Sony Pictures Digital Productions Mid-Range Plan September 8, 2011

FY12 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 Significant progress towards meeting strategic goals over the past three years SPA is executing on its objective of producing financially successful films with franchise potential SPA is executing on its objective of producing financially successful films with franchise potential 4 Open Season 9/29/06 Open Season 2 (DTV) 1/27/09 Open Season 3 (DTV) 1/25/11 * Note: Cloudy gross profit calculation excludes $47MM in legacy costs ** Note: Smurfs at current target -- $140MM DBO, $360MM IBO; excludes negative co-financier impact on GP (~$8.0MM) ***Note: Smurfs target of $500MM WWBO Open Season Franchise: DTVs increased original Open Season film margin from 2% to 9% Cloudy Margin: 15%* Smurfs Margin: 18%**

Digital Productions Significant progress towards meeting strategic goals over the past three years Imageworks has dramatically improved its performance by re-sizing the business, increasing efficiency, growing its satellites, improving support for SPA & Columbia and focusing on fewer, larger projects Imageworks has dramatically improved its performance by re-sizing the business, increasing efficiency, growing its satellites, improving support for SPA & Columbia and focusing on fewer, larger projects 5 *Note: Due to lower cost structure to execute on $155MM revenue business, Imageworks was able to generate a $5.8MM GP in a down revenue year **Note: Q2 Forecast

Digital Productions Strategic Priorities Strategic priorities for SPDP include: Strategic priorities for SPDP include: Serve as the hub for family films at SPE, which require a unique sensibility and writing approach Serve as the hub for family films at SPE, which require a unique sensibility and writing approach Develop more consistent film output to reduce financial volatility Develop more consistent film output to reduce financial volatility Produce two franchise-potential films a year (CG animated + live-action hybrid), with flexibility to add a third film if needed: Produce two franchise-potential films a year (CG animated + live-action hybrid), with flexibility to add a third film if needed: Success of Smurfs and Cloudy’s strong performance warrant development of those properties as theatrical sequels rather than DTVs Success of Smurfs and Cloudy’s strong performance warrant development of those properties as theatrical sequels rather than DTVs Theatrical sequels perform better than the originals for these films, particularly internationally. On average, international box for animated theatrical sequels has generated 2.2 times the revenue of domestic box since 2004 Theatrical sequels perform better than the originals for these films, particularly internationally. On average, international box for animated theatrical sequels has generated 2.2 times the revenue of domestic box since 2004 Work closely with Home Entertainment to realize upside potential for titles like Smurfs that over-perform: Work closely with Home Entertainment to realize upside potential for titles like Smurfs that over-perform: During its first 8 weeks in the U.S., Despicable Me sold 6.4MM units; Alvin & The Chipmunks: The Squeakquel sold 3.7MM units. Smurfs has a conservative target of 2.25MM units for the first 8 weeks in the U.S. During its first 8 weeks in the U.S., Despicable Me sold 6.4MM units; Alvin & The Chipmunks: The Squeakquel sold 3.7MM units. Smurfs has a conservative target of 2.25MM units for the first 8 weeks in the U.S. 6

Digital Productions Strategic Priorities (cont.) Expand revenues from merchandising, licensing and promotions to realize full franchise potential of these films Expand revenues from merchandising, licensing and promotions to realize full franchise potential of these films Produce shorts opportunistically from theatrical properties to deepen brand awareness pre- or post-theatrical release plus create new revenue streams from the property Produce shorts opportunistically from theatrical properties to deepen brand awareness pre- or post-theatrical release plus create new revenue streams from the property Franchise extension The Smurfs : A Christmas Carol will aid sell-through of the film and then broadcast on TV worldwide, generating revenue and sustaining the property awareness in on and off-film years. Consumer Products is also leveraging the short to help re-launch merchandise during the upcoming holiday season Franchise extension The Smurfs : A Christmas Carol will aid sell-through of the film and then broadcast on TV worldwide, generating revenue and sustaining the property awareness in on and off-film years. Consumer Products is also leveraging the short to help re-launch merchandise during the upcoming holiday season Additional Smurfs, Hotel T and Pirates! shorts are under discussion Additional Smurfs, Hotel T and Pirates! shorts are under discussion Aggressively expand Vancouver to continue to reduce overall costs for SPA and Columbia films in competitive marketplace Aggressively expand Vancouver to continue to reduce overall costs for SPA and Columbia films in competitive marketplace Discover additional sources of EBIT through exploring new lines of business that are closely related to the core businesses. Self-fund to significantly reduce these start-up costs Discover additional sources of EBIT through exploring new lines of business that are closely related to the core businesses. Self-fund to significantly reduce these start-up costs 7

9 Sony Pictures Animation Strategic Focus and Progress Strategic FocusProgress To-Date Build profitable franchises from strong brands that can be executed as either theatrical or DTV sequels: High-end CG animated films Mid-tier CG animated films Live-action/animation hybrids Released live-action hybrid The Smurfs to strong success (#1 film in North America after first five days in release; #1 total international gross for 4 consecutive weekends. Already, Smurfs is the top live-action hybrid family film ever released internationally) Hotel Transylvania in production Smurfs: A Christmas Carol is produced; 22 minute franchise extension Released successful DTV Open Season 3 Actively developing Smurfs and Cloudy sequels Several promising projects currently in priority development based on either well-known brands or concepts with strong franchise potential: Popeye, Familiars and Ninja vs. Samurai Reduce production budget to compensate for eroding home video market Reduce production CG animation budget by 10-15%, excluding 3D Shepherd Aardman relationship CG animated Arthur Christmas in post- production Stop motion Pirates! in post-production Actively developing Pirates! sequel Actively developing Nick Park’s Cavemen United project Realize fuller set of revenue opportunities Increase merchandising, licensing and promotional opportunities by working closely with Consumer Products Group Support Sony Electronics’ initiatives Cloudy, Open Season and Smurfs characters have been key elements in Sony Electronics’ marketing and promotional campaigns. Seek similar opportunities with Hotel T and all upcoming properties

SPA is focused on these following films in production: SPA is focused on these following films in production: Arthur Christmas: Aardman, CG animated (3D) Arthur Christmas: Aardman, CG animated (3D) In post-production Directors: Sarah Smith; Script: Peter Baynham (Academy Award nominee for Borat) Pirates!: Aardman, Stop-Motion (3D) Pirates!: Aardman, Stop-Motion (3D) In post-production Director: Peter Lord Hotel Transylvania: High-end, CG animated (3D) starring Adam Sandler Hotel Transylvania: High-end, CG animated (3D) starring Adam Sandler In production Directors: Genndy Tartakovsky; Producer: Michelle Murdocca The Smurfs: A Christmas Carol: High-end CG + 2D (hand-drawn) animation / 22 minute original content value-add piece for Smurfs DVD release and TV The Smurfs: A Christmas Carol: High-end CG + 2D (hand-drawn) animation / 22 minute original content value-add piece for Smurfs DVD release and TV Recently completed Director: Troy Quane; Producer: Kurt Albrecht Sony Pictures Animation Franchise Development 10

Sony Pictures Animation Franchise Development (cont.) 11 Smurfs 2: Smurfs 2: Live-action hybrid Producer: Jordan Kerner; Writer: Karey Kirkpatrick Cloudy 2: Cloudy 2: CG animated Directors: Cody Cameron, Kris Pearn; Producer: Kirk Bodyfelt Executive Producers: Phil Lord, Chris Miller; Writers: John Francis Daley, Jonathan Goldstein Familiars: Familiars: CG animated (based on the book published by Harper Collins) Director: Doug Sweetland; Co-Director: Fergal Reilly Executive Producers: Sam Raimi, Josh Donen; Writers: Adam Epstein, Andrew Jacobsen Popeye: Popeye: CG animated (based on the iconic property) Executive producer: Avi Arad Ninja vs. Samurai: Ninja vs. Samurai: CG animated Director: Jerome Chen; Producer: Michelle Murdocca Executive Producers: Avi Arad, Ari Arad; Writers: Adam Goldberg, Chris Bishop

Sony Pictures Animation Franchise Development (cont.) 12 Muncle Trogg Muncle Trogg: CG animated Executive Producer: Jane Startz Planet Pete: Planet Pete: CG animated Directors: Butch Hartman Executive Producer: Fred Seibert; Writers: Kathyrn Price, Nicole Millard Pooch Café: Pooch Café: CG animated Executive Producers: Gil Netter, Bridget McMeel, John Glynn; Writer: Kelly Asbury (Gnomeo & Juliet) Kazorn and the Unicorn: Kazorn and the Unicorn: CG animated Executive Producers: Sam Raimi, Josh Donen; Writer: Lloyd Taylor Instant Karma: Instant Karma: Live-action hybrid Producer Terry Rossio; Writer: Paul Hernandez Raised by Ghosts: Raised by Ghosts: Live-action hybrid Producer: Chuck Gordon; Writer: Mark Perez

13 Sony Pictures Animation Release Schedule FY12 Q2  Smurfs (Hybrid) (7/29/11) Q3  Arthur Christmas (11/23/11) Q4  Pirates (3/30/2012) Q2  Smurfs (Hybrid) (7/29/11) Q3  Arthur Christmas (11/23/11) Q4  Pirates (3/30/2012) FY13 Q2  Hotel T (9/21/12) Q2  Hotel T (9/21/12) FY14 Q2  Smurfs 2 (Hybrid) (8/2/13)  Cloudy 2 (September 2013) Q2  Smurfs 2 (Hybrid) (8/2/13)  Cloudy 2 (September 2013) FY15 Q2  TBD Hybrid FY15 (August 2014)  TBD Animation FY15 (September 2014) Q2  TBD Hybrid FY15 (August 2014)  TBD Animation FY15 (September 2014)

Serve SPA and Columbia as a dependable source of high- quality digital animation and VFX expertise Serve SPA and Columbia as a dependable source of high- quality digital animation and VFX expertise Further reduce costs by aggressively expanding Vancouver, where we enjoy a 58.4% tax rebate on labor Further reduce costs by aggressively expanding Vancouver, where we enjoy a 58.4% tax rebate on labor Maintain industry leadership in innovation and quality Maintain industry leadership in innovation and quality Continue to use large 3 rd party projects (e.g. OZ, Green Lantern, Alice in Wonderland ) as a means to reduce SPA and Columbia production cost (less gap cost, shared overhead, shared R&D, stronger talent pool) Continue to use large 3 rd party projects (e.g. OZ, Green Lantern, Alice in Wonderland ) as a means to reduce SPA and Columbia production cost (less gap cost, shared overhead, shared R&D, stronger talent pool) Commercialize technology as appropriate to create new sources of revenue Commercialize technology as appropriate to create new sources of revenue 15 Imageworks Strategy

Aggressively expand Vancouver to fully leverage its 58.4% tax rebate on labor: Aggressively expand Vancouver to fully leverage its 58.4% tax rebate on labor: Add additional artist groups (color and lighting) and expand size of existing departments Add additional artist groups (color and lighting) and expand size of existing departments Projected to reach office capacity of 135 employees by February 2012 Projected to reach office capacity of 135 employees by February 2012 Plan and execute second-stage expansion to double capacity by the end of CY12 Plan and execute second-stage expansion to double capacity by the end of CY12 Reduce rates charged by India facility following the buy-out of our partners by the end of FY12 Reduce rates charged by India facility following the buy-out of our partners by the end of FY12 Given the instability of the New Mexico tax rebates and lack of talent, assess closing the Albuquerque facility and shift capacity to Vancouver at the end of FY12 Given the instability of the New Mexico tax rebates and lack of talent, assess closing the Albuquerque facility and shift capacity to Vancouver at the end of FY12 Imageworks Strategic Objectives – Expand Vancouver 16

The growing number of artists in Vancouver will complete an increasingly larger share of work relative to Culver City: The growing number of artists in Vancouver will complete an increasingly larger share of work relative to Culver City: At the same time, Imageworks has reduced its expensive Culver City real estate footprint (in sq ft) by 44% since FY08, a net cost reduction of ~$4MM/year, while increasing density in TCSOB At the same time, Imageworks has reduced its expensive Culver City real estate footprint (in sq ft) by 44% since FY08, a net cost reduction of ~$4MM/year, while increasing density in TCSOB Imageworks Strategic Objectives – Expand Vancouver 17 CAGR : 44%

Imageworks Strategic Objectives – Large 3 rd Party Projects Continue to target large 3 rd party projects (e.g., OZ, Alice in Wonderland, Green Lantern and G-Force) to improve profitability and reduce volatility Continue to target large 3 rd party projects (e.g., OZ, Alice in Wonderland, Green Lantern and G-Force) to improve profitability and reduce volatility Leverage director relationships to generate future business (Sam Raimi, Tim Burton) Leverage director relationships to generate future business (Sam Raimi, Tim Burton) Continue to be recognized for industry-leading work, at a competitive price Continue to be recognized for industry-leading work, at a competitive price Oscar nomination for Alice in 2010 (Imageworks’ first since Spider-Man 2 in 2005) was a critical factor in securing the VFX work from Disney for OZ Oscar nomination for Alice in 2010 (Imageworks’ first since Spider-Man 2 in 2005) was a critical factor in securing the VFX work from Disney for OZ Imageworks’ accolades during the past year also included a BAFTA and ‘Annies’ nom and a Golden Satellite win for its work in Alice. Imageworks also won a Lumiere Award for its pioneering work in 3D Imageworks’ accolades during the past year also included a BAFTA and ‘Annies’ nom and a Golden Satellite win for its work in Alice. Imageworks also won a Lumiere Award for its pioneering work in 3D 18

Imageworks Strategic Objectives – Make Imageworks technology the industry standard and monetize where appropriate 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 extends its leadership in Open Source, driving the Alembic partnership with ILM Imageworks extends its leadership in Open Source, driving the Alembic partnership with ILM New image-based lighting pipeline lowered costs while improving quality for both Smurfs and Green Lantern New image-based lighting pipeline lowered costs while improving quality for both Smurfs and Green Lantern Pending adoption of G-Mail will dramatically lower costs while adding significant collaboration tools Pending adoption of G-Mail will dramatically lower costs while adding significant collaboration tools Exploit opportunities to monetize our technology – e.g., royalties from Foundry for commercialization of our Katana technology Exploit opportunities to monetize our technology – e.g., royalties from Foundry for commercialization of our Katana technology 19

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 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 Services provided included: Services provided included: Senior leadership and resources to support Sony Corp. initiatives in both Culver City and Tokyo Assistance for Columbia 3D logo, Zookeeper and Here Comes the Boom Custom animation for Smurfs TV marketing campaign (e.g., characters appearing on America’s Got Talent, McDonalds commercials) 20 Imageworks Strategic Objectives – Sony Corp & Columbia Resource

22 Maximize unique lower-cost synergies with Imageworks to deliver industry-leading support to internal clients at below-market rates Maximize unique lower-cost synergies with Imageworks to deliver industry-leading support to internal clients at below-market rates Lower-than-anticipated costs enabled Interactive to rebate $2MM back to SPE Marketing over the past two years Lower-than-anticipated costs enabled Interactive to rebate $2MM back to SPE Marketing over the past two years Lowered costs by relocating business unit to TCSOB Lowered costs by relocating business unit to TCSOB Opportunistically self-fund and explore closely-related, high-margin businesses: Opportunistically self-fund and explore closely-related, high-margin businesses: Produce social game based on SPA property, relying heavily on unit’s pre-existing experience in social media as well as gap-time of artists to reduce overall start-up costs Produce social game based on SPA property, relying heavily on unit’s pre-existing experience in social media as well as gap-time of artists to reduce overall start-up costs Based on results of first game, expand business by launching a new title each year Based on results of first game, expand business by launching a new title each year Game infrastructure can be re-used by SPE Digital Marketing for other promotional games, dramatically reducing their per-game costs Game infrastructure can be re-used by SPE Digital Marketing for other promotional games, dramatically reducing their per-game costs Produce interactive book based on SPA property, providing higher- level interactivity in an arrangement with one (or more) publishers as a prelude to opportunistically publishing in-house Produce interactive book based on SPA property, providing higher- level interactivity in an arrangement with one (or more) publishers as a prelude to opportunistically publishing in-house Expand 3 rd party business to continue to reduce overall cost for internal clients, mirroring successful Imageworks’ model Expand 3 rd party business to continue to reduce overall cost for internal clients, mirroring successful Imageworks’ model Imageworks Interactive Strategy

MRP Financial Projections

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Financial Appendix

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