Issue link: http://itf.uberflip.com/i/1524404
6 Business Review A review of the group's business is outlined in the Report of the Chairman of the Finance Commi ee on page 1 to 4. 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 and Audit Commi ees and the Board, included: • Financial risks predominantly associated with the Davis Cup as all revenue and cost risks now lie with ITF. This includes risks of shor alls in revenues, opera onal losses deple ng Reserves and cash shor alls • Security, safeguarding and integrity issues at ITF events • Cyber risks including hacking of ITF systems • Compe on law claim against ITIA members including ITF 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 $0.7m (2022: $5.6m), a planned deficit on strategic project expenditure a er taxa on of $3.9m (2022: $3.0m) and a net surplus on the investment ac vi es of $3.6m (2022: deficit $5.0m) making a total surplus a er tax of $0.4m (2022: deficit $2.4m). Posi on at the End of the Year The overall result in 2023 sees Net Assets increase by $3.1m to $43.3m. The group has $34.5m of net current a ssets (2022: 37.6m) with an investment por olio valued at $20.9 (2022: $40.7m) and a cash posi on of $5.8m (2022: $19.3m). 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 – Sponsorship income: 2023: $28.6m (2022: $7.9m) • Commercial – Media rights and licensing income: 2023: $8.8m (2022: $2.7m) • Commercial – Data sales income: 2023: $24.3m (2022: $20.8m) • Corporate services – Opera ng surplus before financing: 2023: $0.6m (2022: $5.6m) • Corporate services – Investment por olio return: 2023: posi ve 19.4% (2022: nega ve 9.4%) By order of the Board David Haggerty David Rawlinson President Chairman of the Finance Commi ee 5 June 2024 ITF, Bank Lane, Roehampton, London SW15 5XZ, United Kingdom STRATEGIC REPORT Strategic Report