CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY10 Budget Overview February 2009.
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Transcript of CONFIDENTIAL -- Sony Pictures Entertainment Work Product FY10 Budget Overview February 2009.
CONFIDENTIAL -- Sony Pictures Entertainment Work Product
FY10 Budget Overview
February 2009
CONFIDENTIAL -- Sony Pictures Entertainment Work Product
Agenda
Page
FY09 Q4 Forecast
FY09 Budget Highlights
Strategic Objectives
FY10 Budget Overview
Appendices
CONFIDENTIAL -- Sony Pictures Entertainment Work Product
Q4 Forecast Q4 Variance FY09 Budget Variance
3
FY09 Q4 Revenue, EBIT Summary & Net Cash Flow (FINANCE TO ADD)
Commentary on Variances•
Risks & Opportunities•
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 4
FY09 Budget Highlights (TO WORDSMITH, BOUNCE)
• Cost reduction initiatives– Headcount reductions– Hiring policy changes (production-based model)– OT policy changes– Reduce average salary levels by redesigning the workforce in favor of younger, more energetic, les expensive talent,
leveraging the IPAX program– Reduce non-contractual salary increases– Redesign employee benefits (both mix and eligibility) to reduce fringe rate– Redesign bonus plan– New Mexico production rebate– Improve utilization of billable employees (Production Portal)– Redesign organization structure and management team– Reduce employees under contract and/or make it easier to terminate contractual employees– Implement better systems for performance tracking– Increased density of existing office space and resize facility to new headcount levels– Eliminate underutilized equipment, licenses, and office space– Reduce maintenance expenses
• Timing on Hotel T
• Open Season 2
• Surf’s Up
CONFIDENTIAL -- Sony Pictures Entertainment Work Product page 5
SPDP’s Strategic Objectives
• Prioritize Imageworks around needs of SPA & Columbia, using excess capacity to service third parties
• Reduce facility size and execute on cost reduction initiatives at Imageworks
• Manage visual effects business on a break-even basis, only charging internal productions “at cost” (no profit)
• Increase SPE’s participation and success in family features market
– CG animated films at the high end ($100MM+) and mid-tier ($25-50MM)
– Animation/live action hybrids– DTV sequels
• Shepard Aardman relationship for SPE
• Expand digital marketing services beyond SPE to third parties via Imageworks Interactive
Focus on High Margin, Growth
Businesses
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 6
FY10 Financial Summary (FINANCE TO ADD)
Commentary •
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 7
FY10 Revenue & EBIT (FINANCE TO ADD)
Commentary •
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 8
FY10 Net Cash Flow (FINANCE TO ADD)
Commentary •
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 9
FY10 Risks & Opportunities (FINANCE TO ADD)
Commentary •
CONFIDENTIAL -- Sony Pictures Entertainment Work Product
Appendix
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 11
CLO STRIP (FINANCE)
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 12
Cost Reduction (FINANCE)
CONFIDENTIAL -- Sony Pictures Entertainment Work Product 13
Revenue to Net Income (FINANCE)