In H1 2013, 45,000 shares were issued following the exercise of share options by employees (H1 2012: nil).
8. Share-based compensation
Share-based compensation expenses amounted to €3.8 million in H1 2013 versus €3.7 million in the same period last year.
In May 2013 the group issued 3.1 million stock options under the 2009 share option plan. The 2009 share option plan was adopted for members of management and eligible employees. The plan aims to encourage members of the Management Board and selected employees to focus on the group’s long-term success by providing such individuals an economic interest in any growth of equity value of the Company, subject to terms and conditions of the 2009 Share Option Plan.
In addition to the stock options grant, the group also issued new performance shares and restricted stock units to certain groups of employees. The performance shares plan is classified as a cash-settled plan and the restricted stock plan is an equity-settled plan. Both plans have a three years service period as the only vesting condition.
For further information on our share based compensation, reference is made to note 22 in our 2012 Annual Report.
9. Related party transactions
Refer to note 4 for transactions with key management personnel.
In the normal course of business, the group receives map development and support services from its associate Infotech Enterprises Ltd. Such transactions take place at the normal market conditions and the total payments made for these services in H1 2013 amounted to €7.6 million (H1 2012: €6.8 million).
10. Seasonality
In the 12 months ended June 2013, the group had revenues of €1,014 million compared to revenues for the 12 months period ending June 2012 of €1,188 million.
The group’s sales are impacted by seasonality, particularly within the Consumer segment. Consumer revenue is generally higher in the second half year due to the holiday sales in the fourth quarter and traditionally low sales in the first quarter. This trend is becoming less significant. In the 12 months ended June 2013, Consumer had revenues of €609 million compared with the period ended June 2012 of €747 million.
Other operating segments’ revenue is generally not materially affected by seasonality.
Besides the normal market seasonality, the group revenue can also be affected by new product launches.
11. Commitments and contingent liabilities
In the first half of 2013, there were no material changes to the group’s commitments and contingent liabilities from those disclosed in note 29 of our 2012 Annual Report.
12. Acquisition of associate
Effective from 1 June 2013 the group acquired the remaining 51% of equity interest in its associate mapIT, a company based in South Africa, for a consideration of €3.0 million. The previously held 49% interest has been remeasured to fair value resulting in a gain of €2.5 million which is included under the line Result associates in the income statement.
The net fair value of assets and liabilities acquired amounted to €6.0 million. An amount of €7.1 million is allocated to the intangible assets which had not previously been recognised. No goodwill has been recognised and other than the remeasurement gain above, this acquisition had no material impact on the group revenue and results for H1 2013.
13. Fair value and fair value estimation
The fair values of our monetary assets and liabilities as at 30 June 2013 are estimated to approximate their carrying value. There has been no change in the fair value estimation technique and hierarchy of the input used to measure the financial assets/liabilities carried at fair value through profit or loss compared to the method and hierarchy disclosed in our 2012 Annual Report.
Audio web cast Second quarter 2013 results
The information for our Second quarter results audio web cast is as follows:
Date and time: 25 July 2013 at 14:00 CET
http://corporate.tomtom.com/events.cfm
TomTom is listed at NYSE Euronext Amsterdam in the Netherlands
ISIN: NL0000387058 / Symbol: TOM2
About TomTom
Founded in 1991, TomTom (TOM2) is a leading provider of navigation and location-based products and services.
TomTom maps, traffic information and navigation technology power automotive in-dash systems, mobile devices, web based applications and government and business solutions.
TomTom also designs and manufactures its own location-based products
including portable navigation devices and fleet management solutions, as
well as GPS-enabled sports watches.
