SONY PICTURES ENTERTAINMENT Information Technology Fiscal Year 2015

SONY PICTURES ENTERTAINMENT Information Technology Fiscal Year 2015 Q 2 Forecast and 2014 Mid Range Plan August 18, 2014

Executive Summary Budget to Q 2 Variance: • IT is expected to be $2. 8 m unfavorable to budget due primarily to: – Accounting for SPIRIT World & C 2 Sales net ($1. 2 m) – Discontinued Brazil JV allocation to Fox ($0. 7 m); working to recoup $0. 3 m – Unbudgeted / transferred headcount ($0. 5 m); AMMO ($0. 4 m) & ADM 1 HC – Non cap associated with additional cap spending ($0. 5 m) From PY MRP ($10+m) – Incremental growth in Outside Services ($2. 5 m), Ad Sales, TV Networks, B 2 B, RPM and Archer – Non cap & depr. on incremental FY 15 projects ($3. 7 m) – Accounting for SPIRIT World & C 2 Sales ($2. 2 m) – Groups transferred in FY 15, net of allocation DMG ($1. 4 m), AMMO ($0. 4 m) – TV Networks growth in UK – CSC ($1. 2 m) and Saa. S ($0. 2 m) – Telecom - Level 3 reduction, closed and consolidated lines of $3. 0 m 2

Overview • CY Budgeted headcount higher than PY MRP by 19, offset by telecom cost & overhead allocation to projects • Additional headcount in Q 2 for Interactive (4) and AMMO (2) • Incremental FY 16 Costs: • • Six (6) incremental heads; (3) for UK TV growth, (2) for PARIS support and (1) Media Center support Elimination of DMG legacy salary allocation ($400 k) Saa. S for CSC ($500 k), TCS – EIS ($275 k) and Trintech ($200 k) Telecommunications cost ($350 k) due to one time AT&T refund • Year over year gross overhead growth between 3% and 4% • Outer year depreciation & non-cap spending based on 2013 MRP + incremental on active projects • Assumes no changes to allocation methods to LOBs, 3 rd parties, and projects (currently under review) 3

2013 MRP to FY 15 Budget & Q 2 Forecast Budget was kept to 2013 MRP by adding Telecom $2. 7 m savings , offset by transfers and additional challenge of $600 k 4

2013 MRP to 2014 for FY 16 5

2013 MRP to 2014 for FY 17 6

2013 MRP to 2014 for FY 16 - 17 7

Depreciation Expense DMG ($3 m) not in PY MRP + Incremental FY 15 spending 8

Non cap Proj. Exp. Project Spending Projects & Non Cap Spending • Original budget of $62. 5 m capital spending was increased to $69. 5 m in Q 1 • Approximate non-cap impact of this increase is $500 k • FY 16 -FY 18 assumed to be PY MRP + current year incremental 9

Project and Non-Cap Risks Current approved spending for FY 15 Estimated current year spending based on additional greenlight / pending GL ($3. 2 m risk); does not include critical proposals 10

Procurement Saving Initiatives – FY 15 11

2013 vs. 2014 MRP • • Increased IT organization by 28 heads (some allocated out) Incremental Outside Service expenses for DMG, TV and various LOBs (some allocated out) Higher depreciation and non-cap due to added project spend Increased Project spend by $7 m 12

Allocations Some may have to be discontinued… working with LOBs + Compliance • If the “allocations at risk” (red) items are discontinued, net favorable variance from MRP = $1. 6 m • Proceeds from C 2 assumed to be $0. Reviewing contract to confirm. • Portion of proceeds from Spiritworld sale ($1. 1 m in FY 15, $1. 7 m in FY 16 & 17) now accounted as reduced depreciation 13

Key Project Initiatives 14

IT Headcount 15