BUDGET PRESENTATION Fiscal Year February 2013

Transcription

1 BUDGET PRESENTATION Fiscal Year 2014 February 2013

2 Gross Revenue Generated by SPT For All Product 2 FY13 FY14 FY13 vs FY14 Generated Revenue Budget Q4 Forecast Variance MRP* Budget 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 *FY14 MRP restated to reflect transfer of Crackle Ad Sales to Networks

3 SPT Financial Summary 3 FY13 FY14 FY13 vs FY14 TV Product / Network Revenue Budget Q4 Forecast Variance MRP Budget 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 FY13 FY14 FY13 vs FY14 EBIT Budget Q4 Forecast Variance MRP Budget Q4 vs Budget 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) - -

4 EBIT FY13 Forecast vs. FY13 Budget 4 1,200-1, FY13 Budget EBIT Weaker Network Ad Sales (excl India) Teleset Impairment MOWs (esp. Hatfields & McCoys) Other

5 EBIT FY14 Budget vs. FY14 MRP FY14 MRP EBIT Weaker Network Ad Sales (excl India) 47 5 New Broadcast Series Est vs. 3 in MRP

6 6 EBIT Before Monetization FY13 vs. FY14 FY13 to FY14 EBIT Bridge 1,200-1, FY13 Forecast EBIT GSN Growth (incl. Purchase Price Amort) Final Season of Breaking Bad - FY14 Budget EBIT

7 7 SPT Networks FY14 Outlook FY14 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 FY14 Revenue will surpass $1.9BN EBIT will exceed $300MM after breaking $250MM for the first time in FY13 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 FY13, funds have been included in the FY14 Budget to invest in several new operations Specific growth opportunities factored into the Budget 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

8 Networks Financial Summary Revenue FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget Variance Variance International EMEA (27) Latin America (29) (15) 34 Asia (28) (8) 15 India (incl. MSM/Ch 8) (60) FY13 New Launches/Committed 9 - (9) FY14 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 FY13 New Launches/Committed Total U.S (34) Home Office/ Other (1) Challenge Total 1,690 1,504 (186) 1,961 1,928 (33) 424 EBIT FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget Variance Variance International EMEA (9) (2) 16 Latin America (17) (7) 1 Asia (3) (3) 2 India (incl. MSM/Ch 8) FY13 New Launches/Committed (11) (2) 9 (4) (6) (2) (4) FY14 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) - - 8

9 U.S. Distribution FY14 Outlook 9 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

10 U.S. Distribution Financial Summary 10 Gross Revenue FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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 FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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)

11 U.S. Distribution Library Gross Revenue 11 Total MPG TV FY13 Budget FY13 Forecast FY14 MRP FY14 Budget

12 U.S. Ad Sales FY14 Outlook 12 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 FY14 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

13 U.S. Ad Sales Financial Summary FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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. 13

14 14 International Distribution FY14 Outlook Will outperform historical high revenue in FY13, reaching a new record in FY14 Revenue of $1.73BN projected in FY14 despite challenges $60MM impact from changes in feature and TV product assumptions Difficult deal renewals in France and Spain for Pay TV Exploit growth opportunities with SVOD as new services launch around the world Amazon (Germany, France, Italy, Spain, Japan) Netflix (Benelux) Telmex, DLA, Net Brazil (Latin America) Work within SPT to find new ways to create shows EMEA co-productions with U.S. Production UK series with Left Bank and continued spec syndication series with International Production Original series co-productions with Networks Collaborate across Sony divisions to maximize opportunities Negotiate carve-outs (SEN) Work with WWAG to secure movies to fill pay TV slots Work with Networks to help secure channel carriage in Australia while capitalizing on content licensing Continue to work closely with SPHE digital group and other SPE divisions to maximize value of all product through new windowing structures Leverage newly integrated format sales business to maximize value of catalog and successfully launch new formats Supplement resources in key markets to support continued growth Key Deal Road Map Country/ Deal Estimated Completion Estimated Term Value ($MMs) Brazil FTV Output Extension Q4 FY13 5 Years 105 Pan LatAm HBO Pay Extension Q1 FY Years 350-1,000 France FTV Q1 FY14 3 Years Scandinavia Pay TV and FTV Q2 FY14 3 Years Spain Pay TV Q3 FY Years Russia FTV Q3 FY14 3 Years Australia FTV Q2 FY Years MM France Pay TV Q4 FY Years Total $1BN - $1.9BN

15 International Distribution Financial Summary 15 Gross Revenue FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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 FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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)

16 International Distribution Library Gross Revenue FY13 Budget FY13 Forecast FY14 MRP FY14 Budget TV MPG

17 Key Feature and TV Drivers FY13 17 (figures in thousands) U.S. Distribution Int l Distribution Feature Films/ WW Acquisitions Television Total Feature Films/ WW Acquisitions Television Total Title FY13 Rev Title FY13 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 FY13 Rev Title FY13 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

18 Key Feature and TV Drivers FY14 18 (figures in thousands) U.S. Distribution Int l Distribution Feature Films/ WW Acquisitions Television Total Feature Films/ WW Acquisitions Television Total Title FY14 Rev Title FY14 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 FY14 Rev Title FY14 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

19 International Production FY14 Outlook 19 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

20 International Production Detailed Revenue 20 Revenue FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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

21 International Production Detailed EBIT 21 EBIT FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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)

22 U.S. Production FY14 Outlook 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 22

23 U.S. Production Assumptions 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 FY14 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 FY13 FY14 Big C 3rd Boondocks 4th No 5th season and production shift to FY14 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

24 Projected Value of Shows in Syndication SHOWS IN SYNDICATION / EXPECTED TO SYNDICATE ANTICIPATED VALUE TO SPE (1) Current Examples Breaking Bad $109MM Dr. Oz $60MM dist 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 dist = distribution cp = co- Attractive returns with upside potential for shows that prove production to be a hit (1) Value on an ultimate basis; as of January 2013 for Current and most current estimates for 24

25 U.S. Production Current Series, Pilots & Development Cost 25 FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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 FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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)

26 U.S. Production FY13 Q4 New Series Investment & Development New Series Investment Pool - FY13 Budget ($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) FY13 Budget FY13 Q4 FY13 Budget FY13 Q4 Boondocks - no 5th season. Higher production costs (4) 4 FY12 7 FY12 3 FY13 8 FY13 Save Me - wholly-owned series vs coproduction in Budget (5) 5 FY13 1 FY13 6 FY14 5 FY14 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) FY13 Variance FY13 Budget 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 26

27 U.S. Production FY14 Budget New Series Investment & Development 27 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 FY14 Budget MRP FY14 Budget Necessary Roughness - higher production costs, not a deficit at MRP (1) 3 FY13 8 FY13 5 FY14 5 FY14 13/14 Pilots - slate of 13 vs 9 assumed (7) 6 FY14 5 FY14 4 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 - FY14 Budget ($104) FY13 Variance MRP Economic Volume Timing Total FY14 Budget 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

28 U.S. Production Library, Net Overhead & Challenge (continued) 28 Revenue FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget Variance Variance Library (7) All other Products (2) (2) Challenge 14 - (14) Library, Overhead & Challenge (19) EBIT FY13 FY14 FY13 vs FY14 Budget Forecast Variance MRP Budget 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)

29 U.S. Production Product Library Revenue EBIT FY13 Budget FY13 Forecast FY14 MRP FY14 Budget 0 FY13 Budget FY13 Forecast FY14 MRP FY14 Budget Total Ad Sales U.S. Dist. Merch/Other SPHE U.S. TV Int'l TV 29

30 SPT Financial Summary Cash Flow 30 FY13 FY14 FY13 vs FY14 Cashflow Budget Q4 Forecast Variance MRP Budget 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 FY13/ FY 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, Budget has been restated by $11m to include AMAZON