OL GROUPE CONTENTS PROFILE & FINANCIAL OVERVIEW III CHAIRMAN'S MESSAGE IV-V MEN'S TEAM VI-VII WOMEN'S TEAM / YOUTH TEAMS VIII-IX REVIEW OF 2013/14 BUSINESS ACTIVITIES X PLAYER TRANSFERS AND LOANS XI OUTLOOK AND OBJECTIVES XII PLAYERS AND STAFF XIII TRAINING ACADEMY XIV-XV GROUP STRATEGY HAND-IN-GLOVE WITH CORPORATE SOCIAL RESPONSIBILITY XVI-XVII OLYMPIQUE LYONNAIS PARK XVIII-XXI FINANCIAL RESULTS XXII-XXIII SHAREHOLDER INFORMATION XXIV-XXV FINANCIAL YEAR 2013/14 1 OLYMPIQUE LYONNAIS 2014 DESIGN: Actus, Zebrand ENGLISH VERSION: Trafine PHOTO CREDITS: S. Guiochon – R. Mouillaud / Le Progrès - © Populous - Intens - Cité Groupe AIA / Buffii / II PROFILE 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 Since OL Groupe was created in 1999, it has built an innovative business model combining financial durability and a recurrent revenue stream, articulated around five complementary sources of revenue: • TICKETING • SPONSORING AND ADVERTISING • MEDIA AND MARKETING RIGHTS • BRAND-RELATED REVENUE (derivative products, OL Images, etc.) FINANCIAL HIGHLIGHTS • PLAYER TRADING 2013/2014 In July 2013, OL Groupe launched the construction of a new, • REVENUE .......................................................... €120.5 M privately-owned stadium. This ultramodern facility will • EBITDA ................................................................ €- 7.5 M generate a new vein of long-term revenue growth for the Group, enabling it to enhance its economic and sport-based • LOSS FROM ORDINARY ACTIVITIES ....................€24.9 M competitiveness at the European level. The Group is also • EQUITY............................................................... €108.2 M pursuing its strategy to capitalise on its training academy. The new stadium and the training policy constitute major • CASH NET OF DEBT* ............................................€4.0 M avenues for improving economic performance over the • AVERAGE EMPLOYEE NUMBERS................................ 255 medium-to-long term. *Excluding the new stadium and OCEANE bonds and including net receivables on player registrations Registration Document - OL GROUPE 13/14 / III INTERVIEW WITH THE CHAIRMAN THE OLYMPIQUE LYONNAIS PARK FOUNDATION STONE CEREMONY WILL REMAIN ONE OF THE HIGHLIGHTS OF 2013/14. WHAT IS YOUR ASSESSMENT OF THIS FINANCIAL YEAR? "Tuesday, 12 November 2013 will be remembered as a key date in the history of Olympique Lyonnais, because the new stadium, once built, will enable the Club and OL Groupe to cross an important development threshold. The foundation stone represents the beginning of a strategic undertaking. OL has anticipated the business and structural changes in professional football, in an overall economic context that remains complex. Like all the other major European clubs, we have decided to be the owners of our new stadium so that the Olympique Lyonnais Group can earn all of the revenue generated by the Park and enjoy advantages comparable to those of its major European competitors. This strategy is right in line with the Financial Fair Play initiative implemented by UEFA. On the football pitch, the 2013/14 season demonstrated that our strategy, based on our local identity and the excellence of our training academy, is well-founded. Although we were not able to achieve our objective and return to breakeven, we can put the net income figure into perspective by breaking it down into its constituent parts." WHICH ITEMS IMPACTED THE BOTTOM LINE? "I should start by emphasising that we continued to make deep cuts in personnel costs and amortisation of player registrations in 2013/14. This led to a €17.3 million drop in the related expenses compared with the previous financial year. These efforts, in line with the Group’s strategy, could have been enough for a return to breakeven this year, had it not been for two other important events. Firstly, the exceptional, "75% tax" on high salaries reduced earnings by €6.3 million. Secondly, we did not complete the plan to sell player registrations worth €20 million, because certain players changed their minds or were injured. So the policy we implemented was in line with our expectations. We posted a loss from ordinary activities of €24.9 million in 2013/14, principally because of the items mentioned above, but the value of players whose departure could not be finalised during the year remains on our balance sheet." SO YOUR STRATEGY REDUCED NET PLAYER ASSETS SIGNIFICANTLY WHILE KEEPING POTENTIAL GAINS HIGH? "Exactly. In six years, net player assets declined from €121.5 million (30/06/2010) to €13.6 million as of 30 June 2014 and will probably decline to €7 million as of 30 June 2015. The market value of our players, meanwhile, totalled €92.4 million as of 30 June 2014. We have successfully maintained a high level of potential capital gains (ca. €80 million) owing to our training policy, which is one of the Club’s strategic priorities. For more than five years now, we have been devoting nearly €7 million p.a. to the training academy, which is part of the Group’s DNA, while placing as much value on the purely technical ability of our young footballers as on their everyday social and academic behaviour. Nearly 90% of our potential capital gains relate to players who come from our Academy, which proves that our strategy makes good sense." / IV THE PROFESSIONAL TEAM’S IDENTITY IS NOW VERY CLOSELY TIED TO LYON, ISN’T IT? "Yes, it follows directly from our strategy. Currently, 22 of the 33 professional players were trained at the OL Academy and eight or nine of the starting players in every match were trained at OL. Our Academy is becoming international, and this is enriching our Lyon-based football culture. The Academy now has five foreign players, all internationals, from China, South Korea, Luxembourg, Switzerland and Norway. This identity strengthens the Group. Our players have lived and experienced together, have strong bonds with the club and are proud to wear the OL shirt. It also generates enthusiasm among fans, who share these values. More generally, our strategy has been recognised at the national level. In 2014, for the second year in a row, the OL Academy was ranked no. 1 among French training academies. It has also been recognised internationally. The OL Academy was ranked no. 2**, tied with Real Madrid and behind Barcelona, also for the second time in a row. The Club’s youth teams won two new titles this year, as the U17 boys and U19 girls each won their respective championship. The U19 girls trophy was particularly gratifying, as it comes when we are creating a training programme for girls on the same model as the existing programme for boys." IS THIS INITIATIVE AN EXTENSION OF YOUR POLICY TO DEVELOP WOMEN’S FOOTBALL? "It is a logical extension of our efforts over the past 10 years. The success of our women’s team has generated interest in women’s football, which was having trouble gaining a foothold in France, whereas it was already an established sport in Germany, Northern Europe, Asia and North America. The women’s football environment has changed radically. Our women’s team now has its own partners and its own fans. Its matches are televised, as are those of the French national women’s team. So we have decided to leverage the strengths we have developed in training boys and apply them to the training of girls. Sonia Bompastor, who has recently retired as a player, is now in charge of this project, which is set to complement the federation system, and whose objective is to see female players from the OL Academy play on Division 1 women’s teams." THE 2014/15 SEASON WILL BE THE LAST ONE PLAYED ENTIRELY IN THE GERLAND STADIUM. WHAT DOES THE FUTURE HOLD? "The Academy is central to the Group’s strategy, and our on-the-pitch objective is to return as quickly as possible to the Champions League. And we must also start to prepare ourselves for the Olympique Lyonnais Park, which will be completed in the very near future. New products and services related to the Olympique Lyonnais Park are already being marketed and business has picked up speed over the past few months. Forty builder partnerships and three technology partnerships have been signed and nearly one-third of the 105 private boxes have been reserved. Marketing is set to accelerate and generate a new long-term growth trend as soon as the new stadium is delivered." WILL THE STADIUM BE OPERATIONAL FROM THE START OF 2016? "By January 2016 at the latest, but maybe even from the end of December 2015. Work began on 29 July 2013 and is advancing according to plan. Olympique Lyonnais will therefore start playing in the new stadium at the end of January 2016 at the latest. The stadium will then see its first major international event a few months later, when it hosts six Euro 2016 matches, including one semi-final. This superb project will very soon become a reality and will project Olympique Lyonnais into a new dimension, one inhabited by the best European clubs, who all own their stadiums and consequently benefit from all of their revenue streams." * Market value based on Transfermarkt and revised by OL principally to reflect young players from OL Academy **CIES Football - October 2013 Registration Document - OL GROUPE 13/14 / V 2013/14 SEASON PERFORMANCE FRENCH LIGUE 1 5TH PLACE TH CONSECUTIVE FINISH IN THE TOP 5 16 OF THE FRENCH LIGUE 1 FRENCH CUP COMPETITIONS FINALIST IN THE COUPE DE LA LIGUE TITLES ROUND OF 16, COUPE DE FRANCE 17 SINCE 2000/01 EUROPA LEAGUE QUARTER-FINAL AGAINST JUVENTUS EUROPEAN CUP QUARTER-FINALS 5 SINCE 2000/01 UEFA INDEX 12TH PLACE AND TOP FRENCH CLUB OL IS THE TOP FRENCH CONTRIBUTOR AS OF 30/06/2014 TO THE UEFA INDEX 27% (2009-10 TO 2013-14) 7 CONSECUTIVE LIGUE 1 TITLES SINCE 2002 TO 2008 8 TROPHÉE DES CHAMPIONS TITLES (1973, 2002-2007, 2012) 12 CONSECUTIVE PARTICIPATIONS IN THE CHAMPIONS LEAGUE, FROM 2000/01 TO 2011/12.