GROUP MANAGEMENT REPORT Financial performance and business development Advertising plays a key role in this context. Over are dependent on footballing success. Since the years, advertising has grown to become one footballing success is difficult to plan, the best of the Company's largest income categories. In that management can do is to create a solid contrast to central TV marketing, where foundation for success. Investments, particularly distribution is already clearly defined in advance, in the professional squad, are therefore a Company management is itself able to determine necessary prerequisite for achieving footballing the requirements for and direction of sponsoring objectives such as qualifying for the UEFA activities and, if necessary, modify the strategy Champions League. However, in order to meet implemented as circumstances change. The key financial objectives, planned investments and figures for the sponsoring segment were already decisions must under certain circumstances be budgeted for the coming years based on postponed to the extent these would only be commitments from SIGNAL IDUNA Group (ending possible by incurring new debt. Moreover, a player 2026) and PUMA International Sports Marketing might be sold based on financial considerations B.V. (ending 2028), the Company's chief partners, in cases where this would not have happened had as well as the two primary sponsors 1&1 the decision been made purely on the basis of Telecommunication SE and Evonik Industries AG sporting criteria. (both ending 2025). Thus a conflict arises between the pursuit of Revenues from international competitions are more financial interests and sporting interests, i.e., a difficult to budget for, since they depend solely on situation in which sporting considerations and the team’s athletic performance. 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. 18th match day 19th match day 22 January 2021 30 January 2021 Borussia M’gladbach - BVB 4:2 BVB - FC Augsburg 3:1 133