Hasbro 2015 Annual Report Download - page 4

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ourhighest priority brands:LITTLESTPET SHOP,
MAGIC: THEGATHERING,MONOPOLY, MY LITTLE
PONY, NERF,PLAY-DOHand TRANSFORMERS. These
brands arealso thefurthestdeveloped in executingthe
Brand Blueprint.
In total for2015, Franchise Brands’ revenuegrew7%
absent foreignexchange,growing despiteasignificant
decline in TRANSFORMERS followingthe 2014 movie
year.NERFwas ourlargest brandacrossthe Company,
posting13% revenuegrowthfor theyear(22%absent
foreignexchange). PLAY-DOH had another record
year withrevenue growth of 32%(47%absent foreign
exchange).
MAGIC: THEGATHERING delivered itsseventh
consecutiveyearofrevenue growth.Combined with
growth in MONOPOLY, and ourtop sellingnew game
PIEFACE, Hasbro’s Gamescategoryrevenuesgrew,
increasing 8% absent foreignexchange.Accordingto
NPD, in 2015,Hasbrohad nine of thetop tenselling
gamesinthe U.S.
Theinvestments we made overthe past several
yearshave successfully repositioned ourgamingeorts
withhow consumerswanttoplaytoday.Gaming
capitalizesonthe multi-generationalappeal of our
brandsand in 2015 we sawfamilies and gamers of all
ages coming back to gaming.
EXPANDINGOUR SHAREOFLIFE
From awardwinning,innovative toys &games,
to abroadeningarray of consumer products,to
digitalgamingacrossall majorplatforms,toawide
rangeofentertainment experiences, Hasbro’s brands
areconnecting with more consumers, across more
demographics, moredeeply andinmorewaysthan
ever before.
We accomplish this by broadening theaudience
forour brands.For example,in2015weintroduced
an entirely newinnovativesegmentfor olderNERF
consumers, called NERF RIVALand expanded MY
LITTLE PONY to thepreschoolsegment with MY
LITTLE PONY FRIENDSbyPLAYSKOOL.
We arealso eectively expandingdemographics
throughbrand activation beyond toys andgames. This
includescomprehensiveconsumer products across
apparel, accessories, hardgoods,consumables,and
publishing;todigital gaming and awiderange of
entertainmentexperiences,frommoviesand TV shows,
to digitalshorts,themeparkrides,and live events.
We’vesignificantly increased the“ShareofLife” that
ourbrandsoccupyinour consumers’ lives. We planto
continue to increasethisbydeliveringproducts,content,
experiencesand digitalinteractionsthatactivelyengage
ourfanswith ourbrands, and oerthem more ways to
enjoyour brands throughout theirday.
EXPANDINGBEYONDTOYS&GAMES
Ourfocus on thestrategic executionofour Brand
Blueprinttoexpand the“ShareofLife” drovethe fifth
straight year of revenuegrowthinthe Entertainment
and Licensingsegment. Over thepastfive years,
revenuesinthe segmenthave grownata12%
compoundannual growth rate.Overthe same time
period,the segmenthas grownfrom4%ofrevenues to
6% at an averageoperatingprofit margin of 28%.
We continue to hone ourskillstoexecute against
this opportunity. We areinvestinginthese teams,
geographically andincross-categorydisciplines.
Hasbro’s consumer productspresenceoutside thetoy
and game aisleisgrowing and nowrepresentsmore
than $2 billionatretail.
Last year Ioutlined foryou the2010relaunchofMY
LITTLE PONY throughtelevisionprogrammingand how
we aresuccessfully buildingthisbrand by executing
around theBrand Blueprint. In 2015,MYLITTLE PONY
wasour toplicensedbrand.Through thedevelopment
of characters andstories,MYLITTLE PONYis
integrated into ourfans’ everyday lives. It is bedroom
décor, comicbooks,atelevisionprogram and alive
3LETTER FROM THECHAIRMAN