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    Keer terug naar de 2020 omgeving

    Movement in provision for temporary differences in cost coverage 2021 Stemra

    The provision for temporary differences in cost coverage includes the €6.6 million appropriated reserve available at the end of 2020 plus the credit balance cost coverage over 2021 of €7.7 million.

    This balance cost coverage includes a one-off gain of €7.1 million as a result of the amended Distribution Rules regarding the withholding of administrative fees. The administrative expenses were also lower than budgeted.

    Movement in provision for temporary differences in cost coverage 2021 Buma

    The provision for temporary differences in cost coverage includes the €33.8 million appropriated reserve available at the end of 2020 plus the credit balance cost coverage over 2021 of €10.7 million.

    This balance cost coverage contains a €4.1 million difference between the realised investment result (€6.9 million) and the normative investment result used to partly cover the administrative expenses (€2.8 million). In addition, a one-off gain of €5.4 million was realised as a result of the amended Distribution Rules regarding the withholding of administrative fees, and the administrative expenses were lower than budgeted.

    Management costs vs copyright royalties (budget 2022)

    € 13,4 m
    Actual 2020
    € 13,5 m
    € 19,9 m
    € 16,1 m
    Budget 2021
    € 14,8 m
    Budget 2022

    Under this item, the management costs are related to the copyright royalties. The standard is 15%.

    In the 2022 budget Buma/Stemra jointly will meet this standard with a 14.8% cost ratio. On the basis of the provisional cost allocation, Stemra is expected to arrive at a cost ratio of 15.9%.

    A decline is expected once the incidental high costs of replacing the obsolete IT system normalise and the results of the strategy implementation become visible.

    Management costs vs distribution (budget 2022)

    12,9%
    Actual 2020
    16,2%
    Budget 2021
    15,8%
    Budget 2022

    Under this item, the management costs are related to the distribution. The standard is 15%.

    In the 2022 budget Buma/Stemra jointly does not meet this standard with a 15.8% cost ratio. This is mainly due to the COVID-19 impact on Buma’s funds available for distribution and the incidental high costs for the replacement of the outdated IT system. Once these effects normalise and the results of the implementation of the strategy become visible, this cost ratio is expected to decrease. Stemra is, however, expected to satisfy this standard in 2022.

    Management costs trend (budget 2022)

    4,3%
    Actual 2020
    13,8%
    Budget 2021
    6,0%
    Budget 2022

    The standard focuses on the trend of the management cost level. The standard stipulates that the costs should not increase any more than the consumer index price of the year to which the annual report relates.

    The budgeted cost increase in 2022 will turn out higher than the change in the consumer price index for the year. This is due to the catching up on improvement and change initiatives postponed from previous years, including the replacement of the IT system. The actual change in the consumer price index for 2022 will not be known until early 2023.

    Changes in the appropriated reserve Stemra 2020

    The deficit from ordinary activities for 2020 was taken from the appropriated reserve. The extraordinary expense for the payment into the Music Industry Emergency Fund was taken from the continuity reserve. This appropriation of the result is included in the financial statements.

    Management costs vs distribution (budget 2021)

    12,2%
    Actual 2019
    12,9%
    Actual 2020 (provisionally)
    16,2%
    Budget 2021

    Under this item, the management costs are related to the distribution. The standard is 15%.

    In the 2021 budget, this standard is not satisfied. This is primarily because of Buma’s decreasing distribution in 2021, arising from the lower collection. Stemra is expected to satisfy this standard, however; distribution there is expected to increase, especially due to the catching up on private copy funds from previous years.

    Management costs trend (budget 2021)

    -10,2%
    Actual 2019
    4,3%
    Actual 2020 (provisionally)
    13,8%
    Budget 2021

    The standard focuses on the trend of the management costs level. The standard stipulates that the costs should not increase any more than the consumer index price of the year to which the annual report relates.

    The budgeted cost increase in 2021 will turn out higher than the change in the consumer price index for the year. This is due to the catching up on improvement and change initiatives postponed from previous years, including the replacement of the IT system. The actual change in the consumer price index for 2021 will not be known until early 2022.

    Over the series of several years, since the introduction of the standard, the development of the management costs has remained within the development in the consumer price index.

    Management costs vs copyright royalties (budget 2021)

    11,9%
    Actual 2019
    13,5%
    Actual 2020 (provisionally)
    16,1%
    19,9%
    16,1%
    Budget 2021

    Under this item, the management costs are related to the copyright royalties. The standard is 15%.

    In the 2021 budget, this standard is not satisfied, mainly because of the decrease in collection of royalties as a result of the coronavirus measures. The budgeted management costs are also increasing, especially in connection with the necessary replacement of the outdated IT system. Without the impact of the coronavirus, the expense ratio would have remained below the standard of 15.0%.

    Publication

    Head office
    Saturnusstraat 46-62
    2132 hb hoofddorp

    T: 023 – 799 79 99
    E: info@bumastemra.nl
    bumastemra.nl

    Editorial board
    vereniging buma

    Realisation
    Merkelijkheid

    Management costs Stemra

    € 4,2 m
    2017
    € 3,3 m
    2018
    € 4,5 m
    2019
    € 4,6 m
    2020
    € 4,7 m
    2021

    In 2021, management costs rose by €0.1 million compared to the previous year. They remained €0.6 million under budget for 2021, as a result of cost control measures, including the decision to postpone filling vacancies and defer less urgent projects. As in 2020 and 2019, an allocation key of 83/17 (Buma/Stemra) has been applied.

    Stemra’s management costs in 2021 consisted of personnel costs (€2.1 million), general costs (€2.5 million) and accommodation costs (€0.1 million).

    Management costs Buma

    € 26,5 m
    2017
    € 26,0 m
    2018
    € 21,8 m
    2019
    € 22,7 m
    2020
    € 23,2 m
    2021

    In 2021, Buma’s management costs rose by €0.5 million compared to the previous year. They remained €2.7 million under budget for 2021, as a result of cost control measures, including the decision to postpone filling vacancies and defer less urgent projects. As in 2020 and 2019, an allocation key of 83/17 (Buma/Stemra) has been applied. Personnel costs allocated to Buma increased by €0.2 million and other general costs increased by €0.4 million. Accommodation costs were virtually the same and depreciation costs decreased by almost €0.2 million.

    Buma’s management costs in 2021 consisted of personnel costs (€10.3 million), general costs (€10.5 million), depreciation costs (€1.7 million) and accommodation costs (€0.7 million).

    Changes in the appropriated reserve Stemra 2019

    The surplus of the operating statement for 2019 is added to the appropriated reserve. This appropriation of the result is included in the financial statements.

    Changes in the appropriated reserve Buma

    The difference between the realised investment result (€ 8.7 million) and the normative investment result that is used to partially cover the management costs (€ 2.0 million), i.e. €6.7 million, was added to the appropriated reserve. This appropriation of the result is included in the financial statements.

    Changes in the appropriated reserve Buma 2019

    The difference between the realised investment result (€ 15.9 million) and the normative investment result that partially covers the management costs (€ 2.2 million), i.e. € 13.7 million, is added to the appropriated reserve. This appropriation of the result is included in the financial statements.

    Management costs trend

    -4,6%
    Actual 2018
    -3,8%
    Budget 2019
    3,5%
    Budget 2020

    The standard focuses on the trend of the management costs level. The standard stipulates that the costs should not increase any more than the consumer index price of the year which the annual report relates to.

    Potentially, the 2020 cost increase due to initiatives for improvement and change will be higher than the CPI change in that year. This cannot be determined – and if necessary explained – until the actual CPI change is known at the beginning of 2021.

    Management costs vs distribution

    € 14,2 m
    Actual 2018
    € 13,2 m
    Budget 2019
    € 13,0 m
    Budget 2020

    Under this item, the management costs are linked to the distribution. The standard is 15%. This standard is met in Budget 2020.

    Management costs vs copyright royalties

    13,7%
    Actual 2018
    13,2%
    Budget 2019
    13,0%
    Budget 2020

    Under this item, the management costs are linked to the copyright royalties. The standard is 15%. This standard is met in Budget 2020.

    Management costs trend Stemra

    41,0%
    2017
    -21,3%
    2018
    35,6%
    2019
    4,3%
    2020
    2,0%
    2021

    The CPI movement in 2021 was 2.7%. The cost development at Stemra did not exceed this percentage; this standard was therefore met in 2021.

    Management costs vs Distribution Stemra

    16,2%
    2017
    13,1%
    2018
    15,5%
    2019
    14,9%
    2020
    8,9%
    2021

    Under this item, the management costs are related to the distribution. The standard is 15%. This standard was met in 2021.

    Management costs vs copyright royalties Stemra

    11,5%
    2017
    10,2%
    2018
    13,8%
    2019
    12,9%
    2020
    11,8%
    2021

    Under this item, the management costs are related to the royalties. The standard is 15%. This standard was met in 2021.

    Management costs trend Buma

    5,3%
    2017
    -1,9%
    2018
    -16,0%
    2019
    4,3%
    2020
    2,0%
    2021

    The CPI movement in 2021 was 2.7%. The cost development at Buma did not exceed this percentage; this standard was met in 2021, therefore.

    Management costs vs Distribution Buma

    15,9%
    2017
    14,5%
    2018
    11,8%
    2019
    12,5%
    2020
    13,8%
    2021

    Under this item, the management costs are related to the distribution. The standard is 15%. This standard was met in 2021.

    Management costs vs copyright royalties Buma

    15,3%
    2017
    14,3%
    2018
    11,6%
    2019
    13,6%
    2020
    14,1%
    2021

    Under this item, the management costs are related to the royalties. The standard is 15%. This standard was met in 2021.

    Income Stemra

    € 3,7 m
    2017
    € 4,4 m
    2018
    € 5,0 m
    2019
    € 4,8 m
    2020
    € 12,8 m
    2021

    Income rose by €8.0 million in 2021. This was mainly due to a one-off gain (€7.1 million) resulting from the transition from realising the cost withholding at the distribution moment to realising it at the collection moment.

    Financial income and expenses Buma

    10,4
    2017
    -7,9
    2018
    15,4
    2019
    8,7
    2020
    6,6
    2021

    The financial income and expenses in 2021 mainly concerned the net investment result (€6.9 million). In 2021, a return of 3.7% was achieved on the investment portfolio. Investments in equities (+26%) in particular achieved good returns. This was offset by a negative return (-1%) on fixed-income securities and cash and liquid assets.

    To partially cover the administrative expenses, a normative result is used; the additional investment result was added to the provision for temporary differences in cost coverage.

    Income Buma

    € 22,9 m
    2017
    € 23,6 m
    2018
    € 20,0 m
    2019
    € 20,8 m
    2020
    € 27,3 m
    2021

    Income rose by €6.5 million in 2021. This was mainly due to a one-off gain (€5.4 million) resulting from the transition from realising the cost withholding at the distribution moment to realising it at the collection moment.

    Distributed to CMO’s abroad Stemra

    € 2,1 m
    2017
    € 2,7 m
    2018
    € 3,4 m
    2019
    € 2,6 m
    2020
    € 5,7 m
    2021

    Distributed to rights owners Stemra

    € 20,8 m
    2017
    € 22,4 m
    2018
    € 25,4 m
    2019
    € 28,5 m
    2020
    € 42,9 m
    2021

    Addition to Fund for Social and Cultural Purposes

    € 9,9 m
    2017
    € 10,5 m
    2018
    € 10,9 m
    2019
    € 8,6 m
    2020
    € 7,9 m
    2021

    Distributed to CMO’s abroad Buma

    € 53,5 m
    2017
    € 57,9 m
    2018
    € 55,0 m
    2019
    € 57,5 m
    2020
    € 52,1 m
    2021

    Distributed to rights owners Buma

    € 84,3 m
    2017
    € 87,3 m
    2018
    € 95,3 m
    2019
    € 95,5 m
    2020
    € 87,5 m
    2021

    Abroad Stemra

    € 3,8 m
    2017
    € 5,7 m
    2018
    € 3,8 m
    2019
    € 4,1 m
    2020
    € 4,0 m
    2021

    Fees collected from abroad showed a limited decrease in 2021 (€0.1 million). That was better than expected; we had anticipated a bigger ‘carve-out effect’ for 2021 from the pan-European direct licensing of online use to Digital Service Providers.

    Home copy / Lending right / Graphic

    € 10,3 m
    2017
    € 5,3 m
    2018
    € 5,8 m
    2019
    € 4,4 m
    2020
    € 4,1 m
    2021

    In 2021, a total of €0.2 million less was collected from Home Copy/Lending Right/Graphic compared to 2020. Stichting de Thuiskopie temporarily suspended distribution during 2021. As in 2020, Stichting de Thuiskopie withheld a reservation of 20% on account of the main distribution still to be determined.

    Online Stemra

    € 5,3 m
    2017
    € 5,3 m
    2018
    € 7,5 m
    2019
    € 11,7 m
    2020
    € 13,8 m
    2021

    The continuing growth in income from online music use increasingly offsets the decline in the traditional Stemra markets. In 2021, Online had the largest share in Stemra’s collection (34%), while in 2009 it had the smallest share (3%). In 2021 Stemra’s collection from online music use increased by €2.1 million, or 18%. The growth in this market is mainly due to the increase in streaming and video on demand.

    Radio & TV Stemra

    € 7,0 m
    2016
    € 5,8 m
    2017
    € 6,6 m
    2018
    € 6,1 m
    2019
    € 6,4 m
    2020

    Compared to 2020, royalties from the Radio & TV category increased by €0.3 million. This was mainly due to the growing on-demand income from TV channels, which generates a larger share in royalties for Stemra. In addition, there were positive final settlements in 2021 for the year 2020 due to good recovery in the RTV market.

    PIEB

    € 4,9 m
    2017
    € 3,9 m
    2018
    € 4,0 m
    2019
    € 5,3 m
    2020
    € 6,1 m
    2021

    The royalties from Own-Management Productions (abbreviated in Dutch as PIEB) and Special Licensing rose in 2021 due to incidentally high income from commercials around major events in 2021, such as the Eurovision Song Festival in Rotterdam and the Grand Prix in Zandvoort.

    BIEM

    € 6,1 m
    2017
    € 5,6 m
    2018
    € 4,9 m
    2019
    € 4,2 m
    2020
    € 5,5 m
    2021

    The royalties from BIEM contracts for mechanical sound carriers, a traditional Stemra market segment, increased by €1.3 million in 2021. This was due mainly to the growth in vinyl pressings.

    Abroad Buma

    € 14,7 m
    2017
    € 16,5 m
    2018
    € 16,4 m
    2019
    € 15,2 m
    2020
    € 13,6 m
    2021

    Royalties from abroad fell by €1.6 million (-11%) in 2021 compared to 2020. This decline was more limited than expected; besides the impact of Covid-19, we also took into account a so-called ‘carve-out effect’ of the pan-European direct licensing of Digital Service Providers, which means that Buma no longer receives the income via foreign affiliates.

    Online Buma

    € 10,1 m
    2016
    € 13,6 m
    2017
    € 13,7 m
    2018
    € 19,0 m
    2019
    € 29,9 m
    2020
    € 36,0 m
    2021

    Online is the most important growth market. The share of this market segment in Buma’s total collection increased from 18% in 2020 to 22% in 2021. This share was still just 10% in 2019; since then, the collection has increased by €17 million, or 90%. The growth in this market is mainly due to the increase in streaming and video on demand. Buma concluded licence agreements with new parties and improved the agreements with a few large parties.

    Restaurants and bars

    € 14,3 m
    2017
    € 14,9 m
    2018
    € 15,2 m
    2019
    € 9,1 m
    2020
    € 7,8 m
    2021

    Royalties from public use in Restaurants and bars decreased by 49% compared to 2019. Restaurants and bars were compensated by Buma in 2020 and 2021 for the periods in which this sector was forced to close.

    Workspaces, shops and stores

    30,9
    2017
    30,4
    2018
    30,7
    2019
    29,4
    2020
    28,0
    2021

    Income from public use in Workspaces, shops and stores decreased by 5% compared to 2020, largely due to measures to combat the Covid-19 pandemic. Shops and stores were compensated by Buma for the periods in which this sector was forced to close.

    Live performances

    € 30,7 m
    2017
    € 34,1 m
    2018
    € 35,2 m
    2019
    € 16,0 m
    2020
    € 6,4 m
    2021

    Compared to 2019 (the last year without a Covid-19 impact), the royalties from the live performances segment declined by €28.8 million, or 82%, in 2021. It goes without saying that this decrease was caused by the large number of cancelled and postponed performances and events. The number of licensed performances and events decreased from 36,000 in 2020 to 17,633 in 2021, compared to over 101,500 in 2019.

    Radio & TV Buma

    € 68,2 m
    2017
    € 71,4 m
    2018
    € 71,2 m
    2019
    € 67,9 m
    2020
    € 72,7 m
    2021

    Income from the Radio & TV market recovered in 2021 to above the level of 2019. This industry saw its advertising income fall sharply in 2020, shortly after the outbreak of Covid-19. At 44%, this market segment still represents the largest share of Buma’s total collection by far.

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