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