Slide 1: Q1 2025 Earnings
Q1 2025 Earnings APRIL 24, 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 earnings
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 forward-looking words or phrases, include statements relating to our business s
Slide 4: First Quarter 2025 Highlights
First Quarter 2025 Highlights Total Hasbro revenues increased 17% behind momentum in Wizards and stronger than expected Consumer Products Wizards segment increased 46% with growth in MAGIC: THE GATHERING, licensed and digital gaming and DUNGEONS & DRAGONS Operating Profit Consumer Products declined
Slide 5: First Quarter
First Quarter a © MONSTER MANUAL .
Slide 6: Hasbro, Inc. First Quarter 2025 Performance
Hasbro, Inc. First Quarter 2025 Performance Q1 2025 Reported Results ($ millions, except earnings per share) Revenue % vs PY Operating Profit (Loss) Operating Margin % Q1 2024 Operating Margin % Operating Profit (Loss) vs PY Hasbro Net Earnings Net Earnings vs. PY Diluted Earnings Per Share $ vs PY
Slide 7: First Quarter 2025 Performance - as Adjusted
Hasbro, Inc. First Quarter 2025 Performance - as Adjusted B Q1 2025 Adjusted Results a jae ogi Ar Corporate ($ millions, except earnings per share) Gaming & Other Revenue $462 $398 $27 N/A $887 ; % vs PY +46% 4% -5% N/A +17% ' ' Operating Profit (Loss) $230 ($31) $17 $6 $222 Operating Margin % 49.8%
Slide 8: Q1 2025 Operating Margin Performance
Q1 2025 Operating Margin Performance As Reported Operating Margin Drivers Adjusted Operating Margin Drivers ($ millions) Amounts may not sum due to rounding {$ millions) Amounts may not sum due to rounding B Q1 2024 Op Margin 15.3% $u6 Q1 2024 Op Margin (Adjusted) 19.6% $149 Volume & Mix* +11.6 pts
Slide 9: Total Hasbro Owned Inventory Reduction
Total Hasbro Owned Inventory Reduction ($ in millions) Q1 2024 Down 12% vs. Q1 2024 Q4 2024 Up 8% vs. Q4 2024 » Current inventory represents ~93 days of supply, which is on plan for the year. » Aged inventory remains at all time lows Q1 2025
Slide 10: Wizards of the Coast Revenue Drivers
Wizards of the Coast Revenue Drivers 46% 37% 8% ms | -1% Wizards Tabletop Wizards Digital Digital Licensing FX “Total Revenue Increase* “Total may not sum due to rounding Wizards Tabletop represents tabletop MAGIC: THE GATHERING, DUNGEONS & DRAGONS, and other games; Wizerds Digital represents MAGIC:
Slide 11: Wizards of the Coast Op Margin Performance
Wizards of the Coast Op Margin Performance 2024 Op Margin (Adjusted) 38.8% $123 Volume & Mix* +13.3 pts $5 Gross Sales to Net Sales Rate +1.0pts $9 » Supply chain productivity drives a point of growth Royalties +0.9 pts $4 COS Savings > Cost Inflation +1.0 pts $5 Royalty upside driven by product mix
Slide 12: Consumer Products Revenue Drivers
Consumer Products Revenue Drivers 4% -1% -4% Volume & Mix Selling Rate Licensing “Total may not sum due to rounding Volume/Mix represents gross sales volume impact to operating profit and impact of mix on net sales FX -4% Total Revenue Decline*
Slide 13: Consumer Products Op Margin Performance
Consumer Products Op Margin Performance 2024 Op Margin (Adjusted) -9.2% -$38 Volume & Mix* +1.9 pts $8 Gross Sales to Net Sales Rate -1.4pts $5 Royalties* -0.8 pts -$3 COS Savings > Cost Inflation* +1.6 pts $6 Operating Expenses +1.6 pts $7 Non-Recurring Items, All Other -1.5 pts -$6 >rofit and im,
Slide 14: Cash Flow & Metrics
Total Hasbro, Inc. Cash Flow & Metrics year over year driven byt iit g of accounts receivable YOY Capital spending down YOY due to project timing Returned $98 million cash to shareholders via dividends $178 . 50 milli $138 Reduced debt by $50 million YTD 2024 YTD 2025 ($ in millions)
Slide 15: 2025 Guidance
2025 Guidance’ FY 2025 Guidance FY 2024 Actual Net Revenues (Constant Currency) Up slightly $4136 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 "The Company is not changing its
Slide 16: 2025 Adj EBITDA Tariff Exposure-Sensitivity Analysis
2025 Adj EBITDA Tariff Exposure-Sensitivity Analysis B Includes * Gross tariff exposure wiChina @ 145% * Mitigating actions + Est Rev & Vol deleverage Net Incremental Tariff Accelerated Cost Savings Initial Adj. EBITDA Guide* Impact Wizards Upside Approx. 2025 Adj. EBITDA Above outlook will continue
Slide 17: MAGIC: THE GATHERING 2025 Release Cadence
MAGIC: THE GATHERING 2025 Release Cadence 2024 MAGIC Tentpole Sets MURDERS ar KARLOV MANOR OUTLAWS JHUNDER JUNCTION MODERN HORIZONS Wl BICOMBYRROW DUSKMOURN HOUSE or HORROR PANGIC THE GATHERING FOUNDATIONS 2025 MAGIC Tentpole Sets 2n4 LALET LES UDIRLET TARKIR DRAGONSTORM PINAL FANTASY EDGEor ETERNIT
Slide 18: Operational Excellence Program
Operational Excellence Program Path to $1B of Gross Cost Savings a Approx. Net Savings $1B Performance is in line with expectations and we remain committed to achieve our targets. Increased target to $1B of gross savings by 2027 Expect approximately “50% of gross savings to flow through to bottom li
Slide 19: Medium-Term Guidance (2025-2027)
Medium-Term Guidance (2025-2027)' B 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 20: Supplemental Financial Information
Supplemental Financial Information
Slide 21: Gross Margin Performance
Gross Margin Performance 2024 Gross Margin 72.0% MottimetesMic *3.5 pts $128 » Underlying Gross Margin Gross Sales to Net Sales Rate +0.1 pts $4 drivers » Higher volume COS Savings > Cost Inflation* +1.0 pts $9 » Business mix shift Non-Recurring Items, All Other* -0.4 pts $n >» FX headwind
Slide 22: Balance Sheet
March 30, 2025 March 31, 2024 ASSETS Cash and Cash Equivalents $ 621.1 $ $70.2 Accounts Receivable, Net 656.6 632.5 > Inventories 295.8 336.2 Shee : Prepaid Expenses and Other Current Assets 380.2 456.5 wltt : Total Current Assets 1,953.7 1,995.4 (Unaudited) Property, Plant and Equipment, Net 293.6
Slide 23: Statement of Operations - Three Months Ended
Three Months Ended March 30, 2025 March 31, 2024 % of Net % of Net ao Amount Revenues “Amount Revenues hs Op ra ti Net revenues $s 887.1 100.0% $ 757.3 100.0 % Ope ations’ —— Cost of sales 204.5 23.1% 204.2 27.0% Program cost amortization 4 08% 81 11% Royalties 57.0 64% 50.9 67% Product development
Slide 24: Statement of Cash Flows
(Unaudited) (Millions of Dollars Cash Flows from Operating Activities: Net Earnings Loss on Disposal of Business Other Non-Cash Adjustments Changes in Operating Assets and Liabilities Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Additions to Property, Plant and Equ
Slide 25: Hasbro Q1 Share in Focus Categories
Hasbro Q1 Share in Focus Categories Focus Categories —-Q1 2025 SURO SHE ETT Beyblade, FURBY, Marvel, Hasbro Hasbro Hasbro TRANSFORMERS Focus Category Share Change Share Position Action Figures & Accessories -0.9 pts 21.0% 1 Q1POS Decline: PLAY-DOH, HASBRO GAMING*, PEPPA PIG Arts & Crafts -1.9 pts 17
Slide 26: Segment Results - As Reported and Adjusted
Segment Results-As Reported and fiemrers Aanapored _Aifiina _Adjued _AaRapetad Asta _Aguated _chge A Ad H t d' External Net Revenues $ 887.1 $ — $ 871 $ 757.3 $ — $ 7573 17% S J] uste a Operating Profit 170.7 517 2224 116.2 324 148.6 50% Q1 2025 Operating Margin 19.2% 5.8% 25.1% 15.3% 43% 19.6% ‘Seg
Slide 27: Segment Revenue Detail and Gaming Information
(Unaudited) (Millions of Dollars ‘Three Months Ended igital Gamir ee ee eee March 30,2025 March 31,2024 _% Change Tabletop Gaming $ 343.8 $ 228.2 51% Digital and Licensed Gaming 118.3 88.1 34% Net revenues $ 462.1 $ 316.3 Three Months Ended March 30,2025 March 31,2024 % Change $s 2314 $ 239.1 3% 85.
Slide 28: Reconciliation of EBITDA and Adjusted EBITDA
(Unaudited) (Millions of Dollars Three Months Ended March 30, March 31, Reconciliation of EBITDA and Adjusted EBITDA 2025 2024 Net Earnings Attributable to Hasbro, Inc. $ 98.6 $ 58.2 Interest expense 41.6 38.5 Income tax expense 37.4 21.9 Net earnings attributable to noncontrolling interests 09 09 D
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (Unaudited) (Millions of Dollars) Operating Profit (Loss) $ 1707 $ 1162 Wizards of the Coast and Digital Gaming 230.0 1228 Consumer Products (43.9) (46.9) Entertainment (11.2) 58 Corporate and Other (42) MS Non-GAAP Adjustments Consumer Products Entertai
Slide 30: Reconciliation of Net Earnings and Earnings per Share
Reconciliation of No n-G n a Pp Reconciliation of Net Earnings and Earnings per Share “? ° . Diluted Per Share Diluted Per Share Fi nancia | March 30, 2025 Amount March 31, 2024 Amount Net Earnings Attributable to Hasbro $ 986 $ 0.70 $ 58.2 $ 0.42 M Acquired intangible amortization ? 93 0.07 93 0.07