TomTom 2014 Annual Report Download

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ANNUAL REPORT 2014

Table of contents

  • Page 1
    ANNUAL REPORT 2014

  • Page 2
    ... TRUCK PRODUCT-RELATED CONNECTED CAR DIGITAL MAP MULTINET-R REAL-TIME TRAFFIC INFORMATION NAVKIT NAVIGATION ENGINE FINANCE & STRATEGY ACCOUNTING POLICIES SIGNIFICANT ESTIMATES OUTLOOK STRATEGY SPORT RUNNING CYCLING SWIMMING GOLF NAVCLOUD CLOUD-BASED PRODUCTS WEBFLEET TELEMATICS APP CENTER FLEET...

  • Page 3
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION OVERVIEW Message from the CEO Key facts and figures TomTom's activities at a glance Strategic priorities 2014 Financial highlights TomTom Maps TomTom Traffic ...

  • Page 4
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION OVERVIEW Message from the CEO Key facts and figures TomTom's activities at a glance Strategic priorities 2014 Financial highlights TomTom Maps TomTom Traffic ...

  • Page 5
    ... our customer base globally and announced a number of strategic deals that enable us to offer cloud-based navigation and location services, a pedestrian-friendly map layer and an indoor mapping offering. Our Telematics business performed strongly in 2014. We saw accelerated growth in the WEBFLEET...

  • Page 6
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION KEY FACTS AND FIGURES Key facts and figures cumulative for the period since the introduction of products and technologies up to the end of 2014, unless ...

  • Page 7
    ...design and develop innovative products that make it easy for people to keep moving towards their goals. Best known for being a global leader in navigation and mapping products, TomTom also creates GPS sport watches, as well as state-of-the-art fleet management solutions and industry-leading location...

  • Page 8
    ... and offers information security certified to ISO 27001 standards. Telematics products enable businesses to improve vehicle performance, save fuel, support drivers, increase overall fleet efficiency, and contribute to environmentally responsible logistics operations. ANNUAL REPORT AND ACCOUNTS 2014...

  • Page 9
    ...markets. We believe that our new map-making engine, together with our traffic and navigation software, will enable TomTom to pursue further growth opportunities with existing and new customers in the area of Highly Automated Driving. The underlying industry dynamics for our fleet management business...

  • Page 10
    ... to see the development of map use cases in the area of Highly Automated Driving, where connected cars will be equipped with real-time maps that are used with sensors to navigate without human input. global map sources anonymous GPS measurements per day driven by our mobile mapping vans per year...

  • Page 11
    ... map updates, enabling near real-time maps. Our new transactional map-making engine enables a change to pass through our closed loop process end-to-end, be quality assured in real-time, and end up in the product in a matter of days, hours and eventually minutes, fulfilling a key requirement...

  • Page 12
    ... road networks enabling to plan smart traffic solutions. TomTom Traffic platform To achieve the quality and road coverage of TomTom Traffic, we use a wide range of GPS probe data from fleets, PNDs, smartphones, in-dash system and other data sources to generate precise real-time traffic information...

  • Page 13
    ... for end users. At TomTom, we believe many different applications will be developed around navigation in the future. Our navigation engine TomTom is an established global leader in navigation; innovating and helping to shape how people drive. All our navigation systems are designed with the driver...

  • Page 14
    ... SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION MANAGEMENT BOARD REPORT TomTom Management Board Business and financial review by business unit Consumer Automotive Licensing Telematics Group financial review Human resources Corporate social responsibility Business risks...

  • Page 15
    ...MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION TomTom Management Board HAROLD GODDIJN (54) / Chief Executive Officer Nationality Year of first appointment Current term of office Education and former positions Dutch 2001 2013...

  • Page 16
    ... view, traffic option and screen size. With the launch of TomTom Bridge, we expanded our Consumer product offering to the B2B market. TomTom Bridge is a programmable driver terminal that combines our navigation technology with customised applications, to help businesses manage their vehicle fleets...

  • Page 17
    ... drive business, our aim is to unlock the daily relevance of a TomTom navigation device. We will capitalise on the strength of our traffic information and routing software to help millions of commuters find the fastest way to work and home. We will also focus on new market opportunities in different...

  • Page 18
    ... system to Daimler in 2014. This in-dash navigation product, developed in partnership with Renault, will be available on the new Smart ForTwo and ForFour lines. It has a 7'' capacitive touchscreen and features TomTom maps, navigation software and real-time traffic service. Our map-making technology...

  • Page 19
    ... earlier secured orders will support growth in our Automotive business from 2016 onwards. 3 Change percentages are based on non-rounded figures. Reporting structure for the Automotive business unit was reclassified in 2014. The hardware component of previously developed in-dash hardware sales to...

  • Page 20
    ... enables mobile device customers and web service providers to offer online mapping and navigation applications that do not require an offline map. The new service is also well-suited for products in the emerging wearables category. We extended our partnership with AOL's MapQuest, giving its users...

  • Page 21
    ... connected devices. LINK 200 + WEBFLEET Lite subscription In 2014, we launched the LINK 200 tracking box to provide an entry-level track and trace product that can help small businesses take advantage of connected car technology. The device plugs directly into a vehicle's on-board diagnostic system...

  • Page 22
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Financial review Key figures overview (â,¬ in millions,unless stated otherwise) Hardware revenue Subscription revenue Total revenue EBITDA EBITDA margin (%) ...

  • Page 23
    ...and development activities in the Netherlands. The reported ETR for the year was -54.9% compared to 16.7% in 2013. 2 3 4 5 Segment revenue and operating expenses reflect TomTom's new reporting structure as announced on 28 March 2014. 2013 comparative figures have been adjusted accordingly. Change...

  • Page 24
    ... the leaders of our Shared Services Units to support the business. Members of the IT, Finance, Legal and Human Resources teams have followed this programme. During 2014, we launched a Sales training and development programme for non-sales employees, with participants from the Engineering, Product...

  • Page 25
    ... different customer requirements. In 2014, we completed facility risk assessments for 100% of our tier 1 suppliers using EICC-developed tools. This includes electronics assembly suppliers for the PND, in-dash navigation systems and sports products. These suppliers account for almost 85% of TomTom...

  • Page 26
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION BUSINESS RISKS TomTom can be adversely affected by a variety of business risks and economic developments. A structured risk management process helps ...

  • Page 27
    ...enable us to meet the needs of existing customers, bring out new products and expand into new markets. If we are unable to invest sufficiently to compete with other global map providers in terms of both the quality and coverage and to modernise our map delivery platforms, our business, our financial...

  • Page 28
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION We have business continuity and disaster recovery planning in place for certain systems and various eventualities. However, we are unable to plan for every ...

  • Page 29
    ... with IFRS. The Management Board believes, based on the activities performed in 2014 and in accordance with best practice provision II.1.5 of the Code, that the risk management and control systems with regard to the financial reporting risks have functioned effectively in 2014, and that the...

  • Page 30
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION CORPORATE GOVERNANCE Introduction Deviations from the Corporate Governance Code Legal structure of the company Management Board Supervisory Board General ...

  • Page 31
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION INTRODUCTION TomTom is committed to being transparent and accountable in the way we do business. Our corporate governance structure supports and contributes ...

  • Page 32
    ... respectively in 2014 as further set out in the Deviations from the Corporate Governance Code section of this report. For further information about the remuneration of the members of the Management Board, reference is made to the Remuneration Report included in the Supervisory Board Report, as well...

  • Page 33
    ... notice via the company's corporate website: corporate.tomtom.com/agm.cfm. The compilation of the annual report is a recurring agenda item, as are the adoption of the annual accounts, the release from liability of the members of the Management Board and Supervisory Board and the execution of the...

  • Page 34
    ... shares for the purpose of executing the TomTom Employee Stock Option Plan and the Management Board Stock Option Plan. It was granted for a period starting from the 2014 General Meeting and ending with the General Meeting to be held in 2015. Repurchase by the company of its own shares The 2014...

  • Page 35
    ... is applicable to TomTom. The main characteristics of the company's internal risk management measures and control systems connected to its financial reporting process are described in the In Control and Responsibility Statement section of this annual report. ARTICLE 10 OF THE EU TAKEOVER DIRECTIVE...

  • Page 36
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION SUPERVISORY BOARD REPORT TomTom Supervisory Board Introduction Composition Supervisory Board meetings Supervisory Board activities Self-assessment ...

  • Page 37
    ... MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION TomTom Supervisory Board PETER WAKKIE (66) / Chairman Nationality Date of first appointment Current term of office Former positions Current positions Dutch 28 April 2009 2013...

  • Page 38
    ... OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION TOINE VAN LAACK (51) Nationality Date of first appointment Current term of office Former positions Current positions Committees Dutch 23 April 2013 2013 - 2017 Member...

  • Page 39
    ... Supervisory Board. SUPERVISORY BOARD ACTIVITIES To facilitate open and productive discussions, senior management provided the Supervisory Board with comprehensive quarterly reports that outline the developments, achievements, challenges and opportunities in each business unit of the company before...

  • Page 40
    ... such as share price developments and financial analysts' research and communication with shareholders and investors. The press releases regarding the full year and halfyear results, and the quarterly trading updates were reviewed and approved. A proposal from the Management Board in relation to the...

  • Page 41
    ...levels of TomTom Management Board members with median market practice in a measured way. The base salary levels are reviewed annually, taking into account developments in the pay market and the level of position as graded within the company. Based on the outcome of the benchmarking performed in 2013...

  • Page 42
    ... car allowances. They also benefit from directors' and officers' liability insurance coverage. These benefits are in line with market practice. The company does not provide loans to members of the Management Board. Outlook 2015 The Supervisory Board does not intend to change the Remuneration Policy...

  • Page 43
    ... the business: • The integrity of the company's quarterly financial results and related press releases; • The integrity of the annual report, including the company's accounting and financial reporting policies and processes; • A more in-depth review of specific accounting topics was performed...

  • Page 44
    ...four Audit Committee meetings to address agenda items relating to the external financial reporting and related press releases. The Audit Committee and the external auditor also met separately, without the Management Board present, in order to facilitate free and open discussions. The Audit Committee...

  • Page 45
    ...Report for 2014 is available at the company's offices on request and on the company's website: corporate.tomtom.com/annuals.cfm. The Supervisory Board would like to thank all employees and the Management Board members for their continued dedication and commitment in 2014. Amsterdam, 12 February 2015...

  • Page 46
    ... financial statements COMPANY FINANCIAL STATEMENTS OF TOMTOM NV Company statement of income of TomTom NV Company balance sheet of TomTom NV Notes to the company financial statements OTHER INFORMATION Independent Auditor's Report 47 48 49 50 51 52 81 82 83 85 86 ANNUAL REPORT AND ACCOUNTS 2014...

  • Page 47
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Consolidated statement of income for the year ended 31 December (â,¬ in thousands) REVENUE Cost of sales GROSS RESULT Research and development expenses ...

  • Page 48
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Consolidated statement of comprehensive income for the year ended 31 December (â,¬ in thousands) NET RESULT OTHER COMPREHENSIVE INCOME: Items that will not be...

  • Page 49
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Consolidated balance sheet as at 31 December (â,¬ in thousands) Non-current assets Goodwill Other intangible assets Property, plant and equipment Investments ...

  • Page 50
    ... MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Consolidated statement of cash flows for the year ended 31 December (â,¬ in thousands) Operating result Financial (losses) Depreciation and amortisation Equity-settled stock...

  • Page 51
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Consolidated statement of changes in equity (â,¬ in thousands) Notes Share capital 44,379 Share premium 975,260 Other1 reserves 159,011 Accumulated deficit -...

  • Page 52
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Notes to the consolidated financial statements TomTom is committed to continuously develop its financial reporting and, as part of this development, the order...

  • Page 53
    .... The activities of the company include the development and sale of navigation and location-based solutions, which include among others: PNDs, sport watches, maps, traffic, navigation software and fleet management services. The consolidated financial statements comprise the company and its...

  • Page 54
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Group companies For consolidation purposes, the assets and liabilities of entities that have a functional currency other than the group's presentation ...

  • Page 55
    ... Tier 1 suppliers worldwide. Licensing generates revenue by licensing digital maps, traffic, navigation software and other content to a wide range of customers, and Telematics provides fleet management services and related solutions to fleet owners including sale and/or rental of hardware products...

  • Page 56
    ... the relevant arrangements with the customers. Sale of services Services revenue is generated from the sale of traffic and map update services, content sales, connected navigation and fleet management services to commercial fleets. The revenue relating to the service element is recognised over the...

  • Page 57
    ... expenses include costs of secondary benefits such as health insurance, vehicle lease costs, sales commissions and bonuses. The average number of employees in 2014 was 3,888 (2013: 3,491) spread across the following functional areas: 2014 Research and development Marketing Sales, general and...

  • Page 58
    ... at the end of the reporting period. The defined benefit obligation is calculated annually using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds...

  • Page 59
    ... stock price volatility. Volatility is determined using industry benchmarking for listed peer group companies, as well as the historic volatility of the TomTom NV stock. The group's employee stock options have characteristics that are significantly different from those of traded options, and changes...

  • Page 60
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION compensation expenses charged to the stock compensation reserve for this plan amounted to â,¬228 thousand (2013: â,¬245 thousand). As this plan is not ...

  • Page 61
    ...MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Accounting policy Current and deferred taxes are recognised as an expense or income in the profit and loss account, except when they relate to items credited or debited directly...

  • Page 62
    ... The ability to use or sell the intangible asset; • How the intangible asset will generate probable future economic benefits; • The availability of adequate resources to complete the project; and • The cost of developing the asset can be measured reliably. ANNUAL REPORT AND ACCOUNTS 2014 / 62

  • Page 63
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Internally generated databases are capitalised until a certain level of map coverage is reached and ongoing activities focus on maintenance. At this point, ...

  • Page 64
    ... identified according to the core business activities as monitored by management for the purpose of impairment testing. The allocation is made to those operating segments that are expected to benefit from the business combination in which the goodwill arose. ANNUAL REPORT AND ACCOUNTS 2014 / 64

  • Page 65
    ... MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION A segment-level summary of the goodwill allocation for the group's segments in 2014 and 2013 is presented below: (â,¬ in thousands) Consumer Automotive Licensing Telematics...

  • Page 66
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION The sensitivity test for the Licensing segment showed that the level of headroom available at year-end 2014 (headroom: â,¬104 million, 2013: â,¬64 million) ...

  • Page 67
    ... Tom Information Technology Co. Ltd. (Beijing Golden Tom) and WayTag (Pty) Ltd. (WayTag). Cyient provides content development and support services while Beijing Golden Tom provides support in licensing TomTom map and traffic content in the Chinese market. WayTag is a South Africa-based company that...

  • Page 68
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION SECTION 4 WORKING CAPITAL The notes in this section specify items that form part of group's working capital. Disclosure on cash and cash equivalents is ...

  • Page 69
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Trade accounts receivable include amounts denominated in the following major currencies: (â,¬ in thousands) EUR GBP USD Other TRADE RECEIVABLES (NET) 2014 71,...

  • Page 70
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION 22. Trade payables All trade payable balances have a contractual maturity of less than six months and the carrying amount approximates its fair value. 23. ...

  • Page 71
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION SECTION 5 FINANCING, FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS This section includes notes related to financing items such as equity and borrowings ...

  • Page 72
    ... of subsidiaries Dividends paid Change in share of non-controlling interests Currency translation differences BALANCE AS AT 31 DECEMBER 2014 2,115 106 -177 0 29 2,073 2013 2,642 524 -377 18 -692 2,115 The main part of the balance of the non-controlling interest relates to TomTom Africa (Pty) Ltd...

  • Page 73
    ...MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION 27. Borrowings (â,¬ in thousands) Non-current Current TOTAL 2014 48,925 0 48,925 2013 99,348 74,089 173,437 On 22 December 2014, the group signed a new credit facility agreement...

  • Page 74
    ... and money market fund investments. All transactions and counterparty risk limits are governed by Corporate Treasury Policy. Capital risk management The group's financing policy aims to maintain a capital structure that enables the group to achieve its strategic objectives and daily operational...

  • Page 75
    ... using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy should have the following levels: • Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities; ANNUAL REPORT AND ACCOUNTS 2014...

  • Page 76
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION • Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly (for example, derived from prices);...

  • Page 77
    ... provision The group generally offers warranties for its products. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as evaluating recent trends that might suggest that past cost information may differ from future claims...

  • Page 78
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Other provisions Other provisions include an amount of â,¬8.4 million (2013: â,¬6.8 million) related to the defined benefit pension plan in Germany as ...

  • Page 79
    ... either stock options or shares to its Supervisory Board members and the company does not provide loans to them. Overview of salaries, performance-related bonuses and other emoluments of the Management Board The remuneration of the Management Board members comprises of the direct remuneration paid...

  • Page 80
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Board member Year of grant 2013 2014 Outstanding 1 Jan 2014 155,000 1,984,500 Granted in 2014 150,000 610,000 Expired in 2014 Forfeited in 2014 ...

  • Page 81
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Company statement of income of TomTom NV for the year ended 31 December (â,¬ in thousands) Result of subsidiaries after taxation Other income / (expenses) ...

  • Page 82
    ...MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Company balance sheet of TomTom NV as at 31 December (before proposed appropriation of result) (â,¬ in thousands) Non-current assets Investments in subsidiaries TOTAL NON-CURRENT...

  • Page 83
    ... MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Notes to the company financial statements A. Presentation of financial statements and recognition and measurement principles The description of the activities of TomTom NV...

  • Page 84
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Legal reserves Legal reserves are the non-distributable reserves that are recorded for an amount equal to the restricted reserves of the company's ...

  • Page 85
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Other information Statutory provision with respect to appropriation of results According to the company's Articles of Association, the company's result is ...

  • Page 86
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Independent Auditor's Report To: the Shareholders and Supervisory Board of TomTom NV Report on the audit of the financial statements 2014 Our Opinion We have...

  • Page 87
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION By performing the procedures mentioned above at group entities, together with additional procedures at group level, we have been able to obtain sufficient and...

  • Page 88
    ... the information as required Part 9 of Book 2 of the Dutch Civil Code has been annexed. We report that the management board report, to the extent we can assess, is consistent with the financial statements. Engagement We were appointed by the General Meeting of TomTom NV on 1 May 2014 to carry out...

  • Page 89
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION SUPPLEMENTARY INFORMATION Shareholder information Key figures overview Quarterly summary income statement 2014 Quarterly summary statement of cash flows 2014 ...

  • Page 90
    ...in the Corporate Governance section. Dividend policy TomTom has no current plans to distribute dividends. The company gives priority to increasing technology investments to strengthen its capabilities and competitive position and to pursuing acquisitions in its fleet management business (Telematics...

  • Page 91
    ... share price AMX - indexed value Visiting address De Ruijterkade 154 1011 AC Amsterdam The Netherlands Source: NYSE Euronext Website The company's Investor Relations website corporate.tomtom.com/ investor.cfm contains up-to-date financial information about TomTom. ANNUAL REPORT AND ACCOUNTS 2014...

  • Page 92
    ... share adjusted for acquisition-related amortisation, goodwill impairment and restructuring charges on a post-tax basis, and an â,¬80 million one-off tax gain in 2012. Calculated based on the sales/cost of sales and the number of days in the last three months of the year. ANNUAL REPORT AND ACCOUNTS...

  • Page 93
    ... MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Quarterly summary income statement 2014 (â,¬ in thousands, unless stated otherwise; quarterly data unaudited) REVENUE Cost of sales GROSS RESULT Research and development...

  • Page 94
    CONTENTS OVERVIEW MANAGEMENT BOARD REPORT CORPORATE GOVERNANCE SUPERVISORY BOARD REPORT FINANCIAL STATEMENTS SUPPLEMENTARY INFORMATION Quarterly summary statement of cash flows 2014 (â,¬ in thousands, quarterly data unaudited) Operating result Financial gains / (losses) Depreciation and ...

  • Page 95
    ... Driver Assistance Systems the Netherlands Authority for Financial Markets the Amsterdam Mid-Cap Index Applications Average Revenue Per User Average Selling Price Brazil, Russia, India, China and South Africa Connected Navigation System the Dutch Corporate Governance Code TomTom NV Corporate Social...

  • Page 96
    TomTom NV De Ruijterkade 154 1011 AC Amsterdam The Netherlands Tel: +31 (0)20 757 5000 www.tomtom.com