ITF

Australian Dollar: The Group entered into a forward currency contract to sell AUS$650,000 (2011: AUS$1,010,000) at an exchange rate of US$1.037/AUS$1. The fair value of these hedges, based on the mark to market valuations of the contracts at the balance sheet date, using prices on that date to purchase the same forward contracts, was a liability of $75,000 (2011: liability of $33,000) with a corresponding entry in the income statement. The forward exchange contracts are being used to hedge the foreign currency risk of the firm commitments. A movement of $0.01 in the mark to market valuation would result in a change in the fair value of $102,000 on the sterling hedge contracts, $14,000 on the euro hedge contracts and $7,000 on the Australian Dollar hedge contract. At the year end the Group also held an option to sell AUS$674,000 at an exchange rate of US$1.037/AUS$1 with a value date of 10 January 2013. At 31 December 2012 this option had a zero fair value and therefore no asset or liability has been recorded. The Group's exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial instruments except derivatives when it is based on notional amounts 31 December 2012 Sterling Euro US Dollar Other Total $000 $000$000 $000$000 Cash and cash equivalents 264 1,278 27,187 2,60831,337 Trade receivables 183 668 7,731 1,66510,247 Trade payables Forward exchange contracts (667) - Net exposure - (582)(1,249) - (34) 371 (75)262 (220) 1,91235,289 3,61640,597 31 December 2011 Sterling Euro US Dollar Other Total $000 $000$000 $000$000 Cash and cash equivalents Short term investments (Olympics) Trade receivables Trade payables Forward exchange contracts 234 566 4,512 3,615 8,927 3,863 - - - 3,863 91 1,240 9,399 1,003 11,733 (624) - - (262) (886) - 28 (521) Net exposure 3,564 1,834 13,390 (33) (526) 4,323 23,111 f) Capital management The Group's main assets are its investments and deposits, the management of which is charged to specialist investment managers who operate under investment guidelines which are regularly reviewed by the Directors. There is a combined risk on this asset – firstly, the performance of the investment managers and secondly the performance of the bond and equity markets. The Directors have taken a prudent view of future returns from the investments in their long term financial planning and estimates. ITF FINANCIAL STATEMENTS 63

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