TomTom 2006 Annual Report Download - page 11

Chief Executive’s statement 9TomTom Annual Report 2006
Our retail and distribution partners were
essential in making our success possible
in 2006. We are thankful to each one
of them for their valuable expertise and
support, as well as for remaining as
committed to our relationship as we are.
This year we stepped up our efforts to
expand our distribution channels, and
we are excited to see TomTom products
selling well in 25 countries. This was
possible thanks to the continued increase
in the shelf space devoted to our products
across all key markets; ensuring that our
brand remains highly visible and that
our customers can easily find a TomTom.
An important milestone this year was
the launch of TomTom Mobility Solutions
after the successful integration of Applied
Generics, a company we acquired
in January 2006. Preparations to launch
the world’s most advanced real-time
Travel Time Information service in the
Netherlands based on this technology
are well underway. Reliable and highly
detailed travel time information is widely
seen as the most valuable content
for navigation services and will facilitate
intelligent and automatic optimised
routing for our users. This technology is
highly scalable and discussions to deploy
it in other countries are progressing.
Connected navigation became a reality
in March 2006 with the launch of TomTom
WORK, our vehicle fleet management
service which is now operational
across Europe and the US. This business
enjoyed healthy sales growth, and is well
positioned to continue to extend its
position in commercial vehicle telematics
systems in 2007.
Our success with plug-and-drive portable
navigation devices is now extending
into the automotive industry with semi-
integrated and integrated in-car navigation.
Earlier this year, TomTom presented the
world’s first portable navigation solution
for the automotive industry, which can
be attached to vehicles through the
dashboard or the radio. We believe
this recognises the robustness of our
software technology and confirms
TomTom as the brand of choice for
many car owners.
We are a thriving business and the future
holds exciting prospects for us. The global
market for intuitive personal navigation
solutions has barely been tapped. The
potential for greater product sophistication
and value-added services is limited only by
the skills, imagination and technology in
which TomTom has been investing.
Consumer demand for straight-from-the-
box products will remain robust and
innovation will accelerate, creating new
opportunities for TomTom.
I am confident that our customer focus
and deep understanding of all relevant
technologies will allow us to continue
to shape the industry.
As we continue to build our cutting-
edge navigation technologies, we are
intensifying our efforts to recruit talented
engineers who will provide the skills and
talents we will require tomorrow.
We are determined to strengthen
TomTom’s market position and leadership
in the development and marketing of
personal navigation solutions supported
by the continued protection of our
intellectual property.
TomTom is bringing personal navigation
to the mass market; we look forward to
continuing to be the benchmark against
which our competitors are judged. This
will be a year in which we continue to
put our energy and enthusiasm towards
meeting the personal navigation needs
of tomorrow’s customers. New, important
milestones await us and we have the
determination to reach them, because
we know that fantastic opportunities
will be created for everyone at TomTom
along the way.
Harold Goddijn
Chief Executive
22 February 2007