CONSOLIDATED FINANCIAL STATEMENTS for the period from 1 July 2020 to 30 June 2021 The collectability of trade receivables is assessed Operating segments based on the estimated probability of default. Borussia Dortmund has four reportable segments, Specific valuation allowances are calculated for which are responsible for the main activities of the overdue receivables using individually determined overall Group. The first segment consists of Borussia percentages. In the event that the financial situations Dortmund GmbH & Co. KGaA, which operates a of our partners worsen, the amounts actually written football club including a professional football squad down may exceed the amount of the valuation and leverages the associated revenue potential allowances recognised. This could negatively impact arising from transfer deals, catering, TV marketing, the results of operations. Please refer to Note 5 for advertising and match operations. The second disclosures on carrying amounts. segment consists of the separate merchandising business, which is carried out by BVB Merchandising Note 10 includes detailed disclosures on provisions. GmbH, a legally independent entity. The wholly owned Group subsidiaries BVB Event & Deferred tax assets are recognised in respect of tax Catering GmbH and besttravel dortmund GmbH are loss carry-forwards to the extent that it is probable also classified as reportable segments. that taxable income will be available to enable the BVB Event & Catering GmbH is responsible for loss carry-forwards to actually be utilised. In order conducting stadium tours, providing and arranging to determine the amount of the deferred tax assets for event staffing services and planning, organising, required to be recognised in this context, catering, steering and conducting events of all types management makes significant assumptions with in its own name and on behalf of third parties. respect to the expected timing and amount of future besttravel dortmund GmbH is responsible for taxable income. arranging travel by air, rail and ship, as well as package tours offered to private customers by travel The preparation of financial statements in agents. It also organises and conducts events such accordance with IFRS requires the use of judgement. as sports travel, conferences and incentive trips, and All decisions requiring the use of judgement are arranges hotel and car hire bookings. reassessed on a permanent basis and are based on Internal reporting is based on the accounting past experience and expectations as to future events provisions of the German Commercial Code that appear reasonable, given the current (Handelsgesetzbuch, "HGB"). circumstances. 193