Hasbro 2015 Annual Report Download - page 3

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Demand forHasbroinitiatives wasstrongglobally
last year.Revenuesinthe U.S. &Canadasegment
grew 10%, theInternationalSegment increased 16%
absent foreignexchange (versusa3%decline including
theimpactofcurrency)and theEntertainmentand
LicensingSegment wasup11%.
Ourinvestments in emergingmarkets continued
to buildour brandsinthese strategically important
countries. In 2015 emerging marketrevenuesgrew
15%absent foreignexchange (versusa9%decline
includingthe impact of currency). Severalofthese
countriesexperienced significant currency devaluation
and economic challenges,but demand forour brands
remained strong.Wecontinued to gain shareand
have positioned Hasbro forlong-termsuccess.We
recently opened newoces in Dubai,South Africaand
Thailand and we continuedtobuild scale andexpand
ourpresenceinhighprioritymarkets includingBrazil,
Russiaand China.
Thebenefits of ourstrategyare notonlydelivering
revenuegains,but also driving higher levels of
profitability.Operating profitmargins increased to
15.6%ofrevenuesand Earningsper Sharereached
$3.57per dilutedshare. As aresultofthe economic
benefits of ourstrategyand ourfocus on improving
operationaleciency,webelieve thesemargins are
sustainable in thenearterm. We areconfident that our
strategy will allowustosuccessfully grow operating
profitmarginsinthe years to come.
In addition,wegenerated $552millioninoperating
cash flow, endingthe year with closeto$1billionincash
on ourbalancesheet. In recognitionofthe strength of
theyearand ourpositiveoutlook,inFebruary 2016, our
Boardraisedthe quarterly dividend 11% to $0.51per
share. This higher dividend reinforces ourcommitment
to enhancing shareholdervalue overthe long term.
We remain committedtoour capitalpriorities.
First, we areinvestingtoprofitably grow Hasbro
overthe long term.Second, we arereturning excess
cash to shareholdersthrough ourdividend andshare
repurchase program.Intotal,in2015, we returned
$311 milliontoshareholdersbringingthe tenyeartotal
from ourdividend andshare repurchase programs to
$4.8billion.Finally,our capitalprioritiesreinforce our
commitmenttomaintainour investmentgrade status.
IT ALLBEGINSWITHOUR BRANDBLUEPRINT
Hasbro’s Brand Blueprintinforms and directs our
brand eorts throughthe insightsweuncover, the
innovation we developand theinvestments we are
making. Through itsexecution, we have theframework
to developmulti-year plansthatleveragebrandsto
theirfullpotential.These capabilities arelargely in
place, butwewill continue to selectivelyinvest to
maintainour leadingposition. We view theblueprint not
as adestination,but as apointofdeparture from which
we arebuilding ourbrandsand dierentiating Hasbro
from thecompetition.
Thestrategyworks.52% of ourrevenuecame
from ourseven FranchiseBrandslastyear. Theseare
2LETTERFROMTHE CHAIRMAN
Strategic Retail Partnerships
Digital
Media
Consumer
Products
Toy&Game Product
Innovation
ImmersiveEntertainment
Experiences
E
t
HASBRO
H
A
S
B
R
O
BRANDS
Consumer Insights
Storytelling
Global
Markets
•Developed
•Developin
g
•Emerging
OurBrand Blueprint
We view theblueprintnot
as adestination, butasa
pointofdeparture from
which we arebuildingour
brandsand dierentiating
Hasbro from the
competition.