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Arsenal Holdings Plc Financial Highlights Directors, Officers and Advisers

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Arsenal Holdings Plc Financial Highlights Directors, Officers and Advisers CONTENTS FINANCIAL HIGHLIGHTS page 3 DIRECTORS, OFFICERS & ADVISERS page 4 CHAIRMAN’S REPORT page 5 EMIRATES STADIUM page 15 REVIEW OF THE 2005/2006 SEASON page 17 CHARITY OF THE SEASON page 21 ARSENAL IN THE COMMUNITY page 22 DIRECTORS’ REPORT page 24 FINANCIAL STATEMENTS Corporate Governance page 26 Remuneration Report page 27 Independent Auditors’ Report page 28 Consolidated Profit and Loss Account page 29 Balance Sheets page 30 Consolidated Cash Flow Statement page 31 Notes to the Accounts page 32 FIVE YEAR SUMMARY page 53 NOTICE OF ANNUAL GENERAL MEETING page 54 AGM VOTING FORM page 55 FINANCIAL HIGHLIGHTS 2006 2005 Group turnover £m 137.2 138.4 Group operating profit before player trading and exceptional costs £m 11.3 32.6 Profit before taxation £m 15.9 19.3 Earnings per share £ 127.01 138.91 Group Turnover Group profit before taxation £m £m 180 25 160 15 140 5 120 -5 100 80 -15 60 -25 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 Wage Cost as % of Group turnover Investment in players - additions to intangible fixed assets %£m 70 60 65 60 40 55 50 20 45 40 0 2002 2003 2004 2005 2006 2002 2003 2004 2005 2006 3 ARSENAL HOLDINGS PLC FINANCIAL HIGHLIGHTS DIRECTORS, OFFICERS AND ADVISERS LIFE VICE PRESIDENT BANKERS C E B L Carr Royal Bank of Scotland plc 62/63 Threadneedle Street DIRECTORS London P.D. Hill-Wood EC2R 8LA Lady Nina Bracewell-Smith R.C.L. Carr Barclays Bank plc D.B. Dein Holloway & Kingsland K.G. Edelman Business Centre D.D. Fiszman London K.J. Friar OBE E8 2JX Sir Chips Keswick Lord Harris of Peckham REGISTRARS Capita IRG plc MANAGER The Registry A Wenger OBE 34 Beckenham Road Beckenham SECRETARY Kent D Miles BR3 4TU GROUPCHIEF ACCOUNTANT AUDITORS S W Wisely ACA Deloitte & Touche LLP Chartered Accountants REGISTERED OFFICE London Highbury House EC4A 3TR 75 Drayton Park London SOLICITORS N5 1BU Slaughter & May One Bunhill Row COMPANY REG. London NO. 4250459 EC1Y 8YY ENGLAND 4 ARSENAL HOLDINGS PLC DIRECTORS, OFFICERS AND ADVISERS CHAIRMAN’S REPORT I am delighted to begin this year’s report with a Our main contractor, Sir Robert McAlpine, review of what has, once again, been a very completed the construction and fit-out work busy and historic year for the Arsenal Group. at Emirates Stadium on schedule and the stadium achieved practical completion in mid- The 2005/06 season saw the team accomplish July. The Club immediately staged three very a significant first in the Club’s history by successful ‘ramp-up’ events in order to reaching the final of Europe’s premier club confirm receipt of the relevant safety competition – the UEFA Champions League. certificates and also to fine tune the detailed Although we narrowly missed out on winning operating procedures for Emirates Stadium. this prestigious trophy in Paris, the European These events were a Shareholders’ Lunch, a campaign thrilled us all and we can be very ‘Members’ Day’ - attended by 20,000 proud of our players for their achievements in supporters who watched a first team training the competition. session and a testimonial match for Dennis Bergkamp, which gave 54,000 supporters an Our fourth place finish in the Barclays opportunity to celebrate the wonderful career Premiership assured the Club of a place in the of a true Arsenal legend as well as experience third Qualifying Round of the UEFA Champions Emirates Stadium for the first time. League for 2006/07, which we have now successfully won thus securing a place in the I would like to take this opportunity to group phase for a ninth consecutive season. recognise the fantastic contribution by all members of our project team working on The 2005/06 season will live in the memory of Emirates Stadium. The professionalism and everyone associated with Arsenal Football dedication from the team towards the project Club being the season we said farewell to has been first class and the completion of our Highbury, the Club’s home for the past 93 wonderful new stadium on time is a credit to years. Sunday, 7 May 2006 saw the last match everyone involved in the project. Page 15 of at our famous stadium, end in a 4-2 this report details the progress made at celebratory victory over Wigan Athletic and a Emirates Stadium over the course of the year. spectacular closing ceremony. In July we also confirmed details of an issue The last ever event at Highbury - the Highbury of £210 million of fixed rate and £50 million Auction - was held at the end of July, when over of floating rate bonds and the proceeds of 600 items from the stadium were auctioned in this bond issue have been used to re-finance front of thousands of bidders in the East the project finance bank loans used to fund Stand. Many items of memorabilia owned by the Emirates Stadium development. the Club will be transferred to Emirates Completion of the re-financing secures the Stadium, but we felt it appropriate to offer funding arrangements for Emirates Stadium supporters the chance to own their own piece for the long term and provides a significant of Highbury’s history. A percentage of all reduction in the Group’s annual debt service proceeds from the Highbury Auction were costs. donated to charities supported by Arsenal, including The David Rocastle Trust. The investment we have made in Emirates Stadium clearly demonstrates our commitment Leaving Highbury was very emotional for to maintaining and building on Arsenal’s everyone involved with the Club, but we can position as one of the leading clubs in now look forward to an exciting new chapter European football. This commitment to the in Arsenal’s history at our new home - Club’s future was further confirmed in May Emirates Stadium. when we announced that, Club captain, Thierry 5 ARSENAL HOLDINGS PLC CHAIRMAN’S REPORT CHAIRMAN’S REPORT Henry had agreed a new long-term contract. Senderos and Emmanuel Eboue now fully Thierry is already Arsenal’s all-time leading established as first team regulars. goalscorer and is widely and rightly acknowledged to be one of the very best The Carling Cup was again used to give many players in the world. We are delighted that he of our younger players invaluable experience, will be leading the team out at Emirates and they showed their great potential by Stadium. reaching the semi-final stage of the competition. In the FA Cup, the Club were On the field unfortunately eliminated from the competition at the Fourth Round stage by Although the team’s League performances in Bolton Wanderers - last season was only the 2005/06 were not as consistent as in the second time in the past nine years that recent years, a fourth place finish in the Arsenal have failed to reach the FA Cup Premiership has ensured qualification for the semi-finals. UEFA Champions League for the ninth straight season, which is a tremendous achievement. A grand total of 16 players from the Arsenal Progress into the Group Stage of the 2006/07 first team squad were selected to represent competition was confirmed in August by an their respective countries in the 2006 FIFA impressive win over Dinamo Zagreb in the final World Cup. This was the highest representation pre-qualification round. of any single club and indicates the potential and strength in depth of the squad that Arsène The Champions League undoubtedly provided Wenger is assembling at the Club. the highlight of the 2005/06 season. The team progressed through the group stage in The reserve team enjoyed a very consistent excellent style with wins in its first five season. After spending most of the season at matches, including all three away games. the top of the FA Premier Reserve League – Progress through the knock-out stages South, Neil Banfield’s team finished in the top featured thrilling victories over Real Madrid, three for the second consecutive season, a Juventus and Villarreal. The campaign featured very commendable result. many memorable moments, from Thierry Henry’s winning goal in the Bernabeu through The Arsenal Ladies enjoyed another very to Jens Lehmann’s last minute penalty save in successful year, under the guidance of Vic the semi-final, and saw the team establish a Akers, winning their third League and FA Cup remarkable new record, of ten games, for ‘double’ in the last six years. Unfortunately our consecutive European matches without Ladies could not repeat the European success conceding a goal. In the Final in Paris, the of the men being eliminated at the Quarter team showed wonderful spirit and came so Final stage of the Women’s UEFA Cup. close to securing an historic win before two late goals resulted in Barcelona emerging as Pages 17 to 20 provide a full review for 2-1 winners. Arsenal’s first Team, reserves, youth and ladies teams in the 2005/06 season. During the course of the season, Arsène Wenger once again used suitable PLAYER TRANSFERS opportunities to integrate some of the Club’s younger players into the first team. Arsène has During the close season, Czech Republic a remarkable ability to identify and integrate international midfielder Tomas Rosicky joined talented young players and it is exciting for us the Club from Bundesliga side Borussia to see players such as Cesc Fabregas, Philippe Dortmund. 6 ARSENAL HOLDINGS PLC CHAIRMAN’S REPORT CHAIRMAN’S REPORT During the summer we also completed the provided an excellent example to some of the permanent transfer of Alexandre Song from younger players who progressed playing French side Bastia.
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