TomTom reports fourth quarter and full year 2014 results
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TomTom reports fourth quarter and full year 2014 results

AMSTERDAM — (BUSINESS WIRE) — February 11, 2015Financial summary Q4 '14

Financial summary FY '14

Operational summary Q4 '14

Outlook 2015

Key figures

                         
(€ in millions)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Consumer   172.1   186.4   -8%   619.1   651.8   -5%
Automotive   23.6   25.8   -8%   109.4   110.9   -1%
Licensing   31.6   31.2   1%   111.6   116.0   -4%
Telematics   31.1   24.1   29%   110.2   84.6   30%

REVENUE3

  258.4   267.6   -3%   950.3   963.5   -1%
                         
GROSS RESULT   132.9   143.4   -7%   523.3   521.2   0.4%
Gross margin   51%   54%       55%   54%    
                         
EBITDA   28.2   33.3   -15%   135.8   143.0   -5%
EBITDA margin   11%   12%       14%   15%    
                         
OPERATING RESULT (EBIT)   1.5   4.2   -64%   21.1   25.5   -17%

%

EBIT margin   1%   2%       2%   3%    
                         
NET RESULT   0.5   3.2   -85%   22.7   20.1   13%

ADJUSTED NET RESULT4

  9.7   13.6   -29%   60.3   58.0   4%
                         
EPS, € diluted   0.00   0.01   -86%   0.10   0.09   14%
Adjusted EPS1, € fully diluted   0.04   0.06   -30%   0.27   0.26   3%

Change percentages are based on non-rounded figures.

1 Earnings per fully diluted share count adjusted for acquisition-related amortisation & gain on a post-tax basis.
2 €180 million excludes a €80 million one-off tax gain received from the Dutch tax authorities.
3 Segment revenue breakdown reflects TomTom’s new reporting structure as announced on 28 March 2014.
4 Net result adjusted for acquisition-related amortisation & gain on a post-tax basis.

TomTom's Chief Executive Officer, Harold Goddijn

“2014 was a good year for TomTom. We made substantial progress in developing our core technologies across the group, achieving important milestones and positioning TomTom for growth.

“With the introduction of our own branded GPS sport watches we made a successful step into the sport market. We will continue to bring innovative new Consumer products to the market. Our Automotive bookings exceeded €220 million this year, which together with orders secured earlier will deliver growth in our Automotive business from 2016 onwards. Our Telematics business continued to grow strongly, fuelled by a combination of organic growth and acquisitions.

“The progress we made over the past two years gives us confidence for the future and we are committed to deliver top line growth in 2015.

“We expect to have fully replaced our map-making system with a transaction-based platform that will enable near real-time maps, in the second half of 2015. With this technological innovation, TomTom is well positioned to address the need for accurate and up-to-date maps, for navigation applications and driver assistance applications, including Highly Automated Driving.”

Outlook 2015

In 2015, we plan for revenue growth and expect revenue of around €1 billion. Adjusted EPS1 is expected of around €0.20, which is lower than 2014 because of adverse currency movements and the one-off tax settlement of €0.04 that was reported in the first quarter of last year.

In 2015, we will maintain the level of investment (both CAPEX and OPEX) in our core technologies. In particular we are investing in advanced content and software for the automotive industry (e.g. to enable Highly Automated Driving) and in our new map-making platform. We expect these investments to lead in the mid-term to higher Automotive revenue. The 2014 bookings of more than €220 million provides support that we are on the right track.

Financial and business review3

Group revenue

We generated revenue of €258 million in the fourth quarter, a reduction of 3% compared to €268 million in Q4 '13. On a full year basis, our revenue was €950 million (FY '13: €963 million).

The year on year decline for 2014 was due to modestly lower revenue in Consumer and Licensing partly offset by strong growth in Telematics, whilst Automotive revenue was relatively flat.

Consumer

                         
(€ in millions, unless stated otherwise)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Consumer products   155.7   165.4   -6%   548.4   567.0   -3%
Automotive hardware   16.4   21.0   -22%   70.7   84.8   -17%
Total Consumer revenue   172.1   186.4   -8%   619.1   651.8   -5%
                         
Consumer segment EBITDA               55.3   56.7   -2%
EBITDA margin (%)               9%   9%    
Consumer segment EBIT               36.2   33.2   9%
EBIT margin (%)               6%   5%    
                         
Key PND market data                        

Europe5

                       
Market size (# units sold in millions)   2.1   2.2   -6%   7.7   8.4   -9%
TomTom market share   52%   53%       52%   51%    

North America

                       
Market size (# units sold in millions)   1.3   1.8   -28%   4.0   5.2   -23%
TomTom market share   13%   15%       15%   17%    

Change percentages are based on non-rounded figures.

Total consumer revenue for the quarter was €172 million, a decline of 8% compared to the same quarter last year (Q4 '13: €186 million). Total Consumer products revenue amounted to €156 million in the quarter, 6% lower than in the same quarter last year (Q4 '13: €165 million). On a full year basis, Consumer products revenue declined by 3% and amounted to €548 million (FY '13: €567 million). This year on year decline was driven by lower PND revenue partly offset by strong growth in sport revenue.

The European PND market rate of decline continued to slow in the quarter, whilst the North American market declined faster. Our PND business developed in line with the market. We kept our market share and ASP strong in Europe partially offset by lower unit sales in North America.

We made good progress with our sport business. Our full year sport revenue amounted to €50 million in 2014, an increase of 73% compared to last year (FY '13: €29 million) and we achieved our milestone of 500,000 GPS sport watches shipped in 2014.

Automotive

                         
(€ in millions, unless stated otherwise)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Automotive revenue   23.6   25.8   -8%   109.4   110.9   -1%
                         
Automotive segment EBITDA               20.1   37.9   -47%
EBITDA margin (%)               18%   34%    
Automotive segment EBIT               -28.7   -11.8   n.m.
EBIT margin (%)               -26%   -11%    

5 Europe refers to EMEA17: AT, CH, DE, BE, NL, FR, IT, GB, ES, PT, TR, CZ, PL, DK, SE, FI, ZA.

Change percentages are based on non-rounded figures.

Our Automotive business generated revenue of €24 million in the quarter, compared to €26 million in Q4 '13. This decline is mainly due to phasing out of certain contracts. On a full year basis, our automotive revenue reached €109 million, 1% lower compared to last year (FY '13: €111 million). Recent contract wins in Automotive include lifetime maps and traffic components. As a result, the IFRS recognition of our Automotive revenue includes deferral elements as of 2014, which impacts the year on year comparison. A breakdown of deferred revenue is provided in the Balance Sheet section.

We extended our longstanding partnership with Fiat to deliver LIVE services and connected navigation in the Uconnect™ infotainment systems in the new Fiat 500X6. In January 2015, we announced an agreement to deliver maps to Volkswagen in North America. Volkswagen will launch in-dash navigation systems with TomTom maps in its new multimedia system in Q2 2015, which will be introduced across multiple car lines, including the Jetta, Passat and Beetle.

We continued our commitment to expanding our map and traffic coverage globally. Currently our navigable map covers 44 million kilometres of roads in 126 countries and we expanded our traffic service to South East Asia, the Middle East and Latin America in the quarter. Now, over 40 countries around the world have access to TomTom’s historic, real-time and predictive traffic information.

Licensing

                         
(€ in millions, unless stated otherwise)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Licensing revenue   31.6   31.2   1%   111.6   116.0   -4%
                         
Licensing segment EBITDA               30.1   31.1   -3%
EBITDA margin (%)               27%   27%    
Licensing segment EBIT               -11.4   -10.9   n.m.
EBIT margin (%)               -10%   -9%    

Change percentages are based on non-rounded figures.

Our Licensing revenue in Q4 '14 was €32 million, 1% higher compared to the same quarter last year (Q4 '13: €31 million). On a full year basis, Licensing reported total revenue of €112 million, a 4% decline compared to €116 million in 2013. This decline mainly resulted from the phasing out of a major contract in the first half of 2013.

In the fourth quarter, we announced a multi-year deal with Acer to bring TomTom turn-by-turn navigation technology to new Acer smartphones with the launch of a new navigation application called “AcerNAV”. The app enables users to navigate anywhere in the world, without extra roaming charges, with the ability to download any TomTom map for free. We also announced a partnership with Intel and Opening Ceremony to power the MICA, “My Intelligent Communication Accessory” bracelets with location-based services and real-time location information. The real-time location feature provides real-time location information such as estimated time of arrivals to precise locations.

6 Sold in Europe beginning in 2015.

Telematics

                         
(€ in millions, unless stated otherwise)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Hardware revenue   9.7   8.4   15%   34.6   28.3   22%
Subscription revenue   21.4   15.7   36%   75.6   56.3   34%
Total Telematics revenue   31.1   24.1   29%   110.2   84.6   30%
                         
Telematics segment EBITDA               39.1   28.3   38%
EBITDA margin (%)               35%   33%    
Telematics segment EBIT               33.8   26.0   30%
EBIT margin (%)               31%   31%    
                         
Monthly WEBFLEET ARPU (€)   16.3   16.2   1%   16.2   16.7   -3%
WEBFLEET subscriber installed base (#)               464,000   330,000   41%

Change percentages are based on non-rounded figures.

Our fleet management business saw another quarter of strong growth, and reported revenue of €31 million in Q4 '14, a 29% increase compared to €24 million in Q4 '13. This increase was driven by the strong growth in the WEBFLEET subscriber base and by higher hardware revenue, driven by the launch of our new PRO range driver terminals earlier this year. The recurring SaaS revenue amounted €21 million for the quarter, 36% higher compared to the same quarter last year. Revenue for 2014 was €110 million, which represents a 30% growth year on year (FY '13: €85 million).

In the quarter, Telematics completed the acquisition of Fleetlogic, a leading fleet management solutions provider in the Netherlands, which has around 27,000 vehicles under subscription. With this acquisition, TomTom Telematics further strengthened its leading market position in Europe. At the end of the year, Telematics reported 34,000 customers, the largest fleet management systems customer base in the world, and an installed base of 464,000 active subscribers, a 41% increase from 330,000 at the start of 2014.

Hardware and Content & Services revenue split3

Hardware revenue for the quarter was €156 million compared to €169 million in Q4 '13. Content & Services revenue in the quarter was €102 million, 3% higher compared to €99 million in Q4 '13, mainly due to growing Telematics subscription revenue partially offset by lower Automotive revenue. As a percentage of revenue, Content & Services revenue increased to 39% from 37% in Q4 '13.

On a full year basis, revenue from Content & Services was €407 million (FY '13: €405 million) and accounted for 43% of total revenue (FY '13: 42%).

Geographical revenue split

                         
(€ in millions, unless stated otherwise)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Europe5   194.7   192.7   1%   718.8   710.1   1%
North America   45.6   54.9   -17%   163.5   177.7   -8%
Rest of the world   18.0   20.0   -10%   68.1   75.6   -10%
Total revenue   258.4   267.6   -3%   950.3   963.5   -1%

Change percentages are based on non-rounded figures

From a regional perspective, 75% of our revenue in the fourth quarter was generated in Europe3 (Q4 '13: 72%), 18% in North America (Q4 '13: 21%) and the remaining 7% in the rest of the world (Q4 '13: 7%). On a full year basis, 76% of our revenue was generated in Europe3 (FY '13: 74%), 17% in North America (FY '13: 18%) and the remaining 7% in the rest of the world (FY '13: 8%).

Gross margin

The gross margin for the quarter was 51%, which is 3 percentage points lower compared to 54% in Q4 '13. The year on year decrease was mainly due to the strengthening of the US dollar against the euro. On a full year basis, we reported a gross margin of 55% in 2014 (FY '13: 54%). The improved margin mainly came from a shift in product mix towards higher margin products.

Operating expenses

Total operating expenses for the quarter were €131 million, which is €8 million lower compared to the same quarter last year (Q4 '13: €139 million). The lower operating expenses were mainly driven by lower marketing expenses due to different timing in advertising campaigns versus last year.

On a full year basis, total operating expenses amounted to €502 million compared to €496 million in 2013, explained by higher R&D and marketing costs partially offset by lower SG&A costs due to lower variable personnel expenses. Our operating result for 2014 was limited mainly due to investments in new product and technologies, which are made in the expectation of a good return in the future.

Total depreciation and amortisation costs amounted to €27 million in the quarter, 8% lower compared to last year (FY '13: €29 million). Acquisition-related amortisation was €12 million in Q4 '14 (Q4 '13: €14 million).

Depreciation and amortisation

                         
(€ in millions)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Depreciation   3.3   3.8   -13%   12.6   17.0   -26%
Amortisation of technology and databases   19.6   22.2   -12%   88.1   81.4   8%
Other amortisation   3.8   3.1   23%   14.0   19.0   -26%
Total depreciation and amortisation   26.7   29.1   -8%   114.7   117.4   -2%
Of which acquisition-related amortisation   12.3   13.8   -11%   50.3   53.9   -7%

Change percentages are based on non-rounded figures

On a full year basis, acquisition-related amortisation amounted to €50 million in 2014, 7% lower compared to last year (FY '13: €54 million). This year on year decline relates to certain map-making tools that have been fully amortised earlier this year.

Financial income and expenses

The net interest charge for the quarter was €1.1 million versus a net interest charge of €0.8 million in Q4 '13. The increase is mainly due to the acceleration of loan amortisation charges as we fully repaid our previous loan facility. The other financial result for the quarter was a loss of €1.6 million (Q4 '13: gain of €0.3 million), which consisted primarily of foreign exchange losses from the revaluation of monetary balance sheet items partially offset by our hedging results.

On a full year basis, the total financial income and expense charge equalled €6.9 million compared to €4.6 million in 2013.

Income tax

The net income tax for the quarter was a gain of €1.6 million versus a net income tax charge of €0.6 million in Q4 '13. Our normalised full year Effective Tax Rate (ETR) for 2014 was 8.5% when adjusted for one-off releases of tax provisions following the finalisation of an overseas tax audit in Q1 '14 and the finalisation of prior period tax returns (2013: 16.7%). This relatively low ETR reflects benefits from the tax incentives which are made available for companies with significant research and development activities in the Netherlands.

Net result

                         
(€ in millions, unless stated otherwise)   Q4 '14   Q4 '13   y.o.y. change   FY '14   FY '13   y.o.y. change
                         
Net result   0.5   3.2   -85%   22.7   20.1   13%
Net result attributed to equity holders   0.5   3.3   -86%   22.5   19.5   15%
Amortisation of acquired intangibles   12.3   13.8   -11%   50.3   53.9   -7%
Acquisition-related gain   0   0   0%   0   -2.5   -100%
Tax effect of adjustments   -3.1   -3.5   -11%   -12.6   -13.0   -3%
Adjusted net result   9.7   13.6   -29%   60.3   58.0   4%
                         
Adjusted EPS, € fully diluted   0.04   0.06   -30%   0.27   0.26   3%

The net result for the quarter was €0.5 million compared to €3.2 million in Q4 '13. The net result adjusted for acquisition-related amortisation & gain on a post-tax basis was €9.7 million compared to €13.6 million in Q4 '13.

Adjusted EPS for the quarter was €0.04 versus €0.06 in Q4 '13. Adjusted EPS for 2014 was €0.27, and includes the one-off tax settlement of €0.04 related to the above-mentioned release of a tax provision in Q1 '14.

Balance sheet

Trade receivables at the end of the quarter equalled €133 million compared to €115 million at the end of Q4 '13 mainly due to higher DSO. Inventory was €47 million, €4 million higher compared to Q4 '13. Cash and cash equivalents decreased from €258 million at the end of Q4 '13 to €153 million at the end of Q4 '14 as we made a full repayment of our previous term loan and at the same time drew down an amount of €50 million from our new credit facility.

The new credit facility comprises of a revolving credit facility of €250 million, which will provide us with the flexibility to manage our operating and investment financing needs. The carrying value of our outstanding borrowings at the end of Q4 '14 was €49 million (Q4 '13: €173 million) net of transaction costs of €1 million.

Current liabilities excluding deferred revenue were €291 million compared to €383 million at the end of Q4 '13. The year on year decrease was mainly driven by the decrease of the short-term borrowings which were €74 million at the end of Q4 '13. Trade payables amounted to €88 million, €6 million higher compared to Q4 '13. Tax and social security liabilities amounted to €18 million compared to €28 million at the end of Q4 '13.

Deferred revenue balance by segment

             
(€ in millions)   31 December 2014   31 December 2013  

y.o.y. change

             
Consumer   104.8   83.9   20.9
Automotive   12.6   6.1   6.5
Licensing   25.6   23.5   2.2
Telematics   2.7   0.4   2.3
Total deferred revenue   145.7   113.8   31.9

Deferred revenue amounted to €146 million at the end of the quarter (Q4 '13: €114 million). The year on year increase mainly related to the increase of deferred revenue from the lifetime maps content and traffic services bundled in our PND ranges.

At 31 December 2014 we had a net cash position of €103 million (Q4 '13: €83 million). Net cash is the sum of the cash and cash equivalents at the end of the period (€153 million) minus the outstanding gross borrowings (€50 million).

Cash flow

Cash flow from operating activities for the quarter was €32 million compared to €51 million in Q4 '13. The year on year decrease was mainly driven by lower results and higher working capital utilisation in Q4 '14. On a full year basis, cash flow from operating activities was €119 million compared to €180 million in 2013 (excluding the €80 million tax refund from the Dutch tax authorities received in 2013).

The cash flow used in investing activities during the quarter increased by €13 million year on year to €34 million. On a full year basis the cash flow used in investing activities was €107 million, an increase of €16 million year on year. The majority of the investments related to our new transactional map-making platform, the navigation engine NavKit, customer specific investments in Automotive and the recent acquisitions in Telematics.

- END -

Consolidated condensed statement of income

                 
(€ in thousands)   Q4 '14 Unaudited   Q4 '13 Unaudited   FY '14 Audited   FY '13 Audited
                 
Revenue   258,399   267,563   950,292   963,454
Cost of sales   125,517   124,126   426,966   442,207
Gross result   132,882   143,437   523,326   521,247
                 
Research and development expenses   45,559   43,655   174,014   168,155
Amortisation of technology and databases   19,578   22,175   88,100   81,436
Marketing expenses   19,768   27,908   69,559   62,796
Selling, general and administrative expenses   46,449   45,466   170,539   183,314
Total operating expenses   131,354   139,204   502,212   495,701
                 
Operating result   1,528   4,233   21,114   25,546
                 
Interest result   -1,118   -800   -3,145   -2,945
Other financial result   -1,581   317   -3,720   -1,619
Result of associates   81   112   374   3,091
Result before tax   -1,090   3,862   14,623   24,073
                 
Income tax gain/(charge)   1,558   -637   8,032   -4,010
Net result   468   3,225   22,655   20,063
                 
Net result attributable to:                
Equity holders of the parent   466   3,255   22,549   19,539
Non-controlling interests   2   -30   106   524
Net result   468   3,225   22,655   20,063
                 
Basic number of shares (in thousands)   223,540   222,061   222,689   221,950
Diluted number of shares (in thousands)   226,428   224,994   225,122   223,307
                 
EPS, € basic   0.00   0.01   0.10   0.09
EPS, € diluted   0.00   0.01   0.10   0.09

Consolidated condensed balance sheet

         
(€ in thousands)   31 December 2014

Audited

  31 December 2013

Audited

         
Goodwill   381,569   381,569
Other intangible assets   800,583   803,635
Property, plant and equipment   30,294   25,804
Deferred tax assets   18,438   9,681
Investments in associates   3,289   2,854
Total non-current assets   1,234,173   1,223,543
         
Inventories   46,575   42,260
Trade receivables   133,266   115,429
Other receivables and prepayments   33,198   38,121
Other financial assets   1,186   376
Cash and cash equivalents   152,949   257,785
Total current assets   367,174   453,971
         
Total assets   1,601,347   1,677,514
         
Share capital   44,713   44,435
Share premium   986,684   977,087
Other reserves   202,289   160,087
Accumulated deficit   -335,163   -329,463
Equity attributable to equity holders of the parent   898,523   852,146
Non-controlling interests   2,073   2,115
Total equity   900,596   854,261
         
Borrowings   48,925   99,348
Deferred tax liability   166,551   171,727
Provisions   48,496   55,857
Deferred revenue   54,963   38,300
Total non-current liabilities   318,935   365,232
         
Borrowings   0   74,089
Trade payables   88,218   82,337
Tax and social security   18,113   28,101
Provisions   34,074   23,975
Deferred revenue   90,717   75,516
Accruals and other liabilities   150,694   174,003
Total current liabilities   381,816   458,021
         
Total equity and liabilities   1,601,347   1,677,514

Consolidated condensed statements of cash flows

                 
(€ in thousands)   Q4 '14

Unaudited

  Q4 '13

Unaudited

  FY '14

Audited

  FY '13

Audited

                 
Operating result   1,528   4,233   21,114   25,546
Financial losses   -2,452   -3,179   -1,956   -7,757
Depreciation and amortisation   26,696   29,083   114,711   117,419
Change in provisions   -3,905   1,293   -3,702   -5,285
Equity-settled stock compensation expenses   1,278   -29   4,126   4,440
Changes in working capital:                
Change in inventories   7,599   12,865   -3,549   3,753
Change in receivables and prepayments   3,574   21,557   -11,592   33,059

Change in liabilities (excluding provisions)7

  3,790   -7,215   15,568   16,861
Cash generated from operations   38,108   58,608   134,720   188,036
                 
Interest received   158   71   1,467   1,139
Interest paid   -1,470   -749   -3,817   -2,863
Corporate income taxes (paid)/received   -4,416   -7,093   -13,741   73,196
Cash flows from operating activities   32,380   50,837   118,629   259,508
                 
Investments in intangible assets   -18,528   -15,380   -72,700   -68,414
Investments in property, plant and equipment   -4,592   -5,898   -16,564   -16,184
Acquisitions of subsidiaries and other businesses   -10,776   0   -17,280   -6,942
Dividend received   58   35   58   1,036
Cash flows from investing activities   -33,838   -21,243   -106,486   -90,504
                 
Repayment of borrowings   -175,000   0   -175,000   -75,000
Amount utilised from the credit facility   50,000   0   50,000   0
Dividends paid   -177   -174   -177   -377
Proceeds on issue of ordinary shares   977   1,351   6,794   1,508
Cash flows from financing activities   -124,200   1,177   -118,383   -73,869
                 
Net (decrease) / increase in cash and cash equivalents   -125,658   30,771   -106,240   95,135
Cash and cash equivalents at beginning of period   278,621   227,538   257,785   164,459
Exchange rate changes on cash balances held in foreign currencies   -14   -524   1,404   -1,809
Cash and cash equivalents at end of period   152,949   257,785   152,949   257,785

7 Includes the movement of non-current deferred revenue.

Accounting policies - basis of accounting

The condensed consolidated financial information for the three-month and twelve-month periods ended 31 December 2014 with related comparative information has been prepared using accounting policies which are based on International Financial Reporting Standards (IFRS). Accounting policies and methods of computation followed in the condensed consolidated financial information, for the period ended 31 December 2014, are the same as those followed in the Financial Statements for the year ended 31 December 2014. Further disclosures as required under IFRS for a complete set of consolidated financial statements are not included in the condensed consolidated financial information. The consolidated and company financial statements of TomTom NV for the year ended 31 December 2014 have been prepared and audited but are not yet published. The quarterly condensed consolidated information in this press release is unaudited.

Audio webcast fourth quarter and full year 2014 results

The information for our fourth quarter and full year 2014 results audio webcast is as follows:

Date and time: 12 February 2015 at 14.00 CET
corporate.tomtom.com/presentations.cfm

TomTom is listed at NYSE Euronext Amsterdam in the Netherlands
ISIN: NL0000387058 / Symbol: TOM2

About TomTom

TomTom (TOM2) empowers movement. Every day millions of people around the world depend on TomTom to make smarter decisions. We design and develop innovative products that make it easy for people to keep moving towards their goals. Our map-based components include map content, online map-based services, real-time traffic, and navigation software. Our consumer products include PNDs, navigation apps, and GPS sports watches. Our main business products are custom in-dash navigation systems and a fleet management system, which is offered to fleet owners as an online service with integrated in-vehicle cellular devices. Our business consists of four customer facing business units: Consumer, Automotive, Licensing and Telematics. Founded in 1991 and headquartered in Amsterdam, we have 4,000 employees worldwide and sell our products in over 46 countries. For further information, please visit www.tomtom.com.

Forward-looking statements/Important notice

This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of TomTom NV and its subsidiaries (referred to as 'the company' or ‘the group’) and certain of the plans and objectives of the company with respect to these items. In particular the words 'expect', 'anticipate', 'estimate', 'may', 'should', 'believe' and similar expressions are intended to identify forward-looking statements. By their nature, forward-looking statements involve risk and uncertainly because they relate to events and depend on circumstances that will occur in the future. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on them. We have based these forward-looking statements on our current expectations and projections about future events, including numerous assumptions regarding our present and future business strategies, operations and the environment in which we will operate in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, levels of customer spending in major economies, changes in consumer tastes and preferences, changes in law, the performance of the financial markets, the levels of marketing and promotional expenditures by the company and its competitors, raw materials and employee costs, changes in exchange and interest rates (in particular changes in the US dollar and GB pound versus the euro can materially affect results), changes in tax rates, future business combinations, acquisitions or disposals, the rate of technological changes, political and military developments in countries where the company operates and the risk of a downturn in the market. Statements regarding market share, including the company's competitive position, contained in this document are based on outside sources such as specialized research institutes, industry and dealer panels in combination with management estimates. Where full-year information regarding 2014 is not yet available to the company, these statements may also be based on estimates and projections prepared by outside sources or management. Market shares are based on sales in units unless otherwise stated. The forward-looking statements contained refer only to the date in which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this document.



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