Hasbro Reports Revenue and Net Earnings Growth for First Quarter 2017

• First quarter 2017 revenues grew 2% to $849.7 million including
  revenue growth of 2% in the U.S. and Canada segment and 24% in the
  Entertainment and Licensing segment; International segment revenues
  were flat;
• Growth in Franchise Brands, Hasbro Gaming and Emerging Brands
  offset the expected decline in Partner Brands;
• Net earnings increased 41% to $68.6 million or $0.54 per diluted
  share; Reported net earnings include a $0.11 per diluted share benefit
  versus first quarter 2016 from the adoption of FASB ASU No. 2016-09;
• Company returned $81.5 million to shareholders in the quarter;
  $63.4 million in dividends and $18.1 million in share repurchases.

PAWTUCKET, R.I.–(BUSINESS WIRE)–$HAS #HAS—Hasbro,
Inc. (NASDAQ: HAS) today reported financial results for the
first quarter 2017. Net revenues for the first quarter 2017 increased 2%
to $849.7 million versus $831.2 million in 2016.

Net earnings for the first quarter 2017 increased 41% to $68.6 million,
or $0.54 per diluted share, compared to $48.8 million, or $0.38 per
diluted share, in 2016. Reported net earnings include a $0.11 per
diluted share benefit versus first quarter 2016 from the adoption of
FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment
Accounting. The first quarter 2017 was a 14-week period versus the first
quarter 2016 which was a 13-week period. Given the timing of the week,
the extra week adds an additional week of expense, but does not
contribute a comparable level of revenue.

“Our first quarter results are in line with our previously communicated
expectations and we are well positioned to execute against 2017’s rich
content slate and diverse new initiatives,” said Brian Goldner, Hasbro’s
chairman and chief executive officer. “Revenue grew in the quarter and
we drove strong consumer takeaway at retail, both compared to a robust
first quarter last year and with a shift of Easter into this year’s
second quarter. Over the coming quarters, we are supporting significant
new initiatives including major theatrical films for both Franchise and
Partner Brands.”

“Hasbro remains in a strong financial position, with positive trends to
start the year and a healthy balance sheet,” said Deborah Thomas,
Hasbro’s chief financial officer. “As anticipated, operating profit in
the quarter was negatively impacted by an extra week of expenses without
the comparable revenue increase. This decline was more than offset by a
favorable foreign exchange impact in non-operating income and the tax
benefit from the new accounting standard. Based on our first quarter’s
performance, our full-year expectations remain in line with our
previously stated objectives.”

First quarter 2017 U.S. and Canada segment net revenues increased 2% to
$451.6 million compared to $443.6 million in 2016. Revenue growth in
Hasbro Gaming and Emerging Brands offset a decline in Franchise Brands
and Partner Brands. The U.S. and Canada segment reported operating
profit of $64.8 million, or 14.3% of net revenues, compared to $78.3
million, or 17.7% of net revenues, in 2016.

International segment net revenues of $345.3 million were essentially
flat with $345.0 million in 2016. First quarter 2017 International
segment revenues include a favorable $3.0 million impact of foreign
exchange. Revenue growth in Franchise Brands, Hasbro Gaming and Emerging
Brands was offset by a decline in Partner Brands. On a regional basis,
Europe revenues declined 4%, Latin America increased 16% and Asia
Pacific declined 1%. Emerging markets revenues increased 20% in the
quarter. International segment operating profit was $0.5 million
compared to $2.9 million in 2016.

Entertainment and Licensing segment net revenues increased 24% to $52.7
million compared to $42.5 million in 2016. Digital gaming drove the
quarterly revenue increase, including higher revenues at Backflip
Studios. The Entertainment and Licensing segment operating profit
increased 108% to $11.3 million, or 21.5% of net revenues, compared to
$5.4 million, or 12.8% of net revenues, in 2016.

*Hasbro’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, totaled $253.3 million for the
first quarter 2017, up 10%, versus $231.1 million in the first quarter
2016. Hasbro believes its gaming portfolio is a competitive
differentiator and views it in its entirety.

First quarter 2017 Franchise Brand revenues increased 2% to $423.6
million driven by revenue growth in NERF, TRANSFORMERS and MONOPOLY.

Partner Brand revenues declined 18% to $213.0 million. Revenue growth
from BEYBLADE and DREAMWORKS’ TROLLS was more than offset by expected
declines in STAR WARS and MARVEL ahead of major theatrical releases
later this year.

Hasbro Gaming posted 43% revenue growth to $142.9 million driven by
Hasbro’s diverse gaming portfolio. The strong revenue increase was led
by several new games, including SPEAK OUT, TOILET TROUBLE and FANTASTIC
GYMNASTICS, digital gaming, and several other gaming brands, including
DUNGEONS & DRAGONS, BOP-IT and PIE-FACE. Hasbro’s total gaming category
grew 10% to $253.3 million.

Emerging Brands revenue grew 25% to $70.2 million. Revenue increases
from BABY ALIVE and FURREAL FRIENDS products were the primary
contributors to growth in the quarter.

Dividend and Share Repurchase

The Company paid $63.4 million in cash dividends to shareholders during
the first quarter 2017. The next quarterly cash dividend payment of
$0.57 per common share is scheduled for May 15, 2017 to shareholders of
record at the close of business on May 1, 2017.

During the first quarter, Hasbro repurchased 218,000 shares of common
stock at a total cost of $18.1 million and an average price of $82.82
per share. At quarter-end, $309.9 million remained available in the
current share repurchase authorization.

Conference Call Webcast

Hasbro will webcast its first quarter 2017 earnings conference call at
8:30 a.m. Eastern Time today. To listen to the live webcast and access
the accompanying presentation slides, please go to http://investor.hasbro.com.
The replay of the call will be available on Hasbro’s web site
approximately 2 hours following completion of the call.

About Hasbro: Hasbro (NASDAQ:
HAS) is a global play and entertainment company committed to Creating
the World’s Best Play Experiences. From toys and games to
television, movies, digital gaming and consumer products, Hasbro offers
a variety of ways for audiences to experience its iconic brands,
including NERF, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY,
LITTLEST PET SHOP and MAGIC: THE GATHERING. The Company’s Hasbro
Studios and its film label, Allspark Pictures, are building its brands
globally through great storytelling and content on all screens. Through
its commitment to corporate social responsibility and
philanthropy, Hasbro is helping to make the world a better place for
children and their families. Learn more at www.hasbro.com,
and follow us on Twitter (@Hasbro & @HasbroNews)
and Instagram (@Hasbro).

© 2017 Hasbro, Inc. All Rights Reserved.

Certain statements in this release contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements include expectations concerning the Company’s
potential performance in the future and the Company’s ability to achieve
its other financial and business goals and may be identified by the use
of forward-looking words or phrases. The Company’s 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. Specific factors that might cause such a difference
include, but are not limited to: (i) the Company’s ability to design,
develop, produce, manufacture, source and ship products on a timely and
cost-effective basis, as well as interest in and purchase of those
products by retail customers and consumers in quantities and at prices
that will be sufficient to profitably recover the Company’s costs; (ii)
downturns in economic conditions affecting the Company’s markets which
can negatively impact the Company’s retail customers and consumers, and
which can result in lower employment levels, lower consumer disposable
income and spending, including lower spending on purchases of the
Company’s products; (iii) other factors which can lower discretionary
consumer spending, such as higher costs for fuel and food, drops in the
value of homes or other consumer assets, and high levels of consumer
debt; (iv) potential difficulties or delays the Company may experience
in implementing cost savings and efficiency enhancing initiatives; (v)
other economic and public health conditions or regulatory changes in the
markets in which the Company and its customers and suppliers operate
which could create delays or increase the Company’s costs, such as
higher commodity prices, labor costs or transportation costs, or
outbreaks of disease; (vi) currency fluctuations, including movements in
foreign exchange rates, which can lower the Company’s net revenues and
earnings, and significantly impact the Company’s costs; (vii) the
concentration of the Company’s customers, potentially increasing the
negative impact to the Company of difficulties experienced by any of the
Company’s customers or changes in their purchasing or selling patterns;
(viii) consumer interest in and acceptance of the Discovery Family
Channel, and programming created by Hasbro Studios, and other factors
impacting the financial performance of the network and Hasbro Studios;
(ix) the inventory policies of the Company’s retail customers, including
retailers’ potential decisions to lower their inventories, even if it
results in lost sales, as well as the concentration of the Company’s
revenues in the second half and fourth quarter of the year, which
coupled with reliance by retailers on quick response inventory
management techniques increases the risk of underproduction of popular
items, overproduction of less popular items and failure to achieve
compressed shipping schedules; (x) delays, increased costs or
difficulties associated with any of our or our partners’ planned digital
applications or media initiatives; (xi) work disruptions, which may
impact the Company’s ability to manufacture or deliver product in a
timely and cost-effective manner; (xii) the bankruptcy or other lack of
success of one of the Company’s significant retailers which could
negatively impact the Company’s revenues or bad debt exposure; (xiii)
the impact of competition on revenues, margins and other aspects of the
Company’s business, including the ability to offer Company products
which consumers choose to buy instead of competitive products, the
ability to secure, maintain and renew popular licenses and the ability
to attract and retain talented employees; (xiv) concentration of
manufacturing for many of the Company’s products in the People’s
Republic of China and the associated impact to the Company of social,
economic or public health conditions and other factors affecting China,
the movement of products into and out of China, the cost of producing
products in China and exporting them to other countries; (xv) the risk
of product recalls or product liability suits and costs associated with
product safety regulations; (xvi) the impact of other market conditions,
third party actions or approvals and competition which could reduce
demand for the Company’s products or delay or increase the cost of
implementation of the Company’s programs or alter the Company’s actions
and reduce actual results; (xvii) the impact of litigation or
arbitration decisions or settlement actions; and (xviii) other risks and
uncertainties as may be detailed from time to time in the Company’s
public announcements and Securities and Exchange Commission (“SEC”)
filings. The Company undertakes 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
release.

This press release includes a non-GAAP financial measure as defined
under SEC rules, specifically EBITDA. EBITDA represents net earnings
attributable to Hasbro, Inc. excluding net loss attributable to
noncontrolling interests, interest expense, income taxes, depreciation
and amortization. As required by SEC rules, we have provided
reconciliation on the attached schedule of this measure to the most
directly comparable GAAP measure. Management believes that EBITDA is one
of the appropriate measures for evaluating the operating performance of
the Company because it reflects the resources available for strategic
opportunities including, among others, to invest in the business,
strengthen the balance sheet, and make strategic acquisitions. This
non-GAAP measure 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 the Company’s financial statements and filings with the
SEC. As used herein, “GAAP” refers to accounting principles generally
accepted in the United States of America.

HAS-E

Contacts

Investor Contact:
Hasbro, Inc.
Debbie Hancock, 401-727-5401
debbie.hancock@hasbro.com
or
Press
Contact:
Hasbro, Inc.
Julie Duffy, 401-727-5931
julie.duffy@hasbro.com