Business Wire | Sep 17, 2021 07:00AM EDT

Manchester United PLC Reports Fourth Quarter and Full Year Fiscal 2021 Results

Sep. 17, 2021

MANCHESTER, England--(BUSINESS WIRE)--Sep. 17, 2021--Manchester United (NYSE: MANU; the "Company" and the "Group") - one of the most popular and successful sports teams in the world - today announced financial results for the 2021 fiscal fourth quarter and twelve months ended 30 June 2021.

Management CommentaryEd Woodward, Executive Vice Chairman, commented, "It has been an exciting start to the season at Old Trafford, with capacity crowds in attendance for the first time in almost 18 months. We were delighted to welcome back Cristiano Ronaldo to the club, along with Raphael Varane, Jadon Sancho and Tom Heaton, to further reinforce the progress that our first team has been making under Ole. This was made possible by the strength of our operating model, with sustained investment in the team underpinned by robust commercial revenues. Everyone associated with Manchester United can be proud of the resilience we have shown through the challenges created by the pandemic and we look forward to the rest of the season and beyond with great optimism."

Key Financials (unaudited)

lb million (except loss per Twelve months Three monthsshare) ended ended 30 June 30 June

2021 2020 Change 2021 2020 Change

Commercial revenue 232.2 279.0 (16.8%) 51.8 59.4 (12.8%)

Broadcasting revenue 254.8 140.2 81.7% 39.9 16.6 140.4%

Matchday revenue 7.1 89.8 (92.1%) 2.3 5.5 (58.2%)

Total revenue 494.1 509.0 (2.9%) 94.0 81.5 15.3%

Adjusted EBITDA^(1) 95.1 132.1 (28.0%) (10.5) (2.7) 288.9%

Operating (loss)/profit (36.9) 5.2 - (36.7) (39.0) (5.9%)



Loss for the period (i.e. net (92.2) (23.2) 297.4% (107.7) (36.5) 195.1%loss)^ (2)

Basic loss per share (pence) (56.60) (14.14) 300.3% (66.08) (22.36) 195.5%

Adjusted loss for the period (44.7) (12.9) 246.5% (33.7) (35.3) (4.5%)(i.e. adjusted net loss)^(1)

Adjusted basic loss per share (27.41) (7.83) 250.1% (20.67) (21.59) (4.3%)(pence)^(1)



Non-current and current 530.2 525.6 0.9% 530.2 525.6 0.9%borrowings

Cash and cash equivalents 110.7 51.5 115.0% 110.7 51.5 115.0%

Net debt^(1)/(3) 419.5 474.1 (11.5%) 419.5 474.1 (11.5%)

(1) Adjusted EBITDA, adjusted loss for the period, adjusted basic loss per share and net debt are non-IFRS measures. See "Non-IFRS Measures: Definitions and Use" on page 8 and the accompanying Supplemental Notes for the definitions and reconciliations for these non-IFRS measures and the reasons we believe these measures provide useful information to investors regarding the Group's financial condition and results of operations.

(2) During the fourth quarter of the year ended 30 June 2021, the UK Corporation tax rate increase from 19% to 25%, effective April 2023, was substantively enacted, necessitating a remeasurement of the existing UK deferred tax liability position. This resulted in a non-cash deferred tax charge of lb11.2 million in the period. Furthermore, given the current US federal corporate income tax rate of 21%, we expect future US tax liabilities to be sheltered by future foreign tax credits arising from UK tax paid. Consequently, we have written down the existing US deferred tax asset, on the basis it is no longer expected to give rise to a future economic benefit. This has resulted in a further non-cash deferred tax charge of lb66.6 million in the period. Future increases in the US federal corporate income tax rate could result in a reversal of the US deferred tax asset write down.

(3) The gross USD debt principal remains unchanged. Non-current and current borrowings and cash and cash equivalents as at 30 June 2021 reflect the impact a lb60.0 million drawdown on our lb200 million revolving credit facilities during the second fiscal quarter.

COVID-19 ImpactThe ongoing pandemic and measures to prevent further spread continued to disrupt our businesses for the year ended 30 June 2021, most significantly in Matchday and Commercial operations. The Old Trafford Stadium, Museum and Stadium Tour operations remained closed to visitors throughout the financial year until part way into the fourth fiscal quarter. In line with government guidelines, and with a variety of safety measures and protocols in place, including reduced fan capacity, Old Trafford Stadium welcomed back 10,000 supporters for the final home match of the season.

Commencement of playing the 2020/21 Premier league fixtures was delayed until 19 September 2020, due to the deferred completion of the 2019/20 season. 2020/21 matches were played over a more condensed period with most of the current season shortfall being played in the third and fourth quarters, as outlined below.

During fiscal 2021, thirty-three home matches across all competitions were played behind closed doors, plus one home Premier League fixture, which was played with a significantly reduced fan capacity. This is compared with a total of twenty-three home matches with fans in attendance and one home match played behind closed doors during the prior year, creating a significant shortfall in Matchday revenues.

From a Commercial revenue standpoint, the first team's pre-season tour, scheduled for the start of fiscal 2021, had to be cancelled due to COVID-19 related travel restrictions, sponsorship revenue was further impacted by COVID-19 related variations and the Old Trafford Megastore was closed for parts of the year due to government-imposed restrictions.

The Matchday and Commercial revenue shortfalls have been largely offset by an increase in Broadcasting revenues, due to the men's first team's participation in the UEFA Champions League, strong performance in both the Premier League and the UEFA Europa League, and the impact of completing the 2019/20 domestic and UEFA competitions during the current first fiscal quarter.

Whilst the majority of remaining UK government-imposed restrictions have been lifted subsequent to the end of fiscal 2021 and Old Trafford stadium has welcomed back fans at full capacity, the nature of the ongoing pandemic may result in government restrictions being re-imposed in the future. Given ongoing uncertainty due to the COVID-19 pandemic, the Company is not providing revenue or adjusted EBITDA guidance for fiscal 2022 at this time.

^(1) Adjusted EBITDA, adjusted loss for the period, adjusted basic loss pershare and net debt are non-IFRS measures. See "Non-IFRS Measures: Definitionsand Use" on page 8 and the accompanying Supplemental Notes for the definitionsand reconciliations for these non-IFRS measures and the reasons we believethese measures provide useful information to investors regarding the Group'sfinancial condition and results of operations.

^(2) During the fourth quarter of the year ended 30 June 2021, the UKCorporation tax rate increase from 19% to 25%, effective April 2023, wassubstantively enacted, necessitating a remeasurement of the existing UKdeferred tax liability position. This resulted in a non-cash deferred taxcharge of lb11.2 million in the period. Furthermore, given the current USfederal corporate income tax rate of 21%, we expect future US tax liabilitiesto be sheltered by future foreign tax credits arising from UK tax paid.Consequently, we have written down the existing US deferred tax asset, on thebasis it is no longer expected to give rise to a future economic benefit. Thishas resulted in a further non-cash deferred tax charge of lb66.6 million in theperiod. Future increases in the US federal corporate income tax rate couldresult in a reversal of the US deferred tax asset write down.

^(3) The gross USD debt principal remains unchanged. Non-current and currentborrowings and cash and cash equivalents as at 30 June 2021 reflect the impacta lb60.0 million drawdown on our lb200 million revolving credit facilitiesduring the second fiscal quarter.

COVID-19 ImpactThe ongoing pandemic and measures to prevent further spread continued to disrupt our businesses for the year ended 30 June 2021, most significantly in Matchday and Commercial operations. The Old Trafford Stadium, Museum and Stadium Tour operations remained closed to visitors throughout the financial year until part way into the fourth fiscal quarter. In line with government guidelines, and with a variety of safety measures and protocols in place, including reduced fan capacity, Old Trafford Stadium welcomed back 10,000 supporters for the final home match of the season.

Commencement of playing the 2020/21 Premier league fixtures was delayed until 19 September 2020, due to the deferred completion of the 2019/20 season. 2020/21 matches were played over a more condensed period with most of the current season shortfall being played in the third and fourth quarters, as outlined below.

During fiscal 2021, thirty-three home matches across all competitions were played behind closed doors, plus one home Premier League fixture, which was played with a significantly reduced fan capacity. This is compared with a total of twenty-three home matches with fans in attendance and one home match played behind closed doors during the prior year, creating a significant shortfall in Matchday revenues.

From a Commercial revenue standpoint, the first team's pre-season tour, scheduled for the start of fiscal 2021, had to be cancelled due to COVID-19 related travel restrictions, sponsorship revenue was further impacted by COVID-19 related variations and the Old Trafford Megastore was closed for parts of the year due to government-imposed restrictions.

The Matchday and Commercial revenue shortfalls have been largely offset by an increase in Broadcasting revenues, due to the men's first team's participation in the UEFA Champions League, strong performance in both the Premier League and the UEFA Europa League, and the impact of completing the 2019/20 domestic and UEFA competitions during the current first fiscal quarter.

Whilst the majority of remaining UK government-imposed restrictions have been lifted subsequent to the end of fiscal 2021 and Old Trafford stadium has welcomed back fans at full capacity, the nature of the ongoing pandemic may result in government restrictions being re-imposed in the future. Given ongoing uncertainty due to the COVID-19 pandemic, the Company is not providing revenue or adjusted EBITDA guidance for fiscal 2022 at this time.

Phasing of Premier League Quarter Quarter Quarter Quarter Totalgames 1 2 3 4

2020/21 season 2 13 14 9 38

2019/20 remaining season 6 - - - 6

Total FY 2021 8 13 14 9 44

2019/20 season 7 13 9 3 32

2018/19 season 7 13 11 7 38

Working Capital and LiquidityAs of 30 June 2021, the Company had 110.7 million of cash balances together with access to an additional 140.0 million available under the Company's revolving credit facilities. This has provided the financial flexibility to support the Club through the ongoing disruption caused by COVID-19.

Revenue Analysis

CommercialCommercial revenue for the year was 232.2 million, a decrease of 46.8 million, or 16.8%, over the prior year.

* Sponsorship revenue was 140.2 million, a decrease of 42.5 million, or 23.3%, over the prior year, primarily due to no 2020/21 pre-season tour taking place as a result of COVID-19 and COVID-19 related variations; and * Retail, Merchandising, Apparel & Product Licensing revenue was 92.0 million, a decrease of 4.3 million, or 4.5%, over the prior year, due to the closure of the Megastore for parts of the year in line with government-imposed restrictions and significantly reduced Megastore foot traffic given, prior to the final home match of the season, all home matches were played behind closed doors. This has been partially offset by the impact of an increase in online demand.

For the quarter, commercial revenue was 51.8 million, a decrease of 7.6 million, or 12.8%, over the prior year quarter.

* Sponsorship revenue was 30.1 million, a decrease of 9.1 million, or 23.2% over the prior year quarter, primarily due to COVID-19 related variations; and * Retail, Merchandising, Apparel & Product Licensing revenue was 21.7 million, an increase of 1.5 million, or 7.4%, over the prior year quarter, due to re-opening of the Megastore on 12 April 2021. In the prior year, the Megastore was closed from mid-March 2020 until mid-June 2020.

BroadcastingBroadcasting revenue for the year was 254.8 million, an increase of 114.6 million, or 81.7%, over the prior year, primarily due to participation in the UEFA Champions League in the current year, plus the impact of playing twenty additional home and away games in the current year, following the deferral of ten 2019/20 home and away games into the 2020/21 first fiscal quarter.

Broadcasting revenue for the quarter was 39.9 million, an increase of 23.3 million, or 140.4%, over the prior year quarter, primarily due to playing ten more home and away games across all competitions in the current year quarter as a result of the prior year postponement of 2019/20 competitions, plus the impact of progression to the UEFA Europa League Final in the current year quarter.

MatchdayMatchday revenue for the year was 7.1 million, a decrease of 82.7 million, or 92.1%, over the prior year, due to all matches prior to the final home match of the season being played behind closed doors. Twenty-three home games were played in the prior year period with fans in attendance, prior to the postponement of all competitions.

Matchday revenue for the quarter was 2.3 million, a decrease of 3.2 million, or 58.2%, over the prior year quarter.

Other Financial Information

Operating expensesTotal operating expenses for the year were 538.4 million, an increase of 16.2 million, or 3.1%, over the prior year.

Employee benefit expensesEmployee benefit expenses for the year were 322.6 million, an increase of 38.6 million, or 13.6%, over the prior year, primarily due to contracted increases in player salaries as a result of participation in the UEFA Champions League.

Other operating expensesOther operating expenses for the year were 76.4 million, a decrease of 16.5 million, or 17.8%, over the prior year, primarily due to reduced business activity as a result of COVID-19. This includes the impact of no 2020/21 pre-season tour, all matches prior to the final home match of the season being played behind closed doors, travel savings and reduced costs related to the fall in activity at the Old Trafford Megastore.

Depreciation, impairment and amortizationDepreciation and impairment for the year was 15.0 million, a decrease of 3.6 million, or 19.4%, over the prior year, primarily due to prior year impairment of investment property following the impact of COVID-19. Amortization for the year was 124.4 million, a decrease of 2.3 million, or 1.8%, over the prior year. The unamortized balance of registrations at 30 June 2021 was 327.3 million.

Profit on disposal of intangible assetsProfit on disposal of intangible assets for the year was 7.4 million, compared to 18.4 million for the prior year.

Net finance income/(costs)Net finance income for the year was 12.9 million, compared to net finance costs of 26.0 million for the prior year, a favourable swing of 38.9 million, primarily due to unrealized foreign exchange gains on unhedged USD borrowings in the current year compared to unrealized foreign exchange losses on unhedged USD borrowings in the prior year.

Income taxThe income tax expense for the year was 68.2 million, compared to an expense of 2.4 million in the prior year. During the fourth quarter of the year ended 30 June 2021, the UK Corporation tax rate increase from 19% to 25% was substantively enacted, necessitating a remeasurement of the existing UK deferred tax liability position. This resulted in a non-cash deferred tax charge of 11.2 million in the period. Furthermore, given the current US federal corporate income tax rate of 21%, we expect future US tax liabilities to be sheltered by future foreign tax credits arising from UK tax paid. Consequently, we have written down the existing US deferred tax asset, on the basis it is no longer expected to give rise to a future economic benefit. This has resulted in a further non-cash deferred tax charge of 66.6 million in the period. Future increases in the US federal corporate income tax rate could result in a reversal of the US deferred tax asset write down.

Cash flowsOverall cash and cash equivalents (including the effects of exchange rate movements) increased by 59.2 million in the year, compared to a decrease of 256.1 million in the prior year.

Net cash inflow from operating activities for the year was 113.1 million, an increase of 116.9 million compared to a net cash outflow of 3.8 million for the prior year. This is primarily due to the timing of cash receipts on commercial contractual arrangements, participation in the UEFA Champions League in the current year and the deferral of 2019/20 broadcasting monies into the current period upon completion of all competitions. This is partially offset by the deferral of VAT payments for the quarters ended February and May 2020 in line with UK government business support measures provided during COVID-19.

Net capital expenditure on property, plant and equipment for the year was 6.2 million, a decrease of 15.1 million over the prior year.

Net capital expenditure on intangible assets for the year was 92.2 million, a decrease of 99.4 million over the prior year.

Net expenditure on derivative financial assets for the year was 0.9 million, compared to nil for the prior year.

Net cash inflow from financing activities for the year was 47.6 million, compared net cash outflow of 46.4 million in the prior year. Current year cash inflow includes a drawdown of 60.0 million on our revolving facilities.

Net debtNet Debt as of 30 June 2021 was 419.5 million, compared to 474.1 million as of 30 June 2020.

Conference Call DetailsThe Company's conference call to review fiscal 2021 and fourth quarter results will be broadcast live over the internet today, 17 September 2021 at 8:00 a.m. Eastern Time and will be available on Manchester United's investor relations website at http://ir.manutd.com. Thereafter, a replay of the webcast will be available for thirty days.

About Manchester UnitedManchester United is one of the most popular and successful sports teams in the world, playing one of the most popular spectator sports on Earth. Through our 143-year football heritage we have won 66 trophies, enabling us to develop what we believe is one of the world's leading sports and entertainment brands with a global community of 1.1 billion fans and followers. Our large, passionate and highly engaged fan base provides Manchester United with a worldwide platform to generate significant revenue from multiple sources, including sponsorship, merchandising, product licensing, broadcasting and matchday initiatives which in turn, directly fund our ability to continuously reinvest in the club.

Cautionary StatementsThis press release contains forward-looking statements. You should not place undue reliance on such statements because they are subject to numerous risks and uncertainties relating to the Company's operations and business environment, all of which are difficult to predict and many are beyond the Company's control. Forward-looking statements include information concerning certain expectations and uncertainties related to the COVID-19 pandemic and the Company's possible or assumed future results of operations, including descriptions of its business strategy. These statements often include words such as "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible" or similar expressions. The forward-looking statements contained in this press release are based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual financial results or results of operations and could cause actual results to differ materially from those in these forward-looking statements. These factors are more fully discussed in the "Risk Factors" section and elsewhere in the Company's Registration Statement on Form F-1, as amended (File No. 333-182535) and the Company's Annual Report on Form 20-F (File No. 001-35627) as supplemented by the risk factors contained in the Company's other filings with the Securities and Exchange Commission.

Statement Regarding Unaudited Financial InformationThe unaudited financial information set forth is preliminary and subject to adjustments. The audit of the financial statements and related notes to be included in our annual report on Form 20-F for the year ended 30 June 2021 is still in progress. Adjustments to the financial statements may be identified when audit work is completed, which could result in significant differences from this preliminary unaudited financial information.

Non-IFRS Measures: Definitions and Use

1. Adjusted EBITDAAdjusted EBITDA is defined as profit/(loss) for the period before depreciation and impairment, amortization, profit on disposal of intangible assets, net finance income/costs, and tax.

Adjusted EBITDA is useful as a measure of comparative operating performance from period to period and among companies as it is reflective of changes in pricing decisions, cost controls and other factors that affect operating performance, and it removes the effect of our asset base (primarily depreciation, impairment and amortization), material volatile items (primarily profit on disposal of intangible assets), capital structure (primarily finance income/costs), and items outside the control of our management (primarily taxes). Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for an analysis of our results as reported under IFRS as issued by the IASB. A reconciliation of loss/profit for the period to adjusted EBITDA is presented in supplemental note 2.

2. Adjusted loss for the period (i.e. adjusted net loss)Adjusted loss for the period is calculated, where appropriate, by adjusting for foreign exchange gains/losses on unhedged US dollar denominated borrowings (including foreign exchange losses immediately reclassified from the hedging reserve following change in contract currency denomination of future revenues), and fair value movements on embedded foreign exchange derivatives, adding/subtracting the actual tax expense/credit for the period, and subtracting/adding the adjusted tax expense/credit for the period (based on an normalized tax rate of 21%; 2020: 21%). The normalized tax rate of 21% is the current US federal corporate income tax rate. The UK Corporation tax rate increase from 19% to 25%, substantively enacted as at 30 June 2021, is effective from 1 April 2023.

In assessing the comparative performance of the business, in order to get a clearer view of the underlying financial performance of the business, it is useful to strip out the distorting effects of the items referred to above and then to apply a 'normalized' tax rate (for both the current and prior periods) of the weighted average US federal corporate income tax rate of 21% (2020: 21%) applicable during the financial year. A reconciliation of loss for the period to adjusted loss for the period is presented in supplemental note 3.

3. Adjusted basic and diluted loss per shareAdjusted basic and diluted loss per share are calculated by dividing the adjusted loss for the period by the weighted average number of ordinary shares in issue during the period. Adjusted diluted loss per share is calculated by adjusting the weighted average number of ordinary shares in issue during the period to assume conversion of all dilutive potential ordinary shares. There is one category of dilutive potential ordinary shares: share awards pursuant to the 2012 Equity Incentive Plan (the "Equity Plan"). Share awards pursuant to the Equity Plan are assumed to have been converted into ordinary shares at the beginning of the financial year. Adjusted basic and diluted loss per share are presented in supplemental note 3.

4. Net debtNet debt is calculated as non-current and current borrowings minus cash and cash equivalents.

Key Performance Indicators

Twelve months ended Three months 30 June ended 30 June

2021 2020 2021 2020



Revenue

Commercial % of total revenue 47.0% 54.8% 55.1% 72.9%

Broadcasting % of total revenue 51.6% 27.6% 42.5% 20.4%

Matchday % of total revenue 1.4% 17.6% 2.4% 6.7%



2020/ Carryover 2019/ 2020/21 2019/20 21 2019/20 20 Season Season Season Season Season

Home Matches Played

PL 19 3 16 5 1

UEFA competitions 7 1 4 2 -

Domestic Cups 4 - 4 - -

Away Matches Played

PL 19 3 16 4 2

UEFA competitions 8 2 5 3 -

Domestic Cups 4 1 6 - 1



Other

Employees at period end 971 1,000 971 1,000

Employee benefit expenses % of 65.3% 55.8% 89.1% 90.1%revenue

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(unaudited; in lb thousands, except per share and shares outstanding data)

Twelve months ended30 June

Three months ended30 June

2021

2020

2021

2020

Revenue from contracts with customers

494,117

509,041

94,009

81,504

Operating expenses

(538,424

)

(522,204

)

(137,848

)

(122,747

)

Profit on disposal of intangible assets

7,381

18,384

7,122

2,317

Operating (loss)/profit

(36,926

)

5,221

(36,717

)

(38,926

)

Finance costs

(36,411

)

(27,391

)

(6,619

)

(7,690

)

Finance income

49,310

1,352

1,235

78

Net finance income/(costs)

12,899

(26,039

)

(5,384

)

(7,612

)

Loss before tax

(24,027

)

(20,818

)

(42,101

)

(46,538

)

Income tax (expense)/credit(1)

(68,189

)

(2,415

)

(65,562

)

10,023

Loss for the period

(92,216

)

(23,233

)

(107,663

)

(36,515

)

Basic and diluted loss per share:

Basic and diluted loss per share (pence) (2)

(56.60

)

(14.14

)

(66.08

)

(22.36

)

Weighted average number of ordinary shares used as the denominator in calculating basic and diluted loss per share (thousands) (2)

162,939

164,253

162,939

163,316

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

(unaudited; in lb thousands, except per share and shares outstanding data)

Twelve months ended Three months ended 30 June 30 June

2021 2020 2021 2020

Revenue from contracts with 494,117 509,041 94,009 81,504 customers

Operating expenses (538,424 ) (522,204 ) (137,848 ) (122,747 )

Profit on disposal of 7,381 18,384 7,122 2,317 intangible assets

Operating (loss)/profit (36,926 ) 5,221 (36,717 ) (38,926 )

Finance costs (36,411 ) (27,391 ) (6,619 ) (7,690 )

Finance income 49,310 1,352 1,235 78

Net finance income/(costs) 12,899 (26,039 ) (5,384 ) (7,612 )

Loss before tax (24,027 ) (20,818 ) (42,101 ) (46,538 )

Income tax (expense)/credit (68,189 ) (2,415 ) (65,562 ) 10,023 ^(1)

Loss for the period (92,216 ) (23,233 ) (107,663 ) (36,515 )



Basic and diluted loss per share:

Basic and diluted loss per (56.60 ) (14.14 ) (66.08 ) (22.36 )share (pence)^ (2)

Weighted average number ofordinary shares used as thedenominator in calculating 162,939 164,253 162,939 163,316 basic and diluted loss pershare (thousands)^ (2)

(1) During the fourth quarter of the year ended 30 June 2021, the UK Corporation tax rate increase from 19% to 25% was substantively enacted, necessitating a remeasurement of the existing UK deferred tax liability position. This resulted in a non-cash deferred tax charge of lb11.2 million in the period. Furthermore, given the current US federal corporate income tax rate of 21%, we expect future US tax liabilities to be sheltered by future foreign tax credits arising from UK tax paid. Consequently, we have written down the existing US deferred tax asset, on the basis it is no longer expected to give rise to a future economic benefit. This has resulted in a further non-cash deferred tax charge of lb66.6 million in the period. Future increases in the US federal corporate income tax rate could result in a reversal of the US deferred tax asset write down.

(2) For the twelve and three months ended 30 June 2021 and the twelve and three months ended 30 June 2020, potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded.

^(1) During the fourth quarter of the year ended 30 June 2021, the UKCorporation tax rate increase from 19% to 25% was substantively enacted,necessitating a remeasurement of the existing UK deferred tax liabilityposition. This resulted in a non-cash deferred tax charge of lb11.2 million inthe period. Furthermore, given the current US federal corporate income tax rateof 21%, we expect future US tax liabilities to be sheltered by future foreigntax credits arising from UK tax paid. Consequently, we have written down theexisting US deferred tax asset, on the basis it is no longer expected to giverise to a future economic benefit. This has resulted in a further non-cashdeferred tax charge of lb66.6 million in the period. Future increases in the USfederal corporate income tax rate could result in a reversal of the US deferredtax asset write down.

^(2) For the twelve and three months ended 30 June 2021 and the twelve andthree months ended 30 June 2020, potential ordinary shares are anti-dilutive,as their inclusion in the diluted loss per share calculation would reduce theloss per share, and hence have been excluded.

CONSOLIDATED BALANCE SHEET

(unaudited; in lb thousands)

As of 30 June

2021

2020

ASSETS

Non-current assets

Property, plant and equipment

247,059

254,439

Right-of-use assets

4,383

4,559

Investment properties

20,553

20,827

Intangible assets

754,467

775,170

Deferred tax asset

-

58,362

Trade receivables

20,404

43,694

Derivative financial instruments

499

1,609

1,047,365

1,158,660

Current assets

Inventories

2,080

2,186

Prepayments

7,407

6,503

Contract assets - accrued revenue

40,544

45,966

Trade receivables

50,370

115,985

Other receivables

460

239

Income tax receivable

1,108

1,214

Derivative financial instruments

318

1,174

Cash and cash equivalents

110,658

51,539

212,945

224,806

Total assets

1,260,310

1,383,466

CONSOLIDATED BALANCE SHEET

(unaudited; in lb thousands)

As of 30 June

2021 2020

ASSETS

Non-current assets

Property, plant and equipment 247,059 254,439

Right-of-use assets 4,383 4,559

Investment properties 20,553 20,827

Intangible assets 754,467 775,170

Deferred tax asset - 58,362

Trade receivables 20,404 43,694

Derivative financial instruments 499 1,609

1,047,365 1,158,660

Current assets

Inventories 2,080 2,186

Prepayments 7,407 6,503

Contract assets - accrued revenue 40,544 45,966

Trade receivables 50,370 115,985

Other receivables 460 239

Income tax receivable 1,108 1,214

Derivative financial instruments 318 1,174

Cash and cash equivalents 110,658 51,539

212,945 224,806

Total assets 1,260,310 1,383,466

CONSOLIDATED BALANCE SHEET (continued)

(unaudited; in lb thousands)

As of 30 June

2021

2020

EQUITY AND LIABILITIES

Equity

Share capital

53

53

Share premium

68,822

68,822

Treasury shares

(21,305

)

(21,305

)

Merger reserve

249,030

249,030

Hedging reserve

(10,436

)

(32,565

)

Retained (deficit)/earnings

(13,652

)

87,197

272,512

351,232

Non-current liabilities

Deferred tax liabilities

35,546

31,337

Contract liabilities - deferred revenue

22,942

18,759

Trade and other payables

67,517

51,322

Borrowings

465,049

520,010

Lease liabilities

3,083

3,326

Derivative financial instruments

5,472

9,136

Provisions

4,157

-

603,766

633,890

Current liabilities

Contract liabilities - deferred revenue

117,984

171,574

Trade and other payables

192,661

216,093

Income tax liabilities

6,036

4,005

Borrowings

65,187

5,605

Lease liabilities

1,257

1,067

Derivative financial instruments

262

-

Provisions

645

-

384,032

398,344

Total equity and liabilities

1,260,310

1,383,466

CONSOLIDATED BALANCE SHEET (continued)

(unaudited; in lb thousands)

As of 30 June

2021 2020

EQUITY AND LIABILITIES

Equity

Share capital 53 53

Share premium 68,822 68,822

Treasury shares (21,305 ) (21,305 )

Merger reserve 249,030 249,030

Hedging reserve (10,436 ) (32,565 )

Retained (deficit)/earnings (13,652 ) 87,197

272,512 351,232

Non-current liabilities

Deferred tax liabilities 35,546 31,337

Contract liabilities - deferred revenue 22,942 18,759

Trade and other payables 67,517 51,322

Borrowings 465,049 520,010

Lease liabilities 3,083 3,326

Derivative financial instruments 5,472 9,136

Provisions 4,157 -

603,766 633,890

Current liabilities

Contract liabilities - deferred revenue 117,984 171,574

Trade and other payables 192,661 216,093

Income tax liabilities 6,036 4,005

Borrowings 65,187 5,605

Lease liabilities 1,257 1,067

Derivative financial instruments 262 -

Provisions 645 -

384,032 398,344

Total equity and liabilities 1,260,310 1,383,466

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited; in lb thousands)

Twelve months ended 30 June

Three months ended30 June

2021

2020

2021

2020

Cash flows from operating activities

Cash generated from operations (see supplemental note 4)

137,778

17,569

27,614

1,675

Interest paid

(20,542

)

(20,456

)

(1,680

)

(2,006

)

Interest received

3

1,247

1

82

Tax paid

(4,156

)

(2,180

)

(1,128

)

(283

)

Net cash inflow/(outflow) from operating activities

113,083

(3,820

)

24,807

(532

)

Cash flows from investing activities

Payments for property, plant and equipment

(6,241

)

(21,291

)

(1,301

)

(3,599

)

Payments for intangible assets

(138,189

)

(220,577

)

(11,629

)

(8,847

)

Proceeds from sale of intangible assets

45,996

29,022

13,916

3,788

Payments for derivative financial assets

(939

)

-

-

-

Net cash (outflow)/inflow from investing activities

(99,373

)

(212,846

)

986

(8,658

)

Cash flows from financing activities

Acquisition of treasury shares

-

(21,305

)

-

(17,933

)

Proceeds from borrowings

60,000

-

-

-

Principal elements of lease payments

(1,641

)

(1,865

)

(410

)

(705

)

Dividends paid

(10,718

)

(23,229

)

-

(11,906

)

Net cash inflow/(outflow) from financing activities

47,641

(46,399

)

(410

)

(30,544

)

Net increase/(decrease) in cash and cash equivalents

61,351

(263,065

)

25,383

(39,734

)

Cash and cash equivalents at beginning of period

51,539

307,637

84,715

90,251

Effects of exchange rate changes on cash and cash equivalents

(2,232

)

6,967

560

1,022

Cash and cash equivalents at end of period

110,658

51,539

110,658

51,539

SUPPLEMENTAL NOTES

1 General informationManchester United plc (the "Company") and its subsidiaries (together the "Group") is a men's and women's professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (as amended) of the Cayman Islands.

2 Reconciliation of loss for the period to adjusted EBITDA

CONSOLIDATED STATEMENT OF CASH FLOWS

(unaudited; in lb thousands)

Twelve months ended Three months ended 30 June 30 June

2021 2020 2021 2020

Cash flows from operating activities

Cash generated fromoperations (see supplemental 137,778 17,569 27,614 1,675 note 4)

Interest paid (20,542 ) (20,456 ) (1,680 ) (2,006 )

Interest received 3 1,247 1 82

Tax paid (4,156 ) (2,180 ) (1,128 ) (283 )

Net cash inflow/(outflow) 113,083 (3,820 ) 24,807 (532 )from operating activities

Cash flows from investing activities

Payments for property, plant (6,241 ) (21,291 ) (1,301 ) (3,599 )and equipment

Payments for intangible (138,189 ) (220,577 ) (11,629 ) (8,847 )assets

Proceeds from sale of 45,996 29,022 13,916 3,788 intangible assets

Payments for derivative (939 ) - - - financial assets

Net cash (outflow)/inflow (99,373 ) (212,846 ) 986 (8,658 )from investing activities

Cash flows from financing activities

Acquisition of treasury - (21,305 ) - (17,933 )shares

Proceeds from borrowings 60,000 - - -

Principal elements of lease (1,641 ) (1,865 ) (410 ) (705 )payments

Dividends paid (10,718 ) (23,229 ) - (11,906 )

Net cash inflow/(outflow) 47,641 (46,399 ) (410 ) (30,544 )from financing activities

Net increase/(decrease) in 61,351 (263,065 ) 25,383 (39,734 )cash and cash equivalents

Cash and cash equivalents at 51,539 307,637 84,715 90,251 beginning of period

Effects of exchange ratechanges on cash and cash (2,232 ) 6,967 560 1,022 equivalents

Cash and cash equivalents at 110,658 51,539 110,658 51,539 end of period

SUPPLEMENTAL NOTES

1 General informationManchester United plc (the "Company") and its subsidiaries (together the "Group") is a men's and women's professional football club together with related and ancillary activities. The Company incorporated under the Companies Law (as amended) of the Cayman Islands.

2 Reconciliation of loss for the period to adjusted EBITDA

Twelve months ended Three months ended 30 June 30 June

2021 2020 2021 2020 lb'000 lb'000 lb'000 lb'000

Loss for the period (92,216 ) (23,233 ) (107,663 ) (36,515 )

Adjustments:

Income tax expense/(credit) 68,189 2,415 65,562 (10,023 )

Net finance (income)/costs (12,899 ) 26,039 5,384 7,612

Profit on disposal of intangible (7,381 ) (18,384 ) (7,122 ) (2,317 )assets

Amortization 124,398 126,756 29,668 30,966

Depreciation and impairment 14,959 18,543 3,715 7,592

Adjusted EBITDA 95,050 132,136 (10,456 ) (2,685 )

3 Reconciliation of loss for the period to adjusted loss for the period and adjusted basic and diluted loss per share

Twelve months ended Three months ended 30 June 30 June

2021 2020 2021 2020 lb'000 lb'000 lb'000 lb'000

Loss for the period (92,216 ) (23,233 ) (107,663 ) (36,515 )

Foreign exchange (gains)/losses on unhedged US dollar (48,015 ) 4,436 (1,060 ) 1,846 denominated borrowings

Foreign exchange lossesimmediately reclassified fromthe hedging reserve following 14,631 - - - change in contract currency denomination of futurerevenues

Fair value movement onembedded foreign exchange 881 95 520 56 derivatives

Income tax expense/(credit) 68,189 2,415 65,562 (10,023 )

Adjusted loss before tax (56,530 ) (16,287 ) (42,641 ) (44,636 )

Adjusted income tax credit(using a normalized tax rate 11,871 3,420 8,955 9,374 of 21% (2020: 21%))

Adjusted (loss) for the period (44,659 ) (12,867 ) (33,686 ) (35,262 )(i.e. adjusted net (loss))



Adjusted basic and diluted loss per share:

Adjusted basic and diluted (27.41 ) (7.83 ) (20.67 ) (21.59 )loss per share (pence)^(1)

Weighted average number ofordinary shares used as thedenominator in calculating 162,939 164,253 162,939 163,316 adjusted basic and diluted loss per share (thousands) ^(1)

(1) For the twelve and three months ended 30 June 2021 and the twelve and three months ended 30 June 2020 potential ordinary shares are anti-dilutive, as their inclusion in the diluted loss per share calculation would reduce the loss per share, and hence have been excluded.

4 Cash generated from operations

^(1) For the twelve and three months ended 30 June 2021 and the twelve andthree months ended 30 June 2020 potential ordinary shares are anti-dilutive, astheir inclusion in the diluted loss per share calculation would reduce the lossper share, and hence have been excluded.

4 Cash generated from operations

Twelve months ended Three months ended 30 June 30 June

2021 2020 2021 2020 lb'000 lb'000 lb'000 lb'000

Loss for the period (92,216 ) (23,233 ) (107,663 ) (36,515 )

Income tax expense/(credit) 68,189 2,415 65,562 (10,023 )

Loss before income tax (24,027 ) (20,818 ) (42,101 ) (46,538 )

Adjustments for:

Depreciation and impairment 14,959 18,543 3,715 7,592

Amortization 124,398 126,756 29,668 30,966

Profit on disposal of (7,381 ) (18,384 ) (7,122 ) (2,317 )intangible assets

Net finance (income)/costs (12,899 ) 26,039 5,384 7,612

Non-cash employee benefitexpense - equity-settled 2,085 818 (159 ) 227 share-based payments

Foreign exchange losses/(gains) on operating 874 (816 ) 105 110 activities

Reclassified from hedging 2,239 12,180 2,063 3,192 reserve

Changes in working capital:

Inventories 106 (56 ) 283 217

Prepayments (282 ) 6,527 5,026 4,365

Contract assets - accrued 5,422 (6,434 ) 9,735 (3,266 )revenue

Trade receivables 71,695 (83,197 ) (18,121 ) (77,226 )

Other receivables (221 ) 949 1,023 (118 )

Contract liabilities - (49,407 ) (33,167 ) 20,881 65,531 deferred revenue

Trade and other payables 5,415 (11,371 ) 12,432 11,328

Provisions 4,802 - 4,802 -

Cash generated from operations 137,778 17,569 27,614 1,675

View source version on businesswire.com: https://www.businesswire.com/news/home/20210917005070/en/

CONTACT: Investor Relations: Corinna Freedman Head of Investor Relations +44 738 491 0828 Corinna.Freedman@manutd.co.uk

CONTACT: Media Relations: Charlie Brooks Director of Communications +44 161 868 8148 charlie.brooks@manutd.co.uk