S tands for the Swedish Performing Rights Society I s an economic association that is owned by thosewho create music and by music publishers I s a non-profit organization W orks on behalf of its registered authors and music publishers D efends their economic interests as defined in the Swedish Copyright Act A lso works on behalf of corresponding organizations in other countries I ssues licenses to those who wish to use and distribute music C ollects the licensing fee D istributes royalties to individual authors and their music publishers P romotes Swedish musical culture
2012 ANNUAL REPORT
STIM in numbers
3
A word from the CEO
4
The STIM process – from license to distribution
6
Distributions in 2012 were at an all-time high
8
STIM soon as big as Skellefteå
12
Swedish composers' successes are paving the way for global collaboration
14
Scholarships
17
Multi-faceted festival year –and sold-out arenas
18
STIM - promoting the Swedish music culture
20
Streamed music increasing in popularity – and now TV is next
22
Music choice important for business
24
Gender equality organization – equipped for the future
26
The STIM sphere
28
STIM committees
32
Administration Report
36
Notes
42
2012 | STIM ANNUAL REPORT
2012 | STIM ANNUAL REPORT
STIM IN NUMBERS
TOTAL OPERATING INCOME IN SWEDEN AND ABROAD
SEK 1.5 BILLION NUMBER OF STIM MEMBERS
71,291
AN INCREASE
OF 40% IN SEVEN YEARS
INCOME FOR
ONLINE PERFORMANCES INCREASED BY
43.4%TO 2011 COMPARED
SEK 8.1 MILLION
ALLOCATED TO SCHOLARSHIPS
NUMBER OF REPORTED WORKS
WTIH AT LEAST ONE STIM-AFFILIATED AUTHOR
1,223,058 FOUNDED 1923
3
2012 | STIM ANNUAL REPORT
A FEW WORDS FROM CEO
KENTH MULDIN STIM is an organization for authors and music publishers. We exist so that authors are paid when their music is used. After deducting costs, all revenue is sent to the authors and music publishers. STIM is a genuine not-for-profit organization. Our affiliates make the decisions in STIM. This is a fantastic strength and has contributed to making STIM a dynamic organization. One piece of particularly good news is that STIM's authors and music publishers developed strategies at an early stage for how the use of music on the Internet can be licensed. In 2012 we reaped the benefits of this long-term project. One of the important guiding principles for STIM's owners has been to be receptive to change. The ability to utilize technological developments and changes in the market to benefit our members has been very important in recent years. Benefits for our members in practice also mean good, simple solutions for music users. The initiatives STIM has taken online are examples of this. It is important that we provide a valuable service and create added value for both rightsholders and licensees. Our focus is to make the administration of music rights simple, effective and transparent. In 2012 STIM experienced: • continued international successes for our authors • strong growth in the online market • revenue growth in other important areas • intensive development of national and international licensing systems • strong focus on international cooperation projects • major involvement in EU's work with the Collective Management Directive • creation of new methods for promoting the Swedish music culture and the promotion of Swedish music • work to reform STIM's distribution rules • move of STIM's office and the establishment of ”The STIM Building” STIM-licensed revenue increased in total by more than 8 percent. Revenue from the online area increased by more than 43 percent. Revenue from TV decreased by more than 6 percent, which is due to the fact
4
that in 2011 this item included unusually high retroactive revenue. The markets for background music and live music are showing an increase of more than 12 percent. Foreign revenue decreased by 1 percent due to foreign exchange rates and the restructuring of distribution procedures at some collecting societies. Mechanical reproduction revenue continued to fall, but the curve is not as dramatic as many people expected. In 2012 STIM's revenue from NCB decreased by 10 percent. The total costs for STIM's operations as a whole increased 4 percent. However, a comparison of total operating income to total operating costs shows that STIM's administrative overhead ratio is basically unchanged at just under 11 percent. The Swedish STIM distributions to authors and music publishers increased by almost 10 percent. Overall, 2012 was a good year for STIM. However, several challenges are waiting just around the corner. We would like to: • develop, streamline and improve the licensing in Sweden • develop and establish international licensing and administration cooperations • create even better services for our affiliates • finalize in 2013 the reforms to STIM's distribution rules This means that 2013 will be a year when many important initiatives fall into place. I am convinced that STIM will continue to welcome change, and I look forward to participating in the development of collective rights management.
Kenth Muldin CEO
5
2012 | STIM ANNUAL REPORT
THE STIM SYSTEM FROM LICENSE
TOÂ PAYMENT The Copyright Act provides the creator of a musical work the copyright to that work. This person is entitled to decide whether the musical work is to be performed in public, recorded, copied or otherwise distributed, and to grant permission to do so. The act establishes entitlement to economic compensation. By becoming a registered member of STIM, authors and their music publishers instruct STIM to manage their economic rights, as laid down in the law on copyright. Those who become registered members of STIM notify details of their musical works. These are documented by being entered in the works register with details of current ownership shares. Information about foreign musical works is also entered in the works register. STIM licenses the works, collects the royalties due and then pays them to the authors and their music publishers on an individual basis. The amount of the royalty is based on the tariffs or agreements stipulated in the signed agreement. STIM instructs its counterparts in other parts of the world to defend the economic rights of STIM-affiliated members in their respective territories. The payment is sent to STIM for onward distribution to the STIMaffiliated members. In the same way, STIM represents rights to foreign music performed in Sweden. Payments to authors are calculated on the basis of reports about which music has been played, recorded, downloaded or streamed. The information in the reports is linked to the details in the works register on who at the time owns the rights to the musical works used. The royalties are distributed according to STIM's distribution rules and paid to the musical works' creators and their publishers, as well as to corresponding foreign organisations. These organisations subsequently forward remuneration to their members.
6
2012 | STIM ANNUAL REPORT
Money in
INTERNET/MOBILE PERFORMANCES/MECHANICAL REPRODUCTIONS MUSIC REPORTS FROM ONLINE MUSIC SERVICES
PUBLIC PERFORMANCES IN SWEDEN
RECORDINGS (MECHANICAL REPRODUCTION) IN SWEDEN PRODUCTION CONTENT TO WORKS FROM THE PRODUCER CORRESPONDING ORGANIZATIONS IN OTHER COUNTRIES
IDENTIFICATION MATCHING
MUSIC REPORTS FROM ARTIST OR ORGANIZERS CORRESPONDING ORGANIZATIONS IN OTHER COUNTRIES
DISTRIBUTION OF MONEY BETWEEN WORKS AND RIGHTSHOLDERS
DIRECTORY OF WORKS
PAYMENT PAYMENT IS MADE SEVERAL TIMES A YEAR
Money out MUSIC PUBLISHERS
CORRESPONDING ORGANIZATIONS IN OTHER COUNTRIES
REPORTING WORKS WITH BREAKDOWN OF SHARES WITHIN WORKS
INFORMATION ABOUT WORKS FROM OTHER RIGHTSHOLDERS
MEMBERSHIP APPLIES TO PUBLIC PERFORMANCE AND RECORDINGS (MECHANICAL REPRODUCTION)
AUTHOR
MEMBERSHIP APPLIES TO PUBLIC PERFORMANCE AND RECORDINGS (MECHANICAL REPRODUCTION)
7
2012 | STIM ANNUAL REPORT
DISTRIBUTIONS IN
2012
WERE AT AN ALL-TIME HIGH The core of STIM's assignment is to pay money to the rightsholders whose music is played in public. The organization has been very successful in this area for a long time. In 2012 STIM paid almost SEK 1.3 billion, which is more than it has ever paid before. The largest revenue increase in 2012 was in the Online and new media area, which as a whole increased by SEK 49 million, or 43 percent. Revenue in the Live and Background Music areas also increased sharply during the year. Record sales continue to fall, but at a slower rate. In 2012 revenue related to record production landed at approximately the same level as revenue from Online and new media.
Performance revenue, Sweden, SEK million 800
But it is not sufficient to merely increase market coverage. Working consistently to minimize the administrative costs has become an increasingly important goal for collecting societies. In order to be able to compare the efficiency of different organizations, we use a comparison figure, i.e. the administrative overhead ratio. This describes the relationship between the administrative costs and total revenue. STIM's administrative overhead ratio in 2012 was the same as in 2011, just under 11 percent, which in an international comparison puts STIM among the most efficient collecting societies in the world.
Mechanical reproduction revenue, SEK million 300
700
+8.3% +7.2%
600 500
A prerequisite for STIM's continued success is, naturally, the attractive repertoires that we represent. With this as support, we continue to increase the number of customers in the traditional market, while at the same time we are working with industry representatives to find systems for the new areas of use for music that are constantly appearing.
250
+7.1%
+20.2%
200
-19.1%
+9.5% -14.9%
400 300
150
100
200 100 0
8
50
0
-10.4%
2012 | STIM ANNUAL REPORT
Total revenue per revenue category
International distributed by STIM 2.9%
Mechanical reproduction 11.2%
Radio and TV 23.5%
International 30.1%
Payment of performance revenue, Sweden 2012
Foreign music with STIM affiliated sub-publishers 25%
Foreign music 39%
Live music 8.2%
Online and new media 11.0%
Background music 10.6%
Music with STIM affiliated authors and music publishers 36%
Other revenue 1.8% Private copying levy 0.7%
STIM's profit before distribution, SEK million Performance in Sweden Performance abroad Performance abroad for distribution by STIM Other revenue Total revenue for performances Operating costs Distributable revenue for performances Mechanical reproduction STIM 's profit before distribution
Distribution of STIM's profit, SEK million Royalties for performances in Sweden Promotion of Swedish music Scholarships Royalties for performances abroad Royalties for performances abroad that are distributed by STIM on behalf of a third party Royalties for mechanical reproduction Distribution of STIM's profit
2012
2011
%
785.1
724.8
8.3%
443.0 42.8 36.0
457.5 34.9 40.8
–3.2% 22.6% –11.8%
1,306.9 –160.4 1,146.5 165.5 1,312.0
1,258.0 –154.3 1,103.7 184.8 1,288.5
3.9% 4.0% 3.9% –10.4% 1.8%
2012
2011
%
626.7 32.6 8.1 443.0 36.1 165.5 1,312.0
571.7 37.2 7.8 457.5 29.5 184.8 1,288.5
9.6% –12.4% 3.8% –3.2% 22.4% –10.4% 1.8%
9
2012 | STIM ANNUAL REPORT
Distribution per category of revenue DISTRIBUTION CATEGORY
PAYMENT TO BE DISTRIBUTED
PAYMENT DETERMINED AMOUNT BY NATURE OF COLLECTED SEK PERFORMANCE / MILLION WORK
AMOUNT DISTRIBUTED SEK MILLION
% MUSIC WITH STIM AFFILIATED AUTHORS AND MUSIC PUBLISHERS
% FOREIGN % FOREIGN MUSIC WITH MUSIC STIM AFFILIATED SUB-PUBLISHERS
1
Concerts total of all of the catPublicly subsidized egory's music reports concerts with contemporary classical music
Grading large/small concert
7.1
(5.6)
5.4
(4.3)
34
(35)
16
(14)
50
(51)
2
Church concerts
total of all of the category's music reports
grading
2.1
(1.7)
1.6
(1.3)
49
(55)
13
(9)
38
(36)
4
Dance - discothèque
total of the category's statistically selected music reports
grading
9.6
(7.5)
7.3
(5.7)
36
(33)
27
(26)
37
(41)
5
Other live music, logged concerts and other performances with reporting
per music report
grading
66.6
(56.5)
50.8
(43.1)
60
(60)
17
(16)
23
(24)
6
Other live music, unlogged
based on information from the Other live music category
in accordance with analogous data
35.9
(30.7)
27.4
(23.4)
69
(63)
12
(14)
19
(23)
7
Theatre music
total of all of the category's music reports
grading
0.7
(0.6)
0.5
(0.5)
20
(25)
32
(27)
48
(48)
8
Background music, logged Recorded background music
per music report and total of all of the category's music reports
grading
2.1
(1.9)
1.6
(1.4)
42
(62)
24
(12)
33
(26)
9
Background music, unlogged
based on data from SR, commercial radio, TV and record sales/ downloads in Sweden
in accordance with analogous data
135.8
(128.2)
103.6
(97.9)
39
(37)
25
(26)
36
(37)
10
Public service radio
total of all of the category's music reports
grading
50.7
(49.8)
38.7
(38.0)
36
(36)
21
(21)
43
(43)
11
Public service TV
total of all of the category's music reports
grading
70.7
(82.9)
54.0
(63.3)
29
(31)
20
(20)
51
(49)
12
Commercial radio
total of all of the category's music reports
grading
27.2
(27.4)
20.8
(20.9)
28
(26)
33
(35)
39
(39)
13
Commercial TV
total of all of the category's music reports
grading
148.2 (153.8)
15
(16)
28
(29)
57
(55)
14
Community radio
total of the category's selected music reports and analogous data from SR, P4 local radio, respectively
grading and in accordance with analogous data
15
Cinema, Movie, Theaters
per music list and movie
16
Online and new media, logged
total of all of the category's music reports
grading
19
Online and new media, unlogged
based on data from SR, SVT and commercial radio
in accordance with analogous data
7.7
17
Private copying levy
based on data from SR, TV and record sales/ downloads in Sweden
in accordance with analogous data
18
Library levy
based on borrowing statistics from libraries
20 International perfor-
194.2 (201.5) 3.4
(3.3)
2.6
(2.5)
38
(38)
25
(25)
37
(37)
17.3
(14.7)
13.2
(11.2)
12
(18)
33
(32)
55
(50)
153.9 (106.9)
139.5
(97.1)
45
(46)
28
(26)
27
(28)
(5.7)
6.9
(5.1)
30
(30)
27
(28)
43
(42)
10.2
(7.4)
10.2
(7.4)
58
(58)
28
(28)
14
(14)
2.5
(2.5)
2.5
(2.5)
100
(100)
0
(0)
0
(0)
(457.5) 443.0 (457.5)
47
(41)
53
(59)
0
(0)
(29.5)
15
(15)
48
(44)
37
(41)
165.5 (184.8)
39
(35)
61
(65)
0
(0)
443.0
mance royalties
21
International performance royalties, for distribution by STIM
98 Mechanical
reproduction rights
10
42.8
(34.9)
165.5 (184.8)
36.1
Profit, SEK million Klara and Johanna Sรถderberg in First Aid Kit
1400 1200 1000 800 600 400 200 0
Mechanical reproduction Performance
11
2012 | STIM ANNUAL REPORT
STIM SOON as big as
SKELLEFTEÅ The number of STIM afffiliates has increased by almost 33% in the past five years. The number of new members in 2012 was also strong. During 2012, 3,088 authors and 142 music publishers registered with STIM. At year-end, STIM had 71,291 affiliates, of which 68,273 were authors and 3,018 were music publishers. This means that there are just as many members in STIM as there are residents in Skellefteå Municipality. The breakdown between men and women is roughly the same as before, i.e. just under 20 percent women and just over 80 percent men. However, this trend appears to be changing – of the new affiliates in 2012, the share of women was slightly higher, more than 23 percent. A number of activities are being conducted among STIM's affiliates to raise an interest in music creation among young women and to include women's music to a larger extent in the repertoire of the concert institutions. It is worth noting that foreign rightsholders continue to register with STIM – both authors and music publishers. At the end of 2012, STIM
Number of affiliates 80,000
Publishers Authors
70,000
had more than 1,000 registered rightsholders from 64 countries throughout the world. This shows that STIM is a strong international player in the competition for music rights. Stim Music Expo, the annual music industry trade show, was held as usual in October. This fully scheduled all-day event pulled around 700 people and filled Hotel Rival. Based on the survey filled in by the visitors, this year's Stim Music Expo was also much appreciated. During the day, international hit writer Johan ”Shellback” Schuster won STIM's award, the Platinum Guitar. The Platinum Guitar has been awarded since 2004 to a STIM-affiliated author who has experienced exceptional success during the year. In December, the STIM scholarships were handed out at a ceremony at The STIM Building. The objective of STIM's scholarships is to encourage the broad, professional creation of music in all genres.
Number of works with at least one STIM affiliated author 1,300,000 1,200,000 1,100,000
60,000
1,000,000
50,000
900,000 800,000
40,000 30,000 20,000
700,000 600,000 500,000 400,000
10,000 0
12
300,000 200,000
2012 | STIM ANNUAL REPORT
13
2012 | STIM ANNUAL REPORT
SWEDISH COMPOSERS' successes are paving the way for
GLOBAL COLLABORATION Swedish music successes are continuing unabated. This means that STIM can take a leading position in an international context – in terms of both collaborations and competition. During large parts of 2012, Swedish song writers were completely dominant on the top half of the Billboard chart, and on many other charts around the world. Johan ”Shellback” Schuster and Max Martin are topping the charts week after week, sometimes with other STIMaffiliated songwriters, such as Carl Falk, Rami Yacoub, Jörgen Elofson and Avicii. Max Martin was named Pop Music Songwriter of the Year in the spring of 2012 by American performing rights organization ASCAP. This is the fifth time this songwriter and producer won this award – he won in 1999, 2000, 2001 and 2011. In the 2012 Eurovision Song Contest, the Swedish entry, which was written by STIM members Thomas G:son and Peter Boström, took home the coveted first prize. But this winning song was not the only one that had a link to STIM. STIM-affiliated songwriters were behind no less than nine of the entries in the finale. Swedish music exports are much more than just top hits on the charts. Swedish metal has a broad, dedicated international following with bands such as Opeth, In Flames and Sabaton. Under the international definition of jazz/folk, artists such as Lisa Ekdahl, Nils Landgren, Oddjob and First Aid Kit continue to attract attention outside of Sweden. Singer-songwriters such as Lykke Li and Ane Brun have made a name for themselves outside of Sweden.
In terms of art works, the music of STIM affiliated composers made an impression on international stages in 2012. For example, an entire festival in Toronto was dedicated to the music of Anders Hillborg at the beginning of the year. At the same time, Rolf Martinsson's successes in Europe continued. A younger generation of composers is being played regularly in other countries, for example Tobias Broström and Esaias Järnegard, whose music was performed in both Europe and the USA in 2012. The STIM affiliated composers Hanna Hartman and Klas Torstensson, both of whom live abroad (Germany and Holland, respectively) have created a following not only in their home countries but also internationally. The reason Swedish music is so successful around the world is partly structural, i.e. popular movements, municipal music schools and a musical infrastructure. An openness to influences from other cultures and the creative self-image that was formed, for example, by the Cheiron studio's successes in the 1990s, have also played an important role. Just like in Finland, where successful conductors are continuously emerging, the Swedish music marvel has become the norm. There has been no indication that the successes will abate, and in fact the opposite holds true. The positive image of Sweden as a music nation combined with Sweden's strong IT skills and long tradition of cooperation has created excellent conditions for STIM's international work. Today, STIM is one of the most influential copyright organizations in the world and
Songs with the most foreign revenue in 2012 (with at least one STIM-affiliated author)
14
Title
Author
Artist
F**KIN PERFECT
MARTIN, M/SHELLBACK/MOORE, A
PINK
RAISE YOUR GLASS
MARTIN, M/SHELLBACK/MOORE, A
PINK
DJ GOT US FALLING IN LOVE
KOTECHA, S H/PEREZ, AC/MARTIN, M/SHELLBACK
USHER feat. PITBULL
I-I-I WANNA GO-O-O
MARTIN, M/SHELLBACK, J/KOTECHA, S H
BRITNEY SPEARS
TILL THE WORLD ENDS
MARTIN, M/GOTTWALD, L/SEBERT, K/KRONLUND, A
BRITNEY SPEARS
MOVES LIKE JAGGER
LEVINE, A/MALIK,A/LEVIN, B/SHELLBACK
MAROON 5
LAST FRIDAY NIGHT (T.G.I.F.)
MC KEE,B L/GOTTWALD, L/MARTIN, M/PERRY KATY
KATY PERRY
ET
PERRY KATY/GOTTWALD, L/COLEMAN, J E/MARTIN,M
KATY PERRY
DANCING QUEEN
ANDERSSON, B/ULVAEUS B/ANDERSON, S
ABBA
ON THE FLOOR
PEREZ, A C/HAJJI, B/HAMID, K V/JANNUSI, A/KHAYAT, N/HERMOSA GONZALES, G/HERMOSA GONZALES, U/TEDDY, S
JENNIFER LOPEZ
John Eriksson, Björn Yttling and Peter Morén in Peter Bjorn and John
is represented in basically all of the international contexts where the music market of the future is being formed. One example of a successful and innovative international cooperation is ICE, International Copyright Enterprise AB. The company is currently owned by STIM and our British counterpart, PRS for Music. ICE and the international cooperative FastTrack received the assignment to deliver the technical platform for the global repertoire database, GRD. The purpose of this database is to facilitate the online dissemination of music and at the same time be able to quickly handle payments to rightsholders. Through the ICE cooperation, STIM is in all material respects ready to work in accordance with the regulations the EU Commission proposed last summer for all European performing rights organizations. Before the Directive can be adopted, it must be approved by the EU Council and the European Parliament.
At the beginning of 2012, STIM presented its new technological solution, the WOI portal, which enables the simultaneous licensing of rights in multiple territories. During the year STIM also negotiated an agreement with the influential publisher, Kobalt Music Group. In January 2013, STIM and Kobalt announced that they had jointly started a company, Kobalt STIM Aggregated Rights AB, to license rights for multiterritorial, digital music services. STIM's foreign revenue fell by 1 percent between 2011 and 2012. The cause behind this was not that Swedish music was played less in other countries, but rather primarily that other performing rights organizations changed their payment periods. The future for STIM as an international player – both in terms of collaboration and competition – is bright. And there have not been any indications that its successes will abate.
15
2012 | STIM ANNUAL REPORT
STIM - BALANCE OF PAYMENTS WITH INTERNATIONAL COLLECTING SOCIETIES 2011 AND 2012 2012 (SEK thousand) Countries
Finland Denmark
Of which, revenue Of which, revenue Paid from sub-published from Swedish foreign music music abroad
Received
Of which, revenue Of which, revenue Paid from sub-published from Swedish foreign music music abroad
78,088
67,979
10,109
5,326
77,014
66,320
10,694
4,895
133,042
114,978
18,065
10,875
140,026
120,729
19,297
11,970
Iceland
1,810
1,627
184
0
2,323
2,136
187
214
Norway
63,330
48,539
14,791
5,311
80,179
60,184
19,995
5,613 170
Estonia
1,542
1,233
309
100
2,308
2,075
233
Latvia
4,303
3,661
643
42
2,230
2,059
171
53
Lithuania
3,525
3,109
416
121
3,700
3,281
419
93
285,641
241,126
256,784
50,996
23,009
Total Nordic & Baltic
44,515
21,776
307,780
Belgium
3,853
3,853
513
3,708
3,708
410
France
7,305
7,305
10,035
11,521
11,521
11,532
Greece
371
371
158
508
508
106
Ireland
1,561
1,561
720
1,060
1,060
459
Israel
726
726
82
361
361
146
Italy
5,125
5,125
2,866
4,092
4,092
1,879
Netherlands
15,914
15,914
2,882
8,873
8,873
2,202
Poland
2,369
2,369
254
2,713
2,713
337
Portugal
449
449
65
310
310
104
Romania
427
427
106
1,335
1,335
97
Russia
977
977
218
712
712
318
4,075
4,075
1,314
3,503
3,503
687
333
333
30
392
392
58
Spain
4,664
4,664
2,975
3,763
3,763
1,714
Great Britain
21,851
21,851
46,858
23,121
23,121
43,046
608
608
192
764
764
272
19,480
19,480
7,117
20,008
20,008
7,530
Switzerland Slovakia
Czech Republic Germany Hungary
1,335
1,335
96
1,679
1,679
104
Austria
3,274
3,274
746
2,780
2,780
683
Rest of Europe Total Europe (excl. Nordic & Baltic) Argentina
542 95,239
0
542
165
843
95,239
77,391
92,046
0
843
227
92,046
71,910
653
653
489
237
237
394
Australia
6,892
6,892
4,485
7,276
7,276
4,498
Brazil
2,575
2,575
704
2,753
2,753
161
216
216
12
163
163
11
Japan
7,277
7,277
457
6,344
6,344
502
Canada
6,484
Hong Kong
5,574
5,574
6,865
5,390
5,390
Korea
730
730
19
548
548
38
Mexico
478
478
103
666
666
232
Singapore South Africa USA Other Total Rest of world (excl. Europe, Nordic & Baltic) TOTAL
16
Received
2011 (SEK thousand)
504
504
0
366
366
25
1,659
1,659
202
2,150
2,150
233
35,568
35,568
119,336
33,302
33,302
110,511
1,761
1,761
99
839
839
242
63,888
0
63,888
132,771
60,033
0
60,033
123,333
444,768
241,126
203,641
231,938
459,859
256,784
203,075
218,252
2012 | STIM ANNUAL REPORT
SCHOLARSHIPS Every year, STIM earmarks three per cent of the STIM members' Swedish royalties for scholarships. Only STIM affiliated authors are eligible to apply for these scholarships, which are awarded once a year. Of the scholarship funds for 2012 totaling SEK 8.1 million, SEK 4.7 million was allocated to STIM scholarships and SEK 3.4 million was split equally between FST and SKAP. Ahovalli, Jimmy
Ekelund, Magnus
Karlsson, Sofia
Olsson Bauer, Axel
Söderberg, Johanna
Almgren, Karolina
Eklöf, Andreas
Krafman, Johan
Persson, Britta
Söderberg, Klara
Almgren, Malin
Eriksson, Anna
Küchen, Martin
Persson, Cecilia
Sörling, Isabel
Almgren, Vera (to be shared with Jack Almgren and Linnea Eriksson)
Evileye, Ida
Larsson, Jeremia
Tarrodi, Andrea
Moin, Mahan Fathi
Larsson, Karl
Richter, Suvi (to be shared with Julius Duhs) Rintamäki, Jukka
Antilla, Kristian
Flyckt, Rasmus (to be shared with Emil Gustafsson)
Lidbo, Håkan
Risberg, Mattias
Lindebergh, Mikael
Risberg, Susanna
Lindfors, Elin (to be shared with David Lehnberg)
Rosen, Gustav
Bao, Noonie Force, Klara Beijbom, Daniel Grönberg, Niklas Benkahla, Nadir
Tomner, Martina von Hofsten, Anders Rydvall, Erik
Gustafsson, Emelie
Rådström, Victor
Warelius, Dennis (to be shared with William Turner, Christoffer Apell, Patrik Larsson and Niclas Staberg)
Samuelsson, Marie
Wennström, Niklas
Sandell Billström, Olivia (to be shared with Lisa Grotherus, Erik Boman, Timmy Fredriksson, August Persson and Eric Ahlqvist)
Westin, Maja (to be shared with Lina Westin)
Lindsjö, Clara
Bergmark, Johannes
Rylander, Lisen Hedberg, Johan
Bertilsson, Andreas Hellstrand, Staffan Blomdahl, Tony
Lindström, Niclas(to be shared with Daniel Gustafsson, Jakob Gustafsson and Daniel Svensson)
Hogman, Sanna Livebrant, Sofie
Bromander, Vilhelm Humlebo, Oskar Carlberg, Martin Hylander, Tobias Cervin, Billy (to be shared with Joacim Nilsson, Hugo Mårtensson and Elias Jungqvist) Coldheart, Mia Correia de Verdier, Leo Costéus, Henrik (to be shared with Daniel Cvetcovic) Danell, Daniel
Ljungqvist Henrik (to be shared with Otto Wallgren)
Johansson, David
Lundin, Linus (to be shared with Emil Lundin, Oscar Rydelius and Fredrik Johansson)
Johansson, Jäje
Löfberg, Anders
Högberg, Fredrik
Johansson, Natalie Johansson, Ove Jutterström, Johan
Shah, Rebin Sidén, Eva
Wicked, Nicki Wärme, Sabina (to be shared with Amanda Lindgren) Zethraeus, Leo
Sigvardsson, Elin Ruth Zetterlund, Magnus
Magnusson, Per Simmerud, Patric
Åberg, Johan
Molavi, Saeed Stackenäs, David
Åhlund, Lars
N’Diaye, Mary Staern, Benjamin
Jäger, Mio (to be shared with Maria Säfstrand, Elizabeth Andrews and Sandra Randi Stensen)
Abdelaziz, Karima Nait
Diffner, Fredrik (to be shared with Alexander Ceci Forsberg, Oliver Boson and Arthur Acking)
Kadic, Adna
Nordström, Fredrik
Sundemo, Frida (to be shared with Joel Humlén)
Kallerdahl, Fabian
Nurulla-Khoja, Farangis
Svensson, Fabian
Duncanson, Johan
Karlsson, Nalle
Olsson, Ida
Svensson, Johan
Devercerski, Alina (to be shared with Christoffer Wikberg)
Thurfjell, Lovisa (to be shared with Lisa Löfgren, Canan Rosén and Lotta Wennström)
Öberg, Linn Stolt, Benjamin
Nilsen, Charlotta
17
2012 | STIM ANNUAL REPORT
Multi-faceted festival year
and sold-out arenas More and more live music is being played in Sweden. Despite rising ticket prices, more people are choosing to attend concerts and festivals. It is obvious that live music plays an important role in people's lives. Many of the visitors to the summer's music festivals got wet and cold. But this is not to say that 2012 was a lost year for the festival promoters.
fans with three sold-out concerts in the newly opened Friends Arena in Solna. Tim ”Avicii” Berg also sold out three arena shows in Stockholm.
The EDM festival, Summerburst, which had its premier in 2011 as a one-day festival in Stockholm, expanded to two days and also established itself in Gothenburg. A number of new festivals were also held throughout the year. The three-day Stockholm Music and Arts festival in August sold out quickly. The new Öresund Festival, a cooperation between music venues in Malmö and Copenhagen, presented a broad, two-day program within the electro-soul, reggae, experimental jazz and indie rock genres. A number of musical events were arranged at Hesselby Slott outside of Stockholm during the year, but the one that received the most attention was Stockholm Folk Festival, a twoday festival in August that offered an ambitious program of folk and world music.
In addition to the large shows that were held at music festivals and arenas, a large number of smaller music venues – clubs, restaurants and music associations – throughout the country continued to promote concerts. One of these devoted concert promoters, the Sticky Fingers rock club in Gothenburg, received the STIM Guitar in April. This award is intended to encourage work that results in financial compensation for composers and songwriters when their music is played.
German festival promoten FKP Scorpio, announced that in June 2013 it will be holding a giant festival in Bråvalla outside of Norrköping. FKP Scorpio also promotes the Hultsfred festival (since 2011) and Getaway Rock Festival (since 2012).
Anna-Lena Laurin, a composer who moves freely between jazz and art music, was one of the composers who received a lot of attention in 2012. During the year she premiered in big band jazz, chamber music and orchestral music, including Persephone for orchestra and jazz groups that premiered in Helsingborg in September.
STIM continues to focus on its communication with the festival promoters, in part through a regular newsletter but also through personal contact with festivals throughout Sweden. At the end of the year, STIM was in discussions with Sweden Rock Festival. These discussions resulted just a few days into 2013 in the resolution of a dispute that had been going on for several years. The parties were thus able to withdraw their claim from the court. Performances in large arenas continue to draw large crowds, not in the least for EDM. Swedish House Mafia said goodbye to their Swedish
18
The number of art music premiers increased in 2012. No less than 325 newly composed works of music premiered during the year, which can be compared to just over 200 the year before. A handful of these were held at the Sounds of Stockholm festival at Kulturhuset in November.
Anders Hillborg, who in 2011 became the first Swede to have the premier of a commissioned work performed by the Berlin Philharmonic, was asked in January 2012 by the Los Angeles Philharmonic to write a piece for Polar Prize winner, cellist Yo-Yo Ma, and pianist Emanuel Ax. The new work will premier some time during the 2013‑2014 season. One of the world's oldest festivals, Nordic Music Days (which has been arranged since 1888), rotates between the Nordic countries. In the fall of 2012 the festival returned to Stockholm and lit up three locations in the city for four days in October.
Anders Hillborg
19
2012 | STIM ANNUAL REPORT
STIM - PROMOTING the Swedish
MUSIC CULTURE By promoting the creation and distribution of both new music and what is referred to as "areas of music that are vulnerable to market forces", STIM's owners want to contribute to a vital and multi-faceted Swedish music culture. The possibility of allocating up to 10% of the Swedish revenue after deductions for expenses to fund Swedish music is written into the reciprocal agreements between STIM and its international counterparts. In 2012, STIM allocated a total of SEK 32.6 million to national funds. Until 2012, STIM's operations were primarily carried out via the subsidiary Svensk Musik Swedmic AB, which worked with communications, PR activities, sheet music and documentation. In addition, the national funds were also used as special support for music areas that are vulnerable to market forces and grants for the owner associations' projects and member activities. Svensk Musik In 2012, Svensk Musik finished an opera anthology that contains a unique collection of Swedish opera arias written during the period 1874–2009. The sheet music in four volumes contains 147 arias from 89 operas. No less than 54 Swedish composers are represented in the anthology: Elfrida Andrée, Helena Munktell, Kurt Atterberg, Karl-Erik Blomdahl, Jonas Forssell, Hans Gefors, Paula af Malmborg, Karin Rehnqvist, SvenDavid Sandström, Wilhelm Stenhammar, and many more. During the year the following three CD releases were finalized under the inhouse label, Phono Suecia:
Promotion Committee Svensk Musik's assignment changed in 2012 and a new promotion committee was established, STIM's Committee for the Promotion of Swedish Music. The Promotion Committee should create conditions for the future creation of music. It should strive to be at the forefront in terms of understanding the new Swedish music and using the best tools and projects to disseminate information about this music. During the Promotion Committee's first operational year, around 25 different types of projects were implemented or initiated. The projects cover a wide base, for example: Swedish music in Spanish in Mexico – presenting, introducing and opening a new market for Swedish music in Latin America. Plug-in – continued education in the creation of music for music teachers in elementary and middle schools.
Swedish Concertos for Soprano Saxophone (PSCD 188) Solo concerts by Rolf Martinsson, Sven-David Sandström and Anders Eliasson. Soloist: Anders Paulsson.
KVAST network (Association of Swedish Women Composers) – development and marketing of the KVAST webpage – a website with information about composers and repertoires.
ZzzKaa’s Dance (PSCD 191) The Nogenja ensemble performs compositions by Bosse Broberg.
In addition, a preliminary study for international projects, copyright seminars and much more was started.
Pendants (PSCD 192) Benjamin Carat and Gageego! under the leadership of Pierre-André Valade perform works by Jesper Nordin.
20
In 2012, the project to scan in all of Svensk Musik's database of unpublished contemporary Swedish art music, in total 18,400 works, was completed. Only the digital copies are now used for printing sheet music. All of the original manuscripts are stored at the National Archives.
Ann Rosén, Ida Lundén and Lise-Lotte Norélius in Syntjuntan (Synth Circle)
21
2012 | STIM ANNUAL REPORT
STREAMED MUSIC
increasing in popularity - and now
TV IS NEXT Subscription services for streamed music have proven themselves to be a successful concept. The digital market has multiplied in just a few years. All signs are now pointing toward a similar development in the TV segment.
The digital market continues to grow. STIM's Online and new media revenue increased by 43 percent in 2012. In the past five years, revenue has increased tenfold. During the same period, revenue from music on "physical sound carriers" (music on CDs, LPs, etc.) fell by 50 percent, although this decrease has slowed in the past couple years. Revenue from digital music and physical sound carriers are almost the same. Of the digital music services, subscription services for streamed music are the largest. The transition from an ownership model (purchased CDs) to a subscription model has proven itself to be very successful, even for compensating the author.
180 162 +43%
126 108
+71%
90 72 54 36 18 0
22
+64%
+138%
During the year, STIM signed a new agreement with Spotify and started negotiations with Youtube. The start of a development similar to that in the music industry is discernible on the TV market. Several new actors established themselves in Sweden in 2012 and the sale of smart TV sets rocketed. SVT Play has been established for several years, but the commercial channels' on demand TV services are now growing at the same time as viewers are being offered more online-based TV services such as simulcasting (simultaneous web broadcast) and live streaming. STIM continuously analyses the changes in the media market and follows the new techniques for the dissemination of TV that are emerging. As part of this work, we maintain an ongoing dialogue with cable operators and TV channels about the future of the TV market.
Revenue Online and new media
144
It also does not appear to be a problem for streamed music and the downloading of music files to co-exist. Legal downloading of music increased sharply in 2012.
Sonny Boy Gustafsson and Linda Carlsson – Miss Li
23
2012 | STIM ANNUAL REPORT
MUSIC CHOICE IMPORTANT FOR
BUSINESS At the cafĂŠ, on the airplane, in the clothing store or at the hairdresser. Music is played everywhere. But even if more background music is being played today, the way music is being played has changed. Companies are profiling themselves today with the help of music. Everyone wins with this development. The radio that used to be a standard at the hairdresser's or in a clothing store is becoming less common. Music is naturally still present, but today it is used in a manner that is more thought-out. This is a development that is evident in both the sales and service sectors. Companies are working very consciously with music as a tool to profile their operations and to create the right atmosphere in their premises. A number of surveys conducted in the past year confirm the opportunities that are created by taking a deliberate approach to how music is used, both in terms of strengthening the brand and increasing sales.
Shops, shopping centres etc., revenue, SEK million 50
STIM's revenue for music in businesses rose by more than 11 percent in 2012. The largest part of the increase comes from the restaurant industry, which experienced improved profitability since the restaurant tax was lowered at the beginning of 2012. In order to offer a better service to its customers, STIM directed considerable resources in 2012 to the development of a new CRM system. This system will simplify and streamline STIM's contact with its customers, but it also includes a number of improvements to the online services for music reporting and accounting. We also developed a more convenient function for new customers to obtain a license for their use of music. The new system will be taken into operation during the spring of 2013.
Restaurants, revenue, SEK million 30
16
45
14
25
40
Fitness, revenue, SEK million
12 35
20
10
30
15
25
8
20
6
10
15
4 10
5
2
5
0
0
24
0
Example:
Example:
Example:
The license fee for a shop with a sales area of up to 100m2 that is open more than 312 days a year is SEK 1,450 per year, i.e. SEK 4.65 per day of business. Establishments with a sales area of between 2,001-2,500m2 open for more than 312 days a year pay a fee of SEK 17,921 per year, i.e. SEK 57.44 per day of business.
The license fee for the use of background music in a restaurant establishment with 1-20 covers that is open more than 312 days a year is SEK 2,423, i.e. SEK 7.77 per day of business. The fee for a restaurant with 101-150 covers that is open more than 312 days a year is SEK 9,753 per year, i.e. SEK 31.26 per day of business.
The license fee for a supervised fitness session and up to 25 participants is SEK 13.21 per session/occasion. The licence fee for a fitness session with more than 75 participants is SEK 58.93 per session/occasion.
Chief Legal Officer Helena Woodcock and Legal Counsellor Emil Dicksved
25
2012 | STIM ANNUAL REPORT
GENDER EQUALITY ORGANIZATION
equipped for
THE FUTURE As a special interest organization in a competitive market, STIM is subject to special requirements. The solution is to develop its personnel and mix new skills with experience. Authors and publishers are the focus of STIM's activities, which characterises our commitment and corporate culture. A willingness to develop and change is part of this culture, which, for example, is manifested in our constant efforts to develop our work so that it functions as simply and efficiently as possible for our customers and members. This places great demands on the entire organization. The management development program that was started in the fall of 2011 continued during the year. The aims of the program include clarifying the role of the executive management group, establishing a structure for meetings and improving management efficiency. The program comprised development activities at both the group and individual level. The trainee program that was started in 2011 ended in mid-year 2012. A need for a mix of skills was behind the initiative – new knowledge as well as solid experience. Our industry is constantly evolving and we need employees who are aware of the latest research findings and have acquired the tools to apply these findings. At year-end, STIM had 65 employees. The Swedish Equal Opportunities Act requires employers with at least 25 employees to analyse its salary structure once every three years. STIM analyses its salaries every year in collaboration with the STIM branch of local trade union Unionen. The analysis from 2012 shows that women's salaries are 100.26 percent of the men's salaries, and that there are no unjustified salary differences in the organization.
26
2012 | STIM ANNUAL REPORT
Scott Farrant International Director
Kristina Paulsson Director of Finance
Tomas Ericsson Deputy CEO and Head of Strategy
Karin Jihde Communications Director
27
2012 | STIM ANNUAL REPORT
THE
STIM SPHERE
Board of Directors The Society of Swedish Composers (FST), the Swedish Society of Popular Music Composers (SKAP) and the Swedish Music Publishers Association each appoint two members and two deputy members. FST, SKAP and the the Swedish Music Publishers Association jointly appoint the chairman and two additional members. The STIM branch of Unionen appoints one member and two deputy members. Regular Members Kjell-Åke Hamrén Martin Q. Larsson Erik Peters Alfons Karabuda Johan Ekelund Monica Ekmark Erik Hasselqvist Kristina Rennerstedt Leif Pagrotsky Claes Tullbrink
Chairperson FST FST SKAP SKAP Swedish Music Publishers Association Swedish Music Publishers Association External member External member Unionen
Deputy members Jonas Forssell Ida Lundén Douglas Carr Elise Einarsdotter Lars Karlsson Nutta Hultman Eva Botmar Anders Cangemark
FST FST SKAP SKAP Swedish Music Publishers Association Swedish Music Publishers Association Unionen Unionen
Svensk Musik Swedmic AB Board of Directors Paulina Sundin Erik Hasselqvist Alfons Karabuda Co-opted member Eva Modin
28
FST, chairperson Swedish Music Publishers Association SKAP
STIM
2012 | STIM ANNUAL REPORT
STIM CEO Kenth Muldin
STIM FASTIGHETS HOLDING AB
CEE SERVICES AB
SVENSK MUSIK SWEDMIC AB
CEO MAGNUS BOSTRÖM
DIRECTOR OF OPERATIONS GUSTAF BERGEL
ICE AB
NCB
INTERNATIONAL COPYRIGHT ENTERPRISE
NORDISK COPYRIGHT BUREAU
JOINTLY OWNED WITH BRITISH PRS FOR MUSIC
JOINTLY OWNED WITH STIM'S NORDIC COUNTERPARTS CEO KARSTEN DYHRBERG NIELSEN
CEO CARSTEN DRACHMANN
29
2012 | STIM ANNUAL REPORT
CEE Services AB
ICE, International Copyright Enterprise
In 2007, STIM established the wholly owned subsidiary CEE Services AB to provide administrative support and development resources in documentation, music reporting, distribution and IT. The processes involved are complex, and CEE is currently engaged in a number of projects aimed at simplifying functions for STIM, Svensk Musik and ICE above all via IT facilities, support and service. Every year, CEE issues a cost reduction guarantee for administrative services on a fixed-price basis. As a result, operations that are taken over by CEE are made more efficient in a clear and measurable way.
ICE, founded in 2007 with STIM's UK counterpart PRS for Music as an independent, commercial company, is owned on a 50/50 basis by STIM and PRS for Music. ICE's primary role is to administer the data volumes required to license and distribute financial remuneration to authors and publishers, both Swedish and international, when their works are played, recorded, streamed or legally downloaded.
Board of Directors Kenth Muldin Eva Modin Nicklas Lindström Hans Wickberg
Board of Directors Wanda Goldwag Kjell-Åke Hamrén Kenth Muldin Tomas Ericsson Robert Ashcroft Craig Nunn
Chairperson Deputy member Unionen Unionen, deputy member
PRS For Music, Chairperson STIM STIM STIM PRS For Music PRS For Music
NCB, Nordic Copyright Bureau NCB, Nordisk Copyright Bureau, is tasked with safeguarding the rights of authors and music publishers during the recording, copying and distribution of protected music and lyrics on CD, vinyl, DVD, etc. NCB is owned by STIM and its counterparts in Denmark (KODA), Finland (TEOSTO), Norway (TONO) and Iceland (STEF). NCB also administers the mechanical reproduction rights of the Baltic collecting societies, LATGA-A (Lithuania), EAÜ (Estonia) and AKKA-LAA (Latvia). NCB has agreements with collecting societies abroad that administer mechanical reproduction rights in a corresponding manner in their countries. In 2011, NCB’s Board of Directors passed a decision to centralize its entire operations. As a result, regional operations in the Nordic and Baltic countries were transferred to NCB’s headquarters in Copenhagen in 2012.
Board of Directors Anders Lassen Susi Hyldgaard Tine Birger Christensen Gudrun Björk Bjanadottir Kenth Muldin Alfons Karabuda Lars Karlsson Katri Sipilä Kim Kuusi Tommi Tuomainen Cato Ström Bendik Hofseth Steinar Fjeld Observers from the Baltic countries Inese Paklone Kalev Rattus Jonas Liniauskas Anne Louise Holsoe
30
CEO, Koda, Chairperson Author, Koda Music publisher, Koda CEO, STEF CEO, STIM Author, STIM Music publisher, STIM CEO, TEOSTO Author, TEOSTO Music publisher, TEOSTO CEO, TONO, Deputy Chairperson Author, TONO Music publisher, TONO
CEO, AKKA/LAA CEO, EAÜ CEO, LATGA-A Employee representative
Sara Kilander Chief Operating Officer
31
2012 | STIM ANNUAL REPORT
STIM COMMITTEES
Assessment Committee for Music and Copyright Makes statements regarding similarities between musical works in the event of copyright disputes. Helena Woodcock Per Wahlsten Patrik Sventelius Douglas Carr Jonas Forssell
STIM, Chairperson STIM, Secretary Swedish Music Publishers Association SKAP FST
Scholarship Committee Selects STIM's scholarship recipients. Ragnar Grippe Ben Malén Sarah Riedel Per Mårtensson Eva Lindal Josephine Forsman
Chairperson Swedish Music Publishers Association SKAP FST External External
Grading Committee Establishes industry practice for grading and the handling of grading complaints. Regular members Mats Edén Torgny Söderberg Jonas Valfridsson Paulina Sundin Kristina Fryklöf
SKAP SKAP FST FST Swedish Music Publishers Association
Deputy members Jan Levander Anna Einarsson Ylva Q. Arkvik Per Mårtensson Ingemar Hahne
SKAP SKAP FST FST Swedish Music Publishers Association
Distribution Committee Preparatory body for the Board in matters pertaining to distribution. Kenth Muldin Martin Q. Larsson Chrichan Larson Alfons Karabuda Johan Ekelund Kettil Skarby Monica Ekmark
32
Chairperson FST FST SKAP SKAP Swedish Music Publishers Association Swedish Music Publishers Association
2012 | STIM ANNUAL REPORT
Deputy CEO
CEO
Deputy CEO
Tomas Ericsson
Kenth Muldin
Eva Modin
Finance Kristina Paulsson
Strategy & Business Development Tomas Ericsson
Legal Helena Woodcock
Operations Sara Kilander Sales & Marketing Media/Online Nicklas Sigurdsson (as of 2013) Service (Acting) Robert Gehring Distribution Fredrik Lom채ng
Personnel Venke Osnes
Communication Karin Jihde
33
Johan ”Shellback” Schuster
34
2012 | STIM ANNUAL REPORT
ADMINISTRATION REPORT The Board of Directors and the Chief Executive Officer of Svenska Tonsättares Internationella Musikbyrå (STIM) u.p.a., CIN 702002-3524, hereby present their Annual Report and Consolidated Financial Statements for the 2012 financial year. Description of operations STIM was established to protect the copyright interests of authors and music publishers in Sweden. On their behalf, STIM administers and licenses rights to music and lyrics. Through its international network, STIM also represents rights to the worldwide repertoire of music. In addition, STIM promotes the creation and dissemination of new Swedish music. At year-end STIM had more than 71,000 registered composers, lyric writers, arrangers and music publishers. STIM’s task is to safeguard the rights of authors and music publishers, as defined in the Swedish Copyright Act Based on inter-governmental agreements and reciprocal agreements between the collecting societies, rights to both domestic and international music are safeguarded in Sweden. On joining STIM, the rightsholder assigns to STIM his legal rights to compensation in connection with public performance, recording and mechanical reproduction. It is STIM’s task to ensure that anyone who plays music in public or who records, downloads or streams music has a valid licence and pays a fee. STIM then pays the monies received to the owner or owners of the right to the music. Thus, STIM licenses all the music of the world to users of music and distributes the revenue collected to the individual rightsholders, both Swedish and international. This means that anyone who wishes to use music, for example in a radio broadcast, in a shop or in a discotheque, may, via a STIM licence, obtain simple access to millions of works. It also means that the owners of the copyright to the music are paid for the use of their music. STIM and the British performing rights organization, PRS for Music, jointly own a company to administer bulk data in works documentation, music reporting and certain distribution services. Each party owns an equal share of this associated company, International Copyright Enterprise AB (ICE). Significant events during the financial year The "CISAC case", which resulted in a prohibition ruling on July 16, 2008, addressed to STIM and the European collecting societies, has now been tried by the Tribunal, the EU's first court of instance. The EU Commission's decision from 2008 ordered STIM and the other European societies to eliminate territorial limitations within cable and satellite TV and the Internet. STIM signed new agreements with the other European performing rights organizations that were interested
36
in a collaboration and phased out the territorial limitations. The EU Commission's requirements for STIM have therefore been fulfilled. The Tribunal upheld the Commission's decision against STIM in April 2013 but ruled in favor of the other societies. The reason for the differing outcomes is that STIM presented a different legal basis than the other societies for its appeal. The other performing rights organizations asserted that they had not entered into any "organized proceedings" with the aim of dividing the EU market into national territories. STIM asserted that the decision entailed risks for the cultural diversity in the EU since there was a risk that smaller repertoires would be treated unfairly. The Tribunal followed STIM's line in principle, i.e. it ruled that the Commission must take cultural diversity in the EU into consideration. However, the Tribunal found that the Commission had been sufficient in its consideration of cultural diversity and therefore rejected STIM's appeal. The ruling does not have a significant legal or financial impact on STIM's operations. STIM acquired the building Krukomakaren 7, Hornsgatan 103, Stockholm, at the end of 2011. In September 2012, STIM moved as planned into the new offices together with its subsidiaries and FST, SKAP and the Swedish Music Publishers Association. Approximately 1,800 m2 are leased to external tenants, primarily other music or copyrights organizations. Significant events after the end of the financial year In January 2013, Kobalt STIM Aggregated Rights AB was founded by STIM and music publisher Kobalt Music Group. This partnership makes it possible for multi-territorial digital music services to acquire music licenses for the entire European market through an integrated turn-key solution. The licensing service is offered by a newly formed subsidiary to STIM, which started operations on March 1, 2013. Sales and profit Group The Group’s revenue during the financial year was SEK 1,479.9 million (1,433.0). Operating costs totaled SEK 175.6 million (160.0). Profit/ loss from participations in associated companies amounted to SEK 0.7 million (–0.2). Profit/loss for the Group before distribution totaled SEK 1,312.0 million (1,288.5).
2012 | STIM ANNUAL REPORT
Parent Society Parent Society profit (SEK thousand) Operating income
1,455,816
1,425,780
1,373,605
1,385,137
Operating costs
–160,263
–154,025
–151,648
–146,413
–127,225
Operating profit
1,295,553
1,271,755
1,221,957
1,238,724
1,037,165
16,551
16,822
5,370
10,495
20,184
–71
–78
–40
1,527
4,660
1,312,033
1,288,499
1,227,287
1,250,746
1,062,009
Interest Appropriations and tax Profit before distribution
Turnover for the current financial year for Parent Society STIM amounts to SEK 1,455.8 million (1,425.8), which corresponds to an increase of 2.1 percent (3.8) compared to the previous year. Revenue for music performed both in Sweden and abroad increased by SEK 53.6 million (99.7) or 4.4 percent (8.9), while revenue for mechanical reproduction rights is in a negative trend and decreased by SEK 19.3 million (32.3) or –10.5 percent (–14.9). Profit/loss for the Parent Society STIM before distribution totals SEK 1,312.0 million (1,288.5), which means that distribution to rightsholders increased by SEK 23.5 million (61.2) or 1.8 percent (5.0). Financial position Group The Group’s accumulated loss at year-end was SEK –13.1 million (–12.1). Parent Society The Parent Society STIM’s equity at year-end was SEK 1.2 million (1.2) or 0.1 percent (0.1) of total assets. Debts to rightsholders at year-end totaled SEK 709.2 million (708.0).
1,164,390
Group contributions Group contributions during the financial year were paid to Stim Fastighets Holding AB in accordance with the following: STIM CEE Services AB Stim Fastighets AB Stimhuset KB
SEK –337.1 thousand SEK –2,963.0 thousand SEK –1,532.0 thousand SEK –2,991.7 thousand
Proposed appropriation of profits The following amount is available for allocation by the Annual General Meeting: Retained earnings, SEK Profit/loss for the year, SEK Total
4,841 0 4,841
The Board of Directors proposes that the profit be allocated as follows: profit carried forward, SEK 4,841
Liquidity STIM’s cash and cash equivalents, including short-term investments, totaled SEK 148.2 million (229.8) for the Parent Society and SEK 183.6 million (259.4) for the Group.
37
2012 | STIM ANNUAL REPORT
INCOME STATEMENT SEK thousand
Operating income Performance revenue Mechanical reproduction revenue Other revenue Total operating income Operating costs External costs Personnel costs Depreciation/amortization according to plan Total operating costs Profit/loss from participations in associated companies Distribution Operating profit/loss Interest income Interest expenses Profit/loss before tax Tax on profit for the year Profit/loss for the year
38
Group
Parent Society
Note
1, 3
2, 3, 6 2, 4, 5 2, 9 –11
13 7
20
1,270,818 165,456 43,635 1,479,909
1,217,226 184,805 30,994 1,433,025
1,270,818 165,456 19,542 1,455,816
1,217,226 184,805 23,749 1,425,780
–78,972 –83,768 –12,862 –175,602
–64,797 –86,702 –8,469 –159,968
–105,459 –49,335 –5,469 –160,263
–101,309 –47,474 –5,242 –154,025
739
–225
–
–
–1,312,033 –6,987
–1,288,499 –15,668
–1,312,033 –16,480
–1,288,499 –16,744
9,420 –3,637 –1,204 197
13,856 –12 –1,824 –140
20,170 –3,619 71 –71
16,830 –8 78 –78
–1,007
–1,964
0
0
2012 | STIM ANNUAL REPORT
BALANCE SHEET SEK thousand Assets Non-current assets Intangible assets Current investment in new IT systems Capitalized system development costs Total intangible assets Property, plant and equipment Buildings and land New construction, extensions and renovations in progress Equipment Total property, plant and equipment Financial assets Participations in Group companies Participations in associated companies Receivables from Group companies Receivables from associated companies Total financial assets Total non-current assets Current assets Current receivables Accounts receivable Receivables from Group companies Receivables from associated companies Other receivables Tax assets Prepaid expenses and accrued income Total current receivables Current investments Cash and bank balances Total current assets Total assets
Group Note
8 9
10, 21 11
12 13
14
16
Equity and liabilities Equity Restricted equity Capital contributed Restricted reserves/Statutory reserve Total restricted equity Accumulated deficit/non-restricted equity Accumulated deficit/non-restricted equity Profit/loss for the year Total accumulated deficit/unrestricted equity capital Total equity Provisions Deferred tax Total provisions Current liabilities Liabilities to credit institutions Accounts payable Distribution liabilities Liabilities to Group companies Liabilities to associated companies Other liabilities Accrued expenses and deferred income Total current liabilities Total equity and liabilities Pledged assets Contingent liabilities
Parent Society
15
20
17
18
19
33,207 4,584 37,791
11,079 7,136 18,215
33,207 4,584 37,791
11,079 7,136 18,215
418,570 7,580 12,498 438,648
352,222 3,099 8,709 364,030
– – 9,596 9,596
– – 6,610 6,610
– 42,334 – 33,632 75,966 552,405
– 41,595 – 43,632 85,227 467,472
250 0 491,435 33,632 525,317 572,704
250 0 419,261 43,632 463,143 487,968
96,953 – – 26,384 2,866 175,384 301,587 66,704 116,917 485,208 1,037,613
120,969 – – 20,804 3,175 158,781 303,729 124,403 134,982 563,114 1,030,586
95,468 9,227 597 19,066 2,503 173,130 299,991 66,704 81,512 448,207 1,020,911
120,627 1,299 – 20,163 2,370 158,380 302,839 124,403 105,366 532,608 1,020,576
5 1,226 1,231
5 1,226 1,231
5 1,226 1,231
5 1,226 1,231
– 12,144 –1,007 – 13,151 –11,920
–10,180 –1,964 –12,144 –10,913
5 0 5 1,236
5 0 5 1,236
1,716 1,716
2,052 2,052
– –
– –
100,000 25,243 709,168 – 4,345 13,539 195,522 1,047,817 1,037,613 176,045 –
100,000 17,834 708,004 – 14,947 12,603 186,059 1,039,447 1,030,586 176,045 –
100,000 14,496 709,168 6,335 – 6,656 183,020 1,019,675 1,020,911 176,045 –
100,000 13,973 708,004 17,641 – 3,222 176,500 1,019,340 1,020,576 176,045 –
39
2012 | STIM ANNUAL REPORT
CASH FLOW STATEMENT SEK thousand
Group
Operating activities Payments from customers Payments to rightsholders Payments to suppliers and employees Cash flow from operating activities before payment of interest and income taxes
Parent Society
Note 1,496,347 –1,278,303 –201,927
1,459,117 –1,189,648 –172,781
1,465,800 –1,278,303 –194,855
1,132,022 –1,189,648 –165,466
16,117
96,688
–7,358
–223,092
9,420 –3,637 170 22,070
13,856 –12 –309 110,223
20,170 –3,619 –203 8,990
16,830 –8 –709 –206,979
–22,128 –85,253 675 –739 10,000 57,699 –389 – –40,135
–11,079 –4,338 457 2,971 – 137,182 –298,450 – –173,257
–22,128 –6,412 509 –72,175 10,000 57,699 – – –32,507
–11,079 –4,001 157 2,971 – 137,182 – 50 125,280
– – – –
100,000 – – 100,000
– – –337 –337
100,000 3,763 – 103,763
Cash flow for the year
–18,065
36,966
–23,854
22,064
Cash and cash equivalents at beginning of year Cash and cash equivalents at year-end
134,982 116,917
98,016 134,982
105,366 81,512
83,302 105,366
17
Interest received Interest paid Income tax Cash flow from operating activities Investing activities Investments in intangible assets Investments in property, plant and equipment Disposal of property, plant and equipment Investments in financial assets Amortization of financial assets Current financial investments Investment in subsidiaries Disposal of subsidiaries Cash flow from investing activities
8 10-11 10-11
21
Financing activities Loans from credit institutions Group contributions received Group contributions paid Cash flow from financing activities
ACCOUNTING AND MEASUREMENT PRINCIPLES
40
Accounting principles
Consolidated accounts
The applied accounting and measurement principles are in agreement with the Swedish Annual Accounts Act and the general recommendations of the Swedish Financial Accounting Standards Council, except for the accounting for Group contributions, which are reported in the income statement as Other income or expense. Unless otherwise indicated, the accounting principles are unchanged from the preceding year.
The consolidated accounts include subsidiaries where the parent company, directly or indirectly, controls more than 50 percent of the votes, or in any other way exercises a controlling influence. The Group's financial statements are prepared in accordance with the acquisition method, whereby the equity of the subsidiaries at acquisition - calculated as the difference between the fair value of the assets and liabilities - is eliminated in its entirety. Thus, the Group's equity includes only the portion of the equity in its subsidiaries that has arisen after the acquisition.
2012 | STIM ANNUAL REPORT
Accounting for associated companies "Associated companies" are companies that are not subsidiaries but in which the parent company, directly or indirectly, controls no less than 20% of the votes represented by all participations, or otherwise exercises a controlling influence. In the Group's financial statements, participations in associated companies are recognized using the equity method. According to this method, participations in a company are accounted for at acquisition value on the acquisition date and are then adjusted to reflect the Group's share of the change in the net assets of the associated company. The Consolidated Income Statement includes the Group's share in the profit/loss of associated companies. The parent company financial statements recognize shares in associated companies at acquisition value less any impairment losses. Revenue recognition Operating income includes - after deductions for value added tax rental income during the rental period and royalties in accordance with the economic impact of the current agreement. Interest income is recognized at the effective return.
The following depreciation periods are applied: Buildings Tenant adjustments Facade Walkway and elevators Passageway, locks and fiber Plumbing and plumbing fixtures System development Machinery and equipment Computers
50 years 5 years 30 years 25 years 15 years 10 years 5 or 10 years 5 years 3 years
Pensions The Group's employees are covered by the ITP scheme, which is managed by Alecta. Some senior executives have pension commitments in addition to the ITP scheme that fall within the national pension plan. These pensions are covered by insurance arrangements. Taxes
Intangible assets and property, plant and equipment
Reported income taxes refer to tax to be paid or refunded in respect of the current year. Income tax liabilities/assets are valued at the amounts that in the Society's view will be paid to or received from the Swedish Tax Agency. This judgement is based on the tax rules and tax rates that are in effect or that have been announced and are considered highly likely to be effected.
Intangible assets, such as computer software, are recognized at cost, less accumulated amortization. “Off-the-shelf� software is shown at cost.
Cash flow statement
Expenditure in connection with software developed or modified substantially on STIM's behalf is capitalized as an intangible asset if such software is deemed to lead to probable economic benefits that after one year will exceed the cost incurred. Capitalized expenditure on purchased software is amortized on a straight-line basis over the estimated service life, although subject to a maximum of 10 years. Amortization is applied as of the time at which the asset is ready to be placed in service. Thus, no depreciation is applied to new investments in progress. Property, plant and equipment is reported at acquisition cost, less accumulated depreciation. Expenditure to improve the performance of assets above their original level is added to the reported value of the asset. Expenses for repairs and maintenance are recognized as costs. Property, plant and equipment are depreciated on a straight-line basis over the estimated service life of the asset. A straight-line method is applied to all categories of property, plant and equipment and intangible assets.
The cash flow statement is prepared in accordance with the direct method. Reported cash flow consists only of the transactions that involve incoming or outgoing payments. Cash and cash equivalents comprise cash in hand and on deposit. Receivables Receivables are shown at the amount at which they are expected to be received, following an examination of the circumstances in each case. Foreign currency The Parent Society receives a not-insignificant part of its revenue in foreign currencies. The amounts are reported in SEK at the exchange rates prevailing on the date of conversion. STIM has no receivables or liabilities in foreign currency. Leasing All leasing costs reported by STIM refer to operational leases. Leasing costs for the year total SEK 0.3 million.
41
2012 | STIM ANNUAL REPORT
NOTES (SEK thousand)
Note 1.
OPERATING INCOME Group
Performance licenses
Parent Society
1,270,818
1,217,226
1,270,818
1,217,226
785,085
724,818
785,085
724,818
Online and new media
161,556
112,636
161,556
112,636
Radio
30,596
31,549
30,596
31,549
Public service TV & Radio
121,472
132,641
121,472
132,641
Swedish TV
166,540
164,829
166,540
164,829
Foreign TV
15,464
14,155
15,464
14,155
Copyswede TV
12,207
21,669
12,207
21,669
Performance of Swedish and foreign music in Sweden Of which,
Cinemas
17,301
14,677
17,301
14,677
Festivals, concerts and events
67,465
53,388
67,465
53,388
Dancing, entertainment
31,615
23,704
31,615
23,704
Shops, sales
47,265
46,795
47,265
46,795
Hotels
22,352
20,135
22,352
20,135
Restaurants
27,385
24,081
27,385
24,081
Municipal, county council and care
15,953
17,448
15,953
17,448
Sport and fitness
19,419
16,272
19,419
16,272
Music in the workplace
10,523
9,661
10,523
9,661
8,225
8,489
8,225
8,489
Transport Theatre, variety and cabaret
4,193
5,398
4,193
5,398
Church music
5,356
4,649
5,356
4,649
Miscellaneous
198
2,642
198
2,642
Performance of Swedish music abroad and foreign music sub-published by STIM-affiliated publishers for entire Nordic region
442,958
457,536
442,958
457,536
Performance of Swedish and foreign music abroad that STIM distributes on behalf of others
42,775
34,872
42,775
34,872
Mechanical reproduction licenses Relates to the right to record, reproduce and and sell phonograms, etc. See Note 17. Licensing was administered by NCB, Nordic Copyright Bureau, in Copenhagen for the Nordic territory.
165,456
184,805
165,456
184,805
43,635
30,994
19,542
23,749
983
1,158
–
–
STIM/Svensk Musik govt grant/subsidy
3,353
3,366
–
–
Private copying levy
10,185
7,383
10,185
7,383
Library levy
2,500
2,500
2,500
2,500
Administrative contribution from NCB
1,720
4,004
1,720
4,004
Other revenue STIM/Svensk Musik, hiring out of sheet music and phonogram sales
Rental income
11,482
3,899
–
–
Miscellaneous
13,412
8,684
5,137
6,099
–
–
–
3,763
Group contributions received by the Parent Society Total operating income
42
1,479,909
1,433,025
1,455,816
1,425,780
2012 | STIM ANNUAL REPORT
Note 2.
OPERATING COSTS Group
External costs Office and administration IT operations System development and maintenance Development costs brought forward Property costs Group contributions paid by the Parent Society Total external costs Personnel costs Salaries and other remuneration Social security expenses Pension expenses Other personnel costs Total personnel costs Of which Board of Directors, CEO and Deputy CEO Salaries and other remuneration Social security expenses Pension expenses Depreciation/amortization Capitalized system development expenditure Equipment Buildings Total depreciation/amortization Total operating costs
Parent Society
69,768 3,954 16,651 –20,460 9,059 – 78,972
55,779 3,905 9,422 –9,020 4,711 – 64,797
95,814 8,845 20,923 –20,460 – 337 105,459
91,565 9,221 9,543 –9,020 – – 101,309
54,835 17,528 7,868 3,537 83,768
56,721 17,810 8,416 3,755 86,702
31,776 12,959 2,328 2,272 49,335
30,621 9,814 5,045 1,994 47,474
7,808 2,453 2,044
6,791 2,134 2,093
6,513 2,046 1,750
5,342 1,678 1,768
2,552 3,732 6,578 12,862
2,577 3,477 2,415 8,469
2,552 2,917 – 5,469
2,577 2,665 – 5,242
175,602
159,968
160,263
154,025
Note 3.
INTRA-GROUP PURCHASES AND SALES
Of the Parent Society’s total operating income for 2012, 0.2 percent refers to sales to other Group companies. Of the Parent Society’s total operating costs for 2012, 52.7 percent refer to purchases from other Group companies.
43
2012 | STIM ANNUAL REPORT
Note 4. AVERAGE NUMBER OF
EMPLOYEES
Average number of employees
Average number of employees
Men
Women
Average number of employees
Men
Women 48%
Parent Society
61
51%
49%
64
52%
Subsidiaries
61
48%
52%
60
48%
52%
122
50%
50%
124
50%
50%
Number on balance sheet date
Men
Women
Number on balance sheet date
Men
Women
Group Board members and senior executives Parent Society Board members, including personnel representatives
10
80%
20%
10
80%
20%
Deputy Board members, including personnel representatives
8
50%
50%
8
50%
50%
CEOs, deputy CEOs and other senior executives
11
45%
55%
9
50%
50%
Group Board members, including personnel representatives
15
87%
13%
15
87%
13%
9
44%
56%
9
44%
56%
18
44%
56%
18
44%
56%
Deputy Board members, including personnel representatives CEOs, deputy CEOs and other senior executives
Note 5.
CONDITIONS OF
EMPLOYMENT FOR CEOS
44
Parent Society
Group
An agreement on severance payment has been entered into with the CEO, under which the CEO will be paid two years’ salary if the CEO’s employment is terminated by STIM. The required period of notice is six months on both sides. Any severance payments shall be reduced by salary or other remuneration that the CEO may earn from other activity during the period in which the severance payment is payable. The CEO's pensionable age is 60 years. The insurance arrangement is a defined-benefit plan.
An agreement on severance payment was entered into with the CEO of CEE Services AB, under which a severance payment amounting to 18 months’ salary will be paid in the event of employment being terminated by CEE Services. The required period of notice is 6 months on the part of CEE Services and 3 months on the part of the CEO.
2012 | STIM ANNUAL REPORT
Note 6.
FEES TO AUDITORS Group
Auditing Ă–hrlings PricewaterhouseCoopers Auditors appointed by STIM Other non-auditing assignments Total fees to auditors
490 30 331 851
510 30 90 630
Parent Society
355 30 331 716
380 30 90 500
Note 7.
DISTRIBUTION Group
Parent Society
Distribution, performance licences Performance in Sweden Performance abroad Performance abroad for distribution by STIM Total performance distribution
634,945 442,958 36,108 1,114,011
579,473 457,536 29,455 1,066,464
634,945 442,958 36,108 1,114,011
579,473 457,536 29,455 1,066,464
Distribution of mechanical reproduction licenses
165,456
184,805
165,456
184,805
32,566
37,230
32,566
37,230
1,312,033
1,288,499
1,312,033
1,288,499
Distribution of national funds Total distribution
45
2012 | STIM ANNUAL REPORT
Note 8.
CURRENT INVESTMENT IN NEW
IT SYSTEM
Parent Society
Group
Opening acquisition value Acquisitions during the year Closing acquisition value
11,079 22,128 33,207
– 11,079 11,079
11,079 22,128 33,207
– 11,079 11,079
Note 9. CAPITALIZED EXPENDITURE
FOR SYSTEM DEVELOPMENT Parent Society
Group
Opening acquisition values Acquisitions during the year Reclassification Closing accumulated acquisition values
88,262 – – 88,262
88,534 – –272 88,262
88,262 – – 88,262
88,534 – –272 88,262
Opening depreciation/amortization Depreciation/amortization for the year Reclassification Closing accumulated depreciation/amortization
–81,126 –2,552 –83,678
–78,821 –2,577 272 –81,126
–81,126 –2,552 – –83,678
–78,821 –2,577 272 –81,126
4,584
7,136
4,584
7,136
Closing residual value according to plan
46
2012 | STIM ANNUAL REPORT
Note 10.
BUILDINGS AND LAND Group
Parent Society
Buildings Opening acquisition value Acquisitions during the year Value on consolidation attributable to acquired subsidiary (see Note 21) Closing accumulated acquisition value
266,421 72,537 –
92,182 – 174,239
– – –
– – –
338,958
266,421
–
–
Opening depreciation/amortization Depreciation/amortization for the year Closing accumulated depreciation/amortization
–54,256 –6,578 –60,834
–51,841 –2,415 –54,256
– – –
– – –
278,124
212,165
–
–
140,057
11,301
–
–
389 140,446 418,570 276,000 171,000
128,756 140,057 352,222 276,000 171,000
– – – – –
– – – – –
Closing residual value according to plan, buildings Land Opening acquisition value Value on consolidation attributable to acquired subsidiary (see Note 21) Closing acquisition value, land Closing residual value according to plan, buildings and land Tax value of property of which, buildings
Note 11.
EQUIPMENT Group
Opening acquisition values Acquisitions during the year Disposals/Sales Closing accumulated acquisition values Opening depreciation/amortization Depreciation/amortization for the year Disposals/Sales Adjustment for differences, previous years Closing accumulated depreciation/amortization Closing residual value according to plan
Parent Society
22,367 8,235 –1,716 28,886 –13,658 –3,732 1,041 –39 –16,388
19,593 4,338 –1,564 22,367 –11,372 –3,477 1,191 – –13,658
18,517 6,412 –1,406 23,523 –11,907 –2,917 897 – –13,927
15,664 4,001 –1,148 18,517 –10,390 –2,665 1,148 – –11,907
12,498
8,709
9,596
6,610
47
2012 | STIM ANNUAL REPORT
Note 12.
PARTICIPATIONS IN GROUP COMPANIES Parent Society
Subsidiaries CEE Services AB Svensk Musik Swedmic AB Stim Fastighets Holding AB Total participations in Group companies Subsidiaries, indirectly owned Stimhuset KB Stim Fastighets AB
CIN
Reg’d office
556723-5923 556754-1338 556842-4880
Stockholm Stockholm Stockholm
CIN
Reg’d office
969696-4361 556745-2841
Stockholm Stockholm
Share of capital % Number of shares, thousands 100 100 100 1 100 1
Book value 12/31/2012 100 100 50 250
Book value 12/31/2011 100 100 50 250
Note 13.
PARTICIPATIONS IN ASSOCIATED COMPANIES
Group Associated companies, indirect holdings International Copyright Enterprise Services AB Opening balance Share in profit/loss of associated companies Closing balance
48
CIN 556723-5907
Reg’d office Share of capital and voting rights, % Stockholm 50
Number of shares, thousands 50
Carrying amount 12/31/2012
Carrying amount 12/31/2011
41,595 739
41,820 –225
42,334
41,595
2012 | STIM ANNUAL REPORT
Note 14. PREPAID EXPENSES AND
ACCRUED INCOME Group
Accrued performance revenue Accrued revenue, private copying levy Pre-paid expenses Miscellaneous Total prepaid expenses and accrued income
142,104 14,222 10,962 8,096 175,384
133,234 13,486 6,585 5,476 158,781
Parent Society
142,104 14,222 10,962 5,842 173,130
133,234 13,486 6,388 5,272 158,380
Note 15.
CHANGES IN EQUITY Group Restricted equity Capital contributed Non-distributable reserve Restricted reserves Total restricted equity
Parent Society
5 – 1,226 1,231
5 – 1,226 1,231
5 1,226 – 1,231
5 1,226 – 1,231
Non-restricted equity Accumulated deficit/non-restricted equity Profit/loss for the year Total non-restricted equity
–12,144 –1,007 –13,151
–10,180 –1,964 –12,144
5 – 5
5 – 5
Total equity
–11,920
–10,913
1,236
1,236
Note 16. BANK OVERDRAFT
FACILITY Both the Group and Parent Society have an unutilized bank overdraft facility of SEK 100 million.
49
2012 | STIM ANNUAL REPORT
Note 17.
DISTRIBUTION
LIABILITIES
Parent Society & Group
Distribution of performance revenue, Sweden Undistributed revenue from previous years Payment to Swedish rightsholders Payment to foreign collecting societies Outstanding payments of previous years' revenue Revenue for the year for distribution Payment to Swedish rightsholders Payment to foreign collecting societies Outstanding payment from revenue for the year Outstanding payment at year-end
533,230 –200,239 –128,021 204,970 671,053 –195,202 –124,802 351,049 556,019
506,615 –164,933 –101,087 240,595 609,133 –196,229 –120,269 292,635 533,230
Distribution of performance revenue, international Undistributed revenue from previous years Payment to Swedish rightsholders Outstanding payments of previous years' revenue Revenue for the year for distribution Payment to Swedish rightsholders Outstanding payment from revenue for the year Outstanding payment at year-end
162,916 –87,878 75,038 442,958 –374,637 68,321 143,359
121,615 –54,111 67,504 457,536 –362,124 95,412 162,916
Distribution of mechanical reproduction revenue Undistributed revenue from previous years Payment to Swedish rightsholders Outstanding payments of previous years' revenue Revenue for the year for distribution Payment to Swedish rightsholders Outstanding payment from revenue for the year Outstanding payment at year-end
11,858 –11,858 0 165,456 –155,666 9,790 9,790
17,948 –17,948 0 184,805 –172,947 11,858 11,858
709,168
708,004
Total distribution liability at year-end
Note 18.
ACCRUED EXPENSES
AND PREPAID INCOME Group
50
Parent Society
Prepaid performance revenue Prepaid rental income Accrued vacation pay liability Accrued social security expenses and special employer's contribution Other accrued expenses
171,383 6,653 4,005 3,751 9,730
169,524 904 3,438 1,717 10,476
171,383 – 2,110 2,446 7,081
169,524 – 1,998 1,845 3,133
Total accrued expenses and deferred income
195,522
186,059
183,020
176,500
2012 | STIM ANNUAL REPORT
Note 19. CONTINGENT LIABILITIES AND
PLEDGED ASSETS
Contingent liabilities
Pledged assets
On 4 August 2008, STIM entered into a guarantee (Swedish: proprieborgen) as for its own debt as regards CEE Services AB's commitments as stated in the shareholders' agreement between CEE Services AB and MCPS-PRS-Alliance Ltd, regarding the associated company, International Copyright Enterprise Services AB.
STIM has in its possession mortgages totaling SEK 27.2 million at Stettin 7 (Sandhamnsgatan 75–83). A mortgage totaling SEK 176.0 million for the property Krukomakaren 17 (Hornsgatan 103) is held by SEB as collateral for loans and an overdraft facility.
Group
For own provisions and liabilities regarding liabilities to credit institutions: Property mortgages Total pledged assets
176,045 176,045
176,045 176,045
Parent Society
176,045 176,045
176,045 176,045
Note 20.
TAXES Group
Tax on profit for the year Current tax for the year Current tax attributable to previous years Change in deferred tax for the year due to changed tax rate Total tax as per the income statement
–141 2 336 197
–151 11 – –140
Group
Deferred income taxes attributable to untaxed reserves at acquisition of Stimhuset KB (previously GE Real Estate Söder KB).
1,716
2,052
Parent Society
–73 2 – –71
–89 11 – –78
Parent Society
–
–
51
2012 | STIM ANNUAL REPORT
Note 21.
ACQUISITION OF
SUBSIDIARIES
On 30 December 2011, Stim Fastighets Holding AB acquired all shares in GE Real Estate Söder KB (CIN:. 969696-4361), now renamed Stimhuset KB, at an estimated consideration of SEK 300.6 million in accordance with the set out below. Final settlement of the consideration was made in 2012 via a payment of an additional SEK 0.4 million.
Group
Parent Society
Cash purchase consideration on day of taking possession Additional purchase price Acquisition-related costs
299,300 389 1,300
299,300 – 1,300
– – –
– – –
Total acquisition cost
300,989
300,600
–
–
The 2011 consolidated financial statements do not include any part of the net sales or profit/loss from the limited partnership since the acquisition was made at the end of the 2011 financial year. The Group profit/loss for 2012 includes the limited partnership's operations for the entire 2012 financial year. In the acquisition of the limited partnership, the total value of the acquired assets and liabilities, consideration and impact on the Group’s cash and cash equivalents was as follows: Group
Consideration paid previous years Buildings and land Redevelopment and extension in progress Current assets Provisions - deferred tax liability Current liabilities Total consideration Cash and cash equivalents in acquired company Impact on Group's cash and cash equivalents
52
Parent Society
300,600 389 – – – – 300,989
– 302,995 3,099 2,625 –2,052 –6,067 300,600
– – – – – – –
– – – – – – –
– 389
–2,150 298,450
– –
– –
2012 | STIM ANNUAL REPORT
SIGNATURES The income statement and balance sheet will be presented to the Annual General Meeting on May 22, 2013, for adoption. Stockholm, April 25, 2013
Kjell-Ă…ke HamrĂŠn Chairperson of the Board of Directors
Kenth Muldin CEO
Nutta Hultman
Martin Q. Larsson
Alfons Karabuda
Monica Ekmark
Erik Peters
Leif Pagrotsky
Kristina Rennerstedt
Johan Ekelund
Eva Botmar
Our auditor's report was submitted on April 25, 2013.
Evy Jakobsson Authorized public accountant
Kettil Skarby Appointed by the General Meeting
53
2012 | STIM ANNUAL REPORT
AUDIT REPORT To the annual general meeting of the Society Svenska Tonsättares Internationella Musikbyrå (STIM) u.p.a. Corporate Identity Number 702002-3524 Report on the annual accounts We have audited the annual accounts of Svenska Tonsättares Internationella Musikbyrå (STIM) u.p.a. for the year 2012. The annual accounts and the consolidated accounts of the Society are included in the printed version of this document on pages 36 - 53. Responsibilities of the Board of Directors and the CEO for the annual accounts The Board of Directors and the CEO are responsible for the preparation and fair presentation of annual accounts in accordance with the Annual Accounts Act, and for such internal control as the Board of Directors and the CEO determine is necessary to enable the preparation of annual accounts that are free from material misstatement, whether due to fraud or error. Auditors’ responsibility Our responsibility is to express an opinion on these annual accounts based on our audit. The audit was conducted in accordance with generally accepted auditing standards. This implies that the authorized public accountant has performed the audit in accordance with International Standards on Auditing and generally accepted auditing standards in Sweden. Those standards require that the authorized public accountant complies with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the annual accounts are free from material misstatement.
54
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual accounts. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the annual accounts, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Society’s preparation and fair presentation of the annual accounts in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Society’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the annual accounts. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the Society as of December 31, 2012, and of its financial performance and cash flows for the year then ended, in accordance with the Annual Accounts Act. The statutory administration report is consistent with the other parts of the annual accounts. We therefore recommend that the annual general meeting of the Society adopt the income statement and balance sheet for the Society.
2012 | STIM ANNUAL REPORT
Report on other legal and regulatory requirements In addition to our audit of the annual accounts, we have also examined the proposed appropriations of the Society’s profit or loss and the administration of the Board of Directors and the CEO of Svenska Tonsättares Internationella Musikbyrå (STIM) u.p.a. for the year 2012. Responsibilities of the Board of Directors and the CEO The Board of Directors is responsible for the proposal for appropriations of the Society’s profit or loss, and the Board of Directors and the CEO are responsible for administration under the Swedish Cooperative Societies Act. Auditors’ responsibility Our responsibility is to express an opinion with reasonable assurance on the proposed appropriation of the Society’s profit or loss and on the administration based on our audit. We conducted the audit in accordance with generally accepted auditing standards in Sweden.
determine whether any member of the Board of Directors or the CEO is liable to the Society. We also examined whether any member of the Board of Directors or the CEO has, in any other way, acted in contravention of the Swedish Cooperative Societies Act, the Annual Accounts Act or the Society’s Articles of Association. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion We recommend to the annual general meeting of the Society that the profit be appropriated in accordance with the proposal in the statutory administration report and that the members of the Board of Directors and the CEO be discharged from liability for the financial year. Stockholm, April 25, 2013
As a basis for our opinion on the Board of Directors’ proposed appropriation of the Society’s profit or loss, we examined whether the proposal is in accordance with the Swedish Cooperative Societies Act. As a basis for our opinion concerning discharge from liability, in addition to our audit of the annual accounts, we examined significant decisions, actions taken and circumstances of the company in order to
Evy Jakobsson Authorizsed Public Accountant
Kettil Skarby Appointed by the general of the Society
55
Photo: The pictures on page 13 and page 34 were taken by photographer Rickard Eriksson. The other pictures were taken by photographer Viktor G책rds채ter Graphic design: Ineko AB Printer: Ineko AB, which satisfies ISO 9001, ISO 14001 and FSC certification and is a Nordic Ecolabelled printing works.
www.stim.se