BORUSSIA DORTMUNDGmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund Expected revenue trend and Expected trend for significant consolidated total operating proceeds operating expenses In the past financial year, Borussia Dortmund Cost management continues to be Borussia generated revenue of EUR 334,171 thousand and Dortmund's highest priority. Operating cost-effectively consolidated total operating proceeds of EUR makes a material contribution to earnings, and 358,577 thousand. Revenue is expected to increase Borussia Dortmund is unwavering in its efforts to to approximately EUR 374,000 thousand in the achieve further optimisation. coming reporting period, due primarily to higher Personnel expenses account for approximately half income from advertising, match operations and of all operating expenditure. Portions of these conference, catering and miscellaneous. Borussia personnel expenses are also dependent upon the Dortmund forecasts consolidated total operating club's sporting success, because the professional proceeds of approximately EUR 484,000 thousand squad is compensated on the basis of its on the back of a likely rise in transfer fees. The performance, meaning that these expenditures are COVID-19 pandemic will continue to affect almost always commensurate with the club's success, all of the revenue streams of Borussia Dortmund which itself is a source of income. GmbH & Co. KGaA and its subsidiaries. The other operating expenses are also partly dependent on the number of matches and the club's success on the pitch. Any efforts at cost optimisation aside, there may therefore be an increase in operating expenses that goes hand-in-hand with a material increase in income and corresponding contribution to earnings. EXPECTED DIVIDENDS In light of the fact that the Company reports a net loss to propose to the Annual General Meeting any dividend for the financial year, the management does not intend distribution for financial year 2020/2021. EXPECTED FINANCIAL POSITION Capital expenditure and financial planning Expected liquidity trend The highest priorities for developing the club's core Due to the assumptions made, Borussia Dortmund business will be making the club more competitive expects cash flows from operating activities in and improving its infrastructure. financial year 2021/2022 to amount to approximately Due to the adverse economic consequences of the EUR 30,000 thousand. This figure is subject to change ongoing COVID-19 pandemic, Borussia Dortmund due in particular to transfer deals or if actual events is currently pursuing a rather passive transfer differ from the forward-looking statements in the policy and is focusing on sensible ways to reinvest forecast concerning the club's sporting success or transfer fees already received. Even non-essential on account of the effects of the COVID-19 pandemic. investments in SIGNAL IDUNA PARK are being Free cash flow is expected to amount to postponed until further notice. approximately EUR -26,000 thousand. In order to mitigate and avoid financial risk, Borussia Dortmund in principle pursues a conservative and extremely prudent capital expenditure strategy and will not count on any uncertain sporting successes. 170