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SECTION 2 RESULTS OF THE YEAR
This section presents the notes related to items in the income statement (except for financial income and expenses) and disclosure on
operating segments. If applicable, relevant notes on balance sheet items related to the respective items in the income statement are presented
in this section. A detailed description of the results for the year is provided in the Business and financial review by business unit and Group
financial review sections in the Management Board report.
4. Segment reporting and revenue
The operating segments are identified and reported on the basis of internal reports about components of the group that are regularly reviewed
by the Management Board to assess the performance of the segments.
As of 1 January 2014, the internal management reporting, which is used as the basis for segment reporting, was changed. The hardware
component of sales to automotive customers is reported in Consumer instead of in Automotive in order to clearly identify automotive revenue
which comes from content, software and services. Additionally, due to client portfolio redistribution, a minor amount of revenue was moved
from Licensing to Automotive. Accordingly, the reported segment information and its comparative figures have been adjusted to reflect these
changes, and are not necessarily consistent with the numbers reported previously.
The group's internal management reporting is structured primarily on the basis of the market segments in which the four operating segments
- Consumer, Automotive, Licensing and Telematics - operate. Consumer generates revenue mainly from the sale of PNDs, sport watches, maps
and related navigation products and services. The Automotive business unit develops and sells navigation software components, services and
content, such as maps, traffic and navigation software, to car manufacturers and 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 associated with the services.
Management assesses the performance of segments based on the measures of revenue and earnings before interest and taxes (EBIT), whereby
the EBIT measure includes allocations of expenses from supporting functions within the group. Such allocations have been determined based
on relevant measures that reflect the level of benefits of these functions to each of the operating segments. As the four operating segments
serve only external customers, there is no inter-segment revenue. The effects of non-recurring items such as impairment are excluded from
management's measurement basis. Interest income and expenses and tax are not allocated to the segments. There is no measure of segment
(non-current) assets and/or liabilities provided to the Management Board.
(€ in thousands) 2014 20131
Revenue
Consumer 619,099 651,845
Automotive 109,409 110,932
Licensing 111,575 116,047
Telematics 110,209 84,630
TOTAL 950,292 963,454
1The reported 2013 Revenue for Consumer, Automotive and Licensing was respectively € 567.0 million, €192.4 million and €119.4 million.
The EBIT of each segment is as follows:
(€ in thousands) 2014 20131
EBIT
Consumer 36,168 33,223
Automotive – 28,685 – 11,755
Licensing – 11,360 – 10,910
Telematics 33,801 26,003
TOTAL 29,924 36,561
1The reported 2013 EBIT for Consumer, Automotive, Licensing and Telematics was respectively €25.7 million, -€0.6 million, -€13.3 million and € 24.8 million.
The EBITDA of each segment is as follows:
(€ in thousands) 2014 20131
EBITDA
Consumer 55,349 56,675
Automotive 20,093 37,864
Licensing 30,091 31,098
Telematics 39,102 28,343
TOTAL 144,635 153,980
1The reported 2013 EBITDA for Consumer, Automotive, Licensing and Telematics was respectively €50.6 million, €41.6 million, €34.3 million and € 27.1 million.
CONTENTS OVERVIEW MANAGEMENT
BOARD REPORT CORPORATE
GOVERNANCE SUPERVISORY
BOARD REPORT FINANCIAL
STATEMENTS SUPPLEMENTARY
INFORMATION
ANNUAL REPORT AND ACCOUNTS 2014 / 55