1 Confidential Material IT Finance Sony Pictures Entertainment Information Technology January Review February 21, 2014

2Confidential Material IT Finance Agenda FY15 IT Budget –Project Spend  Exceeds submitted request of $58.8M –Operating Expense  Favorable to MRP $0.5M  Excludes DMG/Tech Ops impact of $1.5M in FY15  Bain saving are included FY14 January Financials –Operating Expense –Capital Projects –Headcount FY14 Projects –Actual Spend, Forecast and Revised Budget  Appendix contains Spend by Month and projected Cash Flow & Project View reports Updates –Six Bain Initiatives –  4 committed savings - EIS $0.3M, ADM $0.6M, DMG $1.0M and Tech Ops $0.2M  2 uncommitted – Info Sec Merger $1.0M & BRM Right-Sizing $2.2M –Make Overrides Better – failed UAT; potential impaired asset of $0.5M  Review to determine investment needed to move into production –EDM to be split into 2 projects FDI/MDM $1.1M and KPI $.5M – Update in process  Transfer PARIS/Residuals $1.1M to occur – Requires Change Oder approvals of $2.2M Appendix

3Confidential Material IT Finance FY15 IT Budget - Capital Capital review meetings by DCIO –Reviews with CIO by Carry-over, Enhancement Pools, HW/SW Pools & New Projects –Bottom up requests – Pools supported by ServiceNow Changes Year-over-Year –Consolidated Internal and External Pools to single application pools –Capital spend by Application by BU  New views of data by application spend across Multi-years –Capturing expense portion of enhancements for internal and external labor –First steps towards TCO of an application Review meeting include EIS and ADM participation in BU reviews –To avoid potential duplication of efforts –Ensure Infrastructure is aware of project demand  Allows them to allocate HW/SW pool appropriately –ADM team supports BU and makes them aware of BU projects demand  Increase communication between BU and support teams FY15 Capital Demand exceeds $58.8M 1 st pass submission –Exceeds spend by $5M before new projects –Provide CIO data by DCIO, spend type and application prior to DCIO reviews

4Confidential Material IT Finance FY15 IT Budget - Capital by DCIO and Application FY15 Project and Pool Spend by DCIO before New Projects 3 Year Trend Spend for Applications over $3M

5Confidential Material IT Finance FY15 SAP Application Detail of SAP spend by Project and Pool

6Confidential Material IT Finance FY15 SAP Carryover & Pools * * FY15 new proposals not included

7Confidential Material IT Finance FY15 Operating Expense - Budget vs. FY15 MRP

8Confidential Material IT Finance January Favorable YTD to Budget $1.0M

9Confidential Material IT Finance Cause of Change – January YTD

10Confidential Material IT Finance January FY14 Headcount Vacancy rate: Oct 5.9%, Nov 5.4%, Dec 4.5%, Jan 3.7%

11Confidential Material IT Finance January FY14 Project Spend Forecast by LOB ($ in 000’s) Annualized Monthly Run Rate: Oct $45.3M, Nov $47.0M, Dec $47.7M, Jan $60.7M

12Confidential Material IT Finance January FY14 Project View Forecast by LOB ($ in 000’s)

13Confidential Material IT Finance YTD Capital Spend by Month by LOB ($ in 000’s)

14Confidential Material IT Finance Appendix

15Confidential Material IT Finance FY14 Budget Challenges - YTD $6.3M

16Confidential Material IT Finance January FY14 – LOB Comparison to Budget