Sony Pictures Home Entertainment Digital Distribution November 2013 Management Book Table of Contents
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SONY PICTURES HOME ENTERTAINMENT DIGITAL DISTRIBUTION NOVEMBER 2013 MANAGEMENT BOOK TABLE OF CONTENTS Page Graphs………….……….…………………………… 2-5 Revenue & EBIT Summary…………………………. 6 FY14 Performance ………………………………….. 7 Revenue by Distribution Channel…………………….. 8 New Media Domestic Dashboard…………………… 9 PPV & RVOD Domestic Dashboard…………………. 10 New Media International Dashboard………………… 11-13 PPV & RVOD International Dashboard…………….. 14-17 CDD Overhead Summary……………………………. 18 UK Overhead Summary….…………………...…..…… 19 Summary Cash Flow…………………………………. 20 Consolidating Balance Sheet………………………….. 21 Headcount…………………………………………… 22 Sony Pictures Home Entertainment SONY PICTURES HOME ENTERTAINMENT CULVER DIGITAL DISTRIBUTION WORLDWIDE REVENUE FISCAL YEAR TO DATE THROUGH NOVEMBER 30, 2013 in millions Revenue by Channel of Distribution Actual Forecast Actual vs. Forecast 223.9 209.7 107.3 96.2 95.8 72.6 27.8 28.3 4.1 1.5 RVOD/PPV Digital Sell Through EVOD MC/Flash Drives/Bundling Total TOP 5 CUSTOMERS - FYTD TOP 5 TITLES - FYTD Customer Revenue % of Total Title Revenue % of Total iTunes $ 70.7 32% BREAKING BAD $ 21.5 10% iN DEMAND 33.3 15% OLYMPUS HAS FALLEN 14.6 7% Amazon 19.7 9% ZERO DARK THIRTY 11.1 5% DIRECTV 11.7 5% CALL, THE (2013) 11.0 5% Verizon 10.6 5% THIS IS THE END 10.7 5% Other 77.8 35% Other 154.9 69% Total $ 223.8 100% Total $ 223.8 100% CULVER DIGITAL MGMT BOOK NOV13.xlsx - Revenue Graph 2 1/2/2014 - 2:39 PM Sony Pictures Home Entertainment Domestic Digital Distribution Market Highlights by Top Titles and Top Customers Fiscal YTD through November 2013 in USD (000's) EVOD Market - Top Titles EVOD Market - Top Customers Others Total 19,934 7% Playstation Others 12,142 5% PARKER (2013) 986 Microsoft 11% CALL, THE (2013) 1,090 Revenue iTunes 43% THIS IS THE END 1,618 Microsoft 8% OLYMPUS HAS FALLEN 1,870 Amazon ZERO DARK THIRTY 2,228 18% 0 5,000 10,000 15,000 20,000 25,000 EST Market - Top Titles EST Market - Top Customers Microsoft 8% Total 74,838 Vudu 5% Others 46,114 Amazon Verizon 21% HOTEL TRANSYLVANIA 2,217 5% Revenue OLYMPUS HAS FALLEN 2,743 Others JUSTIFIED 3,032 iTunes 7% 54% THIS IS THE END 3,302 BREAKING BAD 17,430 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 RVOD/PPV Market - Top Titles (US) RVOD/PPV Market - Top Customers (US) Others Total 69,889 AT&T 6% 9% Others 33,834 GROWN UPS 2 5,055 Verizon THIS IS THE END 5,392 Revenue 10% iN DEMAND ZERO DARK THIRTY 7,200 48% TVN CALL, THE (2013) 8,446 11% DIRECTV OLYMPUS HAS FALLEN 9,962 16% 0 20,000 40,000 60,000 80,000 RVOD/PPV Market - Top Titles (Canada) RVOD/PPV Market - Top Customers (Canada) Total 5,436 Others Others 1,971 15% Movie TOTAL RECALL (2012) 108 Central Telus 25% EVIL DEAD (2013) 421 Revenue 12% HERE COMES THE BOOM 896 Movie Central HOTEL TRANSYLVANIA 993 Bell Express Rogers 18% 12% Cable CALL, THE (2013) 1,047 16% 0 1,000 2,000 3,000 4,000 5,000 6,000 CULVER DIGITAL MGMT BOOK NOV13.xlsx - Domestic Market Highlights 3 1/2/2014 - 2:39 PM Sony Pictures Home Entertainment International Digital Distribution Market Highlights by Top Titles and Top Customers Fiscal YTD through November 2013 in USD (000's) EVOD Market - Top Titles EVOD Market - Top Customers Others 10% Microsoft Total 7,840 6% Others 4,445 TOTAL RECALL (2012) 148 Videoland 7% HOTEL TRANSYLVANIA 440 Revenue Playstation HERE COMES THE BOOM 479 7% iTunes 62% AFTER EARTH 492 YouTube 8% DJANGO UNCHAINED 1,836 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 EST Market - Top Customers EST Market - Top Titles YouTube 7% Total 20,917 Microsoft 3% Others 13,007 Playstation HOUSE OF CARDS (2013) 701 3% Revenue iTunes AFTER EARTH 737 Yota 82% 2% HOTEL TRANSYLVANIA 781 DJANGO UNCHAINED 1,709 Others 3% BREAKING BAD 3,982 0 5,000 10,000 15,000 20,000 25,000 RVOD/PPV Market - Top Customers British Sky RVOD/PPV Market - Top Titles Filmflex UK Broadcasting 5% 5% Total 20,798 Teleclub AG 5% Others 10,812 Telstra HERE COMES THE BOOM 921 3% RESIDENT EVIL: RETRIBUTION 1,007 Revenue Foxtel TOTAL RECALL (2012) 1,202 3% HOTEL TRANSYLVANIA 2,626 Others DJANGO UNCHAINED 4,230 79% 0 2,0004,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 CULVER DIGITAL MGMT BOOK NOV13.xlsx - Int'l Market Highlights 4 1/2/2014 - 2:39 PM Sony Pictures Home Entertainment International Digital Distribution YTD Revenue by Top 5 Territories Fiscal YTD through November 2013 (in USD 000's) 25,000 Revenue by Top 5 Territories 22,094 20,748 20,000 Actuals Budget Forecast 15,000 14,091 10,323 9,251 10,000 8,465 7,285 6,924 6,247 49,565 5,345 4,418 4,696 4,820 5,000 0 0 United Kingdom Germany Australia Licensing France Others DST 65% ### DST 41% ### DST 56% ### DST 21% ### DST 38% ### EVOD 9% ### EVOD 25% ### EVOD 17% ### EVOD 6% ### EVOD 14% ### Memory 0% ### Memory 0% ### Memory 0% ### Memory 0% ### Memory 0% ### RVOD/PPV26% ### RVOD/PPV33% ### RVOD/PPV27% ### RVOD/PPV73% ### RVOD/PPV48% ### * Benelux includes Belgium, Netherlands, Belgium - French Speaking, and Belgium - Flemish Speaking * Germany includes Germany, Austria, Switzerland-French Speaking, and Switzerland-German Speaking CULVER DIGITAL MGMT BOOK NOV13.xlsx - Top Territory Graph 5 1/2/2014 - 2:39 PM SONY PICTURES HOME ENTERTAINMENT WORLWIDE DIGITAL DISTRIBUTION REVENUE & EBIT SUMMARY FOR THE MONTH AND YEAR-TO-DATE ENDED NOVEMBER 30, 2013 (in thousands) MONTH-TO-DATE YEAR-TO-DATE FULL YEAR VAR FR VAR FR VAR FR VAR FR ACTUALS FCST 2 BUDGET FCST 2 BUD ACTUALS FCST 2 BUDGET FCST 2 BUD FCST 2 BUDGET NET REVENUE Digital Licensing Domestic 26,502 30,150 38,084 (3,648) (11,582) 174,261 156,625 138,266 17,636 35,995 267,347 255,075 Digital Licensing International 5,401 5,922 7,403 (521) (2,002) 49,565 53,047 53,396 (3,482) (3,831) 106,031 106,876 TOTAL NET REVENUE 31,903 36,072 45,487 (4,169) (13,584) 223,826 209,672 191,662 14,154 32,164 373,378 361,951 OP INCOME BEFORE CONTRIBUTION Digital Licensing Domestic 23,906 26,661 34,003 (2,755) (10,097) 160,513 136,175 115,798 24,338 44,715 230,930 215,805 Digital Licensing International 4,808 5,162 6,918 (354) (2,110) 46,722 48,753 49,640 (2,031) (2,918) 99,326 100,074 OP INCOME BEFORE CONTRIBUTION 28,714 31,823 40,921 (3,109) (12,207) 207,235 184,928 165,438 22,307 41,797 330,256 315,879 EBIT Digital Licensing Domestic (584) (659) (641) 75 57 (5,318) (5,519) (5,392) 201 74 (8,198) (8,200) Digital Licensing International (143) (140) (153) (3) 10 (1,189) (1,294) (1,297) 105 108 (1,870) (1,909) TOTAL EBIT $ (727) $ (799) $ (794) $ 72 $ 67 $ (6,507) $ (6,813) $ (6,689) $ 306 $ 182 $ (10,068) $ (10,109) CULVER DIGITAL MGMT BOOK NOV13.xlsx - Revenue EBIT Summary 6 1/2/2014 - 2:39 PM CULVER DIGITAL DISTRIBUTION ACTUALS VS. BUDGET FISCAL YEAR 2014 (in millions) FY14 ADJUSTED FY14 FY14 BUDGET BUDGET FCST 2 ACTUALS EST Dom $44 $0 $54 $74 Int'l $18 $0 $18 $21 Total EST $62 $0 $72 $95 iVod Dom $18 $0 $20 $20 Int'l $8 $0 $8 $8 Total iVOD $26 $0 $28 $28 RVOD Dom $76 $70 $81 $75 Int'l $28 $0 $26 $21 Total RVOD $104 $70 $107 $96 BUNDLES $0 $0 $0 $5 TOTAL $192 $70 $207 $224 COSTS COGS/WEB TECH ($11) ($11) ($8) ($5) MARKETING ($8) ($8) ($10) ($5) TOTAL COST ($19) ($19) ($18) ($10) TOTAL GROSS PROFIT $173 $51 $189 $214 CULVER DIGITAL MGMT BOOK NOV13.xlsx - FY14 Performance 7 1/2/2014 - 2:39 PM SONY PICTURES HOME ENTERTAINMENT DIGITAL DISTRIBUTION REVENUES BY DISTRIBUTION CHANNEL FOR THE MONTH AND YEAR-TO-DATE ENDED NOVEMBER 30, 2013 (in thousands) MTD Revenues by Distribution Channel: Actuals Forecast Budget vs Forecast vs Budget Domestic International Total Domestic International Total Domestic International Total Domestic International Total Domestic International Total Digital Sell-Thru $ 9,962 $ 2,051 $ 12,013 $ 7,143 $ 3,215 $ 10,358 $ 7,329 $ 2,605 $ 9,934 $ 2,819 $ (1,164) $ 1,655 $ 2,633 $ (554) $ 2,079 Digital Rental 2,805 852 3,657 4,091 1,064 5,155 5,253 1,131 6,384 (1,286) (212) (1,498) (2,448) (279) (2,727) Pay Per View/ Video On Demand 12,887 2,498 15,385 18,916 1,643 20,559 25,502 3,667 29,169 (6,029) 855 (5,174) (12,615) (1,169) (13,784) Digital/DVD Bundling 838 - 838 - - - - - - 838 - 838 838 - 838 Mobile and Other Contribution 10 - 10 - - - - - - 10 - 10 10 - 10 Total $ 26,502 $ 5,401 $ 31,903 $ 30,150 $ 5,922 $ 36,072 $ 38,084 $ 7,403 $ 45,487 $ (3,648) $ (521) $ (4,169) $ (11,582) $ (2,002) $ (13,584) YTD Revenues by Distribution Channel: Actuals Forecast Budget vs Forecast vs Budget Domestic International Total Domestic International Total Domestic International Total Domestic International Total Domestic International Total Digital Sell-Thru $ 74,838 $ 20,927 $ 95,765 $ 54,160 $ 18,430 $ 72,590 $ 44,335 $ 17,722 $ 62,057 $ 20,678 $ 2,497 $ 23,175 $ 30,503 $ 3,205 $ 33,708 Digital Rental 19,934 7,840 27,774 19,963 8,339 28,302 18,048 7,561 25,609 (29) (499) (528) 1,886 279 2,165 Pay Per View/ Video On Demand 75,325 20,798 96,123 81,037 26,278 107,315 75,883 28,113 103,996 (5,712) (5,480) (11,192) (558) (7,315) (7,873) Digital/DVD Bundling 4,111 - 4,111 1,443 - 1,443 - - - 2,668 - 2,668 4,111 - 4,111 Mobile and Other Contribution 53 - 53 22 - 22 - - - 31 - 31 53 - 53 Total $ 174,261 $ 49,565 $ 223,826 $ 156,625 $ 53,047 $ 209,672 $ 138,266 $ 53,396 $ 191,662 $ 17,636 $ (3,482) $ 14,154 $ 35,995 $ (3,831) $ 32,164 CULVER DIGITAL MGMT BOOK NOV13.xlsx - Revenue by Dist Channel 8 1/2/2014 - 2:39 PM SONY PICTURES HOME ENTERTAINMENT CULVER DIGITAL DISTRIBUTION NEW MEDIA - DOMESTIC DASHBOARD FOR THE MONTH AND YEAR-TO-DATE ENDED NOVEMBER 30, 2013 (in thousands) MTD YTD Revenue by Customer: % % Actuals Fcst 2 Budget vs Fcst 2 vs Budget Actuals Fcst 2 Budget vs Fcst 2 vs Budget iTunes $ 5,107 38% $ 5,331 $ 6,166 $ (224) $ (1,059)