1. Sony Pictures Entertainment Information Technology Fiscal Year 2014 Q2 Forecast and 2013 Mid Range Plan
August 26, 2013

3. Agenda Assumptions 4 2013 MRP Headcount 5
Page #
Assumptions
2013 MRP Headcount
FY14 Q2 vs. FY14 Budget Overhead
Cause of Change
Financial Comparison
2013 MRP (FY15 – FY17)
Cause of Change – Year over Year
Financial Comparison – Year over Year
2013 MRP vs MRP
Cause of Change MRP vs MRP
Financial Comparison MRP vs MRP
FY14 Q2 and 2013 MRP Capital Projects 12
Opportunities
Appendix
3rd Party Allocations, Major Projects, Depreciation Assets, Cost Saving Challenges & Future BU Benefits

4. Assumptions Headcount Flat to FY14 Budget
Salary, Fringe and Bonus grow 4%
Vacancy Factor of 4% (FY15 – FY17)
Internal Labor Capitalization rate ~11%
MRP Rate increases of ~3%, before incremental or transferred expenses
External Labor, SaaS, M&R (plus $0.8M transfer from TV Networks), Telecom and Data Center Facilities
Assumes no cost savings from Procurement, TCS and Telecom reviews
Includes no Royalties or benefits from Spiritworld or C2 deals
Change allocation of IT Services
Corporate (eliminated ($1.2M) non-capitalizable allocations for Studio) – MRP YoY
Production (reduced revenue ($0.3M) due to lower 3rd party rentals)
Third Party Allocations
No new JV revenue, continuation of Australia and Brazil and A&E ends July FY14
Depreciation
2013 MRP based on $57.4M of capital versus $43.2M in 2012 MRP
Significant SAP depreciation roll off in FY16; offset by FY15 asset transfer from TV Networks – Harris/NetGain
Includes favorable $0.5M impact from delayed project go-live dates and asset impairments
Project Spend – Q2 Forecast $64.6M vs. FY14 Budget $50.0M
Includes PARIS, EMEA, RPM and Interplan
FYE 14 ($14.6M); Participations & Residuals ($8.4M), EMEA ($4.3M), RPM ($1.1M) and Interplan ($0.8M)
FYE 15 ($8.1M); Participations & Residuals ($5.0M), EMEA ($1.8M), RPM ($0.9M) and Interplan ($0.4M)
FYE 16 ($1.9M) and FYE 17 ($1.1M) for Participations & Residuals

5. 2013 MRP Headcount

6. FY14 Q2 Forecast vs. FY14 Budget

7. Cause of Change – FY14 Q2 vs. FY14 Budget

8. MRP Comparison - 2013 MRP Year over Year

9. Cause of Change – 2013 MRP Year over Year

10. MRP Comparison – 2013 MRP vs. 2012 MRP

11. Cause of Change – 2013 MRP vs. 2012 MRP

12. FY14 Q2 and 2013 MRP Capital Spend

13. Opportunities Telecom Procurement Initiative
Re-negotiated TCS Contract
Asset Sale – SpiritWorld and C2
Joint Venture Opportunities
Procurement Savings – Other
Potential IT Cost Reductions from:
Changes in Application Support costs – Non TCS
Decrease Enhancement & Project Investment
Ensure BU benefits are realized in MRP Plans

14. Appendix

15. Third Party Allocations

16. FY14 Major Projects

17. Depreciation – 2013 MRP (FY15 – 17)

18. Cost Savings Challenges

19. Future Projected Business Benefits