Slide 1: TomTom N.V. Fourth quarter 2009 results
TomTom N.V. Fourth quarter 2009 results Harold Goddijn – CEO Marina Wyatt - CFO
Slide 2: Disclaimer
Disclaimer This Presentation has been produced by TomTom N.V. (the “Company”) and is furnished to you solely for your information. This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and the industry in which it operate
Slide 3: Fourth quarter 2009 review
Fourth quarter 2009 review Strong operating results 21% EBIT margin; €186 million net cash flow from operating activities; net debt €442 million Revenue growth 46% sequentially and 1% growth year on year; record number of PNDs shipped Growth of new 175% growth Other revenue; Automotive, WORK revenue
Slide 4: Market size and share PNDs
Market size and share PNDs 10 2006 Europe 2007 Market share growth in seasonally strong Q4 8 2008 2009 6 Europe 4 – Q4 ‘09 market size 4.3 million 2 13% decline year on year, 13% growth sequentially – Market share 46% (Q3 ’09: 45%) Q1 Q2 Q3 Q4 10 2006 North America 2007 2008 North America 8 2009 – Q
Slide 5: Operational highlights
Operational highlights TomTom PNDs Start introduced Automotive business expanding – Carminat‐TomTom upgrade with IQ Routes and lane separation – Doblo second Fiat model with Blue&Me‐TomTom – 10% market share in Europe High demand TomTom iPhone app. – 100,000 downloads in the quarter Strong growth WO
Slide 6: TomTom in 2010
TomTom in 2010 Deliver great innovation Continued focus on more productive organisation – Split commercial and content production activities Tele Atlas Shorter time to market for content – 48‐hour update cycle Optimise traffic information – Geographic expansion – Predictive information Advanced Driv
Slide 7: Outlook 2010
Outlook 2010 Broadly flat revenue and earnings per share compared to 2009 Increased investment in R&D and Marketing Further growth of automotive and fleet management revenue streams 7 © 2010 TomTom
Slide 8: Revenue analysis
Revenue analysis Broadening the revenue base Revenue (in € millions) ASP PNDs (in €) 600 120 528 533 80 16% 100 99 112 99 25% 40 79 400 368 0 365 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 25% 30% 84% 213 Units PNDs (in millions) 200 75% 6.0 34% 75% 70% 4.0 66% 4.4 5.1 2.0 2.5 2.6 1.4 0 0.0 Q4 '08 Q1 '09 Q2
Slide 9: Earnings overview
Earnings overview (normalised; excluding impairment, one-offs and restructuring charges) Q4 ’09 Q4 ’08 Q3 ’09 in € millions Gross result 245 238 191 Gross margin 46% 45% 52% Operating expenses 131 168 122 Operating result 113 70 70 Operating margin 21% 13% 19% Interest result (11) (28) (27) Other fi
Slide 10: OPEX reduced by €127 million in 2009
OPEX reduced by €127 million in 2009 (normalised; excluding impairment, one-offs and restructuring charges) 60 40 -50% 160 Marketing 20 0 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 120 60 -14% 40 Total SG&A 20 80 OPEX -22% 0 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 40 40 -3% 20 R&D 0 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q
Slide 11: Cash flow
Cash flow in € millions Q4 ’09 Q4 ’08 Q3’09 Operating result 111 (994) 70 Depreciation and amortisation 26 1,076 26 Financial (losses) / gains (4) 56 9 Other 12 4 1 Changes in working capital 61 108 8 Cash generated from operations 205 251 114 Interest received 1 2 0 Interest paid (9) (11) (23) Tax
Slide 12: Balance sheet
Balance sheet in € millions 31 Dec '09 30 Sept '09 31 Dec '08 Goodwill 855 855 855 Intangible assets 986 978 1,011 Property, plant & equipment 43 45 53 Investments 8 7 6 Deferred tax assets 28 37 33 Inventories 67 78 145 Receivables, prepayments & financial instruments 331 268 343 Cash and equivalen
Slide 13: Financial overview
Financial overview Gross and Net Debt Net debt/LTM EBITDA Covenant 4 Net debt / LTM EBITDA 1,553 3.5 3.5 1,400 1,388 1,391 1,394 1,326 3.1 3 3.0 1,109 1,159 1,000 1,006 996 2.5 790 2 2.0 2.0 2.0 2.0 600 599 1.3 442 1 200 Q2 Q3 Q4 H1 H2 H1 H2 H1 H2 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 '09 '09 '0
Slide 14: Questions?
Questions? Tomtom ff
Slide 15: Impact of FX rate changes
Impact of FX rate changes Q4 '09 Q3 '09 Q4 '08 in € millions rates rates rates Revenue 533 541 556 Cost of sales (289) (298) (315) Gross margin 46% 45% 43% Gross profit 245 243 240 Average rates US dollar 1.47 1.42 1.33 GB pound 0.90 0.86 0.80 AUS dollar 1.65 1.72 1.88 15 © 2010 TomTom
Slide 16: Market size Europe and North America
Market size Europe and North America Volume (1000's) 2009 Q1 Q2 Q3 Q4 2009 Europe 3,177 3,704 3,761 4,263 14,906 North America 2,641 3,470 3,065 8,630 17,806 Volume (1000's) 2008 Q1 Q2 Q3 Q4 2008 Europe 3,797 4,191 4,130 4,918 17,036 North America 2,350 3,724 3,241 8,005 17,319 Volume (1000's) 2007
Slide 17: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q3 ‘09 221,687,391 Common shares outstanding end of Q4 ‘09 221,712,762 Average shares outstanding end of Q4 ‘09 221,699,920 In the money share options end of Q3’09 7,091,972 In the money share options end of Q4’09 7,033,730 Average dilutive share o
Slide 18: Full year earnings overview
Full year earnings overview (normalised; excluding impairment, one-offs and restructuring charges) 2009 2008 in € millions Gross result 731 871 Gross margin 49% 50% Operating expenses 500 626 Operating result 231 244 Operating margin 16% 14% Interest result (71) (103) Other finance result (41) 73 Re
Slide 19: Full year cash flow
Full year cash flow in € millions 2009 2008 Operating result 221 (801) Depreciation and amortisation 106 1121 Financial (losses) / gains (20) 70 Other 6 17 Changes in working capital 116 56 Cash generated from operations 430 463 Interest received 3 13 Interest paid (67) (43) Tax (paid) / received (2
Slide 20: Full year impact of FX rate changes
Full year impact of FX rate changes in millions 2009 rates 2008 rates Revenue 1,480 1,496 Cost of sales (749) (737) Gross margin 49% 51% Gross profit 731 759 Average rates US dollar 1.39 1.48 GB Pound 0.90 0.78 AUS dollar 1.80 1.72 20 © 2010 TomTom