1. September 30, 2010 SONY PICTURES ENTERTAINMENT EMERGING MARKETS Draft as of 22 Sept 2010

2. CONFIDENTIAL DRAFT page 2 Emerging markets are a key area of growth for Sony Pictures, as they will outpace growth in established markets Anticipated media and entertainment spending CAGR (’10-’14) 1 : – Latin America 8.8% (Brazil: 8.7%) – Asia Pacific 6.3% (China: 12.0%; India: 11.8%) – North America 3.9% – Europe/Middle East 4.6% (Russia: 9.3%) SPE has an established presence in many of these markets However, business conditions vary from market to market and thus, each territory requires a tailored approach Executive summary Source:1 PricewaterhouseCoopers, Global entertainment and media outlook: 2010-2014

3. CONFIDENTIAL DRAFT page 3 TV Networks Overall Opportunity Market Level Considerations SPE Approach Emerging markets are a key element to the growth of SPT's Networks business with existing operations in multiple emerging markets and further expansion plans SPE has successfully established a presence in each of the following territories –India: Very strong presence with a suite of four channels and ownership of a major distribution operation; SPE also holds rights to IPL, the number one sports property in India –Latin America: SET and AXN Latin America were the two highest EBIT contributors to the SPT network portfolio in FY10 –Central and Eastern Europe: Number one ad sales operation in Europe with particular success in Poland, where AXN also recently voted the number one channel in the market –Korea: Animax is an established channel in the region and SPT will soon launch a new fully localized AXN –Russia: Two channels launched in last 18 months Continue expanding through startup operations or local acquisitions –Launch a Korean programming based service across Asia (SET One) –Further expand across India through regional channels –Move into the Turkish and Greek markets

4. CONFIDENTIAL DRAFT page 4 TV Production Overall Opportunity Market Level Considerations SPE Approach While international expansion priority is UK, emerging markets provide growth potential –UK is the leading market for light entertainment format origination and internationally marketable scripted series –US and major European markets drive production business volume and value –Emerging markets enhance growth rate and profitability SPE has an established local TV production presence in each of the following countries/regions –Latin America: Leading independent producer with highest market share; local production presence in Colombia and Brazil; regional format and completed program sales as well as original local language productions through operations in Miami –Russia: Leading local producer with Lean-M JV; local operations also distribute formats and completed programs in Russia, Ukraine and other CIS territories –Middle East: Local scripted and non-scripted production operations for pan-regional and local broadcasters in UAE, Lebanon and Egypt –China: Only western company with local production operations; Huaso JV produces original local language shows and remakes of US formats such as Dr. Oz; SPT format and program sales in China and Asia region through operations in Hong Kong Pursue immediate expansion opportunities including: –Russia/CIS: Strengthen/expand genres in Russia and extend local productions to Ukraine –Poland: Build production presence through JVs with top local producers –India: Capitalize on strong market growth and leverage significant networks presence

5. CONFIDENTIAL DRAFT page 5 Theatrical Releasing Overall Opportunity Market Level Considerations SPE Approach International box office is increasingly important, but not all emerging markets are financially attractive –Many U.S. titles travel well but certain genres, such as urban and domestic comedies, do not necessarily appeal to local audiences –Price points in emerging markets are a fraction of those in developed markets –Foreign titles often scheduled so they do not compete with local product; local titles are increasingly gaining favor with local audiences –Lack of automated and transparent tracking/reporting systems can result in fraud Within BRIC, real challenges in Russia and China; India a price/volume trade-off –China: import quotas allow only 20 foreign films per year; local titles receive preferential treatment when competing for screens; retention rates are low (e.g., 2012 titles – 18%; Spider-Man 3 – 15%) –Russia: widespread under-reporting of box office figures with government considering automated system –India: average ticket price is $.50, but large/growing admissions make up for low price point Constantly re-evaluating nature of presence in each market to determine whether scale justifies cost of overhead –Local presence in 22 branches, where investment in infrastructure yields returns –55 sub-distribution deals where the cost of building infrastructure outweighs the cost of being in business

6. CONFIDENTIAL DRAFT page 6 Local Film Production Market Level Considerations SPE Approach Industry-wide film production is growing in emerging markets based on strength of international box office, but profits have been limited and dependent on key market characteristics: –Availability of financing –State of infrastructure for releasing –Government programs to limit (e.g., quotas) or give financial incentives (e.g., tax credits) –Necessity of local partnerships to gain access to markets or ensure content relevance Russia and China present challenges –Russia: Productions decreased from 220 in 2008 to 101 in 2009 due to limited funding –China: Productions have grown from 91 in 2000 to 456 in 2009 but many going direct-to- video due to an insufficient number of modern screens Brazil presents opportunities: productions increased from 35 in 2000 to 94 in 2009 due to favorable tax incentives and sector funds Expect overall investment and growth in local language production to remain limited Maintain local film production presence in existing international markets, both established and emerging –Currently have three productions in Germany and four in Russia –Have produced >20 films in Brazil since 2003 due to favorable tax incentives Pursue co-productions in countries with high barriers to entry –Collaborate with local filmmakers where appropriate Overall Opportunity

7. CONFIDENTIAL DRAFT page 7 Home Entertainment Overall Opportunity Market Level Considerations SPE Approach Emerging markets represent a growth opportunity for Home Entertainment over the next three years but must be carefully managed given the challenges –Many emerging markets have both the greatest growth potential and the greatest risk from piracy –Coordinated cross-Sony approach is particularly important for Home Entertainment given the retail nature of the product Within the BRIC nations, specifically: –Brazil and Russia are higher margin (driven by higher price points and Blu-ray appetite), and higher growth with historically heavy piracy now declining –India and China are lower margin, lower growth territories and have retail infrastructure challenges; however, greater digital opportunities exist BRIC is not the only growth opportunity; SPHE leverages licensees in 30+ countries for marketing and distribution Coordinated cross-Sony approach in BRIC countries –Develop digital models for PSN/Qriocity –New retail marketing opportunities including bundles with Sony Electronics –Review joint Sony Music/DADC proposal to expand SPHE’s retail and physical footprint (China) Explore opportunities to expand cross-Sony approach to other markets Other collaboration opportunities with third parties –Partner with a local distributor (China, Russia) and combine personnel (Russia) –JV with other studios for benefits of scale

8. CONFIDENTIAL DRAFT page 8 Coordinated cross-Sony strategy in emerging markets SPE collaborates with its sister companies in their respective territories; initiatives to date have been most compatible with home entertainment – Co-promotion:  SPE content featured on SEL/SCE devices and packaging at retail locations and in advertising  SPE contests and give-aways (e.g., premiere tickets used to drive hardware sales)  Joint presence at local consumer electronics shows  Sony United loyalty program inserting coupons for Sony content in hardware packaging and vice-versa – Product bundling: Home entertainment products (e.g., BDs and 3D BDs) bundled with electronics and PS3s – Leveraging retail footprint: SPE content displayed outside and inside Sony stores SPE sees additional opportunities for collaboration with other Sony companies – Extend bundling initiatives to digital content (e.g., Sony MC or USB sold with special code for a digital movie download) – Potentially formalize the best-practice cross-Sony approaches taking place in key markets today (e.g., Russia and Brazil) and export it to additional key territories (e.g., Australia)

9. APPENDIX

10. CONFIDENTIAL DRAFT page 10 Importance of emerging markets varies by business line – TV networks have significant presence in emerging markets and are less exposed to piracy and regulatory challenges – TV production is similarly positioned with presence in multiple emerging markets – Motion picture releasing opportunities vary more market-to-market, depending on ticket prices, rentals, and the impact of piracy – Opportunities for local film production are more limited, particularly in countries with poor distribution infrastructure or lower demand for film content – Home entertainment has presence and opportunity in emerging markets, but must balance growth potential with the threat of piracy Each territory also has nuances to navigate – Brazil / Latin America : Growth for most SPE businesses with relatively high price points – Russia: A growth market for home entertainment and TV, but theatrical market less attractive as local productions decrease and box office reporting remains unregulated – India: Opportunity for local TV production on the back of SPE’s existing TV networks; challenges with physical retail infrastructure suggests greater opportunity in digital home entertainment – China: Piracy, regulation and infrastructure severely limit western media and entertainment opportunities, although SPE has seen some success in it’s TV production JV Executive summary Notes: 1.Source: PwC Global Entertainment and Media Outlook 2010-2014 Includes box office and home entertainment revenues