Slide 1: 2021 Earnings
2021 Earnings JULY 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 Performing at a High Level Strong Financial the Blueprint Delivering Excellence in Q2 Position Creating immersive experiences Q2 2021 Net Revenues: $1.32B • Q2 2021 Growth in Consumer that drive higher value & capture Net Loss:
Slide 6: Q2 2021 Snapshot
2021 Net Revenues $1.32B snapshot Operating Profit As Reported $76.6M As Adjusted* $211.6M Net (Loss) Earnings As Reported $(22.9M) As Adjusted* $145.4M (Loss) Earnings Per Share: As Reported $(0.17) per diluted share *The As Adjusted figures are As Adjusted* $1.05 per diluted share non-GAAP financi
Slide 7: 2021 Announcements & Highlights
6.3M Viewers 2021 ANNOUNCEMENTS & HIGHLIGHTS 7.1M Viewers
Slide 8: Second Quarter Net Revenue & Operating Profit Performance
Second Quarter Net Revenue & Operating Profit Performance Q2 NET REVENUES OPERATING PROFIT +54% +>100% As Adjusted $1,322 2021 $ Millions, unaudited $212 $860 2020 $77 2020 Adjusted $47 $2 2021 2020 2021 2020 2020 Adj* 2021 2021 Adj* 2021 Adjusted Consumer Products segment +33%; Wizards of the Opera
Slide 9: Six Months Net Revenue & Operating Profit Performance
Six Months Net Revenue & Operating Profit Performance YTD NET REVENUES OPERATING PROFIT (LOSS) +95% As Adjusted +24% $386 $2,437 2021 $ Millions, unaudited $1,966 $224 $198 2020 2020 Adjusted 2021 $(21) 2020 2021 2021 Adjusted Consumer Products segment +23%; Wizards of the Coast & Operating Profit M
Slide 10: Second Quarter and Six Months Brand Portfolio Performance
Second Quarter and Six Months Brand Portfolio Performance Q2 2021 FRANCHISE BRANDS Q2 Q2 % YTD YTD % Up including, MAGIC: ($Million, unaudited) 2021 2020 Change 2021 2020 Change THE GATHERING, NERF, TRANSFORMERS, PLAY- Total Franchise Brands $650 $377 +72% $1,141 $773 +48% DOH, BABY ALIVE and Gaming
Slide 11: Consumer Products Segment Q2
Consumer Products Segment Q2 NET REVENUES OPERATING PROFIT (LOSS) +33% +14% $689 +>100% $520 2021 $ Millions, unaudited $18 $(45) 2020 2021 • Revenue growth across Hasbro brands and • Revenue growth across all • Operating Profit growth driven by product portfolio, including Franchise Brands, geograp
Slide 12: Consumer Products Segment YTD
Consumer Products Segment YTD NET REVENUES OPERATING PROFIT (LOSS) +23% $50 +>100% $1,343 $1,092 2021 $ Millions, unaudited $(55) 2020 2021 • Revenue growth across Hasbro brands and • Revenue growth across all • Operating Profit growth driven by higher product portfolio, including Franchise Brands,
Slide 13: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography Q2 2021 Q2 2020 YTD 2021 YTD 2020 AS AS % CHANGE AS AS % CHANGE REPORTED REPORTED REPORTED REPORTED ($ Millions, unaudited) NORTH $391 $283 +38% $754 $605 +25% AMERICA EUROPE $177 $142 +24% $365 $298 +22% ASIA PACIFIC $68 $61 +13% $133 $119 +12% LA
Slide 14: Wizards of the Coast & Digital Gaming Segment Q2
Wizards of the Coast & Digital Gaming Segment Q2 NET REVENUES OPERATING PROFIT +>100% +>100% $193 $406 2021 $74 $ Millions, unaudited $187 2020 2021 • Revenue growth in MAGIC:THE GATHERING and • Higher revenues drove Operating Profit • Revenues include a DUNGEONS & DRAGONS increase partially offset
Slide 15: Wizards of the Coast & Digital Gaming Segment YTD
Wizards of the Coast & Digital Gaming Segment YTD NET REVENUES OPERATING PROFIT +78% +63% $303 2021 $ Millions, unaudited $649 $170 $397 2020 2021 • Revenue growth in MAGIC:THE GATHERING and • Higher revenues drove increased Operating • Revenues include a DUNGEONS & DRAGONS; Licensed Digital Games P
Slide 16: Entertainment Segment Q2
Entertainment Segment Q2 NET REVENUES OPERATING PROFIT (LOSS) +47% +9% As Adjusted $227 2021 $ Millions, unaudited $9 $10 $154 $(14) 2020 2020 Adjusted 2021 2021 Adjusted $(114) • Adjusted Operating Profit improvement from • Entertainment segment revenues • Revenues include a higher revenues, partia
Slide 17: Entertainment Segment YTD
Entertainment Segment YTD NET REVENUES -7% OPERATING PROFIT (LOSS) -24% As Adjusted $477 $68 $445 $52 2021 $ Millions, unaudited $(78) $(97) 2020 2020 Adjusted 2021 2021 Adjusted Entertainment segment revenues improving as Adjusted Operating Profit decreased due to lower Revenues include a positive
Slide 18: Second Quarter and Six Months 2021 Net Earnings
Second Quarter and Six Months 2021 Net Earnings SECOND QUARTER SIX MONTHS $284 200 275 $2.05 per $ Millions, except per share data, unaudited diluted $145 share 150 175 $1.05 per diluted share 100 $93 $80 75 $0.68 per $0.59 per diluted $0.02 per 50 diluted share diluted share $(104) share $(34) $3 $
Slide 19: Key Cash Flow & Balance Sheet Data
Key Cash Flow & Balance Sheet Data SIX MONTHS ENDED $ Millions, unaudited JUNE 27, 2021 JUNE 28, 2020 NOTES Strong cash position; Received $397M from eOne Music Cash $1,228 $1,038 business sale in early Q3 2021 Repaid $250M in debt in Q2 2021 and $100M in Long-term Debt $4,389 $4,803 early Q3 2021;
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) June 27, 2021 June 28, 2020 ASSETS Cash and Cash Equivalents $ 1,228.2 $ 1,038.0 Accounts Receivable, Net 865.9 911.3 Inventories 499.6 564.2 Prepaid Expenses and Other Current Assets 543.2 672.2 Assets Held for Sale 479.5 - Total Current A
Slide 24: Condensed Statements of Operations
Condensed Statements of Operations (Millions of Dollars and Shares Except Per Share Data) Quarter Ended Six Months Ended June 27, % Net June 28, % Net June 27, % Net June 28, % Net 2021 Revenues 2020 Revenues 2021 Revenues 2020 Revenues Net Revenues $ 1,322.2 100.0% $ 860.3 100.0% $ 2,437.0 100.0% $
Slide 25: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows (Millions of Dollars) Six Months Ended June 27, 2021 June 28, 2020 Cash Flows from Operating Activities: Net Earnings (Loss) $ 95.6 $ (100.8) Other Non-Cash Adjustments 521.2 366.9 Changes in Operating Assets and Liabilities (39.7) (7.8) Net Cash Provided by Operati
Slide 26: Segment Operating Results - Q2 2021
SUPPLEMENTAL FINANCIAL DATA SEGMENT OPERATING RESULTS-AS REPORTED and AS ADJUSTED-Q2 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 - Six Months 2021
SUPPLEMENTAL FINANCIAL DATA SEGMENT OPERATING RESULTS-AS REPORTED and AS ADJUSTED-Six 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, an
Slide 28: Reconciliation of Adjusted Operating Profit
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Reconciliation of Adjusted Operating Profit (Unaudited) (Millions of Dollars) Quarter Ended Six Months Ended June 27, June 28, June 27, June 28, 2021 2020 2021 2020 Operating Profit (Loss) $ 76.6 $ 2.2 $ 223.9 $ (21.1) Consume
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 Six Months Ended Quarter Ended Six Months Ended June 27, June 28, June 27, June 28, June 27, June 28, June 27, June 28, 2021 2020 202
Slide 30: 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 Diluted Diluted (all adjustments reported after-tax) June 27, 2021 Per Share Amount June 2
Slide 31: Segment Performance Historical
Segment Performance Historical PRO FORMA FY 2020 FY 2020 FY 2019 FY 2019 (Millions of Dollars) As Reported As Adjusted As Reported As Adjusted Consumer Products Net Revenues $3,649.6 $3,649.6 $4,005.9 $4,005.9 Operating Profit 308.1 308.1 361.3 361.3 EBITDA 443.3 480.3 545.0 586.9 Wizards of the Coa
Slide 32: Reconciliation of Adjusted Operating Profit (Pro Forma)
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars) Reconciliation of Adjusted Operating Profit For comparability, the quarters and year ended December 29, 2019 includes the pro forma results for the eOne acquisition. Pro Forma reconciliations
Slide 33: Reconciliation of EBITDA and Adjusted EBITDA (Pro Forma)
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars) Reconciliation of EBITDA and Adjusted EBITDA For comparability, the quarters and year ended December 29, 2019 includes the pro forma results for the eOne acquisition. Pro Forma reconciliations