1. SONY PICTURES ENTERTAINMENT Analyst Meeting
9/10/2018
SONY PICTURES ENTERTAINMENT
DRAFT as of 12 Nov 10 at 12:30pm
SONY PICTURES ENTERTAINMENT Analyst Meeting
November 19, 2010

2. Chairman & Chief Executive Officer Sony Pictures Entertainment
Michael Lynton
Chairman & Chief Executive Officer Sony Pictures Entertainment

3. SPE is diversified across multiple revenue streams
2018/9/10
SPE is diversified across multiple revenue streams
Demand for our content is growing
SPE’s footprint is expanding
Home Entertainment consumption is shifting
SPE is navigating these changes well
SPE remains focused on financial discipline
SPE is the only major studio owned by an electronics company, which creates distinct advantages
SPE is core to Sony’s 3D strategy
Our primary lines of business are:
-Motion pictures which includes the Columbia, Screen Gems and Sony Pictures Classics labels as well as our Worldwide Marketing and Distribution team and our Columbia TriStar Home entertainment group
-Television which includes both domestic and international operations and;
-Sony Pictures Digital whose operations range from animated film production and special effects to broadband delivered entertainment
You will hear greater detail on all of these throughout the presentation.

4. SPE is Diversified Across Multiple Business Lines
Motion Pictures
Television Production
Television Networks

5. Demand for Content is Growing
Box Office
TV Viewership
US Box Office(1) US$ Billions
Usage per US TV HH per Day(2) Hours: Minutes
MPAA, BMO Capital Markets
Nielsen, and BMO Capital Markets 4

6. Motion Pictures
2010 is SPE’s tenth straight year with over $1BN in North American box office
Eight #1 movie openings in 2009 and six to date in 2010
Four films over $250 million in worldwide box office in 2009 and three to date in 2010
73 #1 openings in the U.S. over last 10 years, more than any other studio
Strong slate of upcoming releases
Multiple franchise films in production

7. Upcoming Releases Columbia
The Tourist Angelina Jolie, Johnny Depp
How Do You Know? Paul Rudd, Reese Witherspoon, Jack Nicholson, Owen Wilson
James L. Brooks (D)
Green Hornet Seth Rogan, Jay Chou, Cameron Diaz
D = Director
TBU

8. Upcoming Releases Columbia
Just Go With It Adam Sandler, Jennifer Aniston
Battle: Los Angeles Michelle Rodriguez, Aaron Eckhart, Bridget Moynahan

9. Upcoming Releases Screen Gems
Burlesque Cher, Christina Aguilera
Country Song Tim McGraw, Gwyneth Paltrow, Leighton Meester
The Roommate
Leighton Meester, Minka Kelly

10. ‘Event’ Films in the Pipeline
Plans in place for new films from existing franchises
Spider-man 4
Men in Black 3
Resident Evil 5
Underworld 4
Expanding relationships in animation
Aardman partnership brings us Arthur Christmas and The Pirates!
Introducing new franchises
The Girl with the Dragon Tattoo in production and rights to the rest of the Stieg Larsson series secured

11. 3D at the Box Office 3D remains a growth driver
Uplift has varied based on geography and genre
Internationally, 3D has performed more consistently
In the U.S., 3D is generating incremental box office, but with less uniformity of appeal
Young male-oriented films generally perform best in 3D (e.g., Resident Evil: Afterlife)

12. Motion Pictures Trailers
Green Hornet “Kato-vision” in 3D
The Tourist
How Do You Know
The Smurfs
Zookeeper 11

13. Television Large and growing global footprint
Continued investment in international production and networks
In the U.S., SPT has 25 series on the air across 13 broadcast and cable networks this season, including 6 new shows
“The Dr. Oz Show” was renewed for 3 more years, in many cases replacing “The Oprah Winfrey Show” beginning in 2011
“The Dr. Oz Show” has also been sold in 100 territories and being produced in local language in China, Russia and Saudi Arabia

14. Expansion of Networks Globally
477+ Million HH
140+ Countries
mobile
mobile
mobile
mobile
mobile
119 Feeds
22 Languages

15. International Television Production Expanding Presence
Hilversum
London
Cologne
Moscow
Paris
HUASO
Culver City
New York
Rome
Madrid
Beijing
Miami
(Latin America/USH)
Hong Kong
AMERICAS
Argentina - Buenos Aires 2waytraffic International
Brazil - Sao Paulo Floresta
Colombia - Bogota Teleset
USA - Culver City SPT, International Production
USA - Miami SPT, Latin America
USA - New York 2waytraffic Mobile
Bogota
Sao Paolo
FLORESTA
Buenos Aires
EUROPE
France - Paris SPT, France, Starling
Germany - Cologne SPT, Germany
Italy - Rome Toro
Netherlands - Hilversum 2wayTraffic, 2waytraffic Mobile, Tuvalu Media
Russia - Moscow SPT, Russia
Russia - Moscow Lean-M
Spain - Madrid Toro
UK - London SPT, 2waytraffic International, Gogglebox Entertainment, Shine
ASIA
China (Beijing) Huaso
Hong Kong SPT, Asia

16. Home Entertainment Consumption patterns are shifting
Recent pressure resulting from:
Total transactions mainly flat with small fluctuations
Revenues down as purchases shift to rentals
Within the rental business, a shift from higher margin brick- and-mortar transactions to lower margin subscription and kiosk transactions
A complex landscape going forward
Physical sell-through under continuing pressure, although mitigated by growth in Blu-ray
Rental transactions are up
Shift from brick-and-mortar to subscription and kiosk continues
Higher margin digital/VOD accelerating and represents a key growth driver
Potential for new distribution windows

17. Home Entertainment Rental Landscape
Recent shift within rental has been from physical brick-and-mortar to lower-margin physical rental options, including kiosk and subscription
But overall transactions are forecast to grow; growth in higher-margin digital represents an opportunity
US Consumer Rental Transactions (billions)(1)
(lowest rental margin)
(highest rental margin)
2.7
2.8
2.9
3.1
3.2
(1) Screen Digest VOD includes online, telco, MSO and DBS.

18. Success in a Changing Marketplace
Continue to create high quality films
Diversity across small, medium and large pictures
Capitalize on existing franchises
Introduce new franchises
Home Entertainment growth drivers
Blu-ray growth driven by added features and future 3D capabilities
Higher margin digital/on-demand offerings
New windowing opportunities
Investment in television assets
New programs
Expand network and production footprint

19. Success in a Changing Marketplace (continued)
Financial discipline
Reductions in marketing
Continued adjustment to film economics
Leverage Sony United opportunities
3D opportunity across SPE divisions
Leverage growth in emerging markets

20. Sony Ownership of SPE creates advantages
Importance of integration
Access to content and services drives purchase decisions for hardware
Sony services provide a distribution opportunity for SPE content
Recent collaboration
SPE films delivered digitally to Sony devices
SPE was critical to Blu-ray format success
3D films drive 3D hardware sales
SPE content promoted with Sony hardware
Hardware product placement in films
Opportunities
SPE content on Sony services
3D films and the 3D network
Potential for new windows (“premium VOD”)

21. 3D Initiatives
Theatrical Upcoming 3D films include: The Green Hornet, Priest, The Smurfs, Arthur Christmas and The Invention of Hugo Cabret
Digital Productions SPE has produced stereoscopic 3D effects for more movies than any other studio
Home Entertainment Released Cloudy with a Chance of Meatballs last summer as first Blu-ray 3D title available at retail and bundled it with Sony’s Bravia 3D TVs
Television Launching 3D network in early 2011 in partnership with Discovery and IMAX
3D Technology Center Develops and evaluates systems for new 3D program production; creates and drives industry support of 3D technologies, techniques, and authoring tools

22. Emerging Markets Key source of growth for the studio
Established TV networks infrastructure and operating expertise in emerging markets
Capitalize on growth in both TV audiences and advertising revenues
Leverage established presence into additional territories
Local TV production presence enables SPE to derive higher profits from global TV formats
Cross-Sony collaboration
SPE content featured on Sony devices and packaging for retail and advertising
Home entertainment products (e.g., BDs and 3D BDs) bundled with electronics and PS3s
SPE content displayed outside and inside Sony stores
Brokered deal with BCCI for Sony to film IPL semi-finals and finals in 3D

23. Q & A
SONY PICTURES ENTERTAINMENT

24. Home Entertainment Market Update – Recent Performance
Despite a 2% increase in total home video transactions in 2009 vs. 2008, retail revenue decreased 5%, as consumers continued shifting to rentals from purchases
U.S. Physical Home Video Transactions by Channel
(Millions of Transactions)
U.S. Physical Home Video Revenue by Channel
($ Billions)
3,082
3,014
+2%
+4%
-10%
$17.5
$18.5
66%
63%
% ST
-5%
Avg Rev per Txn:
$6.14
$5.67
Purchase
Rental
+5%
Purchase
Rental
-7%
2008
2009
2008
2009
% ST
27%
24%
Source: Nielsen, Rentrak
Note: Figures are based on data collected through week ending Dec 27, 2009