―1―
Consolidated Financial Summary for the Year Ended March 31, 2008
(Translation of Japanese Financial Summary prepared on the basis of accounting principles generally accepted in Japan)
May 16, 2008
Avex Group Holdings Inc.
Tokyo Stock Exchange, First Section
Code No: 7860
(URL http://www.avex.co.jp/)
Representative: Masato Matsuura, CEO Contact: Toshio Kobayashi, CFO, Senior Managing Director, Group Administration General Manager
TEL: (03) 5413-8550
Ordinary General Meeting of Shareholders: scheduled for June 22, 2008
Dividend payment: scheduled to start on June 23, 2008
Securities report: to be filed on June 23, 2008

Note: All amounts are rounded down to the nearest million yen.

1. Consolidated operating results for the year ended March 31, 2008 (April 1, 2007 to March 31, 2008)
(1) Consolidated sales and income
Note: Indications of percentage changes represent an increase (decrease) from the corresponding period of the previous year.

Sales
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Year ended
million yen
%
million yen
%
million yen
%
million yen
%
March 31, 2008
104,639
3.0
8,510
(2.1)
7,066
(9.6)
909
(70.3)
March 31, 2007
101,626
13.2
8,691
0.5
7,814
(13.7)
3,063
(31.6)
Net income
per share
Diluted net income
per share
Ratio of net income
(loss) to shareholders’
equity
Ratio of ordinary
income (loss) to total
assets
Ratio of operating
income (loss) to sales
Year ended
yen
yen
%
%
%
March 31, 2008
21.17
–
2.8
6.8
8.1
March 31, 2007
71.33
–
9.2
8.2
8.6
(Reference) Equity in earnings of affiliates
Year ended March 31, 2008
¥(773)
million
Year ended March 31, 2007
¥(841)
million

(2) Consolidated financial position

Total assets
Net assets
Shareholders’ equity ratio
Net assets per share
Year ended
million yen
million yen
%
yen
March 31, 2008
102,124
32,812
31.6
751.05
March 31, 2007
105,894
33,699
31.3
772.31
(Reference) Shareholders’ equity
Year ended March 31, 2008
¥32,253
million
Year ended March 31, 2007
¥33,166
million

(3) Consolidated statement of cash flows

Cash flow from
operating activities
Cash flow from
investing activities
Cash flow from
financing activities
Cash and cash equivalents
at end of period
Year ended
million yen
million yen
million yen
million yen
March 31, 2008
7,293
(980)
(2,552)
10,093
March 31, 2007
1,210
(18,156)
17,929
6,371

2. Status of dividend payments

Dividend per share
(Record date)
End of
six-month period
End of year
Annual
Total dividend
payment (annual)
Payout ratio
(consolidated)
Dividend on equity
(consolidated)
Year ended
yen
yen
yen
million yen
%
%
March 31, 2007
20.00
20.00
40.00
1,717
56.1
5.2
March 31, 2008
20.00
20.00
40.00
1,717
188.9
5.3
March 31, 2009 (forecast)
20.00
20.00
40.00
–
57.3
–

3. Forecasts for consolidated sales and income for the year ending March 31, 2009 (April 1, 2008 to March 31,
2009)
Note: Indications of percentage changes represent an increase (decrease) from the corresponding period of the previous year.

Sales
Operating income
(loss)
Ordinary income
(loss)
Net income (loss)
Net income
(loss)
per share
million yen
% million yen
% million yen
% million yen
%
yen
Six-month period ending
Sep. 30, 2008
56,300
23.6
2,300
88.3
1,500 201.8
300
–
6.99
Year ending
March 31, 2009
117,900
12.7
8,500
(0.1)
7,000
(0.9)
3,000 229.9
69.86

―2―
4. Others
(1) Changes in significant subsidiaries during the year ended March 31, 2008 (changes in specified subsidiaries due to changes in
the scope of consolidation): Yes Subsidiaries excluded from consolidation: One (Avex Network Inc.)
Note: For details, please refer to the “Corporate structure” section on page 11.

(2) Changes in accounting principles, accounting procedures, and presentation methods related to preparation of consolidated
financial statements (changes to be stated in the section on “Changes in significant matters providing the basis for preparing consolidated financial statements”)
a. Changes involving amendments and revisions to accounting standards: Yes b. Changes other than those included in a. above:
None
Note: For details, please refer to the section “Changes in accounting policy” in “Significant matters providing the basis for preparing
consolidated financial statements” on page 26.

(3) Shares outstanding (common shares)
a. Shares outstanding at year-end (including treasury stock)
March 31, 2008:
46,157,810 shares
March 31, 2007
46,157,810 shares
b. Treasury stocks at year-end
March 31, 2008
3,213,587 shares
March 31, 2007
3,213,240 shares
Note: For the number of shares on which computation of net income per share (consolidated) is based, please refer to “Per share information”
on page 32.
(Reference) Overview of non-consolidated operating results 1. Non-consolidated operating results for the year ended March 31, 2008 (April 1, 2007 to March 31, 2008)
(1) Non-consolidated sales and income
Note: Indications of percentage changes represent an increase (decrease) from the corresponding period of the previous year.

Sales
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Year ended
million yen
%
million yen
%
million yen
%
million yen
%
March 31, 2008
13,064
(10.0)
4,103
(31.7)
3,386
(41.8)
1,151
(76.6)
March 31, 2007
14,520
34.1
6,010
366.2
5,818
382.1
4,913
761.6
Net income (loss) per
share
Diluted net income per
share
Year ended
yen
yen
March 31, 2008
26.81
–
March 31, 2007
114.41
–

(2) Non-consolidated financial position

Total assets
Net assets
Shareholders’ equity ratio
Net assets per share
Year ended
million yen
million yen
%
yen
March 31, 2008
75,803
20,852
27.2
479.72
March 31, 2007
73,700
21,343
28.8
493.95
(Reference) Shareholders’ equity
Year ended March 31, 2008
¥20,601
million
Year ended March 31, 2007
¥21,212
million

*Cautionary statement concerning forward-looking statements The forecasts for operating results and others contained in this release were prepared by management based on currently available data and information. Therefore, the forecasts include potential risks and uncertain elements. Particularly, in the Group’s business domain there are various other factors besides general economic conditions that may affect our business performance. Please note, therefore, that actual results may greatly differ from the forecasts. For assumptions used for the forecasts, please refer to “1. Business results, (1) Breakdown of business results, Business performance outlook” on page 7.

―3―
Trends in Quarterly Results for the Fiscal Year Ended March 31, 2008

Fiscal year ended March 31, 2008 (consolidated)
1Q Fiscal year ended Mar. 08
2Q Fiscal year ended Mar. 08
3Q Fiscal year ended Mar. 08
4Q Fiscal year ended Mar. 08
Fiscal year
ended Mar. 08

Apr. 2007 –
Jun. 2007
Jul. 2007 –
Sep. 2007
Oct. 2007 –
Dec. 2007
Jan. 2008 –
Mar. 2008
Apr. 2007 –
Mar. 2008

million yen
million yen
million yen
million yen
million yen
Sales
20,070
25,475
25,967
33,126
104,639
Operating income (loss)
161
1,059
3,005
4,284
8,510
Ordinary income (loss)
(111)
608
2,622
3,947
7,066
Net income (loss)
(117)
(136)
1,166
(3)
909

yen
yen
yen
yen
yen
Net income (loss) per share
(2.74)
(3.18)
27.17
(0.07)
21.17
Diluted net income per share
–
–
–
–
–

million yen
million yen
million yen
million yen
million yen
Total assets
103,435
98,167
102,490
102,124
102,124
Net assets
32,713
32,100
32,298
32,812
32,812

yen
yen
yen
yen
yen
Net assets per share
748.98
734.42
738.66
751.05
751.05

million yen
million yen
million yen
million yen
million yen
Operating cash flow
(2,787)
2,119
(1,451)
9,413
7,293
Investing cash flow
(640)
243
(475)
(108)
(980)
Financing cash flow
5,534
(3,799)
1,851
(6,137)
(2,552)
Cash and cash equivalents at end of period
8,462
7,091
6,924
10,093
10,093
Note: No diluted net income per share is reported because no potential shares with dilutive effects exist.

Fiscal year ended March 31, 2007 (consolidated)
1Q Fiscal year ended Mar. 07
2Q Fiscal year ended Mar. 07
3Q Fiscal year ended Mar. 07
4Q Fiscal year ended Mar. 07
Fiscal year
ended Mar. 07

Apr. 2006 –
Jun. 2006
Jul. 2006 –
Sep. 2006
Oct. 2006 –
Dec. 2006
Jan. 2007 –
Mar. 2007
Apr. 2006 –
Mar. 2007

million yen
million yen
million yen
million yen
million yen
Sales
19,723
21,713
25,495
34,694
101,626
Operating income (loss)
(256)
692
3,852
4,402
8,691
Ordinary income (loss)
(309)
695
3,483
3,944
7,814
Net income (loss)
(530)
6
1,923
1,663
3,063

yen
yen
yen
yen
yen
Net income (loss) per share
(12.35)
0.15
44.79
38.73
71.33
Diluted net income per share
–
–
–
–
–

million yen
million yen
million yen
million yen
million yen
Total assets
79,436
82,318
95,504
105,894
105,894
Net assets
31,385
31,137
31,866
33,699
33,699

yen
yen
yen
yen
yen
Net assets per share
730.82
722.54
738.65
772.31
772.31

million yen
million yen
million yen
million yen
million yen
Operating cash flow
(3,794)
(1,403)
(835)
7,244
1,210
Investing cash flow
(2,727)
(4,792)
(349)
(10,286)
(18,156)
Financing cash flow
5,446
5,193
7,203
86
17,929
Cash and cash equivalents at end of period
4,400
3,280
9,310
6,371
6,371
Note: No diluted net income per share is reported because no potential shares with dilutive effects exist.

―4―
1 Operating results
(1) Breakdown of operating results
(Unit: million yen)

Fiscal year
ended March 31,
2004
Fiscal year
ended March 31,
2005
Fiscal year
ended March31,
2006
Fiscal year
ended March 31,
2007
Fiscal year
ended March 31,
2008
Sales
73,896
75,418
89,783
101,626
104,639
Cost of sales
44,825
48,353
52,361
61,894
63,323
Gross profit
29,071
27,064
37,422
39,732
41,316
Gross profit margin
39.3%
35.9%
41.7%
39.1%
39.5%
Personnel expenses
6,546
7,075
8,932
9,587
10,344
Sales promotion and
advertising expenses
8,401
8,238
10,993
12,043
12,238
General expenses
7,107
7,480
8,845
9,410
10,222
Total SG&A expenses
22,055
22,795
28,771
31,041
32,805
Operating income (loss)
7,015
4,269
8,650
8,691
8,510
Operating margin
9.5%
5.7%
9.6%
8.6%
8.1%

In the fiscal year ended March 31, 2008, the Japanese economy saw uncertainty over the future, including surging prices of a variety of raw materials due to the oil price hike, and negative impacts from the disruption in the financial markets triggered by the weak U.S. economy.
In the music software industry, package production including music DVD for the period from January 2007 to December 2007
showed a year-on-year decrease of 4.2% in terms of monetary amounts (according to survey data released by the Recording Industry Association of Japan [RIAJ]). The market environment for music CD packages continued to deteriorate from the previous year.
Despite those factors, demand for online distribution of music content primarily for mobile phones remained robust, with a
year-on-year increase of 41.2% in the value of sales of music downloads from January 2007 to December 2007 (according to survey data released by RIAJ). Thus, sales of the entire music industry consisting of music CD package products and online music distribution increased slightly for two consecutive years.
Meanwhile, in the video software industry, total sales for the fiscal year from April 2007 to March 2008 decreased by 3.6% as
compared with the previous year (according to research data by the Japan Video Software Association [JVA]).
Amid this business environment, the Group has worked hard to increase the brand value of individual artists through a variety of
opportunities relating to the artists, including sale of packaged products, online distribution of music and visual content, membership businesses, live events, merchandising, fan clubs, and TV and commercial appearances, to achieve further growth as a creativity-based company. Furthermore, we promoted the production and acquisition of visual content as the second core business of our company following the music content business, focusing on the release of movies that we produced, and sale of DVD packaged products of such movies.
As a result, the Group’s consolidated sales for the fiscal year ended March 31, 2008 increased by 3.0% compared with the
previous year to 104,639 million yen, while consolidated operating income decreased by 2.1% over the previous year to 8,510 million yen.

―5―
Business performance by respective business segment is as follows:
a) Package Communication Business (PC Business)

(Unit: million yen)
PC Business
Fiscal year ended
March 31, 2007
Fiscal year ended
March 31, 2008
Change
Sales
59,983
54,608
(5,374)
Cost of sales
50,470
44,544
(5,925)
Gross profit
9,512
10,064
551
Gross profit margin
15.9%
18.4%
2.5%
Total SG&A expenses
8,141
9,037
896
Operating income
1,371
1,026
(345)
Operating margin
2.3%
1.9%
(0.4%)
Sales to external customers
59,538
54,402
(5,136)
Sales of the PC Business for the fiscal year ended March 31, 2008 dropped by 9.0% from the previous year to 54,608 million yen due to a decrease in the number of products sold of both our proprietary labels and consignment labels. Operating income also fell by 25.2% compared with the previous year to 1,026 million yen, reflecting an increase in sales promotion and advertising expenses due to a rise in the number of released titles.
b) Network Communication Business (NC Business)

(Unit: million yen)
NC Business
Fiscal year ended
March 31, 2007
Fiscal year ended
March 31, 2008
Change
Sales
22,879
27,567
4,688
Cost of sales
15,645
17,823
2,178
Gross profit
7,234
9,743
2,509
Gross profit margin
31.6%
35.3%
3.7%
Total SG&A expenses
6,021
6,518
497
Operating income
1,212
3,224
2,012
Operating margin
5.3%
11.7%
6.4%
Sales to external customers
21,531
26,272
4,740
Sales of the online music distribution service rose steadily to 27,567 million yen, an increase of 20.5% on a year-on-year basis, as the online music distribution market for mobile phones, Chaku-Uta Full®, expanded.
Operating income amounted to 3,224 million yen, up 165.9% from the previous year as a result of higher gross profit
margins for the membership business due to a rise in the per customer sales amount, and a reduction of sales promotion and advertising expenses.