ITF

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2013 Note 2013 2013 2013 2012 2012 2012 $000 $000 $000 $000 $000 $000 Operating Investing Total Operating Investing Total Operating income Subscriptions and Authorisation Fees 3,009 - 3,009 3,104 - 3,104 Sponsorship, Competition and Television 7 41,117 - 41,117 39,793 - 39,793 Grand Slam Development Fund 1,631 - 1,631 1,626 - 1,626 Wheelchair Tennis Development Fund 136 - 136 81 - 81 Anti-doping 1,543 - 1,543 1,376 - 1,376 Data Sales 2,950 - 2,950 - - - Technical and Sundry 1,048 - 1,048 917 - 917 Olympics 6,076 - 6,076 5,383 - 5,383 Olympic Solidarity 318 - 318 438 - 438 Total operating income 57,828 - 57,828 52,718 - 52,718 Operating expenses Professional Tennis 8 31,202 - 31,202 26,400 - 26,400 Tennis Development 9 8,268 - 8,268 8,141 - 8,141 Commercial 10 3,055 - 3,055 3,100 - 3,100 Presidential & Communications 11 5,207 - 5,207 5,205 - 5,205 Science & Technical 12 2,991 - 2,991 2,352 - 2,352 Finance & Administration 13 4,944 332 5,276 5,200 256 5,456 Foreign Exchange 104 (523) (419) 51 (172) (121) Depreciation 1,533 - 1,533 1,597 - 1,597 57,304 (191) 57,113 52,046 84 52,130 Centenary expenses 609 - 609 - - - Total operating expenses 57,913 (191) 57,722 52,046 84 52,130 Investment income/(expense) 19 - 3,648 3,648 - 3,089 3,089 Operating (deficit)/surplus (85) 3,839 3,754 672 3,005 3,677 Financial income 20 - 45 45 - 21 21 Net financing income - 45 45 - 21 21 (Deficit)/surplus before tax (85) 3,884 3,799 672 3,026 3,698 Taxation 21 (441) - (441) (374) - (374) (Deficit)/surplus for the year (526) 3,884 3,358 298 3,026 3,324 49 ITF FINANCIAL STATEMENTS REPORT ON THE ITF TRUST CONSOLIDATED FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE INTERNATIONAL TENNIS FEDERATION 48 Report of KPMG LLP to the members of ITF Trust We have audited the accompanying non-statutory consolidated financial statements of the ITF Trust for the year ended 31 December 2013 set out on pages 49 to 71. These financial statements have been prepared for the reasons set out in notes 1 and 2 to the financial statements and on the basis of the financial reporting framework of International Financial Reporting Standards (IFRSs). This report is made solely to the members, as a body, in accordance with the terms of our engagement. It has been released to the Trust on the basis that our report shall not be copied, referred to or disclosed, in whole (save for the Trust's own internal purposes) or in part, without our prior written consent. Our report was designed to meet the agreed requirements of the Trust determined by the Trust's needs at the time. Our report should not therefore be regarded as suitable to be used or relied on by any party wishing to acquire rights against us other than the Trust or the members, as a body, for any purpose or in any context. Any party other than the Trust who obtains access to our report or a copy and chooses to rely on our report (or any part of it) will do so at its own risk. To the fullest extent permitted by law, KPMG LLP will accept no responsibility or liability in respect of our report to any other party. Respective responsibilities of management and KPMG LLP Management of the ITF Trust have accepted responsibility for the preparation of these non-statutory accounts for the year ended 31 December 2013 which are intended by them to give a true and fair view of the state of affairs of the Trust and of the profit or loss for that period. They have decided to prepare the non-statutory accounts in accordance with International Financial Reporting Standards (IFRSs). In preparing these non-statutory accounts, management have: • selected suitable accounting policies and applied them consistently; • made judgements and estimates that are reasonable and prudent; • stated whether they have been prepared in accordance with IFRSs as adopted by the EU; • prepared the non-statutory accounts on the going concern basis. Management have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Trust and to prevent and detect fraud and other irregularities. Our responsibility is to audit, and express an opinion on, the non-statutory financial statements in accordance with the terms of our engagement letter dated 12 February 2013 and International Standards on Auditing. Those standards require that we comply with relevant ethical requirements. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Trust's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the non-statutory financial statements. In addition we read all the financial and non-financial information in the Report of the Chairman of the Finance Committee to identify material inconsistencies with the audited non-statutory accounts and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the Trust's affairs as at 31 December 2013 and of its surplus for the year then ended; and • have been properly prepared in accordance with IFRSs as adopted by the EU. Andrew Turner Senior Statutory Auditor for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 8 Salisbury Square London EC4Y 8BB 06 March 2014

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