Amana IPO

Posted on 8/16/2004 by Jim Pickerell | Printable Version | Comments (0)

657

AMANA IPO



August 16, 2004

In July, amana (parent company of Photonica), and the largest photography company in Japan, floated an IPO on the Tokyo "Mothers" market for a minority percentage of the company stock. This is normal practice for a Japanese IPO, where the objective is less about raising huge amounts of cash at first, and more about progressively enhancing the status of the company. Over the years, a successful public company will traverse a step-by-step process of status enhancement through the different stages of the market. Along the way, access to better funding becomes available to the company, and more of the company stock is floated incrementally. The amana group is made up of the parent company, amana Inc., and a plethora of subsidiaries in Japan and the West.


The company has 1,216,200 shares outstanding and 485,000 shares of stock were offered at JPY 23,000 per share in this sale. This means that they raised something in the range of $100 million US for about 38.88% of the company that is now in public hands. The shares are currently being traded on the Tokyo Stock Exchange "Mothers" market at about JPY 41,850 (price as on 13th July 2004). By multiplying this current share price by the total number of shares we get a value for the company of about JPY 50,897,970,000 which is around $460 million at an exchange rate of 110 yen to the dollar.


The consolidated revenue for the two previous years is as follows:












     

Japanese Yen   

Approx. US $   

2002   

7,024,641,000   

$63,347,831   

2003   

7,356,877,000   

$66,343,917   



About half of amana's revenue in 2002 was generated from a visual content production business (assignments) for Japanese advertising customers. amana provides a whole range of solution services, and not only shoots the photographs, but also carries out art direction, all support activities and extensive post production digital work and computer graphics. It's a true full service business where amana can create almost any visual depiction a client can imagine.


The amana digital division often sits in the driving seat in creating ads and in certain cases, images are created on screen with art-direction taking place there and either stock or assigned shoots brought in as components. While all these services might be considered part of a "photographic budget" in Western terms, the degree of creative freedom available to the client in getting anything they can imagine [and indeed plenty beyond their imagination] all under one roof, doesn't exist here in the West. This division averages around 550 orders per month and based on 2003 revenue that would mean that the average sales is worth about $4,400 but some have gone as high as JPY 7 million which is over $60,000.


It is important to understand this distinction because this portion of the amana revenue is not comparable with stock agency revenue anywhere else in the world.
The breakdown between stock and visual solutions [i.e. assignment] is as follows:





















     

Japanese Yen   

Approx. US $   

2002 Assignment   

3,542,866,000   

$31,949,373   

2002 Stock   

3,481,774,000   

$31,398,449   

     

     

     

2003 Assignment   

4,125,438,000   

$37,202,976   

2003 Stock   

3,231,439,000   

$29,140,941   



In 2003 the total revenue from "visual solutions" was up about 16% while the stock revenue was down just slightly. The company believes they are well positioned to leverage their high-end computer graphics strength as the advertising industry moves more in that direction.


The geographic breakdown of their revenue in 2002 and 2003 is as follows. Keep in mind that all of the visual solutions revenue was in Japan so the difference between the Japan figures below and the Assignment figures above would represent the amount of stock revenue in Japan.


The breakdown geographically is as follows:



























     

Japanese Yen   

Approx. US $   

2002 Japan   

4,922,278,000   

$44,388,836   

2002 N. Amer.   

1,127,964,000   

$10,171,918   

2002 Europe   

974,000,000   

$8,783,479   

     

     

     

2003 Japan

5,383,631,000

$48,549,292

2003 N. Amer.

971,211,000

$8,758,328

2003 Europe

1,002,035,000

$9,036,297



The first figures below show consolidated ordinary profit which is more or less net profit before tax. The second set of figures are consolidated net profit which is the after tax figure.





















  

Japanese Yen

Approx. US $

2002 Ordinary Profit

162,115,000

$1,461,944

2003 Ordinary Profit

383,041,000

$3,454,243

  

  

  

2002 Net Profit

83,438,000

$752,439

2003 Net Profit

186,463,000

$1,681,513



The amana group consists of 9 consolidated subsidiaries and 2 further companies in which it holds a part equity stake.

About 39% of amana's sales are to Advertising Agencies and 34% to production companies. Among their larger end user are: Electronic and computer companies - 15.5%; Food and Restaurants - 12.4% and Cosmetic companies - 10.4%.

The principal stock holders are Hironobu Shindo who holds 23.5% of the stock and Life Information Institute that holds 23.4%.


Copyright © 2004 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

Comments

Be the first to comment below.

Post Comment

You must log in to post comments.

Stay Connected

Sign up to receive our FREE weekly email listing new stories posted.

Follow Us

Free Stuff

Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More
Where Is The Stock Photo Industry Headed?
For new readers, or those who may have missed some of what I have written over the last few months, the following are a list of stories worth looking at to get a sense of where the industry is headed.
Read More
Photography As A Career
It’s that time of year when high school seniors are waiting for college acceptance letters and thinking about future careers. If you know someone who is thinking about photography as a career you mig...
Read More
2014 Stories You May Have Missed
For many the end of the year is a time to review past experiences and consider whether it makes sense to chart a new course in the year ahead. Stock photography has changed dramatically for professio...
Read More
More Stories In 2014 You May Have Missed
Every so often I put together a list of the most important stories we’ve published in the recent past. If you are engaged in the business of stock photography the links below are to stories that we’v...
Read More
Getty: A Three Month Review
In all the excitement about 35 million FREE images it is worth looking back at some of things that have been happening at Getty Images in the last three months. After watching revenue decline for the...
Read More
State Of Stock Photo Industry: 2013
If you’re looking for an overview of the state of the stock photo industry as of October 2013 the stories listed below are a good place to start. Regular readers of Selling-Stock will have seen all t...
Read More
Education Market Shifts To Digital
If supplying pictures for educational use is a significant part of your business plan you need to be aware of how the market is trending toward digital delivery and how that is likely to affect the p...
Read More

More from Free Stuff