GROUP MANAGEMENT REPORT Category 3 – macroeconomic risk considers a variety of scenarios and different Macroeconomic risk arises as a result of Borussia premises, and is regularly adjusted to account for Dortmund's dependence on general economic and current conditions, so that any liquidity bottlenecks political developments. can be identified early and appropriate countermeasures designed to secure liquidity can There are currently six high-priority risks that fall be initiated. This includes the extension of the under macroeconomic risks: existing overdraft facility. Borussia Dortmund considers this confirmation that The COVID-19 pandemic and the resulting restrictions it made the right choice in the previous financial year on public life as well as the associated massive to establish the outbreak of epidemics/pandemics impact this has had on the global economy, including as a stand-alone and overarching individual risk so the football sector, is still being acutely felt in as to account for the consequences of the COVID-19 Germany and throughout the world. Aside from the pandemic. Furthermore, this individual risk impacts health consequences, the COVID-19 crisis continues almost all other existing risks. to particularly impact Borussia Dortmund's streams of revenue. The functional health and safety protocol Borussia Dortmund has classified unfavourable ensured the continuation of match operations in the macroeconomic developments accompanied by 2020/2021 season and with that the generation of high unemployment and slow economic growth or TV marketing income. However, the general ban on an economic downturn, as a further risk in this spectators in stadiums meant that income from category. match operations mostly dried up. The COVID-19 The Hamburg Institute of International Economics restrictions on hospitality services and match day (HWWI) has updated its forecast for economic advertising also impacted advertising income. development in Germany. Following another Conference, catering and miscellaneous income was economic slowdown on the back of the second also weighed down due to the lack of both public lockdown imposed in the winter of 2020/2021, the catering income on match days and events organised recovery interrupted in the autumn of 2020 now by BVB Event & Catering GmbH. The global economic looks to be continuing thanks to progress in situation remains tense, and this could continue to vaccinations and the lifting of restrictions. After impact the transfer market. While Borussia economic output contracted by 4.8% in the previous Dortmund cannot rule out that transfer proceeds for year, growth of 3% is expected for both 2021 and players will continue to decline (temporarily) in 2022. An improvement is also emerging on the coming transfer windows, it nevertheless still expects labour market, initially driven by a reduction in opportunities to obtain high transfer proceeds for partial furloughs (Kurzarbeit). players in individual cases. The downturn in proceeds caused by the COVID-19 The risk of right-wing extremism is a societal risk pandemic has impacted not only individual revenue that continues to increase. Borussia Dortmund streams but also the Group's liquidity. The financial continues to stand firmly against right-wing and liquidity planning apparatus that has been in extremism and discrimination. Borussia Dortmund place at Borussia Dortmund for many years counters this risk through prevention efforts and 159