Webfleet Solutions Sales B.V. (vormals: TomTom Telematics Sales B.V. Zweigniederlassung)

Leipzig

Befreiender Jahresabschluss gem. §325 a HGB
zum Geschäftsjahr vom 01.01.2018 bis zum 31.12.2018

Webfleet Solutions Sales B.V.

Amsterdam/Niederlande

ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

INDEX

Statement of income and other comprehensive income

Balance sheet

Statement of cash flows

Statement of changes in equity

Notes to the financial statements

Other information

STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME
for the year ended 31 December

(€ in thousands)	Notes	2018	2017 restated
Revenue	4	145,993	130,086
Cost of sales	5	118,383	105,591
Gross profit		27,610	24,495
Research and development expenses		8	86
Marketing expenses		2,660	2,377
Selling, general and administrative expenses		22,594	21,506
Total operating expenses	6-8	25,262	23,969
Operating profit		2,348	526
Interest result		136	81
Other financial result		-41	244
Profit before tax		2,443	851
income tax expense	9	937	491
Net result		1,506	360
Other comprehensive income
Items that may be subsequently reclassified to profit or lass:
Exchange differences an translating foreign operations ¹		1,281	152
Other comprehensive income for the year		1,281	152
Total comprehensive income for the year		2,787	512

¹ The Items included in 'other comprehensive income' are presented net of tax.

The notes an pages 7 to 21 are an integral part of these financial statements.

BALANCE SHEET
as at 31 December (before proposed appropriation of result)

			2017	2016
(€ in thousands)	Notes	2018	restated	restated
Intangible assets	10	2,720	5,687	8,655
Property, plant and equipment	11	1,137	658	553
Lease assets	12	786	1,183	1,406
Deferred tax asset	14	2,159	2,158	2,094
Total non-current assets		6,801	9,686	12,708
Inventories		358	1,683	437
Trade receivables	13	9,499	7,972	8,410
Receivables from group companies	18	52,736	28,832	18,271
Other receivables and prepayments	14	68	627	58
Cash and cash equivalents	15	847	6,019	11,959
Total current assets		63,508	45,133	39,135
Total assets		70,309	54,819	51,843
Share capital	17	0	0	0
Share premium	17	12,941	12,906	12,566
Cumulative translation adjustment reserve		1,420	146	-6
Retained earnings		-5,192	-5,528	-5,787
Result for the year		1,506	360	259
Total shareholder's equity		10,675	7,884	7,032
Lease liabilities	12	475	783	985
Deferred tax liability	9	571	1,248	1,752
Deferred revenue	4	4,679	6,413	6,372
Total non-current liabilities		5,725	8,444	9,109
Trade payables		351	400	500
Payables to group companies	18	42,161	29,547	25,841
Lease liabilities	12	441	477	480
Deferred revenue	4	2,992	3,721	2,523
Other contract related liabilities	4	108	137	233
Income taxes	9	2,236	760	569
Accruals and other liabilities	19	5,619	3,449	5,556
Total current liabilities		53,909	38,491	35,702
Total equity and liabilities		70,309	54,819	51,843

The notes an pages 7 to 21 are an integral part of these financial statements.

STATEMENT OF CASH FLOWS
for the year ended 31 December

(€ in thousands}	Notes	2018	2017 restated
Operating result		2,348	526
Financial (gains)/losses		1,148	388
Amortisation of intangible assets	7	2,967	2,967
Depreciation of property, plant and equipment	7	975	777
Change in provisions		295	574
Equity-settled share-based compensation expenses		16	0
Changes in working capital:
Change in inventories		1,325	-1,245
Change in receivables and prepayments		-25,043	-10,930
Change in current liabilities (excluding provisions)		12,274	2,646
Cash used by operations		-3,695	-4,297
Interest received		157	118
Interest paid		-21	-37
Corporate income taxes paid		-216	-864
Cash used by operating activities		-3,775	-5,080
Investments in intangible assets	10	0	0
Investments in property, plant and equipment	11	-898	-351
Cash used by investing activities		-898	-351
Change in lease liabilities	12	-472	-521
Cash used in financing activities		-472	-521
Net decrease in cash and cash equivalents		-5,145	-5,952
Cash and cash equivalents at beginning of period		6,019	11,959
Effect of exchange rate an cash balances held ln foreign currencies		-27	12
Cash and cash equivalents at the end of the period	15	847	6,019

The notes on pages 7 to 21 are an integral part of these financial statements.

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December

(€ in thousands)	Note	Share capital	Share premium	Cumulative translation reserve	Retained earnings	Total equity
Balance as at 31 December 2016 as previously reported		0	12,566	-6	1,367	13,927
Adoption of new accounting standards	2	0	0	0	-6,895	-6,895
Balance as at 1 January 2017 restated		0	12,566	-6	-5,528	7,032
Comprehensive income
Result for the period restated		0	0	0	360	360
Other comprehensive income
Currency exchange differences		0	0	152	0	152
Total other comprehensive income		0	0	152	0	152
Total comprehensive income		0	0	152	360	512
Other movements
Merger ¹		0	340	0	0	340
Balance as at 31 December 2017 restated		0	12,906	146	-5,168	7,884
Comprehensive income
Result for the year		0	0	0	1,506	1,506
Other comprehensive income
Currency exchange difference		0	0	1,281	0	1,281
Total other comprehensive income		0	0	1,281	0	1,281
Total comprehensive income		0	0	1,281	1,506	2,787
Other movements
Share-based compensation related movement	8	0	35	0	-19	16
Other		0	0	-7	-5	-12
Balance as at 31 December 2018		0	12,941	1,420	-3,686	10,675

¹ Reference Is made to Note 16.

The notes an pages 7 to 21 are an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS

1. GENERAL

TomTom Telematics Sales B.V. (registered under trade registration number of 60077972 in the Chamber of Commerce in Amsterdam) has its statutory seat in Amsterdam, the Netherlands. lt is a subsidiary of TomTom Telematics B.V. and its ultimate parent company is TomTom N.V., a company listed on the Amsterdam stock exchange. TomTom Telematics Sales B.V. acts as a distributor for its parent company and generates revenue primarily through provision of fleet management services as well as through selling or renting out related hardware products to its customers.

The financial statements comprise TomTom Telematics Sales B.V. and its branches (together referred to as "the company").

These financial statements are the non statutory financial statements of the company, as under Dutch Law the parent of the company has filed a statement in accordance with article 403 of Part 9 of Book 2 of the Dutch Civil Code.

The financial statements have been prepared by the Management Board and authorised for issue on 21 June 2019.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The comparative figures have been adjusted, if required, to comply with the current year's presentation.

BASIS OF PREPARATION

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRIC interpretations as adopted by the European Union as effective from 1 January 2018 and with Part 9 of Book 2 of the Dutch Civil Code.

The financial statements have been prepared on the historical cost basis unless otherwise stated. Income and expenses are accounted for on an accrual basis.

NEW ACCOUNTING STANDARDS AND DEVELOPMENTS

Effective from 1 January 2018, the company has adopted IFRS 9 'Financial Instruments', IFRS 15 'Revenue from Contracts with Customers', IFRS 16 'Leases' and to the extent relevant, all other IFRS standards and interpretations including amendments that were in issue and effective from 1 January 2018.

The adoption of IFRS 9 as well as other not specifically mentioned relevant standards, interpretations and amendments had no material impact to the company.

IFRS 16 'Leases' is effective for annual periods beginning alter 1 January 2019, however the company has early adopted the new standard as permitted by the transitional guidance.

The Impact of adopting IFRS 15 and IFRS 16 on the comparative income statement for the year ended 31 December 2017 and balance sheet positions at 31 December 2017 and 1 January 2017 are presented below.

Income statement

(€ in thousands)	Previously reported	IFRS 15	IFRS 16	Restated 2017
Revenue	130,296	-210	0	130,086
Cost of sales	105,567	24	0	105,591
Gross profit	24,729	-234	0	24,495
Total operating expenses	23,962	0	7	23,969
Operating profit	767	-234	-7	526
Interest result	92	0	-11	81
Profit before tax	1,103	-234	-18	851
Income tax expense	549	-54	-4	491
Net result	554	-180	-14	360

Balance sheet

(€ in thousands)	Balance as at 1 January 2017 as previously reported	Impact of new accounting standards	Balance as at 1 January 2017 restated	Balance as at 31 December 2017 as previously reported	Impact of new accounting standards	Balance as at 31 December 2017 restated
Lease assets	0	1,406	1,406	0	1,183	1,183
Deferred tax asset	35	2,059	2,094	42	2,116	2,158
Total non-current assets	9,243	3,465	12,708	6,387	3,299	9,686
Total assets	48,378	3,465	51,843	51,520	3,299	54,819
Retained earnings	1,108	-6,895	-5,787	1,367	-6,895	-5,528
Result for the year	259	0	259	554	-194	360
Total shareholder's equity	13,927	-6,895	7,032	14,973	-7,089	7,884
Lease liabilities	0	985	985	1,248	-465	783
Deferred revenue	0	1,752	1,752	0	783	783
Total non-current liabilities	1,752	7,357	9,109	1,248	-465	783
Lease liabilities	0	480	480	0	477	477
Deferred revenue	0	2,523	2,523	1,006	2,715	3,721
Other contract related liabilities	0	233	233	0	137	137
Accruals and other liabilities	5,789	-233	5,556	3,586	-137	3,449
Total current liabilities	32,699	3,003	35,702	35,299	3,192	38,491
Total equity and liabilities	48,378	3,465	51,843	51,520	3,299	54,819

Cash flow statement

Other than the reclassification of the principal portion of operating lease payments to financing activities, these standards had no other material impact on the cash flow statement.

IFSR 15 Revenue from contracts with customers

In adopting IFRS 15, the company has applied the fully retrospective transitional approach using the practical expedients allowing the company for not restating contracts that have been fully completed nor restating the impact of modifications of contracts that have taken place before 1 January 2017. Additionally, the effect of the transition on the current period has not been disclosed as the standard provides an optional practical expedient. The company did not apply any of the other available optional practical expedients.

IFRS 15 uses the term 'contract liability' to describe what the company historically referred to as 'deferred revenue', however, the Standard does not prohibit an entity from using alternative descriptions in the balance sheet. Accordingly the company chooses to continue using the term 'deferred revenue' in these statements and the related disclosure notes. The term `Contract related liabilities' refers to the collective balance of deferred revenue and other contract-related liabilities.

At 1 January 2017 the adoption of IFRS 15 resulted in a net increase in assets of € 2.0 million, an increase in liabilities of € 8.9 million and a decrease in equity of € 6.8 million.

The company sells hardware products (Telematics Control Unit) which enable the end customer to receive our WEBFLEET services. Previously, the revenues from the sale of such hardware is recognized when risks and rewards of ownership have passed to the customers. Under IFR5 15 there is enhanced guidance on performance obligations and whether these are distinct. Based upon this guidance we assessed that the delivery of the hardware unit that enables the WEBFLEET service is not distinct from the delivery of the WEBFLEET service and should be treated as one performance obligation. Accordingly, the hardware revenue must be recognized over time in line with the revenue from WEBFLEET service from the moment the service is activated.

These changes will decrease the result of the year ended 31 December 2017 by €180 thousand with a total decrease in equity at 31 December 2017 of (7.0 million. The Impact of these changes on the balance sheet is an increase in deferred revenue of (9.1 million. This increase in deferred revenue consists out of a netted position of a contract asset (the hardware) and contract liability (deferred revenue).

IFRS 16 Leases

The company has adopted IFRS 16 in accordance with the fully retrospective transitional approach. The company applies the standard only to leases which were previously identified as leases under IAS 17 and IFRIC 4 in accordance with the practical expedient allowed under the standard. The leases within the company comprises buildings, cars and other leases. The adoption of this standard results in almost all leases being recognised on the balance sheet, except for short-term and low-value leases.

As at 1 January 2017, the company recognised lease assets of €1.4 million, a corresponding lease liability of €1.5 million, a deferred tax esset of €13 thousand and a decrease in equity of €46 thousand. The Impact to the income statement for the year ended 31 December 2017 is a decrease in operating expenses of €7 thousand, an increase in finance costs of €11 thousand and a decrease in income tax expense. The decrease in operating expenses is represented by an increase in depreciation of €539 thousand offset by a decrease in lease expenses.

FOREIGN CURRENCIES

The company's primary activities are denominated in euros. Accordingly, the euro is the company's functional currency, which is also the company's presentation currency. Items included in the financial information of the company's branches are measured using the functional currency of the respective branch, which is the currency of the primary economic environment in which it operates.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing on the dates of the transactions. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income under "Other financial result".

Consolidation of foreign branches

For consolidation purposes, the assets and liabilities of branches that have a functional currency other than the company's presentation currency are translated at the closing rate as of the balance sheet date, whereas the income statement is translated at the average exchange rate for the period. Translation differences arising thereon are recognised in 'Other comprehensive income'.

CASH FLOW STATEMENT

Cash flow statements are prepared using the indirect method.

USE OF ESTIMATES

The preparation of these financial statements requires that the company makes assumptions, estimates and judgements that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities as of the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

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.

REVENUE RECOGNITION

The revenue recognition policy for each type of revenue or their combination is presented below.

Sale of goods

Revenue from the sale of goods is generated through the sale of TCU's. Revenue from sale of goods is generally recognised at the moment the control passes to the customers except for the products of which the customers can only benefit in combination with other products and/or services (such as a TCU). In this case, the revenue from sale of such products is deferred at the moment of sale and recognised on a straight-line basis over an (estimated) service period of 5 years.

Bundled goods and services

When products and services are offered as a bundle under one agreement or under a series of agreements that are commercially linked, the (estimated) total transaction price of the agreement is allocated to each of the identified 'distinct' performance obligations based on the relative stand-alone selling price of each element. Depending on their nature, the revenue from each of the 'distinct' performance obligations is recognized based on the applicable revenue recognition policy as described above.

Contract costs

Contract costs are capitalized only to the extent they are recoverable. The company does not capitalise costs to obtain multi-year contracts as they are deemed not significant. Where the amortization period of an asset recognized for the costs to obtain a contract is one year or less, the practical expedient to expense the costs has been used.

PENSION COSTS

The company operates various defined contribution plans. Contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or reduction of future payments is available.

SHARE-BASED COMPENSATION EXPENSE

The ultimate parent of the company (TomTom N.V.) operates a number of equity-settled share option plans and a cash-settled phantom share plan (previously referred to as 'performance share plan'). For the equity-settled share-based payments the ultimate parent has the obligation to provide certain eligible employees of the company with the equity Instruments of the ultimate parent. For the cash-settled plan, the company has the obligation to make the cash payments. Depending on the nature of the plans, the company accounts for the services received from its employees as an expense in the income statement and records the corresponding credit as either additional contribution from the parent in the share premium or as a liability. The fair values of the options are measured in a manner consistent with the measurement of TomTom N.V. as stated below.

Equlty-settled plans

Equity-settled share-based payments consist of stock option plans and are measured at fair value at the date of grant. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the company's estimate of shares that will eventually vest. Fair value is measured by use of a binomial tree model. The expected life of the share options used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. At each balance sheet date, the entity revises its estimates of the number of options that are expected to become exercisable. It recognises the Impact of the revision of original estimates, if any, in the income statement, and makes a corresponding adjustment to equity (share premium) over the remaining vesting period.

Cash settled plans

Cash-settled share-based payments consists of phantom share plans which are initially measured at the fair value of the liability and expensed on a straight-line basis over the vesting period. The liability is remeasured at each balance sheet date to its fair value, reflected by the share price at balance sheet date, with all changes recognized immediately through profit and loss.

INTEREST INCOME AND EXPENSE

Interest income and expense are recognised using the effective interest method.

TAXATION

Income tax expense represents the sum of the tax currently payable and deferred tax (if applicable). The company's income tax expense is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. The company forms part of a fiscal unity with other Dutch entities for Dutch tax purposes. Taxes are settled within this fiscal unity as if each company were an independent taxable entity.

Current taxes are recognised as an expense or income in the profit and loss account, except when they relate to items credited or debited directly to equity. In this case, the tax is also recognised directly in equity.

Deferred taxes are calculated using the liability method. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled, using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date. The measurement of deferred tax liabilities and deferred tax assets reflects the tax consequences that would follow from the manner in which the company expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets are recognised when it is probable that sufficient taxable profits will be available against which the deferred tax assets can be utilised. The carrying amount of deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

INTANGIBLE ASSETS

Definite-lived intangible assets acquired separately are initially recognised at cost. The cost of assets acquired separately includes directly attributable costs to bring the asset to its intended use. Intangible assets acquired in a business combination are identified and recognised when they satisfy the definition of an intangible asset and their fair values can be measured reliably. The cost of such intangible assets is their fair value at the acquisition date.

Subsequent to initial recognition, all intangible assets are carried at cost less accumulated amortisation and accumulated impairment losses.

The amortisation of other intangible assets is recorded an a straight-line basis over estimated useful lives of 5 years.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at historical cost fess accumulated depreciation and impairment charges.

Depreciation is recorded an a straight-line basis over the estimated useful lives of the assets as follows:

Furniture and fixtures	4-10 years
Computer equipment and hardware	2-7 years

The estimated useful lives, residual values and depreciation methods are reviewed at each year end, with the effect that any changes in estimate are accounted for on a prospective basis.

LEASES

The company leases certain property, plant and equipment.

Leases as a lessee

At inception of a contract, the company assesses whether a contract conveys the right to control the use of an identified asset for a period in exchange for consideration, in which case it is classified as a lease.

The company recognizes a right-of-use asset (lease asset) and a lease liability at the lease commencement date. The asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to restore the underlying asset, less any lease incentives received.

The lease asset is subsequently depreciated using the straight-line method from the commencement date to the end of the useful life of the right-of-use asset, considered to be indicated by the lease term. The lease asset is periodically adjusted for certain remeasurements of the lease liability and impairment losses (if any).

The lease liability is initially measured at the present value of outstanding lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

The lease liability is measured at amortized cost using the effective interest method and is remeasured when there is a change in future lease payments arising from a change in an Index or rate or if the company changes its assessment of whether it will exercise a purchase, extension or termination option. A corresponding adjustment is made to the carrying amount of the right-of-use asset with any excess over the carrying amount of the asset being recognized in profit or loss.

Short term leases and leases of low-value assets

The company has elected not to recognise lease assets and lease liabilities for short-term leases (leases with a term of 12 months or less) and leases of low-value assets, including IT equipment. The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Extension options

Extension options are applicable mainly to leased buildings. The company assesses whether it is reasonably certain to exercise the options at lease commencement and subsequently, if there is a change in circumstances within its control. Such assessment involves management judgment and estimate based on information at the time the assessments are made.

Extension options are included in the lease term when the company has an economic incentive to exercise the option. The company considers available evidence at the time of the assessment, including potential favourable terms upon extension, potential termination penalties, the relative costs associated with potential relocation or termination of the lease and the extent of leasehold improvements undertaken.

Additionally, the size and the relative importance of the leased premises as well as the availability of easily substitutable assets is taken into consideration when assessing whether the company has an economic incentive to extend a lease for which it holds an option to do so.

IMPAIRMENT OF INTANGIBLE AND TANGIBLE ASSETS

Assets that are subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

The recoverable amount is the higher of an asset's fair value, less costs to sell and value in use. In estimating the fair value less costs to sell, the estimated future cash flows are discounted to their present value, using a post-tax discount rate that reflects current market assessments of the time-value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). An impairment loss is recognised immediately in the statement of income and other comprehensive income.

Non-financial assets, other than goodwill that suffered impairment, are reviewed for possible reversal of the impairment at each reporting date.

TRANSACTIONS UNDER COMMON CONTROL

Acquisitions of entities that fall under a common control with the company are accounted for using the 'carry-over' accounting method. Under this method the assets and liabilities acquired are not restated to the fair value. Instead, the acquired assets and liabilities are accounted for at the carrying value of the acquired companies (the predecessor carrying value) as included in the consolidated financial statements of the ultimate parent company (TomTom N.V.). No goodwill arises under this method of accounting.

The results of the acquired entities are accounted for from the date an which the transactions occur. Accordingly the financial statements do not reflect the results of the acquired entities for the period before the transactions occur and nor is the comparative information from the previous year restated.

FINANCIAL ASSETS

The company holds only financial assets which classify as loans and receivables.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months alter the balance sheet date, which are classified as non-current assets. Loans and receivables are measured at amortised cost (if the effect of time value is material) using the effective interest method, less any impairment.

TRADE RECEIVABLES

Trade receivables are initially recognized at fair value, and subsequently measured at amortised cost (if the time value is material), using the effective interest method, less expected credit loss allowances. For details of expected credit losses refer to note 3.

In determining the expected credit loss, the group applies the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance for all trade receivables. The expected credit loss rates are measured by grouping trade receivables based on shared credit risk characteristics and days passed due. The expected loss allowances are recognized in the income statement within 'Cost of sales'. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against 'Cost of sales' in the income statement.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents are stated at face value and comprise cash on hand, deposits held on call with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

FINANCIAL LIABILITIES AND EQUITY INSTRUMENTS

Financial liabilities and equity instruments issued by the company are classified according to the substance of the contractual arrangements entered into, and the definitions of a financial liability and an equity Instrument. An equity Instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

SHARE CAPITAL

Ordinary shares are classified as equity.

SHARE PREMIUM

The share premium represents the amount by which the fair value of the consideration received exceeds the nominal value of shares issued. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

FAIR VALUE ESTIMATION

The company classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy divides the inputs into the following levels:

-	Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities;
-	Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly (for example, derived from prices); and
-	Level 3: inputs for the asset or liability that are not based on observable market data.

The company's operations are subject to various financial risks as set out below. Management policies have been established to identify, analyse and monitor these risks, and to set appropriate risk limits and controls. Financial Risk management is carried out in accordance with the Treasury policy which has been approved by the Supervisory Board of TomTom N.V. The written principles and policies are reviewed periodically to reflect changes in market conditions and the activities of the business.

3. FINANCIAL RISK MANAGEMENT

Credit risk

Credit risk arises primarily from cash and cash equivalents held at financial institutions and, to a certain extent, from trade receivables and contract assets. Cash balances are held with counterparties that have a credit risk rating of at least BBB-, as rated by an acknowledged rating agency. Moreover, to avoid significant concentration of exposure to particular financial institutions, we ensure that transactions and businesses are properly spread among different counterparties.

The company's exposure from its customers is managed through establishing proper credit limits and continuous credit risk assessments for each individual customer. Procedures include aligning credit and trading terms and conditions with an assessment of the individual characteristics and risk profile of each customer. This assessment is made based on past experiences and independent ratings from external rating agencies whenever available. The company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. Management actively monitors the credit risk related to these customers and takes proactive action to reduce credit limits if required.

The following table summarizes the movement in the expected credit loss allowances trade receivables:

(€ in thousands)	2018	2017
Balance as at 1 January	-872	-295
Additional receivables allowance	-414	-577
Receivables written off during the year as uncollectable	166	0
Balance as at 31 December	-1,120	-872

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due as presented below:

(€ in thousands)	2018	2017
Gross trade receivables	10,619	8,844
Of which;
Not overdue	6,510	4,415
Overdue < 3 months	2,470	3,382
3 to 6 months	933	695
Over 6 months	706	352
Gross trade receivables	10,619	8,844

The provisions recorded in 2018 and 2017 are mainly related to the overdue amounts.

Not overdue represents balances for which payment terms specified in the terms and conditions established with the group's customers have not been exceeded or balances which have not yet been invoiced.

As at 31 December 2018, the total expected credit loss allowance represented approximately 0.8% of company revenue (2017: 0.7%).

Liquidity risk

Liquidity risk is the risk that we will not be able to meet our financial obligations associated with financial instruments as they become due. Actions by counterparties who fail to fulfil their obligations may impact our cash flow and liquidity.

Our approach to managing liquidity is to ensure that we have sufficient Funds to meet our financial obligations when they fall due under both normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. An adequate liquidity position is maintained via continuously monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.

All financing needs of the company are fulfilled by its parent company.

Foreign currency risk

The company operates internationally and conducts business in multiple currencies, including the euro, the pound sterling, the Australian dollar and some other currencies. Nevertheless the company has limited foreign currency exposure as the company and each of its respective branches conclude transactions primarily in their respective functional currency.

Interest rate risk

Interest rate risk is not significant to the company.

Capital risk management

The financing policy aims to maintain a capital structure which enables the company to achieve its strategic objectives and daily operational needs, and to safeguard the company's ability to continue as a going concern.

The company has not drawn on any external borrowings. All the financing needs are fulfilled by its parent company.

4. REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue consists solely of revenue from contracts with customers. The following table presents the breakdown of the company's revenue by type:

(€ in thousands)	2018	2017 restated
Revenue by products and services
Sale of goods	31,946	25,947
Rendering of services	114,047	104,348
	145,993	130,296
Revenue by timing of revenue recognition
Goods and services transferred at a point in time	19,220	15,270
Goods and services transferred over time	126,773	115,025
	145,993	130,296

CONTRACT BALANCES

Contract related asset balances consist of trade receivables (refer to note 13). Contract related liabilities are as follows:

(€ in thousands)	2018	2017 restated
Deferred revenue	7,671	10,134
Other contract related liabilities	108	137
Total contract related liabilities	7,779	10,271
Of which:
Current	3,100	3,858
Non-current	4,679	6,413

Revenue of €15 million (2017: €14 million) was recognized from amounts included in contract liabilities at the beginning of the year. There are no amounts recognized relating to performance obligations satisfied in previous years (2017: nil)

PERFORMANCE OBLIGATIONS

As at 31 December 2018, the total of the transaction price allocated to the company's (partially) unfulfilled performance obligations is estimated at €42 million (2017: €47 million) which is reflected in deferred revenue.

The estimated future timing of revenue recognition for the above mentioned amount are as follows:

(€ in thousands)	2018	2017 restated
Within 1 year	16,387	15,287
Between 1-5 years	25,631	31,333
	42,018	46,619

5. COST OF SALES

The group's cost of sales consists of material costs for goods sold to customers, royalty and license expenses, costs attributed to contracts with customers and fulfillment costs incurred an inventory sold during the year.

6. PERSONNEL EXPENSES

(€ in thousands)	2018	2017 restated
Salaries	9,378	9,145
Soclal security costs	2,267	2,033
Pensions	615	559
Share-based compensation	134	118
Other	5,234	4,942
Total personnel expenses	17,627	16,797

Other personnel expenses include costs of secondary benefits such as health insurance, sales commissions and bonuses.

Pension scheme

The company's pension plans are classified as defined contribution plans, limiting the employer's legal obligation to the amount it agrees to contribute during the period of employment.

Remuneration policy for members of the Management Board

Members of the Management Board are employed by the patent company and receive no remuneration from the company. There are no other employees designated as key management other than the Management Board.

Average number of employees

At 31 December 2018, the company had 198 employees (2017: 195), out of which 120 (2017: 116) are employed outside the Netherlands. The average number of employees (in FTE equivalent) for the reporting period was 198 (2017: 188) spread across the following functional areas:

(In FTE)	2018	2017
Marketing	7	10
Sales, general and administrative	191	178
Total average number of employees	198	188

7. ADDITIONAL INFORMATION REGARDING OPERATING EXPENSES

Operating expenses include an amount of €3.9 million for depreciation and amortisation expenses (2017: €3.7 million).

(in € thousands)	2018	2017 restated
Amortisation	2,967	2,967
Depreciation	975	777
Total amortisation and depreciation	3,943	3,744

Amortisation expenses are included in Selling, general and administrative expenses in the income statement.

8. SHARE-BASED COMPENSATION

Stock option plans

Options are exercised at the discretion of the holder, however, they may only be exercised after the completion of a three-year vesting period. Options expire after a period of seven years following the grant date after which the options can no longer be exercised and are considered to have lapsed.

In May 2018, TomTom N.V. granted 5 thousand stock options to certain selected employees.

The table below presents the movement in the equity-settled share option reserve which is included in the share premium

(€ in thousands)	2018
Balance as at 1 January	0
Transferred and recognised directly in equity	19
Share-based expense	16
Balance as at 31 December	35

The following table summarises information about the stock options outstanding at 31 December 2018:

Year of grant	Number outstanding	Exercise price per share	Weighted average remaining life	Number exercisable	Weighted average exercise price
2015	4,700	7.83	3.35	4,700	7.83
2017	8,790	9.57	5.36	n/a	9.57
2018	5,060	8.13	6.34	n/a	8.13

A summary of the company's stock option plans and the movement during the years 2018 is presented below:

	2018
		Weighted average exercise price
	No.	(€)
Outstanding at 1 January 2018	0	0.00
Transferred	39,890	5.73
Granted	5,060	8.13
Exercised	-26,400	4.07
Outstanding at 31 December 2018	18,550	8.65

Valuation assumptions

The fair value of the stock options granted was determined by the binomial tree model. This model contains the Input variables, including the risk-free interest rate, volatility of the underlying share price, exercise price, and share price at the date of grant. The fair value calculated is allocated on a straight-line basis over the vesting period, based on the group's estimate of equity instruments that will eventually vest.

The input into the 2018 share option valuation mode) is as follows:

	2018
Share price at grant date (€)	8.30
Exercise price (C)	8.13
Expected volatility	41%
Expected average option life in years	5.30
Weighted average risk-free rate	0.68%
Expected dividends	Zero

The option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Volatility is determined using industry benchmarking for listed peer group companies, as well as the historic volatility of the TomTom NV stock. The group's employee stock options have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimate.

Phantom share plans

Phantom shares awarded vest on the condition of the employee's completion of three years' service (the vesting period) and have no other vesting criteria. On 31 December 2018 the liability with regard to the phantom share plan was €184 thousand (2017: €181 thousand).

The following table provides details of the movement in phantom shares granted in 2018 and 2017:

Number of phantom shares	2018	2017
Outstanding as at 1 January	38,530	43,855
Granted	13,960	10,430
Transferred	1,780	0
Vested and paid out	-13,770	-15,755
Outstanding as at 31 December	40,500	38,530

9. TAXATION

The activities of the company are subject to corporate income tax in several countries via the branch offices, depending on presence and activity. The applicable statutory tax rates vary between 21% and 34%. This, together with permanent differences, can cause the effective tax rate to differ from the Dutch corporate tax rate.

The total income tax expense for the reporting period was €937 thousand (2017: €491 thousand) which comprises mainly of current tax expense.

The effective tax rate, based on income before taxes was 38.3% (2017: 57.7%). The reconciliation between the tax charge on the basis of the Dutch tax rate and the effective tax rate is as follows:

	2018	2017 restated
Dutch tax rate	25.0%	25.0%
Higher weighted average statutory rate on foreign activities	8.0%	7.3%
Adjustments in relation to prior periods	1.3%	1.8%
Non-deductible expenses	4.9%	5.3%
Remeasurement of deferred tax	-2.6%	13.4%
Other	1.7%	5.0%
Effective tax rate	38.3%	57.7%

10. INTANGIBLE ASSETS

(€ in thousands)	Software	Other	Total
Cost	10	9,140	9,150
Accumulated depreciation	-1	-494	-495
Balance as at 31 December 2016	9	8,646	8,655
Amortisation	-3	-2,964	-2,967
Movements	-3	-2,964	-2,967
Cost	10	9,140	9,150
Accumulated depreciation	-4	-3,458	-3,462
Balance as at 31 December 2017	6	5,682	5,688
Amortisation	-3	-2,964	-2,967
Movements	-3	-2,964	-2,967
Cost	10	9,140	9,150
Accumulated depreciation	-7	-6,422	-6,429
Balance as at 31 December 2018	3	2,718	2,721

No impairment of intangible assets was identified during the accounting period.

11. PROPERTY, PLANT AND EQUIPMENT

(€ in thousands)	Furniture and Fixtures	Computer Hardware	Other	Total
Cost	109	125	509	743
Accumulated depreciation	-25	-65	-100	-190
Balance as at 31 December 2016	84	60	409	553
Additions	0	0	341	341
Depreciation charges	-29	-38	-170	-237
Movements	-29	-38	171	104
Cost	110	126	757	993
Accumulated depreciation	-55	-104	-177	-336
Balance as at 31 December 2017	55	22	580	657
Additions	0	4	1,031	1,035
Depreciation charges	-54	-19	-388	-461
Currency translation differences	0	0	-94	-94
Movements	-54	-15	549	480
Cost	110	130	1,864	2,104
Accumulated depreciation	-109	423	-735	-967
Balance as at 31 December 2018	1	7	1,129	1,137

No impairment of property, plant and equipment was identified during the accounting period.

12. LEASE ASSETS AND LIABILITIES

Lease assets

The company leases assets including buildings, leased cars and, to a limited extent, office equipment. Key movements relating to lease balances are presented below:

(€ in thousands)	Leased buildings	Leased vehicles	Total
2017 restated
Balance as at 1 January 2017 restated	698	708	1,406
Additions	0	319	319
Depreciation charges	-152	-387	-539
Balance as at 31 December 2017 restated	546	646	1,192
2018
Additions	0	143	143
Depreciation charges	-151	-363	-514
Balance as at 31 December 2018	395	391	786

Lease buildings

Buildings are leased for office space which typically run for a period of 2-5 years. Some leases for office buildings include extension options exercisable up to one year before the end of the cancellable lease term. Typically, the option to renew the lease is for an additional period of the same duration alter the end of the contract term and are at the option of the company as lessee.

At the end of the year, the company had no outstanding options to extend lease contracts (2017: none).

Lease payments are in substance fixed and the company had no leases which contained variable lease payments. Most real estate leases include annual escalation clauses with reference to an Index or contractual rate.

Other leases

The company leases vehicles for qualifying employees with a standard lease term of 4 years. The company does not purchase or guarantee the value of leased vehicles.

In some cases the company leases furniture and office equipment with terms of 1-3 years. The group considers these assets to be of low-value or short-term in nature and therefore no right-of-use assets and lease liabilities are recognized for these leases.

Lease liabilities

The maturity of the lease liabilities is as follows:

(€ in thousands)	2018	2017 restated
Within 1 year	477	480
1- 5 years	783	985
Lease liabilities	1,260	1,465

The total interest expense an lease liabilities and the total cash outflow relating to leases in 2018 was €10 thousand and €482 thousand respectively (2017: €11 thousand and €532 thousand).

13. TRADE RECEIVABLES

(€ in thousands)	2018	2017
Gross accounts receivable	10,619	8,844
Expected credit losses	-1,120	-872
Trade receivables (net)	9,499	7,972

All receivables are expected to be recovered within a year.

Trade accounts receivable include amounts denominated in the following major currencies:

(€ in thousands)	2018	2017
EUR	7,197	6,157
GBP	1,470	1,312
Other	832	504
Trade receivables (net)	9,499	7,972

14. OTHER RECEIVABLES AND PREPAYMENTS

(€ in thousands)	2018	2017
Prepayments	0	57
Other receivables	68	868
Total other receivables	68	925

The carrying amount of the other receivables and prepayments approximates their fair value. No interest is calculated on intercompany positions which are not overdue.

15. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise of cash held by the company which are available for immediate use. The carrying amount of cash and cash equivalents approximates their fair value.

16. TRANSACTIONS UNDER COMMON CONTROL

There were no common control transactions in 2018.

Effective 1 July 2017, the sales activities of an affiliated company (Inalise BV) were contributed to and merged with the activities of the company. The net assets acquired as part of this transaction amounting to €340 thousand has been recorded as an increase to the share premium. The acquired business does not contribute materially to the results of the company.

17. SHAREHOLDER'S EQUITY

Share capital

At 31 December 2018 and 31 December 2017, the company's issued and fully paid share capital was €200 comprising of 20,000 ordinary shares with a par value of €0.01 per share. No special rights, restrictions and other conditions are attached to the ordinary shares.

Share premium

The share premium of the company at 31 December 2018 was €12,941 thousand (31 December 2017: €12,906 thousand).

18. PAYABLES/RECEIVABLES DUE FROM/TO AFFILIATED COMPANIES

Receivables from group companies consists of €48 million (2017: €28 million) other receivables and €4.6 million (2017: €0.6 million) trade receivables due from the parent company. interest is charged on the balance of other receivables based on the applicable 1 month interbank offered rate plus 0.26% (2017: 0.20%). There is no specific repayment period and the amounts are presented as current.

Payables to group companies of €42 million (2017: €30 million) results mainly from trade activities with TomTom Telematics B.V. Interest is calculated based on 1 month interbank offered rate plus a margin that varies between 0% and 0.3% (2017: 0% and 0.2%).

19. ACCRUALS AND OTHER LIABILITIES

Accruals comprises the following:

(€ in thousands)	2018	2017 restated
Personnel expense related accruals	2,170	1,584
Taxes and social security	2,913	1,440
Provisions	148	101
Other accruals	388	324
Total accruals and other liabilities	5,619	3,449

20. COMMITMENTS AND CONTINGENT LIABILITIES

Following the adoption of IFRS 16 (as explained in note 2) operating lease commitments are reflected in the balance sheet as lease liabilities. For further disclosures refer to note 12.

The company forms a fiscal unity with certain other Dutch subsidiaries of TomTom N.V. Each company within the fiscal unity is jointly and severally liable for fiscal liabilities of the whole fiscal unity.

Based on available information, there were no other contingencies that management expects to have a material adverse effect on the company's financial position as of 31 December 2018.

21. FINANCIAL INSTRUMENTS

The company holds the following financial instruments for which additional disclosures are provided in the notes as indicated:

(€ in thousands)	Note	2018	2017
Financial assets
Financial assets at amortised cost
Trade receivables	13	9,499	7,972
Receivables from group companies	18	52,736	28,832
Cash and cash equivalents	15	847	6,019
Total		63,082	42,823
Financial liabilities
Financial liabilities at amortised cost
Trade payables		351	400
Payables to group companies	18	42,161	29,547
Lease liabilities	12	441	477
Total		42,953	30,424

22. RELATED PARTY TRANSACTIONS

In the normal course of business, the company purchases hardware and services from its parent company TomTom Telematics B.V. which accounts for the majority of the cost of sales. These transactions are conducted on an arm's length basis. In addition, interests are charged on outstanding intercompany receivable/payable balances with other affiliated companies when they have not been settled alter the due dates.

There are no transactions outside the normal course of business.

23. AUDITOR'S REMUNERATION

The total remuneration to Ernst & Young Accountants LLP for the audit of the company of 2018 amounted to €23,887 (2017: €23,409).

24. SUBSEQUENT EVENTS

There has been no subsequent event from 31 December 2018 to the date of issue of these financial statements that requires adjustment to or disclosure in these financial statements.

25. APPROPRIATION OF RESULT FOR THE FINANCIAL YEAR 31 DECEMBER 2017 AND PROPOSED APPROPRIATION OF RESULT FOR THE FINANCIAL YEAR 31 DECEMBER 2018

The 2017 annual report of the company has been adopted by the shareholder an 25 July 2018. The shareholder has approved the appropriation of 2017 result in full to the retained earnings in accordance with the Management Board's proposal.

The Management Board proposes to add the net result for the financial period 2018 amounting to €1.5 million in full to the retained earnings.

Amsterdam, 21 June 2019

MANAGEMENT BOARD:

Thomas Schmidt

Michiel Wesseling

OTHER INFORMATION

Statutory provision with respect to appropriation of results

According to article 14 of the company's Articles of Association, the company's result is freely at the disposal of the shareholders, provided that total shareholders' equity exceeds the called-up and paid-up capital of the company, increased by legal and statutory reserves.

List of branches

The company operates through the following branches in various countries in EMEA and Asia Pacific region:

Branch	Country of incorporation and residence
TomTom Telematics Sales B.V. Australian branch	Australia
TomTom Telematics Sales B.V. Austrlan branch	Austria
TomTom Telematics Sales B.V. Belgian branch	Belgium
TomTom Telematics Sales BV. French branch	France
TomTom Telematics Sales B.V. German branch	Germany
TomTorn Telematlcs Sales B.V. Italian branch	Italy
TomTom Telematics Sales BM South African branch	South Africa
TomTom Telematics Sales B.V. Swiss branch	Switzerland
TomTom Telematics Sales B.V. UK branch	United Kingdom

Auditor's report

Reference is made to the auditoes report accompanying this document.

Independent auditor's report

To: the shareholder and management board of TomTom Telematics Sales B.V.

Report on the audit of the financial statements 2018 included in the annual report

Our opinion

We have audited the financial statements 2018 of TomTom Telematics Sales B.V., based in Amsterdam, the Netherlands.

In our opinion the accompanying financial statements give a true and fair view of the financial position of TomTom Telematics Sales B.V. as at 31 December 2018, and of its result and its cash flows for 2018 in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.

The financial statements comprise:

-	The balance sheet as at 31 December 2018
-	The following statements for 2018: statement of income and other comprehensive income, statement of changes in equity and statement of cash flows
-	The notes comprising a summary of the significant accounting policies and other explanatory Information

Basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the "Our responsibilities for the audit of the financial statements" section of our report.

We are independent of TomTom Telematics Sales B.V. in accordance with the Verordening inzake de onafhankelijkheld van accountants bij assurance-opdrachten (VIO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).

We belleve the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Report on other information included in the annual report

In addition to the financial statements and our auditor's report thereon, the annual report contains other information that consists of:

-	Other information pursuant to Part 9 of Book 2 of the Dutch Civil Code

Based on the following procedures performed, we conclude that the other Information:

-	Is consistent with the financial statements and does not contain material misstatements
-	Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code

We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other Information contains material misstatements. By performing these procedures, we comply with the requirements of the Dutch Standard 720. The scope of the procedures performed is less than the scope of those performed in our audit of the financial statements.

Management is responsible for the preparation of the other information pursuant to Part 9 of Book 2 of the Dutch Civil Code.

Description of responsibilities for the financial statements

Responsibilities of management for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with EU-1FRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal control as management determines Is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the financial statements, management is responsible for assessing the company's ability to continue as a going concern. Based on the financial reporting frameworks mentioned, management should prepare the financial statements using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. Management should disclose events and circumstances that may cast significant doubt on the company's ability to continue as a going concern in the financial statements.

Our responsibilities for the audit of the financial statements

Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion.

Our audit has been performed with a high, but not absolute, level of assurance, which means we may not have detected all material errors and fraud.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

We have exercised professional judgment and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements. Our audit included among others:

-	Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud 15 higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
-	Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control
-	Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management
-	Concluding an the appropriateness of management's use of the going concern basis of accounting, and based an the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt an the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based an the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause a company to cease to continue as a going concern
	Evaluating the overall presentation, structure and content of the financial statements, including the disclosures
	Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit.

Eindhoven, 21 June 2019

Ernst & Young Accountants LLP

P.J.A. Gabriëls