TomTom 2009 Annual Report Download - page 16

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14 /
Management
Board report
BUSINESS REVIEW
In 2009 the group’s commercial activities were
grouped into four customer-facing business units:
Consumer, Automotive, Licensing and WORK.
In the business review we will discuss the business
units on an individual basis.
CONSUMER
At the end of 2009 Consumer was active in 33
countries. During the year we expanded our
activities into Argentina, Greece and Mexico.
Our entire PND product range was refreshed.
We added a LIVE Services capable device to
the high volume TomTom XL range. In addition we
introduced two new families, the TomTom XXL and
TomTom Start. The TomTom XXL, with its extra
large screen, is particularly geared towards US
customers but in addition is being made available in
some European countries. The TomTom Start was
developed for occasional drivers and people who are
new to car navigation. It has a simplified menu and
a two-button user interface. We recently introduced
this product for the US market under the name of
TomTom EASE. Our premium range of products was
renewed with the introduction of the TomTom GO
X50 range. Packed with all the technologies that
TomTom has to offer, this range caters to the high
demands of frequent drivers.
At the end of the year we had more than 20 million
registered TomTom HOME users, double the number
we had at the start of the year. The growing TomTom
community helps us to keep our content and
services up to date. Replacement purchases are
becoming a more important part of our PND sales,
and we have seen high loyalty to the category and
TomTom in particular.
In 2009 we maintained a 45% market share in
Europe and continued to lead the market. In North
America we increased our market share to 24% for
the year, consolidating our number two position in
the market.
In the third quarter we launched a TomTom
navigation solution for the Apple iPhone and
180,000 downloads were sold during the year. To
enhance the navigation experience, we introduced
the TomTom car kit for iPhone which features
secure docking, enhanced GPS performance and a
built-in loud speaker and microphone.
AUTOMOTIVE
2009 was an important and successful year for the
Automotive business unit. In March 2009, we
introduced our first line-fitted products with
Renault which conform to automotive quality
requirements. The Carminat-TomTom was the first
automotive ‘branded’ line-fitted navigation solution
for the volume market. It figured prominently in the
Renault and TomTom co-branded launch of the new
Clio and received positive acclaim from dealers,
customers and the press alike. Four times as many
people have been taking up our solution when
buying their new car compared with the average
take up rate in the volume car segment.
This programme also proved to the larger Automotive
community that TomTom is a serious contender
in the automotive in-car navigation space. In
December 2009, TomTom and Renault introduced
the world’s first feature upgrade for line-fitted
navigation, delivering IQ Routes™ and advanced
lane guidance features. These features can easily
be added to the device, thanks to its removable SD
card drive and TomTom’s desktop software
application TomTom HOME. In March 2009, we
also announced our second generation parts and
accessory product with Fujitsu-Ten and Toyota, to be
launched in South-East Asia and Europe.
In September 2009, we announced our first
business with the Fiat Group. The Blue&Me
TomTom was launched simultaneously with the
latest TomTom PND and is connected to the car
electronics systems via Bluetooth. It processes
and displays information it receives from the
car information system, bringing features like
eco:Drive and acts as a colour screen for the
vehicle’s multimedia system.
As a result of the successful introduction of our
high-quality solutions in the volume car segment,
we were able to increase our in-dash market
share from 0% to 10% in Europe in 2009.
The latest introduction of Advanced Driver
Assistance Systems (ADAS) solutions – systems
that seek to modify driver or vehicle behaviour – will
enable Automotive to help car manufacturers to
maximise safety and improve operating efficiency.
LICENSING
Tele Atlas’ focus in 2009 was twofold: continue
to raise the bar on map quality, freshness & coverage
and deliver the innovative content to help our
customers create the best location-based products.
During the year we significantly advanced our lead
in map coverage. We launched maps across eight
additional countries in Africa and delivered new or
expanded coverage in nine countries across Latin
America and Asia Pacific. Today our maps are the
most complete available, with 15% more countries,
five million more kilometres of roads and covering
25% more people than competing maps.
Our maps secured the highest quality and reliability
ratings in certified tests. Using a process certified
by the leading global testing and inspection
organisation TÜV SÜD, the tests showed that Tele