RED FOOTBALL LIMITED

First Quarter Results

Fiscal Year Ended 30 June 2015

Bond Group Parent: Red Football Limited

Bond Issuer: MU Finance plc

21 November 2014

1
INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The summary financial information provided overleaf has been derived from the unaudited interim consolidated financial
statements of Red Football Limited as at and for the three months ended 30 September 2014 and 2013, which have been
prepared in accordance with International Financial Reporting Standards (“IFRSs”), as issued by the International Accounting
Standards Board (’IASB’) and IFRS Interpretations Committee (“IFRS IC”) interpretations.

2
INTERIM CONSOLIDATED INCOME STATEMENT - UNAUDITED

Three months ended

30 September
2014 2013
£’000 £’000
Commercial 56,746 59,857
Broadcasting 16,811 19,330
Matchday 15,113 19,334
Total revenue 88,670 98,521

Employee benefit expenses (49,352) (52,895)

Other operating expenses (18,987) (23,388)
Operating profit before depreciation, amortization, and profit on disposal of
players’ registrations (“EBITDA”) 20,331 22,238
Depreciation (2,336) (1,983)
Amortization (21,177) (11,904)
Operating (loss)/profit before profit on disposal of players’ registrations (3,182) 8,351
Profit on disposal of players’ registrations 18,328 996
Operating profit 15,146 9,347
Net interest payable on loans and deferred element of terminated interest rate swap (521) (616)
Foreign exchange losses on US dollar denominated bank accounts - (3,014)
Interest payable on secured term loan facility and senior secured notes (5,085) (4,916)
Amortization of issue discount and debt issue/finance costs (522) (296)
Costs associated with debt refinancing (1,249) -
Unwinding of discount relating to player transfer fees and onerous lease provision (519) (38)
Fair value movement on derivative financial instruments 1,324 (885)
Ineffectiveness of cash flow hedges 435 -
Net finance costs (6,137) (9,765)
Profit/(loss) before tax 9,009 (418)
Tax (expense)/ credit (5,131) 2,416
Profit for the period 3,878 1,998

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INTERIM CONSOLIDATED BALANCE SHEET - UNAUDITED

Note At 30 September
2014 2013
£’000 £’000
ASSETS
Non-current assets
Property, plant and equipment 254,338 256,244
Investment property 13,643 14,051
Goodwill 421,453 421,453
Players’ registrations and other intangible assets 292,496 144,680
Derivative financial instruments 1,155 -
Trade and other receivables 1 - 241
983,085 836,669
Current assets
Derivative financial instruments 74 882
Trade and other receivables 1 672,881 678,011
Cash and cash equivalents 90,047 83,384
763,002 762,277
Total assets 1,746,087 1,598,946

EQUITY AND LIABILITIES

Equity
Share capital - -
Capital contribution reserve 474,203 474,203
Hedging reserve 18,882 19,395
Retained earnings 432,125 410,573
925,210 904,171
Non-current liabilities
Derivative financial instruments 1,498 1,649
Trade and other payables 2 47,137 18,014
Borrowings 359,445 353,476
Deferred revenue 15,291 18,023
Provisions - 845
Deferred tax liabilities 26,022 14,913
449,393 406,920
Current liabilities
Derivative financial instruments 650 571
Current tax liabilities 1,976 5,472
Trade and other payables 2 180,608 107,020
Borrowings 2,731 7,571
Deferred revenue 185,519 166,757
Provisions - 464
371,484 287,855
Total equity and liabilities 1,746,087 1,598,946

4
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS – UNAUDITED

Three months ended

30 September
2014 2013
£'000 £'000
Cash flows from operating activities
Profit/(loss) before tax 9,009 (418)
Depreciation 2,336 1,983
Amortization 21,177 11,904
Profit on disposal of players’ registrations (18,328) (996)
Net finance costs 6,137 9,765
Profit on disposal of property, plant and equipment 4 -
Foreign exchange gains on operating activities (627) -
Other fair value losses/(gains) on derivative financial instruments 634 (160)
Reclassified from hedging reserve (1,195) (188)
Decrease in trade and other receivables 72,109 536
(Decrease)/increase in trade and other payables and deferred revenue (8,038) 10,685
Decrease in provisions - (160)
Cash generated from operations 83,218 32,951
Interest paid (8,729) (9,146)
Debt finance costs paid relating to borrowings (866) (19)
Interest received 49 59
Income tax paid (763) (487)
Net cash generated from operating activities 72,909 23,358
Cash flows from investing activities
Purchases of property, plant and equipment (1,942) (4,093)
Purchases of players’ registrations and other intangible assets (71,302) (33,450)
Proceeds from sale of players’ registrations 15,443 6,655
Net cash used in investing activities (57,801) (30,888)
Cash flows from financing activities
Loan to parent undertaking - (181)
Proceeds from borrowings 4,704 -
Repayment of borrowings (97) (91)
Net cash generated from/(used in) financing activities 4,607 (272)
Net increase/(decrease) in cash and cash equivalents 19,715 (7,802)
Cash and cash equivalents at beginning of period 66,158 94,200
Exchange gains/(losses) on cash and cash equivalents 4,174 (3,014)
Cash and cash equivalents at end of period 90,047 83,384

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NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

1. Trade and other receivables

At 30 September
2014 2013
£’000 £’000
Net trade receivables 30,334 11,353
Receivables owed by group undertakings 601,391 613,862
Other receivables 918 3,178
Accrued income 29,149 30,976
661,792 659,369
Prepayments 11,089 18,883
672,881 678,252
Less: non-current portion:
Trade receivables - 241
Non-current trade and other receivables - 241
Current trade and other receivables 672,881 678,011

2. Trade and other payables

At 30 September
2014 2013
£’000 £’000
Trade payables 130,128 42,339
Payables owed to group undertakings 40,391 34,091
Other payables 9,667 16,792
Accrued expenses 31,920 20,026
212,106 113,248
Social security and other taxes 15,639 11,786
227,745 125,034
Less: non-current portion:
Trade payables 43,518 7,291
Other payables 3,619 10,723
Non-current trade and other payables 47,137 18,014
Current trade and other payables 180,608 107,020