MANAGEMENT REPORT foundation for success. Investments, particularly activities and, if necessary, modify the strategy in the professional squad, are therefore a implemented as circumstances change. The key necessary prerequisite for achieving footballing figures for the sponsoring segment were already objectives such as qualifying for the UEFA budgeted for the coming years based on Champions League. However, in order to meet commitments from SIGNAL IDUNA Group (ending financial objectives, planned investments and 2026) and PUMA International Sports Marketing decisions must under certain circumstances be B.V. (ending 2028), the Company's chief partners, postponed to the extent these would only be as well as the two primary sponsors 1&1 possible by incurring new debt. Moreover, a player Telecommunication SE and Evonik Industries AG might be sold based on financial considerations (both ending 2025). in cases where this would not have happened had the decision been made purely on the basis of Income from international competitions is more sporting criteria. difficult to budget for, since it depends solely on the Thus a conflict arises between the pursuit of squad's footballing success. financial interests and sporting interests, i.e., a situation in which sporting considerations and financial considerations may be at odds with each other, particularly if the club continually falls short of its sporting goals. In such cases, management weighs the opportunities and risks to find a solution that does adequate justice to the Company's strategic objectives. Advertising plays a key role in this context. Over the years, advertising has grown to become one of the Company's largest income categories. In contrast to central TV marketing, where distribution is already clearly defined in advance, Company management is itself able to determine the requirements for and direction of sponsoring 47