Dear colleagues,

this report on the activities of the Supervisory Board (SB) covers the fiscal year 2023.

The Supervisory Board met eleven times and, as this was not an election year, the meetings were held in the same way as last year in terms of personnel.

Audit

The Management Board is responsible for the preparation of the financial statements. The SB is responsible for overseeing the financial reporting process. A proper audit carried out by APOGEO Audit, Ltd, an independent company, did not reveal any deficiencies in the OSA's 2023 financial statements. The information presented in the OSA Management Board's Annual Report is consistent in all respects with the financial statements, which give a true and fair view of the assets and liabilities, costs and income, results of operations and cash flows, all in accordance with Czech accounting regulations.

Economic results

These are very challenging and difficult times. Nevertheless, OSA's economic results are very positive. Revenues reached CZK 1 715 million, an increase of 18.3% over the previous year. The main growth wa in concerts, background music and broadcasting.

The average cost deduction was 11.87% and the royalty surplus was CZK 3.6 million. This is a great result, for which I would like to thank the Management Board headed by Ing. Roman Strejček and all the contributing employees. The SB and its working committees, especially the Economic and Distribution Committee, were also very active.

Membership base

As of 31 December 2023, OSA administered the copyrights of a total of 11,448 right holders under contract, including 8,243 living authors, 3,034 heirs and 171 publishers. During the year, it newly recruited 426 authors and 4 publishers for representation.

As of 31 December 2023, the OSA had 597 members, including 371 composers of popular music, 60 composers of classical music, 92 songwriters, 45 heirs and 29 publishers. 1 membership has lapsed.

53 authors, 5 publishers and the heirs of 1 author met the conditions for membership. Of this, 9 composers (pop), 4 lyricists and 3 publishers applied for membership, 2 classical composers applied for extraordinary membership.

Activities of the Supervisory Board

One of the basic prerequisites for the successful activity of the SB is its open and friendly cooperation with the OSA Management Board as well as undisturbed collegial relations, aimed primarily at the fair distribution of royalties, social issues, the issue of copyright law and the related issues. A helpful collegiality between the various professional groups should be ensured. The measure of value is not immediate success. Rather, it is about setting and always maintaining a forward-looking course of action that guarantees positive results. It is these values the SB has pursued in its work.

The preparation of documents for the OSA General Assembly is an essential task for the DR. Individual OSA documents must be continually updated to reflect the current conditions
and needs of the copyright community. The results of the SB year-long work in this respect are reflected in the proposals for amendments to the OSA Distribution Rules, the Statutes of the Cultural, Social and Educational Fund discussed by the General Assembly.

In addition to the proposals prepared for the vote at the General Assembly, the SB also addressed other topics:

• Increasing the value of funds through safe, interest-bearing fixed-term deposits,
• Legal and social issues,
• IT development – improvement of the Infosa information system, improvement of services for music users via the e-shop, implementation of a web application for the Partnership Programme, etc,
• Maintenance of OSA's real estate – preparation for the reconstruction of OSA´s headquarters in Prague 6, Čs. armády 786/20, including the provision of alternative premises for activities during the reconstruction period,
• Current issues related to copyright matters – annual report of the Management Board, auditor's report, annual financial statements, OSA's profit and loss acount of the OSA, etc.

In conclusion, I would like to say that the work of the SB has been carried out in a good atmosphere of collegial cooperation and mutual helpfulness throughout 2023. In the current difficult times, this is a beautiful fact that should be appreciated.

Despite all the complexities of the present times, 2023 was a very successful year financially. My thanks go to all those involved, led by the Management Board.