Slide 1: Q4 & Full Year 2024 Earnings
Q4 & Full Year 2024 Earnings FEBRUARY 20, 2025
Slide 2: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES y . . Supplemental Financial Data Bp The financial tables accompanying this presentation include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit, Adjusted operating margin, Adjusted net earnings and Adjusted net earnin
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 forwarctlooking words or phrases, include statements relating to our business s
Slide 4: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Total Hasbro revenue decline of 15%; Revenues declined 3% excluding the eOne divestiture Wizards segment declined 7% due to one fewer set release in MAGIC; Monopoly Go!topped revenue forecast Operating $60M Profit >+100% >+100% Consumer Products declined 1% due to redu
Slide 5: Full Year 2024 Highlights
Full Year 2024 Highlights Total Hasbro revenue decline of 17%; Revenues declined 7% excluding the eOne divestiture Wizards of the Coast and Digital Gaming segment grew 4% behind growth in Licensed and Digital Gaming and solid performance in MAGIC Consumer Products declined 12%; growth in licensed co
Slide 6: Fourth Quarter
Fourth Quarter B MODERN HORIZONS Wl st Broompyrrow FOUNDATIONS V BEYBLADE< —
Slide 7: Hasbro, Inc. Fourth Quarter 2024 Performance
Hasbro, Inc. Fourth Quarter 2024 Performance B $ vs PY Wizards of Q4 2024 Reported Results the Cast & Digital aad Entertainment eek ($ millions, except earnings per share) Gami Products & Other ming 1 1 Revenue $339 $746 $16 N/A ' $1102 ' i i % vs PY ™% 1% -91% N/A i 15% ; ! 1 Operating Profit (Loss
Slide 8: Hasbro, Inc. Fourth Quarter 2024 Performance - as Adjusted
Hasbro, Inc. Fourth Quarter 2024 Performance - as Adjusted B Wizards of the Coast & Digital Entertainment Corporate & Other Q4 2024 Adjusted Results ($ millions, except earnings per share) Gaming Revenue $339 $746 $16 N/A $1,102 ; % vs PY 1% 1% -91% N/A -15% ' f Operating Profit (Loss) $81 $60 $- ($
Slide 9: Hasbro, Inc. Full Year 2024 Performance
Hasbro, Inc. Full Year 2024 Performance Wizards of Full Year 2024 Reported Results Lesion ($ millions, except earings per share) ie ssmnlesg Se Revenue $1,511 $2,544 $80 % vs PY +4% 12% -88% Operating Profit (Loss) $632 $15 ($2) Operating Margin % 41.8% 4.5% -2% FY 2023 Operating Margin % 36.1% -2.2
Slide 10: Hasbro, Inc. Full Year 2024 Performance - as Adjusted
Hasbro, Inc. Full Year 2024 Performance - as Adjusted B Full ear 2024 Aasted Rests PS ree jaming Revenue $1,511 $2,544 $80 N/A $4136 % vs PY +4% 12% -88% N/A 17% Operating Profit $632 $152 $49 $6 $839 Operating Margin % 41.8% 6.0% 61.4% N/A 20.3% FY 2023 Operating Margin % 361% -07% -7.0% N/A 9.5% O
Slide 11: Q4 2024 Operating Margin Performance
Q4 2024 Operating Margin Performance B As Reported Operating Margin Drivers Adjusted Operating Margin Drivers ($ millions} Amounts may not sum due to rounding {$ millions) Amounts may not sum due to rounding Q4 2023 Op Margin -93.0% ($1,199) Q4 2023 Op Margin (Adjusted) -3.9% ($50) Volume & Mix* +41
Slide 12: Full Year 2024 Operating Margin Performance
Full Year 2024 Operating Margin Performance B As Reported Operating Margin Drivers Adjusted Operating Margin Drivers {$ millions) Amounts may not sum due to rounding {$ millions) Amounts may not sum due to rounding FY 2023 Op Margin -30.8% ($1,539) FY 2023 Op Margin (Adjusted) 9.5% $477 Volume & Mix
Slide 13: Total Hasbro Owned Inventory Reduction
Total Hasbro Owned Inventory Reduction Down 39% vs. Q4 2019 Down 17% vs. Q4 2023 > Current inventory represents “80 days of supply, down 39% versus last year » Aged inventory remains at all time lows Q4 2019 Q4 2022 Q4 2023 Q3 2024 Q4 2024 ($ in millions)
Slide 14: Wizards of the Coast Revenue Drivers
Wizards of the Coast Revenue Drivers 3% [a 16% Wizards Analog Wizards Digital 1% | -2% Wizards Analog Wizards Digital (GIC: THE GATHERING, DUNGEONS & DRAGONS, and other games; 7% Digital Licensing 5% Digital Licensing FX FX 65 and Digital Games repre: -7% Total Revenue Decline 4% Total Revenue Growt
Slide 15: Wizards of the Coast Op Margin Performance
Wizards of the Coast Op Margin Performance 2023 Op Margin 28.4% $103 36.1% $526 Volume & Mix* -1.5 pts ($13) +2.9 pts $63 Gross Sales to Net Sales Rate +2.5 pts $9 -0.1 pts ($2) Business mix shift to digital Royalties +08 pts $3 AA ati $21 driving FY margin improvement Supply chain productivity more
Slide 16: Consumer Products Revenue Drivers
Consumer Products Revenue Drivers p ze, _ - ~ ~ weets—s‘ . _ — a a -5% Exited Business Volume & Mix Selling Rate Licensing FX Total Revenue Decline . 2% ee ——_—_—_—_a | _ ” “ | fs -11% -12% Exited Business Volume & Mix Selling Rate Licensing FX Total Revenue Decline Volume/Mix represents gross sales
Slide 17: Consumer Products Op Margin Performance
Consumer Products Op Margin Performance 2023 Op Profit Margin (Adjusted) Volume & Mix* Gross Sales to Net Sales Rate Royalties COS Savings > Cost Inflation* Operating Expenses Non-Recurring Items, All Other Intl curring ntertainment cial measure ($115) -3.1 pts ($82) +2.0 pts $55 -0.6 pts ($15) +3.6
Slide 18: Total Hasbro, Inc. Cash Flow & Metrics
Total Hasbro, Inc. Cash Flow & Metrics $122M year over year driven by improved profitability and $847 working capital $726 Capital spending down YOY due to project timing Adjusted Underlying Tax Rate of 22.3% vs. 27.9% PY Returned $390 million cash to shareholders via dividends Reduced debt by $83 m
Slide 19: 2025 Guidance
2025 Guidance’ FY 2025 Guidance FY 2024 Actual Net Revenues (Constant Currency) Up slightly $4,136 million Adjusted Operating Margin 21% to 22% 20.3% Adjusted EBITDA $11 billion to $1.15 billion $1,057 million Tax Rate* 23% - 24% 22.3% Capex ~$250 million $197 million “Tax rate represents the adjust
Slide 20: MAGIC: THE GATHERING
MAGIC: THE GATHERING 2025 Release Cadence 2024 MAGIC Tentpole Sets MURDERS ar KARLOV MANOR OUTLAWS# THUNDER JUNCTION MODERN HORIZONS Wl BICOMBYRROW DUSKMOURN HOUSE or HORROR PRAGICTHE GATHERING FOUNDATIONS 2025 MAGIC Tentpole Sets 2 AETHER DOAR/FT TARKIR DRAGONSTORM PINAL FANTASY EDGEce ETERNITIES S
Slide 21: Games
Games IP Toys Profitable Franchises Digital & Direct Partner Scaled “Dienep S$ SCOPELY © PINAL FANTASY NETFLIX amazon “stores UNIVERSAL a N. NE LIONSGATE 7N \ SONY <@ilip s'>+ Carn
Slide 22: New Expansion Brands
New Se CIWOE= Expansion [ieMmuior Brands eECOME THE TRAYELER DUNGEONS DRAGONS 22
Slide 23: Transformation Initiatives
Transformation Initiatives
Slide 24: Medium-Term Guidance (2025-2027)
Medium-Term Guidance (2025-2027) GB Key Metric Measure Revenue (Constant Currency) Mid-Single Digit Growth CAGR Adjusted Operating Margin 50bps to 100bps Average Expansion per year Cost Savings* $1B Gross Cost Savings Capital Allocation 2.5x Gross Debt to Adjusted EBITDA by 2026 *Cost savings are ca
Slide 25: Operational Excellence Program
Operational Excellence Program Path to $1B of Gross Cost Savings O Approx. Net Savings $1B $220M $175M $85M $20M — bo 2022 2023 2024 2025 2026 2027 Cumulative Realized “$227M of net cost savings year to date driven by Supply Chain and Operational Excellence savings Increased target to $1B of gross s
Slide 26: Supplemental Financial Information
Supplemental Financial Information
Slide 27: Gross Margin Performance
Gross Margin Performance Pcs i 2023 Gross Margin 45.9% $591 56.9% $2.848 Volume & Mix* +4.0 pts $36 43.1 pts ($1) Underlying Gross Margin drivers: » Supply Chain productivity COS Savings > Cost Inflation* +11 pts $13 +2.8 pts $14 » Lower closeout sales eOne Divestiture +0.3 pts ($66) +2.4 pts ($219)
Slide 28: Condensed Consolidated Balance Sheets
(Millions of Dollars Cash and Cash Equivalents Accounts Receivable, Net Inventories Prepaid Expenses and Other Current Assets Total Current Assets Property, Plant and Equipment, Net Goodwill Other Intangible Assets, Net Other Assets Total Assets December 29,2024 December 31, 2023 $ 695.0 $ 545.4 919
Slide 29: Condensed Consolidated Statements of Operations
‘Three Months Ended Year Ended December 29, 2024 December 31, 2023 December 29, 2024 December 31, 2023 % of Net ‘% of Net % of Net ‘% of Net Amount Revenues Amount Revenues Amount. Revenues Amount Revenues: ‘Net revenues $s 1,101.6 100.0% $ 1,288.9 100.0% $ 4135 100.0% $ 5,003.3 100.0% Costs and exp
Slide 30: Condensed Consolidated Statement of Cash Flows
Condensed Consolidated Statement of Cash Flows! (Unaudited) (Millions of Dollars Cash Flows from Operating Activites: Net Eamings (Loss) Impairment of Goodwil ‘Loss on Disposal of Business Other Non-Cash Adjustments ‘Changes in Operating Assets and Liabilities Net Cash Provided by Operating Activiti
Slide 31: Hasbro Q4 Share in Focus Categories
Hasbro Q4 Share in Focus Categories Focus Categories — Q@4 2024 Hasbro Hasbro Focus Category Share Position | s Amazing Friends Action Figures & Accessories Vv -1.0 pts 23.4% 1 Arts & Crafts Fourth quarter decline in PLAY-DOH POS Arts & Crafts WV -07 pts 177% 1 Games* HASBRO GAMING POS declined in G
Slide 32: Hasbro FY Share in Focus Categories
Hasbro FY Share in Focus Categories Focus Categories — FY 2024 Focus Category Action Figures & Accessories Arts & Crafts Games excl. STCG* Preschool Toys Blasters & Accessories +01 pts -1.0 pts -11 pts Hasbro Hasbro Share Position 23.4% 1 19.1% 1 176% 1 4.3% 6 42.9% 1 Spidey and His Amazing Friends
Slide 33: Segment Results - As Reported and As Adjusted Q4
Segment Results-As Three Months Ended December 29, 2024 Three Months Ended December 31, 2023 eported an =r aoee a Operating Results: AsReported —_ Adjustments Adjusted _As Reported Adjustments Adjusted —_ Change. ° ‘Total Company Results As Adjusted'- External Net Revenues S 11016 § — $1016 $ 12889
Slide 34: Net Revenues by Brand Portfolio - Q4
Continued (U ed) (Millions of Dollars Three Months Ended ‘December 29, December 31, 2024 2023, Net Revenues by Brand Portfolio % Change Franchise Brands " s 7862 $ e437 7% Partner Brands 181.0 154.0 18% Portfolio Brands ® 1344 1512 1% \Non-Hasbro Branded Fim & TV = 140.0 100% Total $ 11016 S$ 1,268.
Slide 35: Segment Results - As Reported and As Adjusted FY 2024
Segment Results-As Reported and As Adjusted'- FY 2024 (Unaudited) (Millions of Dollars Year Ended December 29, 2024 Year Ended December 31, 2023 Non-GAAP Non-GAAP % AsRoported Adjustments Adjusted As Reported —_ Adjustments Adjusted Change S$ 41355 $ — $4135 $ 50033 $ — $5,033 AT% 690.0 148.8 838.8
Slide 36: Net Revenues by Brand Portfolio - FY
(Unaudited) (Millions of Dollars Year Ended December 29, December 31, 2024 2023 ‘Net Revenues by Brand Portfolio % Change Franchise Brands 1209 $ «32865 + Partner Brands 583.4 6878 “15% Portfolio Brands 4312 521.8 A™% Non-Hasbro Branded Film & TV = $372 100% Total S435 S 50033 © Franchise Brands inc
Slide 37: EBITDA and Adjusted EBITDA Reconciliation
mncilii BITDA ani d EI “ Quarter Ended Year Ended December 29, December 31, December 29, December 31, 2024 2023 2024 2023 Net Earnings (Loss) Attributable to Hasbro, Inc. $ (34.3) $ (1,061.1) $ 3856 $ (1,489.3) Interest Expense 43.5 46.3 171.2 186.3 Income Tax Expense (Benefit) (30.7) (184.4) 102.6
Slide 38: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (Unaudited) (Millions of Dollars Reconciliation of Adjusted Operating Profit Operating Profit (Loss) Consumer Products ards of the Coast and Digital Gaming Entertainment te and Other Non-GAAP Adjustments Consumer Products Entertainment Corporate and Othe
Slide 39: Reconciliation of Net Earnings and Earnings per Share
(Millions of Dollars and Shares Except Per Share Data) Reconciliation of Net Earnings and Earnings per Share ‘? (all adjustments reported after-tax) Net Loss Attributable to Hasbro Acquired intangible amortization Strategic transformation initiatives Restructuring and severance costs Loss on disposa
Slide 40: Reconciliation of Non-GAAP Financial Measures Continued
Reconciliation of Non-GAAP Financial Measures Continued (Unaudited) (Millions of Dollars and Shares Except Per Share Data) in association with the Company's acquisition of eOne, the Company incu ied December 31, 2023. The expense is included within Selling, r after-tax) for the year and Adminis! e h