Avex Group Holdings Inc.

Avex Group Holdings Inc.
22nd Annual Business Report
From April 1, 2008 to March 31, 2009
Dear Our Shareholders
The Avex Group’s Medium-Term Vision
To evolve into the “entertainment brand company”
with the strongest creative and communication capabilities in Asia
With consumer spending on the decline due to turmoil
celebrities, including online distribution, member
in the macro economy, this year has continued to be a
services, concerts, events and fan clubs, in April this
tough one in the music package market. Nonetheless,
year we es t ablished Avex Br oad c a s ting and
the Avex Group has managed to maintain its leading
Communications Inc. in conjunction with NT T
share of the market for the second consecutive year
DOCOMO Inc. and in May launched BeeTV, a video
thanks to million selling albums from three of our major
content distribution platform designed and developed
artists and strong sales of titles released by newer
in-house. BeeTV features a system that is genuinely
artists signed and cultivated since the structural
groundbreaking within the video industry, whereby
reforms of April 2005. As the current harsh market
profits are shared with the likes of video directors and
conditions are expected to continue for the time being
cast members depending on viewing figures, and is
however, it is difficult to be optimistic with regard to the
designed to improve the creative quality of video
future of the Group’s record company business.
content. It will definitely be worth keeping an eye out
With this in mind, in Januar y 20 0 9 we
for further developments in the future.
c onsolidated our exper tise and management
The Group considers returning profits to its
resources relating to other income streams and
shareholders on a long-term, comprehensive basis to
established a spin-off company in the form of Avex
be one of its top priorities from a management
Management Inc. in an effort to establish a new
standpoint. As such, we have set year-end dividends
entertainment business model capable of securing
for our 22nd year at the rate of 20 yen per share,
steady profits for the Group in the post-package era.
taking total annual dividends to 40 yen per share
The new company will employ artist and celebrity
(including interim dividends at 20 yen per share).
branding strategies based on different criteria,
We will continue to work together as a Group
including frequency of media exposure, popularity on
and forge ahead as we strive to evolve into a
karaoke playlists and influence on the fashion scene.
comprehensive enter tainment company built on
As part of the Group’s unique 360-degree model,
the aim of which is to expand the various peripheral
creative foundations. We therefore ask for your
continued support and understanding in the future.
business platforms associated with ar tists and
June 2009
Masato Matsuura
CEO
Avex Group Holdings Inc.
02
22nd Annual Business Report
Consolidated Financial Results Highlight
Consolidated Financial Results Highlight
Operating Results
Looking back at conditions in the domestic
entertainment market over the course of
the current consolidated accounting year,
the value of recorded music, including
music videos, during the period from April
2008 to March 2009 fell by 11.5% compared
to the same period the previous year
(figures published by the Recording Industry
Association of Japan (RIAJ)).
T h e o nlin e di s t r ib u t i o n m a r k e t
meanwhile remained comparatively healthy,
with fee-based online distribution sales
during the period from April to December
2008 up by 17.6% compared to the same
period the previous year (RIAJ figures).
In the video software market, overall
(Unit: million yen)
Consolidated Statement of Income
Consolidated fiscal year
ended March 31, 2008
Consolidated fiscal year
ended March 31, 2009
104,639
63,323
41,316
32,805
8,510
179
48
13
1
18
35
61
1,623
573
34
31
773
136
73
7,066
392
117,819
75,048
42,771
36,290
6,480
188
33
32
56
From April 1, 2007
to March 31, 2008
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating revenues
Interest income
Dividend income
Investment profit from investment limited partnerships
Compensation received for damages
Penalties received
Others
Non-operating expenses
Interest expenses
Commission expenses
Corporate bond issuance expenses
Investment losses by equity method
Foreign exchange losses
Other non-operating expenses
Ordinary income
Special profits
Gain on revision of previous year’s results
Gain on sale of fixed assets
Gain on sale and redemption of investment securities
Reversal of allowance for loss of business closures
Return of lease payments due to business closures
Gain on adjustments to balance sheet accounts for the previous fiscal years
Gain on cash surrender value of insurance policies
Other special profits
Special losses
Loss on sale and disposition of fixed assets
Loss on revaluation of investment securities
Amortization of goodwill
Impairment losses
Loss on change in equity
Penalties for breach of contract
Unrealized foreign exchange losses associated with previous years
Other special losses
Income before income taxes and others
Income taxes—current
Income taxes—deferred
Minority shareholders’ income (loss)
Net income (loss)
on year to 117.819 billion yen as a result of
factors such as an increase in theatrical
releases and DVD package sales in the
visual content sector. Operating income
meanwhile was down 23.9% year on year
to 6.480 billion yen as a result of factors
such as increases in the cost of sales and
sale s pr omotion and adver tisement
expenses, ordinary income also falling by
33.1% to 4.729 billion yen. Overall, the Group
recorded a net loss of 905 million yen
(compared to net income totaling 909
million yen the previous year) due to
extraordinary losses, including impairment
losses in relation to investment securities
and goodwill.
sales of video content during the period
from April 2008 to March 2009 fell by 11.2%
compared to the previous year (figures
published by the Japan Video Software
A s s o cia tion). T he numb e r o f ne x tgener a tion optical disc player s and
recorders shipped domestically during the
same period however totaled approximately
1.93 million units (figures published by the
Ja p a n Ele c tr onic s a nd In f or ma tion
Technology Industries Association), raising
hopes for the rejuvenation of the video
content market in the future.
Against this backdrop, the Group’s
consolidated sales during the current
accounting year increased by 12.6% year
―
2
20
142
113
72
4
35
2,151
44
1,887
―
6
32
143
―
37
5,307
4,279
226
(107)
909
From April 1, 2008
to March 31, 2009
―
―
65
1,938
760
148
29
912
4
83
4,729
327
154
0
73
―
―
―
33
65
3,410
67
2,601
339
95
―
―
305
1
1,646
4,049
(1,304)
(192)
(905)
(Unit: million yen)
Consolidated Performance
■
Sales
120,000
100,000
101,626
104,639
20th year
21th year
117,819
80,000
60,000
40,000
20,000
0
■
22th year
Operating income ／ Ordinary income
10,000
8,000
8,691
7,814
8,510
7,066
6,480
6,000
4,729
4,000
2,000
0
■
20th year
21th year
22th year
Net income (loss) ／
Net income or loss per share
3,000
2,000
(Million yen/yen)
3,063
90
71.33
60
909
1,000
30
21.17
0
0
(21.09)
-1,000
20th year
21th year
( 905)
22th year
-30
03
Consolidated Financial Results Highlight
(Unit: million yen)
Consolidated Balance Sheet
Consolidated fiscal year
ended March 31, 2008
March 31,2008
Assets
Current assets
Fixed assets
Property and equipment
Intangible fixed assets
Investments and other assets
Total assets
Consolidated fiscal year
ended March 31, 2009
March 31,2009
45,819
56,305
35,004
1,236
20,064
52,748
54,264
36,507
1,061
16,696
102,124
107,013
Consolidated fiscal year
ended March 31, 2008
Consolidated fiscal year
ended March 31, 2009
40,117
29,194
69,312
42,089
35,163
77,252
32,223
4,229
5,001
28,460
29,598
4,229
5,001
25,837
(5,468)
30
112
(5,469)
(187)
76
(82)
250
307
32,812
102,124
(264)
326
22
29,760
107,013
March 31,2008
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital reserve
Accumulated earnings
Treasury stock
Valuation and translation adjustments
Net unrealized again on available-for-sale securities
Foreign currency translation adjustments
Stock warrants
Minority shareholders’ interests
Total net assets
Total liabilities and net assets
(Unit: million yen)
Consolidated Statement of Cash Flows
Previous consolidated
accounting year
From April 1, 2007
to March 31, 2008
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Exchange differences on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents due to changes in the scope of consolidation
Cash and cash equivalents at the end of period
Current consolidated
accounting year
A n n u a l
From April 1, 2008
to March 31, 2009
7,293
1,718
(980)
(2,552)
(34)
3,726
6,371
(3,508)
5,067
(4)
10,093
ー
13,166
(204)
3,072
10,093
F i n a n c i a l
H i g h l i g h t s
(Unit: million yen)
Consolidated statement of changes in shareholders’ equity
Previous consolidated
accounting year
From April 1, 2007
to March 31, 2008
Shareholders’ equity
Common stock
Balance at end of previous fiscal year
Changes in the period
Total changes in the period
Balance at end of the fiscal year
Capital reserve
Balance at end of previous fiscal year
Changes in the period
Total changes in the period
Balance at end of the fiscal year
Accumulated earnings
Balance at end of previous fiscal year
Changes in the period
Dividend of surplus
Net income (loss)
Change of scope of consolidation
Change of scope of equity method
Total changes in the period
Balance at end of the fiscal year
04
Current consolidated
accounting year
Previous consolidated
accounting year
From April 1, 2008
to March 31, 2009
4,229
4,229
ー
4,229
ー
4,229
5,001
5,001
ー
5,001
ー
5,001
29,169
28,460
(1,717)
909
6
93
(1,717)
(905)
ー
ー
(2,623)
25,837
(708)
28,460
March 31,2009
From April 1, 2007
to March 31, 2008
Treasury stock
Balance at end of previous fiscal year
Changes in the period
Acquisition of treasury stock
Total changes in the period
Balance at end of the fiscal year
Total shareholders’ equity
Balance at end of previous fiscal year
Changes in the period
Dividend of surplus
Net income (loss)
Acquisition of treasury stock
Change of scope of consolidation
Change of scope of equity method
Total changes in the period
Balance at end of the fiscal year
Current consolidated
accounting year
From April 1, 2008
to March 31, 2009
(5,467)
(5,468)
(0)
(0)
(5,468)
(0)
(0)
(5,469)
32,931
32,223
(1,717)
909
(1,717)
(905)
(0)
ー
ー
(2,624)
29,598
(0)
6
93
(708)
32,223
22nd Annual Business Report
Artists Managed by Avex Group
Artists Managed by Avex Group
T h e
F a c e s
Major artists managed by Avex Group, including CD releases and online distribution
(In Japanese alphabetical order)
alan
Hisayo Inamori
Ai Otsuka
Kumi Koda
J-Min
Satomi Takasugi
UZUMAKI
Aural Vampire
Maki Goto
JANEL
Kunio Tago
GIRL NEXT DOOR
Jitterbug
DUFF
Yusaku Kiyama
THE REBOOT
Makoto Saito
JURIAN BEAT CRISIS
ASIAN2
URATA NAOYA
Ami Suzuki
2BACKKA
Every Little Thing
Seara Kojo
SHORT LEG SUMMER
SUPER JUNIOR
TRF
05
Artists Managed by Avex Group
Tenjochiki
DE DE MOUSE
AAA
Tomiko Van
Hiroki Maekawa
Tokyo Purin
Do As Infinity
hitomi
Kei Narita
BRIGHT
FACT
miray
BACK-ON
Ayumi Hamasaki
Tadashi Hirosawa
misono
TRIPLANE
TOHOSHINKI
mink
Shion Miyawaki
BoA
m.o.v.e
Artists for
whom Avex
Group
conducts
management
only
moumoon
Good Dog Happy Men
06
RUSHMORE
LOVE
SEAMO
★ For details, please refer to Avex’s entertainment portal website.
TSUYOSHI
http://avexnet.jp/
YMCK
nangi
AZU
mihimaru GT
Talents Managed by Avex Group
22nd Annual Business Report
Ta l e n t s M a n a g e d b y A v e x G r o u p
T h e
F a c e s
Major artists and sports personalities managed by and contracted to Avex Group
Talents
Shidou Nakamura
GIRL NEXT DOOR
Koyuki
Shinobu Otake
Saki Takaoka
Ryo Ishibashi
Ran Ito
Ami Suzuki
Yuri Nakamura
Narumi Konno
Maimi Okuwa
Mitsuki Ooishi
Miho Sugiura
Hiroki Aiba
Miho Kanazawa
Aki Shibuya
Sawa Yamaguchi
Mai Masaki
Kazushi Murakami
Rihoko Shimomiya
Yurika Tachibana
ZOE
Shota Miyazaki
Miro Ebato
Misaki Yonemura
Ai Sugiura
Mako Morino
Hiroya Matsumoto
Sairi Itoh
Kumi Takeshita
Tomokazu Yoshida
Mizuki Sashide
Rina Saito
Manami Enosawa
Kasumi Yamaya
Tomoaki Kanemoto
Hiroyasu Shimizu
SEAN
Sekijyo Kaneda
Yu Darvish
Yuka Fujimori
Keisuke Honda
Sports
&
Culture
(Professional baseball)
Daisuke Miura
(Professional baseball)
Yudai
(Kickboxing)
(Speed skating)
(Beach debut producer)
Eri Yoshida
Naomi Yotsumoto
(Professional baseball)
(Calligrapher)
(Professional baseball)
(Snowboarding)
(Soccer)
(Table tennis)
★ For details, please refer to Avex’s talent portal website.
http://avexnet.jp/
07
Artists on the Avex Label
Artists on the Avex Label
T h e
F a c e s
Major artists whose CD releases and online distribution are managed by Avex Group
(In Japanese alphabetical order)
Nanase Aikawa
AOKI takamasa
AFRA
Namie Amuro
Yuko Ando
"E"qual
Natsu Kai
08
Ak'SenT
Aly & AJ
Itsuka
Yuko Ishida
Hibiki Inamoto
ETERNITY∞
EXILE
Shinichi Osawa (MONDO GROSSO)
Yuka Kagiyama
AKINA
ARIA
AA=
ASIA ENGINEER
ELLIOTT YAMIN
AKANE
Trio Ohashi
KATTENI-SHIYAGARE
Ai Okumura
camino
ASA-CHANG & JUNRAY
RIKI
Acid Black Cherry
UNCHAIN
Eriko Imai (elly)
Takako Uehara
NG HEAD
m-flo
Lisa Ono
OLIVIA
COLOR
Tsuyoshi Kawakami and His Moodmakers
22nd Annual Business Report
GANGA ZUMBA
Kishidan
kiyo
Kiyoharu
Kei
Katie Melua
Tsuyoshi Kon
Seikyo Kim
Akiko Shikata
C-999
Jesse McCartney
the generous
CLARABELL
Kumiko
kotringo
COIL
THE BOOM
THE BACILLUS BRAINS
Yutaka Sado
The Phanky OKstra
Cutie Mommy
Q;indivi
Genki Rockets
Ryuichi Sakamoto
the pillows
Caravan
□□□
KEN THE 390
Misako Sakazume
THE BLACK GHOSTS
KAT
ZAN
THE YOUNG PUNX!
SUGARCULT
Hitomi Shimatani
Jackson vibe
shuji
JAMOSA
Shin Seung Hun
J
Janne Da Arc
★ For details, please refer to Avex’s entertainment portal website.
http://avexnet.jp/
09
Artists on the Avex Label
GEORGE
schadaraparr
SPEECH
JONTE
GTS
SPEED
SLY MONGOOSE
SOFFet
Soma
Tackey & Tsubasa
Hiroshi Tamaki
DA PUMP
Nobuyuki Tsujii
Akira Terao
twenty4-7
Joji Tokoro
10
Jonas Brothers
D
DJ EMMA
TOKYO SKA PARADISE ORCHESTRA
Tomita Lab
Keisuke Toyama
Dave Rodgers
TOKYO No.1 SOUL SET
TRICERATOPS
Swing Out Sister
Seventh Tarz Armstrong
Shinji Tanimura
Anna Tsuchiya
sugiurumn
Sembello
Nana Tanimura
Tiesto
His Excellency Demon Kogure
D'ERLANGER
Tokyo 60 WATTS
Asako Toki
DOBERMAN INC
dorlis
22nd Annual Business Report
Dream
Miyuki Hatakeyama
naomi&goro
hiro/Coco d'Or
Mai Fukui
MICRON'STUFF
MAX
Honey L Days
Hatsune
Vanessa Hudgens
PANG
Toko Furuuchi
Miley Cyrus
MASH
Ataru Nakamura
Ai Haruna
HITOE
Fantastic Plastic Machine
Fukumimi
Nadia Oh
BAZRA
100s
5050
My Little Lover
Ken Matsudaira
PLAIN WHITE T'S
Noriyuki Makihara
Kazuyuki Matsumoto
Vanilla Mood
Hilary Duff
PhilHarmoUniQue
V6
Yu Nakamura
Marty Friedman
★ For details, please refer to Avex’s entertainment portal website.
FERRY CORSTEN
BOREDOMS
McFLY
Marie Digby
http://avexnet.jp/
11
Artists on the Avex Label
Daichi Miura
mi-gu
Alisa Mizuki
Kazufumi Miyazawa
monokuro
MinxZone
MONKEY MAJIK
Yokai Project
Lambsey
LINDBERG
lecca
12
LISA
Monsieur Kamayatsu
Yajima Beauty Salon
Takuro Yoshida
Yayoi
YOJI BIOMEHANIKA
you
Luxis
lego big morl
LOW IQ 01
Dan Miyakawa
MEGARYU
RYO the SKYWALKER
ravex
Leyona
Kayoko Mine
May J.
Rickie-G
LUNASEA
Remioromen
Yutaka Mizutani
ROCKAMENCO
U-DOU & PLATY
RASCAL FLATTS
Ryohei
LEZ ZEPPELIN
Masaya Wada
22nd Annual Business Report
Visual Works
V i s u a l
W o r k s
The main visual works
The main visual works
Red Cliff Part II – The Decisive Battle
Onnanoko Monogatari
Onnanoko Monogatari (Girl’s Story), the autobiographical manga written
by Rieko Saibara, author of Mainichi Kaasan (Everyday Mom), has now
been made into a vibrant movie starring Eri Fukatsu. Revolving around a
36 year old manga artist who, in the face of a midlife crisis, regains the
courage to go on by recalling friends from her childhood, Onnanoko
Monogatari is a moving story that gently brightening up all the people
who used to be girls and people just in the middle of their girlhood.
Premiers are scheduled for late summer at Shibuya Cine Quinto and
Cine Quanon Yurakucho and other theaters throughout Japan.
©2009, Rieko Saibara, Shogakukan, Onnanoko Monogatari Production Committee
Red Cliff Part II is the second and final installment in the
saga that began with last fall’s smash hit Red Cliff Part I.
With Chancellor Cao Cao’s immense army poised on the
opposite shore from the Red Cliff, the allied forces led
by Zhuge Liang and Zhou Yu are struck down with
plague and food shortages. With their backs against the
wall, on the verge of collapse, the allied forces draw on
their cunning and courage to seize one last chance for
victory… The Battle of Red Cliff, the fiercest battle in the
Chronicle of the Three Kingdoms, is about finally at hand
in this the highest grossing Asian movie of all time!
Director: John Woo
Cast: Tony Leung, Takeshi Kaneshiro, Zhang Fengyi,
Chang Chen, Zhao Wei, Hu Jun, Shido Nakamura, Lin
Chi-ling
Worldwide title theme: Beyond the River, alan (avex trax)
Website: http://www.redcliff.jp/
Shugo Tenshi
©2009, Three Kingdoms, Limited. All rights reserved.
Le Grand Chef
Painter of the Wind
An explosive cooking-based
Korean drama that
stimulates all five senses, Le
Grand Chef is out on DVD
on August 7. Sung Chan
(Kim Rae-won), a master
chef with such a natural flair
for cooking that his skills are
no match for anyone else,
find himself having to face a
challenge from the owner’s son for the right to
take over the restaurant Unamjong. The addition
of a rival chef sets the scene for the ultimate
cooking battle!
An historical mystery revolving
around the real lives of two
brilliant painters, Painter of the
Wind is out on DVD on June 26.
During the reign of the Joseon
Dynasty in 18th century Korea,
the king’s favorite painter Kim
Hong-do (Park Shin-yang)
r e cognize s the talent in
newcomer Shin Yun-bok (Moon
Geun-yeong). A s they develop a deep trusting
relationship, it turns out that Yun-bok is actually a
woman who has disguised herself as a man to gain
access to the painting academy and solve the mystery
of her father’s death.
In the midst of the worst recession on record, with no money, no job
and no future, three friends race against time to rescue a girl who has
been abducted via an underground website! "Without being asked",
they sacrifice everything in an effort to solve the girl’s abduction on
their own and in the process we discover a glimmer of hope and
courage. The latest release from Director Yuichi Sato, whose movie
Kisaragi took Japan by storm, Shugo Tenshi represents a new
frontier in hero movies. Shugo Tenshi premiers at Shibuya HUMAX
Cinema, Kadokawa Cinema Shinjuku and other theaters "without
being asked" throughout Japan on June 20.
© SBS Productions Inc.
© 2009, Shugo Tenshi Production Committee
©2008, JS Pictures Inc.
0 7- GHOS T
Maimai Shinko and the Millennium-Old Magic
Milk
Originally published in Comic Zero
Sum, an animated version of the
hugely popular series 07 Ghost is
now being broadcast by a total of
13 television stations, including
Yomiuri TV, starting in April 2009.
The series has been produced by
Studio Deen, which has attracted a
large following thanks to the
exquisite yet subtle expressiveness
of its productions. 07 Ghost is a fantasy anime that revolves
around Teito as he faces extreme hardship on his quest to find
the truth. The series will be released on DVD on August 7.
M a i m a i S h i n k o, the
autobiographical work based
on the childhood of Akutagawa
Prize winning author Nobuko
Takagi, has now been made
into an anima te d movie.
Scheduled for theatrical release
in November, the movie brings
to life the colourful world of a
group of sensitive children living
strongly with smiles in the mid 1950s through animation.
Director/screenplay: Sunao Katabuchi
Production: Madhouse
On November 27, 1978 a
politician’s life was cut
shor t by an a s s a s sin’s
bullet. The death of Harvey
Milk, America’s first openly
gay public of ficial, was
regarded not as the death
of a politician however, but
as the death of a hero who
engage d the hear ts and minds of vulner able and
downtrodden members of society. Milk excelled at the 81st
Academy Awards, winning the Oscars for Best Original
Screenplay and Best Actor in a Leading Role.
© Yuki Amemiya, Yukino Ichihara, Ichijinsha, 07 Ghost Production
Committee
© 2009, Nobuko Takagi, Magazine House, Maimai Shinko
Production Committee
©2008 Focus Features LLC. All rights reserved.
★ Please refer to Avex’s visual works portal website for full details.
http://avexnet.jp/
13
Visual Works
V i s u a l
W o r k s
The main visual works（ BeeTV ）
The main visual works (BeeTV)
Getting Married to a Woman around 40 in 90 Days
SPECIAL MUSIC VIDEO
（Drama series）
（MUSIC）
★ How to access BeeTV
iMenu → Video → BeeTV
One day, a handsome 23 year old business man called
Sho Hayasaka appears in front of Kotone Ohba, a
single woman in her early forties, and asks her “will
you marry me?” That is only the beginning…
Cast: Hayato Ichihara, Naoko Iijima
12 episodes (10 minutes each), updated every Monday
SPECIAL MUSIC VIDEO offers an amazing lineup, with
unlimited access to carefully selected music videos by
featured BeeT V ar tists and new hit songs added
continually!
10 tracks (five minutes each), updated every other Monday
Tururu Summers
Azabujuban Gakuen
『和田アキ子最強バトル!』
（anime）
（talk show）
Featuring additional sketches based on the theme “things that
only I like” and “my own personal ___”, Toruru Summers
performs actual tests to find out if such claims are really true!
Cast: Summers, Yu Abiru 36 episodes (3 minutes each),
updated every Monday, Wednesday and Friday
Enter the world of Azabujuban Gakuen, a school full of quirky
students, mysterious exchange students, unusual teachers and a
whole host of other fascinating characters, and witness all manner
of goings on that are bound to make you laugh! 36 episodes (1
minute each), updated every Monday, Wednesday and Friday
Having already conquered the worlds of television and radio, now
Akiko Wada (Ako) is declaring war via your mobile phone too as
she vents her opinions on a whole host of big-name guests!
Featuring: Akiko Wada and an impressive array of guests 12
shows (3 minutes each), updated every Saturday and Sunday
Takada Suzanne
TOHOSHINKI MOOLOG
Tomoaki Ogura: I Demand to Speak to the Manager!
Introducing a brand new type of on-the-spot variety show in which
the ultimate pairing of Junji Takada and Suzanne visit companies
uninvited to brighten up their day and bring some joy to companies
and people throughout Japan! Featuring: Junji Takada, Suzanne
24 shows (five minutes each), updated every Saturday and Sunday
Updated weekly, TOHOSHINKI MOOLOG is packed full of intimate
footage of the band, featuring off-stage real-life documentary
footage so that you can get to know each of the band members and
their likes and dislikes. Featuring: TOHOSHINKI 12 shows (two
minutes each), updated every Monday
Notoriously outspoken presenter Tomoaki Ogura covers
the full range of emotions as he talks about news items
that have particularly caught his attention each week.
Featuring: Tomoaki Ogura
12 shows (5 minutes each), updated every Tuesday
Launched on May 1 as a joint venture between Avex and NTT
DOCOMO, BeeT V is the world’s first television station
broadcast exclusively to mobile phones. Unlike 1seg (“one
segment”) broadcasting and existing video websites, BeeTV
acts as a personal television that enables viewers to download
and watch any program they want, whenever they want.
Viewers get unlimited access to all programs for a monthly
charge of just ¥315!
iChannel → BeeTV
（comedy）
（variety show）
14
★ Please refer to the BeeTV website for full details.
（video blog）
http://avexnet.jp/
（edutainment）
22nd Annual Business Report
News & Topics
N e w s & To p i c s
Avex Management Inc. established
with an eye to establishing a
unique production model
In January this year, the Avex Group established Avex Management Inc. as a
new spin-off company that will assume control of talent production capabilities,
including managing artists and celebrities, from Avex Entertainment Inc.
Although we have focused primarily on managing musical artists and
produced a steady stream of top artists since the Avex Group was first
established, the purpose of this new company is to step up talent management
capabilities with regard to the likes of actors and celebrities appearing on
television, in movies and on stage and also sportsmen and women. Our aim is
to establish a truly unique production model that will generate synergy around
our core music-based operations.
By focusing on measures other than sales, including media coverage,
popularity on karaoke playlists and impact on the fashion scene (i.e. popularity),
we intend to map out optimum strategies for each artist or celebrity in an effort
to enhance their individual value.
Ayumi Hamasaki album
released in USB data format!
As par t of a special commemorative promotion to mark the 10th
anniversary of her debut as an artist, the Avex Group released Ayumi
Hamasaki’s new album in data format as a USB drive as well as the
usual CD and CD/DVD package versions. As the first time that any
recording by a Japanese artist has been sold in USB data format in
regular CD stores, the promotion attracted a great deal of attention in
the media.
With consumers coming into contact with and accessing music via
an increasingly diverse and complex range of channels, we will continue
to find new ways for people to access and enjoy new music in the future
in an effort to keep pace with shifting consumer trends rather than
clinging to existing distribution channels.
■USB Data Album: Product Details
Artist: Ayumi Hamasaki
Release date: March 25, 2009
Title: NEXT LEVEL
Retail price: ¥6,800 (inc. tax)
Content: 13 tracks, lyrics and six promotional videos, all in data format
USB capacity: 2GB (remaining space usable in the same way as a regular USB drive)
Avex WORLD AUDITION grand prize
winners announced!
Having held the grand finals of our Avex WORLD
AUDITION quest to find new ar tists, actors,
models and other new talent in Tokyo in February
this year, we have whittled down a total of 19,129
applicants to reveal the winners in each of the
seven categories.
The grand prize winner in the artist category
went to 24 year old Ko Shin from China. Having
secured a debut CD deal with the Avex Group, Ko
expressed his joy at winning the contest in fluent
Japanese, commenting that “one day I would love
to perform at the Budokan or Tokyo Dome, or
even back home in Shanghai”.
T he Avex AUDITION c onte s t ha s b e en
organized every other year since 2000, with past
winners such as dream (grand prize winner in
2000) and Kumi Koda (runner up in 2000) going on
to become successful artists. As eligibility was
extended to applicants in North America, Europe
and other Asian countries as well as Japan, this
year’s contest unearthed a whole host of hugely
talente d individuals potentially capable of
achieving international success.
Winners in each category (titles
omitted)
★Artist category
Grand prize: Ko Shin (24),
Shanghai, China
Runner up: Ryuichi Imaichi (22),
Kanagawa prefecture, Japan
Judge’s special award: Yukari
Mizoguchi (21), Kyoto prefecture, Japan
Ko Shin, grand prize winner in the artist category
★Actor/actress category
Judge’s special award: Hiroko Nishizato
(15), Okinawa prefecture, Japan
* No grand prize winner or runner up
★Kids category
Grand prize: Kirara Komine (12),
Okinawa prefecture, Japan
Runner up: Yuta Furuyashiki (10),
Kanagawa prefecture, Japan
Judge’s special award: Karen Yagishita
(9), Kanagawa prefecture, Japan
The grand prize winners in each category
15
News & Topics
Avex and OORONG-SHA establish
limited liability partnership (LLP)
Avex Ma na ge me nt Inc., a 10 0%
subsidiary of the Avex Group, and
O ORONG RECORDS Co. Ltd., a
100% subsidiary of OORONG-SHA
Co. Ltd., the company headed up by
music producer and artist Takeshi
Kobayashi, have established ORSLLP, a limited liability par tnership
revolving primarily around operations
such as artist management, music
and video production, promotion and
new artist development.
By combining the Avex Group’s
exper tise in areas such as ar tist
development, music production and
promotion with OORONG RECORDS’
own artist development and music
production capabilities, the aim of the
LLP is to create an entirely new
creative entity capable of targeting
new consumer groups.
The chemical reaction between
the completely dif ferent creative
talents brought to the table by Avex
and OORONG-SHA is already
star ting to produce hits, including
Remioromen’s album Remio Best,
which has sold more than 600,000
copies.
My Little Lover
Remioromen
PhilHarmoUniQue
lego big morl
HOUSE NATION
club events going strong!
Packaged products
Official YouTube channel
16
“I used to go clubbing when I was young, but I don’t tend to bother now
that I have a family…” In an effort to get people like that back into the
club scene, in 2007 we launched HOUSE NATION, a club event on
Sunday night that finishes before the last train.
Based around the concept of a Parisian ball during the 20s or 30s,
HOUSE NATION features sets from world-class DJs every month, with
added color provided courtesy of performers and light shows. Events
have evolved over time and are now held not just in Tokyo but also in
locations throughout Japan. The popularity of HOUSE NATION has even
spread to other countries, with regular events taking place in Beijing,
Taiwan and Seoul too.
We are continuing to establish a stronger presence for the HOUSE
NATION brand by expanding our range of activities beyond those usually
associated with club events, including releasing numerous CD titles in
conjunction with HOUSE NATION, running an official YouTube channel
and organizing DJ sets by Avex artists such as Ami Suzuki.
Outline of the Company
22nd Annual Business Report
Outline of the Company
(as of June 28, 2009)
Company Outline
Corporate name
Website
Avex Group Holdings Inc.
Head office location
3-1-30 Minami-Aoyama, Minato-ku, Tokyo 107-8577
Date of establishment
April 11, 1988
Company Information
Entertainment Information
For more information on Avex Group Holdings
Inc., group companies, press releases, and
financial statements, visit the above URL.
For entertainment information, such as Avex
artists and online distribution of music and visual
content, please visit the above URL.
http://www.avex.co.jp/
Capital
¥4,229.6 million
http://avexnet.jp/
Number of employees (as of March 31, 2009)
172 (1,344 employees within the Avex Group)
Avex Group’s organizational chart
Note: Temporary employees are not included in the number of employees.
Avex Entertainment Inc.
Masato Matsuura
CEO
Velfarre Entertainment Inc.
Ryuhei Chiba
Co-CEO
Takashi Araki
Senior Managing Director
Toshio Kobayashi
CFO, Executive Director
Shinji Hayashi
CIO, Executive Director
Hiroshi Inagaki
Director
Hisahiko Iida
Director
Hajime Taniguchi
Director
Katsuro Oshita
Director
Hiroyuki Kishi
Director
Shin Ushijima
Director
Minoru Onozato
Director
Nobuo Kawakami
Director
Shinkichi Iwata
Auditor
Kenji Nomura
Auditor
Toshiaki Katsushima
Auditor
Akihiro Tamaki
Auditor
Takahiro Miura
Yuko Suzuki
Masahiro Anan
Daisuke Shimokawa
Binyl Records Inc.
Avex Management Inc.
Avex Marketing Inc.
Para. TV Inc.
Hatch Entertainment Inc.
Avex Live Creative Inc.
Avex Planning & Development Inc.
Avex Management Service Inc.
Avex Asia Holdings Ltd.
Recochoku Co. Ltd.
Akihiro Terada
Tomoaki Sato
PiX Inc.
Foreign consolidated subsidiaries
Kenzo Katakura
Midea Inc.
Associated companies
Corporate Executives
Domestic consolidated subsidiaries
Avex Broadcasting & Communications Inc.
Avex Group Holdings Inc.
Board of Directors
Avex Hong Kong Ltd.
Avex Taiwan Inc.
Avex China Co.,Ltd.
Avex Hawaii, Inc.
Memory-Tech Corporation
avex & East, Inc.
Dwango Co., Ltd.
17
Stock Data
Stock Data
(as of March 31, 2009)
Top Ten Shareholders
Stock Information
Authorized number of shares
Shareholder’s name
184,631,000 shares
Number of shares outstanding
46,157,810 shares
One unit of shares
100 shares
Note: The company owns 3,213,420 treasury shares, and the number of outstanding
shares (excluding treasury shares) is 42,944,390.
Number of Shareholders
47,281
50,000
45,000
40,716
40,000
33,810
35,000
30,000
25,677
The Master Trust Bank of Japan, Ltd. (Trust account)
3,302,800 shares
Japan Trustee Services Bank, Ltd. (Trust account 4G)
2,762,200 shares
Masato Matsuura
2,247,824 shares
Toshio Kobayashi
2,247,818 shares
UBS AG London Asia Equities
1,434,700 shares
Goldman Sachs and Company Regular Account
1,298,383 shares
Japan Trustee Services Bank, Ltd. (Trust account)
1,215,500 shares
Max 2000 Inc.
1,150,000 shares
T’S Capital Inc.
1,150,000 shares
920,000 shares
Daiichikosho Co., Ltd.
26,233
Number of Shares
Notes:
• In addition to the above table, there are 3,213,420 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.
25,000
20,000
15,000
Number of Shareholders and Shares by Region
10,000
5,000
Total 47,281
46,157,810 shares
0
Mar. 2005
Mar. 2006
Mar. 2007
Mar. 2008
Mar. 2009
Distribution of Shareholding
[Number of
shareholders]
Total 47,281
Treasury stock
1
0.00%
Domestic financial
institutions
47
0.10%
Financial operators
29
0.06%
Domestic corporations
216
0.46%
Foreign investors
110
0.23%
46,878
99.15%
3,213,420
6.96%
Domestic financial
10,958,319
institutions
23.74%
Japanese individuals
and others
Overseas
99
0.21%
4,391,961 shares 9.52%
Tohoku region
1,071
2.27%
327,771 shares 0.71%
Hokkaido region
494
1.04%
150,607 shares 0.33%
Chubu region
6,679
14.13%
2,239,501 shares 4.85%
Chugoku region
1,740
3.68%
632,448 shares 1.37%
[Number of shares]
Treasury stock
Financial operators
Total 46,157,810
18
267,780
0.58%
Domestic corporations 3,723,154
8.07%
Foreign investors
4,435,734
9.61%
Japanese individuals
23,559,403
and others
51.04%
Kanto region
26,249
55.52%
34,401,239 shares 74.53%
Shikoku region
Kyushu region
Kinki region
3.39%
1,605
2.23%
1,054
8,290
17.53%
553,239 shares 1.20% 495,185 shares 1.07% 2,965,859 shares 6.43%
Shareholder Memo
22nd Annual Business Report
Memo for Shareholder
●
Accounting year
April 1 to March 31 of the following year
●
Date for determining shareholders eligible for year-end dividend receipt
March 31
●
Date for determining shareholders eligible for interim dividend receipt
September 30
●
Regular general shareholders meeting
June of each year
●
Administrator of shareholder registry
Mitsubishi UFJ Trust and Banking Corporation
●
Special account manager
Mitsubishi UFJ Trust and Banking Corporation
●
Contact
Corporate Agency Division, Mitsubishi UFJ Trust and Banking Corp.
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081
●
Stock exchange where Avex stock is listed
●
Media where stock information is posted
First Section of Tokyo Stock Exchange
Via on-line notification
URL where stock information is posted: http://www.avex.co.jp/
(Stock information is posted in the Nihon Keizai Shimbun newspaper in the event of
accidents or other unavoidable incidents that make on-line noti¬fication impossible.)
Notices
1. Important notes regarding the electronic share certificate system
(1) In line with the introduction of electronic share certificates, procedures such as a change of registered
address or purchase requests will now go through the account manager (securities company, etc.) that opened
the relevant account as a rule. Please consult the securities company or other provider with whom you opened
your account for further details. Please be aware that the share registry administrator (Mitsubishi UFJ Trust and
Banking Corporation) is no longer able to handle such procedures.
(2) Procedures relating to shares kept in a special account “tokubetsu
(
kouza”) will now be managed by
Mitsubishi UFJ Trust and Banking Corporation. Please consult the special account manager indicated above
(Mitsubishi UFJ Trust and Banking Corporation) for further details. Procedures will be handled by Mitsubishi UFJ
Trust and Banking head office and branches nationwide.
(3) As part of the procedure for designating a receiving bank account for dividend payments, you will now be
required to submit instructions for dividend transfer via the relevant account manager. Whereas we have
previously enclosed our own instructions for dividend transfers, we will be discontinuing this practice from now
on. Please consult the relevant account manager for further details regarding procedure for arranging transfers.
(4) Dividends that have not yet been received will be paid out by Mitsubishi UFJ Trust and Banking head office
and branches.
2. Dividend statements
Starting this year, we will be enclosing dividend statements for all shareholders eligible to receive dividends in
accordance with dividend receipts, as well as those designating a receiving account for dividend payments.
Please use your dividend statement to check that you have received the correct dividend payment and as
reference when filing your income tax return.
ART DIRECTOR & DESIGNER Masaki Maekawa Design Office ／EDITOR Avex Planning & Development ／PRINTING DIRECTOR Takara Printing Co., Ltd.
©Avex Group Holdings Inc.
19
Avex Group Holdings Inc.
22nd Annual Business Report
From April 1, 2008 to March 31, 2009
© avex
marketing
This booklet uses soybean oil ink
certified by the American Soybean
Association.
Avex Group Holdings Inc.
Avex bldg.,
3-1-30 Minami-Aoyama, Minato-ku,
Tokyo 107-8577 Japan
URL http://www.avex.co.jp/