Backstage Value Multiplier creation avex group

Backstage
Value
Multiplier
2010 Investors’ Guide
01.04.09-31.03.10
Giving Life to
a Blossoming
Crescendo
Crescendo avex group
In the closing statement to its overarching
Compliance Policy, the Avex Group embraces the
Genius and talent are merely by-products of individu-
their surroundings, witnessing the creation process
need to celebrate talent with affection, applause and
ality. If gifts are allowed to blossom and individuality
and birth of a new hit song is an inspirational expe-
admiration (discarding all sense of envy). Motivating
to rise to the fore, recognition and acclaim are the
rience. If a new release is well received and enters
our efforts to uncover, nurture and introduce a host
inevitable result. With this in mind, the Avex Group is
the charts, the sense of satisfaction and accomplish-
of gifted artists to an increasingly critical market, is
convinced that to be disliked is not in itself a final or
ment is indescribable. More than this, however, our
the fundamental principle of harnessing the unique
definitive conclusion. For every person that happens
purpose and purport is ultimately to convey that the
and defining features of each individual to ensure
to dislike a particular individual, there are many more
energy and appeal of gifted artists gives source to
maximum allure and appeal.
who feel a sense of affinity and empathy.
both an irresistible and blossoming crescendo.
“Popularity” is the polar opposite of “indifference.”
Sharing in the way artists view the world and
Top 10 Artists by Sales
RANKING
Albums
Source: Oricon Inc.
1
2
3
4
5
6
7
8
9
10
RANKING
Downloads
Source: RecoChoku Co., Ltd.
1
2
3
4
5
6
7
8
9
10
2005
2006
2007
2008
2009
ORANGE RANGE
Kumi Koda
Kumi Koda
EXILE
Arashi
Ketsumeishi
Kobukuro
Ayumi Hamasaki
Ayumi Hamasaki
EXILE
Kumi Koda
Ken Hirai
Mr. Children
B'z
TOHOSHINKI
Ayumi Hamasaki
SMAP
EXILE
Namie Amuro
B'z
Southern All Stars
Ayumi Hamasaki
KAT-TUN
Kobukuro
The Beatles
EXILE
KAT-TUN
Ai Otsuka
Arashi
GreeeeN
Mr. Children
B'z
Kobukuro
Hideaki Tokunaga
Mr. Children
Ken Hirai
Ai Otsuka
KinKi Kids
Kumi Koda
Michael Jackson
BoA
Remioromen
Arashi
DREAMS COME TRUE
Ayumi Hamasaki
KinKi Kids
Mika Nakashima
L'Arc~en~Ciel
Hikaru Utada
ayaka
2005
2006
2007
2008
2009
O-Zone
Kumi Koda
Kumi Koda
EXILE
EXILE
Ketsumeishi
Shonan no kaze
Ayumi Hamasaki
Ayumi Hamasaki
GreeeeN
BENNIE K
Remioromen
Mr. Children
B'z
Ayumi Hamasaki
ORANGE RANGE
EXILE
EXILE
Namie Amuro
Kumi Koda
ORANGE RANGE
Erika Sawajiri
KAT-TUN
Kobukuro
Ikimonogakari
REIRA starring Yuna Ito
Yuna Ito
Ai Otsuka
Arashi
Miliyah Kato
ORANGE RANGE
ayaka
Kobukuro
Hideaki Tokunaga
Kana Nishino
ORANGE RANGE
DJ OZMA
KinKi Kids
Kumi Koda
TOHOSHINKI
ORANGE RANGE
Kobukuro
Arashi
DREAMS COME TRUE
Kobukuro
AI
BONNIE PINK
L'Arc~en~Ciel
Hikaru Utada
Yusuke
Major artists whose management, CD releases and audio content distribution are undertaken by the Avex Group.
Major artists whose CD releases and audio content distribution are undertaken by the Avex Group.
1
avex group
urning
Breakthrough
Ideas
Into Reality
Backstage
Value Multiplier
2
creation
Our goal has never been to chase existing markets.
Since foundation, business as we understood it has
expansion is its unwavering commitment to maximiz-
always been about creating and driving new trends.
ing the allure and appeal of individual artists. Pro-
moting CDs is but a small component of our overall
Working from a small apartment, we began by
The force that drives the Group’s business
Sales From Online Music Distribution and
the Production-type Business
(Millions of yen)
60,000
importing and wholesaling records. After two years,
business package. For many years, we have worked
we were producing our own records and through a
to project and convey the individual charm of each
Live/concert
number of hit compilations released under the indie
artist through a variety of means. In our minds, for
Internet/mobile distribution
“avex trax” brand sparked a dance music boom
example, new platforms including live performances
in Japan. With each step forward, our horizons
and content distribution are much more than mere
expanded, opening our eyes to new and exciting
marketing tools. They provide the stage for artists to
goals. Today, after little more than two decades, we
express their unique talents and gifts.
have evolved into a comprehensive entertainment
company that boasts a vertically integrated value
new ideas, and an unwavering commitment to
chain and business model that encompasses the
maximize artist appeal, we will continue to create
discovery, development, and management of artists,
new markets and uncover fresh opportunities.
content production, and distribution.
Building on our strengths, the ability to initiate
Fan club/electronic commerce/merchandising
50,000
40,000
30,000
20,000
10,000
0
06 07 08 09 10
Years ended March 31
3
Individual
references
Driving Trends
4
Backstage
Value
Multiplier
Contents
Our business began by importing records that we
liked and selling them to stores and distributors.
Despite some success, we soon realized that our true
aspirations lay in activities that brought us in direct
contact with end users.
Direct access to more than
5
million people
This desire for face-to-face communication was
the wellspring for the launch of our record label,
our efforts to produce live performances and the
set up of a music distribution site. By increasing the
channels through which we could directly access our
Music content distribution
service membership
1.28
million members
customers, we have established the working model
for broadening the fan base that underpins and supports our business expansion.
Electronic commerce
service membership
313
thousand members
Mobile phone-based video content
distribution service membership
1.07
million members
Fan club membership
942
thousand members
MESSAGE FROM THE CEO
06
MAKING OF THE AVEX GROUP
08
SPECIAL FEATURE: THE AVEX BUSINESS MODEL
10
THE AVEX GROUP AT A GLANCE
16
REVIEW OF OPERATIONS
18
YEAR IN REVIEW
22
THE AVEX GROUP’S CSR ACTIVITIES
24
CORPORATE GOVERNANCE
26
CONSOLIDATED FINANCIAL HIGHLIGHTS
28
OPERATIONAL RESULTS BY SEGMENT
30
KEY PERFORMANCE INDICATORS
31
CORPORATE DATA AND INVESTOR INFORMATION
32
Live performance
annual attendance
1.48
million people
As of March 31, 2010
5
MESSAGE FROM THE CEO
Becoming a
Corporate Group
That Creates
a Sensation
Throughout the
World
6
Six years ago, I took the enormous leap from music producer
to company CEO. Until then, every day of my life brought new
opportunities and challenges. Mine was very much a rebellious
and fearless spirit. In the beginning, my work as CEO was an
immense struggle. I felt shackled by untold limitations. The
pressure doubled at that time, as I was also responsible for creating new hits and driving sales in my dual role as a producer.
Recently, I have come to realize that I have entered a second
stage in my evolution as CEO. I no longer think of creativity and
management in dualistic “offensive” and “defensive” terms.
Management is more of a fluid and flexible activity with both
aspects of offense and defense. Based on this understanding,
we significantly restructured our organization in April 2010.
Under this renewed organizational structure, certain activities
were transferred to operating subsidiaries and the numbers of
directors were reduced accordingly. Becoming a pure holding
company, Avex Group Holdings Inc. will now focus more on
framing Group management strategies and overseeing their
swift and effective implementation.
In drafting the Group’s future management strategies, I
would personally like to direct my energies toward “producing” employees. Whether positive or negative, my goal in
producing an artist’s work is to generate a “hit” that leaves
a lasting impression. I feel the same should apply when nurturing employees and the organization. Looking ahead, I am
dedicated to producing a corporate group that is filled with
employees who excel at creating a sensation throughout the
world and generating new business formulas and equations.
Masato Matsuura
CEO
7
MAKING OF THE AVEX GROUP
It is said that “trial and error is part
and parcel of the entertainment
business.” When we look back on the
Group’s history, the words “creation”
and “destruction” spring equally to
mind. Defying the generally accepted
notion that dance music would not
be well accepted in Japan, we came
up with a number of hit compilation
CDs to trigger the techno dance boom.
As a latecomer to the Japanese music
scene, we were given little hope of
success. Thinking outside the box,
we took full advantage of audacious
advertising methods to come up with
a million-selling hit in only our second
year of business. One after another,
we broke with convention, injecting
a breath of fresh air into the industry
by setting new standards. Looking
ahead, we intend to continue defying
stereotypes and redefining ideas to
promote and secure ongoing growth.
8
Apr.
88
Established as an importer
and wholesaler of records.
Achieved considerable
success in its focus on the
EUROBEAT genre
Sep.90
Launched the
“avex trax” label
and commenced
record production.
Produced
several original
compilation
albums
99
Dec.
Oct.04
Listed on the First Section of
the Tokyo Stock Exchange.
Listing completed at the
record pace of 14 months
from the start of over-thecounter trading
Shifted to a
holding company
structure
The Evolution of Avex’s Business Model
Avex’s Performance in Creating Smash Hits
Feb.92
Sold more than
two million copies
of the hit dance
compilation series
“Juliana’s Tokyo”
94
May
Recorded its first million
seller through “survival
dAnce,” a single CD by the
dance group “trf”
Mar.
01 Mar.05
Sold 4.5 million copies of
the hit album “A BEST” by
Ayumi Hamasaki. Ayumi
Hamasaki’s 10 original
albums achieved the top
sales ranking through to
2010
Surpassed five
million mobile
phone cumulative
downloads of
“DRAGOSTEA DIN
TEI (Koi no Maia Hi)”
Apr.05
Undertook a
structural reform
of the Group.
Commenced
in earnest
development of
the video and Asia
businesses
Jun.05
Launched “mu-mo,”
a mobile phonebased paid
membership music
delivery service
— recorded sharp
growth in its
distribution business
thereafter
Jun.07
Entered the talent
management
business.
Thereafter,
established Avex
Management
Inc. in 2009 —
commenced in
earnest artist
and talent
management
09
May
Launched “BeeTV,” a
mobile phone-based paid
membership video delivery
service
Over the 22-year period since its foundation, the Avex
Group has continued to develop, fine-tune, and improve
its business model. The Company has uncovered several
million-selling artists and met with extraordinary success.
Nevertheless, we are far from satisfied and recognize that
our true value lies in cultivating new business domains.
In this regard, the Company continues to build forwardlooking business models that initiate structural change
within the music industry. Rather than resting on our laurels, we will move resolutely forward to create new value.
avex group
07
Feb.
Surpassed one million
“mu-mo” members — the
Group’s mobile phonebased paid membership
music delivery service
Mar.10
Mar.07
Surpassed one
million in live
performance
annual attendance
— attendance
figures have
continued to
increase annually
thereafter
Jun.09
Surpassed
800,000 in fan
club members
Surpassed
one million in
registered “BeeTV”
members — the
Group’s mobile
phone-based paid
membership video
delivery service
As a user ourselves, we are confident in our ability to
recognize and capture user preferences. Our sense of creativity is also supported by a wealth of marketing ideas.
Harnessing these inherent resources to their maximum
extent, we have garnered a significant fan base and produced several smash hits that have gone on to achieve
social phenomena status. As a source of invaluable experience and confidence, each success provides a steppingstone for new business development in such fields as Asia
and also in the Video Business.
9
SPECIAL FEATURE:
THE AVEX BUSINESS MODEL
Q1
In the post package (CD) era, Avex Group Holdings
has identified the need to build a multi platform
business model. What does this entail, and what
form will this new business model take?
Shigekazu Takeuchi
CFO
Masato Matsuura
CEO
Ryuhei Chiba
CSO
Shinji Hayashi
CBO
Japan’s mobile phone music distribution market, which has continued to enjoy robust
growth over the past several years, is currently facing a major plateau. This plateau has
prompted both interest and concern as to what form the music industry is likely to take and
how it will transform in the future going forward. As it strives to become a comprehensive
“entertainment brand company,” Avex Group Holdings has worked diligently to overhaul
its business model and to promote business expansion overseas. We spoke with Masato
Matsuura, Ryuhei Chiba, Shigekazu Takeuchi and Shinji Hayashi, the Company’s CEO, CSO,
CFO and CBO, respectively, to learn more about the business model the Group has nurtured to
date and the manner in which the Avex Group plans to expand over the medium to long term.
10
A “platform” is essentially a “point of contact,” a place to
meet with users. Traditionally, our core competencies have
involved the management of artists and talents as well as
the planning and production of music and video contents.
Platforms represent a wide range of channels through
which we are able to deliver contents to users.
In specific terms, our business is currently conducted
through seven platforms: the Package Sales Platform
through which CDs and related products are marketed and
sold; the Music Distribution Platform; the Video Distribution
Platform; the Merchandising (MD) Platform through which
we plan and produce artists’ goods; the Electronic-Commerce (EC) Platform through which these goods are sold;
the Fan Club (FC) Platform, which entails fan club operation
and management; and the Event Platform through which
we plan and produce live entertainment events including
concerts and musicals. For example, the music contents of
a particular artist “A” represent one source of user contact and revenue. However, with access to and utilization
of a number of platforms, we are able to move beyond
the single CD vehicle to approach users through a variety
of channels including but not limited to online distribution
and fan-club-oriented events. This is our concept of a multi
platform business model.
Business Environment in Japan
Q2
Historically a record company, why did you
pursue this multi platform business model?
communicating with users. Without this understanding, it
would have been extremely difficult to have broken free
from a business model that focuses only on CD production. As its medium-term vision, the Company has identified the goal of “evolving into an entertainment brand
company with the strongest creative and communication
capabilities in Asia.” In order to harness our communication
capabilities, channels that allow us to directly access users
are of the utmost importance. It is this unwavering focus
on communication that has led to the Group’s integrated
value chain that brings together every facet of our business activities including the nurturing and management of
artists through content production to distribution. We are
convinced that this will continue to serve as a bridge toward diversified earnings streams.
External pressures were a major factor. The package market
was progressively shrinking and the music industry was
beset by structural change. Shifts in the market’s structure
and trends were by no means, however, the only reason
for adopting a new business model. More to the point, the
launch pad for our current multi platform model was the
simple desire to convey the appeal of our stable of artists
through multiple channels that extend well beyond the
marketing and sale of CDs.
Avex has never considered those domains outside the
package business as merely promotional tools aimed at
selling CDs. They are recognized as important channels in
Multi Platform Business Model
External Players
Package Sales
Platform
(Billions of yen)
Music Distribution
Platform
Event
Platform
Platform Layer
500Production
408
391
Content
Production
400
Management
300
362
317
FC
Platform
200
Video Distribution
Platform
100
0
Music package sales, including music videos, in Japan experienced a
substantial 12.5% decline year on year. The music package market
encompassing CDs, DVDs and related products continues to contract.
(Billions of yen)
500
422
MD
Platform
CD single
EC
Platform
06
CD album
391
362
317
300
200
100
0
05
CD single
06
07
CD album
08
Music DVD
09
Others
Calendar Year
Source: Recording Industry Association of Japan
Digital Music Distribution Sales
inyen)Japan
(Billions of
150
136
Almost 90% of music distribution sales in Japan are derived from the
112popularity and use of mobile
120 phone market. As the growing
mobile
devices with full melody download capability came to its natural lull,
90
market growth stalled after hitting a subsequent plateau.
56
60
30
100
60
07
08
Music DVD
09
Others
91
91
0
80
75
07
11
53
Video content distribution
(forecast)
12 (forecast)
IP broadcasting
Years ended March 31
Source: Yano Research Institute Ltd.
34
40
05
408
400
(Billions of yen)
Layer
422
Production of Recorded Music
in Japan
20
0
05
06
Internet downloads
Calendar Year
Source: Recording Industry Association of Japan
07
08
09
Mobile digital contents
Others
Calendar Year
Source: Recording Industry Association of Japan
Singapore
3
11
(Billions of yen)
(Billions of yen)
150
20,000 Hong Kong
6
11
Taiwan
Q3
Since the fiscal year ended March 31, 2007,
the Group has recorded four consecutive fiscal
years of earnings growth, with sales exceeding
¥100 billion. Is it safe to say that this is the
result of the shift to a new business model?
Most definitely, the shift to a new business model allowed
us to achieve this earnings growth. This is particularly true
when considering the steady contraction in the package
business. Earnings growth, however, is not the only benefit.
We have also seen three additional effects.
First, in building multiple platforms, we have created
additional sources of income outside music package sales.
We now have the potential to generate a stable revenue
stream that does not overly rely on our ability to produce a
major hit.
Second, we have seen a substantial change in the composition of our net sales. In the fiscal year ended March
31, 2005, 42% of net sales totaling ¥75,418 million was
derived from platforms outside the music package domain.
By the fiscal year ended March 31, 2010, this ratio had increased dramatically to 65% on total net sales of ¥118,142
million. Looking ahead, the industry will undoubtedly experience further contraction in the music package market,
but the Avex Group is extremely well positioned given its
diversified sales composition.
Third, the drop in package-based sales
as a proportion of the Group’s total has
contributed to a more balanced revenue
stream across the first and second halves.
Again compared with the fiscal year ended March 31, 2005, the overall balance
12
improved from 42.6% and 57.4% to
49.2% and 50.8% by the fiscal year ended
March 31, 2010.*1 Traditionally, CD sales
are concentrated toward the second half
where revenue streams become heavily
weighted. The change in the Group’s sales composition has
significantly alleviated this imbalance.
*1Actual sales data for the first and second halves of each fiscal year:
The fiscal year ended March 31, 2005: 1H ¥32,164 million 2H ¥43,254
million; the fiscal year ended March 31, 2010: 1H ¥58,128 million 2H
¥60,014 million
Q4
Putting stability concerns to one side, the
ability of companies to realize growth and the
manner in which this growth can be achieved
are coming under considerable scrutiny. This
is particularly the case given changes in the
structure of the entertainment industry.
Over the past four years, the multi platform business
model has indeed contributed to our overall stability. We
believe, however, that the model’s true value and potential lie in its ability to drive growth. By pursuing synergies
between platforms, the Group is better positioned to cultivate new users.
As a case in point, let’s take the example of an artist’s live
performance. If that performance is broadcast on BeeTV,*2
the Group’s video distribution service for
mobile phones, then that performance may
be viewed by a user who has little or no
knowledge of the artist. Synergy benefits
arise from the potential purchase of that
artist’s live tour DVD by the BeeTV viewer.
The shift to a multi platform business model allows us to introduce and deliver the
attractive services of other platforms to
users of a specified platform. This has in turn enabled us to
further expand our user base.
BeeTV is attracting high user acclaim as a video
content production and distribution service exclusive to
mobile phones. After only one year of operations, service
subscribers totaled 1.35 million as of July 31, 2010. Still in
its infancy, BeeTV is yet to provide a full return on its investment. With access to a completely new 1.35 million users,
however, the significance of BeeTV extends well beyond its
subscriber revenue contribution.
In similar fashion to the music business, original
primary contents are also being developed for the BeeTV
service. As a result, the potential exists to distribute BeeTV
contents through other platforms. Another key facet of
our multi platform business therefore is the ability to leverage a single platform’s contents to generate several levels
of earnings streams by deepening collaboration among
peripheral businesses.
*2BeeTV is a video content production and on-demand distribution
service packaged for the mobile phone environment provided by Avex
Broadcasting & Communications Inc., a joint venture formed by Avex
Entertainment Inc., a subsidiary of Avex Group Holdings Inc., and
Japan’s largest mobile phone carrier NTT DoCoMo, Inc.
(Billions of yen)
500
422
408
400
391
362
317
300
Business Environment in Japan
200
100
Q5
There are concerns that too little thought
is going into platform expansion, which
will ultimately lead to a deterioration in
profitability.
Q6
Is it safe to think of the Group’s recent
reorganization as a part of efforts to strengthen
its management structure and systems?
The decision to adopt a pure holding company structure
from April 2010 was largely based on an understanding
The Company established the Investment Committee in
that the Group had effectively completed preliminary steps
April 2010 to reinforce its risk management capabilities
to build an appropriate platform structure and would
particularly with respect to the start up of new businesses.
shortly enter a period in which earnings would accrue in
Since our founding, the Avex Group has consistently purearnest. In no shape or form is this considered a constricsued businesses of interest with a stubborn passion. As part
(Billions of yen)
tive measure. By clarifying through the holding company a
of an inherited corporate culture, we have at times
moved
500
422
clear408
set of strategies,
the Group is better placed to pursue
recklessly toward new targets. As a result, we experienced
391
362
400
synergies among platforms 317
and to move smoothly toward
the bitter pill of a poorly performing video business. Learn300
profit expansion.
ing from our past mistakes, we have adopted a structure
200
The Avex Group
and system that allows us to objectively evaluate profitabil100
boasts a wide range
ity and engage in prudent risk management.
diverse 07entertain Be that as it may, we will not shy away from 0making 05 of 06
08
09
CD album
Music DVD
subsidiaries
that Others
bold and aggressive statements. BeeTV is again a caseCDinsingle ment
Calendar Year
underpin its seven platpoint. Ignoring the common consensus that television proSource: Recording Industry Association of Japan
forms. Efforts by these
grams should be diverted for viewing through the mobile
operating
companies
phone environment, we entered uncharted waters to evento compete through
tually uncover and cultivate a fresh market. Objectivity is
the creation of original
of course a prerequisite in the evaluation of any venture’s
(Billions of yen)
services have been extremely beneficial during the Group’s
commercial viability. The Avex Group, however, is150
also de136
platform expansion
phase. Today, however, our focus has
fined by its strengths in generating growth through bold
112
120
shifted away from expansion, leaning far more toward boland audacious business development.
90
stering platform synergies. In allowing the holding com56
60
pany to focus on its oversight function, we have adopted
30
a more effective Group management structure and bol0
stered the Group’s
ability to operate
as a unified force. The
07
11 (forecast)
12 (forecast)
fiscal
year
ended
March
31,
2010
is
recognized as an adVideo content distribution
IP broadcasting
Years
ended
March
31
vance or preliminary phase in the Group’s introduction of
Source: Yano Research Institute Ltd.
a multi platform business model. Within the next 12 to 24
months, we plan to harvest the fruits of our labors through
increased investment yields and operating profits.
0
05
06
07
08
09
CD album
Music DVD
IP Broadcasting
and
VideoOthers
Calendar Year
Content Distribution
in Japan
Source: Recording Industry Association of Japan
CD single
Growth in Japan’s video distribution market is projected to surpass
¥100 billion in 2011. Of this total, the video distribution market for
mobile phones is forecast to enjoy rapid and dramatic growth surging
to ¥42 billion.
(Billions of yen)
150
136
112
120
90
(Billions
of yen)
100
60
56
80
30
53
60
0
40
20
91
91
75
07
34
11
(forecast)
Video content distribution
12 (forecast)
IP broadcasting
Years ended March 31
Source: Yano Research Institute Ltd.
0
05
06
Internet downloads
07
08
09
Mobile digital contents
Others
Calendar Year
Internet-based Business Market
Source: Recording Industry Association of Japan
in Japan
Focusing largely on e-commerce, the Internet-based business market
is projected to Singapore
experience outstanding growth climbing to ¥15 trillion
by fiscal 2015.
3
(Billions of yen)
20,000
10,000
11
6
15,000 Hong Kong
9,030
Taiwan
15,324
10,309
5,000
0
Source: Compiled by the Company
10
11
(forecast)
B2C EC
Internet advertising*
Internet auctions
Online games
Mobile contents*
15 (forecast)
Music distribution
Online settlement
*Calendar year
Years ended March 31
Source: Nomura Research Institute, Ltd.
13
Singapore
Music packages &
Q7
Would you acknowledge that the Group’s
business in Asia blossoming into a growth
driver is key to generating increased profits?
Rebuilding our overseas business, particularly throughout
East Asia, is one of this Company’s most important management tasks. It is now five years since we first entered
the Asian market in earnest. Drawing from the knowledge
that we have accumulated over this period, we will effect a
change in direction during the fiscal year ending March 31,
2011. In our efforts to adopt a profit-oriented framework,
we will endeavor to produce major hits by Japanese artists
in the region over the next one to two years while at the
same time nurturing new artists and hit songs from China.
Put simply, we will return to our roots focusing on drawing
out the allure and appeal of each individual artist.
Recognizing the error of our ways, this change in direction
acknowledges the undue focus that we placed on a “broad,
all-encompassing” approach toward success overseas. From
both the language and cultural perspectives, for example,
China is far removed from being a uniform country. The
nation is also distinguished by its disparity in income levels.
Nevertheless, in our initial foray into the market, we took a
high-handed attitude in search of that runaway hit. We have
now shifted to a strategy that is “point-oriented” and focused. Returning to what we do best, we will adopt a more
measured approach toward uncovering gifted artists and in
listening closely to the market, we plan to produce a stream
of hits.
14
Q8
The Avex Group has to date taken several
strategic steps in building its business overseas.
How do you plan to utilize these steppingstones as you effect a change in direction
toward business in Asia?
Avex Taiwan Inc. has garnered significant success as a
record company and is building a solid reputation as a creative base. While Taiwan itself is currently a small market, it
plays a substantial role in incubating hits in China. Looking
ahead, we will position Avex Taiwan as a core element of
our Asian strategy.
In analyzing China’s music market, 55% of the nation’s
annual top 20 artists come from Taiwan. Looking at the
origins of successful Taiwanese artists, five of the top 10 CD
ranked singers were discovered through audition-type programs. In addition, there are star actors and actresses who
double as singers. In looking to uncover fresh talent for the
Chinese market, audition programs and television dramas
in Taiwan are an effective source.
On this basis, we will establish and develop a production-type business within Avex Taiwan. To this end, we must
actively uncover and nurture new artists under the Avex
management label and strengthen our marketing and promotional capabilities. Over its recent past, the Avex Group
has on three occasions held an “avex China Audition,” in
search of Chinese artists to debut in Japan. In addition to
developing collaborative ties with local television stations,
we will channel the knowledge and know-how gained
through negotiations with Chinese production companies
and talent schools as well as the experience attained from
each audition to Avex Taiwan. Through these means, we
hope to bolster our overseas functions and capabilities.
Q9
What are your thoughts on the medium- to
long-term direction of business development
overseas?
In the short term, our focus is more toward producing
individual hits as opposed to building an overseas value
chain. However, from a medium-term perspective, our goal
to “evolve into the entertainment brand company with the
strongest creative and communication capabilities in Asia”
remains unchanged.
If anything, the last five years have taught us that there
is a considerable compatibility of cultures throughout East
Asia. Top Japanese artists such as Ayumi Hamasaki, for example, have a substantial adoring fan base in Taiwan and
along the coast of China, markets that are extremely sensitive to the latest fashions and trends. We can only see this
fan base continuing to grow. In addition, there are lucrative opportunities in discovering overseas artists and having
them debut in Japan. After establishing a presence through
the release of several hits, their popularity can in effect be
(Billions of yen)
150
136
112
120
90
56
Business
(Billions
of yen)Environment in Asia
60
(Billions of yen)
500
422
408
400
300
transferred or exported back to their country of origin.
BoA,
200 a marfrom Korea, is an excellent case in point. Not only
100
ket of substantial size, East Asia offers significant borderless
marketing potential based on a proven commonality
and
0
05
compatibility of fashion styles and trends. This is particuCD single
larly significant for the Avex Group which is embarking on
a path of multi platform development.
Encompassing every facet of our business activities,
including overseas business development, we are strengthening the Group’s oversight functions. In April 2010, we
391
362
317
changed the name of Avex Asia Holdings Ltd. to Avex
International Holdings Ltd. and brought Avex Hawaii, Inc.
under its umbrella. In this manner, we are working to consolidate the Group’s overseas operations. As we gain further
06
07
08
09
knowledge
the formula
required
to produce runaway hits
CD album in Music
DVD
Others
in Asia, Avex International Holdings
will put forward strateCalendar Year
Source: Recording Industry Association of Japan
gies aimed at bolstering production business activities and
in collaborating closely with bases in Taiwan, Hong Kong,
and Beijing generate cross-border hits.
40
20
91
136
07
53
(forecast)
Nationalities of AnnualYears
Top
20
ended March 31
Yano Research Institute Ltd.
Artists in ChinaSource:
in 2009
0 is recognized as a major source of hit artists enjoying
Taiwan
05 throughout
06 Greater
07 China.
08 Taiwanese
09 artists
immense popularity
Internet
Mobile
digital contents
in fact account
fordownloads
55% of the top
20 singers
on China’s Others
annual
Calendar Year
music chart.
Source: Recording Industry Association of Japan
Singapore
3
20,000
10,000
56
07
11
Video content distribution
11
6
(forecast)
12 (forecast)
IP broadcasting
Years ended March 31
Source: Yano Research Institute Ltd.
0
Taiwan
15,324
10,309
9,030
5,000
30
12 (forecast)
IP broadcasting
15,000
90
0
11
Video content
distribution
34
Hong Kong
112
120
91
75
(Billions of yen)
(Billions of yen)
150
60
100
30
80
0
60
Source: Compiled by the Company
10
11
(forecast)
15 (forecast)
Leading Artists’ Revenue Sources
*Calendar year
in Greater China
B2C EC
Internet advertising*
Internet auctions
Online games
Mobile contents*
Music distribution
Online settlement
Years ended March 31
63% of leading Chinese artists’
salesNomura
is derived
such
Source:
Research from
Institute,
Ltd.
production-type business activities as live events and appearances in commercials. Developing the production business is
clearly the key to further earnings growth.
Singapore
Music packages &
online distribution
3
37%
Hong Kong
6
11
Taiwan
63%
Production-type
business*
Source: Compiled by the Company
* Live concerts, promotional events, TV commercial appearances, etc.
Source: Compiled by the Company based on surveys conducted in
Taiwan, China, Hong Kong, and Southeast Asia
15
THE AVEX GROUP AT A GLANCE
With the aim of becoming the No.1
comprehensive entertainment company
in Asia, Avex Group Holdings promotes
vertical integration across a wide
range of activities. These activities
include discovering, nurturing and
managing artists and talent; planning
and producing music- and videorelated contents; selling packaged
products; distributing digital content;
producing concerts; merchandising;
promoting e-commerce; and managing
fan clubs. With this in mind, the Group
is committed to expanding its multi
platform entertainment business,
encompassing the full gambit of
upstream through to downstream
operations. Looking ahead, every effort
will be made to target opportunities
that yield growth in both revenues
and earnings.
16
% of Sales
Principal Activities
Music
Business
60%
Music package (CDs and DVDs)
production and sales; music distribution and publishing in Japan
and other countries
Video
Business
12%
Video content distribution and
packaging; and movie distribution
25%
Artist and talent management;
merchandising; fan club management; concert planning and
production; and overseas management and concert planning
3%
New artist development and
training; school and restaurant
management
Management/
Live Business
Other
Businesses
Avex Value Chain
Creation
Artist/Talent
Management
AMG
Communication (Platform)
Content
Production
Packaged
Content
Distribution
Non-packaged
Content
Distribution
AEI
AMI
AMI
AEI / ABC
AEI
AEI / ABC
Merchandising
Fan Clubs
Concerts
AMI
AMI
ALC
Others
APD
Avex Management Inc. = AMG Avex Entertainment Inc. = AEI Avex Marketing Inc. = AMI
Avex Live Creative Inc. = ALC Avex Planning & Development Inc. =APD Avex Broadcasting & Communications Inc. = ABC
17
REVIEW OF OPERATIONS
Music Business
Fiscal 2009 Overview and Outlook
The Music Business segment
was newly established in the
current fiscal year to bring
together portions of the Group’s
former Content Creation (CC),
Package Communication (PC)
and Network Communication
(NC) operations, lines of
business that had separately
covered the production and
distribution of music contents
as well as packaged products.
Sales Target for Fiscal 2010
(Millions of yen)
100,000
80,000
74,859
76,390
The operating environment in the fiscal
Music Business sales in fiscal 2009, the
In today’s music market of diversified
year ending March 31, 2011 is expected
fiscal year ended March 31, 2010, totaled
user preferences, the Group’s core “avex
to remain challenging with an approxi¥74,859 million, a 5.5% decrease, year
trax” record label is focused on producing
mate 10% contraction in packaged music
on year. This decline was mainly due to
artists in a variety of genres. As part of this
products. Accordingly, the outlook is for a
fewer releases by leading artists compared
effort, the Group established labels such as
flat year in the music distribution market.
to the concentrated surge in the previous
Binyl Records and ORS to produce a wider
However, owing to a greater number of
fiscal year.
range of artists and sounds not previously
scheduled new releases by transfer as well
Within individually billed-type music
heard at Avex.
as major artists, such as Ayumi Hamasaki
contents, the December 2009 launch of
In platform development, the Group
and EXILE, “mu-mo” sales are expected to
“Aisubeki Mirai e” by EXILE, which was
implemented a variety of measures to
increase slightly boosting Music Business
the group’s first new original album release
boost the number of subscribers to its musales. Furthermore, by enhancing the effiin two years, became a huge hit with over
sic distribution site called “mu-mo,” which
ciency of promotions based on ROI analyses
1.4 million albums sold. Also, the song
had temporarily stalled. These efforts inthat the Group had yet to address, Avex is
“Futatsu no Kuchibiru,” from the same
cluded on-site marketing at mobile phone
working to reduce costs and increase operalbum attracted 2.10 million and 1.22 milcarrier shops, launching “Asia♪mu-mo,”
ating income.
lion partial and full melody downloads,
a site dedicated to popular Asian artists,
respectively. Even as the industry’s indiand developing new products utilizing artvidually billed-type businesses face severe
ist portraits and logos. As a result, memcircumstances,
Avex
has
continued
to
genbership
than
Sales Target for Fiscal 2010
Sales Target
forsubscribers
Fiscal 2010increased by more
Sales
Target for Fiscal 2010
erate a number of hits.
400,000 compared to the previous fiscal
(Millions of yen)
(Millions of yen)
(Millions of yen)
the
20,000
40,000 year and exceeded 1.2 million as of5,000
end of fiscal 2009.
31,830
15,770
15,000
13,207
30,000
30,557
60,000
3,924
Fiscal 2009
Fiscal 2010
20,000
40,000
2,000
5,000
20,000
Fiscal 2009
(actual)
18
3,913
3,000
10,000
0
4,000
Fiscal 2010
(forecast)
0
10,000
Fiscal 2009
(actual)
Fiscal 2010
(forecast)
0
1,000
Fiscal 2009
(actual)
Fiscal 2010
(forecast)
0
(actual)
(forecast)
Video Business
Fiscal 2009 Overview and Outlook
The Video Business segment
was newly established in the
current fiscal year to bring
together portions of the
former CC and PC segments
whose lines of business had
separately covered video
content production through to
physical and digital distribution,
including packaging and
distribution.
0
Sales Target for Fiscal 2010
(Millions of yen)
20,000
76,390
cal 2010
(forecast)
15,770
15,000
13,207
Video Business sales in fiscal 2009 amounted
In the area of film distribution, the
Group invested in the production of the
to ¥15,770 million, growing 12.4% comJohn Woo directed film, “Red Cliff II.”
pared with the previous fiscal year. This
The movie, a general theatre release, set
increase was mainly due to the posting
a new box office record in China as a doof box office revenues of the blockbuster
mestic film, and became the highest grossfilm “Red Cliff II.” However, owing to the
ing Asian film in Japan. The movie, now
creation of a new business and prioritized
available on DVD and Blu-ray Disc, simulinvestments aimed at making it a core
taneously monopolized No. 1 and No. 2
operation, the Video Business recorded a
sales rankings, selling a combined 290,000
¥4,402 million operating loss.
copies in Japan. Furthermore, “Kuon no
The number of paying subscribers to
Kawa” (“River of Eternity”) by alan, an
Avex’s mobile phone video streaming busiAvex artist, was chosen for the movie’s title
ness BeeTV steadily increased and stood at
song. In April 2009, the song peaked at
1.35 million members as of July 31, 2010.
third place on the Oricon Weekly Singles
In addition to boosting subscriptions, the
Chart, helping to achieve record high sales
Group is also promoting the diversified
by a Chinese artist in Japan for the first
use of original video contents. As such, in
time in a decade. In this way, the Group is
December the Fuji Television Network
able for
to realize
synergistic effects with the
broadcast
BeeTV
program
“Yonjyu
Onna
Sales Target for Fiscal 2010
Sales Target
Fiscal 2010
Music Business segment.
to Kyujunichi de Kekkonsuru Houhou”
(Millions of yen)
(Millions of yen)
(“How to Marry a 40-Year-Old Woman in5,000
40,000
90 Days”), which led to the release of a
31,830
3,924
3,913
30,557
special edition DVD in April.
4,000
30,000
3,000
10,000
20,000
2,000
5,000
0
10,000
Fiscal 2009
(actual)
Fiscal 2010
(forecast)
0
During the current fiscal year, the
number of BeeTV subscribers hit 1.35
million. With this in mind, Avex plans to
further strengthen the presence of BeeTV
as a growing media source. From May
20, 2010, BeeTV began airing the popular American drama “I Heart Vampires,”
originally produced by T180 Studios, a
web content production and distribution
company of the U.S.-based Walt Disney
Company. This was not only the first time
the program was broadcast outside of the
United States, but also the first time for
direct use of the mobile phone medium
prior to television broadcast.
Also on May 20, 2010, the Group
launched a video content project in cooperation with Japan’s largest Internet
shopping mall, “Rakuten Ichiba.” Under
the project, catalogues containing popular
“Rakuten Ichiba” products are broadcast
by BeeTV. As BeeTV works toward increasing its membership to an expected 1.5
million subscribers, the Video Business will
continue to enhance contents through collaboration with other industries.
1,000
Fiscal 2009
(actual)
Fiscal 2010
(forecast)
0
Fiscal 2009
(actual)
Fiscal 2010
(forecast)
19
Management/Live Business
Fiscal 2009 Overview and Outlook
The Management/Live Business
segment was newly established
in the current fiscal year
to bring together portions
of the former CC and Live
Communication (LC) segments
whose lines of business had
separately covered artist and
talent management, fan club
operation, merchandising and
the planning of concert events.
0
Sales Target for Fiscal 2010
(Millions of yen)
40,000
31,830
13,207
30,000
30,557
Management/Live Business sales in fiscal
2009 increased 44.6%, year on year, to
¥31,830 million. This growth was driven by
the Live Business, Fan Club Business and
Merchandising, which are typically the domains of artist agencies in Japan.
In the Live Business, the number of
concert performances and attendees increased. Although packaged music sales
passed its peak, certain artists recorded
career-high turnouts in concert ticket sales.
Avex believes these results provide proof of
successful strategies by effectively responding to each artist’s stage in life.
In the Management Business, Avex
Management Inc., established in 2009 to
specialize in agent functions, was able to
gain momentum and boost advertising
Salescontract
Target revenues.
for Fiscal 2010
Fan
club
membership rose by more than
(Millions of yen)
280,000 year on year to 942,000. The busi5,000
ness has enjoyed net growth in each con3,924
secutive year3,913
since operations commenced.
4,000
3,000
20,000
2,000
10,000
0
cal 2010
(forecast)
1,000
Fiscal 2009
(actual)
20
Fiscal 2010
(forecast)
0
Fiscal 2009
(actual)
Fiscal 2010
(forecast)
Merchandising (MD) sales enjoyed a
record high, owing to an increase in the
number of concerts held and expanded
product lineups. Also, after actively promoting CD and DVD sales of non-Avex
artists at EC platform “mu-mo shop,” the
Group is now focusing on strengthening
lineups of other artist memorabilia. In December 2009, Avex began sales of products from leading artists such as Michael
Jackson and The Backstreet Boys by signing distribution agreements with Universal
Music LLC, who owns the rights to such
artists’ product sales.
As a result of integrating live communication, merchandising and fan club development operations, Avex is successfully
creating greater opportunities for growth.
In the fiscal year ending March 31,
2011, leading artists will be concentrating on recording activities as they work
toward new music releases. As such, the
number of live stage performances and
concert attendees is naturally expected to
decline. However, as the Group aims to
maintain year-on-year increases in both
sales and revenue, it will focus on product development that relies not only on
concert-related tour merchandise, but also
on packaged music-related merchandise.
Furthermore, because it is rare to find a
record company that also possesses management capabilities, which are the backbone of the entertainment industry, Avex
is confident in the success of this business
segment as a major driver of growth over
the medium term.
Other Businesses
Fiscal 2009 Overview and Outlook
Other Businesses include
the school business,
Avex Artist Academy, and
restaurant business.
0
Sales Target for Fiscal 2010
(Millions of yen)
5,000
30,557
cal 2010
(forecast)
4,000
3,913
3,924
3,000
Sales in Other Businesses in the fiscal year
under review increased 54.1% year on
year to ¥3,913 million.
In a move to withdraw from unprofitable
businesses and strengthen the business
structure, the Group announced the dissolution of its restaurant business subsidiary
Velfarre Entertainment Inc. in March 2010.
Liquidation of the subsidiary was completed in June 2010.
In the current fiscal year, Avex is working to improve profitability throughout the
Group as well as the management of underperforming businesses. Furthermore, based
on the idea that continuing to discover and
nurture popular artists and talent is the
Company’s source of competitiveness, we
will continue to strengthen human resource
development. In April 2010, the third Avex
Artist Academy was opened in Nagoya.*
We will continually strive to strengthen
competitiveness by not only focusing on
the artist and talent development business,
but also by producing talented artists from
Asia, particularly from greater China.
*See page 23 “Year in Review.”
2,000
1,000
0
Fiscal 2009
(actual)
Fiscal 2010
(forecast)
21
YEAR IN REVIEW
Robust Results in Digital Platform Activities
In the fiscal year ended March 31, 2010,
digital platform activities for mobile phones
were strong. In addition to a surge in the
number of “mu-mo” music distribution
site subscribers, which surpassed 1.2 million, the Group’s varied and diverse content
menu, including “Chaku-Melo™ (ring tone
melodies),” “Chaku-Uta® (partial melody
download)” and “Chaku-Uta Full® (full
melody download),” continue to attract
wide user acclaim. Complementing efforts
to boost performance and broaden our
user base even further, we are increasing
our portfolio of other labels while promoting synergies among the Group’s business
platforms including merchandising and fan
club management.
On par with its “mu-mo” music content activities, an area in which the Group
boasts significant expertise, the Company
has experienced remarkable results in its
BeeTV mobile phone-based paid membership video content delivery service. In addition to providing access to rarely seen
exclusive contents, BeeTV’s programming
lineup that addresses personal viewing
needs is attracting tremendous interest.
Within a year of its launch, the number of
subscribers surpassed one million. We are
confident that ample room exists for further development of the video distribution
market. Building on its existing viewing audience, dominated by women between the
ages of 20 and 30, the Group will work to
expand and diversify its subscriber base.
As a source of novel entertainment
aimed at sparking market interest, steps
were taken to successfully link “avex Idol
Audition 2010” with BeeTV promotional
efforts. Scenes from the second round of
screening conducted across seven nationwide blocks, interviews with candidates,
close coverage of “training camps” and
details of the audition process were broadcast through BeeTV. During third-round
screening, BeeTV subscribers were asked
to cast their votes, supplementing the selection process undertaken by the panel of
judges. In an effort to further boost participation, subscribers were invited to attend
the finals competition.
The new idol group will debut at the
2010 “a-nation” outdoor summer event.
Expectations with respect to the impressions and reactions generated by the idol
group at the a-nation event are high.
“avex Idol Audition 2010” Held
“avex Idol Audition 2010” was launched
in December 2009. This was the Company’s initial attempt to organize and hold
auditions with the aim of uncovering the
next hit idol group. After the start of a nationwide call for participants, the audition
attracted over 7,000 female applicants between the ages of nine and 23. Following
a screening process conducted over four
rounds, a finals competition was held on
June 12, 2010. On that day, a 12-member
fresh idol group was introduced to an enthusiastic audience.
22
Restructuring the Group’s Organization in Efforts to Promote Increased Efficiency
The Avex Group significantly restructured
its organization on April 1, 2010. The
purpose of restructure is twofold. First, in
separating the management and executive
functions, we are endeavoring to clarify
the structure and role of management and
to increase the Group’s overall operating
speed. Reorganization entails clearly identifying the authority and responsibilities of
directors, corporate executives and general
managers. To this end, operating authority
has been delegated to corporate executives. In this manner, the Group is better
positioned to respond swiftly and flexibly
to shifts in entertainment trends and preferences within an industry in which change
is the order of the day.
The second objective is to optimize the
Group’s capabilities as a whole. Restructure allows the holding company to better
focus on the formulation of Group-wide
strategies, management of common services including the Group’s IT systems, and
planning for a new business model leading to its creation and development. With
a single centralized entity responsible for
Group-wide strategic planning, we plan to
maximize the potential of our multi plat-
form business model. As another facet of
organizational restructure, we established
the Digital Strategy Office under the direct
control of the Chief Strategic Officer. With
an emphasis on oversight, we have adopted a new framework under which Group
resources can be expeditiously allocated to
business fields of strategic importance.
Looking ahead, the Group is dedicated
to strengthening its compliance structure,
nurturing the leaders of the next generation, and fortifying Group management
and operations.
addition to training programs aimed at
fine-tuning these skills, top academy performers are afforded opportunities that
only the Group can provide. These include
participation in a variety of Group presentations and events as well as access to Group
sponsored auditions on a priority basis.
Looking at the needs of those interested individuals charged with the responsibility of leading the entertainment industry
into the future, the Group works diligently
to provide a wide and diverse curriculum.
Accordingly, the Academy offers a “Kids
and Teens Course,” in an effort to help
realize the dreams and aspirations of young
children, and an “Entertainment Business
Course” that encompasses the basics of
promotion strategy and management.
In the future, plans are in place for
the Group to open additional schools in
Japan’s major metropolitan cities. We are
also considering extending these activities
to uncover and develop human resources
throughout East Asia.
Artist Academy Opened in Nagoya
The Group operates and manages the
Avex Artist Academy in its efforts to uncover and nurture the next-generation of
artists and talents. The Academy was first
opened in Tokyo in 2001 and followed by
the Osaka School in 2008. In April 2010,
a third academy was launched in Nagoya,
Japan’s third largest metropolis.
The Nagoya School boasts a unique
curriculum focusing on voice and dance
training. With an emphasis on practical
know-how, students are provided with
the skills to make an immediate impact. In
23
THE AVEX GROUP’S CSR ACTIVITIES
Leveraging its core competencies in the entertainment industry, the Avex Group looks to tackle and help
raise awareness toward such global-scale social issues as environmental protection, the eradication of
famine, and AIDS prevention. We also actively welcome company visits by junior and senior high school
students. We see this as an invaluable opportunity to address the younger generation’s curiosity in not
just the entertainment industry but also societal frameworks. In addition, the importance of copyright
and other vital issues that support the industry are introduced at the same time.
Contributing to
Society Through Music
Theme:
Environmental Protection
Theme:
The Eradication of Hunger
The “ap bank fes ‘09,” outdoor music event, was held for three days commencing July 18,
2009. Offering performances by various artists including a number from the Avex stable, this
three-day event focused on raising environmental awareness. An audience of close to 90,000
was treated to live entertaining music as well as a selection of healthy and environmentally
friendly food.
This event was organized by “ap bank,” a non-profit organization. The word “ap” was
conceived from a combination of ideas including “artists’ power” and “alternative power.”
The “ap bank” was formed through equity contributions from renowned music producers
and provides financial assistance to environmental projects while engaging in varied and diverse activities. Launched in 2005, the ap bank fes has contributed to boosting environmental
awareness among participants by selling organic food and publicly announcing details of the
amount of rubbish disposed on a real time basis. Representing the 5th such event, ap bank fes
in 2009 took further steps. Organizers stopped providing cutlery, asking visitors to bring their
own cutlery and utensils.
A succession of events in support of UN agencies aimed at eradicating famine was held
during November and December 2009. A number of the Group’s artists participated in fund
raising events.
The “Music Earthist 2009 supported by the Friends of the United Nations” event was
organized by the Friends of the United Nations Asia-Pacific, a specified nonprofit organization in charge of publications and enlightenment, dedicated to promoting the philosophy
and activities of the United Nations, in November 2009. Recognizing music as a universal
language, and a powerful tool in bridging cultures along the road to worldwide peace, artists
participated in challenging an audience of around 10,000 to take action through the rallying
catch-cry of “one plate for your neighbors!”
In December 2009, the Japan Association for the World Food
Programme in collaboration with Nikkei Inc. held a WFP charity
event. Nobuyuki Tsujii, an up-and-coming artist who is managed
by the Group, participated in the event. In 2009, he became the
first Japanese winner at the 13th Van Cliburn International Piano
Competition. Treated to a selection from the composers Claude
Debussy and Franz Liszt, the performance drew loud applause
from an audience of around 600. The proceeds of the event will
be used to help WFP’s food activities in developing countries.
24
© Yuji Horii
Actively Welcoming Company Visits by
Junior and Senior High School Students
Theme:
Education in the Prevention of AIDS
The “Act Against AIDS 2009 Live in Osaka” event was held on December 1, 2009,
recognized as World AIDS Day. Act Against Aids (AAA) was first conceived in 1993 as part of
an overall campaign to promote AIDS education. Enhancing the power inherent in organized
groups, a number of companies within the music industry, including the Avex Group, came
together to promote widespread “thought,” “education” and “action” toward the prevention of AIDS. Each year live events are held across multiple halls to collect donations for AIDS
sufferers facing social bigotry and discrimination. An artist from the Avex stable brought the
crowd to excitement and was met with loud cheers and applause.
The founders of the Avex Group all claim as one that “the Company is merely the result of
working hard at what they most enjoy.” Drawing on the hope that the younger generation
will find and do their best at something that they truly like, the Group has continued to receive visits from junior and senior high school students since 2005.
In the fiscal year ended March 31, 2010, more than 3,300 students visited the
Company’s head office to participate in interactive seminars on the entertainment industry
and the Avex Group’s corporate activities. In addition to studio tours and mini concerts by
Avex Group artists, students are provided with a first-hand look at how and where music is
made. In collaboration with the Recording Industry Association of Japan, a new program was
also introduced to both raise awareness in and promote the elimination of unlawful downloads, reproduction, and distribution of music.
A number of students expressed their dreams to become an artist who can both sing and
dance. Others acknowledged ignorance toward copyright laws and pledged greater respect
toward the creativity of artists.
25
CORPORATE GOVERNANCE
In endeavoring to achieve its medium-term vision “to evolve into the entertainment brand
company with the strongest creative and communication capabilities in Asia” the Avex Group
aims to enhance its corporate value and the value of its brands. We recognize the importance of
earning the trust of all stakeholders and accordingly approach each task with integrity. Working
to realize our vision by fulfilling our economic, environmental, and social responsibilities, we are
striving to promote transparency in every facet of our business, a timely decision-making process
and disclosure that collectively ensures statutory and regulatory compliance.
Directors, Auditors, and Corporate Executives
Official Site
(As of June 27, 2010)
Directors
CEO Masato Matsuura*
CSO Ryuhei Chiba*
CFO Shigekazu Takeuchi
Toshiaki Katsushima
CBO Shinji Hayashi*
Certified Public Accountant
Director,
Tokyo Stock Exchange Group, Inc.
Auditors
Shinkichi Iwata
pertinent details about the Group, its management and businesses,
Kenji Nomura
*
Toru Kenjo
President and Executive Officer,
Gentosha Inc.
Tomohiro Tohyama**
Attorney
Partner,
TMI Associates
**
Akihiro Tamaki**
Certified Public Accountant in the U.S.
Representative Director,
SiFA Co., Ltd.
Yuichi Sato**
Corporate
Masahiro Anan
Executives
Toshiki Shida
Certified Public Accountant
Sato Yuichi Accounting Firm
Takahiro Miura
Gen Isayama**
Partner and Joint Representative in Japan,
DCM
*Representative Director
**Outside director or outside auditor as provided for in Article 2, Item 15 and Item 16 of the Corporate Law, respectively.
26
The Company has renewed its website. In addition to outlining
we have undertaken to disclose investor relations information on
a timely basis.
Corporate Governance for the Fiscal Year Ended March 31, 2010
Principal Items
Details
Organizational structure
A company with internal auditors
Chairperson of the Board of Directors
CEO
Number of directors (number of outside directors)
11 (3)
Number of Board of Directors’ meetings held
20 times
Outside directors: Names and current titles
Shin Ushijima: Senior Partner and Attorney-at-Law, Ushijima & Partners
Minoru Onozato: Senior Managing Director, East, Inc.
Nobuo Kawakami: Chairman & CEO, Dwango Co., Ltd.
Board of Directors’ meetings:
Attendance by outside directors
Shin Ushijima
Minoru Onozato
Nobuo Kawakami
Number of auditors (number of outside auditors)
4 (2)
Number of Board of Auditors’ meetings
12 times
Outside auditors: Names and current titles
Toshiaki Katsushima: Director, Tokyo Stock Exchange Group, Inc.; Certified Public Accountant
Akihiro Tamaki: Representative Director, SiFA Co., Ltd.; Certified Public Accountant in the U.S.
Board of Auditors’ meetings:
Attendance by outside auditors
Toshiaki Katsushima
Akihiro Tamaki
12 times
12 times
Board of Directors’ meetings:
Attendance by outside auditors
Toshiaki Katsushima
Akihiro Tamaki
16 times
20 times
Directors’ and auditors’ remuneration
19 times
19 times
15 times
Aggregate remuneration paid to the 11 directors totaled ¥427 million. Of this amount ¥10 million was paid to outside directors.
Notes: 1.The remuneration paid does not include salaries and bonuses paid to three directors in their concurrent positions as Company employees.
2.The aggregate remuneration paid includes an amount totaling ¥38 million transferred to the allowance for retirement benefits for directors for the fiscal year ended
March 31, 2010.
Aggregate remuneration paid to the four auditors totaled ¥45 million. Of this amount ¥9 million was paid to outside auditors.
Independent accountant
Deloitte Touche Tohmatsu LLC
Collaboration between auditors and
independent accountant
The Company has adopted an audit structure and system comprised of two full-time and two outside auditors. Auditors consistently attend meetings of the
Board of Directors and both oversee and supervise management from an objective perspective. A Board of Auditors’ meeting is held each month. Reports
are received from the independent accountant and an exchange of opinions undertaken.
Collaboration between auditors and
internal audit departments
The Company has established the Internal Affairs Office as an integral component of its internal audit structure and system. The Internal Affairs Office is itself
comprised of three employees reporting directly to the president and representative director. Avex Group Holdings and Group companies undertake business
and operating audits, putting forward proposals aimed at addressing outstanding issues and ensuring appropriate follow-up. At the same time, reports are
submitted to the president, representative director and CEO and opinions exchanged with auditors and independent accountant.
Note: The three officers who served as outside directors throughout the fiscal year ended March 31, 2010 resigned as of June 27, 2010.
27
CONSOLIDATED FINANCIAL HIGHLIGHTS
Avex Group Holdings Inc. and Consolidated Subsidiaries
Years ended March 31
2001
For the year:
Sales
Operating income
Net income (loss)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of year
At year-end:
Net assets
Total assets
Interest-bearing liabilities
Amounts per share (yen):
Net income (loss)
Net assets
Cash dividends
Key ratios (%):
Shareholders' equity ratio
ROE
ROA
Sales
2002
80,983
7,154
3,118
4,629
(570)
(8,932)
4,556
73,896
7,015
3,648
4,813
(1,027)
(4,769)
3,539
75,418
4,269
836
5,867
653
(4,745)
5,357
31,602
58,394
1,500
34,101
73,530
16,500
30,876
64,723
13,500
32,713
62,956
10,500
30,076
64,981
9,501
301.43
1,369.35
76.00
141.40
738.83
63.00
63.49
693.89
35.00
76.95
735.28
40.00
10.22
691.34
40.00
54.1
23.6
12.0
46.4
13.5
6.7
47.7
9.6
4.5
52.0
11.5
5.7
46.3
2.7
1.3
Net Income (Loss)/
Net Income Margin
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
(%)
(%)
(%)
(Millions
(%)
(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
120,000
120,000
120,000
120,000
10,000
10,000
10,000
10,000
10
10
100,000
100,000
100,000
100,000
8,0008,0008,0008,000
8
8
6,0006,0006,0006,000
6
6
60,000
60,000
60,000
60,000
20,000
20,000
20,000
20,000
0
4,0004,0004,0004,000
4
4
2,0002,0002,0002,000
2
2
0
0
0
06 0607 0607080607080907080910080910 0910
0
10
0
06
0
06
07
0
06
07
08
06
07
08
09
07
08
09
10
08
09
10
0
09
10
(Yen) (Yen) (Yen) (Yen)
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
(%)
Net Income (Loss) per Share
(%)
(%)
(%)(Yen)
(%)(Yen) (Yen) (Yen)
5,000
10 5,000
10 5,0005,000
5
5
5100 5100 100 100
4,000
8 4,000
8 4,0004,000
4
4
4 80 4 80
3,0003,0003,0003,000
6
6
2,0002,0002,0002,000
4
4
1,0001,0001,0001,000
3
3
3
2 02 0
0
0
0 -1,000
0 -1,000
0 -1,000
-1,000
10
06 06
07 06
07
08
Operating
Operating
income
Operating
income
(left)
Operating
income
(left) income
(left) (left)
Operating
Operating
income
Operating
income
margin
Operating
income
margin
(right)income
margin
(right) margin
(right) (right)
28
2005
82,455
9,797
4,443
7,428
(23,969)
13,251
9,510
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
40,000
40,000
40,000
40,000
2004
83,381
12,435
6,970
4,926
(6,387)
(1,121)
12,693
Operating Income/
Operating Income Margin
80,000
80,000
80,000
80,000
2003
06
07
08
09
07
08
09
10
60
40
3
80
60
60
60
40
40
40
20
20
20
0
0
0
2
2
2
1
1
1
0
0
0 -20 0 -20 -20 -20
20
0
2
80
1
-1 -1 -1 -40-1 -40 -40 -40
08
09
10 09
10 10
06 0607 0607080607080907080910080910 0910
Net income
Net income
(loss)
Net(left)
income
(loss)
Net(left)
income
(loss) (left)
(loss) (left)
Net income
Net income
margin
Net income
margin
(right)
Net income
margin
(right) margin
(right) (right)
(%) (Millions
(%) (Millions
of(%)
yen)
(Millions
of yen)
(Millions
of yen) of yen)
(%)
(%)
(%) (%)
(%) (%)
(%)
(%)
10
Millions of yen
2006
89,783
8,650
4,478
3,450
(11,644)
8,275
5,486
33,446
83,826
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
19,500
120,000
120,000
120,000
120,000
100,000
100,000
100,000
100,000
93.79
768.32
80,000
80,000
80,000
80,000
40.00
60,000
60,000
60,000
60,000
40,000
40,000
40,000
40,000
39.9
20,000
20,000
20,000
20,00014.1
0
0
0
0 6.0
06
2007
2008
101,626
8,691
3,063
1,210
(18,156)
17,929
6,371
2009
104,639
8,510
909
7,293
(980)
(2,552)
10,093
117,819
6,480
(905)
1,718
(3,508)
5,067
13,166
33,699
32,812
105,894
102,124
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
(%)
39,000
38,175
(%)
10,000
10,000
10,000
10,000
10
10
8,000
8,0008,0008,000
71.33
21.17 8
751.05
6
40.00
8
4,0004,0004,0004,000
4
4
31.3
2,0002,0002,0002,000
9.2
3.2
0
0
0
0
31.6
2.8 2
0.9 0
772.31
6,0006,0006,0006,000
40.00
0607 0607080607080907080910080910 0910
10
06
06
07
06
07
08
06
07
08
09
07
08
09
10
08
09
10
6
09
10
118,142
5,566
975
9,093
(2,572)
(9,982)
9,717
29,760
107,013
(%)
(Millions
(%)
(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
45,069
27.5
2
2 02 0
0
0
(2.9)
(0.8)
0 -1,000
0 -1,000
0 -1,000
-1,000
10
06
06
07
06
07
08
(%) (Millions
(%) (Millions
of(%)
yen)
(Millions
of yen)
(Millions
of yen) of yen)
800 800 800 800
40,000
40,000
40,000
40,000
16
16 120,000
16 120,000
16 120,000
120,000
30,000
30,000
30,000
30,000
12
12
20,000
20,000
20,000
20,000
8
8
10,000
10,000
10,000
10,000
0
0
0
0
06 0607 0607080607080907080910080910 0910
0
0
10
06
06
07
06
07
08
06
07
08
09
07
08
09
10
80
80
4
4
4
22.72
60 60
3 668.82
3
3
3
40
40
40.00
2
2
2
2
20
1
0
06
07
08
09
07
08
09
10
1
1
20
80
80
60
60
40
40
20
20
1
30.4
0
0
0
0
03.4 0 -20 0 -20 -20 -20
-11.0-1 -40-1 -40 -40 -40
-1
08
09
10 09
10
10
06
0607 0607080607080907080910080910 0910
(%)
(%) (%)
(%) (%)
(%)
(%)
6
6
6 40 6 40
40
40
12 12
80,000
80,000
80,000
80,000
4
4
4 30 4 30
30
30
2
2
2 20 2 20
20
20
4
8
8
40,000
40,000
40,000
40,000
4
4
4
0
0
0
0
0 10 0 10
10
10
0
-4 -4 -4
08
09
10 09
10 10
Shareholders'
Shareholders'
equity
Shareholders'
(left)
equity
Shareholders'
(left)
equity (left)
equity (left)
ROE (right)
ROE (right)
ROE (right)
ROE (right)
0
0
-4
0
0
0
06
06
07
06
07
08
06
07
08
09
07
08
09
10
10
Shareholders’ Equity Ratio
(%)
400 400 400 400
0
(Yen) (Yen)
5100 5100 100 100
Net income
Net income
(loss)
Net(left)
income
(loss)
Net(left)
income
(loss) (left)
(loss) (left)
Net income
Net income
margin
Net income
margin
(right)
Net income
margin
(right) margin
(right) (right)
Total
Assets/ROA
(%)
0
5
4
684.89
3,0003,0003,000
3,000
6
6
40.00
2,0002,0002,0002,000
4
4
1,0001,0001,0001,000
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
200 200 200 200
5
4,000
4,000
8 4,000
8 4,000
(21.09)
(Yen) (Yen) (Yen) (Yen)
600 600 600 600
30,266
94,593
(%)
(%)
(%)(Yen)
(%)(Yen)
34,813
5,000
10 5,000
10 5,0005,000
Operating
Operating
income
Operating
income
(left)
Operating
income
(left) income
(left) (left)
Operating
Operating
income
Operating
income
margin
Operating
income
margin
(right)income
margin
(right) margin
(right) (right)
Shareholders’
Equity/ROE
Net Assets per Share
2010
-2 -2 -2
08
09
10 09
10 10
0-2
0
0
0
06 0607 0607080607080907080910080910 0910
10
Total assets
Total(left)
assets
Total(left)
assets
Total(left)
assets (left)
ROA (right)
ROA (right)
ROA (right)
ROA (right)
29
OPERATIONAL RESULTS BY SEGMENT
Years ended March 31
Music Business Sales
Management/
Live Business Sales
Video Business Sales
Other Businesses Sales
(Millions
of yen)
(Millions
of yen) of yen)
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
(Millions(Millions
of yen)
(Millions
of yen)
(Millions
of yen) of yen)
(Millions(Millions
of yen)
80,000
80,000
80,000
80,000
20,000
20,000
20,000
20,000
30,000
30,000
30,000
30,000
3,0003,0003,0003,000
25,000
25,000
25,000
25,000
2,5002,5002,5002,500
20,000
20,000
20,000
20,000
2,0002,0002,0002,000
15,000
15,000
15,000
15,000
1,5001,5001,5001,500
10,000
10,000
10,000
10,000
1,0001,0001,0001,000
5,0005,0005,0005,000
500 500 500 500
60,000
60,000
60,000
60,000
40,000
40,000
40,000
40,000
20,000
20,000
20,000
20,000
0
15,000
15,000
15,000
15,000
10,000
10,000
10,000
10,000
5,0005,0005,0005,000
0
0
0
06 0607 0607080607080907080910080910 0910
0
10
Music distribution
Music distribution
Music
distribution
Music package
Music package
Music package
Music distribution
Music
package
Rights-based
Rights-based
business
Rights-based
business
Others Others Others
Rights-based
business
Othersbusiness
In the Music Business, which accounts for over
50%(%)
of the
(%)Company’s
(%)
(%) consolidated net sales,
Avex continues
to
maintain
stable revenue
100 100 100 100
growth despite persistent harsh operating
conditions in the music package market as a
whole. Music distribution sales remain firm
80 80 80
80 steadily,
improving
with potential to generate
stable earnings particularly where rights are
held over music contents.
60 60 60 60
0
0
0
06 0607 0607080607080907080910080910 0910
Video package,
Video
package,
Video
boxvideo
office
package,
boxvideo
office
boxvideo
office video
Video package,
box office
Video distribution
Video distribution
Video distribution
Video distribution
0
10
0
0
0
06 0607 0607080607080907080910080910 0910
0
10
0
0
0
06 0607 0607080607080907080910080910 0910
Since entering the video business in earnest in
Harnessing the Group’s unique and inherent
In fostering new artists, the Company currently
process of (Thousands
talent
production
function
takes(Thousands
maintains
a of
domestic
(Thousands
of (Thousands
people)
of people)
of
people) strengths, Avex (Thousands
of (Thousands
people)
of people)
people) network of three Avex
of (Thousands
people)
of (Thousands
people)
trial and
error
with
respect
to
content
acquisifull
advantage
of
its
wide-ranging
rights
over
Artist
Academies.
Buoyed by the steady increase
80 80 80 80
1,0001,0001,0001,000
1,5001,5001,5001,500
tion and production investment. In the fiscal
individual artist’s performance and activities.
in student numbers, the Company plans to
year ended March 31, 2009, the box-office hit
In addition to sharp growth in merchandising
expand its bases of operations.
“Red Cliff” recorded receipts exceeding ¥10
and fan club sales, the Company recorded an
800 800
1,2001,2001,2001,200
800 800
billion. BeeTV, the Company’s mobile phone
historic high in Live Business sales for the fiscal
60 60 60 60
video distribution business launched in the fiscal
year ended March 31, 2010.
year under review is experiencing robust results.
900 900 900 900
600 600 600 600
2005,(Millions
the
Company
has
adopted a
(Millions
of downloads)
(Millions
of downloads)
of downloads)
(Millions
of
downloads)
Notes:1. Business results data up to the fiscal year ended March 31, 2010 has been restated in line with the reorganization of business segments effective from the fiscal year ending March 31, 2011.
40 eliminating
40
2. Sales data above reflects sales to external customers
is after
intra-Group sales or transfers among segments.
40and40
40
40
40
10
Live concerts
Live concerts
Live &
concerts
Artist
talent&Artist
management
talent&management
talent management
Live concerts
Artist
talent&Artist
management
Merchandising
Merchandising
Merchandising
clubFan
Others
clubOthers Others
Merchandising
Fan clubFan clubFan
Others
40
400 400 400 400
30
20
20
20
20
600 600 600 600
20,000
20,000
20,000
20,000
10,000
10,000
10,000
10,000
1,0001,0001,0001,000
5,0005,0005,0005,000
500 500 500 500
5,0005,0005,0005,000
KEY PERFORMANCE INDICATORS
Years ended March 31
0
0
0
0
06 0607 0607080607080907080910080910 0910
The Avex Group’s Share in
Sales of the Japanese Music
Package Business
0
10
Music distribution
Music distribution
Music distribution
Music
Music
distribution
package
Music package
Music package
Music package
Rights-based
Rights-based
business
Rights-based
business
Rights-based
business
Othersbusiness
Others Others Others
(%)
(%)
(%)
(%)
100 100 100 100
80
60
80
60
80
60
(Millions(Millions
of downloads)
(Millions
of downloads)
(Millions
of downloads)
of downloads)
80
80
80
80
60
60
60
60
40
40
40
20
20
20
20
20
0
0
0
06 0607 0607080607080907080910080910 0910
Avex Group
Avex Group
Avex Group
Avex Group
Other labels
Other labels
Other labels
Other labels
The Avex Group consistently maintains a top
level share of the Music Package Business
market. We make every effort to harness new
marketing methods utilizing for example digital
promotions to showcase the appeal of individual artists with the aim of addressing the needs
of loyal CD purchasers.
0
10
20
40
20
0
10
Fan Club Membership
0
0
0
06 0607 0607080607080907080910080910 0910
10
BeeTV Membership
(Thousands
(Thousands
of (Thousands
people)
of (Thousands
people)
of people)
of people)
(Thousands
(Thousands
of (Thousands
people)
of (Thousands
people)
of people)
of people)
1,0001,0001,0001,000
1,5001,5001,5001,500
800 800 800 800
1,2001,2001,2001,200
600 600 600 600
900 900 900 900
400 400 400 400
600 600 600 600
200 200 200 200
300 300 300 300
60
40
0
0
0
06 0607 0607080607080907080910080910 0910
Live concerts
Live concerts
Live concerts
Live &
concerts
Artist
Artist
talent&Artist
management
talent&Artist
management
talent&management
talent management
Merchandising
Merchandising
Merchandising
Merchandising
Fan clubFan clubFan
Others
clubFan
Others
clubOthers Others
Video package,
Video package,
Video
box office
package,
Video
boxvideo
office
package,
boxvideo
office
boxvideo
office video
Video distribution
Video distribution
Video distribution
Video distribution
80
40
0
10
Online Music
Distribution Business
40
0
0
0
0
06 0607 0607080607080907080910080910 0910
40
20
0
0
0
06 0607 0607080607080907080910080910 0910
0
10
0
0
0
06 0607 0607080607080907080910080910 0910
0
0
0
0
09/09
06/09
09/09
12/09
06/09
09/09
12/09
03/10
09/09
12/09
03/10
06/10
12/09
03/10
06/10
03/10
06/1006/10
10 06/0906/09
Mobile MobilePC
MobilePC
Mobile
Chaku-Uta
PCChaku-Uta
PCChaku-Uta
Chaku-Uta
The number of mobile phone-based downloads
including partial and full melodies, declined
in the fiscal year ended March 31, 2010. This
is attributable to such factors as the growing
popularity of free mobile phone games and
free video sites as well as intense competition
from other services.
The number of fan club members continues to
grow steadily. Efforts are naturally made to develop activities that best fit the special features
of both artists and fan club members. Recognizing the loyalty of long-standing members,
steps are also taken to enhance premium value
through special contents.
The number of BeeTV subscribers is increasing
steadily. The service is proving particularly
popular with women in their 20s. In addition to
the “visual” appeal of dramas and variety programs, BeeTV is boosting its contents through
such “useful” products as online shopping
video catalogues. Through these and other
means, every effort is being made to increase
the number of subscribers.
31
CORPORATE DATA AND INVESTOR INFORMATION
(As of March 31, 2010)
Corporate Data
Company name:
Established:
Paid-in capital:
Number of employees:
Headquarters:
URL:
Breakdown of Shareholders
Avex Group Holdings Inc.
April 11, 1988
¥4,229.6 million
1,438
3-1-30, Minami-Aoyama, Minato-ku, Tokyo 107-8577, Japan
Phone +81-3-5413-8550 (reception desk)
http://www.avex.co.jp/e_site/
shares
Japanese financial institutions
7,408,508
shares
16.05%
Japanese securities companies
1.24%
573,632
46,157,810
46,157,810
First Section of Tokyo Stock Exchange
7860
100 shares
June each year
Mitsubishi UFJ Trust and Banking Corporation
Corporate Agency Division
7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081, Japan
6.96%
3,213,580
Total
Stock Information
Number of shares issued:
Stock exchange listing:
Stock code:
Trading unit:
General shareholders meeting:
Transfer agent:
Treasury stock holdings
shares
shares
Other Japanese corporations
8.26%
3,812,534
shares
Foreign investors
4,198,261
shares
9.10%
Japanese individual investors and others
26,951,295
shares
58.39%
Top 10 Shareholders
Masato Matsuura
Toshio Kobayashi
The Master Trust Bank of Japan, Ltd. (Trust account)
Max 2000 Inc.
T’S Capital Inc.
Daiichikosho Co., Ltd.
UBS AG London Asia Equities
Japan Trustee Services Bank, Ltd. (Trust account)
Ryuhei Chiba
BBHLX Fidelity Funds Japan Advantage
Number of shares held
(thousands)
Percentage of shares held
(%)
2,255
2,255
2,168
1,150
1,150
920
877
789
780
643
4.89
4.89
4.70
2.49
2.49
1.99
1.90
1.71
1.69
1.39
Notes:
1. The Company holds 3,213 thousand shares of treasury stock, representing 6.96% of total shares issued and outstanding as of March
31, 2010. This data has been excluded from the Top 10 Shareholders information presented above.
2. As of March 31, 2010, Masato Matsuura, the Company’s Representative Director, President and CEO, and Toshio Kobayashi, a Director
of the Company, held the concurrent positions of Representative Director of both Max 2000 Inc. and T’S Capital Inc. Toshio Kobayashi
resigned as a Director of the Company effective June 27, 2010.
Mar. 2006
Sep. 2006
Mar. 2007
Sep. 2007
Mar. 2008
Sep. 2008
IR data is also posted on the Company’s website.
32
26,233
25,593
33,810
35,382
40,716
40,649
Avex Group Holdings Inc.
3-1-30, Minami-Aoyama, Minato-ku, Tokyo 107-8577, Japan
url http://www.avex.co.jp/e_site/
Printed in Japan