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STIM is one of the leading performing rights societies in the World and has more than 71,000 affiliated members. Read more: http://www.stim.se/en/
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| ÅRET 2012
Stands for the Swedish Performing Rights Society
Is an economic association that is owned by thosewho create music and by music publishers
Is a non-profit organization
Works on behalf of its registered authors and music publishers
Defends their economic interests as defined in the Swedish Copyright Act
Also works on behalf of corresponding organizations in other countries
Issues licenses to those who wish to use and distribute music
Collects the licensing fee
Distributes royalties to individual authors and their music publishers
Promotes Swedish musical culture
STIM in numbers 3
A word from the CEO 4
The STIM process
– from license to distribution
6
Distributions in 2012 were
at an all-time high
8
STIM soon as big as Skellefteå 12
Swedish composers' successes are paving
the way for global collaboration
14
Scholarships 17
Multi-faceted festival year
–and sold-out arenas
18
STIM - promoting the Swedish music culture 20
Streamed music increasing in popularity
– and now TV is next
22
Music choice important for business 24
Gender equality organization
– equipped for the future
26
The STIM sphere 28
STIM committees 32
Administration Report 36
Notes 42
2012ANNUAL REPORT
2012 | STIM ANNUAL REPORT
SEK 8.1 MILLION ALLOCATED TO SCHOLARSHIPSNUMBER OF REPORTED WORKS
WTIH AT LEAST ONE STIM-AFFILIATED AUTHOR
1,223,058FOUNDED 1923
STIM
IN NUMBERSTOTAL OPERATING INCOME
IN SWEDEN AND ABROAD
SEK 1.5 BILLION
INCOME FOR
ONLINE PERFORMANCES INCREASED BY
NUMBER OF STIM MEMBERS
71,291AN INCREASE
OF 40% IN SEVEN YEARS
43.4%
COMPARED
TO 2011
3
2012 | STIM ANNUAL REPORT
Our affiliates make the decisions in STIM. This is a fantastic strength
and has contributed to making STIM a dynamic organization. One
piece of particularly good news is that STIM's authors and music
publishers developed strategies at an early stage for how the use of
music on the Internet can be licensed. In 2012 we reaped the benefits
of this long-term project.
One of the important guiding principles for STIM's owners has been
to be receptive to change. The ability to utilize technological develop-
ments and changes in the market to benefit our members has been
very important in recent years. Benefits for our members in practice
also mean good, simple solutions for music users. The initiatives STIM
has taken online are examples of this.
It is important that we provide a valuable service and create added
value for both rightsholders and licensees. Our focus is to make the
administration of music rights simple, effective and transparent.
In 2012 STIM experienced:
• continued international successes for our authors
• strong growth in the online market
• revenue growth in other important areas
• intensive development of national and international licensing
systems
• strong focus on international cooperation projects
• major involvement in EU's work with the Collective Management
Directive
• creation of new methods for promoting the Swedish music culture
and the promotion of Swedish music
• work to reform STIM's distribution rules
• move of STIM's office and the establishment of ”The STIM Building”
STIM-licensed revenue increased in total by more than 8 percent. Reve-
nue from the online area increased by more than 43 percent. Revenue
from TV decreased by more than 6 percent, which is due to the fact
that in 2011 this item included unusually high retroactive revenue. The
markets for background music and live music are showing an increase
of more than 12 percent. Foreign revenue decreased by 1 percent due
to foreign exchange rates and the restructuring of distribution proce-
dures at some collecting societies. Mechanical reproduction revenue
continued to fall, but the curve is not as dramatic as many people
expected. In 2012 STIM's revenue from NCB decreased by 10 percent.
The total costs for STIM's operations as a whole increased 4 percent.
However, a comparison of total operating income to total operat-
ing costs shows that STIM's administrative overhead ratio is basically
unchanged at just under 11 percent. The Swedish STIM distributions to
authors and music publishers increased by almost 10 percent.
Overall, 2012 was a good year for STIM. However, several challenges
are waiting just around the corner. We would like to:
• develop, streamline and improve the licensing in Sweden
• develop and establish international licensing and administration
cooperations
• create even better services for our affiliates
• finalize in 2013 the reforms to STIM's distribution rules
This means that 2013 will be a year when many important initiatives
fall into place. I am convinced that STIM will continue to welcome
change, and I look forward to participating in the development of
collective rights management.
Kenth Muldin
CEO
STIM is an organization for authors and music
publishers. We exist so that authors are paid
when their music is used. After deducting costs,
all revenue is sent to the authors and music
publishers. STIM is a genuine not-for-profit
organization.
A FEW WORDS FROM CEO
KENTH MULDIN
4
2012 | STIM ANNUAL REPORT
5
The Copyright Act provides the creator of a musical work the copyright
to that work. This person is entitled to decide whether the musical work
is to be performed in public, recorded, copied or otherwise distributed,
and to grant permission to do so. The act establishes entitlement to
economic compensation.
By becoming a registered member of STIM, authors and their music
publishers instruct STIM to manage their economic rights, as laid down
in the law on copyright.
Those who become registered members of STIM notify details of their
musical works. These are documented by being entered in the works
register with details of current ownership shares. Information about
foreign musical works is also entered in the works register.
STIM licenses the works, collects the royalties due and then pays them
to the authors and their music publishers on an individual basis. The
amount of the royalty is based on the tariffs or agreements stipulated
in the signed agreement.
STIM instructs its counterparts in other parts of the world to defend the
economic rights of STIM-affiliated members in their respective territo-
ries. The payment is sent to STIM for onward distribution to the STIM-
affiliated members. In the same way, STIM represents rights to foreign
music performed in Sweden.
Payments to authors are calculated on the basis of reports about
which music has been played, recorded, downloaded or streamed.
The information in the reports is linked to the details in the works regis-
ter on who at the time owns the rights to the musical works used.
The royalties are distributed according to STIM's distribution rules and
paid to the musical works' creators and their publishers, as well as
to corresponding foreign organisations. These organisations subse-
quently forward remuneration to their members.
THE STIM SYSTEM FROM LICENSE
TO PAYMENT
6
2012 | STIM ANNUAL REPORT
MUSIC PUBLISHERS
REPORTING WORKS WITH BREAKDOWN OF
SHARES WITHIN WORKS
MEMBERSHIP APPLIES TO PUBLIC PERFORMANCE AND
RECORDINGS (MECHANICAL REPRODUCTION)
INTERNET/MOBILE
MUSIC REPORTS FROMONLINE MUSIC SERVICES
DIRECTORY OF WORKS
PUBLICPERFORMANCES
DISTRIBUTION
MUSIC REPORTS FROMARTIST OR ORGANIZERS
CORRESPONDINGORGANIZATIONS IN OTHER COUNTRIES
IN SWEDEN
OF MONEY BETWEEN WORKSAND RIGHTSHOLDERS
CORRESPONDING ORGANIZATIONS IN OTHER COUNTRIES
INFORMATION ABOUT WORKS FROM OTHER
RIGHTSHOLDERS
AUTHOR
MEMBERSHIP APPLIES TO PUBLIC PERFORMANCE AND RECORDINGS (MECHANICAL
REPRODUCTION)
RECORDINGS
IDENTIFICATIONMATCHING
PAYMENT IS MADESEVERAL TIMES A YEAR
PRODUCTION CONTENT TO WORKS FROM THE PRODUCER
CORRESPONDING ORGANIZATIONS IN OTHER COUNTRIES
(MECHANICAL REPRODUCTION) IN SWEDENPERFORMANCES/MECHANICAL
REPRODUCTIONS
PAYMENT
Money in
Money out
7
2012 | STIM ANNUAL REPORT
0
100
200
300
400
500
600
700
800
+9.5%
+20.2%
+7.2%
+8.3%
0
50
100
150
200
250
300
+7.1%
-19.1%
-14.9%
-10.4%
DISTRIBUTIONS IN
2012 WERE AT AN ALL-TIME HIGH
Performance revenue, Sweden, SEK million Mechanical reproduction revenue, SEK million
The core of STIM's assignment is to pay money to the rightshold-
ers whose music is played in public. The organization has been very
successful in this area for a long time.
In 2012 STIM paid almost SEK 1.3 billion, which is more than it has ever
paid before.
The largest revenue increase in 2012 was in the Online and new media
area, which as a whole increased by SEK 49 million, or 43 percent.
Revenue in the Live and Background Music areas also increased sharply
during the year.
Record sales continue to fall, but at a slower rate. In 2012 revenue
related to record production landed at approximately the same level
as revenue from Online and new media.
A prerequisite for STIM's continued success is, naturally, the attrac-
tive repertoires that we represent. With this as support, we continue
to increase the number of customers in the traditional market,
while at the same time we are working with industry representa-
tives to find systems for the new areas of use for music that are
constantly appearing.
But it is not sufficient to merely increase market coverage. Working
consistently to minimize the administrative costs has become an
increasingly important goal for collecting societies. In order to be able
to compare the efficiency of different organizations, we use a compari-
son figure, i.e. the administrative overhead ratio. This describes the
relationship between the administrative costs and total revenue.
STIM's administrative overhead ratio in 2012 was the same as in 2011,
just under 11 percent, which in an international comparison puts STIM
among the most efficient collecting societies in the world.
8
2012 | STIM ANNUAL REPORT
Mechanical reproduction
11.2%Radio and TV
23.5%
Live music 8.2%
Background music 10.6%Online and
new media 11.0%
Private copying levy0.7%
Other revenue 1.8%
International30.1%
International distributed
by STIM 2.9%
Foreign music with STIM affiliated sub-publishers
25%
Foreign music39%
Music with STIM affiliated authors and music publishers
36%
Total revenue per revenue category Payment of performance revenue, Sweden 2012
STIM's profit before distribution, SEK million 2012 2011 %
Performance in Sweden 785.1 724.8 8.3%
Performance abroad 443.0 457.5 –3.2%
Performance abroad for distribution by STIM 42.8 34.9 22.6%
Other revenue 36.0 40.8 –11.8%
Total revenue for performances 1,306.9 1,258.0 3.9%
Operating costs –160.4 –154.3 4.0%
Distributable revenue for performances 1,146.5 1,103.7 3.9%
Mechanical reproduction 165.5 184.8 –10.4%
STIM 's profit before distribution 1,312.0 1,288.5 1.8%
Distribution of STIM's profit, SEK million 2012 2011 %
Royalties for performances in Sweden 626.7 571.7 9.6%
Promotion of Swedish music 32.6 37.2 –12.4%
Scholarships 8.1 7.8 3.8%
Royalties for performances abroad 443.0 457.5 –3.2%
Royalties for performances abroad that are distributed by STIM on behalf of a third party 36.1 29.5 22.4%
Royalties for mechanical reproduction 165.5 184.8 –10.4%
Distribution of STIM's profit 1,312.0 1,288.5 1.8%
9
2012 | STIM ANNUAL REPORT
1 Concerts Publicly subsidized concerts with contem-porary classical music
total of all of the cat-egory's music reports
Grading large/small concert
7.1 (5.6) 5.4 (4.3) 34 (35) 16 (14) 50 (51)
2 Church concerts total of all of the cat-egory's music reports
grading 2.1 (1.7) 1.6 (1.3) 49 (55) 13 (9) 38 (36)
4 Dance - discothèque total of the category's statistically selected music reports
grading 9.6 (7.5) 7.3 (5.7) 36 (33) 27 (26) 37 (41)
5 Other live music, loggedconcerts and other performances with reporting
per music report grading 66.6 (56.5) 50.8 (43.1) 60 (60) 17 (16) 23 (24)
6 Other live music, unlogged
based on information from the Other live music category
in accordance with analogous data
35.9 (30.7) 27.4 (23.4) 69 (63) 12 (14) 19 (23)
7 Theatre music total of all of the cat-egory's music reports
grading 0.7 (0.6) 0.5 (0.5) 20 (25) 32 (27) 48 (48)
8 Background music, loggedRecorded background music
per music report and total of all of the cat-egory's music reports
grading 2.1 (1.9) 1.6 (1.4) 42 (62) 24 (12) 33 (26)
9 Background music, unlogged
based on data from SR, commercial radio, TV and record sales/downloads in Sweden
in accordance with analogous data
135.8 (128.2) 103.6 (97.9) 39 (37) 25 (26) 36 (37)
10 Public service radio total of all of the cat-egory's music reports
grading 50.7 (49.8) 38.7 (38.0) 36 (36) 21 (21) 43 (43)
11 Public service TV total of all of the cat-egory's music reports
grading 70.7 (82.9) 54.0 (63.3) 29 (31) 20 (20) 51 (49)
12 Commercial radio total of all of the cat-egory's music reports
grading 27.2 (27.4) 20.8 (20.9) 28 (26) 33 (35) 39 (39)
13 Commercial TV total of all of the cat-egory's music reports
grading 194.2 (201.5) 148.2 (153.8) 15 (16) 28 (29) 57 (55)
14 Community radio total of the category's selected music reports and analogous data from SR, P4 local radio, respectively
grading and in accord-ance with analogous data
3.4 (3.3) 2.6 (2.5) 38 (38) 25 (25) 37 (37)
15 Cinema, Movie, Theaters
per music list and movie
17.3 (14.7) 13.2 (11.2) 12 (18) 33 (32) 55 (50)
16 Online and new media, logged
total of all of the cat-egory's music reports
grading 153.9 (106.9) 139.5 (97.1) 45 (46) 28 (26) 27 (28)
19 Online and new media, unlogged
based on data from SR, SVT and commercial radio
in accordance with analogous data
7.7 (5.7) 6.9 (5.1) 30 (30) 27 (28) 43 (42)
17 Private copying levy based on data from SR, TV and record sales/downloads in Sweden
in accordance with analogous data
10.2 (7.4) 10.2 (7.4) 58 (58) 28 (28) 14 (14)
18 Library levy based on borrowing statistics from libraries
2.5 (2.5) 2.5 (2.5) 100 (100) 0 (0) 0 (0)
20 International perfor-mance royalties
443.0 (457.5) 443.0 (457.5) 47 (41) 53 (59) 0 (0)
21 International perfor-mance royalties, for distribution by STIM
42.8 (34.9) 36.1 (29.5) 15 (15) 48 (44) 37 (41)
98 Mechanical reproduction rights
165.5 (184.8) 165.5 (184.8) 39 (35) 61 (65) 0 (0)
DISTRIBUTION CATEGORY PAYMENT TO BE DISTRIBUTED
PAYMENT DETERMINED BY NATURE OF PERFORMANCE / WORK
AMOUNT COLLECTED SEK MILLION
AMOUNT DISTRIBUTEDSEK MILLION
% MUSIC WITH STIM AFFILIATED AUTHORS AND MUSIC PUBLISHERS
% FOREIGN MUSIC WITH STIM AFFILIATED SUB-PUBLISHERS
% FOREIGN MUSIC
Distribution per category of revenue
10
2012 | STIM ANNUAL REPORT
0
200
400
600
800
1000
1200
1400
Mechanical reproduction
Performance
Profit, SEK millionKlara and Johanna
Söderberg in First Aid Kit
11
During 2012, 3,088 authors and 142 music publishers registered
with STIM. At year-end, STIM had 71,291 affiliates, of which 68,273
were authors and 3,018 were music publishers. This means that
there are just as many members in STIM as there are residents in
Skellefteå Municipality.
The breakdown between men and women is roughly the same as
before, i.e. just under 20 percent women and just over 80 percent
men. However, this trend appears to be changing – of the new affili-
ates in 2012, the share of women was slightly higher, more than 23
percent. A number of activities are being conducted among STIM's
affiliates to raise an interest in music creation among young women
and to include women's music to a larger extent in the repertoire of
the concert institutions.
It is worth noting that foreign rightsholders continue to register with
STIM – both authors and music publishers. At the end of 2012, STIM
had more than 1,000 registered rightsholders from 64 countries
throughout the world. This shows that STIM is a strong international
player in the competition for music rights.
Stim Music Expo, the annual music industry trade show, was held as
usual in October. This fully scheduled all-day event pulled around 700
people and filled Hotel Rival. Based on the survey filled in by the visi-
tors, this year's Stim Music Expo was also much appreciated. During
the day, international hit writer Johan ”Shellback” Schuster won
STIM's award, the Platinum Guitar. The Platinum Guitar has been
awarded since 2004 to a STIM-affiliated author who has experienced
exceptional success during the year.
In December, the STIM scholarships were handed out at a ceremony at
The STIM Building. The objective of STIM's scholarships is to encourage
the broad, professional creation of music in all genres.
The number of STIM afffiliates has increased by
almost 33% in the past five years. The number of
new members in 2012 was also strong.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000 Publishers
Authors
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
Number of affiliates Number of works with at least one STIM affiliated author
STIM SOON
SKELLEFTEÅas big as
12
2012 | STIM ANNUAL REPORT
2012 | STIM ANNUAL REPORT
13
During large parts of 2012, Swedish song writers were completely
dominant on the top half of the Billboard chart, and on many other
charts around the world. Johan ”Shellback” Schuster and Max Martin
are topping the charts week after week, sometimes with other STIM-
affiliated songwriters, such as Carl Falk, Rami Yacoub, Jörgen Elofson
and Avicii.
Max Martin was named Pop Music Songwriter of the Year in the spring
of 2012 by American performing rights organization ASCAP. This is the
fifth time this songwriter and producer won this award – he won in
1999, 2000, 2001 and 2011.
In the 2012 Eurovision Song Contest, the Swedish entry, which was
written by STIM members Thomas G:son and Peter Boström, took
home the coveted first prize. But this winning song was not the only
one that had a link to STIM. STIM-affiliated songwriters were behind
no less than nine of the entries in the finale.
Swedish music exports are much more than just top hits on the
charts. Swedish metal has a broad, dedicated international following
with bands such as Opeth, In Flames and Sabaton. Under the inter-
national definition of jazz/folk, artists such as Lisa Ekdahl, Nils Land-
gren, Oddjob and First Aid Kit continue to attract attention outside of
Sweden. Singer-songwriters such as Lykke Li and Ane Brun have made
a name for themselves outside of Sweden.
In terms of art works, the music of STIM affiliated composers made
an impression on international stages in 2012. For example, an entire
festival in Toronto was dedicated to the music of Anders Hillborg at the
beginning of the year. At the same time, Rolf Martinsson's successes
in Europe continued. A younger generation of composers is being
played regularly in other countries, for example Tobias Broström and
Esaias Järnegard, whose music was performed in both Europe and the
USA in 2012. The STIM affiliated composers Hanna Hartman and Klas
Torstensson, both of whom live abroad (Germany and Holland, respec-
tively) have created a following not only in their home countries but
also internationally.
The reason Swedish music is so successful around the world is partly
structural, i.e. popular movements, municipal music schools and a
musical infrastructure. An openness to influences from other cultures
and the creative self-image that was formed, for example, by the
Cheiron studio's successes in the 1990s, have also played an impor-
tant role. Just like in Finland, where successful conductors are contin-
uously emerging, the Swedish music marvel has become the norm.
There has been no indication that the successes will abate, and in fact
the opposite holds true.
The positive image of Sweden as a music nation combined with
Sweden's strong IT skills and long tradition of cooperation has created
excellent conditions for STIM's international work. Today, STIM is
one of the most influential copyright organizations in the world and
Songs with the most foreign revenue in 2012 (with at least one STIM-affiliated author)
Title Author ArtistF**KIN PERFECT MARTIN, M/SHELLBACK/MOORE, A PINK
RAISE YOUR GLASS MARTIN, M/SHELLBACK/MOORE, A PINK
DJ GOT US FALLING IN LOVE KOTECHA, S H/PEREZ, AC/MARTIN, M/SHELLBACK USHER feat. PITBULL
I-I-I WANNA GO-O-O MARTIN, M/SHELLBACK, J/KOTECHA, S H BRITNEY SPEARS
TILL THE WORLD ENDS MARTIN, M/GOTTWALD, L/SEBERT, K/KRONLUND, A BRITNEY SPEARS
MOVES LIKE JAGGER LEVINE, A/MALIK,A/LEVIN, B/SHELLBACK MAROON 5
LAST FRIDAY NIGHT (T.G.I.F.) MC KEE,B L/GOTTWALD, L/MARTIN, M/PERRY KATY KATY PERRY
ET PERRY KATY/GOTTWALD, L/COLEMAN, J E/MARTIN,M KATY PERRY
DANCING QUEEN ANDERSSON, B/ULVAEUS B/ANDERSON, S ABBA
ON THE FLOOR PEREZ, A C/HAJJI, B/HAMID, K V/JANNUSI, A/KHAYAT, N/HERMOSA GONZALES, G/HERMOSA GONZALES, U/TEDDY, S JENNIFER LOPEZ
Swedish music successes are continuing unabated. This means that
STIM can take a leading position in an international context – in
terms of both collaborations and competition.
SWEDISH COMPOSERS' successes are paving the way for GLOBAL COLLABORATION
14
2012 | STIM ANNUAL REPORT
is represented in basically all of the international contexts where the
music market of the future is being formed.
One example of a successful and innovative international cooperation
is ICE, International Copyright Enterprise AB. The company is currently
owned by STIM and our British counterpart, PRS for Music. ICE and
the international cooperative FastTrack received the assignment to
deliver the technical platform for the global repertoire database, GRD.
The purpose of this database is to facilitate the online dissemination
of music and at the same time be able to quickly handle payments
to rightsholders.
Through the ICE cooperation, STIM is in all material respects ready to
work in accordance with the regulations the EU Commission proposed
last summer for all European performing rights organizations. Before
the Directive can be adopted, it must be approved by the EU Council
and the European Parliament.
At the beginning of 2012, STIM presented its new technological solu-
tion, the WOI portal, which enables the simultaneous licensing of
rights in multiple territories. During the year STIM also negotiated an
agreement with the influential publisher, Kobalt Music Group. In Janu-
ary 2013, STIM and Kobalt announced that they had jointly started a
company, Kobalt STIM Aggregated Rights AB, to license rights for multi-
territorial, digital music services.
STIM's foreign revenue fell by 1 percent between 2011 and 2012. The
cause behind this was not that Swedish music was played less in other
countries, but rather primarily that other performing rights organiza-
tions changed their payment periods.
The future for STIM as an international player – both in terms of collab-
oration and competition – is bright. And there have not been any indi-
cations that its successes will abate.
John Eriksson, Björn Yttling and
Peter Morén in Peter Bjorn and
John
15
Countries Received Of which, revenue from sub-published foreign music
Of which, revenue from Swedish music abroad
Paid
Finland 78,088 67,979 10,109 5,326
Denmark 133,042 114,978 18,065 10,875
Iceland 1,810 1,627 184 0
Norway 63,330 48,539 14,791 5,311
Estonia 1,542 1,233 309 100
Latvia 4,303 3,661 643 42
Lithuania 3,525 3,109 416 121
Total Nordic & Baltic 285,641 241,126 44,515 21,776
Belgium 3,853 3,853 513
France 7,305 7,305 10,035
Greece 371 371 158
Ireland 1,561 1,561 720
Israel 726 726 82
Italy 5,125 5,125 2,866
Netherlands 15,914 15,914 2,882
Poland 2,369 2,369 254
Portugal 449 449 65
Romania 427 427 106
Russia 977 977 218
Switzerland 4,075 4,075 1,314
Slovakia 333 333 30
Spain 4,664 4,664 2,975
Great Britain 21,851 21,851 46,858
Czech Republic 608 608 192
Germany 19,480 19,480 7,117
Hungary 1,335 1,335 96
Austria 3,274 3,274 746
Rest of Europe 542 542 165
Total Europe (excl. Nordic & Baltic)
95,239 0 95,239 77,391
Argentina 653 653 489
Australia 6,892 6,892 4,485
Brazil 2,575 2,575 704
Hong Kong 216 216 12
Japan 7,277 7,277 457
Canada 5,574 5,574 6,865
Korea 730 730 19
Mexico 478 478 103
Singapore 504 504 0
South Africa 1,659 1,659 202
USA 35,568 35,568 119,336
Other 1,761 1,761 99
Total Rest of world (excl. Europe, Nordic & Baltic)
63,888 0 63,888 132,771
TOTAL 444,768 241,126 203,641 231,938
Received Of which, revenue from sub-published foreign music
Of which, revenue from Swedish music abroad
Paid
77,014 66,320 10,694 4,895
140,026 120,729 19,297 11,970
2,323 2,136 187 214
80,179 60,184 19,995 5,613
2,308 2,075 233 170
2,230 2,059 171 53
3,700 3,281 419 93
307,780 256,784 50,996 23,009
3,708 3,708 410
11,521 11,521 11,532
508 508 106
1,060 1,060 459
361 361 146
4,092 4,092 1,879
8,873 8,873 2,202
2,713 2,713 337
310 310 104
1,335 1,335 97
712 712 318
3,503 3,503 687
392 392 58
3,763 3,763 1,714
23,121 23,121 43,046
764 764 272
20,008 20,008 7,530
1,679 1,679 104
2,780 2,780 683
843 843 227
92,046 0 92,046 71,910
237 237 394
7,276 7,276 4,498
2,753 2,753 161
163 163 11
6,344 6,344 502
5,390 5,390 6,484
548 548 38
666 666 232
366 366 25
2,150 2,150 233
33,302 33,302 110,511
839 839 242
60,033 0 60,033 123,333
459,859 256,784 203,075 218,252
2012 (SEK thousand) 2011 (SEK thousand)
STIM - BALANCE OF PAYMENTS WITH INTERNATIONAL COLLECTING SOCIETIES 2011 AND 2012
16
2012 | STIM ANNUAL REPORT
Every year, STIM earmarks three per cent of the STIM members' Swedish
royalties for scholarships. Only STIM affiliated authors are eligible to apply
for these scholarships, which are awarded once a year. Of the scholarship
funds for 2012 totaling SEK 8.1 million, SEK 4.7 million was allocated to STIM
scholarships and SEK 3.4 million was split equally between FST and SKAP.
Ahovalli, Jimmy
Almgren, Karolina
Almgren, Malin
Almgren, Vera (to be shared with Jack Almgren and Linnea Eriksson)
Antilla, Kristian
Bao, Noonie
Beijbom, Daniel
Benkahla, Nadir
Bergmark, Johannes
Bertilsson, Andreas
Blomdahl, Tony
Bromander, Vilhelm
Carlberg, Martin
Cervin, Billy (to be shared with Joacim Nilsson, Hugo Mårtensson and Elias Jungqvist)
Coldheart, Mia
Correia de Verdier, Leo
Costéus, Henrik (to be shared with Daniel Cvetcovic)
Danell, Daniel
Devercerski, Alina (to be shared with Christoffer Wikberg)
Diffner, Fredrik (to be shared with Alexander Ceci Forsberg, Oliver Boson and Arthur Acking) Duncanson, Johan
Ekelund, Magnus
Eklöf, Andreas
Eriksson, Anna
Evileye, Ida
Moin, Mahan Fathi
Flyckt, Rasmus (to be shared with Emil Gustafsson)
Force, Klara
Grönberg, Niklas
Gustafsson, Emelie
Hedberg, Johan
Hellstrand, Staffan
Hogman, Sanna
Humlebo, Oskar
Hylander, Tobias
Högberg, Fredrik
Johansson, David
Johansson, Jäje
Johansson, Natalie
Johansson, Ove
Jutterström, Johan
Jäger, Mio (to be shared with Maria Säfstrand, Elizabeth Andrews and Sandra Randi Stensen)
Kadic, Adna
Kallerdahl, Fabian
Karlsson, Nalle
Karlsson, Sofia
Krafman, Johan
Küchen, Martin
Larsson, Jeremia
Larsson, Karl
Lidbo, Håkan
Lindebergh, Mikael
Lindfors, Elin (to be shared with David Lehnberg)
Lindsjö, Clara
Lindström, Niclas(to be shared with Daniel Gustafsson, Jakob Gustafsson and Daniel Svensson)
Livebrant, Sofie
Ljungqvist Henrik (to be shared with Otto Wallgren)
Lundin, Linus (to be shared with Emil Lundin, Oscar Rydelius and Fredrik Johansson)
Löfberg, Anders
Magnusson, Per
Molavi, Saeed
N’Diaye, Mary
Abdelaziz, Karima Nait
Nilsen, Charlotta
Nordström, Fredrik
Nurulla-Khoja, Farangis
Olsson, Ida
Olsson Bauer, Axel
Persson, Britta
Persson, Cecilia
Richter, Suvi (to be shared with Julius Duhs) Rintamäki, Jukka
Risberg, Mattias
Risberg, Susanna
Rosen, Gustav
Rydvall, Erik
Rylander, Lisen
Rådström, Victor
Samuelsson, Marie
Sandell Billström, Olivia (to be shared with Lisa Grotherus, Erik Boman, Timmy Fredriksson, August Persson and Eric Ahlqvist)
Shah, Rebin
Sidén, Eva
Sigvardsson, Elin Ruth
Simmerud, Patric
Stackenäs, David
Staern, Benjamin
Stolt, Benjamin
Sundemo, Frida (to be shared with Joel Humlén)
Svensson, Fabian
Svensson, Johan
Söderberg, Johanna
Söderberg, Klara
Sörling, Isabel
Tarrodi, Andrea
Thurfjell, Lovisa (to be shared with Lisa Löfgren, Canan Rosén and Lotta Wennström)
Tomner, Martina
von Hofsten, Anders
Warelius, Dennis (to be shared with William Turner, Christoffer Apell, Patrik Larsson and Niclas Staberg)
Wennström, Niklas
Westin, Maja (to be shared with Lina Westin)
Wicked, Nicki
Wärme, Sabina (to be shared with Amanda Lindgren)
Zethraeus, Leo
Zetterlund, Magnus
Åberg, Johan
Åhlund, Lars
Öberg, Linn
SCHOLARSHIPS
17
2012 | STIM ANNUAL REPORT
Many of the visitors to the summer's music festivals got wet and cold.
But this is not to say that 2012 was a lost year for the festival promoters.
The EDM festival, Summerburst, which had its premier in 2011 as a
one-day festival in Stockholm, expanded to two days and also estab-
lished itself in Gothenburg. A number of new festivals were also held
throughout the year. The three-day Stockholm Music and Arts festi-
val in August sold out quickly. The new Öresund Festival, a coopera-
tion between music venues in Malmö and Copenhagen, presented a
broad, two-day program within the electro-soul, reggae, experimental
jazz and indie rock genres. A number of musical events were arranged
at Hesselby Slott outside of Stockholm during the year, but the one
that received the most attention was Stockholm Folk Festival, a two-
day festival in August that offered an ambitious program of folk and
world music.
German festival promoten FKP Scorpio, announced that in June 2013
it will be holding a giant festival in Bråvalla outside of Norrköping. FKP
Scorpio also promotes the Hultsfred festival (since 2011) and Getaway
Rock Festival (since 2012).
STIM continues to focus on its communication with the festival promot-
ers, in part through a regular newsletter but also through personal
contact with festivals throughout Sweden.
At the end of the year, STIM was in discussions with Sweden Rock Festival.
These discussions resulted just a few days into 2013 in the resolution
of a dispute that had been going on for several years. The parties were
thus able to withdraw their claim from the court.
Performances in large arenas continue to draw large crowds, not in
the least for EDM. Swedish House Mafia said goodbye to their Swedish
fans with three sold-out concerts in the newly opened Friends Arena in
Solna. Tim ”Avicii” Berg also sold out three arena shows in Stockholm.
In addition to the large shows that were held at music festivals and
arenas, a large number of smaller music venues – clubs, restaurants
and music associations – throughout the country continued to promote
concerts. One of these devoted concert promoters, the Sticky Fingers
rock club in Gothenburg, received the STIM Guitar in April. This award is
intended to encourage work that results in financial compensation for
composers and songwriters when their music is played.
The number of art music premiers increased in 2012. No less than 325
newly composed works of music premiered during the year, which can
be compared to just over 200 the year before. A handful of these were
held at the Sounds of Stockholm festival at Kulturhuset in November.
Anna-Lena Laurin, a composer who moves freely between jazz and art
music, was one of the composers who received a lot of attention in
2012. During the year she premiered in big band jazz, chamber music
and orchestral music, including Persephone for orchestra and jazz
groups that premiered in Helsingborg in September.
Anders Hillborg, who in 2011 became the first Swede to have the premier
of a commissioned work performed by the Berlin Philharmonic, was
asked in January 2012 by the Los Angeles Philharmonic to write a piece
for Polar Prize winner, cellist Yo-Yo Ma, and pianist Emanuel Ax. The
new work will premier some time during the 2013-2014 season.
One of the world's oldest festivals, Nordic Music Days (which has been
arranged since 1888), rotates between the Nordic countries. In the fall
of 2012 the festival returned to Stockholm and lit up three locations in
the city for four days in October.
More and more live music is being played in Sweden. Despite rising ticket
prices, more people are choosing to attend concerts and festivals. It is
obvious that live music plays an important role in people's lives.
Multi-faceted festival year
and sold-out arenas
18
2012 | STIM ANNUAL REPORT
Anders Hillborg
19
By promoting the creation and distribution of both new music and what is
referred to as "areas of music that are vulnerable to market forces", STIM's
owners want to contribute to a vital and multi-faceted Swedish music culture.
The possibility of allocating up to 10% of the Swedish revenue after
deductions for expenses to fund Swedish music is written into the recip-
rocal agreements between STIM and its international counterparts.
In 2012, STIM allocated a total of SEK 32.6 million to national funds.
Until 2012, STIM's operations were primarily carried out via the
subsidiary Svensk Musik Swedmic AB, which worked with communica-
tions, PR activities, sheet music and documentation. In addition, the
national funds were also used as special support for music areas that
are vulnerable to market forces and grants for the owner associations'
projects and member activities.
Svensk Musik
In 2012, Svensk Musik finished an opera anthology that contains a unique
collection of Swedish opera arias written during the period 1874–2009.
The sheet music in four volumes contains 147 arias from 89 operas.
No less than 54 Swedish composers are represented in the anthology:
Elfrida Andrée, Helena Munktell, Kurt Atterberg, Karl-Erik Blomdahl,
Jonas Forssell, Hans Gefors, Paula af Malmborg, Karin Rehnqvist, Sven-
David Sandström, Wilhelm Stenhammar, and many more.
During the year the following three CD releases were finalized under
the inhouse label, Phono Suecia:
Swedish Concertos for Soprano Saxophone (PSCD 188)
Solo concerts by Rolf Martinsson, Sven-David Sandström and Anders
Eliasson. Soloist: Anders Paulsson.
ZzzKaa’s Dance (PSCD 191)
The Nogenja ensemble performs compositions by Bosse Broberg.
Pendants (PSCD 192)
Benjamin Carat and Gageego! under the leadership of Pierre-André
Valade perform works by Jesper Nordin.
In 2012, the project to scan in all of Svensk Musik's database of unpub-
lished contemporary Swedish art music, in total 18,400 works, was
completed. Only the digital copies are now used for printing sheet
music. All of the original manuscripts are stored at the National Archives.
Promotion Committee
Svensk Musik's assignment changed in 2012 and a new promotion
committee was established, STIM's Committee for the Promotion of
Swedish Music. The Promotion Committee should create conditions
for the future creation of music. It should strive to be at the forefront
in terms of understanding the new Swedish music and using the best
tools and projects to disseminate information about this music. During
the Promotion Committee's first operational year, around 25 different
types of projects were implemented or initiated. The projects cover a
wide base, for example:
Swedish music in Spanish in Mexico – presenting, introducing
and opening a new market for Swedish music in Latin America.
Plug-in – continued education in the creation of music for
music teachers in elementary and middle schools.
KVAST network (Association of Swedish Women Composers) – devel-
opment and marketing of the KVAST webpage – a website with infor-
mation about composers and repertoires.
In addition, a preliminary study for international projects, copyright
seminars and much more was started.
STIM - PROMOTING the Swedish
MUSIC CULTURE
20
2012 | STIM ANNUAL REPORT
Ann Rosén, Ida Lundén
and Lise-Lotte Norélius in Syntjuntan
(Synth Circle)
21
0
18
36
54
72
90
108
126
144
162
180
+43%
+71%
+138%+64%
The digital market continues to grow. STIM's Online and new media
revenue increased by 43 percent in 2012. In the past five years, revenue
has increased tenfold. During the same period, revenue from music on
"physical sound carriers" (music on CDs, LPs, etc.) fell by 50 percent,
although this decrease has slowed in the past couple years. Revenue
from digital music and physical sound carriers are almost the same. Of
the digital music services, subscription services for streamed music are
the largest. The transition from an ownership model (purchased CDs)
to a subscription model has proven itself to be very successful, even for
compensating the author.
It also does not appear to be a problem for streamed music and the
downloading of music files to co-exist. Legal downloading of music
increased sharply in 2012.
During the year, STIM signed a new agreement with Spotify and started
negotiations with Youtube.
The start of a development similar to that in the music industry is
discernible on the TV market. Several new actors established them-
selves in Sweden in 2012 and the sale of smart TV sets rocketed. SVT
Play has been established for several years, but the commercial chan-
nels' on demand TV services are now growing at the same time as
viewers are being offered more online-based TV services such as simul-
casting (simultaneous web broadcast) and live streaming.
STIM continuously analyses the changes in the media market and
follows the new techniques for the dissemination of TV that are emerg-
ing. As part of this work, we maintain an ongoing dialogue with cable
operators and TV channels about the future of the TV market.Revenue Online and new media
Subscription services for streamed music have proven themselves to
be a successful concept. The digital market has multiplied in just a few
years. All signs are now pointing toward a similar development in the
TV segment.
STREAMED MUSIC increasing in popularity - and now
TV IS NEXT
22
2012 | STIM ANNUAL REPORT
Sonny Boy Gustafsson and
Linda Carlsson – Miss Li
23
MUSIC CHOICE IMPORTANT FOR
BUSINESS
The radio that used to be a standard at the hairdresser's or in a cloth-
ing store is becoming less common. Music is naturally still present, but
today it is used in a manner that is more thought-out. This is a develop-
ment that is evident in both the sales and service sectors. Companies
are working very consciously with music as a tool to profile their opera-
tions and to create the right atmosphere in their premises. A number
of surveys conducted in the past year confirm the opportunities that
are created by taking a deliberate approach to how music is used, both
in terms of strengthening the brand and increasing sales.
STIM's revenue for music in businesses rose by more than 11 percent
in 2012. The largest part of the increase comes from the restaurant
industry, which experienced improved profitability since the restaurant
tax was lowered at the beginning of 2012. In order to offer a better
service to its customers, STIM directed considerable resources in 2012
to the development of a new CRM system. This system will simplify
and streamline STIM's contact with its customers, but it also includes
a number of improvements to the online services for music report-
ing and accounting. We also developed a more convenient function
for new customers to obtain a license for their use of music. The new
system will be taken into operation during the spring of 2013.
At the café, on the airplane, in the clothing store or at the hairdresser.
Music is played everywhere. But even if more background music is being
played today, the way music is being played has changed. Companies are
profiling themselves today with the help of music. Everyone wins with this
development.
Example:The license fee for a shop with a sales area of up to 100m2 that is open more than 312 days a year is SEK 1,450 per year, i.e. SEK 4.65 per day of business. Establishments with a sales area of between 2,001-2,500m2 open for more than 312 days a year pay a fee of SEK 17,921 per year, i.e. SEK 57.44 per day of business.
Example:The license fee for a supervised fitness session and up to 25 participants is SEK 13.21 per session/occasion. The licence fee for a fitness session with more than 75 participants is SEK 58.93 per session/occasion.
Example:The license fee for the use of background music in a restaurant establishment with 1-20 covers that is open more than 312 days a year is SEK 2,423, i.e. SEK 7.77 per day of business. The fee for a restaurant with 101-150 covers that is open more than 312 days a year is SEK 9,753 per year, i.e. SEK 31.26 per day of business.
0
5
10
15
20
25
30
35
40
45
50
0
2
4
6
8
10
12
14
16
0
5
10
15
20
25
30
Shops, shopping centres etc., revenue, SEK million
Restaurants, revenue, SEK million
Fitness, revenue, SEK million
24
2012 | STIM ANNUAL REPORT
Chief Legal Officer Helena Woodcock
and Legal Counsellor Emil Dicksved
25
Authors and publishers are the focus of STIM's activities, which char-
acterises our commitment and corporate culture. A willingness
to develop and change is part of this culture, which, for example,
is manifested in our constant efforts to develop our work so that it
functions as simply and efficiently as possible for our customers and
members. This places great demands on the entire organization.
The management development program that was started in the fall
of 2011 continued during the year. The aims of the program include
clarifying the role of the executive management group, establishing
a structure for meetings and improving management efficiency. The
program comprised development activities at both the group and
individual level.
The trainee program that was started in 2011 ended in mid-year
2012. A need for a mix of skills was behind the initiative – new knowl-
edge as well as solid experience. Our industry is constantly evolving
and we need employees who are aware of the latest research find-
ings and have acquired the tools to apply these findings.
At year-end, STIM had 65 employees. The Swedish Equal Opportunities
Act requires employers with at least 25 employees to analyse its salary
structure once every three years. STIM analyses its salaries every year in
collaboration with the STIM branch of local trade union Unionen. The
analysis from 2012 shows that women's salaries are 100.26 percent of
the men's salaries, and that there are no unjustified salary differences
in the organization.
As a special interest organization in a competitive market, STIM
is subject to special requirements. The solution is to develop its
personnel and mix new skills with experience.
GENDER EQUALITY ORGANIZATION equipped for
THE FUTURE
26
2012 | STIM ANNUAL REPORT
Scott FarrantInternational Director
Tomas EricssonDeputy CEO and Head of
Strategy
Kristina PaulssonDirector of Finance
Karin Jihde Communications Director
27
2012 | STIM ANNUAL REPORT
The Society of Swedish Composers (FST), the Swedish Society of Popular
Music Composers (SKAP) and the Swedish Music Publishers Associa-
tion each appoint two members and two deputy members. FST, SKAP
and the the Swedish Music Publishers Association jointly appoint the
chairman and two additional members. The STIM branch of Unionen
appoints one member and two deputy members.
Regular Members
Kjell-Åke Hamrén ChairpersonMartin Q. Larsson FSTErik Peters FSTAlfons Karabuda SKAPJohan Ekelund SKAPMonica Ekmark Swedish Music Publishers AssociationErik Hasselqvist Swedish Music Publishers AssociationKristina Rennerstedt External memberLeif Pagrotsky External memberClaes Tullbrink Unionen
Deputy members
Jonas Forssell FSTIda Lundén FSTDouglas Carr SKAPElise Einarsdotter SKAPLars Karlsson Swedish Music Publishers AssociationNutta Hultman Swedish Music Publishers AssociationEva Botmar UnionenAnders Cangemark Unionen
Board of Directors
Paulina Sundin FST, chairpersonErik Hasselqvist Swedish Music Publishers AssociationAlfons Karabuda SKAP
Co-opted memberEva Modin STIM
Svensk Musik Swedmic AB
Board of Directors
THE
STIM SPHERE
28
2012 | STIM ANNUAL REPORT
STIM FASTIGHETS HOLDING AB
STIM CEO Kenth Muldin
CEE SERVICES AB SVENSK MUSIKSWEDMIC AB
DIRECTOR OF OPERATIONS GUSTAF BERGEL
CEO MAGNUS BOSTRÖM
ICE AB
INTERNATIONAL COPYRIGHT
ENTERPRISE
JOINTLY OWNED WITH BRITISH PRS FOR MUSIC
CEO CARSTEN DRACHMANN
NCB
NORDISK COPYRIGHT BUREAU
JOINTLY OWNED WITH STIM'S NORDIC COUNTERPARTS
CEO KARSTEN DYHRBERG NIELSEN
29
2012 | STIM ANNUAL REPORT
In 2007, STIM established the wholly owned subsidiary CEE Services
AB to provide administrative support and development resources in
documentation, music reporting, distribution and IT. The processes
involved are complex, and CEE is currently engaged in a number of
projects aimed at simplifying functions for STIM, Svensk Musik and ICE
above all via IT facilities, support and service. Every year, CEE issues a
cost reduction guarantee for administrative services on a fixed-price
basis. As a result, operations that are taken over by CEE are made more
efficient in a clear and measurable way.
NCB, Nordisk Copyright Bureau, is tasked with safeguarding the rights
of authors and music publishers during the recording, copying and
distribution of protected music and lyrics on CD, vinyl, DVD, etc. NCB
is owned by STIM and its counterparts in Denmark (KODA), Finland
(TEOSTO), Norway (TONO) and Iceland (STEF). NCB also administers
the mechanical reproduction rights of the Baltic collecting societies,
LATGA-A (Lithuania), EAÜ (Estonia) and AKKA-LAA (Latvia). NCB has
agreements with collecting societies abroad that administer mechani-
cal reproduction rights in a corresponding manner in their countries.
In 2011, NCB’s Board of Directors passed a decision to centralize its
entire operations. As a result, regional operations in the Nordic and
Baltic countries were transferred to NCB’s headquarters in Copenhagen
in 2012.
ICE, founded in 2007 with STIM's UK counterpart PRS for Music as an
independent, commercial company, is owned on a 50/50 basis by
STIM and PRS for Music. ICE's primary role is to administer the data
volumes required to license and distribute financial remuneration to
authors and publishers, both Swedish and international, when their
works are played, recorded, streamed or legally downloaded.
Board of Directors
Kenth Muldin Chairperson
Eva Modin Deputy member
Nicklas Lindström Unionen
Hans Wickberg Unionen, deputy member
Board of Directors
Anders Lassen CEO, Koda, Chairperson
Susi Hyldgaard Author, Koda
Tine Birger Christensen Music publisher, Koda
Gudrun Björk Bjanadottir CEO, STEF
Kenth Muldin CEO, STIM
Alfons Karabuda Author, STIM
Lars Karlsson Music publisher, STIM
Katri Sipilä CEO, TEOSTO
Kim Kuusi Author, TEOSTO
Tommi Tuomainen Music publisher, TEOSTO
Cato Ström CEO, TONO, Deputy Chairperson
Bendik Hofseth Author, TONO
Steinar Fjeld Music publisher, TONO
Observers from the
Baltic countries
Inese Paklone CEO, AKKA/LAA
Kalev Rattus CEO, EAÜ
Jonas Liniauskas CEO, LATGA-A
Anne Louise Holsoe Employee representative
Board of Directors
Wanda Goldwag PRS For Music, Chairperson
Kjell-Åke Hamrén STIM
Kenth Muldin STIM
Tomas Ericsson STIM
Robert Ashcroft PRS For Music
Craig Nunn PRS For Music
CEE Services AB
NCB, Nordic Copyright Bureau
ICE, International Copyright Enterprise
30
2012 | STIM ANNUAL REPORT
Sara Kilander Chief Operating Officer
31
Assessment Committee for Music and CopyrightMakes statements regarding similarities between musical works in the event of copyright disputes.
Helena Woodcock STIM, Chairperson
Per Wahlsten STIM, Secretary
Patrik Sventelius Swedish Music Publishers Association
Douglas Carr SKAP
Jonas Forssell FST
Scholarship CommitteeSelects STIM's scholarship recipients.
Ragnar Grippe Chairperson
Ben Malén Swedish Music Publishers Association
Sarah Riedel SKAP
Per Mårtensson FST
Eva Lindal External
Josephine Forsman External
Grading CommitteeEstablishes industry practice for grading and the handling of grading complaints.
Regular members
Mats Edén SKAP
Torgny Söderberg SKAP
Jonas Valfridsson FST
Paulina Sundin FST
Kristina Fryklöf Swedish Music Publishers Association
Deputy members
Jan Levander SKAP
Anna Einarsson SKAP
Ylva Q. Arkvik FST
Per Mårtensson FST
Ingemar Hahne Swedish Music Publishers Association
Distribution CommitteePreparatory body for the Board in matters pertaining to distribution.
Kenth Muldin Chairperson
Martin Q. Larsson FST
Chrichan Larson FST
Alfons Karabuda SKAP
Johan Ekelund SKAP
Kettil Skarby Swedish Music Publishers Association
Monica Ekmark Swedish Music Publishers Association
STIM COMMITTEES
32
2012 | STIM ANNUAL REPORT
Operations Sara Kilander
Sales & Marketing Media/Online
Nicklas Sigurdsson (as of 2013)
Service(Acting) Robert Gehring
DistributionFredrik Lomäng
CEO
Kenth Muldin
Deputy CEO
Eva Modin
Deputy CEO
Tomas Ericsson
CommunicationKarin Jihde
PersonnelVenke Osnes
LegalHelena
Woodcock
Strategy & Business
DevelopmentTomas
Ericsson
Finance Kristina Paulsson
33
2012 | STIM ANNUAL REPORT
Johan ”Shellback” Schuster
34
Description of operations
STIM was established to protect the copyright interests of authors and
music publishers in Sweden. On their behalf, STIM administers and
licenses rights to music and lyrics. Through its international network,
STIM also represents rights to the worldwide repertoire of music.
In addition, STIM promotes the creation and dissemination of new
Swedish music.
At year-end STIM had more than 71,000 registered composers, lyric
writers, arrangers and music publishers. STIM’s task is to safeguard
the rights of authors and music publishers, as defined in the Swedish
Copyright Act Based on inter-governmental agreements and reciprocal
agreements between the collecting societies, rights to both domestic
and international music are safeguarded in Sweden. On joining STIM,
the rightsholder assigns to STIM his legal rights to compensation in
connection with public performance, recording and mechanical repro-
duction. It is STIM’s task to ensure that anyone who plays music in
public or who records, downloads or streams music has a valid licence
and pays a fee. STIM then pays the monies received to the owner or
owners of the right to the music. Thus, STIM licenses all the music of
the world to users of music and distributes the revenue collected to the
individual rightsholders, both Swedish and international. This means
that anyone who wishes to use music, for example in a radio broad-
cast, in a shop or in a discotheque, may, via a STIM licence, obtain
simple access to millions of works. It also means that the owners of the
copyright to the music are paid for the use of their music.
STIM and the British performing rights organization, PRS for Music,
jointly own a company to administer bulk data in works documen-
tation, music reporting and certain distribution services. Each party
owns an equal share of this associated company, International Copy-
right Enterprise AB (ICE).
Significant events during the financial year
The "CISAC case", which resulted in a prohibition ruling on July 16,
2008, addressed to STIM and the European collecting societies, has
now been tried by the Tribunal, the EU's first court of instance. The
EU Commission's decision from 2008 ordered STIM and the other
European societies to eliminate territorial limitations within cable and
satellite TV and the Internet. STIM signed new agreements with the
other European performing rights organizations that were interested
in a collaboration and phased out the territorial limitations. The EU
Commission's requirements for STIM have therefore been fulfilled.
The Tribunal upheld the Commission's decision against STIM in April
2013 but ruled in favor of the other societies. The reason for the differ-
ing outcomes is that STIM presented a different legal basis than the
other societies for its appeal. The other performing rights organiza-
tions asserted that they had not entered into any "organized proceed-
ings" with the aim of dividing the EU market into national territories.
STIM asserted that the decision entailed risks for the cultural diversity
in the EU since there was a risk that smaller repertoires would be
treated unfairly. The Tribunal followed STIM's line in principle, i.e. it
ruled that the Commission must take cultural diversity in the EU into
consideration. However, the Tribunal found that the Commission had
been sufficient in its consideration of cultural diversity and therefore
rejected STIM's appeal. The ruling does not have a significant legal or
financial impact on STIM's operations.
STIM acquired the building Krukomakaren 7, Hornsgatan 103, Stock-
holm, at the end of 2011. In September 2012, STIM moved as planned
into the new offices together with its subsidiaries and FST, SKAP and
the Swedish Music Publishers Association. Approximately 1,800 m2
are leased to external tenants, primarily other music or copyrights
organizations.
Significant events after the end of the financial year
In January 2013, Kobalt STIM Aggregated Rights AB was founded by
STIM and music publisher Kobalt Music Group. This partnership makes
it possible for multi-territorial digital music services to acquire music
licenses for the entire European market through an integrated turn-key
solution. The licensing service is offered by a newly formed subsidiary
to STIM, which started operations on March 1, 2013.
Sales and profit
Group
The Group’s revenue during the financial year was SEK 1,479.9 million
(1,433.0). Operating costs totaled SEK 175.6 million (160.0). Profit/
loss from participations in associated companies amounted to SEK 0.7
million (–0.2).
Profit/loss for the Group before distribution totaled SEK 1,312.0 million
(1,288.5).
The Board of Directors and the Chief Executive Officer of
Svenska Tonsättares Internationella Musikbyrå (STIM) u.p.a.,
CIN 702002-3524, hereby present their Annual Report and
Consolidated Financial Statements for the 2012 financial year.
ADMINISTRATION REPORT
36
2012 | STIM ANNUAL REPORT
Turnover for the current financial year for Parent Society STIM amounts
to SEK 1,455.8 million (1,425.8), which corresponds to an increase of
2.1 percent (3.8) compared to the previous year.
Revenue for music performed both in Sweden and abroad increased by
SEK 53.6 million (99.7) or 4.4 percent (8.9), while revenue for mechan-
ical reproduction rights is in a negative trend and decreased by SEK 19.3
million (32.3) or –10.5 percent (–14.9).
Profit/loss for the Parent Society STIM before distribution totals SEK
1,312.0 million (1,288.5), which means that distribution to rightshold-
ers increased by SEK 23.5 million (61.2) or 1.8 percent (5.0).
Financial position
Group
The Group’s accumulated loss at year-end was SEK –13.1 million (–12.1).
Parent Society
The Parent Society STIM’s equity at year-end was SEK 1.2 million (1.2)
or 0.1 percent (0.1) of total assets. Debts to rightsholders at year-end
totaled SEK 709.2 million (708.0).
Liquidity
STIM’s cash and cash equivalents, including short-term investments,
totaled SEK 148.2 million (229.8) for the Parent Society and SEK 183.6
million (259.4) for the Group.
Group contributions
Group contributions during the financial year were paid to Stim
Fastighets Holding AB in accordance with the following:
Proposed appropriation of profits
The following amount is available for allocation by the Annual General
Meeting:
Parent Society profit (SEK thousand)
Operating income 1,455,816 1,425,780 1,373,605 1,385,137 1,164,390
Operating costs –160,263 –154,025 –151,648 –146,413 –127,225
Operating profit 1,295,553 1,271,755 1,221,957 1,238,724 1,037,165
Interest 16,551 16,822 5,370 10,495 20,184
Appropriations and tax –71 –78 –40 1,527 4,660
Profit before distribution 1,312,033 1,288,499 1,227,287 1,250,746 1,062,009
STIM SEK –337.1 thousand
CEE Services AB SEK –2,963.0 thousand
Stim Fastighets AB SEK –1,532.0 thousand
Stimhuset KB SEK –2,991.7 thousand
Retained earnings, SEK 4,841
Profit/loss for the year, SEK 0
Total 4,841
The Board of Directors proposes that the profit be allocated
as follows:
profit carried forward, SEK 4,841
Parent Society
37
2012 | STIM ANNUAL REPORT
INCOME STATEMENT
Operating income NotePerformance revenue 1,270,818 1,217,226 1,270,818 1,217,226Mechanical reproduction revenue 165,456 184,805 165,456 184,805Other revenue 43,635 30,994 19,542 23,749Total operating income 1, 3 1,479,909 1,433,025 1,455,816 1,425,780
Operating costsExternal costs 2, 3, 6 –78,972 –64,797 –105,459 –101,309Personnel costs 2, 4, 5 –83,768 –86,702 –49,335 –47,474Depreciation/amortization according to plan 2, 9 –11 –12,862 –8,469 –5,469 –5,242Total operating costs –175,602 –159,968 –160,263 –154,025
Profit/loss from participations in associated companies
13 739 –225 – –
Distribution 7 –1,312,033 –1,288,499 –1,312,033 –1,288,499Operating profit/loss –6,987 –15,668 –16,480 –16,744
Interest income 9,420 13,856 20,170 16,830Interest expenses –3,637 –12 –3,619 –8Profit/loss before tax –1,204 –1,824 71 78Tax on profit for the year 20 197 –140 –71 –78
Profit/loss for the year –1,007 –1,964 0 0
Parent SocietyGroupSEK thousand
38
2012 | STIM ANNUAL REPORT
Assets NoteNon-current assetsIntangible assetsCurrent investment in new IT systems 8 33,207 11,079 33,207 11,079Capitalized system development costs 9 4,584 7,136 4,584 7,136Total intangible assets 37,791 18,215 37,791 18,215
Property, plant and equipmentBuildings and land 10, 21 418,570 352,222 – –New construction, extensions and renovations in progress 7,580 3,099 – –Equipment 11 12,498 8,709 9,596 6,610Total property, plant and equipment 438,648 364,030 9,596 6,610
Financial assetsParticipations in Group companies 12 – – 250 250Participations in associated companies 13 42,334 41,595 0 0Receivables from Group companies – – 491,435 419,261Receivables from associated companies 33,632 43,632 33,632 43,632Total financial assets 75,966 85,227 525,317 463,143Total non-current assets 552,405 467,472 572,704 487,968Current assetsCurrent receivablesAccounts receivable 96,953 120,969 95,468 120,627Receivables from Group companies – – 9,227 1,299Receivables from associated companies – – 597 –Other receivables 26,384 20,804 19,066 20,163Tax assets 2,866 3,175 2,503 2,370Prepaid expenses and accrued income 14 175,384 158,781 173,130 158,380Total current receivables 301,587 303,729 299,991 302,839Current investments 66,704 124,403 66,704 124,403Cash and bank balances 16 116,917 134,982 81,512 105,366Total current assets 485,208 563,114 448,207 532,608Total assets 1,037,613 1,030,586 1,020,911 1,020,576
Equity and liabilitiesEquityRestricted equityCapital contributed 5 5 5 5Restricted reserves/Statutory reserve 1,226 1,226 1,226 1,226Total restricted equity 1,231 1,231 1,231 1,231
Accumulated deficit/non-restricted equityAccumulated deficit/non-restricted equity – 12,144 –10,180 5 5Profit/loss for the year –1,007 –1,964 0 0Total accumulated deficit/unrestricted equity capital – 13,151 –12,144 5 5Total equity 15 –11,920 –10,913 1,236 1,236
ProvisionsDeferred tax 20 1,716 2,052 – –Total provisions 1,716 2,052 – –
Current liabilitiesLiabilities to credit institutions 100,000 100,000 100,000 100,000Accounts payable 25,243 17,834 14,496 13,973Distribution liabilities 17 709,168 708,004 709,168 708,004Liabilities to Group companies – – 6,335 17,641Liabilities to associated companies 4,345 14,947 – –Other liabilities 13,539 12,603 6,656 3,222Accrued expenses and deferred income 18 195,522 186,059 183,020 176,500Total current liabilities 1,047,817 1,039,447 1,019,675 1,019,340Total equity and liabilities 1,037,613 1,030,586 1,020,911 1,020,576Pledged assets 19 176,045 176,045 176,045 176,045Contingent liabilities – – – –
Parent SocietySEK thousand Group
BALANCE SHEET
39
2012 | STIM ANNUAL REPORT
CASH FLOW STATEMENT
Accounting principles
The applied accounting and measurement principles are in agreement
with the Swedish Annual Accounts Act and the general recommenda-
tions of the Swedish Financial Accounting Standards Council, except
for the accounting for Group contributions, which are reported in the
income statement as Other income or expense. Unless otherwise indi-
cated, the accounting principles are unchanged from the preceding year.
Consolidated accounts
The consolidated accounts include subsidiaries where the parent
company, directly or indirectly, controls more than 50 percent of the
votes, or in any other way exercises a controlling influence.
The Group's financial statements are prepared in accordance with the
acquisition method, whereby the equity of the subsidiaries at acquisi-
tion - calculated as the difference between the fair value of the assets
and liabilities - is eliminated in its entirety. Thus, the Group's equity
includes only the portion of the equity in its subsidiaries that has arisen
after the acquisition.
Operating activities Note
Payments from customers 1,496,347 1,459,117 1,465,800 1,132,022
Payments to rightsholders 17 –1,278,303 –1,189,648 –1,278,303 –1,189,648
Payments to suppliers and employees –201,927 –172,781 –194,855 –165,466
Cash flow from operating activities before payment of interest and income taxes 16,117 96,688 –7,358 –223,092
Interest received 9,420 13,856 20,170 16,830
Interest paid –3,637 –12 –3,619 –8
Income tax 170 –309 –203 –709
Cash flow from operating activities 22,070 110,223 8,990 –206,979
Investing activities
Investments in intangible assets 8 –22,128 –11,079 –22,128 –11,079
Investments in property, plant and equipment 10-11 –85,253 –4,338 –6,412 –4,001
Disposal of property, plant and equipment 10-11 675 457 509 157
Investments in financial assets –739 2,971 –72,175 2,971
Amortization of financial assets 10,000 – 10,000 –
Current financial investments 57,699 137,182 57,699 137,182
Investment in subsidiaries 21 –389 –298,450 – –
Disposal of subsidiaries – – – 50
Cash flow from investing activities –40,135 –173,257 –32,507 125,280
Financing activities
Loans from credit institutions – 100,000 – 100,000
Group contributions received – – – 3,763
Group contributions paid – – –337 –
Cash flow from financing activities – 100,000 –337 103,763
Cash flow for the year –18,065 36,966 –23,854 22,064
Cash and cash equivalents at beginning of year 134,982 98,016 105,366 83,302
Cash and cash equivalents at year-end 116,917 134,982 81,512 105,366
Parent SocietyGroupSEK thousand
ACCOUNTING AND MEASUREMENT PRINCIPLES
40
2012 | STIM ANNUAL REPORT
Accounting for associated companies
"Associated companies" are companies that are not subsidiaries but in
which the parent company, directly or indirectly, controls no less than
20% of the votes represented by all participations, or otherwise exer-
cises a controlling influence.
In the Group's financial statements, participations in associated compa-
nies are recognized using the equity method. According to this method,
participations in a company are accounted for at acquisition value on
the acquisition date and are then adjusted to reflect the Group's share
of the change in the net assets of the associated company.
The Consolidated Income Statement includes the Group's share in the
profit/loss of associated companies. The parent company financial
statements recognize shares in associated companies at acquisition
value less any impairment losses.
Revenue recognition
Operating income includes - after deductions for value added tax -
rental income during the rental period and royalties in accordance
with the economic impact of the current agreement. Interest income
is recognized at the effective return.
Intangible assets and property, plant and equipment
Intangible assets, such as computer software, are recognized at cost, less
accumulated amortization. “Off-the-shelf” software is shown at cost.
Expenditure in connection with software developed or modified
substantially on STIM's behalf is capitalized as an intangible asset if
such software is deemed to lead to probable economic benefits that
after one year will exceed the cost incurred. Capitalized expenditure
on purchased software is amortized on a straight-line basis over the
estimated service life, although subject to a maximum of 10 years.
Amortization is applied as of the time at which the asset is ready to be
placed in service. Thus, no depreciation is applied to new investments
in progress.
Property, plant and equipment is reported at acquisition cost, less
accumulated depreciation. Expenditure to improve the performance
of assets above their original level is added to the reported value of the
asset. Expenses for repairs and maintenance are recognized as costs.
Property, plant and equipment are depreciated on a straight-line basis
over the estimated service life of the asset. A straight-line method is
applied to all categories of property, plant and equipment and intan-
gible assets.
The following depreciation periods are applied:
Pensions
The Group's employees are covered by the ITP scheme, which is
managed by Alecta. Some senior executives have pension commit-
ments in addition to the ITP scheme that fall within the national
pension plan. These pensions are covered by insurance arrangements.
Taxes
Reported income taxes refer to tax to be paid or refunded in respect
of the current year. Income tax liabilities/assets are valued at the
amounts that in the Society's view will be paid to or received from the
Swedish Tax Agency. This judgement is based on the tax rules and tax
rates that are in effect or that have been announced and are consid-
ered highly likely to be effected.
Cash flow statement
The cash flow statement is prepared in accordance with the direct
method. Reported cash flow consists only of the transactions that
involve incoming or outgoing payments. Cash and cash equivalents
comprise cash in hand and on deposit.
Receivables
Receivables are shown at the amount at which they are expected to be
received, following an examination of the circumstances in each case.
Foreign currency
The Parent Society receives a not-insignificant part of its revenue in
foreign currencies. The amounts are reported in SEK at the exchange
rates prevailing on the date of conversion. STIM has no receivables or
liabilities in foreign currency.
Leasing
All leasing costs reported by STIM refer to operational leases. Leasing
costs for the year total SEK 0.3 million.
Buildings 50 years
Tenant adjustments 5 years
Facade 30 years
Walkway and elevators 25 years
Passageway, locks and fiber 15 years
Plumbing and plumbing fixtures 10 years
System development 5 or 10 years
Machinery and equipment 5 years
Computers 3 years
41
2012 | STIM ANNUAL REPORT
Parent SocietyGroup
Performance licenses 1,270,818 1,217,226 1,270,818 1,217,226
Performance of Swedish and foreign music in Sweden 785,085 724,818 785,085 724,818
Of which,
Online and new media 161,556 112,636 161,556 112,636
Radio 30,596 31,549 30,596 31,549
Public service TV & Radio 121,472 132,641 121,472 132,641
Swedish TV 166,540 164,829 166,540 164,829
Foreign TV 15,464 14,155 15,464 14,155
Copyswede TV 12,207 21,669 12,207 21,669
Cinemas 17,301 14,677 17,301 14,677
Festivals, concerts and events 67,465 53,388 67,465 53,388
Dancing, entertainment 31,615 23,704 31,615 23,704
Shops, sales 47,265 46,795 47,265 46,795
Hotels 22,352 20,135 22,352 20,135
Restaurants 27,385 24,081 27,385 24,081
Municipal, county council and care 15,953 17,448 15,953 17,448
Sport and fitness 19,419 16,272 19,419 16,272
Music in the workplace 10,523 9,661 10,523 9,661
Transport 8,225 8,489 8,225 8,489
Theatre, variety and cabaret 4,193 5,398 4,193 5,398
Church music 5,356 4,649 5,356 4,649
Miscellaneous 198 2,642 198 2,642
Performance of Swedish music abroad and foreign music sub-published by STIM-affiliated publishers for entire Nordic region
442,958
457,536
442,958
457,536
Performance of Swedish and foreign music abroad that STIM distributes on behalf of others 42,775 34,872 42,775 34,872
Mechanical reproduction licenses Relates to the right to record, reproduce and and sell phonograms, etc. See Note 17. Licensing was administered by NCB, Nordic Copyright Bureau, in Copenhagen for the Nordic territory. 165,456 184,805 165,456 184,805
Other revenue 43,635 30,994 19,542 23,749
STIM/Svensk Musik, hiring out of sheet music and phonogram sales 983 1,158 – –
STIM/Svensk Musik govt grant/subsidy 3,353 3,366 – –
Private copying levy 10,185 7,383 10,185 7,383
Library levy 2,500 2,500 2,500 2,500
Administrative contribution from NCB 1,720 4,004 1,720 4,004
Rental income 11,482 3,899 – –
Miscellaneous 13,412 8,684 5,137 6,099
Group contributions received by the Parent Society – – – 3,763
Total operating income 1,479,909 1,433,025 1,455,816 1,425,780
NOTES (SEK thousand)
Note 1.
OPERATING INCOME
42
2012 | STIM ANNUAL REPORT
Parent SocietyGroup
External costs
Office and administration 69,768 55,779 95,814 91,565
IT operations 3,954 3,905 8,845 9,221
System development and maintenance 16,651 9,422 20,923 9,543
Development costs brought forward –20,460 –9,020 –20,460 –9,020
Property costs 9,059 4,711 – –
Group contributions paid by the Parent Society – – 337 –
Total external costs 78,972 64,797 105,459 101,309
Personnel costs
Salaries and other remuneration 54,835 56,721 31,776 30,621
Social security expenses 17,528 17,810 12,959 9,814
Pension expenses 7,868 8,416 2,328 5,045
Other personnel costs 3,537 3,755 2,272 1,994
Total personnel costs 83,768 86,702 49,335 47,474
Of which Board of Directors, CEO and Deputy CEO
Salaries and other remuneration 7,808 6,791 6,513 5,342
Social security expenses 2,453 2,134 2,046 1,678
Pension expenses 2,044 2,093 1,750 1,768
Depreciation/amortization
Capitalized system development expenditure 2,552 2,577 2,552 2,577
Equipment 3,732 3,477 2,917 2,665
Buildings 6,578 2,415 – –
Total depreciation/amortization 12,862 8,469 5,469 5,242
Total operating costs 175,602 159,968 160,263 154,025
OPERATING COSTS
Note 2.
Of the Parent Society’s total operating income for 2012, 0.2 percent
refers to sales to other Group companies. Of the Parent Society’s total
operating costs for 2012, 52.7 percent refer to purchases from other
Group companies.
Note 3.
INTRA-GROUP PURCHASES AND SALES
43
2012 | STIM ANNUAL REPORT
Group
An agreement on severance payment was entered into with the CEO
of CEE Services AB, under which a severance payment amounting to
18 months’ salary will be paid in the event of employment being termi-
nated by CEE Services. The required period of notice is 6 months on the
part of CEE Services and 3 months on the part of the CEO.
Parent Society
An agreement on severance payment has been entered into with the
CEO, under which the CEO will be paid two years’ salary if the CEO’s
employment is terminated by STIM. The required period of notice is
six months on both sides. Any severance payments shall be reduced by
salary or other remuneration that the CEO may earn from other activ-
ity during the period in which the severance payment is payable. The
CEO's pensionable age is 60 years. The insurance arrangement is a
defined-benefit plan.
Average number of employees Average number of employees
Men Women Average number of employees
Men Women
Parent Society 61 51% 49% 64 52% 48%
Subsidiaries 61 48% 52% 60 48% 52%
Group 122 50% 50% 124 50% 50%
Board members and senior executives Number on balance sheet date
Men Women Number on balance sheet date
Men Women
Parent Society
Board members, including personnel representatives 10 80% 20% 10 80% 20%
Deputy Board members, including personnel representatives 8 50% 50% 8 50% 50%
CEOs, deputy CEOs and other senior executives 11 45% 55% 9 50% 50%
Group
Board members, including personnel representatives 15 87% 13% 15 87% 13%
Deputy Board members, including personnel representatives 9 44% 56% 9 44% 56%
CEOs, deputy CEOs and other senior executives 18 44% 56% 18 44% 56%
Note 4.
Note 5.
AVERAGE NUMBER OF
EMPLOYEES
CONDITIONS OF EMPLOYMENT FOR CEOS
44
2012 | STIM ANNUAL REPORT
Auditing
Öhrlings PricewaterhouseCoopers 490 510 355 380
Auditors appointed by STIM 30 30 30 30
Other non-auditing assignments 331 90 331 90
Total fees to auditors 851 630 716 500
Distribution, performance licences
Performance in Sweden 634,945 579,473 634,945 579,473
Performance abroad 442,958 457,536 442,958 457,536
Performance abroad for distribution by STIM 36,108 29,455 36,108 29,455
Total performance distribution 1,114,011 1,066,464 1,114,011 1,066,464
Distribution of mechanical reproduction licenses 165,456 184,805 165,456 184,805
Distribution of national funds 32,566 37,230 32,566 37,230
Total distribution 1,312,033 1,288,499 1,312,033 1,288,499
Parent SocietyGroup
Parent SocietyGroup
Note 6.
Note 7.
FEES TO AUDITORS
DISTRIBUTION
45
2012 | STIM ANNUAL REPORT
Opening acquisition values 88,262 88,534 88,262 88,534
Acquisitions during the year – – – –
Reclassification – –272 – –272
Closing accumulated acquisition values 88,262 88,262 88,262 88,262
Opening depreciation/amortization –81,126 –78,821 –81,126 –78,821
Depreciation/amortization for the year –2,552 –2,577 –2,552 –2,577
Reclassification 272 – 272
Closing accumulated depreciation/amortization –83,678 –81,126 –83,678 –81,126
Closing residual value according to plan 4,584 7,136 4,584 7,136
Parent SocietyGroup
Opening acquisition value 11,079 – 11,079 –
Acquisitions during the year 22,128 11,079 22,128 11,079
Closing acquisition value 33,207 11,079 33,207 11,079
Parent SocietyGroup
Note 8.
Note 9.
CURRENT INVESTMENT IN NEW
IT SYSTEM
CAPITALIZED EXPENDITURE FOR SYSTEM DEVELOPMENT
46
2012 | STIM ANNUAL REPORT
Parent SocietyGroup
Buildings
Opening acquisition value 266,421 92,182 – –
Acquisitions during the year 72,537 – – –
Value on consolidation attributable to acquired subsidiary (see Note 21)
– 174,239 – –
Closing accumulated acquisition value 338,958 266,421 – –
Opening depreciation/amortization –54,256 –51,841 – –
Depreciation/amortization for the year –6,578 –2,415 – –
Closing accumulated depreciation/amortization –60,834 –54,256 – –
Closing residual value according to plan, buildings 278,124 212,165 – –
Land
Opening acquisition value 140,057 11,301 – –
Value on consolidation attributable to acquired subsidiary (see Note 21) 389 128,756 – –
Closing acquisition value, land 140,446 140,057 – –
Closing residual value according to plan, buildings and land 418,570 352,222 – –
Tax value of property 276,000 276,000 – –
of which, buildings 171,000 171,000 – –
Opening acquisition values 22,367 19,593 18,517 15,664
Acquisitions during the year 8,235 4,338 6,412 4,001
Disposals/Sales –1,716 –1,564 –1,406 –1,148
Closing accumulated acquisition values 28,886 22,367 23,523 18,517
Opening depreciation/amortization –13,658 –11,372 –11,907 –10,390
Depreciation/amortization for the year –3,732 –3,477 –2,917 –2,665
Disposals/Sales 1,041 1,191 897 1,148
Adjustment for differences, previous years –39 – – –
Closing accumulated depreciation/amortization –16,388 –13,658 –13,927 –11,907
Closing residual value according to plan 12,498 8,709 9,596 6,610
Parent SocietyGroup
Note 10.
Note 11.
BUILDINGS AND LAND
EQUIPMENT
47
2012 | STIM ANNUAL REPORT
Carrying amount 12/31/2012
Carrying amount 12/31/2011
41,595 41,820
739 –225
42,334 41,595
Group
Subsidiaries CIN Reg’d office Share of capital % Number of shares, thousands
CEE Services AB 556723-5923 Stockholm 100 100
Svensk Musik Swedmic AB 556754-1338 Stockholm 100 1
Stim Fastighets Holding AB 556842-4880 Stockholm 100 1
Total participations in Group companies
Subsidiaries, indirectly owned CIN Reg’d office
Stimhuset KB 969696-4361 Stockholm
Stim Fastighets AB 556745-2841 Stockholm
Book value 12/31/2012
Book value 12/31/2011
100 100
100 100
50 50
250 250
Parent Society
Note 12.
Note 13.
PARTICIPATIONS IN GROUP COMPANIES
PARTICIPATIONS IN ASSOCIATED COMPANIES
Associated companies, indirect holdings CIN Reg’d office Share of capital and voting rights, %
Number of shares, thousands
International Copyright Enterprise Services AB
556723-5907 Stockholm 50 50
Opening balance
Share in profit/loss of associated companies
Closing balance
48
2012 | STIM ANNUAL REPORT
Accrued performance revenue 142,104 133,234 142,104 133,234
Accrued revenue, private copying levy 14,222 13,486 14,222 13,486
Pre-paid expenses 10,962 6,585 10,962 6,388
Miscellaneous 8,096 5,476 5,842 5,272
Total prepaid expenses and accrued income 175,384 158,781 173,130 158,380
Parent SocietyGroup
Restricted equity
Capital contributed 5 5 5 5
Non-distributable reserve – – 1,226 1,226
Restricted reserves 1,226 1,226 – –
Total restricted equity 1,231 1,231 1,231 1,231
Non-restricted equity
Accumulated deficit/non-restricted equity –12,144 –10,180 5 5
Profit/loss for the year –1,007 –1,964 – –
Total non-restricted equity –13,151 –12,144 5 5
Total equity –11,920 –10,913 1,236 1,236
Parent SocietyGroup
Both the Group and Parent Society have an unutilized bank overdraft
facility of SEK 100 million.
Note 14.
Note 15.
Note 16.
PREPAID EXPENSES AND ACCRUED INCOME
CHANGES IN EQUITY
BANK OVERDRAFT
FACILITY
49
2012 | STIM ANNUAL REPORT
Prepaid performance revenue 171,383 169,524 171,383 169,524
Prepaid rental income 6,653 904 – –
Accrued vacation pay liability 4,005 3,438 2,110 1,998
Accrued social security expenses and special employer's contribution 3,751 1,717 2,446 1,845
Other accrued expenses 9,730 10,476 7,081 3,133
Total accrued expenses and deferred income 195,522 186,059 183,020 176,500
Parent SocietyGroup
Distribution of performance revenue, Sweden
Undistributed revenue from previous years 533,230 506,615
Payment to Swedish rightsholders –200,239 –164,933
Payment to foreign collecting societies –128,021 –101,087
Outstanding payments of previous years' revenue 204,970 240,595
Revenue for the year for distribution 671,053 609,133
Payment to Swedish rightsholders –195,202 –196,229
Payment to foreign collecting societies –124,802 –120,269
Outstanding payment from revenue for the year 351,049 292,635
Outstanding payment at year-end 556,019 533,230
Distribution of performance revenue, international
Undistributed revenue from previous years 162,916 121,615
Payment to Swedish rightsholders –87,878 –54,111
Outstanding payments of previous years' revenue 75,038 67,504
Revenue for the year for distribution 442,958 457,536
Payment to Swedish rightsholders –374,637 –362,124
Outstanding payment from revenue for the year 68,321 95,412
Outstanding payment at year-end 143,359 162,916
Distribution of mechanical reproduction revenue
Undistributed revenue from previous years 11,858 17,948
Payment to Swedish rightsholders –11,858 –17,948
Outstanding payments of previous years' revenue 0 0
Revenue for the year for distribution 165,456 184,805
Payment to Swedish rightsholders –155,666 –172,947
Outstanding payment from revenue for the year 9,790 11,858
Outstanding payment at year-end 9,790 11,858
Total distribution liability at year-end 709,168 708,004
Parent Society & Group
Note 17.
Note 18.
DISTRIBUTION LIABILITIES
ACCRUED EXPENSES
AND PREPAID INCOME
50
2012 | STIM ANNUAL REPORT
Contingent liabilities
On 4 August 2008, STIM entered into a guarantee (Swedish: proprie-
borgen) as for its own debt as regards CEE Services AB's commitments
as stated in the shareholders' agreement between CEE Services AB
and MCPS-PRS-Alliance Ltd, regarding the associated company, Inter-
national Copyright Enterprise Services AB.
Pledged assets
STIM has in its possession mortgages totaling SEK 27.2 million at Stet-
tin 7 (Sandhamnsgatan 75–83). A mortgage totaling SEK 176.0 million
for the property Krukomakaren 17 (Hornsgatan 103) is held by SEB as
collateral for loans and an overdraft facility.
For own provisions and liabilities regarding liabilities to credit institutions:
Property mortgages 176,045 176,045 176,045 176,045
Total pledged assets 176,045 176,045 176,045 176,045
Parent SocietyGroup
Tax on profit for the year
Current tax for the year –141 –151 –73 –89
Current tax attributable to previous years 2 11 2 11
Change in deferred tax for the year due to changed tax rate 336 – – –
Total tax as per the income statement 197 –140 –71 –78
Deferred income taxes attributable to untaxed reserves at acquisition of Stimhuset KB (previously GE Real Estate Söder KB). 1,716 2,052 – –
Parent Society
Parent Society
Group
Group
Note 19.
Note 20.
CONTINGENT LIABILITIES AND PLEDGED ASSETS
TAXES
51
2012 | STIM ANNUAL REPORT
Cash purchase consideration on day of taking possession 299,300 299,300 – –
Additional purchase price 389 – – –
Acquisition-related costs 1,300 1,300 – –
Total acquisition cost 300,989 300,600 – –
Consideration paid previous years 300,600 – – –
Buildings and land 389 302,995 – –
Redevelopment and extension in progress – 3,099 – –
Current assets – 2,625 – –
Provisions - deferred tax liability – –2,052 – –
Current liabilities – –6,067 – –
Total consideration 300,989 300,600 – –
Cash and cash equivalents in acquired company – –2,150 – –
Impact on Group's cash and cash equivalents 389 298,450 – –
Parent Society
Parent Society
Group
Group
On 30 December 2011, Stim Fastighets Holding AB acquired all shares
in GE Real Estate Söder KB (CIN:. 969696-4361), now renamed Stim-
huset KB, at an estimated consideration of SEK 300.6 million in accord-
ance with the set out below. Final settlement of the consideration was
made in 2012 via a payment of an additional SEK 0.4 million.
The 2011 consolidated financial statements do not include any part
of the net sales or profit/loss from the limited partnership since the
acquisition was made at the end of the 2011 financial year. The Group
profit/loss for 2012 includes the limited partnership's operations for
the entire 2012 financial year. In the acquisition of the limited partner-
ship, the total value of the acquired assets and liabilities, consideration
and impact on the Group’s cash and cash equivalents was as follows:
Note 21.
ACQUISITION OF SUBSIDIARIES
52
2012 | STIM ANNUAL REPORT
Alfons Karabuda
Leif Pagrotsky
Eva Botmar
Nutta Hultman
Monica Ekmark
Kristina Rennerstedt
Martin Q. Larsson
Erik Peters
Johan Ekelund
Kjell-Åke Hamrén
Chairperson of the Board of Directors
Kenth Muldin
CEO
Evy Jakobsson
Authorized public accountant
Kettil Skarby
Appointed by the General Meeting
Stockholm, April 25, 2013
The income statement and balance sheet will be presented to the Annual General Meeting on May 22, 2013, for adoption.
Our auditor's report was submitted on April 25, 2013.
SIGNATURES
53
2012 | STIM ANNUAL REPORT
To the annual general meeting of the Society
Svenska Tonsättares Internationella Musikbyrå (STIM) u.p.a.
Corporate Identity Number 702002-3524
Report on the annual accounts
We have audited the annual accounts of Svenska Tonsättares Inter-
nationella Musikbyrå (STIM) u.p.a. for the year 2012. The annual
accounts and the consolidated accounts of the Society are included in
the printed version of this document on pages 36 - 53.
Responsibilities of the Board of Directors and the CEO for the annual accounts
The Board of Directors and the CEO are responsible for the prepa-
ration and fair presentation of annual accounts in accordance with
the Annual Accounts Act, and for such internal control as the Board
of Directors and the CEO determine is necessary to enable the prepa-
ration of annual accounts that are free from material misstatement,
whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these annual accounts
based on our audit. The audit was conducted in accordance with
generally accepted auditing standards. This implies that the author-
ized public accountant has performed the audit in accordance with
International Standards on Auditing and generally accepted audit-
ing standards in Sweden. Those standards require that the authorized
public accountant complies with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the
annual accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the annual accounts. The proce-
dures selected depend on the auditor’s judgment, including the assess-
ment of the risks of material misstatement of the annual accounts,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the Society’s preparation
and fair presentation of the annual accounts in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Society’s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting esti-
mates made by the Board of Directors, as well as evaluating the overall
presentation of the annual accounts.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the annual accounts have been prepared in accordance
with the Annual Accounts Act and present fairly, in all material respects,
the financial position of the Society as of December 31, 2012, and of
its financial performance and cash flows for the year then ended, in
accordance with the Annual Accounts Act. The statutory administra-
tion report is consistent with the other parts of the annual accounts.
We therefore recommend that the annual general meeting of the Soci-
ety adopt the income statement and balance sheet for the Society.
AUDIT REPORT
54
2012 | STIM ANNUAL REPORT
Report on other legal and regulatory requirements
In addition to our audit of the annual accounts, we have also exam-
ined the proposed appropriations of the Society’s profit or loss and
the administration of the Board of Directors and the CEO of Svenska
Tonsättares Internationella Musikbyrå (STIM) u.p.a. for the year 2012.
Responsibilities of the Board of Directors and the CEO
The Board of Directors is responsible for the proposal for appropria-
tions of the Society’s profit or loss, and the Board of Directors and the
CEO are responsible for administration under the Swedish Cooperative
Societies Act.
Auditors’ responsibility
Our responsibility is to express an opinion with reasonable assurance
on the proposed appropriation of the Society’s profit or loss and on the
administration based on our audit. We conducted the audit in accord-
ance with generally accepted auditing standards in Sweden.
As a basis for our opinion on the Board of Directors’ proposed appropri-
ation of the Society’s profit or loss, we examined whether the proposal
is in accordance with the Swedish Cooperative Societies Act.
As a basis for our opinion concerning discharge from liability, in addi-
tion to our audit of the annual accounts, we examined significant
decisions, actions taken and circumstances of the company in order to
determine whether any member of the Board of Directors or the CEO
is liable to the Society. We also examined whether any member of the
Board of Directors or the CEO has, in any other way, acted in contravent-
ion of the Swedish Cooperative Societies Act, the Annual Accounts Act
or the Society’s Articles of Association.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
We recommend to the annual general meeting of the Society that the
profit be appropriated in accordance with the proposal in the statutory
administration report and that the members of the Board of Directors
and the CEO be discharged from liability for the financial year.
Stockholm, April 25, 2013
Evy Jakobsson
Authorizsed Public
Accountant
Kettil Skarby
Appointed by the general
of the Society
55
2012 | STIM ANNUAL REPORT
Photo: The pictures on page 13 and page 34 were taken by photographer Rickard Eriksson. The other pictures were taken by photographer Viktor Gårdsäter
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