Slide 1: Fourth Quarter and Full Year 2007 Financial Results
TomTom Fourth Quarter and Full Year 2007 Financial Results 21 February 2008 Harold Goddijn - CEO Marina Wyatt - CFO © 2008 TomTom Fourth Quarter and Full Year 2007 Financial Results
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 highlights
Fourth quarter highlights • Record revenue of €634 million revenue (4.3 million PNDs shipped) • Gross margin of 42% and operating margin of 23% • Record net profit of €107 million; fully diluted EPS €0.87 • Cash from operations of €155 million • European market share 49%; US market share 27% • TomTo
Slide 4: Update on Tele Atlas acquisition
Update on Tele Atlas acquisition • On 18 November 2007, TomTom launched a new cash offer of €30 per Tele Atlas share • TomTom purchased 29.9% of Tele Atlas' issued share capital • On 28 November 2007, the European Commission announced start of phase II review – we still expect to have reasonable ins
Slide 5: Rapid market growth
Rapid market growth • Strong growth in 2007 – European PND market grew 75% year-on-year to 15 million units – US PND market close to quadrupled year-on-year to 9.5 million units • Clear seasonal trend with significant underlying growth • Continued strong growth in 2008 expected to 38 million units 1
Slide 6: Strong market share performance
Strong market share performance • TomTom’s European market share in Q4 2007 was 49%; for the full year 48% North American market share over the last three years • TomTom’s North American market share in Q4 2007 was 27%; for the 25% full year 25% 20% • For 2008 our target is to maintain our leading m
Slide 7: Broad product portfolio line up
Broad product portfolio line up • Key to our success is our ability to launch attractive and innovative products • In 2007 TomTom completely refreshed the entire product line up • Including the introduction of a new mid range product: TomTom ONE XL • Innovation is showcased by introducing important
Slide 8: TomTom Map Share
TomTom Map Share™ • More than one million Map Share contributions • Great relevance - these are the corrections our customers care about and 66% of the corrections have an immediate effect on their devices • Corrections are available free to all customers on a daily basis via TomTom HOME, instantly
Slide 9: Roll-out of HD Traffic according to plan
Roll-out of HD Traffic™ according to plan • Always the smartest route with the world’s most advanced traffic information service • HD Traffic works straight out of the box - just turn on the device for a live connection to the 2008 2007 TomTom Traffic Centre; no installation, 2008 configuration, act
Slide 10: TomTom 2008 priorities
TomTom 2008 priorities Grow usage, expand the addressable market and develop a replacement market • Deliver extensive roadmap of new products and services • Maintain European market share at c.50% and increase it in the US to c.30% • Improve the quality of travel time prediction through HD Traffic a
Slide 11: Fourth Quarter 2007 Financials
Fourth Quarter 2007 Financials © 2008 TomTom Fourth Quarter and Full Year 2007 Financial Results
Slide 12: Financial summary – quarter
Financial summary – quarter in € millions Q4 ’07 Q4 ’06 ∆ Q3 ’07 Revenue 634 478 33% 427 Gross profit 268 218 23% 208 Gross margin 42% 46% - 49% Operating profit 144 126 15% 133 Operating profit margin 23% 26% - 31% Net profit 107 80 33% 99 Net profit margin 17% 17% - 23% 12 © 2008 TomTom Fourth Qua
Slide 13: Financial summary – full year
Financial summary – full year in € millions FY 2007 FY 2006 ∆ Revenue 1,737 1,364 27% Gross profit 764 579 32% Gross margin 44% 42% Operating profit 428 340 26% Operating margin 25% 25% Net profit 317 222 43% Net profit margin 18% 16% 13 © 2008 TomTom Fourth Quarter and Full Year 2007 Financial Resu
Slide 14: Revenue by product and geography
Revenue by product and geography By product group By geography FY 2007 FY 2007 5% Rest of world 4% 1% North America 16% Europe 80% 94% Q4 2007 Q4 2007 4% 1% Rest of world 6% North America 21% Europe 73% 95% PNDs PDA/smartphone solutions Other 14 © 2008 TomTom Fourth Quarter and Full Year 2007 Financ
Slide 15: Fourth quarter revenue analysis
Fourth quarter revenue analysis Revenue (in € millions) ASP PNDs (in €) 700 634 28 4 200 600 230 100 184 141 500 478 26 10 427 23 0 6 Q4 '06 Q3 '07 Q4 '07 400 Units PNDs (in '000s) 300 602 5,000 4,000 441 200 398 3,000 2,000 4,278 100 1,000 1,915 2,160 0 0 Q4 '06 Q3 '07 Q4 '07 Q4 '06 Q3 '07 Q4 '07 P
Slide 16: Operating expenses overview
Operating expenses overview in € millions Q4 ‘07 Q3 ‘07 Q4 ‘06 R&D 19.5 16.5 12.8 % of revenue 3.1% 3.9% 2.7% Marketing 62.1 21.1 44.6 % of revenue 9.8% 4.9% 9.3% Other SG&A 35.2 28.3 28.6 % of revenue 5.5% 6.6% 6.0% Operating expenses 116.8 65.9 86.1 % of revenue 18.4% 15.4% 18.0% Accounting charge
Slide 17: Earnings overview
Earnings overview in € millions Q4 ‘07 Q3 ‘07 Q4 ‘06 Operating profit 144.4 133.5 125.7 Interest income (expenses) 4.3 6.0 2.3 Exchange rate gain (loss) (4.5) (5.7) (13.5) Result of associate 0.8 Taxation (38.3) (35.2) (34.0) effective tax rate 26.4% 26.3% 29.7% Net profit 106.6 98.5 80.4 Average di
Slide 18: Cash flow overview
Cash flow overview in € millions Q4 ‘07 Q3 ‘07 Q4 ‘06 Operating profit 144 133 126 Depreciation and amortisation 7 6 5 Other (1) 1 (1) Changes to provisions 19 10 7 Changes in working capital (14) 27 (5) Cash generated from operations 155 178 132 Interest received 5 6 4 Interest paid (0) (0) (1) Tax
Slide 19: Balance sheet
Balance sheet in € millions Q4 ‘07 Q3 ‘07 Q4 ‘06 Non-current assets Intangible assets 56 57 39 Property, plant & equipment 18 14 8 Deferred tax assets 24 18 12 Investment in associate 817 - - Current assets Inventories 131 124 123 Receivables, prepayments & financial instruments 460 280 283 Cash and
Slide 20: 2008 full year financial outlook
2008 full year financial outlook • European PND market of 21 million units • North American PND market of 17 million units • We expect our volumes of PNDs to grow to between 14 million and 15 million units worldwide • Full year revenue guidance range of between €2.0 billion and €2.2 billion • Full y
Slide 21: Questions?
Questions? © 2008 TomTom Fourth Quarter and Full Year 2007 Financial Results
Slide 22: Annex
Annex For further information please contact TomTom Investor Relations Tel: +31 20 757 5194 ir@tomtom.com www.investors.tomtom.com © 2008 TomTom Fourth Quarter and Full Year 2007 Financial Results
Slide 23: Accounting charge for share-based compensation
Accounting charge for share-based compensation Under IFRS, share options have to be accounted in the P&L through a specific charge. TomTom accounts for this charge as follows: – at the date of issuance, options are valued by a Black & Scholes model and the calculations are reviewed by our auditors –
Slide 24: Outstanding shares
Outstanding shares Common shares outstanding end of Q3 2007 113,482,059 Common shares outstanding end of Q4 2007 121,785,186 Average shares outstanding end of Q4 2007 115,649,722 Share options as of end of Q3 2007 10,093,428 Exercised share options in Q4 2007 146,877 Anti-dilutive shares options 60,
Slide 25: Share options vesting schedule
Share options vesting schedule Number of options in 2008-2010 (in ‘000s) 10 Aug 10 Nov 28 Feb 9 May 8 Aug 9 Nov 8 Mar 2008 2008 2009 2009 2009 2009 2010 1,103 €26.44 3,308 €28.82 90 €25.50 113 €37.68 188 €28.58 1,668 €33.96 30 €30.91 At 21 February 2008 there were 3.1m vested options; not exercised
Slide 26: Explanation of accounting result associates
Explanation of accounting result associates Tele Atlas net loss Q3 YTD 2007 -/- € 11,6m Expected full year result of Tele Atlas¹ € 1,5m Estimated result Tele Atlas Q4 2007 € 13,1m Additional amortisation (after tax) resulting from PPA² € 8,7m Net profit Tele Atlas adjusted for TomTom PPA corrections
Slide 27: End
End © 2008 TomTom Fourth Quarter and Full Year 2007 Financial Results