People & organization All Hands presentation

1. People & organization All Hands presentation Jim Underwood October 12, 2011

2. CORPORATE DEVELOPMENT October 4, 2011

3. Goals and Responsibilities • Organization • Develop and upgrade the human capital in my organization • Strategy • Provide strategic insights to business divisions • Work with business units to drive profits and investment strategy • Transactions • Identify opportunities to sell non-strategic assets that will result in significant gains for SPE • Facilitate implementation of emerging business models through launch of new businesses, new business models, and acquisitions

4. Organization: Corporate Development and Business Development David HendlerSr. EVP & CFO SPE Jim UnderwoodEVP Corporate Development Stefan LittEVP & CFO MPG Drew ShearerEVP & CFO SPT Bill StellmanEVP & CFO SPHE Jay Galston VP MPG Bus. Dev. +4 Jon FreedbergDirector Acquisitions Bus. Dev. +2 Lauren Glotzer VP Corp. Dev. James Monroe VPCorp. Dev. +5 Janet Dargan SVP SPT Bus. Dev. +6 Michael Corcoran Exec. Director SPHE Bus. Dev. +4 28 professionals, structured for visibility and support across divisions and at the corporate level

5. Transactions October 4, 2011

6. Transactions include divestitures when: • The deal is right • Eager buyer • Attractive valuation; more than we can be certain to extract by holding the asset • In some cases, generate significant gain while selling very little future EBIT • In some cases, we can solve a problem • Resolve a complex and/or contentious operating relationship with a partner • We can sell an asset that we don’t fully control • Passive economic interests • Minority interests with limited control

7. Examples that met our criteria THE BASICS WHY IT MADE SENSE FOR SPE HBO Divested minority stakes of roughly 20% - 30% in HBO Latam and CE Stakes were non-controlling, not consolidated and partner was eager to buy Shine Divested our 20% stake in Shine Exited a non-controlling stake in a business that was becoming competitive Spider-Man Merchandising Sold a 25% merchandise interest, bought out Marvel’s 5% film interest Merchandise interest was passive. Deal increased creative leeway on films and resolved a contentious relationship

8. Transactions also include investing for growth TELEVISION NETWORKS • Higher Likelihood with recent activity • Networks have a proven track record of growth and are a key driver going forward for all media companies • We have a well-established infrastructure that we can leverage in adjacent (or regional) markets TELEVISION PRODUCTION • Higher Likelihood with recent activity • International network profits are growing quickly, in large part driven by acquisitions • The UK, a key territory, remains a gap for SPE • Acquisitions in key territories build on existing infrastructure; feed formats to and accept formats from the US FILM PRODUCTION • Lower Likelihood • While the business is core, we have a full-scale operation today; there are limited attractive opportunities to acquire

9. STRATEGY:MID RANGE PLAN October 4, 2011

10. Executive Summary • The market trends SPE identified in prior MRPs will continue to unfold over the next three years • Transitions in home entertainment to lower-margin rental models will continue to put pressure on film economics and may only be partially offset by growth in digital • Films remain a key component of the studio business and maintaining their current profit contribution requires carefully adjusting slate mix • TV production and networks, both high-growth / high-margin businesses, are an increasing percentage of studios' profits • SPE has positioned itself to succeed in this market environment with a balanced approach to both film and television • Focusing on films that benefit from market trends (franchises, international appeal, family) • Continuing to generate television series with global appeal and investing for growth in networks • Emphasizing higher-margin distribution models in home entertainment • Leveraging corporate overhead between the film and television businesses • Carefully managing costs and cash flow

11. Strong Growth for the Top and Bottom Lines Revenue ($MM) EBIT ($MM) 9% CAGR 24% CAGR

12. Market Trends:Increased Consumption • Increased access to content through new devices drives incremental viewership, creates new revenue streams, and represents continued growth opportunities • The average consumer now views content on 3.5 devices • Total TV viewership per average consumer per week has grown from 31.2 hours in 2006 to 33.2 hours in 2010 and is projected to reach 34.3 hours by 2014(1) • Netflix is a new buyer for television content and streaming rights • The flood of new access models in the market has strengthened the link between devices and content • Content providers marketing their device-specific applicationsWatch Crackle on your tablet • Hardware providers marketing their content relationshipsYour Sony Blu-ray player is your gateway to Netflix and Hulu 1. Source: Veronis Suhler Stevenson.

13. Market Trends: Shift in Economics • Home entertainment revenues are under pressure as physical sell-through gives way to physical rental options (Netflix, Redbox) perceived to have greater value and convenience • The growth of digital transactions has only partially offset the decline in physical sell-through; digital is anticipated to remain approximately 30% of HE contribution through FYE15 • Video on demand is growing and offers higher margins than subscription or kiosk rentals, however electronic sell-through has been slower to gain momentum • As a result of these market shifts, film economics have changed • International appeal is increasingly important to ensure a profitable slate • Franchise films and family content are less susceptible to the decline in home entertainment and offer greater international revenue potential • The television market, including networks and production, continues strong growth • International networks are capitalizing on the increase in emerging market pay-TV households • The global ad market has generally rebounded despite a sluggish economy • New technologies have increased the number of buyers of TV content (e.g., Netflix) • Formats are travelling more internationally • Local television production is increasingly in demand

14. Divisional details Motion Pictures

15. Motion Pictures Executive Summary SPE will benefit from the careful structuring of its film slate which focuses on more profitable genres while simultaneously managing costs • Giving film slate more international appeal and greater sell-through potential • Growing family business • Increasing focus on franchises • Pursuing low cost faith-based acquisitions • Improving economics of existing businesses • Reducing production and marketing costs • Pursuing film co-financing and tax-based incentives • Focusing on genre and production cost mix • Columbia - Tentpoles with global appeal and low budget films with upside • Screen Gems - Genres films (e.g., thriller, comedy, action) at low cost • Fostering key relationships to ensure product flow (talent, Aardman, distribution deals) • Benefiting from at-cost production support from Imageworks

16. Motion Pictures Franchise Films Increasing our focus on franchise films to succeed in a changing environment • Numerous titles are in negotiation, active development or production with an eye toward release in the next few years • Amazing Spider-Man sequel is planned for FYE15, two years after the reboot • Bond 23 and Bond 24 have been added • Resources are being focused on licensing/developing video game titles such as PlayStation brands (Metal Gear Solid, Gran Turismo)

17. Motion Pictures Reduce Production Costs • Negotiating post break back-end deals, reducing upfront fees for talent, and/or causing talent to accept a “hiatus” • Monitoring global incentives (e.g., tax credits) to capitalize on the opportunities to lower production cost • Exploiting tax-based incentives on a worldwide basis will save approximately $55MM on FYE12 releases and $106MM on FYE13 releases • Recently closed $100MM co-financing deal with Hemisphere

18. Over the last six years, SPE has kept theatrical marketing and distribution costs down or flat relative to prior years This was accomplished through a variety of initiatives including less TV and Newspaper and increased utilization of digital FYE12 has seen a significant rebound in the US ad market This strong US ad market will make it increasingly difficult to keep marketing costs flat, however if the market dips again, SPE will take advantage of lower ad rates SPE will continue to pursue cost savings opportunities including the use of in-show promotional time Motion Pictures Managing Marketing and Distribution Spend

19. Divisional details Digital Productions

20. Digital ProductionsKey Strategies • Develop high-margin, family-friendly franchises • Maintain Imageworks’ quality while continuing to reduce overall costs • Continue to focus on quality for Columbia and SPA films and to secure large third-party projects, which also lowers costs • Expand facility in Vancouver to take advantage of 58.4% tax credit for labor • Serve as a resource for Sony Corporation • SPA continues to create characters used in Sony Electronics’ marketing/promotions • Provide 3D and VFX production expertise to SPE and Sony Corporation 20

21. Digital Productions SPA – Developing Profitable Franchises SPA is executing on its objective of producing financially successful films with franchise potential Open Season 3 (Direct-to-Video) 1/25/11 Open Season 2 (Direct-to-video) 1/27/09 Open Season 9/29/06 21 18% Margin 15% 9%

22. Digital Productions Imageworks – Maintain Leadership in Quality while Lowering Costs Imageworks has dramatically improved its performance by re-sizing the business, increasing efficiency, growing its lower cost satellites in Vancouver and India, and focusing on fewer, larger projects • Serve SPA and Columbia as dependable source of high-quality digital animation and VFX expertise at lower cost: • Currently in production on Columbia 2012 tentpoles The Amazing Spider-Man and Men in Black 3 • Awarded Disney’s 2013 tentpoleOz: The Great and Powerful • Secure larger budget third-party work (Warner Bros’ Green Lantern and now Disney’s Oz) as a means to reduce SPA and Columbia production cost (shared overhead, shared R&D, stronger talent pool) • Continue to shift artists to the Vancouver facility, leveraging 58.4% tax credit on labor to continue to lower costs Imageworks EBIT ($MM) 22

23. Divisional details Home Entertainment

24. Home Entertainment Executive Summary The new distribution models SPE is currently exploring will be critical to success in the changing home entertainment market • Driving consumer uptake of higher-margin models (Blu-ray, VOD, EST) • Targeting convenience and value proposition in new models • Developing new product features, marketing strategies and releasing tactics • Creating compelling consumer offerings through Sony United initiatives • Product bundling with SEL (e.g., 3D Blu-ray/Bravia) • Joint promotions across product lines (e.g., PS3/BD ads, 3D TV/3D BD ads, etc.) • Closely managing profitability across each phase of the product lifecycle while reducing risk • Getting economies of scale through the creation of joint ventures in key territories • Right-sizing the US sales team

25. Home Entertainment Market Summary New physical models are driving steady growth in total HE transactions but represent lower-margin models (e.g., Netflix and Redbox disc offerings) Dollars(Billions) US Home Entertainment Market(Consumer Revenues1,2) Trx(Billions) US Home Entertainment Market(Transactions1) Sell-Through Sell-Through Rental Rental % Rental 71% 71% 72% 74% 76% 78% 80% 80% 81% 37% 37% 38% 41% 42% 45% 48% 50% 52% Source: Screen DigestNotes: 1. Does not include Netflix streaming 2. Beyond decline in consumer sell-through revenues, studio economics are being further pressured on underlying wholesale margins

26. Home Entertainment – Market Update Opportunity for some recovery via rise of emerging models SPHE New Release $ Margin per Transaction • Transition to digital is creating new opportunities for higher-margin transactions • New models • New windows • SPE is driving toward higher-margin opportunities • EST through support of UltraViolet and trialing early EST releases (Bad Teacher first early EST on October 4th) • Making VOD a more compelling rental option than subscription and kiosk with longer rental periods, day & date offers and HD • SPE is also managing lower-margin transactions by optimizing our terms with Netflix and Redbox SELL-THROUGH RENTAL

27. Divisional details Television

28. Television Executive Summary SPE’S investments in television production and networks leave it well positioned to benefit from the global growth in those businesses • Strengthening economics of existing businesses • Keeping SPT’s slate of original TV series on the air and generating substantial syndication profits • Continuing to invest in ad and affiliate sales infrastructure within the channel business • Exploring ways to leverage studio relationship with GSN • Pursuing growth opportunities • Building on syndication success (The Dr. Oz Show, The Nate Berkus Show) • Capitalizing on opportunities with emerging SVOD players (e.g., Netflix, Amazon) • Expanding in key markets with our branded networks, local and international TV series development and production ventures, and distribution sales operations • Pursuing Sony United collaboration • Working to become the primary ad sales organization across Sony brand and platforms • Utilizing development, production and programming expertise to create content for Sony’s Networked devices • Building the Sony entertainment brand through Sony-branded international networks

29. U.S. ProductionCurrent Series • Significant growth in returning series: 75% of 2011/2012 US TV slate is returning series • Highest volume of primetime series in a decade; #1 producer of returning scripted cable series • Rules sold in syndication in 97% of U.S. • 7 shows on 2011 primetime fall schedule • Broadcast programming on 6 of 7 nights of the 2011 fall schedule New Series • Highest volume year in SPT history with 13 stand-alone profitable series • More new comedy series than any other studio Returning Series • Secures partnership with Harpo and successfully launches The Dr. Oz Show 24 22 17 17 17 16 11 29

30. Formats That Have Been Sold In Over 5 Territories (FY10-FY11) Note: Specials are denoted in PURPLE.

31. SPE has 120 channels across the globe Highly successful network brands benefiting from a global infrastructure 543+ Million HH 159 Countries 120 Feeds 22 Languages

32. Networks Continued Earnings Growth • Networks EBIT grows by approximately $250MM over the MRP period • Based on market multiples, networks could contribute approximately $3B of value to Sony Corp. today and grow to over $5B by FYE15 Networks Revenue Networks EBIT Networks EBIT 14% CAGR 30% CAGR 16.9% 21.0% 19.0% 14.0% EBIT Margin* 32 *Margin excludes GSN PPA to normalize year-on-year progression

33. Television Growth through Additional Investment SPT is exploring investments beyond those included in the MRP and will seek continued support to pursue these growth initiatives • Opportunities to Strengthen Existing Assets • Resolve partnership issue with MSM to drive growth and allow efficient participation in Sony United initiatives • Opportunities to Expand in Key Strategic Markets • Establish a local production presence in the UK through acquisition • Acquisition of an Indian Regional broadcaster to complement the Hindi language MSM suite of channels • Drive Growth in Emerging Markets Through Acquisition or Start Up • Further expand in emerging and growth markets in both the networks and production businesses • Increase the scale of existing operations in emerging markets (e.g., India, Korea, Russia) • Acquire or start up operations in new markets (e.g., Turkey, Greece, Adria)

34. Financial summary

35. Financial Summary EBIT by Division ($ In millions)

36. IMPLICATIONS

37. Implications for SPE • SPE will benefit from the careful structuring of its film slate which focuses on more profitable genres while simultaneously managing costs • The new distribution models SPE is currently exploring will be critical to success in the changing home entertainment market • SPE’s cost reduction initiatives better shape the business for the current market environment • SPE expects to maintain Film at its current scale and level of profitability, while benefiting from growth in Television Production and Networks • SPE’s mix of film and television assets takes advantage of synergies between the two and enables SPE to continually iterate on the balance between them

38. Implications for P&O • When SPE is poised for growth, yet facing stiff competition: • Attract, retain, and cultivate the best talent • Ensure candidates understand our unique positioning, culture, and ability to succeed in the current market place • In a rapidly changing Home Entertainment distribution landscape: • Help train our employee base on comfort with ambiguity, willingness to take calculated risks, and tie compensation to these behaviors • With an increasingly financially rigorous film slate selection: • Ensure our talent pool has a balanced skill set between “creative” and “analytical.” Both are important in the current market • With TV profits growing to be a greater percentage of SPE’s profits: • Help communicate the importance of a balanced portfolio between Film, HE, and TV. Ensure there is not an “us vs. them” or “in favor” vs. “out of favor” mentality