1ST QUARTER 2012/13 REVENUE

Total revenue: €44.3m (€48.4m in Q1 2011/12)

Sharp rise in player trading revenue: €22.1m (€10.3m in Q1 2011/12)

Strategy for return to operating breakeven by 2013/14

put in place

Lyon, 14 November 2012

OL Groupe's revenue for the first quarter of the 2012/13 financial year totalled €44.3 million, down 8.5%.

The principal factor behind this decline was media and marketing rights, which were down because OL is not competing in the Champions League in the 2012/13 season. In Q1 2011/12, these rights totalled €9.6 million. Similarly, the scope of sponsoring and advertising revenue was not the same this year as last. Last year, the first quarter included €4.5 million in non-recurring items; this year various non-recurring items will be recognised during the second half of the financial year (at the latest).

Last year the Board of Directors adopted a strategy for a return to fundamentals, with significant reductions in payroll and amortisation of player registrations as objectives. This has led to considerably higher revenue from the sale of player registrations than in the year-earlier period (€11.8 million more than in Q1 2011/12), largely offsetting the decline in other revenue categories.

Breakdown of revenue (1 July to 30 September)

* preliminary, estimated and unaudited figures

(1) after restating for non-recurring items recognised in 2011/12 (€4.5m), sponsoring revenues were stable.

(2) after restating for 2011/12 non-recurring items and Champions League media rights, total revenue excluding player trading was near that of the year-earlier period.

• Q1 ticketing revenue totalled €2.1 million (€4.0 million in Q1 2011/12). Ticketing receipts from European competition suffered the impact of less prestigious visiting teams in the Europa League than in the Champions League. In addition, fewer matches were played at home than in the previous year. In French Ligue 1 play, revenue from the first quarter was hit by several factors: subscriptions sold to local authorities declined, the highest drawing matchdays are scheduled for the second half of the year, in contrast to last year's schedule, and the economic context has been gloomy. Ticketing receipts should move favourably during the season, because the average individual ticket price is higher than that of tickets sold as part of a subscription plan, and the number of high-drawing matchdays will turn very much in OL's favour in the second half of the season.
  

• Sponsoring continued to show positive momentum. New renowned sponsors signed on this year both for the men's team (Hyundai) and for the women's team (April and Vicat). In addition, the two principal sponsors in European competition – Veolia for the men's team and GDF-Suez for the women's team – renewed their arrangements. Partnership and advertising revenue thus remained very high at €4.5 million vs. €4.6 million in Q1 2011/12 after restating for €4.5 million in non-recurring items in Q1 2011/12. Before restatement, sponsoring revenue totalled €9.1 million in Q1 2011/12. Various non-recurring revenue items are expected to be recognised in the second half of the year, at the latest.

• Media and marketing rights (LFP, FFF, UEFA) totalled €12.0 million, vs. €20.9 million in the year-earlier period. This was because the Group received €2.6 million in Europa League revenue in Q1 2012/13, vs. €9.6 million in Champions League revenue in the year-earlier quarter. In addition, last season OL participated in the preliminary round and in a supplementary match in the group phase of the Champions League. In French Ligue 1 play, new four-year TV broadcasting contracts, starting with the current season, have locked in a significant level of receipts and impart good visibility to this revenue category. In Q1 2012/13, OL recognised €9.4 million in media rights vs. €11.3 million in Q1 2011/12, related in large part to the club's third place standing as opposed to its second place position last year.

• Brand-related revenue was handicapped by a more difficult macroeconomic environment. Nevertheless, it totalled €3.6 million, vs. €4.1 million in the year-earlier period.

• Revenue from the sale of player registrations rose sharply to €22.1 million, from €10.3 million in Q1 2011/12. It corresponded to the transfers of Kim Källström, Aly Cissokho, Jérémy Pied, Hugo Lloris and Enzo Réales. Overall, summer 2012 trading activity resulted in a significant surplus of €13.2 million; this was in line with the strategy defined by the Board of Directors.

Medium-term strategic priorities and objectives

OL Groupe's Board of Directors reiterated the principles of the strategic plan when it approved the full-year financial statements. Based on a return to the fundamentals that made Olympique Lyonnais successful, the plan includes refocusing on an effective training academy and a significant reduction in the payroll. The objective is to return to operating breakeven by the 2013/14 financial year, while maintaining high performance on the pitch and ambitious sporting objectives.

Olympique Lyonnais has already reduced payroll and amortisation of player registrations by almost €20 million for the 2012/13 season. Efforts to contain the Group's fixed costs as a whole are continuing and should find further expression during the forthcoming winter trading window.

Equity plus the OCEANEs remained very high at nearly €100 million, after applying the net loss for the year ended 30 June 2012, thereby confirming the Group's sound financial condition.

Stade des Lumières

In order to adhere to the Euro 2016 schedule, earthworks began on 22 October 2012 at the new stadium site.

The Administrative Court's hearing concerning the appeal against the construction permit will take place in December 2012.

Discussions are underway regarding the bank financing structure. VINCI Construction France's completion objective includes guaranteed delivery within 30 months, enabling Olympique Lyonnais to take possession of the stadium for the 2015/16 season, in accordance with UEFA's requirements for the Euro 2016 competition. Lyon is a candidate city for the opening match, group stage matches and a semi-final match.

Sporting results to date

• Olympique Lyonnais is the only club in the Europa League to have won its first four group stage matches and has already qualified for the competition's round of 32. In French Ligue 1 play, OL is in third place, one point behind the leader, with a match in hand.

• The women's team has qualified for the quarter-final of the Women's Champions League. The women's team is in first place in its championship and will take part in a worldwide competition in Tokyo at the end of November.

The Annual Shareholders Meeting will be held on 18 December 2012 at 11.30am.

Next press release:  First-half 2012/13 earnings, 19 February 2013 after the market close.

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