Q3 2020

Earnings

OCTOBER 26, 2020

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: the impact of, and actions and initiatives taken and planned to be taken to, try and manage the negative impact of the global coronavirus outbreak on our business; our expectations concerning the upcoming holiday season and our future results; and our working capital and liquidity. Our actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties. Factors that might cause such a difference include, but are not limited to: our ability to successfully develop and execute plans to mitigate the negative impact of the coronavirus to our business;

  • our ability to design, develop, produce, manufacture, source and ship products on a timely and cost-effective and profitable basis;
  • rapidly changing consumer interests in the types of products and entertainment we offer;
  • the challenge of developing and offering products and storytelling experiences that are sought after by children, families and audiences given increasing technology and entertainment offerings available;
  • our ability to develop and distribute engaging storytelling across media to drive brand awareness;
  • our dependence on third party relationships, including with third party manufacturers, licensors of brands, studios, content producers and entertainment distribution channels;
  • our ability to successfully compete in the global play and entertainment industry, including with manufacturers, marketers, and sellers of toys and games, digital gaming products and digital media, as well as with film studios, television production companies and independent distributors and content producers;
  • our ability to successfully evolve and transform our business and capabilities to address a changing global consumer landscape and retail environment, including changing inventories policies and practices of our customers;
  • our ability to develop new and expanded areas of our business, such as through eOne, Wizards of the Coast, and our other entertainment, digital gaming and esports initiatives;
  • risks associated with international operations, such as currency conversion, currency fluctuations, the imposition of tariffs, quotas, border adjustment taxes or other protectionist measures, and other challenges in the territories in which we operate;
  • our ability to successfully implement actions to lessen the impact of potential and enacted tariffs imposed on our products, including any changes to our supply chain, inventory management, sales policies or pricing of our products;
  • downturns in global and regional economic conditions impacting one or more of the markets in which we sell products, which can negatively impact our retail customers and consumers, result in lower employment levels, consumer disposable income, retailer inventories and spending, including lower spending on purchases of our products;
  • other economic and public health conditions or regulatory changes in the markets in which we and our customers, suppliers and

manufacturers operate, such as higher commodity prices, labor costs or transportation costs, or outbreaks of disease, such as the

coronavirus, the occurrence of which could create work slowdowns, delays or shortages in production or shipment of products,

increases in costs or delays in revenue;

2

Safe Harbor continued

  • the success of our key partner brands, including the ability to secure, maintain and extend agreements with our key partners or the risk of delays, increased costs or difficulties associated with any of our or our partners' planned digital applications or media initiatives;
  • fluctuations in our business due to seasonality;
  • the concentration of our customers, potentially increasing the negative impact to our business of difficulties experienced by any of our customers or changes in their purchasing or selling patterns;
  • the bankruptcy or other lack of success of one of our significant retailers, licensees and other business partners;
  • risks relating to the use of third party manufacturers for the manufacturing of our products, including the concentration of manufacturing for many of our products in the People's Republic of China and our ability to successfully diversify sourcing of our products to reduce reliance on sources of supply in China;
  • our ability to attract and retain talented employees;
  • our ability to realize the benefits of cost-savings and efficiency and/or revenue efficiency enhancing initiatives including initiatives to integrate eOne into our business;
  • our ability to protect our assets and intellectual property, including as a result of infringement, theft, misappropriation, cyber-attacks or other acts compromising the integrity of our assets or intellectual property;
  • risks relating to the impairment and/or write-offs of acquired products and films and television programs we acquire and produce;
  • risks relating to investments and acquisitions, such as our acquisition of eOne, which risks include: integration difficulties; inability to retain key personnel; diversion of management time and resources; failure to achieve anticipated benefits or synergies of acquisitions or investments; and risks relating to the additional indebtedness incurred in connection with a transaction;
  • the risk of product recalls or product liability suits and costs associated with product safety regulations;
  • changes in tax laws or regulations, or the interpretation and application of such laws and regulations, which may cause us to alter tax reserves or make other changes which significantly impact our reported financial results;
  • the impact of litigation or arbitration decisions or settlement actions; and
  • other risks and uncertainties as may be detailed from time to time in our public announcements and U.S. Securities and

Exchange Commission ("SEC") filings.

The statements contained herein are based on our current beliefs and expectations. We undertake no obligation to make any

revisions to the forward-looking statements contained in this release or to update them to reflect events or circumstances

occurring after the date of this presentation.

3

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 earnings per diluted share, which exclude, where applicable, the 2020 impact of eOne acquisition and related costs, purchased intangible amortization, other severance costs and income tax expense associated with U.K tax reform. For 2019, Pro Forma Adjusted operating profit, Pro Forma Adjusted net earnings and Pro Forma Adjusted earnings per diluted share exclude the impact of charges associated with the settlement of the Company's U.S. pension plan, purchased intangible amortization and certain charges incurred by eOne related to prior restructuring programs and acquisition-related charges. Also included in the financial tables are the non-GAAP financial measures of EBITDA, Adjusted EBITDA and Pro Forma Adjusted EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding interest expense, income taxes, depreciation and amortization. Adjusted EBITDA also excludes the impact of the charges/gains noted above. As required by SEC rules, we have provided reconciliations on the attached schedules of these measures to the most directly comparable GAAP measure. Management believes that Adjusted net earnings, Adjusted earnings per diluted share and Adjusted operating profit provides investors with an understanding of the underlying performance of our business absent unusual events. Management believes that EBITDA and Adjusted EBITDA are appropriate measures for evaluating the operating performance of our business because they reflect the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. These non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with GAAP as more fully discussed in our consolidated financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.

4

Hasbro's Brand Blueprint

5

Creating the World's Best Play & Entertainment Experiences

HASBRO'S BRAND

BLUEPRINT:

A PROPRIETARY

ADVANTAGE

Unique Strategy fueled by

Unmatched Brand Portfolio and Industry-leadingcapabilities in Innovation, Content, Gaming, Digital and Licensing

DiversifiedStrongportfolio leveraging long-terminvestments made in Digital- First orientation, including ecomm and omni-channelretail, digital gaming and across Hasbro

FOCUSED ON FOUR ESSENTIAL AREAS IN NEAR TERM

Supply: Partner factories and

warehouses are currently open and operating. Production is caught up in most instances.

Demand: Consumer demand remained positive in the quarter; revenue gains led by Franchise Brands and Gaming; ecomm up 50% globally

Liquidity: Substantial liquidity and

access to cash

Community: Our global teams remain

focused on supporting our people, health & safety workplace protocols & supporting remote work arrangements.

STRONG FINANCIAL

POSITION

Q3 2020 Revenues: $1.78B

Net Earnings: $220.9M

Adjusted Net Earnings: $258.9M*

Adjusted EBITDA $428.2M* $1.1B in cash at quarter end $494.3M Q3 operating cash flow

$1.5B Revolving Credit Facility

available

*A reconciliation of Adjusted Net

Earnings can be found on slide 36;

adjusted EBITDA can be found on

6

slide 37.

Q3

2020

snapshot

REVENUE

$1.78B

OPERATING PROFIT

As Reported $336.6M As Adjusted $367.2M

NET EARNINGS

As Reported $220.9M As Adjusted $258.9M

EPS: NET EARNINGS

As Reported $1.61 per diluted share As Adjusted $1.88 per diluted share

*The As Adjusted figures are non-GAAP financial measures.

A reconciliation of non-GAAP financial measures can be found7 on slides 31-37

PARTNER BRAND

PARTNER BRAND

PARTNER BRAND

2020 ANNOUNCEMENTS

& HIGHLIGHTS

8

Third Quarter & Nine Months Net Revenues Performance

$ Millions, unaudited

THIRD QUARTER NET REVENUES

$2,000

$1,858

-4%

$1,777

$1,500

$1,000

$500

$-

20192020

Pro Forma

NINE MONTHS NET REVENUES

$5,000

$4,273

-12%

$3,742

$4,000

$3,000

$2,000

$1,000

$-

20192020 Pro Forma

  • Growth in toys, games and digital initiatives offset by a decline in entertainment
  • Consumer demand remained strong in the third quarter 2020; Global POS up mid-single digits
  • Revenue growth in the U.S. and Canada segment and European region; ecomm revenues up 50% globally
  • eOne TV and Film revenues impacted by delivery delays due to timing of production returning
  • FX had a negative $1M impact on revenues in the third quarter 2020; YTD 2020 negative impact is $28M

For comparability, the third quarter of 2019 includes the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma

9

Results" for the Pro Forma and Non-GAAP adjustments on slides 34 and 35.

Third Quarter & Nine Months Brand Portfolio Performance

Pro Forma

Nine

Pro Forma

%

Q3 2020

% CHANGE

Months

Nine Months

(millions of dollars)

Q3 2019

2020

2019

CHANGE

FRANCHISE BRANDS

$808

$780

+4%

$1,581

$1,750

-10%

PARTNER BRANDS

$409

$427

-4%

$730

$812

-10%

HASBRO GAMING1

$239

$232

+3%

$516

$463

+11%

EMERGING BRANDS2

$155

$189

-18%

$325

$411

-21%

TV/FILM/ENTERTAINMENT3

$166

$231

-28%

$590

$836

-29%

TOTAL

$1,777

$1,858

-4%

$3,742

$4,273

-12%

1Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY which are included in Franchise Brands in the table above, was $543M for Q3 2020, up 21% vs. $449M for Q3 2019. YTD 2020 Hasbro's total gaming was $1.2B, up 11% versus $1.1B YTD 2019. Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.

2 Emerging Brands portfolio includes the preschool brands, PEPPA PIG, PJ MASKS and RICKY ZOOM, acquired as part of the eOne acquisition. For comparability, the quarter and nine months ended September 29, 2019 includes the pro forma net revenues of $52M and $145M, respectively, for those brands.

3TV/Film/Entertainment represents eOne net revenues not allocated to the Emerging Brands portfolio.

3rd QUARTER 2020

• Consumer demand for Hasbro brands and stories remained strong through the third quarter 2020.

• Q3 2020 growth in

FRANCHISE BRANDS: MAGIC: THE GATHERING, MONOPOLY and PLAY- DOH.

• PARTNER BRANDS Growth in Lucasfilm's Star Wars offset by declines in Marvel and Frozen.

• Growth in HASBRO GAMING led by DUNGEONS AND DRAGONS as well as Classic Games.

• EMERGING BRANDS revenues declined on pro forma basis.

• TV/FILM/ENTERTAINMENT Late Q3 return to production in some locations delayed completion and delivery of productions; shifting timing of revenues to future periods.

10 10

Third Quarter & Nine Months Operating Profit

$ Millions, unaudited

THIRD QUARTER

$400

$342

$337

$367

$313

$300

$200

$100

$-

2019

2019 Adj*

2020

2020 Adj*

Pro Forma

NINE MONTHS

$750

$659

$600

$553

$565

$450

$315

$300

$150

$-

2019

2019 Adj*

2020

2020 Adj*

Pro Forma

Operating Profit Margin Q3 2020

Operating Profit Margin Nine Months 2020

Favorable

  • Product Mix
  • Lower Program Amortization
  • Lower Expenses

Unfavorable

  • Lower Revenues
  • Alignment of Accounting for certain eOne expenses versus 2019

Favorable

Unfavorable

Product Mix

Lower Revenues

Lower Expenses

Shipping

  • Lower Program Amortization

*The Adjusted figures are non-GAAP financial measures. See "Reconciliation of As Reported to Pro Forma Adjusted Operating Results" on slides 31-33. For comparability, the third quarter of 2019

11

includes the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the Pro Forma and Non-GAAP adjustments on slides 34 and 35.

U.S. & Canada Segment Net Revenues & Operating Profit

THIRD QUARTER

+9%

+36%

$977

$1,000

$898

$300

$263

unaudited

$750

-9%

$194

$200

Millions,

$500

$100

$

$250

$-

$-

NET REVENUES

OPERATING PROFIT

  • Revenue growth in Franchise Brands, led by MAGIC: THE GATHERING, Emerging Brands and Hasbro Gaming
  • In Partner Brands, Lucasfilm's Star Wars revenue increased
  • Operating Profit and Operating Profit margin growth driven primarily by higher revenues and

favorable product mix as well as reduced inventory costs and cost savings initiatives

Pro Forma

2019

2020

12

U.S. & Canada Segment Net Revenues & Operating Profit

$ Millions, unaudited

$2,000

$1,500

$1,000

$500

$-

--

$1,767$1,765

NET REVENUES

NINE MONTHS

$400 $350 $300 $250 $200 $150 $100

$50 $-

+14%

$359

Pro Forma

2019

$314

2020

-9%

OPERATING PROFIT

  • Revenue growth in Hasbro Gaming, other categories down; MAGIC: THE GATHERING and Lucasfilm's Star Wars up
  • Despite flat net revenues, Operating Profit and Operating Profit Margin grew from favorable product mix, including MAGIC: THE GATHERING, and lower expenses

13

International Segment Net Revenues & Operating Profit

$ Millions, unaudited

THIRD QUARTER

-8%

$100

-5%

Pro Forma

$600

$561

2019

$517

$67

$64

2020

$500

$75

-9%

$400

$300

$50

$200

$25

$100

$-

$-

NET REVENUES

OPERATING PROFIT

  • Revenue declines primarily driven by Latin America; Revenue growth in European region
  • Operating Profit declined on lower revenues, but Operating Profit Margin improved due to favorable mix, including growth in MAGIC: THE GATHERING, lower advertising spend and cost management

14

International Segment Net Revenues & Operating Profit

NINE MONTHS

$ Millions, unaudited

-17%

-76%

Pro Forma

$1,500

$75

2019

2020

$1,221

-9%$51

$1,017

$50

$1,000

$-

$500

$25

$12

$-

$-

NET REVENUES

OPERATING PROFIT

  • Revenue declines most meaningful in Latin America; Q3 2020 improvement in European region
  • YTD 2020 International segment revenues negatively impacted by $25M due to foreign exchange
  • Operating Profit declined as a result of lower revenues and efforts to clear inventory in

Latin America; partially offset by favorable product mix and lower expenses

15

International Segment Net Revenues

Nine

Nine

Q3 2020

Months

Q3 2020

2020

Months

AS

AS

2020

REPORTED

ABSENT FX

REPORTED

ABSENT FX

EUROPE

+7%

+4%

-2%

-2%

LATIN AMERICA

-40%

-30%

-48%

-40%

ASIA PACIFIC

-9%

-10%

-19%

-18%

TOTAL

-8%

-7%

-17%

-15%

INTERNATIONAL

Foreign Exchange had a negative $1M impact on International

segment revenues in the third quarter 2020 and a negative $25M

impact YTD 2020

16

Entertainment, Licensing & Digital Segment

Net Revenues & Operating Profit

THIRD QUARTER

-23%

$150

$50

+33%

unaudited

$116

-9%

$89

$33

$25

Millions,$

$75

$25

$-

$-

NET REVENUES

OPERATING PROFIT

  • EL&D revenues declined due to lower film revenue compared to 2019, which included Transformer's Bumblebee film revenue, partially offset by higher digital gaming revenues
  • Operating profit and operating profit margin increased due to increased revenue from high profit digital licensing

and decreased advertising costs versus the 2019 initial launch of Magic: The Gathering Arena

Pro Forma

2019

2020

17

Entertainment, Licensing & Digital Segment

Net Revenues & Operating Profit

$ Millions, unaudited

$400

$300

$200

$100

$-

NINE MONTHS

-14%

$100

$304

$263$75

$50

$25

$-

As

As

Adjusted

Pro Forma

+38%

2019

Reported

2020

+5%

-9%

$87

2020

Adj.

$63 $66

NET REVENUES

OPERATING PROFIT

  • EL&D revenues declined due to lower film revenue compared to 2019, which included Transformer's Bumblebee film revenue, and closure of Backflip Studios late in 2019, partially offset by higher digital gaming revenues
  • Adjusted Operating Profit increased due to lower program amortization, increased revenue from high-profit digital licensing and in part due to the closure of Backflip Studios
  • YTD Adjusted Operating Profit excludes a $21M charge associated with a write down of certain assets resulting from the

transition to eOne entertainment strategy following the acquisition

18

A reconciliation of adjusted segment operating profit can be found on slide 33

eOne Segment Net Revenues & Operating Profit (Loss)

$ Millions, unaudited

THIRD QUARTER

-32%

As Reported

&As

$300

$283

Adjusted

->100%+x

$50

$45

$193

$200

$16

$100

$-

$(1)

$-

$(26)

NET REVENUES

$(50)

OPERATING PROFIT (LOSS)

Pro Forma

2019

2019 Adj.

2020

2020 Adj.

  • Revenues declined due to timing of live-action production restart in TV & Film due to COVID-19 related shutdowns; Family Brands revenues declined due to lower consumer products and lower advertising revenue from the YouTube platform
  • Adjusted Operating Loss primarily related to lower revenue partially offset by lower program amortization, advertising and royalties

A reconciliation of adjusted segment operating profit can be found on slide 33. For comparability, the third quarter of 2019 includes the pro forma results for the eOne Segment. See

19

"Reconciliation of 2019 As Reported to Pro Forma Results" for the Pro Forma and Non-GAAP adjustments on slide 34.

eOne Segment Net Revenues & Operating Profit (Loss)

NINE MONTHS

-29%

Pro Forma

2019

$ Millions, unaudited

$981

$1,000

$800

$697

$250

$600

$200

$150

$400

$100

$200

$50

$-

$-

$(50)

NET REVENUES

$(100)

As

Adjusted

-57%

$198

$91

$85

$(65)

OPERATING PROFIT (LOSS)

2019 Adj.

2020

2020 Adj.

  • Revenues declined due to timing of live-action production restart in TV & Film due to COVID-19 related shutdowns; Family Brands revenues declined due to lower consumer products and lower advertising revenue from the YouTube platform
  • Adjusted Operating Profit declined primarily related to the decrease in revenues and the decline in You Tube advertising revenues, partially offset by lower expenses

A reconciliation of adjusted segment operating profit can be found on slide 33. For comparability, the third quarter of 2019 includes the pro forma results for the eOne Segment. See

20

"Reconciliation of 2019 As Reported to Pro Forma Results" for the Pro Forma and Non-GAAP adjustments on slide 35.

Third Quarter & Nine Months Net Earnings

Diluted Shares:

unaudited

$300

THIRD QUARTER

$217

$239

$221

$200

$1.74

PER

$1.61 PER

$1.57 PER

DILUTED

DILUTED

DILUTED

SHARE

$259

$1.88

PER

DILUTED SHARE

$500

$400

$300

$200

$250

NINE MONTHS

$419

$3.04

PER

DILUTED SHARE

Q3 2020

137.5M vs.

Q3 2019

127.2M

$339

$2.47 PER

DILUTED

SHARE

$ Millions,

$100

SHARE

SHARE

$-

2019

2019 Adj*

2020

Pro Forma

2020 Adj*

$100

$-

$1.82

$117

PER

DILUTED

SHARE

$0.85 PER

DILUTED

SHARE

2019

2019 Adj*

2020

Pro Forma

2020 Adj*

  • Total Non-Operating Expense: Q3 2020 $37M; YTD 2020 $132M
    • Q3 2019 Non-Operating Expense included a $25.5 million charge related to hedging part of the British Pound Sterling purchase price of eOne

• Q3 2020 Underlying Tax Rate: 19.8% versus 18.2% in Q3 2019

21

• Q3 2020 Underlying Tax Rate Includes $13.7M of incremental tax expense related to a change in the U.K. tax code

21

Key Cash Flow & Balance Sheet Data

YEAR TO DATE ENDED

$ Millions, unaudited

SEPT 27, 2020

SEPT 29, 2019

NOTES

Cash

$1,132

$1,060

Substantial cash on hand and access to cash through $1.5B

revolving credit facility

Long-term Debt

$4,778

$1,696

Reflects eOne acquisition financing completed in 2019

Depreciation

$94

$101

Amortization of Intangibles

$108

$35

Reflects eOne acquisition purchased intangibles

Program Spend, net

$295

$44

Increase due to content spend with eOne; 2020 expected

to be at the lower end of previously updated range of

$450-550M

Capital Expenditures

$92

$91

Expect to be slightly below full-year 2020 target of $145-

$155M

Dividends Paid

$279

$251

$0.68 per share quarterly dividend paid in Q3 2020; Next

dividend payable November 16, 2020

Share Repurchase

$0

$60

Share repurchase suspended in 2019 as Company

prioritizes delevering

Operating Cash Flow

$494

$390

Generating strong cash flow; TTM $758M

Accounts Receivable

$1,438

$1,417

DSO down 9 days on pro forma basis; Strong cash

collections

Inventory

$540

$589

Down 7% absent FX

Goodwill

$3,644

$485

eOne acquisition goodwill

22

Our commitment to CSR reflects our desire to help build a safer, more sustainable and inclusive company and world for all.

Product Safety

Environmental

Human Rights &

Diversity &

Sustainability

Ethical Sourcing

Inclusion

100 Most Sustainable

Companies

2020

23

Our Mission

Create the World's

Best Play &

Entertainment

Experiences

Our Values

Community

Engaging, Purposeful and Giving

Creativity

Curious, Playful and Inventive

Inclusion

Diverse, Empowered and United

Integrity

Responsible, Ethical and Trustworthy

Passion

Driven, Focused and Courageous

24

Supplemental Financial Information

25

Condensed Consolidated Balance Sheets

(Thousands of Dollars)

September 27,

September 29,

ASSETS

2020

2019

Cash and Cash Equivalents

$

1,132,405

$

1,060,432

Accounts Receivable, Net

1,438,360

1,416,879

Inventories

540,039

589,132

Prepaid Expenses and Other Current Assets

648,158

346,687

Total Current Assets

3,758,962

3,413,130

Property, Plant and Equipment, Net

477,154

371,881

Goodwill

3,644,118

485,042

Other Intangible Assets, Net

1,546,810

658,350

Other Assets

1,276,133

626,221

Total Assets

$

10,703,177

$

5,554,624

LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY

Short-term Borrowings

$

10,032

$

7,903

Current Portion of Long-term Debt

369,269

-

Accounts Payable and Accrued Liabilities

1,936,248

1,458,832

Total Current Liabilities

2,315,549

1,466,735

Long-term Debt

4,777,807

1,696,204

Other Liabilities

778,514

550,778

Total Liabilities

7,871,870

3,713,717

Redeemable Noncontrolling Interests

22,876

-

Total Shareholders' Equity

2,808,431

1,840,907

Total Liabilities, Noncontrolling Interests and Shareholders' Equity

$

10,703,177

$

5,554,624

26

26

Consolidated Statements of Operations

((Thousands of Dollars and Shares, Except Per Share Data) )

Quarter Ended

Nine Months Ended

September 27,

% Net

September 29,

% Net

September 27,

% Net

September 29,

% Net

2020

Revenues

2019

Revenues

2020

Revenues

2019

Revenues

Net Revenues

$

1,776,623

100.0%

$

1,575,173

100.0%

$

3,742,472

100.0%

$

3,292,220

100.0%

Costs and Expenses:

Cost of Sales

610,105

34.3%

627,119

39.8%

1,126,044

30.1%

1,230,800

37.4%

Program Cost Amortization

85,424

4.8%

28,028

1.8%

268,245

7.2%

58,105

1.8%

Royalties

176,938

10.0%

128,008

8.1%

387,097

10.3%

258,957

7.9%

Product Development

62,709

3.5%

67,354

4.3%

174,863

4.7%

189,246

5.7%

Advertising

137,408

7.7%

140,256

8.9%

311,415

8.3%

309,659

9.4%

Amortization of Intangibles

36,172

2.0%

11,814

0.8%

107,685

2.9%

35,445

1.1%

Selling, Distribution and Administration

325,360

18.3%

275,384

17.5%

885,680

23.7%

748,338

22.7%

Acquisition and Related Costs

5,949

0.3%

-

0.0%

165,993

4.4%

-

0.0%

Operating Profit

336,558

18.9%

297,210

18.9%

315,450

8.4%

461,670

14.0%

Interest Expense

49,400

2.8%

22,764

1.4%

153,702

4.1%

67,096

2.0%

Other (Income) Expense, Net

(12,040)

-0.7%

14,700

0.9%

(21,840)

-0.6%

99,125

3.0%

Earnings before Income Taxes

299,198

16.8%

259,746

16.5%

183,588

4.9%

295,449

9.0%

Income Tax Expense

79,215

4.5%

46,797

3.0%

64,313

1.7%

42,340

1.3%

Net Earnings

219,983

12.4%

212,949

13.5%

119,275

3.2%

253,109

7.7%

Net (Loss) Earnings Attributable to Noncontrolling Interests

(915)

-0.1%

-

0.0%

1,929

0.1%

-

0.0%

Net Earnings Attributable to Hasbro, Inc.

$

220,898

12.4%

$

212,949

13.5%

$

117,346

3.1%

$

253,109

7.7%

Per Common Share

Net Earnings

Basic

$

1.61

$

1.68

$

0.86

$

2.00

Diluted

$

1.61

$

1.67

$

0.85

$

1.99

Cash Dividends Declared

$

0.68

$

0.68

$

2.04

$

2.04

Weighted Average Number of Shares

Basic

137,258

126,453

137,214

126,356

Diluted

137,490

127,204

137,465

126,956

27 27

Condensed Consolidated Cash Flows

(Thousands of Dollars)

Nine Months Ended

September 27,

September 29,

Cash Flows from Operating Activities:

2020

2019

Net Earnings

$

119,275

$

253,109

Non-Cash Pension Charge

-

110,777

Other Non-Cash Adjustments

561,826

204,726

Changes in Operating Assets and Liabilities

(186,791)

(179,044)

Net Cash Provided by Operating Activities

494,310

389,568

Cash Flows from Investing Activities:

Additions to Property, Plant and Equipment

(92,059)

(90,800)

Acquisition, Net of Cash Acquired

(4,403,929)

-

Other

24,297

4,340

Net Cash Utilized by Investing Activities

(4,471,691)

(86,460)

Cash Flows from Financing Activities:

Proceeds from Long-term Debt

1,036,037

-

Repayments of Long-term Debt

(147,324)

-

Net Repayments of Short-term Borrowings

(319)

(1,425)

Purchases of Common Stock

-

(60,137)

Stock-Based Compensation Transactions

1,830

29,737

Dividends Paid

(279,423)

(250,760)

Employee Taxes Paid for Shares Withheld

(5,935)

(13,061)

Redemption of Equity Instruments

(47,399)

-

Deferred Acquisition Payments

-

(100,000)

Debt Issuance Costs

-

(21,534)

Other

(6,949)

-

Net Cash Provided (Utilized) by Financing Activities

550,518

(417,180)

Effect of Exchange Rate Changes on Cash

(21,101)

(7,867)

Cash and Cash Equivalents at Beginning of Year

4,580,369

1,182,371

Cash and Cash Equivalents at End of Period

$

1,132,405

$

1,060,432

28

28

SUPPLEMENTAL FINANCIAL DATA

PRO FORMA SEGMENT RESULTS (Unaudited)

(Thousands of Dollars)

Quarter Ended

Nine Months Ended

September 27,

Pro Forma

%

September 27,

Pro Forma

%

September 29,

September 29,

2020

2019

Change

2020

2019

Change

Segment Results

U.S. and Canada Segment:

External Net Revenues

$

977,115

$

898,269

9%

$

1,765,482

$

1,766,649

0%

Operating Profit

262,977

193,686

36%

359,028

313,795

14%

Operating Margin

26.9%

21.6%

20.3%

17.8%

International Segment(1):

External Net Revenues

517,007

561,137

-8%

1,017,222

1,221,224

-17%

Operating Profit

63,924

67,238

-5%

12,333

51,410

-76%

Operating Margin

12.4%

12.0%

1.2%

4.2%

Entertainment, Licensing and Digital Segment:

External Net Revenues

89,027

115,766

-23%

262,879

304,266

-14%

Operating Profit

32,791

24,594

33%

65,758

62,550

5%

Operating Margin

36.8%

21.2%

25.0%

20.6%

eOne Segment (2):

External Net Revenues

193,474

283,310

-32%

696,889

980,613

-29%

Operating (Loss) Profit

(25,914)

15,812

>-100%

(64,962)

91,367

>-100%

Operating Margin

-13.4%

5.6%

-9.3%

9.3%

  1. International Segment Net Revenues by Major Geographic Region

Europe

$

343,179

$

319,277

7%

$

663,100

$

673,728

-2%

Latin America

91,619

151,987

-40%

158,028

305,106

-48%

Asia Pacific

82,209

89,873

-9%

196,094

242,390

-19%

Total

$

517,007

$

561,137

$

1,017,222

$

1,221,224

  1. eOne Segment Net Revenues by Category

Film and TV

$

138,514

$

199,949

-31%

$

504,059

$

747,830

-33%

Family Brands

26,252

53,828

-51%

106,069

151,668

-30%

Music and Other

28,708

29,533

-3%

86,761

81,115

7%

Total

$

193,474

$

283,310

$

696,889

$

980,613

29 29

SUPPLEMENTAL FINANCIAL DATA

PRO FORMA SEGMENT RESULTS (Unaudited)

(Thousands of Dollars)

For comparability, the quarter and nine months ended September 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma adjustments.

Net Revenues by Brand Portfolio

Franchise Brands

$

807,555

$

779,659

4%

$

1,580,878

$

1,749,948

-10%

Partner Brands

409,214

427,029

-4%

729,772

812,466

-10%

Hasbro Gaming (3)

239,222

232,287

3%

516,337

463,272

11%

Emerging Brands (4)

154,965

188,589

-18%

325,101

411,371

-21%

TV/Film/Entertainment (5)

165,667

230,919

-28%

590,384

835,776

-29%

Total

$

1,776,623

$

1,858,483

$

3,742,472

$

4,272,833

  1. Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $543,107 and $1,202,604 for the quarter and nine months ended September 27, 2020, respectively, up 21% and 11%, respectively, from revenues of $449,393 and $1,086,151 for the quarter and nine months ended September 29, 2019, respectively.
  2. Emerging Brands includes the preschool brands, PEPPA PIG, PJ MASKS and RICKY ZOOM, acquired as part of the eOne Acquisition. For comparability, the quarter and nine months ended September 29, 2019 includes the pro forma net revenues for those brands, which amounted to $52,391 and $144,837, respectively.
  3. TV/Film/Entertainment includes all other brands not detailed in (4) above acquired as part of the eOne Acquisition. For comparability, the quarter and nine months ended September 29, 2019 includes the pro forma net revenues of $230,919 and $835,776, respectively.

30 30

Non-GAAPAdjustments Impacting Operating Profit

SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF AS REPORTED TO PRO FORMA ADJUSTED OPERATING RESULTS (Unaudited)

(Thousands of Dollars)

For comparability, the quarter and nine months ended September 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma and non-GAAP adjustments.

Quarter Ended

September 27, 2020

Pro Forma

September 29, 2019

Pre-tax

Post-tax

Pre-tax

Post-tax

Acquisition and Related Costs (1)

Adjustments

Adjustments

Adjustments

Adjustments

$

5,949

$

4,726

$

-

$

-

Acquired Intangible Amortization (2)

24,716

19,637

24,597

19,063

Pro Forma eOne Adjustments

-

-

4,558

3,532

Total

$

30,665

$

24,363

$

29,155

$

22,595

Nine Months Ended

Pro Forma

September 27, 2020

September 29, 2019

Pre-tax

Post-tax

Pre-tax

Post-tax

Adjustments

Adjustments

Adjustments

Adjustments

Acquisition and Related Costs (1)

$

165,993

$

140,691

$

-

$

-

Acquired Intangible Amortization (2)

72,336

57,471

73,791

57,188

Severance (3)

11,554

10,125

-

-

Pro Forma eOne Adjustments

-

-

32,599

25,264

Total

$

249,883

$

208,287

$

106,390

$

82,452

  1. In association with the Company's acquisition of eOne, the Company incurred related expenses of $5,949 and $165,993, respectively, in the quarter and nine months ended September 27, 2020, comprised of the following:
    1. Acquisition and integration costs of $4,599 and $104,283 for the quarter and nine months ended September 27, 2020, respectively, including expense associated with the acceleration of eOne stock-based compensation and advisor fees settled at the closing of the acquisition, as well as integration costs; and
    2. Restructuring and related costs of $1,350 and $61,710 for the quarter and nine months ended September 27, 2020, respectively, including severance and retention costs, as well as impairment charges in the first quarter of 2020 for certain definite-lived intangible and production assets.
  2. The Company incurred incremental intangible amortization costs related to the intangible assets acquired in the eOne Acquisition.
  3. In the second quarter of 2020, the Company incurred $11,554 of severance charges, associated with cost-savings initiatives within the Company's commercial and Film

and TV businesses. These charges were included in Corporate and Eliminations.

31

31

SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF AS REPORTED TO PRO FORMA ADJUSTED OPERATING RESULTS Q3 2020

(Thousands of Dollars)

(Unaudited)

For comparability, the quarter and nine months ended September 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma and non-GAAP adjustments.

Reconciliation of Operating Profit (Loss) Results

Quarter Ended September 27, 2020

Pro Forma

Quarter Ended September 29, 2019

Non-GAAP

Non-GAAP

Adjusted Company Results

As Reported

Adjustments

Adjusted

As Reported

Adjustments

Adjusted

% Change

External Net Revenues

$

1,776,623

$

-

$

1,776,623

$

1,858,483

$

-

$

1,858,483

-4%

Operating Profit

336,558

30,665

367,223

313,022

29,155

342,177

7%

Operating Margin

18.9%

1.7%

20.7%

16.8%

1.6%

18.4%

Adjusted Segment Results

U.S. and Canada Segment:

External Net Revenues

$

977,115

$

-

$

977,115

$

898,269

$

-

$

898,269

9%

Operating Profit

262,977

-

262,977

193,686

-

193,686

36%

Operating Margin

26.9%

-

26.9%

21.6%

-

21.6%

International Segment:

External Net Revenues

517,007

-

517,007

561,137

-

561,137

-8%

Operating Profit

63,924

-

63,924

67,238

-

67,238

-5%

Operating Margin

12.4%

-

12.4%

12.0%

-

12.0%

Entertainment, Licensing and Digital Segment:

External Net Revenues

89,027

-

89,027

115,766

-

115,766

-23%

Operating Profit

32,791

-

32,791

24,594

-

24,594

33%

Operating Margin

36.8%

-

36.8%

21.2%

-

21.2%

eOne Segment:

External Net Revenues

193,474

-

193,474

283,310

-

283,310

-32%

Operating (Loss) Profit

(25,914)

24,716

(1,198)

15,812

29,155

44,967

>-100%

Operating Margin

-13.4%

12.8%

-0.6%

5.6%

10.3%

15.9%

Corporate and Eliminations:

The Corporate and Eliminations segment included non-GAAP adjustments of $5,949 for the quarter ended September 27, 2020, consisting of eOne acquisition and related costs.

32 32

SUPPLEMENTAL FINANCIAL DATA

RECONCILIATION OF AS REPORTED TO PRO FORMA ADJUSTED OPERATING RESULTS YTD 2020 (Unaudited)

(Thousands of Dollars)

For comparability, the quarter and nine months ended September 29, 2019 include the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma and non-GAAP adjustments.

Nine Months Ended September 29, 2020

Pro Forma

Nine Months Ended September 27, 2019

As Reported

Non-GAAP

Adjusted

As Reported

Non-GAAP

Adjusted

% Change

Adjusted Company Results

Adjustments

Adjustments

External Net Revenues

$

3,742,472

$

-

$

3,742,472

$

4,272,833

$

-

$

4,272,833

-12%

Operating Profit

315,450

249,883

565,333

553,037

106,390

659,427

-14%

Operating Margin

8.4%

6.7%

15.1%

12.9%

2.5%

15.4%

Adjusted Segment Results

U.S. and Canada Segment:

External Net Revenues

$

1,765,482

$

-

$

1,765,482

$

1,766,649

$

-

$

1,766,649

0%

Operating Profit

359,028

-

359,028

313,795

-

313,795

14%

Operating Margin

20.3%

-

20.3%

17.8%

-

17.8%

International Segment:

External Net Revenues

1,017,222

-

1,017,222

1,221,224

-

1,221,224

-17%

Operating Profit

12,333

-

12,333

51,410

-

51,410

-76%

Operating Margin

1.2%

-

1.2%

4.2%

-

4.2%

Entertainment, Licensing and Digital Segment:

External Net Revenues

262,879

-

262,879

304,266

-

304,266

-14%

Operating Profit

65,758

20,831

86,589

62,550

-

62,550

38%

Operating Margin

25.0%

7.9%

32.9%

20.6%

-

20.6%

eOne Segment:

External Net Revenues

696,889

-

696,889

980,613

-

980,613

-29%

Operating (Loss) Profit

(64,962)

150,065

85,103

91,367

106,390

197,757

-57%

Operating Margin

-9.3%

21.5%

12.2%

9.3%

10.8%

20.2%

Corporate and Eliminations:

The Corporate and Eliminations segment included non-GAAP adjustments of $78,987 for the nine months ended September 27, 2020, consisting of eOne acquisition and related costs and other severance expenses.

33 33

SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF 2019 AS REPORTED TO PRO FORMA RESULTS (Unaudited)

(Thousands of Dollars)

Pro forma results were prepared by combining the results of Hasbro and eOne for the quarter ended September 29, 2019, after giving effect to the eOne Acquisition as if it had been consummated on December 31, 2018.

These pro forma results do not represent financial results that would have been realized had the acquisition actually occurred on December 31, 2018, nor are they intended to be a projection of future results. The pro forma financial information is presented for illustrative purposes only and does not reflect the costs of any integration activities or cost savings or synergies that may be achieved as a result of the acquisition.

Quarter Ended September 29, 2019

Hasbro

eOne

Pro Forma

Pro Forma

(under U.S.

As Reported

GAAP)

Adjustments (1)

Combined

Net Revenues

$

1,575,173

$

283,310

$

-

$

1,858,483

Operating Profit

$

297,210

$

22,294

$

(6,482)

$

313,022

Non-GAAP Adjustments

-

22,673

6,482

29,155

Adjusted Operating Profit *

$

297,210

$

44,967

$

-

$

342,177

* Reconciliation to Pro Forma Adjusted results is as follows:

Net Earnings

$

212,949

$

2,958

$

629

$

216,536

Interest Expense

22,764

10,302

19,105

52,171

Other Expense (Income), Net

14,700

2,687

(25,533)

(8,146)

Income Tax Expense

46,797

4,025

(683)

50,139

Net Earnings Attributable to Noncontrolling Interests

-

2,322

-

2,322

Operating Profit

297,210

22,294

(6,482)

313,022

Non-GAAP Adjustments

eOne:

Restructuring and Related Charges

-

3,234

-

3,234

Acquisition Costs - eOne Deals

-

1,324

-

1,324

Hasbro Transaction Costs

-

3,244

(3,244)

-

Acquired Intangible Amortization

-

14,871

9,726

24,597

-

22,673

6,482

29,155

Adjusted Operating Profit

$

44,967

$

-

$

342,177

$

297,210

  1. The pro forma results include certain pro forma adjustments to net earnings that were directly attributable to the acquisition, as if the acquisition had occurred on December 31, 2018, including the following:
    • deal costs of $3,244 incurred by eOne related to the eOne acquisition, included in Selling, Distribution and Administration;
    • additional amortization expense of $9,726 that would have been recognized as a result of the allocation of purchase consideration to definite-lived intangible assets subject to amortization;
    • estimated differences in interest expense of $19,105 as a result of incurring new debt and extinguishing historical eOne debt;
    • reduction in Other Expense of $25,533 related to the mark to market of foreign exchange forward and option contracts, which the Company entered into in order to hedge a portion of the British pound sterling purchase price for the eOne acquisition; and
    • the income tax effect of the pro forma adjustments in the amount of $683, calculated using a blended statutory income tax rate of 22.5% for the eOne

adjustments and 21% for the Hasbro interest adjustments.

34

SUPPLEMENTAL FINANCIAL DATA RECONCILIATION OF 2019 AS REPORTED TO PRO FORMA RESULTS (Unaudited)

(Thousands of Dollars)

Pro forma results were prepared by combining the results of Hasbro and eOne for the nine months ended September 29, 2019, after giving effect to the eOne Acquisition as if it had been consummated on December 31, 2018.

These pro forma results do not represent financial results that would have been realized had the acquisition actually occurred on December 31, 2018, nor are they intended to be a projection of future results. The pro forma financial information is presented for illustrative purposes only and does not reflect the costs of any integration activities or cost savings or synergies that may be achieved as a result of the acquisition.

Nine Months Ended September 29, 2019

Hasbro

eOne

Pro Forma

Pro Forma

(under U.S.

As Reported

GAAP)

Adjustments (2)

Combined

Net Revenues

$

3,292,220

$

980,613

$

-

$

4,272,833

Operating Profit

$

461,670

$

118,901

$

(27,534)

$

553,037

Non-GAAP Adjustments

-

78,856

27,534

106,390

Adjusted Operating Profit *

$

461,670

$

197,757

$

-

$

659,427

* Reconciliation to Pro Forma Adjusted results is as follows:

Net Earnings

$

253,109

$

28,132

$

(30,798)

$

250,443

Interest Expense

67,096

35,073

57,316

159,485

Other Expense, Net

99,125

28,479

(45,345)

82,259

Income Tax Expense

42,340

22,303

(8,707)

55,936

Net Earnings Attributable to Noncontrolling Interests

-

4,914

-

4,914

Operating Profit

461,670

118,901

(27,534)

553,037

Non-GAAP Adjustments

eOne:

Restructuring and Related Charges

-

21,882

-

21,882

Acquisition Costs - eOne Deals

-

10,717

-

10,717

Hasbro Transaction Costs

-

3,244

(3,244)

-

Acquired Intangible Amortization

-

43,013

30,778

73,791

-

78,856

27,534

106,390

Adjusted Operating Profit

$

197,757

$

-

$

659,427

$

461,670

  1. The pro forma results include certain pro forma adjustments to net earnings that were directly attributable to the acquisition, as if the acquisition had occurred on December 31, 2018, including the following:

•deal costs of $3,244 incurred by eOne related to the eOne acquisition, included in Selling, Distribution and Administration;

•additional amortization expense of $30,778 that would have been recognized as a result of the allocation of purchase consideration to definite-lived intangible assets subject to amortization;

•estimated differences in interest expense of $57,316 as a result of incurring new debt and extinguishing historical eOne debt; •total reduction in Other Expense of $45,345, consisting of:

-$19,812 related to premiums paid by eOne in connection with the early redemption of its senior secured notes and the related write-off of unamortized deferred finance charges associated with

the senior secured notes, and

-$25,533 related to the mark to market of foreign exchange forward and option contracts, which the Company entered into in order to hedge a portion of the British pound sterling purchase price

for the eOne acquisition; and

•the income tax effect of the pro forma adjustments in the amount of $8,707, calculated using a blended statutory income tax rate of 22.5% for the eOne adjustments and 21% for the Hasbro interest

35

adjustments.

SUPPLEMENTAL FINANCIAL DATA

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Thousands of Dollars & Shares, Except Per Share Data

For comparability, the quarter and nine months ended September 29, 2019 includes the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma and non-GAAP adjustments.

Reconciliation of Net Earnings and Earnings per Share

Quarter Ended

Diluted

Pro Forma

Pro Forma Diluted Per

(all adjustments reported after-tax)

Setpember 27, 2020

Per Share Amount

September 29, 2019

Share Amount (1)

Net Earnings Attributable to Hasbro, Inc.

$

220,898

$

1.61

$

216,536

$

1.57

Acquisition and Related Costs

4,726

0.03

-

-

Acquired Intangible Amortization

19,637

0.14

19,063

0.14

UK Tax Reform (2)

13,680

0.10

-

-

Pro Forma eOne Adjustments

-

-

3,532

0.03

Net Earnings Attributable to Hasbro, Inc., as Adjusted

$

258,941

$

1.88

$

239,131

$

1.74

Nine Months Ended

Diluted

Pro Forma

Pro Forma Diluted Per

(all adjustments reported after-tax)

Setpember 27, 2020

Per Share Amount

September 29, 2019

Share Amount (1)

Net Earnings Attributable to Hasbro, Inc.

$

117,346

$

0.85

$

250,443

$

1.82

Acquisition and Related Costs

140,691

1.02

-

-

Acquired Intangible Amortization

57,471

0.42

57,188

0.42

Severance

10,125

0.07

-

-

UK Tax Reform (2)

13,680

0.10

-

-

Pro Forma eOne Adjustments

-

-

25,264

0.18

Pension (3)

-

-

85,852

0.62

Net Earnings Attributable to Hasbro, Inc., as Adjusted

$

339,313

$

2.47

$

418,747

$

3.04

  1. 2019 Pro Forma Diluted Per Share Amount is calculated using weighted average shares outstanding of 137,586 for the quarter and nine months ended September 29, 2019, which includes the pro forma impact of issuing shares associated with the financing of the eOne Acquisition.
  2. In the third quarter of 2020, the Company recorded income tax expense of $13,680 as a result of the revaluation of Hasbro's UK tax attributes in accordance with the Finance Act of 2020 enacted by the United Kingdom on July 22, 2020. Effective back to April 1, 2020, the new law maintains the corporate income tax rate at 19% instead of the planned reduction to 17% that was previously enacted in the UK Finance Act of 2016.

(3) In the second quarter of 2019, the Company recognized a non-cash charge of $110,777 ($85,852 after-tax) related to the settlement of its U.S. defined benefit pension plan.

36

SUPPLEMENTAL FINANCIAL DATA

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Thousands of Dollars & Shares, Except Per Share Data

For comparability, the quarter and nine months ended September 29, 2019 includes the pro forma results for the eOne Segment. See "Reconciliation of 2019 As Reported to Pro Forma Results" for the pro forma and non-GAAP adjustments.

Reconciliation of EBITDA

Quarter Ended

Quarter Ended September 29, 2019

Hasbro

eOne

Pro Forma

Pro Forma

Net Earnings Attributable to Hasbro, Inc.

September 27, 2020

As Reported

(under U.S. GAAP)

Adjustments (4)

Combined

$

220,898

$

212,949

$

2,958

$

629

$

216,536

Interest Expense

49,400

22,764

10,302

19,105

52,171

Income Tax Expense

79,215

46,797

4,025

(683)

50,139

Net (Loss) Earnings Attributable to Noncontrolling Interests

(915)

-

2,322

-

2,322

Depreciation

37,513

38,608

2,667

-

41,275

Amortization of Intangibles

36,172

11,814

14,871

9,726

36,411

EBITDA

$

422,283

$

332,932

$

37,145

$

28,777

$

398,854

Non-GAAP Adjustments

5,949

25,533

7,802

(28,777)

4,558

Adjusted EBITDA

$

428,232

$

358,465

$

44,947

$

-

$

403,412

Nine Months Ended

Nine Months Ended September 29, 2019

Hasbro

eOne

Pro Forma

Pro Forma

September 27, 2020

As Reported

(under U.S. GAAP)

Adjustments (5)

Combined

Net Earnings Attributable to Hasbro, Inc.

$

117,346

$

253,109

$

28,132

$

(30,798)

$

250,443

Interest Expense

153,702

67,096

35,073

57,316

159,485

Income Tax Expense

64,313

42,340

22,303

(8,707)

55,936

Net Earnings Attributable to Noncontrolling Interests

1,929

-

4,914

-

4,914

Depreciation

94,100

101,016

5,770

-

106,786

Amortization of Intangibles

107,685

35,445

43,013

30,778

109,236

EBITDA

$

539,075

$

499,006

$

139,205

$

48,589

$

686,800

Non-GAAP Adjustments

177,547

136,310

55,655

(48,589)

143,376

Adjusted EBITDA

$

716,622

$

635,316

$

194,860

$

-

$

830,176

(4) Pro Forma Adjustments for the quarter ended September 29, 2019 includes the mark to market of acquisition-related foreign exchange forward and option contracts of $25,533

and deal costs of $3,244, which are excluded from pro forma results, and also shown as Non-GAAP Adjustments within Hasbro and eOne. The net impact to Pro Forma Adjusted

EBITDA is zero.

(5) Pro Forma Adjustments for the nine months ended September 29, 2019 include debt refinancing costs of $19,812, the mark to market of acquisition-related foreign exchange

forward and option contracts of $25,533, and deal costs of $3,244, which are excluded from pro forma results, and also shown as a Non-GAAP Adjustment within Hasbro and

37

eOne. The net impact to Pro Forma Adjusted EBITDA is zero.

SUPPLEMENTAL FINANCIAL DATA

eOne - FY2019 RESULTS OF OPERATIONS (AS REPORTED UNDER US GAAP) (Unaudited) (Thousands of Dollars)

Quarter Ended

Year Ended

Net Revenues (1)

March 2019

June 2019

September 2019

December 2019

December 2019

$

466,212

$

231,091

$

283,310

$

235,160

$

1,215,773

Costs and Expenses:

Cost of Sales

14,141

17,053

11,497

24,878

67,569

Program Cost Amortization

160,857

64,527

92,662

90,414

408,460

Royalties

81,147

55,865

49,533

39,659

226,204

Advertising

21,173

32,870

30,593

37,241

121,877

Amortization of Intangibles

12,117

16,025

14,871

16,552

59,565

Selling, Distribution and Administration

61,130

63,791

61,860

92,996

279,777

Operating Profit (Loss)

115,647

(19,040)

22,294

(66,580)

52,321

Interest Expense

12,563

12,208

10,302

10,772

45,845

Other Expense (Income), Net

4,556

21,236

2,687

(759)

27,720

Earnings (Loss) before Income Taxes

98,528

(52,484)

9,305

(76,593)

(21,244)

Income Tax Expense (Benefit)

21,632

(3,354)

4,025

(26,815)

(4,512)

Net Earnings (Loss)

76,896

(49,130)

5,280

(49,778)

(16,732)

Net Earnings Attributable to Noncontrolling Interests

2,190

402

2,322

488

5,402

Net Earnings (Loss) Attributable to eOne

$

74,706

$

(49,532)

$

2,958

$

(50,266)

$

(22,134)

The eOne financial results above include certain charges that would have been excluded to calculate Adjusted results, as historically reported by eOne. Those charges are outlined below for each quarter in fiscal year 2019.

  1. eOne Net Revenues by category are as follows:

Quarter Ended

Year Ended

March 2019

June 2019

September 2019

December 2019

December 2019

Film and TV

$

387,611

$

160,270

$

199,949

$

140,581

$

888,411

Family Brands

56,612

41,228

53,828

58,677

210,345

Music and Other

21,989

29,593

29,533

35,902

117,017

Total

$

466,212

$

231,091

$

283,310

$

235,160

$

1,215,773

38 38

SUPPLEMENTAL FINANCIAL DATA

eOne - FY2019 RESULTS OF OPERATIONS (AS REPORTED UNDER US GAAP) (Unaudited)

(Thousands of Dollars)

39 39

SUPPLEMENTAL FINANCIAL DATA

FY2019 PRO FORMA AND AS REPORTED NET REVENUES BY BRAND PORTFOLIO (Unaudited)

(Thousands of Dollars)

The following unaudited quarterly pro forma brand portfolio net revenue information presents the combination of the historical quarterly brand portfolio revenue of Hasbro and eOne for FY2019 and is intended to provide information about how the eOne acquisition might have affected the Company's historical quarterly revenue. Hasbro's standalone, as reported quarterly brand portfolio net revenue for FY2019 is also presented below. The pro forma net revenue information is not necessarily indicative of what the combined company's revenue actually would have been had the acquisition been completed as of the dates indicated, nor does it purport to project the future revenue of the combined company.

Q1

% of

Q2

% of

Q3

% of

Q4

% of

Full Year

% of

Total

Total

Total

Total

Total

Franchise Brands

$

393,574

33%

$

576,715

47%

$

779,659

42%

$

661,899

40%

$

2,411,847

41%

Partner Brands

171,989

14%

213,448

18%

427,029

23%

408,516

24%

1,220,982

20%

Hasbro Gaming

107,565

9%

123,420

10%

232,287

13%

246,478

15%

709,750

12%

Emerging Brands (1)

116,135

10%

106,647

9%

188,589

10%

167,376

10%

578,747

10%

TV/Film/Entertainment (2)

409,459

34%

195,398

16%

230,919

12%

178,898

11%

1,014,674

17%

Total

$

1,198,722

$

1,215,628

$

1,858,483

$

1,663,167

$

5,936,000

  1. Emerging Brands includes the preschool brands, PEPPA PIG, PJ MASKS and RICKY ZOOM, acquired as part of the eOne acquisition.
  2. TV/Film/Entertainment includes all other brands not detailed in (1) above acquired as part of the eOne acquisition.

As Reported 2019

Q1

% of

Q2

% of

Q3

% of

Q4

% of

Full Year

% of

Franchise Brands

Total

Total

Total

Total

Total

$

393,574

54%

$

576,715

59%

$

779,659

49%

$

661,899

46%

$

2,411,847

51%

Partner Brands

171,989

23%

213,448

22%

427,029

27%

408,516

29%

1,220,982

26%

Hasbro Gaming

107,565

15%

123,420

12%

232,287

15%

246,478

17%

709,750

15%

Emerging Brands

59,382

8%

70,954

7%

136,198

9%

111,114

8%

377,648

8%

TV/Film/Entertainment

-

-

-

-

-

-

-

-

-

-

Total

$

732,510

$

984,537

$

1,575,173

$

1,428,007

$

4,720,227

40

40

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Disclaimer

Hasbro Inc. published this content on 26 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2020 13:49:06 UTC