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MANCHESTER UNITED PLC

MANCHESTER UNITED PLC PRELIMINARY RESULTS 2001 1 OCTOBER 2001 AGENDA INTRODUCTION Sir Roland Smith OVERVIEW OF RESULTS Peter Kenyon RESULTS IN DETAIL David Gill (P&L / B. SHEET / CASHFLOW) STRATEGY & FUTURE Peter Kenyon QUESTIONS OVERVIEW OF RESULTS Peter Kenyon

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MANCHESTER UNITED PLC

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  1. MANCHESTER UNITED PLC PRELIMINARY RESULTS 2001 1 OCTOBER 2001

  2. AGENDA • INTRODUCTION Sir Roland Smith • OVERVIEW OF RESULTS Peter Kenyon • RESULTS IN DETAIL David Gill (P&L / B. SHEET / CASHFLOW) • STRATEGY & FUTURE Peter Kenyon • QUESTIONS

  3. OVERVIEW OF RESULTSPeter Kenyon

  4. Summary of Results • Record turnover up 12% to £129.6m (2000 - £116.0m) • Operating profit before player amortisation and exceptional costs of £31.7m (2000 - £30.1m) • Player trading (amortisation and disposals) of £7.9m (2000 - £11.5m) • MUTV / Hotels losses of £0.6m (2000 - losses of £1.0m) • Exceptional costs of £2.1m (2000 - £1.3m) • Profit before tax £21.8m (£16.8m) • Total dividend increased by 5% to 2.0p (1.9p) - dividend covered 2.9 times (2.4) • EPS 5.8p (4.6p) [Pre players and exceptional costs 8.6p (8.1p)]

  5. RESULTS IN DETAILDavid Gill

  6. Summary Profit & Loss Account Year ended 31 July 2001 £’000 Year ended 31 July 2000 £’000 Turnover 129,569 116,005 Profit before player amortisation and exceptionals 31,680 30,073 Player amortisation (10,173) (13,092) Exceptional costs (2,073) (1,300) MUTV / Hotels (602) (982) Profit on player disposals 2,219 1,633 Net interest receivable 727 456 Profit before taxation 21,778 16,788 Taxation (6,841) (4,838) Profit after taxation 14,937 11,950 Earnings per share - basic 5.8p 4.6p - pre player trading 8.6p 8.1p Dividend per share 2.0p 1.9p

  7. Trading Background • Premier League Champions for 7th time in 9 years and for the 3rd consecutive season • Quarter-final of European Champions League (reached quarter-final or better in each of the last 5 seasons) • Gate receipts up 26% to £46.2m • Stadium operated at full capacity of 67,700 for the whole season (2000 - average capacity of 58,000) • 27 home games (up from 26) - 1 extra domestic cup game • Aggregate attendance 1,811,000 (1,497,900) - average of 67,100 (57,600) • TV income up 2% to £31.2m - increases from FAPL and ECL partially offset by no income in 2001 from World Club Championship, Inter Continental Cup and UEFA Super Cup (Note: £7m deposits received from new FAPL TV contracts not included (being deferred until 2001/02 to 2003/04)

  8. Trading Background - Cont’d • Sponsorship income up 21% to £22.5m - Vodafone and additional income from Platinum sponsors • Record conference and catering income of £7.8m - increase in match day events (MU plus non MU) and the additional facilities in the extended stadium • Merchandising & Other turnover down 7% to £21.9m - margin impact as well as we reduce stock levels in advance of handover to Nike (stocks down 45%) • Administrative expenses higher by £10m - increased player wage costs of £4.5m and additional depreciation charges of £1.5m • Exceptional costs of £2.1m - £1.8m from merchandising restructuring plus £0.3m of Football League Pension Scheme

  9. Turnover Analysis Year ended 31 July 2001£’000 Year ended31 July 2000 £’000 PercentChange Gate Receipts 46,202 +26% 36,626 Television 31,237 +2% 30,546 Sponsorship 22,451 +21% 18,513 Conference & Catering 7,754 +16% 6,698 Merchandising & Other 21,925 -7% 23,622 Total Sales 129,569 +12% 116,005

  10. Turnover Analysis Merchandising & Other Merchandising & Other Gate Receipts Gate Receipts Conference & Catering Conference & Catering Sponsorship & Royalties Sponsorship & Royalties Television Television Note: Improved mix of turnover - 77% derived from high margin gate, sponsorship and TV revenue streams (2000 - 74%)

  11. Profit before player trading and exceptional costs Year ended31 July 2001 £’000 Year ended31 July 2000 £’000 PercentChange Turnover 129,569 +12% 116,005 Cost of Sales (22,120) +10% (20,134) Gross Profit 107,449 +12% 95,871 Gross Margin 83% 83% Operating Expenses (75,769) +15% (65,798) Operating Profit 31,680 +5% 30,073 Operating Margin 24.5% 25.9% MUTV / Hotels (602) -39% (982) Interest Receivable 727 +59% 456 Profit before player trading and exceptional costs 31,805 +8% 29,547

  12. Operating Expenses Year ended31 July 2001 £’000 Year ended31 July 2000 £’000 PercentChange Wages and salaries 50,002 +12% 44,791 Other operating expenses 25,767 +23% 21,007 Total 75,769 +15% 65,798 Average number of employees 536 526 Temporary match day staff 1,346 1,275 Staff Costs / Turnover 39% 39% Note: Player wage costs increased by £4.5m (including social security costs)

  13. Impact of European Champions Cup EUROPEAN CHAMPIONS CUP 00/01 99/00 £m £m Turnover 23.6 20.9 Operating Profit 19.2 16.9 Margin 81% 81% % of total operating 60% 56% profit before player trading and exceptional items NOTE: Qtr-final of European Champions Cup in both years Note: ECL includes variable costs only - no fixed player wage allocation

  14. Balance Sheet 31 July 2001£’000 31 July 2000 £’000 Fixed Assets - Tangible 122,710 124,509 - Investments (1,128) (652) - Intangible (players) 71,117 32,315 Net (debt) / cash (1,237) 10,563 Debtors/Stocks 22,790 21,706 Creditors, Tax, Etc. (46,902) (41,693) Deferred Income (42,658) (31,798) NET ASSETS 124,692 114,950 NET ASSETS (pence per share) 48p 44p

  15. Cash Flow Year ended 31 July 2001 £’000 £’000 Net cash at 1 August 2000 10,563 Cash generated from operating activities 50,882 Transfer fee expenditure (43,310) Dividends / Interest / Tax (11,844) Fixed asset investment (7,802) Grant received 400 Investment in associate (126) (11,800) Net debt at 31 July 2001 (1,237)

  16. Gross cash balances Average balance 99/00 - £11m 00/01 - £14m Average base rate 99/00 - 5.66% 00/01 - 5.74%

  17. Capital Expenditure Year ended Projected 31/07/01 y/e 31/07/02 £’000 £,000 • Carrington training ground (II) 1,768 5,732 • Stadium expansion 1,139 - • Ticket / Membership building 481 1,654 • Land / Property / Car Parks 1,641 - • Stadium scoreboards 303 150 • Plant, fixtures, computers, cars 2,452 • Other identified projects - 7,364 7,784 14,900 Movement in creditors 1,448 Disposal proceeds (1,430) Per cashflow statement 7,802

  18. Enhancing shareholder value • FINANCIAL • Growth in top-line revenue more than funded increase in costs - increases at the key operating profit level of £1.6m and at the PBT level of £5.0m • INVESTMENT • Infrastructure funding now complete except Carrington Phase II (due to be completed by Spring 2002) • £50m gross investment in players • Post year end disposal of Stam for £15.25m • COMMERCIAL • Agreements reached to grow current revenue streams and develop new ones (Nike, Financial Services, Media etc.) • Renegotiation of contracts of key players within agreed and sensible parameters

  19. STRATEGY & FUTURE PROSPECTSPeter Kenyon

  20. Strategy - “Liberating the brand” Gate receipts Sponsorship CORE ACTIVITY = FOOTBALL Conference & Catering Television On-field Success Increasing Fan-base (Loyalty & Affinity) Products & Services / Brand Extension Monetising the Fan-base Examples Financial Services Merchandising (Nike) Media

  21. Future Prospects - Football • Players • Majority of first team squad secured on new contracts • Young, high quality squad designed to compete at the highest level in the UK and Europe • New international transfer rules - satisfactory outcome. • Balance Sheet values protected whilst investment in youth development is still encouraged • Manager • Considering a list of potential candidates • No progress expected until early 2002

  22. Future Prospects - Media • TV • New FAPL contracts - £1.6 billion over 3 years from 2001/02 • PPV trial • UEFA Champions League contracts due for renewal from 2003/04 • Other media • MUTV - Delayed rights now available 48 hours after each FAPL game • manutd.com - New agreement with TWIi - website will be revamped and relaunched in early 2002 • Media rights reverting back to the clubs from FAPL

  23. Future Prospects - Customers GLOBAL REACH - 50M WORLD WIDE FAN-BASE • NIKE • Alliance commences 1 August 2002 • MU retains control of the brand • Significant benefit to operating profit in year 1 • Financial Services • New and increased range of products - MU Finance • Lending, insurance and investment products alongside our existing credit card and savings account • Partnership with Bank of Scotland, Zurich Financial and our existing partners, MBNA and Britannia

  24. Future Prospects - Summary • Investments have been made for the future • Playing squad secured on new contracts • Initiatives to grow existing revenues and generate new ones • Benefits will start to be received in the second half of 2002 calendar year and beyond • Focused on delivering shareholder value

  25. Competitive Position MANCHESTER UNITED A TRULY GLOBAL SPORTS BRAND >>> MORE FANS IN MORE PLACES >>> STRATEGIC ALLIANCES WITH GLOBAL COMPANIES >>> STRATEGY AND VISION TO REMAIN THE LEADER ON AND OFF THE FIELD

  26. MANCHESTER UNITED PLC APPENDIX

  27. Key Trends Year ended 31 July 2001 2000 1999 Operating profit pre players (£m) 31.7 30.1 32.3 Operating margin 24.5% 25.9% 29.2% Earnings per share - Pre player trading 8.6p 8.1p 8.8p - Post player trading 5.8p 4.6p 5.9p Dividend per share 2.00p 1.90p 1.80p Dividend cover (times) 2.9 2.4 3.3 Net (debt)/cash (£m) (1.2) 10.6 37.6 S’holders’ funds (£m) 124.7 114.9 107.9

  28. Nike Alliance • Nike granted certain exclusive sponsorship, licensing and merchandising rights but MU retains control of the brand • No’ 1 sportswear brand & No’1 football club brand should drive international growth • 13 year agreement from 1 August 2002 - Nike have the option to break after 6 yrs • £303m guaranteed payments (subject to MU remaining in FAPL and competing in European competition) - yrs 1 to 4 - £20.8m p.a., yrs 5 to 8 - £23.2m p.a., yrs 9 to 13 - £25.4m p.a. - 50/50 profit share after guaranteed payments • Profit enhanced significantly from year 1 • Exceptional restructuring costs of c£2.5m (including non-cash items of £1.7m) to be incurred prior to 31 July 2002 • Reduction in Umbro royalty fees in 01/02 with contract ceasing 3 months early

  29. First Team Squad - Player details Contract Expiry 2002 2003 2004 2005 2006 2007 Van Der Gouw, Irwin, X Johnsen, Blanc X Beckham, Keane, May, X Fortune, Yorke, Silvestre X Brown, Carroll, Cole, Chadwick X Giggs, Solskjaer, Butt X Barthez, Veron, Van Nistelrooy X Neville G, Neville P, Scholes X

  30. Average Revenue per League Match

  31. Capital Expenditure Since Flotation £,000 Rebuilding of West Stand 10,300 Refurbishment of South and East Stands 5,790 Acquisition of United Trading Estate 9,125 Rebuilding of North Stand 18,650 North Stand fit-out (including Museum) 17,106 Land / Property / Car parks 8,533 Carrington Training ground (Phase I & II) 15,755 South Stand executive suites 3,004 Stadium expansion - East & West stands (including Megastore) 32,783 Ticketing / Membership building 481 Other (mainly plant, machinery, fixtures & fittings) 30,343 Total to 31 July 2001 151,870 Expenditure on future major projects (estimate) 14,900 166,770 Net Cash received from shareholders (flotation/placing) 23,425 Funded via cash generated 143,345 166,770

  32. Player trading NEW BASISOLD BASIS Year ended Year ended 31 July 31 July 2001 2000 2001 2000 £’000 £’000 £’000 £’000 Player amortisation 10,173 13,092 Expenditure 50,625 19,697 Player disposals (2,219) (1,633) Income (3,869) (6,048) Player trading 7,95411,459 Net transfers 46,75613,649 Analysis of transfer expenditure for year to 31/07/01 £,000 capital cash cost cost in the period van Nistelrooy 19,023 18,217 Veron 28,067 28,067 Carroll 2,925 - Other 610 1,220 50,625 47,504

  33. MANCHESTER UNITED PLC

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