Hasbro 2014 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2014 Hasbro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 127

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

enabled this performance and our ongoing focus
toward lowering costs and maximizing profitability is
delivering results.
We ended the year in a strong financial position,
generating $454 million in operating cash flow
during the year and with $893 million of cash on
the balance sheet. After investing back into our
business, which remains our top priority, our financial
strength enabled us to return $678 million to you,
our shareholders, through our dividend and share
repurchase program. In early 2015, based on the
strength of our business the Board increased the
quarterly dividend 7% to $0.46 per share, and
authorized an additional $500 million for share
repurchases. Through our commitment to returning
excess cash to shareholders, we have returned
143% of net earnings through dividends and share
repurchases over the past five years.
As we have outlined for you in previous years,
everything we do at Hasbro begins with our Brand
Blueprint. Our execution of the blueprint drove these
strong 2014 results and provides the framework for
our actions going forward. The blueprint informs and
guides our investments, our decision-making and
our behaviors. Consumer insights and storytelling
surround our brands and sit at the center of our
Brand Blueprint. It serves not only as a strategic
roadmap, but is also a key element that dierentiates
Hasbro in a competitive global marketplace.
Our Brands Are the Organizing Principle
Today, brands are serving as the organizing
principle for consumers around the world. To
maximize the long-term returns for Hasbro
shareholders, we focus on driving the development
of bigger, more global brands, which hold the
greatest revenue and profit potential. These are our
Franchise Brands: LITTLEST PET SHOP, MAGIC: THE
GATHERING, MONOPOLY, MY LITTLE PONY, NERF,
PLAY-DOH and TRANSFORMERS. Six of these seven
brands grew in 2014. LITTLEST PET SHOP, the one
brand which did not grow, was relaunched in the
second half of the year and is o to a good start in
many markets.
As a result of our increased investment in and
focus on these brands, Franchise Brand revenues
grew 31% and
represented 55% of
total 2014 Hasbro
revenues. This growth
was driven by story-
led brands including
MY LITTLE PONY
and TRANSFORMERS, but also from innovation
based firmly in our global consumer insights for
brands including NERF and PLAY-DOH. Several
Franchise Brands posted their highest-ever annual
revenues—MAGIC: THE GATHERING, MY LITTLE
PONY, NERF and PLAY-DOH. The theatrical release
of TRANSFORMERS: AGE OF EXTINCTION, 2014’s
highest-grossing film at the global box oce, drove
strong growth in TRANSFORMERS revenues for the
year.
Given their global potential, our Franchise Brands
remain a top priority for our teams. We are also
cultivating many additional and potentially significant
Hasbro brands, including PLAYSKOOL, FURREAL
FRIENDS, BABY ALIVE and many of our games
brands. At the same time, we are developing new
brands and innovations within our portfolio.
In addition to our eorts to build Hasbro’s own
brands, select premium partner brands complete our
portfolio across consumer groups and geographies.
In 2014, great storytelling and content, supported by
ANNUAL REPORT