Quarterly Report 30 September 2004

Transcription

1 Quarterly Report 30 September 2004 JUVENTUS Football Club

2 JUVENTUS Football Club S.p.A. Registered office Corso Galileo Ferraris 32, Torino Share capital fully paid 12,093,200 Registered in the companies register Under no REA no Borsa Italiana S.p.A. share code: JUVE ISIN code: IT Bloomberg ticker: JUVE IM Reuters ticker: JUVE.MI This document contains a true traslation in English of the report in Italian Relazione trimestrale al 30 settembre However, for information about Juventus Football Club S.p.A. reference should be made exclusively to the original report in Italian Relazione trimestrale al 30 settembre The Italian version of the Relazione trimestrale al 30 settembre 2004 shall prevail upon the English version. This document is available on the Internet at

3 Officers

4 Board of Directors Chairman Franzo Grande Stevens (2) Vice Chairman Roberto Bettega Chief Executive Officer Antonio Giraudo Director and General Manager Luciano Moggi Director (1) (2) Giancarlo Cerutti Director (1) (2) Andrea Pininfarina Director Fabrizio Prete (2) Director (1) (2) Claudio Saracco Director Daniel John Winteler (2) Audit Committee (1) (2) Claudio Saracco (1) (2) Giancarlo Cerutti (1) (2) Andrea Pininfarina Remuneration and Appointments Committee Franzo Grande Stevens (2) (1) (2) Giancarlo Cerutti Daniel John Winteler (2) Board of Statutory Auditors Chairman Auditor Auditor Deputy Auditor Deputy Auditor Giorgio Giorgi Alberto Ferrero Carlo Re Gianluca Ferrero Paolo Piccatti (1) Independent Director (2) Non executive Director The mandate of the Board of Directors and the Board of Statutory Auditors will empire with the Shareholders Meeting to approve the Financial Statements as of 30 June Powers of Company Officers Under company By-laws (art. 21) the Chairman, Vice Chairman and Chief Executive Officer have the power to represent the Company in the framework of and in the exercise of the powers conferred on them and also to execute the decisions of the Board and in law. Furthermore, the Board of Directors may, as permitted in law, assign powers to other directors, executives, representatives and managers within the limits set by the Board. The Board of Directors voted on 28 October 2003 to confer specific ordinary and extraordinary management powers on the Vice Chairman Roberto Bettega and the Chief Executive Officer Antonio Giraudo, and conferred on the Director and General Manager Luciano Moggi specific management powers for sport. 3 Independent Auditors The Shareholders Meeting of 26 October 2004 appointed PricewaterhouseCoopers S.p.A. as independent auditors of the Financial Statements for the three-year period of 2004/2005, 2005/2006 and 2006/2007 and for limited audits of the Six-Monthly Report at 31 December 2004, 2005 and 2006.

5 Contents

6 Reclassified Balance Sheet 7 Reclassified Income Statement 8 Significant events in the first quarter of the 2004/2005 Financial Year 10 Review of results 16 Significant events after 30 September Business outlook 22 Accounting principles 23 Balance Sheet 24 Income Statement 28 Statement of Cash Flow 30 5 The Quarterly Report at 30 September 2004 was approved by the Board of Directors on 11 November If not otherwise indicated, the figures in this Quarterly Report are given in Euros.

7 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 Player Management from Player 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 and any waiver to the exercise of option rights. Contingent assets and liabilities have been reclassified as extraordinary items in the Income Statement and costs related to third-party guarantees in favour of the Company have been reclassified under Net Financial Income/(Loss). 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

8 Reclassified Balance Sheet /000 30/09/ /06/2004 Change 30/09/2003 Change Players registration rights Accumulated amortisation Net players registration rights Other net intangible fixed assets Net tangible fixed assets Net investments NET FIXED ASSETS Net receivables from football clubs Payables to football clubs Net credit/(debit) position to other football clubs Other operating receivables Other operating payables NET WORKING CAPITAL SEVERANCE INDEMNITY AND OTHER FUNDS NET INVESTED CAPITAL SHAREHOLDERS EQUITY Current financial assets Bank and post-office deposits Cash at bank and in hand NET FINANCIAL POSITION (*) TOTAL SHAREHOLDERS EQUITY AND NET FINANCIAL POSITION 411, ,993 36, ,728 38,335 (221,429) (222,692) 1,263 (176,813) - 44, , ,301 37, ,915-6, ,286 38,648-4,362 37,874-3,588 34,704 25,737 8,967 25,256 9, , ,339 41, , ,469 23,187 17,282 45,403-4,934 (66,813) (45,143) - 21,670 (46,822) -19,991 (26,344) (21,956) - 4,388 (1,419) - 24,925 92,637 68,684 23,953 95,945-3,308 (230,379) (209,981) - 20,398 (281,118) 50,739 (164,086) (163,253) (186,592) 22,506 (23,629) (26,282) 2,653 (36,170) 12,541 71,533 27,804 43,729 36,790 34,743 77,963 80,945-2,982 84,710-6,747 (2,039) (2,039) - (1,975) -64 (4,365) (51,091) 46,726 (45,929) 41,564 (26) (11) -15 (16) -10 (6,430) (53,141) 46,711 (47,920) 41,490 71,533 27,804 43,729 36,790 34,743 MEMORANDUM ACCOUNTS Third-party assets held by the Company Company assets held by third parties Guarantees given Guarantees received Options granted by third parties Third party options Forward agreements TOTAL MEMORANDUM ACCOUNTS (*) Negative items show a liquidity position ,993-1,987 57,289 41,178 16,111 83,069-25,780 42,809 42, , ,600-6,600 11,760-11,760 23,835-12,075 2,530 27,794-25,264 6,923-4, , ,713 2, ,269-50,814 7 The Quarterly Report at 30 September 2004 is unaudited.

9 Reclassified Income Statement Year 2003/2004 Op. excl. player Player Total management management 17,612-17, , ,146 53,766-53,766 25, , , ,151 Ticket sales Television, radio and telephone rights and U.E.F.A. Champions League revenues Sponsorship, commercial and other related activities Other revenues TOTAL REVENUES (2,890) - (2,890) (24,066) - (24,066) (1,834) (2,055) (3,889) (117,084) - (117,084) (20,089) (3,080) (23,169) (165,963) (5,135) (171,098) Raw materials, supplies and consumables Services Rents, leases and related costs Personnel costs Other operating costs TOTAL OPERATING COSTS 41,278 (4,225) 37,053 GROSS OPERATING MARGIN (1,267) (63,929) (65,196) (517) - (517) (711) (1,808) (2,519) - 3,622 3,622 38,783 (66,340) (27,557) 7,587-7,587 43,370 (66,340) (19,970) 1,511 (18,459) Depreciation and amortisation Provisions and write-downs Net financial income/(loss) Income/(loss) from players registration rights INCOME/(LOSS) BEFORE EXTRAORDINARY ITEMS AND TAXES Extraordinary income/(loss) INCOME/(LOSS) BEFORE TAXES Taxes NET INCOME/(LOSS) FOR THE PERIOD 8 The Quarterly Report at 30 September 2004 is unaudited.

10 /000 1 st Quarter 2004/2005 Op. excl. player Player Total management management 2,929-2,929 19,565-19,565 13,247-13, , ,681 1 st Quarter 2003/2004 Op. excl. player Player Total management management 4,082-4,082 18,997-18,997 12,412-12, ,129 36, ,620 (515) - (515) (5,395) - (5,395) (472) - (472) (31,623) - (31,623) (2,676) - (2,676) (40,681) - (40,681) (4,107) 107 (4,000) (357) (16,808) (17,165) ,641 1,693-16,955 16,955 (4,412) 1,895 (2,517) (4,338) 1,895 (2,443) (539) (2,982) (372) - (372) (4,522) - (4,522) (536) (511) (1,047) (29,433) - (29,433) (2,274) - (2,274) (37,137) (511) (37,648) (720) (308) (1,028) (299) (17,578) (17,877) (283) - (283) 157 (1,808) (1,651) - 4,009 4,009 (1,145) (15,685) (16,830) (62) - (62) (1,207) (15,685) (16,892) 1,983 (14,909) 9

11 Significant events in the first quarter of the 2004/2005 Financial Year Football season The 2004/2005 football season began with the preliminary qualifying round of the 2004/2005 U.E.F.A. Champions League against the Swedish team Djurgardens. After the two legs, Juventus Football Club S.p.A. qualified for the European competition. Admission to the 2004/2005 professional championship On 19 July 2004, Co.Vi.So.C., having examined the documentation presented by Juventus Football Club S.p.A. and documents from the Lega Calcio, has confirmed that the Company meets the pre-requisites for admission to the pertinent professional championship (Serie A) for the 2004/2005 season. Relations with sponsor companies In the 2004/2005 football season the Sky Sport logo appears on the shirts used by Juventus in the Championship, thanks to the Official Sponsorship contract with Sky Italia S.r.l /2005 Transfer Campaign The 2004/2005 Transfer Campaign will be held, as is usual, in two phases: the first from 1 July to 31 August 2004, the second from 3 January to 31 January In the course of the first phase of the 2004/2005 Transfer Campaign, Juventus Football Club S.p.A. completed the following major operations concerning players registration rights (whose economic and financial results will have an impact on the 2004/2005 and following financial years):

12 definitive acquisition from A.S. Livorno Calcio S.r.l. of the registration rights of the player Giorgio Chiellini for a sum of 6.5 million payable in three years: 3 million in the 2004/2005 financial year, 2 million in the 2005/2006 financial year and 1.5 million in the 2006/2007 financial year; agreement with Valencia CF for the definitive disposal of the registration rights of the player Marco Di Vaio for a sum of 10.5 million payable in five instalments: 2 million received on signing the contract; 2 million by 15 June 2005; 2 million by 15 June 2006; 2.25 million by 15 June 2007 and 2.25 million by 15 June This operation generates a loss of about 1.5 million; agreement with ACF Fiorentina S.p.A. for the definitive disposal of the registration rights of the player Enzo Maresca for a sum of 5 million payable in three years starting in the 2004/2005 season. This operation generates a profit of about 2.5 million. At the same time, Juventus Football Club S.p.A. and ACF Fiorentina S.p.A. stipulated a player sharing agreement ex art. 102 bis N.O.I.F. under which Juventus Football Club S.p.A. acquired 50% of the value of the registration rights of the player for a sum of 2.5 million payable in three years starting from the 2004/2005 season; agreement with Club Atletico River Plate for the renewal of the free temporary disposal of the registration rights of the player Marcelo Salas for a further year; agreement with A.S. Roma S.p.A. for the definitive acquisition of the registration rights of the player Ferreira Da Rosa Emerson for a sum of 28 million payable in three years; Juventus Football Club S.p.A. underwrote a four-year playing contract with the player; agreement with A.S. Roma S.p.A. for the definitive disposal of the registration rights of the player Matteo Brighi for the sum of 16 million payable in three years. This operation generates a loss of about 0.5 million; agreement with ACF Fiorentina S.p.A. for the definitive disposal of the registration rights of the player Giorgio Chiellini for the sum of 7 million payable in two years starting from the 2004/2005 season. This operation generates a profit of about 0.5 million. At the same time Juventus Football Club and ACF Fiorentina S.p.A. stipulated a player sharing agreement ex art. 102 bis N.O.I.F. under which Juventus Football Club S.p.A. acquired 50% of the value of the registration rights of the player Giorgio Chiellini for a sum of 3.5 million payable in 2 years starting from the 2004/2005 season; 11 agreement with Royal Standard de Liege S.A. for the definitive acquisition of the registration rights of the player Fabian Carini for a sum of 5.2 million paid at the time of signing the agreement through the financial compensation of credits due to Juventus Football Club from the Belgian club;

13 agreement with F.C. Internazionale S.p.A. for the definitive disposal of the registration rights of the player Fabian Carini for a sum of 10 million payable in the 2004/2005 season. This operation generates a profit of about 3.6 million; agreement with F.C. Internazionale S.p.A. for the definitive acquisition of the registration rights of the player Fabio Cannavaro for a sum of 10 million payable in the 2004/2005 season. Juventus Football Club underwrote a four-year playing contract with the player; agreement with AFC Ajax NV for the definitive acquisition of the registration rights of the player Zlatan Ibrahimovic for a sum of 16 million payable in five years: 3 million paid at the time of signing the contract, 3 million by 31 August 2005, 3 million by 31 August 2006, 3 million by 31 August 2007 and 4 million by 31 August 2008 (the payment of the instalments is covered by a bank guarantee of 3 million that will be renewed year by year). Juventus Football Club underwrote a four-year playing contract with the player; agreement with ACF Fiorentina S.p.A. for the definitive disposal of the registration rights of the player Fabrizio Miccoli for a sum of 14 million payable in three years starting from the 2004/2005 season. This operation generates a profit of about 10.3 million. At the same time, Juventus Football Club and ACF Fiorentina S.p.A. stipulated a player sharing agreement ex art. 102 bis N.O.I.F. under which Juventus Football Club, for a sum of 7 million payable in three years starting from the 2004/2005 season, acquired 50% of the value of the registration rights of the player Fabrizio Miccoli. On the basis of the operations completed, the first phase of the 2004/2005 Transfer Campaign entailed a total financial loss of 43.6 million, due to: /000 Investments (102,350) Terminations of player sharing (7,640) Disposals 66, Balance (43,615) The economic effect, also including terminations of player sharing, was positive for 18.6 million. In addition, the temporary purchases and disposals of players registration rights led to a net positive economic and financial effect for 0.4 million. The overall negative financial result was therefore

14 43.2 million, of which: 23.4 million will be settled through the LNP; 10.7 million will be settled directly with foreign football clubs; 9.1 million (payment for consultancy services provided by sports agents) will be settled directly. /million Total 2004/ / / / /2009 LNP (23.4) (7.6) (7.1) (8.7) - - Foreign F.C. (10.7) (4.2) (1.0) (0.8) (0.7) (4.0) Agents (9.1) (3.6) (2.7) (1.5) (1.0) (0.3) As far as changes in and the situation of guarantees in favour of F.I.G.C. LNP referring to the 2004/2005 Transfer Campaign are concerned, it should be noted that on 9 July 2004, Banca Sella S.p.A. guaranteed the payment of the balance due from the operations completed up to 5 July 2004 issuing a guarantee, as envisaged by the sports regulations in force, for a total sum of 16.1 million and that on 5 August 2004 it guaranteed the further negative balance generated by the operations completed up to 31 July 2004, issuing a guarantee for a sum of 16.6 million. This sum is to be added to the existing 17.7 million guarantee issued on 9 July 2003 and 5 February 2004 by Banca Sella S.p.A. for the Transfer Campaign in the 2003/2004 financial year and the sum of 7.7 million for outstanding guarantees issued by the indirect parent company IFI S.p.A. relating to the Transfer Campaign of the 2001/2002 financial year. Due to the effect of the operations concluded in August and the sums paid in the first quarter of the current financial year, which led to a decrease in the overall debt to the F.I.G.C. - LNP, at 30 September 2004 the total guarantees issued by Banca Sella S.p.A. in favour of the F.I.G.C. - LNP amount to 36 million. It should also be noted that on 30 June 2004 the contracts for the temporary disposal of the registration 13 rights of the players Manuele Blasi, Ruben Olivera and Marcelo Zalayeta were terminated, and they thus returned to join the Juventus First Team as of 1 July 2004.

15 Renewal of player s contracts In the course of July and August, the contracts with the following players were renewed: Gianluigi Buffon, until 30 June 2009; Antonio Chimenti, until 30 June 2006; David Trezeguet, until 30 June 2008; Igor Tudor, until 30 June 2007; Gianluca Zambrotta, until 30 June These operations entailed the extension of the amortisation plans for the registration rights of the individual players with the consequent positive effect on the 2004/2005 financial year (in terms of lower amortisation) for 6 million ( 1.5 million in the first quarter). 2004/2005 Season Ticket Campaign The Season Ticket Campaign for the 2004/2005 season began on 22 June At 30 September ,014 season tickets had been sold (gross revenues of 6.6 million for net income of 5.7 million), against 28,531 season tickets sold at the same date in the 2003/2004 season (gross revenues of 8.2 million for net income of 7.1 million). A total of 28,672 season tickets were sold in the 2003/2004 season, with total gross receipts of 8.3 million for net income of 7.2 million. The figures for receipts include additional services with the exception of advance sales rights. Stadio Delle Alpi Following the lengthening of the time needed by the City of Turin to grant the building permission required to start work on the restructuring of the Stadio Delle Alpi, the Company has been forced to postpone the date for starting work to June 2005 for reasons related to the internal logistics of the stadium. 14

16 Shareholders and share price On the basis of the latest information available, the shareholding structure of Juventus Football Club S.p.A. is as follows: IFIL S.p.A. LAFICO S.a.l. Antonio Giraudo Free float Juventus Football Club S.p.A. share price trend and equity turnover /m 2.5 Equity turnover Official price /10 11/12 21/1 2/3 12/4 21/5 1/7 11/8 21/9 1/11 1 On 1 November 2004 the official Juventus share price was 1.51, down 23.5% compared to the price on October 2003 ( 1.974). In the quarter in question, the share price was essentially stable, hovering around the value of 1.5 without showing any particularly significant daily variations. The average daily equity turnover in the past twelve months was 0.1 million.

17 Miscellaneous The Extraordinary General Meeting of Juventus Football Club S.p.A., held in Turin on 20 July 2004, approved a number of changes to the Company By-laws to adapt its provisions to the mandatory regulations of the company law reform, to introduce some opportunities that the new regulations now make possible and to make some simplifications and also variations of a purely formal nature. Review of results The economic results of the first quarter of the 2004/2005 financial year reflect, as usual, the decidedly seasonal nature of the business. In particular, it should be noted that the main revenue and cost items do not follow the same trends over time in the single quarters of the financial year and in the corresponding quarters of different financial years. It should also be noted that the economic effects of the first phase of the Transfer Campaign are recorded in the first quarter of the financial year. The economic result for the first quarter cannot therefore be the basis for projections for the entire financial year. The Company s trend for the quarter also felt the effect of the seasonal nature of the economic components. In addition, some revenue items present non-uniform financial patterns (receipts) with respect to the pertinent economic period. In particular, Season Ticket Campaign revenues are collected almost entirely in the first quarter of the financial year, while on the basis of the contract with Sky Italia S.r.l., which took over Europa TV/Telepiù, encrypted television rights were received two financial years in advance of the pertinent period. Revenues for the first quarter of the 2004/2005 financial year amounted to 36.7 million, essentially unchanged compared to 36.6 million in the first quarter of the previous financial year due to: 16 match revenues for 2.9 million, a decrease compared to 4.1 million in the corresponding period of the previous financial year due to lower revenues from the sale of season tickets ( -0.2 million) and home match tickets ( -0.1 million), lower fees for friendly matches ( -0.3 million) and the absence of the revenues from the Italian Super Cup played in the previous financial year ( -0.6 million); revenues from television, radio and telephone rights and the U.E.F.A. Champions League for 19.6 million, against 19 million in the first quarter of the 2003/2004 financial year, due to the sale of the

18 television rights for the preliminary round of the U.E.F.A. Champions League ( +0.3 million) and the increase ( +0.8 million) envisaged by the contract for television and telephone right also following the agreement with the Mediaset Group for the so-called terrestrial digital and the higher number of Championship matches planned for the 2004/2005 season, partially compensated by lower revenues from the U.E.F.A. Champions League ( -0.5 million). As far as the U.E.F.A. Champions League is concerned, it should be noted that the revenues recorded in the quarter in question amounted to a total of 4.3 million, against 4.8 million in the first quarter of the 2003/2004 financial year, mainly due to the effect of the lower market pool attributed to the Company after finishing third in the 2003/2004 Championship (compared to entry as the winner of the Championship, as in the previous financial year); revenues from sponsorship and commercial income for 13.2 million, an increase compared to 12.4 million in the corresponding period of the previous financial year following the higher sums envisaged by the Technical and Official Cup Sponsorship contracts ( +0.3 million) and other sponsorship contracts ( +0.4 million) and higher revenues from advertising ( +0.1 million); other revenues for 0.9 million, against 1.1 in the first quarter of the 2003/2004 financial year due to lower revenues from the temporary disposal of players registration rights ( -0.1 million) and other minor variations. Operating costs in the first quarter of the 2004/2005 financial year came to a total of 40.7 million, an increase of 8% compared to 37.6 million in the corresponding period of the previous financial year essentially due to the rise in the various components with the sole exception of rent and leasing ( 0.5 million, against 1 million) which fell due to the lower costs for the temporary acquisition of players registration rights. Expenses for raw materials, supplies and consumables ( 0.5 million, against 0.4 million) increased largely due to higher expenditure on sportswear ( +0.1 million). Expenses for services ( 5.4 million, against 4.5 million) felt the impact of higher consultancy costs ( +0.5 million), the players wages policy ( +0.3 million) not underwritten in the previous period, sports activities ( +0.2 million) and the management of the Stadio Delle Alpi ( +0.1 million), net of the lower costs for the player assets policy ( -0.4 million) and other minor variations ( +0.2 million). 17 Personnel costs ( 31.6 million, against 29.4 million) increased mainly due to the new contracts stipulated in the course of the first phase of the 2004/2005 Transfer Campaign. Miscellaneous operating costs ( 2.7 million, against 2.3 million) increased mainly due to the rise in PR

19 expenses ( +0.2 million) and the increase in other minor items ( +0.2 million). The Gross Operating Margin for the first quarter of the 2004/2005 financial year was negative for 4 million, against a negative balance of 1 million in the first quarter of the previous year. Depreciation and amortisation in the first quarter of the 2004/2005 financial year amounted to a total of 17.2 million, a decrease compared to 17.9 million in the same period of the 2003/2004 financial year, mainly due to the investments/disinvestments made in the course of the first phase of the Transfer Campaign. The amortisation for the period also reflects the positive effect (for 1.5 million) deriving from the extension of the amortisation plans of the players registration rights following the advance renewal of the related contracts. No Write-downs and/or Provisions were made in the first quarter of 2004/2005, which amounted to 0.3 million in the corresponding period of the previous financial year. The Financial Result for the period closed at 30 September 2004 showed a positive balance of 1.7 million (negative balance of 1.7 million in the first quarter of 2003/2004) mainly following the net income, for 1.6 million, deriving from the terminations of player sharing (ex art. 102 bis N.O.I.F.), which in the first quarter of the 2003/2004 financial year had determined net expenses for 1.8 million, and the positive difference between interest received and other financial expenses and charges ( 0.1 million). Net revenues from the management of players registration rights in the first quarter of the 2004/2005 financial year amounted to 17 million, an increase compared to 4 million in the corresponding period of the previous year, due to the significant disposals made during the first phase of the Transfer Campaign. The negative Result before Extraordinary Items and Taxes at 30 September 2004 was 2.5 million, an improvement over the negative result of 16.8 million at 30 September 2003, due to the significant improvement recorded in Player Management (positive for 1.9 million, against the negative balance of 15.7 million) partially compensated by the fall in Operations excluding Player Management (negative for 4.4 million, against a negative balance of 1.1 million). The Extraordinary Items in the first quarter of 2004/2005 financial year showed a positive result of about million, against a negative balance of 0.1 in the corresponding period of the previous financial year, due to the balance between extraordinary income ( 0.2 million) and extraordinary expenses ( 0.1). Taxes for the first quarter of the 2004/2005 financial year were negative for 0.5 million, against a positive balance of 2 million recorded in the same period of the previous financial year. This effect stems from the allocation of IRAP for the period for 1.5 million, partially compensated by the allocation of the deferred taxes for the period for 0.2 million and the net use of the pertinent shares of taxes deferred in previous

20 financial years for 0.8 million. The first quarter of the 2004/2005 financial year therefore closed with a negative Net Result of 3 million, against the negative result of 14.9 million in the corresponding period of the 2003/2004 financial year following the improvement in Player Management and the worsening of Operations excluding Player Management, as described above, net of the difference recorded in extraordinary items ( +0.2 million compared to the first quarter of 2003/2004) and the fiscal impact ( -2.5 million). As far as financial aspects and assets are concerned, the following table should be noted, in the format suggested by CONSOB (DEM/ recommendation of 9 December 2002): /000 Year 2003/ st Quarter 2004/ st Quarter 2003/2004 NET FINANCIAL POSITION/(INDEBTEDNESS) 53,141 - short term positive/(negative) components * 6,430 47, mid-long term positive/(negative) components * ,141 TOTAL 6,430 47,920 FREE CASH FLOW AVAILABLE (16,096) - variation in cash at bank and in hand (46,711) (21,253) 64 - variation in short-term financial operation - - ** DEBT/EQUITY RATIO ** ** * Figures at the end of the relevant period. ** As at 30 June 2003, 30 September 2003 and 30 September 2004 the Company had no short or medium-long term debts, this index is not significant. It should also be noted that: the Net Financial Position at 30 September 2004 was positive for 6.4 million, a reduction compared to the positive result of 53.1 million at 30 June The positive result of 6.4 million derived from liquid assets for 4.4 million ( 51.1 million at 30 June 2004) and financial operations for 2 million (unchanged compared to 30 June 2004) held by unrelated third parties. The Net Financial Position at 30 September 2004 does not therefore include any debt and/or credit position towards related parties. The decrease of 46.7 million in the Net Financial Position is due to the difference generated by the reduction 19 in the Net Working Capital ( +0.8 million), the reduction in the Employees Severance Indemnity Fund and Other Funds ( -2.6 million), the net investments made ( million), and the positive cash flow (net result + depreciation and amortisation) ( million). As regards seasonal effects and the impact of advance receipts on the sums envisaged by the contracts for

21 the granting of television rights on the Net Financial Position (with the related impact on the Net Working Capital in terms of prepaid income included in operating debts), it should be underlined that at 30 September 2004, as specified in the contract with Europa TV/Telepiù, which was taken over on 1 June 2003 by Sky Italia S.r.l., the sums agreed for the granting of encrypted television rights for the entire 2004/2005 season (for a total of 87.8 million, including VAT) have already been received. The first instalment of the sum agreed in the contract with Sky Italia S.r.l. for 54 million including VAT regarding the encrypted television rights for the 2005/2006 season was received on 28 June Net Working Capital at 30 September 2004 was negative for million, a decrease of 0.8 million compared to the negative balance of million at 30 June 2004 mainly following the increase in miscellaneous operating debts ( million, against 210 million), higher indebtedness towards other football clubs ( 26.3 million, against 22 million), net of the increase in other operating credits ( 92.6 million, against 68.7 million). The Net Book Value of Players Registration Rights at 30 September 2004 amounted to million, an increase compared to million at 30 June 2004 following the investments made in the course of the first phase of the 2004/2005 Transfer Campaign, net of amortisation for the period. Shareholders Equity at 30 September 2004 was 78 million, a fall compared to 80.9 million at 30 June 2004 due mainly to the net loss for the period. The Net Financial Position at 30 September 2004 was positive and the Net Debt/Equity ratio is not therefore significant. For further detailed information, see the statement of cash flow attached to this report. 20

22 Significant events after 30 September 2004 Football season The First Team qualified for the first knock-out round of the U.E.F.A. Champions League with two games in hand. Ordinary Shareholders Meeting of 26 October 2004 The Ordinary General Meeting of the Shareholders of Juventus Football Club S.p.A., held in Turin on 26 October 2004, approved the annual Financial Statements at 30 June 2004 and voted to: cover the net loss of 18,459,155 through the use of the Income carried forward reserve; authorise, as per Article 2357 of the Italian Civil Code, the purchase, on one or more occasions and for a period of 18 months from the date of the Meeting s deliberation, of a maximum number of 12 million ordinary Juventus shares, and in any case within the legal limits, at a price no lower than 15% less and nor more than 15% above the reference price of the share in the stock market trading session of the day preceding each single operation, for total expenditure of not more than 36 million, establishing, pursuant to Article 2357 ter of the Italian Civil Code, the forms of disposal of the shares thus purchased, and also authorising the Board of Directors to use treasury shares for stock options for employees and directors of the Company or its subsidiaries; appoint PricewaterhouseCoopers S.p.A. as Independent Auditors for the three-year period 2004/2005, 2005/2006 and 2006/2007; adapt the OGM/EGM Regulations to the changes in the Company By-laws approved by the Extraordinary Meeting of 20 July 2004 and the new regulations. Ordinary and Extraordinary Shareholders Meeting of Campi di Vinovo S.p.A. On 20 October 2004, the Ordinary and Extraordinary Shareholders Meeting of the subsidiary company 21 Campi di Vinovo S.p.A. approved the Financial Statements at 30 June 2004, which closed with a net loss of 28.7 thousand and deliberated to: cover the net loss of 28.7 thousand through the total use of the Income carried forward reserve for a sum of 9,126, total use of the Extraordinary Reserve for a sum of 2,115, total use of the Additional

23 paid-in-capital reserve for a sum of 13,531 and partial use of the Revaluation Reserve for a sum of 3,923; to appoint Ruggero Tabone as Statutory Auditor and Marco Pietro Edoardo Giudici as Deputy Statutory Auditor; to appoint PricewaterhouseCoopers S.p.A. as independent auditors for the three-year period 2004/2005, 2005/2006 and 2006/2007; to adopt new company By-laws, in part to adapt them to the dispositions of Legislative Decrees 6/2003 and 37/2004 (company law reform). Miscellaneous As regards the investigation by the judiciary against the Chief Executive Officer and the company physician concerning the alleged improper use of medicines by Juventus Football Club S.p.A. players, an expert opinion ordered by the judge was discussed during the investigative hearings in July. The final discussion stage then began and on 25 October 2004, in the final address, the public prosecutor asked for the defendants to be convicted. The hearings for both the defence lawyers pleadings and any replies and rebuttals were fixed for the month of November. It is envisaged that the sentence could be delivered by the end of the year. Business outlook The results for the 2004/2005 financial year may be significantly affected by events in the football season, the economic effects of the second phase of the Transfer Campaign and any extraordinary operations referring to assets. 22

24 Accounting principles The Quarterly Report at 30 September 2004, concerning the first quarter of the 2004/2005 financial year, has been drawn up in compliance with article 82 of the Regolamento recante norme di attuazione del D.Lgs. 24 febbraio 1998, n. 58 in materia di emittenti (CONSOB decision of 14 May 1999 and later amendments) and in observance of the evaluation criteria and accounting principles used for the Financial Statements closed at 30 June These criteria conform to those laid down in Art of the Italian Civil Code, to which explicit reference is made. 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 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. This Quarterly Report has not been drawn up as a consolidated report as the only company controlled by Juventus Football Club S.p.A. (Campi di Vinovo S.p.A.) as specified in Art of the Italian Civil Code, as in force at 31 December 2003, 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. 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 economic and asset situation given in the Quarterly Report at 30 September 2003 has in some cases been reclassified to help comparability of data. The Quarterly Report at 30 September 2004 is unaudited. Turin, 11 November On behalf of the Board of Directors The Chairman Franzo Grande Stevens

25 Balance Sheet Assets B) FIXED ASSETS I) INTANGIBLE FIXED ASSETS: 3) Royalties for industrial patents and use of intellectual property 6) Intangible fixed assets in progress and advances to suppliers 8) Costs of players registration rights TOTAL INTANGIBLE FIXED ASSETS II) TANGIBLE FIXED ASSETS: 1) Land and buildings 2) Plant and machinery 3) Industrial and commercial equipment 4) Other tangible fixed assets 5) Fixed assets under construction and advances to suppliers TOTAL TANGIBLE FIXED ASSETS III) FINANCIAL FIXED ASSETS 1) Investments in: a) Subsidiary companies b) Associated companies d) Other companies e) Players sharing costs ex art. 102 bis N.O.I.F. 2) Receivables from: a) Subsidiary companies d) Others TOTAL FINANCIAL FIXED ASSETS TOTAL FIXED ASSETS (B) 30/09/ /06/2004 Change 30/09/2003 Change 30/09/ /09/ /06/ /09/ , ,656-28, ,973 40, , ,000-62,707 75, ,634, ,301,346 37,332, ,914,517-6,280, ,257, ,954,002 37,303, ,422,197-6,164,443 33,614,602 37,946,359-4,331,757 36,265,112-2,650,510 65,702 67,979-2, ,418-62, , ,003-2, ,840-14, , ,831-25, ,915-70, , ,386 34,286,342 38,648,172-4,361,830 37,873,671-3,587,329 12,153,513 12,153,513-12,153,513-30,000 30,000-9,000 21,000 2,587 2,587-2,587-19,516,325 10,549,730 8,966,595 10,548,230 8,968,095 3,000,000 3,000,000-2,500, ,000 1,348 1,348-42,448-41,100 34,703,773 25,737,178 8,966,595 25,255,778 9,447, ,247, ,339,352 41,908, ,551, ,777 24

26 Balance Sheet Assets C) CURRENT ASSETS II) RECEIVABLES: 1) Trade receivables 2) Receivables from subsidiary companies 3) Receivables from associated companies 4) Receivables from parent companies 4bis) Tax authority receivables 4ter) Prepaid taxes 5) Receivables from others TOTAL RECEIVABLES III) CURRENT FINANCIAL ASSETS: 6) Other securities TOTAL CURRENT FINANCIAL ASSETS IV) LIQUID FUNDS: 1) Bank and post-office accounts 3) Cash at bank and in hand TOTAL LIQUID FUNDS TOTAL CURRENT ASSETS (C) 30/09/ /06/2004 Change 30/09/2003 Change 30/09/ /09/ /06/ /09/ ,521,760 29,680,152 34,841,608 60,106,435 4,415, , , , , ,184 47,339 47, ,339 23,170-23, , ,961 5,747,176 5,716,879 30,297 4,596,006 1,151,170 16,689,399 18,359,875-1,670,476 21,430,744-4,741,345 36,387,132 35,931, ,623 39,429,266-3,042, ,263,160 90,404,399 33,858, ,521,582-2,258,422 2,039,488 2,039,488-1,975,284 64,204 2,039,488 2,039,488-1,975,284 64,204 7,194,162 51,091,075-43,896,913 45,929,067-38,734,905 25,551 10,891 14,660 16,225 9,326 7,219,713 51,101,966-43,882,253 45,945,292-38,725, ,522, ,545,853-10,023, ,442,158-40,919,797 D) ACCRUED INCOME AND PREPAID EXPENSES 8,843,541 1,466,740 7,376,801 14,825,875-5,982,334 TOTAL ASSETS 401,613, ,351,945 39,261, ,819,679-47,205,908 25

27 Balance Sheet Liabilities A) SHAREHOLDERS EQUITY I) SHARE CAPITAL II) ADDITIONAL PAID-IN-CAPITAL IV) LEGAL RESERVE VII) OTHER RESERVES: Treasury shares acquisition reserve VIII) INCOME/(LOSS) CARRIED FORWARD IX) INCOME/(LOSS) FOR THE PERIOD TOTAL SHAREHOLDERS EQUITY (A) 30/09/ /06/2004 Change 30/09/2003 Change 30/09/ /09/ /06/ /09/ ,093,200 12,093,200-12,093,200-10,472,872 10,472,872-10,472,872-2,418,640 2,418,640-2,418,640-50,000,000 50,000,000-50,000,000-5,960,595 24,419,750-18,459,155 24,634,756-18,674,161 (2,982,336) (18,459,155) 15,476,819 (14,909,248) 11,926,912 77,962,971 80,945,307-2,982,336 84,710,220-6,747,249 B) PROVISIONS FOR RISKS AND CHARGES 2) Tax and deferred tax 3) Others TOTAL PROVISIONS FOR RISKS AND CHARGES (B) 20,278,921 22,901,884-2,622,963 27,110,169-6,831,248 1,234, , ,000 6,661,496-5,427,246 21,513,171 23,611,134-2,097,963 33,771,665-12,258,494 C) EMPLOYEES SEVERANCE INDEMNITY PROVISION 2,115,467 2,671, ,586 2,398, , D) PAYABLES 4) Due to banks 6) Advance payments 7) Trade payables 9) Due to subsidiary companies 10) Due to associated companies 11) Due to parent companies 12) Tax payables 13) Due to social security institutions 14) Other payables 15) Due for players sharing costs ex art. 102 bis N.O.I.F. 16) Due to specific sector institutions TOTAL PAYABLES (D) E) ACCRUED EXPENSES AND DEFERRED INCOME 2,829,516-2,829, ,829,511 27,188 18,238 8,950-27,188 33,401,883 28,570,613 4,831,270 33,149, ,427 50,000-50,000-50, , ,648 14, ,042-53,741 7,500 12,432-4,932-7,500 13,312,843 16,508,284-3,195,441 11,981,211 1,331, , , , , ,462 26,628,135 20,200,633 6,427,502 25,610,303 1,017,832 2,930,000 3,244, ,056 2,944,056-14,056 80,667,214 45,059,797 35,607,417 79,578,551 1,088, ,901, ,536,670 46,365, ,076,378 6,825, ,120, ,587,781-1,467, ,862,942-34,742,576 TOTAL LIABILITIES 401,613, ,351,945 39,261, ,819,679-47,205,908

28 Memorandum accounts 30/09/ /06/2004 Change 30/09/2003 Change 30/09/ /09/ /06/ /09/2003 THIRD PARTY GUARANTEES IN FAVOUR OF THIRD PARTIES Risks for guarantees granted 57,288,832 41,177,939 16,110,893 83,068,588-25,779,756 THIRD PARTY GUARANTEES IN OUR FAVOUR Risks for guarantees received from third parties 7,507,260 7,371, ,600 7,485,046 22,214 FORWARD AGREEMENTS - PAYABLES 1,876,877 3,754,635-1,877,758 6,922,730-5,045,853 GUARANTEES RECEIVED 35,301,859 35,301,859-35,301,859 - THIRD PARTY OPTIONS Purchase of players registration rights 11,760,271-11,760,271 23,834,527-12,074,256 OPTIONS GRANTED BY THIRD PARTIES Purchase of players registration rights ,600,000-6,600,000 COMMITMENTS TO PURCHASE PLAYERS REGISTRATION RIGHTS - 21,671,000-21,671, COMMITMENTS TO DISPOSE OF PLAYERS REGISTRATION RIGHTS - 2,368,417-2,368, RENTS-PAYABLES 652, , ,483 THIRD PARTY ASSETS HELD BY THE COMPANY 61,412 61,412-61, COMPANY ASSETS HELD BY THIRD PARTIES 6,080 6,080-1,993,431-1,987,351 TOTAL MEMORANDUM ACCOUNTS 114,455, ,713,002 2,742, ,268,100-50,813,026 27

29 Income Statement Year 2003/ st Quarter 1 st Quarter Change 2004/ /2004 A) PRODUCTION VALUE 17,612,596 1) REVENUES FROM SALES AND SERVICES 2,929,316 4,082,132-1,152,816 5) OTHER REVENUES AND INCOME 910,000 a) Income from temporary transfer of players 106, ,659-95, ,302,975 d) Sponsorship and other revenues 32,831,462 31,495,549 1,335,913 33,125,764 e) Other revenues and income 1,032,202 1,027,940 4, ,951,335 TOTAL PRODUCTION VALUE (A) 36,899,964 36,808,280 91,684 B) PRODUCTION COSTS 2,889,909 6) RAW MATERIALS, SUPPLIES, CONSUMABLES AND GOODS 515, , ,346 24,243,997 7) SERVICES 5,428,792 4,586, ,175 3,889,311 8) LEASES AND RENTALS 471,896 1,047, ,864 9) PERSONNEL: 113,704,050 a) Salaries and wages 30,718,317 28,728,849 1,989,468 2,817,063 b) Social security contributions 772, , , ,703 c) Employees severance indemnity 130,497 91,002 39,495 89,351 e) Other costs 1,704 35,000-33,296 10) AMORTISATION, DEPRECIATION AND WRITE-DOWNS 64,274,145 a) Amortisation of intangible fixed assets 16,852,127 17,653, , ,130 b) Depreciation of tangible fixed assets 312, ,698 88, ,260 d) Write-downs of receivables entered under current assets and cash at bank and in hand - 111, ,301 12) PROVISIONS FOR RISKS - Other risks - 172, ,391 14) OTHER OPERATING EXPENSES 172,906 a) Match organisation expenses 61,675 23,212 38, ,419 b) Official match expenses 16,876 16, ,182 c) Match registration fees ,402,008 d) Others 2,741,501 2,485, , ,507,434 TOTAL PRODUCTION COSTS (B) 58,023,945 56,124,967 1,898, (18,556,099) DIFFERENCE BETWEEN PRODUCTION VALUE AND COSTS (A-B) (21,123,981) (19,316,687) -1,807,294

30 Income Statement Year 2003/ st Quarter 1 st Quarter Change 2004/ /2004 C) FINANCIAL INCOME AND EXPENSES - 15) INVESTMENT INCOME ) OTHER FINANCIAL INCOME 34,475 c) From securities entered under current assets other than equity investments 10,281 5,140 5,141 d) Sundry financial income 70,998 From subsidiary companies 16,478 12,721 3, ,687 From parent companies - 117, , ,522 From others 2,417, ,202 2,305,237 17) INTEREST AND OTHER FINANCIAL EXPENSES 2,785,528 d) From others 720,214 1,828,376-1,108,162 (154,554) 17bis) EXCHANGE GAINS AND LOSSES 2,892 (5,165) 8,057 (2,340,400) TOTAL FINANCIAL INCOME AND EXPENSES ( bis) 1,726,876 (1,585,532) 3,312,408 D) VALUATION ADJUSTMENTS TO FINANCIAL ASSETS - 18) REVALUATION ) WRITE-DOWNS TOTAL VALUATION ADJUSTMENTS TO FINANCIAL ASSETS (18-19) E) EXTRAORDINARY INCOME AND EXPENSES 20) INCOME 5,043,852 a) Capital gains on disposals 20,315,946 4,975,695 15,340, ,006 b) Use of reserve art. 26 of the Company By-Laws ,318 d) Others ) EXPENSES 1,314,812 a) Capital losses on disposals 3,255, ,487 2,336,524 3,121,282 c) Others 106,844 47,142 59, ,082 TOTAL EXTRAORDINARY INCOME AND EXPENSES (20-21) 16,954,091 4,010,066 12,944,025 (19,970,417) INCOME/(LOSS) BEFORE TAXES (A-B±C±D±E) (2,443,014) (16,892,153) 14,449,139 22) INCOME TAXES (5,727,157) 7,238,419 a) Current taxes b) Deferred taxes (1,491,808) (483,510) -1,008, ,486 2,466,415-1,513, (18,459,155) NET INCOME/(LOSS) FOR THE PERIOD (2,982,336) (14,909,248) 11,926,912

31 Statement of Cash Flow /000 Year 1 st Quarter 2003/ /2005 NET FINANCIAL POSITION AT THE BEGINNING OF THE PERIOD 69,173 53,141 Operating activities: Net Income/(loss) Amortisation of players registration rights Other depreciations Cash Flow (Increase)/Decrease in receivables from football clubs Increase/(Decrease) in payables due to football clubs (Increase)/Decrease in other receivables Increase/(Decrease) in other payables Variation in Net Working Capital Increase/(Decrease) of employees severance indemnity fund and other provisions Cash flow provided/(absorbed) by operating activities (18,459) (2,982) 63,929 16,808 1, ,737 14,183 61,178 (17,282) (49,814) 21,670 35,214 (23,953) (26,131) 20,398 20, (12,004) (2,653) 55,180 12,363 Investments: Purchase of players registration rights Disposal of players registration rights Other net investments Cash flow used for investment (49,486) (102,929) 7,313 48,788 (28,824) (4,933) (70,997) (59,074) Capital increase - - Dividends paid - - Other changes in shareholders equity (215) - NET FINANCIAL POSITION AT THE END OF THE PERIOD 53,141 6,430 30

32 Information for shareholders, investors and the press: Relations with Institutional Investors and Financial Analysts telephone fax Relations with the Financial Press Bonaparte 48 telephone Juventus Football Club S.p.A. C.so Galileo Ferraris n Turin telephone fax Photography LaPresse English version David Henderson Printed by Bertello Grafica S.r.l.

33