SAGA - Revenue Accounting Rules V0.1.pptx

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1. ERP Training Guide January 2018 1 Revenue accounting rules

2. CONTENTS 2 1 Revenue Accounting Overview 2 Reporting

3. SCORE ERP Revenue Accounting (FI-RA) Revenue accounting Overview 3 SCORE Reporting Hourly Daily basis Monthly basis M1 - Prepare P&L Posting M2 - Prepare BS Posting ( Deferred / Unbilled ) M3 - Posting to GL D1 – Automatic update of the commission calculation Hourly Hourly Hourly Hourly Daily Daily 3. Customer Billing 1. Acquisition Contract 2. Sales Contract / Sales Order 5. Right Holder Billing 4. Cost Posting 6. Incoming Payment

4. reporting 4 Risky Restricted visibility Blocked Good Selection Criteria Time Currency Dimension KPI

5. REPORTING 1. Selection criteria 5 EN Description FR Description Definition / Comment Company Code Société Business Area Domaine d'activité - Only relevant for company code 9610 - Lagardère Sports to distinguish France and Africa. - Put «#» for other company code Season Saison Right Holder Ayant Droit Acquisition period Acquisition period Analysis Fiscal Period Interval Période d'analyse - This criteria is applicable only for KPIs splitted by Month. These KPIs contain "-Period " in the description. - e.g. This criteria influences the value of "Gross Revenue tb Posted - Period (Sales Curr)" but not the value of "Gross Revenue to be Posted (Sales Curr)" Current Object Status Statut de l'objet Default values selected: - APPR - Approved - INOS - Not yet signed, invoiced - SIGN - Signed - CLOS - Closed - CPLT - Completed - #

6. REPORTING 2. Time 6 EN Description FR Description Definition / Comment Fiscal Year/Period Année/Période - This dimension is applicable only for KPIs splitted by Month. These KPIs contain "-Period " in the description. '- e.g. "Gross Revenue tb Posted - Period (Sales Curr)" Recognition Start Date Date de début de reconnaissance This date is used by the system to recognize revenue & cost in the adequate period. The date is copied: - Case 1 - From the sales contract item in two sub-cases: - Case 1.1 - Company codes (table ZVKORG): 4379 - LU Arizona, LLC; 4383 - LU SSI, LLC; 4384 - Jeff Sanders Promo; 4400 - Lagardere Sports(US); 4407 - Lagardere Tennis,LLC ; 4408 - LS Media, LLC; 4410 - Worldwide Football,; 4411 - LU Baseball, LLC; 9669 - LU Upsolut USAT, LLC - Case 1.2 : Company code & Project Profile (Table ZFIENH00207) - Company code : 9644 - Lagardère Sports UK - Project profile related to WBS Created outside the acquisition contract process - ZPS0002 Consulting Project Profile - ZPS0003 Budgeted Project Profile - Case 2 - From the WBS for all other cases Recognition End date Date de fin de reconnaissance - Same rules as Recognition Start Date - The Recognition End Date is equal to "#" if the start date is equal to end date. Season Saison The information is copied from the WBS

7. REPORTING 3. Currency 7 EN Description FR Description Definition / Comment Acquisition currency Devise d'Acquisition Currency of the Acquisition Period Sales Currency Devise de Vente Currency of the Sales Period or Sales Order Currency Devise Currency of the KPIs splitted by Period

8. REPORTING 4. DImension 8 EN Description FR Description Definition / Comment Right holder Ayant Droit Acquisition Contract Contrat d'Acquisition Acquistion period Période d'Acquisition Type of Deal Type de Deal - Information copied from the acquisition contract. - Possible values: - ZA01 Buy-Out - ZA02 Commission - ZA03 Minimum Guarantee - ZA04 Gross Sales Revenue - ZA05 Shortfall Guarantee - ZA06 Soft Guarantee - ZA07 Multi Level Commissi - ZA08 Buy Out- Direct Cost WBS Element WBS Profit Center Centre de Profit Customer Client Sales Quote ID Quote ID Sales Document Document de Vente Sales Document Item Poste de Doc de Vente

9. REPORTING 4. DImension 9 EN Description FR Description Definition / Comment Sales Document Status Status de Doc de Vente Revenue is recognized for the following status (if Controlling Validation is active): - APPR - Approved - INOS - Not yet signed, invoiced - SIGN - Signed - CLOS - Closed - CPLT - Completed Controlling Validation Validation CdG - Flag copied from the Sales contract / Sales Order - Only Gross Revenue having active Controlling Validation flag is taken into account in the commission calculation - No Revenue is recognized if the flag is not active Media Region Région Media Specific to Media. Possible values: - 101-Africa - 111-America - 121-Asia-Pacific - 131-Europe - 141-Middle-East - 151-Global - 161-Topside Distribution Country Pays de Distribution Specific to Media Category Catégorie - Revenue and Cost Category - Allows GL Account determination for Revenue

10. REPORTING 4. DImension 10 EN Description FR Description Definition / Comment Sales Type Type de Vente Possible values: - STANDARD : All products in the sales contract are acquired by Company A and they are sold by company A - FULL INTERCO : All products in the sales contract belong to Company A and they are sold by Company B - BUNDLE : Products of several companies (A,B, C..) and they are sold by Company A Interco Partner Partenaire Interco This field contains a value in case of sales type "FULL INTERCO" and "BUNDLE" - Case 1 - "FULL INTERCO": the field contains the magnitude id of the company that sold the right. - Case 2 - "BUNDLE": the field contains the magnitude id of the company that acquired the right. Material Article - Product TOR Label Type de Droit - Type of Right

11. REPORTING 5. KPI 11 EN Description FR Description Definition / Comment Gross Revenue WHT incl. (Sales Curr) Revenu Brut WHT Incl. (Dev Vente) -Revenue of the Sales Period/Sales Order Withholding included and VAT Excluded in Sales Currency - This KPI is available even if Controlling Validation flag is not active WHT Amount (Sales Curr) Montant WHT (Dev Vte) - Withholding Amount in Sales Currency - This KPI is available even if Controlling Validation flag is not active Gross Revenue WHT Excl. (Sales Curr) Revenu Brut HT (Dev Vte) - Revenue of the Sales Period/Sales Order, Withholding and VAT excluded in Sales Currency - This KPI is available even if Controlling Validation flag is not active Gross Revenue to be Posted (Sales Curr) Revenu Brut à comptaliser (Dev Vte) - The overall Revenue of the Sales Period/Sales Order that will be posted. - This Amount includes Withholding - This KPI is available even if Controlling Validation flag is not active Gross Revenue tb Posted - Period (Sales Curr) Revenu Brut à comptaliser - Période (Dev Vte) -The Revenue of the Sales Period/Sales Order that will be posted in the Period -This KPI is available even if Controlling Validation flag is not active Gross Revenue Invoiced by LSE - Period (Sales Curr) Revenu facturé par LSE - Période (Dev Vte) -The Revenue of the Sales Period/Sales Order invoiced in the period -This KPI is available even if Controlling Validation flag is not active Invoiced by LSE WHT Excl.(Sales Curr) Facturé par LSE HT (Dev Vte) '- The overall Revenue of the Sales Period/Sales Order invoiced by Lagardère, Withholding and VAT excluded in Sales Currency - The amount invoiced by Lagardère is identified thanks to the billing code at the Billing Plan level (Z001 Billing Plan and Z003 LSE Barter ) - Sales contract/Sales Order can not be invoice if Controlling Validation flag is not active - This KPI is available even if Controlling Validation flag is not active (e.g. Flag updated after billing) Invoiced by RH WHT Excl.(Sales Curr) Facturé par AD HT (Dev Vte) - The overall Revenue of the Sales Period/Sales Order invoiced by the right holder, Withholding and VAT excluded in Sales Currency - The amount invoiced by the right Holder is identified thanks to the billing code at the Billing Plan level (Z002 Barter on Behalf of Right Holder and Z004 Billing Plan on behalf Right Holder ) - This amount is copied from the billing plan of the Sales Period / Sales Order - This KPI is available even if Controlling Validation flag is not active

12. REPORTING 5. KPI 12 EN Description FR Description Definition / Comment Cash collected by LSE WHT Excl. (Sales Curr) Cash Collecté par LSE HT (Dev Vte) '- The overall Revenue of the Sales Period/Sales Order collected by Lagardère, Withholding and VAT excluded in Sales Currency - This KPI is available if Controlling Validation flag is active Cash collected by RH WHT Excl. (Sales Curr) Cash Collecté par AD (Dev Vte) - The overall Revenue of the Sales Period/Sales Order collected by the right holder, Withholding and VAT excluded in Sales Currency - This amount is copied from the billing plan of the Sales Period / Sales Order - This KPI is available if Controlling Validation flag is active Gross Revenue WHT Incl. (Acq Curr) Revenu Brut WHT Incl. (Dev Acq) -Revenue of the Sales Period/Sales Order Withholding included and VAT Excluded and converted to Acquisition Currency - This KPI is available even if Controlling Validation flag is not active Gross Revenue WHT Excl. (Acq Curr) Revenu Brut HT (Dev Acq) - Revenue of the Sales Period/Sales Order, Withholding and VAT excluded and converted to Acquisition Currency - This KPI is available even if Controlling Validation flag is not active Gross Revenue WHT Excl.( Control. Validat. Acq Curr) Revenu Brut HT (avec validation du CdG) - Revenue of the Sales Period/Sales Order, Withholding and VAT excluded and converted to Acquisition Currency - This KPI is available if Controlling Validation flag is active To be invoiced by LSE WHT Excl. (Acq Curr) A Facturer par LSE HT (Dev Acq) '- The overall Revenue of the Sales Period/Sales Order to be invoiced by Lagardère, Withholding and VAT excluded and converted to Acquisition Currency - The amount to be invoiced by Lagardère is identified thanks to the billing code at the Billing Plan level (Z001 Billing Plan and Z003 LSE Barter ) - This KPI is available if Controlling Validation flag is active To be invoiced by RH WHT Excl.(Acq Curr) A Facturer par AD HT (Dev Acq) - The overall Revenue of the Sales Period/Sales Order to be invoiced by the right holder, Withholding and VAT excluded and converted to Acquisition Currency - The amount invoiced by the right Holder is identified thanks to the billing code at the Billing Plan level (Z002 Barter on Behalf of Right Holder and Z004 Billing Plan on behalf Right Holder ) - This KPI is available if Controlling Validation flag is active

13. REPORTING 5. KPI 13 EN Description FR Description Definition / Comment Barter deals by LSE WHT Excl. (Acq Curr) Echange de Marchandises LSE HT (Dev Acq) '- The barter amount of the Sales Period/Sales Order to be invoiced by Lagardère, Withholding and VAT excluded and converted to Acquisition Currency - The amount to be invoiced by Lagardère is identified thanks to the billing code at the Billing Plan level (Z003 LSE Barter ) - This KPI is available if Controlling Validation flag is active Barter deals by RH WHT Excl.(Acq Curr) Echange de Marchandises AD HT (Dev Acq) - The Barter amount of the Sales Period/Sales Order to be invoiced by the right holder, Withholding and VAT excluded and converted to Acquisition Currency - The amount to be invoiced by the right Holder is identified thanks to the billing code at the Billing Plan level (Z002 Barter on Behalf of Right Holder) - This KPI is available if Controlling Validation flag is active Invoiced by LSE WHT Excl.(Acq Curr) Facturé par LSE HT (Dev Acq) '- The overall Revenue of the Sales Period/Sales Order invoiced by Lagardère, Withholding and VAT excluded and converted to Acquisition Currency - The amount invoiced by Lagardère is identified thanks to the billing code at the Billing Plan level (Z001 Billing Plan and Z003 LSE Barter ) - This KPI is available if Controlling Validation flag is active Invoiced by RH WHT Excl.(Acq Curr) Facturé par AD HT (Dev Acq) - The overall Revenue of the Sales Period/Sales Order invoiced by the right holder, Withholding and VAT excluded and converted to Acquisition Currency - The amount invoiced by the right Holder is identified thanks to the billing code at the Billing Plan level (Z002 Barter on Behalf of Right Holder and Z004 Billing Plan on behalf Right Holder ) - This KPI is available if Controlling Validation flag is active Cash collected by LSE WHT Excl. (Acq Curr) Cash Collecté par LSE HT (Dev Acq) '- The overall Revenue of the Sales Period/Sales Order collected by Lagardère, Withholding and VAT excluded and converted to Acquisition Currency - This KPI is available if Controlling Validation flag is active Cash collected by RH WHT Excl. (Acq Curr) Cash Collecté par AD (Dev Acq) - The overall Revenue of the Sales Period/Sales Order collected by the right holder, Withholding and VAT excluded and converted to Acquisition Currency - This amount is copied from the billing plan of the Sales Period / Sales Order - This KPI is available if Controlling Validation flag is active

14. REPORTING 5. KPI 14 EN Description FR Description Definition / Comment Actual Operating Cost (Acq Curr) Frais d'Exploitation Réel (Dev Acq) - This KPI displays the cost posted in WBS and in the follwoing GL accounts: - 6111000000 EXTERNAL SERVICES - SPONSORSHIP / MKTG : The Category "Z1-D.COST-SPONSO-MKTG" is assigned in this case, - 6112000000 EXTERNAL SERVICES - HOSPITALITY : The Category "Z2 D.COST-HOSPITALITY" is assigned in this case, - 6119000000 OTHER EXTERNAL SERVICES: The Cateory "Z9 D.COST-OTHER REVENUE" is assigned in this case - This KPI is available if Cost intergation in RA is activated for these Accounts - This feature is active for France and UK Media. % Actual Operating Cost % Frais d'Exploitation Réel [% Actual Operating Cost] = [Actual Operating Cost (Acq Curr)] / [Gross Revenue WHT Excl.( Control. Validat. Acq Curr)] Actual Operating Cost - Period Frais d'Exploitation Réel - Période Actual Operating cost splitted by Period in company code Currency Capped Cost Frais d'Exploitation Théorique (Dev Acq) - This KPI is specific to France - A Capped cost rate (CC Rate) can be entered in the SAP transaction ZFICAPCOST by Acqusition Period for the following Revenue types : - RA100 Sponsorship-Mktg - RA200 Hospitality - RA300 Media Rights - RA900 Other Revenue - [Capped Cost] = [Gross Revenue WHT Excl.( Control. Validat. Acq Curr)] x [CC Rate] % Capped Cost % Frais d'Exploitation Théorique [% Capped Cost] = [Capped Cost] / [Gross Revenue WHT Excl.( Control. Validat . Acq Curr )]

15. REPORTING 5. KPI 15 EN Description FR Description Definition / Comment Actual Operating Cost (Acq Curr) Frais d'Exploitation Réel (Dev Acq) - This KPI displays the cost posted in WBS and in the follwoing GL accounts: - 6111000000 EXTERNAL SERVICES - SPONSORSHIP / MKTG : The Category "Z1-D.COST-SPONSO-MKTG" is assigned in this case, - 6112000000 EXTERNAL SERVICES - HOSPITALITY : The Category "Z2 D.COST-HOSPITALITY" is assigned in this case, - 6119000000 OTHER EXTERNAL SERVICES: The Cateory "Z9 D.COST-OTHER REVENUE" is assigned in this case - This KPI is available if Cost intergation in RA is activated for these Accounts - This feature is active for France and UK Media. % Actual Operating Cost % Frais d'Exploitation Réel [% Actual Operating Cost] = [Actual Operating Cost (Acq Curr)] / [Gross Revenue WHT Excl.( Control. Validat. Acq Curr)] Actual Operating Cost - Period Frais d'Exploitation Réel - Période Actual Operating cost splitted by Period in company code Currency Capped Cost Frais d'Exploitation Théorique (Dev Acq) - This KPI is specific to France - A Capped cost rate (CC Rate) can be entered in the SAP transaction ZFICAPCOST by Acqusition Period for the following Revenue types : - RA100 Sponsorship-Mktg - RA200 Hospitality - RA300 Media Rights - RA900 Other Revenue - [Capped Cost] = [Gross Revenue WHT Excl.( Control. Validat. Acq Curr)] x [CC Rate] % Capped Cost % Frais d'Exploitation Théorique [% Capped Cost] = [Capped Cost] / [Gross Revenue WHT Excl.( Control. Validat . Acq Curr )]

16. REPORTING 5. KPI 16 EN Description FR Description Definition / Comment Cost to be reinvoiced to RH (Acq curr) Coûts hors plafond à refacturer au AD (Dev Acq) - This KPI is specific to France - A Target Operating Cost can be entered in the SAP transaction ZFICAPCOST by Acquisition Period for the following Revenue types : - RA100 Sponsorship-Mktg - RA200 Hospitality - RA300 Media Rights - RA900 Other Revenue - [Cost to be reinvoiced to RH (Acq curr)] = Max ( [Target Operating Cost] , [Actual Operating Cost (Acq Curr)] ) - [Capped Cost] Cost to be reinvoiced to RH - Period (Acq curr) Coûts hors plafond à refacturer au AD - Période (D The [Cost to be reinvoiced to RH (Acq curr)] recognized by Period according to recognition start/end dates Cost reinvoiced to RH - Period (Acq curr) Coûts hors plafond facturés au AD - Période (Dev A Cost reinvoiced to RH in Acquisition Currency Est. Servicing Cost (Acq Curr) Coûts estimés de Services (Dev Acq) - In the Acquisition contract, it's possible to enter: [A] Sales Estimated Value [B] Estimated Servicing Cost - [Est. Servicing Cost ( Acq Curr )] = [Gross Revenue WHT Excl.( Control. Validat . Acq Curr )] X[B] / [A]

17. REPORTING 5. KPI 17 EN Description FR Description Definition / Comment Royalties to be transferred to RH (Acq curr) Redevances (Dev Acq) 1/ This KPI is calculated for each Sales document if all of the following conditions are fulfilled : - Type of Deal: ZA02 - Commission, ZA03 - Minimum Guarantee, ZA04 - Gross Sales Revenue, ZA05 - Shortfall Guarantee, ZA06 - Soft Guarantee, ZA07 - Multi Level Commission - Billing Method: Z1 - LSE Billing or Z3 - RH Billing - Sales Document Status : APPR - Approved, INOS - Not yet signed invoiced, SIGN - Signed, CLOS - Closed, CPLT - Completed - Controlling Validation Flag active 2/ T he Royalties are calculated only for rights and not for delivery services. The following KPIs are used in the calculation: [A] Gross Revenue WHT Excl.( Control. Validat . Acq Curr ) [B] To be invoiced by LSE WHT Excl. ( Acq Curr ) [C] Capped Cost [D] Est. Servicing Cost ( Acq Curr ) 3/ A percentage of commission [%COM] is calculated according to type of deal rules 4/ [Royalties to be transferred to RH ( Acq curr )] = ( 1 - [%COM] ) x ( [B] - ( [C] +[D] ) x ( [B]/[A] ) ) Royalties to be transferred to RH - Period (Acq cu Redevances - Période (Dev Acq) The [Royalties to be transferred to RH ( Acq curr )] recognized by Period according to recognition start/end dates

18. REPORTING 5. KPI 18 EN Description FR Description Definition / Comment Commission to be invoiced to RH (Acq curr) Commission (Dev Acq) 1/ This KPI is calculated for each Sales document if all of the following conditions are fulfilled : - Type of Deal: ZA02 - Commission, ZA03 - Minimum Guarantee, ZA04 - Gross Sales Revenue, ZA05 - Shortfall Guarantee, ZA06 - Soft Guarantee, ZA07 - Multi Level Commission - Billing Method: Z1 - LSE Billing, Z2 - LSE on behalf of RH, Z3 - RH Billing , Z4 - Deposit Account - Sales Document Status : APPR - Approved, INOS - Not yet signed invoiced, SIGN - Signed, CLOS - Closed, CPLT - Completed - Controlling Validation Flag active 2/ T he commission is calculated only for rights and not for delivery services. The following KPIs are used in the calculation: [A] Gross Revenue WHT Excl.( Control. Validat . Acq Curr ) [B] To be invoiced by RH WHT Excl.( Acq Curr ) [C] Capped Cost [D] Est. Servicing Cost ( Acq Curr ) 3/ A percentage of commission [%COM] is calculated according to type of deal rules 4/ if Billing Method: Z1 - LSE Billing, Z3 - RH Billing [Commission to be invoiced to RH ( Acq curr )] = [%COM] x ( [B] - ( [C] +[D] ) x ( [B]/[A] ) ) 5/ if Billing Method: Z2 - LSE on behalf of RH, Z4 - Deposit Account [Commission to be invoiced to RH ( Acq curr )] = [%COM] x ([A] - [C] - [D]) Commission to be invoiced to RH - Period (Acq curr Commission à facturer au RH - Période (Dev Acq) The [Commission to be invoiced to RH ( Acq curr )] recognized by Period according to recognition start/end dates Commission invoiced to RH - Period (Acq curr) Commission facturée au AD - Période (Dev Acq) The Commission invoiced to RH assigned to the invoicing posting period

19. REPORTING 5. KPI 19 EN Description FR Description Definition / Comment BuyOut Direct Cost - Period (Acq curr) Coûts de BuyOut Direct Cost - Période (Dev Acq) -The KPI is relevant for Acquisition Contracts having type of deal "BuyOut Direct Cost" - The Acquistion price is splitted by period according to Start and End Date of the Acquisition Period ( if period based pricing ) or Start and End Date of the event ( if event based pricing ) Right Depreciation - Period Amortissement Droits - Période -The KPI is relevant for Acquisition Contracts having type of deal "BuyOut" - This KPI is calculated if the BuyOut Amount by WBS is uploaded in RA - The Amount by WBS is splitted by period according to Start and End Date of each WBS Fee Split External Agent (Acq curr) Frais Agent Externe (Dev Acq) - This KPI is specific to US - The fee split related to external agent is a cost based on commission value ( fee split = %of commission) - The percentage of fee split can be entered in the Acquisition contract at the period or event level. Fee Split Internal Agent (Acq curr) Frais Agent Interne (Dev Acq) - This KPI is specific to US - The fee split related to internal agent is a cost based on commission value ( fee split = %of commission) - The percentage of fee split can be entered in the Acquisition contract at the period or event level. Margin (Acq Curr) Marge en Valeur (Dev Acq) - The formula is based on : [1] To be invoiced by LSE WHT Excl. ( Acq Curr ) [2] Capped Cost [3] Royalties to be transferred to RH ( Acq curr ) [4] Commission to be invoiced to RH ( Acq curr ) [5] Gross Revenue WHT Excl. ( Acq Curr ) - Margin = [1] - [2]x([1]/[5]) - [3] + [4] ( => formula to be adjusted ) % Margin Marge en % - The formula is based on : [A] Margin ( Acq Curr ) [B] Gross Revenue WHT Excl. ( Acq Curr ) [C] Capped Cost - %Margin = [A] / ([B] - [C])

20. REPORTING 5. KPI 20 EN Description FR Description Definition / Comment COGS (Acq Curr) COGS (Dev Acq) - This KPI displays the cost posted in WBS and in the follwoing GL accounts: - 6113000000 MISC. EXTERNAL SERVICES - 6115000000 ACTIVATION AND DIGITAL COSTS - The Category "ZY - COGS" is assigned in this case - This KPI is available if Cost intergation in RA is activated for these Accounts - This feature is active for France and UK Media. COGS - Period (Acq Curr) COGS - Période (Dev Acq) COGS (Acq Curr) splitted by period according to WBS Start and End Date Other Cost (Acq Curr) Autres Coûts (Dev Acq) - This KPI displays the cost posted in WBS and in GL accounts that are not listed in "Actual Operating Cost (Acq Curr)" and "COGS (Acq Curr)" ) - The Category "ZZ OTHER COST" is assigned in this case - This KPI is available if Cost intergation in RA is activated for these Accounts - This feature is active for France and UK Media. Other Cost - Period (Acq Curr) Autres Coûts - Période (Dev Acq) Other Cost ( Acq Curr ) splitted by period according to WBS Start and End Date

21. Thank you for your attention The End 21