Real Zaragoza: modeFinance Credit Report

REAL ZARAGOZA SAD modeFinance Edificio A AREA Science Park, Padriciano 99 34149 Trieste ITALY Tel: +39 040 3755337 Fax: +39 040 3756741 mail: info@modefinance.com web: www.modefinance.com

Creditworthiness scale Extremely strong(AAA) Very strong(AA) Good(A)

CCC

Fundamental Credit Rating:

Company name Identification number Country ZIP code and city Address Phone Web site Email Legal form Account Incorporation date NACE 2 Sector Listed Status

REAL ZARAGOZA SAD ESA50034107 Spain 50009 - ZARAGOZA CL EDUARDO IBARRA, 6 +34 97 6567777 www.realzaragoza.com Not available Joint stock company - SA Unconsolidated 1992 9319 - Other sports activities Unlisted Active

mF Credit limit

190,000 e

Turnover (the) Rating Probability of default Confidence Level

30/06/2009

30/06/2008

30/06/2007

20,428

51,268

30,557

CCC 12.00% 100%

CCC 12.00% 100%

C 45.00% 100%

Leverage ratio

-6.83

-6.75

-5.49

Total asset/Total liabilties

0.85

0.85

0.82

Current ratio

0.59

0.64

0.76

Quick ratio

0.58

0.63

0.75

Adequate(BBB) Sufficient(BB)

Solvency ratios

Weak(B) High danger(CCC) Pathological(CC) Extremely pathological(C) Non return(D) Not available

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

1.56

4.47

-19.20

Return on equity ROE (%)

-13.33

-10.01

-1.43

Asset turnover

0.17

0.43

0.28

Interest paid weight

3.09

0.94

-0.12

EBITDA/Sales

0.69

0.37

-0.41

EBIT interest coverage ratio

0.27

0.94

-8.67

EBITDA interest coverage ratio

2.44

3.82

-5.17

Interest Coverage ratios

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Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Leverage ratio Total asset/Total liabilties

-6.83 0.85

0.25 4.96

1.65 1.61

2.36 1.15

-3.21 0.84

Current ratio Quick ratio

0.59 0.58

2.75 2.55

1.42 1.29

0.76 0.67

0.38 0.29

1.56 -13.33 0.17 3.09 0.69

14.87 10.97 0.69 0.00 0.20

3.52 4.72 0.23 0.09 0.14

0.36 -5.43 0.24 0.02 0.07

-5.19 -36.78 0.12 -0.07 -0.05

0.27 2.44

339.00 528.30

6.69 10.40

-0.45 2.18

-5.55 -3.02

5 825 268 562 CCC

4 14 7 15 104 A

5 18 8 20 500 BB

3 11 5 10 524 CCC

5 14 25 4 210 CC

Solvency ratios

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%) Return on equity ROE (%) Asset turnover Interest paid weight EBITDA/Sales

Interest Coverage ratios EBIT interest coverage ratio EBITDA interest coverage ratio

Cash Conversion Cycle (days) Days Sales Of Inventory (DIO) Days Sales Outstanding (DSO) Days Payable Outstanding (DPO) Cash Conversion Cycle (DIO + DSO - DPO)

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 9319 with financial data of year 2009.

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Sector Analysis - Graphs

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Balance Sheet BALANCE SHEET (th e) Accounting practice Exchange rate EUR - EUR Total assets Fixed assets Intangible fixed assets Tangible fixed assets Other fixed assets Current assets Stocks Debtors Other current assets Cash & cash equivalent Shareholders funds Capital Other shareholders funds Total liabilities Non current liabilities Long term debt Other non-current liabilities Current liabilities Loans Creditors Other current liabilities Total shareh. funds & liab.

30/06/2009 IFRS 1 110,566 54,317 22,479 13,974 17,864 56,249 259 46,152 9,839 5,648 -18,963 2,000 -20,964 129,529 33,436 24,071 9,366 96,093 17,458 15,004 63,630 110,566

30/06/2008 IFRS 1 95,248 49,406 39,866 8,610 929 45,842 326 31,518 13,998 7,968 -16,572 2,000 -18,572 111,820 39,981 28,595 11,387 71,839 7,516 45,689 18,634 95,248

30/06/2007 Local GAAP 1 104,033 44,282 26,984 15,482 1,816 59,751 338 45,553 13,859 13,001 -23,155 7,513 -30,668 127,188 48,294 35,862 12,431 78,895 24,055 17,667 37,173 104,033

NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent Net debt

30/06/2009 17,458 24,071 5,648 35,881

30/06/2008 7,516 28,595 7,968 28,142

30/06/2007 24,055 35,862 13,001 46,917

Working capital Net Current Assets

30/06/2009 31,407 -

30/06/2008 -13,845 -

30/06/2007 28,225 -

Days Sales Of Inventory (DIO) Days Sales Outstanding (DSO) Days Payable Outstanding (DPO) Cash Conversion Cycle (DIO + DSO - DPO)

30/06/2009 5 825 268 562

30/06/2008 2 224 325 -99

30/06/2007 4 544 211 337

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Income Statement INCOME STATEMENT (th e) Accounting practice Exchange rate EUR - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized Operating revenue / turnover Total costs Costs growth (%) Service costs Material costs Costs of employees EBITDA Depreciation EBIT Financial P/L Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L Extr. and other revenue Extr. and other expenses P/L before tax + Extr. and other P/L Taxation P/L for period

30/06/2009 IFRS 1 19,026 -53.8 1,402

30/06/2008 IFRS 1 41,184 41.4 10,084

30/06/2007 Local GAAP 1 29,119 1,438

20,428 7,388 -79 -23,866 713 30,541 13,040 11,590 1,450 -5,060 276 5,335 5,335 -3,609 -1,083 -2,527

51,268 36,034 -15 -5,447 1,435 40,046 15,234 11,483 3,751 -3,486 507 3,992 3,992 265 1,924 -1,659

30,557 42,505 9,542 670 32,293 -11,948 8,095 -20,043 -2,243 71 2,313 2,313 -22,285 22,799 24,659 1,861 513 182 331

Cash flow Added value

30/06/2009 9,063 43,857

30/06/2008 9,825 55,786

30/06/2007 8,426 43,215

Number of employees

30/06/2009 161

30/06/2008 159

30/06/2007 162

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Evolutions and trends

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Qualitative information

Full overview

It is a Spanish football club which has its registered business address located in Zaragoza, Spain. The club was formed out of two rival teams: Iberia SC and Real Zaragoza CD, in the year 1932. It plays in white shirts with royal blue shorts. In addition, the club holds games at the La Romareda, which is a multi - purpose stadium with a seating capacity of 34,596 spectators.

History

Was formed out of two rival teams: Iberia SC and Real Zaragoza CD.

Primary business line

A Spanish football club.

Secondary business line

Not available.

Main activity

Services.

Secondary activity

Not available.

Main products and services

A Spanish football club.

Size estimate

Not available.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

Spain.

Main foreign countries or regions

Not available.

Main production sites

Not available.

Main distribution sites

Not available.

Main sales representation sites

Not available.

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Main customers

Not available.

Auditor/Advisor/Bank type Banker Auditor

BSCH.OF - 2833.ZARAGOZA MORELLON BERNAD JUAN FRANCISCO

Board Mr Agapito Carmelo Iglesias Garcia

function President of the Board

date of birth -

nationality -

Sharehoders (the first twenty shareholders ordered by Direct %) CODESPORT SA Rating: BB Country ISO code NACE Rev. 2, Core code Direct % Total %

ES 86.00 -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

36 150 36 2010/08

Subsidiaries (the first twenty subsidiaries ordered by Direct %) GRUPO EMPRESARIAL ESMERALDA SOCIEDAD LIMITADA. Rating: BBB Country ISO code ES Operating revenue (MIL $) NACE Rev. 2, Core code Total Assets (MIL $) Direct % 100.00 Number of Employees Total % 100.00 Information date

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0 2010/08

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ZARAGOZA REAL ESTATE S.L. Rating: CC Country ISO code NACE Rev. 2, Core code Direct % Total %

ES 99.00 -

Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

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1 42 2010/08

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MORE rating guide General vision A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies.

The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company s strength and weakness thanks to sophisticated data mining tools and taking into account the analysts knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company as: profitability, liquidity, solvency, interest coverage and efficiency.

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Rating scale Rating class

Rating Macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent economic and financial flow and fund equilibrium.

AAA

AA

Healthy

A

BBB Balanced BB

B Vulnerable CCC

D

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from ’AAA’ is slight.

The company has a high solvency. The company is however more susceptible to the adverse effects of changes in circumstances and economic conditions than companies in higher rated categories.

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

A company rated ’BB’ is more vulnerable than companies rated ’BBB’. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.

The company presents vulnerable signals with regard to its fundamentals. Adverse business, financial, or economic conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

A company rated ’CCC’ has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase.

CC

C

Assessment

Risky

The company shows considerable pathological situations. The company’s capacity to meet its financial commitments is very low.

The company has not any longer the capacity to meet its financial commitments.

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Fundamental Credit Rating Ratios Solvency ratios Leverage ratio Assets to debt Financial ratios Fixed Assets coverage ratio Liquidity ratios Current ratio Quick ratio

Measures the level of total liabilities of the company in comparison with equity.

Indicates company s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

The current ratio measures whether a company has sufficient short-term assets to cover its short-term liabilities.

The quick ratio compares current liabilities only to those assets that can be readily turned into cash.

Profitability and economic ratios Return on Investement(ROI) It measures the profitability of company investments without regard to the way the Return on Equity(ROE) Asset turnover Profit margin Interest coverage ratio Interest Paid coverage

investment is financed.

It measures the profitability of the equity.

It indicates the investments turnover with regard to sales. The level assumed from the ratio depends on the sector in which the company operates.

It indicates the profitability of the sales.

Indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

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mF Credit Limit mF Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit: • Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector;; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data.

This value should be reviewed by paying attention at the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default and Confidence Level In addition to the MORE rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default.

As the probability of default is strongly affected by the economic climate the company is operating in, companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level: P Available Inf ormation Conf idence = P T otal Inf ormation The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

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NOTES The present analysis was based on the company available financial statements as provided by Bureau Van Dijk Electronic Publishing - ORBIS database (lack of both Notes to financial statements and Report on operations).

DISCLAIMER All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts Company Products Where Info web Phone

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