Slide 1: 2021 Earnings
2021 Earnings February 7, 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 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 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 Supercharging Brand Blueprint Drives Strong Financial the Blueprint Profitable Growth Across Position Hasbro’s Diversified Business FY 2021 Net Revenues: $6.42B, up 17% Creating immersive experiences FY Operating Profit: $763.3M, or 11.9% of
Slide 6: Q4 2021 Snapshot
2021 Net Revenues $2.01B up 17% snapshot Operating Profit As Reported $171.5M As Adjusted*$219.9M Net Earnings As Reported $82.2M As Adjusted* $168.4M Earnings Per Share As Reported $0.59 per diluted share As Adjusted* $1.21 per diluted share *The As Adjusted EBITDA As Reported $203.9M figures are n
Slide 7: Full Year 2021 Snapshot
2021 Net Revenues $6.42B up 17% snapshot Operating Profit As Reported $763.3M As Adjusted*$995.2M up 20% Net Earnings As Reported $428.7M As Adjusted* $723.4M up 41% Earnings Per Share As Reported $3.10 per diluted share As Adjusted* $5.23 per diluted share *The As Adjusted EBITDA figures are non-GA
Slide 8: Announcements & Highlights
October 22-23 2021 ANNOUNCEMENTS & HIGHLIGHTS Premiered December 10 Renewed for Season 2 Averaged 5M Weekly Viewers Across Platforms
Slide 9: Chris Cocks
Chris Cocks Appointed chief executive officer and a member of Board of Directors. Effective February 25, 2022 • Current President and Chief Operating Officer of Hasbro’s Wizards of the Coast and Digital Gaming division • Joined the Company in 2016 9
Slide 10: Fourth Quarter Net Revenue & Operating Profit Performance
Fourth Quarter Net Revenue & Operating Profit Performance NET REVENUES OPERATING PROFIT +17% Q4 As Reported -8% As Adjusted* -16% $2,013 2021 $ Millions, unaudited $1,723 $261 $220 $186 $172 2020 2020 Adjusted* 2021 2021 Adjusted* Consumer Products segment +9%; 4th Quarter Growth in • Mix shift to e
Slide 11: Full Year Net Revenue & Operating Profit Performance
Full Year Net Revenue & Operating Profit Performance FY NET REVENUES OPERATING PROFIT As Reported +52% +17% As Adjusted* +20% $995 $6,420 2021 $827 $ Millions, unaudited $5,465 $763 $502 2020 2020 Adjusted* 2021 2021 Adjusted* Consumer Products segment +9%; Wizards of Full Year 2021 Growth in • Favo
Slide 12: Fourth Quarter and Full Year Brand Portfolio Performance
FRANCHISE BRANDS Fourth Quarter and Full Year MAGIC: THE GATHERING, MY LITTLE PONY, NERF, Brand Portfolio Performance PLAY-DOH and TRANSFORMERS grew for Total the quarter and full year Gaming FY 2021 PARTNER BRANDS $2.1B Q4 Q4 % FY FY % Growth driven primarily by Up 19% ($Million, unaudited) 2021 20
Slide 13: Fourth Quarter 2021 Major Expense Items
Fourth Quarter 2021 Major Expense Items % CHANGE Q4 2021 % ($ millions, unaudited) Q4 2021 Q4 2020 YOY OF REVENUE NOTES Consumer Products and Wizards revenue growth; Higher freight and Cost of Sales $683 $593 +15.2% 33.9% input costs partially offset by pricing, lower closeouts and allowances Progra
Slide 14: Full Year 2021 Major Expense Items
Full Year 2021 Major Expense Items % CHANGE FY 2021 % ($ millions, unaudited) FY 2021 FY 2020 YOY OF REVENUE NOTES 150 basis points lower as percent of revenue; favorable mix shift to MAGIC: Cost of Sales $1,927 $1,719 +12.1% 30.0% THE GATHERING; lower closeouts and allowances in Consumer Products P
Slide 15: Wizards of the Coast & Digital Gaming Segment Q4
Wizards of the Coast & Digital Gaming Segment Q4 NET REVENUES OPERATING PROFIT +18% -22% 2021 $ Millions, unaudited $278 $236 $109 $85 2020 2021 • Revenue growth in MAGIC:THE GATHERING and • Operating Profit declines due to higher DUNGEONS & DRAGONS development, administrative and advertising • Grow
Slide 16: Wizards of the Coast & Digital Gaming Segment FY
Wizards of the Coast & Digital Gaming Segment FY NET REVENUES OPERATING PROFIT +42% +30% $547 $1,287 2021 $ Millions, unaudited $420 $907 2020 2021 • Wizards of the Coast tops $1B in revenues in FY • Higher revenues drove increased Operating 2021, doubling revenue two years ahead of target Profit, p
Slide 17: Consumer Products Segment Q4
Consumer Products Segment NET REVENUES OPERATING PROFIT +9% Q4 2021 $137 +3% $141 $ Millions, unaudited $1,356 $1,240 2020 2021 • Robust Demand • North America POS up low single • Operating Profit growth from price • Revenue upside limited by shipping digits; North America Games POS increases partia
Slide 18: Consumer Products Segment FY
Consumer Products Segment FY NET REVENUES OPERATING PROFIT +9% +30% $401 $3,982 2021 $ Millions, unaudited $3,650 $308 2020 2021 • Revenue growth across Hasbro brands and • North America POS up low single • Operating Profit growth driven by product portfolio, including Franchise Brands, digits; Glob
Slide 19: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography Q4 2021 Q4 2020 FY 2021 FY 2020 % CHANGE % CHANGE ($ Millions, unaudited) NORTH $757 $681 +11% $2,316 $2,116 +9% AMERICA EUROPE $399 $374 +7% $1,068 $989 +8% ASIA PACIFIC $101 $99 +3% $310 $296 +5% LATIN $99 $86 +15% $288 $249 +16% AMERICA TOTAL $1
Slide 20: Entertainment Segment Q4
Entertainment Segment As Reported +50% Q4 NET REVENUES OPERATING PROFIT (LOSS) +54% As Reported As Adjusted* +50% -68% $380 2021 $25 $ Millions, unaudited $247 $8 $(35) $(18) 2020 2020 Adjusted* 2021 2021 Adjusted* TV & Film deliveries for the • Adjusted Operating Profit decline from • Entertainment
Slide 21: Entertainment Segment FY
Entertainment Segment NET REVENUES OPERATING PROFIT (LOSS) FY As Reported +35% +27% As Adjusted* +13% $102 $1,152 $90 2021 $ Millions, unaudited $909 $(141) $(92) 2020 2020 Adjusted* 2021 2021 Adjusted* Entertainment segment revenues increased FY 2021 Revenues exceed • Adjusted Operating Profit incr
Slide 22: Fourth Quarter and Full Year 2021 Net Earnings
Fourth Quarter and Full Year 2021 Net Earnings Full Year 2021 Earnings Growth As Reported +93% FOURTH QUARTER FULL YEAR As Adjusted +41% 800 $723 $ Millions, except per share data, unaudited 200 $175 700 $168 $5.23 600 per 150 $515 diluted share 500 $3.74 $429 $105 per $1.27 $1.21 100 400 diluted pe
Slide 23: Key Cash Flow & Balance Sheet Data
Key Cash Flow & Balance Sheet Data YEAR ENDED $ Millions, unaudited DEC. 26, 2021 DEC. 27, 2020 NOTES Cash $1,019 $1,450 Maintain a strong cash position Long-term Debt $3,824 $4,660 Retired $1.08B in long-term debt FY 2021 Depreciation $163 $120 In-line with full year depreciation target Amortizatio
Slide 24: Company Outlook
Company Outlook Medium • Revenue growth in the mid-single digits on a compound annual basis, including mid- single growth in Consumer Products; high single digit to low double-digits growth in Term Wizards of the Coast & Digital Gaming and Entertainment segments • By year end 2023 Adjusted Operating
Slide 25: 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 25
Slide 26: 2021 Key ESG/CSR Achievements
2021 Key ESG/CSR Achievements Climate & Sustainability Ethical Sourcing & Philanthropy Diversity, Equity Human Rights & Inclusion Set goal to make Potato Head Impacted millions of brand with plant-based or Audited 100% of Third-party children and families Made meaningful renewable materials
Slide 27: Supplemental Financial Information
T/L // upplemenital Financial Information Ba
Slide 28: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Unaudited) (Millions of Dollars) December 26, December 27, 2021 2020 ASSETS Cash and Cash Equivalents $ 1,019.2 $ 1,449.7 Accounts Receivable, Net 1,500.4 1,391.7 Inventories 552.1 395.6 Prepaid Expenses and Other Current Assets 656.4 609.6 Total Current Assets
Slide 29: Condensed Statements of Operations
Condensed Statements of Operations (Millions of Dollars and Shares Except Per Share Data) (Unaudited) Quarter Ended Year Ended December 26, % Net December 27, % Net December 26, % Net December 27, % Net 2021 Revenues 2020 Revenues 2021 Revenues 2020 Revenues Net Revenues $ 2,013.4 100.0% $ 1,722.9 1
Slide 30: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows (Millions of Dollars) (Unaudited) Year Ended December 26, December 27, 2021 2020 Cash Flows from Operating Activities: Net Earnings $ 435.3 $ 225.4 Other Non-Cash Adjustments 1,203.8 811.0 Changes in Operating Assets and Liabilities (821.2) (60.1) Net Cash Provided
Slide 31: Segment Operating Results Q4 2021
SUPPLEMENTAL FINANCIAL DATA SEGMENT OPERATING RESULTS- AS REPORTED and AS ADJUSTED-Q4 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 Corpo
Slide 32: Segment Operating Results Full Year 2021
SUPPLEMENTAL FINANCIAL DATA SEGMENT OPERATING RESULTS- AS REPORTED and AS ADJUSTED-Full Year 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, an
Slide 33: 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 Year Ended (i) December 26, December 27, December 26, December 27, In association with the Company's acquisition of eOne, the Company
Slide 34: 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 Year Ended December 26, December 27, December 26, December 27, 2021 2020 2021 2020 Net Earnings Attributable to Hasbro, Inc. $ 82.2 $
Slide 35: 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 $ 182.0 $ 190.3 $ 565.1 $ 480.3 Wi
Slide 36: 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 December 26, Diluted December 27, Diluted (all adjustments reported after-tax) 2021 Per Sh
Slide 37: 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% Cost of