GROUP MANAGEMENT REPORT INTERNAL MANAGEMENT AND CONTROL SYSTEM Sports management categories of match operations, advertising, TV Going forward, we will continue to focus on achieving marketing and net transfer income, as well as success on the pitch under a budget tuned for operating expenses, which can be lowered through performance. To accomplish this objective, Borussia disciplined management. Dortmund will continue to put together a competitive team in the future with an emphasis on young, A key goal of the management of Borussia Dortmund promising players. is to achieve a lasting increase in profitability along with bolstering its financial strength. In addition to Our sporting objectives will be aligned with our steadily improving the operating result (EBITDA) and financial circumstances, meaning that the makeup the result from operating activities (EBIT), a positive of the squad and its cost structure will continue to free cash flow is therefore the most important depend on calculable variables on the income side. financial objective of our Company. We seek to Qualifying for and participating in international optimise these cash flows. competitions has provided the financial flexibility to reinforce the squad – with the goal of also In the coming years, Borussia Dortmund will establishing a presence in European competitions concentrate on generating steady revenue growth going forward. while limiting operating expenditure. The decisive factor in this respect will be qualifying for Financial management international competitions. Borussia Dortmund uses the result from operating activities and the operating result as indicators for Capital management measuring the economic success of the Company. The capital management responsibilities of the Borussia Dortmund derives its result from operating Company's management involve stabilising and activities from earnings before interest and taxes increasing the equity of Borussia Dortmund. One of (EBIT) and its operating result from earnings before the main ways in which we will reach these objectives interest, taxes and depreciation and amortisation is by improving the operating result and making (EBITDA). The Company continuously monitors both effective investments. the operating result (EBITDA) and the result from The management uses the result from operating operating activities (EBIT) of the segments on the activities (EBIT), the operating result (EBITDA) and basis of monthly comparisons of the budgeted and the net profit/loss for the year to manage the actual figures. To optimise these indicators, the main Company. factors to be leveraged are revenue, which can be additionally improved in the major revenue 14th match day 15th match day 3 January 2021 9 January 2021 BVB - VfL Wolfsburg 2:0 RB Leipzig - BVB 1:3 131 131