TomTom 2007 Annual Report Download - page 71

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65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
18. OTHER FINANCIAL ASSETS
The Group utilises currency derivatives to manage significant risks related to future transactions and cash flows
denominated in non functional currencies. The Group is exposed to USD currency exchange risk on the
procurement side and to currency exchange risk related to sales in GBP, USD, AUD and some European
currencies on the revenue side. The Group does not purchase or hold financial instruments for trading purposes.
The Group is party to foreign currency forward contracts and plain option contracts for the management of its
exchange rate exposures. At the balance sheet date the total net fair value relating to outstanding foreign
exchange option and forward contracts to which the Group was committed, was a net asset of €25.0 million
(of which €1.7 million is included in other liabilities) compared to a net liability of €3.7 million in 2006.
At the balance sheet date, the notional value of outstanding foreign exchange option and forward contracts to
which the Group was committed are as follows:
(€in thousands) 2007 2006
Rights and obligations to buy US dollars 748,000 272,500
Rights and obligations to sell US dollars -348,000 0
Rights and obligations to sell GB pounds -138,500 -81,500
Rights and obligations to sell AU dollars -96,500 0
19. CASH AND CASH EQUIVALENTS
(€in thousands) 2007 2006
Cash and equivalents 173,337 310,122
Deposits 290,002 127,679
463,339 437,801
Cash and cash equivalents consist of cash held by the Group partly invested in short-term bank deposits with an
original maturity of three months or less.
All cash and cash equivalents are available for immediate use by the Group.
20. SHAREHOLDERS’ EQUITY
2007 2007 2006 2006
(€in (€in
No. thousands) No. thousands)
Authorised:
Ordinary shares 333,000,000 66,600 333,000,000 66,600
Preferred shares 166,500,000 33,300 166,500,000 33,300
499,500,000 99,900 499,500,000 99,900
Issued and fullypaid:
Ordinary shares 121,785,000 24,357 112,921,000 22,584
All shares have a par value of €0.20 per share(2006: €0.20 per share).
On 7 December, the Company placed 8,156,250 new ordinary shares of 20 cents at a price of €56 per share,
raising net proceeds of approximately€450 million.
In 2007, 707,370 shares were issued following the exercise of share options by employees (2006: 5,640,093).
Our reserves are freely distributable except for €5.8 million of legal reserves. Reference is made to note 6 in our
Company financial statements for an overview of our non-distributable reserves.