Sony Pictures Digital Productions Mid-Range Plan October 6, 2009

FY10 Mid-Range Plan Strategy Strategy Overview Overview Sony Pictures Animation Sony Pictures Animation Imageworks Imageworks Imageworks Interactive Imageworks Interactive MRP Financial Projections MRP Financial Projections Financial Appendix Financial Appendix

Strategy Overview

Digital Productions Strategic Objectives SPDP’s strategic objectives are: SPDP’s strategic objectives are: Produce financially successful CG animated films at a significantly lower cost than either Pixar/Disney or Dreamworks Produce financially successful CG animated films at a significantly lower cost than either Pixar/Disney or Dreamworks Remain a VFX leader and serve as a ‘net cost’ resource for Columbia Remain a VFX leader and serve as a ‘net cost’ resource for Columbia 4

Digital Productions Strategic Benefits to the Studio Digital Productions benefits the studio’s: Digital Productions benefits the studio’s: Overall release strategy Overall release strategy SPA’s family-oriented animated and hybrid films are critical to SPE in a challenging industry environment (family constitutes 5 of the top 10 films to date in 2009) SPA’s family-oriented animated and hybrid films are critical to SPE in a challenging industry environment (family constitutes 5 of the top 10 films to date in 2009) Cloudy’s box office success indicates the potential for these films Cloudy’s box office success indicates the potential for these films Profitability Profitability Imageworks’ 3 rd party VFX business lowers production cost and increases quality for SPA and Columbia Imageworks’ 3 rd party VFX business lowers production cost and increases quality for SPA and Columbia Marketing Marketing Imageworks Interactive continues to deliver industry-leading sites and digital campaigns to internal clients at below market costs Imageworks Interactive continues to deliver industry-leading sites and digital campaigns to internal clients at below market costs 5

Digital Productions Overview Challenges for SPDP include: Challenges for SPDP include: Achieving consistent level of SPA output, while managing pre-greenlight costs Achieving consistent level of SPA output, while managing pre-greenlight costs Continued price pressure on Imageworks as studios seek to contain costs Continued price pressure on Imageworks as studios seek to contain costs Continue to shift Imageworks’ workforce to lower cost satellite facilities Continue to shift Imageworks’ workforce to lower cost satellite facilities 6

Sony Pictures Animation Why Family and Why Animation? Family is one of the most popular global genres in the theatrical and DVD markets Family is one of the most popular global genres in the theatrical and DVD markets In success, CG animated films retain the upside In success, CG animated films retain the upside CG animated family films lend themselves to theatrical or DVD sequels, which tend to have high margins CG animated family films lend themselves to theatrical or DVD sequels, which tend to have high margins Live-action hybrids can also have significant, high-margin revenue upside (e.g., Alvin & the Chipmunks) Live-action hybrids can also have significant, high-margin revenue upside (e.g., Alvin & the Chipmunks) 8

9 Sony Pictures Animation Strategy & Progress Strategic FocusProgress To-Date Create diverse production slate featuring: High-end CG films Mid-tier CG films Live-action hybrids Direct-to-Video (DTV) Released high-end CG Cloudy to early box office success; Hotel Transylvania in pre-production Live-action hybrid Smurfs in pre-production Released DTV financially successful Open Season 2; fast-tracked Open Season 3 Considering ideas for Cloudy sequel Identifying other films from several promising projects currently in priority development Completed significant development deals Shepard Aardman relationship Arthur Christmas and Pirates! have been greenlit Aardman has been collaborating closely with SPA and Imageworks in pre-production on Arthur Christmas Developing future projects to be brought to the U.S. with Nick Park, creator of Wallace & Gromit Mitigate risk of titles in production by seeking 3 rd party financing Continuing to explore financing opportunities Develop ancillary revenue opportunities Working closely with Marketing to identify significant consumer products licensing opportunities

10 Even modestly successful theatrical CG animated films can become profitable franchises: Open Season 2 has a 39% profit margin ($23.8MM Gross Profit) Even modestly successful theatrical CG animated films can become profitable franchises: Open Season 2 has a 39% profit margin ($23.8MM Gross Profit) Direct to Videos (DTVs) can be opportunistically released theatrically overseas, which also enhances their home entertainment performance Direct to Videos (DTVs) can be opportunistically released theatrically overseas, which also enhances their home entertainment performance Open Season 2 & 3 lifts the overall profitability of the franchise to 10.9% ($48MM Gross Profit) Open Season 2 & 3 lifts the overall profitability of the franchise to 10.9% ($48MM Gross Profit) DTV also provides an excellent training ground for emerging creative talent DTV also provides an excellent training ground for emerging creative talent Cloudy is the next property to be considered for DTV or theatrical release Cloudy is the next property to be considered for DTV or theatrical release Strategy – Franchises

SPA is focused on these following films in production and pre-production: SPA is focused on these following films in production and pre-production: Open Season 3 Open Season 3: DTV In production In production Voice Talent: Mike Epps returning as voice for “Boog” (Tentative) Voice Talent: Mike Epps returning as voice for “Boog” (Tentative) Smurfs: Live-action hybrid (under discussion for 3D) Smurfs: Live-action hybrid (under discussion for 3D) In pre-production In pre-production Director: Raja Gosnell; Producer: Jordan Kerner (Charlotte’s Web); Script: J. David Stern, David N. Weiss (Shrek 2, Jimmy Neutron); Polish: Audrey Wells (George of the Jungle) Director: Raja Gosnell; Producer: Jordan Kerner (Charlotte’s Web); Script: J. David Stern, David N. Weiss (Shrek 2, Jimmy Neutron); Polish: Audrey Wells (George of the Jungle) Hotel Transylvania: High-end, CG animated (3D) Hotel Transylvania: High-end, CG animated (3D) In pre-production In pre-production Director: Jill Culton; Producer: Michelle Murdocca Director: Jill Culton; Producer: Michelle Murdocca Arthur Christmas: Aardman, CG animated (3D) Arthur Christmas: Aardman, CG animated (3D) In pre-production In pre-production Directors: Sarah Smith, Barry Cook; Script: Peter Baynham (Academy Award nominee for Borat) Directors: Sarah Smith, Barry Cook; Script: Peter Baynham (Academy Award nominee for Borat) Pirates!: Aardman, Stop-Motion (3D) Pirates!: Aardman, Stop-Motion (3D) Sony Pictures Animation Diversified Slate 11

Sony Pictures Animation Diverse Slate Development 12 Changelings: Changelings: CG animated Director: Brian Pimental; Producers: Kevin Lima & Chris Chase Dark Samurai: Dark Samurai: CG animated Director: Jerome Chen; Producer: Michelle Murdocca, Executive Producer: Avi Arad; Writer: Mark Frost Familiars: Familiars: CG animated Executive Producers: Sam Raimi, Josh Donen Hip Hop: Live-action hybrid Hip Hop: Live-action hybrid Producers: Peter Abrams & Andrew Panay (Wedding Crashers) Going South: CG animated Going South: CG animated Adam Sandler project Cloudy 2: Cloudy 2: CG animated DTV

13 Sony Pictures Animation Development Relationships Development relationships focus on identifying future films from which other franchises can emerge: Development relationships focus on identifying future films from which other franchises can emerge: First look deal with Gotham Group First look deal with Gotham Group First look deal with Fred Seibert First look deal with Fred Seibert Development deal with Avi Arad (1 project, 2 pending) Development deal with Avi Arad (1 project, 2 pending) In discussions with Henry Selick In discussions with Henry Selick In discussions with Peter Baynham on an exclusive animation writing deal In discussions with Peter Baynham on an exclusive animation writing deal

FY10 Q2  Cloudy with a Chance of Meatballs (09/18/09) Q2  Cloudy with a Chance of Meatballs (09/18/09) FY11 Q4  Open Season 3 DTV (Jan 2011) Q4  Open Season 3 DTV (Jan 2011) FY12 Q2  Smurfs (Hybrid) (7/29/11)  Hotel T (9/20/11) Q3  Arthur Christmas (11/11/11) Q4  TBD DTV FY12 (Jan 2012 ) Q2  Smurfs (Hybrid) (7/29/11)  Hotel T (9/20/11) Q3  Arthur Christmas (11/11/11) Q4  TBD DTV FY12 (Jan 2012 ) FY13 Q2  TBD Animation FY13 (9/28/12) Q3  Pirates (Fall 2012) Q4  TBD DTV FY13 (Jan 2013) Q2  TBD Animation FY13 (9/28/12) Q3  Pirates (Fall 2012) Q4  TBD DTV FY13 (Jan 2013) FY14 Q1  TBD Hybrid FY14 (Hybrid) (5/15/13) Q2  TBD Animation FY14 (9/20/13) Q4  TBD DTV FY14 (Jan 2014) Q1  TBD Hybrid FY14 (Hybrid) (5/15/13) Q2  TBD Animation FY14 (9/20/13) Q4  TBD DTV FY14 (Jan 2014) FY15 Q1  TBD Aardman FY15 (5/16/14) Q2  TBD Animation FY15 (9/19/14) Q3  TBD Hybrid FY15 (Fall 2014) Q4  TBD DTV FY15 (Jan 2015) Q1  TBD Aardman FY15 (5/16/14) Q2  TBD Animation FY15 (9/19/14) Q3  TBD Hybrid FY15 (Fall 2014) Q4  TBD DTV FY15 (Jan 2015) FY16 Q2  TBD Animation FY16 (9/18/15) Q3  TBD Hybrid FY16 (Fall 2015) Q4  TBD DTV FY16 (Jan 2016) Q2  TBD Animation FY16 (9/18/15) Q3  TBD Hybrid FY16 (Fall 2015) Q4  TBD DTV FY16 (Jan 2016) 14 Sony Pictures Animation Release Schedule

Development Spending FY10-FY13 15 Holding development spend within historic levels while supporting an expanded and diversified slate Holding development spend within historic levels while supporting an expanded and diversified slate FY10-FY13 Development Spending Budget ($000)

Serve SPA and Columbia as a dependable source of digital animation and VFX expertise Serve SPA and Columbia as a dependable source of digital animation and VFX expertise Maintain industry leadership in quality Maintain industry leadership in quality Become even more price competitive: Become even more price competitive: Bring down overall labor costs further through minimizing artist gap time and recruiting lower cost talent Bring down overall labor costs further through minimizing artist gap time and recruiting lower cost talent Simplify production technology and standardize software tools to increase efficiency Simplify production technology and standardize software tools to increase efficiency Reduce real estate cost through more efficient use of Imageworks’ space Reduce real estate cost through more efficient use of Imageworks’ space Continue to shift work to satellites in tax and cost advantaged areas (New Mexico and India) while exploring Vancouver in depth as an additional satellite location Continue to shift work to satellites in tax and cost advantaged areas (New Mexico and India) while exploring Vancouver in depth as an additional satellite location Continue to use 3 rd party work as a means to reduce SPA and Columbia production cost (less gap cost, shared overhead, shared R&D, stronger talent pool) Continue to use 3 rd party work as a means to reduce SPA and Columbia production cost (less gap cost, shared overhead, shared R&D, stronger talent pool) 17 Imageworks Strategy

Continue to focus on renewed relationship with Columbia as a critical resource for VFX expertise Continue to focus on renewed relationship with Columbia as a critical resource for VFX expertise All services provided internally are at ‘net cost’ All services provided internally are at ‘net cost’ Providing early support for Spiderman 4, including access to character models, pre-visualization and 3D tests Providing early support for Spiderman 4, including access to character models, pre-visualization and 3D tests Providing last-minute post-production services for This Is It Providing last-minute post-production services for This Is It Produced test for Battle LA Produced test for Battle LA Provided resources for Columbia to more effectively evaluate external VFX bids for Green Hornet Provided resources for Columbia to more effectively evaluate external VFX bids for Green Hornet Serving the studio – and company – as the “go to” resource on 3D through availability of key staff, technology and facilities Serving the studio – and company – as the “go to” resource on 3D through availability of key staff, technology and facilities Key collaborator on the studio’s digital backbone project Key collaborator on the studio’s digital backbone project 18 Imageworks Strategic Objectives – Columbia Resource

Imageworks Strategic Objectives – Clients and Technology Strengthen relationship with large studio clients – Disney and Warner Bros. – increasing the amount of business from these sources as well as improving overall facility utilization Strengthen relationship with large studio clients – Disney and Warner Bros. – increasing the amount of business from these sources as well as improving overall facility utilization Use innovative technology and partnerships to increase efficiency, reduce development costs, and position Imageworks’ technology as the industry standard Use innovative technology and partnerships to increase efficiency, reduce development costs, and position Imageworks’ technology as the industry standard Imageworks’ Open Source initiative, the first of its kind for a major VFX house, has already seen significant adoption Imageworks’ Open Source initiative, the first of its kind for a major VFX house, has already seen significant adoption Prospective partnership with the Foundry, an industry-leading VFX software developer, creates immediate savings from free or significantly reduced access to their suite of software as well as shared development Prospective partnership with the Foundry, an industry-leading VFX software developer, creates immediate savings from free or significantly reduced access to their suite of software as well as shared development 19

Aggressively utilize satellite production to further reduce overall cost and become more price competitive on internal and third party bids Aggressively utilize satellite production to further reduce overall cost and become more price competitive on internal and third party bids India is well-positioned to do increasing amount of 3D work India is well-positioned to do increasing amount of 3D work Revenues have increased 32% in FY10 while costs have been held flat from prior year Revenues have increased 32% in FY10 while costs have been held flat from prior year Note: Prior management negotiated what is expected to be a $2.5-$4.5MM total payout to minority partners occurring in FY11 & FY12 Note: Prior management negotiated what is expected to be a $2.5-$4.5MM total payout to minority partners occurring in FY11 & FY12 New Mexico has been fully integrated into bids, taking full advantage of the state tax credit New Mexico has been fully integrated into bids, taking full advantage of the state tax credit Substantial share of recent 3 rd party bids for Zookeeper and Green Lantern were based in New Mexico Substantial share of recent 3 rd party bids for Zookeeper and Green Lantern were based in New Mexico SPA productions are also relying on the facility more heavily SPA productions are also relying on the facility more heavily Explore creation of a satellite facility in Vancouver to take advantage of 50% effective tax credit on labor and deep local talent pool Explore creation of a satellite facility in Vancouver to take advantage of 50% effective tax credit on labor and deep local talent pool Imageworks Strategic Objectives – Satellite Production 20

21 Imageworks Cost Savings FY08-FY13 Imageworks has dramatically reduced non-billable costs by increasing production efficiency and also trimmed non-essential overhead Imageworks has dramatically reduced non-billable costs by increasing production efficiency and also trimmed non-essential overhead $3MM ahead of plan in FY10 $3MM ahead of plan in FY10 FY08-FY13 Non Billable Costs Budget vs. Actuals, ($000) CAGR, FY08-FY13: -38.6%

Over MRP period, Imageworks becomes less dependent on VFX work relative to prior years Over MRP period, Imageworks becomes less dependent on VFX work relative to prior years 22 Imageworks Revenue Mix FY10-FY13 FY0-FY13 Imageworks Composition of Revenues, $(000)

24 Deliver industry-leading support to internal clients at below market rates: Deliver industry-leading support to internal clients at below market rates: Continue close collaboration with SPE’s Digital Marketing to assist in development of digital strategy and execute on best of breed sites and campaigns Continue close collaboration with SPE’s Digital Marketing to assist in development of digital strategy and execute on best of breed sites and campaigns Investigate shifting an appropriate share of workforce to Canada in tandem with Imageworks’ evaluation of building an additional satellite facility Investigate shifting an appropriate share of workforce to Canada in tandem with Imageworks’ evaluation of building an additional satellite facility Further develop 3 rd party business to reduce overall cost for internal clients while serving as a source of innovation, mirroring Imageworks model Further develop 3 rd party business to reduce overall cost for internal clients while serving as a source of innovation, mirroring Imageworks model Imageworks Interactive Strategy

MRP Financial Projections & Headcount Summary

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Financial Appendix

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