confidential sony pictures entertainment mid range plan – october 4, 2012

CONFIDENTIAL SONY PICTURES ENTERTAINMENT MID RANGE PLAN OCTOBER 4, 2012

Agenda Executive Summary SPE Divisional Details Television Motion Pictures Digital Productions Home Entertainment Financial Summary Closing Q&A 2

EXECUTIVE SUMMARY 3

SPE continues to deliver strong company performance; however, currency fluctuations and the carry-forward impact of under-performing films prevent SPE from maintaining the projections in its prior MRP Television offers multiple opportunities for growth The networks business will strategically manage its current assets and identify select investment opportunities to capitalize on market growth The production and distribution business is increasing the number of returning domestic series and building its international team to develop a new hit format The film industry is navigating a new economic model Consumer tastes are shifting; action and family genres remain strong, but PG domestic comedies are giving way to R-rated comedies Production and talent costs remain high across the industry Domestic cinema admissions are declining but are offset by higher ticket prices Admissions and ticket prices are growing in emerging markets, but such territories offer relatively meager ancillary revenues There is a continuing shift to lower margin home entertainment models, however, the decline in sell-through appears to be leveling off New models for digital distribution continue to gain traction and have superior margins to their physical counterparts Executive Summary 4

Executive Summary (continued) SPE is also faced with internal challenges Carry-over impact in the MRP period of underperforming films from FYE12 and FYE13 Reduced contribution of international TV production to the MRP due to management relaunch and fewer show commissions than previously anticipated However, with its well-balanced portfolio of television and film businesses, SPE expects to achieve $725M of EBIT and $456M of Net Cash Flow (1) by FYE16 (1) Net Cash Flow excludes strategic investment spend for the MSM India and GSN Buy-Up 5

SPE Key Strategic Initiatives Manage the shift in consumption of home entertainment by driving incremental transactions and higher margin models New windows New distribution partners New business models Focus on franchises to drive profitability of motion pictures Invest capital to expand the high margin television networks business Become the premier independent producer of television content Create compelling U.S. content with global appeal to maximize hit potential Develop local content in international markets that can be exploited across multiple territories Exploit attractive economics of cable production Continue cost reduction efforts Operating costs, e.g., production, talent, and marketing Overhead costs Manage the business to maximize cash 6

One Sony: SPE is also supporting Sonys strategic initiatives SEN / PS+ 4K and 3D Emerging Markets Creating exclusive offers and providing content to drive transactions and subscriptions Leveraging Crackle content and expertise Providing marketing and promotions inventory Evangelizing the benefits of 4K and 3D to the film and TV community Identifying 4K content to support sales of 4K hardware Managing the 3D Technology Center Co-promotions, e.g., The Smurfs in Latin America and The Amazing Spider-Man / Sony Mobile in India and China Content bundles, e.g., limited edition This Is It / Michael Jackson Sony Walkman in Latin America Shared Services Expanding the benefits of SPEs shared service centers to include Sony Global Treasury and Sony Electronics Cloud Media Services Creating a new service business for Sony based on SPE-generated technology Incubating the new business on the SPE lot 7

By FYE16, two thirds of SPE EBIT will be generated by the TV business EBIT by Division Total TV = 57% Total TV = 67% 8

DIVISIONAL DETAILS Television 9

Growth opportunities exist across the television industry The global number of television households continues to grow There are a greater number of distribution customers in the marketplace Affiliate fees are generally stable; ad sales have rebounded since the 2008 downturn, although economic conditions in some territories have slowed growth International consumption of U.S. TV dramas continues to be strong SVOD customers are creating greater demand for studio content The television industry also faces a number of challenges European economic issues have slowed the growth of the ad sales market in many territories Studio programming prices are expected to rise creating margin pressure on networks Volatility of foreign currencies creates uncertainty for predicting financial results in U.S. dollars Competition across the global TV industry remains strong Television Market Update 10

Industry Trends: U.S. TV consumption continues to increase Source: BMO Capital Markets. Total Household Hours of TV Viewing Per Day U.S. 11

Industry Trends: Television networks are key profit drivers for all media conglomerates Time WarnerDisneyNews CorpViacom Television Networks as a Percentage of Conglomerate Profit (1) Source: SEC filings and wall street research. (1)Profit calculated as operating income, LTM as of 6/30/2012 12

Industry Trends: Emerging markets have the strongest outlook for growth TV Subscription and Ad Revenues: 2012E 2016E CAGR 2012E Revenue ($BN) Source: PWC. $79$168$83$40$15 4.3% 5.7% 8.8% 9.6% 10.0% Western EuropeNorth AmericaAsiaCentral & Eastern Europe LatAM 13

Television Business Overview Sony Pictures Television Production Networks Distribution Development, acquisition, and production of television programs for broadcast, basic cable, and premium cable networks Program genres include scripted comedies and dramas and non-scripted reality, talk, and game shows Sale of SPEs film and television content to television and digital customers Customers include U.S. and international broadcast and cable networks, U.S. local television stations, and digital services, e.g., Netflix Management and distribution of branded networks and channels worldwide International brands include AXN, SET, and Animax 14

Television Highlights Television EBIT ($MM) 15% CAGR Total Television EBIT is expected to grow by $295 million (53%) over the MRP period All TV businesses contribute to this growth; in particular, Networks anticipates earnings of $503 million by FYE16 (CAGR of 23%) U.S. Production will have 29 shows on the air this year with 11 shows in the U.S. off-net syndication window during the MRP period U.S. Production current series annual profits are projected to exceed $200 million in the MRP period Gross distribution sales of SPEs library of content are projected to exceed $2.5 billion by FYE16 15

Develop new content and keep SPTs domestic slate of original TV series on the air to drive substantial syndication profits Focus on maximizing operational efficiencies for networks and international TV production Generate more international local language TV series with the intent of creating a global hit Grow Crackles U.S. ad business by increasing investment in its infrastructure Television Strategic Priorities Strengthening economics of existing businesses 16

Television Strategic Priorities Pursue Growth Opportunities Build on syndication success (The Dr. Oz Show) to expand with A-list talent (Queen Latifah) Capitalize on opportunities with emerging SVOD players (e.g., Netflix, Amazon, Hulu) to drive incremental value for new and library product for film and TV Expand in key markets with our branded networks, local and international TV series, and production ventures Complete a regional channel acquisition in India and pursue channel acquisitions in other select markets Continue to invest in international production companies that create content with specific focus on the UK but also possibly in Scandinavia, Israel, Australia and other content rich territories; in addition, identify potential opportunities to expand into emerging markets with strong TV growth potential where SPT does not currently have a presence 17

Become the primary ad sales organization across Sony Draw on SPEs development, production and programming expertise to create content for Sonys networked devices Leverage our significant and expanding networks presence in India and Latin America to benefit Sony as a whole Utilize our networks global reach to assist in marketing initiatives Television Strategic Priorities Pursuing One Sony Collaboration 18

Secured partnership with Harpo and successfully launched The Dr. Oz Show Highest volume of primetime series in a decade; #1 producer of returning scripted cable series U.S. Production Current Series New Series Returning Series 15 21 20 26 28 Highest volume year in SPT history with 13 stand-alone profitable series More new comedy series than any other studio Highest volume year in SPT history with 13 stand-alone profitable series More new comedy series than any other studio Rules of Engagement sold in syndication 7 shows on 2011 primetime fall schedule Broadcast programming on 6 of 7 nights of the 2011 fall schedule Rules of Engagement sold in syndication 7 shows on 2011 primetime fall schedule Broadcast programming on 6 of 7 nights of the 2011 fall schedule 29 Community sold to SVOD and Cable 4 new series premiering on all 4 major broadcast networks Community sold to SVOD and Cable 4 new series premiering on all 4 major broadcast networks 35

Over 1,600 episodes including programming for top broadcast and cable networks U.S. Production Current Programs 20

U.S. Production Current Series, Pilots & Development Significant contribution from current series as they enter off-network syndication Rules of Engagement sold to Netflix and U.S. syndication market for Fall 2012 Community sold to Comedy Central and U.S. syndication market for Fall 2013 launch. Already sold to Hulu with an initial availability in FYE12 Build on our syndication success with new Queen Latifah series for Fall 2013 Initial off-net syndication availabilities for Happy Endings, Last Resort, Mob Doctor, Big C and Justified in FYE14 and Franklin and Bash in FYE15 MRP Assumptions EBIT from Current Series, Pilots & Development ($ in Millions) $73 $84 $120 $109 $0 $20 $40 $60 $80 $100 $120 $140 FYE13FYE14FYE15FYE16 21 Excludes Wheel of Fortune, Jeopardy!, Days of Our Lives and Y&R

Wheel of Fortune and Jeopardy! are renewed through 15/16 season The Young and the Restless is renewed through 12/13 season and Days of Our Lives is renewed through 13/14 season Production cost control and reduction efforts continue on all programs U.S. Production Library, Game Shows and Daytime Serials MRP Assumptions Maximizing the contribution to EBIT from Core Programs $253 $248 $258 $271 EBIT ($ in Millions) 22

Culver City Miami (Latin America & U.S. Hispanic market) Bogota Rome Paris London (WW Production capacity) Hilversum Cologne Moscow (Russian speaking market) Beijing Hong Kong (Asia market excl Japan) Sao Paolo Dubai (Arabic speaking market) Beirut Cairo International Production Operating Companies Production companies in 13 countries around the world covering multiple regions; to date, SPT productions have aired in 88 countries and 73 languages 23

Continue to exploit Who Wants to Be a Millionaire and develop a stable base of other successful formats Make more focused and sustained investment in development executives, producers, production companies, and new content especially in the UK The acquisition of Left Bank gives SPE a stronger foot-hold in the UK Foster a more creative culture to develop intellectual property by: Realigning the organization, including a new President and a creative head Combining the print sales and format sales teams to better serve our buyers Creating a strategically centralized development fund Implementing a competitive incentive plan Simplify administrative and operational processes International Production Key Initiatives to Drive Earnings Growth The current MRP is based upon more reasonable expectations for the volume of series and margins that can be achieved with both internally developed and acquired product 24

EBIT Margin (without monetization) 2%3%6%5% International Production Financial Summary MRP Assumptions ($ in Millions) Who Wants to Be a Millionaire continues to be a major profit contributor with format license and ancillary profit budgeted at $16 million FYE13 EBIT includes $11 million from Shine monetization escrow funds Organic growth from existing operating companies is supplemented by EBIT contributions from recent acquisitions Left Bank and Silver River Revenue EBIT Shine Monetization FYE13 FYE14 FYE15 FYE16 25

Distribution Gross Revenue ($ in Millions) Secure long-term deals in key territories Capitalize on opportunities with emerging SVOD players across the globe Maximize value of TV series off-net syndication (e.g., Rules of Engagement, Community, Happy Endings, Last Resort, Mob Doctor) Distribution Continue to Grow Distribution Sales MRP Assumptions Generate over $2.4 billion in gross revenue in FYE13, of which 59% is from Motion Pictures product $2,408 $2,490 $2,443 $2,527 26

Networks Network Brands SET GENERAL ENTERTAINMENT AXN GENERAL ENTERTAINMENT ANIME/YOUTH LIFESTYLE/MUSIC DIGITAL MOVIES PARTNER NETWORKS Highly successful network brands benefiting from global infrastructure 27

Networks Networks Worldwide Reach mobile 28

Networks Growth Opportunities Europe Asia / Australia Latin America U.S. Italy Movie Channel True Movies UK acquisition AXN Movies Central Europe SET Germany India regional channels acquisition (Maa TV) Korean movie channel Asia drama channel Australia channel Crackle Latin America womens channels TV Asia U.S. Hindi general entertainment channel 29

Focus next 18 months on maximizing efficiencies in existing operations Continue to selectively launch channels in new and existing territories Increase investment in Crackle U.S. advertising and technical infrastructure Volatility of foreign currencies has had a particularly harsh impact on Networks earnings Networks Strong and Consistent Earnings Growth EBIT reaches over $500 million in FYE16, growing at a 23% CAGR over the MRP period EBIT Revenues MRP Assumptions EBIT Margin: 17.4% 16.7% 18.2%19.5% Networks Revenue and EBIT ($ in Millions) 30

As a result of recent investments, North America and Europe grow as a percentage of Networks EBIT from 24% in FYE13 to 36% in FYE16 Networks EBIT by Region 31

TV Trailers 32

DIVISIONAL DETAILS Motion Pictures 33

Motion Pictures Industry Challenges In 2011, U.S. theatrical attendance was down 4% vs. 2010 and 20% since the peak in 2002, however this is offset by increasing ticket prices Changes in audience tastes and composition continue to challenge slate strategy 3D as a percentage of overall box office has declined since its peak in 2010 International box office growth, particularly in Russia, Korea, Brazil, and China, brings limited benefit from ancillary revenues Home Entertainment sell-through performance is down approximately 42% since FYE07 and is projected to be off by 52% by the end of FYE16 Pressure exists on pay TV output deals as channels focus more on original programming Slate financing is less available due to uncertainty in financial markets 34

Motion Pictures Opportunities Big-budget franchise films continue to perform well and are profitable for studios The Chinese market now includes more foreign product and has better revenue shares for distributors Average print costs continue to decease as the digital screen roll-out continues Digital home entertainment distribution has attractive margin and is growing, although it has not offset the declines in physical sell-through Talent are open to new deals that defer more of their compensation until after the studio reaches break-even Genre films, including faith-based, are benefiting from new media, such as social networking, to generate interest 35

Industry Trends: Most major studios are decreasing their film slates 2006 2012E Releases 31 23 14 14 37 17 19 14 17 19 Note: Release counts exclude all specialty labels except Screen Gems and its equivalents (i.e. New Line, Fox Searchlight, and Touchstone). Source: Box Office Mojo, BMO 2012, and SPE Corp Dev analysis. 06 12E CAGR: (5%) Major Studio Film Slates Over Time 27 19 36

Industry Trends: The major studios are focusing on tentpole films 06 12 CAGR: 11% Number of Tentpole Films (Production Budgets Over $100MM) Source: the-numbers.com and Box Office Mojo, SPE Corp Dev analysis. (1) Includes estimates for films with 2012 release dates. % of top 20 Films over $100mm 12%17%20%26%21%15%17% (1) 37

Industry Trends: Franchises are at the center of each studios strategy In addition, studios are achieving success with family films and R- rated comedies 38

Forecast: Over the MRP period, North American admissions are expected to remain fairly flat International admissions are expected to grow, particularly in Asia and Latin America; International box office is also expected to benefit from increasing ticket prices Theatrical Market Update Global Box Office and Admissions Update 2012 to Date: Year to date, North American BO is about 4% higher than 2011 and admissions are up about 3% Average ticket price has also hit an all- time high of $8.12 Source: MPAA Theatrical Market Statistics 2011 Report, issued February 2012; SPR Market Share Report as of September 17, 2012; Paul Dergarabedian. Hollywood.com U.S. Box Office and Admissions Intl Box Office and Admissions (Box office and admissions in billions) 39

Motion Pictures Emerging Market Box Office Performance BrazilRussia ChinaSouth Korea 16%/yr 7%/yr 22%/yr 10%/yr 40%/yr 21%/yr 5%/yr ($Millions, % CAGR) Source: PwC Global Entertainment and Media Outlook 2012-2016. 40

Chinas quota for films with U.S. studio revenue share has been increased from 20 to 34 films per year 14 additional films must be large format or 3D The revenue share cap for U.S. films has been increased from 13% up to 25%; the cap for Sino-American co-productions is 35%-43% The number of screens in China is rapidly growing 1,500 screens in 2002 to over 9,000 in 2011 (22% per year growth) Projections for 11,800 screens by 2012 and 20,000 by 2015 There are currently only 13 screens per million people in China vs. 127 in the U.S., suggesting that there is substantial potential for further growth Theatrical Market Update Growth in China 41

Motion Pictures Benefits of Digital Cinema 42 Total Variable Release Print Costs for a Typical SPE Film Slate Assumes a constant slate (19 films all 100 minutes: 12 Col, 2 SPA, 4 Screen Gems, 1 Acquisition) with a constant number of prints for each Dollars (millions) Notes: Cost per print includes VPF, printing/duplication, keys, and inter and intra country shipping; Other print costs excluded from amounts above, such as trailers, print preparation, mastering, and localization costs; Cost per 35mm print are pre-rebate and advances; International print costs use constant FX rate of 1.25 to $1.00. Source: SPE analysis.

Source: Sony Pictures Releasing Theatrical Market Update 3D Films In the U.S., 3D as a percentage of total box office is declining across most genres Family/animation has decreased from about 55% in 2011 to about 40% in 2012; this decline is driven by price sensitivity as well as children struggling with 3D effects and glasses Live action/adult-oriented content is also declining from about 65-70% in 2011 to about 50% in 2012; within this category, action films are now at around 45% and rated-R/horror is at about 60% Over the next year action is expected to remain flat while family and rated- R/horror are more likely to decline a bit further The international market is experiencing similar 3D erosion to the U.S., but is tracking a few years behind; thus, international percentages are still higher in most categories Beyond market trends each title must be evaluated individually to plan the optimal 2D/3D releasing pattern 43

The Amazing Spider-Man exceeded box office expectations, successfully re-launching the studios most important and valuable franchise 21 Jump Street was a success and will turn into a new franchise for the studio. In addition, it is SPEs highest grossing title on internet VOD + Electronic Sell-through Bad Teacher was highly profitable and could be a model for a low budget, risk-sharing approach to some of our films The Vow and Think Like A Man (SG) showcased the upside potential for well-executed targeted films Smurfs (SPA/Col) launched a new global family franchise and created many opportunities for cross- Sony collaboration Courageous (SPWA) highlighted the value of a faith-based strategy 44 Motion Pictures Over the past 18 months, there have been bright spots amongst all the labels

Despite being favorably reviewed, both Aardman films, The Pirates! Band of Misfits and Arthur Christmas, struggled at the box office The box office for Jack & Jill and Thats My Boy were both significantly below historical levels achieved from past Adam Sandler films Total Recalls worldwide box office results suffered from a very crowded summer slate Men-in-Black 3 did not achieve its aggressive box office assumptions. It had strong competition from Avengers, which dominated the month of May, and did not get the 3D lift internationally. Unseasonably warm weather hurt the European openings Motion Pictures However, there were some disappointments 45

Motion Pictures Strategy Selecting the right product Ensure the right volume and mix of titles which takes advantage of current consumer preferences Making films at the right price Reduce development spending Revamp the greenlight process, requiring higher hurdle rates for approvals Continue to negotiate talent deals that result in a participation interest at the point when the film is profitable to SPE Reduce production costs, including the continuation of shooting in locations with tax incentives/rebates Look for alternative deal financing structures Reducing theatrical marketing and distribution costs Includes leveraging the worldwide releasing organization to support 3 rd party deals Reducing overall overhead and cost structure 46

Motion Pictures Proper Mix of Titles Tentpole and franchise films with significant profit potential Character-driven genre films Lower budget films of varying genres (e.g., comedy, romantic comedy) with higher ROI and potential for breakout success Films targeted to proven movie-going demographics (e.g., baby-boomers, families, women 17 to 34) Focus on younger, promising talent Directors Lord and Miller, M Webb, R Fleisher, Nick Refn and Seth Rogen Talent Channing Tatum, Andrew Garfield, Emma Stone, Seth Rogen, Jonah Hill 47 Columbia will focus on a reduced number of large productions and will supplement the slate with low-budget films

Numerous titles are in negotiation, active development or production with an eye toward release in the next few years Spider-Man Ghostbusters White House Down Uncharted Mortal Instruments Annie Invertigo Untitled Cameron Crowe Royal Wedding 21 Jump Street Amazing Spider-Man sequel is planned for FYE15, two years after the reboot Skyfall and Bond 24 are included New franchises, such as Mortal Instruments and 21 Jump Street 2, are promising Motion Pictures Franchise and Targeted Films Continue our focus on franchise films and films targeted to proven movie-going demographics 48

Motion Pictures Production Spending Production Spending ($MM) * * Excludes Film Financing Benefit Franchise/Tentpole filmsAll other films $898 $858 $955 $927 $972 $960 Motion Pictures production spending is more heavily skewed towards franchise/tentpole films and we continue to generate cost efficiencies and minimize cost overruns Utilizing technology to gain time and reduce costs Setting lower cost targets for production; walking away if not met Minimizing cost overruns by managing release date pressures 49

Project SpendingTerm Deals Controlling both commitments and spending based on slate needs Limit new projects Continue to sign one-step writing deals (i.e., separate writing deals for each draft) or reduce rates where possible Continue to eliminate non- productive term deals Target projects to specific slots in the release schedule Development Spending ($MM) Motion Pictures Development Spending $73 $61 $58 Investing in fewer productions with a focus on both lower cost films and major franchise films with an effort to decrease overall development spend 50 At $58MM, development spending will be the lowest in over 10 years

Worldwide print and advertising expenses have been reduced by $200MM over the MRP Period FYE13 has seen moderate growth in the U.S. ad market (up 2% over the prior year) which negatively impacts theatrical ad spending SPE continues to fully leverage our media relationships and partnerships, increasing the number of promotional deals over the past year SPE will continue to pursue cost savings opportunities including the use of in- show promotional time Smurfs integrated into Americas Got Talent, interacting with the judges and introducing a clip of the film Hotel Transylvania on Food Networks Cupcake Wars Here Comes the Boom on The Ultimate Fighter Motion Pictures Managing Marketing and Distribution Spend 51

APRIL MAY JUNE JULY DECEMBER JANUARY FEBRUARY MARCH AUGUST SEPTEMBER OCTOBER NOVEMBER Captain Phillips $85 About Last Night $45 Grown Ups 2 $135 Smurfs 2 [3D] $125 Elysium $125 Mortal Instruments $60 American BS (Dom only) $40 By Dom Box Office $90MM += 6 Films $70MM - $85MM= 2 Films $45MM - $65MM= 3 Films $0MM - $40MM= 3 Films Robocop $115 Battle of the Year [3D] $40 No Good Deed $35 2 Guns (Intl only) Evil Dead $45 Columbia (8 films) SPA (1 film) Screen Gems (4 films) Motion Pictures FYE14 Release Slate Acquisitions (2 films) After Earth $160 End of the World $75 White House Down $150 52

Focus direct-to-Video (DTV) productions on sequels of recently released theatrical or successful DTV product Increase volume of theatrically released product with the majority from distribution fee only deals Continue to focus on Faith based product and pursue high-profile International all-rights acquisitions Acquisitions EBIT ($MM) FYE13FYE14 * FYE16FYE15 Margin20%17%15% Acquisitions Maximize Financial Contributions Able to maintain strong margins despite greater competition and difficult conditions in the Home Entertainment market *FYE14 includes a $10m operational challenge 53 FYE15 & FYE16 EBIT reflects lower fees on output deals due to increased competition and a greater number of theatrical releases (i.e., more P&A in the year)

Motion Picture Trailers 54

DIVISIONAL DETAILS Digital Productions 55

Digital Productions Key Strategies Develop high-margin, family-friendly franchises Create diverse slate featuring high-end CG-animated films and live-action hybrids with strong franchise potential Reduce production budgets to offset home video erosion, providing greater upside in success Maximize ancillary revenue streams to enhance films core profitability by collaborating early with other SPE divisions Maintain Imageworks quality while continuing to reduce overall costs Serve as a resource for Sony Corporation SPA continues to create characters used in Sony Electronics marketing/promotions Provide 3D and VFX production expertise to SPE and Sony Corporation Sony Pictures Digital Productions includes an in-house animation company (Sony Pictures Animation) and a special effects business (Imageworks) which services SPE and third parties 56

Sequels to 2011s global blockbuster The Smurfs and 2009s surprise CG animated hit, Cloudy with a Chance of Meatballs are both in production Smurfs 2 is set to release on July 31, 2013 Cloudy 2: Revenge of the Leftovers is scheduled for a Fall 2014 release Producing 22 minute Smurfy Hollow as part of the home entertainment release for Smurfs 2 to augment sell-through Follows the success of The Smurfs A Christmas Carol, which utilized a similar strategy Projects in priority development are either well-known brands or have strong franchise potential; they include: Alf, based on the popular 80s show still aired globally in 74 markets Popeye, based on the iconic property (Genndy Tartakovsky, Hotel T, is attached to direct) Kazorn & the Unicorn (Kelly Asbury, Shrek 2, is attached to co-direct) Digital Productions SPA Developing Profitable Franchises

Digital Production SPA - Production Spending MRP Assumptions ($ in Millions) Production spending varies based upon the number and timing of SPA releases o $74MM reduction from FYE13 to FYE14 driven by more production titles in FYE13 (Hotel T, Smurfs 2, Cloudy 2) vs. FYE14 (FYE15 TBD Animation, Smurfs 3) Measures taken to reduce production spend: o Continue to plan film as much as possible in pre-production (storyboards, pre-viz sequences) to execute in production efficiently o Seek economies in assets and production environments (e.g., reuse character models for background characters; simply change colors of houses to create diversity in scenes, etc) Annual development spending of $18MM is included in all years of the MRP Production Spending 58

Digital Productions Imageworks Maintain Leadership in Quality While Offering Market Competitive Pricing Serve SPA and Columbia as dependable source of high-quality digital animation and VFX expertise at lower cost: Completed production on Columbias tentpoles The Amazing Spider-Man and Men in Black 3 Completed production on SPAs Hotel Transylvania in less than a year In production on Disneys March 2013 tentpole Oz: The Great and Powerful Secure third-party work (Disneys Oz) as a means to reduce SPA and Columbia production cost (shared overhead, shared R&D, stronger talent pool) Continue to shift artists to the Vancouver facility, leveraging 58.4% tax credit on labor to continue to lower costs 59

DIVISIONAL DETAILS Home Entertainment 60

Home Entertainment Market Update Rental Decline in rental transactions driven by significant reduction in brick & mortar, including the bankruptcy of Blockbuster, partially offset by increase in VOD However, lower margin rental models expected to continue to gain share at the expense of higher-margin sell- through models Sell-through and rental transactions are expected to decline over the MRP period, but subscription VOD services such as Netflix and Amazon are driving up overall consumption WW Home Entertainment Market (Transactions 1 ) Trx (Billions) % Rental 71% 72%74% 75% 76%77% Source: Screen Digest (Fixed US$ exchange rate @ CY11 annualized rate) Notes: 1. Does not include Netflix streaming 61 Rental Sell-Through

Home Entertainment Market Update Over the MRP period, a continued decline in sell-through consumer revenues will be partially offset by higher rental consumer revenues A continued decrease in transactions and price erosion are driving a 31% decrease in sell-through consumer revenues from CY11-16 Rental consumer revenues (excluding subscription VOD) are expected to increase by 7% from CY11-16 due to the growth in the higher margin VOD WW Home Entertainment Market (Consumer Revenues 1,2 ) Dollars (Billions) Rental Sell-Through 35% 36% 37%38%40%42%45%47%49% Source: Screen Digest (Fixed US$ exchange rate @ CY11 annualized rate) Notes: 1. Does not include Netflix streaming 2. Beyond decline in consumer sell-through revenues, studio economics are being further pressured on underlying wholesale margins 62 % Rental

Home Entertainment Initiatives SPHE is focused on maximizing margins and maintaining flexibility Maximize performance across a) physical and digital formats and b) sell-through and rental transactions, with a focus on higher margin models Continue to scale the business for efficiencies, while shifting resources to areas with the most profit or growth potential SPHE will pursue success via four key initiatives: Refine Global Organization: continue to optimize territory operations, while developing executive capability and talent Grow Digital Ownership: Capitalize on growing consumer demand, build on strong relationships with distribution partners, and emphasize higher-margin models Build a better ownership model through enhancements such as UV and increased interactivity Develop the White-Space: leverage awareness from theatrical marketing during the time that has traditionally existed between theatrical and home entertainment releases Reduce Overhead: use a variety of measures including reorganizations, conversion of certain territories to licensing territories, salary freezes and other 63

Digital Physical 69% 31% $1,071 $1,382 $1,237 $1,246 30% 70% Worldwide MRP Contribution ($MM)* * Contribution includes WW New Media and Traditional VOD; excludes SVOD Home Entertainment Contribution by Format The percentage contribution from Digital remains flat over the plan period as Motion Pictures is releasing titles that skew more heavily towards sell-through 28% 29% 72%71% Motion Pictures film slate mix and timing impact the year-over-year changes in the total Home Entertainment contribution 64

Home Entertainment - Digital Capitalizing on the growing demand for digital Industry CAGR % (2011-15F)*Digital Market DynamicsSPHE Approach Residential VOD (e.g., Cable, Satellite) 10.7% Already at scale; competing for time with other digital models Main levers have already been pulled (e.g., day & date, HD) Electronic Sell- Through 20.7% Continued growth in demand Increased number of tablets and connected devices which stimulates digital consumption Continue to define the right price and window for EST Improve EST product features, including improving/expanding Ultraviolet Internet VOD (e.g., iTunes) 26.5% Fastest growth model, driven by being the lowest cost / highest convenience consumer offering Capitalize on growing demand, e.g., retailer and territory expansion Establish new high-margin models (e.g., premium VOD) Continue to support by using aggressive marketing tactics to secure placement Note: *Consumer Revenues from Screen Digest (Aug 2012) 65

Home Entertainment VOD Market Growth Source: Rentrak OnDemand Essential, Screen Digest, SPHE Commercial Planning & Innovation. Average Per Title VOD Revenue for Top 20 Titles Millions +71% 66

Flow / Library Contribution ($MM) Physical contribution is expected to decline at a 6% CAGR from $70M in FYE13 to $58M in FYE16 Digital contribution is expected to grow at an 8% CAGR from $34M in FYE13 to $43M in FYE16 Home Entertainment Contribution from Flow/Library Product 45% 48%37%44%43%42%43%44% Margin: Although contribution from flow/library product has declined from peak years, SPHE forecasts it can maintain contribution above $100M per year through the MRP period 67

FINANCIAL SUMMARY 68

Revenue EBIT 7% CAGR 13% CAGR EBIT Margin 5.8% 6.1% 6.9% (1) Net Cash Flow (1) 45% CAGR (1) Net Cash Flow excludes strategic investment spend for the MSM India and GSN Buy-Up Financial Summary Consolidated Revenues, EBIT, & Net Cash Flow ($ In millions) 69

Financial Summary Overhead Reductions Establishing the Asia Pacific shared service center to support SPE and Sony Electronics Asia Pacific Major modification to the employee medical plan Imageworks is further expanding the utilization of its Vancouver facility which benefits from a 58% tax rebate on labor Salary freeze or cuts in Home Entertainment and Motion Pictures HE converting Greece and India to licensing territories HE reorganizing the operations team HE shifting resources from physical to digital and/or integrating between physical and digital where appropriate Motion Pictures and Home Entertainment continue to identify opportunities to use joint ventures for distribution Transitioning Sony Global Treasury Services (SGTS) to SPE European and Asia Pac shared service centers Continuing to reduce the overall real estate office footprint Evaluating the outsourcing of residuals and U.S. payroll Continuing to identify further opportunities to outsource or relocate other U.S.-based Corporate functions to our Poland and Asia Pacific shared service centers Excluding two areas of strategic growth, TV Networks and Intl TV Production, total G&A expenses decrease by 0.3% over the MRP period as a result of continued cost reduction efforts $38 $60 $70 Annualized Overhead savings by Year ($ In millions) 70

Financial Summary Operating Income by Division ($ In millions) 71

Financial Summary Major Changes to EBIT from Prior Plan ($ In millions) 72

($ In millions) Financial Summary Television Operating Income Summary 73

($ In millions) Financial Summary Motion Pictures Operating Income Summary 74

Financial Summary Digital Productions Operating Income Summary ($ In millions) 75

Financial Summary Consolidated Net Cash Flow ($ In millions) 76

Financial Summary Consolidated Net Cash Flow Pursue film slate financing opportunities and tax credits Aggressive collection of receivables Employ strong cash management efforts Factor receivables as necessary SPE continues to aggressively pursue all opportunities to improve cash flow 77

Financial Summary Initiatives to Increase U.S. Taxable Income SPE Finance and Sony Tax are actively involved in identifying opportunities to increase SPEs U.S. taxable income For tax purposes, changed to a straight-line method for amortization of film cost which will allow SPE to accelerate U.S. taxable income U.S. taxable income for each of the next 3 years will be approximately $1 billion higher than it would have been under the alternative film cost amortization methodology Will facilitate Sonys utilization of existing NOL and tax credit carry-forwards before they expire Legal entity rationalization project, starting with Europe, to reduce administrative costs and reduce risk by simplifying the overall legal structure Project is also anticipated to provide the opportunity to reduce foreign withholding taxes by approximately $20 million per year Since a lower amount of foreign tax credits will be generated, it increases Sonys ability to utilize existing tax credit and NOL carryforwards Actively monitoring transfer pricing agreements to maximize pre-tax income in the U.S. 78

CLOSING 79

Closing Summary Despite market challenges, SPE has maintained strong operations TV is driving two-thirds of studio profit and has great potential for further growth The film industry is faced with the challenges of shifting economics and changing consumer tastes, but SPE has the right strategies in place to navigate the transition By investing in key growth businesses, SPE will continue to generate increasing EBIT and cash over the MRP period and beyond 80

Q&A 81

confidential sony pictures entertainment mid range plan – october 4, 2012

Documents

new models

distribution business

spe key strategic initiatives

new hit format

prior mrp television

local content

crackle content

international markets