Related party transactions

For related party transactions please refer to note 9 of our interim financial report.

Principal risks and uncertainties H1 2017

The risks associated with building a multi-product Consumer business were acknowledged in TomTom’s Group Risk Profile (see 2016 Annual Report). The weaker than expected Sports revenue is a partial realisation of this risk.

Taking the decision to evaluate our strategic options for Consumer Sports gives rise to a change in this risk. The most significant changes are the possible negative impact on our brand name, the unnecessary loss of talented people employed by our organisation and the negative market response to the TomTom Sports business itself.

We have anticipated these risks and prepared appropriate risk responses that include investigating the strategic options for Consumer Sports as well as proactively engaging stakeholders to minimise TomTom organisational and product market disruption.

All other group risks mentioned in the Group Risk Profile section of TomTom’s 2016 Annual Report are still relevant and deemed incorporated and repeated in this report by reference.

Responsibility statement

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:

• the interim financial statements prepared in accordance with IAS 34, “Interim Financial Reporting”, give a true and fair view of the assets, liabilities, financial position, profit or loss of the company and the undertakings included in the consolidation taken as a whole; and
• the interim Management Board report gives a fair review of the information required pursuant to section 5:25d(8)/(9) of the Financial Supervision Act.

Amsterdam, 19 July 2017

The Management Board

Harold Goddijn / Chief Executive Officer
Taco Titulaer / Chief Financial Officer
Alain De Taeye / Member of the Management Board

Consolidated condensed statement of income

(€ in thousands)		Q2 '17 Unaudited		Q2 '16 Unaudited		H1 '17 Unaudited		H1 '16 Unaudited
Revenue		253,442		265,225		466,153		482,380
Cost of sales		92,833		119,967		173,174		213,817
Gross result		160,609		145,258		292,979		268,563
Research and development expenses		53,539		45,675		103,765		90,208
Amortisation of technology and databases		24,373		21,107		46,802		41,733
Marketing expenses		21,768		21,545		36,023		36,603
Selling, general and administrative expenses		51,743		44,179		102,056		91,580
Impairment charge		168,687		0		168,687		0
Total operating expenses		320,110		132,506		457,333		260,124
Operating result		-159,501		12,752		-164,354		8,439
Interest result		-318		-377		-493		-682
Other financial result		1,458		-1,233		1,856		478
Result of associates		228		134		353		461
Result before tax		-158,133		11,276		-162,638		8,696
Income tax (expense) / gain		-1,923		911		-1,974		8,257
Net result		-160,056		12,187		-164,612		16,953
Net result attributable to:
Equity holders of the parent		-159,902		12,066		-164,512		16,858
Non-controlling interests		-154		121		-100		95
Net result		-160,056		12,187		-164,612		16,953
Basic number of shares (in thousands)		234,417		231,193		233,749		230,902
Diluted number of shares (in thousands)		238,124		234,522		237,520		234,687
EPS, € basic		-0.68		0.05		-0.70		0.07
EPS, € diluted 7		-0.68		0.05		-0.70		0.07

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