avex group holdings inc. a e grou · 2011-10-07 · avex group holdings inc. 22nd semiannual...
TRANSCRIPT
Avex Group Holdings Inc.22nd Semiannual Business Report From April 1, 2008 to September 30, 2008
● Inquiries about this booklet
Stock Affairs Section,Group Administration Headquarters
0120-39-8550 (Weekdays: 10:00 to 18:00)
Avex Group Holdings Inc.�22nd Semiannual Business Report
From April 1, 2008 to September 30, 2008
Avex Group Holdings Inc. Avex bldg.,
3-1-30 Minami-Aoyama, Minato-ku,Tokyo 107-8577 Japan
URL http://www.avex.co.jp/
This booklet uses soybean oil ink certified by the American Soybean Association.
e Grou22nd Semiannual From April 1, 2008 to September 30, 2008
A
©avex marketing
02
Mid-Term Vision of the Avex Group
To evolve into the “Entertainment Brand Company”with the strongest creative and communication capabilities in Asia
The Avex Group is p leased to inform
shareholders of its results for the six-month
period ended September 30, 2008 in this
Semiannual Business Report.
Although the music industry as a whole
had a hard time over this six-month period,
sales of our music packages increased by
approximately 40% over the same period
last year, buoyed by hits from our major
artists and outstanding performances by the
newer artists we have signed and cultivated
since the structural reforms of April 2005.
In addi t ion, other income streams,
including merchandising, fan clubs and live
concerts, have been steadily increasing.
Notwithstanding the sudden bursting onto
the scene of the concept known as the
“360-degree model”—a strategy that calls
for every pro� t-earning opportunity of each
artist to be taken advantage of—we take
pride in the fact that we have had much
success in growing these income streams
through our management company, which
has been a par t of the Group since its
foundation. Through the brand management
sys tem adopted by the management
company, we have established our own
3 6 0 - d e g r e e m o d e l a n d h a v e b e e n
maximizing the value of our artists for the
last three and a half years.
In January 2009, we will spin off our
artist /talent management division into a
separate company. This will allow us to
consolidate management resources and
expertise on these other revenue streams,
which will help us to broaden and expand
our music sales at a time when the global
music industry is at a major turning point.
As part of our overall medium- to long-
term strategy for becoming a comprehensive
entertainment company, we will adopt a
“mobile broadcasting stat ion model”—
essentially, establishing a Web platform and
do ing our own program p lanning and
cast ing—as the core strategy for our
domestic visual content business. Our plans
for the Asian arm of this business are based
on a core s t rategy o f leverag ing our
established networks to co-produce films
with leading players in the various regions.
In addition, we have already commenced
d eve l o p m e n t o f a n ew b lu e p r i n t f o r
achieving hits after having implemented a
fundamental review of our business models,
governance system, branding strategies
and so on for our music business in Asia.
This wi l l enable us to bet ter adapt to
changes in the entertainment market in
Greater China and overcome current
difficulties.
The Group � rmly believes that ensuring a
long-term overall return of profit to our
shareholders is one of the most important
management policies of the Group. We stand
by our policy of paying the interim dividend of
20.0 yen per share for the 22nd term.
We would like to express our sincere
appreciation for the support shown by our
many shareholders and stakeholders again
this year, the year in which we celebrated
the 20th anniversary of the Avex Group. We
ask for your continued understanding and
support in the future.
December 2008
Masato MatsuuraCEO
Avex Group Holdings Inc.
To Our Shareholders
1988 2001
2004
2006
2008
2007
2005
2002
1991
1992
1993
1994
1997
1998
1999
2000
1990
Twenty Years of Progress
H i s t o r y o f A v e x
03
Avex Artist Academy, Osaka School
avex WORLDAUDITION2008
Namie Amuro“BEST FICTION”Jul. 30, ’08
EXILE“CATCHY BEST”Mar. 26, ’08
Kumi Koda“BEST~first things~”Sep. 21, ’05
Ayumi Hamazaki“ BEST” Mar. 28, ’01
Avex Artist Academy, Tokyo School
Red Cliff Part I©2008 Three Kingdoms Ltd. ©Bai Xiaoyan
Blue Man Group in Japan ©BMP
Avex’s second logo
“JULIANA'S TOKYO TECHNO RAVE PARTY” Feb. 21, ’92
Ai Otsuka“Sakuranbo” Dec. 17, ’03
BoA“LISTEN TO MY HEART” Jan. 17, ’02
Avex’s current logo
“SUPER EUROBEAT VOL.1”Jan. 21, ’90
avex rave’93
trf (currently TRF)“EZ DO DANCE”Jun. 21, ’93
Namie Amuro“CAN YOU CELEBRATE?”Feb. 19, ’97
hitomi“CANDY GIRL”Apr. 21, ’95
velfarre
Every Little Thing“Time goes by”Feb. 11, ’98
Ayumi Hamazaki“poker face”Apr. 8, ’98
Avex’s first logo
Twenty Years of Progress 22nd Semiannual Business Report
•BeganasarecordimportandwholesalebusinessinMachidaCity,Tokyo
•OpenedtheAvexArtistAcademyinHarajuku,Tokyo
•Establishedholdingcompanysystem
•EstablishedAvexChinaCo.,Ltd.inBeijing,China
•OpenedOsakaSchoolofAvexArtistAcademy
•Celebratedthe20thanniversaryofAvexGroupwithanumberofspecialevents
•Achievedbiggestshareinthemusicsoftwaremarketforthefirsttime
•EstablishedtheTalentManagementDivisionwiththeaimofenhancingartistmanagement
•ImplementedstructuralreformsoftheGroupandfullycommencedvisualcontentbusinessandbusinessdevelopmentsinAsia
•AnnouncedtheMid-termvisiontobecomethestrongestentertainmentcompanyinAsia
•Launchedmembershiponlinedistributionwebsite“mu-mo”
•Launchedafull-scaleonlinedistributionbusiness LaunchedChaku-Utaservice
•Heldfirstnationwideliveopen-airconcerttour,“a-nation”
•BeganproducingJapanesemusic
•DancecompilationCD“JULIANA’STOKYO”wasabighit
•RelocatedtoMinami-Aoyama,Minato-ku,Tokyo
•Heldafreedanceevent“avexrave’93”attheTokyoDome,attracting50,000people
•Openedoneoftheworld’slargestdanceclubs,velfarre
•Beganself-distributionofpackagedproducts
•Beganover-the-countertradingofourstock
•ListedonthefirstsectionoftheTokyoStockExchange
•Adoptedthecurrentlogo(CI)
•Establishedthefirstmusicproductiondivision,avextrax
•ReleasedadancecompilationCD titled“SUPEREUROBEATVOL.1”
★ The accounting standards have changed since this consolidated accounting year. The � gures for the previous terms are listed only for reference.
435
1,221
3,075
386 497
2,054
04
Semiannual Financial Highlights
Semiannual Financial Highlights
Operating Income Ordinary Income
Interim Net Income Interim Net Income Per Share
According to a survey by the Recording
Industry Association of Japan (RIAJ), the
value of recorded music, including music
videos, produced during the period from April
2008 to September 2008 decreased by 1.9%
from the same period last year.
In the online distribution market, the most
recent data shows that sales for fee-based
online distribution during the period from
April 2008 to June 2008 increased by 27.7%
from the same period last year, according to
another RIAJ survey, indicating the expansion
of this market is continuing steadily.
RIAJ figures also indicate overall sales of
DVDs during the period from April 2008 to
September 2008 decreased by 6.2% from the
same period last year. Sales of next-generation
Blu-ray Discs, however, have been on the
increase, and the visual contents market is
expected to grow rapidly in the future.
Against this backdrop, driven by increased
sales of packaged music of major artists and
brisk sales of concer t merchandise, the
Group’s consolidated sales and operating
income for the six months ended September
30, 2008 respectively stood at 56.323 billion
yen (a 23.7% increase on a year-on-year
basis) and 3.075 bi l l ion yen (a 151.8%
increase on a year-on-year basis).
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Sales promotion expenses
Employee salaries and bonuses
Others
Operating income
Non-operating revenues
Interest income
Dividend income
Others
Non-operating expenses
Interest expenses
Investment loss by equity method
Others
Ordinary income
Special profits
Gain on revision of previous year’s results
Gain on reversal of allowance for shareholder special benefit
Reversal of allowance for closing of businesses
Return of lease payments due to closing of busineses
Gain on adjustments to balance sheet accounts for the previous fiscal years
Others
Special losses
Loss on sale and disposition of fixed assets
Loss on revaluation of investment securities
Impairment losses
Others
Net income before income taxes and minority interests
Income taxes—current
Income taxes—deferred
Minority shareholders’ income (loss)
Net income (loss)
■ Operating Income/Ordinary Income
56,323
45,54541,437
60,000
50,000
40,000
30,000
20,000
10,000
0
■ Sales
Consolidated Statement of Income Consolidated Performance(Unit: millions of yen) (Unit: millions of yen)
Reference: Interim period ended September 30, 2007
Interim period ended September 30, 2008
From April 1, 2007through September 30, 2007
From April 1, 2008through September 30, 2008
45,545
29,489
16,056
14,835
4,878
824
2,827
6,304
1,221
110
25
7
77
835
271
450
113
497
381
—
—
142
113
68
56
262
7
186
—
67
615
151
772
(54)
(254)
56,323
37,022
19,301
16,226
4,908
851
2,977
7,487
3,075
59
17
16
25
1,080
358
627
94
2,054
104
39
29
—
—
—
34
116
10
72
32
0
2,041
1,198
462
(88)
468
20th Interim
20th Interim
21st Interim
21st Interim
22nd Interim
22nd Interim
10.91
(12.19)(5.92)
1,500
1,000
20
500
10
00
-500-10
-1,000 -20
■ Interim Net Income/Interim Net Income Per Share
(523) (254)
468
20th Interim 21st Interim 22nd Interim
(yen)
★ The accounting standards have changed since this consolidated accounting year. The � gures for the previous terms are listed only for reference. 05
82,318
98,167722.54 734.42
103,352742.87
31,137 32,100 32,443
22nd Semiannual Business Report
40,117
29,194
69,312
32,223
4,229
5,001
28,460
(5,468)
30
112
(82)
250
307
32,812
102,124
38,078
32,830
70,909
31,832
4,229
5,001
28,070
(5,468)
69
173
(103)
326
215
32,443
103,352
Assets
Current assets
Fixed assets
Property and equipment
Intangible fixed assets
Investments and other assets
Total assets
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
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Foreign 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 the interim period
Interim period ended September 30, 2007
Interim period ended September 30, 2008
Reference: End of the previous consolidated accounting year
Reference: End of the previous consolidated accounting year
End of this interim period End of this interim period
From April 1, 2007through September 30, 2007
From April 1, 2008through September 30, 2008
As of March 31, 2008 As of March 31, 2008As of September 30, 2008 As of September 30, 2008
45,819
56,305
35,004
1,236
20,064
102,124
47,387
55,965
35,058
1,095
19,811
103,352
Consolidated Balance Sheet (Unit: millions of yen)
Consolidated Statement of Cash Flows (Unit: millions of yen)
(668)
(396)
1,734
55
724
6,371
(4)
7,091
730
(816)
2,538
(37)
2,416
10,093
—
12,509
Total Assets Net Assets
120,000
100,000
80,000
800
60,000
600
40,000
400
20,000
200
0 0
■ Changes in Total Assets/Net Assets (Unit: millions of yen) ■ Changes in Net Assets Per Share (Unit: yen)
22nd Interim21st Interim22nd Interim21st Interim20th Interim 20th Interim
Kumiko Aizawa
Seara KojoYusaku Kiyama
Satomi Takasugi
TRIPLANE
moumoon
Hisayo Inamori
Kunio Tago
BoA
MAY
UZUMAKI
2BACKKA
Ayumi Hamasaki
Hiroki Maekawa
RUSHMORE
Every Little Thing
Makoto Saito
Tomiko Van
misono
LOVE
Ai Otsuka
THE LOOSE DOGS
hitomi
GIRL NEXT DOOR
Tadashi Hirosawa
miray Shion Miyawaki
Good Dog Happy Men
Kumi Koda Maki Goto
Tokyo Purin
mink
SEAMO
URATA NAOYA
SHORT LEG SUMMER
BOO BEE BENZ
TRF
AAA
TenjochikiJ-Min Ami Suzuki
TOHOSHINKI
BRIGHT
m.o.v.e
TSUYOSHI nangi mihimaru GT
Do As In� nity
T h e F a c e s
A r t i s t s M a n a g e d b y A v e x G r o u p
Major artists managed by Avex Group, including CD releases and online distribution(As of September 30, 2008) (In Japanese alphabetical order)
Artists for whom Avex
Group conducts
management only
★ For details, please refer to Avex’s entertainment portal website. http://avexnet.jp/06
Artists Managed by Avex Group
07
Shidou Nakamura Koyuki Shinobu Otake Saki Takaoka Ryo Ishibashi
Ami Suzuki Yuri Nakamura Narumi Konno Mitsuki Ooishi Misako Uno Miho Kanazawa
GIRL NEXT DOOR Hiroki Aiba Aki Shibuya Miho Sugiura Maimi Okuwa
Kazuma Yamane Sawa Yamaguchi Hiroya Matsumoto Rina Okamoto Rihoko Shimomiya Tomokazu Yoshida
Erika Ami Takeishi Sairi Itoh Shion Umezawa(Child star)
Tohko Miura(Child star)
Kumi Takeshita
Mai Masaki Miro Ebato(Newcomer)
Misaki Yonemura(Newcomer)
Manami Enosawa(Newcomer)
Mizuki Sashide(Newcomer)
Ai Sugiura(Newcomer)
ZOE(Newcomer)
Rina Saito(Newcomer)
Yurika Tanaka(Newcomer)
Shota Miyazaki(Newcomer)
Kazushi Murakami(Newcomer)
Daisuke Miura(Professional baseball)
Hiroyasu Shimizu(Speed skating)
Yu Darvish(Professional baseball)
Yudai(Kickboxing)
Keisuke Honda(Soccer)
SEAN(Beach debut producer)
Sekijyo Kaneda(Calligrapher)
T h e F a c e s
Ta l e n t s M a n a g e d b y A v e x G r o u p
Major artists and sports personalities managed by and contracted to Avex Group(As of September 30, 2008)
TalentsSports
&Culture
★ For details, please refer to Avex’s talent portal website. http://aei-geinou.jp/index.html
Fumie Suguri(Figure skating)
Talents Managed by Avex Group 22nd Semiannual Business Report
Nanase Aikawa
AFRA & INCREDIBLE BEATBOX BAND Aly & AJ
AOKI takamasa
RIKI
Hibiki Inamoto
AA=
AKANE
Namie Amuro
UNCHAIN
Eriko Imai (elly)
AKINA
ala
Takako Uehara
EXILE
Ak'SenT
alan
Yuko Ando
UKAWANIMATION!
NG HEAD m-flo
Acid Black Cherry
ARIA
Yuko Ishida
ASIA ENGINEER
Itsco“E” qual
ASIAN2
ELLIOTT YAMIN Shinichi Osawa (MONDO GROSSO)
T h e F a c e s
A r t i s t s o n t h e A v e x L a b e l
Major artists whose CD releases and online distribution are managed by Avex Group(As of September 30, 2008) (In Japanese alphabetical order)
08
Artists on the Avex Label
Lisa Ono
COLOR
Q;indivi
Kumiko
COIL
Aural Vampire
Tsuyoshi Kawakami and His Moodmakers
Cutie Mommy
kotringo
Ari Onishi
OLIVIA
kiyo
CLARABELL
Hideaki Konno
Ai Okumura
GANGA ZUMBA
KIRITO
Katie MeluaKei
Hatsune Okumura
KATTENI-SHIYAGARE
KAT Caravan
Seikyo Kim
KEN THE 390
Misako Sakazume Ryuichi Sakamoto
Ossan
kannivalism
Genki Rockets
Natsu Kai
Yutaka Sado
camino
★ For details, please refer to Avex’s entertainment portal website. http://avexnet.jp/ 09
22nd Semiannual Business Report
SPEEDSPEECH
the pillows
C-999
J
JAMOSA
JONTE
THE CHILL
J Soul Brothers
Janne Da Arc sweetbox
The Phanky OKstra
the do-nuts
Hitomi Shimatani
Jesse McCartney
GEORGE
Swing Out Sister sugiurumn
THE YOUNG PUNX!
THE BACILLUS BRAINS
SUGARCULT
the generous
Jonas Brothers
schadaraparr
THE REBOOT
Shin Seung Hunshuji
Jackson vibe
SUPER JUNIOR
ZAN
THE BLACK GHOSTSTHE BOOM
JANEL
GTS
10
Artists on the Avex Label
Soma
Hiroshi Tamaki
Akira Terao
Dave Rodgers
twenty4-7
SLY MONGOOSE Song for Memories
DA PUMP
D
DE DE MOUSE
TOKYO SKA PARADISE ORCHESTRA
Seventh Tarz Armstrong
Katsunori Takahashi
Demon Kogure
TOKYO No.1 SOUL SET
Tackey & Tsubasa
Nobuyuki Tsujii
D’ERLANGER
Tokyo 60 WATTS
Sembello
Shinji Tanimura
Anna Tsuchiya Tiesto
DJ EMMA
Asako Toki Joji Tokoro
SOFFet
Nana Tanimura
DJ OZMA
Dream
Tomita Lab Keisuke Toyama TRICERATOPS
★ For details, please refer to Avex’s entertainment portal website. http://avexnet.jp/ 11
22nd Semiannual Business Report
Miyuki Hatakeyama
Vanessa Hudgens
Mai Fukui
MICRON’STUFF
Honey L Days
PANG
FAT PROP
Toko Furuuchi
Miley Cyrus
BAZRA
HITOE
V6
My Little Lover
dorlis
100s
Fantastic Plastic Machine
PLAIN WHITE T’S
Noriyuki Makihara
BACK-ON
Ataru Nakamura
Hilary Duff hiro/Coco d’Or
5050
Nanase Hoshii
MAX
Vanilla Mood
Natural Radio Station
FERRY CORSTEN
BOREDOMS
MASH
Ai Haruna
Fukumimi
Ken Matsudaira
12
Artists on the Avex Label
MEGARYU
Yokai Project
LISA
LEZ ZEPPELIN
Kayoko Mine
MONKEY MAJIK
YOJI BIOMEHANIKA
lecca Leyona
Dan Miyakawa
Luxis
Rickie-G
LOW IQ 01
Kazuyuki Matsumoto
Kazufumi Miyazawa Yayoi
RASCAL FLATTS Remark Spirits
Rockamenco
Daichi Miura
you U-DOU & PLATY
LOVEFIXER
RYO the SKYWALKER
YMCK Masaya Wada Warp-generation
Alisa Mizuki Yutaka Mizutani
Lambsey
Ryohei
Marie Digby
LUNASEA
WRENCH
★ For details, please refer to Avex’s entertainment portal website. http://avexnet.jp/ 13
22nd Semiannual Business Report
14
L i n e u p
V i s u a l W o r k s
The main visual works
A spectacular action adventure film joint ly produced by John Woo, the director of “M:I-2,” and the “Pirates of the Caribbean” team, this 1,800-year-old legend of love and courage has finally been brought to the big screen. Hollywood giant, John Woo, who also directed the 10 billion-yen film, spent
18 years developing the concept. As a result, despite those who said it would be impossible to film, the Battle of Red Cli f f, the most famous bat tle in the Three Kingdoms story, has been finally been made into a movie that features state-of-the-art technology and draws upon the expertise of Hollywood’s best.
“Red Cliff Part I”
The film based on wildly popular TV series “Sex and the City,” which was and still is beloved by women all over the world and even extended beyond the screen to become a kind of social phenomenon. What happened to the
characters after the happy endings of the final season? Four years after the series end, the movie picks up the story of the world’s four most famous New Yorkers, featuring the original cast plus Jennifer Hudson of “Dreamgirls.”
“Sex and the City: The Movie”
★ For details, please refer to Avex’s visual works portal website. http://avexmovie.jp/
©2008 Three Kingdoms Ltd. ©Bai Xiaoyan
SEX AND THE CITYTM is a registered trademark of Home Box Office, Inc. Sex and the City ©2008 IFP Westcoast Erste GmbH & Co. KG.TM New Line Productions, Inc. Supplementary Material Compilation ©2008 New Line Productions, Inc. All rights reserved. “Dolby” and the symbol are trademarks of Dolby Laboratories Licensing Corporation.
©DRM Media, GOLDENTHUMB
©feng/Shiritsu Amitie Gakuen Tozanbu 2008
©2009 “Waiting for Goods News” production committee
©“Shugotenshi” production committee
©2008 Walker George Films (Young at Heart) Limited.
“Bad Love—Ai ni oborete” is a new drama series which sees Kwon Sang Woo —who achieved longstanding popularity in the Korean TV d r a m a s “ S t a i r w a y t o Heaven” and “S ad Love Story”—back in a starring r o l e a f t e r a t h r e e - y e a r break. The story follows the l i v e s o f t wo men and a woman as they attempt to hold on to love they believe
in. Said to be the greatest story of love and hate in history of Korean TV, it also features Kim Sung Soo (“Full House”) and Lee Yo Won (“Surgeon Bong Dal Hee”) and was written by Lee Yu Jin (“Phoenix”).
Sales of the original game reached 50,000 units and the animation was the most reproduced video on the “N i cor a j i ” s ec t ion o f popu l a r Japanese video sharing website, Nico Nico Douga. Firmly placed in the “Tsundere” genre (a story that has as i ts main protagonist an archetypal Japanese character who starts off with a conceited, spiky and combative personality but eventually discovers the value of modesty and caring for others), this wildly popular
romantic adventure game became an animated TV series that scored a huge coup when it landed Aya Hirano, Japan’s most popular anime voice actor, and the reigning queen of Tsundere, Rie Kugimiya. A fresh, new romantic comedy that follows the unique cast of characters through their times of joy, sadness and (sometimes) delusion.
This entertaining f i l m h a s b e e n brought to us by the director and team responsible for the blockbust-er film “Kisaragi.” A l a c k l u s t e r m i d d l e - a g e d man falls in love at first sight with
a neatly dressed high school girl on his way to work one day. To protect her from the rampant evil in the world, he transforms himself into a hero. Can he save her? How will this romance play out? Cast members include Cunning Takeyama, Kuranosuke Sasak i , Shinjiro Atae (AAA), Shinobu Terashima.
“Young@Heart” is the story of a c h o r u s g r o u p with the average age of 80 based in a small United States city. The t w i s t ? T h e y p e r f o r m t h e s o n g s o f r o c k b a n d s l i k e
C o l d p l a y, S o n i c Yo u t h a n d R a d i o h e a d . T h i s documentary focuses on the six weeks before the groups’ big live concert and provides an inspiring look into the world of a group of people who believe “Singing is living, living is singing.” A feel-good movie that has aroused a lot of attention.
T h e J a p a n L o v e S t o r y Aw a r d c o - sponsored by TAKA-R A JIM A SH A In c . and the Avex Group is a li terary award that created a buzz when it was launch-ed by o f fe r ing to m a k e t h e p r i z e -winning work into a
film. The movie based on the first winner is finally about to be released. “Kafu” means “good news” or “happiness” in the dialect of Okinawa, where this moving story, likely to bring a tear to the eye, is set. Cast members include Tetsuji Tamayama, MAIKO, Ryo Katsuji, Saki Takaoka and Ikki Sawamura.
“Bad Love—Ai ni oborete”(Korean TV drama)
“Akaneiro ni Somaru Saka”(TV animation)
“Kafu wo Machiwabite (Waiting for Good News)”(Scheduled for theater release)
“Shugotenshi (Guardian Angel)”(Scheduled for theater release)
“Young@Heart”(Released in theaters in November 2008)
Visual Works
15
News & Topics 22nd Semiannual Business Report
N e w s & T o p i c s
The Avex Group and NTT DOCOMO INC. have decided to establish a joint venture, Avex Broadcast ing & Communicat ions Inc., to develop video content and distr ibute it via mobile phones.
The mobile phone has grown far beyond its or iginal role of a communicat ions device, becoming a personal media player for every day use. Mobi le content, inc luding music and games, forms a tremendous market. Demand for video content is expected to grow sharply with innovations in both telecommunications infrastructure and handsets.
Ex is t ing v ideo d is t r i bu t ion bus iness , however, mainly deals with content developed for cinema and DVD, with only a small amount
developed solely for the mobile platform. It can therefore be said that the mobile video content market is still in its early stages.
The new company wi l l c reate content primarily designed to be viewed on a small screen, which assumes a viewing style that is completely dif ferent to that adopted for the existing video media such as � lm and television. The medium by which the content is to be viewed will inform everything from the planning, scriptwriting, editing and � lming.
Drawing up on Avex’s longstanding expertise i n v i d eo p ro d u c t i o n c o m b ine d w i t h ou r experience in ar t ist management, the new company will mainly create original music-related content featuring ar tists like Ayumi
Hamasaki and EXILE. In addition, the company has agreed to form par tnerships with f ive companies, including Fuji Television Network Inc., which will create content for viewing via outlets other than their own. The joint venture will actively seek the establishment of other collaborative relationships with leading video production partners for the creation of suitable content.
Avex Broadcasting & Communications Inc. will be established in February 2009 and the service will be launched in March, 2009. The new service will provide a completely new way to enjoy video, so please watch out for it!
Plans for the launch of video content creation and distribution services for mobile phones in collaboration with NTT DOCOMO
Tentative name of the new service: BeeTV
We held the 21st regular General Shareholders Meeting at Saitama Super Arena (Saitama City, Saitama Prefecture) on June 22, 2008, with 8,910 shareholders attending. This was the � rst time in Japan for a general shareholders meeting to be held in such a large venue and records were broken for both the number of participants and the attendance rate.
Following the meeting, a selection of Avex’s artists performed at a closed live concert put on especially for shareholders. To celebrate our 20th anniversary, we invited our shareholders to bring one companion to the concert, resulting in an audience that numbered approximately 15,000. Performances were given by 12 artists, a record number for a closed live concert put on for shareholders. The artists’ names were (in Japanese alphabetical order) Namie Amuro, alan, EXILE, Ai Otsuka, Sekijyo Kaneda (calligraphist), Yusaku Kiyama, Kumi Koda, Maki Goto, TRF, TOHOSHINKI, Noriyuki Makihara, and mihimaru GT.
In line with our previously expressed approach, that “we consider general shareholders meetings to be valuable opportunities for dialogue between shareholders and management and make special arrangements to ensure that as many shareholders as possible can attend these meetings,” we have held all of our regular general shareholders meetings on a Sunday since we went public in 1998. This attitude, we believe, along with our other ongoing activities, has resulted in the kind of comments as “A shareholders meeting on Sunday is synonymous with Avex” and “Avex is a company that cares about each of its shareholders.”
Held the largest-ever General Shareholders Meeting at Saitama Super Arena
Regular shareholders meeting
Namie Amuro Kumi Koda
EXILE
16
News & Topics
As part of its 20th anniversary celebrations, Avex Group staged an original musical “Kokoro no Kakera” at Aoyama Theater in Tokyo in the second half of September 2008.
Avex consol idated i ts exper ience and enhanced i ts capabilities in concert production with the establishment in April 2005 of Avex Live Creative Inc., which specializes in the planning, production and staging of concerts and other events. The Group has also been exploring other possibilities in the area of live entertainment, for example, by bringing popular Broadway entertainers the Blue Man Group to Asia for the � rst time.
“Kokoro no Kakera” was developed and staged as a celebration of Avex Group’s unique character and history. With a cast that included Ami Suzuki and Takahiro Nishijima of AAA along with other Avex artists, the performance featured many of the hit songs that have been released by the Group over the last 20 years.
In these days where digital reigns supreme, Avex Group will continue to bring audiences the fun and excitement of live entertainment.
Guan Zhe, an artist signed with our Beijing-based subsidiary, Avex China Co., Ltd., had the honor of singing four songs at the Closing Ceremony of the Beijing Olympics. He was joined onstage by a popular female Chinese singer.
Guan Zhe, who hails from Jilin Province, signed his � rst contract with Avex China in 2008 and released his debut CD in April of that year. One of the songs on that CD was submitted to the Beijing Olympic Songs project organized by the Beijing Organizing Committee for the Games of the XXIX Olympiad to select performers for the Closing Ceremony. Guan Zhe was selected from out of 70,000 applications for the quality of both his song and voice.
T h e t wo s o n g s p e r fo r m e d a t t h e ceremony, “Beij ing Zhu Fu Ni” (Beij ing Blesses You) and “Beijing, Beijing, Wo Ai Beijing” (Beijing, Beijing, I Love Beijing) were writ ten by the singer, with music composed by musical adviser to Avex China, Keisuke Kikuchi, a producer and composer who is active in the Chinese music industry.
On September 6, 2008, JULIANA’S TOKYO, the legendary nightclub that commanded the city’s dance scene in the early 1990s, was revived for one night at Differ Ariake in Ariake, Tokyo. The event titled “CLUB LEGEND” was staged as part of a special project by Avex Group to celebrate the great
dance spots of days past by staging one-night revivals at various Tokyo venues. JULIANA’S TOKYO was chosen to launch the project, with similar revivals planned for other clubs including Twin Star and MAHARAJA.
The original look was recreated both inside and outside the venue, with a stage, chandeliers and stunning entrance. The event attracted around 13,000 guests, dressed in skimpy out� ts and holding colorful retro “JULI-sen” fans. With eager partygoers lining up to get in even before the doors opened, unfortunately some had to be turned away due to lack of space.
Avex will help keep Tokyo’s dance music scene pumping with various other projects and events in the future.
In August 2008, the Avex Group established a film fund to produce films for the Asian market, including the growing C h i n e s e m a r ke t , i n p a r t n e r s h i p w i t h M e d i a A s i a Enter tainment Group, one of Hong Kong’s leading film production and distribution companies.
With the growing acceptance in Asia and East Asian countries in particular—including China, Hong Kong, Taiwan, South Korea and Japan—of the entertainment produced by their neighbors, cross-border hits have been produced in the areas of music and � lm among others.
A g a i n s t t h i s b a c k g r o u n d , w e h a v e a d o p t e d a co-production model as the core strategy of our international visual content business, with the aim of producing pan-Asian hits in collaboration with influential partners in various regions. As part of our efforts under this strategy, we have also set up a � lm fund in collaboration with one of Asia’s top � lm producers, Bill Kong, in March 2008 to provide support for up-and-coming directors. In addition, we plan to secure a base in Hong Kong—arguably the heart of the Asian film industry—from which to co-produce films that have a wide appeal to Asian audiences in partnership with the Media Asia Group, one of the most powerful and in� uential entertainment groups in Greater China.
Commemorating 20 years of Avex with musical “Kokoro no Kakera”
Avex China’s Guan Zhe performed at the Closing Ceremony of the Beijing Olympic Games
One-night revival of JULIANA’S TOKYO
Avex established a � lm fund with Media Asia, a leading Hong Kong � lm studio
17
Avex Entertainment Inc.
Velfarre Entertainment Inc.
Midea Inc.
PiX 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 Limited
Avex Hong Kong Limited
Avex Taiwan Inc.
Avex China Co., Limited
Avex Hawaii, Inc.
Label Mobile Inc.
Memory-Tech Corporation
avex & East, Inc.
Dwango Co., Ltd.
Chengtian Entertainment Group (International) Holding Company Limited
Ave
x G
rou
p H
old
ing
s In
c.
Do
mes
tic
con
solid
ated
su
bsi
dia
ries
Fore
ign co
nsoli
dated
subs
idiari
esAs
soci
ated
com
pani
es
Corporate name
Avex Group Holdings Inc.
Head office location
3-1-30 Minami-Aoyama, Minato-ku, Tokyo 107-8577
Date of establishment
April 11, 1988
Capital
¥4,229.6 million
Number of employees
178 (1,322 employees within the Avex Group)
Note: Temporary employees are not included in the number of employees.
Board of directors
Masato Matsuura CEO
Ryuhei Chiba Co-CEO
Takashi Araki COO, Senior Executive Director
Toshio Kobayashi CFO, Senior Managing Director
Shinji Hayashi CIO, Senior Managing Director
Hiroshi Inagaki Managing Director
Hisahiko Iida Managing Director
Hajime Taniguchi Managing Director
Katsuro Oshita Managing Director
Hiroyuki Kishi Managing Director
Shin Ushijima Outside Director
Minoru Onozato Outside Director
Nobuo Kawakami Outside Director
Shinkichi Iwata Full-time Auditor
Kenji Nomura Full-time Auditor
Toshiaki Katsushima Outside Auditor
Akihiro Tamaki Outside Auditor
Operating officers
Kenzo Katakura
Takahiro Miura
Akihiro Terada
Tomoaki Sato
Yuko Suzuki
Masahiro Anan
Entertainment Informationhttp://avexnet.jp/For entertainment information, such as Avex artists and online distribution of music and visual content, please visit the above URL.
Company Information
http://www.avex.co.jp/For more information on Avex Group Holdings Inc., group companies, press releases, and financial statements, visit the above URL.
Website
Avex Group’s organizational chart (As of November 1, 2008)
Company Outline
O u t l i n e o f t h e C o m p a n y(As of September 30, 2008)
Outline of the Company 22nd Semiannual Business Report
18
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Note: The company owns 3,213,034 treasury shares, and the number of outstanding shares (excluding treasury shares) is 42,944,776.
Mar. 2006 Mar. 2007 Mar. 2008Sep. 2006 Sep. 2007 Sep. 2008
Total 46,157,810 shares
Notes:•Inadditiontotheabovetable,thereare3,213,034treasuryshares(6.96%)ownedbytheCompany.•CEOMasatoMatsuuraandSeniorManagingDirectorToshioKobayashiserveasrepresentativedirectorsofMax2000Inc.andT’SCapitalInc.,respectively.
Shareholder’s name Number of Shares
3,074,600 shares
2,244,824 shares
2,244,818 shares
1,405,179 shares
1,150,000 shares
1,150,000 shares
1,023,000 shares
966,000 shares
920,000 shares
919,400 shares
The Master Trust Bank of Japan, Ltd. (Trust account)
Masato Matsuura
ToshioKobayashi
DeutscheBankAGLondon610
Max2000Inc.
T’SCapitalInc.
JapanTrusteeServicesBank,Ltd.(Trustaccount)
BankofNewYorkGCMClientAccountJPRDACISG(FE-AC)
DaiichikoshoCo.,Ltd.
JapanTrusteeServicesBank,Ltd.(Trustaccount4G)
Authorizednumberofshares
Number of shares outstanding
Oneunitofshares
184,631,000 shares
46,157,810 shares
100 shares
6.96%
20.91%
2.62%
8.61%
14.05%
46.84%
0.00%
0.13%
0.09%
0.50%
0.32%
98.97%
3,213,034
9,653,868
1,210,013
3,973,204
6,485,795
21,621,896
[Number of shareholders]
[Number of shares]
Total 40,649
1
52
35
203
129
40,229
26,233 25,593
33,81035,382
40,716 40,649
Stock Information
Number of Shareholders
Distribution of Shareholding
Top Ten Shareholders
Number of Shareholders and Shares by Region
S t o c k D a t a(AsofSeptember30,2008)
Total 40,64946,157,810 shares
Chugoku region3.86%1.24%
Kyushu region3.55%1.07%
Shikoku region2.30%1.02%
Kinki region18.08%6.26%
Kanto region54.27%71.30%
Overseas0.26%
13.93%
Chubu region14.28%4.24%
Tohoku region2.26%0.63%
Hokkaido region1.12%0.31%
457 144,477 shares
107 6,428,344 shares
5,806 1,958,852 shares
22,05932,911,172 shares
918 291,346 shares
1,571 572,322 shares
1,445491,951 shares
936471,034 shares
7,3502,888,312 shares
Treasury stock
Financial operators
Domestic corporations
Foreign investors
Treasury stock
Domestic securities companies
Financial operators
Domestic corporations
Foreign investors
Japanese individuals and others
Japanese individuals and others
Domestic financial institutions
Stock Data
19
Memo for Shareholders
Important Information Concerning the Implementation of the Electronic Share Certi� cate System to Be Enforced on January 5, 2009
ART DIRECTOR & DESIGNER Masaki Maekawa Design Office EDITOR AVEX PLANNING & DEVELOPMENT INC. PRINTING DIRECTOR TAKARA PRINTING CO.,LTD. ©AVEX GROUP HOLDINGS INC.
(Notice) Regarding the share transfer agents of the administrator of the shareholder registryFollowing the implementation of the electronic share certi� cate system, the various procedures related to shareholder transactions will be conducted, in principle, by the securities company with which you have an account. For this reason, the system of share transfer agents of the administrator of the shareholder registry will be terminated when the new system is launched.
Mitsubishi UFJ Trust and Banking Corporation, our shareholder registry administrator, will continue to distribute dividends which have not yet been received from its head and branch offices.
1. Special account
(1) Recording of account balances in a special account
Shares owned by shareholders who do not use the central securities custody and book-entry transfer system (JASDEC) will be recorded in a special account to be opened at Mitsubishi UFJ Trust and Banking. (This is scheduled to be conducted on January 26, 2009). Mitsubishi UFJ Trust and Banking will send a notice of the number of shares recorded in the special account and other details to each shareholder’s registered address sometime around mid-February 2009.
(2) Procedures concerning shares recorded in a special account
Following the implementation of the electronic share certi� cate system, you are requested to direct all inquiries regarding procedures concerning shares recorded in special accounts, such as request for transfer to a shareholder’s account, request for purchase of odd-lot shares, noti� cation of change of registered address and instructions for a dividend transfer to the account manager (Mitsubishi UFJ Trust and Banking) at the contact given below. Procedures relating to special accounts will be carried out by Mitsubishi UFJ Trust and Banking at its head office and branch offices throughout the country.
(3) Special account manager
Mitsubishi UFJ Trust and Banking Corporation, as our shareholder registry administrator, will act as the account manager of special accounts.
(4) Commencement date of procedures undertaken by the manager of special accounts
Please note that requests and notifications concerning shares recorded in special accounts, such as request for a transfer to a shareholder’s account and request for purchase of odd-lot shares, will be accepted after Monday, January 26, 2009.
2. Registration of shareholder names and addresses
If shareholder names and addresses include kanji characters not speci� ed by JASDEC, all or part of such names or addresses will be replaced with characters speci� ed by JASDEC and registered as such on the list of shareholders. Please note that in these cases the characters speci� ed by JASDEC will be used when addressing notices to be sent to shareholders.
Shareholder Memo● Accountig year
● Stock exchange where Avex stock is listed
● Account manager
● Media where stock information is posted
● Administrator of shareholder registry
● Share transfer agents
● Contact
● Contact
● Regular general shareholders meeting
● Date for determining shareholders eligible for interim dividend receipt
● Date for determining shareholders eligible for year-end dividend receipt
April 1 to March 31 of the following year
First Section of Tokyo Stock Exchange (Security code No. 7860)
Mitsubishi UFJ Trust and Banking Corporation 1-4-5 Marunouchi, Chiyoda-ku, Tokyo
Via on-line noti� cationURL 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� cation impossible.)
Mitsubishi UFJ Trust and Banking Corporation
Branches of Mitsubishi UFJ Trust and Banking Corp. (Please refer to the following notice.)
Corporate Agency Division, Mitsubishi UFJ Trust and Banking Corp.7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081 TEL: 0120-232-711 (toll free)
Corporate Agency Division, Mitsubishi UFJ Trust and Banking Corp.7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081 TEL: 0120-232-711 (toll free)
June of each year
September 30
March 31
For request for forms concerning shares
Please go to the website or call the 24-hour number below to request a form for procedures related to shareholdings, such as noti� cation of a change of registered address, etc., instructions for a dividend transfer or request to purchase odd-lot shares. Please note that following the implementation of the electronic share certi� cate system, only requests for forms for procedures relating to shares kept in a “tokubetsu kouza” (special account) will be responded to.
TEL: 0120-244-479 (toll free) http://www.tr.mufg.jp/daikou/
<Reference> For more information on the electronic share certi� cate system, please refer to the Q&A section of the Reform Promotion Center For Securities Clearing and Settlement System website (http://www.kessaicenter.com/kaikaku/kabuken10aa.pdf). If you cannot � nd the information you need or have speci� c inquiries, please contact the electronic share certi� cate system call center.*TEL: 0120-77-0915 (toll free, weekdays and Saturdays from 9:00 to 17:00) * The electronic share certi� cate system call center is a consultation service jointly provided by JASDEC, Japan Securities Dealers Association and Tokyo Stock Exchange Group, Inc.
Shareholder Memo 22nd Semiannual Business Report
Avex Group Holdings Inc.22nd Semiannual Business Report From April 1, 2008 to September 30, 2008
● Inquiries about this booklet
Stock Affairs Section,Group Administration Headquarters
0120-39-8550 (Weekdays: 10:00 to 18:00)
Avex Group Holdings Inc.�22nd Semiannual Business Report
From April 1, 2008 to September 30, 2008
Avex Group Holdings Inc. Avex bldg.,
3-1-30 Minami-Aoyama, Minato-ku,Tokyo 107-8577 Japan
URL http://www.avex.co.jp/
This booklet uses soybean oil ink certified by the American Soybean Association.
©avex marketing