CONFIDENTIAL -- Sony Pictures Entertainment Work Product Sony Pictures Digital Productions Fiscal Year 2014 Budget Overview February _, 2013

CONFIDENTIAL -- Sony Pictures Entertainment Work Product Agenda Page Number FY13 Q4 Forecast Update FY14 Budget Overview Film Ultimates

CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY13 Q4 Forecast Update

CONFIDENTIAL -- Sony Pictures Entertainment Work Product Full-year EBIT $37.7MM favorable to budget, excluding Aardman titles: –Hotel Transylvania enjoyed enormous worldwide success and is now SPA’s best performing animated feature (#1 domestic September opening of all time, #5 domestic family film this year, #7 family film in worldwide box before its release in France) –Hotel Transylvania’s current projected worldwide performance of $335MM (excluding China) resulted in GP of $78.7MM, $31.1MM higher than greenlight –Imageworks generated $23.0MM in EBIT ($16.0MM favorable to budget), due to stronger than anticipated margins from 3 rd party business as well as ongoing cost savings from continued expansion in Vancouver and efficiencies in Culver City Imageworks maintained its reputation for excellence in the industry, providing high-end VFX and animation work at competitive prices: –Imageworks won this year’s Sci-Tech Academy Award for its work developing Katana (lighting software), which has been monetized subsequently via commercial release with a developer partner –Finishing production on Disney’s March 2013 tentpole Oz: The Great and Powerful, directed by Sam Raimi –In production on Cloudy 2; in pre-production on Amazing Spider-Man 2 and All You Need is Kill (Warner Bros) FY13 Highlights page 4

CONFIDENTIAL -- Sony Pictures Entertainment Work Product The Smurfs: A Christmas Carol, a 22 minute CG/2D animation hybrid short produced originally for the Smurfs 1 home video release, debuted at #1 in its time slot on Cartoon Network and aired internationally in major territories this holiday season, providing an early pre-theatrical marketing boost for Smurfs 2 –Christmas Carol was also sold separately this year –SPA is producing 22 minute The Smurfs: Legend of Smurfy Hollow for October 2013 for TV and separate sale, to help promote home video release of Smurfs 2 worldwide later in the year –Both Smurfs shorts will be bundled for sale with a 3 rd title to be produced in conjunction with Smurfs 3, also intended primarily to assist home video Hotel Transylvania received Golden Globes and Annies nominations for best animated feature –Goodnight Mr. Foot, a 4 minute 2D-animated short produced for home video and attached theatrically to the film Halloween week, was also nominated for an Annie The Hotel Transylvania Social Game generated over 1MM installs, assisting theatrical and home video marketing while providing a significant user base that can be leveraged for future films FY13 Highlights page 5

CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY13 Q4 Financial Summary ($ in Thousands) page 6

CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY14 Budget Overview

CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY14 Strategic Objectives page 8 Develop high-margin family-friendly films with franchise potential Deliver 2 family films per year – either CG-animated or live-action hybrid features Execute sequels with no more than a 3 year lapse to maximize brand awareness Have films greenlit and in production 2 years ahead of theatrical release to solicit high quality promotional and licensing partners Continue to lower average cost of production in response to new economics Collaborate closely with other SPE divisions to maximize overall revenue opportunity in the theatrical window and beyond Maintain ongoing relevance of the brand by opportunistically producing additional content at low cost –Smurfy Hollow, a 22 minute CG/2D animation hybrid, will be broadcast separately on TV prior to home video release, successfully expanding on a pre- sale strategy tested with Smurfs: A Christmas Carol –A series of Cloudy 2 shorts, produced inexpensively in predominantly 2D animation, will help online theatrical marketing while still providing important value in the home video window Opportunistically publish mobile and social apps based on SPA properties that serve as powerful marketing engines while also generating revenue Create additional content to promote films Identify and execute future high-margin franchises

CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY14 Strategic Objectives page 9 Sound out opportunities with potential partners – Cartoon Network, Nick and the Hub – to license our properties for a TV series, emulating the model for the DWA’s Penguins of Madagascar series on Nick –Significant EBIT potential from new consumer products licensing opportunities –Potential for incremental profits from rights fees and a share of TV revenue at low investment risk –Maintains high awareness in off-film years, supporting the overall franchise (Madagascar 3 significantly outperformed the prior film with the support of the Penguins show) –Provides theatrical spin-off opportunities (like Penguins) Proactively resize the business from $150MM/yr to $115-$120MM/yr to adapt to strong price competition and continued volatility in VFX while maintaining quality Expand Vancouver into all remaining production departments to take even greater advantage of the 58.4% tax rebate on labor. –The number of projected artists in Vancouver are now on par with the number in Culver City Continue to assist Digital Marketing in developing strategy while executing industry- leading campaigns across all platforms at below market rates Significantly resize group to meet current cost initiatives requirements without sacrificing major capabilities or quality Develop 3 rd party business to provide incremental EBIT and lower overall costs, mirroring successful Imageworks model Sony Pictures Interactive: Execute industry- leading digital campaigns at below market rates Explore potential for TV series based on SPA properties Resize Imageworks and maximize use of Vancouver facility

CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY14 Budget Financial Summary ($ in Thousands) page 10 TO REPLACE

CONFIDENTIAL -- Sony Pictures Entertainment Work Product MRP EBIT Reconciliation to FY14 Budget ($ in Thousands) page 11 TO REPLACE

CONFIDENTIAL -- Sony Pictures Entertainment Work Product MRP Net Cash Reconciliation to FY14 Budget ($ in Thousands) page 12 TO REPLACE

CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY14 Budget Risks & Opportunities ($ in Thousands) page 13 TO REPLACE

CONFIDENTIAL -- Sony Pictures Entertainment Work Product Imageworks FY14 Budget Revenue ($ in Thousands) page 14 TO REPLACE

CONFIDENTIAL -- Sony Pictures Entertainment Work Product Film Ultimates

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