Sony Pictures Entertainment Information Technology February Review March

Sony Pictures Entertainment Information Technology February Review March 20, 2014 Confidential Material IT Finance 1

Agenda • FY 15 IT Budget – Project Spend $49. 8 M § – • • Operating Expense § Favorable to MRP $0. 5 M § Excludes DMG/Tech Ops impact of $1. 5 M in FY 15 § Bain saving are included FY 14 January Financials – Operating Expense – Capital Projects – Headcount FY 14 Projects – Actual Spend, Forecast and Revised Budget § • Appendix contains Spend by Month and projected Cash Flow & Project View reports Updates – – Six Bain Initiatives – § 4 committed savings - EIS $0. 3 M, ADM $0. 6 M, DMG $1. 0 M and Tech Ops $0. 2 M § 2 uncommitted – Info Sec Merger $1. 0 M & BRM Right-Sizing $2. 2 M Make Overrides Better – failed UAT; potential impaired asset of $0. 5 M § – Review to determine investment needed to move into production EDM to be split into 2 projects FDI/MDM $1. 1 M and KPI $. 5 M – Update in process § • Excludes New Projects and New Project Pools Transfer PARIS/Residuals $1. 1 M to occur – Requires Change Oder approvals of $2. 2 M Appendix Confidential Material IT Finance 2

FY 15 IT Budget - Capital • • Capital review meetings by DCIO – Reviews with CIO by Carry-over, Enhancement Pools, HW/SW Pools & New Projects – Bottom up requests – Pools supported by Service. Now Changes Year-over-Year – Consolidated Internal and External Pools to single application pools – Capital spend by Application by BU § • – Capturing expense portion of enhancements for internal and external labor – First steps towards TCO of an application Review meeting include EIS and ADM participation in BU reviews – To avoid potential duplication of efforts – Ensure Infrastructure is aware of project demand § – Allows them to allocate HW/SW pool appropriately ADM team supports BU and makes them aware of BU projects demand § • New views of data by application spend across Multi-years Increase communication between BU and support teams FY 15 Capital Demand exceeds $58. 8 M 1 st pass submission – Exceeds spend by $5 M before new projects – Provide CIO data by DCIO, spend type and application prior to DCIO reviews Confidential Material IT Finance 3

FY 15 IT Budget - Capital by DCIO and Application Confidential Material IT Finance 4

FY 15 IT Budget - Capital by DCIO and Application 3 Year Trend Spend for Applications over $3 M FY 15 Project and Pool Spend by DCIO before New Projects Confidential Material IT Finance 5

FY 15 SAP Application Detail of SAP spend by Project and Pool Confidential Material IT Finance 6

FY 15 SAP Carryover & Pools * * FY 15 new proposals not included Confidential Material IT Finance 7

FY 15 Operating Expense - Budget vs. FY 15 MRP Confidential Material IT Finance 8

January Favorable YTD to Budget $1. 0 M Confidential Material IT Finance 9

Cause of Change – January YTD Confidential Material IT Finance 10

January FY 14 Headcount Vacancy rate: Oct 5. 9%, Nov 5. 4%, Dec 4. 5%, Jan 3. 7% Confidential Material IT Finance 11

January FY 14 Project Spend Forecast by LOB ($ in 000’s) Annualized Monthly Run Rate: Oct $45. 3 M, Nov $47. 0 M, Dec $47. 7 M, Jan $60. 7 M Confidential Material IT Finance 12