BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund Category 1 – strategic risk fails to qualify for any international competition at We define strategic risk as risk arising from all. The objective of a corresponding worst case incorrect business decisions, poor implementation scenario is not to predict the future but rather to of decisions or the inability to adapt to changes in provide an overview of various contingencies and the corporate environment. Strategic risk also their effects and to better assist the management arises from unexpected changes in market in its strategic planning. conditions and the environment in which the Company operates, which bring with them negative Share price performance describes the consequences for the Company's assets, liabilities, performance of a security, an index, shares or a financial position and profit or loss. portfolio, but also the performance of the management of an investment fund with respect to This category includes four high-priority risks: its investment objectives. The Group is very conscious of the risk associated with the The risk that financial planning is dependent on performance of Borussia Dortmund's shares and sporting success describes the risk that failing to continually analyses the Company's value on the achieve planned sporting objectives could led to a capital market and the consequences of it being lack of adequate income or proceeds. To account for undervalued. A key component of this risk is the any and all developments both on and off the pitch, impact of these factors on potential corporate action the Company revises and updates its longstanding in the future and the Company's appeal to business financial and liquidity planning at least three times partners. This risk is countered through continual per year based on the latest premises. It is all the communication with the capital market. The shares more important for planning projections to be have been listed on the Prime Standard segment modified on a permanent basis, especially during the of the Frankfurt Stock Exchange since May 2014 COVID-19 pandemic in which the external conditions and are also admitted to trading on the SDAX. are changing faster than ever before. In addition to During the current financial year, Borussia the income statement and the statement of financial Dortmund again held several roadshows in Europe position, this also includes the development of and the United States, either on site or in virtual Borussia Dortmund's liquidity. It allows the form on account of the COVID-19 pandemic, in an management to monitor the current and future effort to keep existing investors up to date and bring financial position of the Company at all times and to any prospective investors on board. take any necessary action. Due to developments with regard to income from international TV marketing in Borussia Dortmund considers the third risk in this particular, the amount that a club is certain to receive category to be the risk of conflicting goals of for a given subsequent season varies greatly from a sporting and commercial success. It is important second-place finish to a seventh-place finish in the that Borussia Dortmund continues to pursue Bundesliga. Qualifying for the UEFA Champions balanced business policies with the aim of ensuring League guarantees much higher proceeds than that the club remains competitive and also focussed qualifying for the UEFA Europa League or UEFA on meeting the Group's performance indicators. Europa Conference League, let alone if the team Borussia Dortmund will continue to avoid financial 68