1. September 30, 2010 SONY PICTURES ENTERTAINMENT EMERGING MARKETS Draft as of 22 Sept 2010

2. CONFIDENTIAL DRAFT page 2 Emerging markets are a key area of growth for Sony Pictures, as they will outpace growth in established markets Anticipated media and entertainment spending CAGR (’10-’14) 1 : – Latin America 8.8% (Brazil: 8.7%) – Asia Pacific 6.3% (China: 12.0%; India: 11.8%) – North America 3.9% – Europe/Middle East 4.6% (Russia: 9.3%) SPE has an established presence in many of these markets However, business conditions vary from market to market and thus, each territory requires a tailored approach Executive summary Source:1 PricewaterhouseCoopers, Global entertainment and media outlook: 2010-2014

3. CONFIDENTIAL DRAFT page 3 TV Networks Overall Opportunity Market Level Considerations SPE Approach TV networks’ dual revenue streams enable SPE to capitalize on the growth in both TV audiences and advertising revenues in emerging markets Established presence and operating expertise allows SPE to leverage existing infrastructure to efficiently expand into additional territories SPE has successfully established a presence in each of the following territories –India: Very strong presence with a suite of four channels and ownership of a major distribution operation; SPE also holds rights to IPL, the number one sports property in India –Latin America: SET and AXN Latin America were the two highest EBIT contributors to the SPT network portfolio in FY10 –Central and Eastern Europe: Number one ad sales operation in Europe with particular success in Poland, where AXN also recently voted the number one channel in the market –Korea: Animax is an established channel in the region and SPT will soon launch a new fully localized AXN –Russia: Two channels launched in last 18 months Continue expanding through startup operations or local acquisitions –Launch a Korean programming based service across Asia (SET One) –Further expand across India through regional channels –Move into the Turkish and Greek markets

4. CONFIDENTIAL DRAFT page 4 TV Production Overall Opportunity Market Level Considerations SPE Approach Local production presence enables SPE to derive higher profits from global TV formats, producing locally around the world rather than licensing to 3 rd parties While expansion priority is UK, emerging markets provide growth potential –UK is the leading market for light entertainment format origination and internationally marketable scripted series –US and major European markets drive production business volume and value –Emerging markets enhance growth rate and profitability SPE has an established local TV production presence in each of the following countries/regions –Latin America: Leading independent producer with highest market share; local production presence in Colombia and Brazil; regional format and completed program sales as well as original local language productions through operations in Miami –Russia: Leading local producer with Lean-M JV; local operations also distribute formats and completed programs in Russia, Ukraine and other CIS territories –Middle East: Local scripted and non-scripted production operations for pan-regional and local broadcasters in UAE, Lebanon and Egypt –China: Only western company with local production operations; Huaso JV produces original local language shows and remakes of US formats such as Dr. Oz; SPT format and program sales in China and Asia region through operations in Hong Kong Pursue immediate expansion opportunities including: –Russia/CIS: Strengthen/expand genres in Russia and extend local productions to Ukraine –Poland: Build production presence through JVs with top local producers –India: Capitalize on strong market growth and leverage significant networks presence

5. CONFIDENTIAL DRAFT page 5 Theatrical Releasing Overall Opportunity Market Level Considerations SPE Approach Emerging markets have traditionally been smaller territories but two (S. Korea and Russia) have recently entered the top 10 global markets As emerging markets drive an increasing percentage of global box office, success requires navigating challenges –While many U.S. titles travel well, certain genres, such as urban and domestic comedies, do not necessarily appeal to local audiences –Foreign titles are often scheduled not to compete with local product; local titles are increasingly gaining favor with local audiences –Lack of automated and transparent tracking/reporting systems can result in fraud India is experiencing rapid growth on a large base of admissions, partially offsetting low ticket prices Russia has historically faced under-reporting of box office figures, but government is considering automated system China, despite growth, has presented challenges given import quotas, preferential treatment for local titles, and low retention rates Constantly re-evaluating nature of presence in each market to determine whether scale justifies cost of overhead –Local presence in 22 branches, where investment in infrastructure yields returns –JVs with Disney in Korea and Russia –55 sub-distribution deals where the cost of building infrastructure outweighs the cost of being in business

6. CONFIDENTIAL DRAFT page 6 Local Film Production Market Level Considerations SPE Approach Industry-wide film production is growing in emerging markets based on strength of international box office, but profits have been limited and dependent on key market characteristics: –Availability of financing –State of infrastructure for releasing –Government programs to limit (e.g., quotas) or give financial incentives (e.g., tax credits) –Necessity of local partnerships to gain access to markets or ensure content relevance Russia and China present challenges –Russia: Productions decreased from 220 in 2008 to 101 in 2009 due to limited funding –China: Productions have grown from 91 in 2000 to 456 in 2009 but many going direct-to- video due to an insufficient number of modern screens Brazil presents opportunities: productions increased from 35 in 2000 to 94 in 2009 due to favorable tax incentives and sector funds Expect overall investment and growth in local language production to remain limited Maintain local film production presence in existing international markets, both established and emerging –Currently have three productions in Germany and four in Russia –Have produced >20 films in Brazil since 2003 due to favorable tax incentives Pursue co-productions in countries with high barriers to entry –Collaborate with local filmmakers where appropriate Overall Opportunity

7. CONFIDENTIAL DRAFT page 7 Home Entertainment Overall Opportunity Market Level Considerations SPE Approach Emerging markets did not historically not generate significant revenues, due in part to piracy As broadband penetration grows, SPE sees opportunity to drive growth through legitimate digital alternatives Given retail nature of products, Home Entertainment has been one of the closest areas of SPE/Sony Electronics collaboration in emerging markets Brazil and Russia are higher margin (higher price points and Blu-ray appetite), and higher growth with historically heavy piracy now declining India and China are lower margin, lower growth territories and have retail infrastructure challenges; however, greater digital opportunities exist BRIC is not the only growth opportunity; SPHE leverages licensees in 30+ countries for marketing and distribution Coordinated cross-Sony approach in BRIC countries –Develop digital models for PSN/Qriocity –New retail marketing opportunities including bundles with Sony Electronics –Review joint Sony Music/DADC proposal to expand SPHE’s retail and physical footprint (China) Explore opportunities to expand cross-Sony approach to other markets Other collaboration opportunities with third parties –Partner with a local distributor (China, Russia) and combine personnel (Russia) –JV with other studios for benefits of scale

8. CONFIDENTIAL DRAFT page 8 Coordinated cross-Sony strategy in emerging markets SPE collaborates with its sister companies in their respective territories; initiatives to date have been most compatible with home entertainment – Co-promotion:  SPE content featured on SEL/SCE devices and packaging at retail locations and in advertising  SPE contests and give-aways (e.g., premiere tickets used to drive hardware sales)  Joint presence at local consumer electronics shows  Sony United loyalty program inserting coupons for Sony content in hardware packaging and vice-versa – Product bundling: Home entertainment products (e.g., BDs and 3D BDs) bundled with electronics and PS3s – Leveraging retail footprint: SPE content displayed outside and inside Sony stores SPE sees additional opportunities for collaboration with other Sony companies – Extend bundling initiatives to digital content (e.g., Sony MC or USB sold with special code for a digital movie download) – Potentially formalize the best-practice cross-Sony approaches taking place in key markets today (e.g., Russia and Brazil) and export it to additional key territories (e.g., Australia)