Overview

1About TomTom

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. Best known for being a global leader in navigation and mapping products, we also create GPS sport watches, action cameras, as well as state-of-the-art fleet management solutions and industry-leading location-based products.


1.1Foundation

1.1.1

Founded in 1991, TomTom has grown from a Dutch-based start-up company into a leading multi-national, global brand. The original founders remain committed to the business and together with over 4,600 employees are focused on driving innovation and helping people achieve their goals.

TomTom began with software development for B2B mobile applications and personal digital assistants (PDAs) for consumers in 1991. Soon after, TomTom became the market leader in PDA software with navigation applications such as RoutePlanner and Citymaps. In 2002, the TomTom Navigator was launched providing customers across Europe with an easy-to-use, affordable navigation solution for the first time.

A year after the successful launch of TomTom Navigator, it was clear there was a strong demand for an all-in-one, easy-to-use, portable navigation device. The result was not just a new product, but also an entirely new category in consumer electronics: the Portable Navigation Device (PND).

The PND became the fastest selling consumer technology device in history, as the trusted travel companion for millions of drivers. Demand grew rapidly across Europe and North America and in the 11 years since its launch, over 78 million TomTom PNDs have been sold in 41 countries.

1.1.2



TOMTOM AIMS TO MAKE INNOVATIVE TECHNOLOGY
accessible to everyone

1.2Diversification

1.2.1

In the years that followed, we continued to innovate and create new products, both in the B2C and the B2B segments.

In 2013, our consumer product portfolio was extended with TomTom GPS sport watches, providing sport enthusiasts easy-to-use devices on their wrist, eliminating the need for chest straps, smartphone and wires during their workout. In 2015, the TomTom Bandit action camera was launched, the first with a built-in media server, making it easy to create and share videos in a matter of minutes.

TODAY, TOMTOM'S B2C ACTIVITIES INCLUDE PNDs, sport watches, action cameras and smartphone navigation applications

Over the years, we acquired a number of new businesses including Datafactory (which formed TomTom Telematics), Applied Generics (which formed TomTom Traffic), the automotive engineering team from the Siemens R&D division (which formed TomTom's Automotive business unit) and Tele Atlas, one of the largest digital mapmaking companies in the world (which formed TomTom Maps).

These acquisitions provided specialist data, technology, knowledge, and resources to deliver a best-in-class navigation and location-based experience for our customers.


Our Telematics business grew into a leading global provider of fleet management and vehicle telematics solutions, reaching an installed base of 605,000 vehicles at the end of 2015. Telematics is recognised as the largest and fastest-growing telematics provider in Europe today.

We are revolutionising the way maps are delivered, with our new transactional mapmaking platform, that will enable near real-time maps. With the deployment of this important technological innovation, we are uniquely positioned to fully address the need for highly accurate and always up-to-date maps. TomTom is committed to using the NDS map format, which is integrated into our navigation software on device-based and server-based navigation applications.

The strength of our technology resulted in TomTom becoming a key partner for important strategic collaborations for Advanced Driver Assistance Systems (ADAS) and Autonomous Driving over the recent years. Together with our state-of-the-art real-time traffic information and navigation software, TomTom's products are sold to customers across various markets, reaching over 800 million people around the world every day.

TOMTOM'S B2B ACTIVITIES INCLUDE fleet management solutions, embedded navigation systems & components and location-based solutions

1.2.2



1.3Privacy and data governance


1.3.1

WE BELIEVE PRIVACY IS ABOUT FREEDOM AND BEING ABLE TO DECIDE FOR ONESELF how one's data is used and by whom; this is why we have established our Privacy Principles

TomTom is a highly data intensive company. To create and maintain our various products and services, we process billions of data points every day and, for example, we use petabytes of road side imagery every day. We do this on a global scale. A significant part of the information is contributed by our users or in other ways relates to individuals. It is paramount to the continuity of us being able to use our users’ data that we retain their trust.


We operate according to the privacy laws applicable in the various countries we are active. Because we are rooted in Europe, European privacy laws also apply. These laws are considered to be some of the most extensive in the world. They offer a high level of protection to our users by only allowing us to use their data when the strict conditions of these laws are met. Our company policy on privacy and processing of personal data reflects these laws and we apply this policy globally. To make it easier for our users to understand this policy, we have translated them into ten promises we make. These can be found on our website: tomtom.com/privacy.

To be able to live up to our promises, we employ what is generally known as 'privacy by design'. Effectively this means that when designing and engineering our products and services, privacy and properly dealing with data from or about our users is a topic we consider right from the start and have this thinking embedded throughout our engineering and operations.

1.3.2

2TomTom's activities at a glance

2.1Our core technologies

2.1.1

TomTom's core technology assets are maps, traffic and navigation. These assets underlie many of TomTom's products, and are used in PNDs, embedded navigation systems, smartphone applications, and web-based applications. In addition, our Telematics business has its own proprietary technology called WEBFLEET, used by businesses to improve fleet performance, save fuel, support drivers and increase overall fleet efficiency.

Our R&D cash spending in 2015 totalled to €268 million, an increase of 9% compared with 2014. This reflects significant investments in our new mapmaking platform and in advanced content and software for the automotive industry. We have over 3,500 people working in R&D across 40 countries globally.




2.1.1.1

2.1.2

Maps

We provide global map coverage with fully navigable maps for 135 countries, covering over 46 million kilometres and over 4 billion people worldwide.

Mapmaking at TomTom is about efficiently dealing with map changes, and the full implementation of our state-of-the-art mapmaking platform is now enabling us to deliver high quality map content with short delivery cycles. TomTom is the leader in the use of probe traces in quality mapmaking and in handling consumer feedback.

Next to the traditional navigable map, we also produce high-accuracy Advanced Driving Attributes (ADA) to enable Advanced Driver Assistance Systems (ADAS). In addition, we are creating HD map products on a global scale to enable Autonomous Driving. By delivering a highly accurate border-to-border model of the road, our HD Map enables a self-driving vehicle to see beyond its sensors. Together, these advanced map features extend the range of view for the vehicle while supporting smoother, safer and more efficient driving scenarios. In 2015, we launched RoadDNA, our proprietary precise localisation technology. HD Map and RoadDNA together represent the most accurate and robust technology in the market today to provide real-time information about a vehicle’s precise location on a map and on the road whilst coping with changes in the environment.


Traffic

We have a comprehensive product portfolio for traffic and travel information as well as road data analytics. We create real-time traffic and historical traffic information for highways, major roads and secondary roads. This information is available in 50 countries.

Our traffic service provides drivers highly accurate measurements of traffic jams and delays for better route calculation and expected times of arrival (ETAs). We use a wide range of sources to generate real-time traffic information. An important source of traffic data comes from our own community input that delivers over 8 billion speed measurements per day. Our traffic technology intelligently combines the data, including weather, from all available sources into a database with both traffic flow and incident data for the entire road network covered.





Navigation

NavKit, our state-of-the-art navigation engine, is the foundation for many of our products and delivers best-in-class dynamic routing performance. NavKit is available in 135 countries.

Our navigation software is based on the NDS map format fully leveraging its incremental map update capabilities. Our navigation engine provides interfaces (APIs) that enable our customers to develop a fully customised navigation application on any device or platform. NavKit can be provided with an award winning User Interface. NavKit navigation technology is also offered with cloud-based services that enable hybrid navigation and storage facility for personal navigation data to allow for a seamless navigation experience across different devices.


WEBFLEET: Software-as-a-Service fleet management sOLUTION

Our Telematics business offers fleet management solutions for commercial fleets of any size. WEBFLEET is a Software-as-a-Service solution – used by small to large businesses to improve vehicle performance, save fuel, support drivers, increase overall fleet efficiency and contribute to logistics operations.

Our leadership in the telematics industry lies in the strength and scalability of our proprietary technology – WEBFLEET, certified with ISO 27001:2013 for confidentiality, integrity and availability, re-audited in November 2015. WEBFLEET allows for seamless integration with third-party applications. To date, more than 350 software and hardware partners have integrated our WEBFLEET platform into their product applications – this represents the largest partner ecosystem in the fleet management industry today. Available third-party software solutions and apps include those for CRM and ERP, planning and scheduling, route optimisation, temperature control, mobile printing and lone worker safety. This makes our solution adaptable to any business requirement.

Vehicle-related data generated by our telematics technology can be extended into added-value products for aftermarket Connected Car services, including car OEMs, dealerships, importers, servicing, leasing and rental companies and the usage-based insurance (UBI) sector.





2.1.2.1

2.2Our group business structure


Our activities are organised around four customer-facing business units that leverage our brand, capabilities, and common technology assets to provide consumers, businesses, governments and local authorities with industry-leading location-based products.


2.2.1


2.2.2

Consumer

Our Consumer business creates innovative and easy-to-use products that give consumers the knowledge they need to get where they want to go effortlessly and quickly. Consumer activities are focused on the Drive and Sports categories; products include PNDs, smartphone navigation applications, GPS sport watches and action cameras. TomTom consumer products are recognised for their smart and intuitive user interface, strong GPS performance and innovative design and features aimed at satisfying real consumer needs and desires.

Automotive

Our Automotive business provides cutting-edge modular software components - maps, traffic and navigation software - to car manufacturers (OEMs) and Tier 1 head unit vendors. Each component can be integrated as a stand-alone product, or combined into the Connected Navigation System, to deliver seamless compatibility, advanced user experience and cost-effective implementation. Automotive is also involved in a number of ADAS and Autonomous Driving partnerships, where our technology is being used to make Autonomous Driving a reality.

Licensing

Our Licensing business sells maps, traffic and navigation software. It also offers cloud-based products and platforms that allow developers easy access to content to create location-enabled applications for businesses and governments. Licensing focuses on two types of customers: B2B2C, where TomTom's products are incorporated in end user applications such as smartphones, wearables and tablets, and on the internet; and B2B & Government, serving professional users for location-based applications such as geographical information systems (GIS) providers, governmental bodies and traffic management institutions.

Telematics

Our Telematics business offers fleet management, vehicle telematics and connected car services. Our WEBFLEET platform is a Software-as-a-Service solution, used by small to large businesses to improve vehicle performance, save fuel, support drivers and increase overall fleet efficiency. In addition, Telematics provides services for the insurance, rental and leasing industries, car importers and companies that address businesses as well as consumers.

2.3Our people

2.3.1

ENTREPRENEURIALISM IS VALUED IN OUR COMPANY;
We believe that without organisational flexibility for people to make their own choices and thrive, we will stifle innovative thinking

2.3.2

The true value of our business lies in our people. We aim to attract the best talent, invest in their development and give them the opportunity to grow and achieve more every day. TomTom attracts agile and adaptable people, capable of effectively dealing with and responding rapidly to changing circumstances. Having the best and diverse talent enables us to deliver the best and most innovative products to our customers.

In 2015, our global headcount grew by 12% to more than 4,600 people based in 35 countries. Number of new joiners was at an all-time high, with more than 922 people coming on board in 32 countries.

2.3.3


2.4Key financials for 2015




WE DELIVERED TOP-LINE GROWTH THIS YEAR, FOR THE FIRST TIME SINCE 2010; In 2015, we invested more in our technologies and in acquisitions than in recent years and maintained a relatively flat net cash position

2.4.1

In 2015, we delivered revenue of €1 billon, 6% higher compared with €950 million in 2014. Our Licensing, Telematics and Consumer Sports businesses grew strongly to offset the reduction in PND revenue, which remained the biggest revenue contributor for the group. Our Automotive business showed a modest decline year on year. This decline is mainly due to the phasing out of certain legacy contracts. Revenue from Content & Services grew to €449 million in 2015 (2014: €407 million) and accounted for 45% of total revenue. 

The weakening of the euro impacted our performance in 2015 negatively. We reported a gross margin of 52% in 2015. At constant currency rates, our 2015 gross margin equalled to 56%. Our group EBITDA reached €124 million this year, 9% lower compared with 2014 (2014: €136 million). The net result for 2015 was €18 million, which translates to adjusted earnings per share of €0.21.

We  continued to broaden our Consumer product portfolio and invested more in advertising to support this. We made significant investments (both in capital expenditures and operating expenses) in our core technologies compared with previous years. In particular, we are investing in advanced content and software for the automotive industry (e.g. to enable Autonomous Driving) and in our new mapmaking platform. We expect these investments to lead to higher Automotive revenue in the mid-term. We have also invested more in acquisitions than in recent years.


2.4.2



3Strategic priorities

We have made substantial progress with our core technologies across the group over the recent years. This gives us confidence that through our skills and expertise in location data and technologies, we are well positioned to capture growing opportunities in the area of Consumer Wearables, Autonomous Driving, Connected Car and Telematics. These areas all require the technological and product expertise that TomTom is able to provide and form an important part of our growth strategy, product roadmap and investments for the foreseeable future.

3.1

We are determined to further build on our path of growth. This can be achieved through growth from non-PND product sales whilst extracting the value from the PND category, which we believe will remain a meaningful category in its own right for the foreseeable future. With the introduction of our own branded GPS sport watches and action camera, we have diversified our Consumer product portfolio into the sports market and aim to continue to build on this with innovative new products.

Our new mapmaking platform is essential for creating a stronger market position as well as for pursuing new opportunities in the Automotive and Licensing markets. We believe that our new mapmaking platform, together with our traffic and navigation software, will enable TomTom to pursue further growth opportunities with existing and new customers for connected navigation, Advanced Driver Assistance Systems (ADAS), and Autonomous Driving. We are committed to play a leading role in Autonomous Driving and our product roadmap reflects our strategy to map the global road network with precise road geometry data. In 2015, we delivered commercial samples of our HD map, which is designed for Autonomous Driving, for all highways in Germany. Our HD map is being extended to cover North America, Europe and other regions.

The underlying industry dynamics for our fleet management business remain favourable. A combination of short return on investment for our customers and an under-penetrated market allow us to plan for long-term double-digit growth of our Telematics revenue. We also see new opportunities arising in the aftermarket Connected Car services industry, which can take advantage of the capabilities of our Telematics technology. This allows us to target new business and consumer markets, including OEMs, dealerships, importers, servicing and leasing companies and the usage-based insurance (UBI) sector.


3.2


4TomTom Maps

Location is increasingly relevant, playing a key role in enabling connectivity. In a connected world, users demand maps that are accurate and up-to-date, and which can be seamlessly integrated across automotive, mobile and online location-based applications. Future use cases, such as Autonomous Driving, require significantly more detailed and more accurate maps than are available today.


4.1

The need for a map that perfectly reflects the real-world will continue to grow. This will lead to new opportunities to create cutting edge software and technology. For example, we see an increased development of map use cases in the area of Autonomous Driving, where connected cars will be equipped with real-time maps that are used with sensors to navigate without human input. Autonomous Driving requires advanced map components to support numerous vehicle systems.



The challenge in mapmaking today is to deliver the highest quality and most detailed real-time maps in an efficient and cost-effective way to facilitate this vision. Changes in the map happen every day, in locations around the world. Mapmaking platforms will need to automatically process an increased volume of real-world changes reported by remote in-car sensors and connected devices while minimising the time between detecting changes in the real world and updating the map on the end user's device or platform.


4.2TomTom is a global leader in digital mapping

4.3

With more than 25 years of experience, we offer an extensive digital map database with global coverage. Our maps are used by more than 400 million devices worlwide: on PNDs, in-dash navigation devices, smartphone applications, and web-based applications.

4.3.1


4.3.2

2015 Milestones

In 2015, we achieved a significant milestone with the migration to our next generation mapmaking platform, the only of its kind in the industry. This enables us to address current and future needs for highly accurate maps that are always up-to-date in an efficient and cost-effective way.

In addition, enabled by our new  technology and infrastructure, we launched two Autonomous Driving related products: HD Map and RoadDNA for all highways in Germany in 2015 and all interstate roads in California and Michigan in early 2016.




BUSINESS OUTLOOK

We will leave traditional batch mapmaking process behind and will fully leverage our transactional mapmaking platform to deliver the most up-to-date, accurate maps globally in 2016 and onwards. On-demand access to real-time maps via TomTom’s Map Content API is planned for 2016.

Additionally, we will continue to launch our HD Map and RoadDNA products for additional geographies, helping to make Autonomous Driving a reality faster.

4.4Building and delivering the leading map products

4.4.1

With our next generation mapmaking platform, we are revolutionising the way digital maps are created; we are moving away from traditional batch process towards a continuously releasable map, enabling highly accurate maps that are always up-to-date.

By shortening the time between detecting changes in the real world and updating the map on an end user’s device, we can deliver near real-time maps. Our  maps are created and delivered via a formula that relies on: Intelligent Mapmaking, Closed Loop and Easy-To-Use Map Delivery Formats.


In today’s world, people expect to be always connected and their map data to be always up-to-date. However, changes in maps happen every day, in locations around the world. Every year about 15% of roads change: examples include new speed limits, a change in driving direction, adding address points or new geometry for a street. Ensuring that the map keeps up with these ongoing changes is a major challenge for mapmakers. Our new transactional mapmaking platform enables us to edit the map globally and shorten the time between editing the map and publishing it to end users.



4.4.1.1

4.4.2

Intelligent mapmaking

4.4.2.1

TomTom uses intelligent mapmaking to deliver accurate and up-to-date maps. We invented and perfected a highly efficient hybrid approach that combines professional mapmaking methods with community input and has a focus on fast cycle-times and quality assurance. Through our mapmaking approach, we tap into local teams of highly skilled map technicians located in more than 40 countries and a fleet of mobile mapping vans that drive the streets every day. We have a growing community of hundreds of millions of users, of which many share map feedback with us as changes in the real world are detected. In addition, we continue to explore new sensor data as cars become more and more connected, to further extend our pool of hybrid mapmaking data. We believe that our mapmaking approach allows us to deliver highly accurate global maps more quickly.



4.4.3

Closed Loop

4.4.3.1

Our transactional mapmaking platform allows us to rapidly close the loop between detecting changes in the real world and updating the map on an end user’s device. Transactional means a map change can pass through our closed loop process end-to-end, be quality assured, and end up in the product for use in a matter of days, hours and eventually minutes, fulfilling a key requirement for real-time maps.


First, a map change is detected via our intelligent mapmaking process. Next, we select only the part of the map that is impacted by the change. We update the map and immediately conduct hunderds of quality checks that assure accuracy. We then merge the changed piece back into the map as an incremental update. As this quality assured process is transactional, the map database is continuously releasable.


4.4.3.2



4.4.3.3

4.4.4

Easy-To-Use Map Delivery Formats

4.4.4.1

TomTom delivers global real-time map updates to customers via fast and frictionless map distribution mechanisms, including MultiNet-R, Navigation Data Standard (NDS) and Map Content API. MultiNet-R delivers all the high quality content layers of the TomTom map database in a single and easy-to-use relational database model. As an industry leader in the adoption of the NDS, we offer modular, plug-and-play run-time maps. Finally, our Map Content API provides access to the latest possible map changes with total flexibility.

4.4.5

4.5Autonomous Driving

Autonomous Driving is the most disruptive change in the automotive industry since the invention of the car. It will completely transform not only the way we commute but will boost the safety, comfort and efficiency of vehicles to a level beyond imagination. Autonomous Driving will require advanced map components to support numerous vehicle systems. Enabled by our new map technology and infrastructure, we launched two Autonomous Driving related products in 2015.

4.5.1

HD Map

TomTom HD Map provides a highly accurate and realistic representation of the roadway profile, including 3D lane and road markings information. The HD Map extends the range of view for the vehicle enabling smoother, safer and more efficient driving scenarios. The HD Map can also be leveraged to fulfil a broad range of advanced driving applications. The first generation of the HD Map focuses on highway driving. Support for other environments including urban and rural will follow as HD evolves. In 2015, we launched publicly available HD test map data for Detroit, Michigan and the industry’s first commercial launch of an HD Map for all highways in Germany.



RoadDNA

TomTom RoadDNA is a patented and highly optimised technology to enhance lateral and longitudinal positioning along the roadway. With this technology a vehicle can correlate RoadDNA data with data obtained by its own sensors. By doing this correlation in real-time, the vehicle accurately knows where it is located on the road, even while traveling at high speeds. By converting a 3D point cloud of roadside patterns into a compressed, 2D view of the roadway, RoadDNA delivers a solution that can be used in-vehicle with limited processing requirements. Without losing roadway detail, this technique eliminates the complexity of identifying each single roadway object, but rather creates a unique pattern of the roadway environment.

4.5.2

HD MAP AND RoadDNA TOGETHER REPRESENT THE MOST ACCURATE AND ROBUST TECHNOLOGY IN THE MARKET TODAY to provide real-time information about a vehicle’s precise location whilst coping with changes in the environment

4.5.3


5TomTom Traffic

Cities and urban areas around the globe experience increasing urban mobility challenges as the populations and the number of cars on the road network continue to grow. Similar problems are being faced in all major cities as the traffic congestion increases and parking spaces become more difficult to find. Transportation authorities are facing growing challenges to manage their cities in a smart and efficient way. Therefore new, smarter and more efficient solutions are required to deal with traffic planning, traffic control and to organise safer, greener and more comfortable mobility in cities.

5.1

A GLOBAL LEADER IN REAL-TIME TRAFFIC INFORMATION

5.1.1

TomTom has created a comprehensive product portfolio for traffic and travel information as well as road data analytics to help improve mobility and provide solutions for better decision-making in transportation.

OUR REAL-TIME TRAFFIC INFORMATION, AVAILABLE IN 50 COUNTRIES, is a vital tool for drivers and government authorities to save time and resources by reducing congestion

Based on a global traffic community of over 400 million connected users, which generates over 8 billion anonymous speed measurements every day, we provide precise and up-to-date traffic information for highways, major roads and secondary roads on a global scale. We provide highly accurate measurements of traffic jams and delays for better route calculation, which helps drivers to make better decisions that save time.

Our historical traffic archive has continued to grow significantly and now contains over 14 trillion location measurements, which is used for road traffic analytics by governments and local authorities to help improve traffic flow on congested road networks.

We also utilise this information for congestion level benchmarking and long-term trend analysis. This data enables us to create TomTom Traffic Index, a global benchmark that is published annually comparing congestion levels and the impact they have on over 220 cities worldwide. The TomTom Traffic Index makes the congestion problem visible to the general public, the driving commuters and the city traffic planners.

5.1.1.1

5.1.2

2015 Milestones

We continued to expand our global footprint. TomTom's historical and real-time traffic information is now available in 50 countries. This includes Chile, Mexico, Greece, Hungary, Slovakia, Kuwait and Hong Kong, which all launched in 2015 and Indonesia and Slovenia, which launched in early 2016.

Our Speed Camera services expanded into 4 new markets in 2015 and is now available in 53 countries. Our Speed Camera app for Android phones was rolled out to 16 countries by the year-end, adding to a community of over 4.5 million users contributing to our speed camera database quality.



BUSINESS OUTLOOK

In 2016, we will continue to strengthen our traffic services with innovative content and delivery formats using a growing number of Floating Car Data. We will also deliver new services and platforms to help manage transportation in smarter cities. As urban traffic challenges increase, TomTom will contribute to help drivers and city authorities manage their journey and transportation in a more efficient and safer way. The expansion of our services to new countries will continue and we plan to connect more customers in automotive and GIS to our traffic and travel information platform.

5.2Creating the leading traffic and travel services

5.2.1

To achieve the quality and road coverage of our traffic service, we use a wide range of GPS probe data from fleets, PNDs, smartphones, in-dash systems and other data sources to generate precise real-time traffic information. With recent technology advances, our traffic service also incorporates weather and safety information so that drivers can benefit by knowing where bad weather is influencing the road and driving conditions and jam tail warnings that indicate where there is a sharp speed drop as drivers approach the back of a slow moving jam. We also introduced route-dependent traffic information to ensure drivers only get relevant congestion for their route at junctions on highways and in inner-cities, where traffic congestion is different depending on which turn their route will take them. This means that drivers will no longer be warned of congestion on an exit ramp if they are navigating along a highway with free flowing traffic, for example.

We create high quality traffic and other live content with our award-winning fusion technology using both active and passive community inputs. Our system combines the data from all available sources and enriches it with traffic flow and incident data for the entire road network. In 2015, our service delivery platform, which uses industry standard formats, was extended to also distribute weather, parking, speed camera and fuel price information. This year, we closed a partnership with the German Broadcast organization ARD for verbal Radio Traffic Alerts which is already used by 22 Radio broadcast stations.







6TomTom Navigation

The nature of navigation is changing. Navigation systems are rapidly becoming an ubiqutious and indispensable tool available on PNDs, smartphones and built-in automotive head units. The availability of connectivity and the wide availability of smartphones impact the navigation experience in several ways, some more device-centric and some more user-centric.


6.1

Smartphones can be used to add connectivity to stand-alone devices, allowing for access to services such as real-time traffic. The computational power of smartphones can be used to collaborate with in or on-dashboard devices that provide the screen and user interaction functions. There are currently many interfaces being developed to allow for this device integration.

In addition, applications on various user devices (including the car) work seamlessly together to allow for an integrated navigation experience, whenever and wherever the driver is.

Example use cases would be pre-trip planning and last mile navigation. Personalisation is an important characteristic of this integrated navigation experience and future navigation will go much further than just bringing a person from A to B.

Today, we are only at the brink of the abovementioned enrichment of the navigation experience for end users. At TomTom, we believe many different applications will be developed around navigation in the future.

6.1.1

A global leader in navigation soFtWare

6.1.1.1

With our mature software assets, we are well positioned to address the needs of hybrid navigation, ADAS and Autonomous Driving, as well as emerging trends such as Smart Cities, and urban mobility. The Connected Car, as well as connected personal devices, make it possible for intelligent transportation solutions that go beyond just providing routes. Instead, the connected traveller will experience how mobility as a whole will benefit individuals while also providing improved traffic solutions for municipalities.

We are collaborating with key partners in the automotive industry, public authorities, information service providers, standardisation bodies, and research institutions to shape the future of Intelligent Transportation System (ITS).

All our navigation systems are designed with the driver in mind. We deliver a state-of-the-art and off-the-shelf User Interface that is simple, intuitive and easy-to-use. We have also been a leader in enabling users to personalise their navigation experience for many years.

NavKit, our state-of-the-art navigation engine, is the foundation for many of TomTom's products. This engine implements our core navigation IP and algorithms. It also provides interfaces (APIs) that enable the development of fully customised navigation applications. NavKit is fully portable to any high-level Operating System (OS), such as Linux, Android, iOS, QNX, Tizen and Windows.

6.1.2

6.2Embedded and online navigation use same components


IN 2015, WE HAVE INTEGRATED THE NDS MAP FORMAT into our navigation software on device-based and server-based navigation applications

6.2.1

2015 MILESTONES

We embraced the industry Navigation Data Standard (NDS) map format, and delivered a new set of navigation products based on this format in 2015. We completed our switch from the state-of-the-art TomTom Classic (TTC) run-time maps format to NDS; a complete technology renewal with latest architectural designs and a new and more-easily maintained code base. Subsequently, we rolled out competitive and novel features in our NavKit-based navigation products.

A key factor is that our new NDS-based code supports both embedded systems and online navigation services (Online Routing, Online Search and Online Maps). These products are built on the same code base, which gives them a consistent, robust API logic. The move to NDS has improved our own efficiency, allowing us to increase the pace of development and to roll out NDS-based online navigation services and embedded navigation at the same time. NDS allows our new products the flexibility to be paired with a wide range of partners’ products, based on their specific requirements.

In 2015, we launched the TomTom MyDriveApp application and the MyDriveWeb website, both running on our all-new NDS-based navigation engines. We also launched NavCloud, a syncing and sharing service. NavCloud allows users to synchronise their favorites, home and work, current destination, and routes across their mobile devices and computers. All of these components are available to consumers, and we offer white-label connected navigation components to automotive and licensing customers.

We made good progress with our newly developed map visualisation engine for NDS. The map visualisation was built from the ground up, and offers impressive features including support for multi-display, cross platform (iOS, Android) interactive map rendering. The new technology offloads more object rendering to the Graphics Processing Unit, which allows superior scalability. This greatly improves the responsiveness and crispness of the user interface, for example when zooming in or out a map view; due to the vector-based graphics, zooming avoids blurry map tiles and provides a very smooth experience for the user. This technology will offer the driver lane-level guidance and 3D visualisation of bridges and tunnels. The customer interest in the new map visualisation solution is high and we are already integrating with OEM platforms for demonstration.

We delivered a free text search engine for NDS this year. This feature required development of new algorithms to enable a more flexible search paradigm. Free text search means that a user can search without using the structured format of listing the country, city, street name and address number. As with the other new NDS-based features, the same engines are used for embedded and online products such as the MyDriveApp and the MyDriveWeb website.

Finally, we enriched our industry-leading map matching algorithms, which now outsmart traffic and get customers there faster. These work independently for both TTC and NDS. Map matching is the feature that shows the user’s location on the map. To do this, we use several last known positions instead of only one, to show more accurately the user’s location, regardless of whether there are overpasses or other obstructions blocking the GPS signal.


BUSINESS OUTLOOK

We will soon release Decision Point Navigation based on NDS NavKit, which will add an innovative dimension to dynamic routing to outsmart traffic and real-time obstructions. We are well positioned to continue leading in NDS navigation software for superior navigation, search and map display.

Our connected navigation solutions and strategic research partnerships will continue to leverage real-time data sets to provide innovative solutions for tomorrow’s problems, including megacity traffic, Autonomous Driving, urban smart mobility, and pollution.