ITF

5 year. Cash from opera ons increased by $5.4m driven by the increase in trade and other payables as described above. There was a net cash inflow from inves ng ac vi es of $6.6m represen ng the sale of investments in exis ng por olios before the year-end not being fully re-invested. Other financial assets (2016: liabili es) represent forward contracts entered into for hedging purposes. The forward contracts are cash flow hedges and have been treated in the accounts as described in note 5(n), with the fair value adjustment arising at 31 December 2017 being taken to reserves in line with hedge accoun ng requirements. Further detail is provided in note 27 and 32(e) to the financial statements. SUBSEQUENT EVENTS As set out in the subsequent events note 35, a significant development to the Davis Cup was announced publicly before the date of signing these financial statements. The ITF Board unanimously endorsed a proposal to create a major new annual season-ending World Cup of Tennis Finals event, subject to further development, and the successful comple on of due diligence and finalisa on of a formal agreement. The proposed partnership with investment group Kosmos would see a substan al investment in tennis over a 25-year period, including significant increases in prize money for players and ITF member na ons, as well as funding of grass roots projects and other tennis development programmes. This is a bold and ambi ous plan for the future of the Davis Cup by BNP Paribas, a key cornerstone of the ITF2024 strategy. The plans will be submi ed to the ITF Annual General Mee ng, to be held in August. CONCLUSION AND OUTLOOK Overall, the financial performance of the ITF is very posi ve with sustained increases in accumulated reserves despite challenging commercial market condi ons and substan al investment in ITF2024 strategic ini a ves. The year to 31 December 2017 saw total revenues increase by $13.3m driven by data sales and media rights fixed income contracts and an overall opera ng surplus of $0.3m. Future revenues are secured with several guaranteed income contracts in place un l 2021. I would like to take this opportunity to thank the execu ve and staff or their hard work and commitment to the ITF. René Stammbach Chairman of the Finance Commi ee REPORT OF THE CHAIRMAN OF THE ITF FINANCE COMMITTEE (CONTINUED)

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