ANNUAL FINANCIAL STATEMENTS for the financial year from 1 July 2020 to 30 June 2021 NOTES Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund for the financial year from 1 July 2020 to 30 June 2021 (hereinafter "Borussia Dortmund" or "Borussia Dortmund GmbH & Co. KGaA") GENERAL DISCLOSURES TO THE ANNUAL FINANCIAL STATEMENTS The annual financial statements of Borussia vertical format using the nature of expense method Dortmund GmbH & Co. KGaA for the financial year in accordance with § 275 HGB. from 1 July 2020 to 30 June 2021 have been In some instances, the additional information to be prepared in accordance with the requirements of provided in accordance with the statutory the German Commercial Code (Handelsgesetzbuch, requirements is presented in the notes for reasons "HGB") and the particular accounting requirements of clarity and accessibility. of the German Stock Corporation Act (Aktiengesetz, The annual financial statements are presented in "AktG"). Borussia Dortmund GmbH & Co. KGaA has thousands of euros. its registered office at Rheinlanddamm 207 – 209, 44137 Dortmund, Germany, and is listed in the As a result of the fact that Ballspielverein Borussia commercial register of the Local Court (Amtsgericht) 09 e.V. Dortmund (hereinafter "BV. Borussia 09 e.V. of Dortmund under the number HRB 14217. There Dortmund") holds 100% of the shares in Borussia is an additional obligation in accordance with § 315e Dortmund Geschäftsführungs-GmbH and is therefore (1) HGB to prepare consolidated financial statements regarded indirectly as a controlling company, applying international financial reporting standards Borussia Dortmund GmbH & Co. KGaA qualifies as a (IFRS) as adopted by the EU. dependent company within the meaning of § 17 AktG and accordingly is required to prepare a Dependent The balance sheet classifications comply with the Company Report in accordance with § 312 AktG. This classification format under commercial law in report must also contain the statutory concluding accordance with § 266 HGB, while the income statement required in accordance with § 312 AktG statement has in principle been prepared in the which must be included in the management report. ACCOUNTING POLICIES Fixed assets Intangible fixed assets are measured at cost less Tangible fixed assets are measured at cost less amortisation based on their expected useful lives accumulated depreciation. Depreciation and or at the lower fair value. Player registrations amortisation are based on the economic useful reported in these financial statements are generally lives of assets. Items with a value between EUR measured at cost, taking into account the decisions 150.00 to EUR 1,000.00 were recognised as an of the Federal Fiscal Court (Bundesfinanzhof, "BFH") omnibus item and will be written down over a of 26 August 1992 (I R 24/91) and of 14 December period of five years. 2011 (I R 108/10), the FIFA regulations contained in FIFA circular no. 769 of 24 August 2001, which Long-term financial assets were measured at cost came into force on 21 September 2001, and DFL or the lower fair value in case of permanent circular no. 52 of 20 March 2015, and are amortised impairment; they are not subject to amortisation. on a straight-line basis in accordance with the term of the individual contracts for professional players. Write-downs may arise for assets measured at their lower fair value. 91