annual report 2011 Over the past several years, you joined us as we have  been transforming Hasbro into a global branded  play company. We are creating a company that  reaches farther than before, both geographically and  categorically. We have taken steps to further develop  our global teams, to establish a greater presence in  more global markets, and through our e ff  orts and  those of our partners, we have expanded our business  beyond the traditional toy and game category.  Through the execution of our strategy, we are:  During 2011, we made significant progress in  many aspects of our business. However, we did not  meet our expectations for growth in the U.S. and  Canada segment, including in the Games and Puzzles  category. We have acted swiftly and decisively in  both of these areas, putting in place new leadership  and plans to improve performance as we go forward.  We will address these e ff  orts in more detail shortly,  but first, let’s address the progress we have made  toward our strategy.  In 2011, we reported a record $4.29 billion in  revenue. This represented 7% revenue growth  over 2010, which is ahead of our 5% compound  annual growth rate target for revenue growth. We  grew earnings per diluted share for the eleventh  consecutive year, while returning $577 million  to shareholders through our stock buyback and  quarterly dividend programs. In early 2012, our  Board of Directors voted to increase our quarterly  dividend 20% to $0.36 per share, marking the third  consecutive year we have raised our quarterly  dividend by 20% or more.  The BEYBLADE brand was an incredible success  globally, delivering $477 million in revenues during  2011. We sold over 60 million tops in 40 countries  and online, we had deep digital engagements with  our consumers at beybladebattles.com. We now have  ten million registered users on beybladebattles.com  The TRANSFORMERS brand delivered $483  million in revenues during 2011, leveraging the global  box o ffi ce success of  Transformers: Dark of the Moon .  The third fi lm in the TRANSFORMERS movie franchise  grossed more than $1.1 billion at the box o ffi ce  globally. TRANSFORMERS brand revenue for Hasbro  grew in the U.S. and international markets and we  successfully leveraged the TRANSFORMERS brand  into new categories, including KRE-O, our entirely  new construction brand, as well as TRANSFORMERS  RESCUE BOTS, part of Hasbro’s all new PLAYSKOOL  HEROES line designed specifi cally for younger kids.  Through the successful implementation of our  branded play strategy which, at the core, focuses on  the innovation and invention of both existing and new  Hasbro brands worldwide, we are building bigger and  more global brands. In 2011, three brands exceeded  $400 million in annual revenues.  Over the past several years, we have invested in  the infrastructure to capitalize on our innovation all  around the world. Through new o ffi ces in emerging  markets, strong execution in mature markets and  the build-out of our brand blueprint globally -  including digital gaming, entertainment and licensing  capabilities - Hasbro is rapidly establishing a branded- play leadership position in markets around the world.  Hasbro’s 2011 top-line growth was fueled by 19%  revenue gains in our International business, or 16%  growth without the benefi t of the positive foreign  exchange impact. Revenue grew in every major  region internationally, in both mature and emerging  markets, and we gained market share in nine of the 10  international countries for which we have third-party  market data. In 2011, European revenues increased  19%; Latin America & Mexico revenues grew 19%; and  in Asia Pacific, revenues increased 24%. Moving from Global Aspirations to Global Execution To Our Fellow Shareholders:  Delivering Innovation Globally • Creating new teams to deploy our brands  around the world and the infrastructure to  move  from global aspirations to global execution .  • Expanding our capabilities to  deliver innovation  globally  across our brands and our business.  • Developing new immersive experiences through entertainment in television and feature  films, in digital media and in licensing. 