Outcome of the Levante UD Shareholders' General Meeting

Levante Unión Deportiva SAD holds its General Shareholders' Meeting this Tuesday afternoon, March 26th, already underway in the Conference Room of the Sports and Cultural Complex of La Petxina.

The usual annual report for the fiscal year, in this case for the 2022/23 fiscal year, can be obtained either in person or by clicking on this link.

At the meeting, 91,400 shares out of the total 124,815 of the sports corporation are present or properly represented.

Pablo Sánchez presented the management report and highlighted the opening of a new chapter

Before moving on to the agenda items, Levante UD President Pablo Sánchez presented the Management Report and delivered a message of optimism, within the realism of relying on the current management. "The Levante UD project has a future, and we want to build that future through the people who feel Levante UD. We have come to report on the fiscal year, but also to open the doors to a new chapter, a management that builds a future that brings us new successes," indicated the president. "I wanted to welcome José Danvila and thank him not only for his generosity but also because he has managed to bring people to the project through altruism, contributing his knowledge for an exciting period, led by someone who not only risks his personal wealth but has also managed to convey his enthusiasm."

As for the items on the agenda to be discussed and voted on, they are as follows:

Voted on the first item of the agenda: Annual Accounts and Management Report

-FIRST.- Examination and approval, if applicable, of the Annual Accounts (Balance Sheet, Profit and Loss Statement, and Management Report). Audit Report and Proposal for the Application of Results of "Levante, U.D., Sociedad Anónima Deportiva", all corresponding to the fiscal year 2022/2023, as well as the management of its Administrators.

The Financial Officer of Levante UD, Diego Naixes, presented the balance sheet for the 2022/23 fiscal year as outlined in the previous links. The result of the previous fiscal year was -6,073,180 million euros, with a significant decrease in losses, as the result for 2020-21 was -22,052,140 euros. Additionally, Naixes indicated that in 2022/23, the EBITDA returned to positive.

After being put to a vote, the results were as follows:

Regarding the first part of this agenda item, namely the approval of the Annual Accounts, they received 'yes' votes from 84,311 shares, while they were not approved by 4,779 shares. There were 113 abstentions, 2,084 blank votes, and 6 null votes.

The second part of this first agenda item, the Management Report of the Administrators, was approved by 7,705 shares, not approved by 79,863 shares; with 113 abstentions and 2,481 blank votes.

José Danvila presented the future plan for Levante UD

The investor and CEO of Levante UD, José Danvila, outlined the future plan of the club's new management team. Before that, Danvila welcomed María Dolores Boluda as the new president of the Levante UD Foundation and Alberto Villanueva as the new president of FROG. He also thanked Carlos Ayats and his team and Miguel Ángel Valiente for the proposed viability and for the effort made to present them.

After estimating the total injection into the club at 23 million euros, he discussed the "greatest challenge, which was the financial stabilization of the club" and how they are working towards it, highlighting the total reduction in club expenses by "around 20 million euros." He emphasized the total cuts in areas such as the first team, meals, travel, Buñol Sports City (teams and technical staff, security, diesel, heating), Ciutat de València Stadium (security, other expenses related to office use), sports sections (elimination of Beach Soccer, reduction of Futsal expenses, reconfiguration of the EA Sports team, elimination of the League of Legends team, elimination of the collaboration agreement with Patacona CF), Expojove, adjustments in independent professionals such as medical staff and podiatry, and incorporation of IMSKE as new official medical services with 100,000 euros in sponsorship; savings of 17,000 euros in the Shareholders' Meeting venue; reduction in matchday expenses on match days (hostesses, catering, VIP lounges, other services); job cuts, voluntary departures, and not replacing voluntary departures. Or adjustments in the management committee amounting to 700,000 euros.

"We have made a significant capital injection, with a restructuring of the club based on the reality of the Second Division and with a new business development and marketing plan that can bring us more income. Projecting our brand (strengthening the Marketing and Business Development department) to increase the much-needed revenue," he said, outlining four cornerstones. The main project is the Levante UD Business Club in order to approach Valencian entrepreneurs. With the Online Outlet, between 250-300,000 euros in revenue is expected. A Customer Service Department has been created. And the fourth, conducting a thorough analysis of the club's assets, there are two proposals from urban operators, a third may arrive, to maximize the uses of our two main assets: the stadium and the Sports City."

Overall, Danvila emphasized that this management and these pillars "are bearing fruit: there are green accounts and positive balances." The CEO remained optimistic about the future. "The course of Levante UD is straightening out financially, seeking the necessary stability. It doesn't mean it hasn't been tough," he emphasized, "and there is still a long way to go," Danvila recognized, acknowledging that there have been tough moments regarding the decisions to be made. "There have been a series of layoffs that always hurt and are difficult to digest, but the situation and the protection of our shield needed it urgently, and everyone's response has been of great responsibility. Thanks to all the new team for the effort, which has been painful and bitter. The club belongs to Levante fans, and we will dedicate all efforts to bring it to the top category of Spanish football,” he concluded.

Approved the Income and Expense Budget for 2023-2024

-SECOND.- Examination and approval, if applicable, of the Income and Expense Budget for the fiscal year 2023/2024.

Diego Naixes, Financial Officer of Levante UD, explained that the company foresees ordinary revenues of 16,713,790 euros and extraordinary revenues of 23,830,630 euros for 2023-2024, against expenses of 40,277,420 euros, with a projected surplus of 267,000 euros. Additionally, an operating result of 3.6 million and a positive EBITDA of 7.5 million are expected.

This second item on the agenda received the support of 84,373 shares; had 'no' votes from 4,413 shares; 156 abstentions, 2,096 blank votes, and 4 null votes. Therefore, it was approved.