1. General
TomTom NV (the “Company”) has its statutory seat and headquarters in Amsterdam, the Netherlands. The consolidated interim financial statements comprise the financial information of the Company and its subsidiaries (together referred to as the “Group”) and have been prepared by the Management Board and authorised for issue on 22 July 2011.
The consolidated interim financial statements have neither been reviewed nor audited.
2. Summary of significant accounting policies
The principal accounting policies and method of computations applied in these consolidated interim financial statements are consistent with those applied in the annual financial statements for the year ended 31 December 2010, except as described below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
Basis of preparation
The consolidated interim financial statements for the six months ended 30 June 2011 have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’. As permitted by IAS 34, the consolidated interim financial statements do not include all of the information required for full annual financial statements and the notes to these consolidated interim financial statements are presented in a condensed format. Accordingly, the condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2010, which have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations as adopted by the European Union.
Change in accounting policies and disclosures
All IFRS standards and interpretations that were in issue but not yet effective for reporting periods beginning on 1 January 2011 have not yet been adopted.
Use of estimates
The preparation of these interim financial statements requires that the Group makes assumptions, estimates and judgements that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities as of the date of the interim financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. Estimates are used when accounting for items and matters such as revenue recognition, inventory obsolescence, product warranty costs, depreciation and amortisation, asset valuations, impairment assessments, taxes, earn-out provisions, other provisions, stock-based compensation and contingencies. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and the future periods if the revision affects both current and future periods. For TomTom’s critical accounting estimates and judgments, reference is made to the notes to the Consolidated financial statements in the 2010 Annual Report.
3. Segment reporting
The internal management reporting is structured based primarily upon the four customer facing business units – Consumer, Automotive, Business Solutions and Licensing.
The segment reporting in these interim financial statements reflects the change in management reporting structure as presented in the 2010 annual accounts and further refinements in the allocation of operating expenses of supporting functions as adopted in the internal management report. Accordingly the comparative information for the first half of 2010 has been adjusted to reflect this change and is therefore not necessarily comparable with the previously reported segment information.
| (in € millions) | H1 '11 | H1 '10 | ||
| Group revenue | 579.4 | 630.3 | ||
| Consumer | 365.8 | 459.1 | ||
| Automotive | 119.8 | 83.6 | ||
| Licensing | 65.7 | 63.1 | ||
| Business Solutions | 28.1 | 24.5 | ||
| Group EBIT | 36.1 | 66.6 | ||
| Consumer | 27.2 | 74.6 | ||
| Automotive | 0.8 | -2.6 | ||
| Licensing | 8.3 | -2.2 | ||
| Business Solutions | 6.3 | 6.0 | ||
| Unallocated | -6.5 | -9.2 |
