1. Sony Pictures Digital Productions Fiscal Year 2010 Budget February 18, 2009

2. Agenda Page Number FY09 Q4 Forecast Update 2 - 4 FY10 Budget Assumptions 5 - 8 FY10 Budget Overview 9 - 20 Appendix 21 - 26

3. 2 FY09 Q4 Forecast Update

4. 3 FY09 Q4 Financial Summary ($ In Thousands) EBIT Variance: Q4 Forecast on target with Q3 Forecast. Unfavorable Budget variance of ($25M) due to: ($35.3M) - reduced VFX work and timing of Animation’s Cloudy and Hotel Transylvania work to FY10. $10.3M – favorable timing of Cloudy pre-release marketing spend to FY10 and timing of Open Season 2 home entertainment revenue flows Q4 Risk: Imageworks ($1M) revenue timing risk for G-Force and Alice in Wonderland

5. 4 FY09 Q4 Highlights to FY09 Budget Original Budget Challenge (SG&A) of $700k – Achieved savings of $1.3M – [To add] Immediate reductions per Michael & Amy’s memo – Eliminated overtime for non-billable employees – Reduced T&E in line with new SPE policy Broader cost reduction initiatives implemented beginning in March 2008: – Organizational … Reduced billable and non-billable headcount proportionate with shows in production reduction Migrated all new artist hires to run of production status – Compensation … Reduced average compensation levels by hiring a proportionate younger workforce through the IPAX program, benchmarking compensation against industry averages and establishing narrower salary bands … Reduced fringe rates by redesigning employee benefits, including reducing non-contractual salary increases and bonus plans – Efficiency … Improved utilization by creation and implementation of Production Portal … Gained production efficiencies through use of proprietary software in production … Reduced employee overtime – Facility & CAPEX … Increased density of existing office space, accelerating termination of building leases … Eliminated underutilized equipment and licenses … Reduced capital and maintenance expenses, including third party software spend for production WIP

6. 5 FY10 Budget Overview

7. 6 Prioritize Imageworks around needs of SPA & Columbia, using excess capacity to service third parties Reduce facility size and execute on cost reduction initiatives at Imageworks Manage visual effects business on a break-even basis, only charging internal productions “at cost” (no profit) Increase SPE’s participation and success in family features market –CG animated films at the high end ($100MM+) and mid-tier ($25-50MM) –Animation/live action hybrids –DTV sequels Shepherd Aardman relationship for SPE Expand digital marketing services beyond SPE to third parties via Imageworks Interactive Improve Economics Focus on High Margin, Growth Businesses Explore New Opportunities Strategic Objectives

8. 7 FY10 Budget Highlights WIP Cloudy release September 2009: – Modeled at a $85M DBO with a 1.5 IBO multiple and breakeven at ___ – (Marketing savings contribute ___ based on adjustment of __% due to general market conditions) Open Season 2 – Non-projected IBO of $___M through opportunistic partnership with home video in special markets (Russia, Croatia) – Strong home video performance of $__M, including unprecedented sales volume for SPE family title at Walmart Surf’s Up tail risk – [COMMENT] SPI third party work absorbs gap costs from release – Hotel T timing …. – Arthur Christmas timing … Cost reduction Initiatives – Ongoing organizational, compensation, efficiency, and facility & CAPEX initiatives begun in FY 09 provide further cost reduction of $__M – Organizational review and subsequent headcount reductions from eliminating redundancies create $___M in savings – Further efficiency gains result from improved utilization of workforce and production pipeline through production portal – Increased individual departmental accountability provided further overhead savings

9. 8 FY10 Budget Highlights Satellite production Imageworks New Mexico provides $__M in savings realized through tax rebate as facility expands to 105 headcount Imageworks India creates $____M savings by participating in animation pipeline WIP

10. 9 FY10 Budget Revenue & EBIT Summary FY10 Budget Revenue & EBIT Summary ($ in Thousands)

11. 10 MRP EBIT Reconciliation to FY10 Budget MRP EBIT Reconciliation to FY10 Budget ($ in Thousands)

12. 11 FY09 Q4 EBIT Reconciliation to FY10 Budget FY09 Q4 EBIT Reconciliation to FY10 Budget ($ in Thousands)

13. 12 Budget EBIT Risk & Opportunities Budget EBIT Risk & Opportunities ($ in Thousands)

14. 13 Budget Receipts & Cash Flow Summary Budget Receipts & Cash Flow Summary ($ in Thousands)

15. 14 Budget Cash Risk & Opportunities Budget Cash Risk & Opportunities ($ in Thousands)

16. 15 Cloudy with a Chance of Meatballs Ultimate ($ in Thousands)

17. 16 Appendix

18. 17 Cost Reduction Plan ($ In Thousands) WIP

19. 18 Revenue Summary ($ In Thousands)

20. 19 Open Season Ultimate ($ in Thousands)

21. 20 Surfs Up Ultimate ($ in Thousands)

22. 21 Open Season 2 (direct to video) Ultimate ($ in Thousands)