75 YEARS 1934 – 2OO9

ANNUAL REPORT 2OO8 CONTENTS

O2 CHAIRMAN AND CEO’S STATEMENT O6 THE YEAR’S HIGHLIGHTS 12 A FEW FACTS 14 THE UK’S POP FAVOURITES 16 THE UK’S CLASSICAL FAVOURITES 18 BUSINESS REVIEW 22 BROADCASTING 23 PUBLIC PERFORMANCE AND DUBBING 24 INTERNATIONAL 25 MEMBER SERVICES 28 PPL AND THE GOVERNMENT 3O OUR CULTURE 32 CORPORATE SOCIAL RESPONSIBILITY 34 OUR PEOPLE 36 IN ACTION 38 WE ARE 75 AND HOW THE WORLD SEES US 42 EXECUTIVE MANAGEMENT TEAM 43 SENIOR MANAGEMENT TEAM AND BOARD OF DIRECTORS 44 FINANCIAL STATEMENTS CHAIRMAN AND CEO’S STATEMENT

MUSIC MOVES US, IN WAYS THE SCIENTISTS ARE BARELY BEGINNING TO UNDERSTAND. YET WE SEE ITS POWER IN EVERYDAY LIFE, THE POWER TO HEAL, RELAX, MOTIVATE, ENERGISE AND INSPIRE, AT HOME AND AT WORK. ARTISTS AND RECORD COMPANIES HAVE ALREADY TRANSFORMED OUR LIVES AND CONTINUE TO POUR THEIR TALENT INTO NEW RECORDINGS TO ENRICH THEM FURTHER. OUR ROLE AT PPL IS TO ENSURE THOSE ARTISTS AND RECORD COMPANIES ARE REWARDED FOR THE VALUE THEY BRING, PARTICULARLY TO BUSINESSES WHO USE MUSIC TO ENHANCE THEIR WORKING ENVIRONMENT. MUSIC WORKS… AND MUSIC PAYS. OUR 75TH ANNIVERSARY THIS YEAR MARKS OUR TRANSFORMATION FROM HUMBLE ORIGINS GENERATING A FEW SHILLINGS FROM A CAFÉ IN 1934, TO BECOMING A MAJOR REVENUE SOURCE FOR ALL PERFORMERS AND RECORD COMPANIES.

‘WE HAVE A RELATIONSHIP WITH OUR STAKEHOLDERS WHICH GUARANTEES TRANSPARENCY AND ACCOUNTABILITY, AND LICENCE FEE INCOME £ THEIR CONSTANT INPUT ENSURES THAT WE KEEP MOVING IN THE RIGHT DIRECTION. LONG MAY + THIS PRECIOUS TWO-WAY 12 7.6M 11% RELATIONSHIP CONTINUE.’ CHAIRMAN AND CEO’S STATEMENT

Yes, 2008 was yet another successful The further consolidation of PPL’s completely With the necessary support and As for our staff, it is only individuals of year for PPL. Top line income grew to an fresh structure under its new constitution encouragement from the main PPL Board, high calibre, with the right skills, expertise, impressive £127.6 million which represents makes the organisation even more effective. the Performer Board and the Finance creative ideas and energy who will ever an 11% increase year-on-year. Public It enables all the record companies, big Committee we are also able to put into be recruited into our organisation. performance income alone grew by 11% and small, the performer community, studio effect a major programme of investment I thank each and every member of PPL staff and our International Department achieved producers, artist managers, the creative in IT and other technology as well as all for their hard work, loyalty, commitment, a spectacular result by increasing overseas unions and PPL’s own internal management systems and methods generally. Over the good humour and inspiration to each other. revenues to £15.4 million which is a 69% to work together in a collegiate way and next three years or so we shall re-engineer I thank the main PPL Board, the Performer improvement on 2007. in the spirit of harmony. This commonality of all our systems, introduce new ones and Board, the Finance Committee, the purpose has an obvious impact on the way launch an expanded menu of services Over the last four years alone, PPL’s efforts Distribution Committee and other sub- in which our members’ rights are managed, which will benefit everyone. This will enabled gross revenues to grow by a committees for their sterling and supportive enforced, licensed and monetised which include a globally enabled database massive 54%. At the same time, our input. Similar thanks must go to AIM, clearly must remain PPL’s key role. In which is so essential for the new era. This broad review of our business in 2008 cost-to-income ratio has remained relatively BPI, IFPI, MMF, the Musicians’ Union, addition, the collectivity established round comes at a time of much change. But at its low at between 14-15% in spite of PPL’s PPL’s recent and future success is only British Actors’ Equity and Music Producers’ the PPL table makes our voice considerably core is something timeless. Music works for acute need to make a substantial annual possible with the help and support of Guild for giving us their support, more powerful and effective when fighting all of us, in good times and in bad. And investment in IT systems and technology our staff and our stakeholders. endorsement and encouragement. for better and fairer copyright treatment for PPL will go on ensuring that we value those generally. These results are nothing short all performers and record companies alike. We have a relationship with our stakeholders I believe that PPL now has exceptionally who enrich our lives. of remarkable because they were achieved We shall continue to fight together with which guarantees transparency and solid foundations which will make it possible against the most difficult trading conditions Whilst this report is designed to review others here in the United Kingdom, in accountability, and their constant input for us to go from strength to strength. in living memory, including the infamous PPL’s performance and results during 2008, Brussels, in America and elsewhere until ensures that we keep moving in the right We shall spare no effort in doing so in credit crunch which affects the entire the document will be presented to the AGM our constituents can be satisfied that we direction. Long may this precious two-way order that our predecessors, as well as business environment worldwide. in June 2009 which marks 75 years of PPL. have a copyright regime based on equity relationship continue. those who come after us, can feel proud and fairness. All surviving and deliberate of what has been achieved. Here’s to From a personal point of view I feel very discrimination against our constituents PPL’s next Anniversary! proud and exceptionally privileged to be eventually must cease. at the helm of PPL on this special 75th Onwards and upwards! Anniversary. This is particularly true as the organisation has grown in stature and has been performing an increasingly important role at the heart of the record industry by acting on behalf of all individual performers and all record companies. FRAN NEVRKLA CHAIRMAN AND CHIEF EXECUTIVE OFFICER O6|O7

PERFORMERS CONTINUED TO GIVE US THEIR LOYAL AND VALUABLE SUPPORT THROUGH THE YEAR AND THEIR COMMITMENT TO THE COMPANY WAS IN CLEAR EVIDENCE AT THE HIGH TURN OUT WE HAD FOR THE SECOND ANNUAL PERFORMER MEETING (APM) WHICH TOOK PLACE AT ABBEY ROAD STUDIOS. OUR THANKS TO ALL WHO CONTRIBUTED ON THAT OCCASION TO THE VIDEO MESSAGE WHICH WAS DELIVERED SHORTLY AFTERWARDS TO THE PRIME MINISTER. MORE ON PAGE 28.

COPYRIGHT TERM. GLOBAL O8|O9

REACH. OUR INTERNATIONAL OUTREACH CONTINUES TO EXPAND RAPIDLY. THE ANNUAL GROWTH OF 69% IN OUR INTERNATIONAL INCOME TO £15.4M IS VERY GRATIFYING. THIS HAS BEEN ACHIEVED NOT JUST THROUGH THE HARD WORK AND COMMITMENT OF THE TEAM AT PPL IN LONDON BUT ALSO IT IS DOWN TO THE INCREASING TRUST, UNDERSTANDING AND BETTER RELATIONSHIPS WITH MANY COLLEAGUES FROM FELLOW ORGANISATIONS AROUND THE WORLD. MORE ON PAGE 24. MUSIC 1O|11 IN PUBLIC. A FEW FACTS. 12|13 42 2O7 INTERNATIONAL AGREEMENTS HOSPITAL RADIO STATIONS LICENSED WITH MUSIC LICENSING COMPANIES AROUND THE WORLD 66% 246 OF EMPLOYERS SAY STAFF MORALE IS MILES FROM DEVON TO LONDON IMPROVED WHEN MUSIC IS PLAYED CYCLED BY PPL FINANCE DIRECTOR, BEN LAMBERT, IN SUPPORT OF WHIZZ-KIDZ 71% 38,OOO OF PEOPLE SAY THAT THEY LIKE PERFORMERS FROM ALL OVER EUROPE SIGNED THE LISTENING TO MUSIC AT WORK PETITION SUPPORTING COPYRIGHT EXTENSION THIS UNIQUE CHART COMBINES PPL’S PUBLIC PERFORMANCE DATA WITH UK AIRPLAY IN ORDER TO DETERMINE WHICH TRACKS WERE PLAYED THE MOST. THE TWENTY SONGS LISTED HERE CAN TRULY THE UK’S POP CLAIM, THEREFORE, TO BE THE UK’S POP FAVOURITES. FAVOURITES 2OO8.

12345 67891O MERCY RULE THE WORLD VIVA LA VIDA BLACK & GOLD LOVE SONG SWEET ABOUT ME NO AIR CLOSER AMERICAN BOY APOLOGIZE DUFFY TAKE THAT COLDPLAY SAM SPARRO SARA BAREILLES GABRIELLA CILMI JORDIN SPARKS NE–YO ESTELLE FEATURING TIMERLAND PRESENTS A&M POLYDOR PARLOPHONE ISLAND EPIC ISLAND FEATURING CHRIS BROWN DEF JAM KANYE WEST ONEREPUBLIC (UNIVERSAL MUSIC) (UNIVERSAL MUSIC) (EMI) (UNIVERSAL MUSIC) (SONY MUSIC ENTERTAINMENT) (UNIVERSAL MUSIC) JIVE (UNIVERSAL MUSIC) ATLANTIC INTERSCOPE (SONY MUSIC ENTERTAINMENT) (WARNER MUSIC) (UNIVERSAL MUSIC)

1112131415 161718192O WARWICK AVENUE BLEEDING LOVE STOP AND STARE TAKE A BOW SPOTLIGHT CHASING PAVEMENTS WITH YOU THE MAN WHO CAN’T VALERIE ABOUT YOU NOW DUFFY LEONA LEWIS ONEREPUBLIC RIHANNA JENNIFER HUDSON ADELE CHRIS BROWN BE MOVED MARK RONSON FEATURING SUGARBABES A&M SYCO INTERSCOPE DEF JAM RCA XL RECORDINGS JIVE THE SCRIPT AMY WINEHOUSE ISLAND (UNIVERSAL MUSIC) (SONY MUSIC ENTERTAINMENT) (UNIVERSAL MUSIC) (UNIVERSAL MUSIC) (SONY MUSIC ENTERTAINMENT) (BEGGARS BANQUET) (SONY MUSIC ENTERTAINMENT) PHONOGENIC COLUMBIA (UNIVERSAL MUSIC) (SONY MUSIC ENTERTAINMENT) (SONY MUSIC ENTERTAINMENT) IT IS FITTING IN OUR ANNIVERSARY YEAR TO COMPILE THE FIRST EVER ANNUAL PPL CLASSICAL CHART. MANY OF OUR MEMBERS ARE CLASSICAL MUSICIANS AND THE TWENTY RECORDINGS LISTED HERE THE UK’S CLASSICAL CAN TRULY CLAIM TO BE THE UK’S CLASSICAL FAVOURITES. FAVOURITES 2OO8.

12345 67891O ELGAR GORECKI MAHLER VASKS VIVALDI BARBER PUCCINI KARL JENKINS PALLADIO RIMSKY-KORSAKOV GRIEG POMP AND CIRCUMSTANCE 3 PIECES IN OLDEN STYLE SYMPHONY NO.1 CELLO CONCERTO THE FOUR SEASONS NOCTURNE NESSUN DORMA LONDON PHILHARMONIC SCHEHERAZADE PIANO CONCERTO MARCH NO.1 AMADEUS CHAMBER ROYAL PHILHARMONIC DAVID GERINGAS (CELLO) NIGEL KENNEDY (VIOLIN) ERIC PARKIN (PIANO) FROM ‘TURANDOT’ ORCHESTRA WITH LONDON SYMPHONY KRYSTIAN ZIMERMAN (PIANO) LONDON PHILHARMONIC ORCHESTRA WITH ORCHESTRA WITH RIGA PHILHARMONIC ENGLISH CHAMBER CHANDOS RECORDS TITO BELTRAN (TENOR) KARL JENKINS ORCHESTRA WITH BERLIN PHILHARMONIC ORCHESTRA WITH AGNIESZKA DUCZMAL YURI SIMONOV ORCHESTRA WITH ORCHESTRA (CHANDOS RECORDS) CROUCH END FESTIVAL CHORUS SONY CLASSICS CHARLES MACKERRAS ORCHESTRA WITH HERBERT SIR ADRIAN BOULT SONY CLASSICS ROYAL PHILHARMONIC JONAS ALEKSA EMI CLASSICS AND CITY OF PRAGUE (SONY MUSIC ENTERTAINMENT) SONY CLASSICS VON KARAJAN EMI CLASSICS (SONY MUSIC ENTERTAINMENT) ORCHESTRA SONY CLASSICS (EMI) PHILHARMONIC ORCHESTRA (SONY MUSIC ENTERTAINMENT) DEUTSCHE GRAMMOPHON (EMI) (RPO RECORDS LTD) (SONY MUSIC ENTERTAINMENT) WITH DAVID TEMPLE (UNIVERSAL MUSIC) SILVA SCREEN (SILVA SCREEN)

1112131415 161718192O DELIBES GRIEG VAUGHAN WILLIAMS PAISIELLO GRIEG SCHUBERT RIMSKY-KORSAKOV TCHAIKOVSKY HOWARD SHORE VAUGHAN WILLIAMS SYLVIA PIANO CONCERTO JOB MANDOLIN CONCERTO PIANO CONCERTO SYMPHONY NO.5 SCHEHERAZADE PIANO CONCERTO NO.1 THE PROPHECY FANTASIA ON GREENSLEEVES PHILHARMONIA ORCHESTRA LEIF OVE ANDSNES (PIANO) ENGLISH NORTHERN UGO ORLANDI (MANDOLIN) JEAN-YVES THIBAUDET ACADEMY OF ST. MARTIN KIROV ORCHESTRA MARTHA ARGERICH (PIANO) (FROM LORD OF ORPHEUS CHAMBER ORCHESTRA WITH RICHARD BONYNGE BERGEN PHILHARMONIC PHILHARMONIA WITH I SOLISTI VENETI WITH (PIANO) ROTTERDAM IN THE FIELDS WITH WITH VALERY GERGIEV BERLIN PHILHARMONIC THE RINGS OST) DEUTSCHE GRAMMOPH ON DECCA ORCHESTRA WITH DAVID MATHIAS CLAUDIO SCIMONE PHILHARMONIC ORCHESTRA NEVILLE MARRINER DECCA ORCHESTRA WITH THE CITY OF PRAGUE (UNIVERSAL MUSIC) (UNIVERSAL MUSIC) DMITRI KITAYENKO LLOYD–JONES ERATO WITH VALERY GERGIEV DECCA (UNIVERSAL MUSIC) CLAUDIO ABBADO PHILHARMONIC ORCHESTRA EMI CLASSICS NAXOS (WARNER MUSIC) DECCA (UNIVERSAL MUSIC) DEUTSCHE GRAMMOPHON WITH NIC RAINE (EMI) (SELECT MUSIC AND VIDEO) (UNIVERSAL MUSIC) (UNIVERSAL MUSIC) SILVA SCREEN (SILVA SCREEN) 18|19

BUSINESS REVIEW. BUSINESS REVIEW

LICENCE FEE INCOME AND DISTRIBUTABLE REVENUE EACH GREW LICENCE FEE INCOME £

BY 11% IN 2OO8, PRINCIPALLY DRIVEN BY A RAPID ESCALATION ‘O8 12 7.6 IN INTERNATIONAL REVENUE AND INCREASED MARKET ‘O7 115 . O PENETRATION IN PUBLIC PERFORMANCE LICENSING. ‘O6 97.9

THE ONSET OF ECONOMIC RECESSION IN THE LATTER HALF OF ‘O5 86.5 2OO8 EXACERBATED THE CONTINUING DECLINE IN COMMERCIAL ‘O4 82.7 RADIO REVENUES, AND WILL IMPACT ON PPL’S LICENSEES IN COMMERCIAL TELEVISION AND PUBLIC PERFORMANCE THROUGHOUT 2OO9. WITH REVENUE GROWTH OF 54% OVER THE PAST FOUR YEARS, 12 7.6M +11% ATTENTION HAS INCREASINGLY FOCUSED ON THE PEOPLE AND SYSTEMS WITHIN PPL CHARGED WITH ITS FAIR AND ACCURATE DISTRIBUTION. 2OO8 SAW A SIGNIFICANT DISTRIBUTABLE REVENUE £ RESTRUCTURING WITHIN THE MEMBER SERVICES FUNCTION AND THE COMMENCEMENT OF A LONG TERM IT DEVELOPMENT ‘O8 11O . 3 PROJECT TO OVERHAUL THE ENTIRE ‘MONEY-OUT’ SYSTEM ‘O7 99.5

INFRASTRUCTURE. ‘O6 84.4

‘O5 75.4

‘O4 71.5 11O.3M +11% BUSINESS REVIEW

BROADCASTING PUBLIC PERFORMANCE AND DUBBING Whilst new delivery platforms such as the Commercial radio in all its formats PPL also continues to develop its licensing Building on work in 2008, plans for the Sky Player, BTVision and the ill-fated Project continues to remain largely dependent on of internet radio services. The number of year ahead include further review of the Kangaroo similarly took the headlines in PPL members’ music for the overwhelming internet radio licences issued by PPL revenue collection process. We work to the commercial television sector, television majority of its content, with the development continued to grow throughout 2008, collect monies more cost-effectively and Revenue from commercial television and viewing in 2008 remained predominantly of national brands playing more music totalling over 250 by the year end. within a reasonable time frame without the BBC’s services continued to grow, but An increased focus on this area of the linear via terrestrial and satellite delivery. reinforcing this dependence. In this changing The majority of such stations are small compromising customer service. As part this growth was substantially offset by a business resulted in a significant growth in Despite increasing competition, viewing landscape the terms under which the rights non-commercial services benefiting from of a rolling ‘operations review’ we will also decline in revenue from commercial radio revenue. We developed market penetration figures and the consumption of PPL repertoire to use sound recordings are licensed to PPL’s small webcaster licence, first continue to assess and streamline our existing for the fourth year in a row, reflecting by identifying and licensing premises were maintained, although spread over an commercial radio, based as they are on launched in 2007. processes to ensure optimum efficiencies. the continuing fall in advertising revenue that were previously not licensed and ever growing number of channels. a decision of the Copyright Tribunal fifteen generated by the commercial radio sector. The transmission of sound recordings over we renewed attention to ensure existing PPL remains committed to keeping its tariffs years ago, appear increasingly out of Meanwhile the landscape for commercial the internet in the form of downloads and licensees were, in fact, correctly licensed. under review to ensure that they are PPL’s agreements with the BBC continue touch with the marketplace for music rights in radio has seen a number of significant on-demand streaming (via services such as We grew the revenue to £54.2 million delivering an appropriate and fair return for to drive forward the collective licensing an increasingly online music world. changes. Mergers and acquisitions have iTunes and YouTube), as with more traditional which represented an 11% growth on our record company and performer members. agenda. The licensing of services delivered concentrated ownership in the hands of The majority of PPL’s online revenue in channels of distribution, is in the most part 2007. In turn, as music has the ability to greatly by the iPlayer in 2007 was followed by three companies who between them now 2008 was generated from traditional licensed directly by record companies enhance businesses, it is also critical that a groundbreaking agreement with BBC The pubs and clubs sector had a particularly control approximately two thirds of broadcasters – commercial television, themselves as opposed to a collective tariffs are reasonable and cover all the Worldwide in 2008 for the licensing of tough 2008 with reportedly 36 pubs a commercial radio listening. The ‘local’ and the BBC – extending their means licence by PPL. many differing requirements of our broad PPL repertoire in television programmes week closing. Responding to the high foundations of commercial radio have of delivery to online platforms. Their range of licensees. This process will continue delivered to the consumer as permanent volumes of businesses changing hands or succumbed to economic pressures as online media consumption via such in 2009. downloads from online retailers such as ceasing trading within the pubs and clubs national brands such as Heart, Smooth platforms, although growing fast, remains iTunes or as DVDs. PPL is looking to reach and retail sectors proved very time- In addition, for a number of years now and Galaxy are applied to a network modest alongside traditional platforms. similar agreements with the commercial consuming for PPL during a year which PPL has been engaged in a number of of previously independent stations. television sector in the course of 2009. PPL estimates that, in 2008, viewing became increasingly tough as it reached its Copyright Tribunal references for its tariffs Programme syndication between such of television programming on the BBC end. The company had to adapt – and for pubs and clubs, retail and offices, With such blanket licensing arrangements stations has increased and Ofcom has iPlayer amounted to less than half of continues to do so. Specialist teams were and factories. Hearings in the Copyright in place, a broadcaster can be certain progressively reduced the regulatory one percent of BBC television viewing created to target ‘change of ownership’ Tribunal and High Court in 2008 mean that, at the time a programme is being requirements for locally produced on traditional platforms. and we managed to handle the increased that a new Copyright Tribunal panel in made, the choice of music included in programming. workload, while also substantially 2009 will make a decision on these tariffs the programme will not restrict that increasing the licence fees collected across which will be extremely important for PPL. programme’s subsequent distribution the whole of public performance licensing. via all available platforms. Dubbing revenue continued to grow ‘DESPITE INCREASING significantly in 2008 driven by the COMPETITION, VIEWING increased uptake of new technology in FIGURES AND THE the background music market. PPL carried CONSUMPTION OF out an internal restructuring of this licensing function in December 2008, to enable BROADCAST REVENUE £ PPL REPERTOIRE WERE PUBLIC PERFORMANCE AND DUBBING £ MAINTAINED ALTHOUGH the team to provide a more efficient, SPREAD OVER AN EVER cost-effective service going forwards and, GROWING NUMBER in addition, to be better able to respond 58.1M +2% OF CHANNELS.’ 54.2M +11% to changes in the market and technology. BUSINESS REVIEW

INTERNATIONAL MEMBER SERVICES The additional resources put into the A PPL record company member’s entitlement Effective communication with our members International team in 2008 covered both to public performance and broadcast has been a priority throughout 2008. functional and analytical areas. In order revenue in any given territory is often tied We now send out electronic membership to ensure that our record company and up in an overlapping matrix of licensing newsletters on a regular basis, with performer members’ requirements and agreements, contracts and appointments. distribution updates, announcements, Given the importance of our role and the expectations are met, it is critical that Therefore disputes over the entitlement to and other information. The new PPL distributions to our members, we want to With the challenging times the industry market penetration, payment trends and revenue from the multi-territorial management website, launched in August 2008, International revenue grew in 2008 by improve the level of our overall services. has faced over the past years, we are appropriate controls are all in place. of sound recording rights are inevitable. is also playing a key role, and is regularly 69% to £15.4 million. Over three years The IT systems that the company currently well aware of the growing importance updated with information regarding topics this means that this area of our business Supported by these additional resources, In 2008 PPL attempted to help address operates will need to be updated and, to all our constituents of the revenue such as payment dates, claims deadlines has grown by over 4 00%. we introduced monthly distributions of this issue by engaging in an active strategy following substantial work and consultation generated by PPL. A key project in 2008 and myPPL. international revenue at the start of the of highlighting and resolving ownership with members, PPL has prepared plans for focused on those sound recordings registered Such a growth obviously requires fourth quarter of 2008. This increased disputes on behalf of our record company a new systems implementation. A key focus for 2009 will be sound with PPL by its record company members. an appropriate level of investment in customer service meant that during the members. This has led to the release of recording data. Complete and accurate both systems and resources to sustain it. This next phase will involve a two and a However, with gaps in the associated year £12.5 million of international revenue previously held revenue to those members data is vital if we are to be able to maximise Therefore, during 2008, additional full half year programme which will be broken data, it often meant that it was unclear was distributed to PPL members. This was as well as payment adjustments to correct collections on behalf of our members. That time heads were added to the International down into modules. The programme will who the registrant was. Quarterly reports a 60% growth on the amount distributed historic situations. This dispute identification way we can then enhance the efficiency team and a plan was put in place to initially address the company's data quality were sent out to all record company in 2007. An additional £6.1million was and resolution strategy will continue of the distribution process for members overhaul the team structure in 2009 to requirements and will deliver an improved, members with details of these recordings, distributed in the first quarter of 2009. throughout 2009. and release as much money as possible. allow it to continue to grow and develop, scalable, globally enabled version of the to encourage them to claim (with appropriate given the increase in the workload. This International revenue is now distributed PPL Repertoire Database. The quality of performer data has continued substantiation) any recordings of theirs from plan should ensure that PPL will continue to to PPL members within 90 days of receipt to be a key focus.The development of a those reports. This enabled PPL to pay out Subsequent modules of the programme deliver returns from those territories which (where the appropriate distribution data is ‘data quality reporting tool’ has improved significant sums of previously held revenue. will deliver a new rights repository system, are already delivering consistently high available) with a large number of payments the accuracy of record company registrations. a new usage and matching interface, revenue streams to our members. In addition being made in the month after receipt. Additional work with the Musicians’ Union an improved distribution rules engine, it also means that the business continues has allowed an increased number of sound an improved payments system and a to develop and new markets are entered recording data entries to be enhanced with user-friendly query-handling suite enabling in a structured manner in order to deliver performer data from the consent forms greater self-service for our performer and additional returns to members on an completed in recording studios. Seminars record company members. We have chosen ongoing and timely basis. and meetings with AIM, BPI and Music the consultancy firm Deloitte as our delivery Producers’ Guild have improved awareness partner for this major investment programme. of the importance of capturing, retaining and ultimately supplying to PPL the details of performers’ contributions to sound ‘WITH THE CHALLENGING recordings. TIMES THE INDUSTRY HAS FACED OVER THE PAST YEARS, INTERNATIONAL REVENUE £ WE ARE WELL AWARE OF THE GROWING IMPORTANCE TO ALL OUR CONSTITUENTS OF + THE REVENUE GENERATED 15.4M 69% BY PPL.’ BUSINESS REVIEW

In November 2008, PPL held its second The seeds were also sown in 2008 Customer service to PPL’s record company Annual Performer Meeting, which was for PPL’s ‘Gold Repertoire Project’. members has been advanced with the well received. The event, at which Michael This project relates to performer income release of PPL APP V4.2. This is the data Connarty MP (Linlithgow and East Falkirk) still held by PPL on songs recorded in the registration software used by the majority was the guest speaker, took place at the decades from the 1950s through to the of them in order to supply sound recording famous Abbey Road Studios in order to 1980s. It has historically proved difficult data to PPL. Modifications to facilitate the This, combined with some hard work from accomodate the significant increase in to obtain definitive performer line-ups for speed of data entry and the quality of our International team, meant that 28% attendees which virtually doubled year sound recordings from this period so we the registrations were identified through of the revenue paid by PPL to performers on year. More information and a copy have started a consultation to consider an a series of workshops attended by a cross- in 2008 came from overseas. Given the The database is the platform that supports of last year’s Annual Performer Report alternative, fair method of distributing section of PPL’s record company members, substantial increases in the UK revenue PPL record company members in the can be found on the PPL website (also see any remaining income on these recordings, as well as AIM and PRS for Music. For the collections over the last few years this registration of details, rights information pages 36/37). not based on individual track line-ups (see first time there are also now video tutorials is a very encouraging figure which will and performer line-ups. That data is then pages 36/37). available on the PPL website offering only grow in the future. There was continued focus on reuniting not only used to support PPL’s activities but guidance on using the software. performers with their unclaimed PPL revenue Under the guidance of PPL’s Director also to supply services to The Official UK These significant payment increases were throughout 2008, with over £2.6 million of Performer Affairs, Keith Harris, the Chart Company as well as the anti-piracy In addition to improving the way in which backed up with a campaign to improve being released to new registrants. international dimension of the company’s teams at IFPI and BPI. PPL also continues new sound recordings are registered with the performer line-up information provided important outreach work for performers to supply data for mechanical licensing PPL, the way in which the data is loaded to PPL by its record company members, In 2009 we are aiming to build on this continued with PPL sponsored seminars purposes to PRS for Music on behalf of into the PPL Repertoire Database was refined with the intention of making performer with additional members of staff being in Japan, Namibia, and South Africa. thousands of record companies. in 2008 to increase the number of sound payments more accurate and allowing employed exclusively to recruit new Fran Nevrkla also attended the FIM recordings going directly into the database. a greater level of team resources to be performers. The focus will be on recruiting A full technology ‘refresh’ was undertaken (International Federation of Musicians) focused on providing excellent customer performers who are achieving their first in 2008 to move the database to the latest Congress in Johannesburg in September. service. radio airplay, as well as attempting to version of Oracle technology. This database identify those performers who are already can now support the internationalisation registered with PPL but who are not yet of our service through handling foreign registered against all of the sound recordings language character sets and increased on which they performed. volumes of data.

‘A FULL TECHNOLOGY REVENUE RELEASED TO NEW REGISTRANTS £ ‘REFRESH’ WAS UNDERTAKEN IN 2OO8 TO MOVE THE DATABASE TO THE LATEST VERSION OF ORACLE 2.6M TECHNOLOGY.’ BUSINESS REVIEW

PPL AND THE GOVERNMENT The real surprise came towards the end We also took a step closer to having two The Copyright Tribunal plays a key role in Lastly, there was some interim good news PPL, along with all other businesses in the of the year. At the PPL Annual Performer music licensing exceptions removed, after collective licensing, determining the tariff from across the pond. The musicFIRST creative industries, operates in an increasingly Meeting in November, Abbey Road many years of pressure from PPL. Under that should be paid in the event of a coalition in Washington D.C., actively difficult environment in terms of respect for Studios was packed with performers who two sections of copyright legislation, dispute between a collective licensing supported by PPL, secured the tabling of copyright. Online, illegal downloads were frustrated that our own Government we are unable to license not-for-profit body and a user. PPL and a number of the Performance Rights Bill which would outnumber legal sales by 20 to 1, leading was still peddling the line from the organisations and charities for various other stakeholders raised concerns about remove the decades-old anomaly in to calls from the digital activists for the Gowers Review and refusing to support uses of recordings. the Copyright Tribunal and the way in US copyright legislation whereby radio removal of copyright. UK musicians and the UK music industry. which it handles disputes and these stations do not have to pay either The most significant and, to some, the most We have long maintained that these Meanwhile, the Government gives out became the focus of an Inquiry by the performers or the record companies for surprising was the turnaround on the term of There and then, they recorded a video exceptions are incompatible with European mixed messages, praising the creative Parliamentary Select Committee for their recordings which make up the bulk copyright protection for sound recordings. message to the Prime Minister. The video legislation which gives performers and industries for their economic performance Innovation, Universities and Skills. of their programming. In 2006, the Gowers Review of IP had was delivered to the Rt Hon Gordon Brown record companies a general right to be whilst at the same time proposing additional recommended against any extension of MP and posted on the PPL website and on recompensed when their recordings are PPL gave evidence and was cross-examined Six thousand performers signed a PPL petition exceptions which undermine the value of copyright term and the UK Government YouTube. Three weeks later, on 11 December, played in public, including by not-for-profit by the Committee. The outcome was a calling on the US Government to end this what we produce. accepted this recommendation. the Government announced a change of organisations and charities. report recommending a number of changes, unfairness and to bring the USA into line PPL is working constantly with other partners, heart, that it would in fact support the including a right for collective licensing with the rest of the developed world. The At this point, many assumed that was In July 2008, the Government launched such as UK Music, the new pan-industry principle of copyright term extension. bodies to make references to the only countries to retain such a derogation the end of the road for removing this a consultation on the music licensing body, and the CBI, to improve the business Copyright Tribunal. from international treaties are the likes of discrimination against the performers Attention then turned back to Brussels and exceptions and stated that retaining them environment for our performer and record China, North Korea, Iran and Iraq. and record companies. the votes in the European Parliament and the in their existing form was not an option. Most of these recommendations were company members. Council of Ministers, both of which must We remain hopeful that secondary formally accepted by the Government. The legislation did not have time to go However, eighteen months later, after pass new legislation before it becomes law. legislation will be tabled in 2009 to Some, such as revising the criteria for through all the committee processes before considerable work on an Impact remove these exceptions and PPL has Lay Members of the Copyright Tribunal, the Presidential elections so it was re-tabled Assessment, the European Commission committed to work closely with Government were implemented in 2008 and we in February 2009. PPL continues to support announced proposals to draft legislation and the new licensees to smooth the await further improvements as this its smooth passage. which they published in July 2008. The implementation of the new music becomes an ever more important part Copyright Term Directive then started its licensing regime. of the creative economy. passage through the European Parliament and the Council of Ministers.

PERFORMER VIDEO MESSAGE ‘PPL, ALONG WITH ALL OTHER ONLINE, ILLEGAL DOWNLOADS DELIVERED TO THE PRIME MINISTER BUSINESSES IN THE CREATIVE OUTNUMBER LEGAL SALES BY INDUSTRIES, OPERATES IN 2O TO 1, LEADING TO CALLS AN INCREASINGLY DIFFICULT FROM THE DIGITAL ACTIVISTS ENVIRONMENT IN TERMS FOR THE REMOVAL OF 26.11.O8 OF RESPECT FOR COPYRIGHT. COPYRIGHT.’ OUR CULTURE. OUR CULTURE

CORPORATE SOCIAL RESPONSIBILITY Other initiatives we have undertaken PPL continues its long association with both include rolling out a green email signature the BRIT Trust and BRIT School in Croydon. to the entire company which encourages Adele, a former pupil of the school and recipients of emails to only print hard recipient of the 2008 BRIT Critics Choice This scheme enables PPL staff to benefit copies if truly necessary. We continue to Award, has gone on to achieve global from an annual tax exemption introduced PPL was heavily involved with Nordoff- operate a ‘binless office’ having instead success. Many other highly talented students by the Government which allows employers Whizz-Kidz aims to improve the lives of Robbins Music Therapy and co-sponsored centralised recycling bins for each floor. from the school are heading the same way. to loan cycles and cyclists’ safety equipment disabled children by providing them with several of their events including the We also make donations to the Trees for to employees as a tax free benefit. The aim motorised equipment such as wheelchairs Silver Clef Lunch and HMV Football Our commitment to The Young Person’s Cities charity and donate our used postage is to promote healthier journeys to work and scooters. Our fundraising efforts Extravaganza – two highly popular events Concert Foundation remains strong. stamps to RSPB. As in previous years, there were two key and to reduce environmental pollution. included everything from beard growing which raised substantial additional funds. Chaired by Lady Martin, with involvement areas we targeted where we believed we The carbon audit we began conducting last contests to cake baking and a Devon to PPL also continued its partnership with by Sir George Martin, the charity aims to Julie’s Bicycle, the industry champion for could make a contribution. These were year continues into this one. Benchmarking London cycle ride! In total we raised nearly PRS for Music to co-sponsor the Music support young musicians, with special focus climate change which we proudly support, environmental causes and local community ourselves against similar sized companies £9,000 which bought a wheelchair for Industry Trusts‘ Award which in 2008 on the provision of music in state schools. continues its good work. We, along with initiatives. both inside and outside the music industry Jody, an 18 year old with cerebral palsy. honoured Universal Music Group other major music industry bodies, work Our long standing support of the Hospital ensures the strength of our commitment to We have raised our target for this year and International Chairman and CEO, In 2008 PPL decided to devote its main alongside them to develop and initiate Broadcast Association continues and we reducing our carbon footprint. are confident we can once again exceed it. Lucian Grainge (see pages 36/37). fund-raising community efforts to disabled ways in which the entire industry can made donations to the British Association The event was a phenomenal success, children’s charity Whizz-Kidz and, following reduce its impact on the environment. We have continued our work with the for Performing Arts Medicine and The surpassing all previous years’ fundraising the bond that was established with them, KIDS Charity who support disabled young Young Musicians’ Symphony Orchestra We continue to improve services for our totals. staff have elected to continue that support people and their families. We had two (see pages 36/37). member stakeholders and the successful in 2009. staff volunteer days in which we refurbished The PPL sponsored APPJAG (The All Party launch of the PPL website has ensured that We also ventured into several new the kitchen and gardens in two of their Parliamentary Jazz Appreciation Group) Our historical support of other music industry communications take place in a much more sponsorship areas in 2008. We were centres. PPL staff gave up their time to had a successful year with the annual causes remained strong, in particular, our environmentally friendly manner. Our headline co-sponsors with Radio 1 at the help with these projects and the results Parliamentary Jazz Awards again being involvement with The BRIT School and improved online functionality has dramatically Student Radio Awards, we sponsored the were fantastic. hosted by renowned broadcaster Paul Nordoff-Robbins Music Therapy. For the decreased the amount of paper consumption, Best Student Writer at the Record of The Gambaccini. Co-chaired by Lord Colwyn first time we also supported the Justice both inbound and outbound from PPL, and In lieu of sending Christmas cards we Day Awards category (both in November) and Michael Connarty MP and with over for Kirsty campaign, founded by Jean this is something we will continue to develop. again made a donation to Crisis (the and earlier in the year we sponsored the 100 members, the aim of APPJAG is to MacColl in honour of her late daughter, national charity dedicated to ending ‘Most Played UK Artist’ on Commercial promote jazz as a musical form, to raise the great singer Kirsty MacColl (see pages homelessness by delivering life-changing Radio category at the Arqiva Commercial its profile inside and outside Parliament 36/37). services and campaigning for change). Radio Awards. Our support of The Radio and to encourage a deeper and wider Academy continued and we also attended Our staff, once again, gave their time, enjoyment of the art. and hosted many functions in London and money and enthusiasm in abundance ‘OUR IMPROVED ONLINE around the country to ensure we reached to make all our CSR efforts a resounding FUNCTIONALITY HAS out to and met as many of our constituents success. DRAMATICALLY DECREASED EMPLOYEES WHO GAVE UP DAYS TO WORK AT as possible. THE AMOUNT OF PAPER KIDS CHARITY CONSUMPTION, BOTH INBOUND AND OUTBOUND FROM PPL, AND THIS IS SOMETHING WE WILL CONTINUE TO DEVELOP.’ 3O OUR CULTURE

OUR PEOPLE Following on from last year we held: We ran 35 in-house training workshops. We conducted an audit of our Employee In 2008 our Employee of the Year In particular we continued with our Handbook, employment contracts and was Chris Austin from our Repertoire – Two employee communication sessions Supervisor and Management Development policies to ensure we continue to follow Services Department. Chris was originally attended by all employees where the Programmes, and our core skills workshops best practice in these areas and that we nominated by seven people for the company’s Mission, Values and such as Excel, debt collection, dealing with are compliant with relevant legislation. Employee of the Month, which feeds Objectives were presented. difficult callers and project management. into the Employee of the Year Scheme A new HR and payroll system was – A management awayday to discuss All our managers and employees received for his excellent customer service and implemented, which will allow us to and communicate with our managers health and safety training. the ‘monumental’ work he has done provide information to employees and on strategic issues. on the Repertoire Database and the Having received ILM (Institute of Leadership managers. It will allow us to provide Official Charts data. – We continued with our CSR activities and Management) accreditation last year much more effective management to encourage cross-departmental team to run our first strategic management reporting to the business. Mark Steel (Tariff Development) and working and communication across course, four of our senior managers, Cheryl Harper (Public Performance In recruitment we have implemented the company. Christian Barton, Shula Kerr, John McGuire Operations) were recognised for reaching the use of psychometric tests and and Barry Reynolds took part in the the 10 year service milestone with the assessment centres to provide additional programme which will lead to a national company, whilst Colin Edwardson selection tools to fairly and effectively select management qualification. We are looking (Public Performance Operations) the best candidates for our vacancies. to extend this further next year. reached 15 years. We also took part in Music4Good, which is a social enterprise initiative working in partnership with the music industry to provide accredited six month apprenticeships for young people from a range of diverse and/or underprivileged backgrounds. These apprenticeships give those selected a chance to gain skills, experience and insight into the industry. We have taken two apprentices within our Public Performance Operations and International teams.

‘HAVING RECEIVED ILM ACCREDITATION LAST YEAR TO RUN OUR FIRST STRATEGIC MANAGEMENT

IN-HOUSE TRAINING STAFF WHO HAVE WORKED COURSE, FOUR OF OUR WORKSHOPS AT PPL FOR OVER 5 YEARS SENIOR MANAGERS TOOK PART IN THE PROGRAMME WHICH WILL LEAD TO A NATIONAL MANAGEMENT 35 29% QUALIFICATION.’ OUR CULTURE OUR COMMITMENT TO STRONG WORKING RELATIONSHIPS IS BUILT AROUND OUR ACTIVE INVOLVEMENT IN A WIDE RANGE OF EVENTS IN ACTION AND ACTIVITIES IN THE UK AND GLOBALLY

1 7 12 1 23 4 18year old Jody, recipient of the PPL PPL and PRS for Music were joint co- PPL hosted a cocktail party at the Whizz-Kidz fund raising effort for 2008, sponsors of the 2008 MITS Awards at Performing Rights Committee (PRC) meetings comes to receive his cheque at a special which Lucian Grainge was the recipient. which took place in London. Delegates party held for him at PPL. The two companies raffled an award gathered from all around the world and celebrating Take That as ‘The Most were entertained by BRIT School students. 2 Played and Performed Artists’ in 2007 Jean MacColl, mother of late singer 13 for Nordoff-Robbins Music Therapy. Kirsty MacColl, and honorary guest at the Sam and Joyce Moore visited London to company Christmas Drinks meets Feargal Left to right: Lucian Grainge (Chairman and CEO, 5 6 7 Universal Music Group International), Fran Nevrkla discuss the lack of a performance right Sharkey, Chief Executive, UK Music. and Take That with their award. in the USA. 3 8 Left to right: Sam Moore, Joyce Moore and Fran Nevrkla. Another enjoyable Jazz Awards at the A group of performers who played on 14 House of Commons in May. PPL works tracks from the 1950s came into the PPL’s Annual Performer Meeting was held closely with the All Party Parliamentary PPL offices to discuss royalty payments. at the famous Abbey Road Studios in Jazz Appreciation Group (APPJAG) and They are pictured here with PPL’s November 2008. Executive Director, Peter Leathem. hosts three events a year with them which Left to right: David Wood (Director of Anti-Piracy, BPI) and 8 9 1O have great support from all Parties. 9 Keith Harris (Director of Performer Affairs, PPL) . Left to right: Lord Colwyn (Co-chair APPJAG), broadcaster and award compè re for the evening Paul Gambaccini, Ahead of the Legal Affairs Committee 15 Michael Connarty MP (Co-chair APPJAG) and Fran Nevrkla meeting in February 2009, a group At the same event seen in conversation. (Chairman & CEO, PPL). of MPs and musicans gathered together Left to right: Nigel Parker (Performer Director, PPL), to support the ongoing campaign for term Laurence Oxenbury (Head of International, PPL) and 4 John Smith (General Secretary, Musicians’ Union). Shakin’ Stevens dropped by the offices extension. Pat Halling, violinist on countless and caught up with PPL’s Director of recordings performed ‘Eleanor Rigby’. 16 PR & Corporate Communications, Left to right: Ian Fletcher (Chief Executive of UKIPO), Lord Smith Also at the same event, pictured together. 11 12 13 14 Jonathan Morrish. of Finsbury, John Whittingdale OBE MP, Dominic McGonigal Left to right: Keith Ames (Communications Official, (Director of Government Relations, PPL), Michael Connarty MP, Musicians’ Union) and Keith Harris. Pat Halling, David Lammy MP, Fran Nevrkla and Phil Pickett. 5 17 We are proud to support many industry 1O Renowned saxophonist Alan Barnes events, one of which is the Arqiva Commercial PPL’s Radio Broadcasting Assistant Natalie accompanied The Hot House Band Radio Awards. PPL sponsors the ‘Most Thomas presents Hospital Radio Plymouth at one of the APPJAG jazz events this year. Played UK Artist’ on UK commercial radio, with their Silver Award for ‘Station of the Year’ at the Hospital Broadcast Awards Left to right: with the band are Gerald Newson which was won by Take That. (Chairman, Performer Board, PPL) , Peter Leathem, Left to right: Sam Moorhouse (Legal & Business Affairs Executive, which PPL is proud to sponsor. Fran Nevrkla, Kim Howells MP, Michael Connarty MP, 15 16 17 PPL), Andrew Harrison (Chief Executive, RadioCentre) and broadcaster Helen Mayhew, Alan Barnes and Bill Holland. Iestyn David (Radio Broadcasting Executive, PPL). 11 Continuing the fight for a fair term on 6 copyright, representatives gathered Soul singer Beverley Knight is congratulated together at a PPL reception in Brussels by Fran Nevrkla and BPI Chairman Tony to show their support. Wadsworth on her PPL sponsored Gold Left to right back row: Dominic McGonigal, Manuel Espinosa Badge Award in October 2008. (artist), Tom McGuinness (artist), Pat Halling (artist). Front row: Manuel Medina Ortega MEP, Jacques Toubon MEP, Luis Cobos (artist), Alicia Gill (artist), Michael Cashman MEP OUR CULTURE WE ARE 75 AND HOW THE WORLD SEES US

“PPL REMAINS ONE OF THOSE INNOVATIVE, “PPL CONTINUES TO STRIVE FOR EXCELLENCE IN ALL THAT “PPL PLAYS AN INCREASING AND DEPENDABLE AND QUIETLY EFFICIENT “AS A NON FEATURED PERFORMER WITH ONE OF LONDON’S IT DOES FOR THE RECORD COMPANIES AND PERFORMERS. CRUCIAL ROLE IN THE DELIVERY LYNCHPINS OF THE UK MUSIC INDUSTRY. MAJOR ORCHESTRAS, I CAN ONLY SAY THAT THE PAST GREAT PROGRESS HAS BEEN MADE IN THE LAST FEW OF VALUE FOR MUSIC IN OUR THE ORGANISATION’S WORK ON BEHALF TWO YEARS, AND LAST YEAR IN PARTICULAR, HAVE SEEN AN OF SOME 38,000 UK PERFORMER MEMBERS YEARS, AND THE AMBITION TO CREATE THE WORLD’S BEST EVOLVING INDUSTRY; AS A AND 3,400 UK RECORD COMPANIES IS CRUCIAL – ENORMOUS GROWTH IN PPL INCOME FOR ALL MUSICIANS. COLLECTION SOCIETY IS VERY LIKELY TO BECOME A REALITY. NOT ONLY IN TERMS OF THE LICENSING, THE FEEDBACK I RECEIVE FROM MY FELLOW PERFORMERS BOARD MEMBER FOR LONGER COLLECTION AND DISTRIBUTION OF ROYALTIES; CONGRATULATIONS TO FRAN AND ALL AT PPL.” THAN I CARE TO REMEMBER, BUT ALSO AS A SUPPORTER OF NEW MUSIC IS ONE OF DELIGHT WITH INCREASED PAYOUTS RECEIVED. AND A TIRELESS CAMPAIGNER FOR THEIR RIGHTS. ALISON WENHAM I BELIEVE THAT IT HAS GROWN CHIEF EXECUTIVE, ASSOCIATION OF INDEPENDENT MUSIC (AIM) THE BOUNDLESS ENERGY AND DETERMINATION AS PERFORMERS, WE HAVE ALSO BECOME INCREASINGLY CHAIRMAN, WORLD INDEPENDENT NETWORK (WIN) INTO AN ORGANISATION FOR SHOWN BY FRAN NEVRKLA AND HIS TEAM, AWARE OF ALL THE WORK BEING DONE AT PPL; THE THE INDUSTRY TO BE PROUD OF.” BOTH IN THE FIGHT TO EXTEND COPYRIGHT TERM FOR PERFORMERS AND IN THEIR LOGISTICAL PROCESSES INVOLVED, THE SUCCESSFUL AND MARTIN MILLS MBE ONGOING CLAIM FOR US RADIO ROYALTIES CARING LOBBYING, AND THE SPEEDY AND INCREASED CHAIRMAN, BEGGARS GROUP IS NOTHING SHORT OF INSPIRATIONAL. TECHNICAL SIDE OF COLLECTION AND DISTRIBUTION WITH WE ARE PROUD TO HAVE PPL ALONGSIDE US AT UK MUSIC, AND WISH ALL WHO WORK ITS EVER EXPANDING EFFICIENCY AND QUALITY CONTROL. THERE A VERY HAPPY 75TH BIRTHDAY.” “THE BUSINESS MODEL FOR MUSIC IS IN RAPID “IF THE BRITISH MINISTRY OF FINANCE, FEARGAL SHARKEY PPL INCOME IS NOW BECOMING ONE OF THE MAJOR TRANSITION, AND THE WAY MUSIC IS MONETISED BANKS, LENDING INSTITUTIONS, ETC. CHIEF EXECUTIVE, UK MUSIC FACTORS IN OUR WORKING LIVES AND I ONLY HEAR IS SHIFTING FROM A TRANSACTIONAL MODEL TO HANDLED THEIR BUSINESS WITH THE POSITIVE AND GOOD THINGS FROM MY FELLOW PERFORMERS ONE WHICH FOCUSES MORE ON USAGE. SO, AN DEGREE OF EFFICIENCY THAT PPL IN THE ORCHESTRAS ABOUT THE COLLECTION AND ORGANISATION WITH THE STRENGTH AND SKILLS HANDLE THEIRS, THE UNITED KINGDOM DISTRIBUTION OF THAT INCOME.” OF PPL SHOULD BE A SOURCE OF GREAT PRIDE FOR WOULD BE OUT OF THE ECONOMIC GERALD NEWSON THE UK MUSIC INDUSTRY – BOTH FOR WHAT IT HAS CART IN A YEAR. THE STAFF OF PPL “THE UK HAS ALWAYS BEEN AN DOUBLE BASS, FORMER MEMBER OF LSO EXTRAORDINARILY CREATIVE NATION VICE CHAIRMAN, MUSICIANS’ UNION EXECUTIVE COMMITTEE DONE IN RECENT YEARS TO INCREASE DISTRIBUTED ARE CIVIL, COURTEOUS, AND DISPLAY CHAIRMAN, PPL PERFORMER BOARD INCOME TO PERFORMERS AND RECORD COMPANIES, AN INCREDIBLE ZEAL IN EVERYTHING PRODUCING SOME OF THE AND ALSO FOR THE INCREASED PART THAT IT CAN THEY DO. I AM INDEED PROUD TO SAY GREATEST MUSIC IN THE WORLD. UNDOUBTEDLY PLAY IN ENSURING THAT MEMBERS THAT I AM A MEMBER OF SUCH AN HOWEVER, WE WILL ONLY BE ABLE WILL BE FAIRLY REWARDED FOR THE USE OF THEIR HONOURABLE ORGANISATION.” TO MAINTAIN THAT IF OUR ARTISTS CONTINUE TO RECEIVE PAYMENT “ONCE MORE TECHNOLOGY IS DRIVING “DEAR FRAN AND ALL AT PPL. THE WORK IN THE FUTURE.” JOE MORETTI SIGNIFICANT AND JAW DROPPING CHANGE GUITARIST FOR THE USE OF THEIR WORKS. WITHIN OUR INDUSTRY. THE SPEED OF THIS WORK THAT PPL HAS DONE OVER TONY WADSWORTH PARADIGM SHIFT IS PROVING EXCEPTIONALLY THE YEARS HAS TRANSFORMED CHAIRMAN, BPI PPL HAS FOR 75 YEARS DONE A CHALLENGING, ESPECIALLY FOR THOSE THAT FANTASTIC JOB IN ENSURING THAT CLING TO OUT OF DATE BUSINESS MODELS. PPL THE LIVES OF MUSICIANS. WE, FINDS ITSELF AT THE HEART OF THIS EVOLUTION ITS MEMBERS GO ON RECEIVING AND WITH ITS PROGRESSIVE AGENDA IS WELL OF THE FREELANCE SESSION “THE DRAMATIC IMPROVEMENT IN THE “IN THE YEARS SINCE I STARTED OUT IN THE MUSIC INDUSTRY IT HAS PLACED TO DRIVE SIGNIFICANT BENEFITS FOR WORLD, OWE AN ENORMOUS STATUS, REPUTATION AND FORTUNES THE ROYALTIES THAT THEY ARE CREATORS AND THEIR BUSINESS PARTNERS IN OF PPL OVER THE PAST DECADE HAS CHANGED ALMOST BEYOND RECOGNITION, NEVER MORE SO THAN THE NEW MUSIC WORLD.” DEBT TO PPL FOR THEIR DEDICATION BEEN QUITE REMARKABLE. IT IS A ENTITLED TO.” LASTING TESTAMENT TO FRAN AND RECENTLY, AND SINCE THE INTERNET BECAME SUCH A UNIVERSAL TOOL. JOHN WHITTINGDALE, OBE, MP BRIAN MESSAGE TO THE ONEROUS TASK OF TO THE OUTSTANDING TEAM THAT HE CHAIRMAN, CULTURE, MEDIA AND SPORT SELECT COMMITTEE CHAIRMAN, MUSIC MANAGERS’ FORUM (MMF) SORTING OUT ALL THE PROBLEMS HAS ASSEMBLED AROUND HIM THAT MUSIC IS AT THE VERY HEART OF ALMOST EVERYONE IN THE WORLD AND MEMBER OF PARLIAMENT FOR MALDON AND PPL HAS BEEN TRANSFORMED DURING EAST CHELMSFORD RELATED TO RESIDUAL PAYMENTS THIS PERIOD FROM BEING A PERIPHERAL IT IS THE CORE OF OUR INDUSTRY. PPL HAS BEEN AT THE FOREFRONT OF AND COPYRIGHT. BRITISH ENTITY INTO A RESPECTED INSTITUTION MANY OF THE CHANGES AND IS NOW WELL PLACED TO SERVE THIS WHICH HAS A KEY ROLE TO PLAY IN MUSICIANS SALUTE YOU! THE FUTURE OF THE MUSIC INDUSTRY INDUSTRY. BY BRINGING IN THE PERFORMERS AND THE STUDIO PRODUCERS IN THIS COUNTRY.” “THE BBC CONGRATULATES PPL ON ITS 75TH ANNIVERSARY. WE LOOK FORWARD TO GRATEFUL THANKS AND MAY ALONGSIDE THE RECORD COMPANIES, PPL TOO HAS MUSIC AT ITS CONTINUING TO WORK IN PARTNERSHIP WITH PPL IN A WORLD WHERE COLLECTIVE WE CONTINUE TO HAVE A IAN MILL QC HEART. I WISH THE ORGANISATION MUCH CONTINUED SUCCESS LICENSING WILL BE CRITICALLY IMPORTANT TO THE DEVELOPMENT OF GREAT SERVICES JOINT HEAD, BLACKSTONE CHAMBERS FOR THE VIEWER AND LISTENER.” LONG PARTNERSHIP TOGETHER.” FOR THE FUTURE.” JAMES LANCASTER PAT HALLING SIR GEORGE MARTIN CBE HEAD OF RIGHTS AND BUSINESS AFFAIRS, BBC VIOLINIST PRODUCER, ARRANGER AND COMPOSER OUR CULTURE WE ARE 75 AND HOW THE WORLD SEES US

“IT IS IMPOSSIBLE TO CONCEIVE OF A SUCCESSFUL UK MUSIC BUSINESS WITHOUT “PPL AND PRS FOR MUSIC “AS THE WAY THE WORLD LISTENS TO MUSIC CONTINUES TO “PPL HAS BEEN A TRULY PPL WORKING AT THE VERY CENTRE OF IT – FIGHTING FOR THE LIVELIHOODS OF SHARE MANY COMMON TRANSFORM, SO WE SEEK NEW WAYS FOR MAKING SURE WE DEDICATED AND ‘NOTEWORTHY’ PERFORMERS AND PRODUCERS, PROMOTING THE VALUE OF MUSIC IN ALL WALKS GOALS AND OVER THE LAST GET PAID FOR CREATING AND MARKETING IT. AS I WRITE THIS SUPPORTER OF OUR MUSIC OF LIFE AND CAMPAIGNING FOR A FAIRER ENVIRONMENT FOR ITS MEMBERS. I BELIEVE PPL HAS A MORE IMPORTANT ROLE IN TODAY’S MUSIC INDUSTRY THAN COUPLE OF YEARS HAVE THERE ARE 40 MILLION PIECES OF MUSIC AVAILABLE ON THE INTERNET. INDUSTRY FOR THE LAST 75 IT EVER HAD. ITS REVENUE COLLECTIONS ARE GROWING FAST, ITS TECHNOLOGICAL FOUND MORE AND MORE YEARS – CONGRATULATIONS EXPERTISE SETS AN EXAMPLE TO MUSIC LICENSING COMPANIES THE WORLD OVER, MY SEVEN YEAR SUPPORT FOR FRAN NEVRKLA AND PPL HAS BEEN AND ITS VOICE AS AN ADVOCATE OF THE VALUE OF MUSIC IS STRONGER THAN IT OPPORTUNITIES TO WORK ON YOUR ANNIVERSARY AND HAS EVER BEEN. I CONGRATULATE PPL AND MY FRIEND FRAN NEVRKLA, NOT TOGETHER. BASED ON THREE FACTS. FIRST, PPL IS A RESPONSIBLE, SCRUTINISED I LOOK FORWARD TO OUR TWO ONLY FOR THE ACHIEVEMENTS OF THE LAST 75 YEARS, BUT ALSO ON THE WAY COLLECTOR AND DISTRIBUTOR OF MUSIC REVENUE. SECOND, PPL IS GOING ABOUT IMPROVING LIFE FOR THE UK MUSIC COMMUNITY OVER ORGANISATIONS WORKING THE NEXT 75 YEARS.” CONGRATULATIONS ON FRAN AND THE TEAM SAW THE WRITING ON THE WALL LONG EVER CLOSER TOGETHER.” JOHN KENNEDY OBE 75 YEARS OF FANTASTIC BEFORE MOST OTHER PEOPLE AND ARE PREPARED FOR PPL TO TAKE CHAIRMAN AND CEO, IFPI ELLIS RICH ACHIEVEMENTS AND SUCCESS.” ON THE CHALLENGE OF COLLATING EVERY PIECE OF DATA ON EVERY CHAIRMAN, THE PERFORMING RIGHT SOCIETY “DURING THE PAST 10 YEARS, STEVE PORTER SONG OR TUNE. THEY ARE STANDING READY TO COLLECT AND PAY COLLECTIVE MANAGEMENT OF CHIEF EXECUTIVE, PRS FOR MUSIC OUT, EQUITABLY, ON ANY AND ALL THE NEW MUSIC OFFERINGS. RIGHTS HAS UNDERGONE A “THE WAY PPL QUIETLY GET ON AND DO THEIR BUSINESS, ON BEHALF OF US ALL, IS A DRAMATIC TRANSFORMATION, FINALLY PPL IS THE ONLY ORGANISATION WHICH TRULY REFLECTS TESTAMENT TO FRAN AND HIS TEAM. HAVING A RECORD IN THEIR ANNUAL CHARTS – WHICH PULL TOGETHER AIRPLAY AND PUBLIC USE OF SONGS – IS A REAL SIGN OF CHARACTERIZED BY A GREATER “MUSIC IS GOOD FOR COMMERCIA L RADIO THE INTERESTS OF RECORD LABELS, STARS, STUDIO PRODUCERS AND SUCCESS FOR AN ARTIST AS WELL AS VALUABLE REVENUE. TO THEIR NEXT 75 YEARS!” AND COMMERCIAL RADIO IS GOOD FOR MUSIC. EMPHASIS ON CUSTOMER SERVICE, WE’RE PLEASED TO HAVE A GOOD RELATIONSHIP SESSION PLAYERS WITHOUT FAVOUR. DAVID JOSEPH, CHAIRMAN & CEO WITH PPL AND LOOK FORWARD TO CONTINUING UNIVERSAL MUSIC UK ADVOCACY ON BEHALF OF THAT INTO THE FUTURE. WE WISH PPL A VERY I FEEL THOSE OF US WHO ATTEND THE PERFORMER BOARD AND MEMBERS AND A COMMITMENT HAPPY 75TH BIRTHDAY.” PPL BOARD MEETINGS ARE THE CUSTODIANS OF A FAIR FUTURE TO TRANSPARENCY AND ANDREW HARRISON FOR THE WHOLE BUSINESS WE LOVE.” “THE CHANGES THAT HAVE OCCURRED AT PPL SINCE I WAS FIRST EFFICIENCY. PPL HAS BEEN CHIEF EXECUTIVE, RADIOCENTRE INVOLVED WITH THE ORGANISATION HAVE BEEN REMARKABLE. ROBIN MILLAR AT THE VANGUARD OF THIS HONORARY PATRON, MUSIC PRODUCERS’ GUILD IT IS MY GREAT HONOUR AND PLEASURE TO WORK WITHIN PPL TRANSFORMATION AND AS A PERFORMER DIRECTOR, AND TO ACT IN PARTNERSHIP WITH CONTINUES TO BE A WORLD “PPL – PROFESSIONAL, PERSPICACIOUS AND “AS THE INDUSTRY MOVES FROM SELLING BITS OF PLASTIC TO SELLING PPL ON ISSUES THAT ARE OF MASSIVE IMPORTANCE TO THE LIKEABLE EVEN DURING OUR OCCASIONAL SOMETHING ALTOGETHER MORE FLEXIBLE, PPL IS LEADING THE WAY IN LEADER IN THE DEMAND FOR LITTLE DISAGREEMENTS!” BUILDING A SUSTAINABLE FUTURE. CONGRATULATIONS ON 75 YEARS!” PERFORMERS THAT I REPRESENT. EFFECTIVE AND INNOVATIVE CLAIRE JARVIS DAVE ROWNTREE DIRECTOR OF MUSIC SERVICES, BSKYB DRUMMER THE LOBBY FOR AN EXTENSION OF THE TERM OF PROTECTION IS WAYS TO IMPROVE OUR CHAIRMAN, FEATURED ARTISTS’ COALITION (FAC) A PERFECT EXAMPLE OF THIS PARTNERSHIP IN ACTION. IN ADDITION OPERATIONS AND EXCHANGES.” TO MY WORK ALONGSIDE PPL IN THE UK, I AM VERY HAPPY THAT PPL JOHN L. SIMSON EXECUTIVE DIRECTOR, SOUNDEXCHANGE (USA) “IN ITS 75TH YEAR PPL AS AN ORGANISATION, AND IN ITS PEOPLE, “SERVING OUR RIGHTS HOLDERS AS HAS EMBRACED THE ACTIVITIES OF THE INTERNATIONAL FEDERATION PROFESSIONALLY AS POSSIBLE, THAT IS OF MUSICIANS (FIM). THE GENEROUS SUPPORT, AND THE ATTENDANCE IS AN ABSOLUTE FORCE FOR GOOD IN THE MUSIC INDUSTRY. WHAT OUR LONG-LASTING RELATIONSHIP FROM FRAN NEVRKLA DOWNWARDS AND OUTWARDS THEY REALLY WITH PPL IS ALL ABOUT. IN PRACTICE, IT OF PPL EXPERTS AT FIM ‘CAPACITY BUILDING’ SEMINARS FOR BOILS DOWN TO A SOLID COOPERATION MUSICIANS IN DEVELOPING COUNTRIES, HAS BEEN INVALUABLE. CHAMPION THE RIGHTS OF THE PERFORMERS AND THEIR COMPANIES, AIMED AT OPTIMAL LICENSING – AND “FRAN AND HIS TEAM HAVE ACHIEVED THE DISTRIBUTION RESULTS AT THE LEAST IMPOSSIBLE: TO TURN AN ORGANIZATION ALWAYS IMPRESSING ME WITH THE WAY THEY RESPOND AND POSSIBLE COST. SECURING THESE OBJECTIVES I KNOW FROM MY TRAVELS ON BEHALF OF FIM HOW HIGHLY PPL WHICH WAS PERCEIVED BY PEOPLE LIKE ME IN A PROFESSIONAL MANNER REQUIRES (TV FOLK) AND MY INDUSTRY FROM ‘A BLOODY INNOVATE IN A CHANGING ENVIRONMENT. THERE IS ALWAYS A PROFESSIONAL PARTNER. I AM PROUD IS REGARDED AROUND THE WORLD; THIS HIGH REGARD IS WELL HEADACHE’ INTO A ‘SOLUTION PROVIDER’ AND A SENSE OF SERVICE AND A CARING ATTITUDE TOWARDS THOSE AND PRIVILEGED TO OPERATE WITH OUR DESERVED. MANY CONGRATULATIONS ON THE 75TH ANNIVERSARY, A PANACEA FOR ALL (MUSIC) ILLS. AT A TIME OF FRIENDS AT PPL.” RELENTLESS CHANGE AND MELTDOWN IT IS WHO CREATE AND PERFORM FOR A LIVING, BUT A BUSINESSLIKE BUT WHILE CELEBRATING THE PAST IT IS IMPORTANT TO BE LOOKING COMFORTING TO KNOW THAT SOME THINGS APPROACH THAT GIVES ME CONFIDENCE THAT THEY WILL HANS VAN BERKEL TO THE FUTURE AND I’M CONFIDENT THAT PPL IS IN GOOD SHAPE REMAIN CONSTANT: PPL REMAINS ONE OF THE MANAGING DIRECTOR, SENA (HOLLAND) CORNERSTONES OF WHAT MAKES MUSIC TICK – CONTINUE TO WIN A FAIR DEAL FOR THE MUSIC INDUSTRY.” TO ADDRESS THE CHALLENGES THAT WE’LL ALL UNDOUBTEDLY FACE.” AND FOR THAT WE SHOULD BE VERY GRATEFUL.” MICHAEL CONNARTY MP JOHN SMITH MALCOLM GERRIE CO-CHAIR, ALL PARTY PARLIAMENTARY JAZZ APPRECIATION GROUP GENERAL SECRETARY, MUSICIANS' UNION CEO, WHIZZ KID ENTERTAINMENT MEMBER OF PARLIAMENT FOR LINLITHGOW AND EAST FALKIRK PRESIDENT, INTERNATIONAL FEDERATION OF MUSICIANS (FIM) OUR CULTURE EXECUTIVE MANAGEMENT TEAM SENIOR MANAGEMENT TEAM BOARD OF DIRECTORS

SARAH AXSON STEVE MACCHIA FRAN NEVRKLA RT HON LORD SMITH HR DEVELOPMENT MANAGER HEAD OF DISTRIBUTION SYSTEMS PPL (CHAIRMAN) OF FINSBURY INDEPENDENT DIRECTOR CHRISTIAN BARTON JOHN MCGUIRE GLEN BARNHAM FINANCIAL PLANNING & HEAD OF TV BROADCASTING PERFORMER DIRECTOR JOHN SMITH ANALYSIS MANAGER (BRITISH ACTORS' EQUITY) PERFORMER DIRECTOR (MUSICIANS' UNION) LAURENCE OXENBURY IESTYN DAVID HEAD OF INTERNATIONAL MIKE BATT RADIO BROADCASTING EXECUTIVE DRAMATICO MICHAEL SMITH ENTERAINMENT LTD SONY MUSIC FRAN NEVRKLA PETER LEATHEM TONY CLARK VICKI POMPHREY ENTERTAINMENT UK LTD FACILITIES MANAGER CHAIRMAN AND CEO EXECUTIVE DIRECTOR DIRECTOR OF LICENSING CHRISTINE GEISSMAR HEAD OF PUBLIC PERFORMANCE TED CARROLL OPERATIONS ACE RECORDS LIMITED JOHN WATSON BARRY REYNOLDS WARNER MUSIC BUSINESS SYSTEMS MANAGER INTERNATIONAL CLARE GOLDIE TONY CLARK PRESS OFFICER PPL JASON ROBERTS IT SOLUTIONS MANAGER DAVID HARMSWORTH JULIAN FRENCH ATTENDEES HEAD OF LEGAL & BUSINESS AFFAIRS EMI MUSIC UK AND IRELAND ROBIN MILLAR VICKIE SPENCER MUSIC PRODUCERS' GUILD HR MANAGER FIONA HAYCOCK PETER LEATHEM EVENTS & MARKETING MANAGER PPL DAVID STOPPS RICHARD STEWART MUSIC MANAGERS’ FORUM HEAD OF DUBBING & FRANK JASCHINSKI SHULA KERR TARIFF DEVELOPMENT DOMINIC MCGONIGAL JANICE DAVIES KEITH HARRIS BUSINESS DEVELOPMENT MANAGER PPL DIRECTOR OF HR DIRECTOR OF DIRECTOR OF IT GEOFF TAYLOR & FACILITIES PERFORMER AFFAIRS BPI DANIELLE TILLEY MATT LININ HEAD OF PUBLIC PERFORMANCE MARTIN MILLS IT SERVICES MANAGER NEW BUSINESS BEGGARS GROUP LIMITED ALISON WENHAM AIM CHRISTIE LOVINGS SUZANNE WILLEMS GERALD NEWSON FINANCE MANAGER PRODUCTION MANAGER PERFORMER DIRECTOR PPL VIDEO STORE NIGEL PARKER EXTERNAL ADVISER PERFORMER DIRECTOR JOHN DEACON CBE POLITICAL ADVISER JAMES RADICE POLYDOR LIMITED BEN LAMBERT DOMINIC JONATHAN FINANCE DIRECTOR MCGONIGAL MORRISH ADRIAN SEAR DIRECTOR OF DIRECTOR OF PR DEMON MUSIC GROUP GOVERNMENT RELATIONS & CORPORATE COMMUNICATIONS 44|45

FINANCIAL STATEMENTS. REPORT OF THE DIRECTORS STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2008 IN RESPECT OF THE ANNUAL REPORT AND THE FINANCIAL STATEMENTS

PRINCIPAL ACTIVITY BUSINESS ENVIRONMENT The company’s principal activity is the In tough market conditions for PPL’s Company law requires the directors to The directors confirm that they have collection of licence fees for broadcasting members the changes within the music prepare financial statements for each complied with the above requirements and public performance of sound business in recent times have been financial year. Under that law the directors in preparing the financial statements. recordings on behalf of its members. immense. Sales of physical music carriers have elected to prepare the financial The directors are responsible for keeping continue to decline generally around the statements in accordance with United The total amount available for distribution proper accounting records that disclose world though the ‘use’ of music continues Kingdom Generally Accepted Accounting is distributed to the company’s members with reasonable accuracy at any time the to grow as media expands and public Practice (United Kingdom Accounting and performers, with the intention that there financial position of the company and performance and dubbing increases. Standards and applicable law). The are no retained reserves at any particular enable them to ensure that the financial financial statements are required by law balance sheet date. The recognition of the statements comply with the Companies to give a true and fair view of the state net pension liability on introduction of FRS17 Act 1985. They are also responsible for STRATEGY of affairs of the company and of the profit in 2005, resulted in a deficit on the income, safeguarding the assets of the company or loss of the company for that year. expenditure and distribution account. It is critical that the company plans carefully and hence for taking reasonable steps for the future. Investment in systems will In preparing those financial statements, for the prevention and detection of fraud continue to meet the demands of increasing the directors are required to: and other irregularities. BUSINESS REVIEW AND membership, evolving media, new tariffs – select suitable accounting policies The directors are responsible for the FUTURE DEVELOPMENTS and the developments that the company and then apply them consistently; maintenance and integrity of the company’s has started, and will continue, to make During the year the company increased its website. Legislation in the United Kingdom in overseas collection for members and – make judgements and estimates that licence fee revenue from most sources in governing the preparation and dissemination performers. In addition to investment in are reasonable and prudent; accordance with management objectives. of financial statements may differ from systems, the company will continue to It is expected that this trend will continue. – state whether applicable UK Accounting legislation in other jurisdictions. place increasing emphasis on staff and Standards have been followed, subject PPL considers its key performance indicators employee training. The company needs to any material departures disclosed to be revenue, revenue growth and cost to to maintain the high quality of service and explained in the financial statements; revenue ratio. 2008 was a year when the for members and performers against a and company delivered a strong set of results backdrop of increasing media platforms with distributable revenue growing by 11% and expanding numbers of territories. – prepare the financial statements on to £110.3 million. Broadcasting income the going concern basis unless it is grew by £1.2 million (2%) despite an 8% inappropriate to presume that the fall in commercial radio revenues, which PRINCIPAL RISKS company will continue in business, was as a direct result of a downturn in AND UNCERTAINTIES in which case there should be advertising revenue in this sector. In addition, supporting assumptions or A number of PPL’s new public performance public performance revenue grew by £5.2 qualifications as necessary. tariffs remain subject to review by the million (11%). International revenue increased Copyright Tribunal following a reference by £6.3 million (69%) to £15.4 million. in 2005. The Tribunal has yet to reach Despite further investment in IT systems a decision and PPL continues to license and employees, the cost to revenue ratio users under its new tariffs pending such remained at 14.6%, as per the 2007 a decision. cost ratio. REPORT OF THE DIRECTORS INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2008 TO THE MEMBERS OF PPL FOR THE YEAR ENDED 31 DECEMBER 2008

AUDITORS AND DISCLOSURE DIRECTORS AND THEIR INTERESTS Our responsibility is to audit the financial In addition we report to you if, in our OF INFORMATION TO AUDITORS statements in accordance with relevant opinion, the company has not kept proper The directors of the company who served None of the directors who held office legal and regulatory requirements and accounting records, if we have not received PricewaterhouseCoopers LLP are the auditors throughout the year from 1 January 2008 at the end of the financial year had any International Standards on Auditing (UK all the information and explanations we of PPL. to 31 December 2008, unless otherwise disclosable interest in the company. and Ireland). This report, including the require for our audit, or if information noted, were as follows: For each of the persons who were directors opinion, has been prepared for and only specified by law regarding directors’ at the time this report was prepared, the G Barnham for the company’s members as a body remuneration and other transactions By Order of the Board following applies: in accordance with Section 235 of the is not disclosed. M Batt (appointed 18 November 2008) Companies Act 1985 and for no other – so far as the directors are aware, there We read other information contained D Carroll purpose. We do not, in giving this opinion, is no relevant audit information of which in the Annual Report, and consider whether accept or assume responsibility for any the company’s auditors are unaware; A Clark it is consistent with the audited financial other purpose or to any other person to and statements. This other information comprises J French whom this report is shown or into whose P LEATHEM only the Chairman and CEO’s Statement, – the directors have taken all steps that hands it may come save where expressly P Harris (resigned 6 January 2008) SECRETARY The Year’s Highlights, A Few Facts, they ought to have taken as directors RESPECTIVE RESPONSIBILITIES agreed by our prior consent in writing. The UK’s Pop Favourites, The UK’s Classical in order to make themselves aware of G Holmes (resigned 18 October 2008) 21 APRIL 2009 OF DIRECTORS AND AUDITORS We report to you our opinion as to whether Favourites, Business Review, Broadcasting, any relevant audit information and to D McGonigal The directors’ responsibilities for preparing the financial statements give a true and Public Performance and Dubbing, establish that the company’s auditors the Annual Report and the financial fair view and are properly prepared in International, Member Services, PPL and are aware of that information. M Mills statements in accordance with applicable accordance with the Companies Act The Government, Our Culture, Corporate A resolution to reappoint F Nevrkla law and United Kingdom Accounting 1985. We also report to you whether Social Responsibility, Our People, PricewaterhouseCoopers LLP as auditors Standards (United Kingdom Generally in our opinion the information given in In Action, We Are 75 and How The World G Newson to the company will be proposed at the Accepted Accounting Practice) are set the Report of the Directors is consistent Sees Us, Executive Management Team, annual general meeting. P Leathem out in the Statement of Directors’ with the financial statements. Senior Management Team and Board Responsibilities. of Directors. We consider the implications N Parker for our report if we become aware of CHARITABLE DONATIONS J Radice any apparent misstatements or material inconsistencies with the financial statements. The following charitable donations A Sear (appointed 11 March 2008) were made during the year ended Our responsibilities do not extend to any 31 December 2008: Rt Hon Lord Smith of Finsbury other information. Hospital Broadcasting Association M Smith £26,000 J Smith The Young Musicians Symphony Orchestra J Watson £5,000 Crisis UK (in lieu of Christmas cards) £3,000 Young Persons Concert Foundation £10,000 Justice for Kirsty Campaign £1,000 INDEPENDENT AUDITORS’ REPORT INCOME, EXPENDITURE AND TO THE MEMBERS OF PPL DISTRIBUTION ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008 NOTE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 2008 2008 2007 2007 £’000 £’000 £’000 £’000

BASIS OF AUDIT OPINION OPINION Licence fee income 2 127,648 114,966 We conducted our audit in accordance In our opinion: Cost of collection and distribution (18,638) (16,834) with International Standards on Auditing – the financial statements give a true (UK and Ireland) issued by the Auditing Cost of servicing the defined benefit pension scheme (343) (408) and fair view, in accordance with Practices Board. An audit includes United Kingdom Generally Accepted Total cost of collection and distribution (18,981) (17,242) examination, on a test basis, of evidence Accounting Practice, of the state of the relevant to the amounts and disclosures company’s affairs as at 31 December in the financial statements. It also includes 2008 and of its result and cash flows NET INCOME FROM OPERATING ACTIVITIES an assessment of the significant estimates BEFORE INTEREST AND TAXATION 3 108,667 97,724 for the year then ended; and judgments made by the directors in Interest receivable 4,459 4,060 the preparation of the financial statements, – the financial statements have been and of whether the accounting policies properly prepared in accordance Interest payable 5 (2,903) (2,476) are appropriate to the company’s with the Companies Act 1985; Other finance income 13 45 177 circumstances, consistently applied and and adequately disclosed. – the information given in the Report We planned and performed our audit of the Directors is consistent with NET INCOME FROM OPERATING ACTIVITIES so as to obtain all the information and the financial statements. BEFORE TAXATION 110,268 99,485 explanations which we considered Taxation 8 – – necessary in order to provide us with . sufficient evidence to give reasonable assurance that the financial statements AMOUNT AVAILABLE FOR DISTRIBUTION 110,268 99,485 are free from material misstatement, whether caused by fraud or other irregularity Anti-piracy/copyright protection contributions 4 (2,473) (2,420) PRICEWATERHOUSECOOPERS LLP or error. In forming our opinion we also Amount to be distributed to members and performers (107,795) (97,065) evaluated the overall adequacy of the CHARTERED ACCOUNTANTS AND presentation of information in the REGISTERED AUDITORS financial statements. LONDON RETAINED RESERVES Nil Nil 22 APRIL 2009 Cost to Income Ratio 14.6% 14.6% (excluding pension scheme costs)

The results above relate entirely to continuing operations. STATEMENT OF TOTAL RECOGNISED BALANCE SHEET GAINS AND LOSSES AS AT 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008 NOTE YEAR ENDED YEAR ENDED NOTE 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 2008 2008 2007 2007 2008 2007 £’000 £’000 £’000 £’000 £’000 £’000

Retained reserves –– FIXED ASSETS Actuarial gain/(loss) on the pension scheme 14 780 (361) Tangible assets 9 2,993 3,397 Movement in deferred tax on the pension scheme 14 (187) (151) CURRENT ASSETS TOTAL RECOGNISED GAINS/(LOSSES) FOR THE YEAR 593 (512) Licence fees receivable 17,701 29,277 Other debtors 2,174 1,942 Prepayments and accrued income 2,475 2,477 Short term fixed deposits 73,000 55,000 Cash at bank and in hand 18,905 23,520 114,255 112,216

CREDITORS: AMOUNTS 10 (116,080) (114,933) FALLING DUE WITHIN ONE YEAR NET CURRENT LIABILITIES (1,825) (2,717) TOTAL ASSETS LESS CURRENT LIABILITIES 1,168 680 PROVISIONS FOR LIABILITIES AND CHARGES 11 (1,914) (1,310) NET PENSION LIABILITY 13 (985) (1,694) NET LIABILITIES (1,731) (2,324)

RESERVES Income, expenditure and distribution account 14 (1,731) (2,324)

The financial statements which comprise the Income, Expenditure and Distribution account, the Statement of Total Recognised Gains and Losses, the Balance Sheet, the Cash Flow Statement and the related notes were approved by the board of directors on 21 April 2009 and are signed on its behalf by:

F NEVRKLA J FRENCH DIRECTOR DIRECTOR CASH FLOW STATEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008

NOTE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 2008 2008 2007 2007 £’000 £’000 £’000 £’000

NET CASH INFLOW FROM OPERATING ACTIVITIES 15 121,870 80,668 1. ACCOUNTING POLICIES

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE The financial statements have been c. Contributions to pensions The expected return on the assets of the prepared in accordance with applicable pension scheme during the year is based During the year the company operated Interest received 4,396 3,528 Accounting Standards in the United on the market value of the assets at the a contributory defined benefit pension Kingdom and the Companies Act 1985. start of the financial year and is offset Interest paid (3,459) (2,612) scheme covering its permanent employees A summary of the more important accounting within other finance costs in the income, and those of Video Performance Limited. Net cash inflow from returns on investments and servicing of finance 937 916 policies, which have been applied expenditure and distribution account. FRS17 ‘Retirement Benefits’ requires the consistently, is set out below. net pension asset or liability of a company’s The difference between the actual and CAPITAL EXPENDITURE pension scheme to be recognised in full expected return on the assets of the scheme on the balance sheet. Since PPL makes the is shown in the statement of total recognised a. Format of income, expenditure Payment to acquire tangible fixed assets (591) (1,268) majority of contributions to the pension gains and losses for the year, along with and distribution account and the scheme and is also making additional any related movement in deferred tax. Net cash outflow from capital expenditure (591) (1,268) balance sheet contributions in order to fund the deficit, The difference between the market value The formats of the income, expenditure then it is PPL who bears the risks and of the assets and the present value of the and distribution account and the balance rewards of the deficit or surplus in the DISTRIBUTIONS scheme liabilities is shown net of deferred sheet have been adapted from that scheme. Accordingly the full net pension tax in the balance sheet. Payments to members and performers (104,855) (75,612) prescribed by Schedule 4 to the Companies liability has been recorded in the balance Anti-piracy/copyright protection contributions paid (3,976) (1,962) Act 1985 in order to better reflect the sheet of PPL and no liability has been PPL has adopted the amendment to FRS17 nature of the business. recorded in Video Performance Limited. ‘Retirement Benefits’ in the current year. Net cash outflow from distributions (108,831) (77,574) The regular service cost of providing pension benefits to employees during b. Basis of accounting d. Licence fee income NET CASH INFLOW BEFORE USE OF LIQUID RESOURCES 13,385 2,742 the year, together with the costs of any The financial statements have been benefits relating to past service, is charged Licence fee income, which excludes value prepared on the going concern basis to costs of collection and distribution in added tax, represents the invoiced value, MANAGEMENT OF LIQUID RESOURCES under the historical cost convention. the income, expenditure and distribution and is recognised evenly over the period account in the year. of the licence term. (Increase)/decrease in cash placed on fixed term deposits (18,000) 2,000 Interest on the pension scheme liabilities Licence fee income from overseas societies is charged to other finance costs in the is recognised when an agreement is in (DECREASE)/INCREASE IN CASH 16 (4,615) 4,742 income, expenditure and distribution place with the overseas society and on account. a cash received basis. NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008

YEAR ENDED YEAR ENDED 31 DECEMBER 31 DECEMBER 2008 2007 £’000 £’000

1. ACCOUNTING POLICIES CONTINUED 2. LICENCE FEE INCOME Licence fee income comprises the following: e. Tangible fixed assets h. Foreign currencies An asset is not recognised to the extent Public performance and dubbing income 54,167 48,976 that the transfer of economic benefits in The cost of tangible fixed assets is their Foreign currency assets and liabilities are the future is uncertain. Deferred tax assets Broadcasting income 58,076 56,849 purchase cost, together with any incidental translated at the rates of exchange ruling and liabilities recognised have costs of acquisition. at the balance sheet date. Foreign currency International income 15,405 9,141 not been discounted. transactions during the year are translated Depreciation is provided at rates calculated 127,648 114,966 at the rate ruling on the date of the to write off the cost of each asset over the transaction. All foreign exchange differences Analysis of turnover by territory of origin: expected useful life or pre-determined l. Provisions for liabilities are taken to the income, expenditure and replacement date: and charges United Kingdom 112,243 105,825 distribution account in the year in which Fixtures and fittings 3 years they arise. Rest of Europe 13,997 7,241 Dilapidations Office equipment 3 years Provision is made for dilapidations where Rest of World 1,408 1,900 Computer hardware 3 years the lease requires the reinstatement of the Computer software (systems) 5 years i. Operating leases 127,648 114,966 premises to its original state. The level of Computer software (other) 3 years Costs in respect of operating leases are provision is based upon a damages report charged to the income, expenditure and and is reviewed annually. 3. NET INCOME FROM OPERATING ACTIVITIES BEFORE INTEREST AND TAXATION distribution account on a straight-line basis f. Unclaimed Members’ and Legal costs over the lease term. Net income from operating activities before interest and taxation is stated after charging: Performers' distributions Provision is made for the estimated legal costs where litigation is pending and an Fees payable to the company’s auditor for the audit of the company’s annual accounts 54 52 Allocations to members and performers obligating event has occurred prior to the remaining unclaimed for more than seven j. Taxation Fees payable to the company’s auditor and its associates for other services: balance sheet date. years are reallocated in accordance with Corporation tax is provided at amounts Taxation services 5 29 the Distribution Policy. expected to be paid (or recovered) using Refunds Other assurance services 107 122 the tax rates and laws that have been Provision is made for all significant refunds enacted or substantively enacted by the made in the post balance sheet period which Depreciation 995 906 g. Interest payable to Members balance sheet date. relate to licence fees received in the year. and Performers Operating lease rentals: Provisions for liabilities and charges are Interest is accrued on balances payable Land and buildings 855 840 not discounted and any movements in the to members and performers who do not k. Deferred taxation provisions are recorded in the income, Motor vehicles 31 26 receive advances at a rate based on Deferred taxation has been recognised expenditure and distribution account. the average deposit rate earned by as a liability or an asset if transactions the company for the relevant periods. have occurred at the balance sheet date that give rise to an obligation to pay more taxation in the future, or a right to pay less taxation in the future, using the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008

YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 2008 2007 2008 2007 £’000 £’000 £’000 £’000

4. ANTI-PIRACY/COPYRIGHT PROTECTION CONTRIBUTIONS 8. TAXATION BPI (British Recorded Music Industry) Limited 1,554 1,443 The charge for taxation for the year is calculated on disallowable items after the deduction of capital allowances. The International Federation of the Phonographic Industry 869 927 Current Tax Impala 50 50 UK corporation tax –– 2,473 2,420 Adjustment in respect of prior periods –– Total current tax credit for the year –– 5. INTEREST PAYABLE The tax assessed for the year differs from the standard rate applying in the UK (2008: 21%, 2007: 20%). The differences are explained below: Interest payable on Member and Performer balances 2,903 2,476 Net income from ordinary activities before taxation 110,268 99,485 Net income from ordinary activities at the UK tax rate 21% (2007:20%) 23,156 19,897 6. EMPLOYEES AND DIRECTORS Effects of: a. Gross staff costs during the year amounted to: Permanent differences (23,125) (19,875) Wages and salaries 8,527 7,772 Accelerated capital allowances and other timing differences (31) (22) Social security costs 757 704 Current tax credit for the year –– Other pension costs 220 183 The company had an unprovided deferred tax asset at 31 December 2008 as follows: 9,504 8,659 Capital allowances in excess of depreciation 224 128 b. Average number of employees during the year: Number Number Other timing differences 4 21 Office and management 210 194 Net deferred tax asset – unprovided 228 149 c. Directors’ emoluments: £’000 £’000 No provision has been made for this deferred tax asset on the basis that given that the majority Total directors’ emoluments 1,424 1,532 of the company’s net income is not taxable, the availability of suitable future taxable profits is not certain. Emoluments in respect of the highest paid director amounted to: The standard rate of corporation tax in the UK applicable to small companies changed from 20% to 21% Aggregate emoluments 671 740 on 1 April 2008. Accordingly, the company’s profits from this period are taxed at 21%. Defined benefit pension scheme – accrued pension at end of year 10 9

Number Number

Number of directors to whom retirement benefits are accruing under the defined benefit pension scheme 4 4

7. TRANSACTIONS WITH DIRECTORS There were no other transactions with directors during the year. NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008

FIXTURES, COMPUTER 31 DECEMBER 31 DECEMBER FITTINGS EQUIPMENT 2008 2007 & OFFICE & SOFTWARE £’000 £’000 EQUIPMENT DEVELOPMENTS TOTAL £’000 £’000 £’000

9. TANGIBLE ASSETS 1O. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Cost Trade creditors 334 25 Balance at start of year 290 9,851 10,141 Other taxation and social security 2,921 4,017 Additions 188 403 591 Other creditors and accruals 9,272 9,039 Disposals (51) (46) (97) Deferred income 30,112 30,849 Balance at end of year 427 10,208 10,635 Amounts due to members and performers 73,441 71,003 Accumulated Depreciation 116,080 114,933 Balance at start of year 161 6,583 6,744 The distributions to members and performers cannot be separately identified until the usage returns in respect of that period have Charge for the year 68 927 995 been received and matched against the repertoire database. This reflects the Distribution rules driven by the Council Directive Disposals (51) (46) (97) No 92/100/EEC of 19 November 1992 (‘The Rental Directive’) introduced in the UK with effect from 1 December 1996. Balance at end of year 178 7,464 7,642 Net Book Value at end of year 249 2,744 2,993

Net Book Value at start of year 129 3,268 3,397 AT UTILISED INCREASE AT 1 JANUARY IN THE YEAR FOR THE YEAR 31 DECEMBER 2008 2008 £’000 £’000 £’000 £’000

11. PROVISIONS FOR LIABILITIES AND CHARGES Provision for dilapidations 855 – – 855 Provision for legal costs 455 (455) 825 825 Provision for refunds – – 234 234 1,310 (455) 1,059 1,914 Dilapidations The dilapidations provision represents the amount required to reinstate the premises to a state as required under the lease, which expires in 2012. The provision will be fully utilised in 2012. Legal Costs Legal costs are provided as required for cases where litigation is pending. This provision is expected to be utilised in 2009. Refunds Provision is made for all significant refunds made in the post balance sheet period which relate to licence fees received in the year. NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008

31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 2008 2007 2008 2007 £’000 £’000

12. CO MMITMENTS 13. PENSION COSTS CONTINUED Operating Lease Commitments The major assumptions used by the actuary were (in nominal terms): At 31 December 2008 the company was committed to making the Rate of increase in salaries 4.20% 4.90% following payments during the next year in respect of operating leases: Rate of increase of pensions in payment 2.70% 3.40% Land and Buildings Rate of increase of pensions in deferment 2.70% 3.40% Leases which expire after 2 – 5 years 869 870 Discount rate 6.50% 5.80% Motor Vehicles Inflation assumption 2.70% 3.40% Leases which expire within 1 year 19 3 Expected return on scheme assets 6.54% 7.40% Leases which expire within 2 – 5 years 826 The expected return on scheme assets is based on market expectations at the beginning of the financial period for returns over the life 13. PENSION COSTS of the asset. The expected return on equities has been determined by including a premium over fixed interest securities to reflect the out performance of equities relative to fixed interest securities. The company operates a defined benefit scheme in the UK with assets held in a separately administered fund. The basis on which the net pension liability is recognised in the financial statements is set out in note 1. The scheme was closed to new entrants from 1 July 2003. A full actuarial valuation using the projected unit method was carried out at 30 June 2006 and updated to 31 December 2008 by a qualified independent actuary. 31 DECEMBER 31 DECEMBER 2008 2007 The company is currently contributing to the Scheme at a rate of 15.3% of pensionable salaries and is making additional contributions £’000 EROA% AMOUNT% £’000 EROA% AMOUNT% of £150,000 per annum until 30 June 2010, reverting to 15.3% of pensionable salaries from 1 July 2010.

The assets in the scheme, the expected rates of return and the amounts recognised in the balance sheets are as follows: Equities 7,602 6.70% 95% 9,702 7.55% 95% Gilts 389 3.70% 5% 486 4.55% 5% Other (cash) 25 2.00% 0% 48 5.50% 0% Total market value of assets 8,016 10,236 Present value of scheme liabilities (9,264) (12,380) Deficit in the scheme (1,248) (2,144) Related deferred tax asset 263 450 Net pension liability (985) (1,694)

No differences in the value of plan assets arise as a result of the adoption of FRS17 (revised). NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008 FOR THE YEAR ENDED 31 DECEMBER 2008

YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER 2008 2007 2008 2007 2006 2005 2004 £’000 £’000 £’000 £’000 £’000 £’000 £’000

13. PENSION COSTS CONTINUED 13. PENSION COSTS CONTINUED The amount recognised in the income, expenditure and distribution account: Amounts for current and previous four years: Current service cost (343) (408) Defined benefit obligation (9,264) (12,380) (11,303) (9,640) (7,879) Interest on pension scheme liabilities (730) (556) Scheme assets 8,016 10,236 9,301 8,343 6,242 Expected return on pension scheme assets 775 733 Deficit (1,248) (2,144) (2,002) (1,297) (1,637) Total (298) (231) History of experience gains and losses: Actual return on assets (2,650) 468 Adjustment due to change in assumptions 4,205 (95) (686) (727) (239) Changes in the present value of the defined benefit obligation are as follows: Experience adjustments on scheme assets (3,425) (266) (88) 1,066 89 Opening defined benefit obligation 12,380 11,303 Total amount recognised in statement of total recognised gains and losses: 780 (361) (774) 339 (150) Current service costs 343 408 Employee contributions 86 97 The cumulative loss recorded in the statement of total recognised gains and losses in respect of the Interest costs 730 556 defined benefit pension scheme and related deferred tax asset is £1,731k (2007: £2,324k). Actuarial (loss)/gain (4,203) 96 YEAR ENDED YEAR ENDED Benefits paid (72) (80) 31 DECEMBER 31 DECEMBER 2008 2007 Closing defined benefit obligation 9,264 12,380 £’000 £’000 Changes in the fair value of plan assets are as follows: 14. RETAINED RESERVES – INCOME, Opening fair value of scheme assets 10,236 9,301 EXPENDITURE AND DISTRIBUTION ACCOUNT Expected return on assets 775 733 At start of year (2,324) (1,812) Actuarial loss (3,424) (265) Actuarial gain/(loss) on the pension scheme 780 (361) Employer contributions 415 450 Movement in deferred tax on the pension scheme (187) (151) Employee contributions 86 97 (1,731) (2,324) Benefits paid (72) (80) Closing fair value of scheme assets 8,016 10,236 NOTES TO THE FINANCIAL STATEMENTS NOTES FOR THE YEAR ENDED 31 DECEMBER 2008

YEAR ENDED YEAR ENDED 31 DECEMBER 31 DECEMBER 2008 2007 £’000 £’000

15. RECONCILIATION OF NET INCOME FROM OPERATING ACTIVITIES BEFORE INTEREST AND TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES Net income from operating activities before interest and taxation 108,667 97,724 Depreciation 995 906 Difference between pension charge and cash contributions (72) (42) Decrease/(increase) in debtors 11,283 (18,152) Increase in creditors 393 725 Increase/(decrease) in provisions 604 (493) Net cash inflow from operating activities 121,870 80,668

16. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS (Decrease)/increase in cash in the period (4,615) 4,742 Increase/(decrease) in cash placed on fixed term deposits 18,000 (2,000) Changes in net funds resulting from cash flows 13,385 2,742 Net funds at 31 December 2007 78,520 75,778 Net funds at 31 December 2008 91,905 78,520

AT AT 1 JANUARY 31 DECEMBER 2008 CASH FLOW 2008 £’000 £’000 £’000

17. ANALYSIS OF CHANGES IN NET FUNDS Cash at bank and in hand 23,520 (4,615) 18,905 Short-term investments 55,000 18,000 73,000 78,520 13,385 91,905 CREDITS

PHOTOGRAPHY THANKS TO DESIGN AND PRINT Photography by Alan F Cook Hayley Madden, John Marshall, Designed by Typematic www.afcook.co.uk Tim Smith and Frédéric Remouchamps www.typematic.com for In Action photography Images by Getty Images Printed by Fulmar Pages 8 –11 Ian Macaulay for Fran Nevrkla in FSC certified and CarbonNeutral Executive Management photography The paper used in this report is environmentally friendly HannoArt Silk

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