Dear Shareholders, Juventus has reconfirmed its role as one of the main stars of international and Italian football in the 2000/2001 season (in the last seven years Juventus has won the Serie A Championship three times and has been runner up three times). These excellent sporting results are flanked by equally successful financial results. Not only has your Company closed the financial year with a profit for the fifth year running, but it will also distribute dividends to shareholders of almost 20% of net profit for the third year running. Juventus has consolidated and increased its leadership in various areas, the first one being the team's fans. Several reliable market research projects have shown that the number of bianconeri supporters has grown tremendously, not only in Italy but in Europe, where Juventus is now the leading team, with over 17 million supporters. Your Company has also been extremely active in the business sector, an area in which it has been responsible for extensive innovation over recent

CHAIRMAN’S STATEMENT years, and where it is recognised as a role model for the whole market. Juventus currently has over 120 partner companies, with whom it has a solid and mutually stimulating relationship. The avant-garde policies for promoting the Juventus image and brand name have proved successful thanks to the excellent management of television rights and important new developments in the most modern forms of communication, based upon SMS, WAP, GSM and UMTS technologies. The same attention paid to new technologies and new forms of social communication has been given to increasing the Company's presence on the Web where, with the opening of a new virtual shop and a business-tobusiness site (the first Italian website in the sector), the club now has three official sites. The management of the image of the individual football players, unique in its kind among European football clubs, has also been extremely successful. The creation of a more structured commercial policy for markets in the Far East, an area which has extraordinary potential for the bianconeri brand name, has taken on particular strategic value. The 2000/2001 season also represents an important moment in the evolution of your Company. Strategic new investments are being made to increase the company value and allow for interesting future developments. An example of this is the acquisition of 96.6% of Campi di Vinovo S.p.A., owner of almost 500,000 m2 of land upon which the Sports Centre is to be built. Now approximately 300 Juventus footballers will have their

own permanent training and sports facility. Furthermore, plans are underway to turn part of the area which is not destined for the sports centre into leisure, entertainment and shopping facilities. We should certainly not forget the purchase of the valuable and prestigious building located in Turin at Corso Galileo Ferraris 32, which perfectly suits the Company's image and to which the registered offices have been transferred. This is the first building to be fully owned by Juventus in its more the one hundred year history. The strategy and projects described above have triggered a process which will enable Juventus to evolve from being a modern football club and media company to being an international leisure group, the first in the world of Italian football. I would also like to highlight the constant commitment that your Company has to social activities. Alongside the projects begun over recent years (Fatti e Progetti per i Giovani with the Don Bosco Missions, and the co-operation with the Fondazione Piemontese per la Ricerca sul Cancro), First Team football players took part during 2000/2001 in an important project in favour of the Gaslini Hospital in Genoa (Un Sogno per il Gaslini), aimed at creating structures to welcome and entertain the hospitalised children. A derby was played against Torino in December 2000 and all gate receipts were donated to victims of the floods which hit Piedmont and Valle d'Aosta. Thanks to these important projects, "VITA non profit magazine" awarded Juventus the Solidarity Scudetto. Lastly, on 19 July, 2001 the Juventus Board of Directors approved plans to list the Company on the MTA. Listing on the Stock Exchange will represent an important phase in the evolution of your Company and will strengthen its economic and sporting leadership. Looking forward to further success, in keeping with the history and recent past of your Company, I, along with the Board of Directors, would like to thank all Shareholders and Statutory and Independent Auditors for their commitment, and Managers, Staff, Coaching staff and Athletes for the energy expended and the results achieved.

The Chairman

7

BEYOND THE FOOTBALL

A Company moving forward, evolving from football club to leisure group. Strengthened by the values of its brand name.

The area for the MONDO JUVE project

Victory 45% History 44% Professionalism 42% Legend 39%

PITCH Turnover Euro 173,423,512. Net Profit Euro 5,774,627. Dividend Euro 1,123,219. 17 million supporters throughout Europe, the number one team. Over 11 million in Italy, 37% of football supporters. 120 partner companies. Over 5,000,000 monthly page impressions.

9

E M O T I O N S AT

Champions

Italian Cup

Serie A

League Cup

1937/38

Championship

1984/85

1941/42

1905

1995/96

1958/59

1925/26

1959/60

1930/31

1964/65

1931/32

1978/79

1932/33

1982/83

1933/34

1989/90

1934/35

1994/95

1949/50 1951/52 1957/58

THE TOP

1959/60 1960/61 1966/67

Uefa Cup

1971/72

1976/77 1989/90 1992/93

1972/73 1974/75 1976/77

Cup Winners’ Cup

1977/78

1983/84

1980/81 1981/82 1983/84

Intercontinental Cup

Italian Super Cup

1985 1996

1995

1985/86

1997

1994/95 1996/97

European Super Cup

1997/98

1985 1996 11

SOLID

o

Turnover r

140,000

u d

e

2000/01

n

60,000

u

s

40,000

o

20,000 1996/97

1997/98

1998/99

1999/00

200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

173,424

1996/97

1997/98

1998/99

1999/00

2000/01

t

0

t

h

o

u

s

a

a

80,000

116,555

h

e

100,000

d

120,000

n

u

r

o

Cost of players’ registrations

45,000

41,507

e

u

r

o

Revenues from sponsors/advertising

40,000 35,000

d n

20,000

a

15,000 10,000

o

0

1996/97

1997/98

1998/99

1999/00

2000/01

t

5,000

h

u

25,000

s

30,000

VITALITY

e

25,000

d

20,000 15,000

a

20,000

1996/97

1997/98

1998/99

1999/00

2000/01

u

s t

0

9,000

e

u

r

o

Net profit

8,000 7,000 5,775

6,000 d

2000/01

5,000

n

1999/00

4,000

a

1998/99

3,000

s

1997/98

2,000

u

1996/97

h

o

5,000

o

u

10,000

1,000

h

0

0

t

n

d

40,000

s

a

60,000

o h

32,460

r u

30,000

80,000

t

35,000

n

96,189

100,000

e

u

Shareholders’ equity o

120,000

r

o

Revenues from TV, telephonic and UCL rights

1996/97

1997/98

1998/99

1999/00

2000/01

13

SUCCESS AND

Exclusive merchandising rights with partners, restricted high visibility advertising space inside the stadium, development of player marketing Department. Confirmation of the Juventus F.C. commercial strategy. Choices that are bringing rewards. 120 partner companies. 21 football players with contracts for image use rights. 53 advertising agreements overall.

STARDOM These notable results have recently been reinforced by the OFFICIAL SPONSORS TECHNICAL SPONSORS (2) (2)

INSTITUTIONAL SPONSORS (11)

OFFICIAL SUPPLIERS (16)

contract with the British company, Giraffe Entertainment, for the development of licensing in the Far East. This is a region with 3 billion

TECHNICAL SUPPLIERS (4)

OFFICIAL LICENSEES (69)

inhabitants and extraordinary commercial potential.

COMMERCIAL PARTNERS AND OTHER COMMERCIAL CONTRACTS (16)

The bianconeri club is the first Italian Football Company to take this important step with commitment and determination.

15

RENEWED

The acquisition of a company which owns an area of 500,000 square metres, to house MONDO JUVE. A move which adds to the Company’s assets, A prestigious new head office, the

puts the development plan centred

first one fully owned by the club

on business diversification into practice

in its history.

and consolidates plans to evolve into a

3,700 square metres in the heart

leisure group.

of the city. For the Juventus of today and tomorrow. A green field area near the

PRESTIGE

Hunting Lodge of Stupinigi, designed with total respect for the environment. A state-of-the-art Sports Centre. An entertainment

JUVE

park, with leisure and shopping facilities.

MONDO An ambitious town planning redevelopment project which, thanks to the aid of the towns of Nichelino and Vinovo, will improve the road network in the whole area. 17

P A S S I O N

U N

The corporate website Juventus.com, is followed by the virtual shop, Juvestore.it the first to be launched in the world of football Juventus F.C. also plays to win in b2b. JuventusBiz.com, the website reserved for and dedicated to the Company’s commercial partners came on line in May 2001.

LIMITED Accesses

juventus.com Over 5 million page impressions. 500,000 unique users. Over 40,000 registered users.

Italy 23%

Visits lasting over 6 minutes. Rest of the World 77%

juvestore.it Sales Italy 18% Europe 61% Rest of the World 21%

19

A COMMITMENT TO SOCIAL

A significant result:

Facts and projects for youth.

the Solidarity Scudetto

A programme which began in 1999

attributed to Juventus F.C. last June by VITA non profit magazine, the most authoritative magazine in the sector.

and continues alongside partners such as: the Don Bosco Missions in Turin, committed to helping underprivileged

An acknowledgement of the social responsibility that characterises the activity of the bianconeri Club.

young people; Turin University - Economics Department - which, every year, awards 10 Sport Management scholarships in memory of Giovanni

AWARENESS

Alberto Agnelli.

The Juventus - Torino derby of the heart in favour of the Sermig Missionary Service and Regione Autonoma Valle d’Aosta, an area which was devastated by recent flooding. The friendly match between Juventus and Uruguay, for the Fondazione Piemontese per la Ricerca sul Cancro. Un sogno per il Gaslini is more than the title of the book of photographs featuring Juventus F.C. football players. It is the shared social project involving all Juventus athletes, for the renovation of the Abbey of San Gerolamo inside the Genoa hospital, to transform it into a meeting place for young patients and their families. Together, these projects an attentive and socially aware presence.

21

SPONSORS

Official Serie A Championship

EUROPA TV Spa

Institutional

Official U.C.L.

T O G E T H E R W I T H J U V E N T U S F. C . F O R

Technical

Official designer and supplier

TECHNICAL Suppliers MEDISPORT

COMMERCIAL Partners and other contracts

Official LICENSEES Alex Design

Insigna

Casa Juventus

A.T. Cross Company

Ismeg

Alberto Bolaffi

I Santi

Allegrini Spa

Joyco Italia Srl

Arquati cornici

J.M.T.

Art serigraphin

Lisciani Giochi

Bruno Mario

Luciano Antonino

Cabrini Equipe

Manifatture Colombo

Caffè Ninfole

Mariposa Editrice

Caffè Mauro

Market Link Int.

Chicca collection

Moia Ombrelli Spa

CMC

Mondo Spa

Codemaster

New Interplast

Codital

Nuova Ricordi arti graf

Crearreda

Panini Spa

DE-TA

Parmalat

Ditamo

Promovideo

Dolber Spa

Saturnia

Edizioni Archivio

Saul Sodoch Rex

Electronic Arts

Scandecor

Elite Srl

Study tours

Esperia-Bottecchia

Tele System

Euroinde

Totoline

Fashion Team

Trocellen Italia Spa

Fedon

UEFA

First communication

Ursino e C.

Giemme Srl

Virgin Interactive

Giochi Preziosi

VEV Inox casalinghi

Giordano vini Spa

WAW Sports

G.V. snc

Workshop 1954

I.B.S. Design Spa

Zanotta spa

Icam Spa

Zippo Italia

Club 100 Tribuna d’onore

THE 2000/2001 SEASON OFFICIAL Suppliers ATCS Monterosa est Barret Compact DS Data System Edibass Europ Assistance Filsport Multipower by Haleko Podostudio Regione Valle d’Aosta Ronchiverdi Satiz Sportal

23

J U V E N T U S F. C . S p a Registered office in Turin, Corso Galileo Ferraris 32 Share Capital Euro 10,400,179 - fully paid up Registered in the Turin Companies Register n° 00470470014 - REA n° 394963

OFFICERS Board of Directors Chairman Vittorio Caissotti di Chiusano Vice Chairman Roberto Bettega Chief Executive Officer Antonio Giraudo Board of Statutory Auditors Chairman Giorgio Giorgi Auditor Alberto Ferrero Auditor Carlo Re Deputy Auditor Paolo Piccatti

Independent Auditors PricewaterhouseCoopers S.p.A.

Reports and financial statements as at 30 June, 2001

MANAGEMENT REPORT

Dear Shareholders, The 2000/2001 sporting season featured your Team in a leading role in the Serie A Championship, ending the second season running as runners up, with a total of 73 points. This result took Juventus directly through to the first round of the 2001/2002 UEFA Champions League. The Financial Statements as at 30 June, 2001 are drawn up in Euros as this currency was adopted for all accounts from 1 July, 2000. The Financial Statements as at 30 June, 2001 which we are submitting for your approval close with a net profit of E 5.775 million, with an increase of approximately 5% compared with last year, after taxes amounting to approximately E 5 million and amortisation for approximately E 37.7 million. Turnover climbed by E 33.7 million, from E 139.7 to 173.4 million, with an increase of 24% due mainly to the increase in revenues from television and telephonic rights, the UEFA Champions League and sponsorship contracts. The breakdown of revenues for 2000/2001 is the following:

26.4% 55.5% Television-telephonic rights-UEFA Champions League

Sponsors and commerce

10.7% Other revenues

7.4% Gate receipts

The financial year was also characterised by new financial projects to diversify revenue sources, with the stipulation of two seven-year contracts for the sale of telephonic rights (UMTS and SMS-WAP). The official sponsors during 2000/2001 were Europa Tv (TELE+ brand) for the Serie A Championship and Italian Cup, and Sportal for the UEFA Champions League. Technical sponsorship was divided between Ciaoweb S.p.A. for the Serie A Championship and European competitions, and Lotto Italia S.p.A. for the Italian Cup, friendly matches, training material and the youth team strips. The purchase of the rights to use the image of football players continued throughout the year, Juventus

28

is the very first club to have created a department specialised in the management of such rights.

Management Report

The development of this activity, which is still in the early stages, has enabled the stipulation of numerous contracts with companies interested in using Juventus football players in their advertising campaigns, with a consequent increase in related revenues. In terms of new technologies and research into various forms of communication, aimed at offering greater exposure to the Team and the Company, 2 new websites were launched this season: • Juvestore.it, dedicated to the on-line sale of Juventus products in partnership with Ciaoweb S.p.A., which registered the following sales distribution: 18% in Italy, 61% in Europe and 21% in the rest of the world; • JuventusBiz.com, created to offer access to the Juventus world to existing and future commercial partners. The Company’s official website, Juventus.com, also achieved excellent results, registering over 5 million page impressions, with more than 500,000 unique users and 40,000 registered users. On average, individual visits lasted longer than six minutes and access was well distributed: 23% from Italy, with 77% from the rest of the world, 20% of which accounted for by the Far East. Your Company was therefore able to take advantage of all the financial opportunities offered by the market, confirming its name as a football club but also as a media company. Costs amounted to E 190.9 million, with an increase of E 24.5 million, mainly determined by increases in football players’ salaries and amortisation of players’ registration costs (equal to E 37.0 million, +11.7% approx. compared with 1999/2000). The net capital gains from the disposal of players’ registration amount to E 18.4 million, while the termination of player sharing contracts generated net earnings of E 7.9 million. The financial balance of the 2000/2001 transfer campaign was negative by E 32.7 million. In October 2000 a property located in Turin, Corso Galileo Ferraris 32, was purchased and your Company moved its registered offices there in January 2001. Since 1999 your Company has chosen to concentrate its social commitment in the project Fatti e Progetti per i Giovani, together with the Don Bosco Missions. In conjunction with the Economics Department of Turin University, ten Sport Management educational scholarships dedicated to the memory of Giovanni Alberto Agnelli have been awarded as part of this project. Other projects to commemorate the memory of Edoardo Agnelli, who was once a director of the Company, are currently in the research stages. For several years now your Company has worked in conjunction with the Fondazione Piemontese per la Ricerca sul Cancro and all of the proceeds from the friendly match against the Uruguay national team were donated to the Foundation. The gate receipts from the derby played between Juventus and Torino in December 2000 were donated to the victims of the floods which hit Piedmont and the Valle d’Aosta.

29

Reports and financial statements as at 30 June, 2001

MANAGEMENT REPORT The Juventus' First Team players took part in a project in favour of the Gaslini Hospital in Genoa, featuring in a book of photographs and a video. The aim of the project, entitled Un Sogno per il Gaslini, is to create a warm welcome and an entertainment service for the hospital's young patients. RELATIONS WITH THE HOLDING COMPANY AND ITS CONTROLLED COMPANIES The Company's relations with the holding company IFI S.p.A. were of both an economic and financial nature: performance of services, guarantee for the transfer campaign for E 9,205 thousands, fully paid up. The financial and economic relations with companies within the group are summarised below: Values (thousand e)

Receivables 30.06.2001 AUGUSTA ASSICURAZIONI S.P.A. 0 BYTE SOFTWARE HOUSE S.P.A. 0 CIAOWEB S.P.A. 0 CIAOWEB PORTAL S.P.A. 235.9 EDITRICE LA STAMPA S.P.A. 89.6 FENICE S.P.A. 0 FIAT AUTO S.P.A. 495.2 FIAT SEPIN S.P.A. 0 FRANCOROSSO INTERNATIONAL S.P.A. 0 I.T.S. S.R.L. 0 IFI S.P.A. 0.7 IFIL S.P.A. 0 LINGOTTO S.P.A. 223.5 PUBLIKOMPASS S.P.A. 0 SADI S.P.A. 0 SISPORT FIAT S.P.A. 0 SOIEM S.P.A. 0.5 TORO ASSICURAZIONI S.P.A. 0.9 WORKNET SOCIETA’ DI FORNITURA DI LAVORO TEMPORANEO S.P.A. 0 Totals 1,046.3

Payables 30.06.2001 0 120.8 0 0 0 0.6 42.9 5.7 0 2.1 47.8 0 261.3 0 0.1 33.6 23.9 80.8

Income 2000/2001 0 0 6,486.7 345.8 123.8 0 1,799.5 0 0 0 31.9 29.1 182.4 0 0 0 0 380.4

Costs 2000/2001 33.6 62.1 0 0 102.8 0.6 630.4 10.8 30.8 0 191.1 0 292.6 14.2 0.1 40.0 112.5 2,895.2

3 622.6

0 9,379.6

2.9 4,419.7

Juventus F.C. S.p.A., the holding company IFI S.p.A. and the controlled companies took part in the following operations: • purchase, at the nominal value of E 1,460 thousand, of credit with the Tax Authorities by IFI S.p.A.; • purchase of vehicles for E 19.2 thousand from FIAT Auto S.p.A; • purchase of software packages for E 38.6 thousand from Byte Software House S.p.A..

30

Management Report

SIGNIFICANT SUBSEQUENT EVENTS FIFA Regulations In a letter dated 27 June, 2001 the F.I.G.C. - LNP issued FIFA circular no. 759 of 31 May, 2001, summarising the principles of the agreement of 5 March, 2001 between the European Commission, FIFA and UEFA on the international transfers of football players. On 5 July, 2001 FIFA approved the regulations that put the above-mentioned principles into practice. The new FIFA regulations, which are not effective for contracts stipulated prior to 1 September, 2001, unless otherwise agreed between the parties, provides for introduction by the national Federations of a system of national transfers of football players in observance of the new FIFA principles. The new system governing international transfers regulates, among other things, the transfer of football players under the age of eighteen and the training of young football players, and provides for payment of a training compensation, to be shared between all clubs offering training to these football players. An agreement has also been made so that sports contracts must last a minimum of 1 year and a maximum of 5 years. The new system governing international transfers also provides for a period of stability of sports contracts, from 3 to 2 years depending on the football player's age, allowing the player to back out of the contract for sporting just cause, to be established on a case-by-case basis, at the end of the football season. The unilateral breach of the contract, at the end of the period of stability, may only take place at the end of the football season. With the introduction of the principles of the agreement of 5 March, 2001, a stable environment will be created for the training and education of young players. This will enable the promotion of new young talents and will ensure that clubs investing in the training and education process are compensated for the activity performed. Furthermore, the new rules will guarantee contractual stability, which is very important for the fairness of national and international competitions. Transfer campaign for 2001/2002 The financial balance of the 2001/2002 transfer of players was negative by E 11.4 million, while the economic effect is positive, thanks to the sale of several football players in the First Team. The transfer campaign will close in January 2002 in accordance with sporting regulations. Season tickets The season ticket campaign for 2001/2002 is still underway and at the moment 30,977 season tickets have been sold, compared with 35,446 at the same time last season. Official and Technical Sponsors The official sponsor, Europa Tv S.p.A., has sublicensed the sponsorship rights granted by Juventus to Fastweb S.p.A., for the 2001/2002 season. In addition to the agreement with Europa TV S.p.A. as official sponsor of the Team for the Serie A Championship, the Company has signed an important sponsorship contract with TU Mobile S.p.A. for the UEFA Champions League and the Italian Cup. Lotto Italia S.p.A. will be the Juventus Technical Sponsor for the 2001/2002 season. Campi di Vinovo In July 2001, your Company purchased 96.6% of Campi di Vinovo S.p.A., owner of approximately

31

Reports and financial statements as at 30 June, 2001

MANAGEMENT REPORT 500,000 sq of land for the sum of 33.6 billion lire, approximately E 17.4 million. The development plan for the area in the towns of Vinovo and Nichelino, provides for the creation of the Juventus Sports Centre and related businesses in the entertainment, leisure and commercial sectors. The centre will benefit from the constant presence of the Team and will be characterised by the link with the Juventus brand name: this project will allow your Company to become the first authentic Italian "Leisure Group" in the world of football. The Juventus F.C. Sports Centre will provide training facilities for the Youth Sector and the First Team and will be composed of football pitches, gyms and technical facilities. Stadium Your Company feels that it is important to own the stadium in which the Team plays its home matches. For this reason, the Company and Local Authorities have been working towards the acquisition of the "Stadio delle Alpi" and the surrounding area, perhaps in partnership with Torino Calcio S.p.A. With this in mind, Juventus has developed a project for the renovation of the stadium in view of improving the use of the ground, with the creation of new stands and terraces, designating extra available space, of approximately 17,000 square metres, to the creation of café facilities and entertainment areas for supporters. The surrounding area will be dedicated to structures for use in the leisure and entertainment sector which will benefit the sporting activity of Juventus, and will cover approximately 17,000 square metres. Listing on the Stock Exchange On 19 July, 2001 the Juventus Board of Directors approved plans to list the company on the Italian Stock Exchange to be submitted at the Shareholders' Meeting. The listing operation will consist in a combined offering divided into a Public offering (OPVS) to the general public in Italy, and a Placement reserved for professional Italian investors and institutional foreign investors. The combined offering will regard new issue shares taken from a specific increase in capital and existing shares. Banca IMI has been appointed as "Global Co-ordinator" and Sponsor. Miscellaneous As far as the investigation by the Turin Judicial Authority regarding the possible improper use of medicines by Juventus football players is concerned, the Company's defence has presented extensive pharmacological and medical evidence to dispute accusations on every front. On the basis of this technical documentation the Preliminary Investigation Judge was asked to authorise a report to settle the controversy between the Juventus consultants and the Prosecution. Following opposition by the Prosecution, which presented a different interpretation of the legal procedure on the matter, the PI Judge raised a question of constitutional legitimacy of the normative indicated by the Prosecution, with the consequent transmission of the acts to the Constitutional Court. At the hearing on 20 February, 2001 the proposed exception was declared to be inadmissible inasmuch as the report requested was not urgent. Consequently the Prosecution called for the indictment of the CEO director and the company doctor, and the first hearing in the case before the monocratic court is set for 31 January, 2002.

32

Management Report

On 17 May, 2001 the footballer Edgar Davids was suspended on cautionary grounds from professional sporting activity, as part of an investigation by the sporting authorities for presumed use of unauthorised pharmaceutical substances. On 3 August, 2001 the CONI Antidoping Body requested the player's suspension from professional sporting activity for a period of 8 months, starting from 17 May, 2001 and a fine of Lit. 200 million. To date a hearing has yet to be set before the Disciplinary Commission of the FIGC. FUTURE OUTLOOK A positive result is forecast for the 2001/2002 financial year, considering the significant capital gains on the sale of several First Team football players. This forecast will, as usual, be conditioned by the current season. PROPOSAL FOR THE DESTINATION OF NET PROFIT Dear Shareholders, We would like to conclude the management report by inviting you to approve the Financial Statements as at 30 June, 2001, which close with a net profit of

E

5,774,626.65, the destination of which is

proposed as follows: E

• 5% to the Legal Reserve

288,731.33

• 10% as provided for by art. 21 of the Company By-laws, to be used for youth training schools and technical-sports training

577,462.67

• to shareholders, E 0.054 for each of the 20,800,358 nominal shares of E 0.50 currently in circulation

1,123,219.33

• the remainder to be retained

3,785,213.32

Overall net profit 2000/2001

5,774,626.65

We wish to inform you that any rounding off at the time of payment of dividends will be charged to the "Profits retained" reserve. The proposed dividend, due for payment as of 5 September, 2001 is attributed full ordinary tax credit of 56.25%. 14 August, 2001

On behalf of the Board of Directors The Chairman Vittorio Caissotti di Chiusano

33

Reports and financial statements as at 30 June, 2001

FINANCIAL STATEMENTS AS AT 30 JUNE, 2001 BALANCE SHEET Values (E)

ASSETS

30/06/2000

Variation

B)

FIXED ASSETS

I)

INTANGIBILE FIXED ASSETS: 1) Start-up and organization costs 3) Royalties for industrial patents and use of intellectual property 6) Fixed assets in progress and advance payments 8) Cost of players’ registrations 9) Other fixed assets Total

-

2,746

(2,746)

457,982 85,596 116,555,264 117,098,842

481,746 99,068,379 3,011 99,555,882

(23,764) 85,596 17,486,885 (3,011) 17,542,960

TANGIBLE FIXED ASSETS: 1) Land and buildings 2) Plants and machinery 3) Industrial and commercial equipment 4) Other assets 5) Fixed assets under construction and advance payments Total

6,933,146 322,882 389,576 400,255 472,149 8,518,008

395,798 430,387 279,732 697,217 1,803,134

6,933,146 (72,916) (40,811) 120,523 (225,068) 6,714,874

14,376,871 342,147

9,353,809 407,587

5,023,062 (65,440)

1,328,052 16,047,070

40,505 9,801,901

1,287,547 6,245,169

141,663,920

111,160,917

30,503,003

II)

III)

INVESTMENTS, with separate indication, for each item, of the amounts collectable within one year: 1) Shareholdings: c) players’ sharing costs ex Art. 102 bis N.O.I.F. d) in other companies 2) Receivables: d) from others Total TOTAL FIXED ASSETS (B)

34

30/06/2001

Balance sheet

Values (E)

ASSETS

30/06/2001

30/06/2000

Variation

53,967,348 744 10,503,586 64,471,678

43,437,972 651 19,005,527 62,444,150

10,529,376 93 (8,501,941) 2,027,528

2,636,919 2,636,919

-

2,636,919 2,636,919

CASH AT BANK AND IN HAND: 1) Bank and post-office deposits 3) Cash at bank and in hand Total

64,908,219 9,453 64,917,672

95,006,403 5,420 95,011,823

(30,098,184) 4,033 (30,094,151)

TOTAL CURRENT ASSETS (C)

132,026,269

157,455,973

(25,429,704)

2,101,569

1,427,872

673,697

275,791,758

270,044,762

5,746,996

C)

CURRENT ASSETS

II)

RECEIVABLES, with separate indication, for each item, of the amounts collectable after one year: 1) Trade receivables* 4) Due from holding company 5) Due from others Total

III)

IV)

D)

CURRENT FINANCIAL ASSETS 6) Other securities Total

ACCRUED INCOME AND PREPAID EXPENSES TOTAL ASSETS

* Of which E 10,489,033 collectable after one year

35

Reports and financial statements as at 30 June, 2001

FINANCIAL STATEMENTS AS AT 30 JUNE, 2001 BALANCE SHEET Values (E)

LIABILITIES A) I) IV) VIII) IX)

B)

C)

D)

30/06/2001

30/06/2000

Variation

SHAREHOLDERS’ EQUITY SHARE CAPITAL LEGAL RESERVE RETAINED PROFITS NET PROFIT

10,400,179 1,347,381 14,937,711 5,774,627

10,742,489 729,518 11,327,563 5,511,055

(342,310) 617,863 3,610,148 263,572

TOTAL SHAREHOLDERS’ EQUITY (A)

32,459,898

28,310,625

4,149,273

2) TAX PROVISIONS 3) OTHERS

300,000 4,109,891

3,353,241 2,333,352

(3,053,241) 1,776,539

TOTAL PROVISIONS FOR LIABILITIES AND EXPENSES (B)

4,409,891

5,686,593

(1,276,702)

EMPLOYEES’ SEVERANCE INDEMNITY

1,415,652

1,109,289

306,363

4,711,110 47,780 9,750,493

2,390,097 15,820,407

2,321,013 47,780 (6,069,914)

355,589 18,296,178

282,832 16,462,999

72,757 1,833,179

7,695,208 57,466,702

2,530,639 65,108,175

5,164,569 (7,641,473)

98,323,060

102,595,149

(4,272,089)

ACCRUED LIABILITIES AND DEFERRED INCOME

139,183,257

132,343,106

6,840,151

TOTAL LIABILITIES

275,791,758

270,044,762

5,746,996

PROVISIONS FOR LIABILITIES AND EXPENSES

PAYABLES, with separate indication, for each item, of the amounts collectable after one year. 6) TRADE PAYABLES 10) DUE TO HOLDING COMPANIES 11) TAXES PAYABLES 12) DUE TO SOCIAL SECURITY BODIES 13) OTHER PAYABLES 14) DUE FOR PLAYERS’ SHARING COSTS EX ART. 102 BIS N.O.I.F. 16) DUE TO SPECIFIC SECTOR* TOTAL PAYABLES (D)

E)

* of which E 28,527,127 collectable after one year

36

Balance sheet

Values (E)

MEMORANDUM ACCOUNTS

30/06/2001

30/06/2000

Variation

THIRD PARTY GUARANTEES IN FAVOUR OF THIRD PARTIES - Risks for guarantees granted

41,344,286

43,970,300

(2,626,014)

THIRD PARTY GUARANTEES IN OUR FAVOUR Risks for guarantees received from third parties

17,963,817

79,214,540

(61,250,723)

3,413,851

13,363,568

(9,949,717)

FORWARD AGREEMENTS - PAYABLES

13,841,892

13,054,501

787,391

COMMITMENTS FOR PURCHASE OF PLAYERS’ REGISTRATIONS - Transfer of players 2001/02

47,656,060

44,312,298

3,343,762

COMMITMENTS FOR DISPOSALS OF PLAYERS’ REGISTRATIONS - Transfer of players 2001/02

3,522,236

37,961,153

(34,438,917)

-

6,972,168

(6,972,168)

40,324

138,185

(97,861)

339,560

-

339,560

17,356,567

-

17,356,567

145,478,593

238,986,713

(93,508,120)

FORWARD AGREEMENTS - RECEIVABLES

COMMITMENT FOR PURCHASE OF PROPERTY THIRD PARTY ASSETS HELD BY THE COMPANY COMPANY ASSETS HELD BY THIRD PARTIES COMMITMENTS FOR PURCHASE OF SHAREHOLDING TOTAL MEMORANDUM ACCOUNTS

37

Reports and financial statements as at 30 June, 2001

FINANCIAL STATEMENTS AS AT 30 JUNE, 2001 INCOME STATEMENT Values (E)

A)

B)

Variation

1) REVENUES FROM SALES AND SERVICES 5) OTHER REVENUES AND INCOME a) Income from temporary transfer of players b) Contributions from F.I.G.C. - LNP d) Sponsorship and other revenues e) Other revenues and income

12,835,098

14,644,697

(1,809,599)

2,002,993 142,525,616 16,059,805

958,733 440,021 113,137,303 10,496,798

1,044,260 (440,021) 29,388,313 5,563,007

TOTAL PRODUCTION VALUE (A)

173,423,512

139,677,552

33,745,960

1,996,873 25,677,262 2,516,660

1,357,848 25,412,741 3,338,272

639,025 264,521 (821,612)

98,661,761 1,727,725 379,366 179,387

76,917,777 1,423,755 346,628 91,181

21,743,984 303,970 32,738 88,206

37,247,189

33,612,305

3,634,884

454,840

317,653

137,187

4,463,986

520,893

3,943,093

1,781,445

1,816,895

(35,450)

401,808 103,769 4,261 15,297,754

385,213 98,759 5,292 20,733,306

16,595 5,010 (1,031) (5,435,552)

TOTAL PRODUCTION COSTS (B)

190,894,086

166,378,518

24,515,568

DIFFERENCE BETWEEN PRODUCTION VALUE AND COSTS (A-B)

(17,470,574)

(26,700,966)

9,230,392

1,241 237,507

1,311 1,066,097

(70) (828,590)

PRODUCTION COSTS PURCHASES SERVICE EXPENSES LEASE AND RENT COSTS PERSONNEL EXPENSES a) Salaries and wages b) Social security contributions c) Severance indemnity e) Other costs 10) AMORTISATION AND DEPRECIATION a) Amortisation of intangible fixed assets b) Depreciation of tangible fixed assets d) Write-downs of receivables entered under current assets and Cash at bank and in hand 12) ACCRUALS FOR RISKS Other risks 14) OTHER OPERATING EXPENSES a) Match organisation expenses b) Official match expenses c) Match registration fees d) Other

FINANCIAL INCOME AND EXPENSES 16) OTHER FINANCIAL INCOME a) from receivables entered under fixed assets, with separate indication of those from controlled and subsidiary companies and those from holding companies c) from securities entered under current assets

38

30/06/2000

PRODUCTION VALUE

6) 7) 8) 9)

C)

30/06/2001

Income statement

Values (E)

30/06/2001

30/06/2000

Variation

10,401,417

1,934,534

8,466,883

(859,755)

(360,888)

(498,867)

9,780,410

2,641,054

7,139,356

19) WRITE-DOWNS a) of shareholdings c) of securities entered under current assets

(147,940) (371,022)

-

(147,940) (371,022)

TOTAL VALUATION ADJUSTMENTS TO FINANCIAL ASSETS

(518,962)

-

(518,962)

d) other income, with separate indication of those from controlled and subsidiary companies and those from holding companies 17) INTEREST AND OTHER FINANCIAL EXPENSES with separate indication of those due to controlled and subsidiary companies and those due to holding companies* TOTAL FINANCIAL INCOME AND EXPENSES (16-17)

D)

E)

23)

VALUATION ADJUSTMENTS TO FINANCIAL ASSETS

EXTRAORDINARY INCOME AND EXPENSES 20) INCOME with separate indication of capital gains on disposals generating revenue which cannot be entered under item 5 a) capital gains on disposals b) use of reserve art. 21 of the Company By-laws 21) EXPENSES, with separate indication of capital losses on disposals the effects of which cannot be entered under item 14, and on taxes from previous years a) capital losses on disposals

20,468,247 551,106

35,949,529 522,438

(15,481,282) 28,668

(2,055,031)

(464,288)

(1,590,743)

TOTAL EXTRAORDINARY INCOME AND EXPENSES (20-21)

18,964,322

36,007,679

(17,043,357)

PROFIT BEFORE INCOME TAXES (A-B+C+D+E)

10,755,196

11,947,767

(1,192,571)

22) INCOME TAXES: a) Current taxes b) Deferred taxes

(8,099,520) 3,118,951

(4,462,704) (1,974,008)

(3,636,816) 5,092,959

TOTAL INCOME TAXES

(4,980,569)

(6,436,712)

1,456,143

5,774,627

5,511,055

263,572

NET PROFIT

* of which E 9,780 due to holding company

39

Reports and financial statements as at 30 June, 2001

FINANCIAL STATEMENTS AS AT 30 JUNE, 2001 NOTES TO THE FINANCIAL STATEMENTS CONTENTS AND FORM OF THE FINANCIAL STATEMENTS The Financial Statements that we are submitting for your approval, composed of the Balance Sheet, Income Statement and Notes to the Financial Statements have been prepared in accordance with the structure and contents indicated by the Federazione Italiana Giuoco Calcio (Italian Football Federation) and the Commissione di Vigilanza per le Società di Calcio (Supervisory Commission for Italian Football Clubs), as per articles 2424, 2425 and 2426 of the Italian Civil Code. The prospectuses of the Balance Sheet and the Income Statement contain indications of the variations in the individual items; in the Notes to the Financial Statements comments are restricted to the main items. Unless otherwise stated, all amounts are given in thousands of Euro. Since 1 July, 2000 Juventus, implementing prior to time the faculty provided for by Legislative Decree 213/1998 "Disposizioni per l'introduzione dell'Euro nell'ordinamento nazionale" (Directives for national introduction of the Euro), has adopted the Euro as its accounting currency, making the necessary accounting and procedure conversions, converting the share capital and redefining the nominal share value. The Juventus F.C. S.p.A. Financial Statements as at 30 June, 2001 are therefore written in Euro. To facilitate the comparison of data, the Juventus F.C. S.p.A. Financial Statements closed as at 30 June, 2000 have been converted into Euro using the fixed exchange rate of Lit. 1,936.27. The Appendices section, which is an integrated part of the same, includes prospectuses containing compulsory information provided for by the current regulations in force and that are considered useful to the clarity and complete nature of the Financial Statements.

EVALUATION CRITERIA, ACCOUNTING PRINCIPLES, PREPARATION OF THE FINANCIAL STATEMENTS The Financial Statements have been prepared on the basis of the regulations in force and in agreement with the Board of Statutory Auditors for those cases provided for by law, applying the same evaluation criteria and preparation methods as those used for the previous financial year; such evaluation criteria comply with that provided for by article 2426 of the Italian Civil Code. Furthermore, in preparing these financial statements no derogation has been made as per the fourth paragraph of article 2423 of the Italian Civil Code. In preparing the Financial Statements, the provisions of the second paragraph of article 2423 of the Italian Civil Code have been observed with regard to clarity and truthfulness, correct representation of the Company's financial position and the economic performance for the financial year. Considering the first paragraph of article 2423 ter of the Italian Civil Code and the particular activity of the Company, in addition to the regulations referred to earlier, the rules indicated by the Federazione Italiana Giuoco Calcio in the documents dated October 1993 and November 1995, and by the

40

Notes to the Financial Statements

Commissione di Vigilanza per le Società di Calcio, were also observed, enabling us to interpret the laws that set the general principles for the preparation of Financial Statements from a technical point of view. As per section 5 of article 2428 of the Italian Civil Code, the important events which occurred after the end of the financial year in question are listed in the management report, to which reference must be made. The evaluation criteria adopted are analysed further on in this document, indicating the reasons for their adoption. INTANGIBLE FIXED ASSETS Cost of players’ registration Intangible fixed assets related to the cost of players’ registration are entered at cost, inclusive of any incidental costs, and the amounts are net of amortisation as calculated on a straight-line basis in relation to the duration of the contracts stipulated with the individual football players. The original amortisation plan is extended following renewal (if applicable) of the contract. The above-mentioned players' contracts are entered in the Financial Statements on the date on which the contracts are ratified by the Lega Nazionale Professionisti (National League of Professionals) for national transfers, and on the date of the "transfer" issued by the Federazione Italiana Giuoco Calcio for international transfers. For football players registered as "giovani di serie" (youth football players), costs are amortised on a straight-line basis over 5 years. Other intangible fixed assets All other intangible fixed assets are entered at cost and, where provided for, with the approval of the Board of Statutory Auditors. The amounts are net of amortisation as calculated on a straight-line basis in relation to their remaining useful life. To be more precise, the following fixed assets are amortised according to the following criteria: - Start-up and organization costs: cost of share capital increase over 5 years; - Royalties for industrial patents and use of intellectual property: trademarks over 10 years; software over 3 years, "Juventus.com" dominion for the website and the "Immagini Juventus" (Juventus pictures) historical archives over 5 years; - Leasehold improvements to assets rented: for the duration of the rental contract. TANGIBLE FIXED ASSETS Tangible fixed assets are entered at purchase cost inclusive of incidental costs; the cost is adjusted by the related depreciation accumulated. In accordance with art. 10 law no. 72 of 19 March, 1983 no monetary or financial revaluation was carried out. Depreciation entered in the Income Statement was calculated on a straight-line basis, reduced to 50% for assets purchased during the financial year, on the basis of rates considered to be representative of their estimated useful economic and technical life.

41

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Purchases of assets with an individual value of less than E 516 were entered directly in the Income Statement. The annual depreciation rates used are shown in the table below:

Asset Buildings Light constructions Fire-prevention, heating and electrical systems Ordinary office machinery and furniture Sanitary equipment Sports equipment Special technical systems Telephone switchboard Electronic office equipment

Rate 3.0% 10.0% 10.0% 12.0% 12.5% 15.5% 19.0% 20.0% 20.0%

Ordinary maintenance and repair costs are entered in the Income Statement of the year in which they are sustained while those of an incremental nature are capitalised. INVESTMENTS Players’ sharing costs ex art. 102 bis N.O.I.F. These represent the value of the costs of 50% shareholdings in the football players’ contracts held by the companies who hold the players' registration. Shareholdings in such rights are entered at the cost sustained. Financial liabilities related to the disposal of players’ sharing costs, entered at nominal value, are entered under operating liabilities. Shareholdings in other companies Shareholdings are evaluated at cost (inclusive of incidental costs) determined with the LIFO method. If on the date of closure of the financial year the value of a shareholding is considerably inferior to the value of the purchase cost as defined previously, it is entered at this lesser value. Should the reasons for the adjustment cease to exist during subsequent financial years, the value of the shareholding is restored within the limit of the purchase cost. RECEIVABLES AND PAYABLES Receivables are entered at their estimated realizable value, by creation of an allowance for bad debts, while payables are entered at their nominal value.

42

Receivables and payables in foreign currency for countries outside the Euro monetary system are

Notes to the Financial Statements

entered on the basis of the exchange rates on the date in which the transactions were carried out. Any net losses on exchanges, deriving from the adaptation of receivables and payables in foreign currency to the average exchange rates for the month of June, are set aside in a special currency exchange risk fund. Should, after the date of the operation from which receivables and payables originate, termed operations be carried out in foreign currency to cover currency exchange risks, the difference between the exchange rate on the day of the operation and that on the day of negotiation is deducted from or added, as necessary, to the Income Statement. CURRENT FINANCIAL ASSETS These are valued at purchase cost (inclusive of incidental costs) determined with the LIFO method, or at their sale value if this is lower, as calculated according to market performance. Should the reasons for the adjustment cease to exist, the values are restored within the limit of the purchase cost. CASH AT BANK AND IN HAND Cash at bank and in hand is entered at nominal value. Cash at bank and in hand in foreign currency for Countries outside the Euro monetary system is aligned with the exchange rates at the end of the financial year. ACCRUED INCOME AND PREPAID EXPENSES These are calculated according to their economic relevance and period of reference in application of the principle of correlation of operating costs and incomes. OTHER PROVISIONS FOR LIABILITIES AND EXPENSES This item includes provisions set aside to cover charges and probable losses for which, at the end of the financial year, the amount or date of occurrence cannot be determined. The accruals reflect the highest possible estimate on the basis of the information available. EMPLOYEES’ SEVERANCE INDEMNITY This indemnity is created on the basis of sums matured by each individual employee on the date of the Financial Statements, in compliance with existing legislation. This liability is subject to annual revaluation, performed using special indices provided for by regulations. MEMORANDUM ACCOUNTS Commitments made, guarantees received and granted and third party assets held by the company and are entered at nominal value. Contracts with deferred execution are entered at purchase and sale cost. INCOME AND EXPENSES These are entered in the Financial Statements according to the principles of prudence and competence, indicating related accruals and deferrals.

43

Reports and financial statements as at 30 June, 2001

SUPPLEMENTARY NOTE Premiums related to the achievement of sporting results and due to football players, trainers and managers, as with insurance payments for coverage of the same and premiums from sponsors are entered in the Income Statements of the year in question. Financial incomes and expenses are entered in the relevant Income Statements. These include capital gains and/or capital losses deriving from players’ sharing costs ex art. 102 bis N.O.I.F., on the basis of the date on which the contract is ratified by the Lega Nazionale Professionisti. Capital gains and capital losses deriving from the disposal of players’ registrations are classified as extraordinary incomes and expenses, in accordance with the accounting recommendations of the Federazione Italiana Giuoco Calcio and are entered on the basis of the date on which the contracts are ratified by the Lega Nazionale Professionisti for national transfers, and on the date of the "transfer" issued by the Federazione Italiana Giuoco Calcio for international transfers. TAXES Income taxes are determined on the basis of the existing tax legislation. In the event of a temporary difference between the net profit and the taxable income for the calculation of IRPEG and IRAP, the temporarily deferred tax (asset or liability) is calculated taking into account the effective rate of taxation, rounded off to the unit, of the previous financial year. The calculation of deferred taxes (assets and liabilities) is computed every year. In particular, deferred taxes classed as assets are only entered, using the principle of prudence, if there is reasonable certainty of their future recovery. Taxes are not set aside for taxable funds or reserves for distribution should said distribution be improbable. Assets and liabilities in the form of deferred taxes are compensated and entered in the Balance Sheet among other receivables in the case of assets, and in the tax provisions in the case of liabilities.

44

Notes to the Financial Statements

NOTES TO THE BALANCE SHEET

Assets FIXED ASSETS Intangible fixed assets These amount, as at 30 June, 2001 and 2000 respectively, to E 117,099 thousand and E 99,556 thousand and are composed of: Values (thousand e)

Start-up and organization costs Royalties on industrial patents and use of intellectual property Fixed assets in progress and advance payments Cost of players’ registrations - residual cost Other fixed assets Total

2001

2000

-

3

458 86 116,555 117,099

482 99,068 3 99,556

Amortisation from the previous financial year amounts to a total of E 37,247 thousand. Cost of players’ registration net of amortisation amount to

E

116,555 thousand as at 30 June, 2001

compared with E 99,068 thousand as at 30 June, 2000. The breakdown of the movements is listed in special appendices which are part of these notes to the Financial Statements. Tangible fixed assets These amount, as at 30 June, 2001 and 2000 respectively, to E 8,518 and 1,803 thousand and include: Values (thousand e)

Land and buildings Plants and machinery Industrial and commercial equipment Other assets Fixed assets under construction and advance payments Total Tangible assets are increased by

E

2001

2000

6,933 323 390 400 472 8,518

396 430 280 697 1,803

6,715 thousands and are mainly due to the purchase of the

45

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS registered office in Turin, corso Galileo Ferraris, 32 for

E

6,933 thousand net of

E

106 thousand of

depreciation. Depreciation amounts to a total of E 455 thousand (E 318 thousand during the previous financial year) and is calculated on all depreciable assets applying the rates considered to represent their useful life. Fixed assets under construction and advance payments are equal to E 472 thousand. These decreased by E 225 thousand as the result of the transfer to land and buildings of the sum of E 697 thousand (in relation to the cautionary deposit paid during the last financial year for the purchase of the company premises) and the entry of E 472 thousand for research and design costs related to the sports centre and leisure and shopping facilities to be built in Vinovo/Nichelino ("Mondo Juve"). The movements of tangible assets are listed in a special appendix which is part of the Notes to the Financial Statements. Investments Players’ sharing costs ex art. 102 bis N.O.I.F. Players’ sharing costs ex art. 102 bis N.O.I.F. as at 30 June, 2001 are equal to E 14,377 thousand (E 9,354 thousand as at 30 June 2000) and refer to the following teams:

Values (thousand e)

Bari A.S. S.p.A. Basel F.C. 1893 Como Calcio S.p.A. F.C. Crotone Calcio S.r.l. Fidelis Andria A.S. S.r.l. Hellas Verona S.p.A. Polisportiva Sassari Torres S.p.A. Pro Vercelli Unione Sportiva Calcio S.r.l. S.S.C. Napoli S.p.A. Torino Calcio S.p.A. Udinese Calcio S.p.A. Venezia A.C. S.r.l. Total

1,549 1,008 129 91 52 129 5 1 6,972 3,047 1,291 103 14,377

All player sharing agreements were drawn up in observance of the federal regulations and on the date in which the Board of Directors meets to prepare the draft of the Financial Statements there remain E 3,893 thousand, agreements worth E 10,484 thousand having been dissolved. Shareholdings in other companies As at 30 June, 2001 these amount to E 342 thousand (E 408 thousand as at 30 June, 2000). They are represented by shares in "Consorzio Fiat Media Center", a share in "Consorzio CONAI" and by

46

Notes to the Financial Statements

no. 339,560 shares in "Ciaoweb S.p.A." (technical sponsor for the Serie A Championship and for European competitions during 2000/01) registered office in Corso Ferrucci 112/A - Turin, with share capital of 35,000,000, split into no. 35,000,000 shares each with a nominal value of 1 Euro. The shareholding in Ciaoweb S.p.A. originally purchased in December 2000 was of E 487,500, for no. 487,500 shares each with a nominal value of 1 Euro, equal to 1.5% of the share capital at the time of E

32,500,000. The shareholding was depreciated by E 147,940 following coverage of losses as high-

lighted during the Shareholders' Meeting on 5 April, 2001 for the approval of the Financial Statements closed as at 31 December, 2000. The shareholding percentage dropped from 1.5% to 0.97% as Juventus F.C. S.p.A. declined to underwrite its part in the increase of the share capital to E 35,000,000, as deliberated by the same Meeting. The shareholding in Ciaoholding N.V., equal to no. 405,000 shares each with a nominal value of 1 Euro, purchased during the previous financial year, was sold during the financial year under examination at a price equal to the book value. Other receivables These amount to a total of E 1,328 thousand and are represented by tax receivables for advance payment of IRPEF on Employees’ Severance Indemnity for E 34 thousand and cautionary deposits which, as at 30 June, 2001, are equal to E 1,294 thousand. The increase of E 1,286 thousand is mainly due to the payment, by way of cautionary deposit, of E 1,291 thousand to the shareholders of "Campi di Vinovo S.p.A." for the purchase of no. 2,415,437 shares, equal to 96.6% of the share capital of the same "Campi di Vinovo S.p.A.". The shares in "Campi di Vinovo S.p.A.", a company with a share capital of 2,500,000,000 split into no. 2,500,000 shares each with a nominal value of Lit. 1,000, registered office in Cesena - Viale Carducci, 107, were bought in July 2001. CURRENT ASSETS Before analysing the individual items, we would like to present the analysis of the net working capital at the end of the financial year:

Current assets Accrued income and prepaid expenses Receivables, accruals and prepaid expenses collectable after one year Investments collectable within one year Current assets Payables Accrued liabilities and deferred income Payables due after one year Current liabilities Net working capital

Values (thousand e)

2001

2000

Variation

(a)

(b)

c = (a)-(b)

132,026 2,102 (10,489) 14,377 138,016 (98,323) (139,183) 28,527 (208,979) (70,963)

157,456 1,428 (15,859) 9,354 152,379 (102,595) (132,343) 24,446 (210,492) (58,113)

(25,430) 674 5,370 5,023 (14,363) 4,272 (6,840) 4,081 1,513 (12,850)

47

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Receivables These amount to E 64,472 thousand and refer to the following: Values (thousand e)

Official sponsors Football clubs Lega Nazionale Professionisti and F.I.G.C. Tax authorities for EEC VAT Tax receivables for direct taxes Deferred tax assets Others Allowance for bad debts Total

2001

2000

3,193 44,228 73 2,351 253 3,596 15,837 69,531 (5,059) 64,472

569 37,081 7,825 2,302 325 477 14,475 63,054 (610) 62,444

Receivables from football clubs, expressed in thousands of Euro, derive from the disposal of players’ registration; these refer mainly to: Bologna 1909 F.C. S.p.A. for 3,409, F.C. Internazionale Milano S.p.A. for 5,939, Milan A.C. S.p.A. for 3,443, S.S. Calcio Napoli S.p.A. for 7,489, Torino Calcio S.p.A. for 1,963, Udinese Calcio S.p.A. for 2,582, Arsenal F.C. PLC for 7,813, B.V. Borussia Dortmund for 5,722, Fenerbahce Sports Club for 1,937, Chelsea Football Club for 919 and Sevilla Futbol Club for 1,349. Part of these receivables (E 10,489 thousand) are collectable after one year. Receivables from Tax Authorities for EEC VAT refer to receivables for reimbursement of VAT to non-residents (Art. 38 ter of D.P.R. 633/72) applied for by Club Atletico de Madrid and transferred to Juventus as payment of their debt. These receivables include interest matured during the year. Receivables from Tax Authorities for direct taxes refer to IRPEG credit for witholding tax, interest to be reimbursed from previous financial years and tax credit on revenue from investment funds. Deferred tax assets for E 3,596 thousand, are analysed as follows: Values (thousand e)

Balance at 30 June, 2000 Use Provision Balance at 30 June, 2001

477 (375) 3,494 3,596

These receivables were determined by the difference between the net profit and the fiscal result for the year under examination. The amount indicated above cannot be claimed from the Tax authorities. Provision during the year is due mainly to deferred tax on amortisation of cost of players’ registration, on part of the allowance for bad debts and on directors' salaries still to be liquidated. The use of E 375 thousand is due to the fiscal deduction of the cost of a transaction which took place

48

Notes to the Financial Statements

in July 2000. Other receivables for E 15,837 thousand refer to: UEFA for 1,620, Fiat Auto S.p.A. for 465, Spot & Sport for 387, Air Europe S.p.A. for 727, Marine Aviation & General LTD for 3,990, Media Partners Italia S.r.l. for 1,212, Rai Radiotelevisione Italiana for 876, Pepsi Cola International for 1,060. The movement of the allowance for bad debts is analysed as follows: Values (thousand e)

Balance at 30 June, 2000 Use for credit losses Provision Balance at 30 June, 2001

610 (15) 4,464 5,059

The provision of E 4,464 thousand covers the risk of insolvency of Sportal U.K. (Official Sponsor) and Sevilla Futbol Club. The use is due to irrecoverable trade receivables. The composition of receivables by currency is the following: Values (thousand e)

Receivables in Lire/Euro Receivables in Dutch Guilders Receivables in French Francs Receivables in U.S. Dollars Receivables in Pounds Sterling Receivables in Swiss Francs Total

2001

2000

49,322 227 8,796 9,538 1,648 69,531

42,292 2,439 820 15,771 1,732 63,054

Assets other than fixed assets These are composed of investment funds S.G.S.S. Quant Equity Fund/Sella Asset Management S.G.R. p.a. for E 1,617 thousand, (net of depreciation of E 371 thousand) and by an INA S.p.A. policy for E 1,019 thousand. Cash at bank and in hand This amounts to E 64,908 thousand as at 30 June, 2001; it refers mainly to advance revenue from commercial activity and television rights and is deposited in time-deposit accounts and ordinary accounts. Cash and other valuables amount to E 9 thousand as at 30 June, 2001.

49

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS ACCRUED INCOME AND PREPAID EXPENSES The accrued income and prepaid expenses item is composed as follows: Values (thousand e)

Accrued income Prepaid insurance premiums Other deferrals Total deferrals Total

2001

2000

831 322 949 1,271 2,102

617 310 501 811 1,428

Accrued income is mainly composed of income for the right to use the image of several football players, for commercial contracts and for revenue from the forward agreements in foreign currency. The increase in prepaid expenses for E 448 thousand is due mainly to the deferral of rental fees and various commissions.

50

Notes to the Financial Statements

Liabilities SHAREHOLDERS EQUITY The analysis of the variations in the shareholders’ equity accounts is presented in a special appendix which is an integrated part of the Notes to the Financial Statements. Share Capital The share capital is fully paid up and amounts as at 30 June, 2001 to 20,800,358 shares each with a nominal value of

E

E

10,400,179 split into no.

0.5, following deliberation by the extraordinary

Shareholders’ Meeting on 15 December, 2000, which approved the conversion of the share capital into Euro. To allow for rounding off of the nominal value of shares to

E

0.5, a reduction of the share

capital by E 342,309.91, credited to the legal reserve, was deliberated. PROVISIONS FOR LIABILITIES AND EXPENSES The provisions for estimated risks and charges are the following: Provisions for liabilities and expenses - Tax provisions The residual provisions of E 300 thousand is for any interpretative controversy of fiscal nature. The movement during the year is as follows: Values (thousand e)

Balance at the beginning of the fiscal year Use Transfers from “Provisions for liabilities and expenses - Others” Transferral to the Income Statement Balance at year end

2001

2000

3,353 (2,007) (1,046) 300

953 (27) 2,427 3,353

The use of E 2,007 thousand is for payment of taxes and sanctions for the eased definition of fiscal litigation (art. 82, paragraph 1 of Law 21/11/2000) and the adjustment of the failure to pay entertainment tax (art. 82, paragraph 2 of Law 21/11/2000). Following the above-mentioned eased definition of the entertainment tax, the sum of E 1,046 thousand, considered excess to that set aside in previous years, was attributed to the “Other Income” item. Provisions for liabilities and expenses - Others This amounts to a total of E 4,110 thousand and is composed of risks which might derive from the interpretation of laws and contractual clauses.

51

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS The movement during the year is as follows: Values (thousand e)

Balance at the beginning of the fiscal year Use Transfers to “Tax provisions” Accruals Balance at year end

2001

2000

2,333 (5) 1,782 4,110

2,943 (2,427) 1,817 2,333

EMPLOYEES’ SEVERANCE INDEMNITY This item underwent the following movement: Values (thousand e)

Balance at the beginning of the fiscal year Payments for termination of employment and advances Accruals Balance at year end

2001

2000

1,109 (70) 377 1,416

808 (45) 346 1,109

Accruals are net of substitute tax for 11% on the write-up of employees’ severance indemnity as of 1 January, 2001, recorded in the “Taxes payables” item. PAYABLES Trade payables These amount to E 4,711 thousand, with an increase of E 2,321 thousand, and include invoices yet to be received. The increase is due mainly to the receipt of invoices from football clubs for payment of 18% of television rights due as the visiting team, as regulated in July 2001. Due to holding companies These amount to E 48 thousand and are fees on guarantees granted and charges deriving from staff services. Taxes payables These amount to E 9,751 thousand, E 3,790 thousand of which are withholdings to be paid for employee IRPEF, scholarships, self employed workers and regional/municipal additionals, E 2,529 thousand for VAT,

E

3,428 thousand for IRPEG and IRAP,

E

3 thousand for substitute tax on the

revaluation of Employees’ Severance Indemnity, as of 1 January, 2001, as provided for by Legislative

52

Notes to the Financial Statements

Decree 47/2000 and subsequent amendments. Due to social security agencies The sum is composed as follows: Values (thousand e)

Payable to I.N.P.S. Payable to ENPALS Payable to INPDAI Payable to PREVINDAI Payable to other authorities Total

2001

2000

68 201 55 8 24 356

61 158 40 4 20 283

Payables due to social security agencies are mainly contributions withheld from employees in June and paid in July. Payables due to other authorities include the balance of the Career Termination Indemnity Fund of E 20 thousand. Other payables These are composed as follows: Values (thousand e)

Employees for salaries Other payables Total

2001

2000

15,087 3,209 18,296

14,724 1,739 16,463

Payables due to employees are mainly related to wages for the month of June, paid in July. The increase of E 1,470 thousand in other payables is mainly due to services and directors' salaries due for liquidation in the next fiscal year. Due for players’ sharing costs ex art. 102 bis N.O.I.F. These amount to E 7,695 thousand and refer to sums due to Atalanta Bergamasca Calcio S.p.A for E 2,324 thousand, to F.C. Modena S.p.A. for E 207 thousand and to Bologna 1909 F.C. S.p.A. for E 5,164 thousand. Due to specific sector The item mainly includes sums due to Italian football clubs (E 17,904 thousand) and foreign football clubs (E 39,131 thousand) for the purchase of players’ registrations. The amount has dropped by E 7,641 thousand compared with last year and, at 30 June, 2001, amounts

53

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS to E 57,467 thousand. Part of these payables (E 28,527 thousand) is due after one year. The item is composed as follows: Values (thousand e)

A.S Roma S.p.A. Ancona Calcio S.p.A. Arezzo A.C. S.r.l. Brescello U.S. S.r.l. Cagliari Calcio S.p.A. F.C. Crotone Calcio S.r.l. Milan A.C. S.p.A. Napoli S.S.C. S.p.A. Rimini Calcio F.C. S.r.l. Ternana Calcio S.p.A. Torino Calcio S.p.A. Udinese Calcio S.p.A. Vicenza Calcio S.p.A. AFC Ajax NV Real Sociedad de Futbol S.A.D. Tacuary F.B.C. A.S. Monaco Other Total

140 207 67 78 387 155 3,443 3,744 517 646 981 7,230 310 5,765 12,261 446 20,658 432 57,467

ACCRUED LIABILITIES AND DEFERRED INCOME These increase by E 6,840 thousand and are composed of: - accrued liabilities for E 1,054 thousand are related mainly to charges on the forward agreements in foreign currency, costs for use of football players’/coach’s image, interest on delayed reimbursement of Glasgow Rangers EEC VAT and insurance premiums; - deferred income for E 138,130 thousand referred mainly to advance invoicing of pay per view television rights for home matches during the 2001/2002 and 2002/2003 seasons, from advance invoicing of UMTS/SMS telephonic rights and for commercial contracts, Hurrà Juventus season ticket sales and season ticket sales for the 2001/2002 Serie A Championship.

54

Notes to the Financial Statements

MEMORANDUM ACCOUNTS These are represented by: Third party guarantees in favour of third parties For E 41,344 thousand, mainly in favour of football clubs and foreign banks for the purchase of players’ registrations for 38,574 and in favour of Tax Authorities for the reimbursement of VAT for

E

2,747

thousand. Third party guarantees in our favour For

E

17,964 thousand, mainly granted by leading banks as guarantees for commercial contracts,

television rights and contracts for the disposal of players’ registrations. Forward agreements-receivables For E 3,414 thousand, equivalent to USD 3,650,000 for the extinction of debt for the purchase of players’ registrations. Forward agreements-payables For

E

13,842 thousand, related to GBP 5,600,000 and USD 4,950,000 following the collection of

credit for the sale of players’registrations. Commitments for the purchase of players’ registrations For E 47,656 thousand, to be contractually executed next year (2001/2002 transfer of players). Commitments for the disposal of players’ registrations For E 3,522 thousand, to be contractually executed next year (2001/2002 transfer of players). Third party assets held by the company For E 40 thousand, mainly for sports equipment supplied by Technogym Italia S.p.A., for no. 4 multimedia workstations supplied by LIS S.p.A. and for one multimedia workstation supplied by the Lega Nazionale Professionisti. Company assets held by third parties For E 340 thousand, deposit with FiatGesco S.p.A. - Affari Societari of no. 339,560 share certificates for the shareholding in Ciaoweb S.p.A. Commitments for purchase of shareholding For E 17,357 thousand, commitment for the purchase of no. 2,415,437 shares in Campi di Vinovo S.p.A. equal to 96.6% of the company's share capital.

55

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE INCOME STATEMENT

Before analysing the individual items, we would like to remind you that comments on the trend of income and expenses are given, in accordance with paragraph 1 of art. 2428 of the Italian Civil Code, in the Management Report. Moreover, the analytical presentation of revenues and expenses in the Income Statement and previous comments on the items in the Balance Sheet enable restriction of comments made herein to the main items. Details are given in thousands of Euro. Production value Income from football players’ performances Income from football players’ performances is split into: Values (thousand e)

Gate receipts Income from temporary transfer of players Total

2001

2000

12,835 2,003 14,838

14,645 958 15,603

Gate receipts are composed of individual game tickets and season ticket sales for First team matches and those played by the youth teams, and are summarised as follows: Values (thousand e)

First Team gate receipts: - Serie A Championship matches - Cup matches - Other matches Total Gate receipts from youth team matches Season ticket Total gate receipts

2001

2000

4,775 443 833 6,051 9 6,775 12,835

6,025 1,916 323 8,264 7 6,374 14,645

The decrease of E 2,213 thousand in gate receipts from First Team matches is due mainly to lower earnings for matches played in the UEFA Champions League compared with those played last season, in International Intertoto and Uefa Cup matches.

56

Notes to the Financial Statements

The breakdown of income from home and away matches is shown below: Values (thousand e)

2001 Serie A Championship matches Cup matches Other matches

2000

home

away

home

away

2,412 299 8

2,363 144 825

3,576 1,395 -

2,449 521 323

The number of gate tickets for home matches is summarised below: Number of gate tickets

Serie A Championship matches Cup matches Other matches Total

2001

2000

99,638 20,012 3,567 123,217

136,694 102,568 239,262

Season ticket sales went from 34,284 to 35,446 during the year ended with an increase in income of approximately E 400 thousand. Income from the temporary transfer of football players for 2000/2001 is composed of sums deriving from the temporary transfer of football players to other football clubs. This increased by E 1,044 thousand and refers to the following football players: Values (thousand e)

AMETRANO Raffaele BACHINI Jonathan BERETTA Matteo BONETTO Riccardo ESNAIDER Juan Eduardo MARESCA Enzo O'BRIEN Ronald PERGOLIZZI Stefano VIERI Massimiliano ZALAYETA Marcelo Danubio ZANCHI Marco Other Total

F.C. Crotone Calcio Brescia Calcio A.C. Lumezzane A.C. Arezzo Real Zaragoza Bologna F.C. 1909 Calcio Lecco Calcio Lecco Ancona Calcio Sevilla Futbol Club Vicenza Calcio

26 207 15 15 414 207 10 10 52 825 103 119 2,003

57

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Contributions from Federazione Italiana Giuoco Calcio - Lega Nazionale Professionisti Values (thousand e)

Contributions from Lega for federal intervention Cont. from Lega for prizes for winning/qualifying for European Competitions Total

2001

2000

-

53 387 440

These are sums due to clubs from the revenue from betting games or prizes payed by the Lega Nazionale Professionisti. Contributions for 2001 are zero as these sums were destined by the Lega Nazionale Professionisti to Serie B teams as established by the Lega deliberation of 19 March, 1999. Sponsorship and other revenues Values (thousand e)

Official and technical sponsors Other sponsorships and other commercial contracts Television revenues TV revenues percentage from visiting team Telephonic rights Revenues from Champions League Publishing activity Advertising Players’ and coach’s image rights Sundry income Total

2001

2000

21,999 18,607 72,831 3,776 4,750 14,832 1,043 902 3,245 541 142,526

10,369 14,568 79,879 3,288 1,443 1,984 898 708 113,137

Revenue from sponsorship contracts for E 21,999 thousand refers to sums paid by the Official Sponsors and Technical Sponsors to acquire the right to display their own trademark on official strips and team uniforms. The increase of

E

11,630 thousand is due to the double technical sponsorship contract signed

simultaneously by Lotto Italia S.p.A. and Ciaoweb S.p.A. for the season under examination. Revenue from other sponsorship contracts and other commercial contracts for E 18,607 thousand refers to sums paid for contracts with Institutional Sponsors and Official and Technical Suppliers, as well as those with Commercial Partners and Licensees of the Juventus trademarks. The increase of

E

4,039

thousand is due both to the increase in the number of contracts signed and the increase in the value of the individual sponsorship contracts. Television revenue for E 72,831 thousand regards earnings from the sale of radio broadcasting rights

58

as well as television filming and broadcasting rights for football matches, excluding the UEFA Champions

Notes to the Financial Statements

League. Revenue from the UEFA Champions League for E 14,832 thousand is related to sums paid by the UEFA to the Company and deriving from the negotiation and exploitation of commercial rights (television rights and use of advertising space) in relation to matches in the UEFA Champions League. The two types of revenue, examined together, present an increase of E 7,784 thousand compared with the previous financial year. Revenue from telephonic rights for

E

4,750 thousand derive from the sale of so-called "telephonic

rights" for the transmission of data and news using SMS and WAP technology, as well as for the transmission of audio-visual images (known as Clips) of home matches using GPRS and UMTS technology. Revenue from players' and coach's image rights amounts to

E

3,245 thousand (E 898

thousand as at 30 June, 2000) and regards revenue related to rights to use the image of football players and the coach. Other revenues and income Values (thousand e)

Insurance indemnities Casual profits Other income Total

2001

2000

12,104 296 3,660 16,060

7,750 183 2,564 10,497

Insurance indemnities are related to insurance cover on the payment of premiums for achievement of sporting targets and for failure to qualify for the 2nd round of the UEFA Champions League, as well as indemnities for accidents incurred by football players. The "other income" item also includes the transformation into income of excesses from the tax provisions mentioned earlier. Production costs Purchases Values (thousand e)

Technical material Sanitary material Other goods Total

2001

2000

1,702 98 197 1,997

1,119 105 134 1,358

These are mainly matches and training clothing as well as the Official Team Strip.

59

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Service expenses Values (thousand e)

Costs for players Costs for publishing activity Costs for sporting activity Specific technical costs Costs for food, accomodation and transport Ticket sales service and gate checks Insurance and social security Administration - advertising and generals Other Total

2001

2000

256 1,371 3,529 79 1,002 744 9,723 8,456 517 25,677

234 1,789 3,002 84 1,434 750 10,355 7,195 570 25,413

Costs for sporting activity of E 3,529 thousand are related to expenses for First Team and youth team training sessions and camps, medical expenses, fees of medical experts, masseurs and other outside experts and payment of scholarships. Insurance and social security expenses for E 9,723 thousand, refer mainly to premiums paid to insure football players, premiums to football players upon achievement of sporting targets and coverage for salaries in the event of injury. Administration, advertising and general costs include payment of Directors for E 1,636 thousand and annual payment of the Auditors for E 27 thousand. These are further increased due to the use of consultants linked with the development of the commercial area, and to advertising expenses. Lease and rent costs These are composed of: Values (thousand e)

Operating rentals Total These are rent costs of which E 1,577 thousand are for pitch rental.

60

2001

2000

2,517 2,517

3,338 3,338

Notes to the Financial Statements

Personnel expenses Personnel expenses are divided as following: Values (thousand e)

2001 Reg. staff Other employees

Salaries and wages Social security contributions Severance Pay Other costs Total Total personnel expenses

95,178 835 96,013

2000 Total

3,484 893 379 179 4,935

Reg. staff Other employees

73,936 652 74,588

Total

2,982 771 347 91 4,191

100,948

78,779

The cost of technical personnel is presented below: Values (thousand e)

Players’ contractual fees: - for sporting activity - for use of players’ images Coaching staff fees and premiums - for use of coach’s image Players’ achievement premiums Total

2001

2000

74,957 9,631 4,318 59 6,213 95,178

57,497 6,113 4,105 26 6,195 73,936

The increase in the costs of acquisition of the right to use football players' images is due to the increase in the number of contracts managed (from 23 in the previous financial year to 53 in the year under examination) and to the percentage on turnover due to football players deriving from the use of such rights. The average number of staff employed by the Company is composed as follows: Number of employees

Players Coaching staff Other technical staff Managers Employees Operators Total average personnel

2001

2000

42 9 5 7 43 5 111

34 10 4 6 36 4 94

61

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Amortisation of intangible fixed assets The criteria used to calculate the amortisation of cost of players’ registrations has already been mentioned in the related item in the Balance Sheet. Accruals for risks E

1,782 thousand were set aside for interpretative uncertainties regarding laws and contractual

clauses. Other operating expenses These are: Values (thousand e)

Match organisation expenses Costs for official matches Match registration fees Indirect tax charges Other percentages on gate receipts (visiting teams - UEFA) Other percentages on TV revenues (visiting teams - LNP) Taxes on gate receipts Contingent liabilities Match fines and penalties Other expenses Total

2001

2000

402 104 4 156 2,299 10,302 39 133 171 2,198 15,808

385 99 5 4,719 3,251 9,619 606 972 56 1,511 21,223

The other operating expenses are lower than those of the previous financial year, mainly due to the drop in indirect taxes, which dropped from E 4,719 thousand to E 156 thousand. The difference is composed mainly of the abolition, as of 1 January, 2000, of the entertainment tax and payment of VAT according to a forfeit regime. The "other percentages on TV revenues" item represents 18% of the revenue of every team from the sale of pay-TV rights by visiting teams. In the same way, the amount paid for away matches (equal to

E

3,776 thousand) is recorded in the positive revenue components. Other charges for E 2,198 thousand include entertainment expenses, membership of the Fondo Lega Nazionale (National League Fund) and of the G14 (Gruppo Europeo di Interesse Economico - GEIE European group of Economic Interest) of which other important European teams are also members.

62

Notes to the Financial Statements

Financial income and expenses Other financial income This is made up of the following items: a) Receivables recorded as fixed assets. Financial income amounts to

E

1.2 thousand, and represents the revaluation of payments to the tax

authorities as advance payments of employees’ severance indemnity. c) Income from securities recorded as current financial assets. This amounts to E 238 thousand deriving from the capital gains of investment funds in which part of the liquidity has been used. d) Other income analysed as follows: Values (thousand e)

Bank interest Income from financial investments Income from players’ sharing (ex art. 102 bis N.O.I.F.) Total The amount of

E

2001

2000

605 1,474 8,322 10,401

465 1,423 47 1,935

1,474 thousand is composed of income from repurchase agreements for the

temporary use of liquidity, interest on tax receivables and interest on INA insurance policy. Income from players’ sharing ex art. 102 N.O.I.F. refers to the following football players: Values (thousand e)

2001 BINOTTO Jonathan DE SANCTIS Morgan FANTINI Enrico MILANO Paolo ROCCHI Tommaso SAVIOZZI Marco Total

Bologna 1909 F.C. S.p.A. Udinese Calcio S.p.A. Venezia A.C. S.r.l. Biellese F.C. S.r.l. Como Calcio S.p.A. Como Calcio S.p.A.

5,087 2,840 65 13 310 7 8,322

63

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Interest and other financial expenses Interest and other financial expenses are analysed as follows: Values (thousand e)

Interest due to banks Other expenses and commissions Players’ sharing costs (ex art. 102 bis N.O.I.F.) Total

2001

2000

21 431 408 860

3 322 36 361

Players’ sharing costs refer to the following transactions: Values (thousand e)

2001 BARISON Fabio BUGIOLACCHI Giuseppe CHIAVAROLI Paolo GRABBI Corrado MANFREDINI SISOSTRI Christian Total

U.S. Pro Vercelli Calcio S.r.l. Pontedera 1912 U.S. S.r.l. U.S. Alessandria Calcio S.r.l. Ternana Calcio S.r.l. Genoa Cricket and F.C. S.p.A.

3 13 5 336 51 408

Valuation adjustments to financial assets Write-downs There are the write-downs of the shareholding in Ciaoweb S.p.A. by E 148 thousand registered among current assets and of shares in investment funds (S.G.S.S. Quantequity Fund) by E 371 thousand. Extraordinary income and expenses Extraordinary income This item is composed mainly of capital gains from the disposal of football players’ registrations for E 20,468 thousand (E 35,950 thousand as at 30 June, 2000). The Company has used the full amount of E 551 thousand set aside as net profit from 1999/00 to meet costs for technical and sports training in the youth sector, as provided for by article 21 of the Company By-laws. Extraordinary expenses These amount to E 2,055 thousand and refer to capital losses on the disposal of football players’ registrations and the failed renewal of the annual tie in the youth sector for Euro 2,028 thousands and to capital losses deriving from the sale of other assets for Euro 27 thousands.

64

Notes to the Financial Statements

Income taxes Income taxes amount to E 4,981 thousand and include: Values (thousand e)

Current IRPEG Current IRAP Net deferred IRPEG Net deferred IRAP Total

2001

2000

4,411 3,689 (2,970) (149) 4,981

2,102 2,361 2,008 (34) 6,437

Current taxes The total sum is represented by E 4,411 thousand for IRPEG and E 3,689 thousand for IRAP. Deferred taxes This amounts to E 3,119 thousand and is composed of: E 374 thousand for use of deferred taxes created during the previous financial year (E 44 thousand for IRAP and

E

330 thousand for IRPEG),

3,493 thousand for deferred taxes of the year , (E 193 thousand for IRAP and

E

E

3,300 thousand for

IRPEG). 14 August, 2001 On behalf of the Board of Directors The Chairman Vittorio Caissotti di Chiusano

65

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS APPENDICES Appendices 1. Variations in intangible fixed assets 2. Variations in cost of players’ registration 3. Variations in tangible fixed assets 4. Variation in shareholders equity accounts for the financial years ended as at 30 June, 2001 and 30 June, 2000 5. Cash Flow analysis for the financial years ended as at 30 June, 2001 and 30 June, 2000

14 August, 2001 On behalf of the Board of Directors The Chairman Vittorio Caissotti di Chiusano

66

Appendices

Appendix 1: VARIATIONS IN INTANGIBLE FIXED ASSETS Values (E) START-UP AND ORGANIZATION COSTS

Purchases from previous years Amortisation from previous years As at 1.7.2000

OTHER FIXED ASSETS

TOTAL

13,732

745,384

481,631

1,240,747

(10,986)

(263,638)

(478,619)

(753,243)

2,746

481,746

3,012

487,504

Purchases Amortisation

ROYALTIES FOR INTANGIBLE FIXED INDUSTRIAL PATENTS ASSETS IN PROGRESS AND USE OF AND ADVANCE INTELLECTUAL PROPERTY PAYMENTS

189,987 (2,746)

(213,751)

-

457,982

13,732

935,371

(13,732)

(477,389)

85,596

275,583 (3,012)

(219,509)

85,596

-

543,578

85,596

481,631

1,516,330

(481,631)

(972,752)

Disposals Use of amortisation over previous years Net balance as at 30.06.2001 Cost as at 30.06.2001 Amortisation as at 30.06.2001

67

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Appendix 2: VARIATIONS IN COST OF PLAYERS’ REGISTRATION Values (E)

Cost of players’ registrations for previous years (*)

Amortisation for previous years (*) As at 1.7.2000 Reclassification from youth players Purchases Disposals Amortisation Reclassification of amortisation from youth players Use of amortisation over previous years Net balance as at 30.6.2001 Original cost as at 30.6.2001 Amortisation as at 30.06.2001 Net balance

PROFESSIONALS

YOUTH PLAYERS

TOTAL

173,551.490

615,701

174,167,191

(74,849,136) 98,702,354 68,565 69,950,597 (23,427,118) (36,871,316)

(249,676) 366,025 (68,565) 422,655 (172,416) (156,364)

(75,098,812) 99,068,379 70,373,252 (23,599,534) (37,027,680)

(47,200)

47,200

-

7,680,871 116,056,753 220,143,534 (104,086,781) 116,056,753

59,976 7,740,847 498,511 116,555,264 797,375 220,940,909 (298,864) (104,385,645) 498,511 116,555,264

(*) net of preparation and promotion indemnity which was completely amortised in accordance with Law 586/96.

68

Appendices

Appendix 3: VARIATIONS IN TANGIBLE FIXED ASSETS Values (E)

LAND AND BUILDINGS Depreciation rate Purchases from previous years Depreciation from previous years As at 1.7.2000 Purchases Depreciation Disposals Use of depreciation from previous years Net balance as at 30.6.2001 Cost as at 30.6.2001 Depreciation as at 30.06.2001

HEAD OFFICE

TOTAL

3%

7,038,727 (105,581)

7,038,727 (105,581)

6,933,146 7,038,727 (105,581)

6,933,146 7,038,727 (105,581)

Values (E)

PLANTS AND MACHINERY

Rate of depreciation Purchases from previous years Depreciation from previous years As at 1.7.2000 Purchases Depreciation Disposals Use of depreciation in previous years Net balance as at 30.06.2001 Cost as at 30.06.2001 net of sales Depreciation as at 30.06.2001

SPECIAL TECHNICAL SYSTEM

19%

FIRE PREVENTION, HEATING AND ELECTRICAL SYSTEMS

TOTAL

10%

655,563 (259,766) 395,797 (124,557)

54,360 (2,718)

655,563 (259,766) 395,797 54,360 (127,275)

271,240 655,563 (384,323)

51,642 54,360 (2,718)

322,882 709,923 (387,041)

69

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS VARIATIONS IN TANGIBLE FIXED ASSETS (continued) Values (E)

INDUSTRIAL AND COMMERCIAL EQUIPMENT

SANITARY EQUIPMENT

SPORTS EQUIPMENT

Rate of depreciation Purchases from previous years Depreciation from previous years As at 1.7.2000 Purchases Depreciation Disposals Use of depreciation in previous years Net balance as at 30.06.2001 Cost as at 30.06.2001 Depreciation as at 30.06.2001

12.50% 286,092 (202,350) 83,742 12,687 (21,131) (92,212)

15.50% 488,195 (243,974) 244,221 46,185 (73,128) (24,732)

20.00% 10.00% 120,849 149,941 1,045,077 (64,828) (103,538) (614,690) 56,021 46,403 430,387 27,747 4,338 90,957 (18,636) (15,211) (128,106) (23,540) (140,484)

89,402 72,488 206,567 (134,079)

24,732 217,278 509,648 (292,370)

22,688 64,280 35,530 125,056 154,279 (60,776) (118,749)

TELEPHONE LIGHT SWITCHBOARD CONSTRUCTIONS

TOTAL

136,822 389,576 995,550 (605,974)

Values (E)

OTHER ASSETS

Rate of depreciation Purchases from previous years Depreciation from previous years As at 1.7.2000 Purchases Depreciation Disposals Use of depreciation in previous years Net balance as at 30.06.2001 Cost as at 30.06.2001 net of sales Depreciation as at 30.06.2001

70

ORDINARY OFFICE FURNITURE AND MACHINERY

ELECTRONIC OFFICE MACHINES

12.00% 329,797 (256,134) 73,663 100,842 (18,541) (92,684)

20.00% 393,112 (187,043) 206,069 114,577 (75,337) (45,772)

92,684 155,964 337,955 (181,991)

44,754 244,291 461,917 (217,626)

VEHICLES

TOTAL

(22,856)

722,909 (443,177) 279,732 238,275 (93,878) (161,312)

-

137,438 400,255 799,872 (399,617)

22,856

Appendices

VARIATIONS IN TANGIBLE FIXED ASSETS (continued) Values (E)

FIXED ASSETS UNDER CONSTRUCTION AND ADVANCE PAYMENTS Purchases from previous years Depreciation from previous years As at 1.7.2000 Purchases Depreciation Decreases for transfer to "Buildings - Head Office" Use of depreciation fund Net balance as at 30.06.2001

NEW HEAD OFFICE

MONDO JUVE PROJECT

TOTAL

697,217

697,217

697,217

697,217 472,149

472,149

(697,217) -

(697,217) 472,149

472,149

71

Reports and financial statements as at 30 June, 2001

NOTES TO THE FINANCIAL STATEMENTS Appendix 4: VARIATIONS IN THE SHAREHOLDER’S EQUITY ACCOUNTS FOR THE FINANCIAL YEARS ENDED AS AT 30 JUNE, 2001 AND 30 JUNE, 2000

SHAREHOLDERS’ EQUITY AS AT 30/6/1999

SHARE CAPITAL

PAYMENT FOR FUTURE CAPITAL INCREASE

RETAINED LOSSES

10,742,489

-

-

-

-

-

LEGAL RESERVE

RESERVE Art. 21 COMPANY BY-LAWS

RETAINED PROFIT

468,300

-

7,961,092

261,219

-

-

Values (E)

NET SHAREHOLDERS’ PROFIT (LOSS) EQUITY

5,224,376 24,396,257

Shareholders’ Meeting Deliberation Ordinary 28/10/1999 to Legal Reserve to Reserve art. 21 of Company By-laws: used for youth training schools and technical-sports training

-

-

-

-

522,438

(261,219)

-

to Shareholders dividends

-

-

-

-

-

-

to Retained profits

-

-

-

-

-

3,366,471

to Income Statement

-

-

-

-

Operating profit as at 30/06/00

-

-

-

-

-

-

-

Shareholders’ equity as at 30/6/2000

10.742.489

(522,438)

-

(522,438)

-

(1,074,249) (1,074,249)

-

(3,366,471) -

-

-

5,511,055

729,518

-

11,327,563

-

275,553

-

-

-

342,310

(522,438) 5,511,055

5,511,055 28,310,625

Shareholders’ Meeting Deliberation Ordinary 15/12/2000 to Legal Reserve for profit destination

-

to Legal Reserve for Share capital decrease (342,310) to Reserve art. 21 of Company By-laws: used for youth training schools and technical-sports training

-

-

-

551,105

-

-

(551,105)

-

to Shareholders dividends

-

-

-

-

-

-

to Retained profits

-

-

-

-

-

3,610,148

to Income Statement

-

-

-

-

Net profit as at 30/06/2001

-

-

-

-

-

-

5,774,627

5,774,627

-

-

1,347,381

-

14,937,711

5,774,627

32,459,898

Shareholders’Equity as at 30/6/2001

72

-

(275,553)

10,400,179

(551,105)

-

(1,074,249) (1,074,249) (3,610,148) -

(551,105)

Appendices

Appendix 5: CASH FLOW ANALYSIS FOR THE FINANCIAL YEARS ENDED AS AT 30 JUNE, 2001 AND 30 JUNE, 2000 Values (thousand e) 30/06/2001 30/06/2000 Net Financial Position at beginning of the year: Net profit: Amortisation of players’ registrations Other depreciations (Increase)/Decrease in receivables from football clubs (Increase)/(Decrease) in payables due to football clubs (Increase)/Decrease in other receivables (Increase)/(Decrease) in other payables (Increase)/(Decrease) in Employees’ Severance indemnity fund and other provisions Cash flows provided by operating activities Purchase of players’ registrations Disposal of players’ registrations (*) Other net investments Cash flows used for investing activities Distribution of profits Other variations in shareholders’ equity (art. 21 By-laws) Net financial position at end of the year

95,012 5,775 37,027 674 (7,147) (7,687) 4,446 10,255 (970) 42,373 (70,373) 15,858 (13,690) (68,205)

105,771 5,511 33,163 767 (24,918) 40,226 (1,015) 16,328 2,092 72,154 (100,879) 27,451 (7,889) (81,317)

(1,074)

(1,074)

(551)

(522)

67,555

95,012

(*) net book value

73

Reports and financial statements as at 30 June, 2001

BOARD OF STATUTORY AUDITORS’ REPORT Dear Shareholders, The financial statements closed as at 30 June, 2001, which we are submitting for your examination and approval, close with an operating profit of E 5,774,627, net of direct taxes for a total of E 4,980,569 (Current taxes minus Deferred taxes: 8,099,520 - 3,118,951). We have checked them and found that they agree with the books, are written clearly and provide a truthful and fair representation of the Company’s financial situation and the economic result for the financial year. In the Supplementary Note, the Board of Directors supplies the information requested by law, as well as information considered to be useful in relation to the characteristics of the company and the sector in which it operates: the method used highlights the facts which gave rise to financial transactions, as well as their effect upon the liquidity and solvency of the Company; the Management Report illustrates the management of the Company during the financial year and the foreseeable evolution in the future, in the light of the elements of which we are aware and of those which can be rationally assumed, as well as other information expressly requested by art. 2428 of the Italian Civil Code. We also wish to communicate and confirm the following: -

Legal directives were observed with regard to the general principles and evaluation criteria used to prepare the financial statements and in particular to the application of principles of prudence, of the company’s continued operation and competence. We feel that the information supplied by the Board of Directors in the Supplementary Note is sufficient to justify the choices made regarding technical discretion, as acknowledged to the Directors by law.

-

The Asset and Liability Statement, the Profit and Loss Account and the Supplementary Note are, in our opinion, adequate and respect the structure and contents indicated by the Federazione Italiana Giuoco Calcio (Italian Football Federation) and the Commissione di Vigilanza per le Società di Calcio (Supervisory Commission for Italian Football Clubs), in compliance with articles 2424, 2425 and 2426 of the Italian Civil Code.

-

The evaluation criteria applied, with which we agree and which have not been subject to any changes compared with those applied during the previous financial year, comply with said directive, there having been no occurrences or exceptional cases requiring application of the derogation provided for in art. 2423, paragraph 4 of the Italian Civil Code.

-

The reserve provided for in article 21 of the Company By laws was correctly used for technical and sportive training in the youth sector.

74

Board of Statutory Auditor’s Report

-

While carrying out our examination we attended the meetings of the Board of Directors and are able to confirm that the Company was managed in observance of the law and the directives of the Federazione Italiana Giuoco Calcio.

The above has been analytically presented in accordance with art. 2429 of the Italian Civil Code. Having considered the report by PricewaterhouseCoopers S.p.A., who reviewed the financial statements, we invite you to approve the financial statements for the financial year ended at 30 June, 2001, as prepared and presented by the Board of Directors, and the proposal of profit destination in compliance with legal and statutory directives. Turin, 16 August 2001 The Auditors Giorgio Giorgi Alberto Ferrero Carlo Re

75

Reports and financial statements as at 30 June, 2001

INDEPENDENT AUDITORS’ REPORT

76

JUVENTUS F.C.

registered office Corso Galileo Ferraris n. 32 - 10128 TURIN Telephone +39 011 65 63.1 Fax +39 011 660 42 32 stadium Stadio Comunale Telephone +39 011 329 00 88

Design and art direction Beatrice Coda Negozio Photography LaPresse English version Euro Translations Printed by Bertello Grafica S.r.l. October 2001