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Sony Pictures Imageworks Interactive Fiscal Year 2010 Business Plan April 27, 2009 CONFIDENTIAL -- Sony Pictures Imageworks Interactive Fiscal Year 2010 Business Plan April 27, 2009 CONFIDENTIAL -- Sony Pictures Entertainment Work Product

Executive Summary • Continue third party business in FY 10 but be more selective Executive Summary • Continue third party business in FY 10 but be more selective about where & how to compete – – • Enhances the core SPE business through SPII developing new competitive advantage Incremental profit flows directly to EBIT Financial model shows upside in year 3, but results are extremely speculative Potential is unclear due to lack of trend data for existing 3 rd party business Develop third party business for non-film entertainment-related companies (e. g. , broadcast & cable) taking advantage of group’s skill set and location – Does not constitute the same challenge as film to internal TV or other SPE businesses • Seek new opportunities within Sony Corp, and continue to compete in consumer packaged goods (particularly soft drinks) and in areas like fast food that closely align with the target demographic for most SPE films – Develop SPII-specific site to facilitate 3 rd party business development – Pursue clients more selectively along digital marketing value chain • Create structured approach to innovation to create new competitive advantage – Moderate risk exists for erosion of business due to proliferation of new media platforms CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 2

SPII’s strongest competencies in the digital marketing value chain are design/production & marketing ops SPII’s strongest competencies in the digital marketing value chain are design/production & marketing ops (relatively weakest is strategy) Legend Weak Moderate to Strong Design/ Production Marketing Strategy Key Activities: § Marketing plan development & proposed execution § Media buying § Campaign planning § Immersive sites § Splash, teasers, micro-sites & portals § Maintenance, QA integration Marketing Ops § Web analytics, market research and reporting § Ad, promotion § Email/CRM Client Services Technology § Digital infrastructure (hosting, bandwidth, etc) and programming/ coding § Ongoing support of existing executions § Development of new opportunities from existing relationships § § SPE does not typically use SPII Comments*: for development* § § Relatively weaker but improving capability Strong design capabilities Strong backend development § Outsource + scalable § § Dedicated internal CMS solution resource for SPE help make SPII price and well-regarded competitive* capability in this § area*; consumer § Lack of AJAX or. NET insights for 3 rd capabilities are party less certain liabilities § WWDM sets an § Examples: integrated digital marketing strategy for 2012 SPII designs & executes on WWDM strategy for 2012 § SPII provides SPE § SPII provides digital marketing content with analytics on management performance of solution + hosting SPE sites as well for internal clients as competitors Internal clients appear mostly satisfied* External clients’satisfaction is unknown** § SPII manages and updates Sony Pictures sites and portals as needed Source: SPII, Mercer 2007, Corporate Development analysis * Note: Comments relate to internal surveys as noted **Note: Only one self-originated 3 rd party client who was not surveyed CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 3

Big Spaceship and other competitors have captured a significant share of SPE business (up Big Spaceship and other competitors have captured a significant share of SPE business (up to 60% annually) and have diversified client bases Company Summary Overview § Promotes full service capabilities § Recent SPE work: Quantum of Solace game, 2012 immersive site (used heavily by SPE) § Other clients: FOX, Disney, Coca. Cola, ABC, Nike, Nestle, LG, Target, Sony Corp, Adobe Key Differentiators § Strong competency in marketing strategy/ planning and design, particularly with immersive sites § Innovation center structured into business that has enabled them to diversify business § Base of strong entertainment and major retail/consumer brands § Business has a comprehensive site (http: //www. bigspaceship. com) § Promotes full service capabilities § Recent SPE work: Angels & Demons, 2012, Damages § Other clients: CBS, Paramount, Nike § Strong capacity in creative design § Game and social media specialist § Shanghai office gives them direct access to low cost labor § Business has a comprehensive site (http: //www. triggerla. com) § Promotes full service capabilities § Recent SPE work: Casino Royale, Pursuit of Happyness § Other clients: HBO, Anheuser Busch, AT&T, Harley Davidson, Pepsi § Weaker in strategy but stronger in creative design § Solid backend execution with resident expertise § Business has a comprehensive site (http: //www. whittmanhart. com) § Promotes full service capabilities § No SPE work § Clients: Paramount, MTV, NBC-Uni, Colgate, Comcast, Ralph Lauren, Office Depot, E-Trade, Holland. America Cruises § Stronger emphasis on consumer research & technology § Online video, social media and mobile specialist § Business has a comprehensive site (http: //www. 360 i. com) Source: Company reports; Company web-sites; Secondary research, SPII, Corp Dev analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 4

SPII’s overall success rate is 29%, generating $1. 3 MM in awarded business chasing SPII’s overall success rate is 29%, generating $1. 3 MM in awarded business chasing $4. 6 MM from FY 08 -09 Business Awarded ($1. 3 MM) FY 09 3 rd Party Business Development Business Awarded; 1312180; 29% Projects: 8 Projects: 11 FOX Sports, $78, 500 , 6%* Pitches- Not Won; 3261000; 71% Soft Drinks $348, 000 , 27% Thousands Cash Flows from Awarded Work (FY 08 -10) $600 $500 Not-for-Profit $147, 500 , 11% * Only wholly external business client $527 K $450 K $379 K $400 $300 $200 Not Awarded ($3. 1 MM) Sony; $150, 000; 5% New Mexico Fastfood; Tourism $300, 000; $550, 000 9% 18% Sports; $225, 000; 7% $100 $0 Collected / FOX Sports Coke Zero Recognized FY 08 Fanta Recognized FY 09 Sony $738, 180 , 56% Collected / Sony Recognized FY 10 Soft Drinks $1, 900, 000 61% Source: SPII, Corporate Development analysis * Note: Sports is FOX Sports’ football/baseball fantasy game CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 5

Alignment analysis indicates aggressive pursuit of entertainment (broadcast, cable) & Consumer Packaged Goods (CPG) Alignment analysis indicates aggressive pursuit of entertainment (broadcast, cable) & Consumer Packaged Goods (CPG) Alignment between revenue opportunity, SPI competencies and previous BD success Market Revenue Opportunity Aligned with Core Competency? Previous Business Development Success* Sony Corp. 3 2 3 CPG (including soft drinks, alcohol) 3 3 2 Media/Entertainment* 2 4 1 Apparel 2 3 0 Auto 4 2 0 Travel 3 2 0 Little to none Low Moderate High Greatest 0 1 2 3 4 Source: SPII, Corporate Development analysis * Note: 92% of 3 rd party work was generated from sub-contract CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 6

SPII comparatively lacks full capabilities and business diversification in closely-related industries, including entertainment High SPII comparatively lacks full capabilities and business diversification in closely-related industries, including entertainment High Competitive Analysis: SPII vs. Selected Agencies Low High Estimated Relative Business Size ($MM) Small Large Source: SPII, Corporate Development analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 7

Rationale for 3 rd Party Business: Augments core SPE business, adds incremental profits to Rationale for 3 rd Party Business: Augments core SPE business, adds incremental profits to SPDP Rationale for 3 rd Party Business Benefits Current core SPE business Higher level of internal service at lower cost, incremental profits to SPDP 3 rd Party Business Reduces cost for SPE clients § Higher rate of utilization to paying clients decreases SPII overhead allocation to rate card Further benefits to SPE § Pollination from other 3 rd party projects allows the SPII§ Improves ability of SPII to recruit, cultivate and retain promising talent team to further develop capabilities, including ideation, planning and creative design § Facilitates innovation on new platforms Incremental Profits to SPDP § Development of new competitive skill sets along the § FY 10 budget calls for development to be digital marketing value chain can lead to higher accomplished within existing cost structure and margin opportunities and more consistent revenue no additional investment other than hiring of from ‘agency of record’ accounts “ROP” employees to support the projects § Gross profit for third party business flows directly to unit EBIT Risk Factors Demands from WWDM § WWDM additional demands in FY 10 could impair 3 rd party business development efforts Cost Creep § FY 12 will likely require some level of investment beyond hiring ROP employees to sustain/expand existing business to realize upside (costs were factored into projections holding margins constant) § Mitigation: Fixed and variable costs can be reduced though production scalability which has to be planned Source: SPII, Corporate Development analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 8

Approach #3 creates the largest opportunity to grow, diversify the 3 rd party business Approach #3 creates the largest opportunity to grow, diversify the 3 rd party business at low cost but presents higher level of complexity Approach Description Continue ‘As-Is’ • Continue to target CPG (soft drinks), fast food (dining) as a full service digital agency • Pursue other verticals opportunistically (New Mexico tourism, FOXSports. com) • Supports SPII’s focus on transition to full service, higher margin opportunities • Relatively low cost • Limited operational requirements and easier to flex based on SPE’s demands • Relative lack of success in this track • Difficult to win business because lack of prior experience • May not be properly matched against competitive strengths/gaps Focus on subcontracting work within Sony • Leverage relationships with retained marketing agencies for Sony Corp, using production/backend capabilities • Pursue similar opportunities externally as they arise • Easiest ‘fit’ relative to track record • ‘Sony United’ play • Lowest cost and lowest demand on internal resources to win business • Builds on past/current success • Difficult to diversify client base into bigger revenue opportunities as a lower cost tech specialist • Foregoes competing for higher margin activities Hybrid approach, including TV • Target internal/external opportunities (CPG, soft drinks, fast food) selectively • Continue subcontracting approach internally, externally as circumstances dictate • Pursue broadcast & cable • Higher business development • Best blend of past + newer complexity may mean higher time approach to grow/diversify commitment from principals • Reduces wasted/time effort • External broadcast/cable outside of capability gaps opportunities will still require • Entertainment aligns well with some degree of internal existing SPE business/scalable consultation 1 2 3 Pros Cons Source: SPII, Corporate Development analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 9

Hybrid approach: Identify/execute on entertainment opportunities, focus on Sony Corp, continue approach with CPG Hybrid approach: Identify/execute on entertainment opportunities, focus on Sony Corp, continue approach with CPG & fast food SONY Corp Businesses Soft Drinks, Fast Food Broadcast & Cable Business Examples Development Opportunities Commentary • BD Live (online component for Blue • Youth-focused brands: Ray experience) – CPG: Fanta, Coca-Cola, Sprite, • Playstation Home (includes online Mountain Dew content) – Fast food chains that are smaller, local • Crackle: explore synergies between or focused significantly on the combined video capabilities of Southern California market: Jack-in. SPI/SPII & Crackle (at “net cost” the-Box, Taco Bell, Carls Jr. service)? • Deepen existing business relationships at Sony Corp, identify new activities • New opportunities such as BD Live play to SPII’s strengths • Focus on building successful relationships internally ensures business repeatability and growth of activity along the value chain (and higher revenues) • SPII made significant progress in competition for major CPG brands (Fanta, Sprite) during the past year & should continue business development activity in this vertical • SPII can better leverage existing SPE relationships to develop these opportunities (e. g. , draft on theatrical’s meetings with prospective partners as the studio’s ‘internal resource’ for those wishing to utilize it) • Broadcast shows at ABC, NBC, CBS and FOX • Regular and pay cable programming (A&E, Bravo, FX, E!, HBO, Showtime) • Broadcast and cable is the most logical extension of the existing SPE business, assuming SPII can remain price competitive. This should be aggressively pursued given alignment with core competencies and geography Source: SPII, Corporate Development analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 10

Financials: Base case model shows upside in year 3 but FY 10 is key Financials: Base case model shows upside in year 3 but FY 10 is key to establishing a higher success rate from larger accounts downstream Thousands Projected Revenues by Type, FY 10 -12 – Base Case $ 113 $ 143 $ 2, 500 $ 2, 000 Total Awarded Projects Total Revenues* Gross Profit** FY 10 $917 K $1. 02 MM $203 K $1. 81 MM $1. 37 MM $274 K FY 12 $3. 31 MM $2. 57 MM $513 K 3 year total $2. 57 MM Base Case FY 11 $ 3, 000 $6. 04 MM $4. 44 MM $990 K $1. 37 MM $ 1, 500 $1. 02 MM $ 105 $ 83 $ 1, 000 $ 141 $ 30 $ 200 $ 500 $ 700 $ 440 $ 328 $ 235 $ 317 $Sony CPG (Soft 2010 FY Drinks) Key Assumptions $ 372 $ 246 Broadcast, Cable. FY 2011 Dining/Fast Food Categories Total Bid Size per Category Sony, CPG, TV, Fast Food, Online, Other Range: $200 K to $1 MM per category Trend Data 18 months*** *Note: Revenues for projects are paid multi-year (FY 10 includes payments work awarded in FY 09). Forecast assumption is two-year period. Online FY 2012 Other Bid Size Growth Success Rates Range: 25% -100% per category Range: Total average of 48% by FY 12 but ranges 10%-70% per category Cash Flow 50% of awarded bid over 2 years Margins Held constant @ 20% * Note: FY 10 projections include business booked in FY 09 **Note: Based on 20% margin (for detail, refer to Appendix) ***Note: Insufficient data for trend analysis Source: SPII, SPI Finance, Corp Dev Analysis, Jupiter Media, EMarketer CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 11

Financials show incremental upside to SPII to new approach even in FY 10 Business Financials show incremental upside to SPII to new approach even in FY 10 Business Model Opportunity by Scenario, FY 10 Scenario Current Approach* Proposed New Approach Sony-sourced business only** Comments § § Low Medium $178 K % Margin High $102 K 20% New approach improves the overall success rate and allows for growth of bid size as SPII extends to more closely aligned businesses § SPII Gross Profit Current approach may have a slight advantage in the low scenario based on higher costs to support 3 rd party business new approach reduces margins. Model hits greater returns due to success in establishing cable, TV and CPG business $89 K 20% SPII Gross Profit $102 K $203 K $119 K % Margin 20% 20% SPII Gross Profit $102 K $241 K $131 K % Margin 20% 20% *Note: FY 10 Budget modeled one revenue outcome; **Note: Sony-sourced means work created solely through existing Sony-driven relationships Source: SPI Finance, Corp Dev Analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 12

To support 3 rd party business development, initiatives to evaluate include re-branding & more To support 3 rd party business development, initiatives to evaluate include re-branding & more structured approach to innovation Initiative Consider dropping Sony Pictures brand for 3 rd party business Build a site exclusively for SPII Dedicate time for in-house innovation Description Pros Cons • Sony Pictures name often creates biases, causes confusion when soliciting potential business • Eliminates confusion as to SPII’s skill set/ability due to the Sony Pictures name • Imageworks brand is neutral – neither adds nor detracts • Legal issue may exist; possible solution may be DBA • SPII site would specifically tout its services, as well as a dedicated section for clients to improve efficiencies there • Rectifies a major shortcoming – all competitors have a dedicated site • Could serve as main vehicle for branding Imageworks Interactive with potential clients • Requires investment of time/resources* • Allot certain percentage of staff (and limited percentage of time) to product and platform innovation • Areas identified include mobile platforms & open APIs from social media networks • SPII’s cost competitiveness is • Requires investment of more than likely not sustainable time/resources* from a production standpoint; • Risk exists for making the addresses building new wrong choice capabilities to match expanded services • Successful innovation reduces outsourcing to less desirable areas with lower margins • Competitors with SPE business have in-house innovation centers *Note: Both resources investments are singled out in Slide 14 for further analysis Source: SPII, Corp Dev Analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 13

Next Steps • Refocus business development strategy on non-theatrical entertainment opportunities – principally broadcast Next Steps • Refocus business development strategy on non-theatrical entertainment opportunities – principally broadcast & cable – and set-up meetings • Identify specific project opportunities (rather than agency of records bids) to further expand business in CPG, regional fast food opportunities in the near term • Arrange meetings with BD Live and Crackle. com to determine additional Sony Corp business development opportunities • Determine specific costs, benefits with devoting resources to in-house innovation and develop plan to address • Discuss scalability needed to realize revenue thresholds identified in this plan to improve margins as awarded bids size increases CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 14

Appendix CONFIDENTIAL -- Sony Pictures Entertainment Work Product Appendix CONFIDENTIAL -- Sony Pictures Entertainment Work Product

Consumer Products has the highest rate of growth in digital marketing spend among aligned Consumer Products has the highest rate of growth in digital marketing spend among aligned third party business development opportunities $ 5, 000 25% 23% 20% $ 4, 024 $ 4, 000 $ 3, 676 20% 17% 15% $ 3, 000 $ 2, 001 $ 2, 000 $ 1, 325 $ 1, 000 14% 13% $ 725 10% $ 1, 324 $ 833 $ 820 15% CAGR Millions Online Media Buy Spending by Category, 2008 -13 $ 1, 858 $ 1, 445 10% $ 1, 297 $ 1, 022 $ 732 $ 527 $- 5% 0% Consumer Electronics CPG Media/Ent Apparel Auto Travel Games, Toys & Sporting Goods Source: Jupiter Media 2008, Corp Dev analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 16

FY 08, 09 Summary of 3 rd Party Business Development Category Company Description Awarded FY 08, 09 Summary of 3 rd Party Business Development Category Company Description Awarded Status Sony Corp Sony Rewards Jeopardy Club $21, 000 Awarded SPE Publicity Site Redesign $266, 640 Awarded $266, 640 SPE Publicity Site Redesign $206, 800 Awarded $63, 631 SPE Publicity Fall/Holiday Preview $21, 120 Awarded $21, 120 Sony Rewards Consulting Viral Games $140, 000 Awarded SPE In-Flight Site Redesign $49, 720 Awarded Ghostbusters (SPE Global) Creative & Site Development $52, 500 Awarded Sony Music “Menudo” $3, 900 Awarded $3, 900 Fanta Interactive Campaign $328, 200 Awarded $75, 000 Coke Zero Development $20, 000 Awarded FOXSports. com Fantasy Baseball / Football $50, 000 Awarded FOX Sports. com Fantasy Baseball $28, 500 Awarded Stand Up to Cancer Development $147, 500 Awarded (at ‘net cost’) Soft Drinks FY 08 Recognized FY 09 Recognized FY 10 Projected* $21, 000 $143, 169 $140, 000 $49, 720 $52, 500 $253, 200 $20, 000 Sports Not-for-Profit Subtotal, Awarded $50, 000 $28, 500 $1, 356, 280 $107, 000 $450, 011 $40, 500 $379, 069 $527, 200 Source: SPII, SPI Finance, Corporate Development analysis Legend Sony Soft Drinks (CPG) Travel (Other) Sports Fast Food page 17

FY 09 Summary of 3 rd Party Business Development Category Company Description Amount Status FY 09 Summary of 3 rd Party Business Development Category Company Description Amount Status Soft Drinks Sprite Europe Pan-European Campaign $1, 350, 000 Not Awarded Coke Zero Europe Viral Video Campaign $550, 000 Not Awarded Powerade Viral Social Campaign $136, 000 Not Awarded Sports Los Angeles Kings Agency of Record $225, 000 Not Awarded Dining (Fast Food) Fatburger Agency of Record $300, 000 Not Awarded Sony Corp DADC Creative Development $150, 000 Not Awarded Travel (Other) New Mexico Tourism Interactive Campaign $550, 000 Not Awarded Subtotal, Not Awarded $3, 261, 000 Legend Sony Soft Drinks (CPG) Travel (Other) Sports/Online Fast Food (Dining) Source: SPII, Corporate Development analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 18

Financials show modest revenue gains from FY 10 -12; upside exists if business is Financials show modest revenue gains from FY 10 -12; upside exists if business is successfully extended to 3 rd party entertainment/CPG in ’ 10 (TO BE MODIFIED) 3 rd Party Business Plan Financials, FY 10 -12 Total Bid Projects Total Awarded Projects Overall Success Rate* Revenue Cost of Sales Gross Profit Margin*** Base Case FY 10 $2. 25 MM $917 K 40. 1% $1. 01 MM ($812 K) $203 K 20% FY 11 $3. 75 MM $1. 80 MM 48. 4% $1. 37 MM ($1. 09 MM) $274 K 20% FY 12 $6. 73 MM $3. 31 MM 49. 2% $2. 57 MM ($2. 05 MM) $513 K 20% 3 year total $12. 73 MM $6. 04 MM 47. 5% $4. 95 MM ($3. 96 MM) $990 K 20% Total Bid Projects Total Awarded Projects Overall Success Rate* Revenue Cost of Sales Gross Profit Margin*** Low Case FY 10 $2. 15 MM $720 K 33. 5% $893 K ($714 K) $179 K 20% FY 11 $2. 75 MM $1. 10 MM 39. 4% $911 K ($728 K) $182 K 20% FY 12 $4. 58 MM $1. 81 MM 39. 4% $1. 45 MM ($1. 16 MM) $291 K 20% 3 year total $9. 53 MM $3. 62 MM 38. 1% $2. 75 MM ($2. 60 MM) $651 K 20% * Note: Success Rate is projects awarded/projects pitched; **Note: High Case assumes higher success rate due to extension to broadcast/cable accounts and a higher growth rate in projects pitched due to greater agency of record accounts ***Note: Set margin was used to develop costs of sales numbers Source: SPII, Corporate Development analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 19

Financials show modest revenue gains from FY 10 -12; upside exists if business is Financials show modest revenue gains from FY 10 -12; upside exists if business is successfully extended to 3 rd party entertainment/CPG in ’ 10 (TO BE MODIFIED) 3 rd Party Business Plan Financials, FY 10 -12 Total Bid Projects Total Awarded Projects Success Rate* Revenue Cost of Sales Gross Profit Margin*** High Case** FY 10 $3. 2 MM $1. 30 MM 40. 5% $1. 25 MM ($964 K) $241 K 20% FY 11 $5. 65 MM $2. 75 MM 48. 7% $2. 02 MM ($1. 62 MM) $405 K 20% FY 12 $10. 30 MM $5. 10 MM 49. 3% $3. 92 MM ($3. 14 MM) $784 K 20% 3 year total $19. 15 MM $9. 13 MM 47. 7% $7. 15 MM ($5. 72 MM) $1. 43 MM 20% * Note: Success Rate is projects awarded/projects pitched; **Note: High Case assumes higher success rate due to extension to broadcast/cable accounts and a higher growth rate in projects pitched due to greater agency of record accounts ***Note: Set margin was used to develop costs of sales numbers Source: SPII, Corporate Development analysis CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 20

P&L, FY 10 Budget ($000) CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 21 P&L, FY 10 Budget ($000) CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 21