MANAGEMENT REPORT Category 3 – macroeconomic risk different premises, and is regularly adjusted to Macroeconomic risk arises as a result of Borussia account for current conditions, so that any liquidity Dortmund's dependence on general economic and bottlenecks can be identified early and political developments. appropriate countermeasures designed to secure liquidity can be initiated. This includes the There are currently six high-priority risks that fall extension of the existing overdraft facility. under macroeconomic risks: Borussia Dortmund considers this confirmation that it made the right choice in the previous financial year The COVID-19 pandemic and the resulting restrictions to establish the outbreak of epidemics/pandemics on public life as well as the associated massive as a stand-alone and overarching individual risk so impact this has had on the global economy, including as to account for the consequences of the COVID-19 the football sector, is still being acutely felt in pandemic. Furthermore, this individual risk impacts Germany and throughout the world. Aside from the almost all other existing risks. health consequences, the COVID-19 crisis continues to particularly impact Borussia Dortmund's sales Borussia Dortmund has classified unfavourable categories. The functional health and safety protocol macroeconomic developments accompanied by ensured the continuation of match operations in the high unemployment and slow economic growth or 2020/2021 season and with that the generation of an economic downturn, as a further risk in this TV marketing income. However, the general ban on category. spectators in stadiums meant that income from The Hamburg Institute of International Economics match operations mostly dried up. The COVID-19 (HWWI) has updated its forecast for economic restrictions on hospitality services and match day development in Germany. Following another advertising also impacted advertising income. economic slowdown on the back of the second Conference, catering and miscellaneous income was lockdown imposed in the winter of 2020/2021, the also weighed down due to the lack of both public recovery interrupted in the autumn of 2020 now catering income on match days and events organised looks to be continuing thanks to progress in by BVB Event & Catering GmbH. The global economic vaccinations and the lifting of restrictions. After situation remains tense, and this could continue to economic output contracted by 4.8% in the previous impact the transfer market. While Borussia year, growth of 3% is expected for both 2021 and Dortmund cannot rule out that transfer proceeds for 2022. An improvement is also emerging on the players will continue to decline (temporarily) in labour market, initially driven by a reduction in coming transfer windows, it nevertheless still expects partial furloughs (Kurzarbeit). opportunities to obtain high transfer proceeds for players in individual cases. The risk of right-wing extremism is a societal risk The downturn in proceeds caused by the COVID-19 that continues to increase. Borussia Dortmund pandemic has impacted not only individual sales continues to stand firmly against right-wing categories but also the Group's liquidity. The extremism and discrimination. Borussia Dortmund financial and liquidity planning apparatus that has counters this risk through prevention efforts and been in place at Borussia Dortmund for many disciplinary action, acting in concert with a broad years considers a variety of scenarios and network of cooperation partners. By clearly 71