Slide 1: Q2 2024 Earnings
Q2 2024 Earnings July 25, 2024
Slide 2: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES Supplemental Financial Data The financial tables accompanying this press release include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit, Adjusted operating margin, Adjusted net earnings and Adjusted net earnings per d
Slide 3: 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 s
Slide 4: Hasbro's Transformation
Hasbro’s Transformation Focus on Play Operate with Excellence Strengthen Balance Sheet Focus on bottom line Enhance Hasbro’s Gaming performance by prioritizing Invest to drive profitable growth leadership, both tabletop and digital fewer, bigger brands Double-down on fewer, Deliver Operational Excel
Slide 5: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights Total Hasbro revenue decline of 18%; Revenues declined 6% absent the impact of the eOne film and television divestiture REPORTED ADJUSTED Wizards of the Coast and Digital Gaming segment grew 20% behind growth in $995M $995M MAGIC: THE GATHERING and Licensed and Digital
Slide 6: Six Months 2024 Highlights
Six Months 2024 Highlights Total Hasbro revenue decline of 21%; Revenues declined 7% absent the impact of the eOne film and television divestiture REPORTED ADJUSTED Wizards of the Coast and Digital Gaming segment grew 15% behind growth in $1,753M $1,753M MAGIC: THE GATHERING and ongoing strength in
Slide 7: Second Quarter 2024 Highlights & Announcements
Second Quarter 2024 Highlights & Announcements SEPTEMBER 20, 2024 7
Slide 8: Hasbro, Inc. Second Quarter 2024 Performance
Hasbro, Inc. Second Quarter 2024 Performance Wizards of Q2 2024 Reported Results Consumer Entertainment Corporate the Coast & Hasbro ($ millions, except earnings per share) Products & Other Digital Gaming Revenue $452 $524 $19 N/A $995 % vs PY +20% -20% -90% N/A -18% Operating Profit (Loss) $247 ($9
Slide 9: Hasbro, Inc. Second Quarter 2024 Performance-As Adjusted
Hasbro, Inc. Second Quarter 2024 Performance-As Adjusted Wizards of Q2 2024 Adjusted Results Consumer Corporate the Coast & Entertainment Hasbro ($ millions, except earnings per share) Products & Other Digital Gaming Revenue $452 $524 $19 N/A $995 % vs PY +20% -20% -90% N/A -18% Operating Profit (Lo
Slide 10: Hasbro, Inc. Six Months 2024 Performance
Hasbro, Inc. Six Months 2024 Performance Six Months 2024 Reported Wizards of Consumer Entertainment Corporate Results the Coast & Hasbro Products & Other ($ millions, except earnings per share) Digital Gaming Revenue $768 $938 $47 N/A $1,753 % vs PY +15% -20% -87% N/A -21% Operating Profit (Loss) $3
Slide 11: Hasbro, Inc. Six Months 2024 Performance-As Adjusted
Hasbro, Inc. Six Months 2024 Performance-As Adjusted Wizards of Q2 2024 Adjusted Results Consumer Corporate the Coast & Entertainment Hasbro ($ millions, except earnings per share) Products & Other Digital Gaming Revenue $768 $938 $47 N/A $1,753 % vs PY +15% -20% -87% N/A -21% Operating (Loss) Profi
Slide 12: Q2 2024 Operating Margin Performance
Q2 2024 Operating Margin Performance As Reported Operating Profit Margin Drivers Adjusted Operating Profit Margin Drivers ($ millions) Amounts may not sum due to rounding ($ millions) Amounts may not sum due to rounding Q2 2023 Op Profit Margin Q2 2023 Op Profit Margin -15.6% ($189) 11.3% $137 (Adju
Slide 13: YTD Q2 2024 Operating Margin Performance
YTD Q2 2024 Operating Margin Performance As Reported Operating Profit Margin Drivers Adjusted Operating Profit Margin Drivers ($ millions) Amounts may not sum due to rounding ($ millions) Amounts may not sum due to rounding YTD 2023 Op Profit Margin YTD 2023 Op Profit Margin -7.7% ($171) 8.3% $184 (
Slide 14: Total Hasbro Owned Inventory Reduction
Total Hasbro Owned Inventory Reduction Down -37% vs. Q2 2019 • Total Q2 owned inventory -51% YoY • Modest inventory build in Q2 as +7% expected to support customer $1,000 innovation sell-in and shelf resets $900 $867 $800 • Current inventory represents $731 ~77 days of supply, down 48% versus $700 l
Slide 15: Consumer Products Revenue Drivers
Consumer Products Revenue Drivers +1% -2% -1% -1% Q2 -18% -20% Exited Business Volume & Mix Selling Rate Licensing FX Total Revenue Decline +0.2% -2% -0.3% -1% YTD -18% -20% Exited Business Volume & Mix Selling Rate Licensing FX Total Revenue Decline Volume/Mix represents gross sales volume impact t
Slide 16: Brand Portfolio Performance
Brand Portfolio Performance Q2 2024 Brand Category Net Revenue by Brand Portfolio Highlights Franchise Brands ($ millions) Q2 2024 Q2 2023 % Change YTD 2024 YTD 2023 % Change Second quarter growth in HASBRO GAMING (+31%) and MAGIC THE GATHERING (+8%); PLAY-DOH Franchise Brands $787 $788 - $1,393 $1,
Slide 17: Consumer Products Op Margin Performance
Consumer Products Op Margin Performance Q2 YTD • Underlying business model 2023 Op Profit Margin (Adjusted) +3.4% $22 -1.1% ($13) improvements driven by improved cost structure and Volume & Mix* -7.1 pts ($42) -7.8 pts ($73) fewer closeouts Gross Sales to Net Sales Rate -0.7 pts ($3) -0.0 pts $3 • I
Slide 18: Wizards of the Coast & Digital Gaming Revenue Drivers
Wizards of the Coast & Digital Gaming Revenue Drivers +20% +14% Q2 +3% +4% -0.2% Wizards Analog Wizards Digital Digital Gaming FX Total Revenue Growth Licensing +15% +11% YTD +3% +1% -0.1% Wizards Analog Wizards Digital Digital Gaming FX Total Revenue Growth Licensing Wizards Tabletop represents tab
Slide 19: Wizards of the Coast Op Margin Performance
Wizards of the Coast Op Margin Performance Q2 YTD • Growth in MAGIC and Digital 2023 Op Profit Margin (Adjusted) 37.9% $142 32.7% $219 Gaming driving favorable business mix and operating Volume & Mix* +10.2 pts $77 +8.0 pts $97 margin impact Gross Sales to Net Sales Rate -0.9 pts ($6) -0.9 pts ($10)
Slide 20: Total Hasbro, Inc. Cash Flow and Metrics
Total Hasbro, Inc. Cash Flow and Metrics Q2 2024 Highlights Operating Cash Flow • Operating cash improvement of $246M year to date driven by underlying earnings growth and favorable timing $365 • Capital spending down slightly vs. PY and due to project timing • Adjusted Underlying Q2 Tax Rate of 23.
Slide 21: Updated 2024 Guidance
Updated 2024 Guidance Revising Annual Guidance: • Wizards Revenue and Operating Margin guidance raised behind strength in Monopoly Go! Wizards of the Coast & Consumer Products Digital Gaming • Consumer Products updated revenue range reflects encouraging demand signals and retailer support for 2H inn
Slide 22: Operational Excellence Program
Operational Excellence Program Path to $750M of Gross Cost Savings • Delivered $150M of gross savings $750M through first half of 2024; annual Approx. Net Savings planned gross savings of $300M • Realized ~$90M of net cost savings in front half driven by Supply Chain and Operational $300M Excellence
Slide 23: Supplemental Financial Information
Supplemental Financial Information
Slide 24: Gross Margin Performance
Gross Margin Performance • Q2 Gross Margin improvement Q2 YTD of +15.5 pts • Underlying Gross Margin drivers: Q2 2023 Gross Margin 59.8% $723 59.5% $1,316 • Supply Chain productivity outpacing inflation Volume & Mix* +4.4 pts $15 +4.0 pts ($2) • lower closeout sales • shift in business mix to COS Sa
Slide 25: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets 25
Slide 26: Consolidated Statement of Operations
Consolidated Statement of Operations 26
Slide 27: Condensed Consolidated Statement of Cash Flows
Condensed Consolidated Statement of Cash Flows 27
Slide 28: Hasbro Q2 Share in Focus Categories
Hasbro Q2 Share in Focus Categories Focus Categories – Q2 2024 Action Figures & Accessories Lapping Q2 2023 entertainment calendar Hasbro Hasbro Hasbro Focus Category Share Change Share Position Arts & Crafts Second quarter growth in PLAY-DOH POS Action Figures & Accessories -3.5 pts 23.6% 1 Games*
Slide 29: Hasbro YTD Share in Focus Categories
Hasbro YTD Share in Focus Categories Focus Categories – YTD 2024 Action Figures & Accessories Lapping Q2 2023 entertainment in Hasbro Hasbro Hasbro Focus Category TRANSFORMERS and Marvel Share Change Share Position Arts & Crafts Action Figures & Accessories -2.9 pts 22.9% 1 PLAY-DOH POS growth year
Slide 30: Key Cash Flow and Balance Sheet Data
Key Cash Flow and Balance Sheet Data $ Millions, unaudited YTD 2024 YTD 2023 NOTES Cash & Short-Term $1,110 $217 $500M proceeds from recent bond deal; will use to repay November 2024 maturity Investments Current and Long-Term $3,961 $3,738 $500M to be repaid in November 2024 with proceeds from recen
Slide 31: FY 2023 Entertainment Segment Financials
FY 2023 Entertainment Segment Financials $ Millions; Unaudited Financials Hasbro Entertainment Total Entertainment Divested Film & TV Assets (Remain Co) Segment Revenue $573M $86M $659M % vs. LY -30% -34% -31% Operating Profit (Loss) ($836M) ($1,075M) ($1,912M) Adjusted Operating Profit (Loss) ($40M
Slide 32: Segment Results-As Reported and As Adjusted-Q2 2024
Segment Results-As Reported and As Adjusted-Q2 2024 32
Slide 33: Segment Results-As Reported and As Adjusted-Q2 2024 Continued
Segment Results-As Reported and As Adjusted-Q2 2024 Continued (UNAUDITED) (MILLIONS OF DOLLARS) 33
Slide 34: Segment Results-As Reported and As Adjusted-YTD 2024
Segment Results-As Reported and As Adjusted-YTD 2024 34
Slide 35: Segment Results-As Reported and As Adjusted-YTD 2024
Segment Results-As Reported and As Adjusted-YTD 2024 35
Slide 36: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (UNAUDITED) (MILLIONS OF DOLLARS) 36
Slide 37: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (UNAUDITED) (MILLIONS OF DOLLARS) 37
Slide 38: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 38
Slide 39: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 39