01_U1-U4_GB1617-TITEL_EN rz.qxp_K-werk 28.09.17 15:36 Seite 1 http://aktie.bvb.de/eng/ ANNUAL REPORT 2016/2017 © BORUSSIA DORTMUND 2017 Annual Report Borussia Dortmund July 2016 – June 2017 BORUSSIA DORTMUND KEY FINANCIAL INDICATORS Borussia Dortmund KGaA (HGB) 2016/2017 2015/2016 EUR '000 30/06/2017 30/06/2016 Equity 348,307 347,487 Capital expenditure 104,506 44,260 Gross revenue 356,390 327,117 Operating result (EBITDA) 61,040 74,147 Result from operating activities (EBIT) 51 26,400 Financial result (investment income and net interest expense) 7,514 6,543 Net income for the year 6,339 28,262 Cash flows from operating activities 784 29,275 Number of shares (in thousands) 92,000 92,000 Earnings per share (in EUR) 0.07 0.31 Borussia Dortmund Group (IFRS) 2016/2017 2015/2016 EUR '000 30/06/2017 30/06/2016 Equity 312,302 309,542 Capital expenditure 104,738 44,849 Gross revenue 409,936 379,767 Operating result (EBITDA) 74,073 86,668 Result from operating activities (EBIT) 10,658 36,430 Financial result (investment income and net interest expense) -1,539 -2,096 Consolidated net income for the year 8,209 29,436 Cash flows from operating activities 4,795 35,228 Number of shares (in thousands) 92,000 92,000 Earnings per share (in EUR) 0.09 0.32 BORUSSIA DORTMUND 2 KEY FINANCIAL INDICATORS 6 LETTER TO SHAREHOLDERS 8 REPORT OF THE SUPERVISORY BOARD 12 EXECUTIVE BODIES AND CORPORATE STRUCTURE 14 THE SHARES 14 SHARE PRICE PERFORMANCE 18 SHARE CAPITAL AND SHAREHOLDER STRUCTURE 18 SHAREHOLDINGS BY MEMBERS OF GOVERNING BODIES 18 INVESTOR RELATIONS 19 CORPORATE GOVERNANCE DECLARATION 20 CORPORATE GOVERNANCE REPORT 28 MANAGEMENT REPORT 30 BUSINESS TREND 30 LOOKING BACK ON FINANCIAL YEAR 2016/2017 31 FINANCIAL PERFORMANCE 31 FINANCIAL INDICATORS 31 PERFORMANCE INDICATORS 33 DEVELOPMENT OF THE MARKET AND COMPETITIVE ENVIRONMENT 35 GENERAL INFORMATION ABOUT THE COMPANY 35 GROUP STRUCTURE AND BUSINESS OPERATIONS 36 ORGANISATION OF MANAGEMENT AND CONTROL 39 INTERNAL MANAGEMENT AND CONTROL SYSTEM 40 CORPORATE STRATEGY 42 POSITION OF THE COMPANY 42 DEVELOPMENT OF PERFORMANCE INDICATORS 44 RESULTS OF OPERATIONS 46 SALES TREND 49 DEVELOPMENT OF SIGNIFICANT OPERATING EXPENSES 51 ANALYSIS OF CAPITAL STRUCTURE 53 ANALYSIS OF CAPITAL EXPENDITURE 53 ANALYSIS OF LIQUIDITY 54 NET ASSETS 55 OVERALL ASSESSMENT OF FINANCIAL POSITION AND PERFORMANCE AND BUSINESS DEVELOPMENT 55 REMUNERATION REPORT 56 THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM AS IT RELATES TO THE ACCOUNTING PROCESS 57 OPPORTUNITY AND RISK REPORT 57 RISK MANAGEMENT 63 OPPORTUNITIES 63 OVERALL ASSESSMENT OF THE RISKS AND OPPORTUNITIES 64 REPORT ON EXPECTED DEVELOPMENTS 64 EXPECTED EARNINGS TREND 64 EXPECTED GENERAL ECONOMIC ENVIRONMENT 65 EXPECTED RESULTS OF OPERATIONS 66 EXPECTED DIVIDEND 66 EXPECTED FINANCIAL POSITION 66 OVERALL ASSESSMENT OF EXPECTED PERFORMANCE 67 OTHER DISCLOSURES 71 DISCLAIMER 72 ANNUAL FINANCIAL STATEMENTS 74 BALANCE SHEET 76 INCOME STATEMENT 77 NOTES 77 GENERAL DISCLOSURES TO THE ANNUAL FINANCIAL STATEMENTS 77 ACCOUNTING POLICIES 78 NOTES TO THE BALANCE SHEET 80 FIXED ASSETS 87 NOTES TO THE INCOME STATEMENT 90 OTHER DISCLOSURES 95 INDEPENDENT AUDITOR’S REPORT 4 CONTENT 104 GROUP MANAGEMENT REPORT 106 BUSINESS TREND 106 LOOKING BACK ON FINANCIAL YEAR 2016/2017 107 FINANCIAL PERFORMANCE 107 FINANCIAL INDICATORS 108 PERFORMANCE INDICATORS 110 DEVELOPMENT OF THE MARKET AND COMPETITIVE ENVIRONMENT 112 GENERAL INFORMATION ABOUT THE COMPANY 112 GROUP STRUCTURE AND BUSINESS OPERATIONS 113 ORGANISATION OF MANAGEMENT AND CONTROL 116 INTERNAL MANAGEMENT AND CONTROL SYSTEM 116 CORPORATE STRATEGY 118 POSITION OF THE COMPANY 118 DEVELOPMENT OF PERFORMANCE INDICATORS 120 RESULTS OF OPERATIONS 122 REVENUE TREND 126 DEVELOPMENT OF SIGNIFICANT OPERATING EXPENSES 128 ANALYSIS OF CAPITAL STRUCTURE 128 DEVELOPMENT AND PERFORMANCE OF THE BUSINESS 130 ANALYSIS OF CAPITAL EXPENDITURE 130 ANALYSIS OF LIQUIDITY 130 NET ASSETS 130 OVERALL ASSESSMENT OF FINANCIAL POSITION AND PERFORMANCE AND BUSINESS DEVELOPMENT 131 REMUNERATION REPORT 132 THE INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM AS IT RELATES TO THE GROUP ACCOUNTING PROCESS 133 OPPORTUNITY AND RISK REPORT 133 RISK MANAGEMENT 139 OPPORTUNITIES 139 OVERALL ASSESSMENT OF THE RISKS AND OPPORTUNITIES 140 REPORT ON EXPECTED DEVELOPMENTS 140 EXPECTED DEVELOPMENT OF CONSOLIDATED NET INCOME/LOSS 140 EXPECTED GENERAL ECONOMIC ENVIRONMENT 141 EXPECTED RESULTS OF OPERATIONS 142 EXPECTED DIVIDEND 142 EXPECTED FINANCIAL POSITION 142 OVERALL ASSESSMENT OF EXPECTED PERFORMANCE 143 EVENTS AFTER THE END OF THE REPORTING PERIOD 144 OTHER DISCLOSURES 147 DISCLAIMER 148 CONSOLIDATED FINANCIAL STATEMENTS 150 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 151 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 152 CONSOLIDATED STATEMENT OF CASH FLOWS 153 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 154 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 154 BASIC PRINCIPLES 170 NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION 178 NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 182 OTHER DISCLOSURES 191 AUDITORS’ REPORT 199 PUBLICATION DETAILS / FINANCIAL CALENDAR 5 BORUSSIA DORTMUND Hans-Joachim Watzke Thomas Treß Managing Director (Chairman) Managing Director 6 INTRODUCTORY REMARKS – 2016/2017 ANNUAL REPORT Dear Shareholders, Together we look back on a season marked by With a new coaching team, our new arrivals and success on the pitch, financial stability and familiar faces, we are brimming with confidence unforgettable moments. in the knowledge that we are excellently positioned to face whatever sporting challenges await us in During the financial year, our team was put to the the coming season. test like never before. The events surrounding the bomb attack on the team bus shook all of us to the We remain on track to meet our long-term core. In the face of shock, uncertainty and an financial plan and closed out the financial year injured teammate, the team's response was all the with a net profit for the seventh year running – an more impressive. In a collective display of solidarity achievement that has since become par for the and sheer mental strength, the team grew even course, but is by no means a matter of course. closer and achieved remarkable success: Nor do we intend to waver from this path in the By finishing third in the Bundesliga in the past year, current season. A strategic focus and a solid the team secured its return to the UEFA Champions economic foundation will continue to serve as the League. On the last match day of that challenging basis for our work in all of our business areas. season, the team's qualification for the group stage of the UEFA Champions League was a successful After successfully navigating a remarkable year, dress rehearsal for the DFB Cup final. we are eagerly awaiting the start of the new season – one bound to be full of exciting As the first team to ever advance to the final of the Bundesliga action and encounters with Europe's DFB Cup in four consecutive years, we brought the top clubs on the international stage. Cup back home to Dortmund – for the fourth time in Borussia Dortmund's illustrious history. Hans-Joachim Watzke Thomas Treß Managing Director (Chairman) Managing Director BORUSSIA DORTMUND GmbH & Co. Kommanditgesellschaft auf Aktien, Dortmund REPORT OF THE SUPERVISORY BOARD Borussia Dortmund GmbH & Co. KGaA looks year: EUR 376.3 million). Adjusted for transfers, back on an eventful 2016/2017 financial year. consolidated revenue rose by 16.8% to a new From an athletic perspective, the team achieved high of EUR 328.4 million (previous year: EUR a major objective for the season by directly 281.3 million). In the financial year ended, qualifying for the group stage of the 2017/2018 consolidated net profit after taxes amounted to UEFA Champions League, and on the domestic EUR 8.2 million (previous year: EUR 29.4 million), stage clinched another title win in the prestigious which was reflected in the results of operations DFB Cup. Regrettably, a quarter-final defeat saw in Borussia Dortmund GmbH & Co. KGaA's single- the team knocked out of the UEFA Champions entity financial statements. The Company generated League. However, the team's performance on net income for the year after taxes of EUR 6.3 the pitch was overshadowed by an abhorrent million (previous year: EUR 28.3 million). The attack targeting the Borussia Dortmund bus on Supervisory Board is therefore extremely pleased the evening of 11 April 2017 as the team was to report that it and the general partner will, for preparing to play the first leg of this quarter- the sixth consecutive year, propose to the Annual final fixture in Dortmund. The attack was intended General Meeting in November 2017 that it resolve to kill, and we consider it "luck" that the only to distribute a dividend using the net profit. injury suffered was the one to Marc Bartra's arm. Even though the wounds have healed, the impact SUPERVISORY BOARD ACTIVITY, of the attack is still being felt. The Supervisory MEETINGS Board believes that the management handled this event and its fallout in an exemplary manner. Our In the 2016/2017 financial year, the Supervisory thanks also go to the law enforcement agencies Board closely monitored the status and for their rapid investigation and the arrest of a development of the Company and the Group. It suspect. The Supervisory Board hopes that a exercised all of the rights and duties incumbent swift return to normal will continue to be possible upon it by virtue of the law and the Articles of in other respects. The Supervisory Board also Association. discussed HR issues associated with the coach. Looking back over his two years as coach, it was The Supervisory Board met four times during the agreed that Thomas Tuchel and the club would 2016/2017 financial year (on 8 September 2016, part ways early at the end of May 2017. The 21 November 2016, 7 March 2017 and 22 May Supervisory Board fully and unanimously supports 2017).