Slide 1: Q3 2022 Earnings
Q3 2022 Earnings October 18, 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 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: Blueprint 2.0
Digital Games & Services Toys & Games eCommerce i! Licensing 4 Mass & Discount ). Ed Specialty & LBE
Slide 5: Platform
Play Behavior Deep Shopper Play Studies & Engagement Net Promoter ‘ TED ID sy, » om Srey, Clicksteam common . Brand Studies & & POS —— data core Licensor Insights P a POS & Category Insights f Loyalty Program, )\Event Engagement
Slide 6: Entertaining and Connecting Generations of Fans Through Storytelling and Play
Entertaining and Connecting Generations of Fans Through Storytelling and Play Blueprint 2.0 Focus on Bottom Line Guidance for FY22 Performance Blueprint 2.0: Growth in high margin gaming, including 2022 Guidance • Engage consumers across games, play MAGIC: THE GATHERING • Revenue flat to slightly do
Slide 7: Q3 2022 snapshot
Q3 2022 $1.68B Net Revenues down 15%; down 12% absent FX snapshot As Reported $194.3M Operating Profit As Adjusted* $270.5M Net As Reported $129.2M Earnings As Adjusted* $196.2M Earnings As Reported $0.93 per diluted share Per Share As Adjusted* $1.42 per diluted share EBITDA As Reported $267.1M As
Slide 8: YTD 2022 snapshot
YTD 2022 $4.18B Net Revenues down 5%; down 3% absent FX snapshot As Reported $533.4M Operating Profit As Adjusted* $653.3M Net As Reported $332.4M Earnings As Adjusted* $436.2M Earnings As Reported $2.39 per diluted share Per Share As Adjusted* $3.14 per diluted share EBITDA As Reported $726.5M As A
Slide 9: 2022 Announcements & Highlights
LAUNCHING NOVEMBER 11 ON PARAMOUNT+ 95% FRESH ROTTON TOMATO SCORE 99% AUDIENCE SCORE 2022 ANNOUNCEMENTS & HIGHLIGHTS TOP 10 KIDS SHOW IN 25 COUNTRIES PREMIERED ON NETFLIX SEPTEMBER 26
Slide 10: Third Quarter Net Revenue & Operating Profit Performance
Third Quarter Net Revenue & Operating Profit Performance NET REVENUES Q3 2022 OPERATING PROFIT -47% As Reported -15% -31% As Adjusted* $1,970 $1,676 2021 $368 $390 2021 Adjusted* $271 2022 $194 $ Millions, unaudited 2022 Adjusted* 3rd Quarter Revenues declined across brand portfolio categories • Rel
Slide 11: Nine Months Net Revenue & Operating Profit Performance
Nine Months Net Revenue & Operating Profit Performance NET REVENUES YTD 2022 OPERATING PROFIT -10% -5% As Reported -16% $4,407 $4,178 $775 As Adjusted* 2021 $653 $592 $533 2021 Adjusted* 2022 $ Millions, unaudited 2022 Adjusted* • Wizards & Digital Gaming on track for another record year Wizards of
Slide 12: Third Quarter & Nine Months Brand Portfolio Performance
Third Quarter & Nine Months Q3 and YTD 2022 PERFORMANCE Brand Portfolio Performance Q3 Q3 % YTD YTD % FRANCHISE BRANDS PEPPA PIG and PLAY-DOH grew for the quarter and YTD; MAGIC: 2022 2021 Change 2022 2021 Change THE GATHERING down in Q3, revenues flat YTD Total Franchise $814 $925 -12% $2,101 $2,12
Slide 13: Third Quarter 2022 Major Expense Items
Third Quarter 2022 Major Expense Items % CHANGE Q3 2022 Q3 2022 Q3 2021 YOY % OF REVENUE NOTES Lower revenues as well as higher sales allowances and product costs in the Cost of Sales $587 $610 -3.8% 35.0% Consumer Products segment; higher inventory provisions and FX impact Program Production Lower
Slide 14: Nine Months 2022 Major Expense Items
Nine Months 2022 Major Expense Items Nine Months Nine Months % CHANGE Nine Months 2022 2021 YOY % OF REVENUE NOTES Higher freight and input costs Cost of Sales $1,331 $1,244 +7.0% 31.9% pressures as forecasted Program Production Mix and timing of deliveries in the $366 $396 -7.7% 8.8% Cost Amortizat
Slide 15: Wizards of the Coast & Digital Gaming Segment (Q3)
Wizards of the Coast & Digital Gaming Segment NET REVENUES Q3 2022 OPERATING PROFIT -16% -36% $360 $159 $304 2021 2022 $102 $ Millions, unaudited • Revenues down 13% absent $8.8M negative impact of FX • Operating Profit Margin 33.7% • MAGIC: THE GATHERING down in the quarter due to timing of release
Slide 16: Wizards of the Coast & Digital Gaming Segment (YTD)
Wizards of the Coast & Digital Gaming Segment NET REVENUES YTD 2022 OPERATING PROFIT -6% -2% $462 $434 $1,009 $986 2021 2022 $ Millions, unaudited • Revenues flat, absent $20M negative impact of FX • MAGIC: THE GATHERING flat; up 2% absent FX • Operating profit margin 44.0% • DUNGEONS & DRAGONS down
Slide 17: Consumer Products Segment (Q3)
Consumer Products Segment NET REVENUES Q3 2022 OPERATING PROFIT -35% -10% as reported -31% $1,283 as adjusted* $1,161 2021 $210 $ Millions, unaudited 2022 $146 $137 2022 Adj* • Revenue down 6% absent $40.0M negative • Q3 2022 POS down impact of FX • Preschool POS up • Adjusted Operating Profit decre
Slide 18: Consumer Products Segment (YTD)
Consumer Products Segment NET REVENUES YTD 2022 OPERATING PROFIT -47% -2% as reported $261 -36% as adjusted* 2021 $ Millions, unaudited $2,626 $2,568 2022 $168 $139 2022 Adj* • Revenue Up 1% absent $72.6M negative impact of • YTD 2022 POS down, showing • Operating Profit decreased due to lower FX im
Slide 19: Consumer Products Segment Net Revenues by Geography
Consumer Products Segment Net Revenues by Geography Nine Nine % Months Months % Q3 2022 Q3 2021 CHANGE 2022 2021 CHANGE NORTH Q3 and YTD Growth $693 $805 -14% $1,532 $1,559 -2% in Latin America AMERICA Asia Pacific up Q3 EUROPE $272 $304 -11% $610 $669 -9% and YTD, absent FX Europe approximately ASI
Slide 20: Entertainment Segment (Q3)
Entertainment Segment NET REVENUES Q3 2022 OPERATING PROFIT ->100% As reported -86% -35% As adjusted* $327 2021 $212 2021 Adjusted* $42 2022 $22 $ Millions, unaudited $6 2022 Adjusted* $(29) • Revenues declined on revenue timing including TV & Film deliveries for the • Adjusted Operating Profit* dec
Slide 21: Entertainment Segment (YTD)
Entertainment Segment NET REVENUES YTD 2022 OPERATING PROFIT +97% -47% -19% $94 as reported as adjusted* $773 $50 2021 $624 2021 Adjusted* 2022 $ Millions, unaudited 2022 Adjusted* $(2) $(74) TV & Film deliveries YTD include: • Segment declined 12% excluding Music business sold TV: Graymail, The Roo
Slide 22: Third Quarter and Nine Months 2022 Net Earnings
Third Quarter and Nine Months 2022 Net Earnings THIRD QUARTER NINE MONTHS YTD ‘22 Repurchased $125.0M of Hasbro $ Millions, except per share data, unaudited $271 $555 common stock $253 $4.01 $1.96 per $436 $1.83 per $196 diluted diluted $347 share per $332 share diluted $3.14 share per $129 $1.42 di
Slide 23: Operational Excellence
Operational Excellence Cost Savings Forecast Costs to Achieve* $300 $55.3M Charge Q3 $250 2022 Cash Charges: $30M $150 Non-Cash Charges: $120 $25M $ Millions $50 $60 $20 2022 2023 2024 2025 2022 2023 2024 *expected cash spend per year to achieve; does not include non-cash charges Forecasted 2025 P&L
Slide 24: Key Cash Flow and Balance Sheet Data
Key Cash Flow and Balance Sheet Data NINE MONTHS ENDED $ Millions, unaudited SEPT 25, 2022 SEPT 26, 2021 NOTES Completed D&D Beyond acquisition for $146M; Cash $552 $1,181 Returned $414M to shareholders; Inventory on hand for 2H Long-term Debt $3,725 $3,977 Paid down $73M in Debt in YTD Depreciation
Slide 25: ESG Performance + Q3 2022 Achievements
ESG Performance + Q3 2022 Achievements Hasbro’s ESG strategy continues to drive long-term value creation for all stakeholders Climate and Sustainability Ethical Sourcing and Human Rights Achieved Achieved Achieved 99.6% 100% 100% Audit rate annually for all third-party suppliers and major subcontrac
Slide 26: Supplemental Financial Information
Supplemental Financial Information 26
Slide 27: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (Millions of Dollars) (Unaudited) September 25, September 26, 2022 2021 ASSETS Cash and Cash Equivalents $ 551.6 $ 1,181.2 Accounts Receivable, Net 1,188.8 1,476.6 Inventories 844.5 544.1 Prepaid Expenses and Other Current Assets 658.8 528.5 Assets Held for Sale
Slide 28: Condensed Statements of Operations
Condensed Statements of Operations (Millions of Dollars and Shares Except Per Share Data) (Unaudited) Quarter Ended Nine Months Ended September % Net September % Net September % Net September % Net 25, 2022 Revenues 26, 2021 Revenues 25, 2022 Revenues 26, 2021 Revenues Net Revenues $ 1,675.9 100.0%
Slide 29: Condensed Consolidated Cash Flows
Condensed Consolidated Cash Flows Nine Months Ended (Millions of Dollars) (Unaudited) September September 25, 2022 26, 2021 Cash Flows from Operating Activities: Net Earnings $ 331.6 $ 350.5 Other Non-Cash Adjustments 567.1 814.2 Changes in Operating Assets and Liabilities (636.5) (479.1) Net Cash P
Slide 30: Supplemental Financial Data: Segment Results Q3 2022
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-Q3 2022 Quarter Ended September 25, September 26, (Unaudited) (Millions of Dollars) (1) Net Revenues by Brand Portfolio 2022 2021 % Change Operating Results Franchise Brands (i) $ 814.1 $ 925.1 -12% Partner Brands 349.9 366.7
Slide 31: Supplemental Financial Data: Segment Results YTD 2022
SUPPLEMENTAL FINANCIAL DATA SEGMENT RESULTS - AS REPORTED and AS ADJUSTED-YTD 2022 (Unaudited) (Millions of Dollars) Nine Months Ended September 25, 2022 Nine Months Ended September 26, 2021 Non-GAAP Non-GAAP Nine Months Ended As Reported Adjustments Adjusted As Reported Adjustments Adjusted % Chang
Slide 32: 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 Nine Months Ended September 25, September 26, September 26, 2022 2021 September 25, 2022 2021 Operating Profit $ 194.3 $ 367.9 $ 533.4
Slide 33: Reconciliation of EBITDA and Adjusted EBITDA
SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Reconciliation of EBITDA and Adjusted EBITDA (Unaudited) (Millions of Dollars) Quarter Ended Nine Months Ended September 25, September 26, September 25, September 26, 2022 2021 2022 2021 Net Earnings Attributable to Hasbro, In
Slide 34: 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) September 25, 2022 Per Share Amount S