Hasbro : 2023 Annual Report

Improved inventory position enables higher value retail distribution and a focus on product innovation

Iks`kqlov^h`[krm`Ɔloqp resulted in a working capital improvement of ~$350 million

Entered 2024 with inventories down 50% YoY, well below pre-pandemic levels

Expect annual savings of roughly

Ӱjehhelkaolj`ueqekcls`oƋlt locations for excess inventory storage

Sdeaq`_hltlok`c[qes`molƈq businesses to out-licensed model

Better than expected cost savings due to Operational Excellence work

Updated target to $750 million of gross savings by end of 2025 with

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Unlocks crucial investment capacity

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Return cash to shareholders through our category-leading dividend

Al[o_F[j`p^lkqekr`pql]`[h`[_ekc^[q`clovalo us and one we anticipate will grow in the year ahead. TWISTER AIR was the number one new game across

qd`Fj[og`qpek[^^lo_ekcqlBeo^[k[qd[kgp to an innovative new augmented reality experience. 2024 is expected to be a big year for gaming from Hasbro, as we expand into new genres, work with some of the brightest designers in the industry

and leverage our reach and distribution strength to introduce more new games than ever.

Wizards and Digital outperformed our guidance in

_oes`k]v[p`oe`pla]hl^g]rpq`odeqpҼM@FIB had another record year in 2023 with a string of new sets, including our best-selling set of all time,

The Lord of the Rings: Tales of Middle-Earth.

We saw the power of our franchises play out with digital licensing. Our partners at Larian Studios launched the long-awaitedBaldur's Gate 3 - based

lkCUNFDONSҢCR@FONSIPҿ[k_lk`laqd` highest rated video games of all time. We saw huge success from Monopoly GO! from our partners at Scopely. We expect a long tail into 2024 and beyond for these mega hits.

In 2024, we'll celebrate the 50th anniversary of

CUNFDONSҢCR@FONSteqd[^ljm`hhekck`t line up of adventures, core rule books and new

4 HASBRO 2023 ANNUAL REPORT

_eceq[hӣƈopqlƆ`oekcpҼW`ӗhhh[rk^dqd`]ecc`pq update to 5th Edition since its introduction in 2014, reinventing everything from the artwork of our iconic monsters to new mechanics, to bold new ways to bring to life the world of D&D digitally.

All of this will add up to increasingly impressive product, collaborations, and experiences across all of our brands, through 2024 and leading into an even brighter 2025.

Our Purpose in Practice

At Hasbro, we are privileged to create products and experiences that bring joy and spark human connectivity across generations, cultures and lifetimes. Our Purpose motivates our employees, engages our consumers, and positively impacts the communities in which we operate. We believe

pqolkcDkseolkj`kq[hҿSl^e[h[k_Fls`ok[k^`ҫDSFҬ performance drives long-term value for our business and stakeholders.

Throughout 2023, we took important steps to

pqo`kcqd`klroDSFpqo[q`cv[k_^lkqekr`_ql ekq`co[q`DSFqdolrcdlrqlro]rpek`pp[k_s[hr` ^d[ekҼTd`S^e`k^`ӣA[p`_T[oc`qIkeqe[qes`ҫӓSATeӔҬ

s[he_[q`_lroco``kdlrp`c[p`jeppelkҫӓFHFӔҬ reductions target to reduce Scope 1 and Scope 2 emissions by 47.5% by 2030. The SBTi also validated our net-zeroscience-based target which is to reduce

[]plhrq`S^lm`[k_FHF`jeppelkp]vҧ by 2050 from a 2020 base year. We continued to integrate climate risks and opportunities into our existing enterprise risk management system to help build climate resiliency through our business operations. We also initiated a biodiversity screening

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_`m`k_`k^e`pteqdeklros[hr`^d[ek[k_ҫҬe_`kqeav potential areas of risk and opportunities related to biodiversity.

With our ongoing commitment to consistent and

qo[kpm[o`kqDSFo`mloqekcҿt`pd[o`_H[p]olӗpDSF performance along with key accomplishments for

eklro[kkr[hDSFC[q[Um_[q`ҼTdeprm_[q` t[pmr]hepd`_ek[heckj`kqteqdqd`Fhl][hR`mloqekc Ikeqe[qes`ҫFRIҬ[k_qd`Srpq[ek[]eheqv@^^lrkqekc Sq[k_[o_pAl[o_ҫS@SAҬҼ

A prudent approach to capital

We ended the year with $545 million in cash on the balance sheet, generated $726 million

eklm`o[qekc^[pdƋlt[k_o`_r^`__`]q]v approximately $500 million.

From a capital allocation standpoint, our priorities are to reinvest behind the core business, return cash to shareholders, and continue to pay down debt. We remain committed to our category-leading dividend, and we were pleased to return $388 million to shareholders in 2023.

Year in Review

For the full year revenues were $5.0 billion, down 15% year over year. We reported an operating loss of $1.5 billion that included $1.3 billion in non-cash charges associated with the sale of eOne and a change in strategy for the balance of the owned

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molƈqҷt[pӰjehhelk[k_ek^hr_`pӰjehhelk of non-cash charges focused on inventory reduction to reset the business.

Wizards of the Coast and Digital Gaming segment

o`s`kr`pek^o`[p`_ҧqlӰҼ]ehhelkҼFoltqdek the segment was driven by a series of hits, including

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The Universes Beyond Lord of the Rings Tales of Middle Earth set became the best-sellingMagic set

of all time.

FoltqdekLe^`kp`_Ceceq[hF[jekct[par`h`_]vqd` power of our franchises with the multi award-winningBaldur's Gate 3 from our partners at Larian Studios, and the most successful mobile game launch in the U.S. with Monopoly Go! from Scopely.

Consumer Productsp`cj`kqo`s`kr`_`^hek`_ҧҼ Declines were driven by planned business exits, softer industry trends and inventory management

`Ɔloqp[qo`q[ehҼC`pmeq`[qlrcd^[q`clov][^g_olmҿ the teams delivered growth in TRANSFORMERS

in support of the Transformers: Rise of the Beasts

a`[qro`ƈhjҿh[rk^d`_[qlmqlvteqdEURAY[k_[ game of the year winner, TWISTER AIR and grew FҼIҼJOD. 2023 was a reset year for the consumer

mol_r^qp`cj`kqҿ[k_t`]`he`s`qd`o`ep[peckeƈ^[kq

lmmloqrkeqvqlejmols`qd`rk_`ohvekcmolƈq[]eheqv and rebuild the innovation engine.

Entertainment revenues declined due to the writers' and actors' strikes that impacted deliveries within Film and TV. Family Brands grew for the full year. The Company completed the sale of the eOne Film and TV business to Lionsgate in December 2023.

Licensed Digital Gaming The power of Hasbro brands

Wizards of

the Coast and Digital Gaming segment revenues

Operational excellence in action

As part of the Company's Operational Excellence cost savings program, the Hasbro teams are taking a hard look at product design across the portfolio, seeking opportunities to take costs out while keeping, or in some cases, improving the play experience.

The design to value approach requires looking at every component that goes into a product line through to packaging, evaluating the cost of each piece and identifying opportunities to reduce or eliminate costs with little to no impact on the play experience. Through Consumer Insights we test the

mol_r^q[k_eaqd`^d[kc`p_lklq[Ɔ`^qqd`^rpqlj`o experience, we implement the change.

Td`H[p]olF[jekcq`[jt[prmaloqd`^d[hh`kc`ҿ starting with many of Hasbro's original games, a $200M+ portfolio of gaming brands that have been around for decades.

TWISTER. PERFECTION. HUNFRYHUNFRYHIPPOS. Jrpq[a`tlaqd`loecek[hH[p]olc[j`pqd[qd[s` _`ƈk`_plj[kv^deh_dll_`um`oe`k^`pҼ

The team imagines the future of board games and enrich the player experience while making our games modern introducing 'aha' innovation that makes these classics feel fresh with space-saving packaging design that drives value for the consumer and

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8 HASBRO 2023 ANNUAL REPORT

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In the spring of 2023, Hasbro celebrated the 50th Anniversary of PERFECTION with a complete redesign of the game, introducing some simple

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qtl^lhloplac[j`me`^`pҾ[pj[hhjl_eƈ^[qelk that makes game play much more competitive and exciting. Suddenly, PERFECTION went from being a solitary puzzle game to a competitive match between two players.

The team also introduced a modular game board that

^[k]`o`^lkƈcro`_Ӧo`prhqekcekls`orkenr` combinations and endless replayability. No longer can players memorize the location of the shapes to improve their performance!

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We launched the next iteration of HUNFRYHUNFRY HIPPOS, which has been thoughtfully updated in response to some common complaints. The older version took time for parents to put together, and then had to be disassembled again to be stored

in its box. The new Hippos have a more playful game board, streamlined packaging, and best of all: no assembly required. Through it all, the team is

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Td`H[p]olF[jekcq`[jtehh^lkqekr`qlo`_`peck more Hasbro originals like MONOPOLY and OPERATION and will also expand into new categories and channels like card, strategy, and adult party games.