Issue link: http://itf.uberflip.com/i/1503947
ITF Trust Annual Report and Financial Statements 2022 6 Business Review A review of the group's business is outlined in the Report of the Chairman of the Finance & Audit Commi ee on page 1. Principal Risks and Uncertain es The ITF prepares and reviews its risk register on a biannual basis. The major risks at the me iden fied in the risk register, reviewed by the Finance & Audit Commi ee and the Board, included: • Billie Jean King Cup Finals host not found or the new Billie Jean King Cup format being unsuccessful • The risk of the partnership with Kosmos Tennis or the new Davis Cup format being unsuccessful or unable to go ahead • Non-recent allega ons of abuse are discovered that were either not reported or not dealt with appropriately • Discrimina on against players and officials • Child welfare is compromised / safeguarding issues at ITF events or regional training centres • Security or safety issues lead to an accident at a Davis Cup or Billie Jean King Cup event • Tennis matches subject to significant or high profile corrup on The ITF implements as many reasonable mi ga ng ac ons as possible to reduce the inherent risks within the business. Performance During the Financial Year The ITF Trust made a net surplus on ongoing opera ng ac vi es a er taxa on of $5.6m (2021: deficit $8.3m), a planned deficit on strategic project expenditure a er taxa on of $3.0m (2021: $1.3m) and a net deficit on the investment ac vi es of $5.0m (2021: surplus $4.0m) making a total deficit a er tax of $2.5m (2021: deficit $5.5m). 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 & Audit Commi ee on page 1. Posi on at the End of the Year The overall result in 2022 sees equity decrease by $4.2m to $40.2m. This is mainly caused by the investment por olio losses and foreign exchange hedge revalua ons. The group has $37.6m of net current assets (2021: $49.1m) with an investment por olio valued at $40.7m (2021: $65.4m), and a cash posi on of $19.3m (2021: $15.0m). 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. Key Performance Indicators • Commercial – Davis Cup licence fee: $32.3m (2021: $19.7m) • Commercial – Sponsorship income: $7.9m (2021: $5.7m) • Commercial – Broadcast income: $2.7m (2021: $2.5m) • Commercial – Data rights income: $20.8m (2021: $11.4m) • Corporate services – Opera ng surplus before financing: $5.6m (2021: Deficit $8.2m) • Corporate services – Investment por olio return: nega ve 9.4% (2021: posi ve 8.1%) See the Report of the Chairman of the Finance & Audit Commi ee on page X for further details. By order of the Board David Haggerty René Stammbach President Chairman of the Finance & Audit Commi ee ITF, Bank Lane, Roehampton, London SW15 5XZ, United Kingdom 21 March 2023 Strategic Report