BUDGET PRESENTATION Fiscal Year 2015 February 2014

Transcription

1 BUDGET PRESENTATION Fiscal Year 2015 February 2014

2 FY14 Accomplishments SPT achieved several critical milestones in FY14 and will outperform budget despite a challenging economic environment Grown revenue year over year and maintained total EBIT despite significant FX headwinds (in excess of $25MM) Simple margin maintained in high teens (17%) After adjusting for FX, all regions of the portfolio increased their prior year revenue (10%) Launched/acquired several new operations across the world Europe: SET Germany, Animax UK SVOD and UK Freeview expansion Asia: Dori Indonesia was acquired and GEM Vietnam launched Americas: Kalixta was launched in Latin America and Get TV in the US Rationalized operations where appropriate with the profitable sale of SPT interests in Dolphin Ad Sales (UK) and FEARnet (completion pending), as well as a profitable and strategic pending deal with SPT s SPIN properties in Latin America and Brazil Global programming initiatives Hannibal and Crossing Lines earned critical and ratings successes on various SPT channels around the world with both properties recommissioned for 2nd season In spite of ad revenue shortfalls, Crackle is up 50% in terms of unique visitors, enjoyed over 35MM app downloads on mobile and TV and achieved more than 25MM views on its top-rated and Emmy nominated show, Comedians In Cars Getting Coffee US & International Distribution teams combined efforts to create the first global Netflix deal for Breaking Bad and Saul Networks Distributio n/ Ad Sales International Distribution generated another record breaking year of revenue at $1.74BN Generated over $40MM in revenue for Russian sitcoms including The Voronins (Everybody Loves Raymond) and Happy Together (Married with Children) Sold 5th cycle Seinfeld and 3rd cycle King of Queens Sold Young & the Restless to TVGN as Soapnet shutdown Struck significant long-term deals in major markets with key partners such as HBO Latam, TF1, Sogecable, Foxtel, Seven Network, Shaw, Televisa, Globo, Azteca Sold and launched The Blacklist around the world, generating record ratings and the highest revenue ever for an SPT one hour drama Added 11 new advertisers to the upfront with an overall increase of upfront dollars of $13.1MM The Queen Latifah Show garnered the highest CPMs of any new talk show Successfully sold integrations in The Queen Latifah Show to Cover Girl, Pantene, and SC Johnson Secured ad representation of the Rural Media Group s two TV networks, RFD-TV and FamilyNet, with a target of $15MM for CY14 Negotiating 1st ever substantial guild residual changes, freeing up library product and cable-to-cable product to sell

3 FY14 Accomplishments Int l Productio n US Productio n Successfully launched Release the Hounds (ITV) followed by German (ProSieben) and pending US (FOX) orders Latin America: Hired new LatAm MD; acquired 100% of Teleset; launched Mexico production (El Mariachi); in conjunction with SPT International Distribution, negotiating volume deals with Televisa, RCN and pan regional cable channels to fortify 5 year business plan for high quality Spanish language programming Held WWTBAM summit with key license holders and instigated quarterly review to optimize format Identified territories for expansion: Scandinavia, Turkey, Netherlands, Australia, N. Ireland and launched Electric Ray in UK Restructured Silver River, integrating Left Bank, and divested interest in Tuvalu Collaborated across Sony divisions and companies to maximize business opportunities with SPT International Distribution, SPT Networks, Sony Music, Sony ATV, and Sony Technology Networks Produced and launched SPT s first Arabic language telenovela, Betty La Fea, to pan-regional Arabic audience Grew unscripted IP creation and ownership - The Patch, Tough Young Teachers, Five Minutes to a Fortune, Raid the Cage, Odd Squad, You're Booked, Milky Way Mission, Jokers, among others Built scripted reality business in Germany, Holland, Russia and the Middle East Breaking Bad $275MM+ ultimate profit, winning the first Emmy and Golden Globe awards for Best TV Series drama as well as, awards from the DGA, SAG, PGA and WGA Agreed principal terms with IGT for an extension of rights with a nominal guarantee of $225MM Shark Tank rose to record ratings ranking as #1 Friday night program two seasons in a row, and successfully launched into syndication with highest rating for CNBC in 6 years Sold Better Call Saul to AMC which will be profitable from year one SPT has orders for six direct-to-series shows; Helix, Outlander, Better Call Saul, Unt. KZK, Battle Creek, Before Crack The Blacklist is the highest rated new series this season and has received an early second season order from the network, where it is their highest rated series among total viewers in a decade and broke US DVR records; The Blacklist is also a worldwide phenomenon, scoring the highest rating telecast in the history of the Sky Living channel in the UK, and was the highest rated new US series launch in Germany in the past 5 years The Goldbergs emerges as self starter breakout hit series for ABC ranking as #1 Tuesday comedy and beating New Girl Capitalizing on the global market by creating original programming for new global platforms like Netflix where SPT has sold Unt. KZK Series project and Before Crack. Both series are expected to be profitable year one and projected to generate over $100MM in profit each in success Young and the Restless and Days of Our Lives have been renewed through the 16/17, and 15/16 broadcast seasons, respectively Masters of Sex 2nd season order

4 Gross Revenue Generated by SPT For All Product Gross Revenue Summary Gross Revenue by Product

5 SPT Financial Summary TV Product & Channel Revenue TV Consolidated EBIT

6 SPT Financial Summary

7 Variance to Budget / Prior MRP EBIT

8 1. Networks

9 Networks FY15 Outlook In FY15, Networks will cross the $300MM EBIT threshold, over a 35% CAGR across eight consecutive years of record earnings Major new financial milestones will be achieved by SPT Networks FY15 budget Revenue will surpass $2BN EBIT will exceed $330MM This represents year over year revenue and EBIT growth of 25% and 37%, respectively Despite the year over year progress, Networks EBIT is projected to be ($60MM) behind the MRP target for FY15 due to variances from two businesses MSM is ($48MM) behind MRP following a ($30MM) EBIT miss in FY14 as a result of a very difficult ad market and lower ratings on the flagship channel and the inclusion of launching MAX2 (movie channel) in FY15 ($4MM) GSN is ($11MM) behind plan due largely to a lower outlook for the Digital business based upon lower performance levels than anticipated in FY14 Branded channels are in line with MRP The year over year earnings growth will be achieved while also continuing to invest in the business to help sustain the strong growth profile into the future. Specific growth opportunities factored into the Budget include: A GEC channel in India An Indian movie channel CineSony France Dori Israel Included within the Budget are several significant assumptions that add an element of risk to the outlook The MSM Budget assumes that there will be significant ratings growth on the flagship channel The UK operation has an inflection point year as it seeks to fully monetize the new investment in Freeview distribution Latin America has an aggressive outlook with EBIT growth underpinned by channel ratings increases across the region Crackle US is projected to become profitable based largely upon a 30%+ increase in base business ad revenues year over year

10 Networks Financial Summary vs. Budget/PY MRP Revenue EBIT Revenue and EBIT targets missed across the portfolio in FY14 with material EBIT downside in MSM (-$25MM incl. Challenge), Crackle (-$8.5MM), and GSN (-$11MM) FY15 downside versus MRP largely from MSM (-$48MM) and GSN (-$11MM) Note: Revenue unfavorable FX variance is ($93MM) in FY14, ($52MM) in FY15; EBIT unfavorable FX variance is ($38MM) in FY14, ($17MM) in FY15. Note: EBIT excludes 3Net EBIT of ($4MM) in FY14 forecast.

11 Networks Financial Summary

12 MSM Year-Over-Year Consolidated MSM - FY14 Q4 Fcst vs FY15 Budget (excl AXN India & Ch 8 - EBIT impact minimal) in US$M FY14 Q4 Forecast FY15 Budget BAU IPL Total MSM BAU IPL Total MSM BAU V'FY14 Q4 Forecast IPL Total MSM Net Advertising Revenue Net Subscription Revenue Other Total Revenue (0.0) (17.2) (4.8) Programming & Amortization Sales, Marketing & Other COS G&A / Depreciation Total Expenses (67.0) (1.4) (5.7) (74.0) (0.3) 3.6 (63.8) (0.6) (6.1) (70.5) EBIT (1.2) 39.2 MSM's own challenge (10.4) EBIT as Submitted (1.2) (10.4) 28.9 Notes YoY Comparison: Net Ad Revenue - 8 team format in FY15 IPL (per match ad revenue higher but fewer matches), higher ratings at SET at BAU Net Sub Revenue Digitization, reallocation of revenues to IPL for FY15 as IPL moves onto SIX Other Revenue Motion picture revenues, digital, CEO challenge ($3.1M) in FY15 Budget Programming & Amort Motion picture production, FIFA, UEFA; chasing higher ratings at SET and more prime hours at SAB in FY15 G&A / Depreciation Incentives, G&A in line with increased head count

13 MSM FYE15 Vs. MRP Consolidated MSM - FY15 MRP vs FY15 Budget (excl AXN India & Ch 8 - EBIT impact minimal) in US$M FY15 MRP FY15 Budget BAU IPL Total MSM BAU IPL Total MSM BAU V'FY15 MRP IPL Total MSM Net Advertising Revenue Net Subscription Revenue Other Total Revenue (0.2) (14.0) (38.7) (15.0) 0.4 (53.3) (52.7) (8.7) 16.2 (45.2) Programming & Amortization Sales, Marketing & Other COS G&A / Depreciation Total Expenses (42.9) (37.5) (5.8) EBIT (29.5) (13.7) (43.2) Notes MRP Comparison: Total EBIT negatively impacted by ($17.8M) due to FX rate (MRP: , Budget: ) Net Ad Revenue 8 team format in FY15 for IPL vs 9 in MRP Net Sub Revenue Revised distribution assumptions for IPL Other Revenue Motion picture revenues called out in FY15 Budget, EBIT neutral Programming & Amortization Motion picture production, FIFA, and higher amort costs at SET in FY15; 8 team format for IPL so lower license fees G&A / Depreciation Higher head count more than offset by favorable FX

14 GSN Calendar Year-Over-Year Consolidated GSN Fcst vs 2014 Budget Calendar Year in US$M TV Ad Sales Affiliate Sales Virtual Currency Skill Games/ Other Total Revenue Programming & Amortization Sales, Marketing & Other COS G&A / Depreciation Total Expenses OIBDA CY2013 Forecast Digital Total GSN CY2014 Budget Digital Total GSN TV vs. CY2013 Forecast TV Digital Total GSN (1.2) (1.2) (35.0) (18.0) (47.0) (100.0) (84.0) (42.0) (126.0) (35.0) (102.0) (89.0) (226.0) (45.7) (23.3) (47.9) (116.9) (91.9) (55.5) (147.4) (45.7) (115.2) (103.4) (264.3) (10.7) (5.3) (0.9) (16.9) (7.9) (13.5) (21.4) (10.7) (13.2) (14.4) (38.3) (8.5) 8.0 (0.4) Notes Calendar Year YoY Comparison: Revenue Increase primarily due to increased Digital mobile revenue (strong player growth through Android expansion and increased engagement driven by game enhancements) and TV and Digital ad sales Programming & Amortization Four additional original series in 2014 (total 9). Series needed to support future affiliate renegotiations and improve TV ad sales Sales, Marketing and Other COS Increased investment in Social Casino content and marketing support for new original series G&A / Depreciation Primarily due to increased headcount to support Social Casino development

15 GSN Calendar Year-Over-Year Consolidated MSM - CY 2014 MRP vs CY 2014 Budget Calendar Year in US$M TV Ad Sales Affiliate Sales Virtual Currency Skill Games/ Other Total Revenue Programming & Amortization Sales, Marketing & Other COS G&A / Depreciation Total Expenses OIBDA CY2014 MRP Digital Total GSN CY2014 Budget Digital Total GSN TV vs. CY2014 MRP Digital Total GSN TV (3.4) (4.0) (7.4) (10.7) (16.8) (1.2) (28.7) (14.1) (4.0) (16.8) (1.2) (36.1) (52.6) (23.5) (47.7) (123.9) (113.8) (47.1) (160.9) (52.6) (137.3) (94.8) (284.7) (45.7) (23.3) (47.9) (116.9) (91.9) (55.5) (147.4) (45.7) (115.2) (103.4) (264.3) (0.2) (8.4) (8.6) (0.4) (15.3) (15.6) Notes Calendar Year MRP Comparison: Overall TV in line with MRP, but Digital lower primarily due to weaker than expected calendar 2013 results. Virtual Currency Revenue Lower starting point and decreased growth assumptions Ad Sales Revenue Lower starting point and slower than anticipated digital ad sales growth Programming & Amortization Four less original series (9 vs. 13) Sales, Marketing and Other COS Lower virtual goods COS (lower sales), lower original series marketing and lower player acquisition spend on Facebook platform G&A / Depreciation Primarily due to increased headcount to support Social Casino development

16 GSN FYE15 Vs. MRP Consolidated MSM - FY 2015 MRP vs FY 2015 Budget Fiscal Year in US$M Ad Sales Affiliate Sales Games / Other Total Revenue Difference (12.8) (4.7) (13.9) (31.5) (54.8) (168.6) (83.2) (306.6) (49.6) (152.5) (83.9) (286.0) (0.7) 20.6 EBIT Before PPA (10.9) PPA (20.6) (20.6) - EBIT (10.9) Programming & Amortization Sales, Marketing & Other COS G&A / Depreciation Total Expenses MRP FY2015 Budget From a Sony fiscal year perspective, GSN FY15 Budget EBIT of $89.8M is ($10.9M) lower than the FY15 MRP EBIT of $100.7M. The fiscal year differences are in line with the GSN calendar perspective detailed on the previous slide.

17 2. Distribution & Ad Sales

18 US Distribution FY15 Outlook Maximize value of key properties Broadcast: Renewed Queen Latifah Increase licensing of library product in diginet space (Antenna, Cozi, Bounce, MeTV, GetTV) Maximize and secure top offnet value for The Blacklist Further progress guild waiver negotiations to free up residually-locked current and library TV product for monetization in broadcast, cable and diginet space Cable: Working with FX to close feature slate output deal Split rights with Turner to sell an additional Seinfeld window License English language product to US Spanish networks SVOD: Close SPA output deal (Starz carve-out) Negotiate AVOD/SVOD Amazon deal Negotiate OTT Comcast library deal Maximize offnet value for The Blacklist and Helix Concentrate efforts on building sales team

19 US Distribution Financial Summary

20 US Distribution Motion Picture Revenue Library/Flow Motion Picture Revenue Current Motion Picture Revenue Pay DBO ($B) $0.97 Note: Based on film slate as of 1/22/14. $0.91 $0.92 $0.86

21 US Distribution TV Revenue

22 International Distribution FY15 Outlook Outperforming historical high revenue in FY14, reaching a new record in FY15 Revenue of $1.85BN projected in FY15 - $115MM up from FY14, $89MM up on MRP US and International scripted TV product sales are the main drivers of growth Delivering higher value through better exploitation of flow/library content Maximize growth opportunities across SVOD and Emerging Markets: Netflix and Amazon are rolling out services to more countries, plus more local SVOD players (e.g., DLA, Avex, Rogers) Buying patterns are evolving away from bulk to more targeted buying (e.g., Netflix Breaking Bad/Saul deal) Partner with new SVOD and AVOD platforms and grow in emerging markets (e.g., China, Indonesia, Russia, India and Africa) Work within SPT to find new ways to create shows EMEA co-productionswith US Production Look for local content creation opportunities (e.g., UK, Russia, LatAm) Partnering with Crackle to create original content Supplement/reallocate resources in key markets to support continued growth Country/ Deal Russia/ FTV S. Korea/ BC/ Pay Italy/ Pay Extension (Sky) Italy/ FTV Total Key Deal Road Map Estimated Completion Estimated Term Q3FY15 3 Years Q4FY15 3 Years Q3FY15 3 Years Q4FY15 3 Years Value ($MM) $100 - $120 $75 - $100 $100 - $120 $50 - $80 $325 - $420

23 International Distribution Financial Summary

24 International Distribution Motion Picture Revenue Library/Flow Motion Picture Revenue Current Motion Picture Revenue

25 International Distribution TV Revenue

26 Key Feature and TV Drivers FY15

27 3. Production

28 International Production FY15 Outlook Strong growth from Production across UK and Europe Create IP that travels Support creation, launch and sales of formats that travel: The Patch, Fan Band, Popheads, Beat Shazaam among others Develop and sell a Leftbank scripted drama, The Crown Rebuild SPT Russia s capacity to produce enduring sitcoms and dramas that travel Explore expansion opportunities for network of production companies in key strategic markets Scandinavia, Turkey, Netherlands, Australia, N. Ireland Support and strengthen existing production companies Support SPT Latin America/Teleset to execute 5 year plan to build high quality, sustainable library of Spanish language programming for the region Monitor progress of Toro Italy, Floresta (Brazil), SPT Arabia Support startup and integration of Electric Ray into SPT Continue internal collaboration to drive business across Sony companies SPT International Distribution: Continue close collaboration to maximize profits from new and library programming SPT Networks: Expand original production opportunities with SPT s network group Sony Music: Continue to work on individual projects and build wider strategic partnership

29 International Production Financial Summary Revenue EBIT

30 International Production Detailed EBIT

31 International Production Detailed Revenue

32 US Production FY15 Outlook Global market creates increased demand for content Further strengthen portfolio by creating and selling content in all genres Drama Maximize value of worldwide appetite for quality drama across all outlets with continued emphasis on broadcast and cable and additional focus on new platform opportunities Comedy Maintain and support a strong comedy strategy as part of our overall portfolio business as comedy continues to maintain strong value in the syndicated marketplace First Run Syndication Stabilize and grow the Queen Latifah daytime series for the 14/15 broadcast season and look to expanding the business into new lower cost opportunities 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 in broadcast 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 US Continue to invest in top tier creative talent

33 US Production Assumptions

34 THE GOLDBERGS Half-Hour Single Cam Comedy Series Written/Executive Produced by Adam Goldberg (Breaking In) Directed/Executive Produced by Seth Gordon (Breaking In, Identity Thief) Executive Produced by Doug Robinson (Rules of Engagement, Breaking In) Starring: Jeff Garlin, Wendi McLendonCovey, George Segal, Troy Gentile, Hayley Orrantia, Sean Giambrone, and Patton Oswalt (VO) A single camera comedy series set in the 1980s, centering on a the youngest child in a crazy family who is mystified as to how he managed to grow up to be a relatively normal person. 34 Tuesdays at 9:00 PM

35 BAD TEACHER Half-Hour Single Cam Comedy Series Written/Executive Produced by Hilary Winston (Happy Endings, Community) Directed by Don Scardino (The Incredible Burt Wonderstone) Executive Produced by Lee Eisenberg & Gene Stupnitsky (Bad Teacher, The Office), Jimmy Miller (Bad Teacher, The Life and Times of Tim), Sam Hansen Starring: Ari Graynor, Kristin Davis, Sara Gilbert, David Alan Grier, Ryan Hansen, Sara Rodier A single camera comedy series based on the film, centering on a foulmouthed, ruthless, inappropriate teacher who discovers she can make a difference in young students lives. Midseason 35

36 RAKE One-Hour Drama Series Written/Executive Produced by Peter Tolan (Rescue Me), Peter Duncan (Rake, Children of the Revolution) Executive Produced by Michael Wimer, Greg Kinnear (The Kennedys, Little Miss Sunshine Ian Collie (Saving Mr. Banks), Richard Roxburgh (Rake) Directed by Sam Raimi (Spider-Man, Evil Dead) Starring: Greg Kinnear, Necar Zadegan, Miranda Otto, Bojana Novakovic, John Ortiz, David Harbour, Ian Colletti, Tara Summers Based on the hit Australian TV series, RAKE centers on a brilliant but helplessly selfdestructive defense attorney who relies on his wit and charm to defend his clients. Midseason Thursdays at 9:00 PM 36

37 THE MICHAEL J. FOX SHOW Half-Hour Single Cam Comedy Series Written/Executive Produced by Sam Laybourne (Cougar Town, Arrested Development) Directed/Executive Produced by Will Gluck (The Loop, Friends With Benefits, Easy A) Executive Produced by Michael J. Fox (Spin City), Alex Reid (Up All Night, The Middle) Starring: Michael J. Fox, Betsy Brandt, Katie Finneran, Juliette Goglia, Jack Goor, Ana Nogueira, Wendell Pierce, Conor Romero Loosely drawn from his real life, a single-camera comedy series starring Michael J. Fox as a husband and father of three from New York City dealing with family, career and challenges, including Parkinson s. Thursdays at 9:30 PM 37

38 THE BLACKLIST One-Hour Drama Series Written/Executive Produced by Jon Bokenkamp (Taking Lives, Perfect Stranger), John Eisendrath (Outlaw, Alias) Executive Produced by John Davis (Predator, Chronicle, I, Robot) & John Fox (Transformers, We Bought a Zoo) Directed by Joe Carnahan (The ATeam, The Grey) Starring: James Spader, Megan Boone, Ryan Eggold, Diego Klattenhoff, Ilfenesh Hadera, & Harry J. Lennix The Blacklist centers on an international criminal who mysteriously surrenders himself to the feds and offers to help them hunt down the very men he's spent his entire life protecting. Mondays at 10:00 PM 38

39 THE NIGHT SHIFT One-Hour Drama Series Written/Executive Produced by Gabe Sachs & Jeff Judah (90210, Just Shoot Me!) Directed/Executive Produced by Pierre Morel (Zero Hour, Taken) Starring: Eoin Macken, Freddy Rodriguez, Ken Leung, Jill Flint, Jeananne Goossen, Brendan Fehr, Robert Bailey Jr., Brigid Brannagh, JR Lemon Ensemble drama about a group of ex-army doctors who work the night shift at a hospital and do whatever it takes to help their patients. Midseason 39

40 THE SING-OFF One-Hour Competition-Series Executive Produced by Mark Burnett, Deborah Newmyer, and Sam Weisman (Survivor, Who Wants to be a Millionaire) Hosted by Nick Lachey (Newlyweds: Nick and Jessica) Returning for a 4th season The country s top a cappella groups perform popular songs and compete for a recording contract and $100,00 cash prize. Midseason

41 HELIX One-Hour Drama Series Written by Cameron Porsandeh, Steven Maeda (Pan Am) Executive Produced by Ronald D. Moore (Caprica, Battlestar Galactica), Steven Maeda, & Lynda Obst (How to Lose a Guy in 10 Days, Hot in Cleveland) A drama thriller about a team of scientists from the Centers for Disease Control who travel to a high-tech research facility in the Arctic to investigate a possible disease outbreak, only to find themselves pulled into a terrifying life and death struggle that holds the key to mankind s salvation. Midseason

42 MASTERS OF SEX One-Hour Drama Series Written/Executive Produced by Michelle Ashford (The Pacific) Executive Produced by Sarah Timberman & Carl Beverly (Justified, Unforgettable) Directed by John Madden (Shakespeare in Love) Starring: Michael Sheen, Lizzy Caplan, Beau Bridges & Caitlin Fitzgerald This provocative drama takes viewers on a voyeuristic journey chronicling the relationship of Dr. William Masters and Virginia Johnson, who risked everything to give birth to the sexual revolution. Premiering Sunday 9/29 at 10:00 PM 42

43 KZK FAMILY SHOW One Hour Drama Series Written/Executive Produced by Daniel Zelman (Damages, Fool s Gold), Todd A. Kessler & Glenn Kessler (Damages) Just as "Damages" subverted our expectations of the legal genre, Kessler, Zelman and Kessler intend to twist the makings of traditional family drama into a taut, character-driven thriller. Taking a page from "Crimes and Misdemeanors," "Crime and Punishment"" and "A Simple Plan," the trio intend to explore the unraveling of a modern American family through the prism of fratricide. The show will focus on a group of adult siblings as their loyalty is tested and their relationships are slowly torn apart in the wake of a horrible decision the group makes to ostensibly save their family. 43

44 OUTLANDER One Hour Drama Pilot Written/Executive Produced by Ronald D. Moore (Caprica, Battlestar Galactica) Executive Produced by Jim Kohlberg (Two Family House) and Paulo de Oliveira, Andy Harries and Marigo Kehoe (Strike Back, Wallander) Drama following a WWII combat nurse on her honeymoon who accidentally steps back in time to the Scottish Highlands of Based on the NY Times bestselling romance/thriller book series. 44

45 TBD

46 TBD

47 TBD

48 TBD

49 Projected Value of Shows in Syndication Attractive returns with upside potential for shows that prove to be a hit Show in Syndication / Expected to Syndicate Breaking Bad Current Examples Projected Examples Anticipated Value to SPE(1) $275MM+ Dr. Oz $90MM Justified $53MM Drop Dead Diva $49MM Rescue Me $45MM Damages $33MM Rules of Engagement $30MM Community $21MM Before Crack (6 Seasons) $140MM Family Murder Mystery (KZK) (6 Seasons) $109MM Dr. Oz (8 Seasons) $105MM Better Call Saul (5 Seasons) $100MM Unforgettable (5 Seasons) $65MM New Network series such as: The Goldbergs (5 Seasons) or The Blacklist (6 Seasons) (1) Values are on an ultimate basis; current and projected values are as of January $75MM $145MM

50 US Production Current Series, Pilots & Development Cost Revenue EBIT

51 US Production Current Series, Pilots & Development Cost

52 US Production New Series Investment & Development Represents ONLY development expense and deficit pilots/series and EXCLUDES profitable series

53 US Production FY15 Budget New Series Investment & Development Note: Includes allocation of departmental overhead.

54 US Production Library and Net Overhead

55 US Production Product Library Revenue EBIT

56 Year Over Year EBIT