ITF

ITF Trust Annual Report and Financial Statements 2021 6 Business Review A review of the group's business is outlined in the Report of the Chairman of the Finance Commi ee on page 3. Principal Risks and Uncertain es The ITF prepares and reviews its risk register on at least an annual basis. The major risks iden fied in the risk register, reviewed by the Finance and Audit Commi ee and the Board, include: • The risk of the Billie Jean King Cup Finals partnership or the new Billie Jean King Cup format being unsuccessful; • Non-recent allega ons of abuse being discovered that were either not reported or not dealt with appropriately; • The risk of the partnership with Kosmos Tennis or the new Davis Cup format being unsuccessful; • Corrupt players, officials or unauthorised persons manipula ng match results for personal gain; • Security or safety issues leading to an accident at a Davis Cup or Billie Jean King Cup e; • Safeguarding issues at ITF events or regional centres. The ITF implements as many reasonable mi ga ng ac ons as possible to reduce the inherent risks within the business. The spor ng world con nues to grapple with the Covid-19 pandemic which has been referenced throughout the Chairman of the Finance Commi ee's Report. The ITF Trust was prepared for the pandemic financially and, despite losses in 2020, s ll held a comfortable level of reserves coming into 2021. To reduce the impact of the pandemic, the directors con nued to curtail discre onary expenditure and nego ate with all customers to limit the drain on reserves. The resul ng closing reserves posi on in 2021 con nues to allow the ITF to weather the poten al future uncertain es and risks. Performance During the Financial Year The ITF Trust made a net deficit on ongoing opera ng ac vi es a er taxa on of $8.3m (2020: deficit $9.2m), a planned deficit on Strategic Ini a ve expenditure a er taxa on of $1.3m (2020: $1.9m) and a net surplus on the investment ac vi es of $4.0m (2020: surplus $4.1m) making a total deficit a er tax of $5.5m (2020: deficit $6.9m). Further details of the financial performance of the ITF Trust during the financial year can be found in the Report of the Chairman of the Finance Commi ee on page 3. Posi on at the End of the Year The overall result in 2021 sees equity decrease by $7.9m to $44.4m, despite spending on Strategic Ini a ves and the nega ve effects of the global pandemic. The result was par ally mi gated by the performance of the investment por olio. The group has $49.1m of net current assets (2020: $48.5m) helped by the investment por olio valued at $53.6m (2020: $49.4m), and a cash posi on of $15.0m (2020: $14.2m). The Board remains confident that the strong balance sheet, closely managed expenditure and long-term revenue contracts will allow the ITF to adequately meet the challenges ahead. The Davis Cup licensing agreement, signed for a 25-year period, sees revenues which are annually linked with infla on; new contracts have been signed with Sportradar, Uniqlo, OFX and other sponsors and partners for mul ple years, and the successful Tokyo 2020 Olympic Tennis Event has secured further funding un l 2024. While the Billie Jean King Cup Finals hos ng agreement was terminated in 2021, the finals were successfully held in Prague in November 2021, and work is ongoing to secure a host for the 2022 compe on and beyond. Key Performance Indicators • Commercial – Davis Cup licence fee: $19.7m (2020: $10.3m) • Commercial – Billie Jean King Cup Finals hos ng fee: $3.0m (2020: $5.0m) • Commercial – Sponsorship income: $5.7m (2020: $2.8m) • Commercial – Broadcast income: $2.5m (2020: $0.6m) • Commercial – Data rights income: $11.4m (2020: $6.3m) • Corporate services – Opera ng deficit: $8.2m (2020: deficit $9.1m) • Corporate services – Investment por olio return: posi ve 8.1% (2020: posi ve 7.6%) See the Report of the Chairman of the Finance Commi ee on page 3 for further details. By order of the Board David Haggerty René Stammbach President Chairman of the Finance Commi ee ITF, Bank Lane, Roehampton, London SW15 5XZ, United Kingdom 22 March 2022 Strategic Report

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