ITF

(c) Liquidity risk Financial risk management Liquidity risk is the risk that the group will not be able to meet its financial obliga ons as they fall due. The group has substan al cash balances and does not require any external funding of its opera ons. Processes are in place to issue invoices on a mely basis, monitor cash collec on closely and chase overdue balances promptly, in order to minimise liquidity risk. This is par cularly the case in respect of sponsorship income collec on, where the amounts involved can be significant. The following are the contractual maturi es of financial liabili es, including es mated interest payments and excluding the effect of ne ng agreements: Non-deriva ve financial liabili es Trade and other payables Accruals Deriva ve financial liabili es Forward exchange contracts used for hedging: Ou low Inflow Provisions carrying amount and contractual cash flows of $519,000 are payable in the year 2023 at the end of the associated opera ng lease. (d) Cash flow hedges The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are expected to occur: Assets Liabili es The forward exchange contracts are being used to hedge the foreign currency risk of the firm commitments. The hedge ra o is 1:1 (2017: 1:1). The change in value of the outstanding hedging instruments since 1 January 2018 are similar to the change in value of the hedged items used to determine hedge effec veness. The foreign currency forwards are denominated in the same currency as the highly probably future expenditure (GBP), therefore the hedge ra o is 1:1. In hedges of future cash flows, ineffec veness may arise if the ming of the forecast transac on changes from what was originally es mated, or if there are changes in the credit risk of the deriva ve counterparty or country in which they or the group are based. There was no ineffec veness during 2018 or 2017 in rela on to foreign exchange hedges. Contractual cash flows $000 (2,509) (10,974) (29,594) 27,964 (15,113) 1 year or less $000 (2,509) (10,974) (23,256) 21,731 (15,008) Between 1 and 2 years $000 - - (6,338) 6,233 (105) Contractual cash flows $000 (2,479) (9,700) (22,900) 24,099 (10,980) 1 year or less $000 (2,479) (9,700) (16,818) 17,919 (11,078) Between 1 and 2 years $000 - - (6,082) 6,180 98 Carrying amount $000 (2,509) (10,974) (29,594) 27,964 (15,113) Carrying amount $000 (2,479) (9.700) (22,900) 24,099 (10,980) 2018 2017 Contractual cash flows $000 - (1,630) (1,630) 1 year or less $000 - (1,525) (1,525) Between 2 and 5 years $000 - (105) (105) Contractual cash flows $000 1,199 - 1,199 1 year or less $000 1,101 - 1,101 Between 2 and 5 years $000 98 - 98 Carrying amount $000 - (1,630) (1,630) Carrying amount $000 1,199 - 1,199 2018 2017 ITF ANNUAL REPORT AND FINANCIAL STATEMENTS / 33 Notes (Forming part of the financial statements) 34. FINANCIAL INSTRUMENTS (CONTINUED)

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