TomTom 2015 Annual Report Download - page 27

MANAGEMENT BOARD REPORT
TOMTOM / ANNUAL REPORT AND ACCOUNTS 2015 / 26
being able to edit it. The camera works with a companion app,
making it possible to create and share videos in a matter of
minutes instead of hours. With the Bandit, which automatically
selects movie highlights with the use of multiple built-in
sensors, we have solved the biggest frustration people have with
action cameras today: the time and effort it takes to edit and
share their movies.
Following the successful innovation of heart-rate monitoring on
the wrist in 2014, we introduced music on the wrist at the end of
the third quarter in 2015. The next generation TomTom GPS sport
watches with integrated music player, make it easier for fitness
enthusiasts to boost their training. Now users no longer have to
strap a phone to their arm or worry about wires getting in the
way during their workout. The sport watch streams music to a
wide range of Bluetooth® headphones and Playlists can be easily
downloaded to the TomTom GPS sport watch.
The unique combination of an integrated music player, built-in
heart-rate monitor, 24/7 activity tracking, multi-sport
functionality and GPS, makes it easier than ever for people to get
more from their workout, and improve their overall fitness level.
FINANCIAL REVIEW
Total Consumer revenue for the year was €624 million, an
increase of 1% compared with last year (2014: €619 million). The
year on year growth was mainly driven by a strong growth in our
Sports category and a modestly higher Automotive hardware
revenue, partially offset by lower PND revenue.
The biggest revenue contributor remains the PND category,
including the related traffic and maps revenue. The European
PND market volumes declined by 8% in 2015 (2014: -11%). The
North American PND market declined by 22% in 2015 (2014: -
23%).
Our PND business developed better than the market. We
maintained our leading market position in Europe, improved
our market share in North America and we strengthened our
average selling price (ASP), which resulted in value share growth
and a modest decline of our PND revenue in 2015.
Sports revenue amounted to €69 million in 2015, an increase of
40% compared with last year (2014: €50 million), fuelled by the
launch of our new range GPS sport watches and our action
camera.
(€ in millions, unless stated otherwise) 2015 2014 y.o.y.
change1
Consumer products 551.2 548.4 1%
Automotive hardware 72.4 70.7 2%
Total Revenue 623.6 619.1 1%
EBITDA 14.1 55.3 -75%
EBITDA margin (%) 2% 9%
EBIT 2.6 36.2 -93%
EBIT margin (%) 0% 6%
KEY PND MARKET DATA
Market size Europe (# units sold in
millions)26.8 7.4 -8%
TomTom market share (%) 52% 52%
Market size North America (# units sold
in millions) 3.2 4.0 -22%
TomTom market share (%) 17% 15%
1. Change percentages are based on non-rounded figures.
2. Europe refers to EMEA17: AT, CH, DE, BE, NL, FR, IT, GB, ES, PT, TR, CZ, PL, DK, SE,
FI, ZA.
Consumer generated EBITDA of €14 million in 2015 (2014: €55
million). The EBIT for the year was €3 million compared with
€36 million last year. This translates into a break-even EBIT
margin in 2015, compared with 6% in 2014. Consumer
operating result in 2015 was significantly negatively impacted by
the weakening of the euro against the US dollar and additional
investments in marketing to support new product introductions,
partly offset by a gain following a legal settlement.
BUSINESS OUTLOOK
In 2016, we will bring new features to the Mydrive app
and to our GO range of products to improve the
overall user experience and drive preference for
replacement buyers in the market.
We will continue expanding our range of products in
the Sports and Fitness category and establish
ourselves as a credible sports and fitness consumer
electronics brand.