Slide 1: Q3 2023 Earnings
Q3 2023 Earnings October 26, 2023
Slide 2: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES Supplemental Financial Data 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 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
Slide 4: Third Quarter Highlights
Third Quarter Highlights 40% revenue growth in Wizards of the Coast and Digital Gaming REPORTED ADJUSTED segment behind strong launch of Baldur’s Gate III $1.5B $1.5B Franchise Brands grew +8% behind growth in MAGIC: THE Net Revenue -10% -10% GATHERING, DUNGEONS & DRAGONS, HASBRO GAMING & TRANSFORME
Slide 5: Hasbro's Transformation: Refocus on Play
Hasbro’s Transformation: Refocus on Play Execute Blueprint 2.0 Operate with Excellence Strengthen Balance Sheet Focus on bottom line Enhance Hasbro’s Gaming performance by prioritizing Invest to drive profitable growth leadership, both tabletop and digital fewer, bigger brands Double-down on fewer,
Slide 6: Third Quarter 2023
Third Quarter ical 2023 9 (2 [~ —_ce_ =——=y
Slide 7: Hasbro Inc. Third Quarter 2023 Performance
Hasbro Inc. Third Quarter 2023 Performance Wizards of Q3 2023 Reported Results Consumer Corporate the Coast & Entertainment Hasbro ($ millions, except earnings per share) Products & Other Digital Gaming Revenue $424 $957 $123 N/A $1,503 % vs PY +40% -18% -42% N/A -10% Operating Profit (Loss) $203 $9
Slide 8: Hasbro Inc. Third Quarter 2023 Performance-As Adjusted
Hasbro Inc. Third Quarter 2023 Performance-As Adjusted Wizards of Q3 2023 Adjusted Results Consumer Corporate the Coast & Entertainment Hasbro ($ millions, except earnings per share) Products & Other Digital Gaming Revenue $424 $957 $123 N/A $1,503 % vs PY +40% -18% -42% N/A -10% Operating Profit $2
Slide 9: Hasbro Inc. Nine Months 2023 Performance
Hasbro Inc. Nine Months 2023 Performance Wizards of YTD 2023 Reported Results Consumer Corporate the Coast & Entertainment Hasbro ($ millions, except earnings per share) Products & Other Digital Gaming Revenue $1,094 $2,133 $488 N/A $3,714 % vs PY +11% -17% -22% N/A -11% Operating Profit (Loss) $423
Slide 10: Hasbro Inc. Nine Months 2023 Performance-As Adjusted
Hasbro Inc. Nine Months 2023 Performance-As Adjusted Wizards of YTD 2023 Adjusted Results Consumer Corporate the Coast & Entertainment Hasbro ($ millions, except earnings per share) Products & Other Digital Gaming Revenue $1,094 $2,133 $488 N/A $3,714 % vs PY +11% -17% -22% N/A -11% Operating Profit
Slide 11: Brand Portfolio Performance
Brand Portfolio Performance Q3 2023 Brand Category Highlights Net Revenue by Brand Portfolio Franchise Performance ($ millions) Q3 2023 Q3 2022 % Change YTD 2023 YTD 2022 % Change Third quarter growth in DUNGEONS & DRAGONS (>+100%), TRANSFORMERS Franchise Brands1 $1011 $940 +8% $2,413 $2,416 - (+29%
Slide 12: Q3 2023 Operating Margin Performance
Q3 2023 Operating Margin Performance As Reported Operating Profit Margin Drivers Adjusted Operating Profit Margin Drivers ($ millions) ($ millions) Q3 2022 Op Profit Margin Q3 2022 Op Profit Margin 11.6% $194 16.1% $271 (Adjusted) Volume & Mix* -0.1 pts ($21) Volume & Mix* +0.3pts ($21) Royalties -0
Slide 13: Operational Excellence Program
Operational Excellence Program Cumulative Cost Savings Forecasted 2025 Savings Breakdown + + 40% 38% SD&A Cost of Sales 12% 10% Royalty Product Expenses Development ($ millions) YTD Update: $154M In Year On track to deliver $250-300M Savings vs $65M Cash Spent annual savings ahead of plan + Delivere
Slide 14: Owned Inventory Reduction
Owned Inventory Reduction Inventory Summary Total Hasbro Consumer Products a1 ae a @2 @3 $900 —— . = $900 $800 ns ve FY 2022 $600 000 FY 2022 #00 $400 $300 $300 $200 $200 $100 $100 $0 $o — 220123 22°23 22°23 220 «'23 22 "23 22°23 (Smillions)
Slide 15: Wizards of the Coast & Digital Gaming Segment
Wizards of the Coast & Digital Gaming Segment
Slide 16: Wizards of the Coast & Digital Gaming Segment Performance
Wizards of the Coast & Digital Gaming Segment Performance Q3 2023 Revenue Bridge YTD 2023 Revenue Bridge +40% 23% 14% +11% 7% 2% 3% 1% 1% 0% Wizards Digital Digital FX Total Digital FX Total Wizards Licenses Digital FX Total Wizards Digital Tabletop Gaming Games Tabletop Gaming Games Volume Games Li
Slide 17: Consumer Products Segment
Consumer Products Segment
Slide 18: Hasbro Q3 Share in Focus Categories
Hasbro Q3 Share in Focus Categories Focus Categories – Q3 2023 Hasbro Hasbro Hasbro Focus Category Action Figures & Accessories Share Change Share Position TRANSFORMERS revenue and POS growth Action Figures & Accessories +2.1 pts 24.7% 1 Arts & Crafts PLAY-DOH growth in Consumer Products revenues an
Slide 19: Consumer Products Performance
Consumer Products Performance Q3 2023 Revenue Bridge YTD 2023 Revenue Bridge 2% License Toy & Game Toy & Game License Toy & Game Toy & Game Exits Volume Rate/Mix 0% Total 1% 0% Total Exits Volume Rate/Mix Licensed FX Licensed CP FX CP -2% -3% -6% -6% -9% -12% -18% -17% Key Business Drivers Q3 Margin
Slide 20: Entertainment Segment
"Entertainment — Segment
Slide 21: Entertainment Segment Performance
Entertainment Segment Performance Q3 2023 Revenue Bridge YTD 2023 Revenue Bridge Business 1% Business Exits Volume Total Exits Volume FX Total FX -1% -3% -3% -18% -22% -40% -42% Key Business Drivers Q3 Margin Commentary Revenue decline primarily due to the impact of industry strikes and Total Adjust
Slide 22: Entertainment Segment Financials and Deal Update
Entertainment Segment Financials and Deal Update YTD Entertainment Segment Revenue Other Comments $624 • Received expected regulatory approvals $488 • Transaction expected to close by year-end 2023 • eOne Film and TV asset to be sold has delivered ~$400M of revenue YTD • Down ~20% YOY • Full-year ea
Slide 23: Total Hasbro Inc. Cash Flow and Metrics
Total Hasbro Inc. Cash Flow and Metrics Other Highlights Operating Cash Flow • Repaid $107M of long-term debt YTD 2023 • Adjusted Underlying Tax Rate in Q3 of 23.2% vs. 19.9% prior year; $373 YTD 24.4% vs. 21.1% prior year $335 $262 • Additional Interest Expense of $5.2M in Q3 and $14.8M YTD • Retur
Slide 24: Updated Guidance for 2023
Updated Guidance for 2023 Previous Updated Other Key Assumptions Total Revenue Down 3 - 6% Down 13 - 15% • Gross cost savings on track to deliver $200M in 2023 Consumer Products Down MSD Down Mid- to High-Teens Wizards of the Coast Up HSD Up HSD • Includes additional one-time Entertainment Down 25-3
Slide 25: Supplemental Financial Information
Supplemental Financial Information
Slide 26: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets 26
Slide 27: Condensed Statements of Operations
Condensed Statements of Operations 27
Slide 28: Condensed Consolidated Cash Flows
(MILLIONS OF DOLLARS) (UNAUDITED) Condensed Consolidated Cash Flows 28
Slide 29: YTD 2023 Operating Margin Performance
YTD 2023 Operating Margin Performance As Reported Operating Profit Margin Drivers Adjusted Operating Profit Margin Drivers ($ millions) ($ millions) YTD 2022 Op Profit Margin YTD 2022 Op Profit Margin 12.8% $533 15.6% $653 (Adjusted) Volume & Mix* -2.7 pts ($155) Volume & Mix* -2.4 pts ($155) Royalt
Slide 30: Third Quarter 2023 Major Expense Items
$ MILLIONS, UNAUDITED Third Quarter 2023 Major Expense Items Q3 2023 % CHANGE Adjusted* NOTES Q3 2023 Q3 2022 Adjusted* % OF Below exclude non-GAAP Q3 2023 Adjusted* Q3 2022 Adjusted* YOY REVENUE adjustments Lower revenues; mix shift to high- Cost of Sales $495 $495 $587 $587 -16% 32.9% margin licen
Slide 31: Nine Months 2023 Major Expense Items
$ MILLIONS, UNAUDITED Nine Months 2023 Major Expense Items Nine Mo. 2023 Nine Months Nine Months % CHANGE Adjusted* NOTES Nine Months 2023 Nine Months 2022 Adjusted* % OF Below exclude non-GAAP 2023 Adjusted* 2022 Adjusted* YOY REVENUE adjustments Decline mainly due to product mix partially offset b
Slide 32: Key Cash Flow and Balance Sheet Data
Key Cash Flow and Balance Sheet Data $ Millions, unaudited YTD 2023 YTD 2022 NOTES Approximately $70M of cash in Assets Held for Sale; Substantial majority of which will Cash $186 $552 stay with Hasbro Long-term Debt $3,655 $3,725 Paid down $107M in long-term Debt YTD 2023; $151M of debt in Assets H
Slide 33: Segment Results-As Reported and As Adjusted-Q3 2023
(UNAUDITED) (MILLIONS OF DOLLARS) Segment Results-As Reported and As Adjusted-Q3 2023 33
Slide 34: Segment Results-As Reported and As Adjusted-Q3 2023 Continued
(UNAUDITED) (MILLIONS OF DOLLARS) Segment Results-As Reported and As Adjusted-Q3 2023 Continued 34
Slide 35: Segment Results-As Reported and As Adjusted-Q3 2023 Continued
(UNAUDITED) (MILLIONS OF DOLLARS) Segment Results-As Reported and As Adjusted-Q3 2023 Continued 35
Slide 36: Segment Results-As Reported and As Adjusted-Nine Months 2023
(UNAUDITED) (MILLIONS OF DOLLARS) Segment Results-As Reported and As Adjusted-Nine Months 2023 36
Slide 37: Segment Results-As Reported and As Adjusted-Nine Months 2023 Continued
(UNAUDITED) (MILLIONS OF DOLLARS) Segment Results-As Reported and As Adjusted-Nine Months 2023 Continued 37
Slide 38: Segment Results-As Reported and As Adjusted-Nine Months 2023 Continued
(UNAUDITED) (MILLIONS OF DOLLARS) Segment Results-As Reported and As Adjusted-Nine Months 2023 Continued 38
Slide 39: Reconciliation of Non-GAAP Financial Measures
(UNAUDITED) (MILLIONS OF DOLLARS) Reconciliation of Non-GAAP Financial Measures 39
Slide 40: Reconciliation of Non-GAAP Financial Measures
(UNAUDITED) (MILLIONS OF DOLLARS) EBITDA Reconciliation of Non-GAAP Financial Measures 40
Slide 41: Reconciliation of Non-GAAP Financial Measures
(UNAUDITED) (MILLIONS OF DOLLARS AND SHARES, EXCEPT PER SHARE DATA) Reconciliation of Non-GAAP Financial Measures 41