TEOSTO FINANCIAL STATEMENT

Transcription

1 TEOSTO FINANCIAL STATEMENT

2 CONTENTS INCOME STATEMENT 3 BALANCE SHEET 4 NOTES TO THE FINANCIAL STATEMENTS 1 Accounting principles 6 2 Notes to the income statement 8 3 Notes to the balance sheet, assets 10 4 Notes to the balance sheet, liabilities 12 5 Securities and contingent liabilities 13 6 Notes on personnel 13 7 Ownership in other companies 13 PROPOSAL FOR DISTRIBUTION TO RIGHTHOLDERS 14 SIGNATURES TO THE ANNUAL REPORT AND FINANCIAL STATEMENTS 14 2

3 INCOME STATEMENT 1 Jan 31 Dec Jan 31 Dec 2014 DAY-TO-DAY OPERATIONS Income Royalties collected by Teosto 53,035, ,886, Royalties from other organisations 7,962, ,872, Remuneration for public lending 599, , Compensation for private copying* 2,374, ,271, Other income 16, , ,987, ,409, Costs Personnel costs -6,293, ,107, Depreciation -804, , Other costs -5,223, ,010, ,321, ,865, ,666, ,543, FUNDRAISING Membership fees 100, , ,767, ,650, INVESTMENTS AND FINANCING Income 3,154, ,687, Costs -410, , ,743, ,655, ,510, ,305, Transfer for distribution to rightholders -51,108, ,575, Changes to the self-financed reserve -3,401, ,730, SURPLUS/DEFICIT FOR THE FINANCIAL YEAR * The figure for 2015 includes funds allocated to Teosto and the Teosto Fund by the Finnish Ministry of Education and Culture. The figure for the previous year represents private copying fees collected by Teosto on behalf of the Finnish Ministry of Education and Culture for equipment used for copying. 3

4 BALANCE SHEET 31 Dec Dec 2014 ASSETS NON-CURRENT ASSETS Intangible assets Other capitalised long-term assets 1,903, ,441, ,903, ,441, Tangible assets Machinery and equipment 982, ,026, , ,026, Investments Shares and similar rights of ownership 21,084, ,021, ,084, ,021, TOTAL NON-CURRENT ASSETS 23,970, ,489, ASSETS IN THE SELF-FINANCED RESERVE Shares and similar rights of ownership 15,724, ,071, Other receivables 899, Financial securities 2,500, Cash in hand and at the bank 4,084, ,978, ,208, ,049, CURRENT ASSETS Non-current receivables Other receivables 350, , Current receivables Trade receivables 6,160, ,990, Loan receivables 7, , Prepayments and accrued income 2,361, , ,528, ,530, Marketable securities Shares 17,710, ,706, Cash in hand and at the bank 3,988, ,292, TOTAL CURRENT ASSETS 30,577, ,529, TOTAL ASSETS 77,756, ,068,

5 31 Dec Dec 2014 LIABILITIES Equity Self-financed reserve Teosto Fund 23,208, ,049, Surplus/deficit for the financial year Total capital and reserves 23,208, ,049, Debts Trade debts 337, , Other debts 6,592, ,184, Accruals and deferred income 1,188, ,398, Distribution funds to rightholders 46,429, ,989, Total debts 54,547, ,018, TOTAL LIABILITIES 77,756, ,068,

6 NOTES TO THE FINANCIAL STATEMENTS 1 Accounting principles Entering performing right and mechanical reproduction royalty revenue as income The Teosto income statement includes copyright royalties collected by Teosto from music user customers and copyright royalties paid to Teosto by other organisations. The royalties collected by Teosto are mainly performing right royalties. Teosto has transferred the administration of mechanical reproduction rights to the Nordisk Copyright Bureau (NCB), a joint Nordic agency. Teosto manages licensing for cross-border online services. The handling of the background processes for such services is the responsibility of Network of Music Partners A/S (NMP), a company that is partly owned by NCB. For mechanical reproduction rights and cross-border online services, Teosto s income statement includes NCB/NMP payments distributed by Teosto to Finnish rightholders. The main principle is that the income statement shows all cash flow from copyright royalties through Teosto, whether collected by Teosto from music user customers or paid to Teosto by another organisation. Valuation and depreciation and intangible and tangible assets Non-current assets are stated at cost. Depreciation is calculated on a straight-line basis. The depreciation principles are as follows: Computer software Other capitalised long-term assets Machinery and equipment Computer hardware, other devices and cars Office machinery and equipment 5 years 10 years 5 years 10 years Valuation of investment assets Securities and other investment assets are valued at cost or at market value on the date of the annual accounts, whichever is lower. 6

7 Income statement by activity Teosto issues licences for the performance of music, collects performing right royalties from users of music, and distributes royalties to rightholders in Finland and abroad. Royalty payments to foreign rightholders are distributed through the copyright society in the country in question. Conversely, Teosto distributes royalties received from foreign organisations to Finnish rightholders. ROYALTIES COLLECTED BY TEOSTO Operating income 53,035, ,886, Operating costs* -10,153, ,247, Fundraising 100, , Investments and financing* 1,838, ,462, Other income 16, , Net income to rightholders 44,838, ,235, Percentage of operating income 84.5% 85.3% Promotion of Finnish music (national funds transferred to reserves) 3,439, ,379, Percentage of performing right royalty income in Finland 7.7% 7.7% Transfer for distribution to rightholders 41,398, ,855, ROYALTIES RECEIVED FROM OTHERS Royalties from other organisations 7,962, ,872, Remuneration for public lending 599, , Compensation for private copying* 1,475, Accounting costs -326, , Transfer for distribution to rightholders 9,710, ,061, PRIVATE COPYING COMPENSATION Operating income ,271, Operating costs , Transfer for distribution to rightholders ,658, Total transfer for distribution to rightholders 51,108, ,575, * Excluding self-financed reserve 7

8 2 Notes to the income statement Royalties collected by Teosto Radio and television* 31,441, ,924, Background music in customer premises 8,131, ,060, Concerts and other events 7,630, ,869, Sport and exercise 1,133, ,042, Online** 1,456, ,002, Local authorities and parishes 978, , Film 939, , Transport vehicles 572, , Stage 227, , Other 522, , Total royalties collected by Teosto 53,035, ,886, * Includes the online services of radio and television companies. ** Includes, among others, video streaming and subscription video services. In addition to the aforementioned online services, NCB/NMP collected EUR 2.5 million on behalf of Teosto, which was mainly comprised of streaming and subscription services for recordings. Royalties from others Royalties for distribution to Teosto rightholders NCB, Denmark 3,785, ,716, GEMA, Germany 559, , STIM, Sweden 448, , PRS, UK 309, , SACEM, France 202, , SUISA, Switzerland 161, , SIAE, Italy 143, , ASCAP, USA 148, , TONO, Norway 138, , KODA, Denmark 114, , Other 759, , Total 2,984, ,438, Royalties for distribution to rightholders of Teosto and other organisations Network personal video recorder services, Kopiosto 440, Rebroadcasting TV channels on cable networks, Kopiosto 439, , Broadcasting Finnish TV channels abroad, STIM 141, , Mechanical reproduction for use in education, Kopiosto 170, , Total 1,191, , Total royalties from other organisations 7,962, ,872,

9 Remuneration for public lending Remuneration paid by the government to authors for lending of works from public libraries. 599, , Compensation for private copying Copyright fee incorporated in the retail price of devices used for private copying ,271, Compensation for private copying paid by the Government to Teosto rightholders 1,475, Compensation for private copying paid by the Government for authors shared purposes via the Teosto Fund 899, ,374, ,271, Depreciation Other capitalised long-term assets 566, , Machinery and equipment 238, , , , Auditors fees Auditing fees 21, , Counselling on taxes 20, , Other services 22, , , , Investments and financing Income Interest 53, , Dividends 23, , Rents Sales profit 3,030, ,513, Restoration of value decrease 46, , ,154, ,769, Costs Charges -3, , Sales loss -55, , Value decrease -332, Other costs -20, , , , Total for investments and financing 2,743, ,655,

10 Transfer for distribution to rightholders Performing right royalties collected by Teosto 40,430, ,121, Mechanical reproduction right royalties collected by Teosto 882, , Performing right royalties from other organisations 4,089, ,394, Mechanical reproduction right royalties from other organisations 3,284, ,349, Network personal video recorder services 396, Remuneration for public lending 539, , Compensation for private copying 1,401, ,658, Gramex royalties collected by Teosto 86, , ,108, ,575, Ministry of Education and Culture decision on the distribution of the compensation for private copying from the previous year to Teosto rightholders 700, , Accounting costs -35, , Distribution to rightholders 665, , Notes to the balance sheet, assets Changes in non-current intangible and tangible assets Other capitalised long-term assets Acquisition cost at the beginning of the financial year on 1 January 2,011, ,031, Accumulated depreciation -570, , Amount at the beginning of the financial year on 1 January 1,441, , Increases in the financial year 1,028, ,344, Demolitions , Depreciation in the financial year -566, , Book value on 31 December 1,903, ,441, Machinery and equipment Acquisition cost at the beginning of the financial year on 1 January 1,411, , Accumulated depreciation -384, , Amount at the beginning of the financial year on 1 January 1,026, , Increases in the financial year 212, , Decreases in the financial year -18, , Demolitions , Depreciation in the financial year -238, , Book value on 31 December 982, ,026, Interests and shares Quoted interests and shares Total market value 21,799, ,575, Corresponding book value 20,790, ,662, Difference 1,008, ,913, Other interests and shares 293, , Total interests and shares 21,084, ,021,

11 Assets of the independent foundation Quoted interests and shares Total market value 16,559, ,762, Corresponding book value 15,724, ,071, Difference 834, , Other receivables Compensation for private copying 899, Marketable securities Total market value 2,511, Corresponding book value 2,500, Difference 10, Non-current receivables Other receivables Capital loan to GT Music Licences Ltd 350, Current receivables Accounts receivable Royalties collected by Teosto 6,160, ,155, Private copying fees , ,160, ,990, Accruals Royalties 2,226, , Other 135, , ,361, ,

12 4 Notes to the balance sheet, liabilities Changes to the capital of the self-financed reserve Capital of the Teosto Fund at 1 Jan 18,049, ,319, Return on Fund assets 657, , Fund costs -9, , Use of Fund assets -1,841, Private copying fee for previous years* 1,757, Private copying fee for , Sales profits transferred to the Fund 256, , National funds transferred to the Fund 3,439, ,627, Capital of the Teosto Fund at 31 Dec 23,208, ,049, * Intra-balance sheet transfer The Teosto fund was established in 2009 for the purposes of securing ideological operations and the continuity of promotion work. The primary funding source is so-called national funds which Teosto retains from its distributions for national promotion purposes, in accordance with the agreements it has made with its rightholders and foreign copyright organisations. In addition to this, the fund can be accumulated by receiving gifts, wills, grants and benefits, or by merging other funds with it. Other debts Foreign copyright organisations 2,776, ,735, Finnish rightholders 1,547, ,435, Withholding tax 1,266, ,234, VAT 847, , Other 154, , ,592, ,184, Accruals and deferred income Holiday pay 864, , Promotion of Finnish music 195, , Other 129, , ,188, ,398, Distribution funds to rightholders Performing right royalties 43,597, ,872, Mechanical reproduction royalties 1,027, , Remuneration for public lending 1, , Compensation for private copying 1,401, ,172, Network personal video recorder services 396, Gramex royalties collected by Teosto 5, , ,429, ,989,

13 5 Securities and contingent liabilities Securities Rent deposit 195, , Rent liabilities Payments outstanding in connection with leases Payments to be made in the next financial period 651, , To be paid later 2,741, ,414, Total 3,393, ,069, Leasing liabilities Payments outstanding in connection with leasing agreements Payments to be made in the next financial period 66, , To be paid later 100, , , Total security and contingent liabilities 3,755, ,288, Notes on personnel Average number of personnel Teosto Compensation for private copying Personnel costs Salaries 4,742, ,544, Fees 221, , Pension costs 1,074, ,071, Other personnel costs 255, , ,293, ,107, Board of Directors Fees paid to Board members 97, , The retirement age of the CEO, deputy CEO and their deputies has been agreed at 60 years. 7 Ownership in other companies Name Domicile Ownership Polaris Nordic A/S Copenhagen 33.3% GT Music Licences Ltd Helsinki 50.0% 13

14 PROPOSAL FOR DISTRIBUTION TO RIGHTHOLDERS The Board of Directors proposes that the total amount of EUR 53,294, be distributed for The distribution sum is made up as follows Performing right royalties collected by Teosto 40,430, ,121, Mechanical reproduction right royalties collected by Teosto 882, , Performing right royalties from other organisations 4,089, ,394, Mechanical reproduction right royalties from other organisations 3,284, ,349, Network personal video recorder services 396, Remuneration for public lending 539, , Compensation for private copying 1,401, ,658, Gramex royalties collected by Teosto 86, , ,108, ,575, Distribution reserves from previous years 1,520, ,592, Compensation for private copying from the previous year to Teosto s rightholders 665, , ,185, ,435, Total distribution to rightholders 53,294, ,010, SIGNATURES TO THE ANNUAL REPORT AND FINANCIAL STATEMENTS Helsinki 16/03/2016 Kim Kuusi Chairman of the Board of Directors Katri Sipilä CEO Kimmo Hakola Ari Nieminen Juha Tikka Tommi Tuomainen Kaija Kärkinen An auditor s report has been submitted on the audit conducted on this date. Helsinki KPMG Oy Ab Heidi Vierros Authorised Public Accountant 14