Hasbro, Inc.

Thank you and good morning everyone. Joining me today are Chris Cox, Hasbro's incoming chief executive officer, Rich Stoddard, Hasbro's interim chief executive officer, and Deb Thomas, Hasbro's chief financial officer. Today we will begin with Chris, Rich, and Deb providing commentary on the company's performance. Then we will take your questions. Eric Nyman, Hasbro's incoming president and chief operating officer, will be joining us for Q&A. Our earnings release and presentation slides for today's call are posted on our investor website. The press release and presentation include information regarding non-GAAP adjustments and non-GAAP financial measures. Our call today will discuss certain adjusted measures which exclude these non-GAAP adjustments. A reconciliation of GAAP to non-GAAP measures is included in the press release and presentation. Please note that whenever we discuss earnings per share or EPS, We are referring to earnings per diluted share. Before we begin, I would like to remind you that during this call and the question and answer session that follows, members of Hasbro management may make forward-looking statements concerning management's expectations, goals, objectives, and similar matters. There are many factors that could cause actual results or events to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. These factors include those set forth in our annual report on Form 10-K, our most recent 10-Q, in today's press release, and in our other public disclosures. We undertake no obligation to update any forward-looking statements made today to reflect events or circumstances occurring after the date of this call. I would now like to introduce Chris Cox. Chris?

Thanks, Debbie, and welcome everyone joining today. I'm thrilled to be starting as Hasbro's CEO later this month, and overwhelmed by the outpouring of well wishes from employees, partners, and stakeholders since the announcement. The positive response is a testament to this amazing company and the wonderful people, brands, and fan communities around the world that make it so special. Hasbro is unique in our ability to create cherished childhood memories that translates into lifelong favorites. Our brands, fan toys that inspire wonder, to collectibles that showcase passion, board games that bring families together to gaming systems with thriving global fandoms, and animation that delights children to feature films and video games that engage audiences of all ages. As CEO, I'll be working with our team focused on three long-term priorities. First and foremost is driving growth with the brand Blueprint. At the heart of Hasbro is the brand blueprint. It enables us to expand the value of our brands and capabilities as we engage our fans across all aspects of play and entertainment, from consumer products to games to streaming TV shows, executing through our owned and operated assets and the best partners in the industry. We've seen significant success with this strategy, with brands as varied as Peppa Pig, Transformers, and most recently, My Little Pony. and I'm excited as we extend its benefits to more brands, from Play-Doh to Magic the Gathering to our upcoming blockbuster movie and AAA video games with Dungeons & Dragons. Our next focus area will be multi-generational fan engagement. Play isn't just for kids anymore. It's a lifelong pursuit. Gen Z's favorite brands are the ones they play with that surround them with engaging experiences, and millennials and Gen X aren't far off. We are creating omnimedia play and entertainment that spans age ranges, connects people together, and is passed along generation to generation. Lastly, new growth opportunities, specifically games and direct. At $2.1 billion and 19% year-over-year growth, Hasbro is one of the biggest and fastest-growing games publishers in the world. Our investments in digital and direct-to-consumer are give us an amazing opportunity to forge tighter relationships with our most valued customers, to learn from them in real time via cutting-edge data analytics, and to reinvent how we bring product to market and customize it for our most passionate fans. While the whole blueprint generates immense value for Hasbro, look for us to put particular focus on these fast-growing businesses as we take our portfolio to the next level. Underlying these priorities will be a laser focus on capital allocation, how we invest in the business, prioritize our brands, and drive total shareholder return, while paying down debt, maintaining an investment-grade rating, and returning cash to shareholders. We'll be sharing more insights about how we will drive our blueprint strategy, extend our fan engagement, and grow our gaming and direct-to-consumer assets in the quarters to come, underpinned by a strong sense of purpose and commitment to our planet and people. In the meantime, my focus will be squarely on partnering with Deb, Darren, Cynthia, and Eric on executing with excellence to deliver our growth plans, as well as meeting with the stakeholders who helped make Hasbro Hasbro. I want to end with a special thank you to Rich Stoddard. Rich came on board five months ago after the tragic loss of Brian Goldner, our beloved leader of nearly 15 years. Using uncommon care, a natural insight from his time serving on our board, and strong and steady leadership, he helped guide us to exceptional results. Rich, your insights and leadership will be amazing assets as the new chair of our board of directors, and I'm looking forward to working with and learning from you as we grow Hasbro in the years to come.

Thank you, Chris. The global Hasbro team finished the year strong. delivering full year results above our guidance, including 17% revenue growth, a 40 basis point improvement in adjusted operating profit margin, 23% growth to $1.3 billion in adjusted EBITDA, and over $800 million in operating cash flow. Deb and I are very proud of the Hasbro team and all they accomplished in the past several months. Throughout the year, and especially in the fourth quarter, we successfully navigated supply chain challenges across the business, delivering another record year for Wizards of the Coast, growing consumer products revenue for the year and fourth quarter, and achieving robust content deliveries above 2019 levels in our entertainment business. The brand blueprint strategy is driving profitable growth across our diversified portfolio, and Hasbro's unique set of strategic assets provide the foundation for maximizing the value of both our existing franchises and new IP. We have and are investing significant capital around the Blueprint, expanding and growing our powerful gaming portfolio, including in Magic the Gathering and Dungeons & Dragons, building deeper and more valuable brands, telling compelling stories to global audiences, and in developing our talented teams. Our commitment to disciplined strategic investments over the long term has built a differentiated business with diversified capabilities to drive profitable growth and enhance shareholder value. This is evident in our performance last year. First, gaming. With a portfolio of $2.1 billion that grew 19%, Hasbro's gaming portfolio is among the biggest, most profitable, and fastest growing combinations of gaming brands across face-to-face, tabletop, and digital platforms in the world. It's led by Magic the Gathering, and 2021 was Magic's best year ever. Over the past five years, we've invested close to $1 billion to drive 150% growth in high margin revenue and position us for growth in the coming years across tabletop and digital gaming. These investments are meaningfully expanding our tabletop products and creating best-in-class digital game capabilities while recruiting and retaining world-class talent. We are very excited to have Cynthia Williams joining us later this month from Microsoft as President of Wizards of the Coast in Digital Gaming to lead this team as Chris transitions to CEO of Hasbro. Chris orchestrated a tremendous period of growth and expansion for Wizards and has invested to position the business and team for continued success. The consistent growth of Magic is a testament to the long-term durability of our strategy, led by doubling down on collectability, expanding the Magic product suite to maximize relevance across consumer segments, and giving players exciting and compelling worlds to participate in. In digital, Magic the Gathering Arena's launch on mobile has been impressive, generating significant growth with continued high engagement from our players of around nine hours per week. The launch of mobile more than doubled our pre-launch monthly average users at its peak and has since settled into a sustained 50% increase in our average monthly active users as mobile has become a key way for our fans to access their favorite strategy game. We have only begun to unlock the value of the digital gaming potential of the Wizards brands and capabilities of the team. In 2021, Digital gaming revenue, including the high margin licensed digital gaming business grew 36% and represented 26% of the segment. Tabletop gaming revenue represents the largest piece of the segment at 74% of the total and grew 44% for the year. We have significant plans to leverage the power of Wizards brands across the blueprint for both current fans and to expand our reach to new players and fans. This begins with Magic the Gathering Netflix series coming later this year, and in 2023, the planned theatrical release of the Dungeons & Dragons feature film. Furthermore, these upcoming releases will harness the full potential of our brand blueprint, with a comprehensive sales and marketing plan across our organization including special edition tabletop and card set releases, digital games, a robust Hasbro toy line, and expansive licensed consumer products. Our many years of investment in these brands and in building assets to drive growth around the blueprint position us to leverage them in bigger and more powerful ways for years to come. Last year also marked the successful relaunch of another iconic Hasbro franchise brand. Led by the expertise of the E1 team, My Little Pony and New Generation drove the My Little Pony brand through the animated feature film that was number one in the Netflix Kids Top 10 in more than 80 countries on opening weekend, driving high viewership and audience engagement. The film fueled greater than 100% growth in toy and game point of sale in the fourth quarter versus last year and double digit growth in licensed consumer products for the year. With a significant multi-year content roadmap led by E1 and a deep and innovative merchandise program, we believe My Little Pony is positioned to reclaim its place as a leading global lifestyle brand through expansive blueprint activation. Peppa Pig and PJ Masks are further examples of valuable brands for which the combination of Hasbro and E1 is accelerating the growth and opportunity. In August, we launched the first Hasbro toys and games for these leading preschool brands. We had a very strong first few quarters in the market and have gained share in preschool toys. Peppa Pig was one of our top brand growers last year, and as we shifted licensed revenue to in-sourced revenue in toys and games, the team was still able to grow licensed consumer products revenues double digits, highlighting the powerful reach of Peppa Pig across categories. In recognition of the relevance and success of the brand, combined with the opportunity ahead, We have elevated Peppa Pig to a franchise brand and we'll begin reporting this with our first quarter earnings. It is a clear indication of the potential value of this brand we acquired with E1. As we think about powerful brands, our partner brand portfolio is activating some of the most valuable entertainment brands in the industry. We grew partner brand revenue 8% last year, with significant growth in Hasbro products for the Marvel portfolio, led by the Spider-Man franchise, including products in support of the feature film, Spider-Man No Way Home, and the animated new show, Spidey and His Amazing Friends. We also grew revenue for Hasbro's line of Star Wars products, despite a strong fourth quarter last year with Season 2 of The Mandalorian. We recently announced an extension of our Star Wars license and are excited to have added the Indiana Jones franchise with product in the market next year, supporting the theatrical release. Hasbro is proud to maintain a strong connection with the Walt Disney Company, the creator of some of the most celebrated and everlasting entertainment franchises, and looks forward to continuing its storied relationship with new product lines for Star Wars, Indiana Jones, and Marvel, including Marvel's Avengers and Marvel's Spider-Man in the future. In addition, we have exciting initiatives with new and expanding partners as diverse as Fortnite to Roblox, and we see a bright future for our partner brand portfolio with higher profit growth in the mid to long term. Finally, while I've highlighted several entertainment successes that are driving brands today and in the future, the entertainment segment had a very successful year, delivering revenues above 2019 levels when adjusted for the music business, which we divested during 2021. With amazing shows like Yellow Jackets, Cruel Summer, Gray Mail, and The Rookie, and the return of film deliveries, including Clifford the Big Red Dog and Finch, the E1 team delivered compelling content across platforms. Importantly, E1 has been focused on developing a strong pipeline of content for Hasbro brands, and we've seen an incredible response from the market. In 2021, we started to see that pipeline converted into greenlights production and releases to be activated across the brand blueprint. In closing, it has been a true honor to work with the Hasbro team as interim CEO over these past several months. The entire Hasbro family has my deep gratitude for their tremendous focus on delivering at a high level. I especially want to thank Deb Thomas, for her strong and steady leadership during such an important time. This year's results position Hasbro for continued growth and to continue driving shareholder value. With consumers, brands, and storytelling at the center and purpose at our core, we have made and are making significant investments across the business and in our people to drive capabilities, insights, and innovation to support our long-term growth. I am excited to see Chris and Eric take on their new roles later this month and confident that Hasbro will thrive under their leadership. I'll now turn the call over to Deb. Deb?