Corporate Social Responsibility and Sustainability Report 2019-2020 Corporate Social Responsibility and Sustainability Report 2019-2020

CONTENTS

Corporate Social real madrid c. f. Responsibility and Sustainability 04 Report 2019-2020 Corporate SOCIAL responsibility at Real Madrid 14

2019-2020 financial year obligations fulfilment 18 1. REAL MADRID C.F.

1.1 Institutional profile

Real Madrid Football Club is a sporting entity whose objective and purpose is primarily that of dedicating its activity and assets to the promotion of football in all its different categories and age groups and, generally, the practice of all the sports specified by its governing bodies. Likewise, as a complementary activity, it may promote the development of the physical, moral and intellectual culture of its affiliates by facilitating social relations and a spirit of unity amongst them.

Real Madrid Football Club, which was founded in March 1902 and whose first foundation charter is dated 18 April of the same year, has full legal capacity in accordance with the legislation currently in effect and is registered with the Spanish Football Federation, as well as with those federations required for the different Real Madrid’s 23 European Cups, in the boardroom of sports in which the club competes throughout Real Madrid City’s new corporate office building. any given season. 1.1.3 Values

1.1.1 Mission WILL TO WIN and to honour the support of their fans with a the sporting development of its youth players, Real Madrid’s main objective is to strive, to the best sporting endeavour based on criteria of quality, but also their social, ethical and civic education. To be an open and multicultural club that is both of its abilities, to win all of the competitions it enters discipline and spirit of sacrifice. With respect appreciated and respected throughout the world while showing its commitment, its belief in hard to the management of its activities, the club SOCIAL RESPONSIBILITY both for its sporting successes and for the values work and its loyalty to its supporters at all times. adheres to the principles of good governance and Real Madrid is aware of the high social repercussion it disseminates which, based on the search transparency and strives for excellence at all times. of its activities. It therefore dedicates all the for excellence both on and off the field of play, SPORTSMANSHIP resources within its power to complying with the very contribute towards fulfilling the expectations of Real Madrid is a worthy and fair opponent on TEAM PHILOSOPHY highest standards of good corporate governance its members and followers. the field of play, upon which it competes with All those who form part of Real Madrid, be they and the promotion of the best sporting values, goodwill and respect towards all rival teams sportspeople or other professionals, make a to strengthening its relations with its members, and their respective supporters. Away from the commitment to working as part of a team and former players, fan clubs and supporters, and to 1.1.2 Vision field of play it is Real Madrid’s overriding desire to give the best they have to offer for the good the development and implementation of solidarity to maintain relations with other clubs based on of the whole without putting their personal or projects in favour of the needy both within Spain A leading football and basketball club which, by fraternity and solidarity and to collaborate with professional aspirations first. and beyond its borders. way of its sporting triumphs, fulfils the hopes them and with the Spanish and international and expectations of all of its followers in Spain sports authorities on an on-going basis. TRAINING ECONOMIC RESPONSIBILITY and abroad, sustains its significant historical Real Madrid constantly devotes a great deal of Real Madrid is aware that it manages tangible legacy, manages its assets rigorously and EXCELLENCE AND QUALITY effort to discovering and instilling new sporting and intangible assets of exceptional value and transparently to the benefit of its members and Real Madrid aspires to have on its teams the values. This involves channelling the necessary importance, and it is for this reason that it pledges acts in accordance with social responsibility and best Spanish and international players, instilling attention and resources into the youth teams of to administer them responsibly, transparently, good corporate governance criteria. in them their commitment to the club’s values, all its sporting disciplines and nurturing not only efficiently and honestly in benefit of its members.

4 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 REAL MADRID C.F. 5 1.1.4 Real Madrid Foundation

The Real Madrid Foundation is the organization through which we channel our social actions in the context of Real Madrid’s corporate social responsibility. It runs social-sport projects in the areas of education, social integration and cooperation on five continents. Every year, Real Madrid makes a donation to the Foundation, to enable it to carry out its activities and develop its projects throughout the world.

The Foundation’s primary purpose is to foster the positive values of team sports both in Spain and abroad, and to promote it as a vehicle for delivering social initiatives to help the all-round Beneficiaries from development of the people taking part in them, the Calcutta (India) school. as well as to strengthen social integration to help lift people out of social exclusion. The Real Madrid Foundation likewise promotes and publicizes a wide range of socio-cultural The Foundation’s programmes of activities are the EFQM 300+ seal for its processes, which Real Madrid believes that establishing aspects associated with sport that contribute spread across six broad areas of action, such are evaluated every two years. partnerships based on principles and values to to society’s wellbeing and a sustainable future as the education in values through the practice achieve shared people-centred goals is beneficial in all the communities in which it carries out of sport; promoting weekly sports exercise as to the community. The School offers, both here projects in collaboration with local entities. a vehicle for personal improvement and social in Spain and overseas, higher education courses inclusion; working on projects combining the 1.1.5 Real Madrid Graduate School designed to provide students with specialist In addition to the donation it receives from meeting of basic needs with values-based sports management training of the highest quality, Real Madrid C.F., the Real Madrid Foundation sports practice; international cooperation, Driven by a commitment to society and with not only with respect to sporting facilities and also receives generous support, in the form team-sports related institutional and cultural the aim of promoting and fostering sport, as equipment, but also to the training and practice of of patronage and sponsorships, from notable activities and the management of the Historical well as its inherent values, the club, following a the sport or the conversion thereof into a spectator Spanish and international companies and, Heritage Centre. period of in-depth internal reflection regarding event, and including every aspect related with above all, from the individual contributions of the way in which the world of sports was communication, health and leisure, and all with thousands of Real Madrid supporters who, The Foundation is audited annually and developing, decided to extend its experience official university qualifications. This makes Real in this way, wish to express and strengthen presents the results of the audit to its Board and knowledge to university sector. With this Madrid the first club of its kind anywhere in the their ties with the club and guarantee a and to the Foundations Supervisory Board of purpose in mind, in 2005 Real Madrid Football world to be involved in the creation of a graduate sustainable future in all the communities in the Ministry for Education and Sport, and they Club reached an agreement with the European school for transmitting the legacy of knowledge which it carries out projects in collaboration are also published in the Foundation’s Annual University of Madrid to set up the Real Madrid accumulated over its 118 years, as well as to with local entities. Report. The Real Madrid Foundation also has Graduate School. spread the values that inspire all its actions.

6 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 REAL MADRID C.F. 7 that key decisions are endorsed and are firstly subjected to the scrutiny of the director of the corresponding area, secondly to the validation of Fans at the Santiago Bernabéu stadium. the operational management structure that acts across the entire organisation (Human Resources, Legal Services, Procurement, Expenditure Control, etc.), and thirdly to the approval of committees formed by senior club executives 1.2 Sustainability at Real Madrid that reflect Real Madrid's commitment to human 1.3 Real Madrid Corporate Governance and members of the Board of Directors. An rights and the fight against discrimination, and Transparency Policy Executive Committee, a Procurement Committee Founded in 1902, the Real Madrid Football violence and inequality. and a Financial Committee have been set Club is an institution with over one hundred 1.3.1 Corporate structure up, who meet periodically to make decisions years of history. Its corporate purpose and the Real Madrid today, is the accumulated legacy regarding appointments, transfers, terminations, unerring will of its membership endow it with of previous generations of members, players, Real Madrid Football Club is a nonprofit private staff salaries, purchases of goods and services, a permanent and perpetual character. To do coaches, staff and followers who have sports entity formed by its members in order to investments and budget tracking and measures this, the club focuses on its long-term future, bequeathed to us this world-class club we promote and practice the sports established in to minimise risks. Likewise, the Board of Directors firmly committed to a corporate culture of have inherited from them. For Real Madrid, its Articles of Association. receives regular reports from the Procurement sustainability in all its decision-taking processes sustainability implies accepting this inheritance, Committee and the Economic Committee, draws and understanding social trends and challenges along with a pledge to manage it well for the up the action plans and implements the operating as a strategic lever. future generations of Real Madrid members and 1.3.2 Administration of the club decisions in order to meet the established supporters, to ensure that our present results objectives. It also supervises and heads up the This sustainability is demonstrated in the do not jeopardise, but rather assure future ones, The management and representation of the administration and management of the club following aspects: and that the management of every one of our entity corresponds to the General Assembly, in the broadest sense of the word. Finally, the resources we are undertaking today does not the President and the Board of Directors. These correct implementation of all the processes is - Good Governance and Transparency: strict put at risk the enjoyment of them that the future three bodies are democratically elected by supervised by the Department of Compliance compliance with these principles, which are the generations who follow us have the right to the members, whose wishes are represented and Internal Auditing. All these steps ensure pillars on which the day-to-day activity of the in the way that the club is administered. The that the correct decisions are taken, that these club is based. Therefore, the club ensures that Based on widely accepted definitions of the principles of accountability and transparency concur with the strategy and do not exceed the the culture of compliance and good governance term, Real Madrid considers sustainability to are systematically applied in all the areas of the approved budget. permeates throughout the structure and at all be the management of the impacts its business club in accordance with the standards of good levels of the organisation. All this while carrying generates on the groups with whom it frequently governance. Mandatory and auditable procedures exist with out a responsible economic management that interacts. Through continuous dialogue with the same objective as regards the approval of ensures the indefinite continuity of its activities. these groups, this impact management aims Good corporate governance manifests itself in invoices received, the settlement of expenses to achieve sustainable relationships based the administration of the club by way of cross- and attentions to protocol so as to prevent - Environmental: minimising the environmental on mutual benefit and continually striving to cutting policies and procedures that ensure the abuses from occurring in sensitive areas. impact of the club's activities to stop the generate synergies and balance founded on control of key decisions such as appointments, advancement of climate change and preserve respect for the legitimate interests of all parties. remunerations, purchases and investments. This exhaustive operational control is not limited biodiversity. to expenditure. The follow-up of the collection With this in mind, Real Madrid has defined all As far as all critical processes are concerned, of invoices issued is also systematised in order - Social: maximising the club's contribution to the groups it considers as its stakeholders and the procedures to be followed have been defined to keep arrears and non-payments under strict society in terms of prosperity through quality with whom it undertakes to seek long-term in such a way that their implementation is fully control in all of the club’s revenue areas, with this employment, promotion of sport and its values: commitments, which will be explained later on verifiable, traceable and auditable. The application being initially supervised by administration and, as well as contributing to community activities in this report. of good corporate governance principles ensures ultimately, by the Economic Committee.

8 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 REAL MADRID C.F. 9 1.3.6 Election of the president and Board of Directors

The Board of Directors is the body directly respon- sible for the administration, governance, manage- ment and representation of the club. The Board of Directors oversees the actions of the club’s execu- tive managers and in turn reports its findings to the General Assembly, thereby ensuring the principles of good corporate governance are applied to the management of Real Madrid at all times.

The President and the Board of Directors are dem- ocratically voted in as a result of the correspond- ing elections for which those members who are in compliance with that established in the articles of association put themselves forward as candidates.

Elections to choose a new President and Board Florentino Pérez during the of Directors are called under the following Real Madrid General Assembly. circumstances:

a. Due to the term of office of the former President and Board of Directors having expired. 1.3.3 The club's Transparency policy Also, the club’s policies include a Criminal Risk The General Assembly consists of all the Management System, the purpose of which is, members who are eligible to vote in accordance b. Upon the decision of the President or of the Real Madrid fully assumes its obligations of on the one hand, to lay down the procedures for with the system of democratic representation Board of Directors. accountability, publication of relevant data and identifying and managing risks to prevent crimes established in the club’s bylaws. c. When so agreed by the General Assembly due disclosure of its corporate activities. In this regard, being committed that could affect the club, and to the resignation or disqualification of the over recent years, it has gradually introduced on the other, to establish the fundamental anti- The General Assembly examines and, where Board of Directors, or whenever the number an integrated Transparency Policy, culminating bribery principles. An executive summary of the appropriate, approves the Annual Report, of Board members falls below a total of five in the website http://www.realmadrid.com/ policy is published on the Transparency portal in Balance Sheet and Profit and Loss Account due to resignations, abandonments, deaths or sobre-el-real-madrid el/club/transparencia. The the Compliance and Good Governance section. of each financial year, as well as the following physical disabilities. website publishes considerable institutional, year’s budget. financial, organisational and contract related d. Due to a vote of no confidence approved in 1.3.4 Members’ rights data as required under Spanish and international The General Assembly is the top institutional accordance with that stipulated in the articles regulations, such as the Law 19/2013 on body which systematically applies the principle of association - bodies, and with the control Transparency, public information and good All members have the right to enjoy the club’s of accountability and guarantees good procedures implemented by the General governance, and the Transparency International activities in accordance with the rules established governance for how Real Madrid is managed. Assembly to ensure the good governance INFUT indicators. Additionally, in 2019 Real for doing so, and to choose not only the bodies practices of the club. Madrid was awarded the degree of excellence in that represent and govern the club, but also the Other exclusive powers of the General the transparency of its labour relations issued by most senior bodies which monitor and control Assembly include the amendment of articles The Board of Directors remains in office for a the prestigious Institute for Transparent Labour the corporate governance of Real Madrid in a of association, taking the most important period of four years as of its announcement, Relations. democratic manner. economic decisions, passing a motion of no and its members can put themselves forward for confidence in the President or in the Board of re-election, either as a single unit or separately The transparency policy forms part of a broader Directors, and the calling of a referendum among as parts of other candidacies. The Board of range of corporate responsibility obligations 1.3.5 General Assembly the members in order to decide upon matters of Directors is endowed with the widest range of and good governance. It is accompanied extreme importance. All the foregoing endows powers with which to govern, administrate and by the Code of Ethics and monitoring The General Assembly is the most senior of the the General Assembly with an extremely wide represent the entity as the maximum body for programmes to ensure compliance, as well as club’s governance bodies and its duties include range of powers, all of which go towards expressing the will of its members, with the only quality assurance systems and stakeholder the approval and ratification or the censure of guaranteeing the sound corporate governance limit upon these being those matters that can participation. the President and of the Board of Directors. of the club. only be decided upon by the General Assembly.

10 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 REAL MADRID C.F. 11 1.3.7 Control systems from the organisations’ liabilities. The model The Board of Directors as the body responsible the best practices of good governance and describes the club’s existing control protocols, for establishing the control policy, has appointed transparency. It has become a benchmark in As mentioned above, Real Madrid is a the delegation of authority, the sanctions a person responsible enforcing compliance with the introduction of criminal risk management in transparent institution that is committed to the system and the supervisory bodies. This way, it the regulations, (a Compliance Officer). This the sports industry. principles of good corporate governance and, is made clear to the entire organisation, the way person will have ultimate responsibility in the above all, with the principle of accountability in which decisions are made and powers and organisation for oversight and control to prevent One crucial area in the crime prevention model, being systematically applied at all levels of club responsibilities are assigned in accordance with unlawful behaviour and to ensure compliance is that of cybersecurity. During 2017-2018 management. The control activity is the result of internal approval procedures, the way in which with the regulations. season, a Cybersecurity Committee was set the workings of the club coming under constant the correct application of these procedures up, comprising representatives from the legal, scrutiny by its internal executive bodies, by all will be supervised and monitored, and lastly, In a further step towards monitoring compliance technology, human resources and control of its members, by the authorities, and even by the sanctions system to be applied to respond with the regulations, and as a clear sign of Real departments, invested with responsibility for public opinion via the communication media. to any unlawful behaviour or failure to comply Madrid’s commitment to ensuring the crime detecting and blocking unauthorised actions The internal executive body is the Internal with the regulations established by the club. prevention model is properly installed, the club and for development of specific regulations Control and Auditing Board, reporting to the The Organisation and Management Model obtained in the 2017-2018 season accreditation relating to technological risks. President and the Board of Directors. It defines describes the club’s existing control systems, from the Spanish standards agency AENOR, and audits the control procedures and systems and defines the functions of the bodies involved certifying full compliance with all requirements Meanwhile, in accordance with what is that are required to ensure a maximum degree of in matters of internal control. Delegate Members of the Criminal Compliance Management described in the following point, since Real institutional diligence. The membership exercises Assembly, Board of Directors, Membership System in accordance with the UNE 19601:2017 Madrid has joined the United Nations Global control via the Delegate Members’ Meeting and Disciplinary Commission, Ethics Committee, standard. This made Real Madrid one of the Compact, this control activity has been further the Board of Directors. The sports authorities Executive Committee, Financial Committee, first membership organisations in Spain to reinforced, with a commitment to the periodical (national and international federations, national Procurement Committee and Internal Control obtain it, and it is confirmation of its ongoing reporting in a Progress Report of the sustainable leagues and the (Spanish) National Sports and Auditing Board. pledge to stay at the forefront in adopting development actions implemented. Council) also permanently supervise the club’s activities, which are also under the constant The club has likewise established a Criminal Risk scrutiny of the different communication media, Prevention System, the purpose of which is, on further proof of the club’s transparency with the one hand, to lay down the procedures for respect to the management of all its activities. identifying and managing risks to prevent crimes being committed that could affect the club, and As a whole, the control systems implemented on the other, to establish the fundamental anti- by Real Madrid ensure that the way in which it bribery principles. The executive summary of the is run is permanently adapted to the principles policy is published on the Transparency portal in of good governance and transparency to which the Compliance and Good Governance section. the club unreservedly adheres. The control, the degree of consultation with respect to Another key aspect in relation to the control decision taking and the policy of accountability systems is the introduction of the Transparency are rigorously applied to prevent the taking of Policy, which aims to go beyond the legal arbitrary decisions and ensure that nobody can requirements established by the Law 19/2013 take decisions that compromise the good name on transparency, by publishing all the data and and administration of the Club. indicators required by the INFUT International Transparency Index, in which Real Madrid The Real Madrid Organisation and Management has obtained the highest score in the last Model for crime prevention has been in force audit conducted. This enables and activates since the 2013-14 season, which the club an on-going corporate control based on the named the Criminal Risk Management System permanent and updated publication of the (Sistema de Gestión de Riesgos Penales - club’s relevant information, increasing its own SGRP). This document resulted from the current level of demands and promoting the excellence situation regarding the prevention of risk arising of its control systems.

12 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 REAL MADRID C.F. 13 2. REAL MADRID CORPORATE SOCIAL 2.1.3 Employees 2.1.8 Suppliers

RESPONSIBILITY Real Madrid not only depends on its players in Suppliers are also a group of strategic interest order to pursue its business, but also on the rest in our value chain, as essential partners in order of the staff who provide their services to the club. to offer goods and services that comply with set parameters and assist in achieving the club’s The expectations and needs of our stakeholders towards the achievement of the 17 Sustainable 2.1.4 Sporting and public administrations overall objectives. are at the heart of Real Madrid's Corporate Development Goals (SDGs), which make up Social Responsibility. Identifying these and the so-called 2030 Agenda. These goals are Our sporting activity entails a continuous Procurement management and service establishing priorities on which to act will be interrelated to cover the three dimensions of relationship with sporting administrations: contracting are regulated by internal rules, control essential work to developing a sustainable sustainable development: economic growth, national and international federations, the systems and procedures in order to achieve strategy that allows us to advance in the social inclusion and environmental protection. professional leagues in which we participate the best possible supply option, optimizing the creation of economic, social and environmental and the National Sports Council. Our economic investment made. value. activity also entails a continuous relationship 2.1 Stakeholders served with public administrations at all levels: national 2.1.9 SOCIETY AND THE ENVIRONMENT As a result, in accordance with this strategy and by Real Madrid (Inland Revenue, Social Security), regional the founding values of the club, Real Madrid (Community of Madrid) and municipal (Madrid We also feel a great responsibility that we look to has joined the United Nations Global Compact, 2.1.1 Members City Council). articulate in the form of commitments made with becoming the first football club to sign it asa society at large. Real Madrid is the institution it is participant, the highest level of commitment. The Members of Real Madrid Football Club are 2.1.5 Other clubs because of the community it belongs to, which individuals who, upon meeting the regulations offers it considerable support. In response, Real The Global Compact is the world's largest approved by the General Assembly, join the entity Real Madrid’s sporting activity inevitably entails Madrid commits itself to helping the needy and corporate sustainability initiative: a global and are bestowed with the rights and obligations participation in local, national and international assisting community projects in which its values movement of sustainable companies and contained in the statutes. The members are competitions. The other clubs we compete and sporting experience may be useful. organisations committed to creating the world the owners of the club and, as such, its most with are another of our priority interest groups we all long for, working to generate positive important stakeholders. with whom we aim to establish and fulfil firm Real Madrid is also committed to training results in all three dimensions of sustainable commitments. new generations of sports managers that will development: the economy, society and the 2.1.2 Players and referees contribute to improving their communities’ environment. 2.1.6 Clients health, recreation and economies. Real Madrid’s corporate purpose is to promote Its actions are based on the 10 Principles of sport. Therefore, all the players and referees are Our activity requires economic income that Our present and future vocation leads us to work the Global Compact and its strategy is oriented a group of great importance to the club. originates from our clients. Our clients are both with youngsters and commit ourselves to their companies and individuals. These companies future. We are therefore careful that our impact include television channels, sponsors, licensees, on the environment does not compromise its and lessees that rent boxes and facilities for enjoyment by future generations. all kinds of events. The club’s individual clients are those that purchase a ticket for any of the 2.1.10 The media sporting events that we organise, a ticket to visit our facilities and exhibitions or buy the products The club is aware of the interest it attracts from with our brand. society and public opinion. The club is aware that social media fulfills an essential role and is 2.1.7 Fans committed to it as a relevant stakeholder.

The fans are those that support our teams in the various competitions in which we participate. Real Madrid is a club that is open to everyone. Among the fans, of particular interest for Real Madrid are the Fan Clubs and other followers who have a direct relationship with the club through the Madridistas Loyalty Programme.

14 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 CORPORATE SOCIAL RESPONSIBILITY AT REAL MADRID 15 2.2 Real Madrid’s commitments 2.2.4 Sporting and public administrations to its stakeholders Real Madrid promises sporting administrations 2.2.1 Members that it will adhere strictly to the principles of fair play, institutional cooperation, respect Real Madrid celebrates winning their Real Madrid promises its members that it will for authority and participation in all sports 34th League title. maintain and foster the club’s values, fulfil organisation authorities. With regards the strictest standards of good corporate to public administrations, Real Madrid’s governance and transparency, encourage commitment is to fulfil its fiscal, social, good members’ participation through the means corporate governance and transparency and established in the statutes and, above all, strive environmental obligations, working closely with. The club also commits to maintaining a 2.2.9 Society AND THE ENVIRONMENT constantly for sporting achievements. The club with authorities on community projects and close relationship with the Real Madrid fans commits to maintaining healthy finances with especially with respect to order and security at clubs set up around the world, in their shared Real Madrid wants to contribute to the social on-going supervision in a transparent process the sporting events we organise. objective of defending the Real Madrid colours and economic development of its surrounding of auditory systems and controls under the and supporting the entity. area, with sport as a vehicle to create value. That general principle of continuous and systematic 2.2.5 Other clubs is why it is committed to quality employment accountability. based on values such as multiculturalism, As a sports competitor, Real Madrid upholds sustainability and teamwork. 2.2.2 Athletes fair play, competitive spirit and respect in all 2.2.8 Suppliers its performances, and participates in common Moreover, the club channels this social Real Madrid promises athletes and referees that initiatives and projects for good causes. Real Madrid is firmly committed to developing commitment through the activity undertaken it will embrace the sporting values of fair play, responsible procurement policies that include by the Real Madrid Foundation, especially respect and competition. The club maintains 2.2.6 Clients suppliers in compliance with applicable in the creation and management of adapted the on-going commitment with its players of all standards of human rights, ethics and and inclusive social sports schools, as well levels to develop the academy, foster athletes’ Real Madrid promises its clients that it will environmental care. as its support of charity initiatives, dedicated physical well-being, adhere strictly to their maintain and promote high standards in quality in particular to vulnerable children, boys and contracts, maintain competitiveness in order and innovation, promote customer satisfaction The policy overseeing supplier selection girls, and the promotion of values such as to aspire to the highest sporting achievements, and maintain professional processes of claims and the assigning of orders and contracts is respect, motivation for self-improvement, offer the athletes good facilities, excellent management and the assessment on on-going based on the principles of professional ethics, gender equality and the solidarity of teamwork. coaching professionals and visibility through improvement of its services. advertising and competition and is carried out media presence. These commitments extend in a transparent, fair and responsible manner Children and groups at risk of social exclusion to those who have left professional competitive 2.2.7 Fans under the supervision of the Procurement are the main beneficiaries of its activity, sport at the club and belong to its Veterans Committee. Collaborative relationships are for which it has the support of all the club's Association. Real Madrid promises all sports fans that it established with suppliers, avoiding payment departments and especially of active athletes adheres fully to the principles of competition conditions that put their solvency at risk. and Real Madrid veterans. 2.2.3 Employees based on fair play, always making the best Communication channels are set up that favour effort to promote sporting values, information transparent commercial relations and the 2.2.10 The media Real Madrid aspires to be an excellent place transparency, respect and maximum safety in understanding of mutual needs. The purpose to work, offering its workers permanent paid the events it organises. Real Madrid maintains of this procurement policy is to comply with Real Madrid responsible undertakes a employment at market conditions, adherence a closer relationship with those fans signed the club’s objectives, in accordance with relationship of collaboration based on the to the strictest principles of equality and up to the Madridista programme, offering established rules and procedures. professionalism and reporting transparency the promotion of diversity, opportunities to them first-hand information, advantages in with the social Media, notwithstanding its reconcile their professional and personal lives, purchasing the club’s products and services Furthermore, purchasing from local suppliers compliance with data and information protection training opportunities and emphasis on work as well as various promotions with recreation is encouraged as far as is possible, fostering regulations and the recognition of the important health and safety. companies Real Madrid has agreements the creation of wealth in the surroundings. work carried out by media organisations.

16 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 CORPORATE SOCIAL RESPONSIBILITY AT REAL MADRID 17 3. 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT

3.1 Members 3.1.1. Institutional Acts with members The membership of Real Madrid is made up of Florentino Pérez giving a speech during the a total 92,729 members, of which 64,991 are Ordinary and Extraordinary General ceremony to present the 2019 insignias. adults, 18,697 junior members and 9,041 are Assembly of Delegate Members: persons aged more than 65 or with more than 50 years of membership. Of these members The Ordinary and Extraordinary General 72,867 are men and 19,862 are women. Assemblies were held on 15 September 2019 and included approval of the following: The club president, Florentino Pérez, presided 3.1.2. Activities relating to corporate The number of football season ticket holders over the event, together with the Honorary governance and transparency is 60,909, all of whom are members, and the • The Budget, Annual Report, Balance Sheet President, Francisco Gento López and number of basketball season ticket holders is and Profit and Loss Accounts of Real Madrid representatives of the Board of Directors, all Real Madrid is firmly committed to the highest 7,316, of whom 3,850 are members, 1,778 are C.F., as well as the Annual Consolidated accompanied by the club’s living legends. and most demanding standards of good Madridista card holders and 1,688 are from the Accounts with companies in which the club corporate governance and transparency. general public. has a holding, all the above corresponding to Year 2018-2019. Election of Delegate Members The Board of Directors is the highest supervisory The delegate members are those that make up in General Assemblies authority with regard to these policies and is the General Assembly, which is the supreme • Consolidated budget of Revenue and directly responsible for the administration, governing body of the club. This currently Expenses and the Activities Report for the On 17 February the beginning of the process governance, management and representation comprises 2,073 members, among them the Year 2019-20. for electing delegate members for the period of the club. The Board of Directors held eight Board of Directors, honorary members and the 1 July 2020 to 30 June 2024 was announced. meetings during the 2019-20 season. first hundred members of the club. • Taxable base of membership fees for the 2020-21 season. The members included in the census are all Within the framework of the corporate governance The Membership Disciplinary Commission is those over 18 years of age, with full capacity and to allow the Board of Directors to carry out elected by the General Assembly of Members, to act and at least one year of uninterrupted its functions, the Club has formed Executive, in response to proposals by the Board and is Extraordinary General Assembly membership of Real Madrid as of 31 March Procurement and Financial Committees on which in charge of studying and qualifying any acts of Delegate Members: 2020. members of the board and club executives sit. committed by club members or attitudes adopted by them that are reported and referred to it for The proposed merger by absorption, effective On 12 March the Real Madrid’s Electoral The Executive Committee holds several monthly consideration. The Commission meets once a 1 July 2020, of the Club Deportivo Tacón, by Board, decided, in view of the health crisis meetings, depending on the matters to be week to study and decide on matters inherent to Real Madrid Football Club. caused by COVID-19, to temporarily suspend discussed, and its chief role is to make decisions its functions. In the 2019-2020 season, until 12 said process. concerning the implementation of the policies March, 155 disciplinary proceedings were initiated defined by the Board of Directors. and 182 proceedings are pending ratification. Awarding of insignias On 3 and 4 October at the offices of Real The Real Madrid C.F. Membership Disciplinary Madrid City, the club held the election of The Financial Committee held seven meetings Regulation, which came into force on 7 December On 16 November 2019, a ceremony was held to delegate members for the period 1 July 2020 over the season. Its purpose is to monitor 2017, is available to members in the Members award insignias to club members of 25, 50 and to 30 June 2024. In total, 1,955 delegate progress over the financial year, introduce Area - Membership Disciplinary Commission - 60 years. A total 2,930 insignias were awarded, members have been elected, 28 for every corrective measures, review partial closures of New Membership Disciplinary Regulation on the of which 127 were gold and diamond, 337 gold thousand members, except for the remaining accounts and update year-on-year forecasts of club’s website www.realmadrid.com. and 2,466 silver. fraction made up of 23. compliance with the club’s annual budget.

18 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 19 The Procurement Committee, which held With respect to institutional cybersecurity, in the seven meetings this season, is responsible for 2019-2020 season, the Cybersecurity Committee supervising, and if necessary, approving the held regular meetings and a high level of activity purchase of high-value goods and services or in threat surveillance, monitoring of computer of any that, due to their characteristics, are security incidents and neutralizing attacks, considered to require review at an organisational following the guidelines of the club’s Corporate level. Security Governance Plan. Its lines of action COVID-19: The Santiago Bernabéu became included the acquisition and commissioning of a supply and distribution centre for medical The oversight function is underpinned by the new computer security tools, the replacement of supplies. work of the Internal Audit department, which has software and information processing procedures produced a Procedures Manual which currently with more secure ones, information and internal has 55 internal procedures defining how the communication campaigns aimed at users of club should operate in regard to its key internal our computer systems and employee training processes. Compliance with these procedures is and awareness programmes to ensure strict The COVID-19 crisis led to a significant loss of club’s data protection office has continued to ensured by the supervision carried out by Internal compliance with the security protocols that income for the club in the 2019-2020 financial make a huge effort to adapt to the new European Auditing, which every season draws up an audit guarantee the integrity of the information and year ended 30 June 2020. After the contingency regulation, and to internal communication about plan contemplating the work to be performed the protection of our computer systems. These measures adopted to mitigate this impact, the the issue, building awareness among our staff to during the season. Specifically, during the 2019- training programmes were accompanied by club ended the 2019-2020 financial year with ensure strict compliance. 2020 season the following processes were internal audit, control and surveillance actions a balanced financial result (€0.3 million), thus audited: collaboration agreements with other to prevent and block internal vulnerabilities, and maintaining the positive results achieved in the The training programmes on integrity, good football and basketball clubs, corporate identity to enable the early warning of computer risks last 20 years that have allowed it to accumulate practice and the prevention of fraud in sports manual, sponsorship and VIP area contracts, based on the continuous monitoring of the use a net equity of €533 million as of 30 June 2020. competition have been ongoing, in partnership service contracts, sportswear warehousing and of our systems. Also, as of 30 June 2020, the club has cash and with the Professional Football League, as have the travel and expense payments. cash equivalents of worth €125 million (excluding internal communication and awareness building Regarding the protection of the data, the Data the cash set aside for the stadium remodelling campaigns among the various staff departments In addition to the foregoing, Internal Auditing Protection Office this past season continued project) and unused long-term credit facilities for and players at the club regarding issues such as carried out other tasks in this season, such with its responsibility to ensure compliance an amount of € 328 million. As a result, the club equality, the fight against doping, sports betting as producing reports required by different with the new data protection regulations, has the necessary means to fulfil its payment and corruption in sport, data protection, the fight club divisions, controlling late payments carrying out the monitoring, maintenance and obligations in a context of economic difficulty against harassment and cybersecurity. and taking the relevant actions, proposing continuous improvement tasks of the new that is likely to endure for several months. new information systems to facilitate the data protection regulations (European Data With respect to continuous compliance with the management of the different processes, as Protection Regulation). The annual accounts of the club for the 2019- Transparency Act, during the season the club well as special reports relating to internal 2020 season were audited externally by the continued to permanently review and update its organisation, the code of ethics, etc. The Compliance with standards of good governance firm E&Y and its report, with no qualifications, is transparency website to enable accountability Internal Auditing department also actively is also evident in all stages of the budget cycle, attached to the club’s Financial Statements for in the most sensitive areas of public scrutiny, collaborated with the Compliance Department from its preparation based on guidelines laid the year. Once approved by the Board, the annual as determined by the Transparency Act and the in the continuous monitoring and supervision down by the Board of Directors and with all accounts of the club are subjected to scrutiny and strictest international standards. The website of the Crime Prevention Model (Criminal Risk the management teams involved in its drafting, final approval by the General Assembly Meeting. provides extensive and detailed economic Management System), through participation through to its approval by the Delegate Members and financial information, as well as data on in the internal and external audits of the Meeting at the proposal of the Board. It also This 2019-2020 season we have continued with contracts, remuneration, ethical commitments SGRP, in order to renew certification in the includes its subsequent follow-up, the detection of the training and awareness-raising in matters and values and management and services, UNE 19601:2017 standard, obtained in any deviation from the budget and its correction, of good governance and transparency among going much further than the legal provisions February 2017, and through the performance which the management team concerned all our staff. New legislation has continued to and requirements. This commitment to of specific audits regarding the training and undertakes to do under the supervision of the increase standards of compliance, particularly transparency is endorsed, with the publication awareness of club employees on this matter. Executive and Financial Committees. in regard to personal data protection, where the in the Transparency Portal of all the International

20 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 21 The Online Office currently has permanent In the 2019-2020 season, 25,640 calls have been procedures for members to modify their personal answered. details (address, telephone, e-mail, etc.), check their direct debit details and change them if they Exclusive e-newsletters for members wish, change their PIN code or access seat Weekly electronic magazine for Real Madrid assignments, as well as temporary procedures, members, offering the latest news on the club, such as those set up to apply for funding of exclusive videos, ticket sales dates, etc. More Member Services Office in annual passes and membership fees for the than 80,000 members currently receive the Real Madrid City. 2019-2020 season, and request tickets for electronic newsletter by e-mail, resulting in a Champions League and Copa del Rey games. total volume of 2,085,000 newsletters sent. Temporary measures also included changing of the type of season pass or temporarily ceasing Member notifications Transparency indicators required by the INFUT, Likewise, more than 4,000 calls were made payment of club fees. As a supplement to the e-newsletter and taking for which Real Madrid obtained the highest to member delegates and others in relation to advantage of new technologies, the Members score in the last audit for all first and second different events, such as the presentation of Real Madrid City Department also sends notifications to members division clubs. insignia, signings, etc. All Real Madrid members and fans can visit the by e-mail, the frequency of which depends on the Real Madrid City facilities, upon request. In the information needs of the club and its members. Services for delegate members are provided 2019-2020 season, until 12 March, it was visited During the 2019-2020 season, more than 3.1.3. Member services exclusively from the office in Real Madrid City. by more than 1,994 people. 5,000,000 e-mails were sent with information and information The timetable in this case is from Monday to of great use and interest to members, making Thursday from 10:00 a.m. to 2:00 p.m. and from Player autograph sessions communications between the club and its Member Services Office 4:00 p.m. to 7:00 p.m., and Fridays from 10:00 As in past seasons, at every game played outside members faster, more agile and efficient. We, The new Member Services Office is located in a.m. to 2:00 p.m. of Madrid, player autograph sessions have been therefore, wish to encourage all Real Madrid Real Madrid City and has provided services to organised and local supporters’ club members members who haven’t already done so, to send the club’s members since 4 September 2018. The Also, delegates and members of the 100 Club, invited in the cities where the team plays. their e-mail address to the club, which they can entrance is on Avenida de las Fuerzas Armadas, made up of our 100 most senior members, receive do through a quick and simple step at “https:// 402. It can be reached by public transport on the personalised service and special privileges in Ticket incident office socios.realmadrid.com”, by registering their local train (Valdebebas stop) or on EMT buses appreciation for their loyalty and service to the This service is provided on match days, mainly to membership number and PIN code using the 171 and 174. club. assist members who have forgotten or lost their option “Change my personal data”. season ticket or had it stolen. Once the member The Member Services Office is open from Online Members Services Office has been duly identified, the ticket assigned to SMS messages Monday to Friday from 9:00 a.m. to 7:00 p.m. The Online Member Services Office (https:// the season ticket is issued. In the 2019-2020 During the 2019-2020 season, the club sent continuously, both at the new offices in Real socios.realmadrid.com) is the website where season, until 1 March (Real Madrid-Barcelona), SMS messages to mobiles with the latest club Madrid City and at the Santiago Bernabéu members can make queries and conduct 3,770 incidents were resolved for members at news relating to ticket sale dates, assignment of stadium. transactions related to their membership without the ticket incident office. seats and other relevant information. A total of having to visit the club’s offices, at any time 331,498 SMS messages were sent. The Member Services Office received more than and with guarantee of complete security and Member Hotline 91 344 54 45 7,000 visits before its temporary closure on March confidentiality. Exclusive hotline for members. Accessing it Hala Madrid Hala Madrid 12 due to the COVID-19 pandemic, after which requires prior identification with membership Sent to all members on a quarterly basis, inquiries and procedures were carried out through During the 2019-2020 season, the online office number and PIN code. You can also containing the latest club news. the online Member Services Office. More than recorded more than 500,488 visits by members, communicate with the club from anywhere 10,000 phone calls were answered. Moreover, who were able to deal with their membership in the world, dialing 0034 91 344 54 45, through the official e-mail of the Member Services matters in a convenient way. To date, the office without any restriction on the part of any Office, there were more than 20,000 requests for has been visited more than 2,861,599 times telephone company. The 902 21 2002 member information and different issues resolved. since it was launched in March 2011. hotline is also still available.

22 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 23 3.2 Players The Academy The health emergency had a significant impact on Football the academy teams, with the sudden resolution of all competitions for the 13 teams that make In the League, Real Madrid got off to a good up La Fábrica. Castilla improved as the season start with eight consecutive unbeaten matches progressed and finished seventh after only 28 and playing very solidly from the start, reflected games played. A very young team that started the in a second streak of 15 straight games without championship with nine players from the Under defeat that took them to the top of the standings. 18 A team of the previous season. A reflection of Before the suspension of the competition, the evolution of the team were the six undefeated the team was two points behind the leaders games from the last seven played. and after the restart, it showed its best form. With a very demanding schedule of matches, The Under-18 A team were crowned champions the team was unplayable and went on a run of of the UEFA Youth League for the first time in 10 consecutive wins and a draw to proclaim history. The team, led by Raúl in the final phase themselves champions with one match to play. in Nyon, had a sensational competition. In the The Under-18 A team, winners of the 2019-20 An award for the consistency of what was the final they beat Benfica 2-3. UEFA Youth League best team in the championship, as the numbers clearly reflect: only 3 defeats in 38 matches to The Under-18 A team was declared champion also finish as the team with the least number of of Group V of the Division of Honour by the goals conceded in the First Division. Competition Judge of the Royal Spanish The Under-10 A and Under-8 teams were also Forming part of the agreement between the Football Federation (RFEF). With 5 games declared champions in their respective groups club and Sanitas, in the 2019-2020 season, The Spanish Super Cup was played in Saudi left to play, the team was dominating the in Football 7. medical treatments have been provided to Arabia under a new format. Atlético de Madrid, competition with 21 wins, three draws and injured players at Valdebebas, and the medical- Barcelona, Valencia and Real Madrid played only one defeat, four points ahead of Atlético Meanwhile, we must make a special mention of sports assessment programme has continued a final four which was more attractive for the de Madrid. It had also scored the most goals in the Under-14 B team, champion of the LaLiga with nearly 500 players undergoing check-ups. spectator, but at the same time more difficult to the group with 83. Promises International Tournament for the In addition to all the above, a multi-disciplinary win. Valencia was the team’s first rival in a semi- second consecutive year, and the Under-18 service offers weekly physiotherapy sessions final in which Real Madrid played brilliantly An unfinished season in which the team could B and Under-16 A teams, champions of the and works together with the Psychology and won 1-3, including a goal straight from a not play in the Copa de Campeones or the Bali International Tournament and Al Kass and Nutrition departments, the physical re- corner by Kroos. Atlético de Madrid awaited in Copa del Rey. International Tournament (Qatar), respectively. adaptation and physical therapy teams to the final. The match, very even, was decided ensure the players are fully fit and remain in on penalties after a 0-0 score line at the end of The Under-18 B and Under-18 C teams were During this season, 72 different players have peak condition. extra time. And as happened in the Milan final, also declared champions of their respective been added to the different lower categories Real Madrid was better in the penalty shootout competitions since they were in the first place of the club, of which 12 correspond to the As part of the return to competition after (4-1) and lifted its eleventh Spanish Super Cup. at the time of the suspension, with more points Under-8 team. lockdown, in the medical field all the necessary in the same number of games as the rest of preventive measures were carried out, as well In the Champions League, Real Madrid finished the teams. The Under-16 A team’s situation Through its policy of cooperation with other as the necessary screening to guarantee the second in Group A and lost in the round of 16 was different. It was also declared champion clubs, Real Madrid continues to promote the health and safety of our workers. to Manchester City. The Copa del Rey was because of a better coefficient, since not all development of sport. The club has now signed Continuing with the dynamics of last season, also played under a new format. In this edition, the teams in the group had played the same cooperation agreements 30 other clubs. nutritional education has been imparted all the qualifying rounds, with the exception of number of games. through training courses for the players and the semi-finals, were played over single legs. Now, in its seventh year, the Academy residence their family circles. Likewise, strategies have The team made it through the first two rounds, The Under-16 B, Under-12 A and Under-12 at Real Madrid City has housed 76 players, 58 been specifically designed for times when but was unable to reach the semi-finals after B teams were proclaimed champions having in football and 18 in basketball, who use all the they face more intense periods of competition losing to Real Sociedad in the quarter-finals. come top in their respective groups. site’s facilities every day. and work has been done along the same

24 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 25 lines to optimise the different meals prepared In the Second Division, 56 players from Real The team were once again proclaimed winners of three wins and two losses was not enough in the academy residence. Additionally, the Madrid’s Youth Academy played for 19 clubs: of the Copa del Rey, held this time in Malaga. to qualify for the semi-finals. body composition of all the players has been Huesca (5), Fuenlabrada (5), Tenerife (5), Lugo After defeating RETAbet Bilbao 93-83 in the continuously tracked during the course of the (5), Albacete (4), Racing de Santander (4), quarter-finals, they beat Valencia Basket 91-68 Real Madrid ended the season with two season, and the medical staff and technical Cádiz (3), Almería (3), Rayo Vallecano (3), Las in the semi-finals and Unicaja 68-95 in the final. trophies: The Endesa Super Cup and the teams have developed specific coordinated Palmas (3), Málaga (3), Numancia (3), Girona In this way, the team won its 28th title in this Copa del Rey. As a result, several players won nutrition plans for the entire team. (2), Alcorcón (2), Oviedo (2), Zaragoza (1), competition. Facundo Campazzo was awarded individual awards: Elche (1), Mirandés (1) and Ponferradina (1). MVP in the Copa del Rey Malaga 2020. Along the same lines as the above, the Sports - Facundo Campazzo was voted MVP of the Psychology Department, in its third season of In addition, outside Spain, 77 players trained In the EuroLeague, which was suspended due to Endesa Super Cup. He was also named MVP operation, developed its own unified working at our youth academy played for teams in the coronavirus pandemic, Real Madrid played of the Copa del Rey in Malaga and chosen in methodology that responds to the needs and foreign leagues. their last game on March 5, against Villeurbanne. the All-Liga Endesa Team. demands of the academy, in line with the The 87-78 victory, the seventh, in a row, put the characteristics of the club.. The psychological There has been a noteworthy presence of team in second in the table with 22 wins and six - Walter Tavares was chosen in the All-Liga actions it carries out are focused on the Academy players in several national teams, losses, and already qualified for the playoffs. Endesa Second Team. demands and needs of coaches, players, contributing the following number of players medical area, nutritional area and requests to: Under-20s (3), Under-19s (11), Under-18s In the Endesa League, Real Madrid was in the - Usman Garuba was chosen in the Best Young by relatives of the youngest players. New this (5), Under-17s (6), Under-16s (6) and Under- second place in the Regular Season when the Players Team, as was Carlos Alocén, on loan season were the training workshops offered 15s (7). We also contributed players from our competition was suspended in March 2020 to Casademont Zaragoza. to coaches, which obtained very positive Academy to other national teams, including with a record of 18 wins and 5 defeats. evaluations from the attendees, leading to an France and Iceland. New Signings increase in requests for this service. Finally, In the Final Phase of the Endesa League, which This season, Real Madrid acquired the rights as a result of the pandemic, psychological The Spanish team was a quarter-finalist in marked the resumption of the competition, to three players for the first team. Nicolás support was offered to all the club's workers the Under-17s World cup in Brazil, with an Real Madrid were drawn in group B together Laprovittola, Jordan Mickey and Salah Mejri. during lockdown. outstanding performance by three of our youth with Herbalife Gran Canaria, San Pablo Homegrown players Usman Garuba and Mario academy members. We should also mention Burgos, Valencia Basket, MoraBanc Andorra Nakic joined the first squad after being part of With the aim of promoting fair play and the fight the star performances of players such as and Casademont Zaragoza. The overall result the EBA team last season. against all types of fraud, Real Madrid delivered Martin Ødegaard, Óscar Rodríguez and Borja the Guardia Civil, LFP and UEFA courses on Mayoral as examples of footballers who have integrity, anti-doping rules, the responsible use completed their development in other major of video games, sports betting and the use of league teams. social media to its Academy and related staff. Also, posters and brochures by the National Basketball Sports Council and the League were printed supporting football without violence and with Real Madrid started 2019-2020 with five fair play. pre-season friendly matches, two in the 9th Costa del Sol Tournament, another two in the Players from Real Madrid’s Liberbank Ciudad de Oviedo Tournament and Youth Academy a last match at the José Luis Abós Memorial In the 2019-20 season, there were 103 against Casademont Zaragoza. players trained by the Real Madrid Academy playing in the First and Second Division of The Madrid team won its first title of the season the League. Of these, 47 played in the First in the WiZink Center in Madrid, winning the Division, belonging to 16 clubs: Real Madrid Endesa Super Cup, the sixth in its history. (7), Espanyol (6), At. Madrid (5), Alavés (5), The team coached by Pablo Laso beat the Valencia (4), Real Sociedad (3), Granada (3), hosts, Monbus Obradoiro, in the semi-finals Getafe (2), Valladolid (2), Levante (2), Leganés by 116-61 and Barcelona in the final by 89-79. Real Madrid, winners (2), Mallorca (2), Sevilla (1), Betis (1), Osasuna Facundo Campazzo was chosen MVP of the of the Copa del Rey in basketball. (1) and Éibar (1). tournament.

26 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 27 The Academy The Under-16 B and Under-14 B teams reached Rights to 19 players were acquired in the their objectives established at the beginning of Academy, distributed as follows: 11 players in the season. the Under-14 B, 2 in the Under-14 A, 4 in the Under-16 B and 2 in the Under-16 A. The Under-16 B team was top of Group C of the Second Silver phase in the Under-16 Male The basketball second team, who played in Special category of Madrid with 9 wins and no Football and basketball academy players, at the the EBA League, were third in Group B of the defeats at the time all FBM competitions were Real Madrid City academy residence. regular season after 17 wins and 6 defeats suspended. before the season was suspended due to the coronavirus pandemic. The Under-14 B team, meanwhile, was top 3.3 Employees players, coaches, employees and visitors to Real of group C of the Second Silver Phase in the Madrid City. Real Madrid City was immediately The Junior team won the Adidas Next Under-14 Male Special category, with a run of The Real Madrid employees are persons on which evacuated, with all sports and corporate activities Generation tournament in Munich the third 8 wins and only one defeat. the club focuses special attention. With regard suspends and the facilities closed. consecutive year, and was top of group A of the to the management of its human resources, in Second Gold Phase in the Junior Male Special Players from Real Madrid’s Youth Academy line with international standards of corporate The club's employees began remotely working category of Madrid, with a run of 9 wins and no In the 2019-2020 season, 15 homegrown social responsibility and sustainability, Real from their homes that same day, taking defeats, when the competition was cancelled. academy players played in teams in Spanish Madrid applies not only the main principles of advantage of all the measures taken over basketball's leading competition, the Endesa the relevant employment regulations, but also recent years to ensure that they have effective Juan Núñez was named MVP of the Adidas League. the recommendations and rights declarations contingency plans in the event of not being able Next Generation in Munich. Along with Núñez, of key international organisations. to access the club's facilities. These measures John Eli Ndiaye was included in the all-star In addition, 19 players from the Real Madrid include the availability of flexible and secure team of the tournament. Academy were chosen to play for their national Real Madrid understands the pivotal role that its information and communication systems, teams, broken down as follows: Senior National employees play in ensuring the reliability of its as well as a staff of trained employees and Before the suspension of the season, the team (1); Under-18s (5); Under-17s (1); Under- operations and the quality of its management, experts in the use of these technical means. Under-16 A team was top of group A of the 16s (7); and Under-15s (5). both of which are unanimously acknowledged Additionally, collective bargaining agreements Second Gold Phase in the Under-16 Male across the entire sports industry. It therefore between the club and workers’ legal Special category of Madrid, with a run of 8 In the 2019-2020 season, the Real Madrid pursues a division of labour and role specialisation representatives had already ensured significant wins and no defeats. academy maintained its collaboration policy while also applying stringent principles of progress in terms of remote working, digital agreement with Basket Veritas Pozuelo, while efficiency, productivity and good administration disconnection and functional and working-day The Under-14 A team was proclaimed runner- also establishing a relationship in the Under-12 in the management of its staff. flexibility measures, so the transition from on- up in the Mini Cup and was top of group A of category with Alcorcón Basket, Baloncesto site working to remote working from home was the Second Gold Phase in the Under-14 Male Alcobendas, Distrito Olímpico and Uros de In the 2019-2020 season, the club's human immediate, without the least impact on the Special category of Madrid, with a run of 10 Rivas C.D.E. resources management has also been greatly club's activities for this reason. wins and no defeats. affected and conditioned by the COVID-19 During the season, the club awarded pandemic, the measures taken by the authorities The contingency plans that had been designed The coronavirus pandemic caused the scholarships to 18 players from other regions to deal with it and the resulting new labour and implemented to respond to any type of suspension of all competitions organised by and countries. All of them were offered boarding regulations. catastrophe that might prevent the normal both the FBM and the FEB. Therefore, this in the Real City Madrid and schooling in the access of employees to their workplace in season the junior, under-16 and under-14 SEK, one of the most prestigious academic On 10 March, before the declaration of a state the club's facilities, such as fires, floods, final phases of the Community of Madrid centres in Spain. of alarm by the nation's government, Real earthquakes, episode of high pollution, or championship were not played, nor were the Madrid detected a case of COVID-19 in its weather phenomena have finally been put to usual Spanish club championships in these The agreement that the club maintains with squad professional athletes, and that same day the test by the pandemic, and have proven to categories. Sanitas has progressed satisfactorily. it took drastic measures to preserve the health of run perfectly without interruptions.

28 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 29 Collective bargaining has been ongoing and the organisers of the competitions, and throughout the duration of the state of alarm. implemented at the club level by our medical The club’s senior management has been in and risk prevention departments. constant contact with the legal representatives Real Madrid City’s new of the workers, who have always offered In the rest of the club's areas, the protocol corporate office building. their support to tackle such an extraordinary approved by our Occupational Health and situation. This collaboration has also resulted Safety Committee, made up of personnel in the implementation of health measures specialised in risk prevention and by members included in the protocols for the return to of the Workers’ Committee, has been applied During the following 103 days, the club's staff the football and basketball first teams, the activity in the club's work centres and for the to allow workers to return to our work centres. behaved in an exemplary manner enabling same for Real Madrid Castilla, and those of return to competition of the club's football The tests carried out on the staff upon their Real Madrid to fulfil its commitments and the the executive directors. Finally, solidarity with and basketball first teams. It has also led to return to our work centres detected no active administrative functioning of all its operations, the whole of Spanish society by managing an agreement with the representatives of Real case of COVID-19, and 5% of the workforce maintaining communication with our the economic effects of the pandemic in the Madrid’s seasonal employees to manage were shown to have antibodies as a result of stakeholders and preserving all the capabilities club through internal agreements, without labour relations with them during the state past contact with the virus, in line with the of the club in readiness for the immediate restart needing to resort to public money through of alarm and beyond for as long as the ban average for the general Spanish population. of its activities as soon as possible. Only the the permitted legal mechanisms for reducing on spectators during matches lasts, which basic security and facility maintenance services Social Security contributions or the need for prevents them from carrying out their usual In the coming months these tests will were carried out on site, within the limits of the employees to claim unemployment insurance. work which is limited to match days due to the be repeated periodically to monitor the lockdown decreed during the state of alarm. The club has at no time taken advantage of the nature of their duties. epidemiological situation in the club, which extraordinary measures of any kind established maintains the strictest preventive measures to The economic impact of the pandemic and the by the authorities to apply for the Temporary We would also like to acknowledge the prevent the risk of infection. paralysis of activities due to the declaration Redundancy Regulation Scheme. tremendous sense of responsibility shown in of the state of alarm and the lockdown of the these difficult circumstances by all the legal Despite the huge impact of the pandemic population was addressed in the club with Despite the seriousness and urgency of the representatives of the club's workers and during the 2019-2020 season, Real Madrid a tremendous sense of responsibility. The situation, the club has at all times believed it by the many unions to which they belong, has continued with its Corporate Social response to the reduction in economic income necessary to maintain its human resources including CSIF, UGT and CC.OO. Responsibility and important steps have been resulting from the suspension of all sports policy based fundamentally on continuous taken in our sustainability strategy. Two crucial competitions and the closure of facilities was collective bargaining with the workers' legal All these individual and collective agreements steps in this strategy have been the creation based on the highest principles of corporate representatives. Faithful to this policy, while to reduce personnel expenses in the 2019- of the position of head of Corporate Social social responsibility. individual agreements were reached with each 2020 season have meant that Real Madrid Responsibility at the club, to coordinate all and every one of the people affected by the has been able to ensure employment for all its activities of this nature and give it greater These principles consisted in the application salary reduction, this was endorsed by the workers remain and maintain the remuneration impetus in all Real Madrid’s activities and areas; of measures to reduce personnel costs based collective agreement reached with all the of other groups of club employees, despite the and the club's adhesion to the United Nations on voluntariness, proportionality, progressivity workers' legal representatives, in a context impact of the pandemic on the sporting activity Global Compact for achieving the Sustainable and solidarity with the whole of Spanish society. of unity and solidarity worthy of the highest that constitutes our corporate purpose. Development Goals (SDG). Real Madrid is the Voluntariness in the signing of individual praise. first football club to join this global initiative agreements to reduce wages with all the The health crisis generated by the pandemic and at the highest level of commitment people affected by it, without resorting to legal Especially deserving of recognition and has also been reflected in an increase in (participant). The Global Compact consists mechanisms that could imply the application of gratitude is the generosity, solidarity and love occupational risk prevention activity in the of 10 principles focusing on human rights, unilateral measures. Proportionality in linking of the club shown by players, coaches and 2019-2020 season. Very strict prevention workers' rights, environmental issues and the the salary reduction percentage to the impact directors affected by the salary reduction, who protocols have been implemented in the club fight against corruption. Of the 10 principles, of the crisis on the club's economy contingent in an unprecedented example of responsibility which, at the time of writing, are yielding very 4 correspond to working conditions. This is on the resumption of the sports competitions. have renounced a significant part of their annual encouraging results. The return to competition the largest category and ensures the Global Progressivity in limiting the salary reduction salaries to help balance the club's accounts for the football and basketball first time has Compact is heavily focused on employment, to those in the club with the highest salaries, during one of the most difficult situations faced been carried out under strict security measures implying a very firm commitment by the specifically those of players and coaches of by our institution in its entire history. defined and supervised by the sports authorities organisation to its obligations as an employer.

30 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 31 Another milestone in the 2019-2020 season focused on the COVID-19 pandemic. However, is regarding the club’s labour relations, a this was not the only activity in our ORP area, basic pillar of our personnel policy. This which has carried out other large-scale projects, season the club has voluntarily submitted such as conducting a survey of psychosocial to rigorous scrutiny on this matter by the risks among all staff and the acquisition prestigious Institute for Transparent Labour and implementation of a tool for continuous Banner at the Alfredo Di Stéfano stadium in Relations, created by important personalities monitoring of the level of commitment that memory of those who have died from COVID-19. with extensive experience in the judiciary, the exists in the workforce. This tool (Peakon) is executive branch, business organizsations at the cutting edge of this field, and allows and trade unions. As a result of this evaluation, us to take full advantage of digitalization to Real Madrid was awarded the highest degree intensively apply technology to assessing staff Training in integrity and compliance has also In addition, controlling personnel costs and of excellence in the transparency of its motivation and to detect opportunities for been intensified, following both the club's policy a policy of austerity in relation to company labour relations. This certification can only improvement in people management. based on its values and the recommendations perks, payments in kind and non-salary be obtained with the closest collaboration of the regulators and organisers of the fringe benefits have contributed to our between the management and the workers’ In line with the digital transformation competitions in which our teams participate, excellent results in financial terms and to legal representatives, as has been the case in process that the club is undergoing, it is who are increasingly placing greater emphasis our compliance with the financial fair play the club. also worth highlighting the introduction in on all aspects related to ethics and regulatory regulations in sport, while maintaining our the 2019-2020 season of Slack, a team compliance. The fight against corruption proven ability to attract and retain talent This recognition of transparency by an communication tool to provide greater fluidity in all its forms is one of the 10 principles of so we have the human capital necessary to independent external organisation is in addition to internal communications and information the United Nations Global Compact to which maintain high productivity and management to those granted repeatedly by Transparency management in collaborative environments. Real Madrid has adhered this season, and our leadership in our sector. International, the non-governmental Slack is one of the innovations introduced by training programmes have focused heavily on organisation that drafts, among other things, the Transformation Department to take full this, in line with the requirements of our criminal During the 2019-2020 season, Real Madrid the INFUT Transparency Index of football clubs, advantage of digitalization and technology in risk management model, the club's code of had an average staff of 797 contributors to in which Real Madrid obtained the highest all the club's work processes. ethics and the annual external audit process the social security system, of which 368 were possible score (100 points) in its 2020 edition. to which the club submits its compliance with athletes. 39.23% of the club’s CBA employees In collaboration with the Transformation the provisions of the management model. This are female (162 women and 251 men in total) Equality and diversity also constitute a Department, a very ambitious training project season, the onboarding programme for new of which 81 hold positions of responsibility. Of fundamental pillar of people management has also been carried out to provide the employees has been redesigned, to ensure that the club’s employees, 0.24% have temporary at Real Madrid. Other milestones during the workforce with a solid knowledge base on up-to-date regulatory compliance is included contracts and 99.76% indefinite-term 2019-2020 season include the launch of digital transformation. This training programme in the initial training that all employees receive contracts. the club's women's football section and the consisted of a prior evaluation of digital upon arrival at the club. continued work of the Equality Committee. knowledge to form homogeneous groups, The non-athlete staff members include workers This committee met five times, with the most followed by six training sessions several weeks All this has been an especially difficult of eighteen different nationalities, which gives significant results being the drafting and apart in which a digital innovation programme challenge for the entire workforce during this an idea of the internationalization of the club’s signing of the Protocol against Harassment was developed using Agile methodology. atypical season, also bearing in mind the activities. During the season, 10 female and and Discrimination at Work, and the delivery of In total, each employee received 46 hours fact that the club has maintained excellent 14 male employees took maternity/paternity the first Training courses on Gender Equality of classroom training and also dedicated a productivity and efficiency ratios per employee, leave. One employee took leave of absence aimed at all employees and especially those significant effort to applying what they learned based on a small workforce with high levels of to care for an under-age child or dependent responsible for managing people. in the sessions to their projects that impact qualifications and specialization. Proof of this relative and 3 employees reduced their on the business or the operations of the club. is that 60% of our permanent employees have working hours as legal guardians of under-age Another fundamental commitment of Real The digital skills development programme a university education or higher, with the club children or dependent relatives. There have Madrid with its employees is in the area of was taught by the ISDI (Higher Institute for pursuing a talent management policy based on also been 8 voluntary leaves of absence, 2 Occupational Risk Prevention. As already the Development of the Internet), one of the high qualification levels that enable it to obtain contract terminations by mutual consent and 2 indicated in this same section, most of the most prestigious digital business schools in all the benefits derived from the division of permanent leaves of absence due to disability efforts in this area in the 2019-2020 season our country. labour and role specialization. in the 2019-2020 season.

32 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 33 This season, the club has increased its for urgent treatment. To ensure this, each investment in ongoing training for its staff. season preventive maintenance of the This investment has surpassed €740,000 and equipment is carried out and refresher courses 18,000 hours of training this season. The main are given to those people responsible for using The Santiago Bernabéu turned 72 training efforts have focused on supporting the equipment where necessary. during this season. its strategy, underpinning its plans for the internationalisation of the business and the Progress in the introduction of occupational club’s operations, on the one hand, and driving risk prevention in all the club’s production 3.4 Sporting and forward the digital transformation of our entire areas has continued this season with the Public Administrations organisation, on the other. monitoring and supervision of the facilities and processes, introducing all the necessary risk This season, Real Madrid continued to adhere • €208.1 M in taxes to the state and Another important aspect for the club’s prevention measures and drafting, updating, to its policy of timely compliance with tax regional treasuries, and in Social Security employees is our collaboration with our improving and adapting documentation and obligations and social security contributions and contributions, a cost which accounts for 28% Real Madrid Graduate School. Within this actions to the changes to the facilities and at all times has been up to date in its payments of the club’s turnover, meaning that for every framework, 3 scholarships have been granted to the work stations as well as to the tasks to the public administrations, as shown in the 100 euros of revenue, Real Madrid allocates to employees of the club, allowing them to take being performed in them. During this period, Transparency Portal. Likewise, it has continued 28 euros to taxes and Social Security specialised courses and Masters programmes different measurements of lighting, air quality, its institutional collaboration with the local and contributions. at the Graduate School, at a very low cost for temperature and humidity of all working areas autonomous community administrations. the employee. This opportunity improves their have been carried out. • €78.3 million in VAT, which, as a result of professional skills in their current job but also its economic activity, Real Madrid has paid their capabilities for taking on future challenges Moreover, an evacuation drill of the Santiago TAX BALANCE to the tax authorities (difference between in their professional career at the club. Bernabéu stadium offices was carried out on 8 VAT charged to customers and VAT paid to October 2019. Other drills were scheduled to The direct contribution by Real Madrid to state suppliers). Another major commitment of the club with take place from March and had to be cancelled and local tax authorities and Social Security for its employees and with society is to focus due to the declaration of the state of alarm. The the 2019-2020 financial year was €286.4 million. As of June 30, 2020, Real Madrid had no on the prevention of occupational risks and preventive policy of the club includes ensuring The breakdown by items is as follows: outstanding unrecognised tax obligations. continually promote health, safety and hygiene that our facilities offer the best conditions to at work. This ongoing commitment has led employees and other users, for which their to some specific actions in the 2019-2020 status is continuously checked. season. Actions in the area of risk prevention INCOME RECEIVED IN THE 2019-2020 FINANCIAL YEAR THOUSANDS € and occupational medicine included employee Business activities have been coordinated medical examinations, enhanced by new with 398 new companies in order to prevent IRPF e IRNR (deductions from staff remuneration and image rights) 184,805 diagnostic techniques for early detection of occupational risks, and the maintenance diseases, with ordinary and technical employees has been organised with the 1.892 active CORPORATE TAX 11,152 and also permanent, discontinuous employees companies already included in the coordination IBI and other local taxes 2,406 undergoing such check-ups. We also carried platform in previous seasons. SOCIAL SECURITY QUOTAS (company quota) 8,025 out a voluntary flu vaccine campaign, in which 70 employees were vaccinated. The Health and Safety Committee, comprised of SOCIAL SECURITY QUOTAS (staff quota) 1,731 club worker and management representatives, TOTAL COST OF TAXES AND SOCIAL SECURITY PAID 208,119 Real Madrid is committed to ensuring that its continued its activities, meeting regularly and % Operating Income 20% facilities are cardiac protected areas, for which making notable progress in the occupational risk it maintains a network of 21 defibrillators prevention plans for all areas. During this season, VAT NET BALANCE PAID 78,308 strategically distributed throughout our the new Health and Safety Committee was set REAL MADRID TOTAL CONTRIBUTION TO TAX buildings to ensure that in any cardiovascular up after the holding of union elections and the REVENUES AND SOCIAL SECURITY 286,428 emergency there is a device available nearby subsequent election of Prevention Officers.

34 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 35 Basketball Meanwhile, the Under-18 B team played the Coppa Brianza Internazionale in Italy and, in Real Madrid is present in all the major national December, won the first edition of the Bali (ACB) and international (EuroLeague) basketball International Tournament (Indonesia). bodies. The Under-18 C team played a new edition of COMMUNITY OF MADRID the tournament organised in Sant Pol de Mar, The club continues to maintain excellent relations in addition to winning the La Espiga de Brunete with the regional government of Madrid. Its Tournament. collaboration with this institution is more active than ever, as shown by the success of the The Under-16 A team, travelled to Alzira during assignment by the regional government of the pre-season and won the 13th edition of the WiZink Center for Real Madrid’s Endesa league Torcaf Tournament. It also played in Cabanillas and EuroLeague games. (Navarra) and in February travelled to Doha (Qatar), where it was crowned champion of the BASKETBALL FEDERATIONS Al Kass International Tournament. BASKETBALL FEDERATIONS: The Managers of Real Madrid celebrates winning Real Madrid’s Youth Academy played an active The Under-16 B team won the Madrid Youth its eleventh Spanish Super Cup. role in the Spanish Basketball Federation (FEB) Cup tournaments, held in Moratalaz, and the General Assembly and in that of the Madrid Glico Challenge Cup (Barcelona), and also Basketball Federation (FBM), thus strengthening participated in the Vall d’Uxó (Castellón). communications between the club and these Football and Communications Committee, as well as federations and creating a more fluid work The Under-14 A team went on the longest trip the Competitions Committee, Real Madrid dynamic. of the season to play the Florida International Real Madrid has a presence in the most is represented by a club executive. The Champions Cup Tournament. The team was important football national and international working group on Financial Fair Play has a also invited to the 25th edition of the Ciudad de organisations. The most important organisations representative from the club (the Institutional 3.5 Other Clubs Arnedo, in La Rioja. we participate in are as follows: Projects and Regulation Director). Proof of Real Madrid’s good relations with other The Under-14 B team had a great season, UEFA: this season, Real Madrid has been very FIFA: our club is represented at the highest clubs is its participation in tournaments and winning the LaLiga Promises Christmas active in the various committees and bodies of tier of football by the vice-president on both friendly games, in an atypical season that ended tournament, which took place in Abu Dhabi, the European organisation, particularly in UEFA the FIFA Player’s Status Committee on the in March. and the Intercontinental Dubai Football Cup. It Events SA, in which the president serves as a Football Stakeholders Committee. also took part in the tournaments of Ciudad de representative. In addition, our vice–president The teams from the Madrid academy were Talavera and Stadium Venecia (Zaragoza). is a member of the UEFA Club Competitions RFEF: this season, the club was represented unable to participate in several tournaments Committee and vice-president of the Board of accordingly, including its participation on the that were scheduled throughout the spring, but The Under-12 A team won the Pinares Cup Directors of the Club Competitions Committee Board of Directors. of those held in the first part of the season the in Segovia and played two tournaments in SA. Our pitch and environment director is also following stand out: Catalonia: the Media Gol Cup in Cornellá and part of the advisory team for Euro 2020. FFM: the club also has the representation the Vila de Corbera Cup (Barcelona). In addition, that corresponds to in on the Madrid Football Football a combined Under-12 A and B team participated ECA: the ECA is an organisation that brings Federation. The Under-18 A team travelled to Basel in a tournament in Cambrils and in the Fernández together the main European clubs and at (Switzerland) at the beginning of August to Trigo Memorial, held in Alcobendas. whose general assemblies Real Madrid is LNFP: the club is represented in this participate in the FC Aesch International represented by its vice-president, who was organisation by our General Manager and the Tournament. Pre-season ended with a trip to The Under-12 B team, meanwhile, won the appointed vice-president of the ECA, and director of Legal Services. This season it has Zagreb (Croatia), where the team played the Villanueva de la Serena and Media Gol Cup by other senior club executives. On the been very active in the organisation’s activities, Mladen Ramljak Memorial, and was one of the (Cornellá) tournaments in its category. The team Executive Committee, the club is represented especially in the General Assembly and the teams invited to the Manolo Arnoya Memorial, also travelled to Salou (Tarragona) for the On by its vice-president. On both the Marketing Audiovisual Committee. which took place in Ourense. Winter Sports Cup.

36 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 37 The Under-10 A team took part in several - The national team of Equatorial Guinea. tournaments during the season, including the Pinares Cup (Segovia), Lanzahíta (Ávila), - Teams that were playing the Champions Sabadell (Barcelona), Ciudad de Pinos Puentes League: Liverpool and Galatasaray. (Granada) and the Fernández Trigo Memorial, which it won in Alcobendas. - Teams from other foreign leagues: Lokomotiv Moscow. The Under-10 B team travelled to Lanzahíta (Ávila) and played two more tournaments within - Spanish teams: Albacete. the Community of Madrid: in Brunete and in the neighbourhood of El Pilar during its festival. Teams from lower categories: Chile under-17, Galatasaray under-19 and Bruges under-19. Finally, the Under-8 team played two tournaments in the Community of Madrid, in Basketball Alcobendas and the one organised for the El Real Madrid’s relations with other clubs is Real Madrid celebrates the Spanish Basketball Pilar neighbourhood festival. demonstrated by its participation in different Super Cup for the sixth time. tournaments and friendly games. In the 2019-2020 season, Real Madrid gathered together a total of 30 clubs, 18 in the capital city The first team played five friendly games in the and basketball sections, and which are now renewed its sponsorship deal for three more and 12 in other regions of Spain. pre-season. In the 9th edition of the Costa del Sol starting to also do so with the women’s football seasons in January 2020. Tournament, Real Madrid played against Unicaja team. Important partners have renewed their Each month, the sports management of the and Zenit Saint Petersburg; in the Liberbank commitment to the club and, despite the difficult And Codere, a Spanish sports betting company, invited clubs are required to send a list of Ciudad de Oviedo Tournament, against Kirolbet situation resulting from the pandemic, the Global also extended its collaboration, fundamental to the most outstanding players in the matches Baskonia and Liberbank Oviedo; and a last Sponsorship Department has also managed to its growth in Spain and Latin America. played, as well as detailed analysis of each match at the José Luis Abós Memorial against sign new agreements. of the footballers in their club, to the sports Casademont Zaragoza. And with our partner Telefónica we signed coordinator of this department at Real Madrid. Partners that have renewed their confidence an agreement for the global integration of The basketball academy teams also played in the club technological projects, by which they will help us At the end of the season, an appraisal of the several friendly games and took part in prestigious The beer company Mahou and its water in the technical development of connections and clubs is made and we decide which ones are tournaments at a national and international level, subsidiary Solán de Cabras have renewed their networks during the stadium renovation process. to be deregistered and which ones will replace playing a total of 12 matches. agreement with Real Madrid for the following them from among the many requests we receive eight seasons. An unusually long deal in the New brands that have placed their trust in each year. Highlights were the Real Madrid Junior victory world of football, for which the only explanation Real Madrid in the Adidas Next Generation tournament in is the trust and close relationship established Other brands have also initiated a relationship with In the 2019-2020 season, Real Madrid had Munich and the Under-14 team runners-up between the two companies. the club. The Palladium Hotel Group has become seventeen players on loan to other clubs. In the position in the Endesa Mini Cup. the main sponsor of the basketball team for three 2019-2020 season, Real Madrid Castilla only The Canadian company EA Sports, a very seasons. And the company specialised in trading, had one player on loan, with our club paying 3.6 Clients important partner for the club because its FIFA ET Finance, also began its relationship as a global 50% of the player's salary since he joined in the video game represents the first contact with Real sponsor of the Real Madrid basketball team. January 2020 transfer window. Sponsorship in tough times Madrid for millions of fans around the world, has In a season as complicated as the last one, also renewed its agreement, The pull of Real Madrid also reaches markets as In this same line of cooperation with other clubs, the club continued to deliver very good news interesting as Indonesia. This is the case of the many teams request the use of our facilities to in terms of sponsorships. Currently, 23 brands The Korean tyre company Hankook, satisfied company Dua Kelinci, leader of the snack market prepare games or carry out preseason training. place their trust Real Madrid as a communication with the increase in its brand awareness and in that country, which will use our image to make This season we have invited: vehicle. Brands that sponsor the men's football consideration during these last few years, also its packaging more attractive and boost its sales.

38 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 39 The Events Department has firmly established of note are the combination tickets which can itself within the Business Tourism industry, be used in conjunction with other entertainment occupying a privileged position due to the and culture venues. We also visited by more number of events carried out throughout the than 4,000 schools per season. In the 2019- year. Our Santiago Bernabéu stadium and Real 2020 season, new facilities and experiences Madrid City maintain their level of excellence have been included in the ticket for the Tour, and allow us to continue growing year after year. such as virtual reality glasses or the temporary The versatility of the spaces and the search for exhibition dedicated to the evolution of the a differentiating element, makes our facilities Santiago Bernabéu stadium. a preferred location for hosting events, which have increased in number significantly. The The food served at our four stadium restaurants remodelling works at the Santiago Bernabéu continues to occupy a privileged position stadium and the exceptional situation resulting among the city's gastronomic offer. The food from the COVID-19 pandemic, has meant we services available on match days continues to have had to redesign part of the offer and adapt improve and special mention should be made Real Madrid basketball players greeting the fans at to the new market needs. Meanwhile, Real of the international expansion of the club’s the WiZink Center. Madrid City, which offers a magnificent location restaurant project. and unique spaces, will develop new formats and ideas as a complementary offer. In the 2019-2020 season, Real Madrid has run its official store business in conjunction with people and 1,804 individual armchairs. In The VIP Area, in line with the rest of the club, The sum of the two facilities and their infinite adidas in the Santiago Bernabéu Store and in addition, the four restaurants at the Bernabéu also works with suppliers that guarantee a source of resources positions us as the best conjunction with Fanatics in the official stores (Puerta 57, Asador de la Esquina, Real Café and responsible use of natural resources, and takes and most complete offer in the city of Madrid. located in Madrid, on Gran Via, Calle Arenal Zen Market) become hospitality areas during specific actions as a measure of support to our and Calle Carmen, as well as at the Las Rozas every match. social environment, including sending surplus At a general level, it is worth highlighting our Village Shopping Centre, and at Madrid’s food after each game to soup kitchens in the firm commitment to sustainability and safety Barajas Airport (terminal 4 and terminal 4 The 558 VIP AREA clients are companies from Community of Madrid. as part of our present and future programme. satellite). In Barcelona, it manages stores in its a wide range of sectors; multinationals, IBEX- The impact of recent events (COVID-19), added Del Prat Airport (terminal 2), on Las Ramblas, in 35 firms, SMEs and private individuals. Also, to the trend in the MICE (Meetings, Incentives, Calle Ferrán and in the Maremagnum shopping during the 2019-2020 season, more than 3.7 Fans Conferencing, Exhibitions) sector regarding the centre. And also in Palma de Mallorca and in 8,400 additional VIP seats were sold for the 18 concern for the environment, social issues and Mexico City (Carranza, Polanco and Santa Fe). matches of the season held at our stadium, a The Customer Service Office was created in responsible business tourism, demands that we figure that, although significant, is lower than 2013 so that our fans who do not belong to be responsible and very aware of the need to Given the special and dramatic circumstances in previous years due to the global COVID-19 any group forming part of the club, such as adopt new sustainable practices. caused by the COVID-19 pandemic, our retail pandemic, as a result of which 6 games were members, Madridista card holders or fan clubs, businesses (restaurants, Bernabéu Tour, official played without the attendance of fans. have a dedicated office where they can make The Bernabéu Tour continues one more year stores, etc.) have been affected and closed to queries and find information concerning all their as one of the favorite tourist activities and the public, strictly complying with the guidelines The advertising strategy of client acquisition dealings with the club. Once again there have with the largest number of visitors in the city established by the competent authorities, to and strengthening brand perception has been been more than 42,000 transactions in this of Madrid. The experience of the visit has ensure the safety, integrity and health of workers extended for another year, featuring in major regard. improved considerably thanks to its constant and customers at all times. national and international online and offline media, technological renewal and the launch of a particularly in the business management, luxury, Our fans can contact the club by calling 902 new ticket distribution platform. This reduces The Real Madrid VIP Area has 4,698 seats finance, premium lifestyle, tourism and hospitality 32 18 09, and receive personalised attention the waiting time for purchasing tickets and distributed on all sides of the Bernabéu stadium sectors. We have also once again attended from our operators, or they can email the club accessing the facilities, while ensuring this and 594 VIP seats for basketball at the Palacio and exhibited at major trade fairs and have a at [email protected], a is done in an orderly and safe manner and de Deportes de Madrid (WiZink Center). The permanent presence at IFEMA. All these actions service that is provided from Monday to Sunday controlling of capacity in real time. Of the VIP Area at the Bernabéu Stadium is distributed have contributed to the VIP Area achieving a 90% from 9 a.m. to 9 p.m. every day of the year different options for taking the Bernabéu Tour, amongst 245 boxes, with a capacity for 2,894 occupancy rate over the 2019-2020 season. except Christmas and New Year’s Day.

40 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 41 registered users complies with the European 3.8 Suppliers Personal Data Regulation. Moreover, all the actions undertaken during the season that During the 2019-2020 season, we carried out involved the collection of personal data were a supplier approval procedure which ensures duly adapted to the new regulations. Today we that any potential and existing collaborator have more than 5,000,000 users regularised complies with certain requirements before they according to the GDPR. are considered suitable for the provision of any good/service. Florentino Pérez, with the White House Real Madrid Fan clubs Supporters Club Washington. Real Madrid C.F. has 2,434 Fan Clubs, of which This process offers the following advantages: 2,221 are in Spain and 213 are in the rest of the world. At present, we have 72 national and - Guarantees responsible purchasing throughout international fan clubs that are in the process the supply chain. Our service has answered more than 14,000 655 campaigns involving 29 million emails and of being set up. calls, and more than 28,000 emails, offering our 162,000 SMS sent to fans’ mobile phones over - Reduces risk (fraud, reputational, service fans information about club-related issues, from the 2019-2020 season. Throughout the season, the fan clubs interruption, solvency). ticket sales dates, how to obtain Madridista celebrated anniversaries, at which the club was membership, or how to apply for a trial. The Madridista Line has handled 30,000 present and sent institutional representatives. - Promotes competition among quality suppliers telephone calls. Likewise, more than 43,000 We attended 156 acts, almost all of those that in each purchasing category. On our first team match days and also during emails were received or answered through were held. Eleven Fan Clubs celebrated their Castilla matches and big events held at our the Madridista Line email address and 9,700 25th anniversary, one its 50th anniversary, - Suppliers that meet all the requirements facilities, the club provides a customer service online chats and more than 12,000 click-to-call two their 60th anniversary and one its 65th demanded by the different stakeholders we point where our fans can make any queries communications were responded to. anniversary. work with (Sponsors, Football League, etc.). and information requests they have or report incidences in person. Finally, more than 652,000 Hala Madrid At each first-team away match, we invite the - Suppliers that respect generally accepted magazines were sent to the homes of members local fan clubs to meetings with them where standards in terms of human rights, ethics and Lastly, this office also handles any consumer and Madridistas and more than 191,000 copies they exchange opinions and discuss the club respect for the environment, ensuring that we claims made by our fans and attempts to resolve of the Hala Madrid Júnior magazine were mailed and how it operates. At the end of the season, minimise our negative impact in our day-to- any discrepancies that may arise between the to young members and junior Madridistas. we have maintained contact with over 420 day activity in those areas within our scope. club and its fans. clubs. Registered users This season, 3,474 goods and service purchases Madridistas The club also maintains contact through regular All the clubs that so requested, were also able took place, including those listed under operating Real Madrid has 287,000 active fans registered electronic communications with registered to visit Real Madrid City and get to see its and investment costs. Total supplier turnover in its Madridistas Loyalty Programme. These users that are not members or Madridistas, facilities. was spread amongst approximately 968 different Madridistas receive an official supporters card currently comprising almost 15 million fans. suppliers. Of the total purchases made by the that enables them to have a direct and on-going With regard to registered users, more than 90 With regard to games played at the Santiago club, 99% were from Spanish suppliers and relationship with Real Madrid. million e-mails were sent. Bernabéu stadium, the Fan Club Department 1% from international suppliers, most of which works in conjunction with the Members are based in the European Union. This figure is The club also maintains a permanent GDPR Compliance Department of the visiting team to invite a significant regarding the impact of the club on relationship with Madridistas through regular During this past season, the club has continued group of its fans to a lunch to promote relations the local economy and wealth creation in our electronic communications. It has carried out with its campaign of ensuring its database of between the fans. community.

42 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 43 Real Madrid’s suppliers can count on the club’s safety policies laid out in the Workers’ Statute promise of making available the sufficient cash and, essentially, the provisions of Occupational resources necessary to honour the payment Risk Prevention Act 31/1995 and Royal Decree instalments within the agreed terms. The 171/2004 which govern the coordination of club’s policies specify the minimum levels of company actions whenever the staff of several liquidity it most hold at all times to meet such companies are working together in one single payments. The average payment term with work place. suppliers for commercial operations is 53 days and the total volume of payments made at 30 During the 2020-2021 season, a Real Madrid June 2020 was 226,110,000 euros, with a total Suppliers Portal will be put into operation, of 35,369,000 euros pending payment. where these types of collaborators will be able to request approval. The Procurement Committee, a decision- making body of the club made up of senior executives and members of the Board of 3.9 Society Students from the social sports school Directors, held 7 meetings, which approved in Cambodia. and supervised major purchases of the goods During the 2019-20 season, Real Madrid’s and services and in-vestments made by the social activities, channelled through its club during the season, as well as checking Foundation, were focused on the following improving coexistence and fostering solidarity its beneficiaries remotely using the training the evolution of the budget and its compliance areas: and leaving to one side the competitive nature material developed by the Foundation, by the different departments. of sport. The schools have the support of involving video calls, motivational messages 3.9.1 Social sports schools in Spain various entities such as Obra Social "la Caixa", from coaches and other activities related to To give an overview of the actions undertaken Endesa, HSBC, GSK, Ecopilas, CLH and a the values of sport. with suppliers in the matter of risk prevention The football and basketball social sports long list which as of this season also includes during the 2019/2020 season, we have schools of the Real Madrid Foundation in Spain Ipsen and Janssen, Signus, Mutua Madrileña The inclusive football and basketball social coordinated business activities with 324 cater to all boys and girls who, whatever their and the Association of Victims of Terrorism, schools are run in collaboration with disability new suppliers and we continued to conduct circumstances or abilities, want to play value- partnerships that ensure the sustainability of organisations such as Down Madrid, the A evacuation drills in the buildings and facilities at based football and basketball football while the scholarship system. LA PAR Foundation and ATADES Zaragoza. Real Madrid City, which involved coordinating wearing the badge of the Best Club of the 20th The projects are aimed at children with Down actions with the sub-contractors whose century. The coaches-educators are specifically During the 2019-2020 season, more than 8,000 syndrome, pervasive developmental disorders employees were working on the site at the trained by the Real Madrid Foundation beneficiaries have been able to participate (PDD), intellectual disability and autism time of the drill. Work has also been completed Training Area to implement the For a REAL in the activity carried out by the Real Madrid spectrum disorders (ASD). Their purpose is to on job risk profiles for all staff under contract education: Values and Sport methodology in Foundation in 16 of the 19 Autonomous provide the beneficiaries with both technical and the risk assessment documents, personal the different disciplines, teaching the values Communities and Cities, before the state of and tactical skills, as well as social norms to, safety plans and emergency measures at the of Real Madrid and team sport (respect, alarm. The programme in schools involves whenever possible, try to integrate them into facilities have been reviewed, including those camaraderie, teamwork, motivation, effort, weekly training sessions for each group and a social sports school with colleagues without for the club’s new corporate office building. responsible independence, committed self- is capped off with a social tournament for all disabilities. esteem, equality, solidarity and the promotion the different beneficiaries of the social sports Advice was also given on occupational risk of healthy lifestyle habits –hygiene, nutrition schools and their relatives which promotes the Our support for people with differing abilities prevention to all the suppliers with contracts and exercise–). The programmes are adapted proper use of free time and helps with the all- includes adapted social sports schools. During with the various of the club’s departments to the social reality of the environment of each round development of users and the putting the 2019-2020 season, the adapted football whose employees, on account of the types of school, a minimum of 15% of the places and into practice of what they have learned during and basketball school was consolidated services they provide, carry out their functions a maximum of 100% are reserved for users at training. through a partnership with the Ana Carolina in the club's facilities. All these activities risk of exclusion and in all cases, their objective Díez-Mahou Foundation and thanks to the are intended to ensure that the suppliers’ is to ensure the users develop their skills to During the months of lockdown, the Real continued support of GSK, a project that employees meet the occupational health & help train them comprehensively as people, Madrid Foundation carried out the activity for promoted sports for children between 7 and 14

44 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 45 years old suffering from respiratory problems. The Foundation completes its educational The number of beneficiary group types In a similar vein, sports psychology helps the It should be noted that in this project included offer for children with summer campuses and increases every year because everyone can beneficiaries of the Emprendeporte project, our first football student in a wheelchair in the clinics. The campuses involved around 4,000 benefit from sports lessons led by specially which offers unemployed people the possibility National Area. We also launched our second participants at the beginning of the season, trained professionals. This season a new of leveraging the processes and characteristics adapted football school in Fuenlabrada, while Real Madrid City hosted more than 100 project for people over 60 has been launched learned through sport to promote personal enabling students who turn 20 the opportunity clinics for groups and teams started before the in Badajoz, in addition to those also aimed at initiative and the undertaking of new projects to continue their training at the Real Madrid declaration of the state of alarm. the elderly carried out at the Canal de Isabel in different professional fields. Foundation. This new school is in addition II facilities and at the DomusVi nursing homes to the basketball school for the elderly with 3.9.2 Social-sports projects with other groups at in Madrid. With the state of alarm and the The physiotherapy project for neurological- functional diversity at Hogar Don Orione. risk of exclusion suspension of on-site activities due to the neuromotor diseases, the line of volunteering lockdown, the elderly have suffered more than initiatives or the Christmas campaign are other This year, we have continued to run the The prison programmes that serve thousands most and, therefore, the Foundation wanted to projects that were carried out during the 2019- wheelchair basketball schools which promote of inmates each season were run again this collaborate with the City Council's campaign 2020 season before lockdown. sports and hygiene habits that improve the year, contributing to their re-education in to support those who live alone. quality of life of the participants and promote values through playing sport. And, in a similar education in values as a means to increase vein, the Foundation benefits other groups on After the deceleration of the state of alarm 3.9.3 International Area their personal development and promote the margins of society such as young offenders was decreed, the Foundation and the club of the Real Madrid Foundation independence in their day-to-day lives. This and children in reception centres, with a series organised the Let's fill the Bernabéu solidarity season a new patron has given its support to of projects throughout Spain involving more campaign which, among other things, involved The International Area of the Real Madrid the Getafe school: Signus. than 30 training groups. the donation of medical supplies to hospitals Foundation ended the 2019-2020 season and nursing homes. This link with hospitals is aligned with the United Nations (UN) not new. The Foundation has been running the Sustainable Development Goals, as part of basketball and physical exercise programme the Global Compact. At the international level, Tavares visiting the students of the basketball in hospitals for more than a decade, offering the Foundation runs 323 permanent projects social sports campuses. children and hospitalised people the in more than 72 countries, four of which possibility of playing an adapted sport that are specialised. In total, more than 46,000 would normally be part of their daily life were beneficiaries of schools and international social they not in hospital. It conveys values through sports projects which promote the all-round basketball as a recreational and educational development of boys, girls and adolescents tool in hospitals. To run this programme, the through their education, the transmission Real Madrid Foundation continues to have the of values and participation in football and support of the AMA Foundation and Medical basketball training sessions. And all this Service Care. through their inclusion in socio-educational activities, including extra academic tutoring, Inmates, children in foster care, the elderly psychological support, the distribution of and the sick are not the only groups whose nutritious snacks, medical check-ups and lives improve through the Foundation's guidance for integration and socio-family sports programmes. For four seasons now, in support. collaboration with the Red Cross and the Padre Garralda-Horizontes Abiertos Foundation, the International action, through the social Programme for Homeless People has helped sports school model, has made it easier for this group improve their quality of life, their the Foundation to continue with its socio- self-esteem and promote their integration into educational work during lockdown in the the workplace and society through physical communities where it is present. On-site sports exercise. The programme involves the close activity has been temporarily suspended, monitoring of the beneficiaries through physical but the social work and accompaniment and psychological tests, focusing on the tools of the beneficiaries and their families has used in sports psychology. strengthened and adapted to the health

46 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 47 Real Madrid players at the Real Madrid Foundation campuses.

measures implemented by governments in to support local communities with basic food In the Middle East, this season the Foundation in 17 schools located in 9 countries. In education, sport and health and responding to items and protective medical equipment, has strengthened its objective of promoting terms of the economic sustainability of the the new needs of its local partners, beneficiaries until training sessions can be resumed. The education in the values of citizenship and projects, an important objective was achieved and collaborating entities. schools in Indonesia received a visit from peace, reducing fundamentalism and thanks to the partnership established with representatives of the Real Madrid Foundation promoting healthy lifestyles. Sport is used as a the UEFA Foundation for Children to support The commitment of local coaches with their and Álvaro Arbeloa in autumn, and the tool for the empowerment of refugee or migrant six European schools and ten shelters in students has been evident through training and partnerships with the Mapfre Foundation and communities, strengthening social cohesion Spain. Along the same lines, the Foundation online games with individualised monitoring, Roadis in the region have been strengthened to and promoting links with host communities. continued its collaboration with Epicentr for thanks to the digital materials created by the provide a social response to the crisis caused The Foundation runs 52 social sporting projects Children (Ukraine), which guarantees the Training area of the Real Madrid Foundation by the pandemic. in 8 countries, with 4,220 beneficiaries. It is sustainability of the five existing schools and during lockdown which has allowed the worth highlighting the fact that humanitarian continues to expand our presence in the beneficiaries to work on the club’s values In Africa, the Foundation maintains its network aid projects in Palestine, Lebanon and Jordan country, in addition to incorporating basketball. at home, and helped them to cope with the of social sports schools, giving continuity to have been promoted through sport, providing lockdown by promoting family cohesion. projects thanks to partnerships such as the support to Syrian, Palestinian and Iraqi Two new agreements were also signed: in the one with the Government of Rivers State, in refugees. In the West Bank and Jordan, in the United Kingdom with the Kinetic Foundation; During the 2019-2020 season and before Nigeria. It also continues to promote the rights refugee camps, work has been expanded with and in Italy with the Portofranco and the pandemic, it is worth highlighting the of children in 26 countries, with 51 projects and the UN agency UNRWA and in Lebanon work Fatima Thracia associations, which held an partnerships in the Middle East with Mohamed providing support to 9,701 minors. Senegal is has been intensified along the same lines, with inauguration event attended by Álvaro Arbeloa. Bin Rashid Al Maktoum Global Initiatives one of the countries in which we cooperate the the Fretalli project. About twenty beneficiaries In the Americas, the activities continued on (MBRGI), in Europe with the UEFA Foundation most, with five projects in collaboration with of this project in collaboration with Paradis a path of consolidation and growth, so that and Epicentr K, and in America with the loyal the Salesian Missions, the Piarist Schools and d'Enfants visited Madrid in September 2019. by the end of the season there were 176 service of AT&T and Globalvia. the Xaley Foundation. In Egypt the presence In this region, moreover, we continue to work social sports schools in 22 countries, directly of the Real Madrid Foundation during the closely with our partners in the United Arab benefitting more than 23,382 boys, girls, In the Asia-Pacific area, 23 projects run in 7 2019-2020 season has grown with projects Emirates and of note was the launch of the adolescents and young people. This season, countries, including a new school in Tamano in Mauritania thanks to Manos Unidas; in framework agreement with the Mohammed new schools were opened in El Salvador, the (Japan), with a very positive impact on students. Tanzania, with the Salesian Missions; and bin Rashid Global Initiatives (MBRGI). US and Mexico thanks to the collaboration of The Wellington High School in Australia started in São Tomé and Príncipe, with Filhos de the Mapfre Foundation, Globalvia, AT&T and the season with a visit by its beneficiaries to São Tomé and the support of Agripalma. In In Europe, the year began with the first Alma Microsoft. Similarly, partnerships with local Real Madrid City and it has stayed open during addition, given the international health crisis, Cup for basketball held at the Real Madrid authorities were reinforced. During autumn, the pandemic as a day centre. In India, the the Foundation continued with its humanitarian City pavilion. Social sports schools from beneficiaries of projects in Ecuador, Uruguay Philippines and Cambodia, the Foundation aid programmes through our partnership with Hungary, Portugal and Morocco took part. and Chile travelled to Madrid for recreational, continues to carry out humanitarian aid actions the Missionaries of Africa (White Fathers). There are now more than 1,400 beneficiaries educational and cultural activities.

48 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 49 abilities at the Santiago Bernabéu stadium, And from all over the world came the attendees in line with the exhibition held by the General of the 2nd Learning from the best international Directorate of Sport of the Madrid City Council convention, organised by the Real Madrid on the occasion of the Inclusive Sports Day. Foundation and Kohfahl Ballstrategien, with the support of the Real Madrid Sports Area. With the arrival of autumn, the Foundation's series of fun runs began once again in Alhaurín Other icons of the club took part in the Luis de la Torre and ended in Madrid with the 4th de Carlos Forum in February. Under the title Charity Fun Run, which brought together 5,000 Spanish Super Cups, Butragueño, Arbeloa and runners on Paseo de la Castellana. Isabel Díaz Martín Vázquez participated in a discussion Ayuso, President of the Community of Madrid, table chaired by the executive vice-president of and Emilio Butragueño, the club’s Director of the Real Madrid Foundation, Enrique Sánchez, Institutional Relations, gave the starting signal and moderated by journalist Alfonso Villar. The for a race in which Álvaro Arbeloa and Abel presidential box at the Santiago Bernabéu was Antón participated. filled for the event, which brought together Real Marcelo greets the children Madrid legends to talk about the importance at one of the Foundation’s campuses. The 2020 Corazón Classic Match United for of a tournament that Real Madrid has won 11 Children, in which the Real Madrid Legends times, the last back in January. were due to play FC Porto Vintage, was Between March and June, the projects 3.9.4 Communication, events and institutional rescheduled due to the stadium remodelling In the first quarter of the year, the Foundation became hubs for generating initiatives aimed activities works, so its presentation was brought forward collaborated with various awareness at mitigating the effects of COVID-19 on the to November. The event was presided over by campaigns such as Badges against cancer, population. The local American partners of The 2019-2020 season started with the hosting Florentino Pérez and was attended by Alipio in collaboration with Solán de Cabras; No, full the Foundation have never wavered in their of a youtubers match at the Santiago Bernabéu Jorge Fernandes, vice president of Porto, as stop, GSK's anti-smoking campaign; World support for the communities that benefited stadium, organised by adidas and DJ Mario to well as former players from both teams such Malaria Day and the importance of vaccines; from these shared programmes. These partners raise funds for the Real Madrid Foundation, as Álvaro Arbeloa, Roberto Carlos, Santiago and later the campaign Don't get caught distributed more than 900 tonnes of food. and the celebration of the RealReal Family Solari and Rafa Martín Vázquez, from Madrid, offside, in collaboration with the Ipsen and Fest, the largest charity festival for families and Fernando Gómez, from Porto. During Janssen laboratories, and the campaign to Between July and March, moreover, the in all of Europe . In its first year, this daytime the months of December to March, different mark “X” in the charitable causes box for the Foundation's international activity included festival brought together more than 35,000 activities were carried out to promote the 2019 tax returns. educational campuses which were held in people with an offer that combined sport, match, including the Come to the CCM by China, Greece, Ireland and Macedonia and music, leisure and fun to raise funds for the Metro campaign, in collaboration with Metro In February, the 1st European Alma Cup for up to 33 international clinics with more than Foundation's social sports activities. de Madrid, with the participation of Roberto basketball and the 6th Alma Cup for football 21,000 participants. Carlos and Solari. were held. The season, like every summer, began with the Also, more than 1,000 coaches and educators campuses in Real Madrid City and later gave As every year, the At Christmas, no child without The visits of the Infanta Elena to the in Spain and abroad have been trained in the way to the Foundation's patrons tournament, a giftcampaign took place in December along Foundation's project in Peru, and that of Nakic, unique and pioneering methodology of the Real which brought together a hundred players with the traditional visit of the players of the the player from the basketball first team, to the Madrid Foundation: For a REAL education: from more than 20 different organisations. first teams to the hospitals in the Community social sports basketball schools of La Masó Values and Sports, whose academic value of Madrid. The special finishing touch during were the last on-site events of the Foundation is already proven. Its versatility has made it With all the projects already started in October, the holidays came with the participation of the before the state of alarm was declared possible to transfer it to digital environments the Foundation participated in collaboration Foundation on January 5 in the 2020 Three in record time, opening a new line of eLearning with La Caixa in an awareness-raising action Kings Parade in Madrid, which was televised The first remote activity as part of the campaign specialised in sports and values. for the social inclusion of people with differing for the whole world. to tackle COVID-19 was the charity auction

50 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 51 3.9.5 PRESENCE OF VETERANS, Carvajal attended the Foundation's school in AMBASSADORS AND ICONS OF REAL MADRID Leganés; Marcelo visited a centre for minors; and Vinicius Jr. was the ambassador of the Real Madrid’s ambassadors increased their Foundation in the school in Canal, which is presence in the Foundation's activities during run with the support of Banco Santander. the 2019-2020 season. Arbeloa visited the Rodrygo, Militão and Areola sent messages projects in New Jersey, Hoboken, Mexico, to students in the Foundation's schools and Panama, Italy and Jakarta, among other places. campuses. Llull recorded video messages of And he participated in activities such as the support and visited the beneficiaries of the Luis de Carlos Forum, the 4th Charity Fun Run, One Team programme of the Real Madrid the 2nd International Coaching Convention, Foundation and the Euroleague. Tavares the Divergente event and in institutional signing attended the basketball campus and Nakic events with large organisations. visited the schools in La Masó.

Emilio Butragueño collaborated in the The academy teams also supported the presentations of agreements and partnerships Foundation's projects. Real Madrid Castilla and in video messages in support of different visited the project beneficiaries at the Soto del causes. He visited projects in New Jersey, Real prison. The Under-18 A team collaborated Ukraine and Motril and was appointed in a UEFA Youth League programme together Mario Nakic visiting the basketball social sports school in La Masó. ambassador of the Madrid City Council’s with the beneficiaries of the project with the Volunteers for Madrid programme, with which Padre Garralda Foundation; the Under 18-C the Real Madrid Volunteer Office, managed by team visited the homeless at the San Blas the Foundation, collaborates. Solari supported municipal centre which is supported by the Legends at home, organised by the portal the generosity of Real Madrid and the players national projects such as the new school in Foundation and the Red Cross; the Under-16 Lagalerna.com and Escrapalia. In a similar of the football first team, auctioned of shirts Badajoz and the centre for unaccompanied A team went to the Manzanares children’s vein, the first multi-channel Luis de Carlos used in home matches. This fundraising minors in Arturo Soria (Madrid). The three Real home and Under-16 B team to the Chamberí Forum was held, broadcast live on YouTube, activity managed to raise over 100,000 euros Madrid ambassadors have been very active children’s home. Facebook and Realmadrid TV under the title with the proceeds going to the Foundation's in creating video messages during lockdown The Solidarity of Real Madrid, which was social projects around the world. to promote the Foundation's campaigns More than five hundred seriously ill children attended by Butragueño, Raúl, Arbeloa and and show support to the beneficiaries of the got their wish of meeting the Real Madrid Roberto Carlos. This forum was viewed more In June an online seminar entitled Don't schools. players. Also worthy of special mention, once than 11,000 time on digital profiles when it was get caught offside was presented by Emilio again, is the presence and support of the broadcast live on our channel and as was open Butragueño, which was viewed more than The basketball veterans, led by Rafael Rullán, Foundation programmes by the President and for the entire viewership to participate through 6,000 times on the Foundation's YouTube and who visited the adapted basketball school the Board. online donations. Facebook profiles, on the occasion of World in Alcalá de Henares, have also collaborated Prostate Cancer Day. The last online action in the Foundation's initiatives such as the The next remote online action was the of the season was the presentation of the multi-channel Luis de Carlos Forum entitled 3.9.7 Publications, awards, collaboration with the Revel Foundation in first online charity dinner in Spain. A double The Real Madrid basketball team, a universal speeches and forums the production of the video clip Volverte a ver, screen screen initiative to watch the last phenomenon, in which Clifford Luyk took part. with the Colombian artist Juanes allowing the home League game of the season, with Álvaro The season began with the award of the 2020 use of his similarly named song as the theme. Arbeloa commentating via videoconference, Leaders Award to President Florentino Pérez Subsequently, and thanks to an agreement accompanied by a special premium menu, with 3.9.6 Presence of players by the Revel Foundation, in recognition of with Arrayán, the 2nd multi-channel Luis Carlos a legendary gift for all fans. And the season the Foundation's work in Colombia. Also of Forum, The Real Madrid basketball team, a ended with the preparations for the launch of In the 2019-2020 season, football and note was the awarding of the EFQM 300+ universal phenomenon, was held, attended by the solidarity masks to raise funds for the Real basketball players visited various Foundation European Seal of Excellence by AENOR to Clifford Luyk, Pablo Laso, Rudy Fernández and Madrid Foundation’s projects with the Spanish projects, in addition to visiting hospitalised the Foundation, recognizing excellence in Willy Hernangómez. After this forum, thanks to Red Cross. children during the Christmas campaign. the management of its processes, its strong

52 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 53 Dani Carvajal visiting the Foundation's social sports school in Leganés.

focus on transparency and ethical action, 3.9.8 Activity of the Graduate School objective is to transmit and share them with University, UCLA (UCLA Anderson School reinforcing trust among its stakeholders. European University our students, always bearing in mind that our of Management) and Bocconi University, obligation is not only to train students, but also considered among the most prestigious Almost 4,000 coaches-educators have The school is present in Spain, the US, Mexico, develop them as human beings that behave a in the world. It is also worth highlighting participated in Foundation courses and Saudi Arabia, Portugal, Italy and Australia. certain way according to the historic values of our agreements with leading international workshops this year, in more than 700 training Real Madrid. institutions in higher education in Sport activities (courses, workshops and seminars). Focusing on the areas of health, sport, management such as Beijing Sport University, the largest Of these, 388 coaches-educators are from and communications, our school offers 18 During the 2019-2020 year, the school has university in China in higher education in Sport, abroad, 20% are women, and 578 have been master’s degrees: A University MBA in Sports taught masters courses to 581 students at and the Saudi Arabian Leadership Institute, trained in Spain, with 16% female participation Organisations Management; Online University its campus in Madrid, and to another 509 an institution that encompasses education in in more than 2,500 hours of training given by MBA in Sports Organisations Management; MBA students at its 10 international sites. At the different fields of sport in the kingdom of Saudi groups. In this regard, it is worth highlighting Master’s Degree in Sports Management; Online Madrid School, 73% of students came from Arabia. All these projects have allowed us the hosting of the 2nd International Coaching MBA in Sports Management; University Master’s more than 50 countries, the highest number and allow us to develop unique and exclusive Convention in Real Madrid City. Degree in Sports Law; International Master in since the school was founded in 2006. The experiences in classroom-based and virtual Sports Law-LLM; University Master’s Degree multicultural nature of our classrooms makes programmes. The Training Area and the Values Group of the in Sports Marketing; Master’s Degree in Sports us a truly international school. Foundation have published 7 research and Marketing; University Master’s Degree in Sports One of the main activities of the academic year, analysis articles in specialised magazines, Communications and Journalism; Master’s The international character of the school is as always, is White Week. It was especially including the following: -Effect of an educational Degree in Football Management, Master’s Degree reinforced with renowned professors from exciting to count on the participation of great basketball programme on sportsmanship; in Football Management-Top Level Coordination, the United States, South Africa, Germany, sportspeople like Marcelo, the Real Madrid -Evaluation of a sports programme aimed International Master’s Degree in Football the United Kingdom, Belgium, Australia and footballer; Sergio Llull, the Real Madrid at promoting values in Spanish prisons; and Coaching and Management; University Master’s France, among others, gave classes this year. basketball player; Raúl González, winner of Competition in the Real Madrid Foundation's Degree in Sports Coaching and Nutrition; three Champions Leagues and coach of Real social sports schools. University Master’s Degree in Physical Education New courses in English have been established Madrid Castilla; Roberto Carlos, winner of and Health and a University Master’s Degree in with the launch of the International Master three Champions League and ambassador for The Foundation has participated in the III FID Sports Physiotherapy and Master's Degree in in Football Coaching and Management Real Madrid; Fernando Alonso, Formula 1 and Forum of León (International Sports Forum), Psychology and Sports Coaching. More than programme, and the opening up of new areas World Endurance Champion; Sergio García, the I National Congress for Women and 12,500 students have studied at the school. with the Master's Degree in Psychology and professional golfer who won the 2017 Augusta Paralympic Sports; in Brazil Soccer Expo 2019 Sports Coaching. Masters and the player with the most points and in the TEA training day seen from within, There are five values that identify and set the in the history of the Ryder Cup; and Conchita organised by the European University on the school apart: entrepreneurial spirit, teamwork, In terms of international expansion, we are Martínez, Wimbledon champion, coach of occasion of World Autism Day. integrity, leadership and excellence. Our delighted to be partners with Columbia Garbiñe Muguruza and former captain of

54 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 55 Start of the academic year at the Real Madrid Graduate School European University.

the Spanish Davis Cup and Federation Cup class, Juan de Dios Crespo, Marcos Motta In its mission to prepare the most qualified We want to thank the commitment and effort teams. In this edition, it is worth highlighting and José Lasa, partners in three important professionals to lead the sports industry, shown by the students, the faculty and the entire the participation, among others, of Pablo law firms specialising in Sports Law (Ruiz the school has achieved employment rates university community in immediately adapting Laso, coach of the Real Madrid first basketball Huerta&Crespo, Laffer Abogados and Bichara of 93%, thus helping its students to achieve our usual classroom-based teaching to virtual team; of Jesús Bueno, NBA vice president for e Motta Abogados) presented to the attendees their goal of working in the sports industry. teaching with all the necessary assurances for Europe, Africa and the Middle East; of Mattias a practical overview of sports law and the Similarly, it has also implemented a monitoring everyone during this exceptional situation in Grafstrom, FIFA Deputy Secretary General for benefits of post-grad programmes offering this and relational plan, career plans, events and 2019-2020 academic year. Football; and Toni Nadal, Rafa Nadal's former specialization. training to continue to provide maximum value coach. to its students. Other highlights included the first edition of 3.9.9 Environmental action A highlight were the master classes given the international seminars on Sports injury Since the beginning of the health crisis caused to the students by other sportspeople such physiotherapy, a session on Returning to by COVID-19, and due to the state of alarm In the 2019/2020 season, Real Madrid has as David Beckham, a universal icon; Rafael competition with Juan Antonio Camacho decreed by the Government in Royal Decree continued to develop its environmental Nadal, winner of 20 Grand Slam tournaments; and the directors of the Master’s Degree in 463/2020 of 14 March, which had a notable protection policy as a key component of and Vicente del Bosque, who as a coach Psychology and Sports Coaching, and the impact on all activities in the country and its sustainability strategy. The Environment won the 2010 World Cup and Euro 2012. seminars on Technology and Sports, which also on universities, the European University Division has promoted a wide range of actions In addition to the special session entitled dealt with the latest trends in the sector such of Madrid continued its teaching activity in an to reduce the impact of its activities on natural Football Administration, which included the as artificial intelligence or eSports. online format, aligned and in direct contact resources. participation of Álvaro Arbeloa, a Real Madrid with the educational authorities. ambassador. Each of the programmes has involved Some of the key areas within Real Madrid’s a club executive as co-director. Faithful The school managed to maintain the scheduled environmental agenda, spearheaded by this The students also took part in shared sessions to our commitment, many Real Madrid classes in all programmes, maintain student new division, include material and waste across programmes, allowing them to obtain professionals formed part of the teaching attendance rates above 90%, carry out recycling, energy generation and consumption, a broader perspective of the different areas staff of the different master’s degrees, which evaluations of course work and final master's water usage and treatment, greenhouse gas of management, communication, law, health was highly rated by students as a way of degree projects and prepare students for emissions into the atmosphere and the planting and sports, as well as to expand their contact directly facilitating information on the internal remote working. Once the circumstances and of trees, sports pitch turf and ornamental networks with teachers and students from management of the club. Moreover we should authorities allow, the academic trips which plants. other areas. highlight the fact that more than 100 students, were suspended will be undertaken once including the students with the best academic again as will the graduation ceremony, which Noteworthy projects include the replacement A highlight once again this year was the master record, carried out internships in different will undoubtedly be one of the most emotional of combustion engine vehicles and machinery class on The Practice of Sport Lawyers. In this departments of the club. we have had. with electric equipment. In addition to gardening

56 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 57 and cleaning machinery, this measure has the UNE EN ISO 14064-1:2012 standard for its an impact on people’s mobility as evidenced Football and Basketball Club activities in its during the 2019-2020 season in which the club Santiago Bernabéu stadium and Real Madrid continues to use electric cars as part of the City facilities. agreement with the club’s sponsor Audi. At the same time, electric vehicles of different sizes In compliance with our sustainability and are being used for mobility inside Real Madrid energy efficiency policies, Real Madrid has City to ensure the movement of people with continued this season to study and implement zero emissions. actions designed to both reduce electricity consumption and to enhance the responsible Currently, Real Madrid is the first football club management of natural resources in our to voluntarily evaluate its carbon footprint and production processes. certify the evaluation system. The calculation Real Madrid, promoting the of the carbon footprint gives us an overall Electric bicycle and scooter parking spots climate summit (COP25) environmental indicator of the activities we have been set up for club workers, promoting carry out, enabling us to objectively know healthy habits and zero pollution. our environmental impact and thus be able to system has been set up for the collection, and water use, as well as cut greenhouse gas design appropriate measures to offset it. Through collaboration agreements with transport and subsequent treatment of waste, emissions into the atmosphere. This efficient selective and coordinated waste collection which goes beyond the guidelines set by the management of lightweight container waste For the second year running, the club has companies, the club has been able to meet all European Union. has enabled us to save: officially registered its carbon footprint, the requirements relating to waste collection, offsetting and absorption projects has transport and the treatment of both hazardous Under this agreement, in the 2019-2020 • 154 tonnes of CO2 emissions. been obtained in the Ministry for Ecological and non-hazardous waste it generates. season, around 321,950 kg of waste was • 580 MWh of electrical energy consumption. Transition. This registration in the Official collected from the Santiago Bernabéu Stadium • 3,119 m3 of water. Register is based on the Verification of Since 2007, Real Madrid has had an agreement and from Real Madrid City. Greenhouse Gas Emissions Statements with Ecoembes Spain, S.A. for the of selective During the 13 years of the agreement with obtained by the club in compliance with the collection and recovery of light containers and Of this amount, 89.34% constitutes recyclable Ecoembes, more than 5,176 tonnes of light UNE EN ISO 14064-3:2012 standard, which cardboard at the Santiago Bernabéu Stadium lightweight containers, paper and cardboard containers and 1,635 tonnes of paper and means that the club meets all the criteria of and at Real Madrid City, through which a and only 10.64% unfit waste which. When cardboard have been recycled, with the comparing this figure with usual figures for aforementioned resulting environmental the country as a whole, it shows that we are benefits of reducing CO2 emissions and water correctly separating waste at source. and electricity savings. Aerial view of Real Madrid City. Over the 2019-2020 season, some 163 tonnes During the 2019-2020 season, the number of of light containers and 124 tonnes of paper and containers at the stadium was further increased cardboard have been recovered through this to ensure the correct separation of waste both process. These amounts have been reduced on match days and on ordinary days. And we as a result of the ban on spectators at matches have continued to train the personnel in charge due to the COVID-19 pandemic. of managing the hospitality areas on how to separate waste into the correct containers Waste recycling allows us to make significant installed for this purpose. savings in scarce raw materials. With these 287 tonnes of recycled materials, comprising Also. 460 kilos of hazardous waste, such as containers and cardboard generated in the contaminated containers from maintenance Real Madrid facilities, it has been possible work containing paint, spray, silicones, etc., to make many different products commonly have been removed by specialised companies, used in society. Through such recycling, we thus ensuring that this waste is sent to the have been able to significantly reduce energy appropriate place.

58 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 59 All actions are supported by the obligation of existing at any time, so not all the cabs are our comprehensive maintenance company, running at the same time, reducing waiting during operative and conductive work, to carry times and streamlining the up/down flows, as out efficient energy management in all our well as the stops at the floors, thus leading to facilities. energy savings.

Likewise, in compliance with the Municipal Resulting from our environmental pledge Regulations ANM 2006/50, the Sustainable made since the conception of the new office Water Management plans have been upgraded building, it has been awarded the highest at the Santiago Bernabéu stadium and at energy rating certification - A. It has a certified Real Madrid City, to monitor the supply and energy consumption of 241 Kw h/m2 per year to introduce corrective and improvement and gas emissions of just 41 kg CO2/m2 per The residence of the football and basketball measures designed to reduce water usage. year, with 100% being generated by renewal first teams at Real Madrid City. energy sources. Real Madrid C.F. has the guarantee certificates for the source of its electrical power supplies. In compliance with UNE 171330-2014, the new 100% of the KWh purchased for our buildings office building has been awarded the Indoor Exactly 20,864 kilos of glass, from the different documentation and external communications was previously generated by renewable energy Air Quality certificate issued by AENOR. events and VIP areas on matchdays in the to digital formats. sources (principally solar and wind energy). stadium, have been collected and therefore Moreover, a Sustainability Championship recycled by our waste management company. The maintenance of the club facilities, in The entire annual water consumption of our aimed at all Real Madrid employees was compliance with its policy of sustainability and football pitches and ornamental gardening of launched. This was an information campaign During the season, the use of electric blowing energy efficiency, has been strengthened by the Real Madrid City comes from the recycled that, using a game format with interactive machines has been expanded, replacing the action aimed at reducing consumption and water network of the Madrid City Council, as virtual scenarios, ran for 13 months (coinciding combustion machines previously used, leading responsibly managing resources. well as from the recovery of rainwater and field with the number of European Cups the to an improvement both in the environment and drainage. club has) raising awareness on aspects of in comfort, both for the workers who handle These actions include the following: sustainability and the environment. The topics these devices and for the rest of the stadium All these sustainability and energy efficiency covered included mobility, water management, workers, as it has significantly reduced the noise • Installation of LED technology in emergency criteria, in addition to implementing them in nature, natural lighting, sustainable waste generated. lighting for stands and buildings at the Real existing facilities, will be used as a starting point management, renewable energy, sustainable Madrid City and the stadium. for the development of new infrastructures: use of natural resources, and others. The This season, the cleaning service vehicle has average participation in this initiative involved also been replaced with an electric one, thus • Execution of Phase IV of the replacement of In addition, the Real Madrid offices have about 200 club workers. reducing the accumulation of gases in the existing lighting with LED type in access road introduced an integrated waste management galleries produced by the previous diesel vehicle. lighting leading to Real Madrid City and in its car system as part of the club’s environmental As part of the aforementioned environmental parks. protection policies. Among other initiatives, sustainability campaign promoting Although the suspension of matches halfway users have been encouraged to manage their environmentally friendly behaviours among through the season meant that it has not yet • Improvements in the remote management waste appropriately with various disposal employees, reusable glass bottles have been been put into use, a machine has been built to and monitoring of equipment to optimises points throughout the building to ensure the distributed and water fountains with purifying separate the remains of sunflower seed shells. their hours of operation, especially regarding correct separation of waste at source, with filters connected to the Channel network have The amount of this kind of waste generated the programmed timings of air conditioning containers for paper, containers, organic been installed in the coworking areas with the during matches is very high so the idea is to equipment based on the actual levels of waste, batteries and toners. aim of improving water quality and optimizing supply it to factories to produce pellets. occupation of the area. consumption, as well as significantly reducing During the 2018-2019 season, an intelligent pollution by avoiding the use of plastic, since Likewise, we have continued to introduce • Execution of Phase III of the installation of call management system was installed in bottles made from this material make up one projects to reduce our use of paper at the frequency inverters in both pumping groups and the lifts in the corporate office building that of the largest polluting elements due to their club, gradually transferring our internal in air conditioning fans. manages their allocation based on the traffic long degradation process.

60 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 61 Over this past season and under Royal Decree This season, we have continued to use organic 244/2019 on Self-consumption, the club has fertilizers in place of granulated fertilizers. In continued with its preliminary analyses and addition, we have our own machine to produce studies for the installation of a solar panel plant biological compost (compost tea). that will help cover the electricity demands of Real Madrid City. The amount of water used to water the pitch and gardens has been further reduced through The electric vehicle fleet is increasing gradually, the use of sensors with which we monitor the which also means that an alternative to this needs of the turf in real time, which allows us growing demand is being analysed with the to optimise irrigation as much as possible; also future installation of a solar canopy to power through the use of grass varieties and rooting Work continues to turn the Santiago Bernabéu into electric charging stations. layers that need less water and through the best stadium in the world. changes to the mulching in the gardens to The department responsible for ​maintaining the increase water retention. Moreover, irrigation football pitches and ornamental gardening at water is being treated magnetically to reduce our facilities at the Santiago Bernabéu stadium water consumption for irrigation, and all our machines; the analysis of energy production construction of the new roof planned as part and Real Madrid City, pays particular attention gardeners have received training and manual alternatives in our facilities using 100% of the remodelling works of the Santiago to protecting the environment. Its recurring sensors to control irrigation, as part of an renewable sources, especially solar energy; Bernabéu stadium, this pollution will decrease operations include continuous improvement irrigation management and control system the study of methods for drastically reducing substantially, eliminating the inconvenience plans in this area. aimed at maximizing efficiency in water use. In our consumption of plastic containers, and to neighbours and improving the quality of addition, the reduction of the cultivation time especially the water bottles used by our the environment, as well as improving the In the continuous search to reduce and eliminate of the turf to be installed in the stadium from players in their matches and training sessions; regulation of a comfortable temperature the application of chemical products, a biological 18 to 4 months had resulted in a reduction of and finally, improving the ecosystem of Real inside. In addition, this roof will incorporate control system has been implemented that has water consumption needs. Madrid City by introducing bee hives in nearby solar panels to generate part of the electricity allowed us to improve the ecosystem of our areas, which increases the biodiversity of our consumed by the stadium. gardens and pitches, in such a way that it is able We have also started using grow lights for gardens as well that of the surrounding areas. to effectively tackle common pests thanks to the recovery of the pitch using LED technology, The environmental sustainability of the building release of predatory insects or parasites, and which considerably reduces electricity The Santiago Bernabéu stadium remodelling will be reinforced with the complete renovation nematodes that compete against any potentially consumption. project has also been designed to ensure of its facilities and the application of energy harmful insects and diseases, eliminating the there is minimum impact on the environment, efficiency criteria, using renewable energy need to use any type of insecticide. All these measures have led to Real Madrid being including both the pitch project and the lighting sources associated to the building and systems awarded the STMA - Sports Turf Management in all its aspects following specifications that to cut the overall CO2 emissions through solar Thanks to manual weeding and the acquisition Association environmental certification with a maximize the care for natural resources and panels positioned on the roof, and the new of a machine that applies water at more than validity until 2020. minimize environmental impact. enveloping skin which will improve the natural 100ºC and scalds the weeds, herbicides ventilation. no longer need to be applied. We have also With a view to the future, the Environment Also, the construction of the new roof of the continued with a training and awareness Division has designed action plans that are still Santiago Bernabéu stadium will have a double Meanwhile, in Real Madrid City, the project programme for the gardening team to promote in their early stages, but which will ensure that composition, fixed to cover all seating and to convert all lighting to LED, including manual weed removal. Real Madrid remains committed to protecting retractable over the pitch, and will contribute the floodlights of the football pitches, is nature. These plans include: continuing to to the reduction of noise and light pollution progressing. With regard to turf diseases caused by fungi, calculate our carbon footprint and increase on the surroundings of the city of Madrid. the use of UV radiation technology for disease our commitment, studying emission reduction Currently the stadium, with a fixed roof much Real Madrid also extends this way of working, prevention, the application of fungi, bacteria plans; launching a project to plant trees to smaller than the one planned and without which respects the environment, via its and other types of microorganisms in the soil create a forest and in this way be able to offset the option of covering the central area, emits network of suppliers, including as part of have created an ecosystem that ensure a part of these emissions; ongoing studies to find all the lights and sounds that are produced the specifications for the supply of products natural balance of soils and thus reduces the greener alternatives to internal combustion during the celebration of sporting events and and services the requirement to comply with need to add fungicides. engines in all the club’s equipment and other shows directly to the outside. With the environmental obligations.

62 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 63 3.9.10 CREATION OF REAL MADRID NEXT supply and distribution of medical supplies in the fight against the virus. Real Madrid C. F., with the aim of staying at the REALMADRID.COM forefront of the sports industry, both in terms The Santiago Bernabéu stadium was made THE WORLD’S MOST VISITED FOOTBALL CLUB of sporting and social and economic success, available to store the donations of medical has launched Real Madrid Next. supplies received from different individuals WEBSITE FOR THE FOURTH YEAR RUNNING and companies, as well as the medical material Real Madrid Next is the brand under which that the club itself bought in large quantities. Real Madrid's innovation projects will be developed, with the collaboration of startups This material was delivered to different hospitals and companies whose aim will be to improve in Madrid, nursing homes, Municipal Police, the performance, benefits and sporting and National Police, Civil Guard, Red Cross, Madrid economic strength of Real Madrid, as well as City Council and the Community of Madrid: 1 Foundation 1,630,000 unique users* make use of the contribution of all its members. 2 Liverpool 1027000 58,800 pcs. of vinyl and nitrile gloves. Manchester United Real Madrid Next will focus on six work areas: 52,000 pcs. of disposable overshoe covers 3 789,000 e-health, performance, fan engagement, 15,103 pcs. of surgical masks. 4 Bayern Munich 538,000 generation of audiovisual content, cybersecurity 15,000 pcs. of personal protective suits. 5 FC Barcelona 477,000 and technological and social infrastructures. In 15,000 pcs. of safety goggles. Arsenal all of them we seek excellence and the greatest 13,300 pcs. protective sheets. 6 364,000 possible technological progress, which allow 3,840 pcs. of bottled water. 7 Chelsea 354,000 us to create our own exclusive tools adapted 2,813 pcs. of hydroalcoholic solution. 8 Juventus 332,000 to our way of working. This will enable us to 1,900 pcs. of blankets. 9 Manchester City 312,000 further improve the results of all the areas 500 pcs. of protective caps. that make up the club and, in particular, the 300 pcs. of cellulose towels. 10 PSG 197,000 sports area, digital transformation and the 250 pcs. of hand cream. * Users who visit the website at least once a month according to Comscore, worldwide digital audience tracker. globalisation of the entire organisation. 225 pcs. of disinfectant gel. 28 pcs. of hand and face disinfectant soap.

3.9.11 SUPPLY CENTRE The Real Madrid Foundation has collaborated with administrations and institutions every step Last March, when the health crisis caused of the way, donating more than 3,600,000 euros by the COVID-19 pandemic broke out, Real to help mitigate the effects of the pandemic. 3.10 The media Realmadrid.com had 32.7 million unique users Madrid, in collaboration with the National this season, totalling 71 million sessions and Sports Council, launched a project for the The supplies centre was closed on 8 May 2020. The Communications Department aims to more than 192 million page views. Consumption ensure that communication between members from mobile devices continues to increase and and the club is efficient and continuous. And already accounts for 76% of total traffic. it operates as a link between Real Madrid and the media around the world. This season, the website launched a new section dedicated to the remodelling of 3.10.1 Realmadrid.com the Santiago Bernabéu. In this space, fans can follow the works through the cameras Realmadrid.com was the world’s most visited connected to the 4 corners of the Bernabéu football club website for the fourth year façade. It also includes an extensive gallery running, with 1,630,000 unique users as of of photos and videos and the latest news 31 July (according to Comscore data). The about the transformation that our stadium is website is translated into eight languages with undergoing. Close to 100,000 users visited the inclusion of a German version this season this page during its first month of operation, alongside the already existing English, French, which shows how much interest there is in the Portuguese, Japanese, Chinese, Indonesian construction of what will be the best stadium and Arabic versions. in the world.

64 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 65 3.10.2 Publications Bernabéu, 800 copies of which are distributed 3.10.3 Press to accredited professionals. The club has 14 publications throughout the In the 2019-20 season, until the suspension issued was close to 500. For the game against season headed by the magazine Hala Madrid, For each Champions League draw, Real Madrid of all competitions, media activity during Barcelona, between 700 and 800 press passes one of the most widely distributed football club publishes an exclusive hospitality guide for the our participation in the Champions League were issued. In basketball, there have been magazines in the world. Issued quarterly, it teams that must face ours in this competition. resulted in the processing of between 550 nearly 2,000 press passes issued between the has a circulation of almost 217,000 copies and The information in the Champions League and 650 press passes on average per game. League and the Euroleague. The stars of our publishes articles on the club’s most important dossier is updated for each draw during the For the match against Manchester City, up football and basketball teams appeared more news. It is known for its carefully selected season. to 800 press passes were issued During the than 1,700 times in interviews, mixed zones content and high-quality photos. The version League, the average number of press passes and press conferences. of this magazine for kids and teenagers, Hala Every week, the club launches an online Madrid Júnior, with a circulation of 63,000 Members Newsletter containing the latest Real copies, is sent to members and Madridistas Madrid news and any information of interest aged between 7 and 14. for our members. An overview of the club’s season is covered in the reports published for Hala Madrid online, was sent by email to about the General Assembly of Delegate Members The 250,000 members and Madridistas outside Annual Report, the Annual Report Summary, of Spain. It is published in two languages: the Economic Report and the Corporate Social Spanish and English. Responsibility and Sustainability Report are published jointly in four volumes for the most The club publishes a matchday programme, important event of the season for the social Grada Blanca, for league matches held in mass. the Santiago Bernabéu. The magazine has a circulation of 30,000 copies that are distributed In addition, the Real Madrid Foundation throughout the stadium. A press kit is also publishes an Annual report and an Economic published for the league matches in the Santiago report, as well as a quarterly magazine.

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Hala Madrid online LIGA 2019/20 LA REVISTA EXCLUSIVA DE LOS MADRIDISTAS Press Kit

CAMPEONES Grada Blanca SUPERCOPA DE ESPAÑA 2020 La foto oficial del Online Members Newsletter Así se hizo Real Madrid Ramos, Marcelo, Hazard y Modric en el once mundial de la FIFA Hasta siempre, Champions League Dossier Campeones LORENZO SANZ COPA DEL REY 2020 Real Madrid Foundation magazine CAMPEONES SUPERCOPA DE ESPAÑA 2019/20 Annual Report Summary of the Annual Report Financial Statements Corporate Responsibility Report Real Madrid Foundation Annual Report Real Madrid Foundation Economic Report Campeones Liga 2019/20 Campeones Copa del Rey 2020

66 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 67 3.10.5 Social Networks With this large audience and its ability to adapt content to each channel, the number of video Real Madrid is the sports institution with the views has surpassed 4,700 million. June was largest audience on social networks, with 344 particularly noteworthy, a month in which we million followers across Facebook, Instagram, generated 208 million views, setting a new Twitter, Youtube, Snapchat, Twitch, Giphy, monthly record for any sports club on the Weibo, Line, Douyin, Wechat and Toutiao. platform. This year the club opened an account These networks represent the channel on Twitch, the live content distribution platform with the largest audience for the club. In (owned by Amazon) focused on the gaming addition to interacting directly with our fans, sector, with the aim of gaining a presence in these platforms support the club’s different it and reaching a wider audience. During those business areas: sponsorship, Bernabéu Tour, months we gave greater visibility to the eSports e-commerce, website, digital licenses, etc. competitions in which our players participated, and we launched RMPlayground, a space where During the season, Real Madrid consolidated we generated content based on the FIFA20 Broadcast on Realmadrid TV of a match preview its top ranking position on the major social game. In the first episode, Marco Asensio at the Santiago Bernabéu. media platforms, with 90 million followers on received the Formula 1 driver Carlos Sainz. Instagram, 111 on Facebook and 34 on Twitter. Towards the end of the season we continued to The club is also top in the new leading social adapt content to the platform, taking advantage media platform in China (Douyin) with almost of its interactive nature and requesting more 3.10.4 Realmadrid TV The most viewed broadcasts were the preseason four million followers. and more participation from our fans. games played in July and August 2019. The Realmadrid TV ended the year with record top two correspond to the clash with Roma viewing figures. During the season it was on 11 August 2019: the penalty shoot-out was watched by more than 26.7 million viewers, watched by 1,284,000 viewers and the match 13% more than the previous season. The by 1,104,000. Both exceeded 11% of audience season lasted longer than usual: it started on share. The third most viewed broadcast was the 1 July 2019 and ended on Tuesday, 25 August friendly against Salzburg, with a 9.1% share. 2020, with victory in the UEFA Youth League. Despite the fact that there were no sports The celebration of the 34th League title was competitions for three months, the channel seen by 127,000 viewers, a 1.2% audience also achieved its best audience share figure share. In the first hour of the special, the with 0.32%. channel archived a 2% share and reached almost 300,000 viewers. In March 2020, Realmadrid TV broke its absolute record of viewers. This was month The most watched programme on Realmadrid with the best viewing figures, with 10.7 million. TV was Minuto a minutoduring the first team's In total, there were 800,000 more viewers than matches, with an average of 93,000 viewers in March of the previous year, an increase of and a 0.68% share. The minute-by-minute almost 8%. for the Clásico on 18 December was seen by 167,000 viewers, with a 1.1% audience share. The second milestone of the season for And the pre-match build-up for the Clásico Realmadrid TV came in April, which became on 1 March was followed by 159,000 viewers, the month with the highest average daily with a 1.1% share. The pre-match build-ups viewership, with an average of 1.7 million in La cuenta atrás accumulated a 0.64% share daily viewers. This means an increase in and 69,000 viewers, while El análisis, after the the accumulated average audience of 42% matches, was seen by an average of 49,000 compared to April 2019. viewers with a 0.54% share. Casemiro, Courtois, Kroos and Isco in an Audi shoot.

68 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 69 3.10.6 Real Madrid App audio-visual content, which provides round-ups, multi-angle replays, special cameras offering This is the club’s official app and can be exclusive images; on-demand matches and the downloaded from the main mobile stores club’s television channel, Realmadrid TV. (Android and iOs) and already has more than nine million downloads since its total upgrade This year the app has been 100% revamped and relaunch in May 2015. and its usability has been improved by incorporating new forms of gamification with The app adapts its contents and settings the first version of fanconnect. The app has according to whether it is accessed from the a new design and other improvements mean stadium or outside it. And it expands its contents that users can now purchase products at the on game days complementing the televised stadium bars or open content without having to experience of the match as a second screen register. All these new features are added to the with information and exclusive live images, with other functions that members and Madridistas the more detailed information and providing the can enjoy with just a few clicks. The Realmadrid opportunity to communicate live during matches App is available in English, Spanish, Arabic, with all the fans spread around the world. One Indonesian, Japanese, Portuguese, French and of the most attractive features of the app is its recently, in German, also.

Interview with Benzema on the set of Realmadrid TV.

70 CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY REPORT REAL MADRID 2019-2020 2019-2020 FINANCIAL YEAR OBLIGATIONS FULFILMENT 71 Printed in January 2021, in Madrid Published by: Real Madrid C.F.