Development of performance indicators

Borussia Dortmund had forecast a net profit in the mid-seven-figure range for the 2019/2020 financial year. Based on this forecast assumption and analogue to the net profit for the year, EBIT was also expected be in the mid-seven-figure range. Since depreciation, amortisation and write-downs were expected to exceed EUR 85,000 thousand, the operating result (EBITDA) should have exceeded the result from operating activities (EBIT) by this amount. Borussia Dortmund had expected total revenue to amount to approximately EUR 485,000 thousand. The forecast had called for cash flows from operating activities of EUR 140 million and free cash flow of EUR 35 million.

Given the restrictions as a result of the COVID-19 pandemic, Borussia Dortmund GmbH & Co. KGaA resolved to withdraw its forecast of a net profit in the low millions for the 2019/2020 financial year, as published in its 2018/2019 Annual Report. Please refer to the ad hoc disclosure dated 16 March 2020.

In its ad hoc disclosure dated 29 June 2020, Borussia Dortmund issued a new earnings forecast for the 2019/2020 financial year. Management now forecast a consolidated net loss for the year of approximately EUR 45 million.

The forecast figures are a direct reflection of the effects of the COVID-19 pandemic, which impacted all of Borussia Dortmund's revenue streams.

Accordingly, since other financial performance indicators are likewise subject to significant change, no forecasts are presented in the following section.

Development of financial performance indicators

In the 2019/2020 financial year, Borussia Dortmund's financial performance indicators – revenue, result from operating activities (EBIT), operating result (EBITDA), net profit/net loss for the year, cash flows from operating activities and free cash flow – were as follows:

Development of non-financial performance indicators

In the past financial year, Borussia Dortmund decided to form the Corporate Responsibility department to consolidate its CSR activities more effectively. The department tackles issues of social, ecological as well as economic responsibility. This is in line with Hans-Joachim Watzke's call to action to better leverage the Company's appeal to effect social change and fight climate change, and the department has been given the resources necessary for these tasks. Sustainability applies to all facets of the Company. Therefore, the Corporate Responsibility department has established an internal working group with representatives from all departments to focus on and advance this issue. The working group reports to the management. Its role is to holistically shape Borussia Dortmund's sustainable development, identify ESG risks and opportunities and take appropriate action. The findings and insights, as well as the action taken, are presented in the annual Sustainability Report.

In the past financial year, Borussia Dortmund demonstrated in impressive fashion that it actively embraces its responsibility towards both its employees and the industry as a whole. Seldom has the connection between football and social responsibility been clearer than in this season. Economic issues, forces seeking to build but also divide communities, as well as ecological and health challenges have come to light. During this time, Borussia Dortmund has taken it upon itself to leverage its appeal to rise to these social challenges.

"The calibre of a football club lies in how it fulfils its social responsibilities." As we face the COVID-19 pandemic, this quote from Franz Jacobi, one of BVB's founding fathers, rings true today more than ever and has been brought to life in special fashion – for everyone at and outside of the club to see. Despite the economic losses, we maintained our employees' regular working hours and output while affording them the same level of health and safety. Arrangements with partners and opportunities for temporary employees to continue to work as essential workers during the pandemic reinforce both BVB's stable network of partnerships and the club's sense of responsibility towards its employees.

Countless initiatives under the movement #Borussiaunites are displaying solidarity that each in their own way are having a deep impact on society. One such example is BVB's "digital match day", which was launched to help the city's vibrant food scene. Fans virtually retrace the steps they would normally take to the stadium and support participating restaurants, pubs and kiosks with a donation. But more than financial aid is needed. Calls for blood donations, tips for fun children's activities at home from the club's mascot Emma, distributing food for the needy from the stadium – all of these initiatives demonstrate the solidarity displayed by the BVB family. And the family is growing steadily, which is reflected above all by the statistics for the club's digital mediums.

The club's presence on social media continues to grow. At the end of the financial year, its followers on Facebook, Twitter, Instagram YouTube and SinaWeibo exceeded the numbers in the previous quarter. Borussia Dortmund's fan work – which the club always tailors to its ever-evolving community of 952 fan clubs and over 64,000 registered fan club members spanning almost the entire globe – remains one of the BVB's key pillars, helping in large measure to shape the club's underlying business strategy.

Pursuant to the German CSR Directive Implementation Act (CSR-Richtlinie-Umsetzungsgesetz), Borussia Dortmund will publish its fourth Sustainability Report, prepared in accordance with the GRI Standards, on 31 October 2020. It outlines the social, economic and environmental aspects of sustainability and describes the club's non-financial performance indicators in detail. You can find out everything you need to know about sustainability at Borussia Dortmund on our website – https://verantwortung.bvb.de/2019/en/home-en/. *

* The content accessible via the link does not constitute part of this Group management report. In accordance with the statutory requirements, KPMG AG Wirtschaftsprüfungsgesellschaft has neither audited the cross-references nor the information to which the cross-references refer.