Slide 1: Q2 2022 Earnings
Q2 2022 Earnings July 19, 2022
Slide 2: Safe Harbor
Safe Harbor Certain statements in this presentation contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be identified by the use of forward-looking words or phrases, include statements relating to: our business
Slide 3: Supplemental Financial Data: Use of Non-GAAP Financial Measures
Supplemental Financial Data Use of Non-GAAP Financial Measures The financial tables accompanying this presentation include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit, Adjusted net earnings and Adjusted net earnings per diluted share, which exclude,
Slide 4: Investing to Grow: Hasbro Brand Blueprint
Investing to Grow: Hasbro Brand Blueprint 4
Slide 5: Creating the World's Best Play & Entertainment Experiences
Creating the World’s Best Play & Entertainment Experiences Brand Blueprint Industry-Leading Maintain Guidance Leadership Gaming Portfolio for FY22 • Revenue growth in Consumer Products • Hasbro’s Total Gaming Portfolio up 2%, • 2022 Guidance and Wizards & Digital Gaming up 4% absent FX • Low-single
Slide 6: Q2 2022 snapshot
Q2 2022 $1.34B Net Revenues up 1%; up 4% absent FX snapshot As Reported $219.1M Operating Profit As Adjusted* $241.0M up 14% Net As Reported $142.0M Earnings As Adjusted* $160.6M up 10% Earnings As Reported $1.02 per diluted share Per Share As Adjusted* $1.15 per diluted share EBITDA As Reported $28
Slide 7: YTD 2022 snapshot
YTD 2022 $2.50B Net Revenues up 3%; up 5% absent FX snapshot As Reported $339.1M Operating Profit As Adjusted* $382.8M down 1% Net As Reported $203.3M Earnings As Adjusted* $240.0M down 15% Earnings As Reported $1.46 per diluted share Per Share As Adjusted* $1.72 per diluted share EBITDA As Reported
Slide 8: Announcements & Highlights
2022 ANNOUNCEMENTS PREMIERING & HIGHLIGHTS SEPTEMBER 27 MARCH 2023
Slide 9: Second Quarter Net Revenue & Operating Profit Performance
Second Quarter Net Revenue & Operating Profit Performance NET REVENUES Q2 2022 OPERATING PROFIT +>100% as reported +14% +1% as adjusted* $1,322 $1,339 2021 $241 $212 $219 2021 Adjusted* 2022 $ Millions, unaudited 2022 Adjusted* $77 2nd Quarter Growth in Franchise Brands, Partner Brands & Emerging Wi
Slide 10: Six Months Net Revenue & Operating Profit Performance
Six Months Net Revenue & Operating Profit Performance NET REVENUES YTD 2022 OPERATING PROFIT -1% +51% as adjusted* +3% as reported $2,437 $2,502 $386 $383 $339 2021 2021 Adjusted* $224 2022 $ Millions, unaudited 2022 Adjusted* YTD 2022 Growth in Franchise Brands, Partner Brands & Emerging Brands Wiz
Slide 11: Second Quarter & Six Months Brand Portfolio Performance
Second Quarter & Six Months Q2 PERFORMANCE Brand Portfolio Performance FRANCHISE BRANDS MAGIC: THE GATHERING, MY LITTLE PONY, PEPPA PIG, and Q2 Q2 % YTD YTD % PLAY-DOH grew for the quarter 2022 2021 Change 2022 2021 Change PARTNER BRANDS Franchise Growth driven primarily by Total Brands1 $744 $677 +
Slide 12: Second Quarter 2022 Major Expense Items
Second Quarter 2022 Major Expense Items % CHANGE Q2 2022 Q2 2022 Q2 2021 YOY % OF REVENUE NOTES Revenue growth; Higher freight and Cost of Sales $412 $345 +19.3% 30.7% input costs pressures as forecasted; Pricing increases began Q2 22 Program Production Lower content deliveries within the $81 $111 -
Slide 13: Six Months 2022 Major Expense Items
Six Months 2022 Major Expense Items Six Months Six Months % CHANGE Six Months 2022 2021 YOY % OF REVENUE NOTES Revenue growth; Higher freight and Cost of Sales $745 $635 +17.3% 29.8% input costs pressures as forecasted Program Production Higher content deliveries 1H 22 vs. 1H $219 $208 +5.3% 8.8% Co
Slide 14: Wizards of the Coast & Digital Gaming Segment (Q2)
Wizards of the Coast & Digital Gaming Segment NET REVENUES Q2 2022 OPERATING PROFIT +3% +17% $406 $420 $226 $193 2021 2022 $ Millions, unaudited • Revenues up 5% absent $8.2M negative impact of FX • Operating Profit Margin 53.7% of revenue, up 630 • MAGIC: THE GATHERING up 11% • Licensed Digital Gam
Slide 15: Wizards of the Coast & Digital Gaming Segment (YTD)
Wizards of the Coast & Digital Gaming Segment NET REVENUES YTD 2022 OPERATING PROFIT +5% +10% $683 $649 $332 $303 2021 2022 $ Millions, unaudited • Revenues up 7% absent $11.1M negative impact of FX • MAGIC: THE GATHERING up 10% • Operating Profit increased due to higher • Licensed Digital Gaming up
Slide 16: Consumer Products Segment (Q2)
Consumer Products Segment NET REVENUES Q2 2022 OPERATING PROFIT +7% $734 $689 2021 $ Millions, unaudited ->100% as reported -83% 2022 as adjusted* $18 2022 Adj* $3 $(7) • Q2 2022 POS down • Revenue Up 9% absent $19.1M • Adjusted Operating Profit decreased • Preschool POS up negative impact of FX due
Slide 17: Consumer Products Segment (YTD)
Consumer Products Segment NET REVENUES YTD 2022 OPERATING PROFIT +5% $1,407 $1,343 -96% 2021 $ Millions, unaudited as reported -56% as adjusted* 2022 $50 2022 Adj* $22 $2 • Revenue Up 7% absent $32.6M • 1H 2022 POS down; Preschool up • Traditionally lower profit period for toys and • Europe POS up a
Slide 18: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography Six Six % Months Months % Q2 2022 Q2 2021 CHANGE 2022 2021 CHANGE NORTH $433 $391 +11% $838 $754 +11% AMERICA Q2 Growth EUROPE $162 $176 -8% $339 $365 -7% in all four regions absent FX ASIA PACIFIC $67 $68 -3% $119 $133 -11% LATIN $72 $53 +36% $111
Slide 19: Entertainment Segment (Q2)
Entertainment Segment NET REVENUES Q2 2022 OPERATING PROFIT +>100% As reported and -18% as adjusted* $23 $14 $227 $10 $(114) 2021 $185 2021 Adjusted* 2022 $ Millions, unaudited 2022 Adjusted* • Segment declined 4% excluding Music • Adjusted Operating Profit* improvement business sold at the beginnin
Slide 20: Entertainment Segment (YTD)
Entertainment Segment NET REVENUES YTD 2022 OPERATING PROFIT +>100% -7% $52 As reported $44 -15% $445 $27 as adjusted* $413 $(97) 2021 2021 Adjusted* 2022 $ Millions, unaudited 2022 Adjusted* • Segment grew 9% excluding Music business TV & Film deliveries YTD include: • Adjusted Operating Profit* de
Slide 21: Second Quarter and Six Months 2022 Net Earnings
Second Quarter and Six Months 2022 Net Earnings SECOND QUARTER SIX MONTHS Q2 ‘22 Repurchased 1.4M shares of $ Millions, except per share data, unaudited 300 $284 Hasbro common 175 $161 stock 250 $240 $145 $142 $2.05 per diluted $203 125 $1.15 200 share per $1.05 $1.02 diluted per per $1.72 $0.84 sha
Slide 22: Key Cash Flow and Balance Sheet Data
Key Cash Flow and Balance Sheet Data SIX MONTHS ENDED $ Millions, unaudited JUN 26, 2022 JUN 27, 2021 NOTES Completed D&D Beyond acquisition for $146M; Cash $628 $1,228 Returned $316M to shareholders; Inventory on hand for 2H Long-term Debt $3,739 $4,389 Paid down $50M in Debt in YTD Depreciation $6
Slide 23: ESG Performance + Q2 2022 Achievements
ESG Performance + Q2 2022 Achievements Hasbro’s clear sense of purpose and ESG strategy continue to drive long-term value creation for all stakeholders for the 11th consecutive for the 11th consecutive for the 10th consecutive year year year Climate and Sustainability Ethical Sourcing and Human Righ
Slide 24: Supplemental Financial Information
Supplemental Financial Information 24
Slide 25: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Millions of Dollars) (Unaudited) June 26, 2022 June 27, 2021 ASSETS Cash and Cash Equivalents $ 628.2 $ 1,228.2 Accounts Receivable, Net 870.5 865.9 Inventories 867.5 499.6 Prepaid Expenses and Other Current Assets 719.2 543.2 Assets Held for Sale - 479.5 Total
Slide 26: Condensed Statements of Operations
Condensed Statements of Operations (Millions of Dollars and Shares Except Per Share Data) (Unaudited) Quarter Ended Six Months Ended % Net % Net % Net % Net June 26, 2022 Revenues June 27, 2021 Revenues June 26, 2022 Revenues June 27, 2021 Revenues Net Revenues $ 1,339.2 100.0% $ 1,322.2 100.0% $ 2,
Slide 27: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows Six Months Ended June 26, 2022 June 27, 2021 (Millions of Dollars) (Unaudited) Cash Flows from Operating Activities: Net Earnings $ 203.4 $ 95.6 Other Non-Cash Adjustments 337.3 521.1 Changes in Operating Assets and Liabilities (392.9) (39.6) Net Cash Provided by Op
Slide 28: Segment Results - As Reported and As Adjusted - Q2 2022
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-Q2 2022 (Unaudited) (Millions of Dollars) Quarter Ended Operating Results (1) Net Revenues by Brand Portfolio June 26, 2022 June 27, 2021 % Change Quarter Ended June 26, 2022 Quarter Ended June 27, 2021 Franchise Brands (i) $
Slide 29: Segment Results - As Reported and As Adjusted - YTD 2022
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-YTD 2022 (Unaudited) (Millions of Dollars) Six Months Ended (5) Net Revenues by Brand Portfolio June 26, 2022 June 27, 2021 % Change Franchise Brands (i) $ 1,287.0 $ 1,200.3 7% Partner Brands 425.9 400.0 6% Operating Results H
Slide 30: Reconciliation of Adjusted Operating Profit
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars) Reconciliation of Adjusted Operating Profit Quarter Ended Six Months Ended June 26, 2022 June 27, 2021 June 26, 2022 June 27, 2021 Operating Profit $ 219.1 $ 76.6 $ 339.1 $ 223.9 Consumer Prod
Slide 31: Reconciliation of EBITDA and Adjusted EBITDA
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars) Reconciliation of EBITDA and Adjusted EBITDA Quarter Ended Six Months Ended June 26, 2022 June 27, 2021 June 26, 2022 June 27, 2021 Net Earnings Attributable to Hasbro, Inc. $ 142.0 $ (22.9) $
Slide 32: Reconciliation of Net Earnings and Earnings per Share
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars and Shares, Except Per Share Data) Reconciliation of Net Earnings and Earnings per Share Quarter Ended Diluted Diluted (all adjustments reported after-tax) June 26, 2022 Per Share Amount June 2
Slide 33: 2021 Cost of Sales
2021 Cost of Sales (Actual FX as Reported) As a % of Revenue Revenue 100.0% Cost of Sales 30.0% Board / Paper / Print 7.6% Labor 5.9% Resins 4.7% Factory Overhead 4.1% Electronics / Metals 1.2% Freight / Import Costs 3.5% All Other 0.7% Tooling 1.2% Inventory Variances 1.1% Total 14.2% Total 15.8% C
Slide 34: Net Revenue by Brand Portfolio Restated
Net Revenue by Brand Portfolio Restated Beginning in fiscal year 2022, Hasbro designated Peppa Pig as a Franchise Brands. Net revenue by Brand Portfolio below has been restated to show the reclassification of Peppa Pig historical revenues to Franchise Brands, from Emerging Brands. Quarter Ended Fisc