Olympique Lyonnais Groupe : FIRST-HALF FINANCIAL REPORT 2021/22

F I R S T - H A L F F I N A N C I A L R E P O R T

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Contents
MANAGEMENT REPORT ON THE FIRST HALF OF 2021/22................................	3
1-1	FIRST-HALF REVENUE .......................................................................................................	3
1-2	COMPONENTS OF NET PROFIT .............................................................................................	5
1-3	SIMPLIFIED, CONSOLIDATED BALANCE SHEET AND DEBT ............................................................	6
1-4	PLAYER TRANSFERS AND LOANS..........................................................................................	7
1-5	RISK FACTORS ................................................................................................................	8
1-6	CHANGES IN PRINCIPAL AGREEMENTS ...................................................................................	8
1-7	PRINCIPAL TRANSACTIONS WITH RELATED PARTIES .................................................................	11
1-8	APPROVAL OF THE CONDENSED CONSOLIDATED FIRST-HALF FINANCIAL STATEMENTS .......................	11
1-9	FOOTBALL RESULTS AS OF 31 DECEMBER 2021 .......................................................................	11
1-10	EVENTS SINCE 1 JANUARY 2022 ..........................................................................................	12
1-11	FOOTBALL RESULTS AS OF 15 FEBRUARY 2022........................................................................	12
1-12	OUTLOOK FOR THE SECOND HALF OF 2021/22 .........................................................................	12
1-13	MEDIUM-TERM OUTLOOK..................................................................................................	12

CONDENSED CONSOLIDATED FIRST-HALF 2021/22 FINANCIAL STATEMENTS ......	15
HIGHLIGHTS ............................................................................................................................	17
PRESENTATION OF THE FINANCIAL STATEMENTS..........................................................................................................	20
INCOME STATEMENT ..................................................................................................................	21
CONSOLIDATED STATEMENT OF NET FINANCIAL POSITION ....................................................................	22
CASH FLOW STATEMENT .............................................................................................................	24
STATEMENT OF CHANGES IN EQUITY ...............................................................................................	26
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................	28

STATEMENT OF RESPONSIBILITY FOR THE FIRST-HALF FINANCIAL REPORT........

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REPORT OF THE STATUTORY AUDITORS ON THE FINANCIAL INFORMATION
FOR THE HALF-YEAR PERIOD.................................................................	59

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MANAGEMENT REPORT ON THE FIRST HALF OF 2021/22

Revenue and earnings in H1 2021/22 (1 July to 31 December 2021) confirmed the significant recovery in the Group's activity. Revenue during the period, excluding player transfers, was up 7% to €75 million, vs. €70.0 million in H1 2020/21. Including player trading, total revenue1 was €116.1 million, vs. €123.3 million in H1 2020/21.

As such, with the Covid crisis winding down, OL Groupe's H1 2021/22 EBITDA stood at €14.7 million, (a rise of €24.1 million vs. H1 2020/21), returning to the positive territory it had occupied since Groupama Stadium entered service in January 2016.

1-1FIRST-HALF REVENUE

On-pitch performance

After sitting out all European competitions during the 2020/21 season, an indirect consequence of the Covid-19 pandemic that began in March 2020, OL returned to the European stage this season, where it totalled 23 consecutive participations from 1997/98 until 2019/20, and is participating in the Europa League. As of 31 December 2021, the Club was first in its group and had qualified for the round of 16, which will be played in March 2022.

At the end of the first half of the 2021/22 Ligue 1 season, the Club was in 13th place, with a match in hand. This is because the OL/OM match of 21 November 2021 was terminated shortly after it started when a spectator threw a bottle onto the pitch. As a result of this incident, the LFP disciplinary committee punished the Club by requiring it play two matches with no spectators present (Reims on 1 December 2021 and a rescheduled match against OM on 1 February 2022) and by subtracting a point from its Ligue 1 standing.

In the Coupe de France, the Club lost its round-of-64 match, as did its opponent Paris PC, through a penalty imposed following half-time incidents in the stands that led to the match being terminated prematurely.

H1 2021/22 Total revenue: €116.1m (€123.3 million in H1 2020/21)

	in € m (1 July to 31 December)			31/12/2021		31/12/2020			Chg.			% chg.
	Ticketing		14.1	1.9	12.3		NS
	of which French Ligue 1 and other matches		10.4	1.9	8.5		NS
	of which European matches		3.7	0.0	3.7	-
	Media and marketing rights		30.5	44.2	-13.7	-31%
	of which LFP-FFF		16.1	17.3	-1.2	-7%
	of which UEFA		14.4	26.9	-12.4	-46%
	Sponsoring - Advertising		17.4	16.4	1.0	6%
	Brand-related revenue		9.1	7.1	2.0	29%
	of which derivative products		6.2	5.0	1.2	24%
	of which other brand-related revenue		2.9	2.1	0.8	39%
	Events		3.8	0.4	3.4		NS
	of which seminars and stadium tours		3.0	0.4	2.6		NS
	of which major events		0.8	0.0	0.8	-
	Revenue excluding player trading		75.0	70.0	5.0	7%
	Revenue from sale of player registrations		41.2	53.3	-12.1	-23%
	Total revenue (1)			116.1		123.3			-7.1			-6%

1. Alternative Performance Indicator (API): "Total revenue" corresponds to the previous definition of "Total revenue", i.e. revenue excluding player trading plus proceeds from the sale of player registrations.

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Ticketing revenue: up €12.3 million

(H1 2021/22: €14.1 million; H1 2020/21: €1.9 million)

In the first half of 2021/22, ticketing receipts increased, as fans were able to return to Groupama Stadium in unrestricted numbers, provided they had health passports, and three Europa League group stage matches were also played in the stadium. In the year- earlier period, matches were played with virtually no fans present as a result of the French government's public health restrictions.

Media and marketing rights: down €13.7 million or 31%

(H1 2021/22: €30.5 million; H1 2020/21: €44.2 million)

Media and marketing rights totalled €30.5 million in H1 2021/22, down €13.7 million or 31% from €44.2 million in H1 2020/21.

UEFA media rights reflected OL's participation in the group stage of the 2021/22 Europa League competition and totalled €14.4 million in H1 2021/22. In the year-earlier period, the Club did not take part in any European competition, but had recognised revenue from the 2019/20 Champions League Final 8, played in August 2020 (€26.9 million, OL in semi-final). Under normal circumstances, i.e. with no pandemic, this revenue would have been recognised in the 2019/20 financial year.

LFP/FFF media rights totalled €16.1 million in H1 2021/22, down €1.2 million from H1 2020/21, reflecting in particular the unfavourable impact of the Club's temporary ranking after the first half of the Ligue 1 season (13th vs. 1st in 2020/21).

Sponsoring and advertising revenue: up €1.0 million or 6%

(H1 2021/22: €17.4 million; H1 2020/21: €16.4 million)

Sponsoring-Advertising revenue rose 6% to €17.4 million, demonstrating the continued attractiveness of the OL brand. The Group anticipates further growth in Sponsoring & Advertising revenue, which could potentially set a new record of ca. €38 million in the 2021/22 financial year (provided the trend in public health conditions remains favourable).

Brand-related revenue: up €2.0 million or 29%

(H1 2021/22: €9.1 million; H1 2020/21: €7.1 million)

Brand-related revenue totalled €9.1 million in H1 2021/22, up 29%, vs. €7.1 million in H1 2020/21. Merchandising revenue, particularly matchday sales, posted robust growth of 24%, as stores reopened and fans returned to Groupama Stadium.

Events: €3.4 million

(H1 2021/22: €3.8 million; H1 2020/21: €0.4 million)

Revenue from seminars and stadium tours totalled €3.0 million in H1 2021/22. Very limited in H1 2020/21 owing to Covid-19, this activity bounced back to a particularly encouraging extent, with a record 266 seminars in H1 2021/22, despite numerous cancellations in December because of the fifth wave of Covid-19.

In addition, the first major event since the start of the pandemic was held in Groupama Stadium: the France-Finland match played before a sell-out crowd of 57,000 fans on September 7, 2021.

Revenue from sale of player registrations: down €12.1 million or 23%

(H1 2021/22: €41.2 million; H1 2020/21: €53.3 million)

During the first half of the 2021/22 financial year, even though the transfer market was hit hard by the pandemic, Olympique Lyonnais transferred several players: Joachim Andersen to Crystal Palace (€16.6 million), Maxwel Cornet to Burnley (€11.5 million), Jean Lucas to Monaco (€8.7 million), and Melvin Bard to Nice (€3.0 million). The Club also recognised sell-on fees received on previous transfers plus various other payments, totalling €1.3 million.

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