Vision & Concept 2004

Transcription

1 Sanno Park Tower Building, Nagatacho, Chiyoda-ku, Tokyo JAPAN Phone Fax Vision & Concept 2004

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3 USEN at a glance Company History About USEN 3 Business Domains and Our New Area of Operations USEN continues to focus on its three main domains of Broadcasting Services, in which we are proud of our overwhelming market share, Broadband Business, which we see as a future core business and Karaoke Business, for which our market share continues to expand. In addition, with our Digital Content Platform concept, which has been realized through the effective utilization of the resources of all the companies within our group, USEN is aiming to realize a truly ubiquitous society. 4 Management Resources Customer creation capability, through our overwhelming marketing power; content creation capability, that ensures high customer satisfaction; network engineering capability, that is compatible with any platform; and solid group organizational strength, characterized by a high degree of group synergy and flexibility. It is these four management resources that create USEN s dominance in the industry. 189Branch Offices, 5,115Personnel Through USEN s nationwide network of 189 branch offices and a 5,115 strong workforce, including sales personnel, engineers and office staff, USEN has a system that is fully able to respond to customer needs. USEN continues to undertake regionally based sales activities that completely take into account each area s market conditions. June 1961 September 1964 October 1981 April 2000 July 2000 March 2001 Launched cable music broadcasting service as the unincorporated enterprise Osaka Cable Broadcasting Company. Reorganized as a public company capitalized at 3 million. April 2001 Launched multi-channel stereo cable music broadcasting service through coaxial cable. Changed company name to USEN Broadnetworks. U s Communications Corp. (a consolidated subsidiary) acquires a license as a Type I telecommunications carrier. May 2001 November 2001 Launched FTTH broadband Internet access service BROAD-GATE 01. December 2002 September 2003 Listed on the Osaka Securities Exchange Nasdaq Japan (current Hercules). Launched the digital music broadcast service SOUND PLANET via CS (Communication Satellite). January 2004 Established Show Time Inc. in a joint venture with Rakuten Inc. to distribute broadband content. Tie-up agreement for an optical fiber business entered into with Sony Communication Network Corporation. A collaborative agreement was reached with SKY Perfect Communications Inc., regarding its video distribution business, in the form of leasing optical fiber held by group company U s Communications Corp. BMB Corp. becomes a consolidated subsidiary through acquisition of the company s shares Launched cable music broadcasting service. With the establishment of our paid content operations and by continuing to meet user needs, USEN acquires an overwhelming market share of more than 80% and becomes the first successful player in this field in Japan First company in the world to launch FTTH service on a commercial basis. Through our ultra high-speed Internet access service with speeds up to 100Mbps for private users and a maximum of 100Mbps or 1Gbps for corporate users (depending on the plan type), combined with our content service, USEN becomes a pioneer in broadband market creation for FTTH. About USEN 121,900 million With total sales of 121,913 million for the fiscal year ended August 2004, USEN has achieved sales profits of 5,616 million and a net profit of 1,718 million. The success of structural business reforms resulted in large-scale increases in all domains. September 2004 November 2004 January 2005 AVEX Inc. s shares acquired to become a company subject to the Equity Method. Business tie-up with CYBIRD Co., Ltd. in the area of mobile operations. KLab Inc. becomes a consolidated subsidiary. GAGA COMMUNICATIONS INC. becomes a consolidated subsidiary through acquisition of the company s shares % USEN remains proud of its broadcasting services, which in terms of scale is among the largest in the world. With our market share of 80%, we have an overwhelming strength that our competitors are unable to match. March 2005 Japanese company name changes to USEN and English name to USEN CORPORATION. NEXT STAGE Establishment of the Digital Content Platform concept. Through our concept of a Digital Content Platform, which delivers digital content to all our customers, USEN aims to realize a truly ubiquitous society for this new era.

4 Vision & Strategy

5 USEN expanding to create an organization that delivers the ultimate synergy of media and content through a common vision and strategy. United Sensational Entertainment Network The USEN group continues to expand through active capital tie-ups. This does not simply mean just the expansion of the scale of business. The Digital Content Platform concept, in grasping the complementary functions of each company within the group, has given rise to synergies and increased the overall power of the group in achieving its vision. Communication satellite Broadband (Optical Fibre, ADSL) End User all BROAD-GATE TV customers... Mobile Broadcasting SOUND PLANET anywhere, USEN440 Coaxial cable anytime C SOTSU AGENCY SUNRISE C Golf Digest C 2004 New Line Productions, Inc. All Rights Reserved C 2004 Miramax Film Corp. All Rights Reserved. Vision & Strategy KLab Inc. Research, development and provision of software / solutions mainly for mobile phones Integrating all media USEN USEN is utilizing the optical fiber networks that are concentrated in urban areas, the countrywide coaxial cable networks, the satellite network that provides broad coverage and the mobile communications networks to provide a total media network. This is being further promoted by content channel integration. MEDiA K.K. Management of voice and data forwarding services BMB Corp. Development, manufacturing and sales of karaoke equipment; karaoke music transmission. U's Communications Corp. Type 1 carrier; construction and maintenance of optical fiber cable network infrastructures. E n d BROAD-GATE 01 U s e r Show Time Karaoke On Gen download Content Visual content all ChakuUtaJETS Music download for mobiles c usto m ers... Mobile phone a n y w h ere, a n yti m e U's MUSIC Co., Ltd. Production of master CDs, tapes and videos; management and development of music copyrights. ShowTime, Inc. Operation of a streaming content portal site for broadband users. AVEX GROUP HOLDINGS INC. Developing, producing and providing entertainment content for customers. C 2004 Scion Films Phantom Production Partnership. C 2004 New Line Productions, Inc. All Rights Reserved GAGA COMMUNICATIONS, INC. The "visual content provider"- film distribution via theaters, video, television, broadband and other media. C 2004 FOCUS FEATURES, LLC. ALL RIGHTS RESERVED. Integrating all content USEN In addition to our content organizational skills that have been accumulated over many years and our favorable business relationships with powerful content holders, the USEN group also boasts a record company with famous artists under contract and film distributor of overseas movie content. Through our group companies USEN has been able to gather eclectic content together in our channel line up. Vision & Strategy

6 Business Structure

7 4 Management Resources 3 Business Domains and Our New Area of Operations Customer Creation Our vast customer base created by our comprehensive nationwide sales system together with the provision of a variety of services that meet customers needs allows us to maximize sales. Digital Content Platform Concept Through the effective utilization of the resources of each of the companies within the USEN group, we are aiming to realize a service that through a variety of media provides various content in an integrated form. It is a concept designed to realize a truly ubiquitous society. The Digital Content Platform concept will create a business structure that generates a further source of revenue in addition to the present three core businesses. Content Organization Broadband Business Digital Content Platform Concept Business Structure USEN, through our close regionally orientated organizational system and the two-way communication between us and customers arising from our cable broadcasting activities, has achieved content composition skills that always ensure the highest level of customer satisfaction. Network Engineering USEN is proud of our engineering ability which enables us to utilize a variety of networks, including coaxial cable networks, optical fiber networks, and mobile telephone networks. The FTTH service which was launched in March 2001 is the world s first such commercial service. This is a comprehensive service that includes everything from infrastructure to ISP and content. As a new business for which USEN has given priority in terms of investment, development in this area continues as it is expected to be a core business for us in the future. USEN s aim is to become a Broadband Station providing exceptional content distribution. Karaoke Business USEN is engaged in both the maintenance and sales of commercial transmission type karaoke equipment and the operation of karaoke establishments. Through the growth of the group as a whole, USEN continues to expand our market share, which is reflected in a trend of steady expansion of revenues in this area. K a r a o k e B r o a d c a s t i n g B r o a d b a n d B u s i n e s s B u s i n e s s S e r v i c e s We believe that promotion of this concept will result in a huge leap forward in USEN s corporate value. This is a planned business concept which we believe Business Structure will revolutionize the industry. Group Organization Broadcasting Services With our expanded corporate group line-up, created through alliances and M&A, USEN has strengthened the functionality of the group as a whole. Through the creation of a group based on a shared vision, USEN has achieved exceptional performance. USEN is proud of its overwhelming market share of 80%, which makes it the world s largest cable broadcast service. USEN provides a broadcast service that utilizes both coaxial cable and communications satellite broadcasting. This is USEN s core business, providing a stable source of revenues. Forward-Looking Statements This annual report contains plans, predictions, strategies and beliefs of the USEN Group, which is made up of the parent company, its subsidiaries and associated companies. Those parts of the report which do not pertain to past events are forward-looking statements relating to future company results, and are based on the information available to management at the time of their announcement. Accordingly, readers are strongly advised not to base investment decisions exclusively on the content of this report. Actual business results, economic conditions, exchange rates and other factors affecting the industries in which USEN is active can differ significantly from the projections made herein, for a wide variety of reasons.