TomTom 2013 Annual Report Download - page 10

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first one-button control. During the year, both Nike and ourselves
continued to sell co-branded Nike-TomTom sports watches.
Automotive
Automotive revenue in 2013 was €192 million, a decrease of 9%
compared to €212 million in 2012. Our Automotive business unit
is in transition. Although we will continue to manufacture
previously developed in-dash hardware for Renault, Mazda, Fiat,
and Toyota, when quoting for automotive contracts, we now focus
on the non-hardware components of the navigation system. Our
strategy going forward is to offer individual components such as
maps, traffic services and navigation software, as well as a complete
pre-integrated connected navigation system.
In 2013, the Fiat line fit infotainment system (U-Connect) was
launched with TomTom navigation software and map content,
supporting the Fiat 500L and Alfa Mito. Daimler cars started to ship
in Europe with our traffic services, supporting the COMAND
multimedia systems for Mercedes S-, C- and GLK-class cars.
Renault's line fit infotainment system (R-Link) was progressively
rolled out across models with TomTom navigation software, map
content and traffic and other services, supporting amongst others
ZOE, Clio, Megane, Scenic and Kangoo. R-link was awarded the
first prize for connected infotainment system by SBD, an
independent automotive research consultancy firm.
Licensing
Licensing revenue in 2013 was €119 million, a decrease of 10%
compared to €133 million in 2012. The lower revenue resulted
mainly from lower GIS Licensing revenue and the phasing out of a
major contract, which has not yet been fully replaced by new
contracts.
In 2013, we announced a worldwide agreement with Telmap, an
Intel company, to supply maps and related content. We will deliver
traffic content to Telenav's mobile navigation customers. We
expanded our relationship with BlackBerry by adding TomTom’s
Traffic service for BB10 customers and entered into a partnership
agreement with Clear Channel (The Total Traffic + Weather
Network) to create the most comprehensive traffic solution
available in North America.
We continued to expand our map coverage globally. Our map
currently covers 41 million km of navigable roads in 114 countries.
Business Solutions
Business Solutions revenue in 2013 was €85 million, an increase of
16% compared to €73 million in 2012. The increase was mainly
driven by growth in the WEBFLEET subscriber base and related
recurring revenue. This recurring revenue grew by more than 25%
year on year and churn rates are low. At the end of the year, a total
of 330,000 vehicles were managed by TomTom Business Solutions'
technology, 38% up from 239,000 at the start of 2013. In excess
of 27,000 customers use TomTom's fleet management service to
manage vehicles driven in more than 60 countries worldwide.
We broadened our fleet management product offering. We
launched an App Center to present applications from development
partners which are complementary to WEBFLEET, including CRM
and ERP planning software. We also introduced a remote download
service for the Digital Tachographs of Trucks and launched new
road toll reporting functionality, providing transport companies
with greater cost transparency.
Business Solutions acquired Coordina (Gestion Electronica
Logistica, S.L.) on 31 July 2013. Coordina is the Spanish market
leader in fleet management solutions.
Revenue split by category and geography
Revenue from Content & Services was €371 million (2012: €400
million) or 38% of total revenue (2012: 38%). Content & Services
revenue was impacted by lower Licensing revenue and by the trend
towards bundling lifetime maps and traffic on the sale of a PND.
From a regional perspective, 74% of revenue was generated in
Europe (EMEA) versus 73% in 2012, 18% in North America (2012:
20%) and the remaining 8% in the rest of the world (2012: 7%).
8%
1
18%
74%
7%
20%
73%
2013 2012
Europe € 710 million
North America € 178 million
Rest of World € 76 million
¹ The 2012 comparative figures have been adjusted to align with 2013 regional allocation of revenue.
Europe € 773 million
North America € 208 million
Rest of World € 76 million
Management Board Report / Continued
ANNUAL REPORT AND ACCOUNTS 2013 / 10