Annual Report Annual Report / 2018/2019 2018/2019 1 Index 1 Letter to the Stakeholders ...... 04

2 AC Milan 2018-2019 ...... 05

3 First Team ...... 08

4 AC Milan Women ...... 12

5 Youth Sector ...... 15

6 CSR ...... 19

7 Fondazione Milan ...... 23

8 Milan Academies ...... 30 • Milan Junior Camp • International Academies

9 Stadium Operations ...... 36

10 Ticketing ...... 38

11 Fan Engagement ...... 41 12 Sponsor ...... 44

13 MMH ...... 49

14 HR ...... 52

15 Compliance ...... 57

16 Direzione Generale ...... 61

17 Finance ...... 71

18 Facilities ...... 76

Annual Report 2018/2019 1

LETTER TO THE STAKEHOLDERS – Chairman Paolo Scaroni

This year AC Milan celebrates the 120th anniversary of its foundation and I am more than happy to be able to emphasize our Club’s leadership in terms of corporate sustainability.

AC Milan is very aware of its leadership role within the Italian and international social context and for many years it has been fostering a series of wide-ranging initiatives. And this year, the new ownership and the new management gave a boost to the Club’s initiatives.

This sustainability report, now in its sixth edition, includes, in an organic and structured way, all the topics linked to the Corporate Social Responsibility department that are all the more key to our performances. Detailed reports on all the Club’s departments intertwine with focuses and highlights relevant to the important projects we carried out during the past season. The global reach of a Club like AC Milan, which by its very nature cannot be limited to the mere sporting activity, rises in a meaningful way.

The result is a true fresco of our Club, a portrait of the initiatives carried out day after day away from the spotlights which bring AC Milan closer to the people and the territory and with a simple but major goal: to open the doors of the Club to the fans and to knock down all the barriers.

Sempre Milan, Paolo Scaroni

/ Annual Report 4 2018/2019 2

AC MILAN 2018-2019 First team Season 2018/19

In the 2018/2019 season, AC Milan First Team participated in four official competitions: the Serie A championship, the UEFA Europa League, the Italian Cup and the Italian Super Cup final.

During the summer 2018 transfer market, AC Milan signed Gonzalo Higuain and Mattia Caldara from Juventus FC, Samuel Castillejo from Villareal CF, Diego Laxalt from Genoa CFC and Tiémoué Bakayoko dal Chelsea FC, and the out-of-contract José Reina, Ivan Strinić and Halen Halilović. The team, led by Gennaro Gattuso, ranked fifth in the domestic championship. AC Milan scored 68 points: 19 wins, 11 draws and 8 defeats, with 55 goals scored and 36 conceded.

The Club’s participation in the UEFA Europa League ended during the group stage, with AC Milan ranking 2nd with 10 points along with Olympiacos. The Club was eliminated due to the worst goal difference compared to the Greeks. In the six matches played, AC Milan collected 3 victories, 1 draw and 2 defeats, with 12 goals scored and 9 conceded. Finally, in the Italian Cup, AC Milan eliminated Sampdoria in the round of 16 with a 2-0 win at Marassi thanks to Patrick Cutrone’s brace scored in extra time. The Brazilian player Lucas Paquetà made his début with the Rossoneri during this match. Then AC Milan beat Napoli 2-0 thanks to a brace scored by the new signing Piatek. The semi-final has been a new version of the double challenge of the previous season, with SS Lazio again on AC Milan’s road to the final, but this time SS Lazio eliminated AC Milan: 0-0 at the Stadio Olimpico and SS Lazio’s victory 1-0 at San Siro. In this edition of the Italian cup, AC Milan collected 2 victories, 1 draw and 1 defeat, with 4 goals scored and only 1 conceded. On 16 January 2019, AC Milan challenged FC Juventus in the Italian Super Cup Final played in Jeddah in Saudi Arabia. FC Juventus won the cup thanks to Cristiano Ronaldo’s 61st minute header.

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Annual Report / 2018/2019 5 Season review - The best matches

AC Milan vs AS Roma 2-1 AC Milan’s first match vs CFC Genoa was postponed due to the collapse of the Morandi Bridge in Genoa, then AC Milan lost vs SSC Napoli in Naples and finally the Team were hugged by their supporters on August 31, 2018 vs AS Roma. In front of 58k spectators, Kessié scored the first goal but Fazio scored the draw for AS Roma. Nearly at the end of the match, Patrick Cutrone’s 95th minute goal made San Siro explode and gave AC Milan their first three points. AC Milan vs CFC Genoa 2-1 / SC Udinese vs AC Milan 0-1 In a very difficult Autumn due to the many injuries, AC Milan played 2 matches in four days: on October 31 at San Siro the match vs CFC Genoa that was postponed and on November 4 the away match vs SC Udinese. Star of the two matches was Alessio Romagnoli, who scored two goals and gave six points to the team: a 91st minute lob against CFC Genoa and a 97th minute great left-footed strike against SC Udinese. Atalanta vs AC Milan 1-3 While struggling for the qualification to the UCL, AC Milan played the away match in Bergamo on February 12, 2019 and challenged a team in very good shape willing to continue its positive trend. After Freuler’s goal for Atalanta, AC Milan tied thanks to Piatek’s magic almost at the end of the first half. During the second half, Gattuso’s men won the match thanks to the goals scored by Calhanoglu and Piatek’s brace. AC Milan vs Frosinone 2-0 The last home match of the season has always a special meaning, even more so when there are important goals at stake. On May 19, 2019, AC Milan challenged Frosinone at San Siro and had to win to continue to run for the qualification for the UCL. Donnarumma saved the result by saving a penalty at the beginning of the second half, while Piatek and Suso gave the 3 points to the team on the day of the farewell of three historical footballers: Ignazio Abate, Cristian Zapata and Riccardo Montolivo.

/ Annual Report 6 2018/2019 THE NUMBERS

TOP SCORER: PIATEK, 11 GOALS

BEST ASSIST-MAN: SUSO, 9 ASSIST

MATCHES PLAYED: 2449 victories, 13 draws and 12 defeats

PENALTIES AWARDED: 4, 1 MISSED (Higuain vs Juventus)

GOL SCORED: 71 PENALTIES AGAINST: 5, 1 SAVED GOL CONCEDED: 47 (Donnarumma vs Frosinone)

THE STAFF

COACH: GENNARO GATTUSO

DEPUTY COACH: LUIGI RICCIO

TEAM MANAGER: ANDREA ROMEO

GOALKEEPERS’ COACH: COACHES: VALERIO FIORI, LUIGI RAGNO MASSIMO INNOCENTI, FRANCESCO SARLO

HEAD OF FITNESS COACHES: MATCH ANALYST: BRUNO DOMINICI MARCO SANGERMANI

FITNESS COACHES: MILAN LAB: MAURO BALDUS, DINO TENDERINI LORENZO CIPRIANI, LUCA MONGUZZI, GIORGIO TENCA, MARCO VAGO

Annual Report / 2018/2019 7 3

Pre-season

After the kick off of the pre-season at Milanello on July 9, the team played many friendly matches including their début against Novara (2-0 for AC Milan thanks to the goals scored by Suso and Calabria).

FIRST TEAM - ICC 2018

In summer 2018, AC Milan participated in the International Champions Cup, the summer competition held in the US from July 22 to August 5, 2018. During these ten days AC Milan challenged top international team in US iconic stadiums:

MILAN-MANCHESTER UNITED 1-1 (9-10 d.c.r.): Wednesday July 25 at the StubHub Center in Los Angeles TOTTENHAM-MILAN 1-0: Tuesday July 31 at the U.S. Bank Stadium in Minneapolis (Minnesota) MILAN-BARCELLONA 1-0: Saturday August 4 at the Levi’s Stadium in Santa Clara (Bay Area)

From California to Minnesota, the 2018 ICC was the perfect occasion to consolidate and develop productive relationships in the US and to ensure a first-class visibility to our commercial partners.

/ Annual Report 8 2018/2019 AC Milan and PUMA in the US

The partnership with Puma, the Club’s new Main Sponsor, included also two exclusive events in California, with the participation of many footballers of the First Team.

Puma event in los angeles Launch of puma’s third kit in san francisco On July 24, 2018, AC Milan participated in an exclusive event downtown Los Angeles, during which seven On August 2, 2018 evening Locatelli, Romagnoli, Rossoneri where PUMA’s guests. A total-Rossonero Calabria, Cutrone and Kessie participated in the event party, fittings, colors, food and beverage, organised by at the Street Event organised by Puma for the launch Puma to celebrate the new partnership in the US. The of the third kit. In a very characteristic location, the 5 Donnarumma brothers, Borini, Bonaventura, Bonucci footballers posed for pictures and signed autographs and Kessié were involved in a pleasant evening at the for the many supporters attending. iconic Californian venue The Reserve.

Annual Report / 2018/2019 9 Massaro meets the AC Milan Club Toronto

During the 2018 ICC, AC Milan was a star both in the US and in Canada. During the US tour, the club has organized various meetings with the fans. First stop in Toronto, where on July 25, 2018, the Gloria Rossonera Daniele Massaro met AC Milan Club Toronto, bringing to the Canadian fans a very welcomed surprise: the UEFA Champions League cup, one of 7 won by the Diavolo.

Meeting the Minnesota Vikings Santiago Bernabéu Trophy

A tour in the US also means to embrace America’s After the tour in the US, the Rossoneri continued their sporting culture, a unique experience that occurred on pre-season training in Milanello before the last friendly July 28, 2019 at the wonderful Performance Center of match of the summer on August 11, 2018 in Madrid the Minnesota Vikings. Fabio Borini, Davide Calabria, against Real Madrid. The home team won 3-1 thanks to Patrick Cutrone, Alen Halilovic, Manuel Locatelli the goals by Benzema, Bale e Mayoral for Real Madrid and Stefan Simic met the Vikings during their first pre- and by Gonzalo Higuain for AC Milan. season training day. Great enthusiasm, organisation and cutting-edge structures are the top qualities of the American Sports that our footballers experienced during the one-hour and half visit to one of NFL’s most successful teams.

/ Annual Report 10 2018/2019 First Team and Primavera Medical Area

Three doctors work in the Milanello Sports Center: • Stefano Mazzoni: AC Milan Medical Director • Mario Brozzi: First Team Doctor • Lucio Genesio: Primavera Doctor and First Team Support

The working group operating at Milanello is completed by: • Roberto Morosi: Physiotherapy Area Coordinator • Marco Paesanti: Massophysiotherapist • four physiotherapists, who work both on rehabilitation from injuries and preparation of players before entering on the field • two re-activators, whose intervent is fundamental for those players who need a re-initialization phase after a period of forced inactivity

This team is actively supported by valuable consultants: • Pierluigi Gennari: Podiatrist • Stefano Arata: Chiropratic Area • Francesco Avaldi: Nutritionist • Alberto Dolci: Laboratory Doctor

Annual Report / 2018/2019 11 4

MILAN WOMEN

STAFF FINTESS COACH: LORENZO FRANCINI

GOALKEEPERS’ COACH: COACH: CAROLINA MORACE CHRISTIAN BERRETTA DEPUTY COACH: NICOLA WILLIAMS

TEAM MANAGER: ROBERTO ANGIONI

SECRETARY: FABIO VEZZOLI MATCH ANALYST: ROBERTO FERRARI

RESPONSIBLE OF WOMEN’S FIRST TEAM: ELISABET SPINA

DOCTOR: ALBERTO CALICCHIO PHYSIOTHERAPY AREA COORDINATOR: CRISTIANO PAROLINI PHYSIOTHERAPISTS: LUCA MAZZARELLI, ERIKA RANCATI

/ Annual Report 12 2018/2019 Season Review

Season 2018/19 marks the début of AC Milan Women.

From season 2018/19, and for the very first time, AC Milan has its women’s first team participating in the Serie A championship. In June 2018 the Club purchased ACF Brescia and the brand new Rossonere team started this new adventure with coach Carolina Morace. The Serie A championship, formed by 12 teams, kicked off on September 21, 2018 and ended on April 20, 2019.

The team played the home matches in four different stadiums: • Centro Sportivo Vismara • Stadio Brianteo di Monza • Franco Ossola di Varese • Centro Sportivo di Riozzo

AC Milan ranked third and fought until the very last minute for the victory of the championship and for the qualification for the UCL. Just before the kick off of the last match, AC Milan was only two points behind Juventus and one point behind Fiorentina. However, AC Milan was defeated, and Juventus and Fiorentina won therefore leaving unchanged the final ranking with Juventus winning the championship and Fiorentina qualified for UCL.

Valentina Giacinti, with 21 scores, was top scorer followed by Daniela Sabatino with 17 scores.

Annual Report / 2018/2019 13 The participation in the Italian Cup stopped in the semi-final against Juventus that won the away match at San Siro 2-1 and tied 1-1 at Vinovo. With reference to the previous matches, AC Milan won the very first women’s derby against Inter (5-3 one match), and against Sassuolo (a 2-0 win both at home and away).

In the first half of the season AC Milan was never defeated and won the three top matches against Fiorentina (3-2), Juventus (3-0) and Roma (2-1). AC Milan defeated the Giallorosse also in the second leg match (4-1).

We’ll also remember the 2018/19 season because Italy managed to qualify for the World Cup after 20 years. 7 Rossonere received the international call-up: Valentina Bergamaschi, Laura Fusetti, Valentina Giacinti, Manuela Giugliano, Daniela Sabatino and Linda Tucceri with Italy e Thaisa Moreno with Brazil.

/ Annual Report 14 2018/2019 5

YOUTH SECTOR

AC Milan’s Youth Sector is key to Italian and international football. Many talented kids grew in the Club’s youth sector and became professional footballers playing with national and international Clubs. The Club and the many professionals who work in this field and who dedicate their commitment and professionality every day to the growth of the young “diavoli” are more than pleased with these results.

The work carried out by the youth sector is mainly focused on the technical and human growth of the young footballers and the Metodo Milan (ie the AC Milan Method) is the tool through which we achieve our main goal: the all-round growth of young talents’ potential.

Women’s youth sector deserves particular attention as, in the last years, it has become a reference point among the many activities carried out by the Youth Sector and the number of footballers and teams involved has grown more and more. Season Review

306 young footballers, professional footballers, divided in 11 men’s teams (Primavera, Under 17, Under 16, Under 15, Under 14, Under 13, Under 12, Under 11, Under 10, Under 9 and Under 8) and 5 women’s teams (Under 15, Giovanissime 2005/2006, Esordienti 2007, Pulcine 2008 and Pulcine 2009/10) were part of AC Milan’s youth sector in the 2018/19 season.

Annual Report / 2018/2019 15 143 people were part of the staff: 66 between coaches and fitness coaches, 38 accompanying managers and 38 scouts.

The Centro Sportivo Vismara, the headquarters of the Youth Sector, can count on 23 employees, between sporting and organisational secretariat, along with video, IT and fitness areas, gymnasium and storehouse.

31 youngsters and 4 tutors are hosted at the Convitto “Fondazione Clerici”.

Many very young talents participated in international tournaments, particularly the Esordienti and the Pulcini.

In fact, AC Milan youth sector’s philosophy is to broaden the technical and experiential background of our young champions so they can build upon these experiences for their personal and sporting growth. The various teams, part of the Youth Sector participated in 86 tournaments.

Objectives:

The main objective of AC Milan Youth Sector has always been to train and nurture players, but at the same time to train and to nurture men. The moral qualities are as important as football ones.

At a sporting level, the goal for the 2019/20 sporting season is to bring the Primavera team back into the top championship (Primavera 1) and hit the final stages in the national U17 / 16/15 categories.

/ Annual Report 16 2018/2019 Women’s Youth Sector Structure and competitions

75 girls have been registered for the season 2018/2019 divided in the following categories:

• Primi calci U9 (n. 11) • Pulcine U10 (n. 12) • Pulcine U11 (n. 11) • Esordienti U12 (n. 19) • Giovanissime U15 (n. 22)

For the human and technical coaching of the footballers, the Club supplied: • n. 1 head coach (Uefa A) • n. 1 coach (Uefa A) • n. 4 coach (Uefa B) • n. 1 Fitness coach • n. 3 interns (Athletic area) • n. 1 goalkeepers’ coach • n. 1 sports psychologist • n. 1 Nutritionist • n. 1 organisational secretary

AC Milan participated in the U15 women’s national championship with its Giovanissime U15 and accessed the regional phase and then the inter-regional phase held on June 1-2, 2019 at the CPO in Tirrenia (PI).

The Pulcine U10-U11 and the Esordienti U12 participated in the autumn and spring tournaments (Campionati provinciali di Milano). The Primi Calci U9 team has not participated in any championship and played many friendly matches during the week ends.

The Esordienti U12 participated in the Danone Nations Cup Femminile U12. 80 teams enrolled for the 2019 edition with a higher participation of Serie A, Serie B and Lega Pro professional teams (37), that lined up an Under 12 team pursuant to the provisions of the National Licences. AC Milan played the national final scheduled during the 11° Grassroots Festival on June 15-16, 2019 at Coverciano.

Annual Report / 2018/2019 17 Method

From a methodological point of view, we work on the three macro-areas relevant to the girls’ psycho-physical well- being (technical-tactical-relational).

In this perspective, the girls are considered not only as individuals, but as young athletes included in a wider network of relationships and bonds, with coaches, parents, managers and teammates. With this vision clear in mind, we identify the most appropriate lines of development and we adapt them to meet the girls’ needs; at the base of the teaching / learning process there are moments of dialogue, reflection and co-responsibility.

The method, while respecting and accepting diversity, has also an important social value: the responsible involvement of all the actors leads to a healthy sharing of cultures and values, ideal for the development and growth of the young girls.

The assessment of the performances takes place within a multi-year training course, during which we pay particular attention to the girls’ personality and the different stages of growth (childhood and adolescence): key to the method is the full compliance with the different learning curves and the full internalization of the methodology. We focus on the gameplay, the knowledge and the skills developed by the footballers as well as the level of the relationships they are able to establish with all the people who interface in various ways with them.

/ Annual Report 18 2018/2019 6

CSR

The acronym CSR (Corporate Social Responsability), indicates the companies’ voluntary integration of the social and environmental concerns in their commercial activities and in their relationships with the parties involved.

The Stakeholders are those subjects who shape the Group’s initiatives and who contribute to success of the company. The Corporate sustainability is the willingness to consider, in the business development plan, all the elements that ensure its long-term success: financial, economic but also social, cultural and environmental elements.

The CSR department is the point of reference for AC Milan’s internal and external stakeholders (shareholders, employees, registered professionals, suppliers and supporters) who contribute to both the definition and development of AC Milan’s environmental and social responsibility policies and activities.

CSR Department’s activities Drafting of the sustainability report

The CSR department drafts the sustainability report that is: • A communication tool between AC Milan and its stakeholders. • A tool to monitor the initiatives and the Club’s governance relevant to sustainability. Tour of milanello sports center

AC Milan gives national social welfare institutions and special categories of supporters the chance to visit the Milanello Sports Centre and to watch the First Team’s training sessions. During these visits, all participants may also experience other activities like taking photos with the footballers and the tour of the sports center.

During the 2018/2019 season we hosted more than 150 fans in 9 tours.

Annual Report / 2018/2019 19 The “fourth category” project:

Fourth Category is the first Italian 7 a-side football tournament, addressed exclusively to athletes with cognitive- relational disabilities. The project is based on a memorandum of understandings undersigned before the Senate on January 18, 2017 and is managed in collaboration with the Centro Sportivo Italiano (CSI).

The format is the following: 1. Enrollement of the athletes to CSI (for insurance purposes) 2. Enrollement to the special register of LND-FIGC Regional Committees 3. Use of LND-certified pitches, AIA referees, federal justice; the level of the tournament is comparable to LND’s able- bodied footballers’ third category.

Fourth Category organises the 7 a-side football tournaments in May with squads and players’ lists; the name of the tournament refers to a higher level of the amateur sector specifically reserved for special athletes managed by FIGC and CSI Regional Committees. This project involved 7 regions in two years; the winners of the regional tournaments play the Italian Cup. Each Fourth Category tournament is structured in three levels (fourth, fifth and sixth category) so athletes may challenge their peers (ie with the same level of cognitive and physical performances). Play Out and Play Off are scheduled at the end of the season.

All the teams are legally “adopted” by the Clubs which provide for kits, limits to protect the use of the Clubs’ brands and joint initiatives both with the other Clubs and with the adopted team.

AC Milan adopted Briantea and we took the team at the Special Camp in Switzerland in August 2018 to participate in the event organised by the “Football is More” Foundation.

Starting from the 2017/2018 AC Milan adopted another ASD, the “Mai Soli”, based in Rome and we supply the match kits and the tracksuits for the coaching staff.

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/ Annual Report 20 2018/2019 Tickets for san siro

AC Milan supplies 20 tickets for free per home match to the kids being treated in the hospitals in Lombardy and to associations and organizations operating in social services.

Furthermore, during the 2018/2019 season, 2500 disabled fans attended, free of charge, AC Milan’s home matches Visits to the hospitals

AC Milan confirms its closeness to the children being treated in Milan’s hospitals. During the season 2018/2019, various footballers of the men’s First Team and of the women’s team visited the Buzzi, Istituto dei Tumori, Niguarda and Policlinico di Milano hospitals, to give some cheerful moments. “San Siro per tutti” project

As part of its CSR policy, AC Milan, is going to develop many initiatives to make the stadium experience available to all fans, all the more inspired by the path taken by UEFA through the CAFE (Center For Access of Football Accessibility Center). of Football in Europe).

The match AC Milan vs Frosinone on May 19, 2019, in the presence of Ivan Gazidis and of a delegation of the Istituto dei Ciechi di Milano led by the chairman Rodolfo Masto, was the first important step towards the creation of an exclusive stand, placed at pitch level, dedicated to our blind and visually impaired fans.

This initiative provides for two speakers who, from the stadium’s press box, tell every detail of the match to all our special fans requesting the service. The speakers’ voice-over is broadcast through a dedicated radio feed thanks to a special device that fans find directly on their seats. The service, permanently active since the first match day of the 2019/2020 championship, is going to be integrated by a team of stewards supporting blind and visually impaired fans throughout their stay at the stadium. The “San Siro per tutti” project is an important step in the inclusion path whose objective is to allow all Rossoneri fans to enjoy a unique and immersive experience at San Siro during the matches.

Special fans’ requests: We are the reference point of our special fans’ requests for help and support.

OBJECTIVES

• To relaunch of our Physical Activity Literacy programme “Muoversi Bene per Crescere Meglio” addressed to physical education teachers in Italian primary schools. • To consolidate the “San Siro per Tutti” project for blind, visually impaired and deaf fans • To implement the Club’s CSR committee • To involve the young footballers of men’s and women’s youth sector in the activities organised by AC Milan and Fondazione Milan.

Annual Report / 2018/2019 21 Interview with Francesca Scarpa – Corporate volunteering

1. How and when did you launch AC Milan’s corporate volunteering? Our Club has proposed us the Corporate Volunteering Project three years ago. I believe everyone, and above all those who then actually joined the initiative, wanted to have the opportunity to combine their work with regular solidarity and volunteering activities. I therefore participated with great curiosity in the event organized by Martino Roghi, AC Milan’s CSR Manager, during which several associations linked to the world of volunteering showed us how they work with the various health institutions and hospitals in the area. Obviously, each of us has been able to choose among the various initiatives, based on our sensitivity and personal inclinations.

2. Which path did you decide to pursue? Together with my colleagues Stefania Carmignani and Patrizia Ortolan, we immediately started collaborating with Lene Thun, an association operating actively in paediatric oncology units in many hospitals offering clay and pottery classes. In particular, after having attended various training courses, we began to carry out our volunteering work in the paediatric oncology unit of the Istituto dei Tumori di Milano and at the Istituto Besta paediatric psychiatry unit. Two completely different realities. We propose to the children who are being treated in these institutes activities and works consistent with their state of health and with the different types of treatments.

3. How do you develop your relationship with the children? A key concept that we must never underestimate when we carry out these activities, is that we are pros who are performing a real job. Obviously, in a very natural and spontaneous way, we get closer to the children and their stories; by spending some time with them, we begin to recognize their emotions and interact in the best way with them. Surely, my best memories are related to the stories of the children who managed to defeat their disease. Recently, I was lucky enough to serve on a day when a girl named Chiara finally left the hospital, after finishing her treatment. It was a fantastic experience and the best reward for our activity was to be able to see her happiness when she came to say goodbye and then to meet her again months later in a great shape, with the hair that had grown longer and with her weight back to normal.

4. How do you manage to bring AC Milan inside these activities? We never present ourselves as AC Milan’s employees. However, sometimes due to the intrinsic nature of the work we offer to children, our jobs help a lot to give life to truly special moments. During the project “La sfera dei desideri “, pursuant to which children had to illustrate their dreams and desires, I talked with a child who had reproduced an image linked to AC Milan. While talking about his work, he told me that he had met Paolo Maldini during visit made by Paolo to the hospital a few weeks before. After receiving the photo of their meeting from the child’s mother, I sent it to Maldini, who answered with a voice message supporting and encouraging the boy. That kid was so happy….

/ Annual Report 22 2018/2019 7

FONDAZIONE MILAN

Fondazione Milan is a public charity linked to the wider scope of AC Milan’s Corporate Responsibility. It was founded in 2003 and as the Club strongly wanted to set up a structure to respond to the needs of the community, in particular for those who find themselves in situations of hardship.

Fondazione Milan’s vision is closely linked to Sports’ most virtuous values as sports are an extraordinary tool for education, aggregation and inspiration for young people and adults. Our identity leads us to embrace the demands of children and young people hindered by urgent social issues, such as poverty, violence and discrimination. In this context we want to be as proactive as possible in order to be the spokespersons of these needs, creating specific programs that can really be useful to young people for their personal development and for their effective integration into the community.

Now in its sixteenth year of activity, Fondazione Milan has promoted more than 150 projects, while more than 10 million euros have been donated to 118 organizations, located in 18 countries around the world, with an involvement of about 5000 kids every year on average.

Annual Report / 2018/2019 23 Season Review

The projects carried out by Fondazione Milan come from the desire to tackle educational poverty, social distress and many other difficult situations through sports. The primary role that Sports play within Fondazione Milan projects makes our activity unique, specific and identifiable.

These are the grounds of three key projects: • Sport for Change: is the project that uses sports as a driver of change to fight exclusion and social discrimination, and it is dedicated to young people aged 6 to 18 who are in situations of distress. Fondazione Milan develops a presence on the territory to support the network of organizations and associations that help children and young people in difficult conditions, also bringing relief to children involved in emergencies. To date, Fondazione Milan is active with 5 units across Milan’s territory and in Lombardy, 4 units in Italy and 5 in the rest of the world.

• Sport for All: this program, created in collaboration with non-profit organizations that promote sports, health and integration, was born with the aim of supporting sports activities practiced by people with and without disabilities. The initiative aims to create a model and a cultural context that boosts the integration of disabled people in the community, as Integrated Sports may represent an added value for everyone. The main issue we try to deal with is the low number of children with disabilities approaching sports, drastically lower than the potential base in Italian schools. The lack of appropriate structures, inadequate training of dedicated personnel and lack of culture relevant to integrated sports are the main factors that hinder the spreading of sports activities for disabled people.

• Fondazione Milan in the Community: : the aim of this project is to support local initiatives promoting Sports values, respect and fair play. We organise meetings between young people and AC Milan’s endorsers in schools and hospitals to convey Sports’ most virtuous values and to bring relief and comfort to people who live in difficult situations. Among the various activities there is also the organisation of one-day tours at Milanello for disabled fans and their accompanying persons to watch the First Team’s training sessions.

KPI – Sport for Change – Dati 2018 KPI – Sport for All – Dati 2014

Early School Leavers in Italy 13,8% Pupils with disabilities 209814 Minors reported by the judicial authorities 15372 Autistic kids 1% Minors in custody 5430 Pupils with intellectual disabiliy 148700

KPIs – Fondazione Milan Years of Activities 16 € distributed by Fondazione +10M Youngsters involved every year 5000 Countries involved 18 Projects realised 150 Organisations supported 118

/ Annual Report 24 2018/2019 Project Sport4All

Sport4All is a sporting and social project that was created with the aim of promoting sporting activity practiced by people with and without disabilities, in order to boost social cohesion and integration in our society. The project is based on a key concept: sports practiced by mixed groups, both abled and disabled people, is an extremely effective tool to enhance diversity as a resource for athletes’ personal growth and for the growth of the community.

Therefore, the project provides for the organization of various multidisciplinary and integrated sports courses and events, led by qualified educators and teachers, at the PlayMore Sports Center! in via della Moscova 26, in Milan.

We also organise training sessions, workshops and meetings among the various partners of the PlayMore! network to boost the sharing of experiences and of the best practices in the world of integrated sports. The variety and quality of the integrated sports proposed, the centrality of PlayMore! located in the heart of Milan, the professionalism of the staff involved, the experience of the network partners and the support of Fondazione Milan are the main strengths of the Sport4All project.

The abovementioned elements make the PlayMore! sports center a model of excellence within the city of Milan, thanks to its capacity to accommodate an ever- increasing number of recipients, with and without disabilities, beyond all differences and prejudices.

Annual Report / 2018/2019 25 Sponsoring organisations

The project Sport4All is realised by PlayMore!, a no-profit organisation that promotes sports, health and integration since 2010 with Fondazione Milan’s participation and support.

The relationship between PlayMore! and Fondazione Milan has started in 2016 thanks to the collaboration in the project PlayMore! Special, an integrated soccer school for people with or without disabilities. Between seasons 2016/17 and 2017/18, hundreds of people approached sports thanks to PlayMore! Special through weekly training sessions and special events.

The new Sport4All project has been designed to give continuity to the work done before, based on the same integrated sports philosophy and aiming to extend it to more recipients, thanks to a greater number of sports disciplines. PlayMore! partners’ experience since 2016 is an important capital for the successful outcome of future initiatives at the center. Venue

The Centro Sporivo PlayMore” is the home of the project Sport4All. A venue where physical activity becomes an opportunity to meet, to get involved and to grow. The center is located in Via della Moscova 26, downtown Milan, well connected through public transport.

The structure, owned by the Municipality of Milan, is managed in concession by PlayMore!.

The multifunctional structure is 4,000 square meters and there is a five-a-side football pitch with synthetic grass, a basketball court and a beach volleyball court, all illuminated. There is also a race track with 4 lanes and a play area for children with trampolines. There is also a 120 square metres indoor structure dedicated to indoor activities, 2 changing rooms with showers and a refreshment area / bar.

The DNA of the center is based on opening to and welcoming all sportspeople, in particular those who are in conditions of vulnerability or distress. It is a home for all those who believe that sports may be a way to break down small and large barriers, and let more and more people experience the benefits of the magic of Sports. The Sport4All project, consistent with this philosophy, will allow the center to make a considerable leap forward, towards an increasingly wider accessibility to sports for those who have any kind of disability.

/ Annual Report 26 2018/2019 Recipients

The people involved in the project are people with or without disabilities who are accompanied by professional educators and coaches during the sporting courses and the events.

The activity is based on some fundamental values: the sharing of the methods of participation in the activities and of the rules and, more importantly, the enhancement of the relationship.

The project is aimed at people belonging to the most varied and distant contexts.

Each activity foresees an indirect involvement ranging from the sharing the path of inclusion (sharing of values through web platforms and social networks) to the presence of family members, friends and volunteers during the activities. People with disabilities involved in the project come from a large network of organizations, public and private, with which PlayMore! has built relationships over the years. The volunteers who take part in the activities and who continuously participate in the integrated sports proposal are a distinctive and qualifying element of the project. The involvement of volunteers, belonging to different contexts, matches the need to create a project with great communication and cultural potential.

The ambitious goal is to contribute to the building of a culture relevant to disability that is more and more aware and more and more distant from stereotypes.

Annual Report / 2018/2019 27 Interview with Rocco Giorgianni, Segretary General of Fondazione Milan

1. Why did you establish Fondazione Milan and how did you structure it during its first years of activity? In the years before the establishment of Fondazione Milan, the Club was among the promoters of social responsibility initiatives and activities, to answer to the community’s demands. Fondazione Milan was founded on February 20, 2003 to convey these demands in a more organic and structured way, trying to offer more punctual and effective answers. The first 10 years of activity (2003-2013) were necessary to establish stable and lasting relationships with the territory and with our reference community. In this period, one large project has been chosen every year as well as many other smaller initiatives and the fundraising activity and the communication strategy were built around these projects. All AC Milan’s areas participated in the fundraising, starting from the First Team, to the commercial and institutional departments. The support we receive from all the Club’s departments, each pursuant to its level of competence, is the engine that ensures that Fondazione Milan can continue to develop its initiatives to support the social welfare projects.

2. How did Fondazione Milan change during the years? The changes actually took place in a completely natural way, following and taking into account the general changes occurred in the world of sports, both internationally and in Italy. Over the years, we have developed belief that we should have a greater impact on the projects we supported with Fondazione Milan. The idea was to start support the activities not only with cash, but above all in terms of knowledge and human capital. In particular, what AC Milan has always been able to offer the community is related to its activity, ie the practice of sports, the knowledge of sports and their impact at all levels, from a physical, psychological and social well-being point of view. Sports are also very effective tools to fight educational poverty and to offer relief to children affected by various social problems due to various reasons.

3. Which are the situations you face daily with Fondazione Milan? We have experienced the virtuous values we spoke about before over the years, by getting in touch with young people from the most diverse contexts of hardship, starting with young people with problems of school dropout, especially in the suburbs of large city. We also operate in real emergency situations as in the case of post-war contexts or in areas hit by natural disasters. We have experienced how much sport is a tool that can really and truly change people’s lives and now it is a distinctive element of Fondazione Milan’s activity. Through our dedication and commitment, we have gradually included it in our activities and made it more and more the cornerstone of our Vision and our Mission.

4. Many do not know that among Fondazione Milan’s projects there are also the activities tied to the Milan Glorie That’s right, the Milan Glorie project is a project that was launched by Fondazione Milan and, after 11 years, is still linked to us. The reason we started this adventure in 2008 was to actively support Stefano Borgonovo’s fight against ASL. When Stefano started talking about his illness, we organized the first Milan Glorie match, to support the

/ Annual Report 28 2018/2019 establishment of the Fondazione Borgonovo and to help fight ALS. The very first experience was a match between the Legends and AC Milan and ACF Fiorentina First Teams, Stefano Borgonovo’s two top teams; and that was the first of many unique experiences that, over 11 years, led us to play 22 matches in 14 countries around the world, from Argentina to the United States, involving 20 cities and more than 800 thousand spectators, with over 1 million euros collected. Throughout this time, Fondazione Milan’s fundraising has been the main reason why the Glories are so available to participate. This project is also particularly interesting and important for us, as it allows us to spread the name of Fondazione Milan all over the world, thanks to the priceless participation of international players.

5. In the season 2018/2019 you organised the match AC Milan vs Liverpool FC Yes, Liverpool contacted us in the summer of 2018 to organise such an appealing match. The basic idea was to play the “definitive” match after the two Champions League finals of 2005 and 2007. On March 29, 2019 the Glorie of both teams performed a beautiful show: fans appreciated a lot the participation of Pirlo, Kakà, Rui Costa and Gerrard and of many others and Anfield Road was sold out.

Annual Report / 2018/2019 29 8

MILAN ACADEMY

Milan Academy is the set of projects aimed at boys and girls aged between 6 and 17 years. The Soccer Schools in Italy and abroad, the Milan Junior Camps and the Milan Experience are part of the Milan Academy.

The aim is to spread a healthy sporting culture among the youngest, thanks to the priceless support of local partners and institutions, boosting the most authentic values of football: respect, loyalty, teamwork and fun.

All the projects are dedicated to the Club’s many stakeholders operating in Italy and abroad, including sports clubs, both amateur and professional, sports federations, institutions and sponsors.

The main activities carried out by the Milan Academy are to teach and to develop kids’ technical-tactical skills and to improve their motor skills. The various programs also involve all those sports and relational elements tied to football, through an all-round vision.

/ Annual Report 30 2018/2019 Milan Junior Camp

In recent years the Milan Junior Camp project has significantly strengthened the relationships between AC Milan and the most important Italian and international partners who have been active for decades in summer entertainment for boys and girls aged 6 to 17 years.

The range of activities offered to families has been broadened during the last season, thanks to the ever-closer collaboration with the Scuole Calcio Milan, which play a key role in disclosing the Metodo Milan both in Italy and abroad while exploiting their strong identity in the reference territory.

One of the strengths of the project is certainly the flexibility of the format, that can be adapted to the most different territorial and cultural contexts, offering tailor-made solutions for all participants. Among the various opportunities, there is also the possibility to participate in English courses and social inclusion programs launched in collaboration with Fondazione Milan.

In addition to a training program structured according to AC Milan Youth Sector methodology (based on the teaching of the technical-tactical, athletic and relational elements of football), the Milan Junior Camps also provide for moments of leisure and entertainment, thanks to various recreational and educational activities. Every year, at the end of the program, we organise an event that involves some lucky little athletes representing the different MJCs.

The young players selected participate in a friendly tournament in the splendid setting of the Rossoneri’s Youth Sector structures, and get the chance to experience the magical atmosphere of the San Siro, parading along the side-lines alongside AC Milan’s First Team.

SEASON KPIs MJC 2018 MJC 2019 OVERSEERS 30 33 NATIONS 12 18 VENUES 80 85 WEEKS 114 118 KIDS ENROLLED 5.000 6.000

Annual Report / 2018/2019 31 In recent years continuity has been fundamental for the Milan Junior Camp project.

After the enthusiasm generated by AC Milan Women’s First Team and the success of the world cup in France, we have organised a camp for girls aged 6 to 17 for the second year in a row at the Rogoredo 84 sports facilities, to integrate and enhance women’s football at youth level.

Thanks to this project, the footballers were able to carry out training sessions pursuant to the Metodo Milan with the official coaches of the women’s sector of the Rossoneri Club.

Talking about continuity, we must mention the effective collaboration with Fondazione Milan at two different levels: social inclusion and earthquake emergency.

With reference to the first, which involves the inclusion of autistic children, we established three venues on the national territory, which saw the participation of 40 boys and girls who played together, made new friends and fully enjoyed this wonderful experience.

Sport is also a very strong tool for growth and education, thanks to which many young people manage to regain their future, and this is why MJC and Fondazione Milan organised the Special Soccer Camps for earthquake emergency in Amatrice and L’Aquila. We intervened in L’Aquila 10 years after the earthquake that hit central Italy in 2009, while the Camp in Amatrice is at its second consecutive edition, after the huge success in terms of participation of the 2018 edition.

Families and institutions’ great participation and joy are the reason why we are extremely proud to carry on these social initiatives that reflect in full the values of our Club. They were able to witness the return to everyday life, even if for a short time, of almost 200 children.

OBJECTIVES

• To continue offering a top-quality service by consolidating the existing relationships with our partners; • To expand the network of collaborations in Italy and abroad, exporting the Metodo Milan to new markets; • To create of new programs and initiatives that, by exploiting the Club’s corporate assets, are going to involve as many little Rossoneri fans as possible.

/ Annual Report 32 2018/2019 International Academies

During the 2018/19 season, the focus of the activities of the Milan International Academy was aimed at the consolidation and growth of the already existing Soccer Schools, without losing sight of the development of new projects in new areas.

The network of the International Academies consists, to date, of 17 Soccer Schools, divided as follows among the various continents:

EUROPE ASIA • Romania: Craiova • Japan: Tokyo, Komaki, Sakura • Russia: Voronezh • Kuwait: Kuwait City • Spain: Bilbao • Saudi Arabia: Riyadh, Dammam, Jeddah • Sweden: Nynashamn • UAE: Dubai • Switzerland: Lugano • Vietnam: Hanoi

AFRICA OCEANIA • Algeria: Algeri • Australia: Sydney • Morocco: Laayoune

The activities of the soccer schools as well as the continuous training of local coaches, are managed by the Official AC Milan Coaches who, in most cases, work permanently in the area where the soccer school is established.

In addition to a training program structured according to the AC Milan Youth Sector methodology and to the participation in tournaments and championships we organised various events for the various AC Milan Academies involving institutions, local sponsors, the children and their parents.

In addition to the development of the International Academies, we organised experiential activities – the Milan Experience – and groups of young footballers have carried out training sessions, directly supervised by AC Milan official coaches, at theC.S. Vismara and at Milanello.

Annual Report / 2018/2019 33 SEASON KPI

International Academies 17 New Academies 2 Nations involved 13 Continents involved 4 Local managers involved 40 Coaches trained 255 Kids involved 3400

HIGHLIGHTS

During the season, various Milan Experience activities have been organized and women’s football clubs have also been involved. As usual, players performed special training sessions under the supervision of AC Milan official coaches.

The guest coaches have had the opportunity to directly access the Metodo Milan, discussing the youth sector’s training methods with our staff and dealing with the Club’s brand ambassadors.

In addition to the training program dedicated to them, the kids were able: • To attend a match of the First Team; • To meet the women’s and men’s First Teams; These activities are dedicated to • To live a match at San Siro, with pre-match activities; Clubs that are already part of AC • To meet AC Milan legends; Milan’s network, but other sports • To visit the Mondo Milan Museum and the Club’s headquarters institutions or tour operators that at Casa Milan wish for their kids an all-round Rossoneri experience may request to be involved.

/ Annual Report 34 2018/2019 OBJECTIVES

The objectives for the next season are to continue expanding the network of International Academies, consolidating the presence in the territories where the AC Milan Academy activities are already well established and starting to develop new projects in new territories, with the aim of further strengthening AC Milan’s brand outside of Italy.

As for the objectives to be pursued locally, our aim is to establish and implement new training programs, dedicated to both players and local coaches.

We also want to increase our offer of strategic and commercial consultancies relevant to the boosting of soccer schools, through technical, commercial and experiential activities.

Annual Report / 2018/2019 35 9

STADIUM OPERATIONS San Siro Stadium

The San Siro Stadium is the location that has been hosting AC Milan’s home matches for over 90 years. It has been Inaugurated on September 19, 1926 under the chairmanship of Piero Pirelli and the initial structure reached a capacity of 35,000-40,000 spectators, a figure which was expected to increase significantly thanks to the various renovations over the years. To date, San Siro is by far the largest stadium in Italy with over 75,000 seats; the structure stands out also for the compliance with high standards of safety and comfort. The stadium is included in the UEFA Category 4.

Stadium Operations management

The main objectives of AC Milan’s Stadium Operations management are:

• To guarantee the best planning and management of all pre-, during and post-match activities inside San Siro during the matches played by the Club, including the direct management of booking services. • To participate in the correct and timely management of San Siro stadium, in collaboration with the company M-I Stadio and FC Inter, proposing and planning ordinary and extraordinary maintenance operations in order to meet the Club’s needs and ensure the proper carrying out of activities.

There are many activities that need to be planned, organized and managed by the Stadium Operations management to meet all the needs of our stakeholders (fans, sponsors, first team, top management, entities and institutions, media...) and to offer them the best possible experience at the stadium.

Seats (Source San Siro Stadium)

First tier: 26.329 Second tier: 32.401 Third tier: 17.192 Sky Box: 300 Vip Box: 545 (Vip Box + Authorities Stand + Executive Stands) Press Seats: 255 Seats for disables people: 200 (+ 200 accompanying persons)

M-I Stadio Srl

M-I Stadio Srl is the company, shared between F.C. Internazionale and A.C. Milan, which manages the activities of the Stadium on behalf of the Clubs. The registered office is in Milan, Piazzale Angelo Moratti snc and the fully paid-up share capital amounts to € 1,000,000.

/ Annual Report 36 2018/2019 The safety of all those who take part in the live event is very important for us: for this purpose, we are very scrupulous in ensuring the best controls and in supervising fans’ access and exit, everything in close collaboration with the police and the relevant Staff, to comply with the rules and regulations of Lega Serie A, FIGC and UEFA.

Among the many activities to be supervised, the coordination of logistical and entertainment activities inside the stadium is significantly important: our concern is to ensure optimum efficiency of the infrastructures during home matches, in compliance with corporate guidelines and in compliance with current regulations.

All the staff collaborating during the Match Day deserves a special mention. Every match played at San Siro Stadium has at least 40,000 spectators, with constant peaks of over 70,000 people during the big matches featuring FC Juventus and FC Inter. These “Top Events” need experienced staff, trained and ready to handle stress/emergency situations.

In particular, each match sees the presence of: • N Stewards 820 • N Service Staff 1500 • N Service Staff (Catering) 110

San Siro Stadium – Structural Interventions

In the 2018/2019 season, San Siro stadium underwent numerous improvements: • Expansion of the EVAC System at the Operations Center (GOS) • Integrationof the Smoke Detection System at the Operations Center (GOS) • Union of Red Sky Box n. 9 and n.10 (Presidential) • Remodeling of the playground lighting system at the Stadium Reception • Remodeling of the lighting system of the third tier stands with LED technology

As regards the 2019/2020 season, the following manteinance, renovation and improvement works will be carried out at the San Siro Stadium:

• Gas Radon intake system in the underground garage* • Pre-filtering fencing for guest fan entrances with Betafence Elements (Gate n.6 and n.10) * • Renovation of guest changing room with furniture replacement * • Technological renewal of the stadium’s network system and first access control, including high availability new servers * • UPS adaptation to security systems service * • New bars for access control * • Creation of new executive stages for the Orange Sky Lounge 1 and 2 • Renewal of Red and Orange SkyBoxes • Reclamation of Stadium Electrical Installations • Renewal of Mixed Zone • Renewal of Press conference room lighting system • New lighting system for the underground Garage

*Intervention already carried out

Annual Report / 2018/2019 37 10

TICKETING

AC Milan, which has always been very attentive to the bond between its fans and the Stadium, is committed to meeting the needs of its supporters as much as possible, with the aim of maximizing the “Stadium Experience”.

The mission of the Ticketing and Corporate Hospitality team is to fully meet the fans’ demands while ensuring the best ticketing experience. Season review

During the 2018-19 season, important innovations were carried out to make each match a unique moment. Starting from a careful analysis of match schedules, we activated various clusters (families, university students, Milan Club), substantially simplifying the purchase procedures: a direct consequence of these pricing policies was the improvement of the television product with a high percentage of coverage of the sectors in front of the camera.

We have also worked on the average ticket price, in order to achieve two main objectives: 1. Guaranteeing everyone the chance to come to San Siro 2. Maximizing revenues from home matches

SEASON KPI SERIE A • +4.2mln € vs 2017-18 (+30.1%) • 45,068 best-selling tickets vs 2017-18 (+11.3%) • 54,255 average spectators (+2.9% vs 2017-18) • Average ticket increased despite general price reductions.

Single tickets Sold Net revenue AVG Tickets price 2018-19 445.050 18.166.010 € 40.82 € vs 2017-18 +45.068 +4.207.079 € 5,92 € +11,3% +30,1% +17,0% 2017-18 399.982 13.958.931 € 34,90 €

/ Annual Report 38 2018/2019 AC Milan vs FC Inter: the highest revenue in the history of Serie A (€5.8m)

The Milan’s Derby that took place on March 17, 2019, was a record-breaking Derby. The 223° Stracittadina was sold out at San Siro, with the highest revenue in the history of AC Milan (over € 5.8 million including hospitality services), an absolute record for Serie A as well.

The box offices registered a constant flow of purchases, with the maximum peak on February 5, 2019 (10,655 tickets sold). More than 4,000 tickets were purchased by foreign fans and over 590 AC Milan Club populated the stands, the farthest of them were from Bahrain.

Annual Report / 2018/2019 39 UEFA Europa League

AC Milan played three home games in the 2018/2019 UEFA Europa League, reaching a total of 60,220 spectators, for a total revenue of € 1,262,296.70.

Date Time Match Tickets Revenue October 4, 2018 6.55pm AC Milan – FC Olympiacos 22,294 € 543,039.50 October 25, 2018 6.55pm AC Milan – Real Betis 22,405 € 525,039.70 November 29, 2018 6.55pm AC Milan – F91 Dudelange 15,521 € 193,693.50 Total 60,220 € 1,262,296.70

FC Milan- SS Lazio (Italian Cup semi-final)

With 61,045 spectators, the Coppa Italia match played on April 24, 2019 vs SS Lazio, set the home record for an Italian Cup semi-final.

OBJECTIVES

• The objective for the 2019/2020 season is to continue with the positive trend in sales volumes and revenues, increasingly enriching the range of offers for our supporters. • These results should be based on the involvement of new targets, such as the youngest groups of fans, sports associations and soccer schools, for which targeted and specific offers will be developed. • From 2020 onwards, there will be an improvement in the online purchase flow and including the 3D view for the selection of the seats. • In the 2019/2020 season we’ll also introduce the “mini-plans”, i.e. the possibility to buy more matches within the same transaction. • With reference to Corporate Hospitality, there will be a great focus on improving the service offered, thanks to a new Entertainment program planned inside the halls and a series of events to be held outside the stadium, aimed at encouraging networking opportunities among corporate customers.

/ Annual Report 40 2018/2019 11

FAN ENGAGEMENT

The Fans Engagement area deals with the Fan base’s entertainment and involvement activities particularly relevant to: 1. The Club’s physical touchpoints: Stadium, Casa Milan and official Stores 2. Events organized by the Club: eg. Team’s summer tours.

The Fan Engagement area operates within the CRM (Customer Relationship Management) activities, i.e. all those initiatives whose main aim is to establish a direct relationship with the Fan Base and with the individuals, seeking to maximise the value of the relationship between the Clun and its supporters. Season review

In the 18/19 season, the Fan Engagement activities focused on enhancing the Stadium Experience and connecting with international associations (Milan Clubs). Through the Cuore Rossonero project, the Club has also introduced sales policies and special promotions for the most loyal fans. In addition, the fans at the stadium during the team’s home matches were able to watch unique pre-match shows: from the exciting performance of the athletes of the National Artistic Gymnastics Team “Le Farfalle”, to the live performance of the artist Ghali, who presented his new single “I love you” at San Siro stadium. The fans were also protagonist of the all-round choreographies that were created for the Derby and the matches against US Sassuolo and FC Bologna.

AC Milan has also carried out a series of international activities with its Fan Clubs to strengthen the relationship with the team. During the 2018 summer tour in the US, many Meet&Greet and several events were organized for the Rossoneri fans, some for the members of the AC Milan Clubs and some for the winners of the online competition activated during the summer. In addition, a Fan Village area welcomed the fans present at the stadium with entertainment activities for both young and elderly: Daniele Massaro met the fans before the match, and he signed many autographs and photos.

Annual Report / 2018/2019 41 Stadium Experience

As part of the pre-match entertainment activities of the 18/19 season, AC Milan, on the occasion of 3 home matches, involved the fans at the stadium in an all-round choreography by putting red and black banners on all seats of the stadium, for a total of 50,000 banners. When the teams entered the pitch for the kick-off, San Siro stadium was completely coloured red and black.

Before AC Milan vs FC Juventus match, played on November 11, 2018, the fans watched the fantastic performance by the National Artistic Gymnastics team, Le Farfalle, who danced in midfield wearing costumes with golden wings to celebrate one of the world-famous matches.

The Italian rapper Ghali, particularly popular among younger generations, presented live his new single “I love you” at the San Siro stadium before the Milan Derby in front of 75,000 spectators and hundreds of Countries linked from all over the world.

/ Annual Report 42 2018/2019 ICC 2018

As for the activities carried out for fans all over the world, about one hundred U.S. fans base were able to meet the team and the players thanks to the contest “Devils in USA”. They participated in the exclusive events organized during the summer Tour (such as Meet&Greet in Hotel, Puma’s events with players, opportunity to attend the team’s training etc.). The access to the Fan Village area set up at the U.S. Bank Stadium in Minneapolis and Levi’s Stadium in Santa Clara was for free and thousands of fans were able to participate in entertainment activities proposed by AC Milan’s staff, such as children’s face painting, distribution of red and black gadgets and photos with the Legend Daniele Massaro.

OBJECTIVES

AC Milan would like to increase the entertainment offer at San Siro stadium to make the stadium experience a valuable moment for fans and their families.

In this regard, some special initiatives for the families will be implemented in the dedicated sector (primo anello verde): in addition to the presence of the mascot Milanello, the children and their families will be involved in many activities. That’s why we launched the Matchday Passport, a special “passport” that allows you to keep track of your presence at San Siro stadium thanks to the stamps you collect at the stadium entrance. The Matchday Passport is also useful to record the result of the match, the scorers and your own MVP.

Another activity aimed at all fans will be the opportunity to see their photographs directly on the giant screens of the stadium, with a revised graphics to give even more importance to the photos taken by the public at the stadium and beyond. Other novelties include the introduction of interactive game dynamics on the giant screens and prize contests that will be a further stimulus to live the pre-match at San Siro with friends. AC Milan also wishes to continue its activities aimed at linking with the many fans who live abroad, carrying out activities in support of AC Milan Clubs in the various countries to strengthen the relationship with the team.

Annual Report / 2018/2019 43 12

SPONSOR

AC Milan’s Business Partners operate on both the domestic and international market. These relationships are based on a total sharing of our Club’s values: community, elegance, passion and excellence. AC Milan’s Partnerships Department has solid relationships with its Partners, promoting and developing forward-looking activities that ensure the achievement of the objectives of their business as well as marketing and communication objectives.

KPIs

In the 2018/19 football season, 32 companies retained, extended or signed a commercial agreement with AC Milan, marking a 19% increase over last season. Our Club continues to be one of the most globally supported teams with about 445 million fans around the world (Nielsen 2018). The opportunity to constantly interact with this wide fan base strengthens AC Milan’s position and makes our Club a fundamental Marketing channel for all our Brand partners.

KPI 2018/19 Main Partners 2 Major Partners 9 Official Partners 14 Technical Supplier 7

/ Annual Report 44 2018/2019 The 2018/2019 season marks the undersigning of the agreement with PUMA as the new Main Partner of the Club and DAZN and Bioscalin as Major Partners.

In addition, seven new Official Partners have partnered with AC Milan: Avis, Beretta, Damiani, Peroni, Piquadro, Invent and La Molisana, while Tec-Mar is a new Technical Supplier of the Club. Puma: the new Main Sponsor

On February 12, 2018 we announced the multi-year partnership agreement between AC Milan and PUMA. From July 1, 2018 PUMA is the new Official Partner, Global Technical supplier and Official Licensing Partner of the Club.

“We are very proud to be partnering with AC Milan - commented Bjørn Gulden, CEO of PUMA - They are one of the most successful clubs in the Football history with a large, global fan base and the team and their fans show the true spirit of football. If you ask me, the Rossoneri jersey is one of the most iconic jerseys in football. We are looking forward to the next chapter of this legendary football club being with PUMA”.

Puma: The Roar of Milan

On May 18, 2019 Puma officially presented its new Home Kit for the 2019/2020 season, a year in which AC Milan celebrates two important events in the history of the Club: 1. 1The 120th anniversary of AC Milan’s foundation 2. The 50th anniversary of the victory of the UEFA Champions League in 1969

The new jersey launched by Puma celebrates the 1969 victory in Madrid achieved against AFC Ajax, a triumph that brought AC Milan on the top of Europe for the second time in its history. This success preceded the victory of the Intercontinental Cup in October 1969 and Gianni Rivera’s Ballon d’Or, in the same year. The 1969 heritage inspired Puma, which gave the new jersey a bold and elegant design, celebrating the innovative system of play proposed by Nereo Rocco’s team in 1969.

The design is a true modern interpretation AC Milan’s kit of the ‘60s and it features the classic narrow red and black stripes and a round black collar.

The new Rossonera jersey made its official debut on the pitch on May 19, 2019, in the 2-0 victory at San Siro stadium against Frosinone Calcio.

Annual Report / 2018/2019 45 Bioscalin: the new Major Partner

Bioscalin, the company’s new Hair Care Partner, entered into the world of sports sponsorships linking its Brand to the name of AC Milan due to a substantial and full sharing of values with our Club: passion, innovation, fairness and team spirit.

“This initiative shows the desire of the Giuliani Company and of the Bioscalin brand to consolidate their success on the market by gaining visibility and relevance towards a strongly potential target such as men and sports fans in general, offering an extraordinary opportunity to engage the pharmacists, our logical partners, through a great collective passion like football” commented Bioscalin’s General Manager Gaetano Colabucci.

Bioscalin and Fondazione Milan together to promote Integrated Sport

The collaboration between our Club and Bioscalin has generated important social benefits. Giuliani’s Brand joined Fondazione Milan during the match AC Milan vs Udinese SC held on April 2, 2019 at San Siro stadium.

The Giuliani company has always believed in sports strong social value so, for each fan located at the primo anello arancione wearing its green wig, it made a donation in favour of the projects that Sport4All developed to boost the sports activities practiced by people with disabilities.

/ Annual Report 46 2018/2019 Banco BPM – AC Milan’s visit at the Cenacolo Vinciano

Banco BPM, historic Major Partner of AC Milan, created and promoted an exclusive event that saw the participation of the top Management of the Rossoneri, the coach Rino Gattuso and the players of the First Team.

The event took place on February 19, 2019 at the historic Santa Maria delle Grazie, where AC Milan had the privilege of visiting the Cenacolo Vinciano, one of the most famous works of all time, on the occasion of the 500th anniversary of Leonardo da Vinci’s death. In addition to the Cenacolo, the guests visited also the Sacristy of Bramante and the Basilica. Dr. Giuseppe Castagna, CEO of the Banco BPM Group, welcomed the whole Rossoneri group. At the end of the visit, the CEO of AC Milan Ivan Gazidis, the Sporting Director Leonardo, the Director of the Strategic Development of the Sporting Area Paolo Maldini and the Team had dinner with the top Manager of Banco BPM.

Annual Report / 2018/2019 47 OBJECTIVES

The main objectives of AC Milan’s Partnerships Department are to maintain the excellent service reserved for our current Brand Partners. The process of implementing new partnerships with international companies is also actively ongoing, leading our Club to a successful season on and off the pitch. Among the main novelties that the Club is presenting in the 2018/19 season and that will significantly improve the Partnership Experience at AC Milan there are: • New and important investments in favour of the company’s digital channels, to reach ever higher levels of interaction and engagement with our fanbase • The launch of the new Brand Identity, implemented both at the San Siro stadium and on all the Company’s platforms • Investments in human resources to further improve the level of our Partnerships Management

/ Annual Report 48 2018/2019 13

MMH

July 1, 2016 is the date that marks the birth of the Milan Media House, the content factory of AC Milan that deals with the editorial strategy and manages all the digital touchpoints of the Club (Social Media, App, ACMilan.com and the official Club Channel Milan TV).

In particular, MMH designs and produces the Club’s official multimedia content, directly supervising their publication on AC Milan social media channels, as well as the distribution process of videos and graphics on a large network of external platforms.

The Milan Media House also assesses the individual performance of the content, carefully analysing the results produced in terms of engagement and fans’ sentiment. Thanks to the study of these data, MMH aims to boost an increasingly innovative and engaging multimedia offer, to the significant benefit also of AC Milan’s business partners. Many professionals collaborate with the MMH: digital editors, journalists, producers, cameramen, graphic designers, media planners, analysts. This broad portfolio of human skills translates into a 360-degree production of content for a Rossonero omnichannel ecosystem, both digital and social.

Among the main competences and objectives of the Milan Media House there are the research and exploitation of all the opportunities offered by the new digital and social channels as well as broadening of the fanbase and supporting the relationships with Media, Partners and Sponsors.

Season review

In the 2018/19 season, the growth and expansion of Milan Media House continued significantly.

Compared to the 2017/18 season, there was an increase in terms of content published on Instagram, from an average of 112 posts per month to the 132 posts of the 2018/19 season. This positive trend is largely due to the considerable increase in posted videos, from 512 to 734, while the total number of published content settled at 1600, recording a 23% increase yoy (1300).

Thanks to the introduction of the Portuguese version of the official website acmilan.com and the opening of Twitter accounts in Portuguese and Arabic, we are able to reach a new and important share of fans in their mother tongue: if we consider also the Italian, Chinese and English versions of the web site, we have a potential reach of 50% of the world’s population.

The 2018/19 season also saw the birth of the AC Milan women’s team that generated an increasing interest from the public.

From the point of view of the digital communication strategy dedicated to the Rossonere, the Club’s desire to give the women the same importance as the men’s First Team has been fully respected. Digital content relating to the women’s team has become increasingly consistent within the editorial plan of the Milan Media House, which has distributed all the footballers’ photos and videos on the same social channel used for the men’s First Team.

Annual Report / 2018/2019 49 A further novelty introduced in the 2018/2019 season was that of always involving at least one Rossonera in our social media award “Goal of the Month”, a contest that in November saw the triumph of Thaisa Moreno, who defeated the Captain of the men’s First Team Alessio Romagnoli.

Great importance was given to the coverage of the first historic AC Milan women’s Serie A championship, with all the team’s matches broadcast live on the @acmilan twitter account, with ad hoc photos and graphics.

Season KPIs 2018/19 2017/18 2016/17 Web-site average unique visitors per month 617,717 689,998 637,507

Web-site average visits per month 1,113,509 1,249,475 1,089,606

Monthly average pages viewed 2,837,901 3,068,862 2,656,445

Average time spent on the web site 2'32’’ 2'43’’ 2'14’’

Percentage of access to the web site from mobile 69% 67% 76% devices

Percentage of access to the site from the desktops 31% 33% 24%

Number of news published on the site during the about 2,000 season**

Total number of fans on Facebook 24,702,028 25,067,043 24,800,000

Total number of fans recorded on YouTube 510,742 407,470 370,000

Total number of followers on Twitter 6,912,074 6,766,075 6,000,000

Total number of followers on Instagram 5,903,970 4,278,210 4,000,000

Number of posts published on social media 13,616 8,683 9,600

/ Annual Report 50 2018/2019 Launch of New APP

The 2018/19 season marked a decisive change of the Club’s digitisation. The improvement of the B2C digital ecosystem culminated on August 17, 2019, just before the kick off of the 2019/20 season, with the launch of the new official AC Milan APP for iOS and Android platforms.

The Club’s objective is to provide to its fans a wide range of premium content, in an engaging and exclusive environment: from training sessions’ videos to interviews with Milan TV, from daily press reviews to original columns. The new App also guarantees greater visibility for all the activities carried out by the AC Milan Women’s team and the Youth Sector, thanks to the wide coverage dedicated to official matches and events involving the young Rossoneri and our women.

The App was launched on August 17, 2019 and Casper Stylsvig, the Club’s Chief Revenue Officer said: The“ launch of the official AC Milan App is an important step towards the Club’s digitalization process. There will befurther developments over the coming months that will allow the Club to improve the level of service and satisfaction for both fans and commercial partners.”

OBJECTIVES

The main objectives of the Milan Media House for the 2019/20 season are:

• To continue the broadening of its fanbase, increasing the number of languages through which the Club communicates on its digital touchpoints.

• To introduce new formats, to increase the engagement and make the sponsorship of such content more attractive for ACM partners or potential new partners.

• To produce premium content, in some cases exclusive content, to support the download of the AC Milan Official App or to sell such content to international broadcasters or pay platforms.

Annual Report / 2018/2019 51 14

HR

The Human Resources Department oversees many levers that allow people to perform to the best of their potential, so that they can put their experience, skills, talents and motivations at the Club’s service. In order to carry out this mission in the most effective way, and to give a strong signal of cultural change, it is essential to lay the foundations to strengthen and develop the processes and systems that enable people. In particular:

• To look for the most appropriate people to cover new / developing roles (both in the market and within the organization) • To provide all employees with the tools and information they need to join the Club in the best way • To manage administrative requirements in a timely manner • To address and manage individual performances so that they are aligned with the Club’s strategic objectives • To design and develop the functional organizational model in line with the business’ demands • To reward and recognise people for their level of responsibility and complexities managed, ensuring internal fairness and competitiveness with respect to the labour market • To offer a leadership and skills development plan aligned with the Club’s and people’s expectations • To facilitate the spread of a positive and stimulating environment, boosting discussion and dialogue

Staffing, Recruiting & Onboarding

Communication & HR Administration & Engagement Industrial relations

La “Peolple Experience” in Casa Milan Leadership Performance Development & Management Training

Reward & Recognition

/ Annual Report 52 2018/2019 Season review

The recent changes in the ownership and in the corporate and management structure of AC Milan Group have led to the undertaking of a path of significant cultural change accompanied by a deep rethinking of the organisational operating model and of each employee’s expectations relevant to roles and behaviours. #Fit2goal Project

To such extent, during the 2018/2019 football season, we launched the #Fit2goal project, with the following main aims: • structured listening: planning of moments of structured listening of people, to understand the responsibilities and activities they carry out, and to collect and listen to ideas and suggestions for improvements; • improvement of organisational clarity in terms of results and behaviours relevant to all offices, also through the development of Job descriptions for all roles; • comparison with the market, drawing inspiration from the most widespread practices, but also facilitating internal fairness, offering the same opportunities to employees with the same levels of responsibility, through the mapping of the responsibilities; • understanding of the impact and contribution of each role in the achievement of the Club’s results as well as the complexities and peculiarities.

Alongside this project, we focused on the following processes: • The search and selection of personnel, at all levels and in all organizational areas; • Staff training, we provided for language courses and launched a training and management development course for managers and middle management.

Annual Report / 2018/2019 53 CHANGE OF OWNERSHIP

31.12.2017 21.07.2018 30.06.2019

of Employees 145 159 172 of IN 54 26 28 of OUT 27 12 15

DISTRIBUTION BY DEPARTMENT

Other Financial 10% 14%

Commercial 32%

Operation 29%

Communication 15%

Department % Commercial 23% 45 Communication 11% 21 Operation 20% 40 Financial 10% 19 Other (CEO’s direct reports) 7% 14

/ Annual Report 54 2018/2019 CHANGE DISTRIBUTION BY LEVEL

chief 1,7% 0,6%

director 5,1% 1,1%

6,2% 5,1% middle manager*

28,8% white collar 41,2%

0,6% 1,1% blue collar

EMPLOYEE DISTRIBUTION BY AGE

Over 60 2% Under 30 14% 51 - 60 years 24%

30 - 40 years 33%

41 - 50 years 27%

Under 30 30-40 yrs 31-50 yrs 51-60 yrs Over 60 Dirigente 0 1 10 4 0 15 Quadro 0 4 9 9 0 22 Giornalista 0 1 1 0 0 2 Impiegato 19 49 26 25 3 122 Operaio 0 0 3 0 0 3 Intern 5 1 0 0 0 6

Please Note: The above figures are updated to November 20, 2018

Annual Report / 2018/2019 55 Workshop on Organisational Development and HR

The first workshop organised by the European Club Association relevant to the changes and the management of HR in the top European Clubs was held today in Milan. AC Milan and FC Internazionale Milano hosted the event at the San Siro Stadium on February 5, 2019 welcoming the attendees and giving the opening speech together.

Many presentations on the agenda of the Eca Workshop on Organisational Development and HR among which those of Paris Saint-Germain, Manchester City, Manchester United, FK Austria Wien, alongside AC Milan and FC Internazionale Milano.

AC Milan’s Agata Frigerio, Human Resources, Organization & Compliance Director and Giulia Gevi, Organization & Development Manager attended the workshop. Their presentation “HR Challenges in a changing Organisation”, described the development of the HR model of the Club and the structure of the HR department in the light of corporate and organizational changes. From Silvio Berlusconi’s 30-year management to the Chinese ownership up to the current American ownership of the Elliott Fund that brought stability.

“The HR department in a football Club is very important because it has to manage many different souls that however contribute to a single goal. The management of the staff must consider multiple aspects, starting from welfare standards and individual development, both from a sporting and a corporate perspective. And we must not forget the cultural aspect that embodies the values and the identity of a Club, especially in a time of change. It is not always easy but it’s our challenge and we must handle it at best”. said Agata Frigerio, AC Milan Human Resources, Organization & Compliance Director. Season 2018/2019 novelties

• Introduction of Assessment Center sessions for the punctual and structured selection of the best students from the main Italian universities for internships • Follow-up to the Alternating school-work programs at Casa Milan dedicated to the young people of our Youth Sector • Presentation of the new CEO, Ivan Gazidis. We organised 3 Town Halls in the Club’s seats in December 2018

OBJECTIVES

• Planning and structuring of the new incentive system and introduction of the new performance bonus, involving all the Club’s employees • Implementation of the new employment contract including the smart working • Language training courses with more flexible and smart methods and detection of the training demands through individual questionnaires • Analysis of the organisational climate through anonymous questionnaires and subsequent planning of measures to improve motivation, level of collaboration and organisational clarity

/ Annual Report 56 2018/2019 15

COMPLIANCE

The Compliance department ensures the optimum development, implementation, updating, maintenance and continuous improvement of the corporate compliance system, in particular with reference to:

Administrative liability of the Workplace safety Personal Data protection Organisations

MISSION To ensure compliance with Pursuant to the GDPR (European Pursuant to Legislative Decree regulations on health and safety Regulation 679/16) our companies: 231/2001 and pursuant to the in the workplace, through both • have adopted an overall process regulatory and organisational consulting and operational of appropriate security measures evolution of the companies of the activities, aiming at the continuous for the protection of personal data, Group, provide for: improvement of the entire • have proved, in a positive and • correct and timely updating of management process. proactive way, that the data the Organisation, management processing activities carried out and control Model adopted by the are appropriate and comply with Group’s companies; the European Privacy Regulation. • correct and timely updating of the internal control system; • organisation of staff’s training

Annual Report / 2018/2019 57 Safety at the workplace

The workers’ health and that of all people accessing our seats, are priority issues for all our Companies. Once again, this year we have carried out the activities provided for by Legislative Decree 81/08, including regular meetings, medical tests, inspections by the Prevention and Protection Service and the Competent Doctor, evacuation tests, etc. The Club’s focus on safety has also enabled the strengthening of the Prevention and Protection Service, flanking the R.S.P.P. with a LASER Safety Officer and, most recently, with a Prevention and Protection Service Officer. The workers’ training, an ongoing activity, involved both the new workforce and the workers already in the “Group”. Privacy

With the adoption of the GDPR, our Companies have accepted the reversal of the trend towards the need to comply, above all, with formal obligations required by the previous legislation, adopting solutions tailored to our reality, fully embracing the principle of Accountability. In compliance with this principle, an internal Privacy Committee has been set up with the Legal, IT, HR and Organization & Compliance depts, that drives, stimulates and coordinates the implementation of the personal data protection system. We also implemented procedures to regulate some of the most critical profiles related to the protection of personal data that govern the management of data rights of our fans and users in general, any violation of the data, and other business-related processes. Therefore, with the support of our Data Protection Officer (DPO) we carried out improvement actions and training meetings. Let’s not forget the active participation in the working tables with the DPOs of the Serie A teams to address shared topics. Administrative liability of the Organisations

Our Companies have now carried out a new risk assessment by interviewing the representatives of all departments. We were therefore able to identify our Sensitive Activities and focus on them to recognize the principles of conduct and controls in place or to be implemented, also through the benchmarks used (legal provisions, doctrinal and jurisprudential guidelines, best practices, etc.), to find possible adjustments or improvements. This activity was developed by updating the Organisation, Management and Control Model approved by the Board of Directors on June 28, 2019. In particular, following the entry into force on May 17, 2019 of the Law of May 3, 2019, the Organisation, Management and Control Model of AC Milan S.p.A. has already included in the list of offences also the new category relevant to fraud in sports competitions, illegal gambling or betting and gambling exercised by means of prohibited devices pursuant to Article 25-quaterdecies of Legislative Decree 231/2001.

/ Annual Report 58 2018/2019 SAFETY EMPLOYEES REGISTERED PROS TRAINEES (no football players and external)

trained to be trained trained to be trained trained to be trained General Training 33 12 27 9 11 21 Specific Training 21 25 29 8 3 29 Supervisors’ trainng 1 19 5 ------Managers’ Training 1 ------Fire-fighting training 11 ---- Total of training hours: 718 256 376 56

PRIVACY EMPLOYEES REGISTERED PROS TRAINEES (no football players and external) formati da formare formati da formare formati da formare Privacy Course 143 42 52 44 13 2 Total of training hours: 312 214.5 78 19.5

Annual Report / 2018/2019 59 OBJECTIVES

• The Club’s goal is to continue to improve all topics related to Compliance. Among the objectives of the next season:

Administrative liability of the Safety at the workplace Personal Data protection Organisations

OBJECTIVES • Optimisation of the procedures for To ensure: Following the new category of contractors’ professional technical • continuous monitoring of activities offences pursuant to Article check; planned. 25-quaterdecies of Legislative • Documentary updating (Risk • the regular update or Decree 231/2001, AC Milan S.p.A. Assessment Document, policies implementation of the planned will also update the Organisation, relevant to workers, suppliers) documentation (records of Management and Control Model • Activation of new training courses; processing activities, policies, in order to identify the corporate’s • Optimization of a control system procedures, tasks, etc.) processes at risk, the related (check list, report) to support the • continuous collaboration with sensitive activities, the departments Employer; the business’ depts for the involved, the commissioning • Carrying out all medical development of the projects methods and the controls in place. examinations necessary for the pursuant to the principle of The adoption of the Organisation, issue or renewal of health permit. privacy by design and by default Management and Control Model • new training courses and staff cannot be separated from its awareness re: privacy issues effective application so, among the • participation in the meetings of objectives of all the Companies, the Serie A’s DPOs with the aim there is also the implementation of developing a Code of Conduct of procedures and other controls, pursuant to Art. 40 of the GDPR. which emerged from the risk assessments carried out, as well as training courses aimed at the recipients of the Model, which illustrate the principles and rules. The monitoring activity, carried out by the Supervisory and Control Bodies, will be actively supported by our Companies.

/ Annual Report 60 2018/2019 16

DIREZIONE GENERALE

The Direzione Generale is a department that supports the Chief Executive Officer in the day-to-day management, strategy and achievement of the Club’s objectives. It also follows all the procedures relating to the Board of Directors and it keeps the relationships with the ownership, the Institutions and the external Stakeholders (UEFA, ECA, Lega Calcio, FIGC, Municipality, etc.). The department also plays an active role in the management of the main projects that clearly drive the Club’s strategic vision. Season review

The 2018/19 season opens with a historic change at AC Milan. In July 2018, ELLIOTT management L.T.D. UK took over the ownership of AC Milan, with Paolo Scaroni, already a director in the Board of Directors, who took on the double role of Executive Chairman and Interim CEO of the Club.

In summer 2018, there were also important changes at a management level, with Leonardo and Paolo Maldini joining the club and taking over the sporting area of the Club.

From a Corporate point of view, on November 9, 2018, a Memorandum of Understanding was signed with F.C. Internazionale relevant to the project A New Stadium for Milan. The two Clubs officially committed to work together on the project for the construction of a modern and cutting-edge stadium.

December 5, 2018 marks another historic day for AC Milan that welcomed the new CEO, Ivan Gazidis, who, thanks to his ten-year experience at FC Arsenal, brings to AC Milan an important background in terms of international relations with European and other institutions.

During the season, in February 2019, James Murray and Casper Stylsvig, respectively Chief of Staff and Chief Revenue Officer, joined the company. They were hired by the CEO for their strong international experience, leadership and deep knowledge of the sector.

In March 2019 Chief Executive Officer Ivan Gazidis was re-elected to the ECA’s executive board, confirming his importance in one of the most influential committees in the modern football scene.

In June 2019, at the end of the football season, AC Milan signed a “Consent Award” with UEFA before the CAS. It was an important and necessary step to solve the long-standing issue with UEFA regarding Financial Fair Play. The basis of this agreement is AC Milan’s strong commitment to UEFA rules and the awareness that the “Consent Award” has been a crucial step to bring the Club back on a path of virtuous growth, built on the solid grounds of sustainability and planning.

The 2018/19 season ended with the arrival of the new Chief Football Officer, Zvonimir Boban, and of the new Sports Director, Frederic Massara, who, alongside Paolo Maldini took over the sporting area of the Club.

Annual Report / 2018/2019 61 A New Stadium for Milan

On July 9th, 2019 AC Milan and FC Internazionale Milano submitted to the city of Milan the projects for the new Stadium for Milan. AC Milan and Inter Milan, whilst rivals on the pitch, have joined forces for the sake of football and of the city of Milan to create a new generation world-class stadium for the city and the two teams. This innovative multifunctional district will be dedicated to sports, entertainment and shopping open 365 days a year. The area will include new usability and vitality for the area, a widespread park, a new underground road system for the revitalization and the integration of the whole district with San Siro’s sporting vocation. The characteristics of the project

An innovative venue, open throughout the year The new stadium is included in a modern district, open 365 days a year and in a project for the redevelopment of the entire area.

A new district dedicated to sports and entertainment San Siro is going to become a district dedicated to sports, entertainment and shopping not only during the “match- days” while integrating the sporting vocation of this area of the city.

A world-class stadium The new Stadium for Milan is going to be very modern, in line with the top-class international standards, with more than 60.000 seats that can be shaped according to the needs of the Club playing the home match.

“Zero-impact” plant Thanks to the materials used and the water and energy saving technologies, it will be a “zero-impact” stadium with the LEED certification. The subterranean structure and the shell will reduce noise emissions.

Maximum accessibility, safety and sustainability No architectural barriers in the new stadium that will also provide for separate entrances and tailor-made services for families, fans, players and plant operators. The new entirely underground road system and the 89,000 m2 of greenery and soft mobility on the surface will reconnect the surrounding neighbourhoods and make the flows during the match days fluid and orderly.

A unique experience for fans All fans will be able to enjoy a unique and top-quality overview of the pitch thanks to the comfort of the seats and to the variety and top-level services offered, from the restaurant to the museum.

A new point of reference for Milan A new stadium at San Siro is the decisive step to tell the new generations the history, the passion and the emotions experienced in such an important place for the sporting history of the city. AC Milan and FC Internazionale Milano are going to invest a lot of energies and money to build a home is going to guarantee the future of the Clubs and of the supporters. The city of Milan deserves a revitalised, innovative and green area for the sake of the citizens and of the supporters who live San Siro.

1,2bn Investments 3.500 Employments The Clubs are going to invest 1€,2bn for The feasibility study provides for benefits in the the construction of the new stadium and the employment sector and estimates a 3,500 increase in regeneration of the San Siro area. the number of jobs generated by the fully operational stadium and district, net from the building work.

/ Annual Report 62 2018/2019 The path The Legge Stadi (the law on stadiums)

The average age of Italian professional football stadiums is over 60 years, and investments into Italian football stadiums over the last decade amount to just €150m, in comparison to the €15bn investments in Europe This lack of investment has resulted in Italy lagging behind in terms of urban quality, appeal, and overall experience at sports events. As a result, the promotion of the renovation of existing sports facilities and the construction of new ones in our Country, especially regarding their safety and economic sustainability for Clubs and public administrations, has been set as a priority, with a special bill passed in 2013 and amended in 2017. Along with streamlining administrative processes, the bill allows the building of sports infrastructures and of other properties with different purposes (which are complementary or functional to sports facilities, as long as they are not for residential purposes), in order to guarantee its financial-economic sustainability. More value to the Clubs

The way people enjoy sports events, and football matches in particular, has radically changed over the years. The modern stadiums aim to provide more comfort, technological innovation, security, energy and environmental sustainability. In fact, over recent years, some of the top Clubs in the world, together with the cities they represent, have invested huge amounts of money in order to have new generation stadiums, complying with global quantitative and qualitative standards. This has enabled them to participate in top international competitions and has ensured fans a unique sports and entertainment experience. Thanks to these investments, various top Clubs, like Bayern Munich and Arsenal FC, have achieved over €100m revenues a year, allowing them to invest more in players, managers, coaches, fans’ experience, youth sector, and corporate social responsibility. As of today, neither AC Milan nor Inter Milan earn half of the aforementioned revenues from the current Meazza stadium, which ultimately has a negative effect on performances and opportunities for the Clubs. More value for the city

Public-private synergy The existing stadium and land are owned by the Municipality of Milan. The two Clubs share the use of the stadium pursuant to the granting of rights of use (valid until 2030, with the possibility of opting-out with a two-year notice) upon the payment of a lease to the Municipality and the provision of maintenance operations. Inter Milan and AC Milan are proposing an entirely private-funded €1.2bn investment for the construction of the new Stadium and the multi-purpose district. From a contractual perspective, the proposal envisages the execution of the plan and the subsequent management to be regulated by a 90-year land-use rights concession to the Clubs. At the end of the aforementioned period, the Stadium and the multi-purpose district shall be handed over to the Municipality fully efficient and functional. The Clubs shall manage all of the ordinary and extraordinary maintenance of the Stadium and the multi-purpose district over the aforementioned period.

Annual Report / 2018/2019 63 Asset and economic value Therefore, the city of Milan, with no outlay of public funds, would benefit from a much higher quality stadium and from the regeneration of an under-used area (the paved lot next to the Meazza Stadium), reconnecting and giving more value to the nearby districts. Moreover, given that at the end of the land-use concession both the Stadium and the multi-purpose district will be given back to the Municipality of Milan, the assets of the municipality will receive a 1.2 billion Euro totally private-funded new area. In addition, the City will benefit from: • 81 million Euro in public works (primary and secondary urbanization) generated by the plan; • the payment of a lease by the Clubs after the the amortization of the investment, as provided for by this kind of agreements.

Impact on employment The execution of the works, estimated to last 72 months, will create around 600 new jobs. A 3,000 - 3,500 increase in the number of jobs per year is estimated with the stadium and the district at full capacity.

Why a new stadium The Meazza Stadium today

Initially, the Clubs assessed the possibility to renovate the Meazza stadium and, therefore, carried out a thorough analysis of the property and its management in order to have a clear overview of the conditions of the property and its maintenance needs.

/ Annual Report 64 2018/2019 Facility and location Lo stadio esistente è il risultato della sovrapposizione di almeno tre strutture, costruite in epoche lontane tra di loro: il primo anello raggiungerà il secolo di vita tra poco più di cinque anni. L’impianto nel suo complesso risulta pertanto eterogeneo nella sua composizione e le strutture più datate, corrispondenti all’intero primo anello, presentano un certo grado di obsolescenza. Confinando a est con via Piccolomini, che lo separa dall’area ex-Trotto, lo stadio non può espandersi che in modo molto limitato.

Capacity, accessibility, security The current 78,000 seats make it one of the highest capacity stadiums in Europe. However, over the last 10 years, the average attendance was of about 47,300 spectators, leaving entire sectors empty. Conversely, premium seats represent just 4% of total capacity (and, furthermore, the whole pitch is not visible from the skyboxes), whereas in European top club facilities, the average premium seats amount to around 15%. The current accessibility has many shortcomings, not just for disabled people, but also for children and elderly people. With reference to safety, the facility complies with safety standards only because there was a derogation to current regulations. The so-called safety area, for example, is less than 0.5 sq.mt. / person and there is no more space to expand it.

Efficiency, comfort and services As regards to the pitch, the difficulty to grow and have a steady lawn is an unsolved problem. Many solutions have been tried; however, there has been no conclusion, since the rings (stands) surrounding it cast a shadow over the pitch. Regarding spectators’ comfort, the third ring is highly inadequate in terms of seat conditions, use of access paths and distribution, while the second ring spaces are insufficient and inefficient for the ordinary management of spectator flows. Even the food courts and toilets are below European standards. In addition, there are no service spaces (warehouses, technical rooms, offices etc.) and commercial areas (shops, catering facilities with kitchens etc.) and this is a big issue also when there are top events.

Noise impact San Siro residents have been complaining for years about the noise impact produced by the events hosted at the Stadium, as the volumes have exceeded legal limits several times. It is partly due to the structure of the Meazza stadium because the sound “leaks” from the sides of the facility.

Maintenance and management costs Ordinary and extraordinary maintenance operations allowing the proper functioning of the current stadium will sharply increase over the next years in order to improve the functional and/or structural efficiency of the current facility.

Annual Report / 2018/2019 65 A new stadium Projects features

Where The Milan Stadium would be built in the western part of the San Siro area, partly occupying the foundations of the old Sports Arena, currently used as a paved parking lot, leaving the Meazza stadium operational until the end of the works. The facility will be North/South oriented with a slight tilt towards the West in order to allow the creation of a big square in the middle of the construction lot, which will be the heart of the project.

The facility The stadium will be made of two rings and have a capacity of around 60,000 seats. It will be placed over a plate that is larger than its foundations and it will be raised by around two meters from the ground (“Podium”). The pitch will be subterranean, placed seven meters below the project’s zero level, thus reducing the visual and noise impact of the facility and providing more functional entrance and exit paths. Consequently, the facility will be much less invasive than the current stadium, integrating perimeter gates in the Podium, and will offer 127,000 sq. mt. for service areas, shops and restaurants, players’ areas, hospitality, press areas, technical facilities, and parking lots, etc.

The pitch The size of the pitch will be the same as the current one, while the turf will still be hybrid, made of a blend of artificial and natural grass. The growth of the turf will be ensured by an artificial lighting system and an air circulation system that are going to create the most suitable microclimate for the pitch.

Maximum accessibility for everybody Fans will be able to access the stadium’s sectors through multiple staircases, along with lifts all over the perimeter, as well as turnstiles. The improved seats will be much more accessible for everybody than the current seating. Teams, VIPs and facility staff will access the stadium through the reserved car entrances along via Tesio and the completely renovated Patroclo tunnel. The parking spots for disabled people will be located next to the main lifts. Two drop off areas, North and South of the Podium, will be reserved for away fans buses and can be directly accessed from their designed stadium sectors.

Comfort and experience The construction of a bowl around the pitch aims to optimise spectators’ overview, as well as to improve the seating comfort, ease of walking and accessibility to all areas, from pitch accessibility for teams and referees (as well as emergency vehicles and maintenance equipment) to service facilities: toilets, catering areas, nursery, first aid stations, etc. An area dedicated to a museum that celebrates the heritage of the Meazza stadium is also envisaged.

Flexibility The stadium has been designed with the capability to be personalised, in order to host the fans of both Clubs according to the nature of their rooting and integrate them with the new stadium, as well as an appropriate venue to host sports and other events, such as the traditional concerts hosted at the Meazza stadium. Two sectors will be reserved for away fans, one in the Northern part, the other in the Southern one (depending on which Milan club is playing home), with safe and easy access. The Stadium will have up to 12,500 Premium seats, with a flexible capacity in relation to the importance of the match.

/ Annual Report 66 2018/2019 Environmental sustainability

Compared with the Meazza stadium, the new stadium will bring many benefits in terms of: • Visual impact: building a subterranean stadium will allow for a significant reduction of the visual impact: it will be 30 meters tall from ground level, compared to 68 meters of the current Meazza stadium. • Noise impact: the stadium is going to be a single-volume building with a closed lateral shell, therefore the sound will only propagate upwards. This will guarantee the compliance with the 60dB noise limit in the surrounding area. • Traffic: roads and parking lots will be underground thanks to the renovation of the Patroclo tunnel (widened and connected to the internal road network), while there will be pedestrian and bike paths connected to the local public transportation network in the surface. • Energy impact: the Meazza stadium is now producing around 2,000 tons of CO2. However, thanks to latest generation facilities, a high-performance shell and the synergy with the Multi-purpose District, we can have a “zero- emission Stadium”. 50% of the energy demand will be provided by renewable sources, while groundwater will be used for 100% of the heating and conditioning demand. The project provides for the creation of a district heating- district cooling network, with centralized energy production, so as to reduce the installation area, the number of heat pumps and wells, management and maintenance costs, and to generate a higher energy efficiency. • Water impact: in order to reduce water consumption, the project aims at its storage as well as at maximizing the recycling and alternative supplies, with an integrated and sustainable approach throughout the site. Among the solutions considered there is also an air conditioning system that picks the moisture, recovers rainwater and gray waters, etc. For all non-drinkable purposes, no water will be taken from the waterworks, instead, the new stadium will re-use water to cover 100% of irrigation demands for green areas and for the twin networks of toilets. • Environmental certification: the entire intervention will be certified pursuant to the voluntary LEED protocol as a further guarantee of respect for the environment throughout the life cycle of the properties. • The impact of the construction site: in order to minimize possible environmental and safety issues for the life of the neighbourhood and the stadium’s activity, all the most modern systems for noise and dust reduction will be put in place by positioning control / monitoring units, so as to allow any optimization.

Annual Report / 2018/2019 67 A new district

The Clubs’ Proposal fully redesigns the San Siro area, with a New Stadium next to the current one and a “multi- purpose complex” in the space where the Meazza Stadium currently is. The area will include many facilities, such as entertainment areas and shops, and will offer services for fans, residents and tourists 365 days a year. Overall, the plan involves 165,000 square meters of gross surface.

The area The San Siro area is in the western part of Milan, along the road leading to Novara; it is bordered in the North by Lampugnano and QT8 districts and in the East by Milano City Fair, whilst in the South it borders the Baggio district and in the West the Trenno Park. This area has a strong sports tradition: along with the Stadium, it houses the galloping racecourse, the former trot racecourse, and the recently renovated Palalido sports hall. Furthermore, the area where the new stadium would be built used to host the old Sports Arena, before it was removed after the 1985 collapse. The surrounding housing complex is composed of ALER buildings and the detached single-family INA Casa Harar Dessiè social housing buildings (South) and luxury villas and properties with broad green areas (North). Other important facilities in the area are the “San Carlo” hospital, a point of reference for the western side of the city, and the Don Carlo Gnocchi Foundation, a renowned rehab. The area is well connected by the public transport network, both on the surface and underground with lines 5 (Lily) and 1 (Red).

The regeneration The construction of the new Milan Stadium and its multi-purpose district would provide an important regeneration for the surrounding area. Currently, the stadium in in between working-class neighbourhoods and the villas of the garden city, and it is a “non-place” in the days when the stadium is not operational. The regeneration of the whole area will provide a new destination, characterized by the inclusiveness of the park, easy mobility and commercial and social life, which is, at the same time, complementary and independent from match days. This continuity will allow the integration of the traditional sporting vocation of this area with exciting new facilities and services and the use of green and open spaces. Moreover, the Proposal will translate into a highly valuable urban-architectural project, thanks to the work of the most renowned international design and architecture firms bidding for the project, through the most cutting-edge technical and building solutions based on the demands of fans and residents.

/ Annual Report 68 2018/2019 The Masterplan The multi-purpose district revolves around a big square with, a mall, over which there will be an entertainment space along Via Dessié and Piccolomini (southward) and different height buildings having a tertiary/office and reception/ hotel/conference purpose (northward). However, today’s arrangements are currently hypothetical and may be fine- tuned during the following phases of the process. At the same time, the architectural firm that is going to win the bid will provide for a top-quality project that is respectful of the current surroundings.

The widespread park The center of the area is devoted to public spaces, with alternating squares and specially designed green areas according to the widespread park model increasingly appreciated in urban contexts. Squares, green areas, urban boulevards, water mirrors will be integrated and complemented by other surfaces at different heights, such as the green roofs on commercial areas in the northern part. The environmental benefits produced by the creation of a widespread park over an area currently occupied by the stadium and a paved parking lot will be even more evident thanks to the decision to build underground roads and parking areas therefore providing new leisure spaces. Overall, green pedestrian and tree areas will cover around 89,024 sq.mt. (compared to the current 55,870 sq.mt.).

The new road system The Proposal is supported by an important road network study in order to reduce traffic even on match days. In particular, the Patroclo tunnel will be completely renovated and will play a key role in the regeneration of the whole area, since it will manage the flow of public and private vehicles. Roads, parking lots and walkways will not have any permanent nor provisional obstacle. The design will allow for a smooth flowing of traffic and safe movement also for people with disabilities. There will be equipped service areas (play/eating) with roofed spots and toilets, tables and accessible games.

Annual Report / 2018/2019 69 OBJECTIVES

One of the goals set for the 2019/20 season is certainly to move forward with the New Stadium project: the desire is to continue the virtuous dialogue with the political institutions to obtain the necessary planning consent to finally start the works.

To this end, the Club wants to be increasingly open and transparent with its Stakeholders, fans and the city of Milan, to create greater awareness and information about this project which is so important for the Club and for all Italian Football.

The New Stadium project goes hand in hand with Sustainability. The architectural firms involved in the project became very passionate about the Clubs’ clear demands, ie to offer the city of Milan a new sports facility completely sustainable, less cumbersome in terms of volume and noise pollution than the old San Siro stadium and with large green areas to enhance the new District.

The Club’s other objectives are relevant to the Club’s financial sustainability and full compliance with UEFA’s rules on Financial Fair Play. The lining-up of a young team, with a reasonable amount of money in relation to the Club’s turnover is the basis from which AC Milan must start again to become a point of reference for World Football once again. AC Milan also wants to continue to maintain and develop excellent relations with football institutions and its Stakeholders, increasingly standing against all forms of discrimination and violence still present today in the world of Football, proudly reaffirming the Club’s virtuous values.

/ Annual Report 70 2018/2019 17

FINANCE, CONTROL AND ADMINISTRATION

The primary purpose of the FCA Department is the correct administration, the fiscal and financial control, as well as the appropriate management of the Group’s resources. The mission is to contribute to the management of the Club, collaborating in its economic development and assets preservation, thus providing an important support for strategic planning.

The main tasks and responsibilities of the division are: • To provide economic and financial results, through the drafting of the financial statements and the consolidated financial statements and the management of mandatory sports requirements. • To ensure to the Club all the necessary resources at the best possible conditions, through the management of relations with banks, the management of the Club’s treasury and cash, as well as the identification of appropriate financial policies; • To fulfil all fiscal and administrative obligations, through the verification of the legitimacy of administrative deeds and contracts and the management of fiscal obligations. • To implement the Performance Audit, through the preparation of the annual budget, the regular analysis of the variances between the budget and the final balance sheet, and the management of the mandatory sports obligations.

SEASON KPIs 2018-2019 2017-2018 Economic Value generated by the Group 242,606 257,139 Revenues from sales and services 34,112 35,338 Change in inventories still in progress, of semi-finished products 100 -125 Change of contract work in progress - - Increases for capitalised costs and fixed assets - - Other revenues and income 206,906 220,395 Financial income 687 1,531 Value adjustment on financial activities 801 -218 Economic value distributed 288721 254672 Production costs reclassified 88,683 75,504 Raw, ancillary, consumer materials and goods 5,145 4,030 Services 50,923 47,813 Use of assets owned by third parties 9,160 10,095 Risks provisions 23,455 13,566 Other management charges 184,822 150,397 Staff remuneration 184,822 150,397 Staff costs 11,788 23,844 Payment to financiers 11,788 23,844 Financing costs 3,447 4,803 Payment to Public Administration 3,447 4,803 Income taxes -46,119 2468 Economic value retained by the Group 92,985 110,522 Amortization and depreciation 6,885 17,965 Operating result -145,985 -126,019

Annual Report / 2018/2019 71 Change of ownership

On April 13, 2017 Fininvest S.p.A., the company that was the majority shareholder of the Club, finalised the sale of the equity investment held in A.C. Milan S.p.A. equal to 99.93% of the Club’s share capital to Rossoneri Sport Investment Luxembourg S.à r.l., a special purpose vehicle designated by the Chinese company Sino Europe Sport Investment Management Changxing Co.Ltd. to implement the sale and purchase agreement signed on August 5, 2016 and subsequently supplemented and amended.

The current controlling shareholder of the Club is Rossoneri Sport Investment Luxembourg S.à r.l., owner of 99.93% of the share capital of A.C. Milan S.p.A. As of today, the share capital of Rossoneri Sport Investment Luxembourg S.à r.l. is entirely owned by Project Redblack S.à r.l., whose share capital is owned by Blue Sky Financial Partners S.à r.l. and by some companies indirectly owned by Elliot Associates L.P. and Elliot International Limited.

In July 2018, the ordinary shareholders’ meeting of A.C. Milan S.p.A., convened at the request of the controlling shareholder, took note of the resignation of some directors and deliberated the revocation of the directors still in office, while appointing a new board of directors and a new chairman. In December 2018, the Shareholders’ Meeting of A.C. Milan S.p.A. resolved to integrate the members of the Board of Directors by electing the current CEO of Milan S.p.A.

Bond

An important event that occurred in 2017-2018 concerns the issue and subsequent early repayment of the bond issue. In the first half of 2017, a double bond was issued to repay a shareholders’ loan and for the investments necessary for the transfer market. The loans were signed by Project Redblack S.à r.l., expiring in October 2018.

On September 28, 2018 A.C. Milan S.p.A., pursuant to the voluntary early repayment provided for in the contract fully repaid the “Prestito Obbligazionario Garantito Associazione Calcio Milan S.p.A. 2017-2018-Serie 1°”, aimed at fully repaying the company’s indebtedness towards the parent company Rossoneri Sport Investment Luxembourg S.à r.l., and the “Prestito Obbligazionario Garantito Associazione Calcio Milan S.p.A. 2017-2018-Serie 2°”, aimed both at financing the players’ signing campaign and at meeting the liquidity requirements of the AC Milan Group companies.

June 30, 2019 June 30, 2018 June 30, 2017 BONDS - 116,520,000 74,346,000

/ Annual Report 72 2018/2019 200.000 184.822

150.000

100.000 88.683

50.000 11.788 3.447 -46.119 0 Costi della Remunerazione Remunerazione Remunerazione produzione del personale dei finanziatori della pubblica riclassificati Amministrazione -50.000 Valore economico trattenuto dal Gruppo 100.000

As of June 30, 2019, the consolidated Net Financial Position of the AC Milan Group showed net debt of € 82.9 million, a significant improvement on 2017/2018 (€ 128.4 million). This is mainly due to: 1. The repayment of the bond made in September 2018 (€116 million). 2. Procurement of working capital financing sources from new banking credit lines.

The improvement in the Net Financial Position implies a more limited net exposure of the Group to third party financers. During the 2018/2019 season, the Group invested in various business areas including the Milan Media House, corporate structures and top management. In particular, with regard to the top management, we made important investments for key figures.

Annual Report / 2018/2019 73 OBJECTIVES

The AC Milan Group’s objective for the 2019/2020 season is to implement a new procurement procedure to clearly define responsibilities and internal guidelines for the operational and administrative-accounting management of the procurement process of goods and services. In particular, we are planning an automated process to reduce the time between the issue of the Purchase Requests and the orders, with the aim of pursuing efficiency and effectiveness.

The goal is to ensure: • Appropriate separation of responsibilities within the process and traceability of each procurement operation; • Efficiency, completeness, accuracy and timeliness in the purchasing process, respecting the criteria of quality, reliability and cost-effectiveness; • A selection process based on the principles of impartiality, transparency, correctness and ethics, through systems of continuous monitoring of suppliers of goods and services.

A further objective for the next season is the implementation of new Management Control systems. The aim is to obtain a precise analysis and verification of the management trend, reporting any variance from the Budget objectives. The implementation of the system would also support the outlining of a more accurate and detailed planning of the Core Business on a multi-year basis.

/ Annual Report 74 2018/2019 Annual Report / 2018/2019 75 FACILITIES

Casa Milan electricity consumption

2019 2018 2017 euro kwh euro kwh euro kwh JANUARY 14,685.00 87,027 7,341.14 38,857 2,354.14 5,865 FEBRUARY 35,501.00 247,873 37,879.00 298,525 1,724.93 5,082 MARCH 35,669.00 255,193 34,346.00 267,536 4,873.08 29,197 APRIL 34,789.00 242,314 26,287.00 203,398 6,055.10 38,316 MAY 34,207.00 237,712 27,054.00 207,962 26,642.33 196,810 JUNE 40,786.00 280,428 31,765.00 657,269 40,861.96 311,899 JULY 42,418.00 296,233 39,241.00 283,614 43,436.69 312,204 AUGUST 39,607.00 276,890 40,659.00 282,764 42,778.39 305,288 SEPTEMBER 33,725.00 236,603 36,784.00 238,110 26,304.83 200,247 OCTOBER 34,720.00 242,825 25,008.00 161,575 9,903.24 72,917 NOVEMBER 41,658.00 272,535 6,823.69 32,244 5,262.00 30,687 DECEMBER 41,552.00 282,874 1,930.00 3209 4,443.00 22,834

TOTAL 429,317.00 2,968,607.00 315,117.83 2,675,063 214,639.69 1,531,346

Casa Milan gas consumption

2019 2018 2017 euro SMC euro SMC euro SMC JANUARY 45,635.19 138202 5,648.63 18,853 FEBRUARY 9,679.91 27619 0.00 0 17,514.34 64,536 MARCH -7,178.00 0.00 0 18,711.00 70,118 APRIL 550.00 0 0.00 0 14,843.66 62,961 MAY 289.00 0 0.00 0 5,704.13 23,010 JUNE 620.00 0 0.00 0 718.78 313 JULY 1,327.00 1885 0.00 0 479.56 39 AUGUST 164.00 224 0.00 0 557.79 - SEPTEMBER -232.00 -1885 OCTOBER 550.00 0 0.00 0 556.66 7,474 NOVEMBER 550.00 0 4,963.00 14057 12,263.27 48,075 DECEMBER 550.00 0 15,583.00 61,900

TOTAL 53,055.10 166,045.00 6,218.94 18,687 110,424.82 428,445

Casa Milan water consumption

quarter 2019 2018 2017 euro mc euro mc euro mc 1 1,240.00 2,341 2,808.15 2,848 1,222.00 1,983 2 1,453.97 2,165 € 1,041.00 1,258 3 € 1,047.00 2,281 1,079.95 1,115 4 € 1,039.00 3,264 28.11 55

TOTAL 2,693.97 4,506 5,935.15 9,651 2,330.06 3,153

/ Annual Report 76 2018/2019 Electricity supply cost analysis 2019/2018 - ac milan s.p.a. / milan real estate

CONSUMPTIONS (kWh) ACTIVE ENERGY site name 2019 2018 CASA MILAN 2,160,273 2,677,063 VISMARA - Building 1,115 VISMARA - Fields 25,707 MILANELLO 254,002

TOTAL 2,160,273 2,957,887

COSTS ACTIVE ENERGY site name 2019 2018 CASA MILAN 131,252 130,388 VISMARA - Building 54 VISMARA - Fields 1,274 MILANELLO 12,530

TOTAL 131,252 144,247

2019 2018

CONSUMPTIONS CONSUMPTIONS

Building Building Fields Fields

jan-19 feb-19 mar-19 apr-19 may-19 june-19 july-19 aug-19 sep-19 oct-19 nov-19 dec-19 jan-18 feb-18 mar-18 apr-18 may-18 june-18 july-18 aug-18 sep-18 oct-18 nov-18 dec-18

COST COST

Building Building Fields Fields

jan-19 feb-19 mar-19 apr-19 may-19 june-19 july-19 aug-19 sep-19 oct-19 nov-19 dec-19 jan-18 feb-18 mar-18 apr-18 may-18 june-18 july-18 aug-18 sep-18 oct-18 nov-18 dec-18

Annual Report / 2018/2019 77 Gas supply cost analysis 2019/2018 - ac milan s.p.a. / milan real estate

CONSUMPTIONS ( smc) ACTIVE ENERGY site name 2019 2018 CASA MILAN 143,899 79,614 VISMARA 5,694 MILANELLO 41,219 MILANELLO 16,017 MILANELLO

TOTAL 143,899 142,544

COSTS ACTIVE ENERGY site name 2019 2018 CASA MILAN 58,382 27,177 VISMARA 2,123 MILANELLO 15,199 MILANELLO 6,550 MILANELLO

TOTAL 58,382 51,048

2019 2018

CONSUMPTIONS CONSUMPTIONS

jan-19 feb-19 mar-19 apr-19 may-19 june-19 july-19 aug-19 sep-19 oct-19 nov-19 dec-19

jan-18 feb-18 mar-18 apr-18 may-18 june-18 july-18 aug-18 sep-18 oct-18 nov-18 dec-18

COST COST

jan-19 feb-19 mar-19 apr-19 may-19 june-19 july-19 aug-19 sep-19 oct-19 nov-19 dec-19 jan-18 feb-18 mar-18 apr-18 may-18 june-18 july-18 aug-18 sep-18 oct-18 nov-18 dec-18

/ Annual Report 78 2018/2019 Annual Report / 2018/2019 79