AXN JAPANAXN JAPAN Inc.Inc.General Board MeetingGeneral Board Meeting

Tokyo, JapanTokyo, JapanTokyo : Tokyo : June 28, 2013 June 28, 2013 10:00-10:30 10:00-10:30

Los Angeles : Los Angeles : June 27, 2013 June 27, 2013 18:00-18:3018:00-18:30

Matters to be Resolved: Election of Chairperson of the Board and

Representative Director of the Company

Election of Directors with special titles of the Company

Determination of the order of the Directors of the Company

Matter to be Reported:

Business Update Financial Report as of May 2013 Activity Highlights

Agenda Agenda

2

Election of Chairman of the board and Representative Director of the company

Masao Takiyama

Election of Directors with special titles of the company

Masao Takiyama => President Hiroko Ozawa => Deputy President & General Manager

To determine the order of the directors of the company <Articles of Incorporation 23-2>

In the case that the chairman is unable to act, one of the other directors shall act in his place in accordance with the order predetermined by the board of directors.

1. Masao Takiyama 2. Hiroko Ozawa

Matters to be ResolvedMatters to be Resolved

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• EBIT: exceeds budget by 36 mil yen (+29.2%)

• Revenue: under budget by 14 mil yen (-2.9%)

– DTH: under budget due to lower penetration of 110 Basic Pack and lower allocation with increased number of channels

– IPTV: under budget due to lower increase of subscribers

– AD: under the budget due to slow market of Spot sales

– CATV: slightly over the budget due to timing difference in promotion fee

• Expense: under budget by 50 mil yen (-13.2%)

– Timing difference in Ad sales cost and delay of hiring new head.

Yen 1000's Actual Budget VarianceYTD YTD YTD

REVENUES

Net DTH Revenue 139,082 144,855 (5,773)Net SVOD Revenue 3,262 4,391 (1,129)Net Cable Revenue 200,698 198,600 2,098Net SMATV Revenue 7,939 7,385 554Net IPTV Revenue 45,758 48,644 (2,887)Net Ad Revenue 88,550 95,700 (7,150)Other Revenue 0 0 0TOTAL REVENUES 485,288 499,575 (14,287)

EXPENSES

Programming 140,433 147,096 6,664Creative Services 18,050 22,003 3,953Broadcast Operations 52,184 52,604 419Total Cost of Sales 210,667 221,703 11,036

DTH Sales (103) 3,900 4,003Network Sales 767 1,965 1,199Ad Sales 3,920 17,050 13,130Marketing 20,289 25,750 5,461Research 674 980 306Total Selling & Marketing Expense 25,547 49,645 24,099

G&A 32,524 34,986 2,462Personnel 55,713 64,909 9,196T&E 3,562 6,568 3,006Total G&A 91,799 106,463 14,664TOTAL EXPENSES 328,013 377,811 49,799

EBIT 157,276 121,764 35,512

Non-Operating Income 2,106 1,237 870Non-Operating Expenses 19,535 0 (19,535)

Profit Before Tax 139,847 123,000 16,847

Tax Provision 71,217 51,722 (19,495)

Net Profit 68,631 71,279 (2,648)

Business UpdateBusiness Update - Financial Report as of May 2013 - Financial Report as of May 2013

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0.00

0.10

0.20

0.30

0.40

0.50 <Channel Ranking>

- Foreign Drama Channel -

* Source ： J:COM Rating in Kanto

Jun, 1-16, 2013Jun, 1-16, 2013

0.320.35

FY12

0.24

AXN

FOX

AXN Mystery FOXCRIME

FY13

0.21

0.10

Super!

FY14

1 AXN 0.35

2 FOX 0.32

3 Super ! DramaTV 0.24

4 AXN Mystery 0.21

5 FOXCRIME 0.10

Average Rating

Business UpdateBusiness Update - J:COM Rating - J:COM Rating

Kanto: AXN is keeping the strong No.1 in genre

5

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45 <Channel Ranking>

- Foreign Drama Channel -

0.36

* Source ： J:COM Rating (Weight KANTO:KANSAI:KYUSHU ＝4:2:1)

Jun, 1-16, 2013Jun, 1-16, 2013

AXN

FOX

Super!

AXN Mystery

FOXCRIME

0.33

0.23

FY12 FY13

0.13

FY14

1 FOX 0.36

2 AXN 0.33

3 AXN Mystery 0.23

4 Super ! DramaTV 0.23

5 FOXCRIME 0.13

Average Rating

Business UpdateBusiness Update - J:COM Rating - J:COM Rating

Weighted Average: FOX exceeds AXN, but it comes from baseball games

6

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45 <Channel Ranking>

- Foreign Drama Channel -

0.33

* Source ： J:COM Rating (Weight KANTO:KANSAI:KYUSHU ＝4:2:1)

Jun, 1-16, 2013Jun, 1-16, 2013

AXN

FOX

Super!

AXN Mystery

FOXCRIME

0.31

0.23

FY12 FY13

0.13

FY14

1 AXN 0.33

2 FOX 0.31

3 AXN Mystery 0.23

4 Super ! DramaTV 0.23

5 FOXCRIME 0.13

Average Rating

Business UpdateBusiness Update - J:COM Rating - J:COM Rating

Weighted Average excluding sports: AXN is No.1 also in weighted average

7

Business Update Business Update - Programming & Marketing - Programming & Marketing

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“HAWAII FIVE-0 Multi-ending Special” obtained high attention of viewers

AXN held special promotion to accept real time voting from viewers to change the story of “HAWAII FIVE-0” (season 3, 12th episode)

We tied-in with SkyPerfecTV! to air the episode also on BS Skaper! to reach wider audiences

Received more than 16,000 votings

Business Update Business Update - Programming & Marketing - Programming & Marketing

9

THE 15th ANNIVERSARY of AXN on July 1st

The 15th anniversary special original program “American TV Series of the Era” looking back the history of American TV series in Japan since 1956, will be aired on July 1st

Business Update Business Update - Programming & Marketing - Programming & Marketing

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The latest hit show “ARROW” will premiere in July

“ARROW” premiere of 1st & 2nd episode is planned in July, prior to the broadcasting of full episode in September

Nikkei Entertainment special edition (July 1 issue) will pick up “ARROW”

on its cover and lead article