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SONY PICTURES ENTERTAINMENT

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Total Project Costs: $200 Million Total Loan Amount: $100 Million Total # Investors: 200 Total # New Jobs: 3,250 Project Summary

Job Creation : 

Job Creation Job creation based on spending on film/TV productions Virtually every dollar of the big studios annual film budget goes into film making; we are not building sets or studios that would require us to apply a different multiplier We don't know of any other industry where the multipliers work so directly and easily and this is an important reason why U.S. immigration attorneys love our film deals

Job Creation : 

Job Creation Sony Pictures Entertainment, one of the “Big Six” motion picture companies, typically spends per year: $50 MM on an average film $100 MM on a few big films $7-10 MM on Sony Classics and Screen Gems $30-50 MM for a TV series Approximate annual production of films: Columbia 10-15 Sony Classics 8-10 Screen Gems 10-12 Approximate annual production of TV Series: 10

Job Creation : 

Job Creation U.S. Bureau of Economic Analysis RIMS (Regional Input Modeling System) final-demand job multiplier will be used Jobs calculated by money spent by Sony on its films Sony must spend money on films each year Only need to show that money has been spent in I-829 Petition to prove jobs Evidence of spending by Sony will be audit reports by major international accounting firm This job creation methodology has been specifically approved by USCIS to be used for the LA Film Regional Center

Job Creation : 

Job Creation Job Calculation: $100 MM (LA Film Regional Center loan) + $100 MM (Sony Equity) $200 MM x 16.2555 (Jobs per million dollars spent) 3251 jobs Averages 16-17 jobs per investor

Strengths of SONY : 

Strengths of SONY Although the Sony Project is not a “governmental” project, Sony has: a diversified business high credit rating impressive balance sheet  The Sony Project is a low risk investment that is like no other project on the market

Sony Corporation Organizational Flowchart : 

Sony Corporation Organizational Flowchart Sony Corporation (Japanese parent company with US $36 BB in assets) Sony Corporation of America (Umbrella company of all US Sony entities including Sony Pictures Entertainment) Sony Pictures Entertainment Borrower Sony Global Treasury Services (Guarantor of loan-backed by Sony Corporation)

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Sony Corporation leading manufacturer of consumer and professional products: electronics video communications video game consoles information technology products music and film entertainment computers

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1,035 consolidated subsidiaries worldwide Listed on four stock exchanges (NY, London, Tokyo, Osaka) Headquartered in Tokyo, Japan Annual sales of approximately $78.9 billion Employs 171,300 people globally Sony Corporation

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2008 Revenue by Business Segment

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Technology Highlights LCD TV Blu-Ray Disc Recorder PERSONAL COMPUTER VAIO DIGITAL VIDEO CAMERA Handycam GAMING Playstation 3

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Early Corporate History 1946 Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation), also known as Totsuko, established in Nihonbashi, Tokyo with start up capital of 190,000 yen for the research and manufacture of telecommunications and measuring equipment 1950 Japan's first magnetite-coated, paper-based recording tape, “Soni-Tape,” launched 1955 Decision made to use SONY logo on Totsuko products. Release of TR-55, Japan’s first commercially produced transistor radio 1958 Company name changed to Sony Corporation 1960 Sony Corporation of America established in United States 1970 Sony shares listed on New York Stock Exchange

Sony Corporation of America : 

Sony Corporation of America

Sony Corporation of America : 

Sony Corporation of America Umbrella company of all Sony companies operating in the US Sony Pictures Entertainment, Inc. Sony Electronics Inc. Sony computer Entertainment America, Inc. Sony Music Entertainment Annual sales of approximately $29 BB

Sony Pictures Entertainment : 

Sony Pictures Entertainment

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Sony Pictures Entertainment Formerly known as Columbia Pictures Entertainment Acquired from the Coca-Cola company in 1989 Renamed in 1991 Annual sales of approximately $7.2 billion

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Sony Pictures Entertainment Global Operations Motion picture production and distribution Television production and distribution Digital content production and distribution Worldwide channel investments Home entertainment acquisition and distribution Operation of studio facilities (Sony Pictures Studios) Development of new entertainment products, services and technologies Distribution of filmed entertainment in more than 130 countries

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Sony Pictures Entertainment Major Holdings Columbia TriStar Motion Picture Group Sony Pictures Television Group Sony Pictures Digital Production Sony Pictures Home Entertainment Sony Pictures Studio

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With a library of more than 4,000 films (including 12 Academy Award for Best Picture winners), this unit of Sony distributes about 22 films a year under its various studio brands in 67 countries. The group owns studio facilities in the United States, Hong Kong, Madrid, Mexico, the United Kingdom, Brazil and Japan. Columbia TriStar also has a contract to distribute films for independent Revolution Studios and select films by MGM and United Artists. Columbia Pictures: Founded in 1924 by Harry Cohn, Sony acquired the studio in 1989 from The Coca-Cola Company for $3.4 billion. TriStar Pictures: Formed in 1982 as a joint venture between Columbia Pictures, HBO, and CBS. Became part of Columbia Pictures Entertainment in December. The brand was relaunched in 2004 as a marketing and acquisitions unit with a particular emphasis on genre films. Columbia TriStar Motion Picture Group

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Acquired from Warner Bros. in 1990 Underwent 3 year renovation Now a state-of-the-art, 45 acre studio 22 Sound stages ranging from 7,600-43,000 square feet Shows taped at studios include Rules of Engagement, Wheel of Fortune, and Jeopardy!

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Sony Global Treasury Services Corporate entity that guarantees all Sony’s loans S&P Credit Rating: A- Based in UK Backed by Sony Corporation which has net assets in excess of US$36 BB Internal banking system for Sony worldwide:

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Why invest in Sony?

Why invest in Sony? : 

Why invest in Sony? Credit Worthy Company Standard and Poor’s credit index lists Sony Corporation and Sony Global Treasury Services as A- companies, meaning it’s a low risk investment So even though it is an unsecured loan, it is less risk to loan to a such a large multi-billion dollar company like Sony Corporation with an A- rating, than a smaller company with a lower rating and a secured loan because such a large company has the means to repay the loan Sony Pictures Entertainment will be the Borrower in the loan agreement, Sony Global Treasury Services will be the guarantor backed by US $36 billion in assets of Sony Corporation

Why invest in Sony? : 

Why invest in Sony? Ideal Job Creation methodology More than enough jobs created Final-Demand multiplier, which is based on project expenditures is used to calculate the number of jobs created With 3,250 direct and indirect jobs estimated to be created, an average of 15-16 jobs per investor is allocated, well exceeding the job creation requirement necessary for the loan Job creation is KEY successful conditional removal for permanent green card

Why invest in Sony? : 

Why invest in Sony? Auditing Will be completed by one of the largest of the Big Four auditing firms or Grant Thornton, LLP Grant Thornton LLP is the U.S. member firm of Grant Thornton International Ltd, one of the six global audit, tax and advisory organizations

Why invest in Sony? : 

Why invest in Sony? International Film Successes and Technological Firsts Recent film hits like Michael Jackson’s This is it and 2012 large box office successes Playstation continues to be an internationally successful home video game system Some “Firsts”-first non-projection-type portable transistor in 1960, world’s first compact disc player in 1982, and the world’s first HD camcorder in 1997