TomTom 2010 Annual Report Download - page 84

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p 82 / TomTom Annual Report and Accounts 2010
24. BORROWINGS (continued)
Relevant period ending Interest cover1 Leverage ratio2
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 LTM 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.
The group has the following undrawn borrowing facilities:
(€ in thousands) 2010 2009
Undrawn borrowing facilities 174,227 174,227
Total 174,227 174,227
Annual repayment schedule (€ in thousands)
2011 210,000
2012 388,000
Total 598,000
The amounts included above are due contractually and have not been discounted.
The notional amount and the fair value of our non-current borrowings are as follows:
Notional amount Fair value
(€ in thousands) 2010 2009 2010 2009
Borrowings1 388,000 598,000 381,779 552,587
388,000 598,000 381,779 552,587
1 Borrowings do not include amortised costs.
The fair value of the borrowings is estimated on the basis of discounted cash flow analysis using recent market interest rates paid by
comparable companies on borrowings with comparable terms.
A 0.5% increase or decrease in EURIBOR rate throughout this period would cause our post tax results for the year and equity to decrease
or increase by €0 million (2009: €3.1 million).
Finance leases
These are finance leases for plant and machinery, cars and equipment. The net book value of the assets related to these leases is €1.2 million
(2009: €2.2 million). Future minimum lease payments are as follows:
(€ in thousands) 2010 2009
Commitments less than 1 Year 1,016 1,042
Commitments between 1 – 5 Years 201 1,193
Commitments longer than 5 Years 1 1
Total minimum lease payments 1,218 2,236
Less amounts representing finance charges -29 -78
Present value of minimum lease payments 1,189 2,158
Notes to the Consolidated Financial Statements