ITF

5 Investments of $20.9m (2022: $40.7m) represents the ITF investment por olio and Olympic deposits. The ITF investment por olio totals $20.9m (2022: $33.4m), a decrease of $12.5m a er withdrawal of $15.9m to support working cash requirements as the nature of Davis Cup receipts has changed from being largely in advance to being largely in arrears. Of the $33.4m held in 2022, $5.9m was held in cash pending withdrawal to support working capital. Olympic deposits of $7.3m held at the end of 2022 were drawn down in 2023 as the normal withdrawal of funds over the Olympic cycle and represents the final tranche of funding from the Tokyo Olympics. The ITF reserves policy provides for holding funds for long-term financial stability and for investment in Strategic Ini a ve projects. The investment guidelines reflect the long-term objec ve and returns should therefore be viewed in this context. Deriva ve financial instruments of a $0.9m asset (2022: $1.9m liability and 2022: $0.1m asset) represent currency forward contract cash flow hedges and have been treated in the accounts as described in note 5(o), with the fair value adjustment arising at 31 December 2023 being taken to reserves in line with hedge accoun ng requirements. Further detail is provided in notes 34 and 37(e) to the financial statements. Cash at bank and in hand has decreased to $5.8m (2022: $19.3m). Cash from opera ng ac vi es was an ou low of $32.4m (2022: ou low of $13.5m), largely due to the increase in receivables to $28.1m (2022: $14.1m) and contract liability decrease to $11.1m (2022: $8.4m), offset by a cash inflow from inves ng ac vi es of $12.2m (2022: ou low of $1.3m) including the proceeds of sale of investments. The reduc on in cash is partly a ributable to a change in receiving cash in arrears for the Davis Cup whereas previously cash was largely received in advance, as evidenced by the increase in Trade Receivables. This is expected to be reversed in 2024. Prior to 2023 the ITF held $25.4m in lieu of guarantees from Kosmos, under the Davis Cup licensing agreement, as security against default or termina on. Following termina on of the licensing agreement in February 2023 the cash was transferred to cash at bank and in hand and recognised as revenue in lieu of licence fees. Refer to note 39 for further details. Current trade and other payables increased by $2.1m in the year to $52.1m (2022: $50.0m) due to the result of running the Davis Cup, partly offset by release of deferred income largely in rela on to Olympic funding for the ITF Development Programme. Conclusion and Outlook Despite the challenges highlighted we have con nued to provide significant levels of distribu ons to member na ons through our major compe ons, data rights and development programmes, as well as maintaining investment levels in our programme of strategic projects. In a turnaround from 2022, Net Assets have increased due to investment por olio gains and the revalua on of foreign exchange hedges, as well as profit realised on transfer of IP to the Billie Jean King Cup joint venture, increasing Net Assets to $43.3m. I would like to take this opportunity to thank the execu ve, the staff and my fellow members of the Finance and Audit Commi ee for their hard work and commitment to the ITF. David Rawlinson Chairman of the Finance Commi ee ITF Annual Report and Financial Statements 2023

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