KEY FIGURES AT A GLANCE PROLOGUE MANAGEMENT'S GREETING SIGNAL IDUNA PARK: History REPORT OF THE SUPERVISORY BOARD GOVERNING BODIES AND CORPORATE STRUCTURE SIGNAL IDUNA PARK: BVB Sponsorship THE BVB SHARE Share price performance Shareholder structure Investor Relations Corporate governance report THE 2006/2007 SEASON SIGNAL IDUNA PARK: BVB Merchandising MANAGEMENT REPORT BUSINESS AND FRAMEWORK CONDITIONS Development of the market and competitive environment POSITION OF THE COMPANY Development of significant operating expenses Analysis of capital structure Analysis of investments Analysis of liquidity Net assets Overall summary of results of operations, Tradition • Passion • Success financial condition and net assets COMPENSATION REPORT Tradition • Passion • Success RISK REPORT Risk management system Strategic risks Personnel risks Competitive risks Sales risks Financial risks FORECAST REPORT Anticipated development of the Company Expected general economic environment Anticipated earnings development Anticipated development of revenues Anticipated development of significant operating expenses Expected dividends Expected financial condition Financial planning Capital expenditure planning Anticipated development of liquidity Development forecast in summary SUPPLEMENTARY REPORT OTHER DISCLOSURES SIGNAL IDUNA PARK: BVB Event ANNUAL FINANCIAL STATEMENTS Balance sheet Income statement Notes Other disclosures Cash flow statement AUDITORS’ REPORT SIGNAL IDUNA PARK: BVB Media Business Report Borussia Dortmund, July 2006 - June 2007 2006 - June Dortmund, July Business Report Borussia Business Report Borussia Dortmund, July 2006 – June 2007 CONTENTS KEY FIGURES AT A GLANCE 2 PROLOGUE 3 MANAGEMENT'S GREETING 10 SIGNAL IDUNA PARK: History 12 REPORT OF THE SUPERVISORY BOARD 16 GOVERNING BODIES AND CORPORATE STRUCTURE 19 SIGNAL IDUNA PARK: BVB Sponsorship 20 THE BVB SHARE Share price performance 28 Shareholder structure 29 Investor Relations 30 Corporate governance report 32 THE 2006/2007 SEASON 38 SIGNAL IDUNA PARK: BVB Merchandising 40 MANAGEMENT REPORT GROUP MANAGEMENT REPORT BUSINESS AND FRAMEWORK CONDITIONS BUSINESS AND FRAMEWORK CONDITIONS Financial year 2006/2007 in review 44 Financial year 2006/2007 in review 106 Development of the market and competitive environment Development of the market and competitive environment in German professional football 46 in German professional football 108 Group structure and business 47 Group structure and business 109 Organisation of management and control 48 Organisation of management and control 112 Internal management system 51 Internal management system 115 Corporate strategy 52 Corporate strategy 116 POSITION OF THE COMPANY POSITION OF THE COMPANY Results of operations 54 Results of operations 118 Sales development 55 Sales development 119 Development of significant operating expenses Development of significant operating expenses Financial condition 59 Financial condition 122 Analysis of capital structure Analysis of capital structure Analysis of investments Analysis of investments Analysis of liquidity Analysis of liquidity Net assets Net assets Overall summary of results of operations, Overall summary of results of operations, financial condition and net assets financial condition and net assets COMPENSATION REPORT 60 COMPENSATION REPORT 124 Tradition • Passion • Success RISK REPORT 61 RISK REPORT 125 Risk management system Risk management system Specific risks 62 Specific risks 126 Strategic risks Strategic risks Personnel risks Personnel risks Competitive risks Competitive risks Sales risks Sales risks Financial risks Financial risks Risks jeopardising performance and continued existence Risks jeopardising performance and continued existence The risk situation in summary 65 The risk situation in summary 129 FORECAST REPORT FORECAST REPORT Anticipated development of the Company Anticipated development of the Company Expected general economic environment Expected general economic environment Expected results of operations 66 Expected results of operations 130 Anticipated earnings development Anticipated earnings development Anticipated development of revenues Anticipated development of revenues Anticipated development of significant Anticipated development of significant operating expenses operating expenses Expected dividends Expected dividends Expected financial condition Expected financial condition Financial planning Financial planning Capital expenditure planning Capital expenditure planning Anticipated development of liquidity Anticipated development of liquidity Opportunities 67 Opportunities 131 Development forecast in summary Development forecast in summary SUPPLEMENTARY REPORT 68 SUPPLEMENTARY REPORT 132 OTHER DISCLOSURES 69 OTHER DISCLOSURES 133 SIGNAL IDUNA PARK: BVB Event 72 SIGNAL IDUNA PARK: BVB Ticketing 136 ANNUAL FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Balance sheet 80 Consolidated balance sheet 140 Income statement 82 Consolidated income statement 141 Notes 83 Consolidated cash flow statement 144 Notes to the balance sheet 84 Notes to the consolidated financial statements 145 Changes in fixed assets 85 Notes to the consolidated balance sheet 154 Notes to the income statement 92 Notes to the consolidated income statement 161 Other disclosures 94 Other disclosures 165 Cash flow statement 98 AUDITORS’ REPORT 99 AUDITORS’ REPORT 170 SIGNAL IDUNA PARK: BVB Media 100 IMPRINT / FINANCIAL CALENDAR 171 EPILOGUE 172 Business Report Borussia Dortmund, July 2006 – June 2007 KEY FIGURES AT A GLANCE BORUSSIA DORTMUND GmbH & Co. KGaA 2006/2007 2005/2006 30 June 2007 30 June 2006 EUR millions EUR millions SIGNAL IDUNA PARK – MORE THAN 90 MINUTES OF FOOTBALL Equity 100.2 52.9 Investments 16.0 11.3 Gross revenue 99.7 90.0 Operating profit/loss (EBIT) 15.8 -12.0 Financial result (investment income and net interest expense) -5.5 -1.0 Extraordinary income 0 10.2 Net profit/loss for the period 10.3 -3.9 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 22.7 -4.3 Cash flows from operating activities 11.9 -5.5 Number of shares (in thousands) 61,425 43,875 Earnings per share (in EUR) 0.17 -0.09 BORUSSIA DORTMUND GROUP 2006/2007 2005/2006 30 June 2007 30 June 2006 EUR millions EUR millions Equity 86.5 37.6 Investments 16.3 11.3 Gross revenue 106.0 92.7 Operating profit/loss (EBIT) 15.6 -11.2 Financial result (investment income and net interest expense) -8.5 -11.4 Net profit/loss for the period 10.1 -20.8 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 29.1 3.0 Cash flows from operating activities 11.9 -5.1 Weighted average number of share (in thousands) 58,665 31,021 Earnings per share (in EUR) 0.17 -0.67 173 KEY FIGURES AT A GLANCE BORUSSIA DORTMUND GmbH & Co. KGaA 2006/2007 2005/2006 30 June 2007 30 June 2006 EUR millions EUR millions SIGNAL IDUNA PARK – MORE THAN 90 MINUTES OF FOOTBALL Equity 100.2 52.9 Investments 16.0 11.3 Gross revenue 99.7 90.0 Operating profit/loss (EBIT) 15.8 -12.0 Financial result (investment income and net interest expense) -5.5 -1.0 Extraordinary income 0 10.2 Net profit/loss for the period 10.3 -3.9 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 22.7 -4.3 Cash flows from operating activities 11.9 -5.5 Number of shares (in thousands) 61,425 43,875 Earnings per share (in EUR) 0.17 -0.09 BORUSSIA DORTMUND GROUP 2006/2007 2005/2006 30 June 2007 30 June 2006 EUR millions EUR millions Equity 86.5 37.6 Investments 16.3 11.3 Gross revenue 106.0 92.7 Operating profit/loss (EBIT) 15.6 -11.2 Financial result (investment income and net interest expense) -8.5 -11.4 Net profit/loss for the period 10.1 -20.8 Earnings before interest, taxes, depreciation and amortisation (EBITDA) 29.1 3.0 Cash flows from operating activities 11.9 -5.1 Weighted average number of share (in thousands) 58,665 31,021 Earnings per share (in EUR) 0.17 -0.67 173 SIGNAL IDUNA PARK 3 SIGNAL IDUNA PARK – EINTHE FUSSBALLSTADIONFOOTBALL STADIUM 4 PROLOGUE 5 SIGNAL IDUNA PARK – MORE THAN 90 MINUTES OF FOOTBALL 6 PROLOGUE 7 SIGNAL IDUNA PARK – CENTRE FOR BVB SPORT MARKETING Signal Iduna Park is a football stadium in Dort- SIGNAL IDUNA PARK is the source of revenues. mund. With 80,708 seats, it is the largest stadi- Ranging from ticketing to income from TV mar- um in Germany built exclusively for football. keting from Bundesliga matches and (where Signal Iduna Park is the ground of the Borussia applicable) matches in European competition, Dortmund football Bundesliga team and has from revenues from jersey, perimeter board already been the location for numerous inter- and interior advertising to marketing of hospi- national football tournaments, most recently, tality seats, from merchandising to event mar- the 2006 FIFA Football World Cup. The stadium, keting: Borussia Dortmund GmbH & Co. with its striking yellow pylons in the roof struc- KGaA's business activities have their source in ture, is a landmark of the city of Dortmund. a piece of earth of some 5,000 square metres Source: Wikipedia.de covered with a roll-out pitch near Bundes - straße 1. SIGNAL IDUNA PARK is the Compa- As described in the definition in the free ency- ny's heart. Since summer 2006, it has again clopaedia “Wikipedia”, the general public been owned by BVB. regards SIGNAL IDUNA PARK merely as a foot- ball ground, but it is also the POI (Point of In this business report, we outline potential Interest) – the location – around which much of for marketing the stadium in the “Sponsor- Borussia Dortmund GmbH & Co. KGaA's activ- ing”, “Merchandising”, “Event”,