ITF

30 26. Investment in joint ventures In August 2023, ITF Licensing (UK) Ltd (ITFL) and TWG Group (TWG) entered into a joint venture agreement to set up Billie Jean King Cup Limited (BJKCL), responsible for organising and execu ng the Billie Jean King Cup compe on. ITFL holds 51% of ordinary shares with a combined nominal value of $5 (which carry vo ng rights) and TWG holds 49%; however, strategic financial and opera ng decisions require the consent of both par es, are indica ve of joint control, hence this is equity-accounted as a joint venture. Both par es have also commi ed preference share capital, with ITFL's share equa ng to 9.4% on acquisi on and 10.6% at year end. The $2.4m preference shares held by ITFL are only redeemable at the issuer's discre on and carry no fixed dividend, hence are treated as equity and have been included as part of the investment in JV. However, because the first tranche of profits earned will be distributed according to the weigh ng of the nominal value of preference shares, the % preference share holding has been used to determine the $1.8m share of losses, using the equity method. Once all preference shares have been redeemed, ITFL will take a share of results based on its ordinary share holding. ITFL also contributed IP with a fair value of $8.74m which it previously carried at nil book value. The amount included in the cost of investment in JV is restricted to the recognised por on of the gain calculated based on TWG's 49% ordinary shareholding. The Valua on of IP was performed by Deloi e LLP using an income approach valua on method based on a discounted cash flow calcula on. Key es mates used in the calcula on included a discount rate of 15.48%, No onal Licence fee of 4% and perpetual growth rate of 2%. NOTES (CONTINUED, FORMING PART OF THE FINANCIAL STATEMENTS) Country of incorpora on Year-end repor ng date Class of shares held Ownership Billie Jean King Cup Ltd UK 31 December Ordinary 51% Registered office address: Bank Lane, Roehampton, London, SW15 5XN, United Kingdom 2023 $000 2022 $000 Investment in joint venture (JV) 2,400 - Capitalisa on of JV transac on cost 905 - Valua on of IP a ributable 3rd party investor 4,283 - Share of (loss) / profit of JV under the equity method (1,815) - 5,773 2023 $000 2022 $000 Commitments – joint ventures - - Commitment to provide funding for joint venture's capital commitments, if called 9,600 - Notes

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