BUDGET PRESENTATION Fiscal Year 2014

Transcription

1 BUDGET PRESENTATION Fiscal Year 2014 February 2013 DRAFT February 22, 2013

2 2 [Updated on: 02/06/2013] Contents Accomplishments 3 SPT Consolidated Results 5 SPT Networks 15 U.S. Distribution 19 U.S. Advertising Sales 24 International Distribution 28 International Production 36 U.S. Production 40 Risks & Opportunities 51 Appendix 53

3 3 Accomplishments [Updated on: 01/18/2013] SPT achieved several critical milestones in and will outperform budget despite a challenging economic environment: Networks Record revenue ($1.5BN) and EBIT ($268MM) representing the 9th and 6th years respectively of consecutive year-on-year growth Despite a difficult IPL season 5, MSM India is on track to deliver $135MM in EBIT Delivered a simple margin of 17.8%, 1.3% higher than achieved FY12 Launched Crackle Mexico on the back of Crackle Brazil, beating the combined operations revenue by 25% in year 1 Moved the existing Russian channels operation to a breakeven position, with a $4.5MM year-on-year improvement in EBIT, and launched a third channel brand, Turbo, into the market Launched Cine Sony into the U.S. market Following the successful global launch of The Firm, Networks invested in, and helped shape, two more global original productions, Hannibal and Crossing Lines that will be coming to AXN s around the world in the coming months Concluded a deal and obtained Tokyo approval to buy out the minority partners in one of Networks biggest and most strategic assets, MSM India Expanded into Canada with launch of SMC and AXN Movies GSN launched its highest rated show ever, The American Bible Challenge Distribution/Ad Sales Successfully launched Queen Latifah on CBS station group Renegotiated an improved pay output deal with Starz, driving an incremental $1.3BN in feature license fees through 2021 slate Delivered higher feature and TV library revenue Grew international business by $100MM, reaching another record year of revenue Closed key output deals with BSkyB (UK), RTL (Germany), Foxtel (Australia), Shaw and Corus/Astral (Canada) Continued growth of our SVOD business, reaching $194MM in Collaborated with our LatAm Production group to create our first spec syndication series, La Prepago Successfully integrated the format business internationally and integrated sales admin groups (international and domestic) Double digit increases for Dr. Oz led the marketplace for all daytime talkers Increased upfront sellout levels by 10% (last year we sold 3,303 units vs. this year 3,618 in all our shows) Combined Digital Sales reached $31.7MM (includes crackle) First team to offer dynamic ad insertion commercially across multiple VOD carriers with FEARnet Collaborated with Networks group on Crackle LatAm launch, Sony Electronics through SOHU/China on new Sony device offering SPRI on worldwide franchise releases and with U.S. Production to secure return of Unforgettable Achieved CPM increases in all shows Achieved CPM increases in all shows for 2012 up-front Highlight was Dr. Oz garnering top CPM in daytime talk FEARnet VOD is the first to sell dynamic ad insertion (DAI) in the U.S. Production (next page list to be shortened for final version)

4 4 Accomplishments (continued- 2 pages for now; to be shortened) [Updated on: 02/21/2013] Production Breaking Bad surpasses $100MM profitability mark and continues to grow in ratings and revenue into 6th and final season SPT is the only studio have both comedy and drama pilot orders at each of the 4 major broadcast networks for the season Received one of two new series orders for Masters of Sex at Showtime despite limited shelf space. Premiering after Homeland in 2013 Justified season 4 had an industry leading 25% ratings growth helping support a 60% increase in EST transactions SPT had key syndication sales for Community, Rules of Engagement and Justified all sold in multiple platforms SPT produced the #1 non-sports telecast ever on cable, Hatfields & McCoys with DVD and SVOD sales far exceeding original sales estimates SPT's non-scripted hit series Shark Tank on ABC soared to new ratings highs to become Friday night's #1 show Worked closely with international sales to continue Unforgettable resulting in record breaking ratings on for France s TF1 and demonstrating strength worldwide SPT series and MOWs continue to be recognized for excellence with 16 Emmy and 5 Golden Globe nominations Wheel of Fortune and Jeopardy! renewed through the 15/16 season Built strong Senior Management Team and created culture of transparency, accountability and proactivity Established creative and business collaboration across divisions and countries Expanded and strengthened global network of production companies Identified International Production acquisition targets for

5 5 [Updated on: 1/18/2012] SPT Consolidated Results

6 6 Gross Revenue Generated by SPT for All Product [Updated on: 02/05/2012] Forecast MRP

7 7 Gross Revenue Generated by SPT For All Product [Updated on: 02/05/2013] vs Generated Revenue Q4 Forecast Variance MRP* Variance Variance U.S. Distribution (62) (81) Int'l Distribution 1,600 1, ,712 1, Int'l Production (31) (56) 148 U.S. Production & Ad Sales 1, (156) 1,077 1,019 (58) 55 Networks 1,675 1,491 (184) 1,961 1,928 (33) 437 Total 5,348 5,090 (258) 5,905 5,718 (187) 628 * MRP restated to reflect transfer of Crackle Ad Sales to Networks

8 SPT Financial Summary [Updated on: 02/06/2013] TV Product/Network Revenue from All Sources EBIT 5000 EBIT Total Shine Monetization Forecast MRP 0 Forecast MRP Note: EBIT excludes 3Net EBIT of ($8MM )in and ($5MM) in forecast, MRP and 8

9 9 SPT Financial Summary [Updated on: 02/06/2013] vs TV Product / Network Revenue Q4 Forecast Variance MRP Variance Variance U.S. Distribution (1) Int'l Distribution Int'l Production (29) (52) 144 U.S. Production & Ad Sales 1,814 1,723 (91) 1,914 1,911 (3) 188 Networks 1,690 1,504 (186) 1,961 1,928 (33) 424 Total 3,823 3,525 (298) 4,365 4,283 (82) 758 vs EBIT Q4 Forecast Variance MRP Q4 vs Variance U.S. Distribution (1) Int'l Distribution (45) (44) 1 (50) (47) 3 (3) Int'l Production 9 5 (4) U.S. Production & Ad Sales (38) (32) Networks (39) Total (25) 42 Shine Monetization (12) Total - (Including Monetization) (25) 30 3D Networks (8) (5) 3 (5) (5) - -

10 10 EBIT Forecast vs. [Updated on: 2/06/2013] 1,200-1, EBIT Weaker Network Ad Sales (excl India) Teleset Impairment MOWs (esp. Hatfields & McCoys) Other

11 EBIT vs. MRP MRP EBIT Weaker Network Ad Sales (excl India) 47 5 New Broadcast Series Est vs. 3 in MRP

12 12 EBIT Before Monetization vs. to EBIT Bridge [Updated on: 2/06/2013] 1,200-1, Forecast EBIT GSN Growth (incl. Purchase Price Amort) Final Season of Breaking Bad - EBIT

13 13 Net Overhead [Updated on: 02/01/2013] Forecast MRP

14 Net Overhead Summary [Updated on: 02/25/2013] vs Gross Overhead Q4 Forecast Variance MRP Variance Variance U.S. & Int'l Networks -Existing (14) U.S. & Int'l Distribution U.S. & Int'l Marketing & Research U.S. Production & Ad Sales Int'l Production (6) 10 Subtotal (4) (2) 58 Networks - New Investment 7 - (7) Total Gross Overhead (11) vs Net Overhead Q4 Forecast Variance MRP Variance Variance U.S. & Int'l Networks -Existing (14) U.S. & Int'l Distribution U.S. Production & Ad Sales (2) - Int'l Production (5) 5 Subtotal (6) (5) 47 Networks - New Investment 7 - (7) Total Net Overhead (13) (3) 71 vs. Headcount Q4 Forecast Variance MRP Variance Variance U.S. & Int'l Networks -Existing 2,046 2, ,159 2, U.S. & Int'l Distribution (4) (2) 7 U.S. & Int'l Marketing & Research U.S. Production & Ad Sales Int'l Production (85) (1) Subtotal 2,734 2, ,991 2,958 (33) 165 Networks - New Investment (2) 529 Total Headcount 2,764 2, ,567 3,532 (35) 694 Unfavorable FX impact in budget vs. MRP of $(1)MM $(1)MM and $(5)MM for Int l Distribution, Int l Production and Int l Networks, respectively) 14

15 15 [Updated on: 1/18/2012] SPT Networks

16 16 SPT Networks Outlook [Updated on: 1/31/2012] will see Networks cross the $300MM EBIT threshold, over a 40% CAGR across seven consecutive years of record earnings Major new financial milestones will be achieved by SPT Networks in Revenue will surpass $1.9BN EBIT will exceed $300MM after breaking $250MM for the first time in This represents year-on-year growth of 28% (Revenue) and 26% (EBIT) This substantial earnings growth will be achieved while also continuing to invest in the business to help sustain the strong growth profile into the future In addition to the nine new operations that were/will be launched/acquired in, funds have been included in the to invest in several new operations Specific growth opportunities factored into the include Significantly increasing the ad sales and technical infrastructure resources available to Crackle U.S. to monetize the market opportunity Launching Networks first wholly owned channel in Australia Launching a female focused Crackle to compliment the strong start made by Crackle in Latin America Multiple library movie channel opportunities in Europe Acquisition of TV Asia, a Hindi language library channel broadcasting in the U.S. Enter Turkey, the next important emerging market In addition to seeking out new opportunities, there are significant challenges for the core business globally Ad sales continues to need overhead investment to achieve the 20%+ year-on-year growth anticipated across the portfolio Content costs continue to climb quickly with new costs often out-stripping revenue increases, increasing margin pressure Increasing investment in original content is an important hedge against increasing content acquisition costs and producing more locally is becoming a regulatory requirement in certain parts of the world Increasing localization of the channels to maintain a strong relationship with the viewers as markets continue to fragment

17 Networks Financial Summary Revenue EBIT [Updated on: 02/05/2013] % GROWTH % GROWTH Challenge Forecast MRP 0 Forecast MRP $268MM EBIT represents a 9% growth year-on-year, while revenue will cross the $1.5BN marker for the very first time. Despite difficult ad sales conditions continuing across most of the world, the EBIT forecast has been kept at the Q2 reforecast level. A ($44MM) IPL EBIT hit and an unfavorable ($18MM) FX impact are the biggest contributors to the EBIT downside is projected to exceed the MRP level for EBIT, which represents a 26% year-on-year increase. Strong projected growth in India, Europe, GSN and Crackle U.S. drives the portfolio upwards. Included in the is a $30MM challenge, two thirds of this expected to be delivered by India 17

18 Networks Financial Summary Revenue vs Forecast Variance MRP Variance Variance International EMEA (27) Latin America (29) (15) 34 Asia (28) (8) 15 India (incl. MSM/Ch 8) (60) New Launches/Committed 9 - (9) New Opps (42) 92 Total International 1,301 1,148 (153) 1,506 1,465 (41) 317 U.S. GSN (19) (3) 49 Crackle U.S./ELI (11) (9) 27 Sony Movie Channel/CineSony 14 8 (6) (4) 8 Games New Launches/Committed Total U.S (34) Home Office/ Other (1) Challenge Total 1,690 1,504 (186) 1,961 1,928 (33) 424 [Updated on: 02/22/2013] EBIT vs Forecast Variance MRP Variance Variance International EMEA (9) (2) 16 Latin America (17) (7) 1 Asia (3) (3) 2 India (incl. MSM/Ch 8) New Launches/Committed (11) (2) 9 (4) (6) (2) (4) New Opps (20) (18) 2 (18) Total International (11) (9) 17 U.S. GSN (3) Crackle U.S./ELI (2) (10) (8) (1) (1) - 9 SMC/CineSony (9) (10) (1) (3) (4) (1) 6 Games FEARnet/Hollywood Suite (1) (1) (1) Total U.S (11) (2) 34 Home Office (31) (28) 3 (32) (31) 1 (3) General Challenge 18 3 (15) MSM India Challenge 10 5 (5) Total (39) NET (8) (5) 3 (5) (5)

19 19 [Updated on: 1/18/2012] U.S. Distribution

20 20 U.S. Distribution Outlook [Updated on: 01/15/2013] Maximize First-Run and Off-Net series value: Dr. Oz 3rd cycle renewals. Sold through 13/14 season Queen Latifah sell double runs and launch the show in September 2013 with ratings target of 2.5 Happy Endings SVOD/Cable/Broadcast Community upgrade time periods and secure double runs to ensure we hit target rating Seinfeld Sell 5th cycle after current cycle ends September 2014, marking the first time a show has been sold into a 5th cycle Expand partnerships with all clients to exploit new revenue opportunities Pursue diginet space cash and barter opportunities (e.g., Cozi, Bounce TV, Tribune.3) Negotiate guild waivers to free up residually-locked current and library TV product for monetization in broadcast, cable and diginet space Broaden business with networks that demand movie volume (e.g., AMC, IFC, HDNet Movies) Explore First-Run opportunities with station groups who want to own/invest in original programming (e.g., Tribune, NBC, Scripps, Sinclair, Raycom) Continue to capitalize on demand for content across premium subscription services (Netflix, Hulu, Amazon) SVOD services pay highest fees for current TV product with early avails ( catch-up rights 2-4 weeks prior to broadcast season in coordination with SPHE to protect DVD/EST) and for exclusivity (includes limiting authenticated and unauthenticated AVOD) SVOD pricing has leveled off for current TV, library and independent films Explore arbitrage of SPA titles from Starz to SVOD Strategically buy back rights licensed for features and TV series to take advantage of re-license opportunities for incremental fees

21 21 U.S. Distribution Financial Summary [Updated on: 02/01/2013] Gross Revenue Profit Contribution EBIT Chart Title Chart Title Forecast MRP 0 Forecast MRP 0 Forecast MRP Pay DBO* $1.2BN $1.3BN $1.19B N $1.08B N and include Starz bonus of $47.5MM and $46.1MM, respectively (remains in U.S. Distribution EBIT) * Cumulative domestic box office (DBO) for Pay Window feature avails adjusted for rate-card caps under the Starz deal.

22 22 U.S. Distribution Financial Summary [Updated on: 02/01/2013] Gross Revenue vs Forecast Variance MRP Variance Variance 2011 to 2013 Major Releases (Pay) (5) (62) 2010 to 2012 Major Releases (Free) (19) (68) Other Current (7) (1) 6 Library Total MPG (20) (116) Total WW Acquisitions Starz Bonus (1) First Run and off-net Syndication (53) 24 Library Total TV (44) 27 Total (62) (81) Profit Contribution vs Forecast Variance MRP Variance Variance MPG (6) (52) WW Acquisitions TV (6) (3) Total (11) (51) G&A (14) (14) - (14) (14) - - Profit Contribution (11) (51) Transfer to Product Owners (298) (328) (30) (289) (278) EBIT (1)

23 23 U.S. Distribution Library Gross Revenue [Updated on: 02/01/2013] Total MPG TV Forecast MRP

24 24 [Updated on: 1/18/2012] U.S. Ad Sales

25 25 U.S. Ad Sales Outlook [Updated on: 01/15/2013] Current National Advertising Market Strong up-front has not contributed to a strong scatter market at the end of Uncertain economy and lack of a broadcast hit have contributed to current marketplace anemia. First quarter options were very low (single digit percentages) and could indicate improving market strength. Advertiser still demanding of integrations / sponsors to identify partners for spend. Maximize First-Run and Off-Net series Use daytime strength to drive volume in Off-Nets Get market share with comedy lineup Seinfeld / Rules / King of Queens / Community / Til Death Emphasize the benefits of syndication in the C3 landscape as industry evaluates a shift in measurement Continue to look for revenue growth opportunities in digital and emerging businesses includes PlayStation Network, FEARnet, Sony Movie Channel and building strategy for Sony IPTV Explore opportunities with distribution in the diginet space Create revenue opportunities in Dr. Oz and Queen Latifah by securing integration partnerships Lock in new advertisers and protect against ratings shortfall

26 U.S. Ad Sales Financial Summary [Updated on: 02/06/2013] Gross Revenue Profit Contribution EBIT Chart Title 0 Chart Title (2) (4) (6) (8) (8) (8) 50 5 (10) (10) 0 Forecast MRP 0 Forecast MRP (12) (11) Forecast MRP MRP restated to reflect transfer of Crackle ad sales to Networks. 26

27 U.S. Ad Sales Financial Summary [Updated on: 02/06/2013] vs Forecast Variance MRP Variance Variance Gross Revenue KING OF QUEENS (2) TIL DEATH 5 4 (1) 5 4 (1) - RULES OF ENGAGEMENT (1) (2) 11 COMMUNITY SEINFELD (7) (1) - DR OZ (9) (3) 1 NATE BERKUS 7 6 (1) (6) QUEEN LATIFAH WHEEL OF FORTUNE, JEOPARDY! All Other Subtotal (16) (5) 37 Playstation Fearnet 2 1 (1) 5 3 (2) 2 Other Third Party Distribution (1) Crackle (2) (13) Total Gross Revenue (16) (5) 37 Cost Related to Revenue (145) (132) 13 (183) (183) - (51) Ad Sales Overhead (15) (15) - (16) (16) - (1) Profit Contribution (3) (5) (15) Transfer to Product Owner (40) (36) 4 (24) (19) 5 17 SPTAS EBIT (11) (10) 1 (8) (8) - 2 MRP restated to reflect transfer of Crackle ad sales to Networks. 27

28 28 [Updated on: 1/18/2012] International Distribution

29 29 International Distribution Outlook Will outperform historical high revenue in, reaching a new record in Revenue of $1.73BN projected in despite challenges $60MM impact from changes in feature and TV product assumptions Difficult deal renewals in France and Spain for Pay TV Exploit growth opportunities with SVOD as new services launch around the world Amazon (Germany, France, Italy, Spain, Japan) Netflix (Benelux) Telmex, DLA, Net Brazil (Latin America) Work within SPT to find new ways to create shows EMEA co-productions with U.S. Production UK series with Left Bank and continued spec syndication series with International Production Original series co-productions with Networks Collaborate across Sony divisions to maximize opportunities Negotiate carve-outs (SEN) Work with WWAG to secure movies to fill pay TV slots Work with Networks to help secure channel carriage in Australia while capitalizing on content licensing Continue to work closely with SPHE digital group and other SPE divisions to maximize value of all product through new windowing structures Leverage newly integrated format sales business to maximize value of catalog and successfully launch new formats Supplement resources in key markets to support continued growth [Updated on: 2/07/2013] Key Deal Road Map Country/ Deal Estimated Completion Estimated Term Value ($MMs) Brazil FTV Output Extension Q4 5 Years 105 Pan LatAm HBO Pay Extension Q Years 350-1,000 France FTV Q1 3 Years Scandinavia Pay TV and FTV Q2 3 Years Spain Pay TV Q3 3-5 Years Russia FTV Q3 3 Years Australia FTV Q2 3-5 Years MM France Pay TV Q4 3-5 Years Total $1BN - $1.9BN

30 30 International Distribution Financial Summary [Updated on: 02/01/2013] Contribute $1.73BN in revenue and $647MM in profit in Gross Revenue Profit Contribution EBIT Revenue FX Impact Total Profit Contribution Total FX Impact EBIT FX Impact Total Forecast MRP 0 Forecast MRP -60 Forecast MRP

31 31 International Distribution Financial Summary [Updated on: 02/01/2013] Gross Revenue vs Forecast Variance MRP Variance Variance MPG Current (11) (35) (6) MPG Flow (29) MPG Library Total MPG (14) (34) WW Acquisitions TV Current (44) TV Library TV Int'l Production (4) TV Int'l Acquired/ Other Total TV (33) Total 1,600 1, ,712 1, Profit Contribution vs Forecast Variance MRP Variance Variance MPG (4) (24) WW Acquisitions (1) TV (2) (11) Total (4) (36) G&A (49) (54) (5) (57) (59) (2) (5) Profit Contribution (6) (41) Transfer to Product Owners (648) (732) (84) (703) (694) 9 38 EBIT (45) (44) 1 (50) (47) 3 (3)

32 32 International Distribution Library Gross Revenue [Updated on: 1/16/2013] Forecast MRP Total MPG TV

33 33 Key Feature and TV Drivers [Updated on: 01/18/2013] (figures in thousands) U.S. Distribution Int l Distribution Feature Films/ WW Acquisitions Television Total Feature Films/ WW Acquisitions Television Total Title Rev Title Rev KARATE KID 20,200 RULES OF ENGAGEMENT 71,800 GROWN UPS 18,700 DR OZ 61,300 GIRL WITH THE DRAGON TATTOO 16,700 JUSTIFIED 18, JUMP STREET 14,700 QUEEN LATIFAH 14,600 THE VOW 14,700 Y&R/ Days of Our Lives 10,700 SPIDER-MAN ,700 All others individually < $9M 27,300 MEN IN BLACK 3 14,700 THE OTHER GUYS 13,700 SALT 13,600 JACK & JILL 13,500 MONEYBALL 13,400 THINK LIKE A MAN 13,300 JUST GO WITH IT 11,800 SOCIAL NETWORK 11,700 GREEN HORNET 11,300 HOPE SPRINGS 10,900 UNDERWORLD 4 [3D] 10,500 ARTHUR'S CHRISTMAS (AARDMAN) 10,100 TOTAL RECALL 10,000 GHOST RIDER 2 [3D] 9,400 All others individually < 9M 129,700 Starz Bonus 47,500 Feature Library 64,000 TV Library 44,100 Subtotal Features 461,300 WW Acquisitions (all individually < 9M) 39,900 Title Rev Title Rev MEN IN BLACK 3 25,000 Y&R/Days of Our Lives 49,200 KARATE KID 24,500 UNFORGETTABLE 25,900 SMURFS 23,800 DROP DEAD DIVA 20,400 GROWN UPS 23,800 LAST RESORT 18,100 AMAZING SPIDER-MAN, THE 21,300 BREAKING BAD 17, ,100 MOB DOCTOR 15,900 SALT 16,600 JUSTIFIED 15,600 ADVENTURES OF TINTIN, THE 15,700 HOUSE OF CARDS 15,100 ARTHUR CHRISTMAS 15,200 DAMAGES 14,600 PIRATES! BAND OF MISFITS, THE 14,600 NECESSARY ROUGHNESS 14,200 GIRL WITH THE DRAGON TATTOO, THE ( 14,500 DR. OZ 13,900 JACK AND JILL 13,300 WHO WANTS TO BE A MILLIONAIRE 13,800 FRIENDS WITH BENEFITS 13,000 COMMUNITY 13,100 RESIDENT EVIL: AFTERLIFE 12,900 FRANKLIN AND BASH 11,100 EAT PRAY LOVE 11,800 HAPPY TOGETHER (RUSSIA) 10,300 MONEYBALL 11,700 CLIENT LIST 10,000 BAD TEACHER 11,400 EVERYBODY LOVES RAYMOND (RUSSIA) 9,800 BOUNTY HUNTER, THE 10,800 THE BIG C 9,400 UNDERWORLD AWAKENING 10,200 All others individually < $9M 139,400 SOCIAL NETWORK, THE 9,700 CLOUDY WITH A CHANCE OF MEATBALL 9,200 OTHER GUYS, THE 9,100 All others individually < 9M 458,300 Feature Library 200,000 WW Acquisitions (all individually < 9M) 162,500 TV Library 70,000 Total 501, , ,000 Total 1,158, ,000 1,665,000

34 34 Key Feature and TV Drivers [Updated on: 02/05/2013] (figures in thousands) U.S. Distribution Int l Distribution Feature Films/ WW Acquisitions Television Total Feature Films/ WW Acquisitions Television Total Title Rev Title Rev GROWN UPS 2 14,700 DR OZ 60,400 WHITE HOUSE DOWN 14,700 HAPPY ENDINGS 45,600 SMURFS 2 14,700 COMMUNITY 44,300 AFTER EARTH 14,700 QUEEN LATIFAH 14,600 ELYSIUM 14,700 RULES OF ENGAGEMENT 10,700 HOTEL TRANSYLVANIA 14,700 Y&R/Days of Our Lives 10,400 ZERO DARK THIRTY 14,600 BREAKING BAD 9,600 THE VOW 14,400 All others individually < $9M 32,400 GIRL WITH THE DRAGON TATTOO 11,800 END OF THE WORLD 11,600 MORTAL INSTRUMENTS 10,100 All others individually < $9M 122,100 Starz Bonus 47,100 Feature Library 72,400 TV Library 47,500 Subtotal Features 345,200 LOOPER 10,100 EVIL DEAD (2013) 9,100 WW Acquisitions (all individually < 9M) 28,900 Subtotal WW Acquisitions 48,100 Title Rev Title Rev SMURFS, THE (2011) 26,900 13/14 Net Dramas 52,000 HOTEL TRANSYLVANIA 20,000 Y&R/Days of Our Lives 50,500 DJANGO UNCHAINED 17,900 Unforgettable 31,600 AFTER EARTH 17,700 Necessary Roughness 18,600 BAD TEACHER 15,700 House of Cards 16,700 AMAZING SPIDER-MAN, THE 15,100 Masters of Sex 16,200 GIRL WITH THE DRAGON TATTOO, THE ( 15,100 Who Wants to be a Millionaire 16,200 ELYSIUM 13,900 Client List 13,700 FRIENDS WITH BENEFITS 13,800 Justified 13,100 TOTAL RECALL (2012) 11,200 Drop Dead Diva 12,100 ADVENTURES OF TINTIN, THE 10,400 13/14 Net Comedies 15,800 HERE COMESTHE BOOM 10,300 Dr. Oz 11,500 SOCIAL NETWORK, THE 9,200 Franklin and Bash 11,300 All others individually < $9M 563,400 Breaking Bad 10,900 Feature Library 200,000 Community 10,800 WW Acquisitions (all individually < 9M) 161,500 13/14 Cable Dramas 14,800 All others individually < $9M 221,100 TV Library 75,000 Total 393, , ,900 Total 1,122, ,900 1,734,000

35 Distribution Sales Slate [Updated on: 01/16/2013] (figures in thousands) (000) U.S. Title Pay Free Intl ELYSIUM 15,440 15,510 52,480 AFTER EARTH 15,440 20,740 74,090 END OF THE WORLD 12,216 11,000 10,920 GROWN UPS 2 15,440 19,850 41,530 FOXCATCHER 4,150 1,650 1,000 CAPTAIN PHILLIPS 13,570 8,950 43,020 ONE DIRECTION 3, ,800 WHITE HOUSE DOWN 15,440 18,370 69,340 MONUMENTS MEN 14,810 10,230 NR AMERICAN BS 9,060 3,640 NR Total 118, , ,180 (000) U.S. Title Pay Free Intl CARRIE NR NR 7,850 MORTAL INSTRUMENTS 10,970 4,570 NR BATTLE OF THE YEAR [3D] 8,230 2,690 21,500 NO GOOD DEED 7,730 3,620 9,900 ABOUT LAST NIGHT 9,120 3,640 8,200 Total 36,050 14,520 47,450 Based on film slate as of 12/2012 The slate will generate $780MM in global TV sales SONY PICTURES CLASSICS (000) U.S. Title Pay Free Intl COMPANY YOU KEEP, THE 1, NR LOVE IS ALL YOU NEED NR TBD# , TBD# PATIENCE STONE, THE NR TBD# NR WADJDA NR I'M SO EXCITED 2, NR FILL THE VOID TBD# NR TBD# , ,100 TBD# NR TBD# , NR TBD# TBD# NR TBD# NR TBD# Total 11,834 3,050 3,640 (000) U.S. Title Pay Free Intl SMURFS 2 15,440 6,390 58,090 CLOUDY 2 11,470 7,770 43,890 Total 26,910 14, ,980 35

36 36 [Updated on: 1/18/2012] International Production

37 37 International Production Achievements [Updated on: 01/22/2013] Built strong Senior Management Team and created culture of transparency, accountability and proactivity Drove focus on creation/acquisition of IP that travels You re Booked, Raid The Cage, 5 minutes to A Fortune Strategic deployment of central development fund Reformatted creative retreats Took operational burden off Creative Aggressively maximized benefits of U.S. studio ownership to operating companies Established creative and business collaboration across divisions and countries AXN Pilot competition Launched new business model for Spanish speaking Latin America with SPT Distribution Strong collaboration with Sony Music in developing new IP Expanded and strengthened global network of production companies Majority investments in UK companies Left Bank and Silver River Restructured Toro (Italy) In process of divesting interest in Tuvalu Brought production in house in Russia Launched Egyptian Telenovela unit Extended Gogglebox principal deals for up to 5 years Indentified acquisition targets for

38 38 International Production Outlook [Updated on: 01/22/2013] Create IP that travels Continue expansion in IP creation territories and high growth markets Continue to increase collaboration across regions and SPT divisions Succession planning for key leaders across division

39 39 International Production Financial Summary Revenue EBIT [Updated on: 2/06/2013] 500 Total Shine Monetization Shine Monetization Incl. ($3MM) impairment for Teleset 0 FY12 Actual Forecast MRP 0 Teleset Impairment Forecast Lower than expected volume of commissions, primarily in Italy, Silver River and Tuvalu; productions delayed in the Middle East due to political unrest Lower than expected volumes was partially offset by unbudgeted relicensing of programs in Russia and lower central development fund spend

40 40 [Updated on: 1/18/2012] U.S. Production

41 41 U.S. Production Outlook [Updated on: 1/31/2013] Content will continue to be created and sold across all platforms Digital / Online Capitalize on growth opportunities in emerging platforms (Amazon, Netflix, Hulu) Cable Consistently profitable with some of the most critically acclaimed and respected series in the industry Broadcast Leverage the strength of our international partners to increase global demand and extend life of series on air in the U.S. Continue to invest in top tier creative talent Further Strengthen Portfolio by Creating and Selling Content of all Genres Drama Maximize value of worldwide appetite for quality drama across all platforms with emphasis on broadcast and cable Comedy Maintain and support a strong comedy strategy as part of our overall portfolio business as comedy is currently experiencing significant growth, increased network demand, and sustained value in the syndicated marketplace First Run Syndication Successfully launch the new Queen Latifah daytime series for the 13/14 broadcast season Long Form Continue to be the industry leader in MOW and limited series production, expanding our partners to include networks like FX, SyFy, Starz and Cinemax Non Scripted Capitalize on growth opportunities in cable (USA, TBS, AMC, WE) and continue to strengthen our foothold in broadcast

42 U.S. Production Assumptions [Updated on: 02/06/2013] 12/ 13 13/ 14 Changes Season Season since MRP Community 4th 5th 13 vs 22 episodes Rules Of Engagement 7th Happy Endings 3rd 4th NETWORK Unforgettable 2nd Production shift to Mob Doctor 1st Not returning Last Resort 1st Not returning Made In Jersey 1st Save Me 1st SYNDICATED SERIES 13/14 New Comedy 3 3 new vs 2 assumed 13/14 New Drama 2 2 new vs 1 assumed 13/14 Pilots vs 9 assumed 14/ 15 Pilots 9 The Young and the Restless 41st 42nd Days of Our Lives 48th 49th Dr. Oz 4th 5th Queen Latifah 1st Wheel of Fortune 30th 31st Jeopardy! 29th 30th Big C 3rd Boondocks 4th No 5th season and production shift to Breaking Bad 6th CABLE Drop Dead Diva 4th 5th Franklin and Bash 3rd 4th Justified 4th 5th Necessary Roughness 2nd 3rd 38 vs 44 episodes Client List 2nd 3rd 3rd season added Men at Work 1st / 2nd 3rd Accelerated order of 2nd & 3rd Masters of Sex 1st 2nd Pilots 1 3 New Drama Series 2 Shark Tank 4th 5th 85 vs 73 episodes Pyramid 1st 2nd NON-SCRIPTED Pilots 3 3 New Cable Series 1 1 new cable vs 2 assumed New Network Series 1 Work-For-Hire / Distribution 1 2 Not previously assumed MADE-FOR-TV MOVIES Movie 9 9 Mini-Series

43 Projected Value of Shows in Syndication [Updated on: 1/29/2013] Should we indicate Dr. Oz as a distribution show? SHOWS IN SYNDICATION / EXPECTED TO SYNDICATE ANTICIPATED VALUE TO SPE1 Current Examples Breaking Bad $109MM Dr. Oz $60MM Rescue Me $54MM Rules of Engagement $28MM cp Community $27MM cp Justified $27MM cp Hatfields & McCoys $11MM Projected Examples Dr. Oz (7 Seasons) $117MM Queen Latifah (6 Seasons) $115MM Michael J Fox Series (6 Seasons) $104MM Happy Endings (6 Seasons) $40MM cp Attractive returns with upside potential for shows that prove to be a hit Note: 1. Value on an ultimate basis; as of January [2013] for Current and most current estimates for 43

44 44 U.S. Production Current Series, Pilots & Development Cost [Updated on: 02/05/2013] Revenue EBIT Forecast MRP 0 Forecast MRP

45 U.S. Production Current Series, Pilots & Development Cost [Updated on: 02/05/2013] 45 vs Forecast Variance MRP Variance Variance Broadcast Network: Scripted Pilots and Series (72) (50) 124 Cable Network: Scripted Pilots and Series First-Run Syndication (4) 25 Non-Scripted (32) (18) 9 Total Before Embassy Row 1,186 1,115 (71) 1,288 1,283 (5) Embassy Row (13) (12) 15 Subtotal 1,225 1,141 (84) 1,341 1,324 (17) 183 Days of Our Lives, The Young & the Restless (4) (9) 1 Wheel of Fortune, Jeopardy! (10) Total Daytime & Jeopardy! & Wheel of Fortune (7) (9) Total 1,614 1,540 (74) 1,738 1,714 (24) 174 EBIT vs Forecast Variance MRP Variance Variance Broadcast Network: Scripted Pilots and Series 6 3 (3) 56 (9) (65) (12) Cable Network: Scripted Pilots and Series (20) First-Run Syndication (3) (1) Non-Scripted Development Expense (32) (36) (4) (38) (38) - (2) Total Before Embassy Row (42) (34) - Embassy Row Subtotal (42) (33) Days of Our Lives, The Young & the Restless (2) (4) Wheel of Fortune, Jeopardy! Total Daytime & Games (2) (1) Total (44) (34)

46 U.S. Production Q4 New Series Investment & Development New Series Investment Pool - ($86) 12/ 13 B'cast Pilot Slate 13/ 14 B'cast Pilot Slate 13/14 Network Pilots - 8 in the year vs 3 assumed (5) Q4 Q4 Boondocks - no 5th season. Higher production costs (4) 4 FY12 7 FY Save Me - wholly-owned series vs coproduction in (5) Increased Development (D. Shore, B. Luhrmann) (4) 9 Total 8 Total 9 Total 13 Total Made in Jersey - incremental deficit series (3) Franklin and Bash - increased domestic off-net ultimate 1 Necessary Roughness - primarily early order of ssn3 3 Counter Culture pilot not produced 2 Happy Endings - increased domestic off-net ultimate 5 Cable Pilots - 1 vs 3 assumed 5 Other 1 Net Variances (4) Total Investment Pool - Q4 Forecast ($90) [Updated on: 02/06/2013] Variance Economic Volume Timing Total Q4 Forecast Network: Happy Endings (9) 5 5 (4) Breaking In (2) - - (2) Save Me (3) (5) (5) (8) Mob Doctor (1) Last Resort - (1) (1) (1) Made In Jersey - (3) (3) (3) 12/ 13 Network Pilots (14) (4) 13/ 14 Network Pilots (11) 4 (9) (6) (11) (22) Subtotal Network (40) 5 (9) - (4) (44) Cable: Boondocks - (4) (4) (4) Franklin and Bash (1) Client List - (1) (1) (2) (2) Necessary Roughness (4) (1) Men at Work (2) - - (2) TBD Cable (1) Cable Pilots (6) 5 5 (1) Subtotal Cable (14) (2) 7 (1) 4 (10) Development (32) (4) (4) (36) Total (86) $3 ($6) ($1) ($4) ($90) *Includes Allocation of Departmental Overhead 46

47 47 U.S. Production New Series Investment & Development New Series Investment Pool - MRP ($83) 13/ 14 B'cast Pilot Slate 14/ 15 B'cast Pilot Slate MJ Fox - higher Episode 1 production costs than TBD (3) MRP MRP Necessary Roughness - higher production costs, not a deficit at MRP (1) /14 Pilots - slate of 13 vs 9 assumed (7) FY15 4 FY15 2 new Single Camera Comedies vs 1 Multi cam assumed (11) 9 Total 13 Total 9 Total 9 Total 2 new TBD Dramas vs 1 new drama series assumed (1) Cable Pilots - better economics 2 Net Variances (21) Total Investment Pool - ($104) [Updated on: 2/06/2013] Variance MRP Economic Volume Timing Total Network: TBD Comedy #1 - Coproduction (1) (4) (4) (5) TBD Comedy #2 (7) (7) (7) Michael J Fox Comedy (10) (3) (3) (13) TBD Drama #1 (1) TBD Drama #2 - Coproduction (2) (2) (2) 13/ 14 Network Pilots (8) 3 (10) (7) (15) 14/ 15 Network Pilots (16) - (16) Subtotal Network (36) (3) (19) - (22) (58) Cable: TBD Cable Drama #1 (2) - (2) TBD Cable Drama #2 (3) - (3) Client List Necessary Roughness (1) (1) (1) Cable Pilots (4) 2 2 (2) Subtotal Cable (9) (8) Development (38) - (38) Total (83) ($2) ($19) $0 ($21) ($104) *Includes Allocation of Departmental Overhead

48 48 U.S. Production Library, Net Overhead & Challenge [Updated on: 02/05/2013] Chart Revenue Title Chart EBIT Title Forecast MRP 0 Forecast MRP

49 49 U.S. Production Library, Net Overhead & Challenge (continued) [Updated on: 02/05/2013] Revenue vs Forecast Variance MRP Variance Variance Library (7) All other Products (2) (2) Challenge 14 - (14) Library, Overhead & Challenge (19) EBIT vs Forecast Variance MRP Variance Variance Library All other Products (3) (1) 2 (4) (4) - (3) Net G&A (20) (20) - (22) (20) 2 - Challenge 10 - (10) Library, Overhead & Challenge (6)

50 U.S. Production Product Library [Updated on: 02/06/2013] Revenue EBIT Forecast MRP 0 Forecast MRP Total Ad Sales U.S. Dist. Merch/Other SPHE U.S. TV Int'l TV 50

51 51 [Updated on: 1/22/2012] Risks & Opportunities

52 and Risks & Opportunities [Updated on: 1/31/2013] India challenge General Challenge LatAm Collections slow Pay GSN 50% of Put early FX - Dollar Strengthens by 10% Networks portfolio adsales grow at 15% year on year rather than 20% (excl IPL and Freeview) Freeview trial not successful Venezuela devaluation GSN increased investment in programming for future growth Crackle Adsales targets not fully realized MSM Buy up deal closes in ( scheduled payment then pushes to FY15) IPL payment moved in MSM Buy up deal does not close in Move IPL payment to FX - Dollar weakens by 10% Mexican regulation relaxes re 4 minute rule Pay GSN 50% of Put in [TBD] [TBD] Subtotal Acquisitions/ Divestitures [TBD] Subtotal Total EBIT Cash EBIT Cash (5) (2) (3) (1) - (5) - (121) (45) (30) (25) (20) (3) (3) (5) (5) (10) (10) (3) (2) - (89) - (60) (8) (129) (41) (8) (129) (41)

53 53 [Updated on: 12/6/2012] APPENDIX

54 EBIT Cause of Change vs. and [Updated MRPon: 02/01/2013] / MRP $ - $ - Networks FX (18) 10 Europe weaker economic environment than expected impacting revenues, mostly ad sales (10) (6) Latam region lower than expected due to mostly weaker ad sales and cost inflation (11) (7) Asia region (excl India) seeing revenue pressure especially in Japan with subscribers growth stalling - (3) India strong BAU growth more than offset IPL issues 19 (3) Crackle - Adsales shorftall in to be addressed by augmented sales force in (7) - New Launch fund variances 10 - General challenges (20) 20 Other (2) (1) Distribution Higher acquired product revenue for International Distribution 6 3 [TBD] - - [TBD] - - [TBD] - - [TBD] - - U.S. Production [TBD] - - [TBD] - - [TBD] - - [TBD] - - [TBD] - - International Production [TBD] - - [TBD] - - [TBD] - - [TBD] - - [TBD] - - [TBD] - - [TBD] - - [TBD] - - Total Variance - - Forecast / $ - $ - 54

55 55 EBIT vs. [Updated on: 02/01/2013] Forecast $0 Networks-FX - Networks-European growth mostly from improvement in Central Europe and new UK business growth as per Business plan and Freeview opportunity 15 Networks-MSM India enjoys improved IPL results 21 Networks-GSN increases in TV and digital businesses, augmented by an $8MM lower PPA charge 20 Networks-Crackle U.S. benefits from increased adsales resource to more than double revenues 9 Networks-U.S. Movie channels secure new distribution 6 Networks-New launch fund for (23) Networks-Change in Challenge 22 International Distribution-Nonrecurring participant expense reduction on acquired product & early deal termination settlement fee (3) U.S. Distribution-Slight reduction in annual Starz bonus (1) [TBD] - [TBD] - SPT Group Challenge - SPT Other (66) Total Variance 0 $0

56 International Production Variances to & MRP [Updated on: 2/21/2013] 56 / MRP 9 13 Volume of Commissions/ Deliveries: Less shows commissioned versus budget (Toro, Silver River, Tuvalu, Floresta, Arabia) (9) (2) Other: Russia - higher than budgeted re-license for Happy Together, The Nanny & Raymond Teleset - write off due to impairment (3) - Tuvalu - assumed exit of partnership - (2) TV Licensing - higer revenue on library IP - 2 IGT Advance WWTBAM - 1 Total Variance (4) - Forecast / 5 13

57 57 International Production Detailed Revenue [Updated on: 2/06/2013] Revenue vs Forecast Variance MRP Variance Variance TV Licensing - WWTBAM (1) (1) 2 TV Licensing - Other Formats France (SPT + Starling) (1) (10) 7 Russia (SPT + Lean-M) (6) Germany (3) (7) - UK (Gogglebox + Victory + Silver River) (13) (7) 17 Left Bank (11) 47 Tuvalu (1) 20 3 (17) (15) Toro JV 24 9 (15) (4) 2 Europe (21) (35) 75 Latin America (6) (27) 39 Asia/ Middle East (5) (2) 20 Other Total Other (8) (24) 61 Total Revenue (29) (52) 144

58 58 International Production Detailed EBIT [Updated on: 2/06/2013] EBIT vs Forecast Variance MRP Variance Variance TV Licensing - WWTBAM (3) (2) 1 TV Licensing - Other Formats France (SPT + Starling) Russia (SPT + Lean-M) (6) Germany UK (Gogglebox + Victory + Silver River) 1 (1) (2) 2 1 (1) 2 Left Bank (2) 5 Tuvalu 2 1 (1) 2 - (2) (1) Toro JV 2 (1) (3) Europe (3) 2 Latin America 4 - (4) 4 3 (1) 3 Asia/ Middle East 1 (1) (2) Creative (Development & Overhead) (12) (9) 3 (12) (12) - (3) Overhead including Allocations (8) (9) (1) (9) (9) - - M&A & Other - (1) (1) Total Other (20) (19) 1 (21) (20) 1 (1) Profit Contribution before PPA (2) Purchase Price Amortization (12) (14) (2) (17) (17) - (3) EBIT before Shine Monetization $9 $5 (4) $13 $13 $0 $8 Shine Monetization (12) EBIT after Shine Monetization $20 $17 ($3) $13 $13 $0 ($4)

59 59 SPT Financial Summary Detailed Cash Flow [Updated on: 02/06/2013] vs Cashflow Q4 Forecast Variance MRP Variance Variance Distribution* 2,020 2, ,147 2,085 (62) 15 Production & Ad Sales (396) (432) (36) (484) (522) (38) (90) Networks (47) (20) 12 Sub-Total 1,838 1,805 (33) 1,862 1,742 (120) (63) Networks - Uncommitted Investment Funds (56) (17) 39 (87) (81) 6 (64) Int'l Production - Uncommitted Investment Funds (16) (2) 14 (50) (64) (14) (62) Total Before Monetization and Acquisitions 1,766 1, ,725 1,597 (128) (189) Shine Monetization (12) IPL Installment (delayed until April 2013) (65) - 65 (58) (61) (3) (61) Accelerated A/ R collections in / Maa - Operational/ Purchase Price (106) (108) (106) MSM Buy Up (144) (145) (1) (56) (56) - 89 IPL Payment/ WSG Cash GSN Dividend to DTV (30) (24) 6 (54) (54) - (30) GSN Put Option Payment/ Interest (126) (122) 4 (122) Total After Monetization and Acquisitions 1,538 1, ,433 1,258 (175) (371) 3D Networks (8) (3) 5 (5) (5) - (2) *For comparative & presentation purposes, has been restated by $11m to include AMAZON