TomTom 2009 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2009 TomTom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

/ 81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
OF TOMTOM NV
23. MINORITY INTERESTS
Movements in minority interests were as follows:
(€ in thousands) 2009 2008
Opening balance at 1 January 4,964 0
Acquisition of subsidiaries 05,096
Minority share in acquisition of subsidiaries -381 537
Exchange result 511 -669
Closing balance at 31 December 5,094 4,964
24. BORROWINGS
Borrowings (€ in thousands) 2009 2008
Non-current 588,141 1,241,900
Current1201,387 146,588
Total borrowings 789,528 1,388,488
1 €210 million of the original loan amount will be repaid in December 2010. The full amount payable on the loan is reduced by the netting off of
the loan negotiation costs which are amortised over the period of the loan through an interest charge.
The group negotiated a syndicated loan facility consisting of a €1,585 million term loan and a €175 million
revolving credit facility to fund the Tele Atlas acquisition. Transaction costs related to the facility amounted to
€50.3 million. The facility terminates on 31 December 2012 and has an annual repayment schedule. The interest
is in line with market conditions and based on Euribor with a spread that depends on certain leverage covenants.
The average interest percentage paid on the borrowings in 2009 was 3.36% (2008: 6.35%). The group’s borrowings
are subject to covenant clauses whereby the group is required to meet certain performance indicators with regard
to our financial condition. The performance indicators relate to interest cover and leverage. In case of a breach of
these covenants the banks are contractually entitled to request early repayment of the outstanding amount. The
carrying amount of the group’s borrowings is denominated in euros.
In 2009 the group made repayments to the borrowings for an amount of €619 million and the group renegotiated
the terms of the agreement. Due to the repayments, the group immediately recognised €13.4 million of loan
transaction costs that were previously being amortised over the life of the loan.
Relevant period ending Interest cover¹ Leverage ratio²
31 December 2009 4.50 3.50
30 June 2010 4.50 3.50
31 December 2010 5.00 3.00
30 June 2011 5.00 2.50
31 December 2011 5.00 2.00
30 June 2012 5.00 2.00
31 December 2012 5.00 2.00
¹ Interest cover is defined as the ratio of last twelve months (LTM) EBITDA to the last twelve months interest expense for the relevant period.
² Leverage ratio is defined as the ratio of total consolidated net debt on a specified date to consolidated LTM EBITDA in respect of the relevant
period ending on that date.