Entertainment MRP Follow Up Items

Sony Pictures Entertainment

Overall

Action Item

In charge of

Status/Due

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

Sony Pictures Entertainment

Action Item

Media
Network

Motion
Picture

In charge of

Status/Due

Strengthen MSMs management to mitigate the risk of increasing MSMs

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

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

Sony Music Entertainment

Action Item

Overall

In charge of

Status/Due

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

Sony/ATV Music Publishing

Action Item

Overall

EMI

In charge of

Status/Due

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

Consider the way to increase Sonys influence to DH to strength our control

the costs.

Kober

2015/1E

Justify the reasonability of evaluating S/ATVs performance with

performance of virtual consolidation of EMI

Corporate Control Department

Strategic Investment
Action Item

Overall

In charge of

Status/Due

Confirmed
by ML

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

It is confirmed that we need to invest following items to maintain current

business; Syco, MaaTV, and Vevo
Determine the direction for the Buy/Sell Option regarding The Orchrard

Corporate Control Department