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Transcript of Annual Report 2011
Financial Statements 2011
Dir
ect
Phot
o R
ene
Kei
jzer
This task makes great demands on the quality
of our work, persuasion powers and the
effective ness of our communication. An open
and good collaboration in the political field is
needed to powerfully protect the interests of
intellectual property as well as making clear
decisions about topics as illegal downloading
and fair use of copyright.
Since taking office, I have observed this
focus on quality and influence. Of course not
everything goes flawlessly in our extremely
complex market with its great diversity of
copyright. But learning has undeniably come
from these mistakes. In many respects I have
found a continuously learning organisation.
Both within and outside the organisation I have
been given a warm welcome. I am grateful for
that as it always takes some time getting used
to having someone from outside. In a short
time I have learnt a lot from many – sometimes
I even get the impression that not everyone
notices straightaway that I have not been
there very long.
The current Board has taken a brave decision
to restructure the governance of Buma/Stemra.
That is also my priority.
The General Assembly (ALV) of February
2012 adopted the governance proposals
with a majority of about 92%. In May 2012
the statutory translation of these decisions
will be presented to the ALV, with the final
appoint ment of 12 new board members and
an independent chairman. Also the members
council will then be installed. One and a half
years later the external evaluation will follow,
the results of which are decisive for further
decision making about size and constitution
of the Board.
The coming time there will be again more
space for dealing with important intrinsic
issues. A properly functioning managerial
organisation is self-evident for members.
Members ask nothing else than what’s in it
for me? Ultimately the interests of members
are at the heart of a collective rights manage-
ment organisation. That is our focus. For me
personally, it is a privilege to be allowed to
chair this creative and inspiring community.
Leo de Wit,Chairman of the Board a.i.
Dear reader,
2011 was an extremely turbulent year for Buma/Stemra. Intense discussions about
developments in copyright, radical changes in governance and organisation, and last but
not least considerable publicity. Buma/Stemra operates in a sensitive market, with many
opinions and views about temporary and future strategies, about the development and
enforcement of copyright and standing up for the interests of our members and
copyrights owners.
Foreword
Noteworthy iN 2011
• launching mijnlicentie.nl,
where music users can
arrange nearly all licences
of Buma, Sena, Videma and
Reprorecht in one go
• € 11.7 million allocated to
social and cultural purposes
• € 143.2 million distributed to
songwriters, composers and
publishers
• robust innovation of our organisation,
such as halving the Board
• growth of Buma to 20,000 members
• start of fingerprint technology and
publication of unclaimed works, so
that all music authors can receive the
compensation that they are entitled to
table oF CoNteNts
10
11 36
12 6606
03Foreword
Key figures
Buma 5-year
overview for
2007-2011
Stemra 5-year
overview for
2007-2011
Buma Financial
statements 2011
Board report
Stemra Financial
statements 2011
18Directors’ report 91Composition of
the Board and the
board of directors
Buma/Stemra
05
Key Figures
Breakdown of 2011 turnover in percentages - Buma
Breakdown of 2011 turnover in percentages - Stemra
Results BumaResults in € millions
Results StemraResults in € millions
Sales Outlets
Cable
Catering
Workplaces
Radio & TV Performing Rights
Stage
Performing RightsAbroad
Performing RightsOnline Licensing
Mechanical RightsAbroad
Special Licensing/Private Labels
Biem Phonomechanical Rights/Central Licensing
Radio & TV Mechanical Rights
Home Copy/Lending Rights
Mechanical RightsOnline Licensing
1,0%
36,3%
8,3%9,0%
8,3%
14,2% 10,5%
12,3%
5,7%
39,1%
5,4%
13,7%
16,4%
19,7%
-30
-20
-10
0
10
20
30
2007 2008 2009 2010 2011
10,4 -7,8 8,3 8,5 7,8-12,0 -12,2 -13,2 -13,6 -16,9-1,5 -19,9 -4,9 -5,1 -9,1
-8
-6
-4
-2
0
2
4
6
2007 2008 2009 2010 2011
4,3 -1,1 4,2 4,8 2,0-4,0 -5,0 -4,6 -4,6 -1,9-0,3 -6,1 -0,4 -0,3 -0,1
Financial result Operating result Results on ordinary activities
Financial result Operating result Results on ordinary activities
ANNUAL REPORT 2011
Buma/Stemra
Breakdown of 2011 turnover in percentages - Stemra
Turnover BumaTurnover in € millions
Turnover StemraTurnover in € millions
Staffing Levels Buma/Stemra As per year End
110
115
105
120
125
130
135
140
145
2007 2008 2009 2010 2011
129,4 140,0 136,4 140,3 142,9
0
10
20
30
40
50
2007 2008 2009 2010 2011
51,6 45,0 40,7 35,7 32,1
0
50
100
150
200
2007 2008 2009 2010 2011 2011
63 57 59 57 59105 118 113111 115
198
Part-time FTE
Number of Staff
Full-time FTE
07
Turnover segmentation Buma (x € 1.000) 2011 2010 2009 2008 2007
Radio & TV Performing Rights 51,863 50,228 51,329 52,541 45,714
Live 20,363 19,899 21,513 20,799 18,249
Hospitality Industry 15,047 17,015 14,663 14,710 15,744
Workplaces 17,600 17,799 13,777 15,215 15,143
Shops and stores 12,827 11,940 11,716 11,901 11,427
Performing Rights Online Licensing 1,471 757 893 946 840
Cable 11,886 12,168 12,396 13,035 12,292
Performing Rights Abroad 11,891 10,540 10,153 10,857 10,023
142,948 140,346 136,440 140,004 129,432
Turnover segmentation Stemra (x € 1,000) 2011 2010 2009 2008 2007
Biem Phonomechanical Rights / Central Licensing
12,564 16,684 18,229 19,866 24,599
Special Licensing / Private labels 6,319 6,306 5,656 8,860 9,930
Radio & TV Mechanical Rights 5,285 5,138 7,266 6,211 5,276
Mechanical Rights Online Licensing 1,835 515 1,314 1,219 1,664
Home copy / Lending Rights 1,744 3,223 3,533 4,184 4,269
Mechanical Rights Abroad 4,391 3,796 4,682 4,701 5,838
32,138 35,662 40,680 45,041 51,576
Distribution by BumaRoyalties in € millions
Distribution by StemraRoyalties in € millions
0102030405060708090
100110120130140
2007 2008 2009 2010 2011
11,6 11,3 10,4 10,2 9,643,6 46,5 43,839,0 43,3
60,4 68,0 69,9 67,4 70,3
10
20
30
40
50
60
2007 2008 2009 2010 2011
3,0 0,6 0,7 0,2 0,24,0 3,1 3,15,0 3,8
6,8 7,4 5,6 5,0 4,539,3 34,8 34,1 28,5 24,4
Central Licensing
Foreign Organisations
Administration Costs
Members and Participants
Fund for Cultural and Social Purpose
Foreign Organisations
Members and participants
Key Figures
ANNUAL REPORT 2011
Dio
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Vis
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buma 5-year oVerView For 2007-2011
(x € 1.000)
ANNUAL REPORT 2011
2011 2010 2009 2008 2007
Distribution
Members and participants 70,345 67,440 69,943 68,034 48,736
Foreign organisations 43,799 46,549 43,269 43,645 39,029
Funds for cultural and social purposes
9,581 10,212 10,395 11,294 11,618
Administration costs 1,838 2,151 1,940 1,769 1,717
Distributed in the reporting year
125,563 126,352 125,547 124,742 101,100
To be distributed at year-end 170,504 162,211 156,536 153,816 151,991
turnover 142,948 140,346 136,440 140,004 129,432
Profit and loss account
Income 3,151 3,357 3,140 3,033 2,709
Expenses -20,060 -16,919 -16,908 -15,752 -15,142
Operating result -16,909 -13,562 -13,768 -12,719 -12,433
Financial result 7,817 8,496 8,849 -7,225 10,912
Result for the year -9,092 -5,066 -4,919 -19,944 -1,521
Key index figures
Total turnover index (2007 = 100)
110.4 108.4 105.4 108.2 100
Operating costs index (2007 = 100)
132.5 111.7 111.7 104.0 100
Operating costs as % of turnover
14.0 12.1 12.4 11.3 11.7
Distributed in the reporting year as % of (turnover last year -/- result on ordinary activities last year)
95.1% 98.5% 104.6% 97.5% 96.0%
* Adjusted for comparison purposes
stemra 5-year oVerView For 2007-2011
(x € 1.000)
Buma/Stemra
11
2011 2010 2009 2008 2007
Distribution
Associates and participants 24,394 28,493 34,128 34,829 39,251
Foreign organisations 4,459 4,964 5,638 7,378 6,770
Central Licensing 225 195 671 592 2,990
Administration costs 3,133 3,098 3,828 4,099 5,006
Distributed in the reporting year
32,211 36,750 44,265 46,898 54,017
To be distributed at year-end 38,738 38,755 40,863 45,438 49,175
turnover 32,138 35,662 40,680 45,041 51,576
Profit and loss account
Income 3,801 3,700 4,377 4,728 5,418
Expenses -5,697 -8,241 -9,107 -9,865 -9,567
Operating result -1,896 -4,541 -4,730 -5,137 -4,149
Financial result 1,952 4,821 4,319 -993 4,433
Result for the year 56 280 -411 -6,130 284
Key index figures
Total turnover index (2007 = 100)
62.3 69.1 78.9 87.3 100
Operating costs index (2007 = 100)
59.5 86.1 95.2 103.1 100
Operating costs as % of turnover
17.7 23.1 22.4 21.9 18.5
* Adjusted for comparison purposes
Board report
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1. FinAnCiAL STATemenTThe financial statements have been audited by KPMG
Accountants N.V. and have been issued with an unqualified
independent auditor’s report. We recommend that you
approve and adopt the financial statements for 2011 of
Buma and the financial statements for 2011 of Stemra,
including the board of directors’ proposals, and to
discharge the Board and the board of directors.
2. meeTingSThe Board met eight times in 2011.The majority of attention
was focused on the set-up of the governance, a new Board
structure and the expansion of transparency. Furthermore,
in nearly all of the meetings, we have paid attention to
the future of Stemra and in view of the negative publicity,
the press and public affairs policy.
Other matters that were discussed in the consultations in
the past year, were:
• the financial statements 2010 and the 2011 and 2012 budget
• investment policy
• strategy
• constitution of the management committees
• set-up of a committee Buma 100 years
• the ban on downloading from illegal sources
• the policy of Buma Cultuur
• the addressing of performing artists as principally responsible
for providing repertoire and performances
3. ReView oF DiSTRiBuTion RuLeSIn 2011 the Board and Board committees reviewed, in
consultation with the board of directors, the distribution
rules. This is a continuous process of investigation and
actualization of the regulation. The review on actuality
and usefulness has led to various adjustments.
implemented adjustmentsExamples of implemented adjustments are processing of
fingerprinting in commercials and a separate subsequent
payment over the years 2008 and 2009. Furthermore,
adjustments have been made to such matters as flexible
rights administration, differing distribution keys for Dutch
works, and collection from Stemra from publishers with
NS-authors.
non-implemented proposalsA number of proposals have not been implemented. These
were proposals about reducing the complaint period, the
separability of text and music in plagiarism and a proposal
about flexible online rights administration (flexco).
The coming periodIn 2012, together with the Board committee Distribution
Streams, we are going to direct our attention to topics as
the specification of distribution keys. We will do this based
on the use of music, reference repertoire, a more transparent
allocation of funds and by obtaining specifications of music
use in the sector amusement live (stage).
4. DePARTuRe CeeS VAn RijHalfway through 2011 Buma/Stemra decided to terminate
the employment relationship with Cees van Rij. Since
March 2010 Cees van Rij was vice-chairman of the statutory
board of directors of Buma/Stemra. Furthermore, he was
responsible for Legal Affairs, RTV/Cable and Foreign affairs.
As of 12 September 2011 Anja Kroeze is appointed as
General Counsel, manager Legal Affairs and RTV/Cable.
5. The geneRAL ASSemBLy The Joint Members meeting of Vereniging Buma and the
Meeting of Affiliates of Stichting Stemra took place on 23
May 2011 at the Grand Hotel Krasnapolsky in Amsterdam
The members gave their approval to the financial statements
2010 of Buma and the financial statements 2010 of Stemra
and discharged the Board and the board of directors for
its policy.
6. APPoinTmenTSAt the General Assembly of 23 May 2011 Henk Alkema,
Hans Kosterman, Bobby Sukhraj and Arno van Berkel were
appointed as members of the Buma-Board. Hans Everling,
Bèr Deuss and Niels Walboomers were appointed as
members of the Stemra-Board.
We present you with the annual report of Vereniging
Buma (Buma Association) and Stichting Stemra
(Stemra Foundation) for the financial year 2011.
The annual report comprises the Board report, the
Directors’ report and both sets of financial statements.
ANNUAL REPORT 2011
board rePort
in memoriam: henk AlkemaOn 4 August 2011 Henk Alkema passed away. On 23 May,
just a few months before, he was appointed as board
member on the recommendation of Beroepsvereniging
voor Componisten en Multi Media (BCMM). We lost a skilful
manager and someone who lived for music. Alkema was
trained as pianist by Leon Orthel at the Royal Academy of
Music in The Hague. Later he studied orchestra management.
He composed, played the piano, conducted, worked in
theatres, concert halls and studios. At the Utrecht Academy
of Music (HKU) he taught composition and ensemble
conducting and he was (interim) director. Alkema wrote
two full-length operas, songs, orchestral works, chamber
music, light music and film music. For his opera Bonifacius
he received the Bernlef award.
7. DePARTuRe oF ChAiRmAn oF The BoARD KonRAD BoehmeRDuring the General Assembly (ALV) of May 2011 Konrad
Boehmer took his leave as chairman of the Board. Boehmer
has a long history with us. In 1971 he came as a representa-
tive of the GeNeCo in the Board of Trustees to promote
the interests of contemporary composed music. In 1980
the statutes were thoroughly amended and he joined the
new Board. From 1988 to 2006 he was vice chairman of
BUMA. In 2006 both Boards appointed him as chairman.
wide commitmentAs well as his board work, Boehmer devoted himself to
Dutch music in many other areas. He wrote about it in
Vrij Nederland, and for many years he was a member of
the board and chairman of the GeNeCo, a member of the
Arts Council, member of the board of the Federation of
Artists Associations, member of the board of STEIM and
member of the board of the ConcertZender.
internationalHe was also internationally active as a member of the
board of the Confédération de Musique Electroacoustique,
chairman of CIAM, member of the board of CISAC, vice-
chairman of the European Composers Forum and vice-
chairman of BIEM. This international presence provided
a lot of valuable information for Dutch authors. Also this
regularly enabled us to have influence on important decisions
regarding copyright at a high international level.
BalanceBoehmer, as our Chairman of the Board, did not just have
an eye for the interests of serious music, but constantly
upheld the interests of all authors. He saw it as his task
to bring together the interests of authors, publishers and
the organisation Buma/Stemra in a well-balanced way.
The restructure of governance which ultimately took shape
in 2012, has for many years been one of his fervent wishes.
grantBy way of thanks for his more than 40 years unremitting
commitment to copyright, we unveiled the Dr. Konrad
Boehmer Grant during the General Assembly of May 2011.
This grant, worth € 45,000, gives financial support to projects
for strengthening the social-economic position of authors
through lectures, investigations, debates or publications.
Boehmer was active as a member of the Stemra Board and
chairman of the Governance committee till the end of 2011.
8. BoARD AnD goVeRnAnCe ChAngeSinterim Chairman of the Board appointedOn 21 December 2011 we appointed former Chief Public
Prosecutor Leo de Wit as interim-chairman. This appoint-
ment has partly been made possible by the decision of the
members to look for an independent chairman. This was
laid down in the statutes in May 2011. Leo de Wit is, as
special assignment, supporting the supervision of the
restructuring of governance.
ProcedureBy appointing the Governance committee in April 2011,
we have started off the restructuring of governance. As
a result, the members agreed on the broad outlines of
the presented Governance model at an extra General
Assembly on 16 February 2012.
Proposal new management structure set-up in 2012One of the most essential parts of the restructuring of
governance is the reduction of the Board from 24 to 12
members. The new Board will consist of eight authors
and four publishers, led by an independent chairman.
The board members will have to comply with what is
stated in a profile. Furthermore, board members will be
allowed to have a seat on the Board for a maximum of
two periods of four years. In addition, board members
15
Buma/Stemra
board rePort
may no longer fulfil a management position in other
collecting societies.The halving of the Board is part
of an extensive set of actions.
The most important of these actions are:
• the appointment of an independent chairman of the
Buma/Stemra Board
• the establishment of a members’ council with policy
preparation and advisory powers
• the choice for the board-management model
• the introduction of the Quality Model, developed by the
Dutch Quality Institute, which includes more control
mechanisms through a system of internal and external
audits and evaluations
• the organisational separation of safeguarding interests
and integral managerial responsibility
• the participation of members in committees, together
with board members and members of the council
• the introduction of a managerial code of conduct,
including an integrity code
AuditAt the end of 2013 an external audit committee will review
the quality of the Board. The results of this audit – provided
with a managerial advice – will be submitted to the members
for further decision-making.
9. PuBLiCiTyBuma/Stemra considers it is important as a promoter of
the interests of music authors and publishers, to take a
visible place in society. We set great store by bringing into
the limelight what we stand for. For members it must be
clear in what way their interests are being served and music
users must know what happens with the money that they
pay for the use of music. Buma/Stemra does this all year
round via the media, own publicity, the provision of infor-
mation to members and users and via the Buma Cultuur
events. Unfortunately we also have to acknowledge that
in 2011 we were faced with a number of publicity incidents.
Frequently members express their dissatisfaction, also
via the media. These incidents have had negative
consequences for the image of Buma/Stemra.
This attention has also had an impact on the political
opinion about Buma/Stemra, collecting management
and the future of it. Meanwhile, against this backcloth the
Supervisory Board is conducting an investigation into the
background of the claim of composer Melchior Rietveldt,
the role of Mr Gerrits in this and the overall performance
of Buma/Stemra. Buma/Stemra has let it be known from
the outset that it will give full cooperation to these investi-
gations and awaits the outcome with confidence.
ANNUAL REPORT 2011
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Directors’ report
direCtors’ rePort
1. in ShoRTDistributions Buma equivalent to previous yearThis year Buma distributed € 114.1 million to rights owners,
in 2010 it was € 114.0 million. The turnover of Buma has
risen at an average of three million euro annually in the
past two years. The effect of this increase on the distribu-
tions will not be noticeable until 2012. In the first couple
of months € 5 million more has already been distributed to
post-distributions general rights, film and satellite, than in
the same period in 2011. Also the distribution from foreign
societies in 2012 is nearly € 2.5 million higher than in 2011.
Distributions Stemra decreasedStemra distributed € 29.1 million to right owners (in 2010
it was € 33.7 million). The decrease is due to the drop in
the turnover of Stemra. The last two years this was well
over four million euro on average per year. This is mainly
due to the continuing decrease of the sale of physical
music carriers and through the political discussion about
the Home Copying Scheme. Furthermore, partly due to the
absence of a download ban from illegal sources, the online
turnover is falling behind.
growth of Buma to 20,000 membersIn March Buma enrolled its 20,000th member. This growth
shows that music authors and composers still see us as
the organisation to protect their interests and to arrange
a fair remuneration for the use of their music.
improved serviceResearch indicates that we can still improve quite a lot.
Therefore in 2011 we implemented a program of innova-
tion. Pivotal to this is the quality of our service and the
communication with our members and affiliates. We
have started with the improvement of the processing of
complaints and we launched the new Buma/Stemra-website
and the Buma Songtracker app, which gives right owners
real-time insight into the use of their works. To enhance
the quality of distribution we have deployed fingerprinting,
to identify music in commercials. In addition to this we
have developed an approach through which we obtain
more information about the use of music at live-perfor-
mances. We react proactively to collection on the many
new music services which have started. And for the music
users there is now mijnlicentie.nl: a basic registration with
a digital service desk where, as of June 2011, fee payers can
pass on, view and change their details about the use of
music, image and text.
organisation adjustments In order to have these and many other developments run
smoothly and efficiently, we have adjusted our organisation.
Departments have been combined and responsibilities
reinvested. In this directors’ report you will find more
clarification about these adjustments and improvements.
2. oRgAniSATionBoard of directors and management teamIn March 2011 an operational management team was set
up. This consists of managers who are responsible for the
essential processes within the organisation. The chairman
is the chairman of the board of directors. The goal of
this team is to improve the information services and the
reporting about operational matters to the management.
Furthermore, action can now be taken more swiftly
and decisively.
works CouncilIn its role of representing the interests of the Buma/Stemra
co-workers, the Works Council has had regular consultations
with the board of directors, six times in the last year. The
most important issues which came up for discussion were
the Service Centre, whereby in particular attention was
paid to the transfer of Buma’s field workers to the Service
Centre, the complaints project, a number of internal
organisational changes and the future of Stemra.
StrategyThe strategy of Buma/Stemra continues to be directed to:
• maximizing the collected royalties
• fighting for a fair remuneration for our members and defending
legislation for the protection of copyright in the digital present
and the future
• optimising distribution and distribution processes
• enhancing the service orientation
• improvement of quality and intensity of communication
with members
organisational developments and improvementsDuring the General Members Meeting on 23 May 2011 the
results were presented of an independent investigation
into the Collecting Societies (CSs), including Buma/Stemra.
Respondents indicated as important areas for improvement:
ANNUAL REPORT 2011
• the communication and transparency (think of the website
and online services);
• the quality and speed of service and the distributions.
This investigation also led us to give a high priority to the
addressing of these points in 2011. Consequently a lot of
work has been done to actualize improvements in these
areas, in new projects as well as those already initiated.
Some improvements have already been implemented
and noticeable, others will be noticeable in 2012. Below
you can see the improvements that we actualized in
2011.Some we have taken up together with other CSs
or with market parties.
improvement communication and transparencyService Centre Copyright and Related Rights(the Service Centre)The setting up of the Service Centre as an organisation
that is responsible for invoicing and collecting on behalf
of Buma and Sena, has proved to be an effective approach
to the market. We owe the growth of the number of licences
to the efficiency improvements brought about by the
Service Centre. 2011 was the first year that the Service
Centre actually invoiced all the individual licences for the
use of music on behalf of Buma and Sena.This year, via
the Service Centre, we also started with the joint mailing
of potential music users. Clients are thereby asked for
information only once. Combining Sena and Buma’s field
workers further contributed to improving efficiency.
Mijnlicentie.nlMijnlicentie.nl was launched to make it easier for music
users to arrange their licences with Buma, Sena, Videma
and Reprorecht in one go. Every entrepreneur can now,
in just a couple of simple steps, get information online
from all four organisations about the fees and conditions,
arrange licences and view and manage their own details.
Working group PastorsOn 6 September 2011 Marco Pastors, independent chairman
of the Working Group Improvement Collection Royalties,
presented his final report to State Secretary Teeven. He
reported that the consultations in the working group
between VNO-NCW, MKB the Netherlands (Small & Medium
Sized Enterprises the Netherlands) and VOI©E has produced
good results.
Pastors referred to the previously mentioned foundation
Service Centre Copyright and Related Rights, the CS
hallmark and the complaints and disputes settlement.
In addition, the compensation for branch services – budget
neutral – has been harmonised. Also the indexing of the
fees of Buma, Sena, Videma and Reprorecht has been
harmonised. Only the harmonisation of the fee basis
has not yet produced concrete results.
Hallmark Collecting Societies (CS)On 23 November 2011 we received a certificate for the
CS hallmark from Jan Willem Holtslag, chairman of the
College of Supervision Copyright.
Hence a hallmarkWe are one of the initiators of VOI©E, which stands for
Vereniging van Organisaties die Intellectueel eigendom
Collectief Exploiteren ( Association of Organisations that
Exploit Intellectual Property). Since 2008 we have worked
together to foster transparency and quality in the collecting
societies sector. At the start we laid down a common code
of conduct. We wanted to turn this code of conduct into
a CS hallmark, in order to encourage Collecting Societies
giving insight into their performance, that they make
norms easily and objectively verifiable in the form of
hallmark criteria and that these are assessed by an
independent certifying institute. We have succeeded
in obtaining the hallmark certificate.
Development and testingThe hallmark criteria are drawn up by a committee of
interested parties, in which representatives of users –
appointed by VNO-NCW and MKB Nederland (Small &
Medium Sized Enterprises the Netherlands) – have 50%
of the votes. The hallmark criteria are annually tested
by a hallmark institute. This institute gives a binding
advice about the granting or revoking of the hallmark.
An affiliated CS must comply with the Directives and
regulations for good governance and integrity that the
College of Supervision Copyright oversees. These direc-
tives include the transparency of governance, indepen-
dent supervision of the board of directors and contains
a whistle blower regulation with an external independent
contact point.
21
Buma/Stemra
direCtors’ rePort
we are also certifiedMeanwhile, we too meet the CS hallmark criteria.The
financial statements for 2011 have even been completely
adjusted to the relevant criteria. For example, the presen-
tation of the cash flow statement has been changed and
a number of notes extended.
normsThe interests of rights owners are safeguarded in the
norms. For instance, investments or allocation to social-
cultural funds. Also transparency in the contact with users
is laid down – about for example, the represented rights,
fees or compensation principles –. Furthermore there
are norms for the quality of services, such as updating
the address database and the processing of transactions.
There is a uniform complaints and disputes settlement
established for users. And there are norms for providing
openness in matters about the financial data, the costs
and the timely distribution of funds.
Buma Jr.In 2011 we started with the development of Buma Jr.
(Junior). Buma Jr. is a new and free of charge platform for
young composers and authors. Designed to advise them
about their copyright and to help them on their way with
their musical career. On bumajr.nl they can come into
contact with professionals from the music branch, make
use of exclusive discounts, promote their own numbers
and get to know everything about copyright. In the first
months after launching several hundred interested
parties have already registered.
Website and online servicesIn October 2011 we have launched our new website.
It is more accessible and offers more space for obtaining
information in a simple, user-friendly and clear way.
An example of this is the distinction between ‘I want
to be paid’ and ‘Do I have to pay?’.
Buma SongtrackerDuring the Amsterdam Dance Event we launched the Buma
Songtracker App. With this App rights owners can follow
airplay of their works. The app uses the fingerprint system,
that registers, 24 hours a day, which works are played on
more than 40 national radio stations. With the Songtracker
App we have made a start to giving rights owners more
insight into the use of their works.
New portalIn the second half of 2012 our new Buma/Stemra-portal
is being launched. The principle of this portal is that the
client occupies centre stage. The new portal is therefore
more explicit and visually more attractive with a lucid
complaints status and clear overviews of soundfiles,
live-performances, registered titles and catalogues.
Such a new portal was the wish of many rights owners.
Quality and speed of service and the distributionsImprovement of complaints departmentWe distribute a remuneration on approximately one and
a half million works. In about 13,000 cases of the one and
a half million (0.9%) we receive questions from rights
owners. The processing of a complaint can be a complicated
and lengthy process and is often difficult for rights owners
to follow. In 2011 we therefore adjusted the processes
around complaint processing. Through this we have reduced
the duration of complaint processing, improved the quality
of processing and made the complaints process clear. As
of 1 January 2012 complaint processing comes under one
department: the department Service Rights owners. This
department consists of account management, members
service, members administration and comments.
Post-distributionsTo increase the flow rate of the distributions, in 2011
we started with monthly trailing distributions, in short
‘post-distributions’. The amount that could not be distributed
in previous distributions, for example through lack of
information, can in this way be distributed more quickly.
This post-distribution process has in the meantime
been completely set in motion. At the beginning of 2012,
€ 5 million has already been distributed in the distribution
categories general rights, film and satellite.
Airplay ClaimTo detect and identify music in commercials we use various
methods, such as fingerprinting and cue sheets. In 2011 we
started with the development of the Buma Airplay Claim
website in order to reach an optimal level of identification.
ANNUAL REPORT 2011
All non-identified musical works in commercials are
entered on this website, so that everyone can listen to them
and rights owners can claim them.
CommitteesArbitration BoardRight holders with Buma/Stemra may invoke the dispute
resolution with complaints about decisions of the board and
management. A special arbitration board takes a decision.
The arbitration committee has three members appointed by
the Buma/Stemra General Assembly Meeting. The arbitration
commit tee is composed of an independent chairman (a lawyer
in the field of copyright), and two Buma/Stemra-right owners.
The dispute irresolution is open to all authors and music
publishers that are a member of Buma/Stemra. Thus, the
arbitration committee of Buma/Stemra is the appeal body
for a right owner with a specific complaint about a decision
by management and board which affected the owner
individually and directly in his or her interests. The decision
of the arbitration board is binding for all parties, unless the
court decides otherwise in a particular case. In 2010, the
arbitration committee ruled in two cases. No complaints
were submitted to the arbitration committee in 2011.
Standing Committee on Plagiarism (SCP)In 2011 two cases were submitted to the Standing Committee
on Plagiarism (SCP). In one case the complaint was well-
founded, and the other case was declared groundless. In
2011, on the recommendation of the members of the SCP,
the board of directors decided that in future the rulings
of the SCP would be published. The SCP offers a simple
solution in disputes about the origin and originality of
musical works. Currently the SCP consists of five
music ologists and two professors.
3. CoPyRighT in The DigiTAL AgeintroductionIn 2011 the already heated discussion about copyright in
the digi tal age became even more intense. This was very
noticeable in the media and in politics, as well as on the
Internet itself.
The playersOn the one side of the social debate is the IT and technology
sector (Internet service providers and large electronics
businesses), that want as much freedom as possible to
disseminate content on the Internet. They are supported
in this by organisations that devote themselves to spreading
free speech on the Internet. Standing opposite them are
authors and publishers, who wish to have a fair remuneration
for the use of their works. For the authors it is not about
blocking the use or the circulation of their work on the
Internet, quite the contrary. However, they do have the
right of a fair remuneration.
our standpointThe court can only take effective action if there is a statutory
ban on downloading from illegal sources. With that, it has
an instrument to force sites, which provide music without
composers and lyricists receiving a fair remuneration for
their work, to stop. Of all music that is downloaded in the
Netherlands, approximately 85% still comes from illegal
sources. We continue to emphasise the necessity of
combatting illegal content. Together with the stimulation
of business models with which regulated circulation of
content on the Internet is possible. In the meantime, we
have already provided 60 platforms with a licence,
including big names as iTunes, Spotify and YouTube.
The policies of the ministry of justiceCSs were at the centre of political attention in 2011. On
11 April the State Secretary sent the House his spearhead
letter, containing his ambitions for this Cabinet period.
Relevant points for us are:
• Greater confidence in copyright and the copyright organisations,
by quickly dealing with the proposed bill Supervision of CSs.
• Strengthened contractual position of authors and performing
artists compared to operators, through a proposed bill
Copyright Contracts.
• Promotion and protection of new business models on the Internet,
through a proposed bill to combat infringement facilitating
websites and a reconsideration of the Home Copy Exception.
• Support of European plans to facilitate digitising projects and
the conservation of cultural heritage and driving back the
territorial restrictions of copyright licences.
• Realisation of the fair-use exception in the copyright guideline.
In 2012 the following issues are on the political agenda:
• The proposed bill Supervision CSs. This proposal has already
received a lot of attention, partly due to the negative publicity
about Buma/Stemra. Part of the House wants to go even
further than the proposed bill, by imposing requirements on
the incomes of management and board of directors and with
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Buma/Stemra
supervision of the fees prior to publication.
• The proposed bill Copyright Contracts is officially prepared
and rests with the State Council for advice. In the course
of 2012 the proposal will be dealt with in the House.
Download ban or not?Many political parties expect that the use of illegal content
will automatically decrease if sufficient legal content is
provided. Furthermore, they regard a download ban as an
unnecessary and dangerous restriction of the freedom
of circulating information on the Internet. However, we
ascertain that despite the large legal supply of music, use
is still made of illegal providers. Competing with free of
charge is not a feasible proposition. After dealing with the
State Secretary’s spearhead letter it became clear that he
cannot yet count on a majority for a ban on downloading
from illegal sources. However, he holds on to his resolve
and in 2012 he will come with a proposed bill on that point.
home Copying SchemeThere is already a Home Copying Scheme to compensate
rights owners for home copying of material protected by
copyright. Even though the regulation is out-of-date on
many points, the agreements have not been revised since
2003. The political discussion about the future of the Home
Copying Scheme is still going on. In anticipation of a final
decision, the Stichting Thuiskopie (Foundation Homecopy)
has decided to earmark a portion of the funds collected
by the foundation. Consequently the income from the
Home Copying Scheme for Stemra is halved.
4. meDiAIn the past year we have been in the media a lot. Often in a
negative way. That does not discourage us from continuing
to inform the media as well and as completely as possible,
also in 2012. By dwelling on all the results that we have
booked, the negative and the positive, we are hoping to
be able to contribute to a more comprehensive and thus
a more positive image of our organisation.
5. inTeRnATionAL DeVeLoPmenTSeuropean commissionIntroductionNot just in the Netherlands, but also at European level
the future of copyright, the role of CSs and how they
operate is being discussed. Through a directive the Brussel
governance wants to organise transparency and super-
vision well, in all forms of collecting societies. In December
2011 there was an impact study into the consequences
of possible solutions. The European Commission (EC) is
expected to come with proposals, mid 2012. An important
part of the directive is the regulation of the enforcement
of copyright on music on the Internet. Incidentally, in 2011
the green book – with assessment and analysis – about
audio visual works was already published. This will certainly
have an influence on the discussion about the directive.
Abandoned worksThe EC has proposed a law which must make it possible
to digitalise books, articles, films and audio from which it is
not known who has the copyright. Organisations that want
to digitalise these works may do that if, after thorough
investigation, it emerges that the copyright holder cannot
be traced. This law will be dealt with in the European
Parliament in 2012.
Home Copy levyAfter a long discussion about the Home Copy levy, the EC
appointed a mediator in May 2011. The mediator is now
striving to reach a joint agreement with the manufacturers
of the carriers and the CSs.
Creative EuropeIn 2011 the EC announced that they will establish a European
fund for the creative industry. This fund will be known as
Creative Europe and is part of a proposal in the long term
budget for 2014-2020. It brings the current culture, media
and MEDIA Mundus-programs together and underpins the
cultural and creative sectors with a budget of € 1.8 billion –
an increase of 37%.
other international developmentsCannes-agreementOn 18 November 2011 publishers and overseas sister CSs
reached agreement on the Cannes-IV agreement. This
agreement regulates the percentages which overseas sister
CSs may deduct for Phono Mechanical Rights as a remuner-
ation for their administrative activities and as a distribution
to rights owners. The duration of the new agreement is
three years, ending on 31 December 2013.
direCtors’ rePort
ANNUAL REPORT 2011
Biem/CisacThe international umbrella organisation Biem/Cisac is
working hard on the Global Repertoire Database (GRD).
This project’s objective is to develop a comprehensive and
exclusive database for the recording, monitoring and
maintenance of the copyright data of all worldwide musical
works. On the initiative of EU-commissioner Neelie Kroes,
CSs, publishers and music users came together to explore
how a GRD for musical productions could be created and
put into service. The implementation and the use of the
GRD is expected to save costs and prevent duplication in
data processing.
European Sister CSsAs a result of developments in the music market, European
sister CSs are increasingly looking for joint ventures with
sister organisations. An example of this is ICE, the joint
venture between the English organisation PRS and the
Swedish organisation STIM in the area of documentation
of musical works. And there is Armonia, the joint venture
between sister organisations SGAE (Spain), SPA (Portugal),
SIAE (Italy) and SACEM (France), designed to issue European
licences for online use of local repertoire. We expect that
such joint partnerships will continue to increase In the
coming years.
6. FinAnCiAL ReSuLTS AnD mARKeT DeVeLoPmenTSTurnoverBy turnover we mean the income from the exploitation
of rights.
increase turnover BumaThe turnover of Buma rose in 2011 by € 2.6 million to
€ 142.9 million (in 2010 it was € 140.3 million). With the
exception of the categories of Hospitality Industry, Work-
places and Cable all categories have contributed to the
increase in turnover. Highlight is Radio & TV Performing
Rights: their turnover rose by € 1.6 million. This category,
with well over 36%, contributes the most to the turnover
of Buma.
Decrease turnover StemraLike the previous years, the turnover of Stemra has decreased
by € 3.5 million (nearly 10%) to € 32.1 million (in 2010 it
was € 35.7 million). The decrease is mainly in the categories
Phono Mechanical Rights Biem/Central Licensing (€ 4.1 million)
and Home Copy (€ 1.5 million). The first category, with a
turnover of € 12.5 million (39.1%), makes the most impor-
tant contribution to the turnover of Stemra. In the other
categories there is a slight increase in turnover. The most
important in this is Mechanical Rights Online Licensing
(€ 1.3 million) and Mechanical Rights Abroad (€ 0.6 million).
music marketWe are in the middle of a falling music market in the
Netherlands. The NVPI recently announced that in 2011
the Dutch consumer spent a total of € 180.2 million on
physical music products, especially CDs. That is 10.3% less
than in 2010. Spending on downloads rose to € 25 million.
However, physical carriers are still the most decisive factor
for the turnover. The NVPI estimates that the total turn-
over share of the digital market in the Netherlands –
downloads and streaming – at branch level is approximately
15%. Worldwide that share is 32%. In the United States it
is more than 50%. Furthermore, the NVPI announced that
the total purchase of music, films, television series and
games in the Netherlands in 2011 has decreased to
€ 875 million (1.4%).
Turnover per categoryRadio & TV and CableThe largest category, Radio & TV Performing Rights, pro-
vided a turnover at Buma of € 51.8 million (in 2010 it was
€ 50.2 million) and at Stemra a turnover of € 5.3 million
(in 2010 it was € 5.1 million). The total growth of € 1.8
million is from the increase in turnover of a number of
television companies and a number of new contractors.
The category Cable provided a turnover at Buma of € 11.9
million. This is a slight decrease compared to last year.
ReinforcementIn order to further reinforce the protection of rights for
audio visual productions, we are involved in negotiations
with the association RoDAP (Vereniging Rechtenoverleg
Distributie Audiovisuele Productions). Other CSs that
participate in this are Agicoa, Lira, Norma, Pictoright,
Sena and Vevam. The Association RoDAP is a partnership
of broadcasting companies and distributors focused on
the Netherlands, who are members of NLCable, plus
Tele2, KPN and Glashart. RoDAP wants to make one
arrangement with the CSs involved, for all forms of
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recording, publication and making available by the members
in the whole chain.To forestall legal procedures about
the complex publication issue, they will do this with an
agreement with economic basic assumptions. It concerns
the linear transfer of the broadcasting stations, missed
broadcasts and extra activities for a charge, such as video
on demand. The intended starting date for RoDAP of
1 January 2012 has not been achieved. It involves complicated
matters and complex interests – however, that does
not discourage the parties from carrying on the
negotiations in 2012.
LiveThe turnover in the category Live rose slightly to € 20.4
million (in 2010 it was € 19.9 million). This increase in
turnover is chiefly through the increase of the turnover
in the cinema sector. In 2011 there were fewer major live
performances in the Netherlands. The effects of the VAT
increase and the cutbacks in the cultural sector however,
were less than expected. Many productions were already
booked well in advance. We expect that the effects will
only be fully felt in 2012.
Hospitality Industry, Workplaces and Shops and storesDue to the joint venture with Sena, through the Service
Centre, we have achieved a newly generated turnover of
approximately € 2 million. However, due to other factors
the turnover, and the turnover of individual licences in
particular, is under pressure. The turnover in the category
Hospitality Industry decreased by nearly € 2 million to
€ 15.0 million. In the budget only a decrease of € 1 million
was taken into account. The larger decrease is mainly due
to the recession. Furthermore, the turnover in 2010 was
a one-off high due to a settlement covering several years.
The turnover at Workplaces has slightly decreased to
€ 17.6 million (in 2010 it was € 17.8 million). This decrease
is also a result of the recession. Through the expansion of
the points of sale of large chains of stores and the increase
in turnover through the joint venture with Sena by the
Service Centre, Shops and stores also still had a slight
growth. At Shops and stores the turnover has increased
to € 12.9 (in 2010 it was € 11.9 million).
OnlineOur turnover in the online segment has risen to € 3.3 million
(in 2010 it was € 1.3 million). This growth was largely due
to Stemra regaining the mandate for the licensing of the
Anglo-American repertoire for online. Furthermore, in 2011
we have approached the newly started music services very
actively. The volume of the online turnover is still limited,
so this might still fluctuate in the coming years through
non-recurring items.
Performing Rights online LicensingThrough regaining the mandate for the Anglo-American
repertoire we are again able to license the entire world
repertoire locally and we can serve the market better. The
increase in turnover from downloads is partly due to the
role that Buma has managed to acquire as music broker
for the rights of Sony Music for their European download
campaign. Via a pan-European licence we have been able
to arrange these rights for Sony Music. Thereby doubling
the turnover to € 1.5 million (in 2010 it was € 0.8 million).
mechanical online LicensingThe turnover in the category Mechanical Rights Online
Licensing tripled to € 1.8 million (in 2010 it was € 0.5
million). This is due to Stemra regaining the mandate
for the licensing of the Anglo-American repertoire
for online.
Licences with online servicesTo anticipate the speedy emergence of streaming and
download services, we have developed licence types that
are geared to these forms of music distribution and sales.
In the meantime licences have been arranged with a few
dozen music platforms. Thereby we have laid the foundation
for the online future in our licensing models.
Podcast discussionThe discussion about the rates for podcasts attracted a lot
of media attention. After the introduction of new rates a
major provider of podcasts was unhappy about the level
of the rates and the fact that it was put into operation
retro actively. The provider subsequently decided to remove
all its podcasts from the site. After positive consultations it
was agreed to move the introduction of the new rates to the
beginning of 2012. The agreement commenced 1 January.
direCtors’ rePort
ANNUAL REPORT 2011
Development podcast ratesAt the introduction of the podcast rates the rates were fixed
at € 240 per podcast per year, irrespective of the number
of times that it was downloaded. This rate was relatively
low, so that the podcast had the possibility to develop as
a medium. It is now clear this was successful. Through
the enormous success the experimental rate is no longer
realistic. Millions of podcasts are downloaded each year,
in which the provider gives away hours of music without
a fair remuneration going to the authors of the music.
FlexcoAt the annual meeting in May 2011 the proposals for a more
flexible regulation of the online rights of members was also
discussed. The proposal for the flexible online rights admin-
istration, the so-called Flexco-proposal, did obtain a majority,
but not the requisite two third majority which is necessary
in order to be able to change the statutes and thereby make
flexible rights administration possible.
AbroadThe turnover of Performing Rights Abroad rose to € 11.9
million (in 2010 it was € 10.5 million). The work of Dutch DJs,
jingle & tune makers, music in commercials and various hits
with the involvement of Dutch composers accounted for this
increase. The turnover of Mechanical Rights Abroad grew
to € 4.4 million (in 2010 it was € 3.8 million). This growth is
mainly due to higher income from France and Great Britain.
Phono Mechanical Rights Biem, Central Licensing and Special Licensing/Private LabelsIn the largest turnover category of Stemra – Phono
Mechanical Rights Biem and Central Licensing – the
turnover decreased significantly by € 4.1 million. This is
a decrease of nearly 25%. This is through the continuing
decrease of the sale of physical carriers. The turnover of
Special Licensing/ Private Labels remained approximately
the same as last year (€ 6.3 million).
impala/Stemra creates european Portal for offlinemechanical RightsImpala is a branch organisation for independent Music
producers in Europe. In 2011 Impala andStemra reached
an agreement to develop a Portal together for offline rights.
The aim of the Portal is to simplify the licensing of offline
Mechanical rights for the members of Impala.
Home Copy and Lending RightsThe turnover Home Copy/Lending Rights has decreased
to € 1.7 million (in 2010 it was € 3.2 million). This is through
a decrease of the income from the Home Copying Scheme,
which has more than halved: from € 2.9 million in 2010 to
€ 1.3 million in 2011. The cause of this is the political
discussion about the future of this scheme. Pending a final
decision, the Foundation Home Copy has decided to earmark
a portion of the funds collected by the Foundation and
thus this lowering the distributions.
Musi©opyAfter approval from the General Members Meeting in May we
took over the duties of Musi©opy. It has served the interests
of music publishers and authors in the area of the so-called
secondary use since 1995. Think of copyright aspects of song
texts and musical notations and the licensing of the re-use
of these works. Musi©opy had too little income and an
unacceptably high cost percentage. Thereby they could not
continue to exist as an independent professional organi-
sation. We have systems at our disposal by which the
administration can be done more efficient. Furthermore,
we have good contacts with groups of music users that
were difficult for Musi©opy to reach. With these activities
we can offer an extra service and better financial coverage.
For Stemra, 2011 was the first year in which they did the
exploitation of graphic reproduction rights. Through a delay
in the signing of the exploitation contracts, a start could
only be made with these activities in April 2011. This had
the necessary impact on the turnover development. In 2012
we expect to catch up on this.
DistributionOur main task is – on behalf of rights owners and affiliates –
the exploiting of their Performing Rights and Phono Mechan-
ical Rights and distributing to them what they are entitled to.
The realized turnover in a year differs from what we distribute
to rights owners in that same reporting year. Therefore there
is a great difference, in the financial accounting, between the
turnover in royalties that we have realized in the reporting
29
Buma/Stemra
year (and the amount reported in the financial statements)
and the amount which is distributed in the reporting year
to the rights owners. The distribution is namely the result
of the exploitation turnover which was realized in
previous years.
Distribution BumaIn 2011 Buma distributed € 114.1 million to members,
participants and foreign organisations (in 2010 it was
€ 114.0 million). Furthermore, € 9.6 was added to the Fund
for cultural and social purposes. In total this is a distribution
of € 125.5 million (in 2010 it was € 126.4 million). The decrease
is mainly due to lower allocations to the Funds for cultural
and social purposes of 8.5% in 2010 to 8% in 2011. The effect
of the increased turnover of Buma on the distribution is only
noticeable in 2012. In just the first couple of months of 2012
in the post-distributions general rights, film and satellite
€ 5 million more was distributed than in the same period
in 2011. Also the distribution Abroad in 2012 is nearly
€ 2.5 million higher than in 2011. These funds are accounted
for in the royalties to be distributed at the end of 2011.
Distribution StemraStemra distributed € 29.1 million in 2011 to members,
partici pants and foreign organisations (in 2010 it was
€ 33.7 million). This decrease is due to the drop of the turn-
over as a result of the continuing decrease of the sale of
physical music carriers and the political discussion about
the Home Copying Scheme. Furthermore, partly through
the absence of a ban on downloading from illegal sources,
the online turnover lags behind. The amount of royalties
to be distributed is in line with 2010.
Fund social and cultural purposesIntroductionBefore Buma distributes the funds received and after pro-
cessing of the profits and losses, a portion is allocated to
the fund for Social and Cultural purposes, the SoCu Fund.
The allocation for 2011 is fixed at 8% (in 2010 it was 8.5%)
of the amount available for distribution to royalties in the
Netherlands. The allocation is € 9.6 million (in 2010 it was
€ 10.2 million). The most important use of this fund is the
subsidy to the Foundation Buma Cultuur and the Foundation
Social Fund Buma, the surcharge Serious and the surcharge
Online and the Pension Scheme for authors and publishers.
The allocations are set out in more detail in the notes to
the financial statement. In this section we go into
the activities of the Foundation Buma Cultuur.
Buma CultuurGrowth of eventsFor Buma Cultuur 2011 was dominated by growth. Not of
ourselves, but of the events which we organize. One of our
most important objectives from the policy plan 2009-2012 is
that at the end of 2012 the Dutch consumer must be able to
establish a link between the promotion of Dutch copyright
and Buma (Cultuur). The focus in 2011 was therefore chiefly
on production. The number of events had to noticeably
increase. Through starting up new events and dealing even
more professionally with existing events, virtually nobody
could ignore us anymore. With as a result: the growth of all
the events of Buma Cultuur and of all the events in which
Buma Cultuur was involved. At all of these events the
emphasis was entirely on our main task: the promotion
of Dutch copyright.
A lot of media attentionPractically every month Buma Cultuur was active some-
where in the Netherlands and we received attention from
national media. In 2011 we organized four musician days:
in Nijmegen, Zwolle, Eindhoven and Utrecht. Also our
contribution to the sold out Eurosonic Noorderslag in
January 2011 generated a lot of attention. On the stage of
Eurosonic and Noorderslag, well over 100 Dutch bands got
a place– the Netherlands was in 2011 namely the focus
country. Buma Rotterdam Beats on 17, 18 and 19 November
2011, was organised for the second time. And here too the
event gained a foothold on Rotterdam ground. With 600
visitors and big international seminar participants, the
event took a considerable step forward.
Worldwide trend-setting dance industry conferenceThe Amsterdam Dance Event, initiated by us, was once more
a success in 2011 and is becoming the most important dance
industry conference in the world. The event was sold out
weeks in advance and attracted in addition to 3,000 profes-
sionals also well over 130,000 festival visitors.
our other eventsThe second edition of Buma NL had no shortage of interest.
For this a substantial investment was made. Results were
a TV broadcast on Nederland 1, a doubling of the number
of visitors, wide media attention and a growing relevance
direCtors’ rePort
ANNUAL REPORT 2011
for professionals. This year we awarded the Gouden and
Zilveren Harpen for the 49th time during the Buma Harpen
Gala 2011, once again broadcast live on Netherlands 3.
Winners of the Buma Gouden Harpen 2011 were: Nick &
Simon, Tony Berk, VanVelzen and Kane. The Buma Zilveren
Harpen went to Caro Emerald, Frans Duits and Sander
van Doorn. In addition Caro Emerald won the prize for the
Best Dutch song 2010 with ‘A Night Like This’. The Buma
Export Prijs 2011 went once again to André Rieu.
Moving the programming of the Holland Festival was a
good decision for Toonzetters. As the event was limited
to one evening – the production was slightly cheaper, the
media attention was greater and the house was, for the
first time, virtually full.The Jazz day has come through the
move to Rotterdam well. More and younger public, higher
ratings and higher income. The joint ventures with North
Sea Jazz also bore fruit. Professionals who were present
could not ignore the Dutch talent.
New: Buma Music in MotionA new event in 2011 was Buma Music in Motion. The atten-
dance was reasonable, but it could be better. The event is
designed to gain more attention within the multimedia
genre for film music, for music in games and RTV music.
With this, the first step has been taken towards a solid
event within the multimedia music.
Profit and loss accountBumaThe operating result of Buma amounts to € 16.9 million
negative (in 2010 it was € 13.5 million negative). This
decrease in the operating result by € 3.4 million is in particular
the result of an adjustment in the allocation system of the
costs between Buma and Stemra. From 2011 the joint costs
of Buma and Stemra are shared on the basis of 75% and
25% respectively. Costs which are directly allocable to
a specific organisation are for 100% accounted for in that
entity. In 2010 individual percentages per cost category
were still employed, whereby Stemra on average was more
heavily burdened. Adjustment of the distribution of costs
has led to a lower charge compared to 2010 of approximately
€ 2.6 million.
increased costsThe total operating costs for Buma in the financial year
2011 amounted to € 20.1 million (in 2010 it was € 16.9 million).
In addition to the above mentioned adjustment of the
allocation system of the Buma and Stemra costs, the
increase of the costs by 19% is chiefly caused by:
• expanded activities of Service Centre. This leads to higher costs
service bureaus of € 0.8 million and a reduction of personnel
expenses of Buma of € 0.3 million because the Service Centre
has taken over part of the Buma-personnel;
• higher personnel expenses of € 0.4 million through indexation
of the salaries and a few non-recurring items;
• higher consultancy fees of € 0.5 million through requisite hiring
of external lawyers and the renegotiation of the lease agreement;
• a decrease of the outsourcings costs by € 0.7 million through
transferring the outsourced back office activities from Prague
to India.
In 2011 a result of € 9.1 million was withdrawn from the
royalties to be distributed (in 2010 it was € 8.3 million).
In the withdrawal from the royalties to be distributed 2010
the last part of the negative course result of € 3.3 million
was also processed.
StemraThe result of € 0.1 million in 2011 has been added to the
royalties to be distributed. Compared with 2010, when
there was a withdrawal from the royalties to be distributed
of € 1.0 million, that is an improvement of € 1.1 million. In
2011 the operating loss of Stemra was € 1.9 million (in 2010
it was € 4.5 million). This is an improvement of the operating
result of € 2.6 million compared to 2010. This improvement
of the operating result is largely attributed to the new
allocation system of costs between Buma and Stemra.
Other fluctuations in costs, as a result of the recharge by
Buma, are in line with developments at Buma. The with-
drawal of 2010 also contains the remaining part of the
investment loss of 2008 of € 1.3 million.
investmentsIntroduction
Just as every year our profit and loss account is strongly
influenced by the financial result. This figure represents
the revenue from investments.
Decision to investIn the nineties, the board of directors decided to invest
available funds under conditions. Funds from the exploita-
tion of rights cannot immediately be distributed to rights
31
Buma/Stemra
owners. A lot of time is needed to gather all the data and to
reach a correct distribution. This does not just involve the
data of rights owners and affiliates, but also that of the
users of our rights. Before we are certain about the exact
use of musical works by licensees, we are often months
further. Especially if it involves users from abroad. In the
nineties it became clear that it was more prudent – under
conditions – to invest received funds that were waiting for
distribution, rather than paying them into a mediocre yield
deposit account. That applied then. And still does. We have
drawn up an investment policy for this, whereby risks are
limited as much as possible. As much as possible, because
investing is never without risk.
Valuation of investmentsShares and bonds are valued on the balance sheet against
the market value on the balance sheet date. The results
arising from this are processed in the revaluation reserve.
As far as the balance of the revaluation reserve allows, as
well as the received dividend on shares and (since 2006)
as well as the interest received on the fixed rate portfolio, a
so-called standard return can also be entered in the financial
result. This methodology fits in with our objective that over
the years, the sound investment results on shares and fixed
interest securities show as constant as possible course in
the profit and loss account. The result of the investments is
entered in the profit and loss account of Buma and Stemra
under the heading financial result.
Investment policyThe funds that are available for investment are placed with
the Foundation Buma Stemra Equity (BSA) and the Foundation
Buma Stemra Bond Funds (BSO). The Boards of Buma and
Stemra together form the constituted Board. The constituted
Board based its investment policy on an Asset Liability
Management comparative study (hereafter ALM). Hereby,
the investment policy is determined by means of an assess-
ment of the interdependence of the rights and commitments
of the organistion.
Two sidesThe objective of the investment policy has two sides. One
side is, to retain the value of the collected licensing income
until the moment of distribution. The portfolio for this
must be sufficiently liquid and be conservatively invested.
On the other side is the striving for an investment revenue
which – at least for a part – covers the operational costs of
the association. For this the portfolio must also generate
sufficient return and make effective use of a previously
determined risk budget. On the basis of this objective the
following ALM-norm was established: 65% fixed interest
securities and 35% marketable securities.
investment committeeBuma/Stemra has an investment committee to draw up an
investment plan, select asset managers and monitor and
assess the investment results. A range for the strategic
management scope, based on the ALM-norm, has been
determined by the management boards. The investment
committee is authorized to take decisions within these
SAA-ranges. The allocations are laid down in an investment
plan that is drawn up annually.
Constitution of the committeeThe members of the investment committee are appointed
by the management boards. The investment committee
elects a chairman and a secretary who form the executive
board. As part of the investment committee, the executive
board is responsible for the operational implementation,
steering of administrators and advisers and the instruc-
tions for transactions. The executive board is assisted by
a fiduciary advisor and periodically reports to the invest-
ment committee about the results and transactions of
BSO and BSA.
Law supervision CSsThe Proposed Bill Supervision Collecting Societies Copyright
and Neighbouring Rights will, in all probability, immensely
limit our possibilities to invest. The plenary discussion of
the proposed bill was on 14 February 2012. It is clear that
our – previously approved by the College of Supervision–
prudent investment policy has benefited the rights owners.
Over the past twelve years that yielded cumulatively nearly
€ 42 million more than if it had not been invested. Thanks
to those investment results the actual cost deductions in
those years continued to be limited to a few per cent of the
annual amount distributed to rights owners. The proposed
statutory restrictions of the investment possibilities, such
as expressed in the new Law Supervision, can push down
the income of music authors the coming years by 5%
to 10%. The future investment possibilities have not yet
been drawn up. It is clear that a transition period will be
direCtors’ rePort
ANNUAL REPORT 2011
needed. In the investment plan 2012 we are, for the first
time, going to anticipate the expected curtailment.
Financial result BumaThe financial result of Buma decreased in 2011 by € 0.7
million to € 7.8 million This decrease of 8% of the financial
result is mainly due to the economic recession and the
turmoil in the financial markets.The decrease of the financial
result was tempered by Stemra’s current account ratio with
Buma being redeemed at the end of 2010 and through there
being another distribution of the financial result BSO/BSA
between Buma and Stemra. In 2011 we used the percentages
79.9%/21.1% for the distribution (in 2010 it was 63.5%/36.5%).
This difference of 16.4% – for Buma an increase – is the
result of the sale of participations by Stemra to the value
of € 69.5 million:
• redemption of loan in current account of Buma to Stemra
of € 55.7 million,
• redemption of loan in current account with BSO and BSA
of € 13.3 million,
• expansion of liquid assets of Stemra of € 0.5 million.
The interest received on bonds rose in 2011 by € 1.0 million.
The received dividend decreased by contrast by € 0.2 million.
On balance this led to an increase of € 0.8 million. In total
there is a decrease of € 1.0 million. This is the result
of the decrease of the standard return through the low
interest rate at the end of 2011 and the decrease of other
financial profits and losses by € 0.5 million.
Financial result StemraThe financial result of Stemra decreased in 2011 to € 2.0
million. This decrease of 58% is partly due to the economic
recession, but is reinforced by the adjustment in the distri-
bution of the financial result BSO/BSA between Buma and
Stemra. This adjusted distribution has had a lot of impact
on the standard return, that decreased by € 1.2 million. The
received interest and dividends decreased by respectively
€ 0.2 million and € 1.2 million.
Balance sheetsFor comprehensive notes on the balance sheets of Buma
and Stemra we refer you to the financial statements of 2011
which you can find further on. The most important fluctua-
tions from the financial year 2011 are explained in the
notes on the balance sheets.
7. A LooK AheAD To 2012Turnover and resultIn the notes on the financial statements we have entered
the budgets for 2012. Based on the current market condi-
tions we expect a slight increase in turnover for Buma. At
Stemra, however, we see a further decrease as inevitable.
increase in turnover at BumaThe increase of the budgeted turnover at Buma with
€ 3.1 million compared to the realization 2011 comes
mostly from the categories Cable, Hospitality Industry and
Shops and stores. At Hospitality Industry and Shops and
stores an increase in the budget is factored in. The current
signals from the market however, suggest that here a
downward adjustment must take place, in spite of intensive
marketing deployed by the Service Centre. In 2012 we
expect a negative result for Buma from the exploitation
result exclusive normative yield of € 11.4 million (in 2011 it
was € 11.1 million). This budgeted deterioration is due to a
lower expected income from interest and dividends (minus
€ 0.4 million).
Decrease turnover StemraThe decrease of the budgeted turnover at Stemra with
€ 4.6 million is mainly from the category Phono Mechanical
Rights Biem/Central Licensing. This is in line with the trend
of the past years. Furthermore, we expect that the turnover
Home Copy will almost completely disappear as a result of
political discussion. In 2012 we expect a negative result for
Stemra from the exploitation result exclusive standard
return of € 1.1 million (in 2011 it was a negative result of
€ 0.5 million). This budgeted decrease is on the one hand
caused by the expected drop in revenue as a result of an
expected lower administration costs deduction and on the
other hand an expected decrease of interest and dividends
and an increase in the costs.
Future StemraStemra has suffered from loss for some time. And that means
that measures are necessary. Stopping with the exploitation
of Mechanical Rights would be the most drastic measure.
33
Buma/Stemra
There are also other solutions. Thus, in 2011 joint ventures
with large European sister CSs abroad were intensively
examined. Sharing one back office together for administrative
processes such as invoicing and the processing and match-
ing of user data, would enable more efficient work. In 2012
we will take concrete decisions about this.
unclear legislationIn 2011 we had expected that the State Secretary would
provide clarity about the regulations about supervision of
CSs. This clarity has unfortunately failed to materialize.
We assume that in 2012 there will be more clarity about
the way in which the State Secretary will formulate his
proposed bill about the supervision of collecting societies.
Also the copyright contract is still on the agenda.
Fair chanceThe outcome of this new legislation is decisive for the con-
tinuation of Stemra. A download ban, in combination with
a vigorous enforcement policy, gives the legal music carrier
a fairer chance. That also means higher sales and with that
higher turnovers for Stemra.Though it does not alter the
fact that we are looking at international joint ventures in
order to better be able to carry Mechanical Rights. Other
European sister CSs are also looking at this. They likewise
are faced with complex administrative reforms which they
must implement to achieve good processing. Platforms
such as iTunes, Spotify and YouTube monthly supply
enormous amounts of user data. This must all be processed
by an administrative system. Together with sister CSs
abroad it can take place much more efficiently.
8. ConCLuSionWe have received a lot of negative criticism in 2011. We
have learnt from it. Also in 2012 we will show that we
are an organistion that can and wíll listen. An organistion
which does everything it can to be transparent. Which will
show that we are in earnest– for example, by starting intensive
innovations. An organisation where, each day anew, nearly
200 co-workers do their utmost to provide the best possible
service. We thank everyone who enables us to do our work
of making sure that all rights owners and affiliates receive
the distribution destined for them. And we thank our
co-workers, who have fully dedicated themselves in 2011
to music authors, music publishers and music users. We
hope that in 2012 we can once more clearly show politics,
society and the music world that Buma/Stemra is there
for all rights owners and affiliates.
Hein van der ReeExecutive chairman
Hoofddorp, 4 April 2012
direCtors’ rePort
ANNUAL REPORT 2011
35
Buma/Stemra
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Buma Financial statements 2011
Buma balance sheet as at 31 December 2011After appropriation of the result (x € 1,000)
31 December 2011 31 December 2010 *
assets
Fixed assets
Intangible fixed assets (1) - -
Tangible fixed assets (2) 501 504
Financial fixed assets (3) 207,262 202,846
207,763 203,350
Current assets
Accounts receivable (4) 11,830 8,151
Other receivables (5) 2,732 2,619
Taxes and social security contributions 431 343
Prepayments (6) 10,697 12,261
Cash and cash equivalents (7) 28,582 35,857
54,272 59,231
262,035 262,581
liabilities
Reserves
Continuity reserve (8) 1,855 1,855
Appropriated reserve (9) - -
Revaluation reserve for financial fixed assets (10) 6,154 10,796
8,009 12,651
Provisions
Provisions (11) 9,531 11,174
Long term liabilities
Fund for cultural and social purposes (12) 15,023 17,168
Current liabilities
Royalties to be distributed (13) 170,504 162,211
Accounts payable 4,519 2,948
Other liabilities (14) 47,612 49,173
Taxes and social security contributions 325 405
Other payables and deferred income (15) 6,512 6,851
229,472 221,588
262,035 262,581
* Adjusted for comparison purposes
buma balaNCe sheet
ANNUAL REPORT 2011
Buma profit and loss account for the year ended 31 December 2011(x € 1,000)
2011 2010
income
Administrative costs 1,838 2,151
Entrance fees and annual allowances 617 604
Other income 696 602
3,151 3,357
expenses
Personnel expenses (17) 10,085 8,151
Office and accommodation costs 1,438 1,141
Depreciation and amortisation 368 580
Other expenses (18) 8,169 7,047
20,060 16,919
Operating result -16,909 -13,562
Financial result (20) 7,817 8,496
Result from ordinary activities -9,092 -5,066
Exceptional income - 512
Exceptional expenses - -512
result -9,092 -5,066
result appropriation
Result allocated to appropriated reserve - 3,253
Result deducted from royalties to be distributed -9,092 -8,319
buma ProFit aNd loss aCCouNt 39
Buma/Stemra
Buma cash flow statement for the year ended 31 December 2011(x € 1,000)
2011 2010 *
Cash flow from turnover and distribution (13)
Turnover 142,948 140,346
Distribution -125,563 -126,352
17,385 13,994
Cash flow from funds
Deductions in favour of funds (13) 9,581 10,212
Payments from funds (12) -11,726 -10,601
-2,145 -389
Cash flow from operating activities
Administrative costs charged (13) 1,838 2,151
Other income 1,312 1,206
Interest and dividends 5,384 5,264
8,534 8,621
Total expenses -20,060 -16,919
Correction for depreciation and amortisation 368 581
-19,692 -16,338
Changes in continuity reserve - -512
Changes in provisions (11) -1,643 -1,101
Changes in other receivables -1,897 43,312¹
Changes in other liabilities -409 1,460
-3,949 43,159
-15,107 35,442
Cash flow from direct investment activities
Investments in tangible fixed assets -365 -240
-365 -240
Cash flow from indirect investment activities
Purchase of securities -123,727 -84,670¹
Repayments/sales proceeds 116,684 45,511
-7,043 -39,159
Net Cash flow -7,275 9,648
Cash and cash equivalents as per 1 January 35,857 26,209
Cash and cash equivalents as per 31 December 28,582 35,857
Changes in cash and cash equivalents -7,275 9,648
¹ This concerns the repayment of the loan in current account of Buma to Stemra and investments BSO/BSA at the end of 2010. For more information we refer to the notes of the financial statements 2010.
* Adjusted for comparison purposes
buma Cash Flow statemeNt
ANNUAL REPORT 2011
geneRAL
Buma Association’s objectivesVereniging Buma (Buma Association) its registered office
is in Amstelveen. The Association aims to promote both
the material and immaterial interests of authors and music
publishers, with its ensuing activities taking place on a
non-profit basis. Vereniging Buma is designated by law
to represent the aforementioned right owners.
Principles for the valuation of assets and liabilities and determination of the resultThe principles adopted for the valuation of assets and
liabilities and determination of the result are based on
historical costs unless otherwise explained.
If not stated otherwise, assets and liabilities are stated at
face value. Income and expenses are allocated to the period
to which they apply.
The Voi©e certification criteria were taken into account in
preparing the financial statement. As a result of these criteria
for Collective Right Managements Organisations additional
information was added and the annual returns of 2010 were
reclassified for comparison (to the figures of 2011).
Accounting principles for the translation of foreign currencyTransactions denominated in foreign currency are translated
to euros at the applicable exchange rate on the transaction
date. Monetary assets and liabilities denominated in foreign
currency are translated to euros at the exchange rate appli-
cable on balance sheet date. Exchange rate differences are
taken to the profit and loss account. Non-monetary assets
and liabilities denominated in foreign currency that are
valued on the basis of historical costs are translated at the
applicable exchange rate on the transaction date.
Principles of consolidationIn view of their transparent structure, Stichting Buma/
Stemra Obligatiefonds and Stichting Buma/Stemra
Aandelenfonds are included in the Buma financial
statements by means of proportional consolidation.
Assets and liabilities, as well as income and expenses,
are included in proportion to the participating interest.
On the basis of the information provided in the notes,
no separate financial statements for Vereniging Buma
are included.
Change in accounting systemUntil 2011, the valuation of the provision SFB annual
allowance scheme was based on non-actuarial principles.
In 2011, the valuation is adjusted and determination of
the provision SFB annual allowance is based on actuarial
principles. This change has been made in order to reflect
to current developments in the field of financial reporting.
As a result of the change € 206,000 of this flowed back to
the Fund for social and cultural purposes. The change has
no effect on the result and financial position of Buma.
Given the limited impact of the change, the comparative
figures on the balance sheet and profit and loss account
of the previous year are not adapted to the new system.
Deviations from Bw2 Title 9The important deviations from BW2 Title 9 - The Civil Code -
for the valuation of assets and liabilities and determination
of results are:
Application of the standard return on investments Price gains/losses arising from the valuation of securities at
market value are not directly taken to the trading account,
but are first included in the revaluation reserve for finan-
cial fixed assets (hereinafter: ‘revaluation reserve’). If the
position of the revaluation reserve is sufficient at the end
of the year, a so-called standard return can be recognised
in the financial results.
According to the Guidelines for Annual Reporting (Richtlijnen
voor de Jaarverslaggeving) the abovementioned trading
results should be recognised directly in the profit and loss
account. Buma Stemra applies the methodology to account
for a consistent development of the financial results in the
profit and loss account and to align the financial result
with the long-term objective of the investment strategy.
Consolidation of Buma CultuurAmong the legal requirements and with the current design
of the governance structure of foundation Buma Culture
(hereafter Buma Cultuur) it is possible that Buma Cultuur
(including foundations Amsterdam Dance Event and Buma
Rotterdam Beats) can be seen as part of the consolidation
scope of Buma. This would mean that the figures of Buma
Cultuur should be integrally consolidated in the financial
statements of Buma. In the current situation consolidation
is not applied, but Buma Cultuur is treated as a related party
whereby transactions with Buma, and more specifically with
the fund for cultural and social purposes, are explained.
Buma considers that, given the very different activities,
consolidation of Buma Cultuur in the financial statements
Notes to the buma balaNCe sheet aNd ProFit aNd loss aCCouNt
41
Buma/Stemra
Notes to the buma balaNCe sheet aNd ProFit aNd loss aCCouNt
does not benefit the legally required insight into the
accounts of Buma as a collective right management
organisation.
intangible fixed assetsThe intangible assets concern the expenses for the new
business information system to support the primary business
processes. These are valued at historical cost less cumulative
investment expenses or amortisation. These investments
are charged to the profit and loss account over a period of
three years.
Tangible fixed assetsThe valuation of tangible fixed assets takes place on the
basis of historical cost less cumulative depreciation.
Depreciation is calculated as a percentage of the purchase
price according to the straight-line method on the basis
of the expected useful life.
The following expected useful life terms are used:
• Hardware/Computer equipment 3 years
• Other operating assets 3 - 7 years
Accounts receivableAccounts receivable are stated at nominal value less a
provision for bad debts.
Financial fixed assets
The securities included under financial fixed assets are
listed shares, bond funds, and (convertible) bonds. Securities
are stated at market value as at balance sheet date.
Revaluation reserve for financial fixed assets Price gains/losses arising from the valuation of securities at
market price are not directly taken to the trading account,
but are first included in the revaluation reserve for financial
fixed assets (hereinafter: ‘revaluation reserve’). To the
extent that the revaluation reserve is insufficient, the
deficit is charged to the result.
Each year, the size of the revaluation reserve needed to
absorb price fluctuations is determined by the Board in
consultation with its asset managers. If the revaluation
reserve is larger than deemed necessary, this surplus is
eligible for addition to the royalties to be distributed.
Financial result and standard returnDividends are accounted for in the period in which they
are made payable; interest income is accounted for in the
period to which it relates. Insofar as the balance of the
revaluation reserve, less a possible appropriate reserve for
(un)realised gains or losses arising from changes in market
prices, leaves room for this, a ‘standard return’ is included
in the financial result, in addition to any receivable share
dividend and interest on bond funds. In the calculation of
the standard return, the dividend and interest already paid
out are taken into account, and only the difference between
the dividend/interest received and the standard return is
settled with the revaluation reserve.
The standard return is calculated as a percentage of the
average value of the shares and bond funds over the financial
year, and comprises the effective return on 5-year euro
government bonds at the end of the financial year plus a
risk mark-up for shares. The difference between the standard
return and the dividend received on shares or interest
received on bond funds is withdrawn from the revaluation
reserve, if possible.
Continuity reserve
The continuity reserve’s aims include guaranteeing the
continuity of the work. It also serves to fulfil obligations
in respect of third parties, in particular with regard to distri-
bution of the royalties yet to be distributed in accordance
with the financial statements. This reserve furthermore
serves to level out unwanted fluctuations in the amounts
available for distribution, resulting, among other things,
from domestic and international pressure on turnover,
as well as continuing changes in the distribution of rights.
Appropriated reservesAppropriated reserves are the parts of reserves that
manage ment has set aside for a special purpose. In this
case, it concerns the appropriated reserve for (un)realised
gains/losses arising from changes in market prices. For
more detailed information on this appropriated reserve,
please refer to the notes to the balance sheet.
ProvisionsProvisions are measured at either the nominal value of
the estimated expenditure required to settle liabilities
and losses, or the present value of that expenditure.
A provision is mentioned in the balance sheet when there is:
• a legal or constructive obligation as a result of a past event,
and
• of which a reliable estimate can be made, and
• it is probable a cash outflow is necessary to settle the obligation.
ANNUAL REPORT 2011
The long-service awards provision is a provision for future
long-service awards. The provision is the present value of
future benefits to be paid for long-service awards. The
calculation is based on commitments made, likelihood
to stay and age.
Fund for cultural and social purposesFor the benefit of this fund, in accordance with Article 29
note 3 of the Articles of Association, each year a percentage
defined by the Board on the recommendation of the board
of directors, with a maximum of 10%, is deducted from the
Dutch royalties available for distribution.
The amounts deducted are reserved by the board for
payments to institutions or organisations whose purpose
is to represent the idealistic or material interests of
composers, lyricists and music publishers, or who
otherwise promote Dutch music. The fund for cultural and
social purposes is classified as liability, because the fund
is never available to the organisation.
Reservations royalties to be distributedIn the process of distribution three types of reservations are
made. First of all reservations are created for the event that
insufficient information is available in order to distribute.
For example, the lack of data of the right owners, copyright
information and the missing of so-called cuesheets for
movies, shows or commercials. Secondly, reservations are
made for works which the cumulative earnings per work
have not yet achieved the lower limit for distribution. These
funds are segregated until this information is available or
the lower limit has been reached and the money can be
distributed in the post-distribution.
Finally, a reservation is made for complaints relating to
the distribution, this in order to the indemnification that
Buma provides to the users of music. This reservation is
determined by a percentage of the funds per distribution
based on the historical course of the amount paid on
complaints per distribution category. The percentage of
reservation for these complaints is usually between 0
and 2%.
In addition, works for which there is a so-called double
claims (two owners claim the same work) are reserved
until this situation is resolved mutually. These amounts are
also recognised in amount of royalties to be distributed.
Except the so-called double claims, all reservations are
released after a maximum of 3 years. This in accordance
to the certified criteria. In addition, a longer reservation
period is used for amounts that Buma has received from
sister organisations but for which no information is
available to do a proper distribution and with regard to
monies set aside for claims in the past.
Determination of the resultIncome and expenses are accounted for in the year to
which they apply. The result is determined by calculating
the difference between the balance of realised income and
expenditure and the financial result for the year. The
balance of the profit and loss account is allocated/deducted
from the royalties to be distributed and/or the reserves by
means of profit appropriation.
Pension plansBuma has made a pension scheme arrangement for its
employees where pension benefits are based on average
salary. The plan is administered by the Foundation Sector
pension fund for the media PNO. The premiums due for
the financial year are recognised as expenses. Premiums
that are not paid at balance sheet date are recognised as
a liability. Since these liabilities have a short term nature,
they are stated at their nominal value. The risks of salary
developments, price indexation, investment returns on the
fund assets might possible lead to future changes in annual
contributions to the pension fund. These risks are not
reflected in a balance sheet provision.
In the event of a shortfall in the sector pension fund,
Buma has no obligation to pay additional contributions
other than higher future premiums. The coverage ratio of
the Foundation Sector pension fund for the media PNO
for the end of December 2011 amounted to 90.7%.
Turnover
In the financial statements, the turnover in royalties is
added to the royalties to be distributed and presented in
the cashflow statement. Buma includes the exploitation of
performing rights in turnover, insofar as these relate to the
financial year, can be determined in a reliable manner, and
there is reasonable certainty that the revenue is collectible.
TaxWith regard to Buma, the Dutch tax authorities stipulated
in an agreement dated 6 November 2001, determining the
legal relationship between the parties, that Vereniging
Buma is liable to pay corporation tax. This agreement was
extended at the end of 2008 for a period of three years, and
is valid until 31 December 2011. Foreign withholding tax
43
Buma/Stemra
Notes to the buma balaNCe sheet aNd ProFit aNd loss aCCouNt
available for set-off and Dutch dividend tax may be
deducted from the tax due by virtue of this agreement
determining the legal relationship between parties. A
tax item is only included in the financial statements if
corporation tax is still owed after deduction of the foreign
withholding tax available for set-off.
Accounting principles for cash flow statementThe cash flow statement is drawn up using the indirect
method. Exchange rate differences, like all other movements,
are eliminated for so far they had not let to a cash flow. The
term cash and cash equivalents is used in the balance sheet
in the same way as in the cash flow statement.
use of estimatesDrawing up the financial statements requires management
to form opinions and make estimates and assumptions that
influence the application of principles and the reported
value of assets and liabilities, and of income and expenses.
The estimates and the associated assumptions are based
on past experience and various other factors that are
considered reasonable in view of the circumstances.
The outcome forms the basis for the opinion on the carrying
value of assets and liabilities that does not emerge clearly
from other sources. The actual results may differ from
these estimates.
ANNUAL REPORT 2011
Notes to the buma balaNCe sheet as Per 31 deCember 2011
(1) intangible fixed assetsThe changes in the intangible fixed assets can be specified as follows (x € 1,000)
Business information system
Actual cost as at 1 January 2011 6,958
Accumulated amortisation -6,958
Carrying amount -
Changes in carrying amount:
Investments -
Amortisation -
-
Actual costs as at 31 December 2011 6,958
Accumulated amortisation -6,958
Carrying amount -
Amortisation in number of years on average: 3
(2) Tangible fixed assetsThe changes in the tangible fixed assets can be specified as follows: (x € 1,000)
hardware/
Computer-
equipment
other opera-
ting assets
Total
Actual costs as at 1 January 2011 3,292 5,296 8,588
Accumulated depreciation -2,878 -5,206 -8,084
Carrying amount 414 90 504
Changes in carrying amount:
Investments 285 80 365
Disposals -73 - -73
Depreciation -331 -37 -368
Depreciation impairment 73 - 73
-46 43 -3
Actual cost as at 31 December 2011 3,504 5,376 8,880
Accumulated depreciation -3,136 -5,243 -8,379
Carrying amount 368 133 501
Depreciation in number of years on average 3 7
45
Buma/Stemra
Notes to the buma balaNCe sheet as Per 31 deCember 2011
Securities and bonds of Vereniging Buma are valued at
market value. Valuation differences on bonds and shares
are charged or credited to the revaluation reserve for
financial fixed assets.
Buma’s securities and bonds have been placed in Stichting
Buma/Stemra Obligatiefonds and Stichting Buma/Stemra
Aandelenfonds. The foundations are proportionally consoli-
dated in financial statements of Buma and Stemra at an
average percentage of respectively 79.9% and 20.1%
(2010: 79.9% en 20.1%).The above mentioned amounts
are the proportional share of the total amount as shown
in the fully-combined balance sheet of Stichting Buma/
Stemra Obligatiefonds (BSO) and Stichting Buma/Stemra
Aandelenfonds. The main movements in the fixed
income securities concern in particular the conversion
of (government) bond funds to bonds in order to minimise
the risks in the Eurozone countries.
(3) Financial fixed assets The fair value of the portfolio at the end of 2011 is € 207,3 million and it can be specified as follows:
2011 2010
Fixed income securities 160,867 78% 160,494 79%
Equity funds 46,395 22% 42,353 21%
207,262 100% 202,847 100%
The movements of the individual items can be displayed as follows (x € 1.000):
Fixed
income
securities
equity
funds
Total
Balance as at 1 Januari 2011 160,494 42,353 202,847
Acquisitions 116,288 7,438 123,726
Repayments / Sales proceeds -116,513 -170 -116,683
Price movements 598 -3,226 -2,628
Balance as per 31 December 160,867 46,395 207,262
ANNUAL REPORT 2011
The return (including price changes and excluding the
standard return) in 2011 from the invested funds within
Stichting Buma / Stemra Obligatiefonds and Stichting
Buma/Stemra aandelenfonds is 1.3% (2010: 4.8%). The
economic recession and the ensuing turmoil in financial
markets has led to lower return in 2011.
(4) Accounts receivableThe account sreceivable balance at year end consists of
accounts receivable which are collected by Buma and
debtors of which the collection takes place by the Service
centre. The increase in the accounts receivable balance
is primarily caused by a difference in timing of billing.
The fully-combined balance sheet of Stichting Buma/Stemra obligatiefonds (BSo) and Stichting Buma/Stemra Aandelenfonds (BSA) can be represented in condensed form as follows:(x € 1,000)
31 December 2011 31 December 2010
assets
Fixed assets
Financial fixed assets 259,535 254,006
Current assets
Receivables 2,143 1,619
Cash and cash equivalents 11,748 14,204
273,426 269,829
liabilities
Participants’ account 273,018 269,395
Current liabilities
Accounts payable 408 434
273,426 269,829
(5) other receivables (x € 1,000)
31 December 2011 31 December 2010
Buma members and participants 1,015 1,834
Stemra current accounts 389 -
SCAN 853 656
Other 475 129
2,732 2,619
47
Buma/Stemra
The decrease in Cable fees due is caused by the fact that
there is no final agreement on the allocation between the
different parties of the Kabelcollectief. Therefore the final
settlement is not allocated to the various CBOs.
For the rent of the office building, a bank guarantee has
been issued for € 0.5 million. All cash and cash
equivalentsare freely available.
There were no withdrawals during the year. The withdrawal
in 2010 refers to the completion of the streamlining of the
organisation which started in the previous years.
The withdrawal of € 0.5 million was recognised through the
profit and loss account (exceptional income and expenses).
(7) Cash and cash equivalents (x € 1,000)
31 December 2011 31 December 2010
Deposit account 12,832 16,945
Other cash and cash equivalents 15,750 18,912
28,582 35,857
(8) Continuity reserveThe changes can be specified as follows (x € 1,000)
2011 2010
As per 1 january 1,855 2,367
Allocations - -
Withdrawals - -512
As per 31 December 1,855 1,855
(6) Prepayments (x € 1,000)
31 December 2011 31 December 2010
Cable fees due 2,966 5,782
Interest due 1,578 1,160
Other prepayments 6,153 5,319
10,697 12,261
Notes to the buma balaNCe sheet as Per 31 deCember 2011
ANNUAL REPORT 2011
In 2008 € 6.5 million of the negative result is set aside by
means of result appropriation by the board and the board of
directors in the appropriated reserve, in order to not fully
settle the effects of the stock exchange decline in 2008 with
the 2008 collection year. In accordance with the intention of
2008, 50% of the appropriate reserve of 2008 was balanced
with the distributions of the 2009 collection year and the
remaining 50% is settled with the distributions of the 2010
collection year. There are no withdrawals and allocation
in 2011.
The (un)realised result in securities amount to € 2.6 million
negative (2010: € 3.9 million positive) and are taken directly
to the revaluation reserve for financial fixed assets. The
results on shares, (convertible) bonds and bond funds are
stated at a standard return. The percentage for 2011 was
5.6% (2010: 6.2%) for shares en for fixed-income securities
3.1% (2010: 3.7%). The withdrawal for the benefit of the
financial result at a standard return was € 2.0 million
(2010: € 3.0 million). The economic recession and the
anxiety on the financial markets has led to a decline
of the revaluation reserves for financial fixed assets.
(10) Revaluation reserve for financial fixed assetsThe changes in the revaluation reserve for financial fixed assets can be specified as follows:(x € 1,000)
2011 2010
As per 1 january 10,796 9,878
(Un)realised gains/losses arising from price changes -2,627 3,907
Withdrawals to the credit of the financial result to standard return -2,015 -2,989
As per 31 December 6,154 10,796
(9) Appropriated reserveThe changes can be specified as follows: (x € 1,000)
2011 2010
As per 1 january - -3,253
Allocations - 3,253
Withdrawals - -
As per 31 December - -
49
Buma/Stemra
Provision for long-service awardsThe provision for long-service awards is a provision for
future long-service awards, calculated on the basis of
actuarial assumptions with regard to indexation and life
expectancy. The calculation is based on the commitments
made, stay probability and age.
Provision for reorganisation costsThe provision for estimated severance payments is entirely
settled in 2011.
Provision for SFB scheme annual allowanceThe provision for annual SFB allowances concerns a
provision for the actual obligations by virtue of the
annual allowances paid to (former) authors and publishers
and their posterity through the Stichting Sociaal Fonds
Buma (SFB).
Although the obligations have been included provisionally,
there is a firm intention to meet the obligations. The part of
the provision for which no subsidy has been committed to
the SFB as yet is recognised. The expected remaining term
of the provision is until the end of 2022, and it has been
calculated on the basis of the nominal amounts of the
annual allowances with actuarial assumptions with
regard to indexing and life expectancy.
The provision was formed from the Fund for cultural and
social purposes; releases are part of the deductions and
taken to the Fund.
Provision for obligation to indemnifyAs a party to the agreements concluded with cable
operators concerning copyright arrangements for
transmission of programmes from broadcasting companies,
Buma has undertaken obligations with regard to copyright
claims that could be enforced against cable operators by
third parties, not represented in the matter by Buma.
In respect of obligations to indemnify arising from these
agreements, the provision for obligations to indemnify
amounts to 3% of the monies collected. The addition/
withdrawal takes place to the debit/credit of the collection.
(11) ProvisionsThe changes in the provisions can be specified as follows: (x € 1,000)
Balance as
per 1 january
2011
Additions
2011
withdrawals
2011
Balance as per
31 December
2011
Long-service awards 419 107 - 526
Reorganisation costs 139 - -139 -
SFB scheme annual allowance 10,035 - -1,483 8,552
Indemnifaction obligation 581 453 -581 453
11,174 560 -2,203 9,531
Notes to the buma balaNCe sheet as Per 31 deCember 2011
ANNUAL REPORT 2011
(12) Fund for cultural and social purposesThe changes can be specified as follows (x € 1,000)
2011 2010
As per 1 january 17,168 17,557
Allocations 9,581 10,212
Withdrawals -11,726 -10,601
As per 31 December¹) 15,023 17,168
The balance as at 31 December 2011 can be specified as follows:
In 2010 and 2011 the withdrawals from the Fund for
cultural and social purposes are higher than the allocations.
Therefore the balance of these two years is deducted from
the balance of year 2008 and earlier. The years 2010 and
2011 are therefore zero. In 2011 the deduction on the
royalties to be distributed and therefore the allocation to
the funds was determined by the board on 8% (2010: 8.5%).
€ 13.3 million of the total funds has a short term nature.
2008 and older 14,859
2009 164
2010 -
2011 -
15,023
51
Buma/Stemra
The surcharge Serious / Online is a withdrawal from
the Fund for the distribution to the right holders in the
category serious music and online expenses. The surcharge
Serious and Online will be paid out in the first quarter of
2012. The entry others under Cultural concerns expenses
attributed to the protection of copyright.
The expenditures of the Fund for cultural and social purposes are: (x € 1,000)
2011 2010
Social
Commitment to Social Fund Buma 1,335 1,460
Last year settlement SFB -208 -171
Pension scheme authors and publishers 2,221 2,507
Others 8 8
3,356 3,804
Cultural
Commitment to Buma Cultuur 6,141 4,127
Last year settlement Buma Cultuur -749 -491
Surcharge Serious category /Online 2,100 2,350
Geneco 100 years 200 -
Direct funding cultural projects 131 188
Professional associations 214 199
Others 333 424
8,370 6,797
Total expenditures 11,726 10,601
Notes to the buma balaNCe sheet as Per 31 deCember 2011
ANNUAL REPORT 2011
The available amount to be processed for distribution
is € 8.3 million higher than in 2010. The reason for this
increase is mostly because Buma’s turnover increased with
an average of € 3.0 million per year in the past two years.
The effect of this increase will be visible in 2012, where
in the first few months already € 5.0 million more was
distributed in the categories Post distributions, general
rights, film and satellite, than in the same period in 2011.
These royalties are accounted for in the amount of royalties
to be distributed at the end of 2011. In addition, the method
for the setting of music in commercials is changed. This
enables us to ultimately distribute more for the use of
music in commercials. This process has also shown that
the use of music in commercials is higher, therefore the
reservation for this cause was higher in 2011.
(13) Royalties to be distributed(x € 1,000)
2011 2010
Royalties to be distributed at the beginning of the year 162,211 156,536
Royalties turnover 142,948 140,346
Changes in royalties to be distributed -9,092 -8,319
Available for distribution 296,067 288,563
Distributed in the reporting year:
Members and participants 70,345 67,440
Foreign organisations 43,799 46,549
Fund for cultural and social purpose 9,581 10,212
Administrative costs charged 1,838 2,151
Distribution incl. administrative costs charged 125,563 126,352
Royalties to be distributed at the end of the year 170,504 162,211
53
Buma/Stemra
The reservation for collection year 2008 consists among
others of the so-called plus-packages. Because of the
amount in combination with the long lead time to get
to a correct distribution the plus-packages are mentioned
separate in. The distribution of the plus-packages will
take place in 2012.
Available for distribution Buma(x € 1,000)
2011 2010
Royalties turnover 142,948 140,346
Release of reservation of rights 4,327 4,715
Changes in royalties to be distributed -9,092 -8,319
Became available for distribution during the year 138,183 136,742
To be distributed at the beginning of the year 162,211 156,536
Available * 133,856 132,027
Distributed -125,563 -126,352
Royalties to be distributed at the end of the year 170,504 162,211
* Excluding indivisible rights which have already been accounted for in the opening balance sheet
The structure of the royalties to be distributed is as follows: (x € 1.000)
2011 2010
Reservation for copyrights 38,094 34,690
Reservation for double claims 6,236 5,622
To be distributed collection year 126,174 121,899
170,504 162,211
Notes to the buma balaNCe sheet as Per 31 deCember 2011
Per year of collection:
2011
Older than 2008 5,399
2008 9,027
2008 plus-packages 3,335
2009 12,605
2010 18,146
2011 121,992
170,504
ANNUAL REPORT 2011
Of the available amount to be processed for distribution
in 2012, € 4.3 million will be added to the distribution of
the released reserved rights (2010: € 4.7 million, distributed
in the 2011 payment).
The negative result for 2011 amounts is € 9.1 million (2010:
€ 5.1 million negative). The negative result was deducted
from the royalties to be distributed (2010: € 8.3 million).
Distribution of Buma’s turnover(x € 1,000)
2011 2010
Radio & TV Performing Rights 51,863 50,228
Live 20,363 19,899
Hospitality Industry 15,047 17,015
Workplaces 17,600 17,799
Shops and stores 12,827 11,940
Performing Rights Online Licensing 1,471 757
Cable 11,886 12,168
Performing Rights Abroad 11,891 10,540
142,948 140,346
The amount available for distribution (including addition for the release of reservation rights) is allocated to the different categories
as follows: (x € 1,000)
2011 2010
Live entertainment 15,845 16,335
Mechanical entertainment 38,090 38,345
Radio 5,761 5,868
Television 7,572 7,637
Film 3,134 2,403
Serious categories 2,991 3,222
Cable 10,562 10,859
Satellite 32,755 31,321
International 11,892 10,540
Fund for cultural and social purposes 9,581 10,212
138,183 136,742
55
Buma/Stemra
The amounts owed to sister organisations abroad were
largely settled at the beginning of 2012.
The obligations arising from social and cultural
purposes are (x € 1,000):
• Buma Cultuur € 6,281 (31/12/2010: € 5,309)
• Pension scheme
authors and publishers € 5,404 (31/12/2010: € 5,071)
• Social fund Buma € 3,955 (31/12/2010: € 4,339)
• Surcharge category
Serious and Online € 2,151 (31/12/2010: € 2,252
(14) other liabilities(x € 1,000)
31 December 2011 31 December 2010
Sister organisations abroad 26,169 26,064
Obligations arising from social and cultural purposes 17,791 16,971
Buma members and participants 250 752
Current account Stemra - 949
Other 3,402 4,437
47,612 49,173
(15) other payables and deferred income(x € 1,000)
31 December 2011 31 December 2010 *
Third parties cable right owners 5,183 4,882
Holiday allowance/annual leave 796 793
Other 533 1,176
6,512 6,851
* Adjusted for comparison purposes
Notes to the buma balaNCe sheet as Per 31 deCember 2011
ANNUAL REPORT 2011
oFF-BALAnCe SheeT CommiTmenTS
Partially pledged bond portfolioIn accordance with the decision of the Board, at the end of
2002, part of the bond portfolio of Stichting Buma/Stemra
Obligatiefonds amounting to € 27.8 million was pledged
as a security to ING Bank N.V. in connection with a cash
facility needed for normal operations. The cash facility is
€ 25.0 million. This facility was not used in 2011.
Longterm financial liabilitiesThe financial liabilities with regard to the business
accommodation in Hoofddorp was prolonged until 31
December 2017. The rental obligation is incurred by Buma.
The combined annual rent for Buma/Stemra amounts to
€ 1.3 million, which is divided between Buma and Stemra
on the basis on 75% / 25%
In the current composition, the annual amount for the
leasing of cars by Buma/Stemra is € 0.2 million. The liability
for terms longer than one year is € 0.4 million. The financial
liability for the rent of the printers was entered into until
1 May 2013. The annual rent amounts to € 0.1 million. The
obligations with respect to the car lease and the printers
are incurred by Buma. The lease costs will be for 75% on
the account of Buma and for 25% on the account of Stemra.
Buma/Stemra entered into a contract allowing Accenture
to perform a large portion of Buma/Stemra’s back office
activities from 2007 until 31 March 2017. The resulting
financial liability amounts to € 15.3 million for the
remaining duration of the contract, assuming consistent
volumes. The costs of the back office activities are divided
on a 75% respectively 25% proportion for Buma and Stemra.
The off-balance sheet commitments of € 20.8 million can
be summarised as follows:
• less than 1 year: € 4.5 million
• between 1 and 5 years: € 14.5 million
• longer than 5 years: € 1.8 million
joint and several liabilityVereniging Buma is jointly and severally liable for the acts
of Stichting Service Centrum Auteurs- en Naburige Rechten
(the Service Centre) resulting debt and guarantees the
fulfillment of the obligations of the foundation to a
maximum of € 1.0 million.
Related partiesRelated parties of Buma Association are distinguished in:
Stemra foundation, Buma Cultuur foundation (and according
that foundation Amsterdam Dance Events foundation and
Buma Rotterdam Beats foundation), Social Fund Buma
foundation, the Service Centre and the statutory board
and the board members of the Vereniging Buma and
Stichting Stemra.
More information about the renumerations of the board
members and the statutory management can be found
in note 17.
Regular transactions on account of the exploitation
of copyrights to board members or to board members
related parties are not explicitly explained in the financial
statements.
Both Buma Cultuur foundation and Social Fund Buma
foundation receive funds to implement their goals from the
Fund for Social and Cultural purposes. More information about
this can be found in note 12. Vereniging Buma charges Stichting
Stemra, Stichting Buma Cultuur, Stichting Sociaal Fonds Buma
and the Service Centre on to personnel, accommodation and
overhead costs. The by charge costs for 2011 amount to:
• Stemra foundation € 4,328,000
• Buma Cultuur foundation € 149,000
• Social Funds Buma Foundation € 40,000
• Service Centre € 1,098,000
The by charge is based on cost price.
57
Buma/Stemra
(16) BudgetBelow both the budgets for 2011 as 2012 are presented.
The actual figures for 2011 are incorporated for comparison.
Standard return was not taken into account in the budgets
2011 and 2012.
The budget from ordinary activities for 2012 is € 11.4
million negative compared to € 9.1 million negative in 2011.
This decline is due to a lower budgeted financial result.
On the other hand there is an increase in the budgeted
expenses in particular for fingerprinting, the Service
centre and (IT) projects.
Also, both the budgeted revenue distribution 2012 and
2011 is shown, included the actual turnover of 2011 for
comparison. The increase in the budget 2012 compared to
the budget 2011 is particularly attributable to an expected
increase in the categories Radio & TV performing rights.
With respect to the actual figures of 2011, an increase can
be expected in the category cable
For a further explanation of the budget we refer to the
director’s report.
Notes to the buma ProFit aNd loss aCCouNt For 2011
(x € 1,000)
Budget 2012 Realisation 2011 Budget 2011
income
Administrative costs charged 1,700 1,838 1,988
Entrance fees and annual allowances
600 617 546
Other income 600 696 600
2,900 3,151 3,134
expenses
Personnel expenses 9,540 10,085 9,838
Office and accommodation costs
1,350 1,438 1,488
Depreciation and amortisation expenses
450 368 420
Other expenses 8,395 8,169 6,528
19,735 20,060 18,274
operating result -16,835 -16,909 -15,140
Interest and dividends 5,428 5,802 6,051
Standard return¹ - 2,015 -
Financial result 5,428 7,817 6,051
Result from ordinary activities
-11,407 -9,092 -9,089
¹ The standard return consists of exchange results. Exchange results are not accounted for in the budget.
ANNUAL REPORT 2011
Distribution of Buma’s turnover(x € 1,000)
Budget 2012 Realisation 2011 Budget 2011
Radio & TV Performing Rights 51,650 51,863 48,557
Live 20,850 20,363 20,082
Hospitality Industry 15,750 15,047 15,984
Workplaces 17,250 17,600 16,686
Shops and stores 13,600 12,827 12,574
Performing Rights Online Licensing
2,300 1,471 1,899
Cable 13,500 11,886 13,000
Performing Rights Abroad 11,100 11,891 11,750
146,000 142,948 140,532
exPenSeS
(17) Personnel expenses(x € 1,000)
2011 2010
Salaries 9,121 8,473
Social security contributions 1,129 1,030
Pension contributions 832 1,032
Other personnel expenses 2,539 2,652
13,621 13,187
Charged /compensated to third parties -3,536 -5,036
10,085 8,151
The combined cost of Vereniging Buma and Stichting
Stemra are divided in the ratio 75% / 25%. Directly
attributable costs are 100% accounted for in the entity’s
financial statements.
The average number of employees during the reporting
year was 176 employees (2010: 173 employees), which
correspond to an average of 164.3 FTE (2010: 166.5 FTE)
This includes:
• An average 5 employees (2010: 4 employees) is charged
on to SCAN, which corresponds to an average of 4.6 FTE
(2010: 4.0 FTE)
• Employees who are working partly for Stemra, of which
part of the costs are charged on to Stemra
• 1.0 FTE which is charged on to other affiliated foundations
59
Buma/Stemra
Notes to the buma ProFit aNd loss aCCouNt For 2011
The work force (average number of FTE) can be divided
into various categories of staff:
Salary Buma Board and statutory executive director Buma/Stemra for the year 2011(x € 1,000)
Buma Board
Fee for 12 members of the government Buma (incl. expense allowance)
101
Board of directors and support staff to the Board 5.4
Legal Affairs 6.1
General Affairs 41.7
Front Office 64.0
Back Office 47.1
164.3
h.w. van der Ree
executive director
C. van Rij
Legal Affairs director
Statutory directors Buma/Stemra
Function
Full Time Equivalent 100% 100%
Type of contract indefinite duration indefinite duration
Contract in 2011 1/1 - 31/12 1/1 - 1/11
Fixed remunerations and fees 304 207
Variable remunerations and fees 52.5 15
Expense allowance 3 3
Pension charges 53 23
Social security costs 8 0
Termination payments - 700¹
¹ The termination payment is based on the clauses in the labour contract regarding the so-called ‘Kantonrechtersformule’
(County judge formula).
ANNUAL REPORT 2011
The salary of the statutory directors Buma/Stemra is for
75% recognised in the financial statements of Vereniging
Buma and for 25% on the account of Stichting Stemra.
The increase in Consultancy costs is partly due to costs
of renegotiating the rental agreement. There was also an
increase in the use of external lawyers. The decrease in
Outsourcing costs is due to the relocation of back office
activities from Prague to India. The increase in Service
Bureaus are mainly due to the increased activities of
the Service Centre. This increase results in a decline of
personnel costs for Buma. The net effect is an increase of
€ 0.5 million. This increase is due to file matching costs
and extra Service Centre marketing costs.
(18) other expenses(x € 1,000)
2011 2010
Rent, Lease & Maintenance 620 605
Supplies and stationery 344 443
Commercial expenses 324 263
Outsourcing 1,316 2,055
Outsourcing IT 1,715 1,661
Other IT expenses 1,383 1,296
Consulting 1,719 1,254
Service agencies 2,222 1,434
Other overhead 880 708
10,524 9,719
Expenses charged on ¹ -2,354 -2,672
8,169 7,047
¹ The expenses charged on are charged on to costs to Stemra and third parties.
61
Buma/Stemra
(19) Audit feesThe following fees of KPmg Accountants are charged to Buma, as referred to in Article 2:382a Bw (x € 1,000).
2011
KPmg Accountants n.V.
other
KPmg network
Total
KPmg network
Financial statement audit 106 - 106
Other audit assignments 24 6 30
Tax Consultancy - 58 58
Other non-audit services - 23 23
130 87 217
2010
KPmg Accountants n.V.
other
KPmg network
Total
KPmg network
Financial statement audit 106 - 106
Other audit assignments 24 15 39
Tax Consultancy - 51 51
Other non-audit services - 29 29
130 95 225
(20) Financial result(x € 1,000)
2011 2010
interest income and other income
Fixed income securities
Interest received on bonds 2,628 1,605
Shares
Share dividend received 3,304 3,509
5,932 5,114
Mutations revaluation reserve
Withdrawals from revaluation reserve for the benefit of the financial result at a standard return
2,015 2,989
Other interest income and similar income 427 707
Total income from investments 8,374 8,810
Interest expenses and other costs -557 -314
7,817 8,496
Notes to the buma ProFit aNd loss aCCouNt For 2011
ANNUAL REPORT 2011
The increased interest on bonds is partly caused by higher
interest income on government bond funds, partly due to
sold state bond funds and a reinvestment in state bonds.
The lower withdrawal from the revaluation reserve is partly
due to a lower effective yield on the 5-year Euro bonds,
which is used for the calculation of the effective yield.
Less interest as well as less dividend was received in 2011
by BSO / BSA. Buma realised an increase in received
interest on bonds, but this increase was due to the
distribution of the financial result of BSO / BSA, due to the
higher share in BSO / BSA in 2011 than in 2010 (2011: 79.9%
/ 20.1%; 2010: 63,5% / 36.5%). This increase of 16.4% is due
to a sell of participation by Stemra to Buma worth € 69.5
million. This consisted of the redemption of a loan in
current accounts from Buma to Stemra worth € 55.7
million, a clearance of € 13.3 million from BSA/BSO and
an expansion of liquid means of Stemra by 0.5 million.
Amstelveen, April 4th 2012
Buma board
Mr L.A.J.M. de Wit Chairman a.i.
Mr drs. S.A.A. Abdoelbasier Board member
Mr J.A. van Bergen Board member
Mr A.J.H. van Berkel Board member
Mr M.A. Bremer Board member
Mr P.M. van Brugge Board member
Mr H.C.M. de Clercq Board member
Mr L.A. Dikker Board member
Mr mr. H. Kosterman Board member
Mr M.W. Mensink Board member
Mr T.J.M. Peters Board member
Mr A.A.L. de Raaff Board member
Mr drs. H.O. Westbroek Board member
Director
Mr H.G. van der Ree statutory executive Director
63
Buma/Stemra
To: The Board and the general meeting of Vereniging Buma
inDePenDenT AuDiToR’S RePoRTWe have audited the accompanying financial statements
2011 set out on pages on pages 37 to 63 of Vereniging Buma,
Amstelveen, which comprise the balance sheet as at 31
December 2011 and the profit and loss account for the year
then ended and the notes, comprising a summary of the
accounting policies and other explanatory information.
The board’s responsibility The board of the Association is responsible for the prepara-
tion of the financial statements in accordance with the
accounting policies selected and disclosed by the Association,
as set out in notes to the financial statements. Furthermore,
the board is responsible for such internal control as it
determines is necessary to enable the preparation of
financial statements that are free from material misstate-
ment, whether due to fraud or error.
Auditor’s responsibilityOur responsibility is to express an opinion on these
financial statements based on our audit. We conducted our
audit in accordance with Dutch law, including the Dutch
Standards on Auditing. This requires that we comply with
ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on
the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk
assessments, the auditor considers internal control
relevant to the entity’s preparation of the financial state-
ments in order to design audit procedures that are appro-
priate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the
board, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
audit opinion.
opinionIn our opinion, the financial statements are prepared, in
all material respects, in accordance with the accounting
policies selected and disclosed by the Association, as set
out in notes to the financial statements.
Basis of accounting and restriction on distribution and useWe draw attention to notes to the financial statements,
which describes the basis of accounting. The accounting
policies used are selected and disclosed by the Association.
Our opinion is not qualified in this respect.
Amstelveen, 4 April 2012
KPMG Accountants N.V.
R.J. Groot RA
other iNFormatioN
ANNUAL REPORT 2011
Profit appropriationFor Buma, the result for 2011 will be deducted from the
royalties to be distributed.
Based on an assessment of the reserve, it will be determined
to what extent funds will have to be added to or deducted
from the reserves. This movement will also be credited or
charged to the royalties to be distributed.
Proposal of the board of directorsAs shown in the financial statements, which were prepared
in accordance with Article 26 note 2 of the Articles of
Association, the board of directors proposes to deduct
the negative result of € 9.1 million from the royalties to
be distributed.
The proposal has already been incorporated in the 2011
financial statements.
65
Buma/Stemra
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Stemra Financial statements 2011
Stemra balance sheet as at 31 December 2011After appropriation of the result (x € 1,000)
31 December 2011 31 December 2010
assets
Fixed assets
Tangible fixed assets (1) 250 210
Financial fixed assets (2) 52,273 51,159
52,523 51,369
Current assets
Accounts receivable 1,629 4,868
Other receivables (3) 4,357 4,180
Taxes and social security contributions 815 997
Prepayments (4) 741 288
Cash and cash equivalents (5) 3,674 6,305
11,216 16,638
63,739 68,007
liabilities
Reserves
Foundation capital 1 1
Continuity reserve (5) 5,760 5,760
Appropriated reserve (7) - -
Revaluation reserve for financial fixed assets (8) 4,390 5,561
10,151 11,322
Provisions
Provisions (9) 64 213
Current liabilities
Royalties to be distributed (10) 38,738 38,755
Accounts payable 1,088 762
Other liabilities (11) 4,400 4,788
Taxes and social security contributions 55 112
Other payables and deferred income (12) 9,243 12,055
53,524 56,472
63,739 68,007
stemra balaNCe sheet
ANNUAL REPORT 2011
stemra ProFit aNd loss aCCouNt For 2011
Stemra profit and loss account for the year ended 31 December 2011(x € 1,000)
2011 2010
income
Administrative costs 3,134 3,096
Entrance fees and annual allowances 617 604
Other Income 50 -
3,801 3,700
expenses
Personnel expenses (14) 3,251 5,018
Office and accommodation costs 479 761
Depreciation and amortisation 134 171
Other expenses (15) 1,833 2,291
5,697 8,241
Operating result -1,896 -4,541
Financial result (17) 1,952 4,821
Result from ordinary activities 56 280
Exceptional income - 169
Exceptional expenses - -169
result 56 280
Result appropriation
Result allocated to appropriation reserve - 1,300
Result deductions from continuity reserve - -
Changes in royalties to be distributed 56 -1,020
69
Buma/Stemra
Stemra cash flow statement for the year ended 31 December 2011(x € 1,000)
2011 2010Cash flow from turnover and distribution (10)
Turnover 32,138 35,662
Distribution -32,211 -36,750
-73 -1,088
Cash flow from operating activities
Administrative costs charged (10) 3,134 3,096
Other income 667 604
Financial result 1,336 2,590
5,137 6,290
Total expenses -5,697 -8,241
Correction for depreciation and amortisation 134 171
-5,563 -8,070 -8,070
Changes in continuity reserve - -169
Changes in provisions -149 -166
Changes in other receivables 2,898 -2,868
Changes in other liabilities -2,931 -45,118¹
-182 -48,321
-608 -50,101
Cash flow from direct investment activities
Investments in tangible fixed assets (1) -174 -157
-174 -157
Cash flow from indirect investment activities
Purchase of securities
Repayments/sales proceeds -31,205 -10,790
29,429 53,793 ¹
-1,776 43,003
Net Cash flow -2,631 -8,343
Cash and cash equivalents as per 1 January 6,305 14,648
Cash and cash equivalents as per 31 December 3,674 6,305
Changes in cash and cash equivalents -2,631 -8,343
¹ This concerns the repayment of the loan in current account to Buma and investments BSO/BSA at the end of 2010. For more information we refer to the notes of the financial statements 2010.
stemra Cash Flow statemeNt
ANNUAL REPORT 2011
Notes to the stemra balaNCe sheet aNd ProFit aNd loss aCCouNt
geneRAL
Stemra Foundation’s objectivesStichting Stemra (Stemra foundation) its registered
office is in Amstelveen. The Foundation its objective is to
represent and promote both the tangible and intangible
interests, without motive of profit, of music authors and
publishers and other copyright owners, in particular with
regard to mechanical reproduction rights. The Foundation’s
other goals are exercising and maintaining mechanical
reproduction rights for participating authors, participating
publishers, as well as other authors and copyright owners.
The Foundation participates in the implementation and
promotion of various activities to achieve its objective.
Principles for the valuation of assets and liabilities and the determination of the resultThe principles adopted for the valuation of assets and
liabilities and determination of the result are based on
historical costs unless otherwise explained.
If not stated otherwise, assets and liabilities are stated at
face value. Income and expenses are allocated to the period
to which they apply.
The Voice certification criteria were taken into account
in preparing the financial statement. As a result of these
criteria for Collective Right Managements Organisations,
additional information was added and the annual returns
of 2010 were reclassified for comparison (to the figures
of 2011).
Accounting principles for the translation of foreign currencyTransactions denominated in foreign currency are
translated to euros at the applicable exchange rate on
the transaction date. Monetary assets and liabilities
denominated in foreign currency are translated to euros
at the exchange rate applicable on balance sheet date.
Exchange rate differences are taken to the profit and loss
account. Non-monetary assets and liabilities denominated
in foreign currency that are valued on the basis of historical
costs are translated at the applicable exchange rate on
the transaction date.
Principles of consolidationFor transparency purposes Stichting Buma/Stemra
Obligatiefonds and Stichting Buma/Stemra Aandelenfonds
are included in the Stemra financial statements by means
of proportional consolidation. Assets and liabilities, as well
as income and expenses, are proportionally included to the
participating interests. No separate financial statements
for Stemra is included, but the information is provided in
the notes.
Deviations from Bw2 Title 9The most important deviations from BW2 Title 9 - Civil Code -
for the valuation of assets and liabilities and deter min ation
of results is the application of the standard return on
investments.
Price gains/losses arising from the valuation of securities at
market value are not directly taken to the trading account,
but are first included in the revaluation reserve for financial
fixed assets (hereinafter: ‘revaluation reserve’). If the
position of the revaluation reserve is sufficient at the end
of the year, a so-called standard return can be recognised
in the financial results.
According to the Guidelines for Annual Reporting
(Richtlijnen voor de Jaarverslaggeving) the abovementioned
trading results should be recognised directly in the profit
and loss account. Buma/Stemra applies the methodology
to account for a consistent development of the financial
results in the profit and loss account and to align the
financial result with the long-term objective of the
investment strategy.
Tangible fixed assetsTangible fixed assets are based on historical cost less
cumulative depreciation. The depreciation is calculated as
a percentage of the purchase price according to the straight
line method basis on the expected economic life.
71
Buma/Stemra
Notes to the stemra balaNCe sheet aNd ProFit aNd loss aCCouNt
The following expected economic life terms are applied:
• Computer equipment 3 years
Accounts receivableAccounts receivable are stated at nominal value less
a provision for bad debts.
Financial fixed assets The securities included under financial fixed assets
are listed shares, bond funds, and (convertible) bonds.
Securities are stated at market value as at balance
sheet date.
Revaluation reserve for financial fixed assets Price gains/losses arising from the valuation of securities
at market value are not directly taken to the trading
account, but are first included in the revaluation reserve
for financial fixed assets (hereinafter: ‘revaluation
reserve’). To the extent that the revaluation reserve
is insufficient, the deficit is charged to the result.
Each year, the size of the revaluation reserve needed to
absorb price fluctuations is determined by the Board in
consultation with its asset managers. If the revaluation
reserve is larger than deemed necessary, this surplus is
eligible for addition to the royalties to be distributed.
Financial result and standard returnDividends are accounted for in the period in which they
are made payable; interest income is accounted for in
the period to which it relates.
Insofar as the balance of the revaluation reserve, less
a possible appropriate reserve for (un)realised gains or
losses arising from changes in market prices, leaves
room for this, a ‘standard return’ is included in the
financial result, in addition to any receivable share
dividend and interest on bond funds. In the calculation
of the standard return, the dividend and interest already
paid out are taken into account, and only the difference
between the dividend/interest received and the
standard return is settled with the revaluation reserve.
The standard return is calculated as a percentage of
the average value of the shares and bond funds over
the financial year, and comprises the effective return
on 5-year euro government bonds at the end of the
financial year plus a risk mark-up for shares. The
difference between the standard return and the
dividend received on shares or interest received
on bond funds is withdrawn from the revaluation
reserve, if possible.
Continuity reserve The continuity reserve’s aims include guaranteeing the
continuity of the work. It also serves to fulfil obligations
in respect of third parties, in particular with regard to
distribution of the royalties yet to be distributed in
accordance with the financial statements. This reserve
furthermore serves to level out unwanted fluctuations
in the amounts available for distribution, resulting,
among other things, from domestic and international
pressure on turnover, as well as continuing changes in
the distribution of rights.
Appropriated reserveAppropriated reserves are parts of reserves that
management has set aside for a special purpose. In this
case, it concerns the appropriated reserve for (un)
realised gains/losses arising from changes in market
prices. For more detailed information on this reserve,
please refer to the notes to the balance sheet.
ProvisionsProvisions are measured at either the nominal value of
the estimated expenditure required to settle liabilities
and losses, or the present value of that expenditure.
A provision is mentioned in the balance sheet when
there is:
• a legal or constructive obligation as a result of a past event,
and
• of which a reliable estimate can be made, and
• it is probable a cash outflow is necessary to settle the
obligation.
The long-service awards provision is a provision for
future long-service awards. The provision is the present
value of future benefits to be paid for long-service
awards. The calculation is based on commitments
and age.
Reservations royalties to be distributedIn the process of distribution three types of reservations
are made. First of all reservations are created for the
event that insufficient information is available in order
to distribute. For example, because of the lack of data of
the right owners, copyright information and the missing
of so-called cuesheets for movies, shows or commercials.
Secondly, reservations are made for works which the
cumulative earnings per work have not yet achieved the
ANNUAL REPORT 2011
lower limit for distribution. These funds are segregated
until this information is available or the lower limit has
been reached and the money can be distributed in the
post-distribution.
Finally, a reservation is made for complaints relating to the
distribution, this in order to the indemnification that Buma
provides to the users of music. This reservation is determined
by a percentage of the funds per distribution based on the
historical course of the amount paid on complaints per
distribution category. The percentage of reservation for
these complaints is usually between 0 and 2%.
In addition, works for which there is a so-called double
claim (two owners claim the same work) are reserved until
this situation is resolved mutually. These amounts are
also recognised in amount of royalties to be distributed.
Except the so-called double claims, all reservations are
released after a maximum of 3 years. This in accordance
with the certified criteria. In addition, a longer reservation
period is used for monies that Stemra has received from
sister organisations but for which no information is
available to do a proper distribution and with regard
to monies set aside for claims in the past.
Determination of the resultIncome and expenses are accounted for in the year to
which they apply. The result is determined by calculating
the difference between the balance of realised income and
expenditure and the financial result for the year.
The balance of the profit and loss account is allocated/
deducted from the royalties to be distributed and/or the
reserves by means of profit appropriation.
Pension plansStichting Stemra has made a pension scheme arrangement
for its employees where pension benefits are based on
average salary. The plan is administered by the Foundation
Sector pension fund for the media PNO. The premiums due
for the financial year are recognised as expenses. Premiums
that are not paid at balance sheet date are recognised as a
liability. Since these liabilities have a short term nature,
they are stated at their nominal value. The risks of salary
developments, price indexation, investment returns on the
fund assets might possible lead to future changes in annual
contributions to the pension fund. These risks are not
reflected in a balance sheet provision.
In the event of a shortfall in the sector pension fund,
Stemra has no obligation to pay additional contributions
other than higher future premiums. The coverage ratio of
the Foundation Sector pension fund for the media PNO
for the end of December 2011 amounted to 90.7%.
Turnover In the financial statements, the turnover in royalties is
added to the to be distributed royalties. Stemra includes
the exploitation of mechanical rights in the turnover,
insofar as these relate to the financial year, can be
determined in a reliable manner, and there is reasonable
certainty that the revenue is collectible.
TaxWith regard to Stemra, the Dutch tax authorities stipulated
in an agreement dated 6 November 2001, determining the
legal relationship between the parties, that Stichting Stemra
is liable to pay corporation tax. This agreement was extended
at the end of 2008 for a period of three years, and is valid
until 31 December 2011. Foreign withholding tax available
for set-off and Dutch dividend tax may be deducted from
the tax due by virtue of this agreement determining the
legal relationship between parties.
A tax item is only included in the financial statements if
corporation tax is still owed after deduction of the foreign
withholding tax available for set-off.
Accounting principles for cash flow statementThe cash flow statement is drawn up using the indirect
method. Exchange rate differences, like all other movements,
are eliminated for so far they had not let to a cash flow.
The term cash and cash equivalents is used in the balance
sheet in the same way as in the cash flow statement.
use of estimatesDrawing up the financial statements requires management
to form opinions and make estimates and assumptions
that influence the application of principles and the
reported value of assets and liabilities, and of income and
expenses. The estimates and the associated assumptions
are based on past experience and various other factors that
are considered reasonable in view of the circumstances.
The outcome forms the basis for the opinion on the
carrying value of assets and liabilities that does not emerge
clearly from other sources.
73
Buma/Stemra
(1) Tangible fixed assetsThe changes in the tangible fixed assets can be specified as follows (x € 1,000)
Computer equipment
Actual cost as per 1 January 2011 1,511
Accumulated depreciation -1,301
Carrying amount 210
Changes during the financial year:
Investments 174
Depreciation -134
40
Actual cost as per 31 December 2011 1,685
Accumulated depreciation -1,435
Carrying amount 250
Depreciation in number of years on average 3
(2) Financial fixed assetsThe fair value of the portfolio at the end of 2011 is € 52.3 million and it can be specified as follows: (x € 1,000)
2011 2010
Fixed income securities 40,572 78% 40,477 79%
Equity funds 11,701 22% 10,682 21%
52,273 100% 51,159 100%
The movements of the individual items can be displayed as follows (x € 1.000):
Fixed
income
securities
equity
funds
Total
Balance as per 1 Januari 40,478 10,682 51,160
Acquisitions 29,329 1,876 31,205
Repayments / Sales -29,386 -43 -29,429
Price movements 151 -814 -663
Balance as per 31 December 40,572 11,701 52,273
Notes to the stemra balaNCe sheet as at 31 deCember 2011
The actual results may differ from these estimates.
ANNUAL REPORT 2011
Securities and bonds of Stichting Stemra are valued at
market value. Valuation differences on bonds and shares
are charged or credited to the revaluation reserve for
financial fixed assets.
Stemra’s securities and bonds have been placed in
Stichting Buma/Stemra Obligatiefonds and Stichting Buma/
Stemra Aandelenfonds. The foundations are proportionally
consolidated in financial statements of Stemra and Buma
at an average percentage of respectively 20.9% and 79.9%
(2010: 20.1% en 79.9%).The above mentioned amounts
are the proportion of the total amount as shown in the
fully-combined financial statements of Stichting Buma/
Stemra Obligatiefonds (BSO) and Stichting Buma/Stemra
Aandelenfonds (BSA). The main movements in the fixed
income securities concern in particular the conversion of
(government) bond funds to bonds in order to minimise
the risks in the Eurozone countries.
The fully-combined balance sheet of Stichting Buma/Stemra obligatiefonds (BSo) and Stichting Buma/Stemra Aandelenfonds (BSA) can be respresented in condensed form as folows:(x € 1,000)
31 December 2011 31 December 2010
assets
Fixed assets
Financial fixed assets 259,535 254,006
Current assets
Receivables 2,143 1,619
Cash and cash equivalents 11,748 14,204
273,426 269,829
liabilities
Participants’ account 273,018 269,395
Current liabilities
Creditors 408 434
273,426 269,829
The return (including price changes and excluding the
standard return in 2011 from the invested funds within
Stichting Buma/Stemra Obligatiefonds and Stichting
Buma/Stemra Aandelenfonds is 1.3% (2010: 4.8%). The
economic recession and the ensuing turmoil in financial
markets has led to lower return in 2011.
The actual results may differ from these estimates.
75
Buma/Stemra
(3) other receivables(x € 1,000)
31 December 2011 31 December 2010
Stemra members and participants 4,337 3,214
Buma current accounts - 949
Other 20 17
4,357 4,180
(4) Prepayments
(x € 1,000)
31 December 2011 31 December 2010
Interest due 395 288
Other prepayments 346 -
741 288
(5) Cash and cash equivalents(x € 1,000)
31 December 2011 31 December 2010
Deposit account 1,738 2,781
Other cash and cash equivalents 1,936 3,524
3,674 6,305
All the cash and cash equivalents is freely available.
Notes to the stemra balaNCe sheet as at 31 deCember 2011
ANNUAL REPORT 2011
(6) Continuity reserveThe changes can be specified as follows (x € 1,000)
2011 2010
Balance as per 1 january 5,760 5,929
Allocations - -
Withdrawals - -169
Balance as per 31 December 5,760 5,760
(7) Appropriated reserveThe changes can be specified as follows (x € 1,000)
2011 2010
Balance as per 1 january - -1,300
Allocations - 1,300
Withdrawals - -
Balance as per 31 December - -
There were no withdrawals in 2011. The withdrawal in 2010
(€ 0.2 million) refers to the completion of the streamlining
of the organisation which started in the previous years.
The withdrawal of € 0.2 million was recognised through the
profit and loss account (exceptional income and expenses).
In 2008 € 2.6 million of the negative result is set aside by
means of result appropriation by the Board and the board
of directors in the appropriated reserve, in order to not fully
settle the effects of the stock exchange decline in 2008 with
the 2008 collection year. In accordance with the intention
of 2008, 50% of the appropriate reserve of 2008 was
balanced with the distributions of the 2009 collection year
and the remaining 50% is settled with the distributions
of the 2010 collection year. There were no withdrawal
and/or allocations in 2011.
77
Buma/Stemra
(9) ProvisionsThe changes in the provisions can be specified as follows: (x € 1,000)
Balance as per
1 january
2011
Additions
2011
withdrawals
2011
Balance as per
31 December
2011
Long-service awards 74 - -10 64
Reorganization costs 139 - -139 -
213 - -149 64
(8) Revaluation reserve for financial fixed assetsThe changes in the revaluation reserve for financial fixed assets can be specified as follows: (x € 1,000)
2011 2010
Balance as per 1 january 5,561 5,683
(Un)realised gains/losses arising from price changes -663 2,247
Withdrawals to the credit of the financial result to standard return -508 -1,719
Withdrawals allocated to Financial result - -650
Balance as per 31 December 4,390 5,561
The (un)realised gain in securities amount to € 0.7 million
(2010: € 2.2 million) and are taken directly to the revaluation
reserve for financial fixed assets. The results on shares,
(convertible) bonds and bond funds are stated at a standard
return. The percentage for 2011 was 5.6% (2010: 6.2%) for
shares en for fixed-income securities 3.1% (2010: 3.7%).
The withdrawal for the benefit of the financial result at
a standard return was € 0.5 million (2010: € 1.7 million).
The withdrawal for the benefit of the financial result was
0 (2010: € 0.7 million). The economic recession and the
anxiety on the financial markets has led to a decline
of the revaluation reserves for financial fixed assets.
Provision for long-service awardsThe provision for long-service awards is a provision for
future long-service awards, calculated on the basis of
actuarial assumptions with regard to indexation and life
expectancy. The calculation is based on the commitments
made, stay probability and age.
Provision for reorganisation costs
The expectation is that the provision for estimated
severance payments will largely be settled in 2011.
Notes to the stemra balaNCe sheet as at 31 deCember 2011
ANNUAL REPORT 2011
(10) Royalties to be distributed(x € 1,000)
2011 2010
Royalties to be distributed at the beginning of the year 38,755 40,863
Royalties turnover 32,138 35,662
Changes in royalties to be distributed 56 -1,020
Available for distribution 70,949 75,505
Distributed in the reporting year:
Associations and participants 24,394 28,493
Foreign organisations 4,459 4,964
Central Licensing 225 195
Administrative costs charged in the Netherlands 2,955 2,920
Administrative costs charged abroad 178 178
Distribution incl. administrative costs charged 32,211 36,750
Royalties to be distributed at the end of the year 38,738 38,755
Royalties will be distributed as follows: (x € 1.000)
2011 2010
Reservation for copyrights 10,056 10,093
Reservation for double claims 5,383 5,153
To be distributed collection year 23,299 23,509
Stand per 31 december 38,738 38,755
The available amount to be processed for distribution in
2011 is € 1.3 million and will be added to the indivisible
rights (2010: € 2.3 million, distributed in the 2011 payment).
The positive result for 2011 amounts to € 56,000
(2010: € 0.3 million). The amount available for distribution
is € 0.1 million lower than in 2010. This is a decrease of
5% (€ 2.1 million negative) compare to 2009. This decrease
reflects the downward trend in Stemra its royalties turnover.
79
Buma/Stemra
Breakdown of Stemra’s turnover(x € 1,000)
2011 2010
Biem Phonomechanical Rights/Central Licensing 12,564 16,684
Special Licensing/Private labels 6,319 6,306
Radio & TV Mechanical Rights 5,285 5,138
Mechanical Rights Online Licensing 1,835 515
Home Copy/Lending Rights 1,744 3,223
Mechanical Rights Abroad 4,391 3,796
32,138 35,662
Per year of collection:
2011
Older than 2008 8,873
2008 1,928
2009 2,087
2010 2,387
2011 23,463
38,738
Notes to the stemra balaNCe sheet as at 31 deCember 2011
Available for distribution by Stemra(x € 1,000)
2011 2010
Royalties turnover 32,138 35,662
Indivisible rights 1,294 2,348
Changes in royalties to be distributed 56 -1,020
Became available for distribution during the year 33,488 36,990
To be distributed at the beginning of the year 38,755 40,863
Available * 32,194 34,642
Distributed -32,211 -36,750
Royalties to be distributed at the end of the year 38,738 38,755
* Excluding indivisible rights which have already been accounted for in the opening balance sheet.
ANNUAL REPORT 2011
(11) other liabilities(x € 1,000)
31 December 2011 31 December 2010
Sister organisations abroad 2,603 3,063
Stemra affiliates and participants 1,103 1,555
Buma current account 389 -
Others 305 170
4,400 4,788
(12) Deferred income(x € 1,000)
31 December 2011 31 December 2010 *
Advances to Dutch industry 8,913 11,355
To be offset with industry and private labels 234 263
Holiday allowance/annual leave 94 102
Other liabilities and accruals 2 335
9,243 12,055
* Adjusted for comparison purposes
Advances to Dutch industryThis includes the invoiced advances on reproduction rights
to be settled by the Dutch industry for periods up to the
end of 2011. When the settlements are received from these
producers, the advances are deducted from the royalties
to be received.
81
Buma/Stemra
oFF-BALAnCe SheeT CommiTmenTS
Partially pledged bond portfolioIn accordance with the decision of the Board, at the end of
2002, part of the bond portfolio of Stichting Buma/Stemra
Obligatiefonds amounting to € 27.8 million was pledged as
security to ING Bank N.V. in connection with a cash facility
needed for normal operations. The cash facility is € 25.0
million. This facility was not used in 2011.
Long term financial liabilitiesThe financial liability with regard to the business
accommodation in Hoofddorp was prolonged until 31
December 2017. The rental obligation is incurred by Buma.
The combined annual rent for Buma/Stemra amounts to
€ 1.3 million, of which 40% is charged to third parties.
The rest is divided between Buma and Stemra on the
basis of 75% / 25%.
In the current composition, the annual amount for the
leasing of cars by Buma/Stemra is € 0.2 million. The liability
for terms longer than one year is € 0.4 million. The financial
liability for the rent of the printers was entered until
1 May 2013. The annual rent amounts to € 0.1 million. The
obligations with respect to the car lease and the printers
are incurred by Buma. The lease costs will be for 75% on
the account of Buma and for 25% on the account of Stemra.
Buma/Stemra entered into a contract allowing Accenture
to perform a large portion of Buma/Stemra’s back office
activities from 2007 until 31 March 2017. The resulting
financial liability amounts to € 15.3 million for the
remaining duration of the contract, assuming consistent
volumes. The costs of the back office activities are divided
on a 75% respectively 25% proportion for Buma and Stemra.
The off-balance sheet commitments of € 20.8 million can
be summarised as follows:
• less than 1 year: € 4.5 million
• between 1 and 5 years: € 14.5 million
• longer than 5 years: € 1.8 million
Related partiesRelated parties of Stemra Foundation are distinguished in:
Buma Association and the statutory board and the board
members of the Buma Association and Stemra Foundation.
More information about board members their
remuneration can be found in note 14. Regular transactions
under the exploitation of copyrights to board members or
to board members their related parties are not explicitly
explained in the financial statements.
Buma Association charges personnel, accommodation and
overhead costs on to Stemra Foundation. The charged on
to costs for 2011 amount to € 4,328,000. The charging on
to is based on cost price.
Notes to the stemra balaNCe sheet as at 31 deCember 2011
ANNUAL REPORT 2011
Budget 2012 Realisation 2011 Budget 2011
income
Administrative costs charged 3,000 3,134 3,910
Entrance fees and annual allowances
600 617 546
Other income - 50 -
3,600 3,801 4,456
expenses
Personnel expenses 3,360 3,251 3,280
Office and accommodation costs
450 479 496
Depreciation and amortisation expenses
150 134 140
Other expenses 2,155 1,833 2,175
6,115 5,697 6,091
operating result -2,515 -1,896 -1,635
Interest and dividends 1,372 1,444 1,482
Standard return¹ - 508 -
Financial result 1,372 1,952 1,482
Result on ordinary activities -1,143 56 -153
¹ The standard return consists of exchange results. Exchange results are not accounted for in the budget.
Notes to the stemra ProFit aNd loss aCCouNt For the year eNded 31 deCember 2011(13) BudgetBelow both the budgets for 2011 as 2012 are presented.
The real figures for 2011 are incorporated for comparison.
The standard return was not taken into account in the
budgets 2011 and 2012. The budget from ordinary activities
for 2012 is € 1.1 million negative compared to € 0.2 million
negative in 2011. This decline is due to a lower budgeted
administration costs charged.
Also, both the budgeted revenue distribution 2012 and
2011 is shown, included the actual turnover of 2011 for
comparison. The decrease in the budget 2012 compared
to the budget 2011 is particularly attributable to an
expected increase in the categories Phono-mechanical
rights Biem/Central licensing, which is the downward
trend of the past years.
For a further explanation of the budget we refer to the
director’s report
83
Buma/Stemra
Breakdown of Stemra’s turnover(x € 1,000)
Budget 2012 Realisation 2011 Budget 2011
Biem Phonomechanical Rights/Central Licensing
10,500 12,564 14,150
Special Licensing/Private labels
6,750 6,319 5,875
Radio & TV Mechanical Rights 4,800 5,285 5,161
Mechanical Rights Online Licensing
1,700 1,835 1,101
Home Copy/Lending Rights 250 1,744 3,630
Mechanical Rights Abroad 3,500 4,391 4,000
27,500 32,138 33,917
exPenSeS
(14) Personnel expenses(x € 1,000)
2011 2010
Salaries 836 826
Social security contributions 125 119
Pension contributions 79 78
Other personnel expenses 117 72
1,159 1,095
Charged/compensated to third parties 2,094 3,923
3,251 5,018
The combined costs of Vereniging Buma and Stichting
Stemra are divided in the ratio 75% / 25%. Directly
attributable costs are 100% accounted for in the entity’s
financial statements.
The average number of employees during the reporting
year was 22 employees (2010: 22 employees), which
correspond to an average of 18 FTE (2010: 20 FTE). This
amount does not includes employees charged on via Buma.
Notes to the stemra ProFit aNd loss aCCouNt For the year eNded 31 deCember 2011
ANNUAL REPORT 2011
The salary of the statutory directors Buma/Stemra is for
75% recognised in the financial statements of Vereniging
Buma en 25% in Stichting Stemra.
The work force (average number of FTE) can be divided into
various categories of staff:
General Affairs 4
Front Office 9
Back Office 5
18
Salary Stemra Board and statutory executive director Buma/Stemra for the year 2011(x € 1.000)
Stemra Board
Fee for 12 members of the Stemra Board (incl. expense allowance)
77
h.w. van der Ree
executive director
C. van Rij
Legal Affairs director
Statutory directors Buma/Stemra
Function
Full Time Equivalent 100% 100%
Type of contract indefinite duration indefinite duration
Contract in 2011 1/1 - 31/12 1/1 - 1/11
Fixed remunerations and fees 304 207
Variable remunerations and fees 52.5 15
Expense allowance 3 3
Pension charges 53 23
Social security costs 8 8
Termination payments - 700¹
¹ The termination payment is based on the clauses in the labour contract regarding the so-called ‘Kantonrechtersformule’ (County judge formula).
85
Buma/Stemra
(15) other expenses(x € 1.000)
2011 2010
Rent, Lease & Maintenance 2 1
Contributions 160 168
Consulting 1 -
Other overhead 4 4
167 173
Charged on by Buma 1,666 2,118
1,833 2,291
(16) Audit fees The following KPmg Accountants fees are charged on to the Stemra account. This is according to article 2:382a Bw
(x € 1.000).
2011
KPmg Accountants n.V.
other
KPmg network
Total
KPmg network
Financial statements audit 61 - 61
Other audit assignments - 2 2
Tax consultancy - 19 19
Other non-audit services - 8 8
61 29 90
2010
KPmg Accountants n.V.
other
KPmg network
Total
KPmg network
Examination of the Financial Statement
61 - 61
Other audit services - 5 5
Consultancy on tax issues - 17 17
Other non-audit services - 10 10
61 32 93
Notes to the stemra ProFit aNd loss aCCouNt For the year eNded 31 deCember 2011
ANNUAL REPORT 2011
(17) Financial result(x € 1,000)
2011 2010
interest income and other income
Fixed income securities
Interest received on bonds 663 923
Shares
Share dividend received 833 2,019
1,496 2,942
Mutations revaluation reserve
Withdrawals from revaluation reserve for the benefit of the financial result at a standard return
508 1,719
Withdrawals from revaluation reserve allocated to financial result
- 650
Other interest income and similar income 100 219
Total income from investments 2,104 5,530
Interest expenses and other costs -152 -709
1,952 4,821
Stemra its financial result decreased to € 2.0 million in 2011.
This 58% decrease is largely due to the economic recession,
but was enforced due to the adjustment in the distribution
of the financial result of BSO / BSA, between Buma and
Stemra compared to (2011: 79.9% / 20.1%; 2010: 63.5% /
36.5%). This decrease of 16.4% is due to a sell of parti-
cipation by Stemra to Buma worth € 69.5 million. This
consisted of the redemption of a loan in current accounts
from Buma to Stemra worth € 55.7 million, a clearance of
€ 13.3 million from BSA/BSO and an expansion of liquid
means of Stemra by € 0.5 million.
The adjusted distribution had an impact on the standard
return, which decreased with € 1.2 million. The received
interest and dividend decreased with respectively
€ 0.2 million and € 1.2 million.
87
Buma/Stemra
Stemra board
Mr L.A.J.M. de Wit Chairman a.i.
Mr R.D. van Vliet Vice-Chairman
Mr mr. E. Boom Secretary
Mr Drs. L.J. Deuss Board member
Mr J.M.F. Everling Board member
Mr J.H. Grevelt Board member
Mr J.N. Hamburg Board member
Mr A.J. Kraamer Board member
Mr A.L.L. de Raaff Board member
Mr drs. N.M. Walboomers Board member
Mr drs. H.O. Westbroek Board member
Director
Mr H.G. van der Ree Statutory executive Director
Amstelveen, 4 april 2012
Notes to the stemra ProFit aNd loss aCCouNt For the year eNded 31 deCember 2011
ANNUAL REPORT 2011
other iNFormatioN
To: The Board and the general meeting of Stichting Stemra
inDePenDenT AuDiToR’S RePoRTWe have audited the accompanying financial statements
2011 set out on pages on pages 67 to 89 of Stichting Stemra,
Amstelveen, which comprise the balance sheet as at 31
December 2011 and the profit and loss account for the year
then ended and the notes, comprising a summary of the
accounting policies and other explanatory information.
The board’s responsibility The board of the Foundation is responsible for the
preparation of the financial statements in accordance
with the accounting policies selected and disclosed by the
Foundation, as set out in notes to the financial statements.
Furthermore, the board is responsible for such internal
control as it determines is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s responsibilityOur responsibility is to express an opinion on these
financial statements based on our audit. We conducted our
audit in accordance with Dutch law, including the Dutch
Standards on Auditing. This requires that we comply with
ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on
the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk
assessments, the auditor considers internal control
relevant to the entity’s preparation of the financial
statements 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 entity’s
internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the
reasonableness of accounting estimates made by the
board, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
audit opinion.
opinionIn our opinion, the financial statements are prepared, in
all material respects, in accordance with the accounting
policies selected and disclosed by the Foundation, as set
out in notes to the financial statements.
Basis of accounting and restriction on distribution and useWe draw attention to notes to the financial statements,
which describes the basis of accounting. The accounting
policies used are selected and disclosed by the Foundation.
Our opinion is not qualified in this respect.
Amstelveen, 4 April 2012
KPMG Accountants N.V.
R.J. Groot RA
Profit appropriationFor Stemra, the result for 2011 will be deducted from
the royalties still to be distributed.
Based on an assessment of the reserve, it will be
determined to what extent funds will have to be added
to or deducted from the reserves. This movement will also
be credited or charged to the royalties to be distributed.
Proposal of the board of directorsAs shown in the financial statements, which we prepared
in accordance with Article 26 note 2 of the Articles of
Association, the board of directors proposes to add
€ 0.1 million of the positive result to the royalties to be
distributed and allocating.
The proposal has already been incorporated in the
2011 financial statements.
89
Buma/Stemra
Composition of the Board and the board of directors
ger
s P
ard
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Phot
o B
en h
ou
dij
k
ComPositioN oF the board aNd the board oF direCtors
A.j.h. van Berkel Publisher
m.A. Bremer Publisher
P.m. van Brugge Composer media music
h.C.m. de ClercqComposer serious music
L.A. Dikker Composer media music
m.w. mensinkPublisher
T.j.m. PetersComposer / Lyricist light music
drs. h.o. westbroek Composer / Lyricist light music
mr. e. BoomSecretary / Author
mr. drs. L.j. Deuss Publisher
j.m.F. everlingAuthor
j.h. grevelt Author
j.n. hamburg Author
mr. h. Kosterman Author
A.j. Kraamer Author
A.L.L. de Raaff Publisher
drs. n.m. walboomers Publisher
drs. h.o. westbroek Composer / Lyricist light music
Vacancy per 1-1-2012 Author
mr L.A.j.m. de witChairman a.i.
R.D. van VlietVice-chairman / Publisher
BoARD oF STemRA
DiReCToRS oF BumA/STemRA
h.g. van der Ree Chairman of the Board of Directors
drs. w.j. KetellapperDirector General Affairs
mr j.g.m. KroezeGeneral Counsel
As per April 1, 2012
BoARD oF BumA
mr L.A.j.m. de witChairman a.i.
mr. h. KostermanVice-chairman - Composer / Lyricist light music
A.L.L. de RaaffSecretary - Publisher
drs. S.A.A. AbdoelbasierComposer / Lyricist light music
j.A. van Bergen Lyricist
mr. h.j.w. eijkelenboomSecretary of the Board of Directors
ANNUAL REPORT 2011
STATuToRy PRoViSionS oF The BoARD AnD The BoARD oF DiReCToRS
ADDiTionAL joBS STATuToRy DiReCToRS
The current statutory provisions
regarding the Board and the board
of directors is as follows:
The board of Buma consists of twelve
or thirteen people. Twelve persons are
appointed from and by the members.
A thirteenth independent person
can be appointed by the Board as an
independent Chairman (amendment
in the General Assembly of 23 May
2011). The Board consists of:
A. eight members who are an author
as referred to as in Article 2, sub d,
of whom:
• four composers/lyricists light music;
• two composers of serious music;
• one lyricist;
• one composer media music;
B. four members who are publicists as
referred to as in Article 8, paragraph 1,
or who are in a management position
at a publishing company, as referred
to as in Article 9, paragraph 1.
C. Optional: one independent
Chairman to be named
by the Board.
The Board of Stemra consists of twelve
or thirteen people. Twelve persons are
appointed from the participants. A
thirteenth independent person can
be appointed by the Board as an inde-
pendent Chairman (amendment in
the General Assembly of 23 May 2011).
The Board consists of:
A. Seven (7) authors who are participants
or authors who are participants of a
participating company, who are chosen
by the participating authors;
B. Four (4) persons who are a participating
publisher or who possess a manage-
ment position at a participating publi-
shing company, and who are chosen by
the participating publishing companies;
C. One (1) person who is named by Buma;
D. An eighth (8) author if an independent
person is named by the Board as
independent Chairman.
This author is a participant or is an
author of a participating company,
chosen by the participating authors.
The board of directors of Buma and
Stemra consist of one or more people,
who are not a member/participant or
an affiliate of the Association or the
Foundation.
The full statutory provisions on the
Board are contained in Articles 13 to
20 of the Statute of Buma and Stemra.
The full statutory provisions on the
board of directors are contained in
Articles 21 to 23 of the Statute of
Buma and Stemra.
Board profileThe profile of the Board is based on
“what the board needs to function
well”, considering and taking into
account aspects like:
• The type of organisation;
• The development phase of the
organisation;
• The restructuring of governance.
The composition of the Board should
be generally in line with the contem-
porary governance standards and
codes of conduct. For the full profile
of the Board we would like to refer
to the Buma Stemra website.
h.g. van der Ree; Chief executive officer Buma/Stemra as per 1 May 2010
• Statutory Chairman of the board of directors Stichting
Buma/Stemra Aandelenfonds
• Statutory Chairman of the board of directors Stichting
Buma/Stemra Obligatiefonds
• Member of the board Stichting Buma/Stemra Deelneming
• Secretary/treasurer Stichting SCAN
• Member of the board Stichting Brein
• Secretary Stichting Buma Cultuur
• Vice chairman Vereniging VOICE
• Member of the board Stichting Beheer Rechten
Fingerprinting Database
• Member of the board Stichting Amsterdam Dance Event
93
Buma/Stemra
Drs. S.A.A. Abdoelbasier Composer/lyricist light music
• Employed at Royal Bank of Scotland• Chairman Stichting Consent• Commissioner and shareholder
of Financial Street VOF• Commissioner and shareholder
of Beaubury Trading Street VOF• Member of the board Palm• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
j.A. van BergenLyricist
• Freelance Author for theatre, tv, film, radio, song, print and advertising
• In partnership Van Bergen and Storimans/ Authors, Hoorn
• Advisor Music Theatre Fonds Podium Kunsten• Secretary/director Stichting Paul van
Vliet Academie • Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
A.j.h. van Berkel Publisher
• Managing Director Warner/ Chappell Music Holland BV.
• Member of the board BSA (Stichting Buma/Stemra Aandelenfonds)
• Member of the board BSO (Stichting Buma/Stemra Obligatiefonds)
m.A. BremerPublisher
• Managing Director Universal Music Publishing Benelux
• Member of the board BSA (Stichting Buma/Stemra Aandelenfonds)
• Member of the board BSO (Stichting Buma/Stemra Obligatiefonds)
P.m. van Brugge Composer media music
• Freelance composer• Senior lecturer composition at Codarts
Hogeschool voor de Kunsten Rotterdam• Freelance executive musician and conductor• Member of the board of the association
Dutchfilmcomposers.nl • Member of the board Quercus Music Foundation• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)
• Member of the board BSO (Stichting Buma/Stemra Obligatiefonds)
h.C.m. de Clercq Composer serious music
• Freelance composer• Freelance filmmaker (directing, camera, editing)• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
L.A. DikkerComposer media music
• Member of the board DZKA, the participants association
• Chairman MiMM, Music Institute Multimedia• Member of the board FFACE, Federation of
Film- and Audiovisual Composers of Europe• Dikker & Courbois B.V.
(publisher without publishing titles)• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
Kosterman Composer/lyricist light music
• Chairman of Palm• Manager Platform Makers• Secretary of Sena• Member of the board Stemra• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
m.w. mensink Publisher
• Director Strengholt B.V.• Managing Director and majority shareholder
VOC B.V.• Treasurer Vereniging Muziekhandelaren
en – uitgevers van Nederland • Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
T.j.m. Peters Composer/lyricist light music
• Freelance composer / lyricist• Freelance music producer• Music publisher• Owner/Managing Director NRGY Music BV • Partner BOEP B.V. (digital music distributor)• Member of the board Sena (sector Performers)
• Member of the board Vereniging Palm • Treasurer GONG• Treasurer STOMP
(independent record label NVPI)• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
A.L.L. de Raaff Publisher
• Managing Director and majority shareholder of entertainment company CTM B.V., including the Music publisher CP Masters B.V.
• and Imagem CV• Chairman Nederlandse Muziek Uitgevers
Vereniging• Production Harpengala• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
Drs. h.o. westbroek Composer/lyricist light music
• Copywriter• Performing artist• Columnist• Radio- and tv presenter at radio Veronica,
respectively RTV Utrecht• Joint manager Café-Restaurant
‘Stairway to Heaven’• Member of the board Stemra• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
mr. L.A.j.m. de witChairman of the board Buma/ Stemra a.i.
• Deputy judge criminal law, court of law Rotterdam
• Member of the board BSA (Stichting Buma/Stemra Aandelenfonds)
• Member of the board BSO (Stichting Buma/Stemra Obligatiefonds)
ComPositioN oF the board aNd the board oF direCtors
LiST oF ADDiTionAL PoSiTionS oF memBeRS oF The BoARD oF BumA AS PeR 1 APRiL 2012
ANNUAL REPORT 2011
LiST oF ADDiTionAL PoSiTionS oF memBeRS oF The BoARD oF STemRA AS PeR 1 APRiL 2012
mr e. Boom Author
• Composer/Copywriter• Musician• Managing Director and majority shareholder
Number One Music Holland BV, music publisher• Member of the board;-secretary Stichting Sociaal
Fonds Buma • Member of the board; secretary Vereniging PALM • Member of the board occupational pension fund
Stichting AENA• Teacher Johan Alsbach Stichting,
College for Music publishers• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
mr. drs. L.j. Deuss Publisher
• Director Albersen Verhuur B.V. and Deuss Holding B.V.• Chairman of the board Leo Smit Stichting• Chairman Stichting Output/Amsterdam Electric• Vice-chairman of the board VMN (Vereniging of
Music traders and - publishers in Nederland)• Member of the board/treasurer Stichting
Nederlands Muziek Instituut• Member of the board Stichting Sociaal
Fonds Buma• Member of the board WECOLEDO• Member of the board Reprorecht• Member Serious Music Bureau, ICMP• Honarary member International Association
of Music Information Centres• Advisor Cultural projects of the city The Hague• Freelance teacher Artez Conservatorium Arnhem• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
j.m.F. everlingAuthor
• Managing Director and majority shareholder SOB Audio Imaging
• Managing Director and majority shareholder Haramitsu Holding
• Member of the board BCMM• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
j.h. grevelt Author
• Owner HSG Music• Treasurer Vereniging PALM• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
j.n. hamburg Author
• Composer• Director and joint owner of Hamburg Music and
FutureClassicsMusic (publisher)• Chairman of Genootschap Nederlandse Componisten• Chairman of Stichting GeNeCo• Chairman of Paula Lindberg-Salomon Stichting• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
mr. h. Kosterman Author
• Chairman of PALM • Member of the board Platform Makers• Secretary of Sena• Vice-chairman Buma• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
A.j. KraamerAuthor
• Musician, composer, lyricist, performing artist, producer, publisher, conductor, arranger, technician
• Owner/Director NEW B.V. (New Efficient Wholesale B.V.), TED B.V. (The Electronic Designers), AKM B.V. (Ad Kraamer Music B.V.)
• Chairman HTR ( Stichting Heusdense TV & Radio station )
• Member of the board Vereniging PALM• Member of the board GONG (Genootschap
Onafhankelijke Nederlandse Geluidsproducers)• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
A.A.L. de RaaffPublisher
• Managing Director and majority shareholder of entertainment company CTM B.V. including Music Publishing CP Masters B.V. and Imagem CV
• Chairman Nederlandse Muziek UItgevers Vereniging• Production Harpengala• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
R.D. van Vliet Publisher
• Managing Director and majority shareholder of Cloud 9 Music B.V.
• Managing Director and majority shareholder of Cloud 9 Dance B.V.
• Managing Director and majority shareholder
Chrysalis Songs Benelux• Managing Director and majority shareholder
Dance Foundation B.V.• Managing Director and majority shareholder
Napith LTD (USA)• Managing Director and majority shareholder
The Right Track Music• Managing Director and majority shareholder
personal holding RVV MUSIC B.V.• Managing Director and majority shareholder
Hot Streak Music B.V.• Member of the board Buma Cultuur• Vice chairman Nederlandse Muziek Uitgevers
Vereniging• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
Drs. n.m. walboomersPublisher
• Managing Director/ATV Music Publishing B.V.• Managing Director/ATV Music Publishing
(Holding) B.V.• Managing Director/ATV Music Publishing
(Belgium) B.V.• Managing Director Bad Boys Production Music B.V.• Managing Director Double T Publishing B.V.B.A.• Managing Director Edition Musicales Unlce Dan
B.V.B.A.• Managing Director and majority shareholder
of Nelis Holding B.V.• Managing Director and majority shareholder
of Walboomers Publishing B.V.• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
Drs. h.o. westbroek Author
• Copywriter• Performing artist• Columnist• Radio- and tv presenter at radio Veronica
(respectively RTV Utrecht)• Joint manager Café-restaurant ‘Stairway to Heaven’• Member of the board Buma• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
mr. L.A.j.m. de witChairman of the board Buma/Stemra a.i.
• Deputy judge criminal law, court of law Rotterdam• Member of the board BSA
(Stichting Buma/Stemra Aandelenfonds)• Member of the board BSO
(Stichting Buma/Stemra Obligatiefonds)
95
Buma/Stemra
ColoPhoN
AddressVereniging Buma/Stichting StemraSiriusdreef 22-28
2132 WT Hoofddorp
Tel. +31 (0)23 799 79 99
Fax +31 (0)23 799 77 77
www.bumastemra.nl
Office The HagueLange Voorhout 86-12
2514 EJ Den Haag
Tel. +31 (0)70 310 91 09
Fax +31 (0)70 310 91 00
Disclaimer
This report has been translated
into English solely for the
convenience of the inter-
national reader. In the event
of conflict or inconsistency
between the terms used in
the Dutch version of the report
and the English version, the
Dutch version shall prevail,
as the Dutch version constitutes
the sole official document.
Typographical and printing
errors reserve. All amounts
quoted in this annual report
are in euros.
Chief editorFrank Helmink, Buma/Stemra
TextErik de Boer, Boardroom
Financial PR
editorAnnemarieke Noordhoff,
JCM Context
Concept & designLink Design, Amsterdam
PrintingW.C. Den Ouden bv,
Amsterdam
Photo CoverThé Lau and Lange Frans
perform ‘Zing Voor Me’
Photo: All Access Entertainment
Photos back cover from top to bottomAfrojack
Photo: Mike Breeuwer
Glennis Grace
Photo: All Access Entertainment
Roel van Velzen
Photo: All Access Entertainment
Nick en Simon
Photo: All Access Entertainment
Alain Clark
Photo: All Access Entertainment
jan
Sm
itPh
oto
All
Acc
ess
ente
rta
inm
ent
Some of the most-talked
about composers/lyricists in 2011