Juventus Football Club. Analyst Presentation

Transcription

1 Juventus Football Club Analyst Presentation Milan, 2 March 2005

2 Disclaimer This document has been prepared by Juventus Football Club S.p.A. solely for use at the analyst presentation organised by Borsa Italiana S.p.A. and held on Wednesday, 2 March The information contained in this document has not been independently verified and no representation or warranty is expressed or implied, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Some parts of this presentation contain forward-looking statements which are estimates, subject to risks and uncertainties that could cause future results to differ materially. The Company shall not have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute an invitation to purchase any shares. Any decision to purchase shares should be made solely on the basis of the information contained in the official documents (Financial Statements, Six-Monthly Reports and Quarterly Reports) published by the Company.

3 Juventus attendees Antonio Giraudo Chief Executive Officer Michele Bergero Chief Financial Officer Marco Re Investor Relations Manager

4 Table of contents Juventus strategy and projects Partnership and multi-year contracts Key issues and results at 31 December 2004 Player Management Social commitment Q & A

5 Juventus strategy and projects

6 Juventus strategy and projects Maintain excellent sporting results MISSION Increase profitability and shareholders value OBJECTIVES Maintain a highly skilled team Focus on youth sector; effective player management Further spread the Juventus brand name to fully exploit it through sponsorship and partnership agreements Diversify our revenue stream aiming at further increasing and stabilizing our profitability STRATEGY Enlarge supporter base inside and outside Europe; further develop advertising and promotional area; strengthen commercial and licensing activities through the partnership with Nike Stadium and Mondo Juve Projects

7 Focus on youth sector Competitive and efficient youth sector to recruit new talents at contained costs: 21 teams (4 teams take part in national competitions, 5 in regional and 12 in local ones). The youth department takes part in more than 100 tournaments in Italy and abroad About 400 young players About 70 coaching and technical staff Many Juventus young players playing in other professional clubs The Primavera team won the Coppa Carnevale of Viareggio, the world youth football tournament, for the third year running Juventus launched a new project related to soccer schools in cooperation with Nike (Juventus Summer Camp, Juventus Academy and Juventus University)

8 A leading team by supporters In Italy The most popular football club in Italy with 13,775,000 fans (9,777,876 fans excluding under14) and a market share of 44% (27.2% excluding under14) Leader in many Italian regions and second or third in the remaining ones Supporters pretty evenly spread through all Italian regions The kids favourite team in Italy (children between 8 and 13 years old are 35% of the total) Worldwide About 25,000,000 European fans About 60,000,000 fans in China and Japan sources: Carat Sport/Eurisko 2003; AC Nielsen CRA 2003; Sport+Markt 2004; WPP/Millward Brown 2003

9 New Juventus logo The new logo of Juventus Football Club S.p.A. was introduced on 23 June 2004 This represents an important step in strengthening the Company s commercial image and has been designed within a project focused on repositioning the corporate brand from an international perspective and rationalising the numerous Juventus sub-brands in a consistent and recognisable brand style

10 Stadium Project On 15 July 2003 Juventus signed the agreement with the City of Turin for the ninety-nine year right to exploit the Delle Alpi Stadium and adjacent areas; renewable on expiry On 9 December 2003 Juventus requested the final authorisation for the technical plan to restructure the stadium from Turin municipality Juventus will restructure the Stadium, including 12,000 square meters of gross floor area for commercial activities related to sport business; and will build 30,000 square meters of gross floor area for commercial activities on surrounding areas We expect work will begin on June 2005

11 Mondo Juve Project Commercial Park Development of a commercial park comprised of leisure and retail facilities covering a total of 82,000 square meters of gross floor area: On 30 June 2003, Juventus sold 27.2% of the share capital of the subsidiary company Campi di Vinovo S.p.A. to Costruzioni Generali Gilardi S.p.A., a Turin construction company, at the price of 37.3 million, generating a capital gain of about 32.5 million On 22 July 2003, the Piedmont Regional Executive approved the variations to the master development plan of Vinovo and Nichelino On 23 September 2003, the Piedmont Regional Executive granted commercial authorisation Juventus is dealing with several potential partners to finalise the technical plan in the coming months

12 Mondo Juve Project Training Centre Development of a new training centre for all Juventus teams: On 9 January 2004, Vinovo Municipality finally approved the technical plan related to the Training Centre The ceremony of laying the foundation stone was held on 9 June The training centre will be built through a financial leasing operation. The overall investment (including land value) is about 20 million Juventus Football Club has stipulated a contract with Costruzioni Generali Gilardi S.p.A. that envisages completion of the work by the end of 2005 The training centre will enable better management of the entire sports sector and will allow economies of scale on overheads and running costs

13 Partnerships and multi-year contracts

14 The Partnership with Nike Duration: 12 years (*) starting from 1/7/03 Total minimum guaranteed: 187m Royalties: 10%-12%-14% on the net revenues deriving from the sale of Juventus-brand products 50% on the net profits deriving from the sale of Juventus-brand services and from retail operations Juventus Stores, Shops and Corners 4 stores: - Turin (2) - Palermo - Tokyo 4 corners: - Rome - Milan - Catania - Sorrento Fully owned by the Nike Group Juventus Merchandising S.r.l. Managing the entire licensing sector of Juventus and developing Juventus branded products and services First year sales over and above forecasts (*) Nike has the right to terminate the contract at the end of each three year period if the Nike Group were to find itself in seriously adverse business conditions

15 Multi-year contracts Satellite TV rights and Official Sponsorship current agreements Agreement: TV RIGHTS OFFICIAL SPONSOR Consideration: 91.6 million 12.9 million In the 2004/2005 football season, the SKY SPORT logo appears on the strip used by Juventus in the Italian Championship

16 Multi-year contracts Satellite TV rights agreement renewal Agreement: the television broadcasting of the home matches of the Italian Championship, for Italy (encrypted) and for the rest of the world (including free to air), of training sessions and the Trofeo Berlusconi, and other commercial rights Duration: 2005/2006 and 2006/2007 Consideration: 90 million of which: 94.5 million of which: - 45 m received as due m by 15/06/ m by 15/09/ m by 15/12/ m by 15/12/ m by 15/03/07 Performance Bonus: 5 million in the event the team finishes first or second in the Italian Championship

17 Multi-year contracts TV rights new agreements Agreements: the right of first negotiation and the right of first refusal for encrypted pay-tv rights to the Juventus home matches in the Italian Championship from 2007/2008 the transmission in Italy, on payment and with controlled access, of the home matches of Juventus in the Italian Championship via terrestrial digital, cable and ADSL Duration: /2005, 2005/2006 and 2006/2007 Consideration: 20 million already received in 2003/2004 financial year 12 million due in equal parts in the three financial years

18 Multi-year contracts Official Sponsorship agreement renewal (third year) Agreement: Duration: official Sponsor for U.E.F.A. competition, Italian Cup and Italian Super Cup 2004/2005 Minimum guaranteed: 5.5 million Performance Bonus: according to whether the First Team achieves given results in the U.E.F.A. competition, up to a maximum sum of 2.5 million

19 Key issues and results at 31 December 2004

20 Financial year 2003/2004 Total Results at 31 December 2004 Operating activities First Half 2004/2005 Player Total management First Half 2003/2004 in m Operating Player Total activities management Revenues (117.1) Personnel cost (63.8) - (63.8) (60.8) - (60.8) (54.0) Other operating costs (24.7) - (24.7) (21.0) (1.0) (22.0) 37.1 Ebitda (0.6) 6.9 (65.7) Amortisation and write downs (0.9) (33.6) (34.5) (2.3) (34.9) (37.2) 3.6 Net income on disposal of players registration rights (2.5) Net financial income/(loss) (0.2) (1.8) (1.6) (27.5) Profit before extraordinary items and taxes 5.7 (14.8) (9.1) 5.4 (33.3) (27.9) 7.6 Extraordinary income/(loss) Taxes (18.4) Net income/(loss) (0.8) 3.5 (9.8) (22.5) /m

21 Revenue breakdown 95.5 million First Half 2004/ % 8.9% 27.3% 61.1% TV RIGHTS AND UEFA CHAMPIONS LEAGUE SPONSORSHIP AND COMMERCIAL ACTIVITIES TICKET SALES OTHER REVENUES First Half 2003/ % 9.4% 28.8% 89.7 million 57.8%

22 Total revenue trend A 6.5% increase due to TV rights contracts /m H1 02/03 H1 03/04 H1 04/05 ticket sales sponsorship and commercial activities TV rights and U.E.F.A. Champions League other revenues

23 Revenue sources trend /m /m H1 02/03 H1 03/04 H1 04/05 ticket sales H1 02/03 H1 03/04 H1 04/05 TV and media rights U.E.F.A. Champions League /m /m H1 02/03 H1 03/04 H1 04/05 sponsorship and commercial activities H1 02/03 H1 03/04 H1 04/05 other revenues

24 Operating costs trend /m H1 02/03 H1 03/04 H1 04/05 wages temporary transfer costs and options other operating costs

25 Operating costs breakdown /m H1 02/03 H1 03/04 H1 04/05 wages /m /m H1 02/03 H1 03/04 H1 04/05 H1 02/03 H1 03/04 H1 04/05 temporary transfer costs and options other operating costs

26 Results at 31 December 2004 Financial highlights in m 31/12/04 30/09/04 Change absolute 30/06/04 Change absolute Net fixed assets Net working capital (130.3) (164.1) 33.8 (163.2) 32.9 Provisions and funds (21.1) (23.6) 2.5 (26.3) 5.2 Net capital employed Shareholders equity (9.7) Net financial position (*) 20.4 (6.4) 26.8 (53.1) 73.5 Net equity and net financial position /m (*) Negative items show a liquidity position

27 Statement of cash flow Financial Year 2003/2004 First Half 2004/2005 Net financial position at the beginning of the period Cash flow Variation in net working capital 20.4 (32.9) Increase/(decrease) in funds (12.0) (5.2) Cash flow provided/(absorbed) by operating activities 55.1 (13.5) Cash flow used for investment (71.0) (60.1) Dividends paid - - Other changes in shareholders equity (0.2) - Net financial position at the end of the period 53.1 (20.5) /m

28 Player Management

29 2004/2005 Transfer Campaign Main operations related to First Team players Purchases: Emerson, Ibrahimovic, Appiah, Cannavaro, Carini, Brighi and Chiellini Zebina, Kapo and Mutu (free transfer) Disposals: Di Vaio, Brighi and Carini Maresca, Miccoli and Chiellini (player sharing) Financial and economic effects of the 2004/2005 Transfer Campaign P&L IMPACT CASH IN/(OUT) TIMING 04/05 05/06 06/07 07/08 08/09 Net income 16.9 Purchases (102.5) (51.3) (22.0) (21.0) (4.0) (4.2) Disposals Player sharing and options 1.6 (36.1) (7.6) (17.4) 0.4 (4.6) (5.2) (8.1) (2.8) (1.8) - (4.2) - TOTAL 18.5 TOTAL (43.7) (17.0) (9.8) (10.9) (1.8) (4.2) Player temporary transfer (Iuliano, Legrottaglie and Tudor) Purchases Disposals 0.5 /m

30 Social commitment

31 Our social commitment continues Special initiatives Crescere insieme al Sant Anna an initiative to raise funds to finance the renovation of a department of the Sant Anna Hospital in Turin. The aim of the project is to improve the quality of children s stay at hospital Juventus backed a special initiative with Don Bosco Mission to finance ( 300,000) the construction of a Residential Centre for orphan children in Thailand Ordinary initiatives Fatti e Progetti per i Giovani alongside the Don Bosco Mission The creation of a degree course in Sports Management with the University of Turin. Last year 10 scholarships in memory of Giovanni Alberto Agnelli were awarded to students Aid and support over many years for the Fondazione Piemontese per la Ricerca sul cancro

32 Q & A