SPT Networks GAMES

FY2014 BUDGET

12.18.12

Distribution & Business Development

• Set up entity – Sony Pictures Television Networks Games – and implemented new licensing structure

• Expanded distribution• Created and greenlit 3

new WOF/JEP brand extensions

• Created and greenlit first original IP game, Blackjack

• Licensed WOF Slots to GSN

• Closed talent deal

Product & Operations

• Launched new WOF game

• Maintained WOF/JEP Legacy products

• Conceptualized and started development on 4 new games (WOF/JEP extensions, Blackjack)

• Migrated server storage to the cloud

• Hired 2 producers

Marketing & PR

• Launched first on-air promo campaign

• Launched comprehensive campaign for WOF launch including press

• Analyzed and optimized pricing for JEP

Games FY13 Highlights

Per MRP, SPT Networks Games maintained WOF/JEP as premiere digital properties and expanded the business by developing homegrown IP

Distribution & Business Development

●Created and greenlit 3 new WOF/JEP brand extensions●Created and greenlit first original IP game, Blackjack●Closed talent deal●Set up entity – Sony Pictures Television Networks Games – and implemented new licensing structure●Licensed WOF Slots to GSN●Expanded distribution

Product & Operations● Maintained WOF/JEP Legacy products● Hired 2 producers● Launched new WOF game● Migrated server storage to the cloud● Conceptualized and started development on 4 new games (WOF/JEP extensions, Blackjack)Marketing & PR●Launched first on-air promo campaign●Analyzed and optimized pricing for JEP●Launched comprehensive campaign for WOF launch including press

2

Games FY13 Q3 Forecast

WOF timing issue

New license deal with GSN

Reinvesting into new

products (Jep 30/Sports Jep)

Cloud storage savings

Reinvesting into new products

3

($000's)

Q3 Fcst FY13 BUDGET Variance

REVENUEWheel of Fortune 2,604 3,500 (896) Jeopardy! 1,006 1,000 6 Licensing 2,189 2,189

TOTAL REVENUE 5,800 4,500 1,300

COST OF REVENUESProduction & Content (1,429) (993) (436) Testing (22) (23) 1 License Fees (2,200) (2,200) (0) Music Royalty (206) (206) TOTAL COGS (3,857) (3,216) (641)

OPERATING EXPENSESTechnology

Hosting/Bandwidth (53) (120) 67 Data Management (90) (90) - Sub-Total Technology (143) (210) 67

Sales and Marketing (600) (350) (250)

General and Admin. (700) (665) (35)

TOTAL OP. EXPENSES (1,443) (1,225) (218) -

EBIT 500$ 60$ 440$

Headcount 5 5 -

Cashflow 900$ (400)$ 1,301$

Beat budget by $440K

SPT EBIT is forecasted to be

$2.7m, up from $2.2m in budget

Expand Distribution

Platforms

OEMs

International

Deepen Partnerships

Distribution

Publishers / Licensees

Vendors

Diversify Product

WOF/JEP Brand

Extensions

Blackjack / Original IP

Licensing

Increase Marketing

Preloads / Placements

Product Updates

PR / Media

Streamline Operations

QA / Customer Service

Back-end Systems

Maintenance

Expand and diversify through platform expansion, strategic partnerships and the launch of new IP

Expand Distribution● Platforms● OEMs● International● Distribution● Publishers / Licensees● Vendors● WOF/JEP Brand Extensions● Blackjack / Original IP● Licensing● Preloads / Placements● Product Updates● PR / Media● QA / Customer Service● Back-end Systems● Maintenance

4

FY14 Distribution, Marketing & Product

* Android includes Google Play, Amazon and Nook storefronts

Diversify portfolio by leveraging tent pole franchises and developing new IP

5

Title % of

RevenueLaunch

DateLaunch

Platforms Q1 Q2 Q3 Q4

WOF/JEP Legacy 4% LiveiOS, Android,

Windows, Roku

WOF Slots 16% Live iOS, Android

WOF 15% Live iOS, Android

WOF Cubed 14% May 2013 iOS

Blackjack the Knight

10% Jun 2013 iOS, Android

Sports Jeopardy! 18% Aug 2013 iOS, Android

WOF Kids 7% Sep 2013 iOS

Jeopardy! 30 7% Nov 2013 iOS, Android

TBD Title 9% Nov 2013 iOS

Launch

Launch

Launch

Launch

Launch

Launch

ProductUpdate

ProductUpdate

PlatformExpansio

n

ProductUpdate

ProductUpdate

ProductUpdate

ProductUpdate

Live

Live

FY14 Product Roadmap

Pro

du

cer Design new games

Create and maintain game design docs

Manage vendors, deadlines and approvals

Oversee QA

Plan updates

Support marketing team

Ass

oc.

Pro

du

cer Lead QA

Maintain and customize bug-tracking

Create test plans

Assist Producer and Manager

Prepare and present status reports

FY14 Headcount

Hire 2 additional product heads to allow for continued product expansion; one producer/assoc. producer team per 2-3 projects

Producer●Plan updates●Support marketing team●Design new games●Create and maintain game design docs●Manage vendors, deadlines and approvals●Oversee QA

Assoc. Producer

●Assist Producer and Manager●Maintain and customize bug-tracking●Create test plans●Prepare and present status reports●Lead QA

6

Games FY14 Budget

7

Increase in y-o-y revenue due to WOF/JEP brand

extensions, Original IP and

licensing

Increase in y-o-y expenses due to reinvesting into new products,

updates, maintenance and

marketing

($000's)

FY13 FY14 FY14 VarianceQ3 Fcst MRP BUDGET vs. MRP vs. Last Year

REVENUEWheel of Fortune 2,604$ 3,100$ 3,365$ 265$ 761$ Jeopardy! 1,006$ 2,600$ 2,600$ 0$ 1,594$ Original IP- Black Jack 1,100$ 967$ (133)$ 967$ Original IP- TBD 500$ 797$ 297$ 797$ Licensing 2,189$ 1,526$ 1,526$ (663)$

TOTAL REVENUE 5,800$ 7,300$ 9,256$ 1,957$ 3,456$

COST OF REVENUESProduction & Content (1,429)$ (2,263)$ (3,620)$ (1,357)$ (2,191)$ Testing (22)$ (21)$ (21)$ -$ 0$ License Fees (2,200)$ (2,400)$ (2,500)$ (100)$ (300)$

Music Royalty (206)$ -$ -$ 206$ TOTAL COST OF REVENUES (3,857)$ (4,684)$ (6,141)$ (1,457)$ (2,285)$

OPERATING EXPENSESHosting/Bandwidth (53)$ (279)$ (279)$ (0)$ (226)$ Data Management (90)$ (90)$ (90)$ -$ -$

Sub-Total Technology (143)$ (369)$ (369)$ (0)$ (226)$

Sales and Marketing (600)$ (799)$ (1,049)$ (250)$ (449)$

General and Admin. (700)$ (947)$ (947)$ (0)$ (247)$

TOTAL OP. EXPENSES (1,443)$ (2,115)$ (2,365)$ (250)$ (922)$

OP. INCOME BEFORE CONT. 500$ 500$ 750$ 250$ 250$

EBIT 500 500 750 250 250

Headcount 5 7 7 - 2

Cashflow 900$ (200)$ (200)$ 0$ (1,100)$

50% y-o-y increase in

EBIT

SPT EBIT increases $550K y-o-y to $3.25m

Appendix - Blackjack the KnightPlay Black Jack with Fantasy Role Playing twist in this game based on

original IP developed in-house

Launch: June 2013, iOS, AndroidPrice Point: $0.99 with In-App PurchasesTarget Audience: Card/Strategy gamersKey Features:

• Progression-based story mode for single players – defend against an evil Joker who has captured all the Kings and Queens

• Travel through the world and fight enemies with easy to pick up and play Black Jack rules

• Customizable Player Avatars gives each individual a unique playing style

• Play against your friends through FB Connect with an asynchronous turn-based mode

In-Game Monetization:• In-game currency allows the player to purchase “Gold” in bulk to

spend on virtual Items• Virtual items include additional weapons, strength, power ups

etc.

Appendix - Wheel of Fortune Cubed

9

Launch: May 2013Platforms: iOSPrice Point: $0.99 with In-App purchaseTarget Audience: Casual/social gamers

Key Features:• Combines Wheel of Fortune with Crossword Puzzles• Fun and addictive like Sudoku• Play against your friends online, asynchronous, or live• Have multiple games going on with different friends• Play different modes – solitaire, speed round,

multiplayerIn-Game Monetization:

• Additional Puzzles and Power Ups

Combine the rules of Wheel of Fortune with the cleverness of a Crossword

Appendix – FY13 Q3 Forecast

10

($000's)

Q3 Fcst Q2 Fcst Variance FY13 BUDGET Variance

REVENUEWheel of Fortune 2,604 3,105 (500) 3,500 (896) Jeopardy! 1,006 1,021 (15) 1,000 6 Licensing 2,189 374 1,815 2,189

TOTAL REVENUE 5,800 4,500 1,300 4,500 1,300

COST OF REVENUESProduction & Content (1,429) (1,071) (358) (993) (436) Testing (22) (22) 0 (23) 1 License Fees (2,200) (2,200) - (2,200) (0) Music Royalty (206) - (206) TOTAL COGS (3,857) (3,293) (564) (3,216) (641)

OPERATING EXPENSESTechnology

Hosting/Bandwidth (53) (61) 8 (120) 67 Data Management (90) (90) - (90) - Sub-Total Technology (143) (151) 8 (210) 67

Sales and Marketing (600) (350) (250) (350) (250)

General and Admin. (700) (646) (54) (665) (35)

TOTAL OP. EXPENSES (1,443) (1,147) (296) (1,225) (218) - -

EBIT 500$ 60$ 441$ 60$ 440$

Headcount 5 5 - 5 -

Cashflow 900$ (400)$ 1,300$ (400)$ 1,301$