analyst presentation 09102008

8/18/2019 Analyst Presentation 09102008

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Analyst Presentation

London, 9 October 2008


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Contents

Juventus: 110 years of history

2006/2008: a Company turnaround

Economic and financial data at 30/06/08

Goals and strategies


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Juventus is the most famous and successful footballclub in Italy…

… and one of the leading teams in Europe

Juventus is…


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Juventus values

EleganceLeadership

Tradition

Style

Prestige

EfficiencyItalianness

Popularity

CompetencyReliability

Class


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• Source: CRA – Monitor Calcio 2006/07 – Italian core fans

31% 15%14% 8% 6% 4%

Juventus fans in Italy

Market shares


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Juventus fans in Italy

La Juventus è di gran lunga la più amata squadra

in Italia con oltre 12 milioni di tifosi, distribuiti inmodo uniforme su tutto il territorio nazionale.

• Source: CRA – Monitor Calcio 2006/07 – Italian core fans + supporters

Juventus is by far the best-loved club in Italy with

over 12 million fans, distributed uniformly acrossthe country


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Italy’s best-loved club

•Source: CRA – Monitor Calcio 2006/07

The best-loved team in 11 regions, thesecond in four and the third in the others


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Figures for each nation:

• Source: SPORT+ MARKT – International Fan Potential 2005 & CRA – Monitor Calcio 2005/06

Juventus fans in the world

Total:173 million


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Company

New top management

Central role of the BoD and stronger corporate governanceUpdate of code of ethics

New Company organisation

New organisational procedures

Team

Changes in technical staff tackled and managed

Management of 2006/2007 transfer campaign for

financial balance and competitiveness in future seasonsInvestments to confirm champions to win in Serie B and

lay foundations for the future

Serie B 06/07 championship won (starting from 9 point penalty)

Third place in Serie A 07/08 and qualification UCL

From “B –30” to the top of A in 20 months


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From “B –30” to the top of A in 20 months

Revenues

Renegotiation and confirmation of TV and sponsor contracts

Innovative new commercial strategy developed

Mediaset option on TV rights for the 2009/2010 season

exercised

Finance

March 2007: mid-term development plan launchedJune 2007: success of capital increase of € 104 million,

entirely underwritten, with consequent reduction in

indebtedness and new investment capacity


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Since June 2006: the signs of change

International authority of the club recognised

For 18 months Juventus represented the Italian clubs on the

board of the G14

Central role in the redefinition of the rules regulating

relations between UEFA, FIFA and clubs (foundation of ECA)

Infrastructures

July 2006: Vinovo training centre opened

July 2007: PEC for the new stadium signed with the City of

Turin

March 2008: launch of the Stadium Project


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Mission

To be a leading club in Europe and a successful

listed Company

To obtain high and regular sports performance on

the field, developing a sustainable business model

To lead change in football in Italy and to position

Juventus as the benchmark of a modern

Company, close to fans and respectful of the

educational values of sport

To manage the Company with great professionalism


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Juventus today

A business project with a long-term vision

A professional and motivated organisation

Experienced technical staff, led by Claudio Ranieri, for an

ambitious sports project

A united team, with great champions and outstanding

young players:

- Buffon, Camoranesi, Del Piero, Nedved, Trezeguet, Iaquinta,Amauri, Chiellini

- Successful development of Molinaro, De Ceglie, Giovinco,Marchisio

A renewed Scounting sector


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Build the future with the Youth Sector

Over € 5 million invested per year

14 young players in senior championships

62 technical staff

348 players

17 teams

Figures


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Build the future with the Youth Sector

From focus on results to attention for talents

A unique model for Italian football

A professional, integrated football school, of European standing, to enhance

the technique and athletic abilities of youth players, especially Italians, and

regularly bring new talents into the First Team

Collaboration of the First Team’s technical staff with the Youth Sectortrainers

Willingness of the First Team trainer to show trust in and give space to

talented young players

Preparation shared with the Primavera team


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Close to fans

Juventus Membership:- the first online membership project for fans

- the biggest black and white virtual community- 30,000 members in just 9 months

The stadium sensation:

- a new way of experiencing the games

- family entertainment

- shows and events for spectators- initiatives with commercial partners

Juventus Channel:

- channel 231 on SKY- on air 24 hours a day- interaction and information for fans- 40,000 subscribers in 12 months


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Commercial strategy

Juventus has always been a strongly innovative player in thesponsorship market.

Thanks to its enormous media coverage and the fan base it can counton in Italy, Europe and throughout the world, Juventus has outlined anew commercial strategy, to move into a new marketplace.

As of the 2007/2008 season, Juventus has developed a complete,

exclusive and innovative offering to tackle new “competitors”: nolonger Italian and European football clubs, but major global sportsevents (Champions League, World Cup).


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Commercial strategy

“Less is more”

Limited and select group of national and international

partners to enhance the Juventus brand

Higher visibility of partner brands

Increase in average value of contacts

Creation of more stable and lasting relationsMore value transferred to partners

Objectives


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Stadium Project: the Juventus home

Background

2003: acquisition of 99 year lease from the City of Turin

for € 25 million

2007:

- Development and presentation of the Euro 2012 project

(March)- PEC for stadium and commercial areas signed with the

City of Turin (July)

- Study of new projects

- Active and positive collaboration with the City of Turin


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The Project:

New stadium completed by July 2011

Investment of about € 105 million

Innovative for Italy

Family-friendly facility

High visibility (9 metres to the pitch)In line with a new idea of football

40,000 seats, 40 sky boxes, 2,850 VIP seats,

4,400 car parks


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Sportfive strategic partnership

On 20 March 2008 Juventus and Sportfive Italia S.p.A. (ownedby SPORTFIVE Group, a company of Lagardère Sports Group,the European leader in the fields of sports rights marketing),signed a long term strategic partnership with respect toexclusive naming and partial promotional and sponsorship rightsof the new stadium. On 18 April 2008 Juventus and Sportfive

Italia S.p.A. signed the final agreement.

Sportfive is entitled to exclusively sell the naming right of thenew stadium and to market part of the sky boxes and VIP seats.

The partnership shall last until the twelfth year after thecompletion of the construction of the new stadium.

The agreement provides an overall base compensation of € 6.25million per annum per 12 years, that will be paid to Juventus

during the term of the partnership. The agreement envisagesthat a significant part of the payments will be made during theconstruction of the new stadium.


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R b kd t 30/06/2008


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Revenues breakdown at 30/06/2008

TV RIGHTS ANDUEFA UCL

TICKETSALES

SPONSORSHIP ANDCOMMERCIAL

OTHERREVENUES

2007/2008

€ 203.7 million

REVENUESFROMPLAYERS’ RIGHTS

2006/2007

€ 186.7 million

49.8%18.5%

22.2%

5.3% 4.2%

61.0%

20.2%

8.4% 3.5% 6.9%

R d ti t


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Revenues and operating costs

€/mFinancial Year

2007/2008

Financial Year

2006/2007

Ticket sales 14.0 7.8

Television and radio rights and media revenues 124.2 93.0

Revenues from sponsorship and advertising 41.2 34.5

Revenues from players' registration rights 17.1 41.5Other revenues 7.2 9.9

TOTAL REVENUES 203.7 186.7

Purchase of materials, supplies and other consumables (2.4) (3.2)

External services (26.3) (28.4)Players' wages and technical staff costs (112.7) (95.0)

Other personnel (8.1) (7.9)

Expenses from players' registration rights (2.2) (4.5)

Other costs (22.8) (8.4)

TOTAL OPERATING COSTS (174.5) (147.4)

Income Statement


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Income Statement

€/mFinancial Year

2007/2008

Financial Year

2006/2007

TOTAL REVENUES 203.7 186.7

TOTAL OPERATING COSTS (174.5) (147.4)

Amortisation and write-downs of players' registration rights (32.3) (22.8)

Other amortisation, write-downs and provisions (6.0) (10.0)Other non recurring revenues and costs (1.3) -

OPERATING INCOME (10.4) 6.5

Financial income 5.1 2.8

Financial expenses (4.2) (5.1)

INCOME/(LOSS) BEFORE TAXES (9.5) 4.2

Current taxes (4.3) (3.8)

Deferred taxes (7.0) (1.3)

NET INCOME/(LOSS) (20.8) (0.9)

Balance sheet


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Balance sheet

ASSETS

€/m 30/06/08 30/06/07

Players' registration rights 73.6 53.1Other intangible assets 16.8 21.8

Land and buildings 18.9 19.3

Other tangible assets 3.1 3.5

Tangible assets in progress 2.9 1.9

Other non-current assets 60.3 48.6

TOTAL NON-CURRENT ASSETS 175.6 148.2

Current financial assets 0.6 7.0

Cash and cash equivalents 28.1 40.5Other current assets 56.5 51.6

TOTAL CURRENT ASSETS 85.2 99.1

ASSETS HELD FOR SALE - 12.2

TOTAL ASSETS 260.8 259.5

Balance sheet


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Balance sheet

EQUITY AND LIABILITIES

€/m 30/06/08 30/06/07

Share Capital 20.2 20.2

Reserves 96.0 97.0

Income/(loss) for the year (20.8) (0.9)

SHAREHOLDERS' EQUITY 95.4 116.3

Provisions for risks and charges 17.4 2.9

Bonds and other financial liabilities 15.9 17.2

Other non-current liabilities 55.6 49.9

TOTAL NON-CURRENT LIABILITIES 88.9 70.0

Bonds and other financial liabilities 1.6 1.5

Other current liabilities 74.9 71.7

TOTAL CURRENT LIABILITIES 76.5 73.2

TOTAL EQUITY AND LIABILITIES 260.8 259.5


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analyst presentation 09102008

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