2018

2018
ANNUAL REPORT 2018
Publisher
AKM Autoren, Komponisten und Musikverleger reg. Gen. m.b.H.

Baumannstrasse 10, 1030 Vienna, Austria

Postal adress: Postfach 259, 1031 Vienna, Austria
Tel: +43 (0) 50717-0
Fax: +43 (0) 50717-19199
E-Mail: direktion@akm.at
Internet: www.akm.at

The cooperative is registered in the commercial register of the

Commercial Court of Vienna under registration number FN 95866f

Business year
Calendar year 2018

Authorization
By public announcement of the Ministry of Education on 31 August 1946, BGBI 193, consolidated
version as per KommAustria’s decision KOA 9.102/08-015 dated 30 June 2008, and the decision of
the Copyright Senate, UrhRS 5/08-4 dated 29 October 2008, as well as the decision of the Super-
visory Authority for Collective Management Organisations dated 18 October 2016 (AVW 9.110/16-
002), AKM was granted permission to administer the copyrights of composers, authors and music
publishers as Collective Management Organisation as defined by the act on Collective Management
Organisations.

State supervision
By law, Collective Management Organisations are subject to regulatory supervision which is
exercised by the Supervisory Authority for Collective Management Organisations based in the
Ministry of Justice.

Editor
Susanne Lontzen

Graphic-Design
Christian Modlik

Pictures
Eva Kelety Photography
Contents
05 Letter from the General Manager
07 Business development
License Revenues
Expenses and Admin rate
Distribution sum
11 Our members
Beneficiaries
Registration of works and programs
Distribution
14 About us
18 Financial Statements
Balance sheet
Profit and loss statement
22 What we do
23 Mission statement 2018
2018
 Gernot
Graninger
General Manager

2018 2018

04
Dear members
of AKM, dear
readers,
Our business development in 2018 is reason to celebrate. Revenues increased by 4.35% to € 118 million and
the distribution sum broke the 100 million mark for the first time; it now stands at € 101 million. With an ad-
ministrative rate of 11.35%, AKM remains one of the most efficient collecting societies for music and does not
need to shy away from international comparison.

2018 was marked by our efforts to bridge the value gap in copyright and ensure fair compensation for creatives
for online use of their works. Selected AKM members participated in events organized by the European umbrel-
la organization Gesac in Brussels and Strasbourg, where they met with Austrian MEPs in the European Parlia-
ment and presented their views. At the same time massive misinformation campaigns of the policy opponents
led to uncertainty among users.

Eventually, there was a positive vote for the directive in March 2019, so copyright has finally arrived in the 21st
century. We will continue to support its implementation at the national level. The Broadcasting Directive has
also developed positively and, among other things, simplifies the licensing of transnational online services
offered by broadcasters.

Numerous measures were taken last year to improve internal processes and modernize our services. We
introduced NEON, a new tool that enables multi-territorial online licensing of your repertoire. The speed and
efficiency of this self-learning system allows quick distribution of royalties. Our online service portal is also
constantly evolving to ensure secure and convenient access to information.

Many of our activities are based on the feedback you gave us during the 2018 Member Survey. We will continue
to work hard to improve our member services over the next few years so that you can devote your time to your
core task: to write, compose and publish your music, enriching our everyday lives and cultural diversity.

Gernot Graninger
General Manager

05
 Business
development
Scope

AKM stands for authors (A), composers (K) and music publishers (M). AKM is a Collective Management Organisa-
tion according to the Austrian law on Collective Management Organisations. Based on the authorization granted
by the Austrian Supervisory Authority for Collective Management Organisations, AKM administers the perfor-
ming rights, broadcasting rights and provision rights in musical works with or without text from composers,
authors, their legal successors and music publishers.

AKM grants all users the licenses required for the use of music, collects license fees and distributes the royalties
among the entitled authors, their legal successors and music publishers.

AKM administers the exploitation rights of its members not only in Austria but almost all over the world through
reciprocal agreements with 79 foreign sister societies. This ensures that the beneficiaries of AKM receive their
royalty share for the use of their works abroad. In addition, AKM also provides collection services for other Aust-
rian collecting societies in their name and on their behalf.

Besides its main purpose, the licensing and settlement of royalties, AKM fulfils important social and cultural
tasks in favour of its beneficiaries.

License revenues
2018 was an economically successful year for AKM. Total revenues increased by 4.3% to EUR 118.153 million.

2018 T€ 2017 T€ %-change vs PY

License revenues domestic and foreign 113,167 108,366 4.4
Other revenues 4,807 4,624 4.0
Revenues total 117,974 112,991 4.4
Other income 178 237 –24.8
Total 118,153 113,228 4.3
Expenditure 16,164 15,103 7.0
Financial result 8 203 –96.2
Distribution sum 101,996 98,328 3.7

06
License revenues total; Split by types of use

2018 T€ 2017 T€ %-change vs PY

Live performances 20,746 20,597 0.7
Performance from audio carriers 31,106 30,131 3.2
Television 17,445 17,436 0.0
Radio 14,598 14,099 3.5
Cable retransmission 11,198 10,988 1.9
Online* 4,709 1,924 144.8
License revenues domestic 99,803 95,176 4.9
License revenues foreign 13,365 13,190 1.3
License revenues total 113,168 108,366 4.4

* Online revenues include settlements dating back to 2014

License revenues development

(T€) Domestic license revenues Foreign license revenues Total

2013 85,923 9,437 95,360

2014 87,554 10,584 98,138
2015 90,211 10,762 100,973
2016 91,714 11,606 103,320
2017 95,176 13,190 108,366
2018 99,803 +4.9 % 13,364 +1.3 % 113,168 +4.4 %
80,000

Licenses
When protected music is presented outside the private sphere, it is considered a „public performance“. The orga-
nizer or company needs a license which is issued by AKM.

Single-day events

4,349
Früh-
schoppen

7,298
Ballroom 16,953
dances Fairs

3,833 35,112
Concerts
Carneval

4,704
Clubbings
& Discos

07
 Permanent licenses
Our customers with permanent license use the positive effect of music in their outlets. These include:

18,660
7,584 Accommodation provider
Taverns 4,553
397 Restaurants
8,553 Discos/Dance cafes
Retail outlets

157 Movie theatres

95
Radio programs
111 TV programs
150 Cable networks 158 Webradios

Foreign license revenues per country/organisation

Payment to foreign Collective Payment from foreign Collective

Management Organisations / TOP 10 in 2018 Management Organisations / TOP 5 in 2018
Country Organisation 2018 T€ Country Organisation 2018 T€
DE GEMA 6,858 DE GEMA 12,367
CH SUISA 1,900 US ASCAP, BMI 8,020
FR SACEM 968 UK PRS 4,539
IT SIAE 787 FR SACEM 1,648
UK PRS 307 IT SIAE 727
JP JASRAC 306
US ASCAP, BMI 281
DK KODA 229
NL BUMA 222
HU ARTISJUS 192

08
Admin rate
The central indicator for the cost-effectiveness of a collecting society is the administration rate.

Development admin rate

2013 12.02 %
2014 10.96 %
2015 9.92 %
2016 9.75 %
2017 9.76 %
2018 11.35 %

Distribution sum
The most important indicator for the rights holders is the distribution sum of the respective year.

More royalties for rights holders.

Distribution sum increased by 3.7%.

Development of distribution sum

% increase vs PY +3.7 %
+2.7 % +4.2 %
+3.6 % +3.2 %
+3.4 % +0.5 %

2012 2013 2014 2015 2016 2017 2018

09
 2018 2018
Susanne
Lontzen
Membership Services &
Communications

„Our members’ demands are

as diverse as their music.
Timely and transparent
communication is essential
for working together in
a spirit of trust.“

10
 Our
members
Beneficiaries
Around 25,000 authors, composers and music publishers joined AKM already. In the year under review, a further
1,075 composers, text authors and music publishers decided to entrust their exploitation rights to AKM and
benefit from our high service level.

Statistics of AKM-beneficiaries* 2018

(31. 12. 2018)

22,031 Authors & Composers

1,593 Legal successors
660 Music publishers
24,870 Total
* AKM beneficiaries = all of the above who have signed a rights administration agreement with AKM. As of 31.12.2018,
there are 586 full members of AKM (members of the cooperative) of whom 531 are authors and 55 are publishers.

Gender split
Authors & Composers

16 %
84 %
Beneficiaries
per age group
Beneficiaries
up to 30 years 12.3 %
per region
up to 40 years 24.1 %
33 %
up to 50 years 22.4 % 8.8 % 15.6 %
up to 60 years 22.0 %
up to 70 years 11.7 %
up to 80 years 5.1 % 3.5 % 10.5 % 5.5 % 14.5 % 2.8 %
above 80 years 2.4 %
5.9 %

11
 Works registration
Within the last 10 years, the number of works submitted has quadrupled.

Works registration from AKM beneficiaries

1,949,996
1,343,572
1,181,603
661,326
454,055

2008 2011 2014 2016 2018

Registration of Programs
Music programs of concerts or other events with live music build the foundation for the distribution
of license fees.

Registration of Programs from AKM-beneficiaries

+29.5 % +1.8 %
+3.6 % +4.0 % +1.4 % 23,024 23,439
16,856 17,531 17,784

2014 2015 2016 2017 2018

Distribution to
beneficiaries 80 %
up to 1,000 €
The table shows the split
of the distribution sum 2018 13.4 %
to the beneficiaries. 1,000–5,000 €
93 % of all beneficiaries
receive up to € 5,000 each.
00 €
0 –10,0
% 5,00 0€
3.4 5 0 ,00 0 €
– 0 re
00 0,0 o
1 0,0 –10 d m
% 0 an
2.6 ,00 €
50 00
% ,0
0.3 100
12 0.
2%
2018 2018

Paul
Fischer
Legal Department

„The new EU Copyright

Directive enables creators
to obtain fair compensation
for the use of their works
on internet platforms.“

13
 About us
AKM is organized as a cooperative and belongs to the authors, composers
and music publishers. The bodies of AKM are composed according to the basic idea
of self-administration of the right holders and consist exclusively of rights holders.
The Management Board and Supervisory Board are elected from their midst
every five years by the General Members Meeting.

Management Board
and Supervisory Board
Management Board
The board elected by the General Members Meeting consists of four members each of the authors, composers
and music publishers group.

In the year under review the board consisted of the following members:

Authors Composers Music publishers

Johann Ecker Robert Opratko Edith Michaela Krupka-Dornaus
Vice president President (until June 13, 2018) Vice president
Horst Chmela Peter Vieweger Clemens Brugger
Victor Poslusny Vice president (until June 13, 2018) Christian Kobel
President (as of June 13, 2018)
Adam Stassler Astrid Koblanck
Paul Hertel
Vice president (as of June 13, 2018)
Peter Janda
Lothar Scherpe (as of June 13, 2018)

The Management board as a collective body and on its behalf the General Manager
runs the business according to the statute of AKM.

From left to right: Johann Ecker, Victor Poslusny, Clemens Brugger, Peter Vieweger, Peter Janda,
Vivi Krupka-Dornaus, Paul Hertel, Adam Stassler, Lothar Scherpe, Horst Chmela.
Not pictured: Christian Kobel, Astrid Koblanck.

14
Organisation chart

General Members Meeting

Management Board Supervisory Board

General Manager

Supervisory Board
The board elected by the General Members Meeting consists of two members each of the authors,
composers and music publishers group.

In the year under review the board consisted of the following members:

Authors Composers Music publisher

Hermi Lechner-Fasching Richard Dünser Helmuth Pany
2nd deputy Chairwoman Chairman 1st deputy Chairman
Werner Marinell Kurt Brunthaler Horst Bichler

Financial expert Works council representatives

Heinz Manfreda (as of June 13, 2018) Siegfried Flenreisz, Franz Fröhlich (as of June 13, 2018),
Romana Herker, Monica Valenta
Commissions
AKM has some statutory commissions, such as the Program Review Commission and the Musical Grading
Committee. The members of all commissions are also elected by the General Members Meeting.

From left to right: Horst Bichler, Helmuth Pany, Hermi Lechner-Fasching, Richard Dünser,
Werner Marinell. Not pictured: Kurt Brunthaler, Heinz Manfreda

15
 Business units
and employees
General Manager: Gernot Graninger
Number of employees (Dec. 31, 2018): 150 employees

There are 95 employees working at the head office in Vienna, 54 in the nine branches (including the Vienna of-
fice), plus 1 marginal employee. The offices of AKM are located in the state capital of the nine federal states and
are part of the Business Unit Licenses.

The Business Unit (BU) Licenses grants licenses to music users and collects license fees. The Business Unit
New Media is responsible for the licensing of online usage. The Business Unit Royalties distributes the royalty
income to authors, their legal successors and music publishers. The accurate mapping of business transactions
and accounting is handled by the Business Unit Finance. The Business Unit Information Technology provides
the necessary IT infrastructure. The administrative departments reporting to the General Manager take care of
legal matters, membership services and communications.

Organisation chart

Gernot Graninger
General Manager

Susanne Lontzen Paul Fischer

Membership Services & Legal
Communications

Georg Linhart Ingrid Polak Barbara Bastirsch Roman Oslansky Arno Obrietan
BU Licenses BU New Media BU Royalties BU IT BU Finance

16
 Ingrid

2018
Polak
Business Unit New Media

2018
„Online use of music is more
popular than ever. NEON,
our new software tool for
multi-territorial online
licensing, allows the quick
and accurate distribution
of license fees.“

17
 Financial Statements
Balance sheet as of December 31, 2018
Figures of previous year in 1,000 € (T€)

Assets 31/12/18 31/12/17

€ T€
A) Fixed assets
I) Intangible assets
1) Software and licenses 1,012,083.06 1,542
2) Progress payments 29,295.00 125
1,041,378.06 1,667
II) Tangible assets
1) Land and buildings 9,071,932.21 7,638
2) Other fixed assets, tools and equipment 840,498.45 941
3) Assets under construction 31,305.56 947
9,943,736.22 9,527
III) Financial assets
1) Investments in subsidiaris 63,254.42 55
2) Other investments 419.00 0
3) Securities 18,875,037.60 19,130
18,938,711.02 19,185
29,923,825.30 30,378
B) Current assets
I) Accounts receivable and other assets
1) Receivables from trade 13,757,617.97 11,225
thereof payable after more than one year 0.00 0

2) Receivables from members 1,710,167.70 1,623

thereof payable after more than one year 0.00 0

3) Other receivables and other assets 384,742.29 372

thereof payable after more than one year 102,835.22 111
15,852,527.96 13,220
II) Cash in hand, cash at bank 64,937,141.16 63,697
80,789,669.12 76,918

C) Prepaid expenses and deferred charges

1) Other prepayments 99,530.58 123
99,530.58 123
110,813,025.00 107,419

18
Financial Statements
Balance sheet as of December 31, 2018
Figures of previous year in 1,000 € (T€)

LIABILITIES 31/12/18 31/12/17

€ T€
A) Equity
I) Stockholders equity
1) Stockholders remaining 4,254.36 4
thereof paid: € 4,225.32, 2017: T€ 4
2) Stockholders leaving 101.64 0
thereof paid: € 50.82, 2017: T€ 0
4,356.00 4

II) Unappropiated income 0.00 0

thereof income brought forward € 0.00, 2017: T€ 0
4,356.00 4
B) Provisions
1) Provisions for severance payments 2,205,000.00 2,043
2) Provisions for pensions 3,690,000.00 3,825
3) Other provisions 1,122,700.00 908
7,017,700.00 6,776
C) Liabilities
1) Accounbts payable from trade 3,577,117.80 3,790
thereof payable within one year 3,577,117.80 3,790

2) Accounts payable from appropriated royalties 3,007,862.39 2,757

thereof payable within one year 3,007,862.39 2,757

3) Accounts payable to affiliated companies 517,521.78 493

thereof payable within one year 517,521.78 493

4) Other liabilities 5,715,367.82 5,658

thereof payable within one year 5,595,328.63 55,546
thereof payable after more than one year 120,039.19 112

thereof liabilities from taxes 2,194,416.63 2,188

thereof payable within one year 2,194,416.63 2,188
thereof liabilities from social security 168,802.03 164
thereof payable within one year 168,802.03 164
5) Accounts payable from unappropriated royalties 105,926,499.21 103,312
thereof payable within one year 105,926,499.21 103,312
6) Less prepayments of unaproppriated royalties -14,953,400.00 -15,370
103,790,969.00 100,639
thereof payable within one year 103,670,929.81 100,528
thereof payable after more than one year 120,039.19 112
110,813,025.00 107,419

19
 Financial Statements
Statement of income 2018
Figures of previous year in 1,000 € (T€)

2018 2017
€ T€
1) Sales income
a) Domestic income 99,802,608.61 95,176
b) Income from abroad 13,364,499.55 13,190
c) Other income 4,807,210.67 4,624
117,974,318.83 112,991
2) Other operating income
a) Income from the disposal of fixed assets
other than financial assets 15,907.25 29
b) Income from the reversal of provisions 19,342.33 12
c) Other operating income 143,133.23 196
178,382.81 237
3) Personnel expenses
a) Salaries -6,219,930.20 -6,257
b) Expenses for (contributions to) social security
ba) Expenses for severance payments and payments
for severance funds -172,209.01 -186
bb) Expenses for pensions -599,090.72 -559
bc) Expenses for statutory social security contributions and
pay-related levies and compulsory contributions -1,737,690.20 -1,685
bd) Other -175,385.58 -171
-2,684,575.51 -2,601
-8,904,505.71 -8,858
4) Depreciation and amortisation
a) Depreciation and amortisation on intangible and fixed assets
other than financial assets -1,829,740.78 -1,627
5) Other operating expenses
a) Taxes other than taxes on income -11,434.85 -14
b) Other operating expenses -5,418,681.47 -4,604
-5,430,116.32 -4,618
6) Subtotal of lines 1 to 5 (earnings before interest and tax) 101,988,338.83 98,124
7) Income from securities shown und financial assets 14,890.52 22
8) Other interes and similar income 107,081.97 130
9) Income from the write-up of financial assets 0.00 59
10) Expenses from financial assets -105,000.00 -7
11) Interest and similar expenses -9,266.41 -0
12) Subtotal of lines 7 to 10 (financial success) 7,706.08 203
13) Net income = Royalties to be appropriated 101,996,044.91 98,328
14) Beneficiaries Claims -101,996,044.91 -98,328
15) Annual surplus = Net profit 0.00 0

20
 21
2018
2018
 What we do
AKM
> is the largest Collective Management Organisation in Austria,
> acts as trustee and assures rights and claims
of music authors and publishers,

> is organized as a cooperative and belongs to the text authors,

composers and music publishers,
> represents the rights of more than 25,000 members in Austria and via
reciprocal representation agreements with international affiliates of millions of
copyright holders around the world.

AKM provides services for

music creators and music users
> Music authors and music publishers
receive their royalties through AKM, if their music
is publicly performed or broadcast or made available on the Internet/mobile network.

> Music users (event organizers etc.) can acquire the required license
for these music uses for almost the entire world repertoire of protected music
centrally at AKM.

AKM passes all revenues to the

music authors and publishers.
> Royalties are settled according to fixed rules.
> Before distributing all revenues, only the operating expenses incurred are deducted.
AKM is not profit oriented.

> As part of its social and cultural tasks and in accordance

with its guidelines, AKM provides social benefits to its beneficiaries and promotes
Austrian music productions.

22
Our mission
The loyalty of our customers and members
is our key objective.

We create trust through transparency,

speed and reliability.

Our professional expertise ensures the quality

of our services in our core business and
in new business areas.

We focus on flexibility, innovation

and cost awareness.

We act service oriented and show

appreciation for our members,
customers and partners.

We communicate clearly and

implement consistently.
2018 2018
International alignment is of
great importance to us.

We feel committed to social

and cultural values.

23