Hasbro Reports Revenue, Operating Profit and Net Earnings Growth for Second Quarter 2016

• Second quarter 2016 revenues grew 10% to $878.9 million; Absent a
  negative $17.7 million impact of foreign exchange, second quarter 2016
  revenues grew 12%;
• Second quarter 2016 revenues grew 11% in the U.S. and Canada
  segment and 11% in the International segment; Absent the negative
  $17.0 million impact of foreign exchange, International segment
  revenues increased 15%; The Entertainment and Licensing segment
  increased 9%;
• Growth in all categories: Boys, Games, Girls and Preschool;
  Franchise Brand revenues up 3%; NERF and PLAY-DOH revenues posted
  double-digit growth; Partner Brand revenues grew 15% primarily driven
  by STAR WARS, DISNEY PRINCESS and DISNEY’S FROZEN;
• Operating profit increased 12% and net earnings increased 25% to
  $52.1 million or $0.41 per diluted share;
• Company returned $85.8 million to shareholders in the quarter;
  $63.9 million in dividends and $21.9 million in share repurchases.

PAWTUCKET, R.I.–(BUSINESS WIRE)–#HAS—Hasbro,
Inc. (NASDAQ: HAS) today reported financial results for the
second quarter 2016. Net revenues for the second quarter 2016 increased
10% to $878.9 million versus $797.7 million in 2015. Excluding a
negative $17.7 million impact from foreign exchange, second quarter
revenues increased 12%.

Net earnings for the second quarter 2016 increased 25% to $52.1 million,
or $0.41 per diluted share, compared to $41.8 million, or $0.33 per
diluted share, in 2015.

“Hasbro’s focus on building brands, telling great stories, and creating
the best play experiences in toys, games, digital gaming and consumer
products is driving strong consumer and retailer demand for our brands
globally,” said Brian Goldner, Hasbro’s Chairman, President and Chief
Executive Officer. “The excellent execution of our team continues to
deliver revenue and earnings growth, while we are investing in elevating
our talent and capabilities around our Brand Blueprint. Our initiatives
for the second half of the year feature innovative offerings for Hasbro
Franchise Brands and Partner Brands, including newly announced products
such as FURBY CONNECT and SPEAK OUT, and support for upcoming major
feature films, Lucasfilm’s Rogue One: A Star Wars Story and
DreamWorks’ Trolls.”

“After a strong start to 2016, the team delivered another high quality
quarter with revenue, operating profit and earnings growth,” said
Deborah Thomas, Hasbro’s Chief Financial Officer. “We remain very
focused on strategically investing to drive long-term growth and the
execution of our strategy, while improving efficiencies and
profitability over time. Our balance sheet is strong, including high
quality inventory to meet our expectations for the year, and $924
million in cash. We have the financial strength to invest in growing
Hasbro for the long-term while continuing our long-standing commitment
of returning cash to shareholders.”

Second quarter 2016 U.S. and Canada segment net revenues increased 11%
to $425.9 million compared to $385.2 million in 2015. Growth in the
Boys, Girls and Games categories more than offset a decline in the
Preschool category. The U.S. and Canada segment reported operating
profit growth of 23% to $58.0 million, or 13.6% of net revenues,
compared to $47.1 million, or 12.2% of net revenues, in 2015.

International segment net revenues increased 11% to $401.1 million
compared to $362.8 million in 2015. Revenue growth in the Boys, Girls
and Preschool categories more than offset a decline in the Games
category. On a regional basis, Europe grew 23%, Latin America declined
1%, and Asia Pacific was down 4%. Emerging markets revenues increased 5%
in the quarter. Excluding an unfavorable $17.0 million impact of foreign
exchange (FX), net revenues in the International segment grew 15%,
increasing 24% in Europe ($2.1 million negative FX impact), 11% in Latin
America ($12.2 million negative FX impact) and was essentially flat in
Asia Pacific ($2.7 million negative FX impact). Emerging markets
increased approximately 13% absent the impact of foreign exchange. As
reported, International segment operating profit of $29.7 million was up
17%, or 7.4% of net revenues, compared to $25.4 million, or 7.0% of net
revenues, in 2015.

Entertainment and Licensing segment net revenues increased 9% to $51.9
million compared to $47.6 million in 2015, driven by growth in Consumer
Products and Digital Gaming. The Entertainment and Licensing segment
operating profit increased 86% to $13.8 million, or 26.6% of net
revenues, compared to $7.4 million, or 15.6% of net revenues, in 2015.

Second quarter 2016 Boys category revenues increased 4% to $355.1
million. Revenue growth in the quarter was driven by gains in Franchise
Brand NERF, along with Partner Brand STAR WARS as well as the addition
of YOKAI WATCH.

Games category revenues for the quarter increased 8% to $227.7 million.
PIE FACE, DUEL MASTERS, YAHTZEE, SIMON and BOP-IT were among the brands
contributing to growth in the quarter.

Girls category revenues increased 35% to $172.3 million. Hasbro’s line
of DISNEY PRINCESS and DISNEY’S FROZEN fashion and small dolls along
with revenue growth in BABY ALIVE led the increase in the quarter.

Preschool category revenues increased 5% to $123.9 million for the
second quarter 2016. Revenue growth in Franchise Brand PLAY-DOH drove
the revenue increase for the quarter.

Dividend and Share Repurchase

The Company paid $63.9 million in cash dividends to shareholders during
the second quarter 2016. The next quarterly cash dividend payment of
$0.51 per common share is scheduled for August 15, 2016 to shareholders
of record at the close of business on August 1, 2016.

During the second quarter, Hasbro repurchased 270,611 shares of common
stock at a total cost of $21.9 million and an average price of $81.00
per share. Through the first two quarters, the Company repurchased
745,611 shares of common stock at a total cost of $57.8 million and an
average price of $77.44 per share. At quarter-end, $421.5 million
remained available in the current share repurchase authorization.

Conference Call Webcast

Hasbro will webcast its second quarter 2016 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.

Hasbro (NASDAQ:
HAS) is a global company committed to Creating the World’s Best Play
Experiences by leveraging its beloved brands, including LITTLEST PET
SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and
TRANSFORMERS, and premier partner brands. From toys and games,
television programming, motion pictures, digital gaming and consumer
product licensing, Hasbro fulfills the fundamental need for play and
connection with children and families around the world. The Company’s
Hasbro Studios and its film label, Allspark Pictures, create
entertainment brand-driven storytelling across mediums, including
television, film, digital and more. Through the Company’s commitment to
corporate social responsibility, including philanthropy, Hasbro is
helping to build a safe and sustainable world and to positively impact
the lives of millions of children and families. Learn more at www.hasbro.com,
and follow us on Twitter (@Hasbro & @HasbroNews)
and Instagram (@Hasbro).
© 2016 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, including with respect to
anticipated future benefits from investments in the Company’s business
and strategic efforts to grow the Company’s brand portfolio and content
delivery over the longer-term, 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.

The press release also includes the Company’s Consolidated and
International segment net revenues excluding the impact of changes in
exchange rates. Management believes that the presentation excluding the
impact of exchange rate changes provides information that is helpful to
an investor’s understanding of the underlying business performance
absent exchange rate fluctuations which are beyond the Company’s
control. These 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 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

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