ANALYST PRESENTATION WEDNESDAY, 27 FEBRUARY 2002

Transcription

1 ANALYST PRESENTATION WEDNESDAY, 27 FEBRUARY 2002

2 DISCLAIMER This document has been prepared by Juventus F.C. S.p.A. solely for use at the analysts presentation organised by Borsa Italiana S.p.A. and held on Wednesday, 27 February The information contained in this document has not been independently verified and no representation or warranty is expressed or implied, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Some parts of this presentation contain forward-looking statements which are estimates, subject to risks and uncertainties that could cause actual future results to differ materially. The Company shall not have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute an invitation to purchase any shares. Any decision to purchase shares should be made solely on the basis of the information contained in the official documents (Financial Statements and Quarterly Reports) published by the Company. 2

3 AGENDA OPENING REMARKS PRESENTATION Q & A SESSION 3

4 OPENING REMARKS (BANCA IMI)

5 JUVENTUS ATTENDEES Antonio Giraudo CHIEF EXECUTIVE OFFICER Fabrizio Prete CHIEF FINANCIAL OFFICER 5

6 TABLE OF CONTENTS IPO RESULTS AND SHARE PRICE TREND Q2 RESULTS AT 31 DECEMBER 2001 KEY ISSUES STRATEGY AND PROJECTS OPPORTUNITIES SOCIAL COMMITMENT 6

7 IPO RESULTS AND SHARE PRICE TREND

8 IPO RESULTS Global Offering: 38,700,000 shares Shares were allotted as follows: 26,458,500 shares to the general public 18,046,500 shares to Institutional Investors 44,505,000 Applications: 51,484,319 shares applied for by 41,112 applicants, of which 101 institutional investors Shares allotted: 44,505,000 shares 16,930,210 shares having been newly issued 21,769,790 shares having been offered for sale the selling cvcvcvcvcv shareholders 5,805,000 shares arising from the over-allotment option 44,505, % 40.5% Retail Institutional Investors 8

9 20 DEC FEB SHARE PRICE TREND JUVENTUS JUVENTUS vs MIBTEL 4.2 Price / Equity turnover X100, December 2001 = MIBTEL Dec. 15 Jan. 31 Jan. 21 Feb JUVE Dec. 15 Jan. 31 Jan. 21 Feb. 9

10 Q2 RESULTS AT 31 DECEMBER 2001

11 Q2 RESULTS AT 31 DECEMBER First-half results Financial Year (in m) First Half First Half Change absolute Total revenues Ebitda (2.1) Profit before extra items and taxes Net income Operating activities and players management Financial Year (in m) First Half First Half Operating activities Players management Total Operating activities Players management Total revenues Ebitda (2.1) - (2.1) (8.7) 9.0 Profit before extra items and taxes (9.4) Net income Total Operating activities Players management Total 11

12 Q2 RESULTS AT 31 DECEMBER 2001 Quarterly results (in m) Second Quarter 01/10/01-31/12/01 First Quarter 01/07/01-30/09/01 Second Quarter 01/10/00-31/12/00 First Quarter 01/07/00-30/09/00 Total revenues Ebitda 3.8 (5.9) 20.0 (8.7) Profit before extra items and taxes (14.9) Net Income (19.5) Financial highlights (in m) 31/12/01 (a) 30/06/01 (b) Change (a-b) 30/09/01 (c) Change (a-c) Net invested capital 60.5 (35.1) Net Cash Shareholders equity

13 KEY ISSUES

14 SEASON TICKETS 35,703 season tickets have been sold for the season 36,000 35,446 35,703 35,500 35,000 34,500 34,284 34,000 33, Total net revenue, including additional services, comes to about 6.9 m, approx.. in line with 6.8 m on the previous season (about +2%) 14

15 CHAMPIONS LEAGUE REVENUES Broadcasting rights and sponsorship are managed by UEFA Participating clubs were allotted some 75% of total proceeds which totalled about SFR 1,006m (about( 666 m) in The market pool (SFR 70m - 46 m - for Italian clubs in ) is shared among clubs on the following basis: 50%: ranking in the Serie A championship in the previous year and number of teams qualified for the first round; 50%: number of matches played by a single team vs. total number of matches played by Italian teams Juventus Revenues ( m) Champions League round Participation bonus (1) Match bonus (2) Performance bonus (3) MKT pool 50% 50% Total revenues Total revenues First group stage (4) 1.8 (4) 4.2 (4) Second group stage no yes as in first group stage Quarter final no yes no Semi final no yes no Final no yes no Champions League winner no yes no (4) (5) 21.0 (6) (1) Fixed bonus amounting to SFR 2.5m one-off (2) Fixed bonus for each match; its amount varies according to the different rounds (3) Variable bonus for each match in the first two rounds (SFR 500,000 for each win, SFR 250,000 for each draw) (4) Paid in June 2001 (5) Not considering the amount which will be paid in June 2002 on final balance and which is related to MKT pool (6) At present (3 games out of 6 games of the second group stage) Juventus should have already earned approx. 21 m. The difference between this amount and what has been already accounted, will be posted in Q3 and Q4. 15

16 FROM TECHNICAL SPONSORSHIP TO GLOBAL PARTNERSHIP YEARS ROBE DI KAPPA TECHNICAL SPONSORSHIP YEARS LOTTO YEARS (*) TECHNICAL SPONSORSHIP (MINIMUM GUARANTEED AMOUNTS) LICENSING (MINIMUM GUARANTEED AMOUNTS + ROYALTIES) NIKE GLOBAL PARTNERSHIP: TECHNICAL SPONSORSHIP (MINIMUM GUARANTEED AMOUNTS) GLOBAL LICENSING ACTIVITIES - PRODUCTS (ROYALTIES) GLOBAL LICENSING ACTIVITIES - SERVICES AND RETAIL OPERATIONS (ROYALTIES) (**) (**) (**) 3.6X 1.3X vs Lotto 4.7X vs Kappa (*) Nike has the right to terminate the contract at the end of each three year period if the Nike Group were to find itself in seriously adverse business conditions (**) Considering only minimum guaranteed amounts + products supply + footballs sponsorship (i.e. Select and Mondo sponsorships during / 16

17 NIKE vs LOTTO AGREEMENT Global Partnership Technical Sponsorship DURATION 12 years (*) 3 years MINIMUM GUARANTEED ROYALTIES yes yes yes yes PERFORMANCE BONUSES 10%-12%-14% on the net revenues deriving from the sale of Juventusbrand products in any given year 50% on the net profits in any given year deriving from the sale of Juventus-brand services and retail operations yes 10% on the net revenues deriving from the sale of Juventus-brand products in any given year no (*) Nike has the right to terminate the contract at the end of each three year period if the Nike Group were to find itself in seriously adverse business conditions 17

18 THE ALLIANCE WITH NIKE + AGREEMENT DURATION CONSIDERATION Innovative and global partnership which combines the brand strength and the huge fan-base of Juventus with the expertise of Nike in various products/services areas 1 July June 2015 (*) Total Minimum guaranteed m Products supply m (wholesale value) TOTAL (for the three year period) 43.5 (**) ROYALTIES 10%-12%-14% on the net revenues deriving from the sale of Juventusbrand products in any given year 50% on the net profits in any given year deriving from the sale of Juventusbrand services and from retail operations PERFORMANCE BONUSES Max m (*) Nike has the right to terminate the contract at the end of each three year period if the Nike Group were to find itself in seriously adverse business conditions 18

19 EFFECTIVE PLAYERS MANAGEMENT TRANSFER CAMPAIGN Players trading in January 2002: - Acquisition of Davide Baiocco from Perugia A.C. - Disposal of Fabian O Neill to Perugia A.C. - Free loan of Athirson to Flamengo - Termination with mutual consent of the contract with Juan Eduardo Esnaider January 2002 Summer January 2002 P&L IMPACT CASH IN/(OUT) P&L IMPACT CASH IN/(OUT) Income/(loss) from disposal of players registration rights m m (7.3) Purchases (7.2) Disposals 2.6 Income/(loss) from disposal of players registration rights m m Purchases (215.4) Disposals (4.6) (55.5) Players sharing - - Players sharing (2.2) 7.8 TOTAL (7.3) (4.6) TOTAL (47.7) 19

20 EFFECTIVE PLAYERS MANAGEMENT January 2002 transfer campaign: Positive impacts on , and P&L Impact 2nd half Impact Impact Income/(loss) on disposals (7.3) amortisations (1) players registration rights sold amortisations players registration rights purchased (1.5) (1.5) (1.5) (6.4) 3.4 These impacts would improve considering also the net savings on wages 1.1 (1) Positive figures mean less amortisations 20

21 THE PLAYERS VALUE Potential unrealised income from players trading NET PLAYERS REGISTRATION RIGHTS INSURED VALUE 31/12/2001A 30/06/2002E First Team (1) Youth Series (1) (1) (1) Excluding additional charges and fees eventually payable in the second half of the 2001/2002 season 21

22 STRATEGY AND PROJECTS

23 MISSION - OBJECTIVES - STRATEGY MISSION Maintain excellent sporting results Increase profitability and shareholders value OBJECTIVES Maintaining a highly skilled team Further spreading Juventus brand name to fully exploit it through sponsorship and licensing agreements STRATEGY Focus on youth sector; effective players management Enlarge supporter base outside Europe; further develop advertising and promotional area; strengthen commercial and licensing activities Diversifying our revenue stream aiming at further increasing and stabilising our profitability Stadio Delle Alpi and Mondo Juve Projects 23

24 LEVERAGING BRAND POTENTIAL STRENGTHEN COMMERCIAL AND LICENSING ACTIVITIES PARTNERSHIP WITH NIKE HOLOGRAM PROGRAM (FIGHT COUNTERFEIT PRODUCTS) 24

25 DELLE ALPI PROJECT - updating Restructuring of the stadium and development of commercial areas: ENHANCING GATE RECEIPTS AND GIVING A STEADY STREAM OF RENTAL REVENUES Torino Calcio A.C. no longer interested in acquiring Delle Alpi Stadium Juventus will develop the project with financial/industrial partners Negotiations still under way between Turin Municipality and Juventus By April/May 2002 we expect to reach an agreement Once the acquisition is completed Juventus will look for financial/industrial partners 25

26 MONDO JUVE PROJECT - updating Development of a training centre and leisure and retail facilities New zoning and redevelopment plans approved by Vinovo and Nichelino Municipalities Project presented to the Piedmont Region for examination Once final green light is obtained Juventus will look for financial/industrial partners THE TIMING OF THE PROJECT SHOULD BE IN LINE WITH THE FORECAST: BEGINNING BY THE END OF

27 OPPORTUNITIES

28 OPPORTUNITIES SECTOR OPPORTUNITIES IMPACTS ON P&L Changes to Italian mutuality principles Tax reform: -IRPEF -IRPEG -IRAP Fight against counterfeit Pay-Tv and PPV smart cards Prevention against infringement of brand image and trademarks New format of players contracts Other operating costs Labour cost (players wages) Tax burden Revenues Revenues Labour cost (players wages) Abolition of team collective bonuses Labour cost (players wages) Introduction by Italian Lega of new parameters 28

29 SOCIAL COMMITMENT

30 SOCIAL COMMITMENT THE COMMITMENT CONTINUES.. Juventus and its players are directly involved in many initiatives of solidarity such as Un Sogno per il Gaslini project: Renovation of an abbey inside Gaslini Hospital in Genoa and creation of a school, playrooms and meeting areas dedicated to long-recovering children and their families What has been done to collect funds? photographic book and T-shirt calendar and T-shirt What will be done in next months? World Cup 2002 photographic book April 2002 Television Event Renovation starting on. March

31 APPENDIX

32 Q2 RESULTS AT 31 DECEMBER 2001 RECLASSIFIED INCOME STATEMENT Financial Year (in m) First Half First Half Change absolute Change % Revenues % (100.5) Labour cost (61.9) (45.1) % (46.1) Other operating costs (25.0) (20.5) % 24.5 Ebitda (2.1) n.m. (6.9) Provisions/other amortisation (7.7) (1.9) +5.8 n.m (37.0) Income on disposal of Players registration rights and sharing Amortisations n.m. (34.3) (18.7) n.m. Income on disposal of Players (10.7) registration rights less amortisation n.m. 2.1 Net financial proceeds % 9.0 Profit before extra items and taxes n.m. 1.7 Extraordinary items (5.4) n.m. (4.9) Income taxes (35.3) (7.8) n.m. 5.8 Net income n.m. 32

33 Q2 RESULTS AT 31 DECEMBER 2001 BALANCE SHEET (in m) 31/12/ /06/2001 Change Total fixed assets Players registration rights Other assets Working capital (182.2) (170.9) Provisions and funds (45.9) (5.8) Net capital employed 60.5 (35.1) Shareholders equity Net financial position (70.4) (67.6) -2.8 Net equity and net financial position 60.5 (35.1)

34 Q2 RESULTS AT 31 DECEMBER 2001 CASH FLOW STATEMENT (in m) Financial Year 2000/2001 First Half 2001/2002 Net cash at the beginning of the period Cash flow Change in working capital (0.1) 11.2 Change in funds (1.0) 40.1 Cash flow by operating activities Cash flow by investment activities (68.2) (181.8) Dividends (1.1) (1.1) Other changes in shareholders equity (0.5) 62.3 Net cash at the end of the period