SONY PICTURES ENTERTAINMENT REVENUE AND EBIT RECONCILIATION - BUDGET VS. ACTUAL FOR THE MONTH ENDED August 31, 2013 (In thousands) EBIT P/T REVENUE (SOP) SONY PICTURES ENTERTAINMENT BUDGET: $ 771,378 $ 71,826 VARIANCES BY SEGMENT Motion Pictures (Pages 2-3) (37,107) (13,031) Production Services (Page 4) (2,155) (492) Acquisitions (Page 4) (8,975) 1,631 Home Entertainment (Page 4) (90) 1,413 Television (Pages 5) (31,697) (9,164) Corporate (Page 6) (5) (7,675) SPE General Challenge (Page 6) (75,000) (74,800) Intercompany Revenue Elimination (Page 6) (4,197) - Total Variances (159,226) (102,118) SONY PICTURES ENTERTAINMENT ACTUAL $ 612,152 $ (30,292) 1 SONY PICTURES ENTERTAINMENT REVENUE AND EBIT RECONCILIATION - BUDGET VS. ACTUAL FOR THE MONTH ENDED August 31, 2013 (In thousands) EBIT P/T REVENUE (SOP) MOTION PICTURES BUDGET $ 394,247 $ 25,053 COLUMBIA / TRISTAR PICTURES CURRENT YEAR RELEASES RELEASED TITLES AFTER EARTH P (5,013) (2,314) Lower than expected WW Theatrical performance, DBO/IBO decreased form $160M/$240M to $57.5M/$185M. THIS IS THE END T (3,023) (1,055) Primarily timing of WW Theatrical revenues ($3M) to prior periods. WHITE HOUSE DOWN P (10,672) 6,284 Lower than expected WW Theatrical performance, DBO/IBO decreased form $150M/$275M to $70M/$200M. EBIT positively impacted by lower than expected ITH releasing costs, ultimates decreased from $75M to $62M. GROWN UPS 2 T 5,371 12,337 Primarily timing of WW Theatrical revenues $5.4M from prior periods. EBIT positively impacted by timing of DAD of $8.7M to prior periods. ELYSIUM T/P 1,687 15,085 Timing of ITH revenues of $20.7M from future periods; offset by lower than expected DTH performance, DBO decreased from $125M to $85M. EBIT positively impacted by timing of DAD of $16M to prior periods. ONE DIRECTION P 8,570 (9,011) Better than expected WW Theatrical performance, DBO/IBO increased from $20M/$10M to $45M/$30M. EBIT negatively impacted by higher than expected WW Theatrical Ads, ultimates increased from $12M to $27M. UNRELEASED TITLES OTHER CURRENT YEAR/ UNRELEASED TITLES T - 443 PRIOR YEAR RELEASES MEN IN BLACK 3 [3D] T (297) 1,488 EBIT positively impacted by lower than expected DHE Marketing ($1.4M). DJANGO UNCHAINED T (3,143) (1,439) Primarily timing of NTH revenues to future periods (Co-Financing Revenue); partially offset by timing of IHE Revenues from future periods. OTHER PRIOR YEAR T (4,914) (1,358) Primarily ITV label reclass. 2ND PRIOR YEAR RELEASES T (685) (357) 2005 - 2011 RELEASES DHE FLOW RESERVE T (3,564) (1,711) OTHER 2005 -2011 RELEASES T 3,992 354 Primarily timing of DHE and DOMFREE revenues from future. EBIT negatively impacted by timing of DOTH costs from prior periods. CATALOG T 1,099 (2,159) EBIT negatively impacted by timing of WWHE releasing costs from prior periods ($1.3M) and future periods ($.3M). OVERHEAD T - (27) TERM DEALS / ABANDONMENTS P - 21 MADISON GATE P 57 17 OTHER INCOME/EXPENSE P (1) (28) (10,536) 16,570 SONY PICTURES CLASSICS CURRENT YEAR RELEASES COMPANY YOU KEEP, THE T 3,526 2,130 Increase primarily due to timing of DVOD revenue from future periods and DHE release date shift from July to August. AT ANY PRICE P (780) (515) Primarily due to lower than expected DHE performance, ultimate decreased from $3.3M to $1.5M. BLUE JASMINE T/P 6,076 (2,157) Increase in revenue primarily due to better than expected DTH performance, DBO increased from $4M to $20M. EBIT negatively impacted by timing from future periods and increase of DAD from $2.7M to $9.0M. OTHER RELEASED / UNRELEASED TITLES T (582) 572 EBIT positively impacted by allocation of ads to titles. PRIOR YEAR RELEASES AMOUR P 916 894 Increase primarily due to better than expected DHE performance, ultimate increased from $1.3M to $3M. OTHER PRIOR YEAR RELEASES T/P (180) (422) 2ND PRIOR YEAR RELEASES T 206 58 Primarily timing of DHE revenue from future periods for MIDNIGHT IN PARIS. 2005 - 2011 RELEASES/CATALOG T 758 308 Primarily timing of DHE and ITV revenue from future periods/ ITV label mix. OTHER T - (26) 9,940 842 P - Permanent T - Timing within this fiscal year L - Timing between current and prior fiscal year N - Timing between current and next fiscal year 2 SONY PICTURES ENTERTAINMENT REVENUE AND EBIT RECONCILIATION - BUDGET VS. ACTUAL FOR THE MONTH ENDED August 31, 2013 (In thousands) EBIT P/T REVENUE (SOP) SONY PICTURES ANIMATION CURRENT YEAR RELEASES RELEASED TITLES SMURFS 2 P (35,928) (23,061) Primarily due to lower than expected WWTH performance, DBO/IBO decreased from $125M/$400M to $70M/$350M. OTHER CURRENT/UNRELEASED TITLES T 7 (244) PRIOR YEAR RELEASES HOTEL TRANSYLVANIA T 673 426 Primarily due to timing of IVOD and ITV revenues from prior periods ($0.7M) OTHER PRIOR YEAR RELEASES T (76) (65) 2ND PRIOR YEAR RELEASES T/P 3,134 1,374 Primarily due to timing of ITV revenue from prior periods ($1M) and better than expected DHE & IHE performance for SMURFS, ultimates increased from $83.9M to $84.4M and $54.9M to $61.0M, respectively. 2005 - 2011 RELEASES P 1,449 784 Primarily due to better than expected IHE performance for OPEN SEASON 3 and DHE performance for CLOUDY WITH A CHANCE OF MEATBALLS. OTHER T - (97) (30,741) (20,883) SCREEN GEMS CURRENT YEAR RELEASES UNRELEASED TITLES MORTAL INSTRUMENTS P (8,382) (12,557) Lower than expected DTH performance; DBO decreased from $60M to $25M. EBIT negatively impacted by timing higher DTH Ad spend; ultimate increased from $14M to $29M (assumed MGM as partner during Budget). OTHER CURRENT/UNRELEASED TITLES T 3 807 Primarily timing of DAD costs to future periods for CARRIE and NO GOOD DEED. PRIOR YEAR RELEASES OTHER PRIOR YEAR T 58 301 2ND PRIOR YEAR RELEASES OTHER SECOND PRIOR YEAR T 1,011 597 Primarily timing of IHE from future periods. 2005 - 2011 RELEASES/CATALOG T/P 1,276 682 Increase primarily due to timing of DHE and better than expected ITV revenue for various flow titles. OTHER - SCREEN GEMS T 1 (73) (6,033) (10,243) INTERNATIONAL MOTION PICTURE PRODUCTION T/P 242 (15) 242 (15) SPRI T 21 698 MOTION PICTURES VARIANCE (37,107) (13,031) MOTION PICTURES ACTUAL $ 357,140 $ 12,022 3 SONY PICTURES ENTERTAINMENT REVENUE AND EBIT RECONCILIATION - BUDGET VS. ACTUAL FOR THE MONTH ENDED August 31, 2013 (In thousands) EBIT P/T REVENUE (SOP) PRODUCTION SERVICES BUDGET $ 17,699 $ 2,101 Imageworks Timing of production work and margin improvement on Cloudy 2. T 1,879 1,300 Timing of production work on AYNIK ($1M) and TBD unawarded work ($500K). T (1,560) (300) Other (Relocation, depreciation, telecom, etc.). T 1 823 320 1,823 Interactive Timing of 3rd party business T (8) - (8) - Post Production PMC-delay of vault consolidation initiatives & Sound-show pushes T (1,950) (1,913) (1,950) (1,913) Colorworks Delay in 4K Mastering Initiative Work from SCA T (518) (518) Various SG&A expenses T 1 116 (517) (402) PRODUCTION SERVICES VARIANCE (2,155) (492) PRODUCTION SERVICES ACTUAL $ 15,544 $ 1,609 WORLDWIDE ACQUISITIONS BUDGET $ 41,020 $ 6,871 EVIL DEAD (2013): DHE release accelerated from Aug 2013 (budget) to July 2013. T (13,715) (3,551) 2 GUNS: Int'l Theatrical revenue and costs lower than budgeted due to territory release plans delayed T (2,699) 1,348 to Sept/Oct. MAGIC MAGIC: DHE release delayed from July 2013 (budget) to August 2013. T 695 294 OLYMPUS HAS FALLEN: DHE release delayed from July 2013 (budget) to August 2013. T 3,171 3,100 HOUSE OF CARDS: ITV revenues above budget. P 3,858 1,068 AUSTENLAND: Theatrical releasing costs delayed due to US release budgeted in July, delayed to T (310) (1,255) August 16. DHE CATALOG RESERVE not budgeted T (912) (145) OTHER (primarily Int'l. TV, various Flow titles) T 937 772 WORLDWIDE ACQUISITIONS ACTUAL $ 32,045 $ 8,502 HOME ENTERTAINMENT BUDGET $ 6,528 $ (7,471) Domestic Home Entertainment 3rd Party distribution fees were unfavorable to budget. T (233) (233) Activities related to DHE Acquisition titles T 130 23 Vesting of third traunch in Coinstar restricted stock (48,337 shares) P 372 372 Other, net T (58) 127 211 289 Digital Distribution Third party mobile and Sony Music revenues and costs P 246 246 Timing of G&A - lag in hiring T - 9 246 255 International Home Entertainment Japan - True up of RE:Damnation return reserves P 620 480 Australia - NR Variance due to Net Accounting required for Actuals; GP variance driven by general P (1,695) 30 performance G&A - Driven mainly by savings in GER, JPN and UK; FX +$0.1m P - 700 Restructuring Costs T - (555) OTHER - various territories P 528 214 (547) 869 HOME ENTERTAINMENT VARIANCE (90) 1,413 HOME ENTERTAINMENT ACTUAL $ 6,438 $ (6,058) 4 SONY PICTURES ENTERTAINMENT REVENUE AND EBIT RECONCILIATION - BUDGET VS. ACTUAL FOR THE MONTH ENDED August 31, 2013 (In thousands) EBIT P/T REVENUE (SOP) TELEVISION BUDGET $ 250,147 $ 14,025 U.S. PRODUCTION & AD SALES Network, Non-Scripted Reality, & Daytime UNFORGETTABLE T (1,373) (91) Primarily due to timing of Int'l Distribution contribution with later in the year. BLACKLIST T (7,404) (807) Timing of deliveries with later in the year. MICHAEL J. FOX T (4,800) (88) Timing of deliveries with later in the year. YOUNG AND THE RESTLESS T (2,465) (801) Primarily due to timing of deliveries with later in the year, as well as timing of Int'l Distribution releasing costs (-$600k gp) with earlier in the year.