The directors present the strategic report for the year ended 31 December 2024.

A summary of the results of the year's trading is given on page 9 of the financial statements.

The company is a distributor and wholesaler of a wide range of children's toys and accessories within the UK and Europe.

The company is a 100% subsidiary of Jaz Toys HK Limited, incorporated in Hong Kong.

On 12 August 2024, Jazwares established Jazwares Iberia, S.L. as a new subsidiary in Spain.

Although the company is reliant on renewals of licences in order to be able to sell their products, the directors and management team have long standing relationships with the licensor companies and consistently aim to prolong and strengthen the relationships.

The company must also ensure it is fully compliant with both UK and EU legislation, as there is a legal and financial risk if toys that are sold in the UK or the EU are not UK and EU compatible.

The company is exposed to a number of financial risks from its operating activities. The directors are responsible for ensuring that the business risks are actively managed. The business does not trade financial instruments or use financial derivatives. The principal risks are:

Currency risk - Due to the these global operations, fluctuations in foreign exchange rates result in both favourable and adverse impacts. However, the diversified nature of our currency exposures across geographies creates a degree of inherent risk mitigation lowering the overall volatility linked to currency risk. The company generally does not attempt to match assets and liabilities by currency and does not use derivative contracts to manage foreign currency risks in a meaningful way.

Credit risk - The company manages its credit risk by ensuring that it only engages with counterparts that have high credit ratings. The group sets and actively monitors limits for its customers based on reference checks and payment history and further protection is provided by credit insurance on certain customers.

Liquidity (cash flow) risk - The company manages its cash flow to ensure it can meet its obligations and requirements. Excess funds are transferred to the group treasury management company to optimise liquidity and investment returns, without impacting the company’s overall liquidity position.

Price risk - Regulation and worldwide price transparency continue to create pressure on gross margins. The company closely monitors both gross margins and overheads with the objective of achieving adequate shareholder returns.

The company's approach to risk management aligns with that taken at group level.

Jaz Toys UK Ltd invests in its ongoing development through marketing spend, sales incentives and cost-cutting initiatives. The company, with its counterparts in the group more widely, continually explores opportunities to license newly developed toy lines in order to drive business growth and development with a focus on increasing sales and maintaining profit margins. In order to support its current and future progress, the company has invested in headcount and staff development. The company is part of a wider global organisation that remains alert to developments in the toy industry responding effectively to both risks and opportunities in order to support ongoing development and future business performance.

The gross profit margins have decreased compared to the prior year due to a full year of the group's transfer pricing policy being in place, as well as cost increases. Plans are in place to increase sales in the coming year by working extensively with existing customers whilst actively seeking to win new business and acquire new licences.

The directors of the company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 and include a duty to promote the success of the company. These duties can be summarised as follows:

'A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

• the likely consequences of any decision in the long term;

• the interests of the company's employees;

• the need to foster the company's business relationships with suppliers, customers and others;

• the impact of the company's operations on the community and the environment; and

• the desirability of the company maintaining a reputation for high standards of business conduct’.

The following paragraphs summarise how the directors fulfil their duties.

As the company continues to experience strong growth, our business and our risk environment also become more complex. It is therefore vital that we effectively identify, evaluate, manage, and mitigate the risks we face, and that we continue to evolve our approach to risk management including long-term decision making. Alongside the principal risks and uncertainties set out above, we have access to the resources of a large global organisation to ensure that we monitor and maintain an effective oversight of the risks we face including those arising from regulatory changes. This includes a network of external consultants, specialists and advisors accessible across the global group. Our focus on risk management ensures compliance with the company’s ongoing legal and regulatory requirements.

As found throughout the Jazwares organisation, the company believes that it should “put people first, always.” Whilst the number of employees operating within the UK company is relatively small for its revenue levels when compared with other industries, we believe our employees and the culture they operate in are critically important to the company’s success. To continue to compete and succeed in a highly competitive market, it is crucial that we continue to attract, retain and motivate employees. To support these objectives, the company strives to maintain its corporate culture by being “more than the toys we make” and we remain committed to “putting people first”. We offer competitive compensation and benefits, support the health and wellbeing of our employees, foster an inclusive, diverse and engaged workforce and constantly turn our focus to developing talent throughout the organisation.

As a key requirement for building the company’s trade, the directors are aware of the need to foster strong relationships with suppliers, customers and other wider stakeholders in the business. The directors look to discharge these duties by engaging in regular dialogue with customers, suppliers and wider stakeholders. The company remains open to building and fostering new relationships with key stakeholders in the wider toy industry.

The company's aim is to ensure that the business is conducted in a socially beneficial and environmentally friendly manner. The company is party to the group’s “Jazwares Cares” charitable initiative that seeks to give back to communities through product donation, sponsorship, education-based programmes, and the giving of the time and talent of our people.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The drectors' review of the business performance and risk exposure is detailed in the Strategic Report.

The principal activity of the company is the distribution and wholesale of children's toys and accessories.

The company has one overseas branch, located in Paris, France.

The results for the year are set out on page 9.

During the year and the prior year the company did not declare a dividend to its parent company, Jaz Toys HK Limited.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, BKL Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Jaz Toys UK Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, EU safety legislation, anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraud manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to unrecorded liabilities. Audit procedures performed by the auditors included:

• discussions with the directors, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

• identifying and testing manual journal entries, in particular any journal entries posted with unclear rationale; and

• assessing management's ability to apply cut-off fairly and correctly due to group reporting restrictions.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

Jaz Toys UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 16A Crane Grove, Islington, London, N7 8LE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

In accordance with FRS 102 Section 1.12, the company has taken advantage of the disclosure exemptions. The main exemption taken is the preparation of a cash flow statement and disclosure of key management personnel remuneration.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The financial statements of the company are consolidated in the financial statements of Berkshire Hathaway Inc., the company's ultimate parent company. These consolidated financial statements are available from its registered office at 3555 Farnam Street, Omaha, NE 68131 and https://www.berkshirehathaway.com/2024ar/2024ar.pdf.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue represents sales of goods and commissions receivable excluding trade discounts and value added tax. Revenue is recognised when the goods are delivered or the service is performed to the extent that it is probable that economic benefits will flow into the company.

The company recognises revenue from the following major sources:

• Sales of goods

• Commissions receivable

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from commissions is recognised when the entity satisfies its performance obligations under the terms of the contract, typically when the underlying transaction giving rise to the commission is completed and the right to consideration is enforceable. Where the entity acts as an agent, only the net commission retained is recognised as revenue. Commissions receivable are measured at the transaction price, including variable consideration only to the extent that it is highly probable that a significant reversal will not occur.

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Property, plant and equipment are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the income statement.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Inventories comprise finished goods. Inventories are stated at the lower of cost and estimated selling price less costs to sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to sell is recognised as an impairment loss in the income statement. Reversals of impairment losses are also recognised in the income statement.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables cash and bank balances and amounts owed by group companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including trade and other payables and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the year.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The company does not have any key assumptions concerning the future, or other key sources of estimation uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

An analysis of the company's revenue is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Emoluments from this company for directors’ qualifying services are deemed to be incidental to their other operationally specific duties. No remuneration arrangements were adjusted when existing employees were appointed as directors.

All other required disclosures of amounts paid to or receivable by key management personnel or directors are deemed by the company to be exempt from disclosure.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Jaz Toys UK Ltd is within the scope of the OECD Pillar Two model rules, and Pillar Two legislation was enacted in the United Kingdom, the jurisdiction in which the Company is incorporated, which came into effect from 1 January 2024.

The entity applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to FRS 102 issued in July 2023.

The entity and its associated branches have not currently finalised its assessment for any taxes payable under Pillar Two for the United Kingdom. As the entity has an effective tax rate of 25% and it is not expecting any top-up taxes payable compared to the effective tax rate of 15% under Pillar Two.

Other receivables includes an amount of £25,770 (2023: £5,770) which is due after more than one year.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The shares have full voting, dividend and capital distribution rights.

At the reporting year end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The Group has taken advantage of the exemption available not to disclose related party transactions with companies that are wholly owned within the Group.

Jaz Toys HK Limited, incorporated in Hong Kong, was the company's immediate parent company at 31 December 2024.

Berkshire Hathaway Inc., incorporated and listed in the US, was regarded as the company's ultimate parent company at 31 December 2024.