Avex Group Holdings Inc. 21st Annual Business Report

Avex Group Holdings Inc.
21st Annual Business Report
'07.04.01-'08.03.31
Avex Group Holdings Inc.
21st Annual Business Report
From April 1, 2007 to March 31, 2008
01
To Our Shareholders
Mid-Term Vision of the Avex Group
To evolve into the “Entertainment Brand Company”
with the strongest creative and communication capabilities in Asia.
To Our Shareholders
The Avex Group is pleased to inform shareholders of its
results for the twelve-month period ended March 31,
2008 in this Annual Business Report.
Looking back on the music market in 2007 based on
the statistics published by the Recording Industry
Association of Japan (RIAJ), shows that sales for online
distribution increased significantly while the production
value of music packages decreased from the previous
year.
This clearly indicates that consumers are taking
advantage of the variety of ways they can acquire
musical content, and as a result the proportion of the
sales for online distribution in the Group has been
expanding year by year.
The Group’s structural reforms implemented three
years ago focused on responding to such changes in
the environment and user needs, breaking away from
the then existing record company-style model that
depended on the sale of CDs and shifting to a
production-style business model to develop diversified
businesses while retaining the rights to artists and
content.
Based on this concept, the Group will continue to
further expand its management business for actors and
talent whose major activities are in visual works or onstage, in addition to those focused on music-related
activities, in order to develop a more advanced
production-style business model.
Furthermore, we are resolved to push forward the
realization of our mid-term vision aiming to be the
strongest entertainment company in Asia. We plan to
use as a base the powerful connections that we have
built up with our various partners in the three years
since the structural reforms as well as our local
subsidiaries in China.
The Group firmly believes that ensuring a long-term
overall return of profit to our shareholders is one of the
most important management policies of the Group. We
have maintained a year-end dividend of 20 yen per
share (an annual dividend of 40 yen including the
interim dividend) for the 21st term.
This year, we celebrate our 20th anniversary, and it
marks 10 years since we went public. We sincerely
appreciate the support of our many shareholders and
stakeholders offered thus far, and I ask for your
continued understanding and support.
June 2008
Masato Matsuura
CEO
Avex Group Holdings Inc.
02
Annual Financial Highlights
21st Annual Business Report
Results of Operations
In the music industry, the production value of
showed continued strong growth centering on
2007 to March 2008 dropped 3.6% from the
packages, including music DVDs, during the
music download services for cell phones, and
same period last year (according to a survey
period from January 2007 to December 2007
increased by 41.2% from the corresponding
by the Japan Video Software Association
decreased by 4.2% from the same period last
period of the previous year (according to a
[JVA]).
year (according to a survey by RIAJ),
survey by RIAJ). Thus, overall sales for the
Against this backdrop, the Group’s
indicating a continued year on year decrease
entire music industry, including music
consolidated sales and operating income
in the musical package market. In sharp
packages, saw a slight increase, just as it did
during this annual period recorded 104.639
contrast, in the online distribution market,
last year.
billion yen (up 3.0% year on year) and 8.51
sales for online distribution during the period
In the video software industry, overall sales
from January 2007 to December 2007
of DVD software during the period from April
Consolidated Statement of Income
Account
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Dividend income
Compensation received for damages
Penalty received
Others
Non-operating expenses
Interest expenses
Commission expenses
Corporate bond issuance expenses
Investment loss by equity method
Foreign exchange loss
Others
Ordinary income
Special profits
Gain on sale and redemption of investment securities
Reversal of allowance for closing of businesses
Return of lease payments due to closing of businesses
Gain on adjustments to balance sheet accounts for the previous fiscal years
Others
Special losses
Loss on sale and disposition of fixed assets
Loss on revaluation of investment securities
Impairment losses
Loss on change in equity
Penalty for breach of contract
Others
Net income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Minority shareholders’ loss
Net income
(Unit: Millions of Yen)
20th term
21st term
From April 1, 2006
through March 31, 2007
From April 1, 2007
through March 31, 2008
Amount
Amount
101,626
61,894
39,732
31,041
8,691
639
15
13
92
―
518
1,516
311
30
239
841
7
86
7,814
30
19
―
―
―
10
404
19
300
―
51
―
33
7,439
4,383
33
40
3,063
104,639
63,323
41,316
32,805
8,510
179
48
13
18
35
63
1,623
573
34
31
773
136
73
7,066
392
20
142
113
72
42
2,151
44
1,887
6
32
143
37
5,307
4,279
226
107
909
billion yen (down 2.1% year on year),
respectively.
Consolidated Performance
Sales (Millions of yen)
120,000
104,639
101,626
100,000
89,783
80,000
60,000
40,000
20,000
0
19th term
20th term
21st term
Operating Income/Ordinary Income
Operating Income
(Millions of yen)
10,000
Ordinary Income
8,650 9,058
8,691
7,814
8,000
8,510
7,066
6,000
4,000
2,000
0
19th term
20th term
21st term
Net Income
Net Income/Net Income per Share
(Millions of yen)
4,478
Net Income per Share
93.79
4,000
80
71.33
3,063
3,000
60
2,000
40
1,000
909
21.17
0
20
0
19th term
20th term
21st term
03
Annual Financial Highlights
Consolidated Balance Sheet
(Unit: Millions of yen)
20th term
21st term
20th term
21st term
As of March 31, 2007
As of March 31, 2008
As of March 31, 2007
As of March 31, 2008
Amount
Amount
Amount
Amount
Account
Account
Assets
Liabilities
Current assets
45,069
45,819
Current liabilities
57,543
40,117
Fixed assets
60,824
56,305
Long-term liabilities
14,651
29,194
35,116
35,004
Total liabilities
72,194
69,312
1,348
1,236
24,359
20,064
Property and equipment
Intangible fixed assets
Investments and other assets
Net assets
32,931
32,223
Common stock
4,229
4,229
Capital reserve
5,001
5,001
Accumulated earnings
29,169
28,460
Treasury stock
(5,467)
234
(5,468)
30
Net unrealized gain on available-for-sale securities
277
112
Foreign currency translation adjustments
(42)
130
(82)
250
Shareholders’ equity
Valuation and translation adjustments
Stock warrants
Minority shareholders’ interests
Total net assets
105,894
Total assets
102,124
Total liabilities and net assets
Consolidated Statement of Cash Flows
402
307
33,699
32,812
105,894
102,124
(Unit: Millions of yen)
Account
20th term
21st term
From April 1, 2006
through March 31, 2007
From April 1, 2007
through March 31, 2008
Amount
Amount
Cash flow from operating activities
1,210
Cash flow from investing activities
(18,156)
(980)
Cash flow from financing activities
17,929
(2,552)
7,293
18
(34)
Net increase (decrease) in cash and cash equivalents
1,001
3,726
Cash and cash equivalents at beginning of period
5,486
6,371
Foreign exchange differences on cash and cash equivalents
Increase (decrease) in cash and cash equivalents due to changes in the scope of consolidation
Cash and cash equivalents at end of period
A n n u a l
(116)
(4)
6,371
10,093
F i n a n c i a l
H i g h l i g h t s
Consolidated Statement of Change in Shareholders’ Equity
(Unit: Millions of yen)
Shareholders’ equity
Valuation and translation adjustments
Minority
Stock
Total net
Current period (April 1, 2007 to March 31, 2008) Common Capital Accumulated Treasury Total shareholders’ Net unrealized gain (loss) on Foreign currency
Total valuation and warrants shareholders’ assets
interests
equity
stock
stock
reserve earnings
available-for-sale securities translation adjustments translation adjustments
Balance at March 31, 2007
277
(42)
234
4,229 5,001 29,169
(5,467) 32,931
(1,717)
(1,717)
―
(1,717)
909
―
909
(0)
―
(0)
6
6
―
6
93
93
―
93
130
402 33,699
Changes in the period
Dividend of surplus
Net income
909
Acquisition of treasury stock
(0)
Increase in accumulated earnings associated with a
decrease in the number of consolidated subsidiaries
Increase in accumulated earnings due to a decrease
in the number of affiliates in the equity method
Changes (net) in accounting items other than
shareholders’ equity in the year
Total changes in the period
Balance at March 31, 2008
―
―
(708)
4,229 5,001 28,460
―
(165)
(39)
(204)
120
(708)
(165)
(39)
(204)
(5,468) 32,223
112
(82)
30
(0)
(95)
(179)
120
(95)
(887)
250
307 32,812
04
Annual Financial Highlights
21st Annual Business Report
Results Operations by Segment
(Unit: Millions of yen)
Package Communication (PC) Business
Network Communication (NC) Business
This segment produces and sells packaged music and visual
content.
This segment conducts online digital distribution of music and
visual content, operates the membership website “mu-mo” and
fan clubs, and conducts merchandising business.
Before elimination of intersegment revenues
Before elimination of intersegment revenues
PC Business
Sales
Cost of sales
20th term
59,983
21st term
54,608
Changes
(5,374)
NC Business
Sales
Cost of sales
20th term
21st term
Changes
22,879
27,567
4,688
15,645
17,823
2,178
7,234
9,743
2,509
50,470
44,544
(5,925)
9,512
10,064
551
Gross profit margin
15.9%
18.4%
2.5%
Gross profit margin
31.6%
35.3%
3.7%
Total SG&A expenses
8,141
9,037
896
Total SG&A expenses
6,021
6,518
497
1,371
1,026
(345)
1,212
3,224
2,012
2.3%
1.9%
(0.4%)
5.3%
11.7%
6.4%
59,538
54,402
(5,136)
21,531
26,272
4,740
Gross profit
Operating income
Operating margin
Sales to external customers
Sales fell to 54,608 million yen (down 9.0% year on year)
due to a decrease in the sales of both proprietary and
consignment labels. Operating income dropped to 1,026
million yen (down 25.2% year on year) as sales promotion
and advertising expenses increased in line with the increase
in the number of titles released.
Gross profit
Operating income
Operating margin
Sales to external customers
Along with the expansion of the market of Chaku-Uta Full®,
online distribution service for cell phones, the online distribution
business showed steady growth with sales reaching 27,567
million yen (up 20.5% year on year). We recorded operating
income of 3,224 million yen (up 165.9% year on year) as a
result of the improved gross profit margin of membership
businesses due to an increase in the average revenue per
user, reduced sales promotion and advertising expenses, etc.
Live Communication (LC) Business
Content Creation (CC) Business
This segment plans and produces live entertainment, including
live concerts and other events.
This segment produces music and visual content and conducts
the management of artists and talent.
Before elimination of intersegment revenues
Before elimination of intersegment revenues
LC Business
Sales
Cost of sales
Gross profit
20th term
21st term
Changes
9,179
10,513
1,333
8,083
9,438
1,355
1,096
1,074
(22)
Gross profit margin
11.9%
10.2%
Total SG&A expenses
768
806
328
267
(60)
3.6%
2.5%
(1.1%)
8,158
9,197
1,038
Operating income
Operating margin
Sales to external customers
CC Business
Sales
Cost of sales
Gross profit
20th term
21st term
Changes
49,861
48,817
(1,043)
23,774
24,739
964
26,086
24,078
(2,007)
(1.7%)
Gross profit margin
52.3%
49.3%
(3.0%)
38
Total SG&A expenses
20,745
21,236
490
5,340
2,842
(2,498)
10.7%
5.8%
(4.9%)
10,670
12,306
1,636
Both the frequency of performances and attendance at live
concerts were up, resulting in sales of 10,513 million yen (up
14.5% year on year). Operating income, meanwhile,
recorded 267 million yen (down 18.4% year on year) due to
an increase in the cost of sales owing to the lower-thanexpected attendance at some concerts of artists invited from
abroad.
Operating income
Operating margin
Sales to external customers
Usage fee income from the PC business decreased due to
the lower sales of proprietary labels, and sales fell slightly to
48,817 million yen (down 2.1% year on year). Operating
income was 2,842 million yen (down 46.8% year on year)
due to the rise in the ratio of fixed expenses, such as content
production expense, to sales.
05
Domestic Artists
Avex Japanese Ar t i s t s
T h e
F a c e s
Main Domestic Artists (As of March 31, 2008)
Nanase Aikawa
Kumiko Aizawa
ASUKA
asphalt frustration
alan
ARIA
Yuko Ishida
UZUMAKI
m-flo
AOKI takamasa
AKANE
AKINA
AFRA & INCREDIBLE BEATBOX BAND
Itsco
AIR
Shinichi Osawa (MONDO GROSSO)
Miki Arimura
Hisayo Inamori
ASIA ENGINEER
Ai Otsuka
ACOUSTIC ASTURIAS
Namie Amuro
RIKI
ala
UNCHAIN
Eriko Imai (elly)
ASIAN2
Ari Onishi
Taro Iwashiro
EXILE
Ai Okumura
Acid Black Cherry
Beni Arashiro
Yuko Ando
Takako Uehara
Every Little Thing
Hatsune Okumura
06
Domestic Artists
21st Annual Business Report
Ossan
Lisa Ono
KATTENI-SHIYAGARE
kannivalism
Tsuyoshi Kawakami and His Moodmakers
Shunsuke Kiyokiba
KIRITO
kotringo
THE CHILL
Yusaku Kiyama
Seikyo Kim
□□□
globe
Erina Koyama
the do-nuts
Natsu Kai
COLOR
KAT
CRYSTALS
Kumi Koda
OLIVIA
camino
GANGA ZUMBA
CLARABELL
Yutaka Sado
OBLIVION DUST
Curly Giraffe
Caravan
Kumiko
COIL
Makoto Saito
THE HELLO WORKS
kaede
Misako Sakazume
THE BACILLUS BRAINS
★For details, please refer to Avex’s entertainment portal Web site.
kiyo
CLUB PRINCE
Seara Kojo
Ryuichi Sakamoto
the pillows
http://avexnet.jp/
07
The Phanky OKstra
Domestic Artists
THE LOOSE DOGS
shuji
SHORT LEG SUMMER
GIANT SWING
Jackson vibe
Suilen
Hiroshi Tamaki
Shibusa Shirazu
J
JANEL
J Soul Brothers
JAMOSA
schadaraparr
Sembello
Katsunori Takahashi
C-999
Shin Seung Hun
Ami Suzuki
Seventh Tarz Armstrong
Satomi Takasugi
ZAN
Kunio Tago
DAKOTA STAR
Janne Da Arc
Tackey & Tsubasa
DA PUMP
J-Min
JONTE
SLY MONGOOSE
SUPER JUNIOR
SOFFet
Hitomi Shimatani
Soma
Song for Memories
Shinji Tanimura
Nana Tanimura
Nobuyuki Tsujii
Anna Tsuchiya
08
Domestic Artists
2BACKKA
DE DE MOUSE
twenty4-7
21st Annual Business Report
TRF
Demon Kogure
Keisuke Toyama
Masae Nakada
BAZRA
DRM
TRICERATOPS
Tourbillon
TRIPLANE
Koji Nakamoto & Junka Midai
BACK-ON
TOKYO MOOD PUNKS
Asako Toki
AAA
Natural Radio Station
Vanilla Mood
DJ EMMA
DENSHIRENDI
Tokyo Purin
TOKYO NO.1 SOUL SET
TOHOSHINKI
Ataru Nakamura
D
D'ERLANGER
TOKYO SKA PARADISE ORCHESTRA
Tokyo 60 WATTS
Tenjochiki
Akira Terao
Tomiko Van
Joji Tokoro
dorlis
NINE MILES
Miyuki Hatakeyama
PANG
★For details, please refer to Avex’s entertainment portal Web site.
Ayumi Hamasaki
HITOE
http://avexnet.jp/
09
Domestic Artists
hitomi
100s
5050
BOO BEE BENZ
My Little Lover
MASH
Missile Innovation
Shinji Miyake
Fukumimi
BRIGHT
Hiroki Maekawa
Ken Matsudaira
Toko Furuuchi
Nanase Hoshii
BoA
Noriyuki Makihara
Akihiko Matsumoto
misono
Kazufumi Miyazawa
Tadashi Hirosawa
hiro／Coco d'Or
mink
V6
MICRON'STUFF
BOREDOMS (V∞REDOMS)
Mother Ninja
Kazuyuki Matsumoto
Alisa Mizuki
Shion Miyawaki
FULLSCRATCH
Yutaka Mizutani
miray
FAT PROP
MAX
Marty Friedman
Kayoko Mine
m.o.v.e
Daichi Miura
Dan Miyakawa
moumoon
10
Domestic Artists
MAY
Sayaka Yamamoto
21st Annual Business Report
MEGARYU
Haruko Momoi
you
MONKEY MAJIK
YAK.
U-DOU & PLATY
Yokai Project
Yayoi
Luxis
c AEI／LOVE
LOVE
RYO the SKYWALKER
LOW IQ 01
Lambsey
LISA
Ryohei
Rickie-G
Rei Mastrogiovanni
Rinka
rock-senti
Rockamenco
Remark Spirits
lecca
YMCK
WRENCH
Masaya Wada
Warp-generation
★
M
a
n
A
Good Dog Happy Men
SEAMO
a
r
g
t
TSUYOSHI
e
i
s
nangi
m
e
t
s
n
t
plane
★For details, please refer to Avex’s entertainment portal Web site.
mihimaru GT
http://avexnet.jp/
11
International Artists
Avex International Ar t i s t s
T h e
F a c e s
Main International Artists/A to Z (As of March 31, 2008)
Ak'SenT
ELLIOTT YAMIN
Jesse McCartney
Aly & AJ
BWO
Fantastic Plastic Machine
FERRY CORSTEN
Jonas Brothers
RASCAL FLATTS
THE BLACK GHOSTS
CLAZZIQUAI PROJECT
Genki Rockets
Katie Melua
STAIREO
THE FUTURE HEADS
LEZ ZEPPELIN
SUGARCULT
THE YOUNG PUNX
Cutie Mommy
GEORGE
GTS
Milry Cyrus
sugiurumn
Tiësto
Dave Rodgers
Hibiki Inamoto
PLAIN WHITE T'S
sweetbox
Vanessa Hudgens
D-SIDE
Hilary Duff
Q;indivi
Swing Out Sister
YOJI BIOMEHANIKA
12
Talents
21st Annual Business Report
A v e x
T a l e n t s
T h e
F a c e s
Main Contracted Talents (As of March 31, 2008)
Ta l e n t s
Shidou Nakamura
Koyuki
Shinobu Otake
Ryo Ishibashi
Saki Takaoka
Yuri Nakamura
Narumi Konno
Mitsuki Ooishi
Yumi Itoh
Misako Uno
Miho Kanazawa
Chisa
Hiroki Aiba
Aki Shibuya
Miho Sugiura
Maimi Okuwa
Ara
Kazuma Yamane
Sawa Yamaguchi
Hiroya Matsumoto
Rina Okamoto
Rihoko Shimomiya
Tomokazu Yoshida
Erika
Ami Takeishi
Sairi Itoh
Shion Umezawa
Tohko Miura
Mai Masaki
Misaki Yonemura
(Child star)
Kumi Takeshita
Miro Ebato
(Child star)
(Newcomer)
(Newcomer)
Manami Enosawa
Ai Sugiura
ZOE
Rina Saito
Yurika Tanaka
Shota Miyazaki
Kazushi Murakami
(Newcomer)
(Newcomer)
(Newcomer)
(Newcomer)
(Newcomer)
(Newcomer)
(Newcomer)
Sports & Culture
Kozo Takeda
Hiroyasu Shimizu
Daisuke Miura
Fumie Suguri
Yu Darvish
SEAN
Sekijyo Kaneda
(Kickboxing)
(Speed skating)
(Professional baseball)
(Figure skating)
(Professional baseball)
Beach debut producer
(Calligrapher)
★For details, please refer to Avex’s talent portal Web site.
http://aei-geinou.jp/index.html
13
Visual Works
V i s u a l
L i n e
W o r k s
U p
The main visual works
“Tsubaki Sanjuro”
“Tae Wang Sa Shin Gi”
After an absence of five
years, Bae Yong Joon
returns to the screen to play
the leading role in this latest
drama, which captured a
viewership of 37% in South
Korea. It was aired for the
first time in Japan on NHK
BS High-Vision at the end of
last year, and caused a
sensation. It has been on air
since April 5 on NHK General
Television and is enjoying
wide popularity. A historic fantasy drama, the DVD “Tae
Wang Sa Shin Gi–non-cut version” has been selling well.
An exceptionally topical
movie released for the winter
holidays. “Tsubaki Sanjuro,”
a period drama masterpiece
created by the team of
Director Akira Kurosawa and
Actor Toshiro Mifune, was
remade 45 years after its
initial release in theater in
1962 with an unchanged
original script. Yuji Oda plays
the leading role. A great
action entertainment movie
“Tsubaki Sanjuro,” which has already been released for
sale on DVD, has been highly praised.
“KIDS”
Popular novelist
Otsuichi’s novel
“ K i z u KIZ/KIDS,”
which sold over
800,000 copies,
was made into
a full film.
Audiences
shed tears over the performance of Teppei Koike
and Hiroshi Tamaki. A shocking movie that
questions in depth the “reason to live” reappears on
DVD. To be released on August 8, in three forms:
Normal Edition and Initial Limited Edition (two types).
“To LOVEru–Toraburu–”
A TV cartoon being aired
on TBS, MBS, CBC, and
BS-i, which also appears
as a popular serial in the
manga magazine for
boys Weekly Shonen
Jump. A knockabout love
comedy depicting the
love triangle of Rito Yuki,
a naïve boy; Rara, a
beautiful alien girl; and
Haruna Sairenji, whom
Rito adores, with a lot of
beautiful girls involved. The DVD series will be
released on July 25.
“Kamen Rider Kiba”
The motif of the new
Kamen Rider in 2008
is, to our surprise, a
vampire. The hero is
the child of a female
vampire and a man,
destined to transform
into Kamen Rider
Kiba. It is aired on TV
Asahi every Sunday at
8:00 a.m. The opening theme “Break the Chain”
(performed by Tourbillon) reached no. 3 in the
Oricon ranking. Music spin-off products will
continue to be produced.
“The Hunting Party”
Sarajevo in
2003. When
three
war
correspondents
looking for a
big
scoop
come face-toface with “Fox,”
a war criminal
on the run, they face an unspeakable fate. A drama
based on a true story with fine performances by
Richard Gere, Terrence Howard, and others.
Released in May 2008.
“Tokyo Sonata”
Awarded the Jury
Prize in the Un
Certain Regard
category at the
2008 Cannes
Film Festival. The
l e a d i n g
characters are
played
by
Teruyuki Kagawa, Kyoko Koizumi and Koji Yakusho. It
is the work of Director Kiyoshi Kurosawa who portrays
a contemporary Japanese family very different from his
usual world. A heart-warming and touching story that
makes one reconsider “Family ties.” To be released this
autumn at Ebisu Garden Cinema and other theaters.
“Young@Heart”
Northampton,
Massachusetts,
US. A chorus
group, whose
members’
average age is
eighty,
was
formed in 1982.
They practice
and practice for their concert. Their belief that
“Singing is living, living is singing” is both humorous
and impressive. To be released this autumn at
Cinequanon Yurakucho 1-Chome and other
theaters.
★For details, please refer to Avex’s visual works portal website:
http://avexmovie.jp/
“The Nativity Story”
How brave, strong and
powerful it is to believe in
destiny and to believe in
one’s loved one. This is the
story of a husband and wife
who rely on each other
before the birth of Jesus
Christ. The leading role is
played by Keisha CastleHughes who had been
nominated as Best Actress
in a Leading Role at the
Academy Award for her
performance in “Whale Rider.” The DVD is scheduled to
be released on June 27.
“SP ~Security Police~”
Security police that guard
Japanese and visiting
foreign VIPs like a wall.
You cannot turn away
from the speedy and
thrilling development of
the drama. The leading
role is played by Junichi
Okada, and the director is
Katsuyuki
Motohiro
responsible for many topical films including the Bayside
Shakedown series. The scriptwriter is Kazuki
Kaneshiro, a Naoki Prize winner. Co-stars Shinichi
Tsutsumi and Yoko Maki complete an exceptionally
gorgeous lineup. The DVD will be released on July 2.
“Paranoid Park”
The latest work
of Director Gus
Van Sant who
has won a
number
of
international
awards. The
film describes
with delicacy
and warmth the fluctuating feelings of a boy, between
adulthood and childhood, increasingly distanced from
reality as he struggles with feelings of guilt for the
crime he committed. Released in April 2008.
© TSG Production Company LLC
© 2007 “Tsubaki Sanjuro” Production Committee
© MMVI NEW LINE PRODUCTIONS, INC. All RIGHTS
RESERVED.
© 2007 “KIDS” Production Committee
© Kentaro Yabuki, Saki Hasemi/Shueisha, “Toraburu”
Production Committee
© 2008 Fuji Television
© 2008 Ishimori Production/TV Asahi Corporation/
ASATSU-DK INC./Toei Co., Ltd.
© 2007 IM Filmproduktions GmbH All Rights Reserved.
14
Topics
Topics
“Red Cliff,” a film commemorating the 20th anniversary of
the foundation of Avex will be released in October 2008.
Maestro John Woo has had a great
influence on Hollywood through his
outstanding action sequences. He once
again teamed up with the producer of
“M:I-2” and “Face/Off” and created a
new film, with a budget of 10 billion yen,
that is attracting worldwide attention.
Topics
21st Annual Business Report
This time he tackles Three Kingdoms, a
story that is also extremely popular in
Japan. John Woo invested 1 billion yen
from his own pocket and spent lavishly
on action scenes. The top Hollywood
experts, including the VFX team, The
Orphanage, from the “Pirates of the
Caribbean” and “Die Hard 4.0,” boasting
state-of-the-art technologies were
gathered. The legend of the greatest
love and courage in history is being
revived. With an unimaginable sense of
speed, a naval battle on a grand scale,
employing more than 2,000 ships–the
battle that no one ever thought it would
be possible to film–is getting started
now. Based on an original script, the
world of the men and women fighting for
their country at that time
is depicted realistically. It
sends out messages of
“courage,” “friendship”
and “love” to the entire
world. “Red Cliff” will
heat up the world in
October 2008. Don’t
miss it!
Founded a movie
fund jointly with
Bill Kong,
maestro of Asia
The Avex Group has placed the
establishment of joint platforms with local
partners in Asia as the core strategy in the
Group’s visual content business and is
promoting its realization. As part of this
strategy, the Group founded jointly with Mr.
Bill Kong, a top film producer in Asia, a film
fund “Irresistible Films L.P.” with the aim of
fostering new film directors, and entered
into an agreement to finance the fund.
The joint fund is expected to produce at
least twenty films during the ten-year
operating period. The Group will gain Mr.
Bill Kong’s film industry knowhow through
dispatching employees to the joint fund and
establish the basis for a visual content
business in Asia while building strong
connections with excellent directors and
creators in Asia.
★Profile of Mr. Bill Kong
Film producer and the representative of Edko
Film, an independent film distributor in Hong
Kong. He has produced many films that also
sell very well in Japan and Europe.
Major films produced include: “Crouching Tiger,
Hidden Dragon,” “Hero,” “House of Flying
Daggers,” “Windstruck,” “Fearless,” “Curse of
the Golden Flower,”and “Lust, Caution.”
Topics
★“Red Cliff”
Directed by: John Woo (“M:I-2,” “Face/Off”)
Produced by: Terence Chang (“M:I-2,” “Face/Off”), John Woo
Written by: John Woo, Chan Khan, Guo Zheng, Sheng Heyu
Action shooting by: Corey Yuen (“So Close,” “The Transporter”)
Music: Taro Iwashiro (“Memories of Murder”)
Theme song: alan (avex trax)
VFX Production: The Orphanage (“Pirates of the Caribbean,” “Die Hard
4.0”)
Starring: Tony Leung (“Hero,” “Lust, Caution”)
Takeshi Kaneshiro (“House of Flying Daggers,” “Returner,” “Sweet Rain”)
Zhang Fengyi (“The Emperor and the Assassin,” “Farewell My
Concubine”)
Chang Chen (“Crouching Tiger, Hidden Dragon,” “Happy Together”)
Vicki Zhao (“Shaolin Soccer,” “Warriors of Heaven and Earth”)
Hu Jun (“Infernal Affairs II”)
Shidou Nakamura (guest appearance) (“Letters from Iwo Jima,” “Be with
You”)
Lin Chi-ling (first appearance in film)
To be on premiere in October 2008, at Nichigeki 1 and other theaters
nationwide.
Distributed by: Toho-Towa Co., Ltd./Avex Entertainment Inc.
Provided by: Avex Entertainment Inc./Toho-Towa Co., Ltd./TV Asahi
Corporation/Yahoo Japan Corporation
Website: www.redcliff.jp
Double DVD
Ayumi Hamasaki’s first
“ayumi hamasaki
ASIA TOUR 2007
Asia tour realized! Asian
~Tour of Secret~
‘LIVE + DOCUMENTARY’”
Ayumi Hamasaki
fans in a fever!
AVBD-91536 to 7
¥5,040 (tax inclusive)
The Avex Group organized
member
artist
Ayumi
Hamasaki’s first Asia tour
“ayumi hamasaki ASIA TOUR
2007
~Tour of Secret~”
from March to June last year.
The Tour that covered the
cities of Taipei (Taipei Dome),
Hong Kong (Hong Kong
Coliseum) and Shanghai
(Shanghai Grand Theater), in
addition to cities in Japan,
reproduced in full the
performance given in Japan
with about 600 tons of
equipment and materials
transported. The visit of the
artist was treated as top news
by local media, and tickets for
every concert were sold out
immediately. The fans were so
excited that the souvenir
goods on sale at the venues
were also sold out soon after
opening. The DVD “ayumi
hamasaki ASIA TOUR 2007
~Tour of Secret~ ‘LIVE +
DOCUMENTARY’” including
live performances and a
documentary covering the tour
over more than 150 days from
the start of rehearsals to the
final day of the tour was
released in March this year
and has been greeted with
praise.
The Group plans further
performances in Asia this year
by Ayumi Hamasaki, and is
also considering overseas
concerts by other member
artists.
15
Topics
Topics
A compilation album commemorating
the 20th anniversary of foundation,
“200 Pieces in 20 Years” (tentative),
to be released!
In commemoration of the 20th anniversary of the
company’s foundation, the Avex Group will release
“200 Pieces in 20 Years” (tentative) in which it
mixed and recorded historical hits without intervals
on four CDs. The Group released “100 Pieces in 10
Years” that compiled 100 pieces upon the 10th
anniversary, and “150 Pieces in 15 Years” upon the
15th anniversary. The “200 Pieces in 20 Years”
(tentative) this time is a deluxe set with an attached
DVD that summarizes
the history of our 20
years.
Now
Printing
Topics
Four CDs + DVD
“200 Pieces in 20 Years”
(tentative)
To be released on July 23, 2008
AVCD-23590 to 3/B
¥6,480 (tax inclusive)
Topics
Short dramas associated with the CD commemorating
the 20th anniversary aired by TV Asahi!
The Avex Group has produced a set of onestory-per-day type short dramas “Otome”
that involves our member artists and talent
as performers, which are now being aired
by TV Asahi. These are original dramas
that respectively spotlight one song from
the compilation CD “200 Pieces in 20
★“Otome”
TV Asahi (Local broadcaster
for the Kanto district)
Monday through Thursday
every week
25:15 to 25:21
April 7 through September,
2008 (tentative)
Starring: Narumi Kondo,
misono, Yuri Nakamura, Ami
Suzuki, Misako Uno (AAA),
YU-KI (TRF) and plenty of
others (in alphabetical order)
YU-KI as Yumi
http://otome100.tv
Organizing “a-nation ’08 powered by
Weider in Jelly”
Topics
Presenting a complimentary
CD commemorating the 20th
anniversary to shareholders
With our heartfelt thanks to the shareholders that
support us, we are going to present this year, our 20th
anniversary, CD commemorating the 20th anniversary
“avex group 20th Anniversary Special CD” to
shareholders holding 100 or more shares.
Recorded on the double CD are
thirty pieces carefully selected from
the Japanese and Western hit library
that we have accumulated over these
twenty years. The set is of course not
for sale but for shareholders only.
Please look out for the future
special shareholder benefits that we
are going to offer.
A new Avex Artist Academy school to be
opened in Osaka
Since opening in Harajuku, Tokyo, as a training
institution for entertainers in 2001, the Avex Artist
Academy has produced a large number of
vocalists, dancers and creators and sent them into
the entertainment world. On April 1 this year, the
“Avex Artist Academy” Osaka School was opened
as the Academy’s second school.
To commemorate the opening, a special live
concert was held at Nanba Hatch on April 25. An
address was given by the principle of the school,
Masato Matsuura (CEO of the Company), and live
performances were given by AAA, Academy
graduates, and other artists. The event attracted
the attention of a lot of people.
In the future, we will open new schools
nationwide, in major cities, and aim at establishing a
system for discovering and developing new artists,
looking at advancing into the East Asian region.
Chisa as Rina
★For further details, please see the official website of “Otome”
“a-nation” is the greatest open-air live event
held annually.
The Avex Group has positioned the event
this year to commemorate the 20th anniversary
of the Group’s foundation, and decided to
organize eight performances in six cities
nationwide. Since organizing the “avex rave
’93” in 1993 that transformed the Tokyo Dome
into a one-night disco, we have organized
various such events. We started “a-nation” in
2002 with knowhow we acquired from
organizing such events and are improving it
every year. We will continue working on new
plans to make “a-nation” even more attractive.
Topics
Years” (tentative) commemorating our 20th
anniversary and that fuse the charm of the
music with a short essay depicting the
imagined scenery.
After completing the program, we will
develop it for multiple uses; for example, a
package making and digital distribution.
★Applications for entry in October 2008 are now
being accepted.
For details, please access the website of the
Avex Artist Academy:
http://aaa.avex.jp/
16
Company Outline
Company Outline
Company name
21st Annual Business Report
(As of June 22, 2008)
Board of directors
Avex Group Holdings Inc.
Head office location
3-1-30 Minami-Aoyama, Minato-ku, Tokyo 107-8577
Date of establishment
April 11, 1988
Capital
¥4,229.6 million
Number of employees
(As of March 31, 2008)
166 (1,288 employees within the Avex Group)
Note: Temporary employees are not included in the number of
employees.
Company Information
Website
http://www.avex.co.jp/
For more information on Avex
Group Holdings Inc., group
companies, press releases,
and financial statements, visit
the above URL.
Entertainment Information
Operating officers
http://avexnet.jp/
Masato Matsuura
CEO
Ryuhei Chiba
Co-CEO
Takashi Araki
COO, Senior Executive Director
Toshio Kobayashi
CFO, Senior Managing Director
Shinji Hayashi
CIO, Senior Managing Director
Hiroshi Inagaki
Managing Director
Hisahiko Iida
Managing Director
Hajime Taniguchi
Managing Director
Katsuro Oshita
Managing Director
Hiroyuki Kishi
Managing Director
Shin Ushijima
Outside Director
Minoru Onozato
Outside Director
Nobuo Kawakami
Outside Director
Shinkichi Iwata
Full-time Auditor
Kenji Nomura
Full-time Auditor
Toshiaki Katsushima
Outside Auditor
Akihiro Tamaki
Outside Auditor
Kenzo Katakura
Takahiro Miura
Akihiro Terada
For entertainment information,
such as Avex artists and
online distribution of music
and visual content, please visit
the above URL.
Tomoaki Sato
Yuko Suzuki
Masahiro Anan
Avex Group’s organizational chart
Avex Entertainment Inc.
General Shareholders Meeting
Velfarre Entertainment Inc.
Midea Inc.
Meeting of Auditors
PiX Inc.
Avex Marketing Inc.
Meeting of Board Directors
Para.TV Inc.
Corporate Executive Committee
Hatch Entertainment Inc.
Avex Live Creative Inc.
Internal Affairs
Representative Director
Avex Planning & Development Inc.
Avex Management Service Inc.
Avex Asia Holdings Limited
Corporate Planning Headquarters
Group IT Headquarters
Group Administration Headquarters
Business Planning
Chief Director Office
Planning Implementation
Investors & Public Relations
Computer Systems
General Affairs and Personnel Affairs
International Strategy
IT Administration
Financial & Accounting
Avex Asia Limited
Avex Taiwan Inc.
Avex China Co., Ltd.
Avex Hawaii, Inc.
IP Strategy
Label Mobile Inc.
Memory-Tech Corporation
avex & East, Inc.
Dwango Co., Ltd.
Chengtian Entertainment Group (International) Holding Company Limited
■Domestic consolidated subsidiaries ■Foreign consolidated subsidiaries ■Associated companies
17
Stock Data
Distribution of Shareholding
[Number of shareholders and shares by region]
(As of March 31, 2008)
[Number of shareholders]
Domestic financial
institutions
53
0.13%
Total 40,716
Financial operators
38
0.09%
Domestic
corporations
210
0.52%
Foreign investors
111
0.27%
1
0.00%
Treasury stock
Japanese individuals
and others
[Number of shares]
Domestic securities
companies
Total 46,157,810Shares
Financial operators
709,981
95 0.23%
7,293,464 shares 15.80%
939 2.31%
285,709 shares 0.62%
1,493 3.67%
487,933 shares 1.06%
1,593 3.91%
582,304 shares 1.26%
8.04%
Shikoku
region
Treasury stock
3,212,764
6.96%
21,114,179 45.74%
Kyushu
region
21,988 54.00%
32,553,330 shares 70.53%
7,457 18.31%
2,605,948 shares 5.65%
860 2.11%
5,822 14.30%
312,543 shares 0.68%
1,894,777 shares 4.10%
Number of Shareholders
(As of March 31, 2008)
Shareholder’s name
Chubu
region
Kinki
region
Chugoku
region
7,302,174 15.82%
Number od Shares
21,217
March 2004
The Master Trust Bank of Japan, Ltd. (Trust account)
2,783,600 shares
Masato Matsuura
2,242,224 shares
Toshio Kobayashi
2,242,218 shares
Specified single trustee Chuo Mitsui Asset Trust and Banking Company, Limited (one lot)
1,512,400 shares
March 2007
Bank of New York GCM Client Account JPRD AC ISG (FE-AC)
1,321,300 shares
March 2008
Chase Manhattan Bank GTS Clients Account Escrow
1,270,428 shares
Max 2000 Inc.
1,150,000 shares
T’S Capital Inc.
1,150,000 shares
25,677
March 2005
26,233
March 2006
Merrill Lynch International Equity Derivatives
968,600 shares
Japan Trustee Services Bank, Ltd. (Trust account)
968,000 shares
33,810
40,716
Stock Information
(As of March 31, 2008)
Authorized number of shares
184,631,000 shares
Number of shares outstanding
46,157,810 shares
One unit of shares
Notes:
• In addition to the above table, there are 3,212,764 treasury shares owned by the Company.
• CEO Masato Matsuura and Senior Managing Director Toshio Kobayashi serve as representative directors of Max 2000 Inc. and T’S Capital
Inc., respectively.
Stock Price/Trading Volume
Tohoku
region
Kanto
region
1.54%
Foreign investors
Hokkaido
region
Overseas
10,109,408 21.90%
3,709,304
Top Ten Shareholders
46,157,810 shares
40,303 98.99%
Domestic
corporations
Japanese individuals
and others
469 1.15%
141,802 shares 0.31%
Total 40,716
100 shares
Note: The Company owns 3,212,764 treasury shares, and the number of outstanding shares
(excluding treasury shares) is 42,945,046.
(From November 16, 2007 to May 30, 2008)
Share price (Yen)
Trading volume (Thousands of shares)
2,000
3,000
2,500
2,000
1,500
1,500
1,000
500
1,000
Nov.
2007
Dec.
2007
Jan.
2008
Feb.
2008
Mar.
2008
Apr.
2008
May
2008
0
Nov.
2007
Dec.
2007
Jan.
2008
Feb.
2008
Mar.
2008
Apr.
2008
May
2008
18
Memo for Shareholders
Important Information
21st Annual Business Report
Information
*01
Memo for Shareholders
● Accounting
year
April 1 to March 31 of the following year
● Date
March 31
● Date
September 30
for determining shareholders
eligible for year-end dividend receipt
for determining shareholders
eligible for interim dividend receipt
● Regular
general shareholders meeting
● Administrator
of shareholder registry
June of each year
Mitsubishi UFJ Trust and Banking Corp.
● Contact
Corporate Agency Division, Mitsubishi UFJ Trust and Banking
Corp.
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081
TEL: 0120-232-711 (toll free)
● Share
Branches of Mitsubishi UFJ Trust and Banking Corp.
transfer agents
● Stock exchange where Avex stock is listed
First Section of Tokyo Stock Exchange
(Security code No.7860)
● Media
Via on-line notification
URL where stock information is posted:
http://www.avex.co.jp/
where stock information is posted
(Stock information is posted in the Nihon Keizai Shimbun newspaper in the
event of accidents or other unavoidable incidents that make on-line notification
impossible.)
Information
*02
Important Information
● For
request for forms concerning shares
Please contact the administrator of the shareholder registry via telephone or the Internet (24 hours a
day) to request a form to complete stock-related procedures, such as notifying a change of registered
address, seal or name, instructing a dividend transfer, requesting purchase of odd-lot shares, or
requesting a transfer of share ownership.
0120-244-479 (Corporate Agency Division, Mitsubishi UFJ Trust and Banking Corp.)
0120-684-479 (Osaka Corporate Agency Division, Mitsubishi UFJ Trust and Banking Corp.)
http://www.tr.mufg.jp/daikou/
If you use the central securities custody and book-entry transfer system (JASDEC), please contact the
securities company with which you have an account.
● How
to receive dividends
Shareholders who have not designated a transfer account have traditionally received dividend payment
via a “Mail Transfer Payment Notice.” Following the privatization of Japan Post on October 1, 2007, such
shareholders will now receive dividend payment via “Dividend Receipt” instead of the “Mail Transfer
Payment Notice.” (As before, you can receive dividends at the savings counter of the nearest Japan Post
Bank office or post office.)
ART DIRECTOR & DESIGNER Masaki Maekawa Design Office
EDITOR Avex Planning & Development Inc.
PRINTING DIRECTOR Takara Printing Co., Ltd.
©Avex Group Holdings Inc.
Avex Group Holdings Inc.
21st Annual Business Report
'07.04.01-'08.03.31
Avex Group Holdings Inc.
Avex bldg.,
Stock Affairs Section,
Group Administration Headquarters
Avex Group Holdings Inc.
0120-39-8550 (Weekdays: 10:00 to 18:00)
70
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