Slide 1: Q4/FY 2022 Earnings
Q4/FY 2022 Earnings February 16, 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 and Medium and Long-Term Objectives
2023 Outlook ► Revenue down low-single digits Medium and Long-Term ► 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 Objectives ► Adjusted EBITDA appr
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: Q4 2022 snapshot
Q4 2022 $1.68B Net Revenues down 17%; down 14% absent FX snapshot As Reported $(125.7)M Operating (Loss) Profit As Adjusted* $269.2M Net (Loss) As Reported $(128.9)M Earnings As Adjusted* $181.9M Earnings As Reported $(0.93) per diluted share (Loss) Per Share As Adjusted* $1.31 per diluted share EBI
Slide 9: FY 2022 snapshot
FY 2022 $5.86B Net Revenues down 9%; down 6% absent FX snapshot As Reported $407.7M Operating Profit As Adjusted* $922.5M Net As Reported $203.5M Earnings As Adjusted* $618.1M Earnings As Reported $1.46 per diluted share Per Share As Adjusted* $4.45 per diluted share EBITDA As Reported $665.1M As Ad
Slide 10: Announcements & Highlights
TRAILER & TOY PRE-ORDER AVAILABLE PREMIERED DECEMBER 16 NUMBER 1 SERIES 2022 ON NETFLIX IN ITS FIRST WEEK ANNOUNCEMENTS RENEWED FOR S2 & HIGHLIGHTS FEATURE DOCUMENTARY IN PRODUCTION DIRECTED BY JOE MANGANIELLO & 10 KYLE NEWMAN
Slide 11: Fourth Quarter Net Revenue & Operating Profit Performance
Fourth Quarter Net Revenue & Operating Profit Performance NET REVENUES Q4 2022 OPERATING PROFIT >-100% +22% -17% As Reported As Adjusted* $2,013 $1,679 2021 2021 Adjusted* $269 2022 $220 $172 $ Millions, unaudited 2022 Adjusted* • MAGIC: THE GATHERING up 40% • Consumer Products business $(126) under
Slide 12: Full-Year Net Revenue & Operating Profit Performance
Full-Year Net Revenue & Operating Profit Performance NET REVENUES FY 2022 OPERATING PROFIT -9% -47% As Reported $6,420 -7% As Adjusted* $5,857 2021 $995 $923 2021 Adjusted* $763 2022 $ Millions, unaudited 2022 Adjusted* $408 • Record year for Wizards & Digital Gaming; Growth in Hasbro Pulse and Lice
Slide 13: Fourth Quarter & Full-Year Brand Portfolio Performance
Fourth Quarter & Full-Year Q4 and FY 2022 PERFORMANCE Brand Portfolio Performance FRANCHISE BRANDS Growth in MAGIC: THE GATHERING, PEPPA PIG and PLAY- DOH for the full year; MAGIC: THE Q4 Q4 % FY % GATHERING up 40% in Q4 2022 2021 Change 2022 FY 2021 Change PARTNER BRANDS Total Franchise $729 $830 -
Slide 14: Fourth Quarter 2022 Major Expense Items
Fourth Quarter 2022 Major Expense Items Q4 2022 % CHANGE Adjusted NOTES Q4 2022 Q4 2021 Adjusted % OF Below exclude non-GAAP Q4 2022 Adjusted Q4 2021 Adjusted YOY REVENUE adjustments Lower revenues as well as higher sales allowances and product costs in the Cost of Sales $581 $566 $683 $683 -17% 33.
Slide 15: Full-Year 2022 Major Expense Items
Full-Year 2022 Major Expense Items Full-Year Full-Year Full-Year % CHANGE Adjusted NOTES Full-Year 2022 Full-Year 2021 Adjusted % OF Below exclude non-GAAP 2022 Adjusted 2021 Adjusted YOY REVENUE adjustments Decrease due to lower revenues partially offset by increased Cost of Sales $1,912 $1,897 $1,
Slide 16: Wizards of the Coast & Digital Gaming Segment: Q4
Wizards of the Coast & Digital Gaming Segment NET REVENUES Q4 2022 OPERATING PROFIT +22% +23% $339 $278 $104 2021 $85 2022 $ Millions, unaudited • Revenues up 22%; up 25% absent $8M negative impact of FX • Operating Profit Margin 30.7% • MAGIC: THE GATHERING up 40% in the quarter due to strong initi
Slide 17: Wizards of the Coast & Digital Gaming Segment: FY
Wizards of the Coast & Digital Gaming Segment NET REVENUES FY 2022 OPERATING PROFIT +3% -2% $1,287 $1,325 $547 $538 2021 2022 $ Millions, unaudited • Revenues up 5%, absent $28M negative impact of FX • MAGIC: THE GATHERING up 7%; up 10% absent FX • Operating profit margin 40.6% • DUNGEONS & DRAGONS
Slide 18: Consumer Products Segment: Q4
Consumer Products Segment NET REVENUES Q4 2022 OPERATING PROFIT -44% -26% as reported -28% as adjusted* $1,356 2021 $ Millions, unaudited $1,005 2022 $141 2022 Adj* $102 $78 • Revenue down 23% absent $45M negative • POS declined in the quarter impact of FX • POS Up in Preschool • Operating Profit ma
Slide 19: Consumer Products Segment: FY
Consumer Products Segment NET REVENUES FY 2022 OPERATING PROFIT -10% -46% as reported $3,982 -33% $3,573 $401 as adjusted* 2021 $ Millions, unaudited 2022 $270 $217 2022 Adj* • Revenue down 7% absent $117M negative impact of • FY 2022 POS down • Operating profit margin 6.1%; Adjusted FX • POS up in
Slide 20: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography % Full-Year Full-Year % Q4 2022 Q4 2021 CHANGE 2022 2021 CHANGE NORTH $533 $757 -30% $2,065 $2,316 -11% AMERICA EUROPE $289 $399 -27% $899 $1,068 -16% Full-Year Growth in Latin America ASIA PACIFIC $92 $101 -9% $293 $310 -5% LATIN $91 $99 -8% $315
Slide 21: Entertainment Segment: Q4
Entertainment Segment NET REVENUES Q4 2022 OPERATING PROFIT >100% -12% As reported and $380 As adjusted* $335 2021 $33 $25 2021 Adjusted* 2022 $8 $ Millions, unaudited 2022 Adjusted* $(17) • Revenues decline due to decreased film and TV & Film deliveries for the • Operating profit margin 7.5%; Adjus
Slide 22: Entertainment Segment: FY
Entertainment Segment NET REVENUES FY 2022 OPERATING PROFIT -17% >100% -19% as reported as adjusted* $1,152 $102 $959 $83 2021 2021 Adjusted* $23 2022 $(92) $ Millions, unaudited 2022 Adjusted* TV & Film deliveries include: • Segment declined 12% excluding Music business sold TV: The Rookie, Naked a
Slide 23: Fourth Quarter and Full-Year 2022 Net Earnings
Fourth Quarter and Full-Year 2022 Net Earnings FOURTH QUARTER FULL YEAR $ Millions, except per share data, unaudited $723 182 $618 $168 $5.23 per diluted $4.45 $1.21 $1.31 $429 $82 per per share per diluted diluted diluted $0.59 per share share share diluted $(129) $3.10 share per $204 $(0.93) dilut
Slide 24: Operational Excellence Program: $250-300M Run-Rate Cost Savings by 2025
Operational Excellence Program Objective: Deliver $250-300M in Annual Run-Rate Cost Savings by Year-end 2025 Q4 2022 Realized Savings: $20M Annualized Run Rate Savings Costs to Achieve* $300 $250 10% Product Development 12% Royalty Expenses $150 $145 38% Cost of Sales $ Millions $50 $40 40% SD&A $15
Slide 25: Key Cash Flow and Balance Sheet Data
Key Cash Flow and Balance Sheet Data FULL YEAR ENDED $ Millions, unaudited DEC 25, 2022 DEC 26, 2021 NOTES Returned $510.3M to shareholders; Completed D&D Cash $513 $1,019 Beyond acquisition for $146M Long-term Debt $3,711 $3,824 Paid down $88M in Debt in FY 2022 Depreciation $127 $163 FY 2023 depre
Slide 26: 2022 ESG Progress
2022 ESG Progress Long-term value creation for our stakeholders through responsible and sustainable business practices. CLIMATE & ENVIRONMENT HUMAN RIGHTS & ETHICAL SOURCING • GHG GOALS: Committed to set Science-Based Targets for 2030 (approx. 40% GHG • SOCIAL COMPLIANCE AUDITS: Ensured 100% of thir
Slide 27: Supplemental Financial Information
Supplemental Financial Information 27
Slide 28: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Millions of Dollars) (Unaudited) December 25, December 26, 2022 2021 ASSETS Cash and Cash Equivalents $ 513.1 $ 1,019.2 Accounts Receivable, Net 1,132.4 1,500.4 Inventories 676.8 552.1 Prepaid Expenses and Other Current Assets 676.8 656.4 Total Current Assets 2
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 25, % Net December 26, % Net December 25, % Net December 26, % Net 2022 Revenues 2021 Revenues 2022 Revenues 2021 Revenues Net Revenues $ 1,678.5 100.0% $ 2,013.4 1
Slide 30: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows (Millions of Dollars) (Unaudited) Year Ended December 25, December 26, 2022 2021 Cash Flows from Operating Activities: Net Earnings $ 203.0 $ 435.3 Other Non-Cash Adjustments 1,047.6 1,203.8 Changes in Operating Assets and Liabilities (877.7) (821.2) Net Cash Provid
Slide 31: Segment Results - As Reported and As Adjusted - Q4 2022
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-Q4 2022 Quarter Ended (Unaudited) (Millions of Dollars) December 25, December 26, (1) Net Revenues by Brand Portfolio 2022 2021 % Change Operating Results Franchise Brands (i) $ 729.5 $ 830.2 -12% Partner Brands 276.2 394.3 -3
Slide 32: Segment Results - As Reported and As Adjusted - FY 2022
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-FY 2022 Year Ended (Unaudited) (Millions of Dollars) Year Ended December 25, 2022 Year Ended December 26, 2021 (5) December 25, December 26, Net Revenues by Brand Portfolio 2022 2021 % Change Non-GAAP Non-GAAP Franchise Brands
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 (Loss) Quarter Ended Year Ended December 25, December 26, December 26, 2022 2021 December 25, 2022 2021 Operating Profit (Loss) $ (125.7) $ 171.5 $
Slide 34: Adjusted Operating Profit Non-GAAP Adjustments
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars) Adjusted Operating Profit-Non-GAAP Adjustments: (i) In association with the Company's acquisition of eOne, the Company incurred stock compensation expenses of $4.5 ($4.0 after-tax) and $14.6 (
Slide 35: 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 25, December 26, December 25, December 26, 2022 2021 2022 2021 Net Earnings (Loss) Attributable to Hasbro, Inc. $
Slide 36: Reconciliation of EBITDA and Adjusted EBITDA by Segment
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (Millions of Dollars) Reconciliation of EBITDA and Adjusted EBITDA-By Segment Adjusted EBITDA by Segment: Consumer Products $ 165.7 $ 182.0 $ 491.2 $ 565.1 Wizards of the Coast and Digital Gaming 115.9 107.0 570.1
Slide 37: 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 Quarter Ended Diluted Diluted (all adjustments reported after-tax) December 25, 2022 Per Share Am
Slide 38: 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 39: 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% 39
Slide 40: 2022 Other (Income) Expense, Net
2022 Other (Income) Expense, Net 2022 2021 Earnings f rom Discovery Family Channel (8.1) (20.8) Foreign currency (gains) losses $ (5.3) $ (5.1) Loss (gain) on investments OTHER (1.1) (3.8) 6% Loss (gain) on PP&E 0.4 (0.2) Legal settlement — (26.7) Discovery Family Channel option — (20.1) Discovery F