Hasbro 2012 Annual Report Download - page 2

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2012 In Review
In 2012, we made significant strides toward accomplishing
many objectives we set and communicated for Hasbro.
We grew 2012 EPS to $2.81 versus $2.74 per share
in 2011, including a ten cent negative impact of
foreign exchange. This excludes restructuring
charges in both years and a tax benefit in 2011.*
We returned the U.S. & Canada segment to
historical operating profit margins, despite
recording lower revenues in the year. In turn,
overall operating profit margin for Hasbro
increased to 14.7% excluding charges.*
We leveraged our international investments,
growing our emerging markets’ revenues by 16%.
These are markets in which we have significantly
invested over the past several years. Importantly,
we delivered better than break even profit for all
major emerging markets, outside of China, one
year ahead of plan.
We grew the Games category against an
objective of stabilization and improved operating
profit margins in the category.
We grew revenue in our Girls category, driven by
innovation and immersive experiences across the
FURBY and MY LITTLE PONY brands.
Although we did not originally state this goal,
we grew Entertainment and Licensing segment
revenues and operating profit in a year following
a major TRANSFORMERS motion picture.
Our full-year 2012 net revenues were $4.09 billion and included
a $98.5 million negative impact from foreign exchange and
a more than $100 million reduction in retail inventories.
During the year, we faced challenging economic conditions
in developed economies and a dicult comparison with 2011,
when we had recorded nearly $1 billion in revenues from the
TRANSFORMERS and BEYBLADE brands.
Over the past several years, we have shared
with you our vision and our plan to develop
Hasbro into a global, branded-play company.
Together, we are building an industry-
leading organization with global reach and
multi-faceted competencies. This begins
with our unmatched portfolio of Hasbro and
partner brands and reaches across consumer
experiences, including innovative and fun toys,
games, digital engagement, lifestyle licensing
and entertainment experiences.
We are still in the early stages of unlocking
the full potential of our brands, but our
brand blueprint strategy is working. Our
infrastructure to execute this strategy is in
place and everyone at Hasbro is focused on
brand building that resonates globally with
consumers and retailers.
We have streamlined our organization
and identified the highest-potential, global
opportunities for our teams. Today, we are in
a strong financial and competitive position
to achieve this potential. Through the global
execution of our branded-play strategy,
the Hasbro team is working to deliver long-
term, profitable growth and enhanced total
shareholder return.
To Our Fellow
Shareholders