Registration Document 2017/18 Contents
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REGISTRATION DOCUMENT 2017/18 CONTENTS III OL GROUPE AT A GLANCE IV-V INTERVIEW WITH THE CHAIRMAN VI-VII GROUPAMA STADIUM VIII A UNIQUE EVENTS VENUE IX ACCLAIM FOR GROUPAMA STADIUM X-XI OL CITY XII FACILITIES ARE 100% OPERATIONAL XIII INTERNATIONAL DEVELOPMENT XIV-XV REVIEW OF 2017/18 BUSINESS ACTIVITIES XVI-XVII MEN’S TEAM XVIII WOMEN’S TEAM XIX YOUTH TEAMS XX-XXI THE OL ACADEMY / VALUE CREATION AND RECURRING VALUE XXII-XXIII CSR XXIV-XXV FINANCIAL RESULTS XXVI HISTORY AND MILESTONES XXVIII SHAREHOLDER INFORMATION XXIX SHAREHOLDERS OLYMPIQUE LYONNAIS 2017/18 DESIGN: Actus, Zebrand PHOTO CREDITS: S. Guiochon – R. Mouillaud / Aurélie Raisin Photographe / Holnest / Le Progrès - © Populous - Intens Cité Groupe AIA / Buffi II English text: Trafine SARL OL GROUPE AT A GLANCE ORGANISED AROUND OLYMPIQUE LYONNAIS, THE FOOTBALL CLUB FOUNDED IN 1950 AND HEADED BY JEAN- MICHEL AULAS SINCE 1987, OL GROUPE IS A LEADER IN THE ENTERTAINMENT AND MEDIA SECTOR IN FRANCE. The Group’s activities are articulated around six complementary sources of revenue: • TICKETING • SPONSORING AND ADVERTISING • MEDIA AND MARKETING RIGHTS • EVENTS • BRAND- RELATED REVENUE (derivative products, OL Images, etc.) • PLAYER TRADING Since Groupama Stadium was inaugurated on 9 January 2016, OL Groupe has had, similarly to the most prestigious European clubs, a 100% privately-owned stadium. Operation of this ultra-modern, multi-functional stadium, open 365 days a year, constitutes a major new source of medium-term growth for the Group. In addition, training young players in the OL Academy, France’s leading football training academy, remains a pillar of the Group’s strategy. The Academy represents a pool of talented young players for the professional team and is an important source of value creation for the Group. Leveraging these strengths and a sound financial condition, OL Groupe confirms its strategy to generate elite and recurrent sporting performance from its professional teams so as to support its growth and development, both domestically and internationally. Its objective is to be one of the top European clubs in the medium term. The risks to which the Group is exposed are described in chapter 4 of this Registration Document. KEY FIGURES 2017/18 €289.5 M €73.9 M €25.2 M REVENUE EBITDA PROFIT FROM ORDINARY ACTIVITIES €625.5 M €257.9 M €173.4 M TOTAL ASSETS EQUITY DEBT NET OF CASH* €399.4 M 414 * including net player registration receivables/payables PROPERTY, PLANT AVERAGE NUMBER & EQUIPMENT OF EMPLOYEES Registration Document - OL GROUPE 2017/18 III INTERVIEW WITH THE CHAIRMAN IV STRONG GROWTH IN PROFITS SEEMS TO BE BEARING OUT YOUR STRATEGY. CAN WE SAY THAT OL GROUPE’S NEW BUSINESS MODEL HAS BEEN SUCCESSFUL? Our new business model, developed around operation of Groupama Stadium, was designed to substantially increase revenue and put Olympique Lyonnais back among the major European clubs, in particular through regular participation in the Champions League. In this regard, the 2017/18 financial year confirmed that our business model is a judicious one. Revenues reached a record high €289.5 million, EBITDA nearly €74 million, also a record high, and the bottom line was positive for the third consecutive year. On the pitch, the team again qualified for the Champions League at the end of the season, demonstrating once more its highly recurrent performance at the European level. This will be the 22nd time it has played in a European cup tournament (including 15 times in the Champions League). We are thus in line with the objectives set for the Group when we launched the project to build a new privately-owned stadium. BEFORE TURNING TO GROUPAMA STADIUM, LET’S TALK ABOUT THE OL ACADEMY. HASN’T THE ACADEMY ALSO BEEN CENTRAL TO THE GROUP’S STRATEGY? The OL Academy is part of the Club’s DNA. Its tradition, expertise and history are perpetuated by the numerous former players – now including some female players – who are among the coaches. We have invested significantly both in the infrastructure and in the training of our young players. Our Academy is currently the only mixed-sex training academy in France, which is also evidence of a strong commitment. No. 1 in France for the last six years, the OL Academy is now ranked 3rd in Europe. This excellence constitutes an important source of value. It generates a recurrent and significant revenue stream and represents a prodigious potential for development and international exposure. The Group has already used this exposure to export its expertise to academies in China, Lebanon, South Korea, Vietnam and Senegal, and is currently working on other international projects. GROUPAMA STADIUM HAS BEEN ENORMOUSLY SUCCESSFUL WITH THE PUBLIC, ATTRACTING 1.4 MILLION VISITORS, AN AVERAGE OF 46,000 SPECTATORS PER LIGUE 1 MATCH IN 2017/18. THE EVENTS ACTIVITY, I.E. EXCLUDING OL MATCHES, HAS GROWN BY 70%. WHERE DO YOU SEE ATTENDANCE GOING IN THE FUTURE? Indeed, last season we set a record for Ligue 1 attendance, with 46,000 spectators on average (more than double the Ligue 1 average). The increase has been continuous since Groupama Stadium opened. There was an average of 39,000 fans for Ligue 1 matches in 2016/17, then 46,000 in 2017/18, and we have already seen more than 50,000 on average during the initial 2018/19 matchdays. This increase testifies to the venue’s attractiveness, as it has all the characteristics spectators seek, from accessibility and security to comfort and services, but also to a pricing system the club has refined, through experience, to respond to fans’ expectations. Alongside our core activity – the matches of our men’s and women’s professional teams – the Events business is seeing robust growth. Events have been both numerous and prestigious (concerts, other sporting events) and have included nearly 1,000 seminars since the stadium opened. Groupama Stadium once again proved that it can successfully host a diversified array of events, from a Celine Dion concert to a Monster Jam and from French national football and rugby team matches to the Top 14 semi-finals and the Europa League final, owing to a design intended to satisfy the widest variety of needs. A little more than two years after its inauguration, Groupama Stadium has already become a major venue for various organisers, sporting bodies and private sponsors. And the 2018/19 season will only confirm this success: the three Ed Sheeran concerts next May will attract a total of 150,000 people, whereas only one date had initially been scheduled! With new events coming thick and fast, the number of visitors to the site should see a steep rise. We aim to bring nearly 3 million visitors here annually, owing in particular to the development of OL City. WHERE DOES THE OL CITY PROJECT STAND? This integrated complex of activities, built around Groupama Stadium, was designed to operate 365 days a year. This is no longer just a plan; in around two years’ time it will be a reality. Independent of the facilities already operational since 2016 (stadium, training centre, store, corporate and employment centre, Brasserie des Lumières), OL City expanded in the last few months, with the opening of the OL Museum in May and the Kopster hotel in October. Meanwhile, work on the other OL City facilities continues. The medical centre is slated to open in mid-2019, the "Les Loges" office building a few months later and the 23,000 sq. m. leisure & entertainment complex in the autumn of 2020. Less than five years after the inauguration of Groupama Stadium, OL City will be an operational B2B and B2C activities area, just as we had envisioned it. Registration Document - OL GROUPE 2017/18 V VI GROUPAMA STADIUM KEY TO GROWTH AND DEVELOPMENT A MODERN, MODULAR, CONNECTED, 100% PRIVATE STADIUM, OPEN 365 DAYS A YEAR 59,186 SEATS (incl. 6,000 VIP seats) 105 BOXES 7 themed lounges, offering a diversified hospitality solution Close to 40 concessions and kiosks (catering and merchandising) 300 automatic cash desks BOCUSE BRASSERIE More than 48,000 meals SERVICES 2.0 LATEST served in 2017/18 GENERATION Wifi - 4G/3G 25,000 simultaneous connections Mobile application In-seat ordering 25 KM OF PUBLIC TRANSPORT dedicated to the stadium OL MUSEUM Inaugurated on 28 May 2018 Hosting for major sporting, cultural and B2B events - 8,000 sq. m. of modular reception space - Nearly 400 B2B events in 2017/18 - This performance was the result of a prestigious and particularly lively schedule of events during the year, with a Céline Dion concert, a France/All Blacks rugby match, the UEFA Europa League final, the two 2018 Top 14 semi-finals, a pre-World Cup friendly (France/USA), a Monster Jam, etc. Registration Document - OL GROUPE 2017/18 VII A UNIQUE EVENTS VENUE Olympique Lyonnais owns 100% of its infrastructure and will endeavour to maximise use of it so as to increase the amount and the recurring nature of revenue generated by Groupama Stadium, now an international benchmark for sporting and other events. Groupama Stadium hosted many major events during the 2017/18 financial year. Following the Celine Dion concert in July 2017, six major sporting events were held in Groupama Stadium, including France/All Blacks rugby match (14 November 2017), the UEFA Europa League final (16 May 2018), the two Top 14 rugby semi-finals (25 and 26 May 2018), Monster Jam (June 2018), and a France/ USA friendly in preparation for the Football World Cup. Groupama Stadium will maintain this momentum with three Ed Sheeran concerts on 24, 25 and 26 May 2019, a Stars 80 concert on 1 June 2019 and the Women’s World Cup semi-final and final matches on 2, 3 and 7 July 2019.