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Consumer Business & Financial review



• Extract value from the PND category
• Establish a multi-product consumer business

2.2 Business review

In 2015, we continued to strengthen our leading position in the world of navigation, whilst successfully expanding our presence in the world of sports, fitness and action cameras.


We have introduced TomTom MyDrive, a website and mobile app designed to seamlessly connect the car to the digital world. Drivers can use their smartphone, tablet or PC to review real-time TomTom traffic information, plan routes and send destinations to their TomTom GO, before they get in the car. The MyDrive platform is open to developers and third parties; innovative driving concepts and applications can be developed and implemented in the future, benefiting drivers all over the world.

At the end of the first quarter, we launched the Go Mobile app for Android. Sharing the same user interface as the TomTom GO device, the mobile app now helps drivers get to their destinations faster every day. With offline Maps, TomTom Traffic, superior routing and Speed Camera warnings in countries where available, the app is the ideal travel companion for mobile users.

The new app features a global map license so drivers can use it all over the world even without a network connection.

Lifetime World Maps and Lifetime Speed Cameras were introduced to the GO range in the second quarter of the year. Lifetime World Maps allows people to drive with maps from around the world at no extra cost, for the lifetime of their TomTom GO device. Lifetime Speed Cameras lets drivers know the locations of all speed cameras – both fixed and mobile, also for the lifetime of the device.

In the second half of the year, we introduced the TomTom TRUCKER 5000 and 6000, a portable navigation device specifically designed for large vehicles. The TomTom TRUCKER ensures that drivers are on the right road with customised routes for the user’s specific vehicle type, size, weight, cargo and speed. Through TomTom Traffic and advanced routing technology, drivers get a realistic ETA based on vehicle profile and real-time traffic information.

Sports and Fitness

In 2015, we completely refreshed our Running product range and introduced an action camera and a fitness watch with 24/7 activity tracking.

We made our range of TomTom Runner and Multi-Sport GPS Sport Watches compatible with Nike+. Users can track their progress, challenge their friends and share their successes with the Nike+ running community and earn NikeFuel. This was a next step in a partnership with Nike that began in 2011 with the launch of the Nike+ Sportwatch, which was powered by TomTom.

In the second quarter, we introduced our action camera. The TomTom Bandit is the first ever camera to come with a built-in media server, eliminating the need to download footage before being able to edit it. The camera works with a companion app, making it possible to create and share videos in a matter of minutes instead of hours. With the Bandit, which automatically selects movie highlights with the use of multiple built-in sensors, we have solved the biggest frustration people have with action cameras today: the time and effort it takes to edit and share their movies.

Following the successful innovation of heart-rate monitoring on the wrist in 2014, we introduced music on the wrist at the end of the third quarter in 2015. The next generation TomTom GPS sport watches with integrated music player, make it easier for fitness enthusiasts to boost their training. Now users no longer have to strap a phone to their arm or worry about wires getting in the way during their workout. The sport watch streams music to a wide range of Bluetooth® headphones and Playlists can be easily downloaded to the TomTom GPS sport watch.

The unique combination of an integrated music player, built-in heart-rate monitor, 24/7 activity tracking, multi-sport functionality and GPS, makes it easier than ever for people to get more from their workout, and improve their overall fitness level.

2.3Financial review

Total Consumer revenue for the year was €624 million, an increase of 1% compared with last year (2014: €619 million). The year on year growth was mainly driven by a strong growth in our Sports category and a modestly higher Automotive hardware revenue, partially offset by lower PND revenue.

The biggest revenue contributor remains the PND category, including the related traffic and maps revenue. The European PND market volumes declined by 8% in 2015 (2014: -11%).  The North American PND market declined by 22% in 2015 (2014: -23%).

Our PND business developed better than the market. We maintained our leading market position in Europe, improved our market share in North America and we strengthened our average selling price (ASP), which resulted in value share growth and a modest decline of our PND revenue in 2015.

Sports revenue amounted to €69 million in 2015, an increase of 40% compared with last year (2014: €50 million), fuelled by the launch of our new range GPS sport watches and our action camera.

Table_1 Key Figures Consumer

(€ in millions, unless stated otherwise) 2015 2014 y.o.y. change1
Consumer products 551.2 548.4 1%
Automotive hardware 72.4 70.7 2%
Total Revenue 623.6 619.1 1%
EBITDA 14.1 55.3 -75%
EBITDA margin (%) 2% 9%  
EBIT 2.6 36.2 -93%
EBIT margin (%) 0% 6%  
Market size Europe (# units sold in millions)2 6.8 7.4 -8%
TomTom market share (%) 52% 52%  
Market size North America (# units sold in millions) 3.2 4.0 -22%
TomTom market share (%) 17% 15%  
1. Change percentages are based on non-rounded figures.
2. Europe refers to EMEA17: AT, CH, DE, BE, NL, FR, IT, GB, ES, PT, TR, CZ, PL, DK, SE, FI, ZA.

Consumer generated EBITDA of €14 million in 2015 (2014: €55 million). The EBIT for the year was €3 million compared with €36 million last year. This translates into a break-even EBIT margin in 2015, compared with 6% in 2014. Consumer operating result in 2015 was significantly negatively impacted by the weakening of the euro against the US dollar and additional investments in marketing to support new product introductions, partly offset by a gain following a legal settlement.



In 2016, we will bring new features to the Mydrive app and to our GO range of products to improve the overall user experience and drive preference for replacement buyers in the market.

We will continue expanding our range of products in the Sports and Fitness category and establish ourselves as a credible sports and fitness consumer electronics brand.