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Disclaimer
This document has been prepared by Juventus Football Club S.p.A. (the “Company”) solely for use at the analyst presentation promoted and organised by Borsa Italiana S.p.A. (the Italian Stock Exchange) and held on 7 October 2010 in the context of the event “STAR Conference 2010, London” promoted and organised by Borsa Italiana S.p.A.. Neither this presentation nor any part or copy of it may be transmitted into the United States or distributed, directly or indirectly, in the United States, Australia, Canada or Japan or any other jurisdiction where distribution of this presentation and of any information contained in it may be restricted by law. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.This document is not intended for potential investors and is not to be used or considered as an offer to purchase or subscribe for, or a solicitation of any offer to purchase or subscribe for, any securities, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. This document has been prepared separately from any proposed offering of securities and as such information in this document has been reviewed and approved by the Company.The securities of the Company have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under the corresponding rules and regulations applicable in Canada, Japan, Australia or in any other jurisdiction where an offer is unlawful absent exemption or authorization by the competent authorities and may not be offered or sold to any national, resident or citizen of the United States, Canada, Australia, Japan or any other country where an offer is unlawful absent exemption or authorization by the competent authorities. This document constitutes neither an offer of securities in Italy pursuant to art. 1, (t) of the Legislative Decree n. 58 of 24 February 1998, as amended, nor an offer of securities for sale in the United States and in any other jurisdiction. No reliance may be placed for any purposes whatsoever on the information contained in this document, or any other material discussed in the context of the presentation of such material, or on its completeness, accuracy or fairness. The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this document or any other material discussed in the context of the presentation of this document. None of the Company, nor any of its respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection therewith.The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Attendees at this presentation must be aware that the information provided may be dated and not current information. No person is under any obligation to update or keep current the information contained in this presentation.This document is strictly confidential and may not be reproduced, distributed to any other person or published, in whole or in part, for any purpose.By attending this presentation and/or accepting this document you acknowledge and agree to be bound by the foregoing limitations.
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Contents
Juventus: history and legend
Economic and financial data 30/06/10
Objectives
Juventus new stadium
Q&A
Commercial strategy
Sector evolution
6
Juventus is the most famous and successful football club in Italy…
… and one of the leading teams in Europe
Juventus: history and legend
7
Juventus has always been linked to style and continuity thanks to over 85 years’ of strong commitment by the Agnelli family
Juventus: history and legend
8*one of which revoked (04/05) and one not assigned (05/06)
9 Italian Cups
29 Italian Championships*
4 Italian Super Cups
Juventus: history and legend
9
3 UEFA Cups
2 European Super Cups
2 UEFA Champions League
1 Cup Winners’ Cup
2 Intercontinental Cups
Juventus: history and legend
11
Mission
Being a leading club in Europe and a successful listed Company
Obtaining high sports performance and keeping it up on the field, developing a sustainable business model
Leading change in football in Italy and to position Juventus as the benchmark of a modern football company, close to its fans and respecting educational values in sport
Managing the Company with utmost professionalism
12
Juventus today
Business project with a long-term vision
Professional and motivated new organisation
Competitive team, with great champions and outstanding young players
Successful development of young talents
Efficient scouting sector
13
Build the future with the Youth Sector
Approximately € 6 million invested per year
34 young players in senior championships
60 technical staff
329 players
17 teams
Figures
In February 2010 the Primavera team won the prestigious international Viareggio Tournament for the second consecutive year, bringing its tally of victories up to seven, five of these were won in the last eight years
14
Build the future with the Youth Sector
Shifting focus on results to attention on talents
A professional, integrated football school, of European standing, to enhance both technique and athletic abilities of youth players, especially Italians, and regularly bring new talents into the First Team
Education on values
Collaboration of the First Team’s technical staff with the Youth Sector trainers
First Team trainer trusts in and gives space to talented young players
16
New rules for the centralised commercialisation of audiovisual rights from 2010/2011 season
On 27th January 2009 the LNP underwrote a consultancy and strategic collaboration agreement with Infront Italy S.r.l. for centralised commercialisation, for the national and international markets, of audiovisual rights for the Italian Championship’s Serie A and B and the Italian Cup. The agreement will last 6 years, starting from 2010/2011 season, and Infront has guaranteed to LNP a minimum result of € 900 million per annum
First TV agreements signed by LNP for the 2010/2011 and 2011/2012 seasons
Television rights market
17
The new distribution system:
40% to be equally shared by teams
30% to be distributed on criteria referred to fan base (25%) and city inhabitants (5%)
30% to be allocated on a sport performance base:
Television rights market
15% referred to historical championship results up to 5 years ago
10% related to last 5 years performance
5% linked to last year’s result
18
Juventus’ centralised revenues from LNP
(1) These agreements include some friendly match rights
FY New format(3)€/m2009/10 2010/11 2011/12
SKY/Mediaset agreements(1) 112.2Net mutuality (12.9)
Championship rights 99.3 88.2 95.2Other TV rights(2) 11.9 13.9 9.5
Total 111.2 102.1 104.7
(3) Juventus estimates take previously assigned rights into account (i.e. satellite, DTT, highlights, radio and foreign rights, for a total amount of € 970 million in the 2010/2011 season and € 990 million in the 2011/2012 season)
(2) Including some option rights
19
Introduce more discipline and rationality in club football finances
Encourage clubs to compete with their revenues
Decrease pressure on players’ salaries and transfer fees and limit inflationary effect
Ensure clubs settle their liabilities on a timely basis
Encourage club’s long term investments (infrastructure, youth)
Protect the long term viability and sustainability of European football
Financial Fair Play - objectives
20
The Break-even rule – a multi-year approach
Debt level vs relevant income ratio
Enhance no overdue payables rule (new assessment dates within UEFA licence process)
Enhance future financial information rule if a club has breached an indicator
Implementation from 2012/2013 season
Financial Fair Play – proposed measures
21
Football Money League 2010
Source: Football Money League 2010 - Deloitte
FML 2010 FML 2009 FML 2008
Real Madrid 1 1 1FC Barcelona 2 3 3Manchester United 3 2 2Bayern Munich 4 4 7Arsenal 5 6 5Chelsea 6 5 4Liverpool 7 8 8Juventus 8 11 12Internazionale 9 10 9AC Milan 10 7 6Hamburger BV 11 15 15AS Roma 12 9 11Olympique Lyonnais 13 12 13Olympique de Marseille 14 16 19Tottenham Hotspur 15 14 10Schalke 04 16 13 16Werder Bremen 17 new newBorussia Dortmund 18 20 newManchester City 19 new newNewcastle United 20 17 14
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Football Money League
Source: Football Money League 2010 - Deloitte
101.4
95.5
127.7
60.6
117.5
87.4
49.9
28.2
33.4
55.5
18.8
22.4
24.9
46.3
29.2
27.8
22.2
24.4
34.1
160.8
158.4
117.1
69.6
89
92.9
87.6
132.2
115.7
99
35.6
86.9
68.1
65.6
52.6
34.2
61.2
22.4
56.7
44.1
139.2
112
82.2
159.3
56.5
62
79.5
54.3
52.6
64.1
55.6
40.7
49.1
42.7
33.8
61.1
25.7
58.9
21.1
22.8
16.7
0 50 100 150 200 250 300 350 400
Real Madrid
FC Barcelona
Manchester Utd
Bayern MunichArsenal
Chelsea
Liverpool
JuventusInternazionale
AC Milan
Hamburger SV
AS RomaO. Lyonnais
O. de Marseille
Tottenham
Schalke 04Werder Bremen
Borussia Dort.
Manchester City
Newcastle United
€m
Matchday Broadcast Sponsorship and other commercial
401.4365.9327.0289.5263.0242.3217.0203.2196.5196.5146.7146.4139.6
101.0
114.7
133.2132.7124.5
103.5102.2
TOTAL
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Getting the right First Team mix
Assuring compatibility between players’ skills and roles with trainer tactic mindset
Average First Team age lower than last season
Reduction of player salary lump sums
New player contractual agreements with a high variable based on individual performance
25
The commercial strategy
Juventus has always been a strongly innovative player in the sponsorship market
Thanks to its enormous media coverage and its worldwide fan base, a commercial strategy to move into a new marketplace has been put in action
As of the 2007/2008 season, Juventus has developed a complete, exclusive and innovative offer to tackle new “competitors”: not only Italian and European football clubs, but major global sports events (i.e. Champions League, World Cup)
26
“Less is more”
Limited and select group of national and international
partners to enhance the Juventus brand
Higher visibility of partner brands
Increase in average value of contracts
Creation of more stable and lasting relations
More value transferred to partners
Objectives
The commercial strategy
27
Inter 09-10 Milan 09-10 Juventus 09-10
I tier 27 20 11
II tier 51 25 -
Crowd reduction is a strategic point of major importance to increase the basic value of the partnership
This reduction means:
• elimination of the second tier as of 2007/2008 season• progressive reduction of visible partners
In 3 years the number of brands exposed has been reduced by approximately 40%
The commercial strategy
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63.1%
6.1%
19.0%
4.1%7.7%
Revenue breakdown
TV RIGHTS AND MEDIA REVENUES
TICKET SALES
SPONSORSHIP AND ADVERTISING
OTHER REVENUES
2008/2009
€ 240.4 million
REVENUES FROM PLAYERS’ REGISTRATION RIGHTS
2009/2010
€ 240.2 million
7.2%
62.5%
19.2%
3.4%7.7%
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Revenue trend
226.0
186.7203.7
240.4 240.2
-
50
100
150
200
250
300
05/06 06/07 07/08 08/09 09/10
€/m
31
MATERIALS, SUPPLIES AND OTHER CONSUMABLES
PLAYERS’ WAGES AND TECHNICAL STAFF
EXTERNAL SERVICES
OTHER COSTS
Operating cost breakdown
EXPENSES FROM PLAYERS’ REGISTRATION RIGHTS
OTHER PERSONNEL
2008/2009
€ 194.2 million
1.2%
14.3%
66.6%
12.4%
4.4%1.1%
2009/2010
€ 196.5 million
1.1%
13.9%
64.7%
12.9%
5.7%
1.7%
32
Revenues and operating costs
€/millionFinancial year
2009/2010Financial year
2008/2009
Ticket sales 18.5 18.4Television and radio rights and media revenues 151.4 150.4Revenues from sponsorship and advertising 45.7 46.1Revenues from players' registration rights 14.6 17.3Other revenues 10.0 8.2TOTAL REVENUES 240.2 240.4
Purchase of materials, supplies and other consumables (2.2) (2.3)External services (27.3) (27.8)Players' wages and technical staff costs (127.0) (129.3)Other personnel (11.2) (8.5)Expenses from players' registration rights (3.4) (2.3)Other costs (25.4) (24.0)TOTAL OPERATING COSTS (196.5) (194.2)
33
Income statement
€/millionFinancial year
2009/2010Financial year
2008/2009
TOTAL REVENUES 240.2 240.4
TOTAL OPERATING COSTS (196.5) (194.2)
Amortisation and write-downs of players' registration rights (39.5) (28.0)Other amortisation, write-downs and provisions (2.1) (4.3)Other non recurring revenues and costs 3.1 -
OPERATING INCOME 5.2 13.9
Financial income 3.6 4.2Financial expenses (6.7) (4.7)
INCOME BEFORE TAXES 2.1 13.4
Current taxes (5.6) (5.5)Deferred taxes (7.5) (1.3)
NET INCOME (11.0) 6.6
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Net Income trend
-46.0
-20.8
6.6
-11.0-0.9
-50
-40
-30
-20
-10
-
10
05/06 06/07 07/08 08/09 09/10
€/m
35
Statement of financial position
ASSETS€/million 30/06/10 30/06/09
Players' registration rights 93.0 79.3Other intangible assets 14.4 14.0Land and buildings 22.7 18.4Other tangible assets 2.9 3.0Tangible assets in progress 43.3 10.0Non-current financial assets 2.2 -Other non-current assets 40.7 59.3TOTAL NON-CURRENT ASSETS 219.2 184.0
Current financial assets - 0.1Cash and cash equivalents 37.2 42.1Other current assets 34.9 50.6TOTAL CURRENT ASSETS 72.1 92.8
ASSETS HELD FOR SALE - 3.4
TOTAL ASSETS 291.3 280.2
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Statement of financial position
EQUITY AND LIABILITIES€/million 30/06/10 30/06/09
Share capital 20.2 20.2Reserves 81.1 75.0Income for the period (11.0) 6.6SHAREHOLDERS' EQUITY 90.3 101.8
Provisions for risks and charges 1.6 18.2Bonds and other financial liabilities 30.4 15.0Other non-current liabilities 63.0 51.6TOTAL NON-CURRENT LIABILITIES 95.0 84.8
Provisions for risks and charges 1.4 -Bonds and other financial liabilities 2.6 1.6Other current liabilities 102.0 92.0TOTAL CURRENT LIABILITIES 106.0 93.6
TOTAL EQUITY AND LIABILITIES 291.3 280.2
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Net Financial Position
€/million 30/06/10 30/06/09 30/06/08 30/06/07
CASH 37.2 42.1 28.1 40.5
OTHER FINANCIAL ASSETS 2.2 0.1 0.7 -
DEBTS TO LEASING COMPANY (19.8) (16.6) (17.5) (18.8)
DEBTS TO ICS (STADIUM) (12.5) - - -
OTHER FINANCIAL LIABILITIES (0.7) - - -
NET FINANCIAL POSITION 6.4 25.6 11.3 21.7
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Net Financial Position trend
21.725.6
6.4
-12.9
11.3
-20
-15
-10
-5
-
5
10
15
20
25
30
05/06 06/07 07/08 08/09 09/10
€/m
40
Mission
To create a unique and special facility, where watching a
game will always be an intense and first-class emotion
for Juventus fans
41
Positioning
The Juventus new stadium will be devoted to families and
entertainment, open 24/7, and will reach its climax at all
Juventus games: an intense, amazing, safe and injecting
emotions
42
• Maximum visibility and proximity to the game field (about 7.5 metres from the field)
• Cutting edge technological and emergency standards
• Exclusive services dedicated to families, fans and corporate customers
• High level of interaction with the adjacent commercial area
• “Made in Italy” Stadium – Italian design: Pininfarina and Giugiaro
Guidelines
The new Juventus stadium will be the future benchmark for the sport venue market in Italy thanks to 5 main features:
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The stadium area
37,000 m2 hosting facilities dedicated to people attending the event (Corporate & Fan) and match organisation
45,000 m2
inside the stadium
45,000 m2
inside the stadium
8,000 m2 dedicated to commercial activities partially linked with the sport business: wellness centre, Juventus Store, museum
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Key figures
41,000 seats
62 sky boxes
3,736 VIP seats with hospitality services
4,000 car parks
In line with a new idea of football and innovative in Italy
High visibility (about 7.5 metres to the pitch)
Family-friendly facility
45
Standard Standard Seats & Seats & ServicesServices
Premium SeatsPremium Seats
Facilities &Facilities &EventsEvents
Naming rightNaming right
Stadium income mix
STADIUMINCOMES
46
The new stadium will be able to generate income from four areas that represent four distinct sources of revenues:
1. NAMING RIGHT: agreement with Sportfive (until 2023)
2. PREMIUM SEATS: Club Gianni e Umberto Agnelli, T100, Sky Boxes and the other VIP seats (partially sold to Sportfive until 2023)
3. STANDARD SEATS & SERVICES: other stands with food service and merchandising
4. FACILITIES AND EVENTS: museum, stadium walk around, paving
Stadium income mix
In November 2009 the Sales Centre of Galleria San Federico in Turin was inaugurated
The Sales Centre, first in Italy of its kind, hosts the entire sales force (jointly created with Sportfive) dedicated to premium seat commercialisation, beyond Juventus traditional “ticket office”
To date, over 1.250 premium seats have been sold (approximately 40% of all premium seats available). With a further 10% of premium seats reserved to Juventus sponsors and partners, 50% of premium seats are still available
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March 2008: project approved by the BoD
April 2008: Sportfive agreement signed
September 2008: demolition tender
November 2008: beginning of demolition activities
December 2008: Nordiconad preliminary agreement signed
December 2008 – February 2009: building tender
March 2009: ICS loan contract signed
May 2009: signing of the contract with the General Contractor of the building activities
June 2009: end of demolition activities
June 2009: start of building activities
December 2009: Nordiconad notary deed signed
• May 2011: end of building activities
• August 2011: opening
The project time line
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Expected capital expenditure
€/million
Demolition and building works(including electro-technical systems, fluid-mechanical systems and the playing field) 83.1Furnishing, fittings and special equipment 12.3
Total construction costs 95.4
Technical expenses (infrastructure required by the City of Turin, designers, PM&C) 21.0Unforeseen expenses and additional costsfor changes with work in progress 3.6
Total capital expenditure* 120.0
* As approved by the BoD on 10th May 2010. These figures do not include Museum costs
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The three ‘pillars’ to cover the investment in the new stadium are:
Sportfive agreement of 18th April 2008, with the definition of a minimum guaranteed value of € 75 million, approximately 50% in advance payment (€ 26 million has already been cashed in)
sale to Nordiconad group of the commercial areas outside the stadium for a sum of € 20.25 million (notary deed signed on 1st December 2009)
two loan contracts for a total of € 60 million underwritten with the Istituto per il Credito Sportivo on 20th March 2009 and on 14th May 2010 guaranteed by mortgage, annual instalments from Sportfive and some upcoming ticket sales
The project financing
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Sportfive agreement
On 18th April 2008 Juventus and Sportfive Italia S.p.A. (owned by SPORTFIVE Group, a company of Lagardère Sports Group, the European leader in the fields of sports rights marketing), signed a long term strategic partnership
Sportfive is entitled to sell the new stadium naming right in an exclusive basis and market part of the sky boxes and VIP seats
The partnership will last until the twelfth year after new stadium construction
The agreement provides an overall base compensation of € 6.25 million per annum for 12 years. The agreement envisages a significant part of advanced payments during construction (€ 26 million to date)
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34,000 m2
outside the stadium area
23,000 m2 Retail centre and commercial gallery
7,000 m2 Commercial retail
4,000 m2 Commercial retail
The commercial areas
58
Nordiconad agreement
On 19th December 2008 Juventus and Nordiconad Soc. Coop. (a leading food retailing co-operative in Italy and member of the CONAD national consortium) stipulated a preliminary sale contract for the sale by Juventus to Nordiconad of the company business, including part of the areas acquired with the long-term lease, the project for the commercial areas and relevant commercial authorisations, for a sum of € 20.25 million
The building permits were issued by the City of Turin on 19th
November 2009 and the notary deed related to the company business sale was signed on 1st December 2009
The agreement envisages the construction by Nordiconad group of an innovative, modern commercial centre integrated into the Stadium area
Nordiconad will also pay infrastructure costs required by City of Turin for development of the area for approx € 9.1 million
The overall economic impact of the sale on the 2009/2010 financial year is positive by € 3.1 million
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ICS loan contracts
On 20th March 2009 and on 14th May 2010 two loan contracts were signed with the Istituto per il Credito Sportivo for a total sum of € 60 million with a duration of 12 years, destined entirely to finance the construction of the new stadium
The loans envisage a pre-amortisation period of maximum 3 years at an interest rate of EURIBOR 6M + 200 bp
For the amortisation period, an interest rate of IRS 6Y (to be defined when financing is fully received by Juventus) + 220 bp has been fixed. In addition, Juventus will benefit from a contribution to interest as permitted by the regulations in force
Juventus hedged the interest rate risk: the interest rate for the pre- amortisation period was set at 4.68% and option rights to cap at maximum 6% the interest rate for the twelve year amortisation period were acquired
To date, € 20 million, out of € 60 million, have been collected
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