ITF

ITF Trust Annual Report and Financial Statements 2022 3 Welcome to the Annual Report and Consolidated Financial Statements of the ITF Trust. The consolidated financial statements of the ITF Trust ('ITF') make a dis nc on between Opera ng ac vi es, Strategic ac vi es and Inves ng ac vi es. Opera ng ac vi es represent the ongoing ac vi es of the ITF as dis nct from Strategic ac vi es which cons tute discrete projects aimed specifically at delivering the objec ves of the ITF's ITF2024 strategy. Inves ng ac vi es represent the performance of the investment por olios which underpin the ITF reserves. These financial statements record a deficit of $2.5m a er Strategic Ini a ve expenditure, inves ng ac vi es and tax (2021: $5.5m deficit). This result comprises a $5.6m surplus from opera ng ac vi es a er tax (2021: $8.3m deficit); $3.0m expenditure on strategic projects a er tax (2021: $1.3m); and a $5.0m deficit from inves ng ac vi es (2021: $4.0m surplus). These deficits represent the planned u lisa on of reserves to fund strategic projects, combined with a year of nega ve returns from the investment por olio. The overall deficit of $2.5m in 2022 is also compounded by a nega ve revalua on of cash flow hedges of $1.7m and foreign exchange transla on differences of $0.1m decreasing total reserves to $40.2m as at 31 December 2022 (2021: $44.4m). The ITF Board considers this level of reserves to be acceptable, and that the result represents a strong financial performance considering the con nued impact of the pandemic over the past three years as well as prevailing geopoli cal and macroeconomic factors. Opera ng Income Opera ng income for 2022 increased from $66.6m in 2021 to $98.3m, therefore exceeding pre-pandemic levels, with the largest increase being in Interna onal Compe ons as 2022 saw the first year that both the Davis Cup and Billie Jean King Cup compe ons were completed in full in one calendar year since they were postponed and played over two years in 2020-21. The Davis Cup licence fee recognised in 2022 is $32.3m (2021: $19.7m), a $12.6m increase. The second edi on of the rebranded Billie Jean King Cup Finals took place in November 2022 in Glasgow, Great Britain. Unusual income of $12.6m has been recognised in 2022 represen ng fees due under the previous contract to hold the Finals in Budapest in 2020-21. See note 7 for details. Commercial revenues from sponsorship and media rights amounted to $10.6m in 2022 (2021: $8.2m), generated from the Billie Jean King Cup compe on through our new tle partnership with Gainbridge, new apparel sponsor Tory Burch and con nued support from Microso , Magellan and Rosland Capital. The Wheelchair Tennis Tour, Wheelchair Masters and World Team Cup are supported through key partnerships with Uniqlo, NEC and BNP Paribas and the ITF con nues to be supported by corporate partnerships with Tennis-Point, ICP and OFX. ITF circuit sanc on fees and player IPIN revenues (listed as 'Receipts from events' in note 7) increased from $3.7m in 2021 to $5.3m in 2022 reflec ng the con nued growth in tour events back to pre-pandemic levels with 10,216 men and women compe ng during the year in 47,016 main draw and 33,553 qualifying matches across 1,059 tournaments in 65 countries. Hopman Cup revenue reduced to nil (2021: $0.3m) as 2021 represented the final receipt of termina on fees for the licence of the event held annually in Perth, Australia. The ITF is excited to see the return of the event in Nice, France in July 2023 and strongly believes in the importance of a combined men's and women's interna onal team event in the tennis calendar. Data rights income rose to $20.8m (2021: $11.4m) an increase of $9.4m or 82.5% for the first year of a new contract with Sportradar which has allowed the ITF to distribute record levels of payments to Na onal Associa ons. The increased income is reflec ve of the hard work undertaken by the na ons to return to pre-pandemic levels of tournaments on the ITF World Tennis Tour and increase playing opportuni es across the world. Without their support in holding such a vast number of tournaments globally, this revenue, and the corresponding record levels of distribu ons, would not be possible. The postponed Tokyo 2020 Olympic and Paralympic Games that took place successfully in 2021 provided receipts of $24.4m from the IOC in 2021-2022. Revenue of $7.8m from the event carried forward has been recognised in 2022 (2021 $8.8m) with a further $7.8m of deferred income to be released in 2023, the final year of the Olympiad. Work is underway to prepare for the next Olympic and Paralympic Games to be held in Paris, France in 2024. Opera ng income also includes Grand Slam Player Development Programme ('GSPDP') income of $2.7m (2021: $1.1m). An -doping income was not recognised in 2022 (2021: $4.7m) as the Interna onal Tennis Integrity Agency assumed responsibility for the Tennis An -Doping Programme from 1 January 2022. The small amount of revenue recognised relates to prize money forfeiture for ongoing legacy cases s ll managed by the ITF. Other Development income comprises funding for regional 12-and-under team compe ons and other funding such as the ITF's Advantage All gender equality programme. Report of the Chairman of the Finance Committee

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