MANAGEMENT REPORT INTERNAL MANAGEMENT AND CONTROL SYSTEM Sports management be additionally improved in the major sales Going forward, we will continue to focus on categories of match operations, advertising, achieving success on the pitch under a budget tuned transfer deals and TV marketing, and operating for performance. To accomplish this objective, expenses, which can be lowered through disciplined Borussia Dortmund will continue to put together a management. competitive team in future with an emphasis on young, promising players. A key goal of the management of Borussia Dortmund is to achieve a lasting increase in profitability along Our sporting objectives will be aligned with our with bolstering its financial strength. In addition to financial circumstances, meaning that the makeup steadily improving the operating result (EBITDA) and of the squad and its cost structure will continue to the result from operating activities (EBIT), a positive depend on calculable variables on the income side. free cash flow is therefore the most important Qualifying for and participating in international financial objective of our Company. We seek to competitions has provided the financial flexibility to optimise these cash flows. reinforce the squad – with the goal of also establishing a presence in European competitions In the coming years, Borussia Dortmund will going forward. concentrate on generating steady sales growth while limiting operating expenditure. The decisive Financial management factor in this respect will be qualifying for Borussia Dortmund uses the result from operating international competitions. activities and the operating result as indicators for measuring the economic success of the Company. Capital management Borussia Dortmund derives its result from operating The capital management responsibilities of the activities from earnings before interest and taxes Company's management involve stabilising and (EBIT) and its operating result from earnings before increasing the equity of Borussia Dortmund. One of interest, taxes and depreciation and amortisation the main ways in which we will reach these (EBITDA). The Company continuously monitors both objectives is by improving the operating result and the operating result (EBITDA) and the result from making effective investments. operating activities (EBIT) of the segments on the The management uses the result from operating basis of monthly comparisons of the budgeted and activities (EBIT), the operating result (EBITDA) and actual figures. To optimise these indicators, the the net profit/loss for the year to manage the main factors to be leveraged are sales, which can Company. 45