ITF

39 Sensi vity Increases and decreases in the world equity markets have a material effect on the group's post-tax surplus for any year. The group has iden fied the MSCI World Index to be reflec ve of movements in world equity prices. Based on recent vola lity an increase of 20.16% and a decrease of 13.6% are reasonably possible for which the impact on the group's post-tax surplus is es mated to be: MSCI increase 20.16% – 2023 post-tax deficit decreases by $4,210,000 (2022: +22.4%, $4,154,000 decrease); MSCI decrease 13.6% – 2023 post-tax deficit increases by $2,817,000 (2022: -17.7%, $4,176,000 increase). f) Capital management The group's main assets are its investments and deposits, the management of which is charged to specialist investment managers who operate under investment guidelines which are regularly reviewed by the directors. There is a combined risk on these assets – firstly, the performance of the investment managers, and secondly, the performance of the bond and equity markets. The directors have taken a prudent view of future returns from the investments in their long-term financial planning and es mates. 38. Equity The following table shows a breakdown of the balance sheet line item 'Equity' and the movements during the year. Hedging reserve $000 Foreign currency transla on $000 Retained earnings $000 Total $000 Equity Balance at 1 January 2022 (163) (110) 44,705 44,432 Deficit for the year - - (2,435) (2,435) Other comprehensive income (1,651) (135) - (1,786) Balance at 31 December 2022 (1,814) (245) 42,270 40,211 Balance at 1 January 2023 (1,814) (245) 42,270 40,211 Surplus for the year - - 373 373 Other comprehensive income 2,758 1 - 2,759 Balance at 31 December 2023 944 (244) 42,643 43,342 A er consolida on, the group has no share capital or equivalent balances within equity. Total Equity includes $4,283,000 in respect of the carrying value of the asset generated from the transfer of IP to the Billie Jean King Cup Ltd joint venture which is not distributable. See note 26 for further informa on. 39. Con ngencies and capital commitments The ITF's partnership with Kosmos for the Davis Cup ended in January 2023, with the Court of Arbitra on for Sport ("CAS") due to consider the circumstances of the termina on later this year. ITF has recognised the $25m cash security deposit as income under the terms of the Davis Cup Licensing and Event Management Agreement governing the partnership. Given there is a possibility that CAS will rule the $25m must be repaid, the ITF has a con ngent liability in that respect. There is a range of other outcomes, including that Kosmos is required to pay further liquidated damages to ITF, but the uncertainty (including over quan fica on) is such that no con ngent asset has been disclosed. There were no capital commitments at 31 December 2023 (2022: nil). ITF Annual Report and Financial Statements 2023

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