London 13.10.2005
Transcription
London 13.10.2005
Juventus Football Club Analyst Presentation London, 13 October 2005 Disclaimer This document has been prepared by Juventus Football Club S.p.A. solely for use at the analyst presentation organised by Borsa Italiana S.p.A. and held on Thursday, 13 October 2005. 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 may contain forward-looking statements which are estimates, subject to risks and uncertainties that could cause 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, Six-Monthly Reports and Quarterly Reports) published by the Company. Table of contents Strategy and projects Partnership and multi-year contracts Key issues and results at 30/6/2005 Player management Social commitment Q&A Strategy and projects Juventus strategy and projects Maintain excellent sporting results Mission Increase profitability and shareholders’ value Objectives Further spread the Juventus brand name to fully exploit it through sponsorship and partnership agreements Diversify our revenue stream aiming at further increasing and stabilizing our profitability Strategy Maintain a highly skilled team Focus on youth sector; effective player management Enlarge supporter base; further develop advertising and promotional area; strengthen commercial and licensing activities through the partnership with Nike “Stadium” and “Mondo Juve” Projects A unique sporting track record Most successful football club in Italy and one of the two European teams to have won all international tournaments at least once 28 2 Italian Championships Champions League 9 Italian Cup 4 2 Italian Super Cup Intercontinental Cup 3 U.E.F.A. Cup 1 European Cup Winners' Cup 2 European Super Cup Focus on youth sector Competitive and efficient youth sector to recruit new talents at contained costs: – 17 teams (taking part in national competitions, regional and local ones). The youth department takes part in more than 100 tournaments in Italy and abroad – About 370 young players – About 90 coaching and technical staff – Many Juventus young players playing in other professional clubs The Primavera team won the “Coppa Carnevale” of Viareggio, the world youth football tournament, for the third year running Juventus launched a new project related to soccer schools in cooperation with Nike (Juventus Summer Camp, Juventus Academy and Juventus University) A leading team by supporters In Italy The most popular football club in Italy with about 14,000,000 fans and a market share of 33% Leader in many Italian regions and second or third in the remaining ones Supporters pretty evenly spread through all Italian regions Abroad About -I - UK -D 30,000,000 European fans: 14 million F 5 million 3.2 million E 3.2 million 5 million About 150,000,000 potential fans worldwide sources: C.R.A. “Monitor Calcio”, January 2005; Sport+Markt – International Fan Potential, 2004; Assist Data, June 2005 Stadium Project On 15 July 2003 Juventus signed the agreement with the City of Turin for the ninety-nine year right to exploit the Delle Alpi Stadium and adjacent areas; renewable on expiry Juventus is waiting for the final authorisation regarding the technical plan to restructure the stadium from Turin municipality and develop the annexed commercial area Juventus will restructure the Stadium, including 12,000 square meters of gross floor area for commercial activities related to sport business; and will build 30,000 square meters of gross floor area for commercial activities on surrounding areas The expected total investment for the whole project is in the range of € 150 million Commercial Park Project Development of a commercial “park” comprised of leisure and retail facilities covering a total of 82,000 square meters of gross floor area On 22 July 2003, the Piedmont Regional Executive approved the variations to the master development plan of Vinovo and Nichelino On 23 September 2003, the Piedmont Regional Executive granted commercial authorisation The final administrative procedures to get permissions are close to be defined with local authorities Juventus is dealing with several potential partners to share the project Training Centre Construction of a new training centre for all Juventus teams On 9 January 2004, Vinovo Municipality finally approved the technical plan related to the Training Centre The ceremony of laying the “foundation stone” was held on 9 June 2004. We are building the training center through a financial leasing operation. The overall investment (including land value) is about € 20 million We estimate the completion of the work by the end of 2005 The training centre will enable better management of the entire sports sector and will allow economies of scale on overheads and running costs Partnerships and multi-year contracts Multi-year contracts Satellite TV rights agreement renewal The television broadcasting of the home matches of 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 Duration and consideration 2005/2006 2006/2007 € 90 million of which: € 94.5 million of which: • € 74.9 m received as due • € 15.1 m by 15/12/05 • € 31.5 m by 15/06/06 • € 31.5 m by 15/12/06 • € 31.5 m by 15/03/07 Performance Bonus € 5 million in the event the team finishes first or second in the Italian Championship Multi-year contracts Terrestrial digital, cable and ADSL TV rights agreement with Mediaset Group The transmission in Italy, on payment and with controlled access, of the home matches of Juventus in the Italian Championship via terrestrial digital, cable and ADSL Duration and consideration 2004/2005, 2005/2006 and 2006/2007 € 12 million due in equal parts in the three financial years Multi-year contracts Official Sponsorship agreement Sole Official Sponsor for all competition Duration and consideration 1 July 2005 – 30 June 2010 € 102 million Option right Juventus sold for € 18 million the option right to extend the sponsorship until 2020 First extension: Consideration: 1 July 2010 - 30 June 2015 € 130 million Second extension: Consideration: 1 July 2015 - 30 June 2020 at conditions comparable to those envisaged for the period 2010-2015 Multi-year contracts The Partnership with Nike Duration: 12 years(*) starting from 1/7/03 Total minimum guaranteed: € 187 m Royalties: • 10%-12%-14% on the net revenues deriving from the sale of Juventus-brand products • 50% on the net profits deriving from the sale of Juventus-brand services and from retail operations Juventus Stores, Shops, Corners and Points 4 stores: Turin (2), Palermo and Tokyo 4 corners: Milan, Rome, Catania and Sorrento 11 shops in Turin 1000 points soon in Italy Juventus Merchandising S.r.l.(**) • Managing the entire licensing sector of Juventus and developing Juventus branded products and services (58 licensing agreements in 04/05 FY) • First and second year sales over and above forecasts • Juventus Soccer Schools launched in 2004: 6 Juventus University, 50 Juventus Academy in Italy and abroad, 1 Official Soccer School, 1 Juventus Camp (*) 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 (**) Fully owned by the Nike Group Key issues and results at 30/6/2005 Income Statement €/m Revenues Personnel cost 2004/2005 Financial Year Operating Player Total activities manag. 2003/2004 Financial Year Operating activities Player manag. Total 228.6 0.7 229.3 207.3 0.9 208.2 (127.2) - (127.2) (117.1) (117.1) (56.2) (0.2) (56.4) (48.9) (5.1) Ebitda 45.2 0.5 45.7 41.3 (4.2) 37.1 Amortisation and write downs Net income on disposal of players’ registration rights (3.1) (62.9) (66.0) (1.8) (63.9) (65.7) - 16.8 16.8 - 3.6 3.6 Net financial income/(loss) (0.9) 1.6 0.8 (0.7) (1.8) (2.5) Profit before extraordinary items and taxes 41.2 (44.0) (2.7) 38.8 (66.3) (27.5) 9.1 7.6 Other operating costs Extraordinary income/(loss) Taxes Net income/(loss) 9.1 - - (54.0) 7.6 (9.4) 1.5 (3.0) (18.4) Revenue breakdown 10.7% 9.9% 2004/2005 € 229.3 million 25.1% 54.3% TV RIGHTS AND U.E.F.A. CHAMPIONS LEAGUE 12.8% SPONSORSHIP AND COMMERCIAL ACTIVITIES TICKET SALES OTHER REVENUES 8.5% 2003/2004 € 208.2 million 25.8% 52.9% Financial highlights in € m €/m 30/06/05 30/06/04 Change absolute Net fixed assets 213.3 217.3 (4.0) Net working capital (95.2) (163.2) 68.0 Provisions and funds (23.8) (26.3) 2.5 Net capital employed 94.3 27.8 66.5 Shareholders’ equity 77.9 80.9 (3.0) 16.4 (53.1) 69.5 94.3 27.8 66.5 Net financial position (*) Net equity and net financial position (*) Negative items show a liquidity position Statement of cash flow €/m 2003/2004 Financial Year 2004/2005 Financial Year 69.2 53.1 Cash flow 46.7 57.6 Variation in net working capital 20.4 (68.0) (12.0) (2.5) 55.1 (12.9) (71.0) (56.6) Net financial position at the beginning of the period Increase/(decrease) in funds Cash flow provided/(absorbed) by operating activities Cash flow used for investment Dividends paid - Other changes in shareholders’ equity (0.2) Net financial position at the end of the period 53.1 (16.4) Player Management 2005/2006 Transfer Campaign First phase main operations (1 July – 31 August 2005): Purchase: Disposal: Temporary acquisition: Temporary disposal: Vieira, Kovac, Giannichedda and Balzaretti Maresca, Appiah Abbiati and Gladstone Kapo, Tacchinardi, Chiumiento and Miccoli Legrottaglie, Tudor and Salas (free loans) Effects on assets, economic impacts and financial figures: Economic impact Capital gains Player sharing 2.6 (0.7) Temporary 1.1 Total 3.0 Effects on assets Total New investments 33.9 Player sharing capitalisation 13.4 Disposals Other effects Figures at 31 August 2005, €/m Financial effects 05/06 (33.9) (17.1) 06/07 07/08 08/09 (8.8) (7.6) (0.4) - - - - - (11.5) 14.1 4.8 4.3 2.5 2.5 1.1 (1.8) (1.0) (0.8) - - 1.1 0.8 0.3 - - (12.5) (5.0) (5.1) 36.9 (20.5) 2.1 Social commitment Our social commitment continues Special initiatives • “Crescere insieme al Sant’Anna” an initiative to raise funds to finance the renovation of a department of the Sant’Anna Hospital in Turin. The aim of the project is to improve the quality of children’s stay at hospital • Juventus backed a special initiative with Don Bosco Mission to finance (€ 300,000) the construction of a Residential Centre for orphan children in Thailand Ordinary initiatives • “Fatti e Progetti per i Giovani” alongside the Don Bosco Mission • The creation of a degree course in Sports Management with the University of Turin. Last year 10 scholarships in memory of Giovanni Alberto Agnelli were awarded to students • Aid and support over many years for the “Fondazione Piemontese per la Ricerca sul cancro” Q&A
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