JUVENTUS Football Club. Six-Monthly Report at 31 December 2006

Transcription

1 SixMonthly Report at 31 December 2006

2 S.p.A. Registered office Corso Galileo Ferraris 32, Turin 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 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 2006 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 4 TREND IN OPERATIONS 6 Significant events in the first six months of the 2006/2007 financial year 7 Review of results for the first six months of the 2006/2007 financial year 13 Significant events after the closure of the first six months of the 2006/2007 financial year 15 3 Business outlook 18 Trend in operations of the subsidiary company Campi di Vinovo S.p.A. 19 FINANCIAL STATEMENTS AT 31 DECEMBER 2006 AND NOTES 20 Balance sheet 20 Income statement 22 Statement of changes in shareholders equity 23 Statement of cash flow 24 Notes 25 LIST OF SUBSIDIARIES AND OTHER SIGNIFICANT SHAREHOLDINGS AT 31 DECEMBER REPORT OF THE INDEPENDENT AUDITORS 44 FINANCIAL COMMUNICATION AND INVESTOR RELATIONS 46 The SixMonthly Report at 31 December 2006 was approved by the Board of Directors on 27 March 2007 and has been subject to limited review by the independent auditors. If not otherwise indicated, the figures are given in Euros.

5 BOARD OF DIRECTORS, COMMITTEES AND AUDITORS

6 Board of Directors Chairman: Giovanni Cobolli Gigli Chief Executive Officer and General Manager: JeanClaude Blanc Directors: Carlo Barel di Sant Albano (2) (2) (3) Aldo Mazzia (1) Independent Director (2) Non Executive Director (3) Coopted on 13 November 2006 Audit Committee Marzio Saà (Chairman) Riccardo Montanaro Marco Tardelli (1) (2) Gian Paolo Montali (1) (2) Riccardo Montanaro (1) (2) Marzio Saà (1) (2) Marco Tardelli (1) (2) 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 Marco Tardelli 5 Board of Statutory Auditors Chairman: Giorgio Giorgi Auditors: Gianluca Ferrero Roberto Longo Deputy auditors: Gianluca Cristofori Paolo Piccatti Independent Auditors PricewaterhouseCoopers 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 TREND IN OPERATIONS

8 Significant events in the first six months of 2006/2007 financial year SPORTS PROCEEDINGS REGARDING THE COMPANY On 14 July 2006 the CAF (Federal Appeal Commission) filed its sentence in the sports proceedings against the Company, which started with the disciplinary charges of 22 June 2006, specifying the penalties for Juventus: relegation to last place in the 2005/2006 championship; penalty of 30 points in the league table in the 2006/2007 season, revocation of the title as champion of Italy 2004/2005; non assignation of the title as champion of Italy 2005/2006, fine of 80,000. The Company thus presented its appeal to the Corte Federale. On 25 July 2006 the Corte Federale delivered its decision: penalty of 17 points for the company Juventus with reference to the 2006/2007 football season, disqualification of the football ground for 3 home championship matches, and a fine of 120,000, confirming the other sanctions for the 2004/2005 and 2005/2006 football seasons pronounced in the CAF ruling appealed (that of 14 July 2006). On 2 August 2006 the Company presented a conciliation application to the CONI Camera di Conciliazione e Arbitrato per lo Sport requesting the annulment of the rulings of the CAF of 14 July 2006 and the Corte Federale of 25 July 2006 and the revocation of the sentences imposed. As a secondary option, the Company requested the application of any other equitable solution advanced by the CONI authority. The conciliation meeting was held on 18 August 2006 and produced no positive result despite the willingness to conciliate demonstrated by Juventus. 7 On 21 August 2006 the Board of Directors voted to appeal to the Tribunale Amministrativo Regionale of Lazio requesting the annulment of the decisions of the CAF of 14 July 2006 and the Corte Federale of 25 July 2006, the revocation of the sanctions applied and, as a cautionary measure, the immediate suspension of these sanctions. Following the presentation of the appeal, CONI and FIGC showed their willingness to proceed within the framework of sports justice bodies. Taking into consideration this opening, as well as a new evaluation of the prospect of obtaining a suspension of the penalties, on 31 August 2006 the Company s Board of Directors voted unanimously to withdraw its appeal to the TAR and present an urgent application for arbitrage to the Camera di Conciliazione e Arbitrato of CONI. On 6 September 2006, the Company thus presented its application for arbitrage asking for a reduction of the penalties imposed, amongst other issues. On the same date, the Camera di Conciliazione e Arbitrato per lo Sport suspended the penalty of the disqualification of the home ground. On 27 October 2006, at the end of the proceedings, the Camera di Conciliazione ed Arbitrato of CONI confirmed the relegation to Serie B, the fine of 120,000 and reduced the penalty for the Company in terms of the points deducted in the current Serie B Championship from 17 points to 9 points. Furthermore, the same Camera Arbitrale applied an additional fine, substituting the disqualification of

9 the home ground (a penalty suspended as a precautionary measure), for a sum equal to the receipts for the first three home matches, a total of 194,450. ADMISSION TO THE 2006/2007 PROFESSIONAL CHAMPIONSHIP On 8 July 2006, Co.Vi.So.C., having examined the documentation produced by Juventus Football Club S.p.A. and information provided by the Lega Calcio, confirmed that the Company meets the prerequisites for admission to the pertinent professional championship for the 2006/2007 season. RENEWAL OF PLAYERS CONTRACTS In the course of the period in question, the contracts for the following football players were extended: 8 Chiellini Giorgio, until 30 June 2011; Guzman Gaetan Tomas Andres, until 30 June 2010; Kovac Robert, until 30 June 2009; Marchisio Claudio, until 30 June 2011; Miccoli Fabrizio, until 30 June 2010; Mirante Antonio, until 30 June 2011; Paro Matteo, until 30 June 2010; Piccolo Felice, until 30 June These operations entailed the extension of the amortisation plans for the registration rights of the individual players, with a positive effect on the 2006/2007 financial year (in terms of lower amortisation) for about 2.3 million ( 1 million in the first six months). 2006/2007 SEASON TICKET CAMPAIGN 12,716 season tickets have been sold for the 2006/2007 football season for gross revenues of 3.5 million and net income of 3 million, against 23,073 season tickets in the 2005/2006 season (gross revenues 6.4 million and net income of 5.5 million). The figures for receipts include additional services with the exception of advance sales rights. The 2006/2007 season ticket campaign felt the impact of the lower capacity of the Stadio Olimpico and the promotional campaign in terms of prices adopted due to the relegation to Serie B. 2006/2007 TRANSFER CAMPAIGN First team trainer Following the resignation of the trainer Fabio Capello, on 10 July 2006 Juventus underwrote a twoyear contract valid until 30 June 2008 with the trainer Didier Deschamps. First phase In the 2006/2007 season, the Transfer Campaign was held, as usual, in two phases: the first from 1 July

10 to 31 August 2006, the second from 4 January to 31 January In the course of the first phase, Juventus Football Club S.p.A. completed the following main operations regarding players registration rights: /000 Definitive acquisitions Player Football Club Price IFRS valuation of rights (including expenses) Years of contract Boumsong Jean Alain Marchionni Marco Zanetti Cristiano Newcastle United Parma F.C. S.p.A. F.C. Internazionale S.p.A. 4,750 4, Definitive disposals Player Football Club Price IFRS valuation of rights Net book value Profit/ (loss) Cannavaro Fabio Ferreira da Rosa Emerson Ibrahimovic Zlatan Mutu Adrian Thuram Lilian Vieira Patrick Zambrotta Gianluca Real Madrid CF Real Madrid CF F.C. Internazionale Milano ACF Fiorentina S.p.A. F.C. Barcelona F.C. Internazionale Milano F.C. Barcelona 7,000 16,000 24,750 8,000 5,000 9,500 14,000 6,771 15,454 23,700 7,640 4,888 9,114 13,687 5,000 15,582 8,133 1,184 5,000 9,495 2,585 1,771 (128) 15,567 6,456 (112) (381) 11,102 Temporary acquisitions Player Football Club Annual cost Years of contract 9 Bojinov Valery ACF Fiorentina S.p.A. 1 Temporary disposals Player Football Club Annual revenue Years of contract Miccoli Fabrizio Blasi Manuele Gasbarroni Andrea Olivera da Rosa Ruben SL Benfica ACF Fiorentina S.p.A. Parma FC S.p.A. U.C. Sampdoria S.p.A Economic, financial and asset effects of the operations completed at 31 December 2006 The operations completed in the first phase of the Transfer Campaign entail an overall reduction in the capital invested of 39 million, following: /000 Acquisitions Disposals Balance 11,859 (50,848) (38,989) The economic impact in the 2006/2007 financial year related to the profits and losses from the disposals of players registration rights was positive for 36.6 million entirely recorded in the first six months. The temporary acquisitions and disposals of players registration rights will determine, on an annual

11 basis, a positive net economic and financial effect for 1 million, 0.5 million of which pertinent to the first six months of 2006/2007. The overall financial effect, including the implicit financial expenses and revenues regarding deferred receipts and payments, was positive for 77.6 million of which: 43.8 million will be settled through the Lega Nazionale Professionisti; 37.5 million will be settled directly with foreign football clubs; 3.7 million (payment for consultancy services provided by F.I.F.A. sport agents) will be settled directly with sport agents. /million 06/07 07/08 08/09 LNP Foreign F.C. Agents (3.7) (1.9) (1.4) (0.4) 19.3 Bank guarantees 10 As far as changes in and the situation of guarantees in favour of FIGC LNP are concerned, it should be noted that, with reference to the 2006/2007 Transfer Campaign, no new guarantees were issued as the balance of the operations completed is positive. Furthermore, on 21 September 2006 the guarantees issued by Banca Sella S.p.A. for the Transfer Campaigns of previous financial years (2003/2004, 2004/2005 and 2005/2006) for a total of 14.8 million were liquidated. As regards the situation of guarantees outstanding at 31 December 2006 for the international transfers of football players, for which no compensation system is envisaged as in the case of national transfers, reference should be made to the Notes. RENEGOTIATION OF CONTRACS WITH SKY ITALIA S.r.l. In September was completed with Sky Italia S.r.l. the renegotiation of the contracts regarding the broadcasting, exclusively on television, of the matches in the Italian Championship, for Italy (encrypted) and for the rest of the world (including free to air), of training sessions and the Trofeo Berlusconi, and other commercial rights for the 2006/2007 football season. The parties modified the sums envisaged by the original contracts, stipulated on 30 April 2004, to take into account the situation that had arisen with the relegation of the Company to Serie B. The change in the contracts envisages a reduction in the total sums for the current financial year from 94.5 million to 80.2 million. CONCLUSION OF NEGOTIATIONS WITH OILINVEST B.V. TAMOIL SPONSORSHIP On 6 September 2006, Juventus was notified of the termination of the sponsorship contract stipulated on 25 March 2005 with Oilinvest (Netherlands) B.V..

12 At the end of negotiations, begun at the time of the interruption of the sponsorship contract, no agreement was reached for the stipulation of a new sponsorship agreement. Juventus and Oilinvest have jointly agreed that the team will continue to wear the shirt with the Tamoil logo until the end of the 2006/2007 season. The negative economic impact in the current financial year in terms of lower revenues will be about 8 million. RENEGOTIATION OF NIKE CONTRACT Nike has confirmed its willingness to continue the multiyear technical sponsorship contract with Juventus until the original expiry date envisaged at the end of the 2014/2015 football season. Nike and Juventus have redefined some contractual clauses and agreed a reduction in the sum due by about 4.5 million in the current financial year and a further total of about 4.5 million to be spread over the following eight years of the contract. RENEGOTIATION OF H3G CONTRACT H3G and Juventus have redefined some clauses of the present contract until the end of this football season. The reduction in the sum will be about 2 million. MONDO JUVE COMMERCIAL PARK 11 On 14 July 2006 and 26 July 2006 respectively, the municipalities of Nichelino and Vinovo approved the definitive PECs (agreed executive plans) for the Commercial Park. These decisions were made within the terms imposed by the commercial authorisation and by the EIA (Environment Impact Assessment). It is expected that the procedure for the Programme Agreement on work for external road networks and infrastructures to activate the Commercial Park can be completed in The completion of this procedure will make it possible to move on to the operational stage. MISCELLANEOUS Ordinary shareholders meeting of 26 October 2006 The Shareholders OGM of Juventus Football Club S.p.A., held in Turin on 26 October 2006, approved the Financial Statements at 30 June 2006 (the last drawn up on the basis of Italian accounting principles) and deliberated to cover the loss of 36.5 million through the use of the reserves available. The OGM also appointed as Auditors for the threeyear period that will expire with the approval of the Financial Statements at 30 June 2009: Giorgio Giorgi (Chairman), Roberto Longo (Auditor), Gianluca Ferrero (Auditor), Paolo Piccatti (Deputy Auditor) and Gianluca Cristofori (Deputy Auditor). Juventus Channel launch On 1 November 2006, operations began for the thematic television station Juventus Channel

13 dedicated entirely to the Company, created in collaboration with RAI Trade in the framework of the broader contract stipulated with the RAI Group on 31 March Coopting of director On 13 November 2006, the Board of Directors coopted as a director Aldo Mazzia, Administration and Accounting Director of IFIL Investments S.p.A., replacing the outgoing director Stefano Bertola who has taken on an operational role in the Company following the definition of the new organisational structure. Enquiries in course following the tragedy at the Vinovo Training Centre 12 On 15 December 2006 a very serious accident occurred at the Vinovo Training Centre in which the minors, registered company players who played in the Berretti championship, Alessio Ferramosca and Riccardo Neri, lost their lives. Following the event, the Procura della Repubblica of Turin opened an enquiry to ascertain the state of the places, how the accident happened, and the characteristics and observance of regulations of the use of the sports facilities. Maurizio Schincaglia and Lorenzo Frison, respectively the trainer and goalkeeper coach of the Berretti team, Renato Opezzi chief executive officer of Semana S.r.l. responsible for management of the sports facility, Jean Claude Blanc and Alessandro Sorbone respectively chief executive officer and human resources manager of Juventus were inserted in the register of those under investigation. The proceedings are currently in the investigative stage, awaiting the technical opinions requested by the public investigator for the enquiry. 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. 60.0% LAFICO S.a.l. 7.5% FREE FLOAT 32.5%

14 Juventus Football Club S.p.A. share price trend and equity turnover /m 30 Equity turnover Official price /3 21/4 29/5 4/7 9/8 14/9 20/10 27/11 2/1 7/2 15/3 1 On 15 March 2007 the official Juventus share price was 1.906, an increase of 30.5% compared to the price on 15 March 2006 ( 1.461). In the first part of the period in question, also following the wellknown judicial and sports events that have involved the Company, there was a significant increase in share trading volumes and marked daily swings, reaching the historical minimum of After this, daily trading and volatility dropped and the share has seen a series of rises, settling around the current price. The average daily equity turnover in the past twelve months was 2.1 million. 13 Review of results for the first six months of the 2006/2007 financial year The economic results of the first six months of the 2006/2007 financial year were influenced, as usual, by the accentuated seasonal nature of the business and cannot, therefore, represent the basis for forecasts for the entire financial year. Furthermore, the first six months of the 2006/2007 financial year were strongly influenced by the significant positive economic effects deriving from the first phase of the 2006/2007 transfer campaign, for 36.6 million. The Net Result for the first half of the financial year, net of the estimated fiscal effect for the period, was positive for 15.4 million, against the negative balance of 15.9 million in the same period of the previous financial year. Revenues for the first half amounted to million, a decrease of 6.9% compared to 109 million at 31 December 2005, and felt the impact of the relegation to Serie B and the failure to participate in the UEFA Champions League, effects only partially compensated by significant revenues from the

15 management of players registration rights ( 38.9 million, against 4.9 million in the first half of 2005/2006). In this situation, the Company has implemented a strong cost reduction plan, regarding in particular the costs for wages and amortisation of players registration rights. Operating Costs for the six months amounted to 71.2 million, a decrease of 28% compared to 99 million in the corresponding period of the previous financial year. The Amortisation and writedowns of players registration rights in the period in question amounted to 10 million, against 26.5 million in the same period of the 2005/2006 financial year. Net financial expenses for the first half amounted to 1.2 million and show a reduction of 0.3 million compared to 1.5 million in the first half of 2005/2006. The overall Fiscal effect was negative for 3.5 million, against a positive effect of 2.9 million in the corresponding period of the previous financial year. Shareholders Equity at 31 December 2006 amounted to 29.6 million, an increase compared to 14.2 million at 30 June 2006 due to the net profit for the period. The Net Financial Position at 31 December 2006 was negative for 75.1 million, a decrease compared to the negative balance of 12.9 million at 30 June The following table, in the format suggested by CONSOB (recommendation DEM/ of 9 December 2002) gives an overview: /000 31/12/ /06/2006 Net financial position/(indebtedness) short term positive/(negative) components* midlong term positive/(negative) components* Variation in cash flow variation in cash at bank and in hand variation in shortterm financial operations Debt/equity ratio *Figures at the end of the relevant period (57,835) (17,307) (75,142) (44,914) (12,931) (12,931) 22,302 (1,090) 0.91 For greater detail on the composition of the Net Financial Position, reference should be made to the Notes.

16 Significant events after the closure of the first six months of the 2006/2007 financial year FOOTBALL SEASON After the first 7 matches played in the second half of the season, the First Team, despite the initial penalty of nine points, heads the Serie B championship with 55 points and a 5 points lead over the second club, with one game in hand. 2006/2007 TRANSFER CAMPAIGN Second phase In the course of the second phase of the Transfer Campaign, Juventus completed the following main operations regarding players registration rights: /000 Advance termination of player sharing agreements in favour of Juventus Player Football Club Price IFRS valuation of rights Criscito Domenico Genoa Cricket and FC S.p.A. 7,500 7,310 The player remains on free loan to Genoa FC S.p.A. until the end of the current football season Years of contract 5 Player sharing agreements disposal Player Football Club Price IFRS valuation of rights Net book value 15 Masiello Andrea (shared with A.C. Siena S.p.A.) Konko Abdoulay (shared with A.C. Siena S.p.A.) Genoa Cricket and FC S.p.A. Genoa Cricket and FC S.p.A. 1,250 1,000 1, Temporary disposals until the end of the current season Player Guzman Tomas Football Club Spezia Calcio S.r.l. Annual revenue Years of contract 1 In addition, the Company signed playing contracts with the players Zdenek Grygera and Hasan Salihamidzic, whose contracts with their current clubs are about to expire, effective as of 1 July 2007 of the duration respectively of 5 and 4 years. Summary of the overall economic, financial and asset effects of the 2006/2007 Transfer Campaign The operations completed in the first and second phase of the Transfer Campaign entail an overall reduction in the capital invested of 32.1 million, following: /000 Acquisition Disposals Balance 19,169 (51,243) (32,074)

17 The economic impact in the 2006/2007 financial year related to the profits and losses from the disposals of players registration rights was positive for 38.4 million. The temporary acquisitions and disposals of players registration rights will determine, on an annual basis, a positive net economic and financial effect for 1 million. The overall financial effect, including the implicit financial expenses and revenues regarding deferred receipts and payments, was positive for 72.3 million, of which: 38.5 million will be settled through the Lega Nazionale Professionisti; 37.5 million will be settled directly with foreign football clubs; 3.7 million (payment for consultancy services provided by F.I.F.A. sport agents) will be settled directly with sport agents. /million 06/07 07/08 08/09 LNP Foreign F.C. Agents (3.7) (1.9) (1.4) (0.4) STADIUM PROJECT On 5 February 2007, the Board of Directors examined the project for the new stadium, in view of the deadline of 15 February 2007, set by UEFA for the presentation of the bid file by the Italian federation for the candidature of the organisation of the European championship in The Board of Directors expressed its unanimous approval of the plan for the stadium, conditional on the approval and ratification of the related memorandum of understanding by the City of Turin, as well as the provision by the government and the FIGC of credit facilitation guarantees for financing of no less than 120 million. These guarantees would enable Juventus to sign all the contractual documents needed for the bid for Euro 2012, including the memorandum of understanding with the FIGC and the agreements with UEFA. The Board of Directors meeting of 13 February 2007 noted the willingness of the government and the FIGC to underwrite the memorandum of understanding that commits the government to make available to the beneficiaries the appropriate sums to cover the expenses deriving from the financing underwritten for the construction and adaptation of the stadiums intended to host the 2012 European Football Championship and the construction of closely related infrastructures. The Board of Directors therefore mandated the Chief Executive Officer JeanClaude Blanc to underwrite the commitments needed to complete the documentation to support the Italian bid for Euro 2012, with reference to the Turin venue, conditioning the undertakings made with UEFA to the final agreements with the City of Turin, the government and the FIGC. On 14 February 2007 the Company underwrote with the City of Turin the memorandum of understanding regarding the Stadium Project. The commitments in the memorandum of understanding, such as the

18 implementation of the entire Stadium Plan, are conditional on the actual assignment to Italy and to the Company of the organisation of the 2012 European Championships. In the framework of the procedure to approve the memorandum of understanding, the City of Turin, bearing in mind that only after 18 April 2007 will UEFA s decision regarding the assignment of the European Championships be known, has deferred for three months the deadline for the underwriting of the agreement for the executive plan (Piano Esecutivo Convenzionato PEC) originally set for 10 April On 7 March 2007, the government, FIGC and the cities nominated to host the European Championships, with the exception of the City of Turin due to the specific agreement between the City itself and Juventus, have underwritten the memorandum of understanding concerning the government s commitment to cover the expenses stemming from the financing underwritten for the construction and adaptation of the stadiums. MIDTERM DEVELOPMENT PLAN On 14 March 2007, the Board of Directors of Juventus examined and approved unanimously the midterm development plan that will permit the relaunch of the Company in its excellence in sport, commercial development and strengthening of its financial position and assets. In order to provide financial support for the development plan, the Board of Directors has voted to propose to the shareholders meeting an increase in capital of about million, including the share premium, through the issue of no. 80,621,332 shares to be offered as an option to shareholders with the exchange of no. 2 new shares for every no. 3 shares possessed. The first call for the shareholders meeting was then made by the chairman for 20 April 2007 and, if necessary, a second call for 24 April The issue price is 1.30 per share (of which 1.20 for the share premium). The share price at the close of the stock market on the day preceding the announcement of the operation was The majority shareholder IFIL Investments S.p.A., the holder of 60% of the equity of Juventus, will underwrite its share. Juventus is assessing the possibility of constituting a consortium to guarantee the share issue. The launch of the increase in capital is planned indicatively for the month of May, after the meeting and the authorisation by Consob. The financial advisor for the operation is Rothschild. The midterm development plan approved by the Board of Directors has been defined taking into account the following objectives: 1. Assertion of leadership in European football The company will strive for excellence in sports performance, linked to the quality of the team and the technical staff. The current composition of the team is characterised by the presence of outstanding players, alongside

19 young talents who are developing experience on the pitch. The objective of the development plan is to ensure the competitiveness of the team in Serie A and at the international level, strengthening all sectors and ensuring at the same time the stability of the technical staff. The plan envisages further reinforcement of the youth sector and the scouting system, so as to guarantee a constant influx of talents to the first team. 2. New commercial strategy The Plan envisages the introduction of a new marketing strategy that will make a significant contribution to the further development and enhancement of the Juventus brand. A new strategy will also be developed that will enable the identification of a small, select group of national and international partners that can offer a significant contribution to revenues and enhancement of the brand. In this framework the Board of Directors has mandated the Chief Executive Officer to conclude the negotiations underway with the new main sponsor. Further action will be taken in the key international markets, including team tours and friendly matches. 3. Solidity of assets and financial position From the financial point of view, the objective over the period of the plan is to implement a model of sustainable development that enables excellent football performance, guaranteeing the Company equilibrium in its finances and assets. 18 The capital increase operation will make it possible to achieve a considerable reduction in debt and new investment capacity thanks also to the generation of adequate cash flow. For the team s competitiveness, player acquisitions will be made as of the forthcoming opening of the market. MISCELLANEOUS The Board of Directors also voted to submit to the approval of the extraordinary shareholders meeting some changes to the ByLaws, specifically to Articles 11, 12, 13, 15, 19 and 22. These variations are dictated by the need to amend and integrate the ByLaws to adapt them to Law no. 262 of 28/12/2005 (Legge sul Risparmio) as amended by Legislative Decree no. 303 of 29/12/2006. The OGM will be called to deliberate on the confirmation of the appointment of the director Aldo Mazzia, coopted by the Board of Directors on 13 November Business outlook The 2006/2007 financial year is influenced by the relegation to Serie B, which has led to the reduction in the value of some contracts and the non participation in the UEFA Champions League ( 22.5 million in the 2005/2006 season, in which the First Team reached the quarter finals). In this situation, the Company has implemented a strong cost reduction plan, regarding in particular the costs for wages and amortisation of players registration rights, leading to the sale of important players, key members of many national teams.

20 Trend in operations of the subsidiary company Campi di Vinovo S.p.A. (shareholding currently owned: 69.8% of the share capital, 71.96% of outstanding capital) In the sixmonth period 1 July December 2006 the subsidiary company Campi di Vinovo S.p.A. conducted operations only with the parent company Juventus Football Club S.p.A.. In the framework of the limited company operations, it should be noted that: on 19 October 2006, the OGM of the subsidiary company Campi di Vinovo S.p.A. approved the Financial Statements at 30 June 2006 and voted to fully cover the net loss of 885 thousand through the partial use of the Revaluation reserve ; the OGM also appointed as Directors for the threeyear period of 2006/2007, 2007/2008 and 2008/2009: JeanClaude Blanc, Alessandro Gilardi and Renato Opezzi. The new Board of Directors, meeting afterwards, assigned the position of Chairman to JeanClaude Blanc and appointed Alessandro Gilardi Vice Chairman and Renato Opezzi Chief Executive Officer; the company provides consultancy to the controlling company Juventus for the Nuovo Stadio Delle Alpi project, for a total of 100 thousand ( 50 thousand pertinent to the first six months of 2006/2007); the controlling company Juventus has charged back to Campi di Vinovo the expenses borne for the Mondo Juve Commercial Park project for thousand. These expenses have been capitalised. 19 As far as the economic situation and assets at 31 December 2006 are concerned, the following information should be noted: /000 1 st half 1 st half Change 2006/ /2006 Value of production Cost of production (84) (84) Result before extraordinary items (34) Financial income/(expenses) (175) (103) 72 Extraordinary income Result before taxes (209) (86) 123 Taxes RESULT FOR THE PERIOD (202) (81) 121 /000 31/12/ /06/2006 Change SHAREHOLDERS EQUITY 10,227 10, NET FINANCIAL POSITION (6,963) (6,626) 337 It should also be noted that Campi di Vinovo S.p.A. is subject to the management and coordination of Juventus.

21 FINANCIAL STATEMENTS AT 31 DECEMBER 2006 AND NOTES BALANCE SHEET ASSETS Notes 31/12/ /06/2006* Noncurrent assets Players registration rights Other intangible fixed assets Intangible fixed assets in progress Land and buildings Other tangible fixed assets Tangible fixed assets in progress Other investments Other financial assets Prepaid taxes Receivables from specific sector companies related to transfer campaign Other noncurrent assets ,170, ,001 28,000,000 19,250,188 3,975,697 6,562,202 30,005 7,000,000 16,068,778 23,794,577 5,849, ,393, ,824 13,000, ,303 27,319,882 30,005 7,000,000 18,060, ,508 5,849,619 noncurrent assets 170,044, ,867, 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 ,666, ,612 45,015,381 7,501,485 1,275, ,975 19,201,676 1,488,744 19,944, ,056 1,074, ,266 current assets 65,678,973 42,412,870 Assets held for sale 12,153,513 12,153,513 assets 247,877, ,434,179 * Figures presented in conformity with IFRS. In particular, it should be noted that, with respect to the document that describes the effects deriving from the first application of IFRS, the balance sheet table shows as a separate item non current assets/liabilities towards sectorspecific companies for the transfer campaign. These items were previously included, respectively, among other non current assets/liabilities.

22 BALANCE SHEET EQUITY AND LIABILITIES Notes 31/12/ /06/2006* Shareholders Equity Share Capital Reserves Income/(loss) for the period 12,093,200 2,106,255 15,377,343 12,093,200 48,092,475 (45,986,220) Shareholders equity 29,576,798 14,199,455 Noncurrent liabilities Provisions for risks and charges Bonds and other financial liabilities Trade payables Payables due to specific sector companies related to transfer campaign Deferred taxes Other noncurrent liabilities ,050,561 17,306,611 38,072,716 5,805,511 1,652,743 3,067,163 3,747,168 5,330 34,000, ,154 1,995,147 5,203,503 noncurrent liabilities 68,955,305 45,121,302 Current liabilities 21 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 ,000 59,302,552 62,858,932 1,235,703 11,992,797 13,780,295 14,202,698 78,496,926 2,484,792 43,680,899 36,248,107 current liabilities 149,345, ,113,422 Liabilities relating to assets held for sale equity and liabilities 247,877, ,434,179 * Figures presented in conformity with IFRS. In particular, it should be noted that, with respect to the document that describes the effects deriving from the first application of IFRS, the balance sheet table shows as a separate item non current assets/liabilities towards sectorspecific companies for the transfer campaign. These items were previously included, respectively, among other non current assets/liabilities.

23 INCOME STATEMENT Notes 1 st half 2006/ st half 2005/2006* Ticket sales Television and radio rights and media revenues Revenues from sponsorship and advertising Revenues from players registration rights Other revenues ,488,120 38,391,338 15,003,227 38,863,705 5,765,506 7,574,474 65,798,796 29,545,320 4,877,604 1,224,269 revenues 101,511, ,020,463 Purchase of materials, supplies and other consumables External services Players wages and technical staff costs Other personnel Expenses from players registration rights Other costs (1,523,071) (13,124,809) (45,370,937) (3,471,345) (3,645,725) (4,087,589) (1,483,629) (17,048,102) (59,077,604) (3,598,114) (2,750,868) (15,003,376) operating costs (71,223,476) (98,961,693) Amortisation and writedowns of players registration rights Other amortisation, writedowns and provisions 24 (10,018,158) (104,670) (26,470,846) (805,106) Operating income 20,165,592 (17,217,182) 22 Financial revenues Financial expenses ,384,173 (2,625,935) 674,129 (2,223,814) Income/(loss) before taxes 18,923,830 (18,766,867) Current taxes Deferred and prepaid taxes (1,897,158) (1,649,329) (3,726,306) 6,605,391 Net Income/(loss) 15,377,343 (15,887,782) Earnings per share (basic) Earnings per share (diluted) (0.13) ** * Sixmonthly figures drawn up pursuant to law and the previously applicable accounting principles, recalculated according to IFRS. ** Diluted earnings per share is not calculated in the event of losses as any diluted effect would lead to an improvement in the result per share.

24 STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY Share capital Share premium reserve Legal reserve Treasury shares reserve Retained earnings Net income (loss) for the period Shareholders Equity Balance as at 01/07/ ,093,200 24,472,872 2,418,640 36,000,000 (11,783,083) (3,015,954) 60,185,675 Transfer of previous year net income (3,015,954) 3,015,954 Net income for the period as of 30/06/2006 (45,986,220) (45,986,220) 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 Transfer of previous year net income (24,472,872) (9,062,717) (12,450,631) 45,986,220 Net income for the period as of 31/12/2006 Balance as at 31/12/ ,093,200 2,418,640 26,937,283 (27,249,668) 15,377,343 15,377,343 15,377,343 29,576,798 23

25 STATEMENT OF CASH FLOW 1 st half 2006/ st half 2005/2006* Net income/(loss) before taxes Noncash items: amortisation, depreciation and writedown provisions release employee benefit liability and solidarity contributions accruals capital gains on disposal of players registration rights capital gains on disposal of other fixed assets capital 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 Taxes paid Utilisation in employee benefit liability and other provisions 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) (18,766,867) 27,275,953 (1,500,000) 209,950 (4,229,593) (951) 2,308,691 (674,130) 2,223,814 9,548,140 37,859,386 (3,524,226) (110,878) Net cash provided by/(used in) operating activities (21,419,603) 50,619, 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 Interests income Dividends received (11,171,983) (26,602,281) 86,036,940 (47,659,750) (17,097,195) 2,625 23,960 90,000 (48,571,770) (8,160,821) 13,682,382 6,021,292 (950,054) 1, ,582 Net cash provided by/(used in) investing activities (16,377,684) (37,789,319) Borrowing repayments Financial leasing repayments Interests on financial leasing Other interests expenses Other movements related to the financial activities (2,620,913) (450,284) (1,585,099) 16,180 (17,989,601) (1,197,335) 2,574 Net cash provided by/(used in) financing activities (4,640,116) (19,184,362) Net cash provided by/(used in) the period (42,437,403) (6,354,392) Cash and bank overdrafts at the beginning of the period Cash and bank overdrafts at the end of the period (14,725,657) (57,163,060) (18,435,087) (24,789,479) Changes in cash and bank overdrafts (42,437,403) (6,354,392) Breakdown of cash and bank overdrafts at the end of the period (57,163,060) (24,879,479) Cash and cash equivalents 382,974 1,107,261 Bank overdrafts (57,546,034) (25,986,740) * Sixmonthly figures drawn up pursuant to law and the previously applicable accounting principles, recalculated according to IFRS.

26 Notes GENERAL INFORMATION Juventus Football Club S.p.A. is a company whose headquarters are in Corso Galileo Ferraris 32, Turin, whose shares are listed on the Star segment of the Mercato Telematico Azionario of the Italian stock market (Borsa Italiana). The publication of this Sixmonthly Report was authorised by the vote of the Board of Directors of 27 March The Sixmonthly Report has been drawn up in observance of IAS 34 Interim Financial Reports and Article 81 of the Regolamento emittenti Consob 11971/1999 and later amendments and additions. The obligation to adopt the IFRS, issued by the International Accounting Standard Board (IASB), and adopted by the European Union, starts for Juventus with the financial statements for the year that closes on 30 June The date of transition to the IFRS for Juventus is, therefore, set at 1 July 2005 as the opening date of the financial statements presented for comparative purposes (financial year closed at 30 June 2006). IFRS is also understood as meaning the International Accounting Standards ( IAS ) still in force, as well as the interpretations of the International Financial Reporting Interpretations Committee ( IFRIC ), previously known as the Standing Interpretations Committee ( SIC ). The accounting principles and criteria used to draw up this report are the same as those that will be used in preparing the annual report at 30 June For further details concerning the content of these accounting principles and criteria, as well as the effects of their adoption on values for the 2005/2006 financial year previously published according to Italian accounting principles, reference should be made to the specific document attached to the Quarterly Report at 30 September As regards the new financial statements, the following should be noted: the balance sheet adopts the current/non current distinction as the method of representing assets and liabilities; the income statement adopts the classification of revenues and costs by nature, giving priority to the illustration of information regarding players registration rights, items characteristic of Juventus activities; the statement of cash flow is prepared with the indirect method. The drafting of quarterly and halfyear financial reports requires the management to make estimates and assumptions that have an effect on revenues, costs, assets and liabilities and on information regarding assets and liabilities at the date of reference. The estimates make it possible to ensure reliable information compatible with the promptness demanded. If in the future these estimates and assumptions, which are based on the best assessment by the management, were to differ from the actual circumstances, they will be adjusted in an appropriate manner. This SixMonthly 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 is classified as an activity destined for sale due to the call option granted to a third party with a contract dated 31 March 2006 and would in any case be irrelevant for the purposes of true and fair representation of the financial and economic results of the controlling company Juventus.

27 1. PLAYERS REGISTRATION RIGHTS The details are as follows: /000 Name of player Role Registration rights at 31/12/2006 Amortisation and writedown fund at 31/12/2006 Residual book value at 31/12/2006 Duration of contract* Contract expiry First Team at 31 December , ,907 43,218 Balzaretti Federico Defender years 30/06/10 Birindelli Alessandro Defender 2,829 2, years 30/06/08 Boumsong Jean Alain Defender 4, ,186 4 years 30/06/10 Buffon Gianluigi Goalkeeper 52,884 37,811 15,073 5 years 30/06/11 Camoranesi Mauro G. Midfielder 8,650 6,266 2,384 4 years 30/06/09 Chiellini Giorgio Defender 7,430 2,415 5,015 5 years 30/06/11 Del Piero Alessandro Striker years 30/06/08 Giannichedda Giuliano Midfielder years 30/06/08 Guzman Gaetan Tomas Striker 4,986 4, years 30/06/10 Kovac Robert Defender years 30/06/09 Legrottaglie Nicola Defender 7,424 5,197 2,227 5 years 30/06/08 Marchionni Marco Midfielder years 30/06/11 Mirante Antonio Goalkeeper years 30/06/11 26 Nedved Pavel Palladino Raffaele Midfielder Striker 46, , , years 5 years 30/06/08 30/06/10 Paro Matteo Midfielder years 30/06/10 Piccolo Felice Defender year 30/06/07 Trezeguet David Striker 26,714 24,710 2,004 4 years 30/06/08 Tudor Igor Defender 5,100 5, years 30/06/07 Zalayeta Marcelo Striker 9,243 9,243 5 years 30/06/10 Zanetti Cristiano Midfielder years 30/06/10 Zebina Jonathan Defender years 30/06/09 Players temporarily transferred 37,464 25,513 11,951 Blasi Manuele Midfielder 17,950 12,565 5,385 4 years 30/06/09 Bonnefoi Landry Goalkeeper 3 years 30/06/08 Chiumiento Davide Striker years 30/06/08 Gasbarroni Andrea Midfielder 1, ,242 3 years 30/06/09 Kapo Oliver Midfielder years 30/06/08 Miccoli Fabrizio Striker 5,734 3,472 2,262 4 years 30/06/10 Olivera Ruben Striker 6,705 4,191 2,514 4 years 30/06/09 Tacchinardi Alessio Midfielder 4,996 4, years 30/06/08 Other professionals** Players in active playersharing Players in passive playersharing Registered young players 4, ,473 2, , ,161 1, ,171 * Duration of contracts in force at 31 December ** This item includes the costs of other players temporarily transferred and professional players playing in the Juventus youth sector teams.

28 Changes* in this item are given in the table below: /000 Professionals Players in active playersharing Players in passive playersharing Registered young players Initial book value ** Initial amortisation fund ** Initial writedown fund 382,199 (266,638) (11,525) 1,659 1,182 (380) 1,812 (916) 386,852 (267,934) (11,525) Balance at 01/07/ ,036 1, ,393 Investments Reclassifications of registered young players Disinvestment Disposals for asset writeoff Amortisation Reclassification of registered young players Use of amortisation Use of writedowns 10, (167,628) (9,744) (136) 108,536 11, (1,438) (232) (108) 13 2,217 (162) (378) (16) (144) ,172 (169,676) (16) (9,996) 108,769 11,525 Balance at 31/12/ , ,171 Final book value Final amortisation fund 225,060 (167,982) (475) 1,473 (704) 228,332 (169,161) Balance at 31/12/ , ,171 * The changes in the period may differ from the comments given in the Trend in Operations concerning the Transfer Campaign to both the different time reference and to the inclusion in this table of some items not strictly related to the Transfer Campaign (e.g. preparation bonuses etc.). ** Net of the preparation and promotion bonus paid to other football clubs for young players, which was entirely amortised INTANGIBLE FIXED ASSETS IN PROGRESS These are made up entirely of the rights to the economic use of the historical archive of television images of the Company (the socalled Juventus Library ) the acquisition of which was completed in the course of this sixmonth period with the expenditure of 15,000 thousands. Details are as follows: /000 31/12/ /06/2006 Change Juventus Library 28,000 13,000 15,000 28,000 13,000 15,000 This is an intangible fixed asset of indefinite life for whose economic exploitation, in addition to the contract signed with the RAI group for a duration of 99 years, for a consideration of 10.5 million, commercial initiatives are being analysed to define a development plan to enable its most extensive exploitation.

29 3. LAND AND BUILDINGS The changes in this item are given in the item below: /000 Land Buildings, sports fields and related areas Balance at 01/07/2006 Investments Reclassification from Tangible fixed assets in progress Depreciation 5, ,912 (108) ,912 (108) Balance at 31/12/2006 5,000 14, Final book value Final depreciation fund 5,000 14,358 (108) 19,358 (108) Balance at 31/12/2006 5,000 14,250 19, The increase of 19,250 thousand for land and buildings concerns mainly the reclassification of the item Tangible fixed assets in progress of the expenses borne for the construction of the Vinovo Training Centre, now operational. Given that this asset, currently owned by LOCAT S.p.A., is a financial leasing operation, on the basis of the IAS 17 accounting principle, it has been entered amongst tangible assets, while the related debt to the leasing company has been entered in the item Bonds and other financial debts (see Note 11). Part of the costs related to the Vinovo Training Centre have been reclassified in other tangible assets. 4. OTHER TANGIBLE FIXED ASSETS The changes in this item are given in the table below: /000 Equipment and machinery Industrial and commercial equipment Other assets Initial book value Initial depreciation fund 450 (290) 1,383 (1,115) 1,136 (872) 2,969 (2,277) Balance at 01/07/ Investments Reclassification from Tangible fixed assets in progress Disinvestments Depreciation Use of depreciation 1,874 (66) 29 1,184 (4) (82) (10) (52) ,070 (14) (200) 13 Balance at 31/12/2006 1, Final book value Final depreciation fund 2,324 (356) 2,592 (1,194) 1,523 (914) 6,439 (2,464) Balance at 31/12/2006 1,968 1, ,975