Annual Report 1998
Annual Report 1998 Annual Report 1998
Chainnan's statement continued From left to righc Now JB compiladon, Pa!l Mccaftney, 'Brir' award. Maria Callas, Joe Cockei Vanessa l"1ae, Blur, Thalia, Marcy PlaySround. Jetr Chang (top) and E la Saila Sola (below), show the rich d versity ol interna! onal talent across al musical Senres n ElYl Recorded Music. EMI started to see srrong Sains in sales and profits, particularly in Mexico. ArSentina and Chile. We also continued ro build our local roster and expand into new markets such as Bolivia. Ecuador, Paraguay. Peru and UruSuay. On the creative side, r.l'e have had one of our most successful years ever 32 releases sold in excess of one million units: seven of rhose albums sold over Ihree milliot units. Most encouratinS is the number of million-sellint arrisrs \\,ho are eirher new developing or newly signed to EMI rhis year; arrisrs such as Meredith Brooks. Robbie U/illiams, Foo Fighters and Dreams Come lrue, to name onl)/ a few The Verue. for example. have risen to being superstars in ayearwith the release o'i Urban Hymns a res(imony ro their ralenr and the abiliries of our A&R and inlernational marketing reams. Our aim is ro become the world's leadint music compaly and our busine\s srraregjes t support rhis objective. Ir is the inrenrion oI rhe Board and the nanagemeot team conlinually to improve our global business operarjons and to seek efficiencies to drive down our cost base. In May 1997, we announced a resrructuring ofour North American business, led by Ken Berry Chief Execurive Officer of EMI Recorded Music. Nor only have we made grear slrides in market share, but we have done so al rhe same rime as significanrly reducing our
cost basc. Throush out resuuclLrrins, \\'e ha\ie reached our tar.qeted cosl 5n! itl8s ,lncl cleated a srroil3cr. nore llexible orE,rrisatior in lhe process. 1he reorganisarion ol oLr Japanese business is proceeclil.< n cll n ith a ncrt teneratjon ol leadership nor'v in platr. A nunbcr of important 5teps \\'ere takt'n in the )'ear. Thc new managemenl l0(lm h.rs st.rrted to restruclutc thc companv lo it1( r( .1\( its market orlentation, palliculnrh in Inusic selection and ma rketins. A& R tea rn5 h,l! (' been rer.iralised. lhe rosler h.rs bcen reduced and energv i5 bcjnS Iocused on tho;i' artists rr rrl^ rneFrearcrl polenr.dllur '..,, ' \. In Europe, \\'e completecl reorganisations in E-\11 Electrola in German) and 1n E\11 Classics in the L K and r\ e conr inued to bulld upon our sllon.q prcscncc throushour rhe major markcls. Onr ol lhc mosr inlportant issues lacing Etr/il in Iurop('. 1r - ho!\,evcr. is lhe impacr ol corvertitg markets as a result ol the intlodu( lion ol lhc Euro. Our response is to build ,ln inlr.islruature which will realise the econonics ol s(.tl(' allorded by a single. iltegrated m.rtketpLace \,vhile ensurin.-c that \,\'e conlinut ('llc( liVel\ lo serve local music needs. Our manulacrurinS is :lalc ol lhc-arl in all mark..ts. but r'r-c continued lo push ottr planrs ro lou'er their costs cr,cn ltrrthcr Continuous improvemcnt in our dislribulion
- Page 1 and 2: Annual Report 1998 EMI purchases re
- Page 3: Chairman's statement Dear Sharehold
- Page 7 and 8: I would also like to welcome Kathle
- Page 9 and 10: Operating and financial review REVI
- Page 11 and 12: Bravo l9 comp lar on Million seller
- Page 13 and 14: operating and fnancial review aonti
- Page 15 and 16: srandard for environmental manageme
- Page 17 and 18: Earnings per share The adjusred ful
- Page 19 and 20: set up throughout the Group to corr
- Page 21 and 22: opereting and fimn.ial nyiw Goitinu
- Page 23 and 24: Corporate governance Cadbury Commit
- Page 25 and 26: Research and deYelopment Research a
- Page 27 and 28: Remuneration Committee rcport Ior r
- Page 29 and 30: The Execulive Dhectors retirement b
- Page 31 and 32: ordln.rr sharcs or l4p .i.h odrndy
- Page 33 and 34: ieneral maftcrs The Company hedges
- Page 35 and 36: Auditors'report Report of the Audit
- Page 37 and 38: lxcepnonal D€m€rged busin
- Page 39 and 40: Statement of total rccognised gains
- Page 41 and 42: to net cash inflow from Operatiq PI
- Page 43 and 44: Asso(iated undertakings Associated
- Page 45 and 46: By cless of business: !MI Music oth
- Page 47 and 48: 4. Fees to auditors Audit fees Othe
- Page 49 and 50: (i) Opcratlng exccptlonal ltcms EMI
- Page 51 and 52: 13. Fixed asset investments lnvestm
- Page 53 and 54: 14. lnvestm€ntsi own shares conti
Chainnan's statement continued<br />
From left to righc Now JB<br />
compiladon, Pa!l Mccaftney,<br />
'Brir' award. Maria Callas,<br />
Joe Cockei Vanessa l"1ae,<br />
Blur, Thalia, Marcy PlaySround.<br />
Jetr Chang (top) and E la Saila<br />
Sola (below), show the rich<br />
d versity ol interna! onal talent<br />
across al musical Senres n<br />
ElYl Recorded Music.<br />
EMI started to see srrong Sains in sales and profits, particularly in Mexico. ArSentina and<br />
Chile. We also continued ro build our local roster and expand into new markets such as<br />
Bolivia. Ecuador, Paraguay. Peru and UruSuay.<br />
On the creative side, r.l'e have had one of our most successful years ever 32 releases<br />
sold in excess of one million units: seven of rhose albums sold over Ihree milliot units.<br />
Most encouratinS is the number of million-sellint arrisrs \\,ho are eirher new developing<br />
or newly signed to EMI rhis year; arrisrs such as Meredith Brooks. Robbie U/illiams, Foo<br />
Fighters and Dreams Come lrue, to name onl)/ a few The Verue. for example. have risen to<br />
being superstars in ayearwith the release o'i Urban Hymns a res(imony ro their ralenr and<br />
the abiliries of our A&R and inlernational marketing reams.<br />
Our aim is ro become the world's leadint music compaly and our busine\s srraregjes<br />
<br />
<br />
<br />
<br />
t<br />
support rhis objective. Ir is the inrenrion oI rhe Board and the nanagemeot team<br />
conlinually to improve our global business operarjons and to seek efficiencies to drive<br />
down our cost base.<br />
In May 1997, we announced a resrructuring ofour North American business, led by<br />
Ken Berry Chief Execurive Officer of EMI Recorded Music. Nor only have we made grear<br />
slrides in market share, but we have done so al rhe same rime as significanrly reducing our
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