Sony Pictures Digital Productions Mid-Range Plan October 6, 2009

1. DRAFT Sony PicturesDigital ProductionsMid-Range PlanOctober 6, 2009

2. FY10 Mid-Range Plan • Strategy • Overview • Sony Pictures Animation • Imageworks • Imageworks Interactive • MRP Financial Projections • Financial Appendix

3. StrategyOverview

4. Digital ProductionsStrategic Objectives • SPDP’s strategic objectives are: • Produce financially successful CG animated films at a significantly lower cost than either Pixar/Disney or Dreamworks • Remain a VFX leader and serve as a ‘net cost’ resource for Columbia 4

5. Digital ProductionsStrategic Benefits to the Studio • Digital Productions benefits the studio’s: • Overall release strategy • SPA’s family-oriented animated and hybrid films are critical to SPE in a challenging industry environment (family constitutes 5 of the top 10 films to date in 2009) • Cloudy’s box office success indicates the potential for these films • Profitability • Imageworks’ 3rd party VFX business lowers production cost and increases quality for SPA and Columbia • Marketing • Imageworks Interactive continues to deliver industry-leading sites and digital campaigns to internal clients at below market costs 5

6. Digital ProductionsOverview • Challenges for SPDP include: • Achieving consistent level of SPA output, while managing pre-greenlight costs • Continued price pressure on Imageworks as studios seek to contain costs • Continue to shift Imageworks’ workforce to lower cost satellite facilities 6

8. Sony Pictures AnimationWhy Family and Why Animation? • Family is one of the most popular global genres in the theatrical and DVD markets • In success, CG animated films retain the upside • CG animated family films lend themselves to theatrical or DVD sequels, which tend to have high margins • Live-action hybrids can also have significant, high-margin revenue upside (e.g., Alvin & the Chipmunks) 8

9. Sony Pictures AnimationStrategy & Progress 9

10. Strategy – Franchises • Even modestly successful theatrical CG animated films can become profitable franchises:Open Season 2 has a 39% profit margin ($23.8MM Gross Profit), the best by percentage of any SPE title in 2009 • Direct to Videos (DTVs) can be opportunistically released theatrically overseas, which also enhances their home entertainment performance • Open Season 2 & 3 lifts the overall profitability of the franchise to 10.9% ($48MM Gross Profit) • DTV also provides an excellent training ground for emerging creative talent • Cloudy is the next property to be considered for DTV or theatrical release 10

11. Sony Pictures AnimationDiversified Slate • SPA is focused on these following films in production and pre-production: • Open Season 3: DTV • In production • Voice Talent: Mike Epps returning as voice for “Boog” (Tentative) • Smurfs: Hybrid (under discussion for 3D) • In pre-production • Director: Raja Gosnell; Producer: Jordan Kerner (Charlotte’s Web); Script: J. David Stern, David N. Weiss (Shrek 2, Jimmy Neutron); Polish: Audrey Wells (George of the Jungle) • Hotel Transylvania: High-End, CG animated (3D) • In pre-production • Director: Jill Culton; Producer: Michelle Murdocca • Arthur Christmas: Aardman, CG-animated (3D) • In pre-production • Directors: Sarah Smith, Barry Cook; Script: Peter Baynham (Academy Award nominee for Borat) • Pirates!: Aardman, Stop-Motion (3D) 11

12. Sony Pictures AnimationDiverse Slate Development • Changelings: CG animated • Director: Brian Pimental, Producers: Kevin Lima & Chris Chase • Dark Samurai: CG animated • Director: Jerome Chen, Producer: Michelle Murdocca, Executive Producer: Avi Arad, Writer: Mark Frost • Familiars: CG animated • Executive Producers: Sam Raimi, Josh Donen • Hip Hop: Hybrid • Producers: Peter Abrams & Andrew Panay (Wedding Crashers) • Going South: CG animated • Adam Sandler project • Cloudy 2: CG animated DTV 12

13. Sony Pictures AnimationDevelopment Relationships • Development relationships focus on identifying future films from which other franchises can emerge: • First look deal with Gotham Group • First look deal with Fred Seibert • Development deal with Avi Arad (1 project, 2 pending) • Discussions with Henry Selick • Discussions with Peter Baynham on an exclusive animation writing deal 13

14. Sony Pictures Animation Release Schedule FY12 FY11 FY10 Q2 • Smurfs (Hybrid) (7/29/11) • Hotel T (9/20/11) Q3 • Arthur Christmas (11/11/11) Q4 • TBD DTV FY12 (Jan 2012) Q4 • Open Season 3 DTV (Jan 2011) Q2 • Cloudywith a Chance of Meatballs (09/18/09) FY16 FY15 FY14 FY13 Q2 • TBD Animation FY16 (9/18/15) Q3 • TBD Hybrid FY16 (Fall 2015) Q4 • TBD DTV FY16 (Jan 2016) Q1 • TBD Aardman FY15 (5/16/14) Q2 • TBD Animation FY15 (9/19/14) Q3 • TBD Hybrid FY15 (Fall 2014) • Q4 • TBD DTV FY15 (Jan 2015) Q2 • TBD Animation FY13 (9/28/12) Q3 • Pirates (Fall 2012) • Q4 • TBD DTV FY13 (Jan 2013) Q1 • TBD Hybrid FY14 (Hybrid) (5/15/13) Q2 • TBD Animation FY14 (9/20/13) Q4 • TBD DTV FY14 (Jan 2014) 14

15. Development SpendingFY10-FY13 • Holding development spend within historic levels while supporting an expanded and diversified slate FY10-FY13 Development Spending Budget ($000) 15

17. ImageworksStrategy • Serve SPA and Columbia as a dependable source of digital animation and VFX expertise • Maintain industry leadership in quality • Become even more price competitive: • Bring down overall labor costs further through minimizing artist gap time • Simplify production technology and standardize software tools to increase efficiency • Reduce real estate cost through more efficient use of Imageworks’ space • Continue to shift work to satellites in tax and cost advantaged areas (New Mexico and India) while exploring Vancouver in depth as an additional satellite location • Continue to use 3rd party work as a means to reduce SPA and Columbia production cost 17

18. ImageworksStrategic Objectives – Columbia Resource • Continue to focus on renewed relationship with Columbia as a critical resource for VFX expertise • All services provided internally are at ‘net cost’ • Providing early support for Spiderman 4, including access to character models, pre-visualization and 3D tests • Providing emrgency post-production services for This Is It • Produced test for Battle LA • Provided resources for Columbia to more effectively evaluate external VFX bids for Green Hornet • Serving the studio – and company – as the “go to” resource on 3D through availability of key staff, technology and facilities • Key collaborator on the studio’s digital backbone project 18

19. ImageworksStrategic Objectives – Clients and Technology • Strengthen relationship with large studio clients – Disney and Warner Bros. – increasing the amount of business from these sources as well as improving overall facility utilization • Use innovative technology and partnerships to increase efficiency, reduce development costs, and position Imageworks’ technology as the industry standard • Imageworks’ Open Source initiative, the first of its kind for a major VFX house, has already seen significant adoption • Prospective partnership with the Foundry, an industry-leading VFX software developer, creates immediate savings from free or significantly reduced access to their suite of software as well as shared development 19

20. ImageworksStrategic Objectives – Satellite Production • Aggressively utilize satellite production to further reduce overall cost and become more price competitive on internal and third party bids • India is well-positioned to do increasing amount of 3D work • Revenues have increased 32% in FY10 while costs have been held flat from prior year Note: Prior management negotiated what is expected to be a $2.5-$4.5MM total payout to minority partners occurring in FY11 & FY12 • New Mexico has been fully integrated into bids, taking full advantage of the state tax credit • Substantial share of recent 3rd party bids for Zookeeper and Green Lantern were based in New Mexico • SPA productions are also relying on the facility more heavily • Explore creation of a satellite facility in Vancouver to take advantage of 50% effective tax credit on labor and deep local talent pool 20

21. Imageworks Cost Savings FY08-FY13 • Imageworks has dramatically reduced non-billable costs by increasing production efficiency and also trimmed non-essential overhead • $3MM ahead of plan in FY10 FY08-FY13 Non Billable Costs Budget vs. Actuals, ($000) CAGR, Non-Billable Costs excl OH (FY08-FY12) = -33% 21 21

22. Imageworks Revenue MixFY10-FY13 • Over MRP period, Imageworks becomes less dependent on VFX work relative to prior years FY0-FY13 Imageworks Composition of Revenues, $(000) 22

24. Imageworks Interactive Strategy • Deliver industry-leading support to internal clients at below market rates: • Continue close collaboration with SPE’s Digital Marketing to assist in development of digital strategy and execute on best of breed sites and campaigns • Investigate shifting an appropriate share of workforce to Canada in tandem with Imageworks’ evaluation of building an additional satellite facility • Further develop 3rd party business to reduce overall cost for internal clients while serving as a source of innovation, mirroring Imageworks model 24

25. MRP Financial Projections & Headcount Summary

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31. Financial Appendix

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