Slide 1: Q1 2023 Earnings
Q1 2023 Earnings April 27, 2023
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: Entertaining and Connecting Generations of Fans Through Play
Entertaining and Connecting Generations of Fans Through Play Blueprint 2.0 ► Engage consumers across games, play and experiences ► Enhance Hasbro’s Gaming Leadership • Portfolio of high-growth, high-profit brands ► Focus on Fewer, Bigger Brands to engage consumers and delight fans • MAGIC: THE GATHE
Slide 5: 2023 Outlook
2023 Outlook ► Revenue down low-single digits $35M Cost Savings Recognized in Q1 2023 ► Expand Adjusted Operating Profit Margin of 50 to 70 basis points, excluding Operational Excellence charge and other non-GAAP items* ► Adjusted Earnings per diluted share in the range of $4.45-$4.55 Medium and Lon
Slide 6: Blueprint 2.0
Digital Games & Services Toys & Games Hasbro Pulse ®& a ot brang, z the ee §=8§8=6©Commerce -— | consumer S Specialty i} & LBE Ni y
Slide 7: Platform
Digital Purchase & Play Behavior Deep Shopper Engagement Play Studies & Net Promoter ; eHPTED ID Sy » & 7S, a 6 clickstream eo davieore | Brand Studies & & POS a data core i Sam Licensor Insights POS & Categort Insights y Loyalty Program, , Event Engagement
Slide 8: Q1 2023 snapshot
Q1 2023 $1.0B Net Revenues down 14%; down 13% absent FX snapshot As Reported $17.9M Operating Profit As Adjusted* $47.2M Net Earnings As Reported $(22.1M) (Loss) As Adjusted* $1.0M Earnings As Reported $(0.16) per share (Loss) Per Share As Adjusted* $0.01 per diluted share EBITDA As Reported $72.4M
Slide 9: 2023 Announcements & Highlights
2023 ANNOUNCEMENTS & HIGHLIGHTS 9
Slide 10: First Quarter Net Revenue & Operating Profit Performance
First Quarter Net Revenue & Operating Profit Performance NET REVENUES Q1 2023 OPERATING PROFIT -85% As Reported -67% -14% As Adjusted* $1,163 $142 $1,001 2022 $120 2022 Adjusted* 2023 $47 $ Millions, unaudited 2023 Adjusted* $18 • Making substantial progress implementing Blueprint 2.0 strategy • MAG
Slide 11: First Quarter Brand Portfolio Performance
First Quarter Brand Portfolio Performance Total Gaming2 Net Revenue Operating Profit (Loss) % % Q1 2023 Q1 2022 Change Q1 2023 Q1 2023 Q1 2022 Change Q1 2023 Q1 2022 Adj.* Adj.* Adj.* $387M up 2% Franchise $613 $650 -6% $62 $143 $70 $152 -54% Brands1 Q1 2023 PERFORMANCE $ Millions, unaudited FRANCHI
Slide 12: First Quarter 2023 Major Expense Items
First Quarter 2023 Major Expense Items Q1 2023 % CHANGE Adjusted* NOTES Q1 2023 Q1 2022 Adjusted* % OF Below exclude non-GAAP Q1 2023 Adjusted* Q1 2022 Adjusted* YOY REVENUE adjustments Incremental expense for closeouts and allowances Cost of Sales $285 $285 $333 $333 -14% 28.5% offset by Operationa
Slide 13: Wizards of the Coast & Digital Gaming Segment
Wizards of the Coast & Digital Gaming Segment NET REVENUES Q1 2023 OPERATING PROFIT +12% -28% $295 $263 $106 2022 2023 $77 $ Millions, unaudited • Revenues up 14% absent $3M negative impact of FX • MAGIC: THE GATHERING up 16% in the quarter due to strong demand for • Operating Profit Margin 26.0%; E
Slide 14: Consumer Products Segment
Consumer Products Segment NET REVENUES Q1 2023 OPERATING PROFIT (LOSS) >-100% -23% as reported $19 and as adjusted* $673 2022 $9 $ Millions, unaudited $(46) $(35) $520 2022 Adj* 2023 2023 Adj* • Revenue down 21% absent $8M negative • POS remains down YOY, but improving from • Operating margin -8.8%;
Slide 15: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography % Q1 2023 Q1 2022 CHANGE NORTH AMERICA $279 $405 -31% First Quarter EUROPE $132 $177 -26% Growth in Asia Pacific and Latin America ASIA PACIFIC $63 $52 +21% LATIN AMERICA $46 $39 +20% TOTAL SEGMENT $521 $673 -23% 15
Slide 16: Entertainment Segment
Entertainment Segment NET REVENUES Q1 2023 OPERATING PROFIT (LOSS) ->100% -19% As reported and As adjusted* $228 2022 $185 2022 Adjusted* $21 2023 $12 $ Millions, unaudited 2023 Adjusted* $(9) $(3) • Revenues declined due to year-over-year shifts in release TV & Film deliveries for the • Operating m
Slide 17: First Quarter 2023 Net Earnings (Loss)
First Quarter 2023 Net Earnings (Loss) FIRST QUARTER $79 $ Millions, except per share data, unaudited $61 $0.57 per diluted $0.01 $0.44 share per diluted per diluted share share $(22) $1 $(0.16) per share 2022 2022 2023 2023 Adj* Adj* Total Non-Operating Expense: Q1 2023 $38.9M • Other income, net $
Slide 18: Operational Excellence Program
Operational Excellence Program Objective: Deliver $250-300M in Annual Run-Rate Cost Savings by Year-end 2025 Q1 2023 Realized Savings: $35M Q1 2023 Cash Spent: $17M Annualized Run Rate Savings Costs to Achieve* $300 $250 10% Product Development 12% Royalty Expenses $150 $145 38% Cost of Sales $ Mill
Slide 19: Key Cash Flow and Balance Sheet Data
Key Cash Flow and Balance Sheet Data FIRST QUARTER ENDED $ Millions, unaudited APR 2, 2023 MAR 27, 2022 NOTES Expect cash position to improve as the year Cash $386 $1,058 progresses given the phasing of revenue Long-term Debt $3,682 $3,738 Paid down $30M in long-term Debt in Q1 2023 Depreciation $24
Slide 20: ESG Performance & Q1 2023 Achievements
ESG Performance & Q1 2023 Achievements Long-term value creation for our business and stakeholders. Climate & Sustainability Human Rights & Ethical Sourcing GHG GOALS: Committed to set Science-Based Targets for 2030 (42% GHG SOCIAL COMPLIANCE AUDITS: On track to achieve 100% audit rate and reduction)
Slide 21: Supplemental Financial Information
Supplemental Financial Information 21
Slide 22: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Millions of Dollars) (Unaudited) April 2, 2023 March 27, 2022 ASSETS Cash and Cash Equivalents $ 386.2 $ 1,057.9 Accounts Receivable, Net 685.2 931.7 Inventories 713.4 644.3 Prepaid Expenses and Other Current Assets 754.4 621.4 Total Current Assets 2,539.2 3,25
Slide 23: Condensed Statements of Operations
Condensed Statements of Operations (Millions of Dollars and Shares Except Per Share Data) (Unaudited) Quarter Ended % Net % Net April 2, 2023 Revenues March 27, 2022 Revenues Net Revenues $ 1,001.0 100.0% $ 1,163.1 100.0% Costs and Expenses: Cost of Sales 285.3 28.5% 333.1 28.6% Program Cost Amortiz
Slide 24: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows (Millions of Dollars) (Unaudited) Quarter Ended April 2, 2023 March 27, 2022 Cash Flows from Operating Activities: Net Earnings $ (21.7) $ 62.9 Other Non-Cash Adjustments 181.9 179.3 Changes in Operating Assets and Liabilities (71.4) (107.5) Net Cash Provided by Ope
Slide 25: Supplemental Financial Data: Segment Results As Reported and As Adjusted
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-Q1 2023 (Unaudited) (Millions of Dollars) Operating Results Quarter Ended April 2, 2023 Quarter Ended March 27, 2022 Non-GAAP Non-GAAP As Reported Adjustments Adjusted As Reported Adjustments Adjusted % Change Total Company Re
Slide 26: Supplemental Financial Data: Segment Results Continued
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-Q1 2023 CONTINUED (Unaudited) (Millions of Dollars) Net Revenues Quarter Ended Net Revenue by Brand Portfolio April 2, 2023 March 27, 2022 % Change (a) Franchise Brands $ 613.4 $ 650.4 -6% Partner Brands 132.7 206.5 -36% Portf
Slide 27: Reconciliation of Non-GAAP Financial Measures: Adjusted Operating Profit
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES* (Unaudited) (Millions of Dollars) Reconciliation of Adjusted Operating Profit (Loss) (1) Quarter Ended April 2, 2023 March 27, 2022 Operating Profit (Loss) $ 17.9 $ 120.0 Consumer Products (46.0) 8.6 Wizards of the Coast and
Slide 28: Reconciliation of EBITDA and Adjusted EBITDA
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars) Quarter Ended Reconciliation of EBITDA and Adjusted EBITDA (1) April 2, 2023 March 27, 2022 Net Earnings (Loss) Attributable to Hasbro, Inc. $ (22.1) $ 61.2 Interest Expense 46.3 41.6 Income T
Slide 29: 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 (Loss) and Earnings per Share (1) Quarter Ended Diluted Diluted (all adjustments reported after-tax) April 2, 2023 Per Share Am
Slide 30: 2022 Cost of Sales (Actual FX as Reported)
2022 Cost of Sales (Actual FX as Reported) As a % of Revenue Revenue 100.0% Gross Margin 67.4% Cost of Sales 32.6% Board/Paper/Print 5.3% Labor 5.6% Resins 5.1% Factory Overhead 4.8% Electronics / Metals 1.8% Freight/Import Costs 4.1% All Other 2.1% Tooling 1.3% Inventory Variances 2.5% Total 14.3%
Slide 31: 2022 External Net Revenue by Currency
2022 External Net Revenue by Currency AUD 2% OTHER CAD 6% 3% EUR 12% USD GBP 71% 4% MEX 3% Other includes currencies that are less than 1% 31