Entertainment MRP Follow Up Items

Corporate Control Department 日付 2

Sony Pictures Entertainment Action Item In charge of Status/Due

Overall Two digit Revenue & OP CAGR growth as a bottom line for the MRP period - Confirmed by ML

Benchmarking vs. the industry (although we know it will not be an apple to apple comparison)

HQ/SPE 2015/1E

Clarify the increase of non-allocated corporate costs between FYE13 and FYE15

SPE Done

Review corporate costs currently unallocated to business units and consider to allocate should there are any cost that should belong to business units.

SPE 2015/1E

Categorize cash flow into following four categories; a) Working capital from increase of business volume b) Longer cash conversion cycle as a business structure changes (i.e. from

distribution through DVD to TV/New platforms) c) Financial arrangements (including asset sales) d) Strategic Investments

SPE 2014/12E

Corporate Control Department 日付 3

Sony Pictures Entertainment Action Item In charge of Status/Due

Media Network

Strengthen MSM’s management to mitigate the risk of increasing MSM’s exposure as SPE believes it is difficult to find the second India.

SPE Completed

Proceed feasibility study of financing capability in India for future growth HQ/SPE 2014/12E

Determine the direction to GSN buy/sell option with consideration of ROI based upon the bottom line (NIAT) to evaluate acquisition of minority stakes (42%) of GSN, rather than just OP impact (zero). This approach will be applied to all other acquisitions.

SPE 2015/1E

Motion Picture

It is confirmed that ultimate basis performance monitoring is important as well as periodic performance. Ultimate basis monitoring will be applied for future reporting.

SPE 2015/1E

Corporate Control Department 日付 4

Sony Music Entertainment Action Item In charge of Status/Due

Overall Prepare contingency plan if anticipated aggressive growth of Streaming market growth (FYE15-18 CAGR: 45%) might not be reached

SME 2015/1E

Categorize cash flow into following four categories; a) Working capital from increase of business volume b) Longer cash conversion cycle as a business structure changes (i.e. from

distribution through DVD to TV/New platforms) c) Financial arrangements (including asset sales) d) Strategic Investments

SME 2014/12E

Corporate Control Department 日付 5

Sony/ATV Music Publishing Action Item In charge of Status/Due

Overall Justify the reasonability of evaluating S/ATV’s performance with performance of virtual consolidation of EMI

HQ 2015/1E

How to achieve the tasks incorporated in MRP. S/ATV 2015/1E

Categorize cash flow into following four categories; a) Working capital from increase of business volume b) Longer cash conversion cycle as a business structure changes (i.e. from

distribution through DVD to TV/New platforms) c) Financial arrangements (including asset sales) d) Strategic Investments

S/ATV 2014/12E

EMI Consider the way to increase Sony’s influence to DH to strength our control the costs.

Kober 2015/1E

Corporate Control Department 日付 6

Strategic Investment Action Item In charge of Status/Due

Overall It is confirmed that we need to invest following items to maintain current business; Syco, MaaTV, and Vevo

- Confirmed by ML

Determine the direction for the Buy/Sell Option regarding The Orchrard ML, SME 2015/1E

Planning to exit from Music Publishing Business (Sony/ATV and EMI) where Sony could not expect organic growth and synergies with other business.

SCA (Kober) In Process

Make a package of strategic investment which utilize the balance between the gain from disposing Music Publishing and necessary strategic investment to maintain business.

Lynton, Nichole

2015/2E