MID-RANGE PLAN SONY PICTURES ENTERTAINMENT September 30, 2010

MID-RANGE PLAN SONY PICTURES ENTERTAINMENT September 30, 2010
4/20/2017 SONY PICTURES ENTERTAINMENT September 30, 2010 MID-RANGE PLAN Draft as of 23 Sept 2010

SPE has evolved over the past 7 years
SPE has taken the necessary steps to strengthen the business, mitigating the impact of market pressures and positioning the company for growth despite rapid change in the industry Film Previously Today Franchise Films Heavily dependent on a single franchise: Spider-Man Multiple established franchises: Ghostbusters, Men In Black, Dan Brown Novels, Resident Evil, Underworld Multiple new franchises: Stieg Larsson novels (e.g., Girl With the Dragon Tattoo) Breadth of Slate Dependent on Revolution to fill out slate Columbia’s slate more diverse Consistent volume of high margin films from Screen Gems Significant profits from acquired product Family Films Limited presence in family and animated films Established presence in animation, with ability to hold down talent costs and drive margins Expanded into high-margin faith-based segment Risk & Success Rates Made sizable bets on films with unknown talent 31% of FYE03 Columbia films reached break-even SPE bore all risk of slate Larger bets are behind well-known franchise brands and/or well-known talent 70% of FYE10 Columbia films reaching break-even Slate financing has mitigated risk and provided cash flow Relationships with top tier talent were ad hoc Costs rose in line with the growth in DVD; several “first dollar” deals Maintain top tier talent relationships (e.g., Will Smith, Adam Sandler) Managing costs down as home entertainment market declines; most deals pushed to “post-break” Talent

SPE has evolved over the past 7 years
Television Previously Today Nearly exited the domestic television production business Highest volume of U.S. series on-air in company history (25) Diversified across broadcast series like Rules of Engagement and Community, cable series like Breaking Bad, and first-run syndication hits like Dr. Oz Multiple series poised for syndication Domestic Production International Production Limited presence, primarily Germany and France Established in many key territories Expanded presence through the 2waytraffic acquisition Profitable, and growing with plans for continued expansion Networks Networks in early investment phase Multiple network brands, including SET, AXN, Animax, reaching 477MM households in 140+ countries Major contributor to SPE’s profit and growth EBIT growth from $23MM in FYE03 to $134MM(1) in FYE10 before monetization gains Cross Divisional Systems Significant in-house investment in IT Yet many systems inadequate to meet needs of operations Strategically outsourced to reduce costs Systems are now robust and suited to business needs Excludes Crackle.

The landscape going forward
The demand for filmed entertainment remains high and continues to grow The business is becoming increasingly complex as the home entertainment consumption and distribution landscape changes SPE is navigating these changes well: our creative process is working, we are investing prudently and we continue to manage costs We are also aggressively pursuing incremental upside from Sony United opportunities In FYE11 and FYE12, as home entertainment evolves and SPE invests in new properties, we will face pressure on cash and profits, but will achieve EBIT goals and reach cash flow break-even In FYE13 and FYE14, as franchise films are released, TV shows reach syndication, and profits from our TV networks continue to grow, SPE will generate significant EBIT and cash flow

Agenda Industry Trends & Competitors SPE MRP Overview
4/20/2017 Agenda Industry Trends & Competitors SPE MRP Overview SPE Divisional Details Motion Pictures Digital Production Home Entertainment Television Financial Summary Closing Q & A

Industry Trends and competitors

In the next five years, digital access to all forms of entertainment and media will accelerate
WW Broadband HHs(1) (MM) WW Smartphone Shipments(2) (MM) CAGR: 6% CAGR: 38% WW Connected Game Console HHs(3) (MM) WW Internet Connected TV HHs(3) (MM) CAGR: 14% CAGR: 51% ScreenDigest 2010. Strategy Analytics 03.10, SEL. Parks Associates

Consumption of entertainment content is up, but increasingly volatile
Box Office TV Viewership Home Entertainment Transactions North American box office has grown at a CAGR of 4% over the last 10 years However, in previous years price growth outpaced admissions growth and admissions are down year-to-date Usage per US TV household has steadily increased over the last 10 years Incremental to this is consumption across additional platforms/devices (e.g., smartphones, tablets etc.) Home entertainment continues to fluctuate, influenced by competing forces Decline in physical sell-through and shift to rental Within rental, shift to subscription, kiosk and VOD models Growth of digital US Box Office(1) US$ Billions Usage per US TV HH per Day(2) Hours:Minutes US Home Entertainment Transactions(3) Billions MPAA, BMO Capital Markets Nielsen, and BMO Capital Markets Adams Media Research / Screen Digest Includes video rental, video retail, cable/DBS/Telco VOD, online rental and online retail.

New release sell-through continues to decline
Domestic Sell Through Performance Against Box Office Across All Major Studios Quarter-on-Quarter % Change from CY2006 2006 to 2007 2006 to 2008 2006 to 2009 2006 to 2010 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Domestic new release sell-through box office factor is 35% below 2006 peak Source: Nielsen Home Scan, title-level analysis, major studios include Fox, Lionsgate, Paramount, SPHE, Universal, Warner, and Disney (includes distributed lines); box office adjusted for inflation and 3-D admissions. Notes: All Q2 values are comprised of their actual sales volumes (no titles are forecasted).

Catalog sales are in steady decline
Both discounted pricing and year-over-year volume decreases are contributing to the overall decrease in revenues Through August 2010, catalog revenue is experiencing double-digit declines (16%) vs. the same period in 2009 U.S. Consumer Revenues for Catalog Films(1) ($B) CAGR: (5%) (8%) (1%) (6%) Decline vs. 2006 - (8%) (8%) (14%) Average Price $10.88 $10.69 $10.07 $9.76 Source: Nielsen VideoScan Includes data from all major studios. Nielsen VideoScan revenue includes projections for all non-reporting retailers (e.g., WalMart) to estimate total national sales activity. (1) Catalog includes only those films with a theatrical release.

Rental transactions are shifting to more convenient models
Brick-and-mortar transactions are expected to continue declining Kiosk and subscription transactions are projected to continue growing, accounting for the majority of total domestic rental transactions in 2014 VOD transactions are growing as well and expected to exceed brick and mortar rental transactions Studios will need to explore options for shoring-up lower margin models (e.g., windows on Kiosk and subscription) and driving demand for higher margin VOD models US Consumer Rental Transactions (B)(1) Industry Average $ Contribution per Transaction(2) (3) (1) Screen Digest VOD includes online, telco, MSO and DBS. (2) Morgan Stanley SPHE margins generally in-line with industry averages with exception of Redbox where SPHE margin is ~$1.10 vs. industry kiosk average of $0.95. (3) Brick and mortar (B&M) margin represents a weighted average of traditional DVD and Blu-ray rental margins. Weighting based on number of total domestic 2009 rental units consumed by format (i.e., 95% traditional DVD, 5% Blu-ray) per Morgan Stanley

Impact on home entertainment distribution
Brick and Mortar Retail Mass retailers are reducing HE shelf-space, the remaining space is being devoted to new-release at the expense of catalog, and there is downward price pressure on Blu-ray Pure “rentailers” are struggling to remain in business (e.g., Movie Gallery & Hollywood Video have closed and Blockbuster has filed for bankruptcy protection) New Distribution Partners Gaining Strength Consumers are turning to subscription (i.e., Netflix, Lovefilm) and kiosk (i.e., Redbox) channels due to a superior combination of convenience and value Lower margin subscription providers and kiosk services are expected to account for 75% of rental spend by 2014 Digital is a Growth Driver; But Physical Remains Important Despite faster growth in digital revenues, traditional/physical revenue streams will remain significant for the next five years Improving home entertainment economics can be achieved by growing digital while seeking to drive adoption of higher margin physical models (e.g., Blu-ray)

Competitor response to a changing landscape
Competitors will likely draw on diverse assets to drive near-term results Profits from established franchises with sequels in the next two years Captive publishing arms (e.g., Disney/Marvel, WB/DC) for new franchises Captive U.S. TV networks (e.g., Disney/ABC, Fox/Fox, Universal/NBC) to drive TV production success and associated profits International networks for growth Ancillary profits (e.g., merchandise) from consumer-friendly brands (e.g., Disney) Large film/TV libraries that generate substantial cash flow and earnings even as HE declines However, all face economic challenges and appear to be addressing challenges by: Continuing to emphasize franchise films Managing talent costs (although costs have not dropped sufficiently and bidding wars still occur) Attempting to drive higher-margin HE models (e.g., WB with DVD2Blu; all studios rumored to be in discussions of new windows) Working through strategies to capitalize on new partners’ willingness to pay (e.g., Netflix) without accelerating cannibalization of HE sell-through (e.g., 28-day window) Driving profits in TV production and network growth

4/20/2017 SPE MRP Overview

SPE MRP Overview Market changes, in conjunction with the timing of SPE’s release slate, will put pressure on SPE’s economics in FYE11 and FYE12 Further deterioration in home entertainment A significant number of films scheduled for release in the 4th quarter of FYE11 Lower ultimate gross profit per film for Columbia due, in part, to the absence of franchise films, including the delay of the next Spider-Man (delay reduces FYE12 earnings by ~$100MM) Flat earnings in U.S. television production due, in part, to product not entering syndication until FYE13 and FYE14 A negative impact from the weakening of the euro and sterling against the US dollar As a result, asset monetizations will likely be required to achieve FYE11 and FYE12 EBIT goals and SPE will have near-term cash pressure as it invests in future profits FYE11 forecast EBIT of $369MM, requires $197MM from monetizations / other EBIT improvements FYE12 MRP EBIT of $375MM, requires $195MM from monetizations / other EBIT improvements Net cash flow is breakeven in FYE11 and FYE12 Strong earnings and cash flow growth will occur in FYE13 and FYE14 as near-term investments yield returns Franchise films are released TV shows in syndication Strong network profit growth Benefits of previous overhead reductions continue

SPE MRP Overview SPE EBIT ($MM)
SPE anticipates meaningful growth with $500MM of EBIT in FYE13 and $600MM of EBIT in FYE14 Translates to $150MM and $300MM of net cash flow in FYE13 and FYE14, respectively Columbia franchise films significantly increase average ultimate profit per film Continued growth in TV networks EBIT: $255MM in FYE14 vs. $158MM in FYE11 Continued growth in U.S. Television production EBIT due to strong syndication: $269MM in FYE14 vs. $195MM in FYE11 EBIT over the MRP period also benefits from FYE09 and FYE10 cost reduction efforts which generated overhead savings of approximately $150MM SPE EBIT ($MM) Notes: FYE11 EBIT excludes $23MM of restructuring costs related to last year’s Overhead Reduction Initiative. FYE11 and FYE12 include estimated monetizations of $197m and $195m, respectively. 3D Networks included in all years: $6MM loss in FYE11, $10MM loss in FYE12 ; $5MM loss in FYE13 and $1MM profit in FYE14.

SPE strategic initiatives
SPE’s strategic initiatives over the MRP period include: Investments in existing and new franchises with broad international appeal, including Spider-Man, Men in Black and Ghostbusters Continued emphasis on cost management Investments in growth businesses, including TV networks and international TV production Extend higher margin sell-through business, including emphasis on Blu-ray Lead industry in new home entertainment formats and releasing strategies SPE is also uniquely positioned to leverage Sony United opportunities Leverage Sony’s retail presence Product bundling opportunities with SEL (e.g., 3D Blu-ray / Bravia) Joint promotions across product lines (e.g., PS3/BD ads, 3D TV/3D BD ads, etc) Collaborate on content service across Sony devices Drive 3D’s success through theatrical releases, Blu-ray releases, the 3D Network and technology leadership

4/20/2017 Divisional Details Motion Pictures

Motion Pictures Key Strategies
4/20/2017 Improve Economics of Existing Businesses Adjust talent costs, i.e., restructure back-end deals Add fee based titles from outside producers Reduce production and marketing costs Focus genre and production cost mix Columbia - Tentpoles and low budget films with upside Screen Gems - Genres films (e.g., Thriller, Comedy, Action at low cost) Emphasis on global appeal Pursue film-financing and tax-based incentives Pursue Growth Opportunities: Grow family business Increase focus on franchises including Spider-Man, Men-in-Black, Ghostbusters, Stieg Larsson films (Girl with the Dragon Tattoo) Pursue opportunities in high growth international markets Pursue low cost faith-based acquisitions

Motion Pictures Franchise Opportunities
4/20/2017 Motion Pictures Franchise Opportunities Numerous titles are in negotiation or active development with an eye toward production in the next few years Masters of the Universe Spider-Man Stieg Larsson novels Men In Black Total Recall Ghostbusters Salt Bad Boys Ultraman Zombieland Sinbad Dan Brown novels “Talent Franchises/Brands” such as Will Smith, Adam Sandler and Will Ferrell offer additional opportunities Spider-Man is planned for FYE15, two years after the reboot

Motion Pictures FYE12 Release Slate APRIL MAY JUNE JULY
4/20/2017 Motion Pictures FYE12 Release Slate APRIL MAY JUNE JULY Born to be a Star $25 Bad Teacher $45 Lance Armstrong $8 Priest 3D $60 Zookeeper $100 Friends with Benefits $50 AUGUST SEPTEMBER OCTOBER NOVEMBER 30 Minutes or Less $65 The Smurfs $50 Money Ball $75 Straw Dogs $40 Anonymous $100 Tintin (Int’l theatrical only; IBO $180) Jack & Jill $120 Arthur Christmas 3D $85 DECEMBER JANUARY FEBRUARY MARCH Girl with a Dragon Tattoo $115 Premium Rush $55 Underworld 4 3D $55 Ghost Rider 2 3D $100 The Vow $50 21 Jump Street $80 Pirates $50 By Dom Box Office $90mm + = 6 Films $70mm - $85mm = 3 Films $45mm - $65mm = 9 Films $0mm - $40mm = 3 Films Columbia (13 films) Screen Gems (5 films) SPA (3 films)

Motion Pictures Development Spending
4/20/2017 Actions are being taken to reduce spending to $63m by FYE13 Controlling both commitments and spending based on slate needs SPE Development Spending ($mm) $134 $111 $105 $98 Limiting new projects Signing one-step deals or reducing rates where possible Eliminating non-productive term deals Note: FYE10 includes $19m on Spider-Man 4, which was written off $79 $80 $75 $68 $63 $63 Project Spending Term Deals 22

Motion Pictures Reduce Production Costs
4/20/2017 Motion Pictures Reduce Production Costs Negotiating post break back-end deals and reduced upfront fees for talent 9 of 11 films committed in FYE11 are post cash break deals Have successfully reduced upfront compensation and renegotiated backend deals prior to starting principal photography (e.g., Spider-Man 2012, Girl With Dragon Tattoo) Monitoring global incentives to capitalize on the opportunities to lower production cost Exploiting tax-based incentives on a worldwide basis will save approximately $41mm on FYE12 releases Working closely with Physical Production to generate cost efficiencies and minimize cost overruns

Worldwide Acquisitions EBIT
4/20/2017 Acquisitions Maximize Financial Contributions Growing earnings and maintaining strong margins despite difficult conditions in the DVD and TV marketplace Worldwide Acquisitions EBIT MRP Assumptions Direct-to-Video (DTV) production will be focused on sequels to recently released theatrical product Increasing the number of acquired product to be released theatrically in response to the declining margins on Direct-to-Video titles Worldwide Acquisitions will continue to pursue high-profile International all-rights acquisitions Pursue film and P&A financing opportunities FYE11 FYE12 FYE14 FYE13 ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Margin 18% 17% 15% 15% ($ In millions)

Motion Pictures Digital Cinema
Rollout Update 28,500 digital screens estimated to be installed worldwide by the end of 2010 with 43,000 projected by 2011 Today, there are over 11,500 digital screens in North America and 25,000 screens worldwide Today, there are over 5,700 digital 3D screens in North America and 16,000 digital 3D screens worldwide Easier access to capital and the popularity of 3D is driving the installation of digital equipment In North America, DCIP has received financing and has aggressively begun its rollout with AMC, Regal and Cinemark (comprises > 50% of the market) 30 3D feature releases from Hollywood are slated for CY2011; 25 in CY 2012 In calendar year 2011, SPE will be releasing 6 3D releases: Green Hornet , Priest , The Smurfs, Arthur Christmas, The Invention of Hugo Cabret, and The Adventures of Tintin

4/20/2017 Divisional Details Digital Production

Digital Production Key Strategies
4/20/2017 4/20/2017 Develop Profitable Franchises from Brands Create diverse slate from brands, featuring high-end CG-animated films (i.e., Cloudy With a Chance of Meatballs, Hotel Transylvania) and live-action hybrids (i.e., The Smurfs) Develop franchises either as theatrical sequels (or opportunistically as high-margin DTV sequels for more modest theatrical performers -- i.e., Open Season) Continue to Improve Economics of Existing Businesses Reduce high-end CG-animated films production budget to $90MM, including 3D Make Imageworks even more price competitive for animation or VFX through heavier use of tax or cost-advantaged satellite facilities, including recently-opened Vancouver studio Continue to use 3rd party VFX work as a means to lower SPA and Columbia production cost Serve as a Resource for Sony Corp SPA created characters used in Sony Electronics’ marketing/promotions Provide 3D production expertise to studio 3D center and broader company 27

Digital Production SPA - Developing Profitable Franchises from Brands
4/20/2017 4/20/2017 Digital Production SPA - Developing Profitable Franchises from Brands Team is currently focused on production for CG-animated Arthur Christmas (Aardman) and Hotel Transylvania. The Smurfs (hybrid) and Open Season 3 (DTV) are now in post-production Actively developing theatrical sequel scripts based on last year's successful Cloudy With a Chance of Meatballs and still-to-be released Smurfs Several promising projects currently in priority development are based on well-known brands: Roller Coaster Tycoon, based on the popular Atari game; Popeye, based on the iconic property; Familiars, based on the major new children’s book recently published by Harper Collins; and Berenstain Bears, based on the best-selling children’s characters books (260MM copies sold worldwide) ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 28

Digital Production Imageworks – Maintain Quality at Lower Cost
4/20/2017 4/20/2017 Serve SPA and Columbia as dependable source of high-quality digital animation and VFX expertise at lower cost Won Scientific and Engineering Academy Award Secure larger budget third-party work (e.g., Disney’s Alice in Wonderland and now Warner Bros’ Green Lantern) as a means to reduce SPA and Columbia production cost (shared overhead, shared R&D, stronger talent pool) Continue to shift artists and some overhead positions -- to tax and cost-advantaged areas (Vancouver, New Mexico, India) to further lower costs Provide 3D production expertise to the studio 3D Technology Center and broader company Use creative partnerships and Open Source to continue to shrink technology costs while maintaining innovative edge 29

4/20/2017 Divisional Details Home Entertainment

Home Entertainment Key Strategies
4/20/2017 New Release: Extend higher-margin, sell-through business Support continued growth of Blu-ray (especially 3D) through product differentiation and superior retail execution Optimize DVD sales by actively managing availability, pricing, and windowing at a title level Catalog: Manage decline in catalog sell-through Develop innovative marketing and pricing strategies with physical retailers Drive impulse purchasing with online retailers Digital: Lead industry in new home entertainment formats and releasing strategies Lead physical customers in transition to digital business model (e.g., Amazon, Wal-Mart/Vudu, etc.) Develop product features that make ownership model more attractive for consumers

Worldwide HE Contribution
Home Entertainment Contribution by Product Motion Picture release slate in FYE13 drives the overall growth of Home Entertainment Contribution during the MRP period Worldwide HE Contribution The increase in New & Recent in FYE13 is driven by titles such as: Ghostbusters 3, Men In Black 3, and Spider-Man 4. New & Recent in FYE14 is driven by titles such as: Bad Boys 3, Flowers for Algernon, and The Lost Symbol. HE is projecting to keep Flow/Library flat during the MRP despite retail space constraints and pricing pressures. The increase in Acquisitions is driven by a greater mix of theatrical releases. $1,731 $1,613 $1,255 $1,128 ($ In millions) 32

Worldwide MRP Contribution*
Home Entertainment Contribution by Format Home Entertainment contribution from physical transactions (DVD and Blu-Ray) still represents 81% of the total contribution in FYE14 Worldwide MRP Contribution* ($ In millions) $1,731 $1,613 Open for table from HE Executive Presentation $1,441 19% Digital 12% $1,255 $1,128 15% 37% Blu-ray 73% DVD 44% * Contribution includes Digital and domestic TVOD but excludes Manufacturing Rebates, Other Business and Overhead 33 ($ In millions)

Home Entertainment HE Contribution from Flow/Library Product
Slower growth in Digital and Blu-ray sales of Flow / Library than assumed in prior year Mid-Range Plan HE Contribution from Flow/Library Product $254 $245 $235 $178 $169 $168 $168 Blu-ray contribution is growing at a 22% CAGR over the MRP period; Blu-ray contribution relative to total physical contribution is expected to grow from 26% in FYE11 to 53% in FYE14 Digital contribution is expected to grow at 3% CAGR over the MRP period 34 ($ In millions)

4/20/2017 Divisional Details Television

Television Market Update
4/20/2017 The TV market continues to provide opportunities for growth Networks Cable network revenues are expected to see continued growth There is increasing competition among media companies to roll out channels in new territories, but numerous opportunities still exist to launch new networks Production U.S. demand for dramas (i.e., procedurals) and comedies, including single camera, is on the rise; non-scripted is still in-demand but only a few series break-out International production is rapidly consolidating but opportunities still remain Distribution New digital players in the U.S. are acquiring content in the premium subscription window, creating additional customers for SPE Broadcast and cable partners are seeking expanded digital and cross-platform rights to remain competitive with emerging competitors

Television Key Strategies
4/20/2017 Strengthen Economics of Existing Businesses Keep SPT’s slate of original TV series on the air and generate substantial syndication profits Continue to Improve SET India’s ratings and financial position Broaden our youth brands and reinvigorate the SET brand in Latin America Pursue Growth Opportunities Continue to develop additional programs with Harpo utilizing The Oprah Winfrey Show, The Dr. Oz Show, and The Nate Berkus Show as launch platforms Accelerate or create new windows (e.g. Day/Date with DVD release, Home Theater) Continue to invest and expand in key and emerging markets with our branded networks, TV series development and production ventures, and distribution sales operations Pursue Sony United Collaboration Become the primary ad sales organization across Sony brand and platforms Utilize development, production and programming expertise to create content for Sony’s Networked devices

Domestic Distribution / Ad Sales
4/20/2017 Domestic Distribution / Ad Sales U.S. Distribution and Ad Sales Will contribute approximately $1.2 billion in revenue by FYE14 U.S. Distribution and Ad Sales - Net Revenue Strategic Priorities Launch Nate Berkus Build on the success of Dr. Oz to maximize Nate Berkus, Off-Net and digital ad sales Sell 4th cycle of Seinfeld and 1st cycle of ‘Til Death Maximize movie and TV library sales in Free TV and Basic Cable Leverage the most from emerging digital SVOD businesses Main Points: These are highly stable franchise properties that generate practically risk free profitability and cash flow ($ in millions)

International Distribution
4/20/2017 International Distribution Distribution Sales Will contribute over $1.4 billion in revenue by FYE14 Int’l Distribution Sales - Net Revenue Strategic Priorities Strengthen program portfolio Work closely with SPT Production to secure key network and cable dramas Explore English language, European content, co-production opportunities with U.S. network partner Maximize movie values Accelerate VOD and Pay TV windows to maximize total returns to SPE Wider international film releases and retention of international rights important in ability to maximize revenue Continue to push high-margin library sales Expand SPT’s presence in select emerging markets, e.g., Middle East, Africa Main Points: These are highly stable franchise properties that generate practically risk free profitability and cash flow ($ in millions)

Over 1,600 episodes produced per year
U.S. Production Current Program Lineup Over 1,600 episodes produced per year Scripted Non-Scripted Other Drama Comedy Game Show Reality/Talk MOWs / Mini Network Days of our Lives (NBC) Young & the Restless (CBS) Community (NBC) Rules of Engagement (CBS) Mr. Sunshine (ABC) Happy Endings (ABC) Mad Love (CBS) Shark Tank (ABC) The Sing-Off (NBC) Plain Jane (CW) Stone Cold: Innocence Lost (CBS) Ben Hur (ABC) Cable Breaking Bad (AMC) Rescue Me (FX) Damages (FX) Justified (FX) HawthoRNe (TNT) Drop Dead Diva (Lifetime) Franklin & Bash (TNT) My Boys (TBS) Big C (Showtime) Newlywed Game (GSN) Pretend Time (Comedy Central) Smokescreen (Lifetime) Marry Me (Lifetime) Sundays at Tiffany’s (Lifetime) Unanswered Prayers (Lifetime) Craigslist Killer (Lifetime) 19th Wife (Lifetime) Lies in Plain Sight (Lifetime) Bond of Silence (Lifetime) Devil’s Teardrop (Lifetime) Witchslayer (Syfy) Battle for Pegasus (Syfy) Red (Syfy) The Last Jinn (Syfy) Syndication Wheel of Fortune Jeopardy! Dr. Oz Nate Berkus

U.S. Production Current Series and Development
4/20/2017 U.S. Production Current Series and Development EBIT from Current Series and Development increases by $97 million over the MRP as several series move into syndication MRP Assumptions By FYE14 the US TV pipeline is refilled: 3 first-run syndication series including Dr. Oz and Nate Berkus Rules of Engagement, Community, Drop Dead Diva and Justified are in Off-Network Syndication Main Points: These are highly stable franchise properties that generate practically risk free profitability and cash flow ($ In millions)

U.S. Production New Series Investment & Development
4/20/2017 U.S. Production New Series Investment & Development New Series Investment & Development expense decreases by $16 million (26%) over the MRP Main Points: These are highly stable franchise properties that generate practically risk free profitability and cash flow Represents a component of current series financial results and is comprised of development expense and deficit pilots/series and EXCLUDES profitable series ($ In millions)

Maximizing the contribution to EBIT from our Core Programs
4/20/2017 U.S. Production Game Shows, Daytime Serials, and Library Product Maximizing the contribution to EBIT from our Core Programs MRP Assumptions Daytime Serials – lower contribution primarily due to restructured Canadian deal, weaker European currencies, and higher Y&R cost. Wheel of Fortune and Jeopardy! are renewed through Fall 2015 in some markets Production cost control and reduction efforts continue on all programs Digital distribution strategies continued to be pursued for the game shows (social media and other online games, mobile games, online interactive, etc.) Main Points: These are highly stable franchise properties that generate practically risk free profitability and cash flow ($ In millions)

EBIT grows at 48% CAGR over the MRP period
4/20/2017 International Production Financial Summary EBIT grows at 48% CAGR over the MRP period Key Factors Projected growth driven by production volume increase and aggressive format development for global exploitation Includes assumption of a “hit” light entertainment format Also includes further EBIT growth from start-ups and acquisitions of additional production companies., especially in the U.K. Anticipate profitability through shifting product mix towards light entertainment, while maintaining strong scripted presence in key territories FYE12 FYE13 FYE14 FYE11 EBIT Margin 7.3% 5.0% 7.1% 8.4% ______________________________________________________________________________________________ Revenues EBIT 44 ($ In millions)

477+ Million HH 140+ Countries 119 Feeds 22 Languages
Networks Network Brands 477+ Million HH Countries 119 Feeds 22 Languages General Entertainment Drama/Action Youth/Anime Digital Movies Other Investments 45 2

Networks Continued Earnings Growth
4/20/2017 Networks Continued Earnings Growth Networks EBIT grows by approximately $100m over the MRP period Networks Revenue Networks Revenue Networks EBIT Networks EBIT 17% CAGR EBIT Margin EBIT Margin 17.0% 16.5% 16.9% 17.8% 17.0% 16.5% 16.9% 17.8% ($ In millions)

Networks Strategic Priorities Continue to expand the business
Continue to launch channels to achieve scale and increase sales leverage and program buying power Secure programming supply through studio output deals and investment in original programming Invest in ad sales infrastructure Continue to invest in U.S. Channels (e.g., utilize the AXN brand) Convert most channels to HD by the end of FYE 14 Expand all of the linear brands in the digital space including the Crackle brand

Television Growth through Additional Investment
4/20/2017 SPT is exploring investments beyond those included in the MRP and will seek continued support to pursue these growth initiatives Opportunities to Strengthen Existing Assets Buy up control in GSN to consolidate earnings and control SPE’s largest U.S. cable asset Buy out partners in MSM to drive growth and allow full coordination with Sony United initiatives Opportunities to Expand in Key Strategic Markets Establish a local production presence in the UK through acquisition – likely to be in the range of $150 million to $1 Billion. Solidify US networks presence with potential investments in MGM, Ovation, Fuel and/or merger of GSN with Hallmark channels Drive Growth in Emerging Markets Through Acquisition or Start Up Further expand in emerging and growth markets in both the networks and production businesses Increase the scale of existing operations in emerging markets (e.g., India, Korea, Russia) Acquire or start up operations in new markets (Poland, Ukraine, Turkey)

4/20/2017 Financial Summary ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Financial Summary Overview
4/20/2017 Financial Summary Overview EBIT reaches $500m in FYE13 and $600m in FYE14 Growth is a 20% CAGR over the MRP period No monetizations or overall SPE challenge assumed in FYE13 or FYE14 EBIT margin improves to 6% by FYE14 Breakeven Net Cash Flow currently assumed for FYE12 Assumes $100m of new film financing and additional reductions of Motion Picture production spending Net Cash flow improves to $150m and $300m in FYE13 and FYE14, respectively General and administrative expenses grow by only a 1.2% CAGR over the four year period from FYE10 through FYE14 Excluding two areas of strategic growth, TV Networks and Int’l TV Production, total G&A expenses actually decrease by 3% from FYE10 to FYE14 as a result of the Cost Reduction efforts undertaken over the last two years ______________________________________________________________________________________________

Financial Summary Consolidated Revenues & EBIT
4/20/2017 Financial Summary Consolidated Revenues & EBIT SPE Revenues SPE EBIT 20% CAGR Note: FYE11 EBIT includes $23 million of restructuring costs from the FYE10 CRP ______________________________________________________________________________________________ 51 ($ In millions)

Financial Summary Consolidated EBIT
4/20/2017 ______________________________________________________________________________________________ ($ In millions)

Financial Summary Major Changes to EBIT from FYE11 to FYE12
4/20/2017 ______________________________________________________________________________________________ ($ In millions)

Financial Summary Motion Pictures - EBIT Summary
4/20/2017 ______________________________________________________________________________________________ ($ In millions)

Financial Summary Digital Production - EBIT Summary 4/20/2017
______________________________________________________________________________________________ ($ In millions)

Financial Summary Television - EBIT Summary 4/20/2017
______________________________________________________________________________________________ ($ In millions)

Financial Summary Consolidated Net Cash Flow
4/20/2017 ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ($ In millions)

4/20/2017 Closing ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Closing Summary SPE is significantly better positioned than it was seven years ago Over the last seven years, SPE has made significant progress growing and diversifying its sources of revenues, decreasing risk, and increasing success rates SPE has generated this success while decreasing overhead costs The industry is facing a changing landscape The demand for filmed entertainment remains high and continues to grow The business is becoming increasingly complex as the home entertainment consumption and distribution landscape changes SPE is navigating these changes well SPE’s creative process is working, we are investing prudently and we continue to manage costs In FYE11 and FYE12, as home entertainment evolves and SPE invests in new properties, we will face pressure on cash and profits, but will achieve EBIT goals and reach cash flow break-even In FYE13 and FYE14, as franchise films are released, TV shows reach syndication, and profits from our TV networks continue to grow, SPE will generate significant EBIT and cash flow

4/20/2017 Q & A ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

MID-RANGE PLAN SONY PICTURES ENTERTAINMENT September 30, 2010

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