JUVENTUS Football Club. Six-Monthly Report at 31 December 2007

Transcription

1 SixMonthly Report at 31 December 2007

2 S.p.A. Registered office Corso Galileo Ferraris 32, Turin Share capital fully paid 20,155, 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 translation in English of the report in Italian Relazione semestrale 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 semestrale al 31 dicembre The Italian version of the Relazione semestrale al 31 dicembre 2007 shall prevail upon the English version. This document is available on the Internet at

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4 CONTENTS BOARD OF DIRECTORS, COMMITTEES AND AUDITORS 5 HONOURS AND HISTORY 6 TREND IN OPERATIONS 9 Significant events in the first six months of the 2007/2008 financial year 9 Review of the results for the first six months of the 2007/2008 financial year 15 Significant events after 31 December Business outlook 19 Trend in operations of subsidiary and associated companies 20 INTERIM FINANCIAL STATEMENTS AT 31 DECEMBER 2007 AND NOTES 22 Balance sheet 22 Income statement 24 3 Statement of changes in shareholders equity 25 Cash flow statement 26 Notes to the interim financial statements 27 List of subsidiaries and other significant shareholdings at 31 December CERTIFICATION OF THE SIXMONTHLY REPORT PURSUANT TO ART. 81TER OF THE CONSOB REGULATION NO /99 AND LATER AMENDMENTS AND ADDITIONS 64 REPORT OF THE INDEPENDENT AUDITORS 66 The SixMonthly Report at 31 December 2007 was approved by the Board of Directors on 18 March 2008 and has been subject to limited review by the independent auditors. If not otherwise indicated, the figures are given in Euros.

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6 BOARD OF DIRECTORS, COMMITTEES AND AUDITORS Board of Directors Chairman: Giovanni Cobolli Gigli Chief Executive Officer and General Manager: JeanClaude Blanc Directors: Carlo Barel di Sant Albano (2) Aldo Mazzia (2) (1) (2) Gian Paolo Montali (1) (2) Riccardo Montanaro (1) (2) Marzio Saà (1) (2) Camillo Venesio (1) Independent Director (2) Non Executive Director Audit Committee Marzio Saà (Chairman) Riccardo Montanaro Camillo Venesio Remuneration and Appointments Committee Carlo Barel di Sant Albano (Chairman) Riccardo Montanaro Camillo Venesio Sports Committee Giovanni Cobolli Gigli (Chairman) JeanClaude Blanc Gian Paolo Montali Riccardo Montanaro 5 Board of Statutory Auditors Chairman: Giorgio Giorgi Auditors: Gianluca Ferrero Roberto Longo Deputy Auditors: Gianluca Cristofori Paolo Piccatti Independent Auditors Deloitte & Touche S.p.A. Expiry of mandates The mandates 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 The mandate for the Independent Auditors will expire with the Shareholders Meeting to approve the Financial Statements as of 30 June Powers of company officers Under company Bylaws (art. 21) the Chairman, Vice Chairman and CEO 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 29 June 2006 to confer specific management powers on the Chairman Giovanni Cobolli Gigli and the Chief Executive Officer and General Manager JeanClaude Blanc. The exercise of some of these management powers, for values exceeding certain thresholds, envisages the joint signature of the Chairman and Chief Executive Officer.

7 HONOURS AND HISTORY Founded in 1897 thanks to the idea of a group of young students from the Liceo D Azeglio school in Turin, Juventus won its first Italian championship as early as 1905 after only a few years and the switch to the current black and white strip saw the debut in the team of Giampiero Combi, one of the greatest goalkeepers of all time. Edoardo Agnelli, the son of the founder of Fiat, was elected as the Company s new Chairman, the beginning of a special association that was to last through the years. The number of fans grew rapidly, and in 1925/26 the bianconeri won their second championship, the prelude to a cycle of victories that led them to win 5 championships in a row starting in the 1930/31 season. The Juventus trainer in that period was Carlo Carcano and his team included legendary players like Orsi, Caligaris, Monti, Cesarini, Varglien I and II, Bertolini, Ferrari and Borel II. In this period, the team made a fundamental contribution to the Italian squad which won its first World Cup in The championship victories gave Juventus its first true international experience, participating in the European Cup (now the U.E.F.A. Champions League), and reaching the semifinals on 4 occasions. With Giovanni Agnelli as Chairman from 1947, the team won 2 more championships and Carlo Parola and Giampiero Boniperti marked an era. 6 Under the chairmanship of Umberto Agnelli and with Omar Sivori and John Charles, Juventus won 3 consecutive championships and in 1958 the team was the first Italian team to receive the star for winning 10 Championships. After the championship victory of 1966/67, Juventus began a long and triumphant cycle which coincided with the arrival as Chairman in 1971 of Giampiero Boniperti. The team was lead by trainers with a powerful personality: Vycpalek, Parola and, above all, Giovanni Trapattoni. On the field, alongside great Italian champions like, Zoff, Scirea, Tardelli, Cabrini, Causio, Paolo Rossi, Gentile (the players who formed the backbone of the Italian team that won the World Cup for the third time in 1982), Furino, Anastasi and Roberto Bettega, were many foreign super stars, headed by Michel Platini. In the 1981/82 season Juventus gained its second star after winning its 20 th championship. Juventus, by now a leading team in Italian and international football, became, together with AFC Ajax, the only club to win all the most important international competitions. Other victories followed: the U.E.F.A. Cup and Italian Cup under the trainer Dino Zoff, and the U.E.F.A. Cup again. Juventus recent history is linked to the work of the current management group under the chairmanship of Vittorio Caissotti di Chiusano (1990/2003) and Franzo Grande Stevens (2003/2006) and under the management of Antonio Giraudo, Luciano Moggi and Roberto Bettega. With the First Team trained by Marcello Lippi and Fabio Capello and with the hallmark of champions like Gianluca Vialli and Alessandro Del Piero (the alltime recordholder in the company s history with over 500 matches and more than 200 goals), the team won a further 7 championships (the one for the 2004/2005 season revoked and that

8 of the 2005/2006 season not assigned) and was a leading player on the international scene, playing four UEFA Champions League finals, winning it in 1996, and triumphing in its second Intercontinental Cup. In July 2006 the Italian national team won its fourth World Cup thanks in part to the contribution of 5 Juventus players. In June 2006 the current Board of Directors was appointed with Giovanni Cobolli Gigli as Chairman and JeanClaude Blanc as Chief Executive Officer and General Manager. The sports proceeding against the Company begun in June 2006 was closed in October 2006 with the confirmation of the relegation of the First Team to Serie B (with a penalty of nine points), the revocation of the 28 th championship title won in the 2004/2005 season and the nonassignation of the 29 th championship for the 2005/2006 season. At the end of the 2006/2007 season, the First Team was promoted to Serie A after winning the Serie B championship. As regards company aspects, as of 1994 Juventus, following significant regulatory changes, transformed itself from a sports club to a business adding related projects to its main activity and in December 2001 the Company was listed on the Italian stock market. In recent years work has continued to strengthen the First Team and enhance its brand, through the construction of the new Juventus Center in the municipality of Vinovo (Turin) and the development of programmes and projects for activities linked to its main activity. 7

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10 TREND IN OPERATIONS Significant events in the first six months of the 2007/2008 financial year FOOTBALL SEASON On 11 July 2007 the First Team officially began preparation for the 2007/2008 season in Pinzolo in the province of Trento, where the prechampionship retreat was held. On 3 October 2007 the Primavera team won the Italian Super Cup in its category for the second year in a row. ADMISSION TO THE 2007/2008 PROFESSIONAL CHAMPIONSHIP On 12 July 2007, Co.Vi.So.C., having examined the documentation produced by Juventus Football Club S.p.A. and information provided by the Lega Calcio, gave notification that the Company satisfies the prerequisites demanded for the relevant professional championship for the 2007/2008 season. 2007/2008 TRANSFER CAMPAIGN FIRST PHASE The Transfer Campaign for the 2007/2008 season will be held, as usual, in two phases: the first from 2 9 July to 31 August 2007, the second from 4 January to 31 January In the first phase, the following main operations were completed regarding players registration rights: Definitive acquisitions Player Football club Price IFRS value of rights (incl. expenses) Years of contract Almeida Gomes de Andrade Almiron Sergio Bernardo Cardoso Mendes Tiago Grygera Zdenek Iaquinta Vincenzo Salihamidzic Hasan Deportivo La Coruna Empoli FC S.p.A. Olympique Lyonnais AFC Ajax Udinese Calcio S.p.A. FC Bayern München 10,500 9,000 13,650 11,250 10,220 8,497 14, , Definitive disposals Player Football club Price Price present value Net book value Profit/ (loss) Balzaretti Federico Gasbarroni Andrea Gastaldello Daniele Kapo Olivier Miccoli Fabrizio ACF Fiorentina S.p.A. Parma FC S.p.A. U.C. Sampdoria S.p.A. Birmingham City US Città di Palermo S.p.A. 3,800 1,500 1,250 2,300 4,300 3,588 1,416 1,183 2,300 4, ,939 3, ,183 2,124

11 Termination of playersharing agreements in favour of Juventus Player Football club Previous net book value Price IFRS value of rights Years of contract Gastaldello Daniele Molinaro Cristian Nocerino Antonio Volpe Francesco M. Zammuto Pietro AC Siena S.p.A. AC Siena S.p.A. Piacenza FC S.p.A. Ravenna Calcio Srl SS Sanbenedettese Calcio ,500 3,700 1, ,500 3,785 1, sold 5 5 sold sold Termination of playersharing agreements in favour of other clubs Player Bentivoglio Simone Boudiansky Viktor Football club AC Chievo Verona Srl Ascoli Calcio 1898 S.p.A. Price Price present value Net book value 1 Profit/ (loss) Playersharing disposals 10 Player Blasi Manuele De Ceglie Paolo Guzman Gaetan Tomas Packer Douglas Ricardo Paolucci Michele Paro Matteo Piccolo Felice Rossi Andrea Volpato Rej Volpe Francesco M. Volpe Francesco M. Zalayeta Marcelo Zammuto Pietro Zammuto Pietro Football club SSC Napoli S.p.A. AC Siena S.p.A. Piacenza FC S.p.A. AC Siena S.p.A. Udinese Calcio S.p.A. Genoa CFC S.p.A. Empoli FC S.p.A. AC Siena S.p.A. Empoli FC S.p.A. AS Livorno Calcio Srl Ravenna Calcio Srl SSC Napoli S.p.A. Piacenza FC S.p.A. SS Sanbenedettese Calcio 50% price 2,450 1, ,355 1, , , Price present value 2,326 1, ,287 1, , % net book value 2, Profit/ (loss) 172 1, ,270 1, , Economic and financial effects of the Transfer Campaign The operations completed in the first phase of the 2007/2008 Transfer Campaign entailed an increase in the capital invested of about 44 million, following: Acquisitions Disposals Balance 53,209 (9,174) 44,035 The economic impact in the 2007/2008 financial year related to the profits and losses from the disposals of players registration rights was positive for 16.3 million. The temporary acquisitions and disposals of players registration rights had no economic or financial effect as they were all free of cost. The overall financial effect, including the implicit financial expenses and revenues regarding deferred receipts and payments, was negative for 30.1 million of which: 4.7 million settled through the Lega Nazionale Professionisti;

12 21.7 million settled directly with foreign football clubs; 3.7 million (payment for consultancy services provided by F.I.F.A. sports agents) settled directly. /million 07/08 08/09 09/10 10/11 11/12 LNP Foreign F.C. Agents (4.7) (21.7) (3.7) (30.1) (3.2) (8.0) (2.2) (13.4) (1.4) (10.5) (0.6) (12.5) (0.1) (3.2) (0.5) (3.8) (0.2) (0.2) (0.2) (0.2) Bank guarantees As far as changes in and the situation of guarantees in favour of F.I.G.C. LNP are concerned, regarding the 2007/2008 Transfer Campaign, on 4 July 2007 Banca Sella issued a guarantee to FIGC LNP to guarantee the balance to be paid in the 2009/2010 season of 5.6 million, cancelled later on 7 September As far as the bank guarantees outstanding at 31 December 2007 regarding the international transfers of football players are concerned, for which no compensation system is envisaged as in the case of national transfers, reference should be made to the Notes to the interim financial statements. RENEWALS AND TERMINATIONS OF PLAYING CONTRACTS In the course of the six months, the registration rights for the following players were extended and/or renegotiated: 11 Camoranesi Mauro German, until 30 June 2010; Nedved Pavel, until 30 June 2008; Nocerino Antonio, until 30 June 2012; Del Piero Alessandro, until 30 June 2010; Legrottaglie Nicola, until 30 June In addition, the playing contracts of Giannichedda Giuliano and Tacchinardi Alessio were mutually terminated. It should be remembered that the renewals of the contracts for the players Buffon Gianluigi, Trezeguet David and Molinaro Cristian, signed in the course of the 2006/2007 season, are effective as of 1 July SEASON TICKET CAMPAIGN The Season Ticket Campaign for the 2007/2008 season was concluded on 8 September ,173 season tickets were sold for gross revenues of 6.3 million and net income of 5.4 million. In the 2006/2007 football season a total of 12,716 season tickets were sold for gross revenues of 3.5 million and net income of 3 million.

13 Figures on receipts include additional services with the exception of advance sales. STADIUM PROJECT On 13 July 2007, the Company underwrote the variation on the agreed executive plan (PEC) with the City of Turin regarding the Stadio Delle Alpi area. This planning tool enables to continue plans to enhance the area. CAMPI DI VINOVO S.P.A. The operation to transfer the Campi di Vinovo S.p.A. shares to Costruzioni Generali Gilardi S.p.A. was completed on 2 October 2007 with the receipt on the same date of the first instalment of 1.1 million as envisaged by the relevant agreements. The future instalments are guaranteed by pledges on 3 share certificates for a total of 1,701,026 Campi di Vinovo S.p.A. shares, amounting to 68.04% of the share capital. As of 2 October 2007 Juventus no longer has any shareholding in Campi di Vinovo S.p.A.. On 12 February 2008 Consob requested information from the Company under Article 114, section 5, Legislative Decree no. 58/98. The following information is given pursuant to this request. 12 The receivables deriving from the operation, for a remaining total of 42.4 million, 34.2 million of which from Campi di Vinovo S.p.A. and 8.2 million from Costruzioni Generali Gilardi S.p.A., will be received according to the following contractual agreements: 12.5 million on the date of the beginning of construction work for the commercial park, and in any case no later than 31 December 2008; 12.5 million one year after the date of opening to the public of the commercial park, and in any case no later than 31 December 2012; and 17.4 million two years after the date of opening to the public of the commercial park, and in any case no later than 31 December The receivables have been timediscounted according to the estimate of the probable time schedule of receipts. The total maximum sum for infrastructure expenses concerning the Mondo Juve project, which remain under the contractual responsibility of Juventus, amounted to 19.2 million. A special risk fund for the same amount has been set up, timediscounted according to the estimate of the probable time schedule of payment. The residual sum of receivables and infrastructure expenses has been timediscounted at market rate according to the current estimate of the receipt and payment cash flow linked to implementation of the project, also considering that these flows will proceed at the same rate. As of today, no significant negative effects concerning the residual financial flows are envisaged, in that it is contractually specified that the receivables have a fixed final term of payment and that the infrastructure expenses due to be paid by Juventus have a maximum ceiling of 19.2 million. Juventus maintains the obligation to complete the administrative procedure, actually in the final phase, including design modifications envisaged by the contract.

14 MISCELLANEOUS Proceedings following the tragedy at the Vinovo Training Centre Preliminary hearings were held on 28 January 2008 and 11 March 2008, in the course of which the four defendants requested their position to be define through the plea bargaining procedure as per Art. 444 and ff. of the penal code, after which the injured parties declared, before the judge, that they had been fully compensated. The four defendants were then given a custodial sentence of one year and two months granting the conditional suspension of the sentence. Finally, on 12 March 2008, the judge also closed proceeding against the Chief Executive Officer JeanClaude Blanc. The matter can be considered definitively closed. Shareholders OGM of 26 October 2007 The Juventus Football Club S.p.A. shareholders OGM, held in Turin on 26 October 2007, approved the Financial Statements at 30 June 2007 and voted to cover the negative Net Result of 0.9 million, together with the losses of previous financial years for 27.2 million stemming from the first time application of the IFRS international accounting standards, through the use of the Share Premium Reserve; no dividends were deliberated. Following the resignation of the Director Marco Tardelli, the OGM also reduced the number of members of the Board of Directors from nine to eight and appointed Deloitte & Touche S.p.A. as independent auditors for the financial years from 2007/2008 to 2015/2016. Share price trend and equity turnover 13 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. 60.0% LAFICO S.a.l. 7.5% FREE FLOAT 32.5%

15 Juventus Football Club S.p.A. share price trend and equity turnover /m 20 Equity turnover Official price /3 16/4 25/5 27/6 2/8 7/9 15/10 20/11 26/12 31/1 7/ On 7 March 2008 the official Juventus share price was 0.84 a decrease of 47.2% compared to the value recorded on 7 March 2007 ( 1.59). In the first six months of the 2007/2008 and after 31 December 2007 the share price continued its descent begun in the last months of the previous financial year. The average daily trading in the first six months of the 2007/2008 financial year was 0.4 million. Financial communication and investor relations Juventus Football Club S.p.A. devotes particular attention to relations with Italian and international shareholders, analysts, institutional investors and journalists. In particular, in the first six months of the 2007/2008 financial year: several hundred copies of the Financial Statements and Quarterly Reports, in Italian and English, were distributed, sent on request to shareholders. These publications, press releases and corporate presentations are also available on the Internet site in the Investor Relations section of two institutional meetings with investors and analysts were held, organised by Borsa Italiana S.p.A. (October 2007 and March 2008); frequent contacts were maintained through individual meetings with financial analysts and institutional investors; ample information was provided through the daily, periodical, financial and sports press.

16 Review of the results for the first six months of the 2007/2008 financial year The economic results of the first six months of the 2007/2008 financial year were influenced, as usual, by the seasonal nature of the business. In particular, it should be noted that the main revenue and cost items do not follow the same trend over time and in the single quarters and corresponding quarters of other financial years. The Company s financial and asset trend for the quarter also feels the effect of the seasonal nature of the economic components and some revenue items show nonuniform financial patterns (receipts) with respect to the pertinent economic period. Revenues for the first six months of the 2007/2008 financial year amounted to million, an increase of 5.2% compared to million in the second half of the previous financial year, represented by: Ticket sales Television and radio rights and media revenues Revenues from sponsorship and advertising Revenues from players registration rights Other revenues First Half 2007/2008 6,683 60,000 19,812 16,592 3,744 First Half 2006/2007 3,488 38,391 15,003 38,864 5,766 Change 3,195 21,609 4,809 (22,272) (2,022) 106, ,512 5, Operating Costs for the first six months of the 2007/2008 financial year amounted to 86.3 million, an increase of 21.1% compared to 71.2 million in the corresponding period of the previous financial year, made up of: Purchase of materials, supplies and other consumables External services Players wages and technical staff costs Other personnel Expenses from players registration rights Other expenses First Half 2007/2008 1,392 12,972 56,964 3,162 1,239 10,527 First Half 2006/2007 1,523 13,125 45,371 3,471 3,646 4,088 Change (131) (153) 11,593 (309) (2,407) 6,439 86,256 71,224 15,032 The Amortisation and writedowns of players registration rights in the six months in question came to a total of 13.3 million, an increase compared to 10 million in the first six months of the 2006/2007 financial year, due to the net investments made in the course of the Transfer Campaign, partially compensated by the effects of the extension of the amortisation plans of the registration rights of some players following the early renewal of their contracts. Other non recurrent expenses recorded in the period in question, for 0.6 million, refer to the economic result for the period, temporarily negative also due to the effect of implicit financial revenues and expenses on future financial flows, deriving from the disposal to Costruzioni Generali Gilardi S.p.A. of Campi di Vinovo S.p.A.. For further details, reference should be made to Note 33.

17 The Operating Result for the first six months of the 2007/2008 financial year was positive for 5.8 million, against a positive balance of 20.2 million in the corresponding period of the previous financial year. The Result before taxes for the six months in question was positive for 6.3 million, a decrease compared to the positive balance of 18.9 million at 31 December The Tax effect for the period was negative for 6.1 million, against a negative effect of 3.5 million in the same period of the previous financial year. The Net Result for the first six months of the 2007/2008 financial year was positive for 0.3 million, against the positive balance of 15.4 million in the same period of the previous financial year. Net Shareholders Equity at 31 December 2007 amounted to million, an increase compared to million at 30 June 2007 due to the result for the period. The Net Financial Position at 31 December 2007 was positive for 7.1 million, a decrease compared to the positive balance of 21.7 million at 30 June As far as financial aspects and assets are concerned, the table below gives a summary in the format suggested by CONSOB (recommendation DEM/ of 9 December 2002): 31/12/ /06/ Net financial position/(indebtedness) short term positive/(negative) components midlong term positive/(negative) components 22,899 (15,827) 38,943 (17,194) 7,072 21,749 Variation in cash flow variation in cash at bank and in hand variation in shortterm financial operations (16,169) ,187 (1,075) Debt/Equity ratio n.a. n.a. For further details on the composition of the Net Financial Position, reference should be made to the Notes to the interim financial statements.

18 Significant events after 31 December 2007 FOOTBALL SEASON The First Team was third in the championship after the 28 th game. In January 2008 the club was eliminated from the Tim Cup 2007/2008 in the quarter finals. 2007/2008 TRANSFER CAMPAIGN SECOND PHASE The Transfer Campaign for the 2007/2008 season was held, as usual, in two phases: the first from 2 July to 31 August 2007, the second from 4 January to 31 January In the course of the second phase, the following main operations concerning players registration rights were completed: Definitive acquisitions Player Football club Price IFRS value of rights (incl. expenses) Years of contract Sissoko Mohamed Lamine Liverpool FC 11,000* 10,535 5 *The purchase value may increase by a further maximum of 2 million on achieving given sports performances in the course of the duration of the contract. Definitive disposals 17 Player Football club Price Price present value Net book value Profit/ (loss) Boumsong Jean Alain Olympique Lyonnais 3,000 2,835 2,990 (155) Temporary acquisitions Player Football club Annual cost Stendardo Guglielmo S.S. Lazio S.p.A. 400 Temporary disposals Player Football club Annual revenues Almiron Sergio Bernardo Olivera Da Rosa Ruben Criscito Domenico A.S. Monaco Club Atletico Penarol Genoa CFC free free free As regards the footballer Almiron Sergio Bernardo, it should be noted that the Company has disposed of the option rights for definitive acquisition from the 2008/2009 football season for a sum of 400,000. Economic and financial effects of the Transfer Campaign The operations completed in the first and second phases of the 2007/2008 Transfer Campaign entailed an increase in the capital invested of about 51.8 million, following:

19 Acquisitions Disposals Balance 63,949 (12,194) 51,755 The economic impact in the 2007/2008 financial year related to the profits and losses from the disposals of players registration rights was positive for 16.2 million. The temporary acquisitions and disposals of players registration rights will determine on an annual basis a net negative economic and financial effect for 0.4 million pertinent to the second half of 2007/2008. The overall financial effect, including the implicit financial expenses and revenues regarding deferred receipts and payments, was negative for 39.1 million of which: 5.1 million settled through the Lega Nazionale Professionisti; 29.7 million settled directly with foreign football clubs; 4.3 million (payment for consultancy services provided by F.I.F.A. sports agents) settled directly. 18 /million 07/08 08/09 09/10 10/11 11/12 LNP Foreign F.C. Agents (5.1) (29.7) (4.3) (39.1) (3.6) (11.4) (2.4) (17.4) (1.4) (9.5) (1.0) (11.9) (0.1) (5.5) (0.5) (6.1) (3.3) (0.2) (3.5) (0.2) (0.2) RENEWALS OF PLAYING CONTRACTS After 31 December 2007, the contracts of the following football players were extended and/or renegotiated: Domenico Criscito, until 30 June 2012; Raffaele Palladino, until 30 June 2011; Gianluigi Buffon, until 30 June 2013 (as of the 2008/2009 financial year). MEDIASET GROUP CONTRACTS On 29 January 2008 the Mediaset Group exercised the options rights acquired on 23 December 2005 in the framework of the agreements regarding the transmission, through any distribution platform, the home matches for the Italian Championship, for Italy (encrypted) and for the rest of the world (also free to air), and the television broadcasting of one friendly tournament and other rights. Following the exercise of these options rights, the existing contracts will be extended to the 2009/2010 football season with a sum to be paid to Juventus for this season for a total of 112 million, which will be paid in monthly instalments according to economic pertinence.

20 NEW REGULATIONS ON AUDIOVISUAL RIGHTS AS OF THE 2010/2011 FOOTBALL SEASON On 1 February 2008, Legislative Decree no. 9 of 9 January 2008 concerning the regulation of the ownership and commercialisation of sports audiovisual rights and the related division of resources was published in the Gazzetta Ufficiale no. 27. The law confirms the validity of current contracts until 30 June The Company has undertaken in the framework of the Lega Nazionale Professionisti to collaborate on the definition of the period of transition, which must be defined within 60 days of the law coming into force, as well as the definition, within 120 days, of the guidelines for the commercialisation of audiovisual rights for the definitive period. MISCELLANEOUS On 4 March 2008 the shareholding in Semana S.r.l. was sold to ESE S.p.A., already a shareholder of Semana, for the sum of 100,000. The operation generates a profit of 70,000. As of this date, Juventus is no longer a shareholder of Semana S.r.l.. Business outlook Due to the considerable investments made to strengthen the First Team which generate a significant growth in the related costs, the 2007/2008 financial year will close with a loss. 19

21 Trend in operations of subsidiary and associated companies CAMPI DI VINOVO S.P.A. (69.8% of the share capital; a shareholding sold on 02/10/2007) In the period 1 July October 2007 (the date on which the shares were transferred to Costruzioni Generali Gilardi S.p.A.) the Company conducted no activities. The ordinary general shareholders meeting, held on 25 September 2007, approved the financial statements at 30 June 2007 and voted to cover fully the net loss of 407,000 through the partial use of the Revaluation reserve. On 26 July 2007, executing the option contract underwritten by the shareholders Costruzioni Generali Gilardi S.p.A. (CGG) and Juventus on 31 March 2006, and following the exercise by CGG of the purchase options concerning the Campi di Vinovo shares still held by Juventus, Campi di Vinovo acquired from Juventus the company branch responsible for the contracts and activities related to the creation of the commercial park located in the Municipalities of Vinovo and Nichelino (the Mondo Juve project). 20 The total sum agreed for the disposal of the company branch is 25 million. Following this acquisition, the Company s overall debt to Juventus is 35.1 million and will be paid in the following instalments: 0.9 million on the date of the transfer of the shares from Juventus to CGG, 9.7 million on the date of the beginning of work to construct the Commercial Park and in any case no later than 31 December 2008, 9.7 million at the end of the first year of the opening to the public of the Commercial Park and in any case no later than 31 December 2012, 14.8 million at the end of the second year following the opening to the public of the Commercial Park and in any case no later than 31 December For further details see notes 8, 11 and 33. Furthermore, in the framework of the agreement, Juventus undertakes to cover part of the infrastructure costs for the project for a maximum of 19.2 million. Following the exercise by CGG of its option rights, on 2 October 2007 Juventus transferred to CGG all the Campi di Vinovo shares in its possession, equal to 69.8% of the share capital of Campi di Vinovo. It should be noted that Campi di Vinovo S.p.A. was subject to the direction and coordination of Juventus.

22 SEMANA S.R.L. (30% of the share capital; a shareholding sold on 04/03/2008) As regards the financial situation and assets as per the last financial statements approved on 30 June 2007, the following figures should be noted: 30/06/ /06/2006 Change Value of production 9,639 9, Costs of production (7,901) (8,813) 912 Result before extraordinary items 1, ,193 Financial income/(expenses) Extraordinary income/(expenses) (319) 10 (329) Result before taxes 1, Taxes (490) (232) (258) RESULT FOR THE PERIOD SHAREHOLDERS EQUITY 1, NET FINANCIAL POSITION 797 1,445 (648) In the first six months of the 2007/2008 financial year, Semana S.r.l. continued its operations of management and maintenance of facilities and buildings as described below: 21 custody and maintenance of the Stadio Delle Alpi of Turin; management of the Stadio Olimpico of Turin; Juventus Training Center of Vinovo (TO), football pitches of Nizza Millefonti and Chisola Calcio, as well as the headquarters of Juventus Football Club S.p.A.; Golf Club Royal Park, La Mandria park in Fiano Torinese (TO).

23 INTERIM FINANCIAL STATEMENTS AT 31 DECEMBER 2007 AND NOTES BALANCE SHEET ASSETS Notes 31/12/ /06/2007* Noncurrent assets Players registration rights Other intangible assets Intangible assets in progress Land and buildings Other tangible assets Tangible assets in progress Other investments Other financial assets Deferred tax assets Receivables from specific sector companies related to transfer campaign Other noncurrent assets ,407,940 21,845,505 16,011 19,088,032 3,379,819 1,955, ,308 13,015,112 9,273,953 35,000,369 53,100,113 21,812,165 14,000 19,299,024 3,488,070 1,905,910 30,005 17,222,003 24,278,239 7,076,904 noncurrent assets 188,074, ,226, Current assets Trade receivables Non financial receivables from related parties Receivables from specific sector companies related to transfer campaign Other current assets Current financial assets Cash and cash equivalents ,784,227 1,527,496 42,746,673 12,540, ,912 24,292,471 8,630,666 4,138,010 38,017, ,271 7,000,000 40,460,847 current assets 94,730,832 99,086,801 Assets held for sale 30,000 12,153,513 assets 282,835, ,466,747 * Balances as of 30 June 2007 have been reclassified in some cases to enable the comparison of data.

24 BALANCE SHEET EQUITY AND LIABILITIES Notes 31/12/ /06/2007* Shareholders Equity Share Capital Reserves Income/(loss) for the period ,155,333 95,963, ,227 20,155,333 97,048,258 (927,569) Shareholders equity 116,389, ,276,022 Noncurrent liabilities Provisions for risks and charges Bonds and other financial liabilities Non financial payables due to related parties Payables due to specific sector companies related to transfer campaign Deferred tax liabilities Other noncurrent liabilities ,172,259 15,919, ,025 12,452,190 1,272,515 27,026,163 2,878,207 17,194,480 7,456,139 1,571,715 40,921,845 noncurrent liabilities 74,541,535 70,022,386 Current liabilities 23 Provisions for risks and charges Bonds and other financial liabilities Trade payables Non financial payables due to related parties Payables due to specific sector companies related to transfer campaign Other current liabilities ,463,527 2,233,364 10,033,081 2,032,062 29,013,075 47,129,793 1,517,777 8,908,471 3,563,079 14,490,757 44,688,255 current liabilities 91,904,902 73,168,339 equity and liabilities 282,835, ,466,747 * Balances as of 30 June 2007 have been reclassified in some cases to enable the comparison of data.

25 INCOME STATEMENT Financial year 2006/2007* Notes First half 2007/2008 First half 2006/2007* 7,743,970 92,995,993 34,497,537 41,531,103 9,917,241 Ticket sales Television and radio rights and media revenues Revenues from sponsorship and advertising Revenues from players registration rights Other revenues ,682,896 59,999,793 19,812,027 16,592,291 3,744,081 3,488,120 38,391,338 15,003,227 38,863,705 5,765, ,685,844 revenues 106,831, ,511,896 (3,159,079) (28,400,285) (95,018,696) (7,872,066) (4,526,139) (8,420,421) Purchase of materials, supplies and other consumables External services Players wages and technical staff costs Other personnel Expenses from players registration rights Other costs (1,391,992) (12,971,612) (56,963,882) (3,161,817) (1,239,127) (10,526,700) (1,523,071) (13,124,809) (45,370,937) (3,471,345) (3,645,725) (4,087,589) (147,396,686) operating costs (86,255,130) (71,223,476) (22,764,546) (10,054,944) Amortisation and writedowns of players registration rights Other amortisation, writedowns and provisions Other non recurring revenues and costs (13,294,031) (902,726) (551,935) (10,018,158) (104,670) 24 6,469,668 Operating income 5,827,266 20,165,592 2,830,559 (5,113,819) Financial income Financial expenses ,538,604 (2,035,343) 1,384,173 (2,625,935) 4,186,408 Income/(loss) before taxes 6,330,527 18,923,830 (3,848,013) (1,265,964) Current taxes Deferred taxes (2,309,500) (3,750,800) (1,897,158) (1,649,329) (927,569) Net income/(loss) 270,227 15,377,343 (0,007) ** Earnings per share (basic) Earnings per share (diluted) * Balances for the 2006/2007 financial year have been reclassified in some cases to enable comparison of data. ** The diluted net result is not calculated in the case of losses, in that any diluting effect would lead to an improvement in the earnings per share.

26 STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY Share capital Share premium reserve Legal reserve Treasury share acq. reserve Retained earnings/ (losses) Net income/ (loss) for the period Shareholders equity Balance as at 30/06/ ,093,200 24,472,872 2,418,640 36,000,000 (14,799,037) (45,986,220) 14,199,455 Movements within equity reserve (24,472,872) (9,062,717) (12,450,631) 45,986,220 Expiration of decision to purchase treasury shares 26,937,283 (26,937,283) Capital increase (80,621,332 new ordinary shares at 1.3) 8,062,133 96,745, ,807,732 Capital increase costs (2,654,483) (2,654,483) Deferred tax effect on capital increase costs 850, ,887 Net result for the year (927,569) (927,569) Balance as at 30/06/ ,155, ,879,285 2,418,640 (27,249,668) (927,569) 116,276,022 Movements within equity reserve (28,177,237) 27,249, ,569 Use of deferred tax effect on capital increase costs (156,890) (156,890) 25 Net result for the period 270, ,227 Balance as at 31/12/ ,155,333 93,545,158 2,418, , ,389,359

27 CASH FLOW STATEMENT Notes First half 2007/2008 First half 2006/2007* Net income/(loss) before taxes Noncash items: amortisation, depreciation and writedown provisions release employee benefit liability and other provisions infrastructure expenses provision (Campi di Vinovo operation) gains on disposal of players registration rights gains on disposal of other fixed assets losses on disposal of players registration rights financial income financial expenses Change in trade receivables and other nonfinancial activities Change in trade payables and other nonfinancial liabilities Income taxes paid Utilisation in employee benefit liability and other provisions 6,330,527 13,870,757 2,353,507 15,095,000 (16,592,290) (1,693) 261,185 (2,538,604) 2,035,343 (4,574,572) (12,339,719) (1,068,617) (1,364,929) 18,923,830 10,371,580 (271,181) 761,639 (37,682,946) (1,360) 1,044,700 (1,384,173) 2,625,935 2,185,742 (13,764,286) (3,217,019) (1,012,064) Net cash from/(used in) operating activities 1,465,895 (21,419,603) 26 Investments in players registration rights Increase/(decrease) of payables related to players registration rights Disposals of players registration rights (Increase)/decrease of receivables related to players registration rights Investments in other fixed assets Disposals of other fixed assets (Increase)/decrease of receivables related to disposals of other fixed asset (Campi di Vinovo operation) Interest income Dividends received Other changes linked to investments (53,393,600) 18,110,762 25,122,848 12,009,671 (344,475) 3,333 (17,764,208) 514, , (11,171,983) (26,602,281) 86,036,940 (47,659,750) (17,097,195) 2,625 23,960 90,000 Net cash from/(used in) investing activities (15,456,072) (16,377,684) Financial leasing repayments Interest on financial leasing Other interest expenses Other movements related to the financial activities (623,299) (580,540) (523) (973,837) (2,620,913) (450,284) (1,585,099) 16,180 Net cash from/(used in) financing activities (2,178,199) (4,640,116) Net cash from/(used in) the period (16,168,376) (42,437,403) Cash and bank overdrafts at the beginning of the period Cash and bank overdrafts at the end of the period ,460,847 24,292,471 (14,725,657) (57,163,060) Changes in cash and bank overdrafts (16,168,376) (42,437,403) Components of cash and bank overdrafts at the end of the period 24,292,471 (57,163,060) Cash and cash equivalents 13 24,292, ,974 Bank overdrafts (57,546,034) * The balances regarding the first six months of 2006/2007 have been reclassified in some cases to enable comparison of data.

28 Notes to the interim financial statements GENERAL INFORMATION ON THE COMPANY Juventus Football Club S.p.A. (hereafter Juventus) is a legal entity organised according to the law of the Italian Republic. The Company s headquarters are in Corso Galileo Ferraris no. 32, Turin, Italy. Juventus operates in the sector of professional football and is controlled by IFIL Investments S.p.A., a company listed on the Borsa Italiana with headquarters in Corso Matteotti no. 26, Turin, Italy, which holds 60% of company capital. It should be remembered that the latter is controlled by Giovanni Agnelli e C. S.a.p.az.. The Company s core business is participation in national and international competitions and the organisation of matches. The Company s main sources of revenues stem from the economic exploitation of sports events, of the Juventus brand and of the image of the First Team, among which the most significant are the licensing of television and media rights, sponsorship and the selling of advertising space. Juventus Football Club S.p.A. is not subject to control or coordination by other companies or bodies. Juventus shares are listed on the Star segment of the Mercato Telematico Azionario of Borsa Italiana. GENERAL PRINCIPLES FOR PREPARING THE INTERIM FINANCIAL STATEMENTS (IAS 34) 27 The interim financial statements at 31 December 2007 have been drawn up in observance of Art. 81 of Consob Regulation no of 14/05/1999 and later amendments and in conformity with IAS 34 Interim financial statements. The accounting principles and criteria used to draw up this report are the same as those used in preparing the annual report at 30 June The interim financial statements at 31 December 2007 also apply the Consob regulations contained in decisions and and notification of 28 July 2006, applying Art. 9, section 3, of legislative decree no. 38 of 28 February Current and deferred income taxes are recorded on the basis of the estimates expected for the entire financial year. FORMAT OF THE INTERIM FINANCIAL STATEMENTS AND OTHER INFORMATION In the balance sheet the distinction current/non current has been adopted as the method of representing assets and liabilities, as specified by IAS 1. For the income statement the approach that envisages the classification by nature of revenues and costs has been adopted, giving priority to the illustration of information regarding players registration rights, an item characteristic of Juventus operations. The statement of changes in shareholders equity, when necessary, highlights in a specific section the

29 recognised income and expenses recorded directly in equity. The cash flow statement is prepared with the indirect method, reconciliating the balances of cash and bank overdrafts available at the beginning and end of the interim period. The pretax result is adjusted by the effects of noncash items, by any deferment or provisions of previous or future receipts of operational payments, and by net cash deriving from or (used in) investment or financing activities. The closing date of the financial year, which lasts 12 months, is 30 June each year. The Euro is the Company s functional currency and the one used for presentation. Significant events in the first six months of the 2007/2008 financial year and significant events after 31 December 2007, as well as the business outlook are highlighted in the Trend in Operations, to which reference should be made. OPERATIONS WITH RELATED PARTIES, ATYPICAL AND/OR UNUSUAL OPERATIONS AND NON RECURRING SIGNIFICANT EVENTS AND OPERATIONS The balances of the balance sheet and the income statement originating from operations with related parties are highlighted separately in the financial statements, if significant, and are commented in Note Apart from what is indicated in Note 42 and Note 33, there are no significant non recurring operations, nor significant atypical or unusual transactions to be noted pursuant to Consob notification of 28 July SIGNIFICANT ACCOUNTING PRINCIPLES General principle The interim financial statements of Juventus are drawn up on the basis of the historical cost, except in the cases, described specifically in the following notes, for which the fair value is applied and is presented, except where specified otherwise, in Euros. The Notes to the interim financial statements are generally presented in thousands of Euros. Players registration rights These are intangible assets with a defined useful life equivalent to the duration of the players contracts. Players registration rights are recorded at cost, based on their net present value, including any additional costs. Players registration rights are amortised on a straightline basis according to the length of the contracts stipulated by the Company with each player. The original amortisation plan may be extended following the early renewal of the contract, starting from the same season in which it is renewed. For youth players registered as giovani di serie, the amortisation of the cost is over five years on a straightline basis. Players registration rights are recordered at the date of execution approved for the related contract by the Lega Nazionale Professionisti, for Italian transfers, and on the date of the transfer issued by the Federazione Italiana Giuoco Calcio, for international transfers.

30 Players in active and in passive sharing agreements ex art. 102 bis of the N.O.I.F. (Norme Organizzative Interne Federali issued by the Federazione Italiana Giuoco Calcio F.I.G.C.) are also recorded among players registration rights. Players in active sharing agreements, which represent the simultaneous reacquisition of 50% of registration rights of the players transferred, are recorded at the adjusted cost and are amortised net of any residual value estimated at the end of its useful life. In the event that the residual value is equal to or higher than the historic value recorded, the amortisation is zero. The adjusted cost is the lower of the cost borne according to the legal format agreed between the parties and the actual value of reacquisition. Players in active sharing agreements, which represent 50% of the value at which the player sharing rights were sold, are recorded at nominal value, in reduction of the registration rights cost of the player for which sharing rights have been disposed, in order to represent the acquisition actually made. Due to this, the amortisation of the registration right disposed related to the player sharing agreement is calculated on the lower cost thus determined. In the presence of indicators of impairment of players registration rights, an evaluation is made for purposes of the impairment test that takes into account the following factors: direct evaluation and analysis by the Company directors who, at their discretion, may be assisted by an external expert to support them in identifying the objective parameters to be used for the valuation of players registration rights (e.g. role and age of the player, analysis of the values of players transfers in the most recent transfer campaigns, call up to the national team, etc.); 29 identification of the individual player s registration rights as CashGenerating Units, without the possibility of making compensations with any revaluations that could emerge from the valuation illustrated in the previous point; this is because it is held that the first impairment indicator can occur for each individual registration right; execution of a possible additional test of the recoverability of the investment through the analysis of other factors linked to the team as a whole; this makes it possible to also consider the fact that there could be a loss of value even when there are no impairment indicators (or impairment loss) at the level of the individual registration right. Other intangible assets Other intangible assets acquired or produced internally are recorded as assets, as specified in IAS 38 ( Intangible assets ), when they can be controlled by the company and if it is likely that they will generate future economic benefits and when their cost can be reliably measured. Revaluations are not permitted even in the presence of specific laws. These assets are valued at the purchase and/or production cost and, if they have a defined useful life, are amortised on a straightline basis, according to the estimate of the period in which the assets will be used by the Company. Intangible assets with an undefined useful life are not amortised, but are subject annually, or, more frequently, every time there is an indication that the asset may have lost value, to verification of possible impairment. When, later, an impairment loss no longer exists or is reduced, the book value of the asset is increased up to the new estimate of the recoverable value but may not exceed