Slide 1: Q2 2010 results
T TomTom T Q2 2010 results lt Harold Goddijn - CEO & Marina Wyatt - CFO | 21 July 2010
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 forward looking statements relating to the business, business financial performance and results of the Company and the ind
Slide 3: Second quarter 2010 highlights
Second quarter 2010 highlights › Continued growth of new revenue lines › Strong increase in Content & Services revenue › Net result increased by 69% to €34 million › Net cash flow from operating activities of €67 million › New premium PND range announced 3
Slide 4: PND market size and share
PND market size and share* Europe and North America › Market share growth in our main geographies › Market size > Europe 3.1 million units (Q2 ‘09: 3.7 million) > North America 3.3 million units (Q2 (Q ‘09: ‘ 3.5 million)) Europe North America 50% 50% 40% 40% 30% 49 30% 20% 44 % 20% 10% % 19 23 0% 1
Slide 5: Operational developments
Operational developments Increasing our scope › Connected navigation goes mainstream > 33 countries across Europe › Continued strong take up of in in-dash dash navigation solutions > 40% take up rate at Renault › WORK continues to grow its subscriber base > Subscriber base increased 42% year on year
Slide 6: Content and services
Content and services Leveraging our unique assets › HD Traffic recognised for its superior quality › HD Flow and HD Route times launched › Latest map release with expanded coverage › Partner agreement with Twitter 6
Slide 7: Bringing great products to the market
Bringing great products to the market › GO 1000 LIVE TomTom GO 1000 LIVE with accelerated routing technology › Accelerated routing technology › New software architecture › Bring innovation to the market faster 7
Slide 8: Revenue analysis
Revenue analysis Broadening revenue base •› Strong growth of new revenue lines › Automotive and WORK grow 82% and 42% respectively •› Content & Services revenue increased part of the mix › Content & Services revenue grew 22% to €88 million; 24% of total revenue (Q2 ‘09: 09: 20%) Revenue Q2 2010: € 3
Slide 9: Earnings overview
Earnings overview in € millions Q2 '10 Q2 '09 Q1 '10 Gross result G l 185 188 144 Gross margin 51% 51% 54% Operating expenses 135 131 127 Operating result 50 57 17 Operating margin 14% 15% 6% Interest result (9) (15) (8) Other finance result 5 (17) (6) R lt associates Result i t (2) 1 1 Result befor
Slide 10: Operating expenses
Operating expenses 60 37 41 40 160 40 34 31 R&D 20 134 135 0 131 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 127 122 120 30 26 24 22 21 20 15 Total Marketing OPEX 10 0 80 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 60 49 52 51 48 46 40 SG&A 20 40 0 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10
Slide 11: Cash flow
Cash flow in € millions Q2 '10 Q2 '09 Q1 '10 Operating O ti result lt 50 57 17 Depreciation and amortisation 26 29 27 Financial gains / (losses) 4 (5) (10) Other 7 3 (3) Changes in working capital (5) 14 (54) Cash generated from operations 82 98 (23) Interest received 0 1 0 Interest paid (5) (3) (6)
Slide 12: Balance sheet
Balance sheet in € millions 30 Jun '10 31 Mar '10 Goodwill G d ill 855 8 855 8 Intangible assets 965 978 Property, plant & equipment 39 39 Investments 7 9 Deferred tax assets 24 25 Inventories 63 61 Receivables, prepayments & financial instruments 315 222 Cash and equivalents 367 313 Total assets 2
Slide 13: Questions?
Questions? TOMTOMY
Slide 14: Impact of FX rate changes
Impact of FX rate changes Q2 2010 results based on current exchange rates and that of previous quarters compared in € millions Q2 '10 Q2 '09 Q1 '10 rates rates rates Revenue 362 356 355 Cost of sales 177 172 164 Gross margin 51% 52% 54% Gross profit 185 184 192 Average rates in € US dollar 1.30 1.36
Slide 15: Market size Europe and North America
Market size Europe and North America* Volume (('000s) 000s) Q1 '10 10 Q2 '10 10 Q3 '10 10 Q4 '10 10 2010 Europe 2,767 3,064 North America 2,567 3,320 Volume ('000s) Q1 '09 Q2 '09 Q3 '09 Q4 '09 2009 Europe 3,177 3,704 3,761 4,252 14,895 North America 2,641 3,470 3,065 8,619 17,795 * PND sell-out numb
Slide 16: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q1 ‘10 221,718,074 Common shares outstanding end of Q2 ‘10 221,718,074 Average shares outstanding end of Q2 ‘10 221,718,074 In the money share options as of Q1 ’10 7,033,730 In the money share options as of Q2 ’10 5,673,001 Average dilutive share o