The directors present the strategic report for the year ended 29 December 2024.

Hasbro Consumer Products Licensing Limited (the 'Company') operates to enter into license agreements with third parties to allow such third parties to use brands owned and controlled by the Hasbro Inc Group (the 'Group') in connection with the development, manufacturing, publishing, marketing, distribution, advertising, promotion and sale of consumer goods, services, events, entertainments, and experiences. The Company benefits from the rights to use Hasbro Group owned and controlled licensed Intangibles for this purpose.

The profit for the 52-week period, after taxation, amounted to $56,635,049 (2023: $35,201,454). The principal objective of the business is to deliver sustainable levels of growth in the value of the underlying licensing arrangements. In the reporting period, the business generated turnover of $324.9m (2023: $202.7m), costs of sales of $177.8m (2023: $119.2m), administrative expenses of $107.8m (2023: $47.9m) and other operating income of $3.3m (2023: $1.4m). The gross margin for the period was 45.3% (2023: 41.2%).

On September 1 2023, the Company acquired its Family Brands Animation and Consumer Products business from its subsidiary, Entertainment One UK Limited as part of the steps required for the sale of Entertainment One UK Limited by Hasbro Inc. The family brands team develops, produces and distributes animation content for children’s properties on a worldwide basis. The principal brands include PJ Masks and Peppa Pig whose content entertains children and families and generates revenue through licensing and merchandising programs across multiple retail categories. With this acquisition, the Company acquired certain brands and the animated content will expand the ability to execute the principal activities of the Company. The activity is reflected at a higher level in 2024 as it represents a full 12 months of operation, compared to only four months in the prior year, resulting in a year‑on‑year increase.

The directors of the Company have considered the principal risks and uncertainties affecting the Company as at 29 December 2024 and up to the date of this report. The Company is a global licensing entity, and its principal risks and uncertainties are inflationary environment, retail inventories impacting merchandising categories, interest rates and finance markets impacting roll-out of location-based entertainment facilities, as well as awareness and affinity of its key brands. These risks are mitigated by the large brand portfolio of Hasbro properties and new properties in development, continuing investment in Hasbro's brands and the reputation and relationships of Hasbro sales and marketing teams.

Other risks that Company is exposed to, include credit risk which is mitigated by exposure to a large number of licensees, who are continuously monitored, and liquidity risk which is mitigated by the Company being part of Hasbro Inc.

Further, the Company also benefits from Hasbro's global portfolio strategy and risk mitigation at a Group level.

The Company's key performance indicators are as follows:

Section 172 of the Companies Act 2006 requires a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

a) the likely consequences of any decision in the long term;

The Board are aware that their decisions and strategies can have long-term effects on the success of the Company’s business and on its stakeholders. They aim to make well-informed decisions whilst being mindful of impacts on its stakeholders.

b) the interests of the Company's employees;

Our key human capital management objectives are to attract, develop and retain a talented diverse and inclusive workforce. The experience, dedication and diverse backgrounds of our employees are at the heart of our success, energising everything we do, from developing innovative products to creating immersive entertainment experiences. Working together, we seek to create a culture of Community, Creativity, Inclusion, Integrity, and Passion in which everyone feels valued and empowered to deliver their best every day. As our organisation continues to grow and evolve, we remain steadfast in our ambition to provide a supportive and inclusive community that is the best place our employees ever work. We recognise and reward our employees with a total rewards package that includes competitive base pay, equity compensation (for certain levels), annual incentives, product discounts and other comprehensive benefits, including wellness programs that help people integrate work and life commitments. We regularly review salary ratios for men and women in similar roles to help maintain internal equity and market competitiveness across the globe, including among managers.

c) the need to foster the Company's business relationships with suppliers, customers and others;

We maintain strong relationships with suppliers, customers and others through open, transparent, and responsive dialogue. The Company prides itself on delivering exceptional service and high-quality licensed intangibles.

d) the impact of the Company's operations on the community and the environment;

Full time eligible employees receive four hours paid time off every month to volunteer with organisations in the

community.

Global Day of Joy is a good example of how we spread joy and make a difference in the lives of those who need it most. the program is held in December every year supporting vulnerable children, families and senior citizens in the festival season.

In compliance with the objective of reducing use of paper & printing cartridges and also to cut burden on environment, the Company put in place the paperless office system. The use of paper is eliminated or greatly reduced. This is done by converting the document and other papers into digital form.

From July 2023, the Company takes part in the Cycle to Work Scheme. The Cycle to Work Scheme is part of a government initiative that encourages people to commute by bicycle, enabling us to make healthier choices and help reduce the UK’s carbon footprint.

e) the desirability of the Company maintaining a reputation for high standards of business conduct;

The Company is committed to maintain strong reputation for high standard of business conduct.

f) the need to act fairly as between members of the Company;

The directors consider carefully the need to act fairly.

On behalf of the board

The directors present their annual report and financial statements for the 52 week period ended 29 December 2024.

The results for the 52 week period are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

There have been no material events occurring after the reporting date that require disclosure in these financial statements.

The directors anticipate the Company will continue to trade and have no plans for significant developments in the near future.

The Company's greenhouse gas emissions and energy consumption for the year are as follows:

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

The prior‑year emissions figures have been restated to correct an error identified during the year. Comparative information has been presented as restated.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee and turnover, the recommended ratio for the sector.

1. Data in table above includes Hasbro Stockley Park (London), Hasbro Capper Street (London), and Hasbro/Entertainment Warren Street (London) facilities.

2. Hasbro/Entertainment Warren Street was formerly associated with Entertainment One (eOne), a subsidiary of Hasbro that was sold to Lionsgate at the end of 2023. Following the divestiture, this facility was closed.

3. Calendar Year 2024 Turnover for the two sites in Note 1 was equal to $325m.

4. The only Scope 1 fuel combustion of these 2 sites in 2024 was natural gas. No other on-site stationary fuels were combusted in 2023.

5. Renewable Energy Certificates (renewable energy mix in the United Kingdom) were purchased to account for 100% of Calendar Year 2024 Scope 2 emissions from our owned and operated facilities.

6. Total Energy consumption (kWh) - Direct Energy (Scope 1) includes kWh equivalent of Scope 1 fuels (e.g., natural gas, diesel fuel in company-owned cars).

7. Total Energy consumption (kWh) - Indirect Energy (Scope 2) includes kWh equivalent of Scope 2 purchased electricity.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The Company is party to an inter-company arrangement and also has external suppliers. Intercompany relationships are monitored at the Group level. Regular meetings are held with external customers, with discussions focused on performance reviews and business updates.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Hasbro Consumer Products Licensing Limited (the 'company') for the year ended 29 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 29 December 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

Hasbro Consumer Products Licensing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 The Square, Stockley Park, Uxbridge, Middlesex, UB11 1ET.

The financial statements of the company are prepared up to the last Sunday of the calendar year. These financial statements therefore cover a 52 week period with the comparative period being 53 weeks.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in US Dollars, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest $.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Hasbro, Inc. These consolidated financial statements are available from its registered office, 200 Narragansett Park Drive, P.O. Box 200, Pawtucket R.I. 02862-0200, U.S.A.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents sales to external customers in accordance with licensing agreements and is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from the licensing agreements is recognized in accordance with the substance of the contractual agreements.  The Company’s license agreements are structured as a right-to-access the related intellectual property or the right-to-use the intellectual property.

Right-to-access contracts provide access to the Company’s brands over the term of the license.  These agreements allow the licensee to manufacture consumer products such as apparel or home goods and create venues such as theme parks.   The licensees pay the Company a royalty for the use of the licensed brands, in some cases subject to minimum guaranteed amounts or fixed fees. When the arrangement includes a minimum guarantee, the Company records the minimum guarantee on a ratable basis over the term of the license period and does not record the sales-based or usage-based royalty until they exceed the minimum guarantee. When arrangements do not include a minimum guarantee, the Company records royalties in line with the licensee’s reported usage based upon contractual royalty rates.

Right-to-use contracts provide a deliverable to the licensee that has stand-alone functionality without additional obligations of the Company.  This type of agreement is generally within the Company’s Family Brands business, where the company will license produced branded content such as a season of Peppa Pig television or streaming programming to third parties.   The licensee will typically pay a fixed fee for the license of the produced content.  The Company records turnover once the license period has commenced and the licensee may use the delivered content.

Intellectual property rights are third party costs incurred in creating and enhancing the programming assets in the licensing and merchandising business and are capitalised at their cost if such amounts are considered recoverable against future revenues. The costs are amortised on a revenue forecast basis over a period not exceeding 10 years from the date of the initial release.

The carrying amounts of intangibles are reviewed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company reviews residual values and useful lives on an annual basis and any adjustments are made prospectively.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Debtors

Short-term and long-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Accrued income represents turnover earned by the Company for which it has the right to receive payment as at the reporting date but has not yet issued an invoice.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Interest income

Interest income is recognised in profit or loss using the effective interest method.

The preparation of these financial statements requires the Company to make estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from those estimates.

Estimates and judgements are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects that period only, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below.

The Company capitalises investment in acquired content rights and then amortises these balances on a revenue forecast basis, recording the amortisation charge in cost of sales. Amounts capitalised are reviewed at least quarterly and any amounts that appear to be irrecoverable from future net revenues are written-off to cost of sales during the period the loss becomes evident. The estimate of future net revenues depends on the directors' judgement and assumptions based on the pattern of historical revenue streams and the remaining life of each contract. Further details of investment in acquired content rights are contained in Note 13.

The Company accounts for royalty accruals by estimating the total royalty payable and then expensing these balances on a revenue forecast basis, recording the royalty charge in cost of sales. The estimates and accruals are reviewed at least quarterly. The estimate of future net revenues and total royalty payable depends on the directors' judgement and assumptions based on the pattern of historical revenue streams and the remaining life of each contract.

The actual tax on the result for the year is determined according to complex tax laws and regulations. Where the effect of these laws and regulations is unclear, estimates are used in determining the liability for tax to be paid on past profits which are recognised in the financial statements. The Company considers the estimates, assumptions and judgements to be reasonable but this can involve complex issues which may take a number of years to resolve. The final determination of prior year tax liabilities could be different from the estimates reflected in the financial statements.

An analysis of the company's turnover is as follows:

Service income represents the income received by the Company pursuant to its provision of service to its fellow subsidiaries.

Expenses that are directly attributable to the generation of turnover in accordance with the licensing agreements have been recognised as Cost of Sales within the Statement of Comprehensive Income. Expenses are recognised on an accruals basis.

The Cost of Sales includes expenses incurred in engaging with third party agents, such as commissions and merchandising costs, as well as costs incurred from business with other entities within the Group. This includes royalties paid to Hasbro group companies for licensing intangible assets, which are used to generate turnover by granting sublicenses to third parties. The royalty payments, made at arm’s length, represent the cost of acquiring the rights conferred under the licensing agreements.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

Other interest income is derived from loan receivable from Hasbro SA (2024: $74.8m equivalent; 2023: $247.9m payable).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

An increase to the UK corporation tax main rate from 19% to 25% was announced in March 2021 (to be effective from 1 April 2023) for non-ring fenced profits, the new charge applying to profits over £250,000.

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

This relates to the impairment of the PJ Masks, Peppa Pig, Ricky Zoom and Kiya Brands in the year.

Details of the company's subsidiaries at 29 December 2024 are as follows:

Entertainment One (Asia) Limited and Entertainment One China Limited are currently dormant and have not undertaken any trading activities during the year.

The Amounts owed by group undertakings includes $74.8m (2023: $247.9m) related to the cash pooling referred to in note 18.

Cash pooling for the Company is organised through the target balance arrangement with Citibank. At the end of each business day, the shortage is topped up or the excess cash is swept to the header account which is held by Hasbro SA.

Amounts owed to group undertakings relate to balances invoiced and accrued in line with Hasbro trading terms.

Included within accruals and deferred income is $3.8m (2023: $-3.9m) of deferred income from consumer products licensing agreements and $38.3m (2023: $39.8m) of deferred income relating to amounts invoiced to third parties.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The outstanding contribution at the balance sheet date was $nil (2023: $659 recoverable).

On 1 September 2023, the company issued 1 ordinary share to its parent undertaking in exchange for the transfer of a business division. The fair value of the net assets received was £314,424,000 ($398,075,394), which was fully credited to the share premium account, with no amount allocated to nominal share capital.

As a wholly owned subsidiary, the Company is exempt under the terms of FRS 102 Section 33 from disclosing related party transactions with entities that are wholly owned within the Hasbro, Inc. group. No other related party transactions have occurred in the year or remain outstanding at year end.

The Company is a wholly owned subsidiary undertaking of HBE Film & TV Holdings UK Limited (formerly known as Entertainment One UK Holdings Limited), incorporated in the United Kingdom, which is based at 4 The Square, Stockley Park, Uxbridge, UB11 1ET. The largest group in which the results of the company are consolidated is that headed by Hasbro, Inc., incorporated in the United States of America. Copies of the financial statements of the ultimate parent company and controlling party may be obtained from Corporate Finance, Hasbro, Inc., 200 Narragansett Park Drive, P.O. Box 200, Pawtucket R.I. 02862-0200, U.S.A.