Report on the 43rd Annual Meeting of Shareholders
June 24, 2005
Video Research Ltd. (Head Office in Tokyo, President and CEO Tsuyoshi Takeuchi) held the 43rd annual meeting of shareholders today starting from 11:00 AM, and completed all the items on the agenda. Here we would like to report the summary of our business, the settlement of accounts and the appointment of directors for this term.
Summary of business
Under the economic conditions the total domestic advertisement expenditure increased after four years of reduced spending, Video Research Ltd. made continued efforts to achieve profitability by providing communication information services around the axis of media research and market research.
However, the company recorded decreases in both sales and profit for this term. The total sales amounted to 19,162,428,000 yen (decrease by 0.9% from the previous term), operating profit was 2,063,236,000 yen (decrease by 11.7% from the previous term), ordinary profit was 2,114,196,000 (decrease by 11.2% from the previous term) and the net profit for the term was 54,079,000 yen (decrease by 95.9% from the previous term).
As for sales, while the market information service recorded a revenue increase of 9.6% from the previous term, sales related to TV ratings in particular continued to lag, leading to a slight decrease in overall sales from the previous term.
On the expenditure side, equipment investments were made in order to cope with the expansion of the local ratings business and the digitalization of TV ratings measuring devices. In addition, depreciation costs for development and business carried forward during the previous year piled up heavily, being the main reason for the decrease in ordinary profit by more than 10%.
As for extraordinary expense, because Broadcasters Market Research Co.Ltd., one of the group companies, is now under a clearing procedure, equivalent value for the amounts invested in the said company, loss in capital investments, and loss from write-down of investments in other affiliates were recorded on this occasion. The result was an extraordinary expense of 1,990,559,000 yen.
Statement of accounts for the 43rd term (FY 2004)
Summary of the Statements of Profits and Losses
From April 1, 2004 to March 31, 2005
|Ordinary profit and loss||
|Operating profit and loss|
|Non-operating profit and loss|
|Extraordinary profit and loss|
|Net profit before income tax||
|Corporate,inhabitant and enterprise taxes||
|Adjustments for income taxes,etc.||
|Net profit for the current term||
Plans for this term
In this last stage of the three-year management plan, Video Research Ltd. had reviewed and modified the original plan. The basic goal of the company for this term will be to become "the 'only' company group that provides information services in the communication field, mainly in the media." The company also plans to set out a new three-year management plan starting from next term, to present a clear and definite picture of the Video Research Group in the future.
Major plans in the future are as follows.
1. Media research business
- Responses to digital broadcasting
The company will continuously prepare systems to cope with digital broadcasting while making adjustments with those involved in the industry.
- Increase in sales through Nagoya PM
The company intends to increase sales with the individual ratings data in the Nagoya area collected using the People Meter system, which was launched in April 2005.
Also, in addition to the existing TV Commercial Statistic Data (Monthly Report), TV Commercial Statistic Data (Weekly Report) will be released from January 2006 in the Nagoya area.
- Expansion of local ratings survey business
While continuing the promotion and aim to increase sales of the Daily Report and iNEX2 subscription in the areas surveyed for 24 weeks, the company will also compile suggestions and make adjustments in order to conduct the survey for 52 weeks. In addition, the company will continue efforts for preparing the People Meter system in "Fukui," "Miyazaki" and "Yamanashi," the two-station areas.
- Enhancement of magazine media survey
By increasing the survey sample size to 10,000, compared to the previous sample size of 6,000, the company aims to provide more accurate data and to increase its sales.
- Approach for making the transportation-related survey autonomous
In order to standardize data on transportation media, the company will set out plans to make the system autonomous.
2. Market research business
- Expansion of the VR PersonalScan business
The company will expand the target range for the survey (from those aged 15-39 to those aged 15-49), as well as increase the number of samples from 2,000 to 2,700. It is also the company's intention to increase sales by intensifying promotion to advertising companies by providing data related to media planning.
- Evolution of the new survey service
The company will start measuring needs of consumers for the launch of "pharmaceuticals related business services." It also intends to increase orders for "visual database services."
3. Preparation of business base for operation
- Enhancing systems for quality control and information control as well as ensuring compliance
The company will enhance its system for quality control based on "ISO9001" and for personal information control using the "privacy mark." It will also set up a "Business Improvement Committee" from this term for the purpose of eliminating mistakes at work, as well as raising employees' awareness towards compliance.
- The company aims to improve the speed of handling management control information by starting the operation of a new management information system on a full scale basis, and to improve the efficiency of products business control.
- The company will forecast the future direction of group companies as well as determine the evolution of international business.
Appointment of directors
|President & CEO||Tsuyoshi Takeuchi|
|<Promoted>||Executive Senior Managing Director||Hideki Yamamoto||（Executive Managing Director）|
|<Promoted>||Executive Managing Director||Yoshifumi Oda||（Executive Director）|
|<Promoted>||Executive Managing Director||Shigeru Kido||（Executive Director）|
|<Promoted>||Executive Managing Director||Shigeho Hirota||（Executive Director）|
|<Promoted>||Executive Managing Director||Shuhei Mishima||（Executive Director）|
|<Promoted>||Executive Director||Yuji Kojima||（President& CEO of Video Research Interactive Inc.）|
|<Promoted>||Executive Director||Shigeo Ogawa||（Director of Technology Development Div.）|
|<Promoted>||Executive Director||Morimasa Mizutani||（Director of Regional Network Coordination Div.）|
|<Promoted>||Auditor||Shigeru Yagi||（Director of Market Research Div.）|
|Executive Director||Tatsuyoshi Takashima||(Executive Vice President of Dentsu Inc.)|
|<Newly appointed>||Executive Director||Hiroshi Inoue||(President of Tokyo Broadcasting System, Inc.)|
|Executive Director||Seiichiro Ujiie||(Representative Director & Chairman of Nippon Television Network Corporation)|
|Executive Director||Hisashi Hieda||(Chairman & CEO of Fuji Television Network, Inc.)|
|Executive Director||Michisada Hirose||(President & CEO of TV Asahi Corporation)|
|<Newly appointed>||Executive Director||Sadahiko Sugaya||(President of TV TOKYO Corporation)|
|Executive Director||Hideo Sugimoto||(Senior Corporate Officer of Hakuhodo Incorporated)|
|<Newly appointed>||Executive Director||Masahiro Yamamoto||(President of Mainichi Broadcasting System, Inc.)|
|<Newly appointed>||Executive Director||Yoshio Nishimura||(President of Asahi Broadcasting Corporation)|
|<Newly appointed>||Executive Director||Taizan Ishiguro||(President of Tokai Television Broadcasting Co., Ltd.)|
|<Newly appointed>||Executive Director||Kazuo Terasaki||(Senior Executive Director of Television Nishinippon Corporation)|
|Auditor||Kanekazu Sufu||(Assistant Director of Corporate Auditor Department, Dentsu Inc.)|
|Auditor||Osamu Naganuma||(President of Hokkaido Broadcasting Co., Ltd.)|
|Vice President||Yuichi Yasutake||Assumes the post of Corporate Advisor|
|Executive Senior Managing Director||Kazumasa Keimatsu||President and CEO of Video Research Comhouse Ltd.|
|Executive Managing Director||Yoshikazu Yamazaki|
|Executive Director||Masahiro Ohki|
|Executive Director||Nagasaburo Miyamoto||Assumes the post of Corporate Advisor|
|Executive Director||Yukio Sunahara||(Chairman of Tokyo Broadcasting System, Inc.)|
|Executive Director||Yutaka Ichiki||(Advisor of TV TOKYO Corporation)|
|Executive Director||Koji Takada||(President of Yomiuri Telecasting Corporation)|
|Executive Director||Haruyoshi Totsukawa||(Senior Managing Director of Kansai Telecasting Corporation)|
|Executive Director||Kenichi Yokoyama||(Representative Director & Chairman of Chubu-Nippon Broadcasting Co.,Ltd.)|
|Executive Director||Naofumi Sagara||(Managing Director of RKB MAINICHI BROADCASTING CORPORATION)|
* Titles shown in ( ) for outside directors and retiring directors are the titles as of June 24.