BOD APPROVES FIGURES FOR THE FIRST HALF OF 2018/2019

Transcription

1 BOD APPROVES FIGURES FOR THE FIRST HALF OF 2018/2019 Turin, 28 February 2019 The Board of Directors of Juventus Football Club S.p.A., chaired by Andrea Agnelli, has approved the Half-Yearly Financial Report at 31 December Financial highlights 1st half-year 2018/ /2018 Amount % Amounts in millions of Euro Revenues % Operating costs % Amortisation, provisions and use of provisions % Operating income (34.0) -66.7% Earnings before tax (34.5) -74.5% Net income/(loss) for the period (35.8) -82.7% BALANCE AT 31/12/ /06/2018 Amount % Amounts in millions of Euro Shareholders Equity % Net financial debt % For a correct interpretation of the half year figures, it should be noted that the financial year of Juventus does not coincide with the calendar year, but runs from 1 July to 30 June, which corresponds to the football season. The economic trend is characterised by a strong seasonal nature, typical of the sector, basically determined by participation in European championships, in particular the UEFA Champions League, by the calendar of sports events and by the two phases of the football player Transfer Campaign. The first half of the 2018/2019 financial year closed with a profit of 7.5 million, posting a negative change of 35.8 million compared to the profit of 43.3 million registered in the same period a year earlier. This negative variation mainly derives from lower revenues from players registration rights, down 17.9 million, increased costs for players and staff, up 38.2 million, higher amortisation and depreciation on players rights, up 24.7 million, increased costs for the acquisition of materials intended for sale, up 6.3 million, increased other expenses, up 2.8 million, increased costs for external services, up 3.3 million, increased current taxes, up 1.5 million, and increased costs for other personnel, up 1.5 million. These changes were partially offset by increased operating revenues, up 57.5 million, and lower expenses from players' registration rights, down 4 million. Other changes concerned lower net financial income, down 0.3 million, increased provisions, up 0.9 million, and other net positive changes, up 0.1 million. Shareholders equity at 31 December 2018 amounted to 79.5 million, registering an increase compared to the balance of 72 million at 30 June 2018, due to the profit of the half year ( +7.5 million). Net financial debt at 31 December 2018 totalled million ( million at 30 June 2018). The increase of 74.5 million was driven by Transfer Campaign outlays ( -119 million, net), investments in other fixed assets ( -3.3 million), investments in shareholdings ( -0.5 million) and cash flow from financing activities ( -3.6 million), effects partially offset by positive cash flow from operations ( million).

2 The breakdown of the current and non-current portion of net financial debt is shown below. Amounts in millions of Euro 31/12/ /06/2018 Current Non-current Total Current Non-current Total Financial assets (a) Cash and cash equivalents Total financial assets Financial payables due to the Istituto per il Credito Sportivo for Stadium loans (6.3) (27.6) (33.9) (6.2) (30.8) (37.0) due to banks (107.7) (78.1) (185.8) (46.1) (136.0) (182.1) due to factoring companies (0.3) (204.5) (204.8) (0.1) (110.0) (110.1) Total financial liabilities (114.3) (310.2) (424.5) (52.4) (276.8) (329.2) Net financial debt (78.2) (306.1) (384.3) (37.1) (272.7) (309.8) % of coverage 20.3% 79.7% 100% 12.0% 88.0% 100% (a) This item is included as it refers to cash deposits pledged in a current account as collateral on the Istituto per il Credito Sportivo loan, recognised under financial payables. As regards the seasonal effect of payments received in advance of their accrual, at 31 December 2018 contractual amounts relating to future financial years have already been received totalling 52.9 million and recognised under the item "Advances received". At 31 December 2018, the Company had bank lines of credit totalling million, of which million revocable, drawn down by a total of million, of which 14 million for guarantees issued in favour of third parties, million for loans, 79.9 million for overdrafts and million for advances on contracts and trade receivables. MAIN SIGNIFICANT EVENTS OF THE FIRST HALF OF 2018/ /2019 Transfer Campaign - first phase The transactions conducted during the first phase of the Transfer Campaign 2018/2019, from 1 July to 17 August 2018 in regard to the Italian market, led to an increase in invested capital of million deriving from acquisitions and increases of million, reclassifications and disposals of 25 million (net book value of disposed rights). The capital gains resulting from disposals amounted to 43.7 million, while revenues from temporary disposals amounted to a further 26.9 million. The total net financial commitment of million is spread over five years, and includes auxiliary expenses and financial income and expenses implicit in deferred receipts and payments. Renewal of adidas technical partnership The agreement with adidas Italy S.p.A. was modified on 21 December 2018 extending its expiry date to 30 June The current agreement, which would expire on 30 June 2021, covered six football seasons starting from 2015/2016. The new agreement will relate to the period starting with season 2019/2020 and cover in total eight football seasons until 2026/2027. During this period adidas will be the technical partner of all Juventus teams for a minimum fixed consideration of 408 million. The consideration does not include additional royalty payments upon exceeding a threshold of sales and sports performance bonuses. With respect to the excellent performance of the commercial partnership and to the increased visibility of the Juventus brand in 2018, adidas recognized an additional bonus of 15 million for 2018, entirely collected in the first half of financial year 2018/2019. The other terms and conditions of the existing contract remain unchanged until the start of the new agreement in season 2019/2020.

3 SIGNIFICANT EVENTS AFTER 31 DECEMBER 2018 The Football Season In January 2019, the First Team won the Italian Super Cup for the eighth time and was eliminated in the quarter finals of the Italian Cup. Transfer Campaign 2018/ second phase The transactions finalised in the second phase of the 2018/2019 Transfer Campaign, held from 3 January to 31 January 2019, led to a total decrease in invested capital of 3.9 million resulting from acquisitions and increases of 15.3 million and disposals of 19.2 million (net book value of disposed rights). The net gains generated by the disposals amounted to 36.8 million, and the net temporary acquisitions expenses came to 0.6 million. The total financial effect generated by these transactions, including auxiliary expenses as well as financial income and expenses implicit on deferred receipts and payments, was positive by 34.5 million, distributed as follows: -1.7 million in the 2018/2019 financial year, 8.7 million in the 2019/2020 financial year, 10.1 million in the 2020/2021 financial year, 10.4 million in the 2021/2022 financial year and 7 million in the 2022/2023 financial year. Non-convertible bond issue A non-convertible bond issue reserved for qualified investors amounting to 175 million, due by 19 February 2024, was placed on 13 February The purpose of the issuance is to provide the Company with financial resources for its general corporate purposes, streamlining the structure and the maturity of the debt. The notes were issued at the price of % and pay a fixed annual coupon of 3.375%. The issue was settled on 19 February 2019 with the listing of the notes on the multilateral trading system (MTF) Global Exchange Market di Euronext Dublin. BUSINESS OUTLOOK The 2018/2019 financial year, currently forecast to end in a loss, will be as usual strongly influenced by the performance of sports results and in particular the UEFA Champions League. *.*.* Pursuant to Article 154 bis (2) of the Consolidated Law on Finance the manager responsible for preparing the Company s financial reports Marco Re declares that the accounting information contained in this press release corresponds to the document results, books and accounting records. PRESS OFFICE CLAUDIO ALBANESE T claudio.albanese@juventus.com INVESTOR RELATIONS MARCO RE T marco.re@juventus.com

4 STATEMENT OF FINANCIAL POSITION Amounts in Euro 31/12/ /06/2018 Non-current assets Players registration rights, net 475,705, ,827, ,878,082 Other intangible assets 33,917,026 33,668, ,427 Intangible assets in progress 1,652,155 1,630,644 21,511 Land and buildings 131,247, ,514,065 (1,266,770) Other tangible assets 27,208,843 28,435,146 (1,226,303) Tangible assets in progress 1,239,974 1,490,953 (250,979) Investments 197, ,682 (84,381) Non-current financial assets 21,033,240 16,190,301 4,842,939 Deferred tax assets 11,634,943 14,660,017 (3,025,074) Receivables due from football clubs for transfer campaigns 60,637,374 42,925,371 17,712,003 Other non-current assets 2,178,589 3,374,626 (1,196,037) Total non-current assets 766,652, ,999, ,653,418 Current assets Inventory 5,639,588 5,420, ,872 Trade receivables 31,688,420 29,281,837 2,406,583 Trade and other receivables from related parties 2,385,256 3,489,837 (1,104,581) Receivables due from football clubs for transfer campaigns 44,067,097 73,985,784 (29,918,687) Other current assets 14,709,314 12,423,613 2,285,701 Current financial assets 12,471,237 11,926, ,853 Cash and cash equivalents 36,057,835 15,335,208 20,722,627 Total current assets 147,018, ,863,379 (4,844,632) Advances paid Non-current advances 20,235,547 13,283,090 6,952,457 Current advances 3,220,280 1,522,549 1,697,731 Advances paid, total 23,455,827 14,805,639 8,650,188 TOTAL ASSETS 937,127, ,668, ,458,974

5 STATEMENT OF FINANCIAL POSITION Amounts in Euro 31/12/ /06/2018 Shareholders Equity Share capital 8,182,133 8,182,133 - Share premium reserve 34,310,104 34,310,104 - Legal reserve 1,636,427 1,636,427 - Cash flow hedge reserve (32,587) - (32,587) Financial asset fair value reserve (147,846) (147,846) - Retained earnings 28,063,253 47,292,072 (19,228,819) Profit/(Loss) for the period 7,464,141 (19,228,819) 26,692,960 Shareholders equity 79,475,625 72,044,071 7,431,554 Non-current liabilities Loans and other financial payables 310,206, ,807,278 33,398,922 Payables due to football clubs for transfer campaigns 62,602,430 63,228,521 (626,091) Deferred tax liabilities 15,594,298 19,343,306 (3,749,008) Other non-current liabilities 16,970,257 4,829,203 12,141,054 Total non-current liabilities 405,373, ,208,308 41,164,877 Current liabilities Loans and other financial payables 114,259,966 52,392,943 61,867,023 Provisions for risks and charges 1,125,768 1,036,568 89,200 Trade payables 41,891,393 30,358,989 11,532,404 Trade and other payables to related parties 449,771 5,984,062 (5,534,291) Payables due to football clubs for transfer campaigns 133,086, ,740,149 21,346,476 Other current liabilities 108,599,754 85,899,470 22,700,284 Total current liabilities 399,413, ,412, ,001,096 Advances received Non-current advances 21,924,194 23,737,700 (1,813,506) Current advances 30,940,775 25,265,822 5,674,953 Advances received, total 52,864,969 49,003,522 3,861,447 TOTAL LIABILITIES 937,127, ,668, ,458,974

6 INCOME STATEMENT Financial year 2017/2018 Amounts in Euro 2018/ ,410,423 Ticket sales 38,263,908 30,282,897 7,981, ,169,142 Television and radio rights and media revenues 124,580, ,406,975 15,173,279 86,896,999 Revenues from sponsorship and advertising 61,419,239 43,318,193 18,101,046 27,796,591 Revenues from sales of products and licences 26,514,360 14,657,176 11,857, ,401,466 Revenues from players registration rights 58,906,842 76,843,656 (17,936,814) 30,995,269 Other revenues 20,532,444 16,081,698 4,450, ,669,890 Total revenues 330,217, ,590,595 39,626,452 (3,464,062) Purchase of materials, supplies and other consumables (3,076,556) (3,148,123) 71,567 (11,469,144) Purchases of products for sale (12,185,722) (5,886,780) (6,298,942) (79,237,236) External services (43,727,162) (40,361,693) (3,365,469) (233,319,806) Staff members (143,078,433) (104,868,836) (38,209,597) (25,683,238) Other personnel (11,091,059) (9,557,093) (1,533,966) (20,107,143) Expenses from players registration rights (6,770,273) (10,738,802) 3,968,529 (9,979,554) Other expenses (6,895,877) (4,117,836) (2,778,041) (383,260,183) Total operating costs (226,825,082) (178,679,163) (48,145,919) (107,954,427) Amortisation and write-downs of players registration rights (78,335,857) (53,582,555) (24,753,302) (12,525,527) Amortisation of other tangible and intangible assets (5,796,509) (6,000,741) 204,232 (2,363,811) Provisions, write-downs and release of funds (2,221,043) (1,278,375) (942,668) (1,434,058) Operating income 17,038,556 51,049,761 (34,011,205) 4,260,740 Financial income 1,715,500 2,182,730 (467,230) (11,963,159) Financial expenses (6,574,118) (6,401,050) (173,068) (886,073) Group s share of results of associates and joint ventures (420,279) (542,737) 122,458 (10,022,550) Income/(loss) before taxes 11,759,659 46,288,704 (34,529,045) (8,820,346) Current taxes (5,019,452) (3,522,117) (1,497,335) (385,923) Deferred taxes 723, , ,526 (19,228,819) PROFIT/(LOSS) FOR THE PERIOD 7,464,141 43,307,995 (35,843,854) (0.019) BASIC AND DILUTED PROFIT/(LOSS) PER SHARE FOR THE PERIOD (0.036) STATEMENT OF COMPREHENSIVE INCOME Financial year 2017/2018 Amounts in Euro 2018/ / /2018 (19,228,819) PROFIT/(LOSS) FOR THE PERIOD 7,464,141 43,307,995 (35,843,854) -Other profits (losses) recognised in cash flow hedge reserve (32,587) - (32,587) Total Other Profits (Losses) which shall be subsequently - reclassified in the income statement, net of the tax effect (32,587) - (32,587) (2,500,903) Other Profits (Losses) recorded in the fair-value reserve for financial Total Other Profits (Losses) which shall not be subsequently (2,500,903) reclassified in the income statement, net of the tax effect (2,500,903) Total other income (loss), net of the fiscal effect (32,587) - (32,587) (21,729,722) TOTAL PROFIT/(LOSS) 7,431,554 43,307,995 (35,876,441)

7 STATEMENT OF CASH FLOWS Financial period 2017/2018 (a) Amounts in Euro 2018/ /2018 (a) (10,022,550) Income/(loss) before taxes 11,759,659 46,288,703 Non-cash items: 120,479,954 amortisation, depreciation and write-downs 84,448,258 59,583,296 3,003,937 employee benefit liability and other provisions 1,468,196 1,932,772 3,145,014 provision for the Long Term Incentive Plan - - (93,925,290) gains on disposal of players registration rights (43,775,814) (74,141,922) (5,488,024) revenues from temporary disposals of players registration rights (13,408,885) (1,843,086) (97) gains on disposal of other fixed assets ,182 losses on disposal of players registration rights 74,919 69,182 9,986,153 expenses from temporary acquisitions of players registration rights 570,388 4,557,989 8,923,937 auxiliary non-capitalised expenses for acquisitions of players registration rights 6,095,553 5,782, losses on disposal of other fixed assets ,073 Group s share of results of associates and joint ventures 420, ,737 (4,260,740) financial income (1,715,500) (2,182,730) 11,963,159 financial expenses 6,574,118 6,401,050 (452,471) in trade receivables and other non-financial activities (11,547,244) (11,489,508) (20,983,966) in trade payables and other non-financial liabilities 12,128,224 (41,131,755) (14,891,685) Income taxes paid 18,980 (7,659,373) (3,049,000) Use of the Employees Severance Indemnity Provision and other funds (1,215,420) (1,361,181) 5,418,894 Net cash from (used in) operating activities 51,895,711 (14,651,763) (157,906,041) Investments in players registration rights (248,193,736) (101,930,884) (45,654,910) Increase (decrease) of payables related to players registration rights 18,204,317 (48,090,282) 114,905,139 Disposals of players registration rights 63,260,314 86,292,621 (18,149,044) (Increase) decrease of receivables related to players registration rights 13,814,129 (2,152,559) (4,498,129) Temporary (acquisitions)/disposals of players registration rights 12,838,497 (2,714,904) (8,923,937) Auxiliary non-capitalised expenses for acquisitions of players registration rights (6,095,553) (5,782,062) (12,682,572) Increase (decrease) of payables for auxiliary expenses on players' registration rights 27,216,835 (15,748,312) (12,408,439) Investments in other fixed assets (3,322,395) (8,444,138) (832,642) Purchases of investments (500,000) (833,300) 58,153 Disposals of other fixed assets - 31,605 60,050 Interest income 4,674 50,140 (146,032,372) Net cash from (used in) investing activities (122,772,918) (99,322,075) 50,000,000 New loans 32,000,000 40,000,000 (25,899,197) Repayment of loans (22,544,389) (7,396,353) 50,000,000 Increase (decrease) of uses of committed lines - 50,000,000 (8,996,333) Increase (decrease) of uses of factoring lines 44,662,823 (26,901,466) (2,728,086) Interest on loans (3,073,788) (1,319,764) (3,713,901) Other interest expenses (2,218,343) (1,758,082) (205,567) Other movements related to financing activities (172,408) (103,687) 58,456,916 Net cash from (used in) financing activities 47,390,995 52,520,648 (82,156,562) Net cash from (used in) the period (23,486,212) (61,453,190) s in cash and bank overdrafts: 81,812,160 Balances at the beginning of the period (344,402) 81,812,161 (344,402) Balances at the end of the period (23,830,614) 20,358,971 (82,156,562) s in cash and bank overdrafts (23,486,212) (61,453,190) Composition of cash and cash equivalents: 15,335,208 Cash and cash equivalents 36,057,835 72,107,740 (15,679,610) Bank overdrafts (59,888,450) (51,748,769) (344,402) Cash and cash equivalents at end of the period (23,830,614) 20,358,971 (a) The items "Temporary (acquisitions)/disposals of players registration rights" and "Auxiliary non-capitalised expenses for acquisitions of players registration rights" were reclassified as cash flows from investment activities.