in the production are now so automatic that one operator
can handle two machines at a time! LEGO gives the municipality of Billund
approx. 20 acres of land and 50.000 Danish Crowns for a sports ground.

1955
After further developing the LEGO Bricks, the company launches the
revolutionary "LEGO System of Play“. The first real export of LEGO begins.

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First country is Sweden. Godfred Kirk Christiansen demonstrates the new
product at a toy fair in Nuremberg, Germany.

1954
The word LEGO is officially registered in Denmark on 1st May.
Godfred Kirk Christiansen travels to England and meets a purchasing
agent on the ferry. They talk about toys. The agent thinks that toys lack
idea and system. This spawns the LEGO System idea in the mind of GKC.

1953
The Automatic Binding Bricks get a new name: "LEGO Mursten" ("LEGO
Bricks").The name LEGO is printed inside all bricks. The first application for
registration of the trademark. The Danish registration is accepted on the
1st of May 1954.

1951
The first ever film about LEGO is shot. The photographer is Chistian Lund,
and the film is black and white with no sound. Plastic toys account for half
of the company's output.

1950
Godtfred Kirk Christiansen, son of the founder, Ole Kirk Kristiansen, is
appointed Junior Vice President the day he turns 30.

TimeLine 1940 - 1949

1949
The company produces around 200 different plastic and wooden toys,
including Automatic Binding Bricks, a forerunner of the LEGO bricks we
know today. They are sold in Denmark exclusively. The first packaging
with four colours is introduced.

1947
The LEGO Group is the first in Denmark to buy a plastic injection-moulding
machine for toy production. The machine costs 30.000 Danish Crowns. By
comparison, the revenue of the firm this year is 450.000 Danish Crowns.

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1942
The LEGO factory burns to the ground; however, the production of wooden
toys is quickly resumed.

1940
Denmark occupied by the Germans. Godfred Kirk Christiansen does not
travel to Germany to study as planned. Instead, he becomes manager at
LEGO.

TimeLine 1932 - 1939

1939
The shop now has 10 employees.

1934
The company and its products now adopt the name LEGO, formed from
the Danish words "LEg GOdt" ("play well"). Later, it is realized that in Latin
the word means "I put together". The firm has 6-7 employees. Ole Kirk
places the following motto on the workshop wall: "Only the best is good
enough".

1932
Ole Kirk Kristiansen, master carpenter and joiner, establishes his business
in the village of Billund, Denmark. His firm manufactures stepladders,
ironing boards, stools and wooden toys. His son, Godtfred Kirk
Christiansen, starts working in the business at the age of 12.

HEALTH & SAFETY POLICY

Objective

The Occupational Health & Safety policy shall ensure that all activities of the LEGO
Group are planned and executed in accordance with a healthy and safe working
environment. Compliance with national and international legislation and other
standards which the LEGO Group has adopted is considered a minimum requirement.

The LEGO Group Way

• Safety: The LEGO Group plan and carry out all activities in a safe way for all
employees. Through ongoing workplace assessments, we strive to minimize
all harmful exposure to our employees.
• Health: The LEGO Group wishes to stimulate our employees’ well being and
opportunity to live a healthy life. It is the responsibility of the LEGO Group to
provide the framework for healthy working conditions, through selected health
promoting initiatives.
• Work Planning: In the LEGO Group we plan the work of the individual in a
way which accommodates a good balance between demands and resources to

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 minimize stress among employees. The demands towards the performance of
each employee shall match the personal resources available.
• Improvements: The working environment is to be improved continuously.
Through the work with Occupational Health and Safety Management in
accordance with OHSAS 18001 and through an annual employee survey we
will evaluate the results achieved compared with targets and define new yearly
goals for improvement of the working environment. The results will be
monitored and evaluated on a quarterly basis. Each employee has the right and
duty to call attention to circumstances which in his/her opinion are
unreasonable or harmful. Reporting should take place to the person
responsible for local health & safety or through line management.

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 PRODUCT QUALITY & SAFETY
The LEGO Group has focused on quality in all its activities since its foundation in
1932.For the LEGO Group, quality encompasses both product quality and ethical
values, and this attitude is deeply anchored in our fundamental beliefs – and our
vision and mission. The LEGO Group strives to exceed our customers’ expectations
of our products and service, and general experience with the LEGO brand. Our
quality procedures are set forth in our global quality management system.

The trust the world now shows the LEGO Group has been built up by never
compromising on quality, either in terms of product safety or responsibility to
employees, customers, suppliers, consumers and the local environment. As a world
leader in the area of quality experiences, service and products, we focus on the
customer's perception of quality.

LEGO Group aims to lead on quality

The LEGO Group aims to be a leader in all of the company's areas of business. Play
materials from the LEGO Group therefore fulfill all national and international
requirements governing play materials, as a minimum. In addition to fulfilling all
regularity requirements, the aim is for all LEGO products to meet the reasonable
quality and safety expectations of consumers, taking into account design, habits of
play and predictable misuse.

All LEGO play materials produced for the European market carry the EU CE label.
This label indicates that the LEGO Group guarantees that the product fulfils the
European Toy Safety Directive. Products manufactured for the US market fulfill the
Code of Federal Regulation, Consumer Product Safety Improvement Act (CPSIA)
and ASTM F963 standard. In practice, this means that all LEGO play materials must
fulfill the most stringent regulatory requirements in the industry.

The LEGO Group primarily uses ABS plastic in its products. This material provides
the unique connective grip, high gloss and colour stability properties of LEGO Group
products. All raw materials and products are tested in internal and external
laboratories.

The 5 targets are:

• Zero product recalls
• Top ten on employee safety
• Support learning to 101 million children
• Explore the opportunity of becoming fully reliant on renewable energy
• Work towards elimination of waste

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20
The Play Promise
Consumer Satisfaction
Consumers are becoming more and more likely to recommend toothers the LEGO
product or experience that they have just had. This is reflected in the Net Promoter
Score Index which has increased by 6 index points in 2009 and ended at index 126.
This is 6 index points above the 2009 target set in 2008 as stated in the Progress
Report 2008. The Consumer Complaint Call Rate ended at 0.093% for 2009, which is
within the 2009 target and a significant improvement compared to the 2008 level.
Consumer Information
The parents’ site on LEGO.com is established to communicate relevant and up-to-date
information to parents about LEGO products and child development. The site also
offers parents the option to ask questions and discuss LEGO products or topics with
other parents or the LEGO Group. The parents’ site experienced a growth rate in
average monthly unique visits of 23% compared to 2008 and ended at index 123,
which is well above the target of index 110 for 2009.
Product Safety
The LEGO Group is proud of its quality standards and controls. However, in 2009 a
voluntary recall was made by the LEGO Group. The product in question is a Power
Function Remote Control that poses a thermal burn hazard to users if the batteries
inside overheat. A total of 2,250 remote controls had been sold and the product had
been distributed only via the LEGO web shop and the Shop at Home catalogue from 8
April 2009 to 6 May 2009. The LEGO Group has received 4 reports of the remote
control heating up after batteries were inserted. No injuries have occurred. The recall
was carried out as children’s safety must never be put at risk when playing with
LEGO products. The target of zero recalls will continue to be a high focus target for
the LEGO Group.

The People Promise

Employee Survey
It is the ambition of the LEGO Group that all employees in the company feel that they
hold an extraordinary job in an extraordinary company. Making the experience at
work extraordinary is a task that requires the attention of the individual employee, all
people leaders and the company. The annual employee survey showed that the LEGO
Group maintained its high scores in employee satisfaction. The picture drawn from
the employee survey is of a global workplace in which – like last year - the employees
at well established LEGO locations are very satisfied. This picture is now extended to
also include the new LEGO locations. The three new production sites in Mexico,
Hungary and the Czech Republic have been successfully integrated into the LEGO
Group. Not only were the response rates in Mexico, Hungary and the Czech Republic
high, but employees in these countries are also very positive towards their new
workplace. In the coming years, the LEGO Group will maintain a strong focus on
continuous improvement, with focus on openness, trust and content of daily work to
secure the ambition of extraordinary jobs in an extraordinary company. To ensure
equal opportunities, the LEGO Group has set a target for the percentage of female
promotions to the Directors+ group (corresponding to the upper two tiers of
management). The target for 2009 was not met and there will be increased focus to
meet the target in 2010. The LEGO Group was among the first companies to sign a

21
charter to increase equality in management by promoting the role of women in
management; a charter initiated by the Danish Ministry of Gender Equality.
Health and Safety
The sick leave percentage for the LEGO Group ended at 2.9% for 2009 which is
within the target for 2009 and 0.1 percentage points better than in 2008. The LEGO
Group experienced 61 accidents with absence in 2009 equivalent to a frequency of 4.8
injuries per million working hours. This is a deterioration of the frequency by 0.4
compared to 2008. The absence rate due to injuries did not meet the 2009 target and
ended at 0.51 hours per 1,000 working hours (target 2009 = 0.3 hours per 1,000
working hours). The LEGO Group aims at being a world-class company on employee
safety corresponding to a frequency of 0.6 injuries per million working hours in 2015.
To meet this ambitious 2015 target, an improvement of approximately 90% compared
to the 2009 result must be achieved within the next five years. One of the initiatives to
meet the 2015 target is continuous use of the LEGO Serious Play Health & Safety
program to avoid accidents. The Health & Safety program is based on the LEGO
Serious Play concept and gives a good understanding and a clearer picture of where
the right initiatives have already been taken and where new initiatives are needed.
Read more in The Brick. According to the health & safety policy of the LEGO Group,
all LEGO facilities with more than 100 employees must be OHSAS 18001 certified.
In 2009, the last sites established in 2008 were certified according to the plan.
Certification now covers 94% of all employees and the global OHSAS 18001 setup is
running according to the policy.

The Partner Promise

Customer Pulse
Compared to last year, the Customer Pulse scores are at the same high level or above.
The Customer Pulse scores on marketing, partnership and value are all above the
scores from last year.
Code of Conduct
The LEGO Group has comprehensive procedures for Code of Conduct which applies
to the LEGO Group sites and the company’s suppliers and licensing partners. The
LEGO Group focuses Code of Conduct audits on Active First Peer Suppliers with
Own Production (“AFPSOP”) (i.e. excluding trade agencies) located in high and
intermediate risk countries. In 2009, 96% of suppliers in this category have been
audited. Two suppliers were not audited according to plan as a planned exit of one
supplier was postponed, and a new supplier was accepted late 2009. In 2010, the
LEGO Group will audit all AFPSOPs located in high risk countries. Regarding
AFPSOPs located in intermediate risk countries from 2010, the preceding audit result
will decide the frequency of the audit. AFPSOPs located in intermediate risk countries
and with a high performance in the preceding audit (2009) will be audited biennially.
AFPSOPs located in intermediate risk countries and with a low performance in the
preceding audit (2009) will be audited annually. The audits are conducted by a third
party verification company. From 2009, even more effort has been put into allocating
enough time for each audit and on following up more frequently on the audit result,
aiming at quicker and more thorough improvement. The LEGO Group has been
committed to the ICTI (International Council of Toy Industries) Care Process since 1
January 2006 (Date certain commitment). The ICTI Care Process is the international
toy industry’s ethical manufacturing program to promote ethical manufacturing

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through a monitoring program for the participating factories with focus on China,
Hong Kong and Macau. Process.

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Product Quality
Due to restructuring of the organization, only 2 quality system audits at suppliers have
been conducted in 2009 compared to 23 audits in 2008. The LEGO Group is
continuously supervising product quality. At Asian part suppliers, the LEGO Group
regularly inspects parts, and at finished goods suppliers the company inspects
products and the environment in which they are produced on a weekly basis. At
European part suppliers, outgoing and incoming inspection is made, and at the
finished goods suppliers, the LEGO Group carries out weekly inspections.

The Planet Promise

The change of the geographical presence of the LEGO Group due to the decision in
2008 to in source the majority of manufacturing, combined with a considerable
increase in production, are the main reasons behind large changes in the figures
related to the Planet Promise. Direct comparison between the years is therefore not
always relevant. However, the fact that a higher portion of the production is now in
house means that it will be easier to work on improvement of e.g. water and energy
consumption used for manufacturing. According to the environmental policy of the
LEGO Group, all LEGO production facilities must be certified according to the
environmental standard, ISO 14001. In 2009, the last sites established or acquired in
2008 were certified according to plan and the global ISO 14001 setup is now running
according to the policy. The 2009 target on energy efficiency was reached. A decline
in the efficiency was expected for the year due to expected in sourcing of energy
intensive production. Energy efficiency is in focus and is part of the initiatives that
have been given even higher priority based on the CO² mapping made in 2008. The
ambition is to gain 10% efficiency by the end of 2010 compared to 2007. In 2009, the
LEGO Group registered 7,970 tons of waste. The percentage of recycled waste
improved from 69 percent in 2008 to 88 percent in 2009. This is measured based on
the total registered amount of waste. Non-recycled waste equals 977 tons in 2009 of
which 48% is incinerated, 44% is sent to landfill and 8% is electronic or hazardous
waste.
We care and share
The LEGO Group considers play a decisive element of children’s development.
Children learn through play, and play stimulates their creativity, motor skills and
ability to solve problems. Unfortunately, more than 1 billion children worldwide grow
up in poverty and have limited possibilities of play. The LEGO Care and Share
program has been established driven by the wish to help some of these children. By
means of donations of LEGO elements, it is the LEGO Group’s and the LEGO
Foundation’s wish to provide these children with play material which, besides fun
play also supports their development. The LEGO Group supports a large number of
initiatives all over the world through product donations. Most donations consist of
LEGO Charity boxes with mixed contents of LEGO elements.
Care for Children in Need
The LEGO Care for Children in Need program supports the LEGO Group mission:
“To inspire and develop the builders of tomorrow”. In 2009, LEGO Charity donated
products to approximately 400 projects worldwide – the largest of these in Jordan,
Thailand, Burma, Poland, Guatemala, South Africa, Vietnam, Brazil, Russia and
Korea. Several of these projects were carried out in collaboration with the local
Danish Embassy or with charitable organizations, e.g. SOS Children’s Villages and

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Save the Children. In 2009, 8,276 LEGO Charity boxes were distributed to two age-
groups (DUPLO Play to the pre-school children and LEGO Play to children of school
age).

Each box contains around 12 kilos of various LEGO elements. Furthermore, more
than 75,000 ordinary LEGO boxes and other LEGO related presents were distributed.
The total value of the 2009 donations is estimated at approximately DKK 28 million
calculated in bulk prices, including donations in Denmark worth approximately DKK
5 million. The LEGO Charity boxes are packed in Billund, Denmark, mostly by
retired LEGO employees who contribute greatly with their efforts.
Care for Education
The LEGO Care for Education program includes a specially designed LEGO
Learning System for schools. The program consists of monetary donation from the
LEGO Foundation and LEGO Education materials. Focus is on already existing
schools in OECD countries where the aim is to secure the development of learning
skills at a higher level than that existing today. In order to be able to document that
the LEGO Education concept makes a difference, impact studies are initiated. At
present, this is done in Mexico, South Africa and Brazil. In 2009 the LEGO Group
and the LEGO Foundation supported the two following major projects: South Africa –
Developing Talents through Creative Play (2009-2013) the project is funded by the
UBS Foundation with special support from the LEGO Foundation. The project is run
by the LEGO Education partner in South Africa, Hands-On Technology. The purpose
of the project is to fully implement a LEGO Education solution in 25 primary schools
in a township near Pretoria. This implies teacher training in the use of LEGO
Education products and learning philosophy. Each year five new schools will be
added to the project. By the end of 2013, the project will have reached 1,000 teachers
and nearly 40,000 students. Read more in The Brick. Brazil – Brick by Brick, the
Brazil we want (ongoing from 2008) Launched in September 2008 in São Paulo,
Brick by Brick involves educational content from Brazil. Based on a large donation of
LEGO Charity boxes, Edacom (the LEGO Education partner in Brazil) has
implemented a project with youth centers to give young people an opportunity to
express what would be the Brazil of their dream. In addition, Edacom is providing
educational content (ZOOM Magazines) and LEGO MINDSTORMS Robotic sets.

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Roll No. Name
PF1021 PARESH PRAJAPATI
PF1022 MUZAMMIL SAYED
PF1023 SENTHIL NATHAN
PF1024 JATIN SHAH
PF1025 LALMEEYA SHEKH
PF1026 SAPNA SETTY
PF1027 CHANDRAKANT THORAT
PF1028 KARTIK TRIVEDI
PF1029 YASH VORA

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