● | Accelerates Hasbro’s Brand Blueprint strategy by adding eOne’s family brands, exceptional, proven TV and film expertise and veteran executive leadership |
● | Adds beloved global preschool brands, Peppa Pig and PJ Masks, as well as a slate of additional brands in development, including newly introduced Ricky Zoom, to Hasbro’s robust brand portfolio |
● | Dramatically enhances storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro’s brands |
● | Improves Hasbro’s growth outlook and enhances long-term profitability through in-sourcing and cost synergies as well as future revenue growth opportunities |
Hasbro entertainment One Adds beloved global preschool brands to Hasbro’s robust brand portfolio Peppa Pig PJMASKS Ricky Zoom, Cupcake & DINO Ben & Holly’s Little Kingdom Enhances Hasbro’s storytelling capabilities in TV, film and other mediums MAKEREADYâ audio network an entertainment One company A ROUND ROOM Last Gang SECRET LOCATION an entertainment One company DUALTONE an entertainment One company SIERRA/AFFINITY IMPROVES HASBRO’S GROWTH OUTLOOK AND ENHANCES LONG-TERM PROFITABILITY ~130M of in-sourcing and cost synergies Accretive to adjusted EPS* in Year 1 and increasing in Year 2 HASBRO BRANDS + TV Film Expanded Capabilities Live Action Animation + Seasoned Entertainment Executives Incremental Revenue & Profit Opportunity eOne OVERVIEW: BRINGING THE BEST CONTENT TO THE WORLD FAMILY & BRANDS Inspiring smiles with the world’s most beloved characters TELEVISION Creating world-class content with international appeal FILM One of the largest independent film companies with global reach & local expertise MUSIC A disruptive, tech-enabled global music platform INNOVATION Stunning audiences through next-generation storytelling 2019 RESULTS (as reported by eOne in accordance with IFRS) ₤941.2M Revenue 5% 3-year CAGR ₤197.6M EBITDA 15% 3-year CAGR REVENUE BY DIVISION 17% ₤941.2M 83% UNDERLYING EBITDA BY DIVISION 46% ₤212.2M 54% FAMILY & BRANDS TV & FILM DEAL FACTS ₤3.3B or $4.0B ₤5.60 per share; a 31% premium to eOne’s 30-day VWAP as of 8/22/19 Expected close 4th quarter of 2019 Certain statements contained in this fact sheet contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company’s actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties, which may be detailed from time to time in the Company’s public announcements and SEC filings. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this fact sheet or to update them to reflect events or circumstances occurring after the date of this infographic. *Adjusted EPS execludes one-time transaction costs and purchased intangible amortization.
● | The acquisition of highly profitable and merchandisable preschool brands is a strategic growth opportunity for Hasbro in the Infant and Preschool category, the largest super-category in the toy and game industry in the G11 markets, according to the NPD Group |
● | Peppa Pig is an evergreen property that has thrived for over a decade and extended itself to new profit streams that continue its success | |
● | PJ Masks growth outlook is supported by new formats, its current rollout in China, the launch of new seasons in multiple regions, a live touring event and new toy lines | |
● | A slate of additional brands is under development, including Ricky Zoom, a unique storyline with highly merchandisable content airing on Nickelodeon in the US and other top-tier global networks beginning Sept. 9, 2019 |
● | By developing, owning and strategically distributing content, the acquisition positions Hasbro to capture more franchise economics created and perpetuated by differentiated platforms | |
● | eOne brings profitable, growing capabilities in scripted and unscripted TV development and production for global audiences | |
● | Live action and animation present multiple avenues to bring Hasbro’s franchises to life as OTT platforms and networks are increasingly interested in new, unexploited intellectual property while studios reclaim content for proprietary platforms | |
● | In film, eOne has been transforming its business to focus on high-quality premium talent-driven content, including titles like Clifford the Big Red Dog and Monster Problems | |
● | eOne’s Canadian TV and film operations will continue as a distinct Canadian-controlled business within the combined business |
● | Top eOne executives have agreed to join the Hasbro team | |
● | eOne’s seasoned entertainment executives with deep talent relationships and creative drive will further strengthen Hasbro’s talented team | |
● | Global organization, with presence in London, Los Angeles, Toronto, New York, Hong Kong, Melbourne and Shanghai | |
● | eOne’s Canadian presence is an important base for creative talent and best-in-class studio capabilities, significantly expanding Hasbro’s Canadian presence and positioning eOne for ongoing success in Canada, including in relation to its robust pipeline of television and film projects |
● | The transaction is structured to ensure that eOne’s Canadian operations will continue to meet applicable Canadian control regulatory requirements in relation to television and film production companies, to the continued benefit of the Canadian television and film production industry |
● | Hasbro expects to realize in-sourcing and other global annual run rate synergies of approximately US$130 million by 2022, driven by integration benefits, substantial savings from moving a significant portion of eOne’s toy business in-house and enhancing the profitability of eOne’s licensing and merchandising activities | |
● | The addition of eOne to Hasbro is expected to be accretive to adjusted EPS in the first year following the transaction, adjusted to exclude one-time transaction costs and purchased intangible amortization, with mid- to high-teens accretion to adjusted EPS in the third full year following the closing of the transaction as synergies are achieved (1) | |
● | Meaningful potential for additional revenue growth and expanded franchise economics with brand-driven animation and live action TV and film entertainment | |
(1) | Hasbro cannot, without unreasonable effort, forecast certain items required to develop a meaningful comparable GAAP financial measure to adjusted EPS. See “Use of non-GAAP financial measures” below for further discussion |