ITF

ITF Trust Annual Report and Financial Statements 2021 4 of $1.1m was recognised immediately with the remaining $23.3m being recognised over the period of the Olympiad un l the next Olympic Games to fund tennis development expenditure. In total $8.8m has been recognised in 2021 with $15.6m of deferred income to be released evenly over the next two years. Opera ng income also includes Grand Slam Development Fund ('GSDF') income of $1.1m (2020: $0.7m) and an - doping income of $4.7m (2020: $2.6m), both of which support corresponding expenditure. The GSDF was renamed the Grand Slam Player Development Programme from January 2022. The Interna onal Tennis Integrity Agency is responsible for the Tennis An -Doping Programme from 1 January 2022. Other Development income comprises funding for regional 12-and-under team compe ons and other funding such as grants promo ng gender equality as part of the ITF's Advantage All programme. Opera ng Expenditure Opera ng expenditure for 2021 was $74.8m (2020: $44.7m) reflec ng the gradual return of ac vi es. Professional Tennis costs increased by $24.6m to $45.5m (2020: $20.9m) with the conclusion of the Davis Cup and the Billie Jean King Cup compe on rounds that had been postponed from 2021, giving rise to an increase in prize money and par cipa on payments of $13.9m. Data rights payments to na ons were maintained at the same level per tournament as in 2020. Total distribu ons amounted to $5.2m as well as an addi onal $0.8m paid towards the Balanced Calendar Fund to encourage more $25,000 and $60,000 tournaments to be held in more countries and throughout the year. Tennis Development expenditure increased by $1.3m to $7.3m in 2021 (2020: $6.0m) as development ac vi es and programmes impacted by con nuing travel restric ons began to return. The ITF aims to deliver all programmes wherever possible, nothwithstanding the ongoing effects of the global pandemic. Commercial costs increased by $0.8m in 2021 to $2.3m (2020: $1.5m). The increase arises from the return of major events, although ac vity levels remained low compared to 2019. Presiden al and Communica ons department expenditure increased slightly from $4.9m in 2020 to $5.2m in 2021 as although the majority of Board mee ngs and commi ee mee ngs were held online, the Annual General Mee ng was conducted simultaneously in person and online. Integrity, Science and Technical expenditure rose from $4.8m in 2020 to $7.2m in 2021. $2.2m of this increase reflects an -doping costs returning to close to normal levels as professional tour events returned, and these are offset against income as referred to above. Finance and Administra on costs increased slightly from $4.8m to $5.2m with savings made in the previous year being unavailable in 2021, such as a one-off rent free period for the offices in Roehampton, London. Staff costs are included within each business unit and amounted to $11.6m in total (2020: $10.3m). 2020 costs were lower mainly due to support received from the UK Government's Coronavirus Job Reten on Scheme. Taxa on shows a net rebate of $0.4m (2020: $0.6m) which comprises R&D tax credits claimed against expenditure on the ITF World Tennis Number project and this has been designated as a Strategic Ini a ve rebate accordingly. Strategic Ini a ves Strategic Ini a ve projects are directly related to delivering the objec ves of the ITF2024 strategy, but are not categorised as ongoing or normal ac vi es. Strategic Ini a ves expenditure in 2021 consisted of $0.7m of amor sa on on projects capitalised in previous years (2020: $0.9m amor sa on and $0.1m deprecia on), and $1.0m of new expenditure for the ITF World Tennis Number project (2020: $1.2m). The ITF World Tennis Number is a key project which will give our member na ons the means to iden fy players and grow par cipa on levels, while also providing meaningful ra ngs to recrea onal and professional players alike. R&D tax credits for costs incurred in 2021 have been claimed, resul ng in a tax rebate of $0.4m (2020: costs since 2018, tax rebate $0.7m). Inves ng Ac vi es Inves ng income recorded in the Consolidated Income Statement shows gross investment gains of $4.2m (2020: $4.3m) and a net gain of $4.0m a er costs, giving a posi ve return of 8.1% (2020: $4.1m, 7.6%). The por olio con nues to be overseen by Cambridge Associates under an advisory mandate and supervised by the ITF's Investment Advisory Panel which reports to the ITF Finance and Audit Commi ee and ITF Board of Directors on a regular basis. Report of the Chairman of the Finance Committee (continued)

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