Overview of Sony Pictures Television Networks

Materials Presented to Sony Corporation’s

Board of Directors

July 18, 2011

2

Sony Pictures Entertainment (SPE) produces and distributes films and television programs and operates Television Networks around the world

With attractive economics, Television Networks have become key contributors to SPE’s overall profitability and growth

SPE’s portfolio of Television Networks is global, with channels in 159 different countries

Indian Television Networks have been among SPE’s fastest growing and are budgeted to generate $91MM of EBIT in FYE12

MSM is the holding company for most of SPE’s Indian TV Networks assets; SPE owns 62% of MSM

MSM’s channels target Hindi and English speaking audiences in Northern India

SPE is exploring opportunities to expand its holdings to include regional language channels in Southern India

Executive Summary

Television Networks are One of SPE’s Primary Lines of Business

page 3

FilmFilm TV NetworksTV NetworksTV ProductionTV Production

• Produce about 25 films per year

• Acquire select 3rd party product as well

• Distribute films to theaters worldwide

• Make films available on home entertainment platforms including DVD, Blu-ray, VOD and pay TV, after theatrical release

• Operate Imageworks, a production studio for digital animation and visual effects

• Produce & distribute TV shows for broadcast network, cable networks, new media and syndication markets in the U.S.

• Produce local language TV shows in approximately 25 non-U.S. countries

• Own library of approximately 50,000 TV episodes

• Manage and distribute branded networks and channel feeds in multiple languages around the world

• Leading global brands include Animax, AXN and Sony Entertainment Television (SET)

• Own stakes in GSN, 3net and FEARnet in the U.S.

• Operate Crackle.com, an online video network and production studio

3

120 Feeds

159 Countries543+ Million HH

22 Languages

Sony Pictures Television Networks Portfolio

Highly successful network brands benefiting from a global infrastructure

Networks Importance to SPE Earnings

• Diversifies revenue and profit base with higher growth and margins than content business lines

• Provides steady cash flow from dual revenue streams of subscriber fees and advertising revenue

• Delivered 10-year CAGR of 17% for revenue and 43% for EBIT, with current EBIT margins of 21%

• Further exposes the Sony brand and builds long-term asset value

5

($MMs)

SPT Networks Revenue and EBIT growth 2002-2010

FYE02 FYE03 FYE04 FYE05 FYE06 FYE07 FYE08 FYE09 FYE10 FYE110

100

200

300

400

500

600

700

800

900

1,000

0

50

100

150

200

250

Revenue EBIT

Revenue EBIT

India’s Importance to Growth in the Network Portfolio

• India continues to demonstrate strong economic growth– India is expected to be among the top 3 economies in the world by 2050

– As GDP grows, consumers are attaining higher levels of disposable income

– India is the largest youth market in the world, comprised of approximately 340MM individuals under the age of 15

• High growth potential for the Indian TV market– Media industry is forecast to grow at a 12% CAGR through 2014

– With an expected 13% revenue CAGR through 2014, Television is expected to be a primary driver of media growth

– India represents the third largest television audience in the world

– Today, of the 212MM households in India, 61% (130MM) are television households, leaving room for further penetration

6

Indian Media Revenues Growth of Television Households

Source: PWC Report – Indian entertainment and media outlook 2010, FICCI-KPMG India Entertainment and Media Report

180 185 190 195 200 205 210 212

102 109 112 115 119 123 128 130

0

50

100

150`

200

250

2004 2005 2006 2007 2008 2009 2010 2011

Mill

ions

Households TV Households

194 129 512 161

10,506

3,671

4,962

344 323

1,580571

3,477

2,045

5,716

0

4,000

8,000

12,000

Television Film Print Radio Ad InternetAd

Animation& Gaming

Music

2009 2014

Hindi Movies and CricketLaunched in 1999

Family, Comedy, Entertainment Acquired in 2005

Hollywood MoviesLaunched in 2006

(Channel 8)Bengali Movies

Acquired in 2009

A bouquet of channels targeting Hindi, English, and Bengali speaking audiences

Flagship General Entertainment Network

Launched in 1995

• Distribution through OneAlliance, 3rd largest platform in terms of number of channels, 2nd in terms of revenue

• One of the largest aggregators of Hindi programming in the world - over 12,000 hours in library

• With the exception of Channel 8, this bouquet is operated by MSM, a holding company in which SPE holds a 62% stake

SPE Indian Networks: Brands

7

8

• MSM: has two of the top five Hindi GE channels, making MSM a compelling offering for advertisers , and the two channels combined offer the same Gross Rating Points (GRPs) as the #1 channel

– SET: MSM India’s flagship channel has doubled its ratings over the last 18 months; SET fluctuates between being the #3 and #4 ranked general entertainment channel

– SAB: #1 channel among the tier 2 general entertainment channels (overall #5 position) and has taken over all of its competitors (Imagine TV, Star One, Sahara One)

– SET MAX: Consistently ranked the #1 movie channel in India

– PIX: Executing on a strategy to move from #3 to #2 by maximizing on a new output deal with SPT

• Distribution: Bouquet makes MSM highly desirable to cable operators

MSM Financial Performance ($MM)

Revenue EBIT

SPE Indian Networks: Performance

FYE09 FYE10 FYE11 FYE12 Bud-20

0

20

40

60

80

100

($13)

$16

$65

$91

FYE09 FYE10 FYE11 FYE12 Bud0

100

200

300

400

500

600

700

$261

$360 $397

$621

• MSM’s networks are available in Northern India, where a large population can be reached with content in two languages (Hindi and Bengali)

• SPE expanded into regional language channels with the acquisition of Channel 8 in West Bengali in 2009, which offers content for Bengali speaking audiences

• Expanding further into local language channels in Southern India would:

– Give SPE’s networks a national footprint and improve competitive positioning

– Capitalize on growth in advertising for regional language channels, which are growing faster than Hindi language channels

– Enable the Sony brand to better connect with 40% of the Indian population

SPE Indian Networks: Footprint and Growth Opportunities

9

MSMSPE (Channel 8)