Hasbro 2009 Annual Report Download - page 4

ASSEMBLING THE TOOLS
2009 was an extremely important year in the evolution of Hasbro as we continue our transformation into
a branded play company. During the year, we further assembled the tools we need to be successful in
the execution of our strategy over the long term:
• First and foremost, we delivered and remain committed to delivering innovative, compelling,
branded products at appropriate price points, coupled with strong marketing programs;
• We extended key strategic licenses with our partners Lucasfi lm and Marvel - who continue to
be important contributors to our business;
• We announced a 10-year global strategic alliance with Sesame Workshop – an extremely
valuable new partner. We believe there is opportunity to grow our businesses together and
in 2011 we will bring to market a broad range of products, featuring Elmo, Big Bird, Abby
Cadabby and Cookie Monster, among others, to entertain and educate young children;
• We further expanded Hasbro’s presence in emerging markets through share gains in key
markets, such as Brazil and China; growing our existing businesses in emerging Asian, Latin
American and Eastern European countries; and establishing new o ces in important
geographies, including Russia and Romania. As a result, we grew revenues in our emerging
markets in the Asia Pacifi c region, Latin America and Europe where key brands, such as
TRANSFORMERS, NERF, LITTLEST PET SHOP and PLAY-DOH, as well as games, contributed
to our increased net revenues. Despite growth in our emerging markets, there was a continued
lower level of consumer spending and poor market conditions in countries such as the UK,
Spain and Mexico in 2009.
• We also made key strides in entertainment, including movies, TV and online. We formed a
joint venture with Discovery Communications to establish a new children’s television
network, being re-branded as THE HUB; we formed Hasbro Studios to develop compelling
television programming based on our brands; and we expanded our roster of studio partners
and movies under development based on Hasbro brands.
CORE BRAND GROWTH
For the full year, we grew key brands, including TRANSFORMERS, G.I. JOE, NERF, LITTLEST PET SHOP,
PLAY-DOH, TONKA, and MAGIC: THE GATHERING and we gained market share in our major markets.
Specifi cally, the total brand performance of TRANSFORMERS, G.I. JOE and NERF delivered double-digit
growth in 2009 across multiple product categories. TRANSFORMERS had a record year, posting $592
million in revenues, a 23% increase from our last movie year in 2007. G.I. JOE recorded revenue in excess
of $125 million; and NERF continued its growth, increasing 25% – driven by continued growth in the
U.S. and the expansion of the brand internationally. PLAY-DOH and TONKA also turned in double-digit
growth, both growing approximately 25% in 2009.
Hasbro’s FAMILY GAME NIGHT campaign was embraced by our retailers and consumers around the
world and drove an outstanding fourth quarter in games and puzzles. For the full year, total games and
puzzles increased slightly, overcoming the revenue decline in the category reported through the fi rst
nine months of the year.
In addition to the FAMILY GAME NIGHT campaign, we grew our games business by re-imagining brands
like CONNECT 4, OPERATION, and BOP IT and through the creation of our new card game product line.