Slide 1: Q1 2022 Earnings
Q1 2022 Earnings April 19, 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 Brand Blueprint Industry-Leading Increased Profit Leadership Gaming Portfolio Guidance for FY22 • Revenue growth across segments • Hasbro’s Total Gaming Portfolio up 4% • 2022 Guidance updated to reflect mid- • Consumer Products; Wizards & D
Slide 6: Q1 2022 snapshot
Q1 2022 $1.16B Net Revenues up 4% snapshot As Reported $120.0M Operating Profit As Adjusted* $141.8M Net As Reported $61.2M Earnings As Adjusted* $79.4M Earnings As Reported $0.44 per diluted share Per Share As Adjusted* $0.57 per diluted share EBITDA As Reported $174.0M As Adjusted* $192.1M *The As
Slide 7: Announcements & Highlights
RENEWED SEASON 5 SEASON 2 PREMIERE 2022 ANNOUNCEMENTS & HIGHLIGHTS SCRIPTED TV SERIES IN DEVELOPMENT FROM RAWSON MARSHALL PREMIERED THURBER MARCH 25 7
Slide 8: First Quarter Net Revenue & Operating Profit Performance
First Quarter Net Revenue & Operating Profit Performance NET REVENUES Q1 2022 OPERATING PROFIT -19% as reported -19% +4% as adjusted* $1,115 $1,163 $174 2021 $147 $142 2021 Adjusted* $120 2022 $ Millions, unaudited 2022 Adjusted* 1st Quarter Growth in Franchise Brands, Partner Brands, Hasbro Gaming
Slide 9: First Quarter Brand Portfolio Performance
First Quarter Brand Portfolio FRANCHISE BRANDS MAGIC: THE GATHERING, MY LITTLE PONY, PEPPA PIG, Performance PLAY-DOH and TRANSFORMERS grew for the quarter PARTNER BRANDS Q1 2022 Q1 2021 % Change Growth driven primarily by Total Hasbro products for the Marvel Gaming Franchise Brands1 $543 $523 +4% po
Slide 10: First Quarter 2022 Major Expense Items
First Quarter 2022 Major Expense Items % CHANGE Q1 2022 Q1 2022 Q1 2021 YOY % OF REVENUE NOTES Revenue growth; Higher freight and Cost of Sales $333 $290 +14.9% 28.6% input costs pressures as forecasted Program Production Higher revenue and mix of content $139 $98 +42.0% 11.9% Cost Amortization deli
Slide 11: Wizards of the Coast & Digital Gaming Segment
Wizards of the Coast & Digital Gaming Segment NET REVENUES Q1 2022 OPERATING PROFIT +9% -3% $263 $242 $110 $106 2021 2022 $ Millions, unaudited • Revenue growth in MAGIC:THE GATHERING, • Operating Profit declined slightly due to DUNGEONS & DRAGONS and DUEL MASTERS higher development, administrative
Slide 12: Consumer Products Segment
Consumer Products Segment NET REVENUES Q1 2022 OPERATING PROFIT -73% as reported -41% +3% as adjusted* $654 $673 2021 $ Millions, unaudited 2022 2022 Adj* $32 $19 $9 • Revenue Up 5% absent FX • POS down in the quarter reflecting the later • Traditionally low profit quarter for toys arrival of our sp
Slide 13: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography Q1 2022 Q1 2021 % CHANGE Growth in three of four NORTH AMERICA $405 $363 +12% regions absent FX EUROPE $177 $189 -6% ASIA PACIFIC $52 $65 -19% LATIN AMERICA $39 $38 +2% TOTAL SEGMENT $673 $654 +3% 13
Slide 14: Entertainment Segment
Entertainment Segment NET REVENUES Q1 2022 OPERATING PROFIT +4% $42 -29% As Reported as reported -50% +50% as adjusted* $228 $219 2021 2021 Adjusted* $21 2022 $17 $ Millions, unaudited $12 2022 Adjusted* • Entertainment segment revenues led by TV & Film deliveries for the • Adjusted Operating Profit
Slide 15: First Quarter 2022 Net Earnings
First Quarter 2022 Net Earnings FIRST QUARTER $ Millions, except per share data, unaudited 150 $138 $116 Plan to Resume Share Repurchase 100 $1.00 $79 Program in Q2 ‘22 per $0.84 diluted $61 per diluted share $0.57 per FY 2022 Target 50 share $0.44 per diluted $75-$150M share diluted share 0 2021 20
Slide 16: Key Cash Flow and Balance Sheet Data
Key Cash Flow and Balance Sheet Data QUARTER ENDED $ Millions, unaudited MAR 27, 2022 MAR 28, 2021 NOTES Cash $1,058 $1,430 Strong cash position Paid down $57.5M in Long-term Debt in Q1 22; Long-term Debt $3,738 $4,674 Production Financing up $29M Depreciation $25 $25 FY 2022 depreciation target $13
Slide 17: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY Our commitment to Purpose and ESG 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 17
Slide 18: Q1 2022 Key Purpose & ESG Achievements
Q1 2022 Key Purpose & ESG Achievements External Climate & Recognition Sustainability Human Rights Hasbro named one of the World’s Most Ethical Companies® • Committed to setting science • Launched Responsible Recruitment • 11th consecutive year based near-term (2030) and long- Policy to support third
Slide 19: Supplemental Financial Information
Supplemental Financial Information 19
Slide 20: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Millions of Dollars) (Unaudited) March 27, 2022 March 28, 2021 ASSETS Cash and Cash Equivalents $ 1,057.9 $ 1,430.4 Accounts Receivable, Net 931.7 810.4 Inventories 644.3 429.2 Prepaid Expenses and Other Current Assets 621.4 566.0 Total Current Assets 3,255.3 3
Slide 21: Condensed Statements of Operations
Condensed Statements of Operations (Millions of Dollars and Shares Except Per Share Data) (Unaudited) Quarter Ended % Net % Net March 27, 2022 Revenues March 28, 2021 Revenues Net Revenues $ 1,163.1 100.0% $ 1,114.8 100.0% Costs and Expenses: Cost of Sales 333.1 28.6% 289.9 26.0% Program Cost Amorti
Slide 22: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows (Millions of Dollars) (Unaudited) Quarter Ended March 27, 2022 March 28, 2021 Cash Flows from Operating Activities: Net Earnings $ 62.9 $ 117.5 Other Non-Cash Adjustments 179.3 193.8 Changes in Operating Assets and Liabilities (107.5) 66.3 Net Cash Provided by Opera
Slide 23: Supplemental Financial Data: Segment Results As Reported and As Adjusted
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED (Unaudited) (Millions of Dollars) Operating Results Quarter Ended Quarter Ended March 27, 2022 Quarter Ended March 28, 2021 Non-GAAP Non-GAAP (1) Net Revenues by Brand Portfolio March 27, 2022 March 28, 2021 % Change As Report
Slide 24: 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 March 27, 2022 March 28, 2021 Operating Profit $ 120.0 $ 147.3 Consumer Products 8.6 32.3 Wizards of the Coast and Digital Gaming 106.
Slide 25: 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 Consumer Products: March 27, March 28, Operating Profit $ 8.6 $ 32.3 2022 2021 Other (Expense) Income 0.8 6.2 Net Earnings Attributab
Slide 26: 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) March 27, 2022 Per Share Amount March
Slide 27: 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% C
Slide 28: Net Revenue by Brand Portfolio Restated
Net Revenue by Brand Portfolio Restated Beginning in fiscal year 2022, Hasbro designated Peppa Pig as a Franchise Brands. Net revenue by Brand Portfolio below has been restated to show the reclassification of Peppa Pig historical revenues to Franchise Brands, from Emerging Brands. Quarter Ended Fisc
Slide 29: Additional Information and Where to Find It
Additional Information and Where to Find It Hasbro has filed with the SEC a preliminary proxy statement on Schedule 14A, containing a form of WHITE proxy card, with respect to its solicitation of proxies for Hasbro’s 2022 Annual Meeting of Shareholders (the “2022 Annual Meeting”). The proxy statemen
Slide 30: Participants
Participants This communication is neither a solicitation of a proxy or consent nor a substitute for any proxy statement or other filings that may be made with the SEC. Nonetheless, Hasbro, its directors and executive officers and other members of management and employees may be deemed to be partici