JUVENTUS FOOTBALL CLUB

Transcription

1 JUVENTUS FOOTBALL CLUB Quarterly Report. at 31 December 2001

2 Borsa Italiana S.p.A. share code: JUVE ISIN code: IT Bloomberg ticker: JUVE IM Reuters ticker: JUVE.MI This document contains a true translation in English of the report in Italian Relazione trimestrale al 31 dicembre However, for information about Juventus Football Club S.p.A. reference should be made exclusively to the original report in Italian Relazione trimestrale al 31 dicembre The Italian version of the Relazione trimestrale al 31 dicembre 2001 shall prevail upon the English version. This report is available on the Internet at and in the Investor Relations section.

3 JUVENTUS FOOTBALL CLUB S.p.A. REGISTERED OFFICE Corso Galileo Ferraris 32, Torino SHARE CAPITAL Euro 12,093,200 REGISTERED IN THE TURIN COMPANIES REGISTER under no REA no Quarterly Report at 31 December

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5 OFFICERS BOARD OF DIRECTORS Chairman Vittorio Caissotti di Chiusano** Vice Chairman Roberto Bettega Chief Executive Officer Antonio Giraudo Director and General Manager Luciano Moggi Director Giancarlo Cerutti* ** Director Virgilio Marrone** Director Claudio Saracco* ** AUDIT COMMITTEE Claudio Saracco* ** Vittorio Caissotti di Chiusano** Virgilio Marrone** REMUNERATION AND APPOINTMENTS COMMITTEE BOARD OF STATUTORY AUDITORS Chairman Auditor Auditor Deputy Auditor Deputy Auditor ** Independent directors ** Non executive directors Vittorio Caissotti di Chiusano** Giancarlo Cerutti* ** Virgilio Marrone** Giorgio Giorgi Alberto Ferrero Carlo Re Paolo Piccatti Gianluca Ferrero The mandate of the Board of Directors and the Board of Statutory Auditors will expire with the Shareholders Meeting to approve the financial statements as of 30 June POWERS OF COMPANY OFFICERS The Chairman, Vice Chairman and Chief Executive Officer under company by-laws (art. 21) have the power to represent the Company, in law and on behalf of the company, with the authority to undertake all measures compliant with company goals, save legal limitations, as specified in Art of the Italian Civil Code. The Board of Directors voted on 15 December 2000 to confer specific management powers on the Vice Chairman and the Chief Executive Officer. The Board of Directors voted on 4 September 2001 to confer on the General Manager specific responsibility for sport. INDEPENDENT AUDITORS The Shareholders' Meeting of 4 September 2001 appointed PricewaterhouseCoopers S.p.A. as independent auditors of the financial statements for the three-year period of 2001/2002, 2002/2003 and 2003/2004 and for limited audits of the six-monthly report at 31 December 2001, 2002 and Quarterly Report at 31 December

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7 CONTENTS RECLASSIFIED BALANCE SHEET pag. 7 RECLASSIFIED INCOME STATEMENT pag. 8 QUARTERLY TREND OF THE RECLASSIFIED INCOME STATEMENT pag. 10 SIGNIFICANT EVENTS IN THE SECOND QUARTER 2001/2002 pag. 12 REVIEW OF RESULTS pag. 16 SIGNIFICANT EVENTS SINCE 31 DECEMBER 2001 pag. 18 FUTURE OUTLOOK pag. 20 ACCOUNTING PRINCIPLES pag. 20 BALANCE SHEET pag. 22 INCOME STATEMENT pag. 26 STATEMENT OF CASH FLOW pag. 28 Quarterly Report at 31 December

8 The tables in the Balance Sheet and Income Statement given below have been reclassified following financial analysis criteria in order to make them easier to read and to facilitate analysis of the Company's economic, asset and financial data. In particular, the Income Statement has been drawn up following a scheme that distinguishes "operations excluding players' management" from "players' management". The purpose of this scheme is to represent the profits and losses deriving from the disposal of players' registration rights and from the termination of player sharing contracts ex art. 102 bis N.O.I.F., the costs and revenues deriving respectively from the acquisitions and temporary disposals of players' registration rights as well as the costs related to the amortisation of these players' registration rights. In addition, the contingent assets and liabilities, fees, commissions and charges related to the stock market listing have been reclassified as extraordinary items in the Income Statement. The reclassification criteria chosen make it possible, in any case, to compare each item with those envisaged by the regulations in force for the annual accounts. 6 Juventus Football Club Quarterly Report at 31 December 2001

9 RECLASSIFIED BALANCE SHEET euro in thousands 30/06/01 31/12/01 30/09/01 31/12/00 220,941 - Players registration rights 362, , , ,986 (104,386) - Accumulated amortisation (105,920) (88,741) - 17,179 (86,354) - 19, ,555 Net players registration rights 257, ,192-17, , , Other net intangible fixed assets ,518 Net tangible fixed assets 9,049 8, ,732 1,317 16,047 Net investments 21,836 21, ,906 6, NET FIXED ASSETS 288, ,394-16, , ,830 42,879 - Net receivables from football clubs 127, , ,047 83,391 (57,992) - Payables to football clubs (157,996) (174,128) 16,132 (70,028) - 87,968 Net credit/(debit) position (15,113) to other football clubs (30,558) (46,659) 16,101 (25,981) - 4,577 23,694 Other operating receivables 34,015 42,386-8,371 41,700-7,685 (179,514) Other operating payables (185,620) (248,626) 63,006 (167,336) - 18,284 (170,933) NET WORKING CAPITAL (182,163) (252,899) 70,736 (151,617) - 30,546 SEVERANCE INDEMNITY (5,826) AND OTHER FUNDS (45,939) (11,196) - 34,743 (8,296) - 37,643 (35,095) NET INVESTED CAPITAL 60,540 41,299 19,241 (1,101) 61,641 32,460 SHAREHOLDERS EQUITY 130,940 88,018 42,922 37,523 93,417 (67,555) NET FINANCIAL POSITION (70,400) (46,719) - 23,681 (38,624) - 31,776 TOTAL NET SHAREHOLDERS EQUITY (35,095) AND NET FINANCIAL POSITION 60,540 41,299 19,241 (1,101) 61,641 MEMORANDUM ACCOUNTS : 40 Third-party assets held by the Company Company assets held by third parties 1,248-1,248-1,248 41,344 Guarantees given 130, ,429-81,637 48,792 17,964 Guarantees received 68,372 56,854 11,518 62,464 5,908 85,791 Forward agreements 7,529 7,529-26,419-18, ,478 TOTAL MEMORANDUM ACCOUNTS 207, ,852 12, ,658 36,960 The Quarterly Report at 31 December 2001 is unaudited Quarterly Report at 31 December

10 RECLASSIFIED INCOME STATEMENT 2000/2001 Operations excluding Players Total players management management 12,835-12,835 Ticket sales Television, radio and telephone 96,189-96,189 rights and Champions League revenues 45,795-45,795 Sponsorship, commercial and other related activities 14,278 2,003 16,281 Other revenues 169,097 2, ,100 TOTAL REVENUES (2,409) - (2,409) Materials, goods and accessories (25,945) - (25,945) Services (2,517) - (2,517) Rents, leases and related costs (100,455) - (100,455) Personnel costs (15,295) - (15,295) Other operating expenses (146,621) - (146,621) TOTAL OPERATING COSTS 22,476 2,003 24,479 GROSS OPERATING MARGIN (674) (37,028) (37,702) Depreciation and amortisation (6,245) - (6,245) Previsions and write-offs 2,655 7,914 10,569 Net financial income/(loss) (519) - (519) Adjustment to financial assets Income/(Loss) from players - 18,438 18,438 registration rights 17,693 (8,673) 9,020 INCOME/(LOSS) BEFORE EXTRAORDINARY INCOME AND TAXES 1,735-1,735 Extraordinary income/(loss) 19,428 (8,673) 10,755 EARNINGS BEFORE TAXES (4,980) Total taxes for the period 5,775 NET INCOME FOR THE PERIOD 8 Juventus Football Club Quarterly Report at 31 December 2001

11 euro in thousands FIRST HALF FIRST HALF 2001/ /2001 Operations excluding Players Total Operations excluding Players Total players management management players management management 7,798-7,798 5,278-5,278 50,543-50,543 38,776-38,776 20,273-20,273 22,912-22,912 6, ,222 9, ,962 84, ,836 76, ,928 (1,103) - (1,103) (1,296) - (1,296) (13,968) - (13,968) (12,606) - (12,606) (1,445) (117) (1,562) (1,388) - (1,388) (61,985) - (61,985) (45,154) - (45,154) (8,366) - (8,366) (5,168) - (5,168) (86,867) (117) (86,984) (65,612) - (65,612) (2,176) 28 (2,148) 10, ,316 (456) (34,350) (34,806) (379) (18,700) (19,079) (7,259) - (7,259) (1,510) - (1,510) 634 (2,153) (1,519) 1,696 7,915 9,611 (165) - (165) , ,863-17,905 17,905 (9,422) 87,388 77,966 10,546 7,697 18,243 (5,368) - (5,368) (14,790) 87,388 72,598 10,751 7,697 18,448 (35,348) (7,886) The Quarterly Report at 31 December 2001 is unaudited 37,250 10,562 Quarterly Report at 31 December

12 QUARTERLY TREND OF THE RECLASSIFIED INCOME STATEMENT 2 nd QUARTER 2001/2002 Operations excluding Players Total players management management Ticket sales 4,575-4,575 Television, radio and telephone rights and Champions League revenues 32,832-32,832 Sponsorship, commercial and other related activities 10,228-10,228 Other revenues 1, ,463 TOTAL REVENUES 49, ,098 Materials, goods and accessories (681) - (681) Services (7,222) - (7,222) Rents, leases and related costs (688) (66) (754) Personnel costs (31,404) - (31,404) Other operating costs (5,252) - (5,252) TOTAL OPERATING COSTS (45,247) (66) (45,313) GROSS OPERATING MARGIN 3, ,785 Depreciation and amortisation (229) (17,179) (17,408) Previsions and write-offs (1,673) - (1,673) Net financial income/(loss) Adjustment to financial assets Income/(Loss) from players registration rights INCOME/(LOSS) BEFORE EXTRAORDINARY INCOME AND TAXES 2,212 (17,168) (14,956) Extraordinary income/(loss) (5,167) - (5,167) EARNINGS BEFORE TAXES (2,955) (17,168) (20,123) Total taxes for the period 547 NET INCOME FOR THE PERIOD (19,576) 10 Juventus Football Club Quarterly Report at 31 December 2001

13 euro in thousands 1 st QUARTER 2001/2002 Operations excluding Players Total players managem. management 3,223-3,223 2 nd QUARTER 1 st QUARTER 2000/ /2001 Operations excluding Players Total Operations excluding Players Total players managem. management players managem. management 3,390-3,390 1,888-1,888 17,711-17,711 10,045-10,045 4, ,760 35, ,739 (422) - (422) (6,746) - (6,746) (757) (51) (808) (30,581) - (30,581) (3,115) - (3,115) (41,621) (51) (41,672) (5,951) 18 (5,933) (226) (17,171) (17,397) (5,586) - (5,586) 468 (2,154) (1,686) (338) - (338) - 123, ,863 (11,633) 104,556 92,923 (202) - (202) (11,835) 104,556 92,721 (35,895) 56,826 The Quarterly Report at 31 December 2001 is unaudited 33,148-33,148 5,629-5,629 11,048-11,048 11,864-11,864 8, ,580 1, ,381 55, ,166 20, ,762 (783) - (783) (512) - (512) (7,240) - (7,240) (5,366) - (5,366) (863) - (863) (526) - (526) (22,767) - (22,767) (22,387) - (22,387) (4,490) - (4,490) (678) - (678) (36,143) - (36,143) (29,469) - (29,469) 19, ,023 (8,951) 244 (8,707) (244) (9,057) (9,301) (134) (9,643) (9,777) (76) - (76) (1,434) - (1,434) ,914 8, ,647 17,647 20,073 (8,466) 11,607 (9,525) 16,162 6, ,264 (8,466) 11,798 (9,511) 16,162 6,651 (5,642) (2,245) 6,156 4,406 Quarterly Report at 31 December

14 SIGNIFICANT EVENTS IN THE SECOND QUARTER 2001/2002 SEASON TICKETS 35,703 season tickets have been sold for the 2001/2002 season, compared to 35,446 for the 2000/2001 season. Total net revenue, including additional services, comes to about 6.9 million euro, an increase compared to the approximately 6.8 million euro of the previous season. No. SEASON TICKETS 35,446 35,703 34, / / /2002 NIKE CONTRACT In late November, Juventus and Nike European Operations Netherlands B.V. ("Nike") reached an agreement for a duration of twelve years that, with effect from 1 July 2003, envisages: Technical sponsorship by Nike; The exclusive right of Nike to use and sub-license to third parties the Juventus brand and other intellectual property rights to produce, publicise and sell, worldwide and through all media, products and services (including the replica version of the match kit used by the First Team as well as sports clothing and accessories). On the basis of this contract, Nike will manage Juventus' entire licensing activities and will develop Juventus-branded products and services, creating a network of traditional retailing, on-line and mail-order operations. 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. The minimum total sum guaranteed by the contract for the twelve years of the contract is about million euro. To this sum must be added the annual supplies of technical material from Nike to Juventus for a wholesale value in the first contractual year of about 2.3 million euro (the value of supplies is forecast to rise by 5% every three years). Furthermore, Nike will pay Juventus the following annual royalties on licensing and retail 12 Juventus Football Club Quarterly Report at 31 December 2001

15 operations: 10% on net revenues from sales of Juventus branded products exceeding 22.7 million euro (a percentage which rises to 12% and then 14% when sales of respectively 28.4 and 34.1 million euro have been reached); and 50% of net profits deriving from the sale of Juventus branded services and from retail operations. Finally, bonuses are envisaged in favour of Juventus when the First Team achieves certain pre-set national and international sporting results. Until 30 June 2003, and thus for the entire current season and the next season (2002/2003), Juventus will continue collaboration with Lotto as technical sponsor and trademark licensee. AIM Management SA of Lucerne has demanded the payment of a fee in relation to the Nike contract. The Company has rejected this demand and does not hold that any accrual of funds is necessary. STOCK MARKET LISTING The Italian Prospectus was deposited with CONSOB on 5 December 2001 following the approval by CONSOB on 4 December 2001, published in note no The Public Offering of sale and subscription was held from 10 to 14 December 2001 for the general public in the framework of the Global Offering of Juventus Football Club S.p.A. shares. Against a Global Offering of 38,700,000 shares, requests were received for 51,484,319 shares from 41,112 applicants, of which 101 institutional investors. On this basis, 44,505,000 shares were assigned, of which 16,930,210 shares from the increase in capital of Juventus Football Club S.p.A., 21,769,790 shares offered for sale by selling shareholders and 5,805,000 shares from the over-allotment option. Shares were therefore assigned as follows: 26,458,500 shares in the Public Offering and 18,046,500 in the Institutional Offering. On 18 December 2001, Borsa Italiana S.p.A. approved with notification no the admission of Juventus Football Club shares to the stock market starting on 20 December 2001 on the Mercato Telematico Azionario (MTA) - "STAR" segment. The share Offer price was 3.7 euro. Following this operation, the capital stock of Juventus Football Club S.p.A. is 12,093,200 euro, divided into 120,932,000 shares of the nominal value of 0.1 euro. The increase in capital generated total proceeds for the Company of about 62.6 million euro, gross of commissions and additional charges. Quarterly Report at 31 December

16 On the basis of the latest CONSOB declarations available, the shareholding structure of Juventus Football Club S.p.A. is the following: 5.3% 3.6% 62.7% 28.4% IFI S.p.A. LAFICO S.a.l. Antonio Giraudo Free float Juventus Football Club share price trend and equity turnover euro mln Equity turnover Official Price 20/12 21/12 27/12 28/12 2/1 3/1 4/1 7/1 8/1 9/1 10/1 11/1 14/1 15/1 16/1 17/1 18/1 21/1 22/1 23/1 24/1 25/1 28/1 29/1 30/1 31/1 1/2 4/2 5/2 6/2 7/2 8/2 euro SPORTS ACTIVITIES MANAGEMENT On the field, the First Team qualified for the second round of the U.E.F.A. Champions League. In addition, it should be noted that during the Serie A Championship match Bologna-Juventus on 20 October 2001 the player Marcelo Salas was injured. This will probably stop the player from being able to take part in First Team activities until May The Company has informed the insurance companies Siat S.p.A., Toro Assicurazioni S.p.A. and Lloyd's of this event in order to obtain the insurance payment related to the footballer's injury. 14 Juventus Football Club Quarterly Report at 31 December 2001

17 In November, the player Marcelo Zalayeta rejoined the First Team. MISCELLANEOUS As regards relations with Sportal Ltd., with whom during 2001 the Company had raised two objections concerning respectively the management of the official site and the contract as Official Sponsor for the competitions organised by U.E.F.A., it should be remembered that on 30 August 2001 Sportal Ltd. entered insolvency proceedings at the High Court of London and that on 28 November 2001 the contract concerning the management of the official site was terminated. As it did for the Financial Statements at 30 June 2001 and the Quarterly Report at 30 September 2001, the Company has fully written-off its credits towards Sportal Ltd. In reference to the proceedings regarding Andreas Isaksson, on 31 October 2001 the "Players' Status Committee" of F.I.F.A. ordered the Company to pay about 0.8 million euro alleging that Juventus breached the contract for the transfer of the player's registration rights from Trelleborgs FF to Juventus. The Company has appealed against this decision. As far as the penal action taken by the Procura della Repubblica di Torino against the player Edgar Davids is concerned, there are no new elements in the Company's possession. Finally, it should be noted that Resolution no. 213/E of 19 December 2001 of the Agenzia delle Entrate specified that net income from disposal of players' registrations rights are taxable for IRAP purposes. The Ministry's position is in clear contrast with that of the Federazione Italiana Giuoco Calcio, which concluded that the income from disposal of players' registration rights are not taxable, and with the specific order of the day of 19 December 2001 approved by the Chamber of Deputies urging the Government to take all the steps necessary to ensure that the income from disposal of players' registration rights are not subject to IRAP. Notwithstanding the clear contradiction in the approach of the documents cited above, the Company believes that the amount of the provisions is already adequate, with allocations made in the relevant years (1998/1999, 1999/2000 and 2000/2001 seasons) for a sum equal to the IRAP due and the 25% minimum penalty due for a possible facilitated resolution, as well as the IRAP due for the first six months of 2001/2002. Quarterly Report at 31 December

18 REVIEW OF RESULTS FIRST SIX MONTHS OF 2001/2002 The economic result for the first six months of 2001/2002 financial period was, as is usual, influenced by the specific distribution of the economic elements over the whole financial year and cannot, therefore, be a basis for forecasts referring to the entire period. In particular, it should be noted that in the period in question the income from disposal of players' registration rights related to the July and August 2001 Transfer Campaign have been recorded. The first six months of 2001/2002 closed with a net profit of 37.3 million euro, against the 10.6 million euro of the corresponding period of the previous year. On the one hand, this result benefited from the significant contribution from players' management (which was positive for 87.4 million euro, a significant increase on the positive balance of 7.7 million euro of the first six months of 2000/2001), on the other, it shows the negative impact deriving from the allocation of the extraordinary costs of listing (for a total of about 5.9 million euro) and the non assessment, on the loss of the second quarter of the 2001/2002 financial year, of the pre-paid taxes in that at the current state of events there is not sufficient information for registration. Total revenues for the first six months of 2001/2002 came to 84.8 million euro, an increase of 10.3% compared to 76.9 million euro of the corresponding period of the previous financial year thanks to the increase in the income from matches (from 5.3 million euro of the first six months of 2000/2001 to 7.8 million euro) and, above all, to the higher income from television, radio and telephone rights and revenues from the Champions League (which were 50.5 million euro, against 38.3 million euro of the first six months of 2000/2001), more than compensating the lower revenue from sponsorship and commercial operations (20.3 million euro, against 23.4 million euro of the first six months of 2000/2001) and the fall in other revenue (6.2 million euro, against about 10 million euro of the corresponding period of the previous year). Match and broadcasting revenues and income from the Champions League also benefited from a higher number of matches being played compared to the first six months of 2000/2001. The operating costs of the first six months of 2001/2002 came to a total of about 87 million euro, an increase compared to 65.6 million euro of the corresponding period, essentially because of the increase in expenditure on personnel, which totalled 62 million euro against 45.2 million euro of the first half of 2000/2001. This rise was due to the strengthening of the First Team which in the coming seasons will again enable the Company to maintain a level of technical excellence and the continuation of a management policy of bringing in young players. The Gross Operating Margin for the six months showed a loss of about 2.1 million euro, against a profit of 11.3 million euro for the first six months of 2000/ Juventus Football Club Quarterly Report at 31 December 2001

19 The income before extraordinary income and taxes for the first six months of 2001/2002 was about 78 million euro, a significant increase compared to 18.2 million euro of the corresponding period of the previous year. In the first six months of 2001/2002 the negative extraordinary income for 5,4 million euro following the full registration of stock market listing costs (for a total of 5.9 million euro), was partly compensated for by lower extraordinary revenue, including the capital gains deriving from the Ciaoholding N.V. sale of the 339,560 Ciaoweb S.p.A. shares held. The Net Income for the six months was positive for 37.3 million euro, against 10.6 million euro of the first six months of 2000/2001. As regards financial aspects, it should be noted that: Shareholders' equity at 31 December 2001 was million euro, an increase compared to 32.5 million euro of 30 June 2001 thanks to the increase in capital achieved through the stock market listing (a total of about 62.6 million euro) and the net income for the six months, net of the dividends distributed; The positive net Financial Position at the end of December 2001 was 70.4 million euro, an increase compared to the positive result of 67.6 million euro at the end of June 2001 thanks to the proceeds deriving from the capital increase, the cash flow generated by operating activities ( million euro), partly offset by the cash flow absorbed by investment activity equal to million euro and other minor changes. THE SECOND QUARTER OF 2001/2002 The quarterly economic results of the Company are influenced by the significant seasonal nature typical of the business. In particular, it should be noted that the main revenue and cost items do not follow the same trend during the financial year. The second quarter of 2001/2002 closed with a negative result of 19.6 million euro, against a profit of 6.2 million euro in the corresponding quarter of the previous year. The result for the quarter showed the negative impact of allocation of the extraordinary costs of listing and by the non assessment of pre-paid taxes. Total Revenues for the second quarter of 2001/2002 were 49.1 million euro, a decrease compared to 56.2 million euro of the corresponding quarter of the previous year, essentially following the drop in the item Other Revenues (about 1.5 million euro, against 8.6 million euro of the second quarter of 2000/2001), which had benefited in the second quarter of 2000/2001 from the insurance payment of about 7.7 million euro following the failure of the First Team to qualify for the second round of the U.E.F.A. Champions League 2000/2001. Quarterly Report at 31 December

20 The Operating Costs of the second quarter of the 2001/2002 financial year amounted to a total of about 45.3 million euro, an increase compared to 36.1 million euro of the corresponding period of the previous year essentially because of the rise in personnel costs which increased to 31.4 million euro, against 22.8 million euro of the second quarter of 2000/2001. The positive Gross Operating Margin for the quarter was 3.8 million euro, lower compared to the positive result of about 20 million euro of the second quarter of 2000/2001 but an improvement compared to the negative result of 5.9 million euro of the first quarter of 2001/2002. The income before extraordinary income and taxes for the quarter was negative for about 15 million euro, against the profit of 11.6 million euro of the second quarter of 2000/2001. The extraordinary income of the quarter, as recalled earlier, felt the effect of the registration of the costs of listing and showed a negative result of 5.2 million euro, against a positive result of about 0.2 million euro for the second quarter of 2000/2001. The negative quarterly Net Income, which did not benefit from the registration of pre-paid taxes, was 19.6 million euro, against the profit of 6.2 million euro of the corresponding period of the previous financial year. SIGNIFICANT EVENTS SINCE 31 DECEMBER 2001 JANUARY 2002 TRANSFER CAMPAIGN On 28 January 2002 an agreement was reached for the free temporary transfer of the registration rights of the player Athirson Mazzolli e Oliveira to Clube de Regatas do Flamengo. The transfer was made effective as of 1 February 2002 and will expire on 30 June This agreement made it possible to resolve the dispute with the Brazilian club that was pending with the relevant F.I.F.A. bodies without cost to the Company. In addition, Juventus Football Club S.p.A. has made the definitive acquisition from Perugia A.C. S.p.A. of the player Davide Baiocco for about 7.2 million euro. At the same time, agreement was reached for the definitive transfer to Perugia A.C. of the player Fabian O'Neill for about 2.6 million euro. In the third quarter of this financial year, this transfer will generate a loss from disposal of players' registration rights of about 3.8 million euro, gross of any additional expenses, and will, at the same time, allow savings in terms of amortisation for about 1.3 million euro in the course of the second six months of the current financial year and of about 2.5 million euro in 2002/2003. Davide Baiocco signed a 5 season contract with Juventus Football Club expiring on 30 June At the same time, Juventus Football Club loaned to Perugia A.C. the player Davide Baiocco until 30 June Juventus Football Club Quarterly Report at 31 December 2001

21 Finally, Juventus Football Club terminated with mutual consent the contract with the player Juan Eduardo Esnaider which would have expired on 30 June 2003 and sold the player Pierre Giorgio Regonesi. These operations, gross of any additional costs, will generate an overall loss of about 3.5 million euro and will, at the same time, allow amortisation savings of about 1.2 million euro in the course of the second six months of the current financial year and of about 2.3 million euro in 2002/2003. SPORTING RESULTS As far as match results are concerned, the First Team has reached the final of the TIM Italian Cup. STADIO DELLE ALPI As indicated in the Financial Statements at 30 June 2001, the Executive of the Municipality of Torino voted on 31 July 2001 to assign the temporary use of the Stadio Delle Alpi until 31 December 2001 to Juventus Football Club S.p.A. and Torino Calcio S.p.A. The sum to be paid by each of the two sports companies was set at about 0.5 million euro. The contract also specifies that the companies pay the City of Torino a sum equal to 25% of the cost of the maintenance work upgrading to safety standards agreed by the parties. As agreed with the City of Torino, given that the negotiations for the acquisition of the Stadio were not completed by 31 December 2001, the contract will remain in force until 30 June 2002 and each of the two clubs will be held to pay a sum equal to the one set for the period up to 31 December 2001 in addition to 25% of the value of any work done in the second six months of the validity of the contract. Negotiations continue between the Company and the City of Torino for the acquisition of the Stadio Delle Alpi. CAMPI DI VINOVO S.p.A. As specified in the contract stipulated on 19 March 2001 for the acquisition by Juventus Football Club S.p.A. of 96.6% of the share capital (99.6% of the outstanding capital) of Campi di Vinovo S.p.A., the second instalment of about 2.6 million euro was paid on 5 January 2002; this sum is to be added to the about 6.4 million euro paid in the course of The outstanding balance of about 8.4 million euro will be paid by 1 July 2002, the deadline by which, under the responsibility of and at the expense of the selling shareholders, the necessary measures must be taken so that the structures, facilities and areas owned by Campi di Vinovo S.p.A., be completely freed of any liens, encumbrances, easements and contracts of an obligatory nature. In the last quarter of 2001, the Municipalities of Vinovo and Nichelino approved new zoning and redevelopment plans required to realise the Mondo Juve project, which envisages the creation of the Juventus' training centre and related activities in the fields of entertainment, leisure and commerce, enhanced by the constant presence of the First Team and the Juventus brand. Quarterly Report at 31 December

22 The projects have been presented to the Piedmont Region for examination and decisions on matters within its jurisdiction. MISCELLANEOUS As far as regards the investigation by the judicial authorities into the possible improper use of drugs by Juventus players, the first hearing of the trial against the Chief Executive Officer and the company physician was held before the monocratic court on 31 January The next hearing has been set for 4 March FUTURE OUTLOOK As is usual, the performance in the current football season will influence the result of the entire 2001/2002 financial year. ACCOUNTING PRINCIPLES The quarterly report at 31 December 2001, concerning the first quarter of the 2001/2002 financial year, has been drawn up in observance of the criteria of evaluation, and the accounting principles adopted are consistent with those used for the financial statements for the year closed at 30 June 2001, to which explicit reference is made, except for registration of income and loss from disposal of players' registration rights. Income and loss from disposal of players' registration rights are now calculated as the difference between the price agreed and any residual accounting value inclusive of any additional costs at the end of the quarter preceding that of the disposal. The quarterly results are shown net of applicable taxes, calculated for each tax, applying the average effective rate expected for the entire year to the pre-tax result for the period, adjusted if necessary to take into account the main rises or falls in taxation levels, as recommended by the new accounting principle no. 30. Pre-paid taxes are registered only if there is reasonable certainty that they can be recovered, in observance of the principles of prudence and continuity of evaluation. The quarterly report at 30 September 2000, the Income Statement and Balance Sheet of 2000/2001 and the quarterly report at 30 September 2001 have been reclassified to facilitate the comparison of figures. This quarterly report has not been drawn up as a consolidated report as the only company controlled as specified in Art of the Italian Civil Code by Juventus Football Club S.p.A. (Campi di Vinovo S.p.A.) is excluded from consolidation through the application of clause 2, point a) of Art. 28 of legislative decree 127/91. The consolidation of Campi di Vinovo S.p.A. 20 Juventus Football Club Quarterly Report at 31 December 2001

23 is at the moment effectively irrelevant for the purposes of true and fair representation of the financial and economic results of the controlling company Juventus Football Club S.p.A. The quarterly report at 31 December 2001 is unaudited. Torino, 13 February 2002 For the Board of Directors The Chairman Vittorio Caissotti di Chiusano Quarterly Report at 31 December

24 BALANCE SHEET ASSETS 30/06/ /12/ /09/ /12/ /12/ /12/ /09/ /12/2000 B) FIXED ASSETS Euro I) INTANGIBLE ASSETS: - 1) Start-up and organization costs ,373-1,373 3) Royalties for industrial patents and use 457,982 of intellectual property 661, ,899-54, , ,903 85,596 6) Fixed assets in progress and advance payments 53,097 23,581 29,516-53, ,555,264 8) Costs of players registrations 257,044, ,192,423-17,148, ,623, ,421,160-9) Other fixed assets ,506-1, ,098,842 Total 257,758, ,931,903-17,173, ,174, ,584,281 II) TANGIBLE FIXED ASSETS: 6,933,146 1) Land and buildings 6,827,565 6,880,356-52,791 6,639, , ,882 2) Plants and machinery 260, ,384-29, ,519-72, ,576 3) Industrial and commercial equipment 407, ,095-19, ,155-33, ,255 4) Other assets 442, ,206-15, , , ,149 5) Fixed assets under construction and advance payments 1,111, , ,382-1,111,242 8,518,008 Total 9,048,925 8,623, ,024 7,732,402 1,316,523 III) INVESTMENTS, with separate indication, for each item, of the amounts collectable within one year: 1) Shareholdings: - a) controlled companies 17,380,866 17,380, ,380,866 14,376,871 c) players sharing costs ex Art. 102 bis N.O.I.F. 4,419,582 4,419,582-14,376,871-9,957, ,147 d) in other companies 2,587 2, , ,000 2) Receivables: 1,328,052 d) from others 32,601 35,311-2,710 38,948-6,347 16,047,070 Total 21,835,636 21,838,346-2,710 15,108,406 6,727, ,663,920 TOTAL FIXED ASSETS (B) 288,643, ,394,150-16,750, ,015, ,628, Juventus Football Club Quarterly Report at 31 December 2001

25 BALANCE SHEET ASSETS 30/06/ /12/ /09/ /12/ /12/ /12/ /09/ /12/2000 C) CURRENT ASSETS Euro II) RECEIVABLES, with separate indication, for each item, of the amounts collectable after one year: 53,967,348 1) Trade receivables 145,969, ,688,574 3,280,524 55,626,893 90,342, ) Due from holding company 1, , ,337 10,503,586 5) Due from others 11,129,130 9,942,677 1,186,453 19,590,645-8,461,515 64,471,678 Total 157,099, ,631,716 4,467,994 75,217,683 81,882,027 III) CURRENT FINANCIAL ASSETS 2,636,919 6) Other securities 2,472,007 2,299, ,860 38,200,947-35,728,940 2,636,919 Total 2,472,007 2,299, ,860 38,200,947-35,728,940 IV) CASH AT BANK AND IN HAND: 64,908,219 1) Bank and post-office deposits 67,903,751 44,409,715 23,494, ,798 67,483,953 9,453 3) Cash at bank and in hand 23,062 9,933 13,129 2,288 20,774 64,917,672 Total 67,926,813 44,419,648 23,507, ,086 67,504, ,026,269 TOTAL CURRENT ASSETS (C) 227,498, ,350,511 28,148, ,840, ,657,814 2,101,569 D) ACCRUED INCOME AND PREPAID EXPENSES 4,352,817 17,223,798-12,870,981 10,327,077-5,974, ,791,758 TOTAL ASSETS 520,494, ,968,459-1,473, ,182, ,311,588 Quarterly Report at 31 December

26 BALANCE SHEET LIABILITIES 30/06/ /12/ /09/ /12/ /12/ /12/ /09/ /12/2000 A) SHAREHOLDERS EQUITY 10,400,179 I) SHARE CAPITAL 12,093,200 10,400,179 1,693,021 10,742,489 1,350,711 - II) ADDITIONAL PAID-IN-CAPITAL 60,948,756-60,948,756-60,948,756 1,347,381 IV) LEGAL RESERVE 1,636,112 1,636,112-1,005, ,041 - VII) OTHER RESERVES 288, , , ,553 13,178 14,937,711 VIII) RETAINED PROFITS 18,722,924 18,722,924-14,937,711 3,785,213 5,774,627 IX) NET INCOME 37,249,697 56,825,665-19,575,968 10,562,094 26,687,603 Euro 32,459,898 TOTAL SHAREHOLDERS EQUITY (A) 130,939,420 88,017,977 42,921,443 37,522,918 93,416,502 B) PROVISIONS FOR LIABILITIES AND EXPENSES 300,000 2) TAXES 34,763, ,000 34,463,803 3,353,240 31,410,563 4,109,891 3) OTHERS 9,570,462 9,400, ,001 3,714,080 5,856,382 4,409,891 TOTAL PROVISIONS FOR LIABILITIES AND EXPENSES (B) 44,334,265 9,700,461 34,633,804 7,067,320 37,266,945 C) EMPLOYEES SEVERANCE 1,415,652 INDEMNITY 1,605,209 1,496, ,721 1,228, ,647 D) PAYABLES, with separate indication, for each item, of the amounts collectable after one year: - 5) ADVANCE PAYMENTS - 29,810-29, ,711,110 6) TRADE PAYABLES 15,173,971 10,936,656 4,237,315 11,233,778 3,940,193 47,780 10) DUE TO HOLDING COMPANIES 119, ,412 53,842 65,570 9,750,493 11) TAXES PAYABLES 8,692,643 51,639,579-42,946,936 16,604,348-7,911,705 12) DUE TO SOCIAL SECURITY 355,589 BODIES 370, ,651 72, , ,278 18,889,927 13) OTHER PAYABLES 23,410,754 34,025,849-10,615,095 2,134,105 21,276,649 14) DUE FOR PLAYERS SHARING COSTS 7,695,208 EX ART. 102 BIS N.O.I.F. 5,371,152 5,371,152-8,211,665-2,840,513 57,466,702 16) DUE TO SPECIFIC SECTOR 166,012, ,648,039-8,635,924 75,017,221 90,994,894 98,916,809 TOTAL PAYABLES (D) 219,150, ,948,736-57,798, ,496, ,653,366 E) ACCRUED LIABILITIES, AND DEFERRED 138,589,508 INCOME 124,465, ,804,797-21,339, ,867, , ,791,758 TOTAL LIABILITIES 520,494, ,968,459-1,473, ,182, ,311, Juventus Football Club Quarterly Report at 31 December 2001

27 BALANCE SHEET MEMORANDUM ACCOUNTS 30/06/ /12/ /09/ /12/ /12/ /12/ /09/ /12/2000 Euro THIRD PARTY GUARANTEES IN FAVOUR OF 41,344,286 THIRD PARTIES - Risks for guarantees granted 130,429, ,429,243-81,636,516 48,792,727 THIRD PARTY GUARANTEES IN OUR FAVOUR 17,963,817 Risks for guarantees received from third parties 68,371,783 56,854,071 11,517,712 62,463,559 5,908,224 3,413,851 FORWARD AGREEMENTS - RECEIVABLES 279, ,684-13,054,501-12,774,817 13,841,892 FORWARD AGREEMENTS - PAYABLES 7,248,526 7,248,526-13,363,568-6,115,042 COMMITMENTS FOR PURCHASE OF PLAYERS 47,656,060 REGISTRATION - Transfer of players 2001/ COMMITMENTS FOR DISPOSAL OF PLAYERS 3,522,236 REGISTRATION - Transfer of players 2001/ COMMITMENT FOR PURCHASE OF PROPERTY ,324 THIRD PARTY ASSETS HELD BY THE COMPANY 40,334 40, ,212-97, ,560 COMPANY ASSETS HELD BY THIRD PARTIES 1,247,521 1,247, ,247,521 17,356,567 COMMITMENTS FOR PURCHASE OF SHAREHOLDING ,478,593 TOTAL MEMORANDUM ACCOUNTS 207,617, ,099,379 11,517, ,656,356 36,960,735 Quarterly Report at 31 December

28 INCOME STATEMENT Euro FIRST HALF FIRST HALF 2 nd QUARTER 2 nd QUARTER 2000/ / / / /2001 A) PRODUCTION VALUE 12,835,098 1) REVENUES FROM SALES AND SERVICES 7,798,411 5,278,379 2,520,032 4,575,306 3,390,490 1,184,816 5) OTHER REVENUES AND INCOME 2,002,993 a) Income from temporary transfer of players 145, , ,699 76, , ,636 - b) Contributions from F.I.G.C. - LNP ,525,616 d) Sponsorship and other revenues 71,134,547 61,862,319 9,272,228 43,266,968 44,333,103-1,066,135 15,077,822 e) Other revenues and income 6,290,801 9,268,892-2,978,091 1,276,333 8,116,014-6,839, ,441,529 TOTAL PRODUCTION VALUE (A) 85,369,164 76,986,694 8,382,470 49,195,117 56,172,753-6,977,636 B) PRODUCTION COSTS 2,409,350 6) PURCHASES 1,348,626 1,295,971 52, , , ,121 25,945,659 7) SERVICE EXPENSES 17,380,980 12,688,814 4,692,166 10,111,880 7,316,689 2,795,191 2,516,660 8) LEASE AND RENT COSTS 1,650,418 1,388, , , ,657-20,630 9) PERSONNEL EXPENSES 98,347,784 a) Salaries and wages 60,864,460 44,257,815 16,606,645 30,809,785 22,271,754 8,538,031 1,727,725 b) Social security contributions 924, , , , , , ,366 c) Severance indemnity 196, ,873 48, ,241 89,165 23, e) Other costs ) AMORTISATION AND DEPRECIATION a) Amortisation of intangible 37,247,189 fixed assets 34,521,168 18,807,692 15,713,476 17,266,918 9,113,696 8,153,222 b) Depreciation of tangible 454,840 fixed assets 284, ,971 13, , ,539-46,064 d) Write-downs of receivables entered under 4,463,986 current assets and cash at bank and in hand 1,798, ,114 1,669,145 1,502,591 64,557 1,438,034 12) ACCRUALS FOR RISKS 1,781,445 Other risks 5,460,571 1,380,727 4,079, ,001 10, ,026 14) OTHER OPERATING EXPENSES 332,774 a) Match organisation expenses 150, ,900 4, , ,851 5, ,769 b) Official match expenses 60,688 45,812 14,876 44,440 31,519 12,921 4,261 c) Match registration fees 5,333 5, , ,072 14,986,402 d) Others 8,552,102 5,056,716 3,495,386 5,244,261 4,412, , ,701,313 TOTAL PRODUCTION COSTS (B) 133,198,747 86,330,232 46,868,515 67,761,739 45,611,137 22,150,602 DIFFERENCE BETWEEN PRODUCTION (18,259,784) VALUE AND COSTS (A-B) (47,829,583) (9,343,538) - 38,486,045 (18,566,622) 10,561,616-29,128,238 C) FINANCIAL INCOME AND EXPENSES 15) INCOME FROM SHAREHOLDINGS - d) Others 147, , ) OTHER FINANCIAL INCOME a) from receivables entered under fixed assets, with separate indication of those from controlled and subsidiary companies 1,241 and those from holding companies Juventus Football Club Quarterly Report at 31 December 2001

29 INCOME STATEMENT Euro FIRST HALF FIRST HALF 2 nd QUARTER 2 nd QUARTER 2000/ / / / / ,507 c) from securities entered under current assets 10,280 30,403-20,123 5,140 30,403-25,263 d) other income, with separate indication of those from controlled and subsidiary companies 11,383,400 and those from holding companies 2,928,121 10,396,651-7,468, , , ,710 17) INTEREST AND OTHER FINANCIAL EXPENSES with separate indication of those due to controlled and subsidiary companies and (1,052,528) those due to holding companies (6,641,696) (816,788) - 5,824,908 (2,118,593) (306,223) - 1,812,370 TOTAL FINANCIAL INCOME 10,569,620 AND EXPENSES ( ) (3,555,000) 9,610,838-13,165,838 (1,869,058) 702,502-2,571,560 D) VALUATION ADJUSTMENTS TO FINANCIAL ASSETS 19) WRITE-DOWNS (147,940) a) of shareholdings (371,022) c) of securities entered under current assets (164,912) , , ,860 TOTAL VALUATION ADJUSTMENTS (518,962) TO FINANCIAL ASSETS (164,912) , , ,860 E) EXTRAORDINARY INCOME AND EXPENSES 20) INCOME with separate indication of capital gains on disposals generating revenue which cannot be entered under item 5 20,468,247 a) capital gains on disposals 123,892,118 19,205, ,686,202 1, , , ,106 b) use of reserve art. 25 of the Company By-laws 288, ,553 13, , , ,188 - c) pre-paid taxes ) EXPENSES, with separate indication of capital losses on disposals the effects of which cannot be entered under item 14, and on taxes from previous years (2,055,031) a) capital losses on disposals (33,879) (1,300,528) 1,266,649 (16,947) ,947 - c) other extraordinary costs ,104-11,104 TOTAL EXTRAORDINARY INCOME 18,964,322 AND EXPENSES (20+21) 124,146,970 18,180, ,966, , , ,694 PROFIT BEFORE INCOME TAXES 10,755,196 (A-B+C+D+E) 72,597,475 18,448,241 54,149,234 (20,122,732) 11,797,900-31,920,632 (4,980,569) 22) INCOME TAXES: (35,347,778) (7,886,146) - 27,461, ,764 (5,641,579) 6,188,343 5,774,627 26) NET INCOME FOR THE PERIOD 37,249,697 10,562,095 26,687,602 (19,575,968) 6,156,321-25,732,289 Quarterly Report at 31 December

30 STATEMENT OF CASH FLOW Euro in thousands 1 st QUARTER 2 nd QUARTER FIRST HALF 2001/ / /2002 NET FINANCIAL POSITION AT THE BEGINNING OF THE PERIOD 67,555 46,719 67,555 OPERATING ACTIVITIES : Net income 56,826 (19,576) 37,250 Amortisation of players registration rights 17,171 17,179 34,350 Other amortisation (Increase)/Decrease of receivables from football clubs (84,590) 31 (84,559) Increase/(Decrease) of payables to football clubs 116,136 (16,132) 100,004 (Increase)/Decrease of other operating receivables (18,692) 8,371 (10,321) Increase/(Decrease) of other operating payables 69,112 (63,006) 6,106 Increase/(Decrease) of employees severance indemnity and other funds 5,370 34,743 40,113 CASH FLOW GENERATED/(ABSORBED) BY OPERATING ACTIVITIES 161,559 (38,160) 123,399 INVESTMENT ACTIVITIES : Acquisition of players registration rights (208,232) (30) (208,262) Net disposal of players registration rights 33,424-33,424 Other net (investments)/disposals (6,319) (627) (6,946) CASH FLOW GENERATED/(ABSORBED) BY INVESTMENT ACTIVITY (181,127) (657) (181,784) DIVIDENDS PAID (1,124) - (1,124) OTHER VARIATIONS IN NET ASSETS (144) 62,498 62,354 NET FINANCIAL POSITION AT THE END OF THE PERIOD 46,719 70,400 70, Juventus Football Club Quarterly Report at 31 December 2001

31 information: Juventus Football Club S.p.A. C.so Galileo Ferraris n Turin telephone fax investor.relations@juventus.com The Quarterly Report at 31 December 2001 was approved by the Board of Directors on 13 February Graphic design and editorial co-ordination Beatrice Coda Negozio Photography LaPresse English version David Henderson Printed by G. Canale & C. S.p.A.

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