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Delta 2 (Lux) S.li r.1.


Directors' Report for the Year Ended 31 December 2013
The directors present their Directors' Report and the Financial Statements for the year ended 31 December 2013.
For all prior periods up to and including the year ended 31 December 2012, under dispensation from the Ministry of Justice of the
Grand Duchy of Luxembourg, the group prepared its financial statements in accordance with UK Generally Accepted Accounting
Practice (flUK GAAptl), which included a note with reconciliations of both the net consolidated equity and the net consolidated
result ofthe group under UK GAAP to the equivalent under International Financial Reporting Standards (ltIFRSfI).
These financial statements for the year ended 31 December 2013 represent the first such statements that the group has prepared
fully in accordance with IFRS, and with comparative information for the year ending 31 December 2012 also presented herein
under !FRS. In preparing these financial statements the group's opening statement of financial position was prepared as at 1
January 2012, the group's date oftransition to IFRS. Matters related to the first time adoption ofIFRS are discussed in notes 2 and
32 to the financial statements.
Results and dividends
The consolidated results for the year are shown in the income statement on page 11.
Principal activity and review of business
The principal activity of the group during the year remained that of the organisation, administration and management of
motorsport, principally undertaken in connection with the events of the FIA Formula One World Championship~ ("the
Championship"). The group's subsidiaries include the wholly-owned subsidiary Formula One World Championship Limited
FOWCfI), the commercial rights holder to the Championship under long term agreements with the Federation Intemationale de
l'Automobile ("FIA").
f1

In July 2013 FOWC and certain other Delta Topco Group companies (see note 31) entered into a further agreement with the FIA
pursuant to which the FIA has committed to enter into a new Concorde Agreement for the period to 2020 on substantially the same
terms as the 2009 Concorde Agreement.
On 25 December 2013 FOWC completed the liquidation of its other wholly owned subsidiary Formula One Organizasyon A.S., the
fonner promoter ofthe Turkish Grand Prix.

Trading performance
Taking into account the continuing effects of the global economic downturn on the countries staging the Championship's events
and in other territories with which the group does business, the directors consider the performance of the group during 2013 to
have been satisfactory, and believe that the group is wel! positioned at the reporting date.
The group's key financial and other performance indicators during the year were as follows:
Change
$m

Change
%

Srn

2012
Srn

Revenue

1,306.4

1,365.8

(59.4)

(4%)

EBITDA pre-exceptional costs and team payments

1,083.4

1,174.4

(91.0)

(8%)

(797.S)

(751.8)

(45.7)

6%

285.9

422.6

(136.7)

(32%)

-I

(5%)

0.5

1%

2013

Team payments
EBITDA pre-exceptional costs
Championship races

19

Average revenue per race

68.8

20

68.3

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,

Formula One World Championship Limited


Profit and Loss Account for the Year Ended 31 December 2013
Note

Turnover

2013
$ 000

1,294,320

2012
$ 000

1,352,199

Cost of sales

(850,349)

(781,997)

Gross profit

443,971

570,202

(157,154)

(148,290)

286,817

421,912

Administrative expenses
Operating profit pre-exceptional costs
Operating exceptional costs

Operating profit
Interest receivable and similar income
Interest payable and similar charges

7
10
10

Profit before tax


Tax on profit on ordinary activities
Profit for the financial year

14

4,102

(162,153)

290,919
3,037
(1,262)

259,759
1,495
(10,872)

292,694

250,382

(82,330)

(115,192)

210,364

135,190

The above results were derived from continuing operations.

The notes on pages 14 to 33 form an integral part of these financial statements.


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Beta Holdings Limited


Notes to the Financial Statements for the Year Ended 31 December 2013

4 Financial risk considerations


Notes 18, 20 and 22 discuss the various financial risks that are defined below where these are considered to be material.
"

, _.

__

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_.

_"'~'~

'-Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The company is exposed to credit risk from its operating activities (primarily for trade and intra-group
receivables) and from its financing activities, including deposits with banks and financial institutions.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Financial instruments affected by market risk include loans and borrowings and deposits.
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
The fair value of financial assets and liabilities are the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale.

5 Judgements and key sources of estimation uncertainty


The preparation of consolidated historical financial information typically requires management to make judgements, estimates
and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities and the disclosures of contingent
liabilities, at the end of the reporting period. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of the asset or liability affected in future periods. However, given the
nature of the company's transactions, no judgements or estimates have been required to be made that management consider to
have a significant effect on the amounts recognised in the financial statements.

6. Revenue
Revenue represents invoiced amounts, stated net of value added tax. Revenue is attributable to the group's principal activites
namely the sale of advertising and sponsorship packages and the provision of premium VIP event hospitality at Championship
events.
The analysis of the group's revenue for the year from continuing operations is as follows:

2013

2012

$ 000

$ 000
205,577

Advertising and sponsorship


Hospitality
Other

259,033
87,751
33,874

Total revenue

380,658

87,102
39,114
331,793

Other revenue includes revenues generated from the sale of other event-based commercial rights including support races,
vending, concessions and displays and programmes, none of which are considered individually material to th~ group.
The group is exempt from the requirements of IFRS 8 to disclose segmental information.

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