Investor Presentation. January 2018

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Cynthia Hudson
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1 Investor Presentation January 2018

2 Safe Harbor FORWARD-LOOKING STATEMENTS: This presentation contains forward-looking statements concerning management's expectations, goals, objectives and similar matters, which are subject to risks and uncertainties. These forward-looking statements may include comments concerning our product and entertainment plans, anticipated product performance, business opportunities, plans and strategies, costs, financial goals and expectations for our future financial performance and achieving our objectives, as well as the anticipated impact of foreign exchange rates. There are many factors that could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements, including consumer and retailer interest in and acceptance of our products and product lines, changes in marketing and business plans and strategies as well as future global economic conditions, including foreign exchange rates. Some of those factors are set forth in the Company's Annual Reports on Form 10-K, in the Company's Quarterly Reports on Form 10-Q, in the Company's Current Reports on Form 8-K, the risk factors in the earnings release for the third quarter 2017 and in the Company's other public disclosures. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this presentation to reflect events or circumstances occurring after the date of this presentation. REGULATION G: Information required by Securities and Exchange Commission Regulation G, regarding non-gaap financial measures, as well as other financial and statistical information, will be available at the time of the conference call on the Investor Relations section of Hasbro s website at: investor.hasbro.com, under the subheading Financial Information Quarterly Results. 2

Develop Industry Leading Capabilities 2016 $5B Begin assembling current Senior

term Storytelling Global Consumer Insights Consumer Products Licensing Focus on

3 Long-Term Strategic Differentiators Establish Core Brand Strategy Build Global Brand Organization Roll-Out Hasbro Brand Blueprint Develop Industry Leading Capabilities 2016 $5B Begin assembling current Senior Management team Return Hasbro to profitability & repair the business Establish core brand strategy Build global teams to grow our brands around the world Invest in capabilities to establish, re- imagine and re-ignite global brand growth for the long term Storytelling Global Consumer Insights Consumer Products Licensing Focus on Franchise Brands & Premier Partner Brands Investing in the Brand Blueprint Returning Excess Cash to Shareholders 3

4 Core Strategy Brand Blueprint 4

5 Core Strategy Brand Blueprint 4 5

6 Revenues of 10-Year CAGR Operating Profit 6

7 Partner Brands Revenue $1.4B +28% in

8 Unrivaled in Industry $1.4B* Revenues in 2016 *Hasbro s Total Gaming category Point of Differentiation 7

9 Expanding Our Audience Focused on growing share of life Continue to grow and extend brands New expressions, new categories, and new experiences 20% of Hasbro products are consumed by people 14 years of age or older Growing demographic 9

10 Mass Toy Specialist Ecommerce Value/Discount/ Modern Trade Impulse (Grocery/Drug/Convenience) Fan Department Store Specialty (Club, Sporting Goods, etc.) Drug Convenience Club Military Travel/Duty Free Grocery Sporting Goods Electronics Books Baby Channel 10

11 Global Consumer Insights A full toolkit of cutting-edge research techniques Coupled with proprietary research methods Facilitating a continuous consumer conversation Around the globe To inform decision-making across the value chain 11

12 12 World Class Storytelling All Formats All Screens

13 Digital Shorts Television Publishing Consumer Products Franchises Engaging Audiences With Compelling Content Across a Multitude of Platforms and Media Film Location-Based Entertainment

14 Toys & Games: An Expanding Global Industry Global Traditional Toy Games/Retail Sales 2016: $82.0B FY 2017 Growth Forecast: 3% Total Global Market Size ($82B, 2016) Market Share 2016 $22.1 $7.4 $25.4 US & Canada Europe & Africa Asia Pacific USA 11.8% Europe* 9.7% $27.1 Latin America 11 Market Total** 11.6% Source: Euromonitor Source: NPD Group, SIM (Brazil), Hasbro Estimates #1 In G11 as of August 2017 In 5 Super Categories Action Figures, Arts & Crafts, Games/ #1 Puzzles, Plush, Outdoor 14 *Europe includes UK, France, Germany, Spain, Italy, & Russia; 11 Market Total includes US, Canada, UK, France, Germany, Spain, Italy, Russia, Brazil, Mexico, Australia. **To enable like-to-like comparisons, all markets have been extrapolated to 100% coverage and have been converted into USD using 12/24/16 exchange rates.

4B +7% Looking Forward 15 2021 Projected Toy & Game Value by

15 $27.3B +5% $27.6B +10% $25.1B +17% +11% Global Growth $8.8B +16% $3.8B +21% $1.4B +7% Looking Forward Projected Toy & Game Value by Region: E Growth Source: Euromonitor International: Constant Prices, Fixed 2016 Exchange Rates

16 HASBRO MOVIE HASBRO MOVIE 2017 MARCH 17 MAY 5 JUNE 21 JULY 7 OCTOBER 6 NOVEMBER 3 DECEMBER 15 Strong Entertainment Line-Up HASBRO MOVIE 2018 BUMBLEBEE SPIDER-MAN ANIMATED FEATURE 16 FEBRUARY 16 MAY 4 MAY 25 JULY 6 DECEMBER 21 DECEMBER21

Hasbro Gaming +22%; Emerging Brands +9% Operating Profit flat $361.0M in Q3 2017 vs. $362.

17 3 rd QUARTER IN REVIEW Revenue Increased 7% U.S. & Canada segment up 7%; International segment up 7%; Entertainment and Licensing segment down 4% Growth in Franchise Brands +7%; Partner Brands -2%; Hasbro Gaming +22%; Emerging Brands +9% Operating Profit flat $361.0M in Q vs. $362.1M in Q Negatively impacted by bad debt expense associated with Toys R Us bankruptcy filing in U.S. and Canada Net Earnings $2.09* per diluted share vs. $2.03 in Q *Q Reported net earnings include a $0.04 per diluted share benefit vs. Q from the adoption of FASB ASU No

Franchise Brands, Games and Partner Brands Operating Profit up 14% As Reported; Up 19% As Adjusted* Net Earnings $4.

18 FULL YEAR IN REVIEW Revenue Increased 13%; +14% Absent FX Revenue Growth in U.S. & Canada up 15% and International up 11% (+14% absent FX) segments; Entertainment and Licensing segment up 8% Growth in Franchise Brands, Games and Partner Brands Operating Profit up 14% As Reported; Up 19% As Adjusted* Net Earnings $4.34 per diluted share vs. $3.57 in FY Refer to slide 37 for a reconciliation of Reported Operating Margin to Adjusted Operating Profit Margin for

Multi-Year Revenue Expansion Hasbro Net Revenues 2006-2016 $3,838 $4,022 $4,068 $4,002 $4,286 $4,089 $4,082 $4,277 $4,448 $5,020 $ Thousands $3,151 5% 10-year CAGR 2006 2007 2008 2009 2010 2011 2012

19 Multi-Year Revenue Expansion Hasbro Net Revenues $3,838 $4,022 $4,068 $4,002 $4,286 $4,089 $4,082 $4,277 $4,448 $5,020 $ Thousands $3,151 5% 10-year CAGR Revenues up 13%; Up 14% Excluding $61M Negative Impact of Foreign Exchange Franchise Brands up 2%; Games up 9% & Partner Brands up 28% in 2016 Revenue Growth in All Major Geographic Regions

Operating Margin Improvement Hasbro Operating Margin 2006-2016 16.4% 13.5% 13.

Reported Record Year Operating Profit Building Global Brands & Leveraging

20 Operating Margin Improvement Hasbro Operating Margin % 13.5% 13.5% 14.5% 14.5% 14.7% 14.7% 14.2% 13.9% 14.7% 14.6% 13.5% 14.9% 14.9% 15.5% 15.6% 15.7% 11.9% 11.9% 12.3% 12.3% 11.4% As Adjusted As Reported Record Year Operating Profit Building Global Brands & Leveraging Expenses 20 Refer to slide 38 for a reconciliation of Reported Operating Margin to Adjusted Operating Profit Margin for

Focus: Long-Term Profitable Growth Earnings Per Share 2006-2016 As Adjusted As Reported $4.46 $4.34 $3.51 $3.57 $1.29 $1.29 $1.97 $1.

21 Focus: Long-Term Profitable Growth Earnings Per Share As Adjusted As Reported $4.46 $4.34 $3.51 $3.57 $1.29 $1.29 $1.97 $1.97 $2.00 $2.00 $2.48 $2.48 $2.59 $2.74 $2.74 $2.82 $2.81 $2.83 $2.55 $2.17 $3.15 $ % 10-year CAGR Long-Term Strategic Focus on Executing Brand Blueprint Globally EPS Has More than Tripled Since 2006* 21 Refer to slide 39 for a reconciliation of Reported Operating Margin to Adjusted Operating Profit Margin for

22 Net Revenues by Region Net Revenues by Region Category Breakdown (2016 Revenue) $ Billions % 7% 5% 28% 51% US/Canada Europe Latin America Asia Pac US/Canada Europe Latin America Asia Pacific E&L 22 Operating Profit by Segment $ Millions U.S./Canada $313.7 $334.7 $430.7 $522.3 International $235.5 $270.5 $255.4 $294.5 Entertainment & Licensing $45.5 $60.6 $76.9 $49.9 Opened Offices in Many New Markets Since 2006; Peru, Colombia, Brazil, Russia, Czech Republic, Korea, China, Thailand, South Africa, Dubai, Argentina & India (2017) Emerging Markets Generated ~ $690M in Revenues in 2016 (14% of 2016 Revenue)

23 Net Revenues Brand Portfolio $ Billions Net Revenues by Category Category Breakdown (2016 Revenue) 11% 4% 46% 28% Emerging Brands Hasbro Gaming Partner Brands Franchise Brands Franchise Brands Hasbro Gaming Partner Brands Emerging Brands 23 $5B in Revenues Highest Revenues in Hasbro History Franchise Brands MAGIC:THE GATHERING, NERF and PLAY-DOH Grew in 2016 Games Up 9% in FY 2016 Partner Brands Revenues Grew 28% in 2016

Efficiencies Lower amortization expense Investments Investing in Franchise Brands Launching New Brands

24 Driving Profitable Growth Favorable to Operating Profit Margin Favorable Product Mix Growth in Franchise Brands Growth in Hasbro Gaming Growth in Entertainment and Licensing Build scale in Emerging Markets Cost Efficiencies Lower amortization expense Investments Investing in Franchise Brands Launching New Brands Expanding Emerging Brands Investing in Partner Brands Final phase of systems investments to drive cost savings beyond

25 Cash Flow Operating Cash Flow Target $ M on Average $775 In Millions $321 $602 $593 $266 $368 $396 $535 $401 $454 $

Returning Cash to Shareholders: Dividend Growth Annual Dividend Rate $2.50 $2.00 $1.50 $1.00 $0.

26 Returning Cash to Shareholders: Dividend Growth Annual Dividend Rate $2.50 $2.00 $1.50 $1.00 $ % 25% 0% 25% 20% 20% 11% 8% 7% 11% 12% 14% 10-year CAGR $ * 2013* % reflects increase in quarterly dividend rate 12% 2017 Quarterly Dividend Increase Dividend in 13 of Last 14 Years 10 Years $1.7B 26 *2012 and 2013 annual dividend rates have been adjusted to move accelerated payment paid in 2012 to 2013

$100 $103 $460 $85 $151 $- 2006 2007 2008 2009 2010 2011 2012 2013 2014

27 Returning Cash to Shareholders: Share Repurchase $800 $700 $600 $587 $637 $3.5B ($ millions, unaudited) $500 $400 $300 $200 $100 $457 $358 $91 $423 $100 $103 $460 $85 $151 $ FY 2016 End $328M Remains FY 2016 Repurchases $151M 10 Years $3.5B 27

28 28 Making the World a Better Place

29 Proven Leadership Executive Officers 29 Brian D. Goldner Chairman of the Board and Chief Executive Officer John A. Frascotti President Deborah M. Thomas Executive Vice President and Chief Financial Officer Duncan J. Billing Executive Vice President and Chief Strategy Officer Tom Courtney Executive Vice President, Global Operations Stephen Davis Executive Vice President and Chief Content Officer Barbara Finigan Executive Vice President, Chief Legal Officer and Corporate Secretary Dolph Johnson Executive Vice President and Chief Human Resources Officer Wiebe Tinga Executive Vice President and Chief Commercial Officer Steve Zoltick Senior Vice President and Chief Information Officer

30 Experienced Board with Diverse Skills Brian D. Goldner Chairman of the Board and Chief Executive Officer Hasbro, Inc. Sir Crispin Davis Retired Chief Executive Officer Reed Elsevier PLC Edward M. Philip Retired Chief Operating Officer Partners in Health Retired Special Partner Highland Consumer Fund Kenneth A. Bronfin Senior Managing Director Hearst Ventures Lisa Gersh Chief Executive Officer Alexander Wang Richard S. Stoddart Chief Executive Officer Leo Burnett Worldwide. Michael R. Burns Vice Chairman Lions Gate Entertainment Corp. Alan G. Hassenfeld Retired Chairman and Chief Executive Officer Hasbro, Inc. Mary Beth West Chief Growth Officer The Hershey Company Hope Cochran Venture Partner Madrona Venture Group Tracy A. Leinbach Retired Executive Vice President and Chief Financial Officer Ryder System, Inc. Linda K. Zecher Retired President and Chief Executive Officer Houghton Mifflin Harcourt Company 30

31 Global Philanthropy $14 Million in Total Philanthropic Support Helping 3 Million Children in 2016 Hope $4.4 Million Financial Support Play 700,000 Toys & Games Donated Serve 89% Volunteer Participation 31

32 2017 Initiatives 32 32

33 A Global Play & Entertainment Company

35 Full-Year Income Statements ($ Millions) Net Revenues $5,020 $4,448 $4,277 Cost of Sales 1,905 1,677 1,698 Royalties Product Development Advertising Amortization of Intangibles Program Production Cost Amortization Selling, Distribution & Administration 1, Operating Profit Interest Expense Other (Income) Expense, Net (2) (9) 2 Earnings Before Income Taxes Income Taxes Net Earnings Net Loss Attributable to Noncontrolling Interests (18) (5) (3) Net Earnings Attributable to Hasbro, Inc. $551 $452 $416 Diluted EPS $4.34 $3.57 $

36 Balance Sheets ($ Millions) Dec. 25, 2016 Dec. 27, 2015 Dec. 28, 2014 Cash & Cash Equivalents $1,282 $977 $893 Accounts Receivable, Net 1,320 1,218 1,095 Inventories Other Current Assets Total Current Assets $3,228 $2,866 $2,644 Property, Plant & Equipment, Net Other Assets 1,596 1,618 1,637 Total Assets $5,091 $4,721 $4,518 Short-term Borrowings Current Portion of Long-Term Debt 350 Payables & Accrued Liabilities Total Current Liabilities $1,618 $1,065 $1,072 Long-term Debt 1,199 1,547 1,546 Other Liabilities Total Liabilities $3,206 $3,017 $3,010 Redeemable Non-controlling Interests Total Shareholders Equity 1,863 1,664 1, Total Liabilities, Redeemable Non-controlling Interests & Shareholders Equity $5,091 $4,721 $4,518

37 Condensed Cash Flow ($ Millions) Dec. 25, 2016 Dec. 27, 2015 Dec. 28, 2014 Net Cash Provided by Operating Cash Flows $775 $552 $454 Cash Flows from Investing Activities Additions to Property, Plant & Equipment (155) (142) (113) Investments and Dispositions (12) Other Net Cash Utilized by Investing Activities $(138) $(104) $(0) Cash Flows from Financing Activities Net Proceeds from (Repayments of) Short-term Borrowings 9 (87) 246 Purchases of Common Stock (150) (87) (460) Dividends Paid (249) (226) (217) Stock-based Compensation Transactions Other (6) (4) (7) Net Cash Utilized by Financing Activities (333) $(346) $(231) Effect of Exchange Rate Changes on Cash 2 (19) (12) Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Period $1,282 $977 $893 37

38 Supplemental Financial Data Reconciliation of Operating Profit- Reported to As Adjusted ( ) ($ Thousands, unaudited) $ % $ % $ % $ % $ % $ % $ % Operating Profit Reconciliation Operating Profit, as Reported $587, % 593, % 551, % 467, % 635, % 691, % 788, % Restructuring of Equity Method Investment (1,458) 0.0% Restructuring Charges 14, % 47, % 36, % 5, % Pension Charges 6, % Arbitration Award Settlement Charges 46, % Product-Related Charges 40, % Gain on Sale of Manufacturing Operations (3,061) -0.1% Goodwill Impairment 32, % Operating Profit, as Adjusted $587, % 608, % 598, % 597, % 639, % 688, % 820, % 38

39 Supplemental Financial Data Reconciliation of Net Earnings/EPS- Reported to As Adjusted ($ Thousands, unaudited) Net Earnings Diluted EPS Net Earnings Diluted EPS Net Earnings Diluted EPS Net Earnings Diluted EPS Net Earnings Diluted EPS Net Earnings Diluted EPS Net Earnings Diluted EPS Net Earnings and Diluted EPS Reconciliation Net Earnings Attributable to Hasbro, Inc., as Reported $397,752 $ , , , , , , Restructuring of Equity Method Investment, Net of Tax 18, Restructuring Charges, Net of Tax 9, , , , Gain from Sale of Intellectual Property License Rights, Net of Tax (23,892) (0.18) Benefits from Tax Exam Settlements (21,200) (0.15) (20,477) (0.15) (23,637) (0.18) (6,570) (0.05) Pension Charges, Net of Tax 4, Arbitration Award Settlement Charges, Net of Tax 53, Product-Related Charges, Net of Tax 25, Gain on Sale of Manufacturing Operations, net of tax (6,885) (0.05) Goodwill Impairment, net of tax 14, Net Earnings Attributable to Hasbro, Inc., as Adjusted $376,552 $ , , , , , , Average Diluted Common Shares Outstanding 145, , , , , , ,966 39

Hasbro First Quarter 2013 Earnings April 22, 2013

Hasbro First Quarter 2013 Earnings April 22, 2013 Safe Harbor FORWARD-LOOKING STATEMENTS: This presentation contains forward-looking statements concerning management's expectations, goals, objectives and