Studio Bid To Bill IT Funding Request 5/16/12

Business Areas Impacted Executive Summary Business Areas Impacted Post Production, Colorworks, Studio Services Business Problems Processes are primarily manual, labor intensive, redundant, and vary widely by line of business Lack of controls lead to time consuming, costly errors and inaccurate billings Difficult to provide detailed, timely analysis / reports to support operational and financial decision making Disparate systems make it difficult to get consolidated view of the business and add to IT maintenance and support costs Solutions Re-engineer, standardize and consolidate existing processes Implement system-based preventative and detective controls Re-design financial postings and reporting to provide more detail Implement a single software platform for all groups 2

Project Funding We are seeking $2.8M of additional funding ($300K was already approved and spent during the discovery phase) Project to deliver work on three tracks Business Transformation Finance GL Redesign and Reporting Systems Consolidation and Implementation Selected ScheduAll as vendor solution ScheduAll will require enhancements to deliver all requirements ScheduAll to provide professional services in addition to the software licenses New interfaces will be needed SAP to provide new GL interface for improved billing and revenue recognition TAAS to provide new interface for improved detailed labor cost booking Sony to provide IT and business resources to support the implementation 1 Change Management / Business Process Re-engineering Project Director 1 Change Management / Business Process Re-engineering Business Analyst 1 IT Project Director 1 IT Project Manager at 75% 1 IT Business Analysts 2 IT Business Analysts at 50% 3

Projected Cost and Benefit Summary for Overall Project Project Costs Software: $ 185K Hardware $ 25K Internal Labor: $ 373K External Labor: $ 2.3M Discovery (spent): $ 300K Total Projected Costs: $ 3.1M Project Benefits - 5 Years Hard Benefits: (revenue enhancement) $ 5.7M Hard Benefits: (Cost Reduction) $ 2.7M Hard Benefits: (FTE Saving) $ 590K Soft $ Benefits (Efficiencies): $ 907K Total Benefits – 5 Years: $9.9M Seven-year Summary and Payback Seven-year total costs: $ 4.4M Seven-year total benefits: $ 9.9M Seven year net benefit: $ 5.5M Internal Rate of Return 35.3% Net present value @ 10%: $ 2.5M Payback: 22Mo’s Funding Needed FY13 $ 2.0M Funding Needed FY14 $ 800K Total Funding Request $ 2.8M Previous Funding $ 300K 4

Business Advisory Group System Implementation Operational Improvement Resource Plan Steering Committee Executive Sponsors Charlie Falcetti Steve Andujar Ron Mcnair Business Advisory Group Richard Kirkland Tom Hershey Steve Cross Ivan Gueron Core Team Project Management Mark Swonger Bernie Leypold System Implementation Lead – Jeff Rollo Team – Jason Helvey, Justin Nicola & TBD Operational Improvement Lead – Mark Swonger Team – Alice Tu Finance Lead – John Guenther Team – Alice Tu, Jalal Lalani Key User / SMEs

Project Timeline

Progress To Date Extensive functional requirements documentation and scope definition Mapped all “as is” processes in scope and identified pain points/issues Analysis and evaluation of software vendors and service providers Analysis and conference room pilots with short-listed vendors – MediaPulse, ScheduALL, and SAP SAP lacks automated workflow to match in-house Bid 2 Bill processes; industry experience; and ultimately will be more costly from an implementation standpoint MP application is clunky and buggy; user experience would suffer ScheduALL had best product and demo experience; users were generally happy with what they saw and functionality gaps are not insurmountable Redesigned G/L interface with SAP Identified Studio Finance / Operational reporting requirements

Sony currently using ScheduAll in Post Production Sound Competitive Analysis Sony currently using ScheduAll in Post Production Sound Technicolor using ScheduAll Comcast / E! using ScheduAll Sony DADC using Media Pulse Paramount using Media Pulse CBS Television City using Media Pulse