Annual Report and Accounts 2020

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Annual Report and Accounts 2020 Annual report and accounts 2020 TOMTOM Annual report and accounts 2019 1 Table of contents WE ARE TOMTOM GOVERNANCE COMPANY FINANCIAL STATEMENTS Message from the CEO ............................ 3 Corporate governance ........................... .42 Company statement of income ................... .119 At a glance ...................................... 5 Management Board .............................. .46 Company balance sheet ......................... .120 Value creation model ............................. 6 Supervisory Board ............................... 49 Notes to the company financial statements ....... 121 Business model ................................... 7 Risk management and control .................... .53 Core technologies ............................... 11 Investor relations ............................... .59 OTHER INFORMATION Market trends and growth opportunities ........... .18 Management Board statements .................. .60 Other information .............................. .123 People and culture ............................... 24 Supervisory Board report ......................... .62 Independent auditor's report .................... .124 Corporate responsibility .......................... 29 Remuneration report ............................ .67 Privacy and data governance ..................... 36 Supervisory Board statements .................... .79 SUPPLEMENTARY INFORMATION Financial review ................................. 37 Quarterly overview 2020 ........................ .130 Definitions and abbreviations .................... .132 Operational review .............................. .40 FINANCIALS Non-GAAP measures ............................ 133 CONSOLIDATED FINANCIAL STATEMENTS Forward-looking statements ..................... 34 Consolidated statement of income ................ .81 1 Consolidated statement of comprehensive income .. 82 Consolidated balance sheet ....................... 83 Consolidated statement of cash flows ............. .84 Consolidated statement of changes in equity ....... 85 Notes to the consolidated financial statements .... .86 2 WE ARE TOMTOM Message from the CEO ............................ 3 At a glance ...................................... 5 Value creation model ............................. 6 Business model ................................... 7 Core technologies ............................... 11 Market trends and growth opportunities ........... .18 People and culture ............................... 24 Corporate responsibility .......................... .29 Privacy and data governance ..................... .36 Financial review ................................. 37 Operational review .............................. .40 3 MESSAGE FROM THE CEO “ I am proud of what we achieved in 2020, and of our resilience as we maintained our course through a year of uncertainties.” HAROLD GODDIJN CHIEF EXECUTIVE OFFICER, TOMTOM NV DEAR STAKEHOLDERS, Throughout the pandemic, traffic information revealed insights into 2020 has been a turbulent year for most people around the world. the spread of, and recovery from, COVID-19. By looking at traffic COVID-19 continues to impact people's daily lives and has disrupted patterns using the TomTom Traffic Index, cities and governments €392 million the global economy. The pandemic's consequences will remain a were able to analyze how populations reacted to lockdowns and Location Technology revenue (2019: €426 million) challenge for many industries including our own. better plan for the longer-term effects on mobility. Having received hundreds of requests for traffic data, I am pleased we are able to The health and safety of our employees and partners has been play an important role in shaping the future of mobility. our highest priority throughout the year. At the beginning of the €1 .8 billion outbreak, we acted swiftly and decisively to enable remote working. To improve our competitive position, we maintained our engineering As a global company that is used to working across multiple capacity and kept our commitment to research and development; Automotive backlog (2019: €1.8 billion) locations and time zones, we quickly embraced this new way of continued developing our connected navigation products; doing business. I am proud of how our employees were able to handle implemented improvements to our Maps APIs; and invested further this situation. We experienced no material loss in productivity and in our mapmaking platform to produce and deliver better maps, €372 million continued to offer the same high customer service levels that our faster and at a lower cost per edit – cementing our position as a customers expect. leading mapmaker now and into the future. Net cash position (2019: €437 million) 4 MESSAGE FROM THE CEO CONTINUED We successfully grew our Enterprise revenue, extending our In addition to our location technologies and reputation for delivering relationships with Verizon and Uber. In Automotive, we announced a strong user experience, our independent nature as a global new agreements with carmakers such as Fiat Chrysler Automobiles mapmaker continues to differentiate us from the competition. (FCA) and Subaru, further expanding our footprint. We continue to Being independent enables us to work with companies across see a trend of location technologies being offered online, allowing for the automotive and technology industries, paving the way for faster cycle times, ease of integration, and flexibility. This creates more partnerships in an increasingly complex and competitive opportunities to broaden our reach in Enterprise and improve our ecosystem. Importantly, we uphold strong data governance and an offering in Automotive even further. The competition we face in both uncompromising commitment to data privacy in everything we do. markets is intensifying, but we have gained good traction with our I am proud of what we achieved in 2020, and of our resilience as we online products in 2020 – a clear sign that our customers see us as a maintained our course through a year of uncertainties. I would like partner for a truly connected future. to thank all our stakeholders: our shareholders for their continued With the launch of TomTom RoadCheck, we became the first to offer support and confidence in TomTom; our customers for their loyalty carmakers a complete mapping service for safer automated driving. and valuable feedback that helps us further improve our services; RoadCheck is a first-of-its-kind product for automated vehicles, and our employees for quickly adapting to new ways of working, and enabling carmakers to control where automated driving functions for contributing with passion, creativity, and energy to make our can be activated safely. business successful. Even though this year launched the world into many new directions, our mission remains to create the most innovative location technologies for a safer, cleaner, congestion-free world. HAROLD GODDIJN CHIEF EXECUTIVE OFFICER, TOMTOM NV FOR MORE INFORMATION Our company tomtom.com/company 5 AT A GLANCE Accelerating the future of mobility TomTom technologies help to solve the challenges Today, from cloud to mobility, analytics and smart COUNTRIES OFFICES of climate change and road-related accidents cities, we harness location data to empower by changing the way people move. That’s what businesses, governments and developers to create motivates us to create and refine products groundbreaking location-aware technologies. 26 35 that are designed to accelerate the adoption of TomTom offices Our technologies are a vehicle for us to take automated, connected and electric driving. TomTom HQ, Amsterdam on bigger challenges. Rather than accept road We are founder-led and headquartered in accidents, emissions and traffic congestion as Amsterdam with offices in 26 countries. Every day, facts of life, we are actively working to solve these our talented team of 4,500 diverse individuals issues that affect us all. are creating the location technologies relied upon We have become a trusted partner for innovative by hundreds of millions of drivers, businesses, and future-proof navigation technology for the governments and authorities around the world. global automotive and technology industry. OUR HISTORY OUR AMBITION Founded in 1991, we have grown from a Our ambition is to be a leading location technology Dutch-based start-up into the world's leading specialist, shaping mobility with location-based independent location technology specialist. products and services, including maps, navigation What started with software development for software, real-time traffic and other services. business-to-business mobile applications and OUR STRATEGY personal digital assistants for consumers led Our strategy is to provide our customers and their to the creation of a new product: the portable users with a location platform with the most navigation device (PND). up-to-date and relevant geographic content and The PND became the fastest-selling consumer mobility technologies, including maps, navigation technology device in history meeting a software, connected services and APIs, for demand for an all-in-one, easy-to-use, portable their applications. navigation solution. 4 .5 thousand employees EMPLOYEES BY REGION Americas EMEA Asia Pacific 7% 66% 27% 6 VALUE CREATION MODEL We aim to create the most relevant and beneficial impact for all stakeholders Input Output How we create value CREATING VALUE FOR OUR STAKEHOLDERS People People People We create innovative location technologies 4,500 employees in 37 countries
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