The management report must include a fair review of the development and performance of the undertaking’s business and of its position, together with a description of the principal risks and uncertainties it faces. The review must be balanced and comprehensive, consistent with the size and complexity of the business, and include financial and, where appropriate, non‑financial key performance indicators relevant to the business, including environmental and employee matters. Where appropriate the report shall reference and explain amounts reported in the annual financial statements. Undertakings exceeding net turnover of EUR 450,000,000 and an average of 1,000 employees must disclose key intangible resources and explain how the business model depends on them and how they create value.

The management report must also indicate likely future development; activities in the field of research and development; information on acquisitions of own shares as prescribed by Article 24(2) of Directive 2012/30/EU; and the existence of branches. Where material for assessment of assets, liabilities, financial position and profit or loss, it must disclose use of financial instruments, including financial risk management objectives and policies, hedging policy for major forecasted transactions, and exposure to price, credit, liquidity and cash flow risk. Member States may exempt small undertakings from preparing management reports provided the Article 24(2) disclosure on own shares appears in the notes, and may exempt small and medium‑sized undertakings from the non‑financial information obligation in the third subparagraph of paragraph 1.