SONY PICTURES TELEVISION CHANNELS BRAZIL& LATIN AMERICA

FY14 BUDGET PRESENTATION December 14, 2012 AGENDA 1. OVERVIEW 2. FINANCIALS 3. ACQUISITIONS / PROGRAMMING 4. MARKETING 5. DIGITAL 6. SONY SPIN 3

OVERVIEW ACCOMPLISHMENTS IN FY13

• Ratings Growth!

– In key Ad Sales time period (Mon-Sun, 18:00 – 24:00)

– 18% growth on AXN (Mexico, A18-49)

– 4% growth on SET (Mexico, W18-49)

– 16% growth on SET (Brazil, W 18-49)

– 6% growth on AXN (Brazil, W 25+)

– In Prime Time (Mon-Fri, 21:00 – 23:00)

– 18% growth on SET (Mexico, W18-49)

– 25% growth on AXN (Mexico, M18-49) • SET/AXN Ranking Top 10 Channels on DirecTV • #1 Reality Show in its time period in 11 different targets

– #2 program in GE after The Simpsons • New ad sales approach impacting over 3,000 advertisers across the region

4 ACCOMPLISHMENTS IN FY13

• Affiliate relationship closer to HBO and MSO’s

– Sky & Net Brazil, DirecTV, Dish Mexico • Customized grids by key markets • FB reached 1,000,000 fans • SD Feed HD Feed Unification for Brazil • Launch of “The Countdown” on Sony Spin • Strategic alliance with Reforma, Elle & Sears, MSN (Latam ) & Youtube, Google, Sony Music (Brazil) • 1st time ever SET is awarded “A Favor de lo Mejor” for Once Upon a Time in Mexico • 4 Gold Promax Awards for MNTM S3, CSI, Criminal Minds

5 WORK IN PROGRESS FY13

• Rating / Ranking in Ad Sales Time Period Mon-sun,18:00 – 24:00

• Spin Distribution

• Segmentation of Spin Mexico Feed

• Executive Director of On-air Search

6 BUSINESS OBJECTIVES FY14

7 BUSINESS OBJECTIVES FY14 – BRAZIL / LATAM • Revenue Growth • Focus on EBIT – Mitigate increasing costs of content – Reducing operational costs – Program / revenue analysis monitoring – Alternate ways of marketing our channels and content • Continue Ratings / Rankings Progress – Prime access 6pm – 8pm, Mon-Sun – Argentina/Brazil/Colombia/Mexico/Venezuela • Reposition of Sony Spin into C Class channel – Focus on growing distribution

8 BUSINESS OBJECTIVES FY14 – BRAZIL / LATAM

• Ad Supported OP’s • Successfully launch “Agora Vai” (Brazil) • Maximize the use of Government Incentives • Explore partnerships with key players in major markets – RedeTV Model (Brazil) – Venevision (Venezuela) – Cadena 3 (Mexico) – Grupo Expansion (Mexico) – Liga Mexicana de Futbol (Mexico) • Continue improvement of communication/work-flow process/integration of all offices – Focus on Venezuela / Shared Services

9 BUSINESS OBJECTIVES FY14 – BRAZIL / LATAM

• Brand Study to define positioning, target audience and core attributes for Sony / AXN brand based on key criteria: – Relevant to consumer & trade – Works with current and future programming – Clearly differentiated from the competition – Clearly works for both Brazil & Latin America – Lends itself to outstanding channel creative execution – Slogans

10 11

FINANCIALS Latin America Economic Outlook (2012-2014)

Mexico 2012 2013 2014 GDP Growth (%) 3.78 3.45 3.49 Inflation (% CPI) 3.99 3.27 3.01 Exchange Rate 13.05 12.95 13.02 Devaluation (%) (4.98) 0.77 (0.54) GDP Per Head (US$) 10,173 10,950 11,785 Population (millions) 114.87 116.02 117.18

Venezuela 2012 2013 2014 GDP Growth (%) 5.75 3.26 3.38 Inflation (% CPI) 22.00 29.20 28.20 Exchange Rate 4.30 6.30 6.30 Devaluation (%) - (46.51) - GDP Per Head (US$) 14,835 19,079 23,570 Population (millions) 30.36 30.97 31.59

Colombia 2012 2013 2014 GDP Growth (%) 4.25 4.41 4.45 Inflation (% CPI) 2.70 3.05 3.01 Exchange Rate 1,802.80 1,907.40 2,005.40 Devaluation (%) 2.49 (5.48) (4.89) GDP Per Head (US$) 7,658 7,802 7,992 Population (millions) 46.60 47.15 47.71

Brazil 2012 2013 2014 GDP Growth (%) 1.47 3.95 4.20 Inflation (% CPI) 4.97 5.10 4.50 Exchange Rate 2.02 2.04 2.06 Devaluation (%) (15.84) (0.99) (0.99) GDP Per Head (US$) 11,925 13,443 14,897 Population (millions) 196.53 198.04 199.49

Last Update: October 2012 Argentina 2012 2013 2014 GDP Growth (%) 2.59 3.06 3.83 Inflation (% CPI) 9.85 9.85 9.85 Source: World Bank & IMF Exchange Rate 4.80 5.20 5.80 Devaluation (%) (10.42) (7.69) (10.34) GDP Per Head (US$) 12,340 13,159 14,683 12 Population (millions) 41.03 41.49 41.96 MARKET SNAPSHOT

• Argentina – ongoing economic situation and currency restrictions.

• Brazil – Real$ devaluation and slower market growth have challenged government efforts to stimulate economy

• Mexico – election of Enrique Peña Nieto and link to Televisa will continue regulatory challenges for PayTV.

• Venezuela – Chavez re-election and recent announcement of cancer return. Devaluation of Bolivar expected in 2013. “Stable Uncertainty” continues.

13 FX Comparative

FX Variance (LC / USD)

vs.. vs.. MRP 2012 Budget FY13 Budget FY14 MRP 2012 Budget FY13

4.74 4.51 4.28 (5.10%) (10.75%)

2.03 2.07 1.79 1.93% (13.41%)

1,787 1,787 1,950 0.00% 8.31%

12.89 13.86 13.64 7.00% 5.50%

5.30 5.30 5.30 0.00% 0.00%

14 15 FY12&FY13 REALBRAZILIAN EVOLUTION 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 December2.0785 12thrateof

40546 BRA/USD 1.67 averageof 5 months below the final final belowthe months 5 40556 40568 40578 40590

40602 MinFY12= 40616 40626 40638

40648 MaxFY12= 40662 40674 40686 40696 40708 40721

40731 1.53 40743 40753 40765 40777

40787 1.90 40800 40812 40822 40835 40847 40858 40871 40883 40893 40905 40917 40927 40939 40949 40963 40975 40987

40997 Min FY13= 41010 41022 41033 41043 41051

41059 1.84 41067 41075 41083 41093 41103 41115 41127 41137 41149 41162 41172 MaxFY13= 41184 41197 41207 41220 41233 2.11 41243 16 FY12& FY13 EVOLUTION PESO MEXICAN December12.7506 12thrateof 11.50 12.00 12.50 13.00 13.50 14.00 14.50

03/01/2010 final belowthe months 6 24/01/2010 average of 12.66 12.66 average of 14/02/2010

07/03/2010 MXN/USD 28/03/2010 18/04/2010 09/05/2010 30/05/2010 20/06/2010 11/07/2010 FY12= Min 11.50 01/08/2010 22/08/2010

12/09/2010 Max FY12= 03/10/2010 24/10/2010 14/11/2010 05/12/2010 26/12/2010 16/01/2011 06/02/2011 27/02/2011 20/03/2011 10/04/2011 01/05/2011 22/05/2011 12/06/2011 03/07/2011 24/07/2011 14/08/2011 04/09/2011 25/09/2011 Max FY13= 16/10/2011

06/11/2011 14.24 27/11/2011 18/12/2011 08/01/2012 29/01/2012 19/02/2012 11/03/2012 01/04/2012

22/04/2012 Min FY13=

13/05/2012 14.39 03/06/2012 24/06/2012 15/07/2012 05/08/2012 26/08/2012

16/09/2012 12.70 07/10/2012 28/10/2012 13.04 18/11/2012 VENEZUELAN BOLIVAR SECONDARY MARKET

Source: Econanalítica

The Venezuela secondary market was “stable” until August 2012 leading up to the presidential elections. 17 VENEZUELAN BOLIVAR SECONDARY MARKET

18

17

16

15

14

13 S U / $ %

B 12 E 2 V

11 7

10

9 0 4 4 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 2 4 6 8 0 2 4 6 8 0 2 6 8 0 2 6 8 5 5 5 6 6 6 7 7 8 8 9 9 0 1 1 2 2 3 3 3 4 4 4 5 6 6 7 7 7 8 8 8 9 9 9 0 0 0 0 1 1 1 2 2 2 3 3 4 4 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

In last 4 months, the secondary rate has increased at an explosive rate of 72%. After the elections results the rate moved from an average of 12 Bs/US$ to 16 Bs/US$ 18 Financial Performance

Revenue EBIT

-2% -5% +9% +18% 70,000 250,000 60,000 12,759 12,465 10,579 67,925 200,000 64,600 50,000

53,662 40,000 150,000 Brazil Brazil 30,000 50,693 Latam 46,463 49,369 Latam 100,000 151,947 158,833 20,000 129,957 10,000 50,000 - - 57,042 62,124 63,158 183,618 216,547 226,758 FY13 Q3REF FY14 BUDGET FY14 MRP FY13 Q3REF FY14 BUDGET FY14 MRP 36% 32% 32% Latam Margin 20% 20% 18% Brazil 31% 29% 28% Combined

Revenue increase to bottom line impacted by programming commitments and other expenses 19 FY14 Budget vs.. FY13 EOY EBIT FY13 Ref. 57,042 Ad Sales 16,330 Affiliate Sales 16,599 Selling Expenses (3,920) Programming (10,769) Overhead (2,819) Original Prod. (1,949) Dubbing (1,800) Prog Br Acq. (1,721) Decos (1,247) Marketing (1,066) Digital (1,300) New Feeds (880) Others (376) EBIT FY14 Budget 62,124

20 FY14 Budget vs.. FY14 MRP

EBIT FY14 MRP. $63,158 FX 2,889 Ad Sales (18,317) Affiliate Sales 3,842 Selling Expenses 7,645 Programming 2,957 Original Prod. (862) Prog Br Acq. (257) Dubbing (1,400) Marketing 866 Overhead 417 Others 1,186 EBIT FY14 Budget 62,124

21 Revenue Growth

250000

225000

200000 -15% FX+2.4M 175000 Ops -16M 119392.43 +19% 103497.71 150000 87167.63

125000 +25% +13% Ad Sales FX+1M DTH Ops +5M 100000 Cable 54268.99 48199.93 75000 43408.35 +11% -1% FX+1M Ops -1M 50000

-5% +18% 58780.52 59165.58 25000 53042.4 FX+4M Ops +33M Ops -14M

0

22 Top Eight Affiliates 70% of total revenue

Revenue YE Paid Subscribers SET AXN SPIN Total % SET AXN SPIN NET Servicios 8,311 13% 4,080 15% 289 6% 12,680 13% 4,171 3,731 901 Telmex 9,813 15% 3,011 11% 345 7% 13,169 13% 5,637 3,530 1,236 SKY Brazil 8,344 13% 3,509 13% 679 14% 12,532 13% 5,201 3,809 3,809 Liberty Media 6,653 10% 2,915 10% 944 20% 10,512 11% 6,108 6,108 5,502 Telefonica 2,293 3% 1,138 4% 112 2% 3,543 4% 1,385 1,158 163 Televisa 5,670 9% 1,680 6% 143 3% 7,493 8% 6,652 2,400 1,244 Clarin 2,655 4% 1,415 5% 249 5% 4,319 4% 3,324 3,324 3,324 Dish 3,485 5% 548 2% 204 4% 4,237 4% 2,779 684 684 Top Affiliates 47,224 72% 18,296 66% 2,965 63% 68,486 70% 35,257 24,744 16,863 Others 18,704 28% 9,550 34% 1,762 37% 30,017 30% 12,360 11,300 3,785 Total HBO 65,928 27,846 4,727 98,503 47,617 36,044 20,648 Growth vs. 2012 HBO Ref. 10% 8% 5% 9% 14% 11% 11%

Consolidation in market amongst affiliate systems. Top four affiliate systems are 50% of revenue

NOTE: HBO Projections from Jan-Dec 2013 (not adjusted with SPT FX Budget rates) 23 Affiliate Revenue by Market

SET AXN SPIN Total DTH Cable Total % DTH Cable Total % DTH Cable Total % DTH Cable Total % Brazil 17,381 9,228 26,609 40% 6,000 4,500 10,500 38% 1,037 378 1,415 30% 24,418 14,106 38,524 39% Mexico 6,536 7,299 13,835 21% 1,289 3,213 4,502 16% 306 436 742 16% 8,131 10,948 19,079 19% Argentina 1,550 4,221 5,771 9% 625 2,248 2,873 10% 208 548 756 16% 2,383 7,017 9,400 10% Colombia 1,482 3,529 5,011 8% 680 1,904 2,584 9% 159 112 271 6% 2,321 5,545 7,866 8% Chile 1,866 1,641 3,507 5% 962 905 1,867 7% 57 269 326 7% 2,885 2,815 5,700 6% Venezuela 1,713 1,176 2,889 4% 660 647 1,307 5% 234 111 345 7% 2,607 1,934 4,541 5% Peru 826 1,434 2,260 3% 243 777 1,020 4% 51 188 239 5% 1,120 2,399 3,519 4% Central America 394 1,590 1,984 3% 211 861 1,072 4% 16 105 121 3% 621 2,556 3,177 3% Others 894 3,168 4,062 6% 413 1,708 2,121 8% 75 437 512 11% 1,382 5,313 6,695 7% Total HBO 32,642 33,286 65,928 11,083 16,763 27,846 2,143 2,584 4,727 45,868 52,633 98,501

37% 49% 43% 57% 68% 75% 70% 80% 79% Cable 63% DTH 51% 57% 43% 32% 25% 30% 20% 21%

Brazil Mexico Argentina Colombia Chile Venezuela Peru Central America Others

NOTE: HBO Projections from Jan-Dec 2013 (not adjusted with SPT FX Budget rates)

24 FY14 Programming Amortization

77% amort. from prior year 70000 acquisitions

60000 13718.86 15741 50000

13995.8 40000 FY14 Acq.(2,116 Hrs - $60M) FY13 Acq.(2,675 Hrs - $61M) 29230.64 30124 30000 FY12 Acq.(2,909 Hrs - $56M) PY Amortization 25242.03 +12M 20000

10000 15802.98 15941 10901.93 0 2156.31 +24% -5%

FY14 acquisitions are 98% committed based upon current renewals and committed deals 25 Cash Flow

-7%

50,000 +30% 2,766 2,698 45,000 40,000 35,000 2,620 30,000 47,041 Brazil 25,000 43,421 Latam 20,000 32,827 15,000 10,000 5,000 - 35,447 46,119 49,807 FY13 Q3REF FY14 BUDGET FY14 MRP

Timing of ad sales collections into FY14

26 Exchange Control Risks

P&L FY14 Budget (in US$) FX 5.3 FX 15 Impact Venezuela Affiliate 7,934 2,803 (5,131)  Sitme will apply only to Ad Sales Ad Sales 11,453 4,047 (7,406) revenues Selling Exp. (3,860) (1,364) 2,496  Possible devaluation and/or new Marketing (1,380) (488) 892 regulations Overhead (7,575) (2,677) 4,899  Worst case scenario: cash basis accounting EBIT 6,572 2,322 (4,250) (loss $6.6M) Current excess of cash 4,500 1,590 (2,910)  Current excess of cash in Venezuela VEF24M. Annual inflation 25%. Maximum Sitme annual transfer 8,400

Argentina  Possible devaluation and/or new P&L FY14 Budget (in US$) regulations FX 4.7 FX 6.5 Impact  Worst case scenario: cash basis Affiliate 7,934 5,737 (2,197) accounting Ad Sales 6,007 4,344 (1,663) (loss $6.5M) Selling Exp. (1,328) (960) 368  Affiliate budget assumes collections in US$ Marketing (1,932) (1,397) 535 at Overhead (4,088) (2,956) 1,132 34% discount. If not possible would create an EBIT 6,593 4,767 (1,826) immediate excess of cash . Annual inflation 25%

27 ACQUISITIONS/PROGRAMMING

28 ACHIEVEMENTS FY13 ACQUISITIONS – BRAZIL / LATAM

• Key terms on SPT volume deal Y2 re-negotiated resulting in $1.6 million in savings – No obligation to select a 3rd title from the studio and no PUT series – $1 mm library commitment opened to include library films and MOWs

• Lionsgate becomes new content provider

• Identified local Brazilian content to comply with law

29 MITIGATING INCREASING COST LINE AGGRESSIVE APPROACH ON ELIMINATING HOURS = $13 million in acquisition savings In FY14!!!

• Eliminated renewals of current series • Non-renewal of library content ($4.4 ($4.8 million in savings) million in savings) – American Idol S13 and on – 5th relicense of the CSI Franchise – Castle – Sesiones con A. Franco – That 70’s Show – WarpTV – Top Chef – Gamebox – Top Model – Spin Fest – Grey’s Anatomy – Sesiones Off Season • – Road Trip Nation Not replacing cancelled hours ($2.4 million in savings) – Being Human –CSI Miami – Punk’ed –Private Practice – Movie Budget Line –30 Rock

30 KEY NOTES CURRENT DEALS

NOTE SPT Volume Deal Disney Output Deal

• Expiration Date • Year 3 begins May 2013 • Year 3 begins October • Final selection at 2013 Screenings • Final selection at Screenings • Ideal time for Renewal •After selection of Year 3 • Before May Screenings

• Terms for Improvement • License fees (both) • Expand digital rights (TV Everywhere) • SPT: re-evaluate library commitment & 2nd relicense obligation • Disney: consider straight output throughout the year

31 SCORECARD NEW SERIES FY13

FULL SEASON CANCELLED / NOT TO BE CONFIRMED IF OTHERS ORDERED RETURNING FULL SEASON

• Nashville - 22 • Last Resort • Red Widow • Grey’s Anatomy - 24 • The Neighbors - 22 • Private Practice • Zero Hour • Castle – 23 • Bunheads – 18 • 30 Rock • Mistresses • Baby Daddy - • Switched at Birth – renewed 20 • Undercover - • Scandal - 22 renewed • Malibu Country - 18 • Client List - renewed

FY14 budget assumes “90210” is being cancelled

32 ACQUISITIONS STRATEGIES FY14 – BRAZIL / LATAM

• Reduce inventory hours / mitigate increasing cost

• Improve terms of current volume/output deals

• Focus on securing attractive titles instead of volume

• Identify foreign content that can work in our region – Finding quality content at lower avg. cost per hour

– EX: The Killing, Undercover

• Push further on including Catch-up, VOD, SVOD, TV Everywhere rights on all deals

33 TOTAL PROGRAMMING HOURS

FY13 FY14

1400 1205 1200

1000 901 818 842 800 639 600 400 359 200 0 SET AXN SONY SPIN

34 AVERAGE COST P/HOUR

+4% 40,000 35,000 30,000 +32% 25,000 SET 20,000 AXN 15,000 +21% SONY SPIN 10,000 5,000 0 FY13 FY14

35 CHALLENGES

• More players after the same content from US major studios

• Several output deals in place today with major studios (mostly films) limiting access to current/attractive titles

• Leverage for negotiation is limited against larger channels groups (portfolios)

• Long-running series being cancelled (CSI Miami, Private Practice). Replacement hours will have higher fees

36 OPPORTUNITIES • Solid partnership with Disney

– Disney interested in the renewal of current output deal

• Strong relationships with quality content providers

– Fremantle, Lionsgate and Miramax

• SPT possibility to explore replacement of library commitment for Teleset production

• Important growth in the development of quality content outside major studios

– eOne, AMC, Starz, BBC, DRG, Endemol

• Distributors are more willing to explore partnerships in original productions

37 38

PROGRAMMING PROGRAMMING ACCOMPLISHMENTS FY13 - SET

Season 3, Episodes 1-12 Women 18-49 High+Medium • Highest rated show in W25-34H with 1.37 rating • Finale delivers – 2.0 rating in W25-49M – .90 in W18-49HM (61% increase vs. S2) • #1 Reality show in its time period in 11 different targets • Repeats ranked #2 among the competition Source: IBOPE Media

39 PROGRAMMING ACCOMPLISHMENTS FY13 – SET / LATAM & BRAZIL

• Premiere Week Success !

– SET ranks #2 among all Pay TV (Pan/Mex)

• New Successful Access Strategy!

– increased ratings by 25% in Pan, 62% in Mexico, and 75% in Argentina

– Movies keep delivering on SET BRA, Top 10 in 19 Targets

• ANCINE block on Saturdays increased results of weekends

– 7pm +300% & 9pm +63% A18-49

• Dubbing of OUAT on Sundays increased results on time slot/day (Brazil)

– +78% in AB 18-49

40 i*Source: IBOPE Media (Oct 22-28, 2012; Mon-Fri 21:00-23:00 MORE SET PROGRAMS NOW RANKING AS

4 of the MOST WATCHED Top 10 shows YTD Program Ranker, Mon-Sun 18:00-24:00 belong to Sony! W18-49 AB A18-49 AB

2 weeks data

1 month data 2 months data 1 month data 2 weeks data

CHANNELS CONSIDERED: SONY, WARNER, FOX, CHANNELS CONSIDERED: SONY, AXN, WARNER, UNIVERSAL, FX, FOX LIFE, ID, SPACE, AND A&E FOX, UNIVERSAL, FX AND A&E

Source: IBOPE Media (Jan 1-Nov 25, 2012)

41 AXN CONTINUES TO SHINE WITH ITS CONTENT IN THE TOP 10 MOST WATCHED

3 of the YTD PROGRAM RANKER, MON-SUN 18:00-24:00 Top 10 shows belong to AXN! A18-49 AB A 25+ AB

1 month data

2 months data 2 weeks data

2 weeks data

CHANNELS CONSIDERED: AXN, WARNER, FOX, CHANNELS CONSIDERED: SONY, AXN, WARNER, UNIVERSAL, FX, FOX LIFE, ID, SPACE, AND A&E FOX, UNIVERSAL, FX, AND A&E Source: IBOPE Media (Jan 1-Nov 25, 2012)

42 Source: IBOPE Media (Jan 1-Nov 18, 2012) YTD CHANNEL RANKERS PAY ENTERTAINMENT CHANNELS (INCLUDING LOCAL), MON-SUN 18:00-24:00 Mexico

4% higher vs.. same time last year 20% higher vs.. 18% higher vs.. same time last year same time last year

6% higher vs.. same time last year

(Out of 64 Channels)

43 Source: IBOPE Media (Jan 1-Nov 21, 2012) YTD CHANNEL RANKERS PAY ENTERTAINMENT CHANNELS, MON-SUN 18:00-24:00

Pan

5% higher vs.. same time last year Same rating vs.. same time last year Same rating vs.. same time last year 8% higher vs.. same time last year

44 Source: IBOPE Media (Jan 1-Nov 18 2012) YTD DTV CHANNEL RANKERS PAY ENTERTAINMENT CHANNELS, MON-SUN 19:00-25:00

PAN

*On Sep 2012, Venezuela’s (DirecTV’s ) feed’s schedule was moved 30 minutes

45 Source: DTV Ratings (Jan 1-Oct 31 2012) YTD DTV CHANNEL RANKERS PAY ENTERTAINMENT CHANNELS, MON-SUN 18:00-24:00 BRA

46 Source: DTV Ratings (Jan 1-Oct 31 2012) YTD CHANNEL RANKERS PAY ENTERTAINMENT CHANNELS (INCLUDING LOCAL), MON-SUN 18:00-24:00 BRA

14% higher vs.. same time last year 6% higher vs.. same time last year

Source:47 IBOPE Media (Jan-Nov, 2012) YTD CHANNEL RANKERS PAY ENTERTAINMENT CHANNELS (INCLUDING LOCAL), MON-SUN 18:00-24:00 BRA

14% higher vs.. same time last year 6% higher vs.. same time last year

48 Source: IBOPE Media (Jan-Nov, 2012) YTD CHANNEL RANKERS PAY ENTERTAINMENT CHANNELS (INCLUDING LOCAL), MON-SUN 18:00-24:00 BRA

-5% vs.. same time last year -11% vs.. same time last year

49 Source: IBOPE Media (Jan Nov, 2012) PROGRAMMING STRATEGY FY14 – LATAM / BRAZIL (SET / AXN)

• Optimize premieres throughout the year – Returning series (October – SET) (November – AXN) – New series during the year ( February thru September)

• Increase male viewership – Action movies – Explore alternative content (ex: Ultimate Fighting / Mini-Series) – Develop male-focused on air campaigns

50 PROGRAMMING STRATEGY FY14 – LATAM / BRAZIL (SET / AXN)

• Focus On Weekends

– Weekend Blocks – Exclusive Sunday Movies – Brazilian Content Blocks (Verde+amarelo/Territorio National)

• Short Format Content

– Ex: APH To Bring More Ad Sales Revenue – Maintain Freshness On Air Due To Frequency Of Promo Rotation

51 PROGRAMMING STRATEGY - DUBBING FY14 – LATAM / BRAZIL (SET / AXN)

• Dubbing – LATAM:

– Prime Time Repeats (June – September) – Morning Block – Library – Family Weekend Block – Movies in Argentina

– BRAZIL:

– Weekend Repeats – All movies – Access blocks/strips (6-9pm) – Library shows

52 PROGRAMMING STRATEGY FY14 – LATAM / BRAZIL (SET / AXN)

• Original Productions for key markets - Ad supported

– Mexico’s Next Top Model Season 4

– Mexico’s Next Top Model REVISITED

– Agora Vai

– Breakout 2

– Santo Forte

• New business models - boost our current OP pipeline

– SPT – Teleset and/or Floresta Productions as part of our volume deal – MTV3 U.S. Hispanic Market Co-productions – Broadcast partnerships in key market (Ex: cadena 3 in Mexico) – Grupo Expansion (Mexico) – La Liga Mexicana (Mexico)

53 54

MARKETING MARKETING ACCOMPLISHMENTS FY13 – LATAM / BRAZIL

• OUAT becomes a hit!

– $4m in press coverage

– +100% growth in digital traffic • MNTM S3

– First ever retail partnership: SEARS

– POP presence with SEDAL products

– Top TT in MX and WW. 30% growth in facebook & 50% in twitter • Impacted over 3,000 Advertisers across the region

– Road shows and Upfronts • Turn around with HBO affiliate marketing

– Sky & Net Brazil

– DirecTV and Dish Latam

55 MARKETING STRATEGY - FY14

DOING MORE WITH THE SAME!

• Covering more measured cities – 90+ IBOPE Cities

• Greater focus on Digital / Social Media – Leveraging Crackle

• Grass Roots / Guerilla marketing

• Focus on proven returning series

• Focus on promoting movie titles to bring new viewers to our channels

56 USING CLIENT $ TO EXTEND MARKETING MARKETING STRATEGY – FY14

• Identify select programs to sell through to clients • Ensure desired ratings-geared off channel elements are included in the package • If client signs off, move marketing reserved funds for that project to other program • Examples: OUAT talent tour with BIMBO, CSI campaign with Cadillac

57 MARKETING BY REGION MEXICO & Brazil ARE BIGGEST RATINGS & REVENUE MARKETS, AS SUCH RECEIVE MOST INVESTMENT

Total Marketing $10,328,581

5000000 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 BRAZIL MEXICO ANDEAN SCONE PAN

58 MARKETING BY AREA MARKETING DOLLARS ARE GEARED PRIMARILY TO DRIVING RATINGS

29% Total Consumer Marketing Total Affiliate Marketing Total Ad Sales 57% Marketing 14%

59 60

DIGITAL, VOD & AUTHENTICATED CATCH UP DIGITAL MEDIA FY13 ACHIEVEMENTS • MNTM’s website increased 400% its traffic • BRA Facebook pages reached 1,000,000 fans • The Confession generated 500,000 video views • SPIN’s Cold Play contest drove Facebook’s page from 30K to 67K followers • New AXN.com template deployed

61 DIGITAL MEDIA GOALS

• Programming guides, Tent-pole show informational minisites, and basic Social Media broadcasting

• Ad Sales’ special client integrations

• Marketing campaigns and digital media goals

62 ● MerlinSesionesCallGameboxLiveRoadtripWarpTVLostArcherTeenBlue Me From GirlMountainWolf Fitz Nation con Abbey Alejandro State Road Franco ● UndercoverBreakingZeroCriminalLastPerceptionDamagesRedHannibalCastle WidowResortHour Season Minds BadSeason Season ● CougarAmerica'sBodyNashvilleSwitchedRevengeScandalThePrivateBabyDropGrey'sMalibuX-FactorOnce ClientFamily DeadofDaddyUpon Anatomy Country Proof at Got a Birth Talent 15%

35%

20%

VOD & CATCH-UP RIGHTS

Available VOD-Catch Up Non-Linear Content Inventory & Expected Evolution

FY13 FY14 FY15

Episodes Hours SET 369 323.5 AXN 153 153 SPIN 260 215.5 TOTAL 782 692 Initial 10% of Prime Time, 20% of Non-Prime Time (est.) 63 VOD

• Estimated roll-out starting around April 2013 – Some initial cost to be incurred in FY13 (up to $150K)

• Target BRA (NET), MEX (Cablevision & Megacable), CHI (VTR & Telmex), PER, COL and Central America

64 CATCH-UP

• Est. launch date Apr 2013 with Basic Channels • Program respecting the 90-day holdback ask by Affiliates • Web-only initially • Ad Sales monetizable Catch-Up Service Growth FY13 FY14 FY15 FY16 200% 300% 500%

Unique Users (monthly average) 26,100 104,400 626,400 Video Views (monthly average) 52,200 208,800 1,252,800

65 66

SONY SPIN PROGRAMMING ACCOMPLISHMENTS FY13 – SPIN / LATAM & BRAZIL

• Launch of “Breakout” on digital platform – 2,250+ Entries in two weeks • Launch of “Vagazoids” • Launch of “The Countdown” • Better positioning on DirecTV

67 BARKER CHANNEL STRATEGY FY14 – LATAM / BRAZIL • New positioning for Sony Spin to target lower tier distribution focusing in Brazil & Mexico

– Subscriber growth coming from the C Class in the region

– Need to diversify our offering to cable systems

– Barker channel offering that will heavily promote SET / AXN to support upgrades • High quality, aspirational content

– Target : 18-34 C

– Dubbed 100% / Focus on Local Content

– Series - Films - Music - Magazine – Soaps • Increase advertising potential / complementary offering to SET/AXN

– Volume offering

– Inventory Overflow

– Broaden Advertising base

• New graphics package in line with new positioning

• Transition to begin: April 2013

68 69 70 HOW WILL WE MEASURE SUCCESS? FY14 – LATAM / BRAZIL

• Growth in distribution – Targeting 26 million HH

– LATAM (+ 2.6 million HH)

– Dish Mexico Targeting growth of 1.7 million HH

– Mega Cable Targeting growth of 900,000 HH

– BRAZIL (+2.2 Million HH)

– Net Targeting growth of 2.0 million HH

– Oi TV Targeting growth of 200,000 HH

• Delivering on ad sales budget of $5 million 71 72

GRACIAS! OBRIGADO! THANK YOU!