Report of the Supervisory Board
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Pursuant to the provisions of Article 29 of the articles of association, the
Supervisory Board is pleased to present the financial statements for the
abbreviated financial year from January 1, 1998 up to and including June 30,
1998 as prepared by the Executive Board and adopted by the Supervisory
Board to be processed and approved by the General Meeting of Shareholders.
The financial statements were audited by PricewaterhouseCoopers
Nederland BV, which issued an unqualified opinion on them.
The financial statements are accompanied by the annual report drafted by
the Executive Board and the other information as referred to in Article 392,
Book 2 of the Dutch Civil Code. The Supervisory Board examined the
report of the Executive Board.
We propose to the General Meeting of Shareholders that it approve the
financial statements and discharge the Executive Board from responsibility
in respect to their management and the Supervisory Board from liability for
their supervisory activities.
In accordance with the dividend policy described in the issue prospectus of
May 5, 1998, the holders of ordinary shares will be entitled to dividend for
the financial year 1998/1999 and subsequent years, and no dividend will be
distributed for the financial year 1997/1998.
The Supervisory Board is currently made up of three members. We expect
this number to be increased to five in the near future. Pursuant to its
regulations, three members of the Supervisory Board must enjoy the express
confidence of Vereniging Amsterdamsche. Footballclub Ajax' (the
Association). These are the current members of the Supervisory Board.
On October 13, 1998, Mr M.P. Oldenhof announced to the Supervisory
Board that he intends to terminate his employment at AFC Ajax NV with
effect from January 1, 1999. As the company's Managing Director, he was
co-responsible for setting up AFC Ajax' internal organisation and the
flotation. His function as director also made him responsible for the reali
sation of the Amsterdam AreriA. The procedure to appoint his successor is
currently well under way.
AFC Ajax.NV appointed Mr J. Slop as Financial Director as of December 1,
1998 with a view to reinforcing the company's financial and accounting
systems. In addition to being responsible for both internal and external
reporting, Mr Slop will also be involved in areas such as Investor Relations.
As forecast in the prospectus, the financial year 1997/1998 closed with a
negative net result. This can chiefly be attributed to the fact that Ajax did
not compete in the Champions League, resulting in lower gate receipts
European Cup and premiums European Cup.
We were very pleased to see that Ajax won the national championship in the
1997/1998 season, thereby winning the coveted qualification for partici
pating in the Champions League in the 1998/1999 season.
Together with other European top-level football clubs, Ajax plays a key role
in negotiations with UEFA about a different set-up of the Champions
League. The negotiations should, at the very least, lead to more European
matches and structural increases in income for the participants in this
league. Ajax will closely follow these types of developments and develop
own initiatives where necessary.
In the past period, much work has been done in relation to the plans to
establish football schools abroad. We are also involved in negotiations about
co-operation with and/or participation in foreign football clubs.
The Supervisory Board believes that Ajax is developing.as expected. Our
continued aim is to remain one of the leading European football clubs.
The potential growth that is expected to accompany the existing plans and
the plans referred to above, makes us confident about the future.
In closing, the Supervisory Board would like to take this opportunity to
thank both management and staff for their commitment.
Amsterdam, November 24, 1998
M. van Praag, chairman
A.L. van Os