Fc Midtjylland A/S

Ledelsesberetning

Key activities The activities of FC Midtjylland A/S consist of operating a football club. Development in the year and follow-up on development expectations from last year For the financial year 2023/24, FC Midtjylland A/S realized a EBITDA of DKK 35 million and aloss after taxes of DKK -55 million.The financial year's deficit must be seen in relation to the fact that in the previous financial year the company realized profit after taxes of + DKK 90 million and an expected result after tax for 2023/24 at DKK 0 million.This year’s deficit, which is also the difference to last year's expectation, is primarily attributable to the company prioritizing investing parts of previous years' profits in transfers to the first team squad, a new sporting domicile in Ikast as well as a roofed over fan zone and Premium Lounge including sky boxes at the MCH Arena in Herning.At the same time, priority was given to keeping profiles in the squad, which led to lower transfer income.The above-mentioned investments and priorities are expected to contribute significant financial benefits in future. The past year FC Midtjylland (FCM) regained the Danish championship in the 2023/24 season. This was the club's fourth championship in the last ten years.The championship granted access to the qualification for the Champions League 2024/25. In July, FCM advanced from the second round of qualification, securing there-with minimum participation in the UEFA Conference League 2024/25. The further qualification takes place in the next financial year, and is referred to under the section "events after the balance sheet date".In 2023/24, FCM did not participate in European tournaments due to elimination after a penalty shoot-out in the decisive play-off round for the UEFA Conference League. Targets and expectations for the year ahead As a result of the realized and expected transfer activity after the balance sheet date and participation in the UEFA Europa League 2024/25, FC Midtjylland A/S expects a result before tax for 2024/25 in the level of DKK 0 million. Involvement in the local community FC Midtjylland exercises corporate social responsibility through the FCM Society. In the current season FCM Samfund has established the fifth office in the region, so that we are now represented in Herning, Ikast, Holstebro, Thisted and Nykøbing Mors. All these places we work with young people who are having diagnoses such as anxiety, ADHD and drug or alcohol abuse. We want to help these young people being able to complete an education or keep a job. This happens through a 26-week course, where we give the young people the same foundations as a Superliga football player based on our mission: “In FCM Samfund we want to help people in the region who are going through a tough time, finding or releasing the potential which every human being is capable of” The contribution aims into Development Goals 3.5 (health and wellbeing), specific prevention and treatment of drug and alcohol abuse. Furthermore, the contribution regarding Development Goals 4.7 (quality of education) must ensure that the participants acquire knowledge and skills within sustainable lifestyle, pro-motion of a non-violent culture etc. Other than the activities and initiatives of the FCM Society, FC Midtjylland has not adopted a CSR policy. However, FC Midtjylland’s professional football players are encouraged to perform social activities, especially among sick children. Furthermore, disadvantaged groups are invited to matches, and different charities raise money at football matches. FC Midtjylland is aware of its corporate social responsibility, and the Company expects to ensuresocial responsibility in the coming years as a natural element in its decision-making systems. The Company is in long-standing contact with a large number of people such as the spectators andguests at the FC Midtjylland matches. The significant and positive interaction between many people in the business areas of the Company has an influence on the community. The Company’s ambition is that this influence must take place in an orderly manner and with minimum disruption to the environment. The activities of the Company involve interaction with many young people. Partly directly as players of the Company’s clubs, but also through the FCM Club Cooperation with 139 clubs in central and western Jutland. FC Midtjylland’s goal is to have a positive influence on the many young people in an orderly fashion. Several activities of the Company consume energy, and for both economic and environmental reasons, Management has turned its attention to this subject. From July 2024, FC Midtjylland introduced reusable plastic cups in the stadium's sales stalls, which are collected and washed after matches. In the long term, the initiative is expected to provide a significant reduction in the Co2 footprint from packaging. The goal is to contribute to Development Goals 12.5 and 12.6 (responsible consumption and production), by reduction and re-use of material. In continuation here-of, we want to integrate information about sustainability in our cycle of report. Uncertainty relating to recognition and measurement Transfer rights are initially recognized at cost, and subsequently at cost less accumulated amortization, which is calculated on a straight-line basis over the term of the contract. Some rights include conditional agreements which is recognized when the conditions are likely to be met.Management make ongoing assessment of transfer rights to identify any indication of impairment. The assessment of the value of the players is made with reference to transfermarkt.de combined with current transfer offers, selling prices realized according to status and industry experience, etc.In the Annual Report for 2023/24, the Management has written down transfer rights. Subsequent events In August 2024, FCM has secured qualification for league play in the UEFA Europa League 2024/25, resulting in significant prize money from UEFA in the coming financial year.Likewise, in August 2024, FCM obtained a significant income from triggering a sell-on clause regarding transfer of former FCM player Artem Dovbyk from Girona to AS Roma.After the end of the financial year, FCM added Jan Kutcha, Kevin Mbabu and Christian Sørensen to the first team squad. In the same period, there have also been departures of players from the first team squad.