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Group financial review

6.1Key figures overview

Table_5 Key Figures Group

(€ in millions, unless stated otherwise) 2015 2014 y.o.y. change1
Consumer 623.6 619.1 1%
Automotive 105.9 109.4 -3%
Licensing 142.1 111.6 27%
Telematics 135.0 110.2 22%
Total Revenue 1,006.6 950.3 6%
Gross result2 518.5 523.3 -1%
Gross margin (%) 52% 55%  
EBIT2 0.6 21.1 -97%
EBIT margin (%) 0% 2%  
Net result2 18.3 22.7 -19%
Adjusted net result3 49.6 60.3 -18%
EPS - fully diluted (€) 0.08 0.10 -22%
Adjusted EPS - fully diluted (€)4 0.21 0.27 -20%
Depreciation & amortisation2 123.1 114.7 7%
of which acquisition-related 52.1 50.3 3%
EBITDA 123.7 135.8 -9%
EBITDA margin % 12% 14%  
Cash flows from operating activities 118.8 118.6 0%
Cash flows from investing activities -154.2 -106.5 45%
Net cash 98.3 103.0 -5%
1. Change percentages are based on non-rounded figures.
2. 2015 includes a €11 million impairment charge on customer specific technology.
3. Net result adjusted for acquisition-related amortisation & gain on a post-tax basis.
4. Earnings per fully diluted share count adjusted for acquisition-related amortisation & gain on a post-tax basis.


In 2015, we generated revenue of €1,007 million, a growth of 6% compared with €950 million in 2014. PND revenue remained the biggest revenue contributor for the group. This revenue growth, which is the first time since 2010, is driven by the growth in Licensing, Telematics and Consumer while Automotive showed a modest year on year decline. Revenue growth in our Consumer Sports business and in Content & Services revenue in Telematics and Licensing more than offset the marginal decline in the PND category. 77% of our 2015 revenue was generated in Europe (2014: 76%), 18% in North America (2014: 17%) and the remaining 5% in the rest of the world (2014: 7%).

6.3Gross result

Our gross result for 2015 was €519 million (2014: €523 million), which represents a gross margin of 52% compared with 55% in 2014. Our gross margin in 2015 was negatively impacted by the weakening of the euro against the US dollar, especially in the first half of the year, and a €11 million impairment charge of certain Automotive customer specific technology recorded as part of cost of sales. At constant currency rates and excluding this impairment charge, our gross margin would have been 57% in 2015. 

6.4Operating expenses

Operating expenses for the year were €518 million compared with €502 million in 2014. The increase in our operating expenses was mainly driven by higher personnel expenses and marketing expenses, partly offset by a decrease in depreciation and amortisation and a one-off gain from a settlement of a litigation case.

From a categorical perspective, research and development (R&D) expenses increased by €11 million year on year. Total R&D cash spending during the year, including capital expenditures, amounted to €268 million compared with €246 million last year.  We also invested more in marketing to support the launches of our new products this year, which resulted in a €14 million increase of marketing expenses compared with 2014. Selling, general and administrative (SG&A) expenses increased by €2 million year on year to €172 million, mainly due to higher sales expenses in Telematics, which was the result of a combination of more FTE and higher amortisation related to acquisitions.

Total depreciation, amortisation and impairment for the year was €123 million (2014: €115 million) which includes a €11 million impairment charge recorded in cost of sales. Amortisation of technology and databases decreased by €11 million year on year, partly driven by lower amortisation due to change in useful life of certain navigation technologies. Acquisition-related amortisation increased to €52 million from €50 million in 2014, mainly reflecting additional amortisation from acquisitions that took place at the end of 2014 and early 2015, partly offset by lower amortisation on mapmaking tools.

As a result of the above-mentioned increase in operating expenses and the decrease in our gross margin, our EBIT for the year was at break-even compared with €21 million last year.

6.5Financial results and taxation

The net interest expense for the year was €0.9 million versus €3.1 million in 2014, mainly due to lower interest rates applied against lower outstanding borrowings during the year. The other financial result consisted mainly of a foreign currency loss of €7.4 million compared with a loss of €3.8 million in 2014.

The income tax for the year was a gain of €26 million, mainly as a result of remeasuring certain deferred tax assets and liabilities to a lower rate due to the application of the innovation box facility in the Netherlands, as well as some other one-off releases of provisions. 

6.6Net result

The net result for the year was €18 million (2014: €23 million). The net result adjusted for acquisition-related amortisation & gain on a post-tax basis was €50 million compared with €60 million in 2014. The adjusted EPS for the year was €0.21 (2014: €0.27).


Total cash used in investing activities in 2015 was €154 million, an increase of €48 million compared with €106 million in 2014, reflecting increased investments in our technology platforms and acquisitions. We continued investing in our core technologies such as our transactional mapmaking platform and the NDS based navigation system and expanded our global map footprint through acquisition of an Australian mapping company. We also further expanded our Telematics business by acquiring Finder S.A., the leading fleet management service provider in Poland.

6.8Cash flow from operations, liquidity and debt financing

Net cash from operating activities for the year was €119 million, flat compared with 2014, despite the lower operating result in 2015.

Net cash from financing activities for the year was a net cash inflow of €29 million compared with a net cash outflow of €118 million in 2014, the latter mainly related to a loan repayment of  €125 million in December 2014. The net cash inflow for 2015 mainly came from €34 million cash inflow from the exercise of 6.9 million options related to our long-term employee incentive programmes, partly offset by a €5 million repayment of our loan facility during the year.

At the end of 2015, our net cash position was €98 million (2014: €103 million). Our outstanding borrowings comprised of €45 million that we utilised from our revolving credit facility of €250 million and some external borrowings from the recently acquired Polish subsidiary amounting to €4 million.



In 2016, we plan for revenue and earnings growth. We expect revenue of around €1,050 million. Adjusted EPS is expected to grow by around 10% to €0.23.

We expect the level of investment (both CAPEX and OPEX) in our core technologies to be higher than last year. 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.

The number of employees in 2016 is expected to be higher compared with 2015.