Sony Pictures Digital Productions Mid-Range Plan September 3, 2013.
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Transcript of Sony Pictures Digital Productions Mid-Range Plan September 3, 2013.
Sony PicturesDigital Productions
Mid-Range PlanSeptember 3, 2013
FY14 Mid-Range Plan Strategy Overview
o SPA Strategic Priorities
o SPA Development Slate & Release Schedule
o Imageworks Strategic Priorities
o Colorworks & Post Strategic Priorities
o Interactive Strategic Priorities
MRP Financial Projections
Financial Appendix
Strategy Appendix
Strategy Overview
5
Produce up to two family films per year (either CG animated or live-action hybrid) while reducing production budgets to compensate for eroding video and TV marketso Cloudy 2 production budget was reduced by 20% to $79.9MMo Smurfs 3 budget will be a maximum of $90MM but could be less
if the P&L indicates
Identify high concept pre-existing or original properties that can be developed into strong franchises with global appealo The strong performance internationally of the Smurfs franchise
is due in part to high pre-existing awareness via the 80’s TV series, comic books and licensing
o Popeye is a widely recognized global icon (via a longstanding licensing program) that will bring built-in awareness when the property is successfully modernized for today’s audience
o As a sequel, Cloudy 2 leverages the brand awareness generated by the first film
o Kazorn & the Unicorn is an original take on the buddy comedy in the popular barbarian/fantasy genre
Sony Pictures AnimationStrategic Priorities
6
Plan to execute sequels with no more than a three year lapse to maximize brand potentialo Identify sequel ideas as early as possible to ensure this turn-
around (e.g., executed on two-year turnaround for Smurfs 2; working on script for Smurfs 3)
Have films greenlit and in production two years ahead of theatrical releaseo Use the lead-time to develop strategic marketing plan and solicit
high quality co-promotional and licensing partners who will deliver media value and sustained awareness
o Provide SPE Marketing with required assets as early as possible in the timeline to ensure all milestones are successfully hit
o Work closely with Consumer Marketing to make our characters “licensing and promotional friendly”
Sony Pictures AnimationStrategic Priorities (cont.)
24 month
s
18 month
s
16 month
s
12 month
s
9 month
s
6 month
s
3 month
s
2 month
s
1 month
Online video spots begin
Sony Pictures AnimationDespicable Me 2 vs. Cloudy 2 Marketing/Promotions
Timeline*
7* For comparison, most dates are based on digital releases for trailers/TV spots (where applicable)** Despicable Me 2 as of 8/29/13 ***NCM spot for Cloudy 2 updated during summer
Promotional partner meetings occur (partners will deliver over $254MM in media value)
Promotional partner meetings occur
Teaser – Minions Short
Minion Madness Ride @ Universal Florida opens
First Trailer
First Trailer
Cinemark Short
Second Trailer
AMC Short
First TV integration (Kid’s Choice Awards)
NCM Spot***
Second Trailer
TV spots begin (Mother’s Day)
TV spots begin
Online video spots begin
DBO: $351.7MM (+40%)IBO: $455.1MM (+56%)WWBO: $806.8MM (+50%)**3 years since prior film
DBO (target): $125.0MM (+0%)IBO (target): $200.0MM (+70%)WWBO (target): $325.0MM (+34%)4 years since prior film
Despicablimp travels the U.S.
Foodmobile Tour begins
Viral Video
Sony Pictures AnimationStrategic Priorities (cont.)
Maintain ongoing relevance of the brand by producing additional content at low costo 22 minute CG/2D blend Smurfy Hollow will broadcast and sold
globally prior to home video release of Smurfs 2, expanding on a promotional strategy tested successfully with Smurfs A Christmas Carol Smurfy Hollow cost $3.2MM (15% reduction from Smurfs A
Christmas Carol) and will be paired with Christmas Carol for later sale in a separate holiday bundle
The Christmas Carol premiere on Cartoon Network was the number one show on cable in its 730p time slot last year and has sold well as an independent title*
o Opportunistically produce shorter duration, lower cost shorts that can be used flexibly to promote the brand and monetized during home video release The four Cloudy 2 shorts (production cost: $350K each /$1.4MM
total) will not only be used in second wave marketing for the film but in the “white space” between theatrical and home video release to maintain awareness
*Note: P2+: 3.0MM. Rating excludes local programming
8
9
Attract top-tier talent to lead our films while also building talent from withino Genndy Tartakovsky (Dexter’s Laboratory, Samurai Jack, Clone
Wars, and Hotel T), is attached to direct Hotel Transylvania 2, Popeye and write/direct his own project Imagine This!
Genndy brings a rabid fanbase and his own unique style that is perfectly suited to our emerging cartoony brand. He is the ideal talent to continue the Hotel T franchise and revive Popeye as a modern, global brand
o Kelly Asbury, attached to direct Kazorn, is a perfect fit for the sensibility of the project having helmed the most successful animated film of all time (Shrek 2), in addition to Disney’s 2011 surprise hit Gnomeo and Juliet
Kelly is teamed with Troy Quane, who directed A Smurfs Christmas Carol
o Cloudy 2 executive producers Phil Lord and Chris Miller provided the central creative idea for the film and supported directors Cody Cameron and Kris Pearn throughout production. Cody & Kris were part of Chris and Phil’s story team for Cloudy 1
Sony Pictures AnimationStrategic Priorities (cont.)
Sony Pictures AnimationStrategic Priorities (cont.)
Exploring TV series based on our properties as an additional line of businesso Currently negotiating with production partners to license our
properties for TV series based on our properties, emulating DWA model for Penguins of Madagascar show on Nick (Nick produces the show and handles licensing)
o EBIT potential from new licensing opportunitieso Potential for incremental profits from rights fees and a share of
TV revenue with no cash investment risk o Maintains high awareness in off-film years, supporting the
overall franchise (Madagascar 3 outperformed the prior film with the support of the Penguins show)
o Provides theatrical spin-off opportunities (like Penguins)
10
11
Priority Development:
o Hotel Transylvania 2: CG animated Director: Genndy Tartakovsky Writers: Robert Smigel, Adam Sandler
o Smurfs 3: CG animated/live-action hybrid Writers: Karey Kirkpatrick, Chris Poche; Jay Sherick, David Ronn
o Popeye: CG animated Director: Genndy Tartakovsky Executive producer: Avi Arad; Writers: Jay Sherick & David Ronn
o Kazorn and the Unicorn: CG animated Directors: Kelly Asbury (Shrek 2, Gnomeo and Juliet) and Troy
Quane (Smurfs A Christmas Carol), Writer: Lloyd Taylor Executive Producers: Sam Raimi, Josh Donen
o Raised by Ghosts: Live-action hybrid Producer: Chuck Gordon; Writer: Peter Baynham
o Cloudy with a Chance of Meatballs 3: CG animated Executive Producers: Phil Lord, Chris Miller
To realize this potential, SPA is currently focused on sequels and franchise-worthy originals from these established brands
Development (cont.)
12
o Alf: Live-action hybrid (based on the popular character from the 80’s TV show) Producers: Jordan Kerner, Tom Patchett & Paul Fusco
o Ninja v. Samurai: CG animated Writers: Greg Erb, Jason Oremland (Disney’s Princess & The Frog) Executive Producer: Avi & Ari Arad
13
Release ScheduleFY14FY14
Q2
Smurfs 2 (Hybrid) (7/31/13)
Q3 Cloudy 2 (9/27/13)
Q2
Smurfs 2 (Hybrid) (7/31/13)
Q3 Cloudy 2 (9/27/13)
FY15FY15
Q4 TBD Animation FY15
(February 2015)
Q4 TBD Animation FY15
(February 2015)
FY16FY16
Q2 Smurfs 3 (Animation/Hybrid)
(7/24/15)
Q3 Hotel Transylvania 2
(9/25/15)
Q2 Smurfs 3 (Animation/Hybrid)
(7/24/15)
Q3 Hotel Transylvania 2
(9/25/15)
FY17FY17
Q3 TBD Animation (Sep 2016)
Q4 TBD Animation (Feb. 2017)
Q3 TBD Animation (Sep 2016)
Q4 TBD Animation (Feb. 2017)
SPA films drive profitability across Digital Productions
14
SPI (2 year) Post/CW (1 year) Total
EBIT 3,400.0 400.0 89,300.0
CLOUDY 2 Profitability Across SPDP ($000)
SPA (life of ultimate)DBO 125 / IBO 200
85,500.0
ImageworksA lean, flexible business model generates EBIT while offering competitive pricing for SPA/Columbia
Imageworks continues to perform in a dynamic market by focusing on growing Vancouver, efficiencies in LA and securing 3rd party VFX work
16*Note: Q2 Forecast
FY08 FY09 FY10 FY11 FY12 FY13 FY14
$(40,000)
$(30,000)
$(20,000)
$(10,000)
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$(30,548) $(35,227)
$9,020 $5,826
25,123
$15,687
$6,500*
$146,324
$137,491
$183,400
$128,747
164,823 $159,551
$107,000*
FY08-FY14 Imageworks Revenues vs. EBIT
Consolidated EBIT Total Unabsorbed Costs Gross Revenue
17
Overall business environment features strong price competition, increasing volatilityo Reduction in studio slates but also a decrease in the number of
VFX playerso Imageworks has maintained leadership in creature animation,
making it in demand for these projects (ex. The Amazing Spider-Man 2; Warner Bros.’ Edge of Tomorrow, starring Tom Cruise)
Imageworks is well-positioned on price relative to competitors because the Vancouver studio now accounts for more than 50% of work (and 90% of animation work)*o Continue to move personnel to Vancouver, including
appropriate overhead and technology positions, from LAo Run LA studio as leanly and efficiently as possible to fulfill its
role as a hub for talent, innovation and business developmento At its latest peak, more than 300 artists worked from
Vancouver, a 200% increase in just 18 months
Imageworks has re-shaped cost structure to hit EBIT targets should revenue dip to $110MM (FY 14)o Because of a flexible production hire model, Imageworks is still
able to readily expand its artists, although most of that growth will occur in Vancouver rather than LA
* Excludes Imageworks India
Imageworks Strategy
18
Given proliferation of more cost –effective outsource options for labor intensive work, evaluate strategic options with the India facility, including sale or winding business down
Imageworks Strategy
Post Production Services
20
General:o Target $2.5-$3MM in savings per yearo Centralize and consolidate support functionso Longer term, explore moving some services off lot
Colorworks:o Move colorists from guaranteed weekly minimums to day
players with no gap costs – eliminate one colorist to improve utilization
o Explore supporting Colorworks VFX needs out of Imageworkso Insource Colorworks “dirt & scratch” work from third party to
Imageworks India
Post:o Integrate relevant departments into PMC – Creative Editorial,
Colorworks QC & Tape Ops, Sound Transfer, Sound Archive o Consolidate Sound & Sound Editorial leadership
Colorworks & Post Near Term Actions
21
General: SPDP is committed to managing both businesses proactivelyo Services must be profitable when priced competitively with
market, otherwise we will exito Departments will be sized in line with projected SPE needs, not
historic precedento Growth will be limited to our existing physical capacity,
assuming attractive margins and the ability to ramp down rapidly if conditions change
Colorworks: o Evaluate strategic value of remaining in DI/restoration
business, primarily for TV – Deluxe or Technicolor may be interested in acquiring Colorworks
Post:o Explore alternative uses for less utilized stages – premier
screening room, studio museum, additional TV stages, editorial rooms, office space, etc.
Colorworks & Post Strategy
23
Considering the enormous pressure on marketing budgets, re-think the efficacy of maintaining an in-house digital marketing production capability versus relying entirely on outsourcing to meet studio needs
In the meantime, these near term actions have been taken:o Reduced the size of Interactive’s break-even business by $4MM
due to smaller marketing budgeto Implemented per project price visibility so competitiveness can
be more accurately measuredo Increasing focus on developing 3rd party business to further
reduce overall costs for internal clients (like Imageworks’ model)
While increasing price competiveness, continue to focus on providing industry leading support in the following areas:o Full service production supporting SPE digital campaignso Brand manager for SonyPictures.como Web governance, partnering with Corporate Communications,
Information Security, Legal Compliance and IT
Interactive Strategy
MRP Financial Projections
25
SONY PICTURES DIGITAL PRODUCTIONSFY 2014 MID-RANGE PLANREVENUE & EBIT SUMMARY
($000s)
FY 2015 0 FY 2016 0 FY 2017Q2 FORECAST 9/13 MRP 9/12 MRP Variance 9/13 MRP 9/12 MRP Variance 9/13 MRP
NET REVENUEAnimation 612,000$ 253,000$ 389,000$ (136,000)$ 714,000$ 715,000$ (1,000)$ 415,000$ Imageworks 107,000 140,000 145,000 (5,000) 140,000 145,000 (5,000) 140,000 Interactive - 1,000 - 1,000 1,000 - 1,000 2,000 Colorworks 28,000 27,000 27,000 - 27,000 27,000 - 27,000 Post Production 60,000 57,000 79,000 (22,000) 57,000 82,000 (25,000) 57,000 TOTAL NET REVENUE 807,000$ 478,000$ 640,000$ (162,000)$ 939,000$ 969,000$ (30,000)$ 641,000$
EBITAnimation 65,000 46,000 - 46,000 102,000 64,000 38,000 50,000 Imageworks 6,500 8,000 8,000 - 8,000 8,000 - 8,000 Interactive - - - - - - - - Colorworks 1,000 1,000 6,000 (5,000) 1,000 6,000 (5,000) 1,000 Post Production 12,000 12,000 22,000 (10,000) 12,000 22,000 (10,000) 12,000 TOTAL EBIT 84,500$ 67,000$ 36,000$ 31,000$ 123,000$ 100,000$ 23,000$ 71,000$
26
SONY PICTURES DIGITAL PRODUCTIONSFY 2014 MID-RANGE PLAN
EBIT RECONCILIATION($000s)
FY15 FY16
EBIT PER 9/12 MRP $36,000 $100,000
Animation• CLOUDY 2 - timing due to release date shift to 9/27/13 vs. MRP 9/15/14; box office target increase (Current 125/200, MRP 100/150) 45,871 (7,720) • SMURFS 2 - Performance (Current: 70/350; PY MRP: 125/347); timing of IHE revenue (6,679) (282) • HOTEL T - accelerated timing of DHE & ITV revenues 3,333 3,481 • HOTEL T 2 - timing of pre-release marketing spend to FY16; box office target increase (Current 125/200, MRP 125/156) 2,210 (182) • TBD Animated (FY15) - FY16 prior year MRP flows corrected for Pay TV (1,338) 16,314 • SMURFS 3 - Box office target adjustment (Current: 75/275; PY MRP: 125/350), accelerated timing of ITV in FY16 (327) 5,370 • TBD Animated (FY17) #1 - timing of pre-release marketing spend - 7,140 • Reduced development reserve 2,000 2,000 • Remove FY16 Film Reserve - 10,000 • Other, net 930 1,879
SUBTOTAL ANIMATION 46,000 38,000
Imageworks• Decreased revenue estimate (5,000) (5,000) • Artists salaries and fringes net net of Vancouver rebate 1,900 3,100 • Depreciation expense driven by timing of capital purchases (carrying lower asset base due to less capital spending in prior years) 2,400 1,000 • Other, net 700 900
SUBTOTAL IMAGEWORKS - -
Colorworks• EBIT adjustment driven by current market conditions (5,000) (5,000)
Post Production• EBIT adjustment driven by current market conditions (10,000) (10,000)
SUBTOTAL COLORWORKS & POST PRODUCTION (15,000) (15,000)
TOTAL VARIANCE 31,000 23,000
EBIT PER 9/13 MRP $67,000 $123,000
27
SONY PICTURES DIGITAL PRODUCTIONSFY 2014 MID-RANGE PLAN
RECEIPTS & CASH FLOW SUMMARY($000s)
FY 2015 0 FY 2016 0 FY 2017Q2 FORECAST 9/13 MRP 9/12 MRP Variance 9/13 MRP 9/12 MRP Variance 9/13 MRP
NET RECEIPTSAnimation -$ -$ -$ -$ -$ -$ -$ -$ Imageworks 108,000 140,000 145,000 (5,000) 140,000 145,000 (5,000) 140,000 Interactive 18,691 19,194 31,707 (12,513) 20,534 33,432 (12,898) 21,848 Colorworks 28,000 27,000 27,000 - 27,000 27,000 - 27,000 Post Production 60,000 57,000 79,000 (22,000) 57,000 82,000 (25,000) 57,000 TOTAL NET RECEIPTS 214,691$ 243,194$ 282,707$ (39,513)$ 244,534$ 287,432$ (42,898)$ 245,848$
- OPERATING DISBURSEMENTS
Animation (178,000) (223,600) (232,200) 8,600$ (220,700) (233,700) 13,000$ (228,700) Imageworks (96,300) (119,000) (127,000) 8,000 (119,000) (126,700) 7,700 (119,000) Interactive (18,258) (18,494) (30,007) 11,513 (19,934) (31,832) 11,898 (21,248) Colorworks (25,000) (24,000) (20,000) (4,000) (24,000) (20,000) (4,000) (24,000) Post Production (45,000) (42,500) (55,000) 12,500 (42,500) (58,000) 15,500 (42,500) TOTAL OP DISBURSEMENTS (362,558)$ (427,594)$ (464,207)$ 36,613$ (426,134)$ (470,232)$ 44,098$ (435,448)$
- OPERATING CASH FLOW
Animation (178,000) (223,600) (232,200) 8,600$ (220,700) (233,700) 13,000$ (228,700) Imageworks 11,700 21,000 18,000 3,000 21,000 18,300 2,700 21,000 Interactive 433 700 1,700 (1,000) 600 1,600 (1,000) 600 Colorworks 3,000 3,000 7,000 (4,000) 3,000 7,000 (4,000) 3,000 Post Production 15,000 14,500 24,000 (9,500) 14,500 24,000 (9,500) 14,500 TOTAL OP CASH FLOW (147,867)$ (184,400)$ (181,500)$ (2,900)$ (181,600)$ (182,800)$ 1,200$ (189,600)$
- CAPITAL SPENDING
Animation (500) (400) (400) -$ (300) (300) -$ (300) Imageworks (5,200) (13,000) (10,000) (3,000) (13,000) (10,000) (3,000) (13,000) Interactive (433) (700) (700) - (600) (600) - (600) Colorworks (2,000) (2,000) (2,000) - (2,000) (2,000) - (2,000) Post Production (3,000) (2,500) (3,000) 500 (2,500) (3,000) 500 (2,500) TOTAL CAPITAL SPENDING (11,133)$ (18,600)$ (16,100)$ (2,500)$ (18,400)$ (15,900)$ (2,500)$ (18,400)$
- NET CASH FLOW
Animation (178,500) (224,000) (232,600) 8,600 (221,000) (234,000) 13,000 (229,000) Imageworks 6,500 8,000 8,000 - 8,000 8,300 (300) 8,000 Interactive - - 1,000 (1,000) - 1,000 (1,000) - Colorworks 1,000 1,000 5,000 (4,000) 1,000 5,000 (4,000) 1,000 Post Production 12,000 12,000 21,000 (9,000) 12,000 21,000 (9,000) 12,000 TOTAL NET CASH FLOW (159,000)$ (203,000)$ (197,600)$ (5,400)$ (200,000)$ (198,700)$ (1,300)$ (208,000)$
-
28
SONY PICTURES DIGITAL PRODUCTIONSFY 2014 MID-RANGE PLAN
CASH FLOW RECONCILIATION($000s)
FY15 FY16
CASH FLOW PER 9/12 MRP ($197,600) ($198,700)
Animation• TBD Title (FY15) - delayed production spend to FY15 (46,333) - • SMURFS 3 (FY16) - timing of production spend 27,754 (8,243) • HOTEL T 2 (FY16) - timing of production spend 12,516 (12,365) • TBD Title #1 (FY17) - timing of production spend (2,067) 13,317 • TBD Title #2 (FY17) - timing of production spend - 50,767 • TBD Title (FY18) - timing of production spend - (3,782) • Reduced development spending 2,000 2,000 • Net Challenge/(Opportunity) 18,535 (28,010) • Other, net (3,805) (684)
SUBTOTAL ANIMATION 8,600 13,000
Imageworks• Decreased cash receipts due to decreased revenue target (5,000) (5,000) • Decreased overhead disbursements related to lower revenue target 8,000 7,700 • Increased capital expenditures (3,000) (3,000)
SUBTOTAL IMAGEWORKS - (300)
Interactive - removed social game receipts (1,000) (1,000)
Colorworks• EBIT adjustment driven by current market conditions (4,000) (4,000)
Post Production• EBIT adjustment driven by current market conditions (9,000) (9,000)
SUBTOTAL COLORWORKS & POST PRODUCTION (13,000) (13,000)
TOTAL VARIANCE (5,400) (1,300)
CASH FLOW PER 9/13 MRP ($203,000) ($200,000)
Financial Appendix
30
SONY PICTURES ANIMATIONSUMMARY OF EBIT BY TITLE
FISCAL YEAR 2014 Q2 FORECAST & MID-RANGE PLAN(In thousands)
FY14 FY15 FY16 FY17
Title Release Date Q2 FORECAST 9-13 MRP 9-12 MRP VAR TO MRP 9-13 MRP 9-12 MRP VAR TO MRP 9-13 MRP
Current YearSmurfs 2 (FY14) July 31, 2013 5,861$ 21,944$ 28,623$ (6,679)$ 14,053$ 14,335$ (282)$ 4,861$ Cloudy 2 (FY14) September 27, 2013 10,983 38,393 (7,478) 45,871 16,754 24,474 (7,720) 7,883 Prior YearHotel Transylvania (FY13) September 28, 2012 32,184 15,668 12,335 3,333 6,371 2,890 3,481 1,981 Pirates (FY12) March 30, 2012 3,096 3,404 2,261 1,143 1,471 243 1,228 613 2nd Prior YearArthur Christmas (FY12) November 23, 2011 44 2,128 1,329 799 - (297) 297 - Smurfs Hybrid (FY12) July 29, 2011 20,203 6,007 5,720 287 1,470 188 1,282 1,328 Flow Titles 4,723 2,321 1,175 1,146 (264) 272 (536) (1,132) FutureTBD Animated (FY15) February 6, 2015 - (15,414) (14,076) (1,338) 58,962 42,648 16,314 12,529 Smurfs 3 (FY16) July 24, 2015 - (6,028) (5,701) (327) 12,206 6,836 5,370 15,392 Hotel Transylvania 2 September 25, 2015 - (1,200) (3,410) 2,210 8,616 8,798 (182) 33,078 TBD Animated (FY17) #1 September 15, 2016 - - - - (1,200) (8,340) 7,140 22,539 TBD Animated (FY17) #2 February 15, 2017 - - - - - - - (33,363) Non-Title (7,342) (12,123) (10,278) (1,845) (7,239) (7,547) 308 (6,509) OtherDevelopment Reserve (6,900) (8,500) (10,500) 2,000 (8,500) (10,500) 2,000 (8,500) Overhead (600) (600) - (600) (700) - (700) (700) Film Reserve 3,000 - - - - (10,000) 10,000 - Other, net (252) - - - - - - - Earnings Before Interest & Taxes 65,000$ 46,000$ -$ 46,000$ 102,000$ 64,000$ 38,000$ 50,000$
31
IMAGEWORKSMRP REVENUE ANALYSIS BY PROJECT
FY14 Q2 FORECAST & MRP($ In Thousands)
FY14 FY15 FY16 FY17Q2 Forecast MRP MRP MRP
Live Action VFXAll You Need Is Kill $10,908 $0 $0 $0All You Need Is Kill - Growth 4,000 - - - The Amazing Spiderman 2 42,272 - - - The Amazing Spiderman 2 - Growth 2,000 - - - Blended 600 - - - Angry Birds 800 12,600 22,600 - TBD - Fast & Furious 7 10,000 - - - TBD - Goosebumps 2,000 18,000 - - TBD - Alice In Wonderland 2 - 29,000 21,000 - TBD - Mr. Limpet - 33,000 - - TBD - The Amazing Spiderman 3 - 1,000 44,000 - TBD - FY17 - - - 90,000 Other - Test, Spec, Work, and Bids 49 - - - Subtotal 72,629 93,600 87,600 90,000
SPA (Animation)SPA - Cloudy 2 29,771 - - - SPA - Smurfs 2 15,200 - - - SPA - TBD FY15 5,900 44,100 - - SPA - Hotel Transylvania 2 300 29,710 19,991 - SPA - Smurfs 3 - 29,328 7,986 - SPA - TBD FY17 - 1,623 31,900 16,477 SPA - TBD #2 FY17 - - 12,348 37,652 SPA - TBD FY18 - - 1,623 31,900 SPA - TBD #2 FY18 - - - 12,348 SPA - TBD FY19 - - - 1,623 SPA Contingency (4,200) (44,261) (12,348) (40,000) Subtotal 46,971 60,500 61,500 60,000
Revenue Reserve (12,600) (14,100) (9,100) (10,000)
Total Revenue $107,000 $140,000 $140,000 $140,000
Project
32
SMURFS 2 [3D](Co-Financed 25.0%; 10.0% Distrib. Fee, PG Rating, 7/31/13 rel. date) RETURN
FY14 1Q FY14 BUD GREENLIGHT SMURFS 1 GP BREAK GP BREAK
RETENTION RATE 52% 49% 49% 49% 49% 52% 52% 52% 52% 52% 52% 52%
DOMESTIC BOX OFFICE 125,000 65,000 65,000 65,000 65,000 70,000 85,000 125,000 125,000 142,600 95,000 58,000
SPE INTERNATIONAL BOX OFFICE 450,000 300,000 310,000 325,000 335,000 350,000 375,000 400,000 347,000 421,000 344,300 210,200
JAPAN BOX OFFICE 3,000 2,000 2,000 2,000 3,000 3,000 3,000 3,000 N/A N/A 3,000 2,000
WORLDWIDE BOX OFFICE $578,000 $367,000 $377,000 $392,000 $403,000 $423,000 $463,000 $528,000 $472,000 $563,600 $442,300 $270,200
DOMESTIC RENTALS 65,000 31,850 31,850 31,850 31,850 36,400 44,200 65,000 68,750 70,306 49,400 30,160
TOTAL DOMESTIC ADVERTISING (47,260) (46,800) (46,800) (46,800) (46,800) (46,800) (46,800) (46,660) (58,000) (52,284) (47,260) (47,260)
DOMESTIC PRINTS (4,750) (5,100) (5,100) (5,100) (5,100) (5,100) (5,100) (4,750) (6,100) (5,944) (5,100) (5,100)
OTHER COSTS (7,440) (3,890) (3,910) (3,930) (3,950) (4,302) (4,780) (8,220) (6,890) (5,507) (5,880) (3,950)
DOMESTIC THEATRICAL NET 5,550 (23,940) (23,960) (23,980) (24,000) (19,802) (12,480) 5,370 (2,240) 6,571 (8,840) (26,150)
INT'L RENTALS 172,430 111,700 115,400 121,000 124,700 130,300 139,600 153,400 135,060 156,229 131,600 80,350
INT'L ADVERTISING (45,930) (46,200) (46,200) (46,200) (46,200) (46,200) (46,200) (43,480) (44,960) (41,147) (41,060) (35,670)
INT'L PRINTS (12,140) (15,400) (15,400) (15,400) (15,400) (15,400) (15,080) (12,000) (13,810) (17,467) (15,000) (14,210)
OTHER COSTS (12,910) (11,400) (11,400) (11,400) (11,400) (11,400) (11,400) (11,500) (8,490) (11,087) (9,900) (6,080)
INT'L THEATRICAL NET 101,450 38,700 42,400 48,000 51,700 57,300 66,920 86,420 67,800 86,528 65,640 24,390
DOM. HOME ENT. REVENUE 63,710 38,920 38,920 38,920 38,920 40,980 46,850 62,050 75,780 84,417 49,460 35,230
DOMESTIC PAY-PER-VIEW/VOD 5,070 2,750 2,750 2,750 2,750 2,750 2,750 4,310 3,900 4,759 2,750 2,750
DOM. HOME ENT. COSTS (19,880) (11,630) (11,630) (11,630) (11,630) (12,410) (14,660) (17,470) (27,280) (31,800) (15,470) (10,210)
DOMESTIC HOME ENT. NET 48,900 30,040 30,040 30,040 30,040 31,320 34,940 48,890 52,400 57,376 36,740 27,770
INT'L HOME ENT. REVENUE 48,150 44,880 46,100 46,100 46,100 46,100 46,100 48,150 44,280 60,954 46,100 33,930
INT'L PAY-PER-VIEW/VOD 5,000 4,300 4,300 4,300 4,300 4,300 4,300 5,000 3,010 5,050 4,300 4,300
INT'L HOME ENT. COSTS (15,550) (14,300) (14,700) (14,700) (14,700) (14,700) (14,700) (15,550) (16,720) (26,403) (14,700) (10,590)
INT'L HOME ENT. NET 37,600 34,880 35,700 35,700 35,700 35,700 35,700 37,600 30,570 39,601 35,700 27,640
DOMESTIC PAY TELEVISION 15,440 11,120 11,120 11,120 11,120 12,020 13,410 15,440 15,440 18,825 14,340 10,720
DOMESTIC FREE TELEVISION 6,380 4,740 4,740 4,740 4,740 5,000 5,630 6,410 6,380 6,660 5,780 4,270
INTERNATIONAL TELEVISION 75,050 51,520 51,520 53,420 53,940 55,720 58,090 72,530 58,090 70,000 58,550 44,090
TV COSTS (960) (620) (620) (620) (620) (650) (730) (960) (960) (642) (790) (580)
TOTAL TELEVISION NET 95,910 66,760 66,760 68,660 69,180 72,090 76,400 93,420 78,950 94,843 77,880 58,500
AIRLINE / NON-THEATRICAL 2,790 2,055 2,055 2,055 2,055 2,065 2,095 2,790 2,380 2,726 2,120 1,300
MERCH, MUSIC & OTHER REVENUE 21,420 22,079 22,079 22,079 22,079 22,079 22,079 18,000 11,000 15,807 21,420 21,420
JAPAN SUBDISTRIBUTION 15,930 2,560 2,610 2,670 2,690 2,730 2,810 10,230 2,410 60 2,910 2,160
NON THEATRICAL COSTS 0 (7) (7) (7) (7) (7) (7) 0 0 (624) 0 0
CONSUMER PRODUCTS COSTS 0 (660) (660) (660) (660) (660) (660) (1,000) 0 (1,119) 0 0
PRODUCTION COST (114,700) (114,700) (114,700) (114,700) (114,700) (114,700) (114,700) (118,200) (118,200) (123,860) (114,700) (114,700)
CO-FINANCING PROCEEDS 28,680 28,737 28,737 28,737 28,737 28,737 28,737 29,550 29,550 30,970 27,940 27,940
CAPITALIZED OVERHEAD (11,470) (11,470) (11,470) (11,470) (11,470) (11,470) (11,470) (11,670) (11,670) (9,790) (11,470) (11,470)
RESIDUALS (13,710) (9,310) (9,340) (9,520) (9,570) (9,900) (10,470) (17,590) (15,080) (12,670) (10,680) (8,140)
CREATIVE SHARES (45,470) (11,750) (13,150) (15,540) (16,920) (20,590) (28,070) (37,180) (31,850) (44,300) (28,310) (6,860)
CO-FINANCIER OVERAGES (55,590) (29,700) (30,360) (31,420) (32,010) (34,140) (37,690) (48,100) (38,420) (48,800) (39,000) (23,800)
TOTAL REVENUES $496,370 $328,474 $333,444 $341,004 $345,244 $360,444 $387,914 $463,310 $426,480 $495,793 $388,730 $270,680
RELEASING COSTS (166,820) (156,007) (156,427) (156,447) (156,467) (157,629) (160,117) (161,590) (183,210) (194,024) (155,160) (133,650)
PROD, O/H, PART, RESIDUALS (212,260) (148,193) (150,283) (153,913) (155,933) (162,063) (173,663) (203,190) (185,670) (208,450) (176,220) (137,030)
GROSS PROFIT (LOSS) $117,290 $24,274 $26,734 $30,644 $32,844 $40,752 $54,134 $98,530 $57,600 $93,319 $57,350 $0
GROSS PROFIT MARGIN 23.6% 7.4% 8.0% 9.0% 9.5% 11.3% 14.0% 21.3% 13.5% 18.8% 14.8% 0.0%
RETURN THRESHOLD (57,350) (57,350) (57,350) (57,350) (57,350) (57,350) (57,350) (58,350) (58,350) (61,930) (57,350) (57,350)
POST-RETURN GP (LOSS) $59,940 ($33,076) ($30,616) ($26,706) ($24,506) ($16,598) ($3,216) $40,180 ($750) $31,389 $0 ($57,350)
POST-RETURN GP MARGIN 12.1% -10.1% -9.2% -7.8% -7.1% -4.6% -0.8% 8.7% -0.2% 6.3% 0.0% -21.2%
FY 2014 GROSS PROFIT (LOSS) 48,600 (8,270) (6,000) (2,920) (950) 5,810 17,730 35,860 12,650 (29,090)
33
CLOUDY WITH A CHANCE OF MEATBALLS 2 CURRENT(WW Rights, PG Rating, 9/27/13 rel. date) RETURN
FY14 1Q TARGET FY14 BUDGET GREENLIGHT CLOUDY 1 GP BREAK GP BREAK
DOMESTIC BOX OFFICE $125,000 $60,000 $70,000 $90,000 $125,000 $130,000 $140,000 $150,000 $150,000 $100,000 $100,000 $116,600 $98,500 $74,700
INTERNATIONAL BOX OFFICE 200,000 96,000 112,000 144,000 200,000 200,000 200,000 200,000 300,000 150,000 150,000 117,000 157,600 119,500
WORLDWIDE BOX OFFICE $325,000 $156,000 $182,000 $234,000 $325,000 $330,000 $340,000 $350,000 $450,000 $250,000 $250,000 $233,600 $256,100 $194,200
DOMESTIC RENTALS 65,000 31,200 36,400 46,800 65,000 67,600 72,800 78,000 78,000 52,000 52,000 62,012 51,220 38,840 -TOTAL DOMESTIC ADVERTISING (52,660) (45,780) (45,780) (46,780) (48,530) (49,680) (50,580) (50,580) (50,580) (48,530) (53,000) (43,302) (46,780) (45,780)
DOMESTIC PRINTS (4,100) (4,100) (4,100) (4,100) (4,100) (4,100) (4,100) (4,100) (4,100) (4,100) (4,500) (4,791) (4,100) (4,100) -OTHER COSTS (7,060) (3,440) (3,880) (4,780) (6,350) (6,540) (6,940) (7,320) (7,400) (5,780) (5,170) (7,018) (5,160) (4,090) -
DOMESTIC THEATRICAL NET 1,180 (22,120) (17,360) (8,860) 6,020 7,280 11,180 16,000 15,920 (6,410) (10,670) 6,901 (4,820) (15,130)
INT'L RENTALS 80,000 38,400 44,800 57,600 80,000 80,000 80,000 80,000 120,000 60,000 60,000 45,917 63,040 47,800 -INT'L ADVERTISING (38,120) (32,570) (33,940) (36,930) (41,300) (41,300) (41,300) (41,300) (48,340) (28,030) (32,300) (26,038) (38,180) (34,670) -INT'L PRINTS (14,040) (11,120) (11,430) (12,070) (13,000) (13,000) (13,000) (13,000) (13,670) (13,000) (13,500) (12,803) (12,370) (11,580) -OTHER COSTS (6,620) (3,230) (3,750) (4,780) (6,600) (6,600) (6,600) (6,600) (9,830) (5,000) (5,000) (4,517) (5,220) (3,990) -
INT'L THEATRICAL NET 21,220 (8,520) (4,320) 3,820 19,100 19,100 19,100 19,100 48,160 13,970 9,200 2,559 7,270 (2,440)
DOM. HOME ENT. REVENUE 65,080 35,560 40,010 48,980 65,610 67,590 72,030 76,470 76,470 53,320 49,290 71,548 52,090 41,680 -DOMESTIC PAY-PER-VIEW/VOD 5,490 4,520 4,920 5,580 6,420 6,540 6,730 6,910 6,910 5,000 5,000 4,308 5,790 5,080 -DOM. HOME ENT. COSTS (20,890) (10,470) (12,070) (15,360) (21,170) (21,880) (23,490) (25,080) (25,080) (17,060) (13,030) (26,600) (16,540) (12,710) -
DOMESTIC HOME ENT. NET 49,680 29,610 32,860 39,200 50,860 52,250 55,270 58,300 58,300 41,260 41,260 49,256 41,340 34,050
INT'L HOME ENT. REVENUE 33,180 16,710 18,530 22,870 29,710 29,710 29,710 29,710 41,960 27,650 27,640 35,066 24,340 19,650 -INT'L PAY-PER-VIEW/VOD 2,870 2,010 2,160 2,500 3,040 3,040 3,040 3,040 4,010 2,410 2,410 144 2,610 2,250 -INT'L HOME ENT. COSTS (12,430) (5,350) (5,930) (7,320) (9,510) (9,510) (9,510) (9,510) (13,530) (10,540) (10,530) (15,200) (7,810) (6,300) -
INT'L HOME ENT. NET 23,620 13,370 14,760 18,050 23,240 23,240 23,240 23,240 32,440 19,520 19,520 20,010 19,140 15,600
DOMESTIC PAY TELEVISION 11,470 10,970 12,020 13,880 15,440 15,440 15,440 15,440 15,440 11,000 11,000 17,588 14,670 12,460 -DOMESTIC FREE TELEVISION 7,770 5,860 6,480 7,580 7,860 7,860 7,860 7,860 7,860 7,770 5,780 8,595 7,860 6,760 -INTERNATIONAL TELEVISION 52,800 32,550 35,950 42,890 53,080 53,530 53,560 56,440 60,190 49,330 42,110 45,000 46,860 37,550 -TV COSTS (960) (590) (650) (760) (960) (980) (1,040) (1,100) (1,100) (820) (820) (993) (810) (670) -
TOTAL TELEVISION NET 71,080 48,790 53,800 63,590 75,420 75,850 75,820 78,640 82,390 67,280 58,070 70,190 68,580 56,100
AIRLINE / NON-THEATRICAL 2,790 1,170 1,360 1,750 2,430 2,520 2,720 2,910 2,910 2,230 1,900 3,234 1,920 1,450 -MERCH, MUSIC & OTHER REVENUE 2,050 1,690 1,690 1,690 1,690 1,690 1,690 1,690 1,690 2,050 1,250 2,093 1,690 1,690 -NON THEATRICAL COSTS 0 0 0 0 0 0 0 0 0 0 0 (763) 0 0
CONSUMER PRODUCTS COSTS (500) (190) (190) (190) (190) (190) (190) (190) (190) (500) 0 (583) (190) (190)
PRODUCTION COST (82,000) (79,890) (79,890) (79,890) (79,890) (79,890) (79,890) (79,890) (79,890) (82,000) (82,000) (117,700) (79,890) (79,890) -CO-FINANCING PROCEEDS 0 0 0 0 0 0 0 0 0 0 0 0 0
CAPITALIZED OVERHEAD (8,500) (8,280) (8,280) (8,280) (8,280) (8,280) (8,280) (8,280) (8,280) (8,500) (8,500) (30,300) (8,280) (8,280) -RESIDUALS (3,950) (2,570) (2,840) (3,370) (4,110) (4,150) (4,210) (4,370) (4,670) (3,580) (3,210) (3,900) (3,620) (2,960) -CREATIVE SHARES (1,010) 0 0 0 (770) (770) (770) (2,620) (2,620) 0 0 (910) 0 0 -CO-FINANCIER OVERAGES 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL REVENUES $328,500 $180,640 $204,320 $252,120 $330,280 $335,520 $345,580 $358,470 $415,440 $272,760 $258,380 $295,505 $272,090 $215,210
RELEASING COSTS (157,380) (116,840) (121,720) (133,070) (151,710) (153,780) (156,750) (158,780) (173,820) (133,360) (137,850) (142,608) (137,160) (124,080)
PROD, O/H, PART, RESIDUALS (95,460) (90,740) (91,010) (91,540) (93,050) (93,090) (93,150) (95,160) (95,460) (94,080) (93,710) (152,810) (91,790) (91,130)
GROSS PROFIT (LOSS) $75,660 ($26,940) ($8,410) $27,510 $85,520 $88,650 $95,680 $104,530 $146,160 $45,320 $26,820 $87 $43,140 $0
GROSS PROFIT MARGIN 23.0% NA NA 10.9% 25.9% 26.4% 27.7% 29.2% 35.2% 16.6% 10.4% 0.0% 15.9% 0.0%
ROI THRESHOLD (41,000) (43,140) (43,140) (43,140) (43,140) (43,140) (43,140) (43,140) (43,140) (41,000) (41,000) (58,850) (43,140) (43,140)
POST THRESHOLD GP (LOSS) $34,660 ($70,080) ($51,550) ($15,630) $42,380 $45,510 $52,540 $61,390 $103,020 $4,320 ($14,180) ($58,763) $0 ($43,140)
POST THRESHOLD GP MARGIN 10.6% -38.8% -25.2% -6.2% 12.8% 13.6% 15.2% 17.1% 24.8% 1.6% 1.6% -19.9% 0.0% -20.0%
FY 2014 GROSS PROFIT (LOSS) 6,910 (56,610) (46,030) (25,630) 10,980 13,100 18,710 24,460 52,710 (14,000)
34
TBD ANIMATION #1 [3D](WW Rights, PG Rating, Feb 2015 rel. date) RETURN
GP BREAK GP BREAK
DOMESTIC BOX OFFICE $60,000 $70,000 $80,000 $90,000 $125,000 $135,000 $145,000 $155,000 $165,000 $200,000 $103,300 $75,600
INTERNATIONAL BOX OFFICE 72,000 84,000 96,000 108,000 150,000 162,000 174,000 186,000 198,000 240,000 124,000 90,700
WORLDWIDE BOX OFFICE $132,000 $154,000 $176,000 $198,000 $275,000 $297,000 $319,000 $341,000 $363,000 $440,000 $227,300 $166,300
INTERNATIONAL SCREEN COUNT 7,020 7,080 4,100 7,200 7,380 7,420 7,460 7,520 7,550 7,680 7,260 7,120
DOMESTIC RENTALS 31,200 36,400 41,600 46,800 65,000 70,200 75,400 80,600 85,800 104,000 53,720 39,310
DOMESTIC ADVERTISING
TOTAL DOMESTIC ADVERTISING (43,000) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500)
DOMESTIC PRINTS (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900)
OTHER COSTS (2,770) (3,190) (3,610) (4,030) (5,500) (5,920) (6,340) (6,760) (7,180) (8,340) (4,590) (2,810)
DOMESTIC THEATRICAL NET (18,470) (14,190) (9,410) (4,630) 12,100 16,880 21,660 26,440 31,220 48,260 1,730 (10,900)
INT'L RENTALS 28,940 33,770 38,590 43,420 60,300 65,120 69,950 74,770 79,600 96,480 49,850 36,460
INT'L ADVERTISING (26,730) (27,260) (27,790) (28,330) (30,180) (30,710) (31,240) (31,770) (32,300) (32,730) (29,030) (27,560)
INT'L PRINTS (11,470) (11,530) (8,540) (11,650) (11,830) (11,870) (11,910) (11,970) (12,000) (12,130) (11,710) (11,570)
OTHER COSTS (2,190) (2,540) (2,880) (3,230) (4,440) (4,790) (5,140) (5,480) (5,830) (7,040) (3,690) (2,730)
INT'L THEATRICAL NET (11,450) (7,560) (620) 210 13,850 17,750 21,660 25,550 29,470 44,580 5,420 (5,400)
DOM. HOME ENT. REVENUE 35,690 40,290 44,830 49,350 65,660 70,060 74,450 81,100 86,150 101,100 55,800 42,830
DOMESTIC PAY-PER-VIEW/VOD 4,640 5,050 5,410 5,720 6,620 6,820 7,010 7,210 7,370 7,880 6,090 5,260
DOM. HOME ENT. COSTS (11,020) (12,680) (14,330) (15,980) (21,860) (23,490) (25,120) (27,170) (28,850) (34,450) (18,220) (13,600)
DOMESTIC HOME ENT. NET 29,310 32,660 35,910 39,090 50,420 53,390 56,340 61,140 64,670 74,530 43,670 34,490
INT'L HOME ENT. REVENUE 13,260 14,900 16,510 18,530 24,140 26,130 27,720 29,310 30,870 36,680 20,540 15,710
INT'L PAY-PER-VIEW/VOD 2,750 2,890 3,020 3,180 3,610 3,760 3,870 3,990 4,100 4,480 3,330 2,950
INT'L HOME ENT. COSTS (3,850) (4,390) (4,930) (5,610) (7,500) (8,180) (8,720) (9,250) (9,790) (11,800) (6,290) (4,660)
INT'L HOME ENT. NET 12,160 13,400 14,600 16,100 20,250 21,710 22,870 24,050 25,180 29,360 17,580 14,000
DOMESTIC PAY TELEVISION 17,850 17,850 17,850 17,850 17,850 17,850 17,850 17,850 17,850 11,470 11,230 9,320
DOMESTIC FREE TELEVISION 4,500 5,300 6,110 6,420 7,170 7,610 7,790 7,880 7,940 8,150 6,540 5,800
INTERNATIONAL TELEVISION 29,590 30,530 34,030 36,820 46,380 47,820 47,820 54,670 54,670 66,460 43,130 34,870
TV COSTS (540) (600) (650) (710) (910) (960) (1,020) (1,080) (1,130) (1,330) (780) (630)
TOTAL TELEVISION NET 51,400 53,080 57,340 60,380 70,490 72,320 72,440 79,320 79,330 84,750 60,120 49,360
AIRLINE / NON-THEATRICAL 1,600 1,980 2,220 2,320 2,630 4,070 4,380 4,680 4,990 5,300 3,120 5,270
MERCH, MUSIC & OTHER REVENUE 0 0 0 0 0 0 0 0 0 0 0 0
NON THEATRICAL COSTS 0 0 0 0 0 0 0 0 0 0 0 0
CONSUMER PRODUCTS COSTS 0 0 0 0 0 0 0 0 0 0 0 0
PRODUCTION COST (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000)
CO-FINANCING PROCEEDS 0 0 0 0 0 0 0 0 0 0 0 0
CAPITALIZED OVERHEAD (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000)
RESIDUALS (2,660) (2,810) (3,040) (3,240) (3,900) (4,050) (4,130) (4,480) (4,560) (5,020) (440) 1,180
CREATIVE SHARES 0 0 0 0 (250) (250) (250) (670) (670) (1,900) 0 0
CO-FINANCIER OVERAGES 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL REVENUES $170,020 $188,960 $210,170 $230,410 $299,360 $319,440 $336,240 $362,060 $379,340 $442,000 $253,350 $197,780RELEASING COSTS (105,470) (109,590) (110,130) (116,940) (129,620) (133,320) (136,890) (140,880) (144,480) (155,220) (121,710) (110,960)PROD, O/H, PART, RESIDUALS (90,660) (90,810) (91,040) (91,240) (92,150) (92,300) (92,380) (93,150) (93,230) (94,920) (88,440) (86,820) GROSS PROFIT (LOSS) ($26,110) ($11,440) $9,000 $22,230 $77,590 $93,820 $106,970 $128,030 $141,630 $191,860 $43,200 $0
GROSS PROFIT MARGIN NA NA 4.3% 9.6% 25.9% 29.4% 31.8% 35.4% 37.3% 43.4% 17.1% 0.0%RETURN THRESHOLD (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) POST THRESHOLD GP (LOSS) ($69,310) ($54,640) ($34,200) ($20,970) $34,390 $50,620 $63,770 $84,830 $98,430 $148,660 $0 ($43,200)
POST THRESHOLD GP MARGIN -40.8% -28.9% -16.3% -9.1% 11.5% 15.8% 19.0% 23.4% 25.9% 33.6% 0.0% -21.8%
35
SMURFS 3 [3D](Co-Financed 25.0%; 10.0% Distrib. Fee, PG Rating, 2015 rel. date) RETURN
CURRENT GP BREAK GP BREAK
DOMESTIC BOX OFFICE $50,000 $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 $110,000 $120,000 $130,000 $140,000 $74,900 $50,000
SPE INTERNATIONAL BOX OFFICE 183,000 275,000 293,000 312,000 330,000 348,000 367,000 403,000 440,000 477,000 513,000 275,000 183,000
JAPAN BOX OFFICE 1,000 2,000 2,000 2,000 2,000 3,000 3,000 3,000 3,000 4,000 4,000 2,000 1,000
WORLDWIDE BOX OFFICE $234,000 $352,000 $375,000 $399,000 $422,000 $446,000 $470,000 $516,000 $563,000 $611,000 $657,000 $351,900 $234,000
INTERNATIONAL SCREEN COUNT 10,810 11,820 11,970 12,130 12,240 12,360 12,480 12,700 12,810 12,860 12,860 11,820 10,810
DOMESTIC RENTALS 26,000 39,000 41,600 44,200 46,800 49,400 52,000 57,200 62,400 67,600 72,800 38,950 26,000
TOTAL DOMESTIC ADVERTISING (46,730) (46,730) (46,730) (46,890) (47,260) (47,870) (47,940) (48,090) (48,240) (48,390) (48,540) (46,730) (46,730)
DOMESTIC PRINTS (4,580) (4,580) (4,580) (4,580) (4,580) (4,580) (4,580) (4,580) (4,580) (4,580) (4,580) (4,580) (4,580)
OTHER COSTS (2,500) (3,450) (3,640) (3,840) (4,030) (4,220) (4,400) (4,780) (5,160) (5,550) (5,920) (3,450) (2,500)
DOMESTIC THEATRICAL NET (27,810) (15,760) (13,350) (11,110) (9,070) (7,270) (4,920) (250) 4,420 9,080 13,760 (15,810) (27,810)
INT'L RENTALS 76,730 115,300 122,830 130,820 138,350 145,880 153,880 168,940 184,460 199,980 215,080 115,300 76,730
INT'L ADVERTISING (53,560) (60,960) (62,060) (63,170) (63,940) (65,490) (67,040) (68,670) (70,160) (71,460) (71,460) (60,960) (53,560)
INT'L PRINTS (14,640) (15,260) (15,330) (15,420) (15,480) (15,540) (15,600) (15,710) (15,760) (15,790) (15,790) (15,260) (14,640)
OTHER COSTS (5,310) (7,920) (8,420) (8,970) (9,480) (9,990) (10,530) (11,560) (12,610) (13,660) (14,690) (7,920) (5,310)
INT'L THEATRICAL NET 3,220 31,160 37,020 43,260 49,450 54,860 60,710 73,000 85,930 99,070 113,140 31,160 3,220
DOM. HOME ENT. REVENUE 31,430 42,170 44,650 46,650 49,120 51,090 54,030 58,420 62,810 67,160 71,500 42,140 31,430
DOMESTIC PAY-PER-VIEW/VOD 2,750 3,840 4,200 4,490 4,840 5,110 5,440 6,030 6,270 6,440 6,610 3,840 2,750
DOM. HOME ENT. COSTS (9,740) (13,570) (14,490) (15,230) (16,160) (16,890) (17,850) (19,500) (21,160) (22,800) (24,450) (13,570) (9,740)
DOMESTIC HOME ENT. NET 24,440 32,440 34,360 35,910 37,800 39,310 41,620 44,950 47,920 50,800 53,660 32,410 24,440
INT'L HOME ENT. REVENUE 28,180 45,510 45,510 45,510 47,670 49,810 52,300 57,270 61,880 66,800 71,260 40,530 28,180
INT'L PAY-PER-VIEW/VOD 3,640 4,200 4,280 4,380 4,470 4,560 4,650 4,780 4,890 4,990 5,080 4,200 3,640
INT'L HOME ENT. COSTS (8,830) (14,380) (14,380) (14,380) (15,520) (16,260) (17,130) (18,860) (20,470) (22,190) (23,780) (13,050) (8,830)
INT'L HOME ENT. NET 22,990 35,330 35,410 35,510 36,620 38,110 39,820 43,190 46,300 49,600 52,560 31,680 22,990
DOMESTIC PAY TELEVISION 7,230 9,270 9,620 9,970 10,310 10,660 11,000 11,470 11,470 11,470 11,470 9,270 7,230
DOMESTIC FREE TELEVISION 3,750 5,050 5,310 5,500 5,660 5,780 5,940 6,220 6,340 6,430 6,530 5,050 3,750
INTERNATIONAL TELEVISION 41,390 53,940 59,160 60,020 64,500 64,500 65,990 67,440 72,630 75,130 76,290 52,190 41,390
TV COSTS (540) (680) (700) (730) (760) (790) (820) (870) (930) (980) (1,040) (680) (540)
TOTAL TELEVISION NET 51,830 67,580 73,390 74,760 79,710 80,150 82,110 84,260 89,510 92,050 93,250 65,830 51,830
AIRLINE / NON-THEATRICAL 1,120 1,670 1,780 1,900 2,010 2,120 2,230 2,450 2,680 2,900 3,120 1,670 1,120
MERCH, MUSIC & OTHER REVENUE 21,420 21,420 21,420 21,420 21,420 21,420 21,420 21,420 21,420 21,420 21,420 21,420 21,420
JAPAN SUBDISTRIBUTION 1,800 2,680 2,810 2,890 3,030 3,130 3,250 3,500 3,790 4,020 4,270 2,530 1,800
PRODUCTION COST (90,000) (90,000) (90,000) (90,000) (90,000) (90,000) (90,000) (90,000) (90,000) (90,000) (90,000) (90,000) (90,000)
CO-FINANCING PROCEEDS 27,940 27,940 27,940 27,940 27,940 27,940 27,940 27,940 27,940 27,940 27,940 27,940 27,940
CAPITALIZED OVERHEAD (9,000) (9,000) (9,000) (9,000) (9,000) (9,000) (9,000) (9,000) (9,000) (9,000) (9,000) (9,000) (9,000)
RESIDUALS (7,170) (9,600) (10,260) (10,480) (11,110) (11,300) (11,680) (12,210) (12,990) (13,510) (13,900) (9,300) (7,170)
CREATIVE SHARES (5,210) (18,610) (24,310) (27,570) (32,590) (35,100) (38,320) (42,700) (45,110) (46,540) (48,160) (13,200) (5,210)
CO-FINANCIER OVERAGES (15,570) (28,540) (30,560) (32,250) (34,440) (36,100) (38,340) (42,860) (48,540) (53,970) (59,250) (28,730) (15,570)
TOTAL REVENUES $245,440 $344,050 $363,170 $377,750 $398,180 $413,460 $432,130 $465,140 $501,040 $534,340 $565,430 $337,090 $245,440
RELEASING COSTS (146,430) (167,530) (170,330) (173,210) (177,210) (181,630) (185,890) (192,620) (199,070) (205,400) (210,250) (166,200) (146,430)
PROD, O/H, PART, RESIDUALS (99,010) (127,810) (136,190) (141,360) (149,200) (153,560) (159,400) (168,830) (177,700) (185,080) (192,370) (122,290) (99,010)
GROSS PROFIT (LOSS) $0 $48,710 $56,650 $63,180 $71,770 $78,270 $86,840 $103,690 $124,270 $143,860 $162,810 $48,600 $0
GROSS PROFIT MARGIN 0.0% 14.2% 15.6% 16.7% 18.0% 18.9% 20.1% 22.3% 24.8% 26.9% 28.8% 14.4% 0.0%
RETURN THRESHOLD (48,600) (48,600) (48,600) (48,600) (48,600) (48,600) (48,600) (48,600) (48,600) (48,600) (48,600) (48,600) (48,600)
POST-RETURN GP (LOSS) ($48,600) $110 $8,050 $14,580 $23,170 $29,670 $38,240 $55,090 $75,670 $95,260 $114,210 $0 ($48,600)
POST-RETURN GP MARGIN -19.8% 0.0% 2.2% 3.9% 5.8% 7.2% 8.8% 11.8% 15.1% 17.8% 20.2% 0.0% -19.8%
36
HOTEL T 2 (3D)(WW Rights, PG Rating, Sept 2015 rel. date) RETURN
HOTEL T 1 GP BREAK GP BREAK
DOMESTIC BOX OFFICE $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $125,000 $135,000 $145,000 $142,560 $105,500 $77,400
INTERNATIONAL BOX OFFICE 96,000 112,000 128,000 144,000 160,000 176,000 200,000 216,000 232,000 198,000 169,000 124,000
WORLDWIDE BOX OFFICE $156,000 $182,000 $208,000 $234,000 $260,000 $286,000 $325,000 $351,000 $377,000 $340,560 $274,500 $201,400
DOMESTIC RENTALS 31,200 36,400 41,600 46,800 52,000 57,200 65,000 70,200 75,400 74,030 54,860 40,250
DOMESTIC ADVERTISING
BASIC (10,500) (10,500) (10,500) (10,500) (10,500) (10,500) (10,500) (10,500) (10,500) (11,909) (10,500) (10,500)
PRE-OPEN MEDIA (32,450) (32,450) (32,450) (32,450) (32,450) (32,450) (32,450) (32,450) (32,450) (32,786) (32,450) (32,450)
SUPPORT MEDIA (2,000) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (2,500) (7,164) (2,500) (2,500)
TOTAL DOMESTIC ADVERTISING (44,950) (45,450) (45,450) (45,450) (45,450) (45,450) (45,450) (45,450) (45,450) (51,859) (45,450) (45,450)
DOMESTIC PRINTS (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (4,045) (3,900) (3,900)
OTHER COSTS (2,860) (3,290) (3,730) (4,160) (4,600) (5,030) (5,680) (6,110) (6,530) (4,278) (4,840) (3,710)
DOMESTIC THEATRICAL NET (20,510) (16,240) (11,480) (6,710) (1,950) 2,820 9,970 14,740 19,520 13,848 670 (12,810)
INT'L RENTALS 38,590 45,020 51,460 57,890 64,320 70,750 80,400 86,830 93,260 79,480 67,940 49,850
INT'L ADVERTISING (36,730) (37,190) (37,840) (38,480) (39,120) (39,770) (40,730) (41,370) (42,020) (30,968) (39,480) (37,680)
INT'L PRINTS (14,140) (14,210) (8,120) (14,330) (14,400) (14,450) (14,540) (14,580) (14,620) (12,000) (14,420) (14,250)
OTHER COSTS (2,630) (3,050) (3,470) (3,890) (4,310) (4,730) (5,360) (5,780) (6,210) (5,336) (4,550) (3,360)
INT'L THEATRICAL NET (14,910) (9,430) 2,030 1,190 6,490 11,800 19,770 25,100 30,410 31,176 9,490 (5,440)
DOM. HOME ENT. REVENUE 35,690 40,290 44,830 49,350 54,310 59,270 65,660 70,060 74,450 81,500 56,790 43,830
DOMESTIC PAY-PER-VIEW/VOD 4,640 5,050 5,410 5,720 6,010 6,290 6,620 6,820 7,010 9,175 6,150 5,330
DOM. HOME ENT. COSTS (11,020) (12,680) (14,330) (15,980) (17,670) (19,490) (21,860) (23,490) (25,120) (26,930) (18,580) (13,970)
DOMESTIC HOME ENT. NET 29,310 32,660 35,910 39,090 42,650 46,070 50,420 53,390 56,340 63,745 44,360 35,190
INT'L HOME ENT. REVENUE 16,510 18,930 21,340 23,340 25,730 28,110 31,260 33,590 35,530 34,300 26,930 20,540
INT'L PAY-PER-VIEW/VOD 3,020 3,210 3,400 3,550 3,730 3,900 4,130 4,300 4,430 2,500 3,810 3,330
INT'L HOME ENT. COSTS (4,930) (5,750) (6,560) (7,240) (8,050) (8,850) (9,920) (10,730) (11,390) (11,800) (8,450) (6,290)
INT'L HOME ENT. NET 14,600 16,390 18,180 19,650 21,410 23,160 25,470 27,160 28,570 25,000 22,290 17,580
DOMESTIC PAY TELEVISION 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 15,443 19,110 19,110
DOMESTIC FREE TELEVISION 4,500 5,300 6,110 6,420 6,480 6,540 7,170 7,610 7,790 6,600 6,510 6,010
INTERNATIONAL TELEVISION 26,530 28,030 31,590 32,530 39,030 40,530 42,820 42,820 44,590 50,800 41,120 34,000
TV COSTS (540) (600) (650) (710) (770) (820) (910) (960) (1,020) (500) (800) (640)
TOTAL TELEVISION NET 49,600 51,840 56,160 57,350 63,850 65,360 68,190 68,580 70,470 72,343 65,940 58,480
AIRLINE / NON-THEATRICAL 1,600 1,980 2,420 2,730 2,900 3,000 3,130 4,070 4,380 2,307 3,190 3,630
MERCH, MUSIC & OTHER REVENUE 0 0 0 0 0 0 0 0 0 500 0 0
PRODUCTION COST (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (104,000) (85,000) (85,000)
CAPITALIZED OVERHEAD (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (12,580) (8,500) (8,500)
RESIDUALS (2,640) (2,820) (3,070) (3,200) (3,530) (3,680) (3,910) (4,010) (4,160) (4,280) (4,150) (3,130)
CREATIVE SHARES 0 0 0 0 (1,000) (2,000) (3,000) (3,000) (3,000) (3,118) (1,000) 0
TOTAL REVENUES $181,390 $203,320 $227,270 $247,440 $273,620 $294,700 $325,300 $345,410 $365,950 $356,635 $286,410 $225,880
RELEASING COSTS (121,700) (126,120) (124,050) (134,140) (138,270) (142,490) (148,350) (152,370) (156,260) (148,721) (140,470) (129,250)
PROD, O/H, PART, RESIDUALS (96,140) (96,320) (96,570) (96,700) (98,030) (99,180) (100,410) (100,510) (100,660) (123,978) (98,650) (96,630)
GROSS PROFIT (LOSS) ($36,450) ($19,120) $6,650 $16,600 $37,320 $53,030 $76,540 $92,530 $109,030 $83,936 $47,290 $0
GROSS PROFIT MARGIN NA NA 2.9% 6.7% 13.6% 18.0% 23.5% 26.8% 29.8% 23.5% 16.5% 0.0%
RETURN THRESHOLD (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (52,000) (45,900) (45,900)
POST THRESHOLD GP (LOSS) ($82,350) ($65,020) ($39,250) ($29,300) ($8,580) $7,130 $30,640 $46,630 $63,130 $31,936 $1,390 ($45,900)
POST THRESHOLD GP MARGIN -45.4% -32.0% -17.3% -11.8% -3.1% 2.4% 9.4% 13.5% 17.3% 9.0% 0.5% -20.3%
37
HOTEL T 2 (Higher ITV)(WW Rights, PG Rating, Sept 2015 rel. date) RETURN
HOTEL T 1 GP BREAK GP BREAK
DOMESTIC BOX OFFICE $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $125,000 $135,000 $145,000 $142,560 $112,000 $83,500
INTERNATIONAL BOX OFFICE 72,000 84,000 96,000 108,000 120,000 132,000 200,000 162,000 174,000 198,000 134,000 100,000
WORLDWIDE BOX OFFICE $132,000 $154,000 $176,000 $198,000 $220,000 $242,000 $325,000 $297,000 $319,000 $340,560 $246,000 $183,500
DOMESTIC RENTALS 31,200 36,400 41,600 46,800 52,000 57,200 65,000 70,200 75,400 74,030 58,240 43,420
TOTAL DOMESTIC ADVERTISING (44,950) (45,450) (45,450) (45,450) (45,450) (45,450) (45,450) (45,450) (45,450) (51,859) (45,450) (45,450)
DOMESTIC PRINTS (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (4,045) (3,900) (3,900)
OTHER COSTS (2,770) (3,190) (3,610) (4,030) (4,450) (4,870) (5,680) (5,920) (6,340) (4,278) (4,950) (3,750)
DOMESTIC THEATRICAL NET (20,420) (16,140) (11,360) (6,580) (1,800) 2,980 9,970 14,930 19,710 13,848 3,940 (9,680)
INT'L RENTALS 28,940 33,770 38,590 43,420 48,240 53,060 80,400 65,120 69,950 79,480 53,870 40,200
INT'L ADVERTISING (36,730) (36,730) (36,730) (37,030) (37,510) (38,000) (40,730) (39,200) (39,690) (30,968) (38,080) (36,730)
INT'L PRINTS (14,030) (14,080) (8,120) (14,190) (14,240) (14,290) (14,540) (14,410) (14,440) (12,000) (14,290) (14,160)
OTHER COSTS (1,990) (2,310) (2,630) (2,940) (3,260) (3,570) (5,360) (4,360) (4,680) (5,336) (3,630) (2,730)
INT'L THEATRICAL NET (23,810) (19,350) (8,890) (10,740) (6,770) (2,800) 19,770 7,150 11,140 31,176 (2,130) (13,420)
DOM. HOME ENT. REVENUE 35,690 40,290 44,830 49,350 54,310 59,270 65,660 70,060 74,450 81,500 59,810 46,350
DOMESTIC PAY-PER-VIEW/VOD 4,640 5,050 5,410 5,720 6,010 6,290 6,620 6,820 7,010 9,175 6,310 5,520
DOM. HOME ENT. COSTS (11,020) (12,680) (14,330) (15,980) (17,670) (19,490) (21,860) (23,490) (25,120) (26,930) (19,670) (14,890)
DOMESTIC HOME ENT. NET 29,310 32,660 35,910 39,090 42,650 46,070 50,420 53,390 56,340 63,745 46,450 36,980
INT'L HOME ENT. REVENUE 13,260 14,900 16,510 18,530 20,130 21,740 31,260 26,130 27,720 34,300 22,140 17,320
INT'L PAY-PER-VIEW/VOD 2,750 2,890 3,020 3,180 3,300 3,430 4,130 3,760 3,870 2,500 3,460 3,080
INT'L HOME ENT. COSTS (3,850) (4,390) (4,930) (5,610) (6,150) (6,690) (9,920) (8,180) (8,720) (11,800) (6,830) (5,210)
INT'L HOME ENT. NET 12,160 13,400 14,600 16,100 17,280 18,480 25,470 21,710 22,870 25,000 18,770 15,190
DOMESTIC PAY TELEVISION 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 15,443 19,110 19,110
DOMESTIC FREE TELEVISION 4,500 5,300 6,110 6,420 6,480 6,540 7,170 7,610 7,790 6,600 6,600 6,380
INTERNATIONAL TELEVISION 30,030 31,530 35,820 38,090 44,880 45,590 52,460 50,170 50,170 50,800 49,040 40,450
TV COSTS (540) (600) (650) (710) (770) (820) (910) (960) (1,020) (500) (830) (670)
TOTAL TELEVISION NET 53,100 55,340 60,390 62,910 69,700 70,420 77,830 75,930 76,050 72,343 73,920 65,270
AIRLINE / NON-THEATRICAL 1,600 1,980 2,420 2,730 2,900 3,000 3,130 4,070 4,380 2,307 3,370 2,520
MERCH, MUSIC & OTHER REVENUE 0 0 0 0 0 0 0 0 0 500 0 0
PRODUCTION COST (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (85,000) (104,000) (85,000) (85,000)
CAPITALIZED OVERHEAD (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (8,500) (12,580) (8,500) (8,500)
RESIDUALS (2,720) (2,890) (3,150) (3,330) (3,670) (3,780) (4,260) (4,180) (4,260) (4,280) (3,920) (3,360)
CREATIVE SHARES 0 0 0 0 (1,000) (1,000) (3,000) (2,000) (2,000) (3,118) (1,000) 0
TOTAL REVENUES $171,720 $191,220 $213,420 $233,350 $257,360 $275,230 $334,940 $323,050 $339,850 $356,635 $281,950 $224,350
RELEASING COSTS (119,780) (123,330) (120,350) (129,840) (133,400) (137,080) (148,350) (145,870) (149,360) (148,721) (137,630) (127,490)
PROD, O/H, PART, RESIDUALS (96,220) (96,390) (96,650) (96,830) (98,170) (98,280) (100,760) (99,680) (99,760) (123,978) (98,420) (96,860)
GROSS PROFIT (LOSS) ($44,280) ($28,500) ($3,580) $6,680 $25,790 $39,870 $85,830 $77,500 $90,730 $83,936 $45,900 $0
GROSS PROFIT MARGIN NA NA NA 2.9% 10.0% 14.5% 25.6% 24.0% 26.7% 23.5% 16.3% 0.0%
RETURN THRESHOLD (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (45,900) (52,000) (45,900) (45,900)
POST THRESHOLD GP (LOSS) ($90,180) ($74,400) ($49,480) ($39,220) ($20,110) ($6,030) $39,930 $31,600 $44,830 $31,936 $0 ($45,900)
POST THRESHOLD GP MARGIN -52.5% -38.9% -23.2% -16.8% -7.8% -2.2% 11.9% 9.8% 13.2% 9.0% 0.0% -20.5%
38
TBD ANIMATION #1 [3D](WW Rights, PG Rating, Sept 2016 rel. date) RETURN
GP BREAK GP BREAK
DOMESTIC BOX OFFICE $60,000 $70,000 $80,000 $90,000 $125,000 $135,000 $145,000 $155,000 $165,000 $150,000 $200,000 $99,700 $73,000
INTERNATIONAL BOX OFFICE 72,000 84,000 96,000 108,000 150,000 162,000 174,000 186,000 198,000 180,000 240,000 119,600 87,600
WORLDWIDE BOX OFFICE $132,000 $154,000 $176,000 $198,000 $275,000 $297,000 $319,000 $341,000 $363,000 $330,000 $440,000 $219,300 $160,600
INTERNATIONAL SCREEN COUNT 7,020 7,080 4,100 7,200 7,380 7,420 7,460 7,520 7,550 7,500 7,680 7,250 7,100
DOMESTIC RENTALS 31,200 36,400 41,600 46,800 65,000 70,200 75,400 80,600 85,800 78,000 104,000 51,840 37,960
TOTAL DOMESTIC ADVERTISING (43,000) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500)
DOMESTIC PRINTS (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900)
OTHER COSTS (2,770) (3,190) (3,610) (4,030) (5,500) (5,920) (6,340) (6,760) (7,180) (6,550) (8,340) (4,440) (3,320)
DOMESTIC THEATRICAL NET (18,470) (14,190) (9,410) (4,630) 12,100 16,880 21,660 26,440 31,220 24,050 48,260 0 (12,760)
INT'L RENTALS 28,940 33,770 38,590 43,420 60,300 65,120 69,950 74,770 79,600 72,360 96,480 48,080 35,220
INT'L ADVERTISING (26,490) (27,020) (27,540) (28,070) (29,910) (30,430) (30,960) (31,490) (32,010) (31,220) (32,430) (28,580) (27,170)
INT'L PRINTS (11,470) (11,530) (8,540) (11,650) (11,830) (11,870) (11,910) (11,970) (12,000) (11,950) (12,130) (11,700) (11,550)
OTHER COSTS (2,190) (2,540) (2,880) (3,230) (4,440) (4,790) (5,140) (5,480) (5,830) (5,310) (7,040) (3,570) (2,640)
INT'L THEATRICAL NET (11,210) (7,320) (370) 470 14,120 18,030 21,940 25,830 29,760 23,880 44,880 4,230 (6,140)
DOM. HOME ENT. REVENUE 35,600 40,160 44,650 49,120 65,230 69,570 73,900 80,700 85,680 76,290 100,420 54,030 41,660
DOMESTIC PAY-PER-VIEW/VOD 4,640 5,050 5,410 5,720 6,620 6,820 7,010 7,210 7,370 7,110 7,880 6,010 5,180
DOM. HOME ENT. COSTS (11,150) (12,830) (14,490) (16,160) (22,070) (23,710) (25,360) (27,440) (29,140) (26,270) (34,770) (17,850) (13,380)
DOMESTIC HOME ENT. NET 29,090 32,380 35,570 38,680 49,780 52,680 55,550 60,470 63,910 57,130 73,530 42,190 33,460
INT'L HOME ENT. REVENUE 13,030 14,620 16,210 18,190 23,620 25,520 27,040 28,590 30,100 27,800 35,750 19,770 15,020
INT'L PAY-PER-VIEW/VOD 2,980 3,130 3,270 3,440 3,910 4,060 4,190 4,310 4,440 4,250 4,770 3,580 3,170
INT'L HOME ENT. COSTS (3,720) (4,250) (4,770) (5,430) (7,260) (7,910) (8,420) (8,940) (9,460) (8,680) (11,400) (5,960) (4,380)
INT'L HOME ENT. NET 12,290 13,500 14,710 16,200 20,270 21,670 22,810 23,960 25,080 23,370 29,120 17,390 13,810
DOMESTIC PAY TELEVISION 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110
DOMESTIC FREE TELEVISION 4,500 5,300 6,110 6,420 7,170 7,610 7,790 7,880 7,940 7,840 8,150 6,480 5,570
INTERNATIONAL TELEVISION 29,590 30,530 34,030 36,820 46,380 47,820 47,820 54,670 54,670 53,670 66,460 38,370 33,890
TV COSTS (540) (600) (650) (710) (910) (960) (1,020) (1,080) (1,130) (1,050) (1,330) (760) (610)
TOTAL TELEVISION NET 52,660 54,340 58,600 61,640 71,750 73,580 73,700 80,580 80,590 79,570 92,390 63,200 57,960
AIRLINE / NON-THEATRICAL 1,600 1,980 2,420 2,730 3,780 4,070 4,380 4,680 4,990 4,540 5,300 3,010 2,220
MERCH, MUSIC & OTHER REVENUE 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
PRODUCTION COST (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000)
CAPITALIZED OVERHEAD (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000)
RESIDUALS (2,710) (2,850) (3,090) (3,290) (3,950) (4,090) (4,170) (4,530) (4,610) (4,430) (5,290) (2,820) (4,550)
CREATIVE SHARES 0 0 0 0 (250) (250) (250) (670) (670) (670) (1,900) 0 0
TOTAL REVENUES $175,190 $194,050 $215,400 $235,770 $305,120 $323,900 $340,590 $366,520 $383,700 $354,970 $452,320 $254,280 $203,000
RELEASING COSTS (105,230) (109,360) (109,880) (116,680) (129,320) (132,990) (136,550) (140,560) (144,150) (138,430) (154,840) (120,260) (110,450)
PROD, O/H, PART, RESIDUALS (90,710) (90,850) (91,090) (91,290) (92,200) (92,340) (92,420) (93,200) (93,280) (93,100) (95,190) (90,820) (92,550)
GROSS PROFIT (LOSS) ($20,750) ($6,160) $14,430 $27,800 $83,600 $98,570 $111,620 $132,760 $146,270 $123,440 $202,290 $43,200 $0
GROSS PROFIT MARGIN NA NA 6.7% 11.8% 27.4% 30.4% 32.8% 36.2% 38.1% 34.8% 44.7% 17.0% 0.0%
RETURN THRESHOLD (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200)
POST THRESHOLD GP (LOSS) ($63,950) ($49,360) ($28,770) ($15,400) $40,400 $55,370 $68,420 $89,560 $103,070 $80,240 $159,090 $0 ($43,200)
POST THRESHOLD GP MARGIN -36.5% -25.4% -13.4% -6.5% 13.2% 17.1% 20.1% 24.4% 26.9% 22.6% 35.2% 0.0% -21.3%
39
TBD ANIMATION #2 [3D](WW Rights, PG Rating, Feb 2017 rel. date) RETURN
GP BREAK GP BREAK
DOMESTIC BOX OFFICE $60,000 $70,000 $80,000 $90,000 $125,000 $135,000 $145,000 $155,000 $165,000 $150,000 $200,000 $99,700 $73,000
INTERNATIONAL BOX OFFICE 72,000 84,000 96,000 108,000 150,000 162,000 174,000 186,000 198,000 180,000 240,000 119,600 87,600
WORLDWIDE BOX OFFICE $132,000 $154,000 $176,000 $198,000 $275,000 $297,000 $319,000 $341,000 $363,000 $330,000 $440,000 $219,300 $160,600
INTERNATIONAL SCREEN COUNT 7,020 7,080 4,100 7,200 7,380 7,420 7,460 7,520 7,550 7,500 7,680 7,250 7,100
DOMESTIC RENTALS 31,200 36,400 41,600 46,800 65,000 70,200 75,400 80,600 85,800 78,000 104,000 51,840 37,960
TOTAL DOMESTIC ADVERTISING (43,000) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500) (43,500)
DOMESTIC PRINTS (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900) (3,900)
OTHER COSTS (2,770) (3,190) (3,610) (4,030) (5,500) (5,920) (6,340) (6,760) (7,180) (6,550) (8,340) (5,940) (3,320)
DOMESTIC THEATRICAL NET (18,470) (14,190) (9,410) (4,630) 12,100 16,880 21,660 26,440 31,220 24,050 48,260 (1,500) (12,760)
INT'L RENTALS 28,940 33,770 38,590 43,420 60,300 65,120 69,950 74,770 79,600 72,360 96,480 48,080 35,220
INT'L ADVERTISING (26,490) (27,020) (27,540) (28,070) (29,910) (30,430) (30,960) (31,490) (32,010) (31,220) (32,430) (28,580) (27,170)
INT'L PRINTS (11,470) (11,530) (8,540) (11,650) (11,830) (11,870) (11,910) (11,970) (12,000) (11,950) (12,130) (11,700) (11,550)
OTHER COSTS (2,190) (2,540) (2,880) (3,230) (4,440) (4,790) (5,140) (5,480) (5,830) (5,310) (7,040) (3,570) (2,640)
INT'L THEATRICAL NET (11,210) (7,320) (370) 470 14,120 18,030 21,940 25,830 29,760 23,880 44,880 4,230 (6,140)
DOM. HOME ENT. REVENUE 35,600 40,160 44,650 49,120 65,230 69,570 73,900 80,700 85,680 76,290 100,420 54,030 41,660
DOMESTIC PAY-PER-VIEW/VOD 4,640 5,050 5,410 5,720 6,620 6,820 7,010 7,210 7,370 7,110 7,880 6,010 5,180
DOM. HOME ENT. COSTS (11,150) (12,830) (14,490) (16,160) (22,070) (23,710) (25,360) (27,440) (29,140) (26,270) (34,770) (17,850) (13,380)
DOMESTIC HOME ENT. NET 29,090 32,380 35,570 38,680 49,780 52,680 55,550 60,470 63,910 57,130 73,530 42,190 33,460
INT'L HOME ENT. REVENUE 13,030 14,620 16,210 18,190 23,620 25,520 27,040 28,590 30,100 27,800 35,750 19,770 15,020
INT'L PAY-PER-VIEW/VOD 2,980 3,130 3,270 3,440 3,910 4,060 4,190 4,310 4,440 4,250 4,770 3,580 3,170
INT'L HOME ENT. COSTS (3,720) (4,250) (4,770) (5,430) (7,260) (7,910) (8,420) (8,940) (9,460) (8,680) (11,400) (5,960) (4,380)
INT'L HOME ENT. NET 12,290 13,500 14,710 16,200 20,270 21,670 22,810 23,960 25,080 23,370 29,120 17,390 13,810
DOMESTIC PAY TELEVISION 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 19,110 15,440 13,690 19,110
DOMESTIC FREE TELEVISION 4,500 5,300 6,110 6,420 7,170 7,610 7,790 7,880 7,940 7,840 8,150 6,480 5,570
INTERNATIONAL TELEVISION 29,590 30,530 34,030 36,820 46,380 47,820 47,820 54,670 54,670 53,670 66,460 44,340 32,840
TV COSTS (540) (600) (650) (710) (910) (960) (1,020) (1,080) (1,130) (1,050) (1,330) (760) (610)
TOTAL TELEVISION NET 52,660 54,340 58,600 61,640 71,750 73,580 73,700 80,580 80,590 79,570 88,720 63,750 56,910
AIRLINE / NON-THEATRICAL 1,600 1,980 2,420 2,730 3,780 4,070 4,380 4,680 4,990 4,540 5,300 3,010 2,220
MERCH, MUSIC & OTHER REVENUE 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
PRODUCTION COST (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000)
CAPITALIZED OVERHEAD (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000) (8,000)
RESIDUALS (2,710) (2,850) (3,090) (3,290) (3,950) (4,090) (4,170) (4,530) (4,610) (4,430) (5,160) (1,870) (3,500)
CREATIVE SHARES 0 0 0 0 (250) (250) (250) (670) (670) (670) (1,900) 0 0
TOTAL REVENUES $175,190 $194,050 $215,400 $235,770 $305,120 $323,900 $340,590 $366,520 $383,700 $354,970 $448,650 $254,830 $201,950
RELEASING COSTS (105,230) (109,360) (109,880) (116,680) (129,320) (132,990) (136,550) (140,560) (144,150) (138,430) (154,840) (121,760) (110,450)
PROD, O/H, PART, RESIDUALS (90,710) (90,850) (91,090) (91,290) (92,200) (92,340) (92,420) (93,200) (93,280) (93,100) (95,060) (89,870) (91,500)
GROSS PROFIT (LOSS) ($20,750) ($6,160) $14,430 $27,800 $83,600 $98,570 $111,620 $132,760 $146,270 $123,440 $198,750 $43,200 $0
GROSS PROFIT MARGIN NA NA 6.7% 11.8% 27.4% 30.4% 32.8% 36.2% 38.1% 34.8% 44.3% 17.0% 0.0%
RETURN THRESHOLD (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200) (43,200)
POST THRESHOLD GP (LOSS) ($63,950) ($49,360) ($28,770) ($15,400) $40,400 $55,370 $68,420 $89,560 $103,070 $80,240 $155,550 $0 ($43,200)
POST THRESHOLD GP MARGIN -36.5% -25.4% -13.4% -6.5% 13.2% 17.1% 20.1% 24.4% 26.9% 22.6% 34.7% 0.0% -21.4%
Strategy Appendix
Cars 1 (2
006)
Cars 2 (2
011)
Shrek
1 (2001)
Shrek
2 (2004)
Shrek
3 (2007)
Shrek
4 (2010)
Mad 1(2005)
Mad 2 (2
008)
Mad 3 (2
012)
Panda 1
(2009)
Panda 2
(2011)
Ice 1 (2
002)
Ice 2 (2
006)
Ice 3 (2
009)
Ice 4 (2
012)
DM 1 (2010)
DM 2 (2013)
Monster1
(2001)
Monster2
(2013)
$-
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
$800.0
$900.0
$1,000.0
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500%
DBO IBO %IBO/DBO
Family franchises help create stability for an overall film slate; animated sequels typically outperform originals, particularly internationally
41
*Note: Data as of 8/27/13, Despicable Me 2 and Monsters University still in releaseDespicable Me 2 #2, Monsters U #4 and Croods #6 for the top grossing films worldwide in 2013