ITF

38. Financial instruments (continued) (b) Credit risk Credit risk is managed on a group basis. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. The group trades only with national tennis associations and recognised, creditworthy third parties and its debtor balances are monitored on an ongoing basis with a result that the group's exposure to bad debts is not significant. The maximum exposure is the carrying amount as disclosed in section (a) above. Based on the contractual conditions trade and other payables are due within one month. For some trade receivables the group may obtain security in the form of guarantees, deeds of undertaking or letters of credit which can be called upon if the counterparty is in default under the terms of the agreement. Loans to joint ventures In addition to trade receivables, the group is exposed to credit risk in respect of a loan advanced to Billie Jean King Cup Limited, a joint venture of the group. The loan was provided under a formal loan agreement dated 22 December 2025 and bears interest at 2.5% per annum, with contractual annual amortising repayments. Management has assessed the recoverability of the loan in accordance with FRS 102 Section 11, having regard to the contractual repayment profile, the committed funding arrangements of the joint venture partners, the strategic importance of the joint venture to the group, and the groups ongoing involvement in governance and oversight of the joint venture. Based on this assessment, management has concluded that the credit risk associated with the loan is low and that no expected credit loss provision was required at 31 December 2025. Impairment of financial assets The group has trade receivables that are subject to the expected credit loss model. While cash and cash equivalents and contract assets (accrued income) are also subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a period before the balance sheet date and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. On that basis, the loss allowance as at 31 December 2025 and 2024 was determined as follows: NOTES (Forming part of the Financial Statements) ITF Trust Annual Report and Consolidated Financial Statements 38

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