BUSINESS REVIEW
In 2008 we made good progress in the execution of our strategy of which the acquisition of Tele Atlas is the most important element. It shows that the Group’s reach is broadening and that content and services are becoming a more significant part of our revenue.

TOMTOM
In 2008 the TomTom business unit continued to expand its global reach to 30 countries by entering into Turkey and Russia.

During the year, TomTom introduced a full range of new models, including our connected devices the GO x40 LIVE range with our LIVE Services bundle which demonstrated our capacity for sustained innovative leadership.

We also introduced a new version of TomTom HOME, our online portal for services and products. At the end of the year we had 10 million registered HOME users, an indication of the strong growth of our user community.

In Europe, we continued to enjoy a stable leading market share of close to 50%. In North America we continue to hold a strong number two position with over 20% market share.

TELE ATLAS
On 5 June 2008 the acquisition of Tele Atlas was completed, a process that started in 2007 when we launched an all-cash offer for all of the issued and outstanding share capital in Tele Atlas. The €2.6 billion acquisition cost, including the net financial cash position of Tele Atlas, was financed by using available cash, committed financing and the placement of shares.

After the acquisition we built a new executive team at Tele Atlas with the operational and financial experience and leadership needed to become a larger, more competitive company. Tele Atlas was also reorganised from having a regional structure into a functional structure to enable a global centralised customer focus, and to reduce overhead costs.

Later in the year we concluded an important partnership when we signed a five-year license agreement with Google. Tele Atlas also extended its contract with MiTAC with a new three-year license agreement to provide maps for their PNDs worldwide.

We expanded our map offering by adding community information collected by TomTom and WORK, such as our Speed Profiles product.

We also started to integrate Map Share input from TomTom’s extensive customer base into our maps and delivered the industry’s first global digital map database where it uses community-provided data to identify and validate changes.

Tele Atlas expanded geographic coverage to include full coverage for Greece, Malta, Italy, Spain, Portugal, Bulgaria and Turkey; signed agreements to deliver maps of Argentina and South Korea; and introduced maps in India and Northern Africa. We will further expand our coverage to take advantage of opportunities around the world.

WORK
In 2008, our WORK business unit renewed its line up of solutions by introducing the new TomTom LINK 300 and by launching its new version of WEBFLEET. We further strengthened our leading European position in this market and nearly doubled our installed base from 34,000 subscribers at the end of 2007 to 67,000 a year later. The growth in the number of subscribers was mainly the result of growth of market share and geographical expansion in Europe. We also started developing the WORK business in the US.

AUTOMOTIVE
2008 was a start-up year during which we worked on aligning our efforts to the needs of the automotive market. We now have a complete structure in place that is able to develop, deliver and produce automotive qualified products.

We have established Tier 1 and Tier 2 relationships with car manufacturers and suppliers. In the Tier 2 relationships, we work with the Tier 1 partners to deliver navigation systems integrated in radio head units. These relationships are non-exclusive and are set up to serve specific markets and/or car manufacturer relationships.

In September we announced a partnership with Renault to deliver a fully integrated navigation product in the first half of 2009 that complies with automotive quality requirements. Renault is an example of a full first tier relationship for us. Together we will deliver a mass-market approach for embedded navigation at a lower cost, the expected end-user price is around €500.

Our focus on automotive customers, our experience in navigation and our leverage within the whole Group, gives us a strong position to further expand our customer base in 2009.

BRAND
2008 was a year in which the scale and reach of the TomTom brand continued to grow. Three out of four people are aware of the brand of the TomTom business across our markets and our website was visited over 100 million times by visitors from 237 countries. The Tele Atlas brand has a global reach, touching the daily lives of millions of people, whether they use maps online, on their PND, on their phone or even on gaming devices.

TomTom remains committed to improving mobility by focusing on the fundamentals of navigation – maps (in 2008 we had our five-millionth TomTom Map Share correction and launched Tele Atlas Urban Maps for in-city navigation), routing (in 2008 we launched TomTom IQ Routes and Tele Atlas Speed Profiles) and dynamic information like Traffic and fuel prices (in 2008 we launched LIVE Services in five countries).

CUSTOMER SUPPORT
We believe our products are the best available on the market, and back this up with superior after-sales support. Outstanding product knowledge, professionalism, responsiveness and flexibility are the cornerstones of customer support throughout the Group. These are enhanced wherever possible with in-depth customer knowledge.

For the PND business, customer support is the principle means by which we discover what our customers need, and what they do and don’t understand about our products and services. Sharing feedback with our product management and marketing teams, and thus with our product development terms, delivers value that goes far beyond simply solving customer problems. It helps us identify areas where we can further expand our business, both improving our products and services and our communications with customers.

At year-end, the TomTom business was supporting customers in 17 different languages across 30 countries. For Tele Atlas, 2008 was the first year the Customer Support Team operated on a global level through a functional organisation, guaranteeing a consistent service in North America, Europe, Middle East and Asia Pacific and allowing optimal flexibility, use of expertise and fast decision taking. Customers are provided with a first line, single point of contact and are supported further through a strong second-line support system allowing fast response times. The services offered cover the full product life cycle: from pre-sales to post-sales and maintenance.

CUSTOMER CONFIDENTIALITY REPORT
Following the acquisition by TomTom an Information Security Manager was appointed to ensure continuity of confidentiality within Tele Atlas. All Tele Atlas contracts have confidentiality protections and Tele Atlas offers enhanced confidentiality protection to customers which specifically prevents customer information from passing through Tele Atlas to TomTom. Furthermore, Tele Atlas maintains a system of storing specific customer agreements where access is restricted to only those Tele Atlas employees who require the information.

During 2008, we did not receive any complaints or issues from Tele Atlas customers regarding a breach of confidentiality.