Financial summary Q2 '14
Operational summary Q2 '14
Change percentages are based on non-rounded figures
TomTom's Chief Executive Officer, Harold Goddijn
"We reported a strong second quarter with top line growth and an
improved gross margin.
Our Consumer business held up well in the second quarter, mainly
driven by European PND and sport revenue, and we continued our
accelerating growth path in Telematics.
In Automotive, we are making good progress in delivering a complete
set of leading connected navigation system components to our OEM
customers, which is reflected in the record number of quotations we have
been involved in during the first half of the year.
The development of our new real-time map-making platform will result
in better maps at lower cost. The platform is scheduled to roll out from
late this year onwards. Our new map is continuously releasable and
processes sensor and crowd-sourced data from our own and customer
applications in near real-time.
Customers will experience all the advantages of a locally stored map,
while receiving incremental updates. This puts TomTom in a leading
position to master future map use requirements for Highly Automated
Driving and pilots are in progress with our customers.
Driven by our strong first half year results, we are increasing our
full year guidance for 2014."
Given our strong first half year results, we are increasing our full
year outlook for 2014. We now expect revenue of at least €925 million
and adjusted1 earnings per share of at least €0.25.
We also re-iterate that we expect our gross margin to stay strong, we
will maintain tight control on operating costs, and we expect capital
investments of more than €100 million. We expect to increase our net
cash position for the year as a whole.
Financial and business review3
Group revenue for the quarter was €252 million, a 1% increase compared
to €250 million in the same quarter last year. The year on year growth
in revenue came from the strong increase in Telematics revenue partly
offset by a modest decline in Consumer and Licensing revenue.
Consumer revenue for the quarter was €169 million, slightly lower
compared to €172 million in Q2 '13. Automotive hardware revenue, which
is reported under Consumer, represented €19 million in Q2 '14 (Q2 '13:
€23 million). Excluding Automotive hardware revenue, Consumer showed
growth for the second consecutive quarter. This growth was driven by
European PND and sport revenue.
The European PND market decline continues to slow down. The estimated
market size in Europe4 was 1.9 million units in the second
quarter, 11% lower compared to the same period last year. Our European
market share for the quarter was approximately 52% and we saw a
strengthening of our ASP. The estimated PND market size in North America
was 1 million units in Q2 '14, 24% lower compared to the same period
last year. Our North American market share for the second quarter was
approximately 15% and we saw a fairly stable ASP.
In sport, we more than doubled our revenue in the quarter. The
successful introduction of our Cardio GPS sport watches, which is
already available in 26 countries, was the main driver behind this
Automotive revenue for the quarter was €31 million, an increase of 1%
compared to the same quarter last year (Q2 '13: €30 million).
In the second quarter, TomTom started shipping a new navigation system
to Daimler. This in-dash navigation product, developed in partnership
with Renault, will equip the new Smart. It has a 7" capacitive
touchscreen and features TomTom maps, navigation software and real-time
traffic service. In China, we extended our partnership with AutoNavi to
deliver Audi with our real-time traffic service. Audi A3 models are
currently shipping with TomTom's traffic service in China. We launched
our real-time traffic service in Turkey in the second quarter and our
traffic service is now available in 37 countries globally.
Our map-making technology puts TomTom in a leading position to provide
the advanced map features required for Highly Automated Driving (HAD)
purposes, where high freshness and assured quality are key. We are
currently upgrading our mobile mapping fleet of vans with laser sensors
(LiDAR) and high-resolution 3D cameras to enable the capture of the next
generation of detailed high quality map features required by HAD
systems. In parallel, we continue our commitment to expand our map
coverage globally. Currently our navigable map covers 43 million km of
roads in 118 countries.
TomTom launched the Advanced Driver Assistance Interface Specifications
(ADASIS) Toolkit in June 2014. This toolkit provides our Automotive
customers a robust benchmarking and on-road testing tool for ADAS
applications such as adaptive cruise control, predictive powertrain
management, eco driving/coaching and curve speed warnings. The ADASIS
toolkit is an easy-to-use package based on TomTom's NavKit software and
enhanced map content, like gradient and curvature information. It
enables our Automotive customers to create applications that generate
energy savings, increase performance and improve safety.
Licensing generated revenue of €27 million for the quarter, which is 5%
lower compared to €29 million in Q2 '13. The year on year decrease
reflects the impact of phasing out a major contract in the first half of
last year partly offset by a year on year increase in GIS revenue.
In the quarter, we extended our partnership agreement with AOL's
MapQuest, giving their users access to TomTom's map database, across all
digital platforms including MapQuest.com and its smartphone and tablet
We continued our strong growth path in Telematics in the second quarter.
Telematics revenue in Q2 '14 was €26 million, which represents 29%
growth year on year (Q2 '13: €20 million). This increase is mainly
driven by the growth in the WEBFLEET subscriber base, both organically
and through recent acquisitions. The recurring SaaS revenue for the
quarter was €18 million compared to €13 million in the same quarter last
year, an increase of 36% year on year. At the end of the second quarter
Telematics reported an installed base of 395,000 active subscribers, a
47% increase compared to 269,000 at the end of Q2 '13, and now services
more than 30,000 customers.
Telematics completed the acquisition of the DAMS Tracking's installed
base in June. DAMS Tracking is based in France and has 27,000 vehicles
under subscription. With this second acquisition within one year, TomTom
Telematics further strengthened its leading market position in Europe.
In the second quarter, Telematics announced a partnership with Allianz
to launch a consumer telematics car insurance product. The Allianz
insurance solution helps French consumers to assess their driving by
providing actionable insights via a smartphone app. TomTom's telematics
platform processes a range of vehicle and driving performance data for
Allianz, recorded by the TomTom LINK 100 OBD device in the vehicle and
processed by the app. This partnership underpins that TomTom Telematics
is a reliable technology partner, not only for fleet management, but
also for the insurance industry. Our SaaS business applications allow
insurance companies to create innovative products and services to help
people to drive greener, safer and more efficiently.
Hardware and Content & Services revenue split5
Hardware revenue for the quarter was €148 million (Q2 '13: €146 million)
and Content & Services revenue was €104 million (Q2 '13: €105 million).
Content & Services revenue accounted for 41% of total revenue for the
quarter (Q2 '13: 42%).
The gross margin for the quarter was 55.5%. The gross margin increased
by 4.4 percentage points compared to the same quarter last year. The
year on year increase was mainly due to higher margins on certain
hardware products and partly due to the strengthening of the euro
against the US dollar.
Total operating expenses for the quarter were €130 million, €10 million
higher compared to the same quarter last year (Q2 '13: €120 million).
The year on year increase was mainly driven by higher marketing expenses
in the Consumer segment.
Financial income and expenses
The net interest result for the quarter was nil compared to a net
interest charge of €0.3 million in Q2 '13. The interest line in Q2 '14
includes one-off tax related interest income, which offset the interest
expense on the loan facilities. The interest expense on the loan
facilities in the quarter amounted to €0.7 million.
The other financial result was a loss of €0.3 million for the quarter,
which consisted primarily of foreign exchange loss on the revaluation of
monetary balance sheet items.
The net income tax expense for the quarter was €1.0 million, flat year
on year. The effective tax rate (ETR) for the quarter was 10% versus an
ETR of 11% in Q2 '13. The relatively low ETR reflects benefits from tax
incentives, which are made available for companies with significant
research and development activities in the Netherlands.
Net result and adjusted¹ EPS
The net result for the quarter was €8.9 million (Q2 '13: €7.7 million).
The adjusted1 EPS in Q2 '14 was €0.08 (Q2 '13: €0.07).
At the end of the quarter, trade receivables plus other receivables
totalled €180 million compared to €175 million at the end of Q2 '13. The
inventory level was €41 million, a decrease of €6 million compared to
the end of the same quarter last year. Cash and cash equivalents at the
end of the quarter were €226 million versus €181 million at the end of
Current liabilities excluding deferred revenue were €370 million
compared to €318 million at the end of Q2 '13. The year on year increase
is mainly related to the fact that no borrowings were classified as
current at the end of Q2 '13.
Deferred revenue was €108 million at the end of Q2 '14, compared to €84
million at the end of the same quarter last year. The main reason for
the year on year increase is related to more sales of lifetime maps and
lifetime traffic in our PNDs.
At 30 June 2014 we had a net cash position of €51 million (Q2 '13: net
cash of €6 million). Net cash is the sum of the cash and cash
equivalents at the end of the period (€226 million) minus the borrowings
The cash flow from operating activities for the quarter was €33 million
compared to €45 million in the same quarter last year. The Q2 '13 cash
flow included a €10 million tax refund. Adjusted for this impact, the
cash flow from operating activities decreased by €2 million year on
year, mainly due to a slightly higher working capital utilisation in Q2
The cash flow used in investing activities during the quarter increased
by €3 million year on year to €27 million (Q2 '13: €24 million). The
majority of the investments related to our new Map production platform,
the Navigation engine NavKit, customer specific investments in
Automotive and the recent acquisitions in Telematics.
INTERIM FINANCIAL REPORT
30 JUNE 2014
Semi-annual financial report
TomTom NV (the 'Company') and its subsidiaries (together referred to as
'the group') is the world's leading provider of location and navigation
solutions. TomTom has 4,000 employees (FTE) working in its offices
across all continents. The commercial activities of the group are
carried out through four customer facing business units - Consumer,
Automotive, Licensing and Telematics. Consumer generates revenue mainly
from the sale of PNDs, sport watches, maps and related navigation
products and services. The Automotive business unit develops and sells
navigation software, services and content, such as maps and traffic, to
car manufacturers and their suppliers worldwide. Licensing generates
revenue by licensing digital maps, traffic and other content to a wide
range of customers, and Telematics provides fleet management services
and related products to fleet owners.
Market and TomTom outlook 2014
Consumer's focus is to maximise value from the PND category and
establish a multiproduct consumer business. Automotive revenue
development will largely depend on the new car sales and take rates of
our current partners. Licensing will focus on working with its large
customers to develop and deepen TomTom's product offering. Telematics is
expected to continue to grow organically and if opportunities arise,
pursue some smaller acquisitions.
Given our solid first half year results, we are increasing our full year
outlook for 2014 for the group. We now expect revenue of at least €925
million and adjusted1 earnings per share of at least €0.25.
Financial review for the six-month period ended 30 June 2014
Group revenue for the first half year of 2014 was €457 million, which is
€5 million higher compared to €452 million in the first half of 2013.
The increase in revenue was mainly driven by higher Telematics revenue
partially offset by lower Licensing revenue in combination with flat
Consumer and Automotive revenue.
The segment revenue and operating expenses review reflects TomTom's new
internal reporting structure as announced on 28 March 2014.
Consumer revenue for H1 '14 was €294 million, flat year on year. This is
mainly driven by higher PND revenue in Europe and strong growth in sport
revenue. Automotive generated revenue of €60 million, up by 1% compared
to €59 million in the first half year of 2013. Licensing revenue in H1
'14 was €53 million, which is €5 million lower compared to H1 '13. The
year on year decrease reflects the impact of phasing out of a major
contract. Telematics revenue grew year on year by 29% from €39 million
in H1 '13 to €51 million in H1 '14. The increase was mainly due to the
accelerating growth in the WEBFLEET subscriber base, both organically
and through recent acquisitions. In H1 '14 Telematics acquired DAMS
Tracking's installed base. DAMS Tracking is based in France and has
27,000 vehicles under subscription.
The gross profit for H1 '14 was €257 million, an increase of €17 million
compared to the same period last year. The gross margin in H1 '14
increased to 56% from 53% in H1 '13. The year on year increase is
primarily due to higher margins on certain hardware products and partly
due to the strengthening of the euro against the US dollar.
Operating expenses in H1 '14 were €245 million compared to €233 million
in H1 '13. The year on year increase is mainly driven by higher
marketing and R&D expenses partially offset by lower SG&A expenses.
The operating result for H1 '14 was €11.7 million compared to €7.7
million in H1 '13.
The group recorded €1.0 million of interest expenses in H1 '14 compared
to interest expenses of €1.4 million in the same period of 2013. The
other finance result in H1 '14 was a loss of €1.5 million versus a loss
of €2.3 million in H1 '13. The loss in H1 '14 mainly came from foreign
exchange results from the revaluation of monetary balance sheet items.
The result of associates for H1 '14 was a gain of €0.1 million versus a
gain of €2.8 million in H1 '13. The gain in 2013 included a one-off gain
of €2.5 million as the result of the remeasurement of the carrying value
of our previously held interest in the associate mapIT to its fair value
when we acquired the remaining 51% interest.
In H1 '14, the group recorded an income tax gain of €7.1 million versus
an income tax charge of €1.4 million in the same period last year. The
income tax gain was caused by the release of a tax provision following
the finalisation of an overseas tax audit. Excluding the impact of the
tax settlement the normalised effective tax rate (ETR) for H1 '14 was
11% versus an ETR of 20% in H1 '13.
The cash flow from operating activities was €19 million versus €138
million in the same period last year. Adjusted for the impact of the €80
million tax refund received in H1 '13, the cash flow from operating
activities decreased by €39 million year on year. This year on year
decrease was mainly driven by higher working capital utilisation in the
first half of 2014.
The cash flow used in investing activities was €51 million, an increase
of €6 million compared to €45 million in the same period last year
mainly due to higher investments in our Map production platform as well
as the recent acquisitions.
Related party transactions
For related party transactions please refer to note 8 of our interim
Principal risks and uncertainties H1 2014
In the 2013 Annual Report, we described the key business risks and
uncertainties which we are aware of, and which could have a material
adverse effect on our financial position and results.
We have assessed the risks for the second half year of 2014 and believe
that the risk categories and risk factors identified are in line with
those presented in the 2013 Annual Report. Those are deemed incorporated
and repeated in this report by reference.
Other risks not known to us, or currently regarded not to be material,
could later turn out to have a negative material impact on our business,
objectives, revenues, income, assets, liquidity or capital resources.
With reference to the statement within the meaning of article 5:25d (2c)
of the Financial Supervision Act, the Management Board hereby declares
that, to the best of their knowledge:
Amsterdam, 24 July 2014
The Management Board
Consolidated condensed statement of income
Consolidated condensed statement of comprehensive income
The items in the statement above are presented net of tax.
Consolidated condensed balance sheet
30 June 2014Unaudited
31 December 2013Audited
Consolidated condensed statements of cash flows
Change in liabilities (excluding provisions)6
Consolidated condensed statement of changes in equity
1Other reserves include Legal reserve and the Stock
Notes to the consolidated interim financial statements
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 24 July
The consolidated interim financial statements have neither been reviewed
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 2013, except as described below. These policies have been
consistently applied to all the periods presented, unless otherwise
Basis of preparation
The consolidated interim financial statements for the six months ended
30 June 2014 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 2013, which have been prepared in accordance
with International Financial Reporting Standards (IFRS) and IFRIC
interpretations as adopted by the European Union. The presentation
currency of the group is the euro (€).
Other new accounting standards and developments
The following standards that are effective from 1 January 2014, have
been adopted (early) by the group from 1 January 2013:
1. IFRS 10 'Consolidated financial statements'
2. IFRS 11 'Joint arrangements'
3. IFRS 12 'Disclosures of interests in other entities'
4. IFRS 13 'Fair value measurement'
5. IAS28R 'Investments in Associates'
Other than certain additional disclosures, all the above-mentioned
standards had no material impact on the recognition and measurement of
the group's assets, liabilities, income and expenses. All other
standards and interpretations issued and effective for the reporting
period starting 1 January 2014 did not have a material impact for the
All IFRS standards and interpretations that were in issue but not yet
effective for reporting periods beginning on 1 January 2014 have not yet
Use of estimates
The preparation of these interim financial statements requires
management to make certain 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. 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 areas involving a
higher degree of judgement or areas where assumptions and estimates are
significant to the (interim) financial statements, reference is made to
Note 4 of the Consolidated financial statements in the 2013 Annual
3. Segment reporting
As of 1 January 2014, the internal management reporting, which is used
as the basis for segment reporting, was changed. The hardware component
of sales to automotive customers is reported in Consumer instead of in
Automotive in order to clearly identify automotive revenue which comes
from content and software. Additionally, due to client portfolio
redistribution a minor amount of revenue was moved from Licensing to
Automotive. Accordingly, the reported segment information and their
comparative figures have been adjusted to reflect these changes and are
not necessarily consistent with the numbers reported previously.
The internal management reporting is structured around four operating
segments - Consumer, Automotive, Licensing and Telematics. Consumer
generates revenue mainly from the sale of PNDs, sport watches, maps and
related navigation products and services. The Automotive business unit
develops and sells navigation software, services and content, such as
traffic and maps, to car manufacturers and their suppliers worldwide.
Licensing generates revenue by licensing high-quality digital maps,
traffic and other content to a wide range of customers, and Telematics
provides fleet management services and related solutions to fleet owners.
Management assesses the performance of segments based on the measures of
revenue and earnings before interest and taxes (EBIT), whereby the EBIT
measure includes allocations of expenses from supporting functions
within the group. As the four operating segments serve only external
customers, there is no inter-segment revenue. The allocations of
expenses have been determined based on relevant measures, which reflect
the level of benefits of these functions to each of the operating
The effects of non-recurring items, such as goodwill impairments (if
any) are excluded from management's measurement basis. Interest income
and expenses, and tax are not allocated to segments. A reconciliation of
the segments' performance measure (EBIT) to the group's result before
tax is presented below.
Measure of (non-current) assets and/or liabilities are not provided
internally to the chief operating decision maker and hence, no measure
of segment assets and/or liabilities is reported.
4. Earnings per share
The calculation of basic and diluted earnings per share is based on the
Goodwill is allocated to operating segments identified according to the
core business activities as monitored by management. Within TomTom we
have identified four operating segments being Consumer, Automotive,
Licensing and Telematics. The recoverable amount of an operating segment
is based on the higher of "value in use" or "fair value less cost to
sell" calculations. The "fair value less cost to sell" resulted in a
higher recoverable amount.
In H1 '14 no impairment charge has been recorded (H1 '13: nil).
6. Shareholders' equity
30 June 2014
30 June 2014(in € thousands)Unaudited
31 Dec 2013
31 Dec 2013(in € thousands)
All shares have a par value of €0.20 per share.
In H1 '14, 135,700 shares were issued following the exercise of share
options by employees (H1 '13: 45,000).
7. Share-based compensation
Share-based compensation expenses amounted to €3.7 million in H1 '14
versus €3.8 million in the same period last year.
In May 2014, the group granted 1.2 million stock options under the 2009
stock option plan of which 610,000 stock options were granted to
Management Board members. The 2009 stock 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 stock option plan.
In addition to the stock option grant, the group also granted new
phantom shares to certain groups of employees. The phantom share plan is
classified as a cash-settled plan. The plan has a three-year service
period as the only vesting condition.
For further information on our share-based compensation, reference is
made to note 22 in our 2013 Annual Report.
8. Related party transactions
Refer to note 7 for stock options granted to the Management Board during
In the normal course of business, the group receives map development and
support services from its associate CYENT Ltd. (previously Infotech
Enterprises Ltd.) Such transactions take place at the normal market
conditions and the total payments made for these services in H1 '14
amounted to €9.2 million (H1 '13: €7.6 million).
Transactions and balances with other associates are not material and
hence are not disclosed.
In the 12 months ended June 2014, the group had revenue of €969 million
compared to revenue for the 12 months period ending June 2013 of €1,014
The group's sales within the Consumer segment are traditionally higher
in the second half of the year due to the holiday sales in the fourth
quarter and traditionally low sales in the first quarter. This trend has
become less apparent in recent years. In the 12 months ended 30 June
2014, Consumer had revenue of €650 million compared to €690 million in
the same period ended 30 June 2013.
Other operating segments' revenue is generally not materially affected
Besides the normal market seasonality, the group revenue can also be
affected by new product launches.
10. Commitments and contingent liabilities
In the first half of 2014, there were no material changes to the group's
commitments and contingent liabilities from those disclosed in note 29
of our 2013 Annual Report.
11. Business combinations
In H1 '14, the group made two acquisitions for an aggregate
consideration of €9.2 million. The purchase price from both acquisitions
was mainly allocated to intangible assets. The acquisitions are not
deemed to be material individually or in the aggregate and as a
consequence no additional disclosures are included.
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
The net fair value of assets and liabilities acquired amounted to €6.0
million of which €7.1 million was allocated to the intangible assets. No
goodwill was recognised and other than the remeasurement gain above,
this acquisition had no material impact on the group revenue and results
for H1 '13.
12. Fair value and fair value estimation
The fair values of our monetary assets and liabilities as at 30 June
2014 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 2013 Annual Report.
13. Subsequent events
There has been no subsequent event from 30 June 2014 to the date of
issue of these consolidated interim financial statements.
Accounting policies - basis of accounting
The condensed consolidated financial information for the three-month and
six-month period ended 30 June 2014 with related comparative information
has been prepared using accounting policies which are based on
International Financial Reporting Standards (IFRS). Accounting policies
and methods of computation followed in the condensed consolidated
financial information, for the period ended 30 June 2014, are the same
as those followed in the Financial Statements for the year ended 31
December 2013. Further disclosures as required under IFRS for a complete
set of consolidated financial statements are not included in the
condensed consolidated financial information. The quarterly and interim
condensed consolidated information in this press release is unaudited.
Audio webcast second quarter 2014 results
TomTom empowers movement. 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. Our map-based components include map content, online
map-based services, real-time traffic, and navigation software. Our
consumer products include PNDs, navigation apps, and GPS sports watches.
Our main business products are custom in-dash navigation systems and a
fleet management system, which is offered to fleet owners as an online
service with integrated in-vehicle cellular devices. Our business
consists of four customer facing business units: Consumer, Automotive,
Licensing and Telematics. Founded in 1991 and headquartered in
Amsterdam, we have 4,000 employees worldwide and sell our products in
over 35 countries. For further information, please visit www.tomtom.com
Forward-looking statements/Important notice
This document contains certain forward-looking statements with
respect to the financial condition, results of operations and business
of TomTom NV and its subsidiaries (referred to as 'the company' or 'the
group') and certain of the plans and objectives of the company with
respect to these items. In particular the words 'expect', 'anticipate',
'estimate', 'may', 'should', 'believe' and similar expressions are
intended to identify forward-looking statements. By their nature,
forward-looking statements involve risk and uncertainly because they
relate to events and depend on circumstances that will occur in the
future. Actual results may differ materially from those expressed in
these forward-looking statements, and you should not place undue
reliance on them. We have based these forward-looking statements on our
current expectations and projections about future events, including
numerous assumptions regarding our present and future business
strategies, operations and the environment in which we will operate in
the future. There are a number of factors that could cause actual
results and developments to differ materially from those expressed or
implied by these forward-looking statements. These factors include, but
are not limited to, levels of customer spending in major economies,
changes in consumer tastes and preferences, changes in law, the
performance of the financial markets, the levels of marketing and
promotional expenditures by the company and its competitors, raw
materials and employee costs, changes in exchange and interest rates (in
particular changes in the US dollar and GB pound versus the euro can
materially affect results), changes in tax rates, future business
combinations, acquisitions or disposals, the rate of technological
changes, political and military developments in countries where the
company operates and the risk of a downturn in the market. Statements
regarding market share, including the company's competitive position,
contained in this document are based on outside sources such as
specialized research institutes, industry and dealer panels in
combination with management estimates. Market shares are based on sales
in units unless otherwise stated. The forward-looking statements
contained refer only to the date in which they are made, and we do not
undertake any obligation to update any forward-looking statement to
reflect events or circumstances after the date of this document.
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