avex vision 2027
Medium-term Management Plan

In the avex vision 2027 Medium-term Management Plan, "seek to discover and develop beloved IPs in many different regions and fields" has been declared a key strategy based on the Corporate Philosophy. Management, Labels, Live Concerts, and Animation & Video are positioned as the main domains of Avex, and four key initiatives will be promoted.

With a view to global expansion and the development of continuity-rich IP, avex Youth will be launched and function as an organization for new talent discovery and development.
avex Youth will leverage Avex's nationwide network that has been approaching more than 10,000 potential gems each year until now, to form projects for each cultural sector and hold auditions based on their respective exit strategies and direction to improve the quality of talent discovery and speed of development. In addition, by maintaining an awareness of continuity for each IP during the talent development stage, we will aim to develop IPs that are "beloved" for even longer.

In accordance with changes in the market, we will strive to discover promising artists from a broad range of perspectives and to provide them with optimal opportunities for development.

Avex is also focusing on the market of music festivals, which differ from the live concerts of specific artists. Based on the knowledge and technologies Avex Group has accumulated for live concert solutions, we will aim to create events that can themselves be regarded as intellectual property for their qualities as content.

Hit productions in the fields of animation and video are inevitably loved both in Japan and abroad and are expected to generate long-term revenue. To achieve the dual strategy of producing original IP in-house and acquiring strong IP from other companies, we will pursue improvements along two tracks: strength in 360-degree development and production capabilities that involve in-house and outside personnel.

In addition to the fundamental personnel augmentations needed to promote these four key initiatives, we will also build a younger organizational structure to better adapt to the times. Specifically, the Group will enhance the quantity and quality of A&Rs who supervise artist discovery and development, provision of tracks and other related activities overall. In addition, we will ensure the quantity and quality of producers (PDs) supervising animation and video titles and the development of events and live concerts; we will aim to become an entertainment company chosen by a more diverse range of artists.

Additionally, concerning the monetization functions we have accumulated to date, we will consider which operations need to be worked on in-house and which need to be improved in cooperation with other companies and work to optimize resource allocation on that basis. Then, those optimized resources will be allocated for investments in IP development.

Besides the four key initiatives, we will keep investing in domains that will help utilize our intellectual property over the long term, aiming to establish a presence ensuring that we are chosen for IPs regardless of the future.

(Revised May 9, 2024) Our efforts to identify and develop IP for future growth are largely progressing well across all business areas; however, to reflect slow monetization in the development of Avex IP and higher-then-anticipated upfront investment and expenses, we have lowered our previous target for FY2024, and we do not aim to achieve operating profit of 15.0 billion yen, which was initially the target for FY2026, before FY2027.

Cash on hand and operating cash flow will be allocated to strategic investments for IP creation and shareholder return. We will make flexible decisions regarding surplus funds, including additional shareholder return and the strengthening our financial position, with consideration given to the business environment.