Slide 1: 2021 Earnings
2021 Earnings OCTOBER 26, 2021
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 future pe
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 earnings per diluted share, which exclude, whe
Slide 4: Hasbro Brand Blueprint
Hasbro Brand Blueprint
Slide 5: Creating the World's Best Play & Entertainment Experiences
Creating the World’s Best Play & Entertainment Experiences Supercharging Differentiated Business Strong Financial the Blueprint Model Drives Growth in Q3 Position Q3 2021 Net Revenues: $1.97B Creating immersive experiences • Q3 2021 Growth in Wizards of the Q3 Operating Profit: $367.9M, or 18.7% of
Slide 6: Q3 2021 Snapshot
2021 Net Revenues $1.97B snapshot Operating Profit As Reported $367.9M As Adjusted* $389.6M Net Earnings As Reported $253.2M As Adjusted* $271.2M Earnings Per Share: As Reported $1.83 per diluted share *The As Adjusted figures are As Adjusted* $1.96 per diluted share non-GAAP financial measures. A r
Slide 7: 2021 Announcements & Highlights
2021 ANNOUNCEMENTS & HIGHLIGHTS Content in Development for over 30 Hasbro Brands #1 Kids Title on Netflix in 86 countries (including U.S., Brazil, Mexico, UK, SIGNED 2 NEW FIRST-LOOK DEALS WITH Germany, France, Spain, Italy, HK, Thailand, Singapore, Australia) 14.8M HIGH-PROFILE TALENT VIEWS ON TIKT
Slide 8: Third Quarter Net Revenue & Operating Profit Performance
Third Quarter Net Revenue & Operating Profit Performance NET REVENUES OPERATING PROFIT Q3 As Reported +9% +11% As Adjusted $1,970 +6% $1,777 $390 2021 $ Millions, unaudited $367 $368 $337 2020 2020 Adjusted 2021 2021 Adjusted Consumer Products segment -3%; Wizards of the Operating Profit Margin Q3 2
Slide 9: Nine Months Net Revenue & Operating Profit Performance
Nine Months Net Revenue & Operating Profit Performance YTD NET REVENUES OPERATING PROFIT As Reported +88% $775 +18% As Adjusted +37% 2021 $ Millions, unaudited $592 $565 $316 2020 2020 Adjusted 2021 2021 Adjusted Consumer Products segment +9%; Wizards of the Coast & Digital Gaming segment +50%; Ente
Slide 10: Third Quarter and Nine Months Brand Portfolio Performance
Third Quarter and Nine Months Q3 2021 Brand Portfolio Performance FRANCHISE BRANDS Up including, MAGIC: THE GATHERING, MY LITTLE Q3 Q3 % YTD YTD % PONY and TRANSFORMERS. ($Million, unaudited) 2021 2020 Change 2021 2020 Change PARTNER BRANDS Total Franchise Brands $882 $808 +9% $2,023 $1,581 +28% Gro
Slide 11: Entertainment Segment Q3
Entertainment Segment Q3 NET REVENUES OPERATING PROFIT (LOSS) +76% +>100% $42 $327 As Adjusted 2021 $ Millions, unaudited $22 $185 2020 2020 Adjusted $(4) 2021 2021 Adjusted $(28) • Adjusted Operating Profit growth from higher • Entertainment segment revenues TV & Film deliveries for revenues and lo
Slide 12: Entertainment Segment YTD
Entertainment Segment NET REVENUES OPERATING PROFIT (LOSS) YTD As Adjusted +17% +45% $94 $773 $65 2021 $ Millions, unaudited $662 $(106) $(74) 2020 2020 Adjusted 2021 2021 Adjusted Entertainment segment revenues increased behind Adjusted Operating Profit increase driven by higher On track to reach 2
Slide 13: Wizards of the Coast & Digital Gaming Segment Q3
Wizards of the Coast & Digital Gaming Segment Q3 NET REVENUES OPERATING PROFIT +32% +13% 2021 $ Millions, unaudited $159 $360 $142 $273 2020 2021 • Revenue growth in MAGIC:THE GATHERING and • Higher revenues drove increased Operating DUNGEONS & DRAGONS Profit, partially offset by higher development,
Slide 14: Wizards of the Coast & Digital Gaming Segment YTD
Wizards of the Coast & Digital Gaming Segment YTD NET REVENUES OPERATING PROFIT +50% +48% $462 $1,009 2021 $ Millions, unaudited $312 $671 2020 2021 • Revenue growth in MAGIC:THE GATHERING and • Higher revenues drove increased Operating DUNGEONS & DRAGONS; Licensed Digital Games Profit, partially of
Slide 15: Consumer Products Segment Q3
Consumer Products Segment NET REVENUES OPERATING PROFIT $1,318 -3% $1,283 Q3 2021 $226 -7% $210 $ Millions, unaudited 2020 2021 • Robust demand but revenue • Global POS declined mid-single digits, • Operating Profit decline driven by declined due to shipping constraints reflecting low in-stock level
Slide 16: Consumer Products Segment YTD
Consumer Products Segment YTD NET REVENUES OPERATING PROFIT +9% +52% $261 $2,626 2021 $ Millions, unaudited $2,410 $171 2020 2021 • Revenue growth across Hasbro brands and • Global POS down slightly YTD; • Operating Profit growth driven by higher product portfolio, including Franchise Global Toy POS
Slide 17: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography Q3 2021 Q3 2020 YTD 2021 YTD 2020 % CHANGE % CHANGE ($ Millions, unaudited) NORTH $805 $830 -3% $1,559 $1,435 +9% AMERICA EUROPE $304 $317 -4% $669 $615 +9% ASIA PACIFIC $76 $78 -3% $209 $197 +6% LATIN $98 $93 +6% $189 $162 +16% AMERICA TOTAL $1,28
Slide 18: Third Quarter and Nine Months 2021 Net Earnings
Third Quarter and Nine Months 2021 Net Earnings THIRD QUARTER NINE MONTHS 600 $555 $ Millions, except per share data, unaudited 300 $271 $259 $253 500 250 $221 400 200 $339 $347 $1.61 $1.88 $1.83 $1.96 150 per 300 $4.01 per per per $2.47 $2.51 diluted diluted per per diluted diluted per share share
Slide 19: Key Cash Flow & Balance Sheet Data
Key Cash Flow & Balance Sheet Data NINE MONTHS ENDED $ Millions, unaudited SEPT. 26, 2021 SEPT. 27, 2020 NOTES Cash $1,181 $1,132 Maintain a strong cash position Repaid $400M in debt in Q3 2021; Retired $972.5M Long-term Debt $3,977 $4,778 in Long-term debt YTD 2021 Depreciation $116 $94 Full-year D
Slide 20: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Our commitment to CSR reflects our desire to help build a safer, more sustainable and inclusive company and world for all. Product & Content Environmental Human Rights & Culture & Human Safety Responsibility Ethical Sourcing Capital Management 20
Slide 21: Our Mission, Purpose and Values
OUR MISSION OUR PURPOSE Creating the Making the World’s Best Play World a Better Place & Entertainment for All Children, Experiences Fans and Families OUR VALUES PASSION CREATIVITY INTEGRITY COMMUNITY INCLUSION 21
Slide 22: Supplemental Financial Information
Supplemental Financial 3. Information ay
Slide 23: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Millions of Dollars) September 26, September 27, 2021 2020 ASSETS Cash and Cash Equivalents $ 1,181.2 $ 1,132.4 Accounts Receivable, Net 1,476.6 1,438.4 Inventories 544.1 540.0 Prepaid Expenses and Other Current Assets 528.5 648.2 Total Current Assets 3,730.4 3
Slide 24: Condensed Statements of Operations
Condensed Statements of Operations (Millions of Dollars and Shares Except Per Share Data) Quarter Ended Nine Months Ended September 26, % Net September 27, % Net September 26, % Net September 27, % Net 2021 Revenues 2020 Revenues 2021 Revenues 2020 Revenues Net Revenues $ 1,970.0 100.0% $ 1,776.6 10
Slide 25: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows (Millions of Dollars) Nine Months Ended September 26, September 27, 2021 2020 Cash Flows from Operating Activities: Net Earnings (Loss) $ 350.5 $ 119.2 Other Non-Cash Adjustments 814.2 561.8 Changes in Operating Assets and Liabilities (479.1) (186.7) Net Cash Provid
Slide 26: Segment Operating Results Q3 2021 As Reported and As Adjusted
SUPPLEMENTAL FINANCIAL DATA SEGMENT OPERATING RESULTS-AS REPORTED and AS ADJUSTED-Q3 2021 (Millions of Dollars) (Unaudited) Effective in the first quarter of 2021, the Company reorganized its reportable segments to Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment, and Corpor
Slide 27: Segment Operating Results Nine Months 2021 As Reported and As Adjusted
SUPPLEMENTAL FINANCIAL DATA SEGMENT OPERATING RESULTS-AS REPORTED and AS ADJUSTED-Nine Months 2021 (Millions of Dollars) (Unaudited) Effective in the first quarter of 2021, the Company reorganized its reportable segments to Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment, a
Slide 28: 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 Nine Months Ended September 26, September 27, September 26, September 27, 2021 2020 2021 2020 Operating Profit (Loss) $ 367.9 $ 336.6
Slide 29: 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 Nine Months Ended September 26, September 27, September 26, September 27, 2021 2020 2021 2020 Net Earnings Attributable to Hasbro, In
Slide 30: Reconciliation of EBITDA and Adjusted EBITDA by Segment
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES-Reconciliation of EBITDA and Adjusted EBITDA by Segment (Unaudited) (Millions of Dollars) Reconciliation of EBITDA and Adjusted EBITDA-BY SEGMENT Adjusted EBITDA by Segment: Consumer Products $ 262.5 $ 277.1 $ 383.1 $ 290.0 Wi
Slide 31: 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 September 26, Diluted September 27, Diluted (all adjustments reported after-tax) 2021 Per