Tomtom Nv · EURONEXT:TOM2

Tomtom Nv — Investor Day (2022)

104 slides from Tomtom Nv's investor day presentation, 2022

Slide 1: Strategy Update
Strategy Update Harold Goddijn | Chief Executive Officer & Co-Founder
Slide 2: Amsterdam, Netherlands - Current map
Amsterdam, Netherlands Current map
Slide 4: Astana, Kazakhstan - Current map
Astana, Kazakhstan Current map
Slide 6: Lawrence (KS), USA - Current map
Lawrence (KS), USA Current map
Slide 8: Makassar, Indonesia - Current map
Makassar, Indonesia Current map
Slide 10: Tokyo, Japan - Current map
j Tokyo, Japan Current map ] Shinjuku
Slide 12: Disneyland Paris, France - Current map
Disneyland Paris, France Current map
Slide 14: TomTom
SO tomtom
Slide 15: The New Maps Platform
The New Maps Platform Michael Harrell | VP Engineering Laurens Feenstra | VP Product Maps Platform, Directions & Search Maps Platform, Directions & Autonomous Driving
Slide 16: The world of mapmaking is changing dramatically
The world of mapmaking is changing dramatically 18
Slide 17: Growing interest in OSM
Growing interest in OSM Total Number of Paid Editors (ever) 5,000 4,000 3,000 2,000 4,000 0 2016 ‘Amazon Apple Grab Facebook Kaart TomTom Mapbox Uber Lyft Microsoft Telenav a Growth of Paid Editing Teams based on OSM Account Join Date Bolt Nextbilion.ai Zartico Digital Egypt Neshan Lighteyphers VK M
Slide 18: Limitations of Current Map Options
Limitations of Current Map Options Build-it-yourself Build it Yourself Proprietary Map Open Data Costly and time-consuming Limited control Slower quality checks € billions Difficult to add features and fix Lacks the speed and rigor of the map proprietary solutions Not a differentiator Limited collab
Slide 19: Bringing the best resources of the world together
Automotive OEMs Bringing the best resources of the world together Leading Tech Open-source Companies Community 21
Slide 20: Rising expectations for maps
Rising expectations for maps … richer map features … with global coverage … at higher accuracy and quality levels … provided in minutely updates 22 ©TomTom / ©OpenStreetMap
Slide 21: TomTom Maps Sources
TomTom Maps Sources Faster, fresher content ensures the rapid ingestion and publishing of map changes Open Data including OSM >40k active monthly OSM contributors and >2k corporate editors Probes from >600 million connected devices Sensor Derived Observations covering 70 million kilometers and 630 m
Slide 22: Map data improvement on visualization
Map data improvement on visualization > Open data bring new levels of Monza, Italy richness to the map Current map > Updated buildings, parks, urban zones, water features Monza, Italy New map 24 ©TomTom / ©OpenStreetMap
Slide 23: Better map, better traffic
Better map, better traffic Teresina, Brazil > A significant improvement for derived Traffic flow based products like traffic on current map > More complete and accurate roads across even more geographies Teresina, Brazil Traffic flow based on new map 25 ©TomTom / ©OpenStreetMap
Slide 24: Daily Automated Observations from Vehicles
Daily Automated Observations from Vehicles Sensor-derived observations improve ADAS and ISA content, for instance Daily Camera Detections > 650 million signs > 70 million kilometers of roads > 60 countries Rapid Growth > Partnerships with major OEMs > Doubling of data volumes in 8 months 26 ©TomTom
Slide 25: Lane-Level Geometry
Lane-Level Geometry > SDO-derived lane geometry at scale > Key enabler for ADAS and automated driving applications 27 ©TomTom / ©OpenStreetMap
Slide 26: Build for Collaboration
Build for Collaboration feedback loops, private & shared layers Launching custom layers in 2023 > A base map, quality-controlled and standardized > Value-add layers & feedback loops > Private and shared layers > Features and software work natively with private layers 28
Slide 27: TomTom's New Maps
TomTom’s New TomTom’s New Maps Maps accelerating businesses & accelerating businesses & enabling collaboration enabling collaboration 29
Slide 28: TomTom
SO tomtom
Slide 29: Driving Growth in Automotive
Driving Growth in Automotive Antoine Saucier | Managing Director Automotive
Slide 30: Product portfolio serving multiple segments
Passenger cars Commercial vehicles Two-wheelers Product portfolio serving multiple segments Navigation ADAS & Automated Driving Maps Software Services 32
Slide 31: TomTom market share in Europe
TomTom market share in Europe Map Navigation Software Traffic 25% 25% 35% Current 35% 75% 75% +5% +15% Stable 2025 40% 40% 40% 40% 75% 75% TomTom Others 33
Slide 32: TomTom market share in North America
TomTom market share in North America Map Navigation Software Traffic 15% 15% 15% 15% 30% 30% Current +5% +5% +10% 20% 20% 20% 20% 40% 2025 40% TomTom Others 34
Slide 33: Product portfolio serving multiple segments
Passenger cars Commercial vehicles Two-wheelers Product portfolio serving multiple segments Navigation ADAS & Automated Driving Maps Software Services 35
Slide 34: Navigation take rate continues to grow
Navigation take rate continues to grow Navigation take rate (in % of total global car sales) Navigation 80% Non-navigation 50% 40% 2021 2025 2030 Source: Strategy Analytics, S&P Global, TomTom estimates 36
Slide 35: Addressable market size growing toward €1.5 billion
Addressable market size growing toward €1.5 billion Automotive location technology market excluding China (in € billions) Key market drivers 1.5 +9% ADAS & Automated driving > Safety regulations 1.0 > Level 2 and 3 driving automation > Hazard warning services Navigation > Vehicle connectivity > Elec
Slide 36: Electrification is transforming the navigation experience
Electrification is transforming the navigation experience Growing market opportunity Leading EV navigation portfolio Well-positioned with EV OEMs EV market share > New EV models with navigation (as a % of total car production, co-developed by VW CARIAD and global excl. China) TomTom launching in 202
Slide 37: Advanced Driver Assistance Systems drive higher take rates
Advanced Driver Assistance Systems drive higher take rates Growing market opportunity Leading ADAS portfolio Well-positioned with OEMs Automation level (as a % of total car production, > OEMs starting to push for 100% navigation take rate driven by ISA global excl. China) regulation and market trend
Slide 38: Location technology enables the software-defined vehicle
Location technology enables the software- defined vehicle > Customer experience > New business models enabling recurring revenues 40
Slide 39: Map as the key enabler for in-car experience
Map as the key enabler for in-car experience Coverage Content Collaboration 41 ©TomTom / ©OpenStreetMap
Slide 40: Long-term partnerships on location technology required
Long-term partnerships on location technology required From supplier … … to partner Stand-alone and ship-and-forget Continuous software updates product Licensing model with one-off Platform ecosystem model with revenue recurring revenue Traditional procurement model Long term partnership model (RFQ)
Slide 41: Backlog fueled by recent wins
Backlog fueled by recent wins Significant deals drive TomTom Automotive growth VW CARIAD – Navigation Software & Traffic Hyundai – ADAS Maps & Traffic Fisker – Digital Cockpit & Full-stack navigation Global OEM (to be announced) – Full-stack navigation 43
Slide 42: TomTom
SO tomtom
Slide 43: New Opportunities
New Opportunities Mike Schoofs | Managing Director Enterprise
Slide 44: The growing location technology market and customer needs
1 The growing location technology market and customer needs 2 How will the new TomTom Maps solve these needs? 3 What does it mean for TomTom’s opportunities and growth? 46
Slide 45: The growing location technology market and customer needs
1 The growing location technology market and customer needs 2 How will the new TomTom Maps solve these needs? 3 What does it mean for TomTom’s opportunities and growth? 47
Slide 46: The location technology market
The location technology market Location technology market size excluding Automotive (in € billions) 2.5 >7% 2.0 2021 2025 48
Slide 47: Location is needed everywhere
Location is needed everywhere At least 7 out of 10 most downloaded apps use location technology 49
Slide 48: Ride-hailing
Ride-hailing Where’s the pick-up point? What’s the best route? How do I drop you off? 50
Slide 49: Food delivery
Food delivery Where’s the entrance? What’s the best route for bikes? How do I locate the apartment? 51
Slide 50: Rising expectations require a smarter map
Continuous quality improvements Global coverage Rising expectations Up-to-date require a smarter map More accuracy and higher precision Feature rich 52
Slide 51: The growing location technology market and customer needs
1 The growing location technology market and customer needs 2 How will the new TomTom Maps solve these needs? 3 What does it mean for TomTom’s opportunities and growth? 53
Slide 52: New TomTom Maps
New TomTom Maps Richer features Ride Hailing Food Delivery Travel > Signboard information > Precise entry points > Rich map visualization > Accurate pick-up points > Two-wheeler features > Pedestrian features > Up-to-date road network > Latest building footprints > Precise address points and accurat
Slide 53: New TomTom Maps
Jakarta, Indonesia Jakarta, Indonesia Current Map New Map New TomTom Maps More coverage Coordinates: -6.20759,106.75786 at 1:100m scale 55 ©TomTom / ©OpenStreetMap
Slide 54: A collaborative map
A collaborative map An ecosystem of partners to create the smartest map on the planet together > Open ecosystem > Strategic partnership enabler > Feedback > Traffic experience 56
Slide 55: The growing location technology market and customer needs
1 The growing location technology market and customer needs 2 How will the new TomTom Maps solve these needs? 3 What does it mean for TomTom’s opportunities and growth? 57
Slide 56: Increased market share in existing segments
Unlock growth through Increased market share in existing segments Increase value to our existing customers Win new customers 58 ©TomTom / ©OpenStreetMap
Slide 57: New markets
Unlock growth through New markets Food Delivery Travel Social Future Segments Coverage Search Search Unlocked through partnership model Two-wheeler routing Visualization Visualization 59
Slide 58: A broader developer audience
Unlock growth through A broader developer audience Maps APIs and Navigation SDK 60
Slide 59: Resulting in a significant expansion of our addressable market
Resulting in a significant expansion of our addressable market Location technology market size excluding Automotive (in € billions) 2.5 Future use cases via partnership model 2.0 Food Delivery Travel Social Fleet & Logistics 85% of TAM Location Analytics Ride Hailing Fleet & Logistics Consumer Tech
Slide 60: The rising expectations in our industry require a smarter map
1 The rising expectations in our industry require a smarter map 2 We are building the smartest map together through global partnerships, unlocking endless new use cases 3 Significant expansion of our addressable market and consistent growth 62
Slide 61: TomTom
SO tomtom
Slide 62: Products & Business Model
Products & Business Model Johan Land | Chief Product Officer
Slide 63: Product portfolio, Business model, Ecosystem
1 Product portfolio 2 Business model 3 Ecosystem 65 65
Slide 64: Products for application developers
Products for application developers 66
Slide 65: Product portfolio
SDKs Services Product portfolio Value- added data > Basic features: roads, cities, Base countries, lakes, mountains map > Only 5 global base maps 67 ©TomTom / ©OpenStreetMap
Slide 66: Product portfolio
SDKs Services Product portfolio > Rich features that are key to Value- application developers: speed added limits, one-way-streets, lanes, data traffic, addresses, etc. > Serving larger companies that integrate themselves Base map 68 ©TomTom / ©OpenStreetMap
Slide 67: Product portfolio
SDKs > Routing, Search, Display, Traffic, etc. Services > Less friction for companies not Product able of developing the services themselves portfolio Value- added data Base map 69 ©TomTom / ©OpenStreetMap
Slide 68: Product portfolio
> "Building blocks" for application developers to bring in world class SDKs experiences with minimal investment > Highest-value product tying together the full value of our Services portfolio Product portfolio Value- added data Base map 70 ©TomTom / ©OpenStreetMap
Slide 69: Business model
SDKs > Self-service or custom built > Fees for customization Services > APIs with pay-for-usage revenue model Business model Value- > Proprietary data added > Packages by segment and geography data > Recurring revenue model Base map > Entry point with limited support 71 ©TomTom / ©OpenStreetMap
Slide 70: Ecosystem
Ecosystem Better products More customers and partners Data Data contributions contributions 73
Slide 71: The flywheel is spinning
The flywheel is spinning … … creating the best map with a great business model 74
Slide 72: TomTom
SO tomtom
Slide 73: Technology & Competitive Position
Technology & Competitive Position Eric Bowman | Chief Technology Officer
Slide 74: TomTom Pioneered
TomTom Pioneered
Slide 75: Kickstart Growth
Kickstart Growth
Slide 76: Phenomenal Execution
Phenomenal Execution
Slide 77: Power of Feedback
Power of Feedback
Slide 78: Doubling Down
Doubling Down
Slide 79: Incredible Team
Incredible Team
Slide 80: Leadership At Every Level
Leadership At Every Level
Slide 81: Infinitely Scalable
Infinitely Scalable
Slide 82: Minutes Instead Of Months
Minutes Instead Of Months
Slide 83: Everywhere on earth people want to be
Everywhere on earth people want to be
Slide 84: Whatever our customers can imagine, can go in the map
Whatever our customers can imagine, can go in the map
Slide 85: The Smartest Map
The Smartest Map
Slide 86: Pull Drivers Off Their Phones
Pull Drivers Off Their Phones
Slide 87: Safety, Comfort, and Efficiency
Safety, Comfort, and Efficiency
Slide 88: Our Map's Leading Position
Our Map’s Leading Position
Slide 89: A True Engine For Growth
A True Engine For Growth
Slide 90: TomTom
SO tomtom
Slide 91: Set for Profitable Growth
Set for Profitable Growth Taco Titulaer | Chief Financial Officer
Slide 92: €3 billion and growing
Location technology market €3 billion and growing 96
Slide 93: Resiliency in Automotive
Resiliency in Automotive Car production and take rates are increasing, as well as our market share Annual light vehicle production (in all regions excluding China, in millions of vehicles produced) Car production volumes increase as the 65 >5% automotive industry recovers 52 53 Take rates increase d
Slide 94: Automotive backlog
Automotive backlog Our outlook is underpinned by a record backlog, demonstrating the competitiveness of our offerings Automotive IFRS backlog (in € millions) 2,400 1,900 1,800 1,800 1,600 2019 CMD 2019 YE 2020 YE 2021 YE Today (Sept. 2019) 98
Slide 95: Opportunities in Enterprise
Opportunities in Enterprise Capitalizing on growth in the Enterprise market with our new Maps Platform TomTom Large, expanding market, as the reliance on location technology will only grow €2bn Relatively low market share, providing growing at Dominant significant opportunity to grow Other >7% playe
Slide 96: Revenue ambition
Revenue ambition Ambition of €600 million of Location Technology revenue in 2025, supported by our new Maps Platform and strong Automotive backlog Location Technology revenue (in € millions) 600 >10% 425 - 475 410 - 425 394 Automotive Enterprise Ambition 2021 2022 2023 2025 100
Slide 97: Increasing gross margins
Increasing gross margins Successful transition to a software company over the past decade, improving gross margins 2012 2017 2022 >50% >60% >80% Software revenue Hardware revenue % Gross margin 101
Slide 98: Investments in technology
Investments in technology Increased investments in value-add map layers, applications, and sales activities OPEX Trend from 2021 to 2023 (in € millions and as a percentage of total) 500 General & administrative 18% Sales & marketing 9% R&D - Application layer 29% R&D - Geographic data Operations Eng
Slide 99: Increasing free cash flow
Increasing free cash flow Mid-term target of free cash flow generation of 10% of group revenue Free cash flow Capital allocation (in € millions and as a percentage of group revenue) +10% > Profitable growth leads to a strengthening of our balance sheet > Once we stably generate positive free cash +5
Slide 100: ESG
ESG Our commitment to responsible business 104
Slide 101: Themes and KPIs
Th KP em I e Technologies that reduce Potential CO2 emission emissions and improve savings enabled by our road safety products Employer of choice Engagement Score Themes and KPIs Diversity and inclusion Gender diversity ratio Percentage of engineers Security and data privacy certifiably trained CO2
Slide 102: Set for growth
Set for growth €600 million Location Technology revenue ambition for 2025 More versatile product offering Great opportunities in Enterprise Strong Automotive backlog FCF yield target of 10% in 2025 Responsible growth 106
Slide 103: TomTom
SO tomtom
Slide 104: Important notice
Important notice DISCLAIMER This document contains certain forward-looking statements with respect to the financial position and results of TomTom’s activities. We have based these forward-looking statements on our current expectations and projections about future events, including numerous assumpti

TomTom — Investor Day (2022) on 6ix

Tomtom Nv — Investor Day (2022)

Slide 1: Strategy Update

Slide 2: Amsterdam, Netherlands - Current map

Slide 3: Amsterdam, Netherlands - New map

Slide 4: Astana, Kazakhstan - Current map

Slide 5: Astana, Kazakhstan - New map

Slide 6: Lawrence (KS), USA - Current map

Slide 7: Lawrence (KS), USA - New map

Slide 8: Makassar, Indonesia - Current map

Slide 9: Makassar, Indonesia - New map

Slide 10: Tokyo, Japan - Current map

Slide 11: Tokyo, Japan - New map

Slide 12: Disneyland Paris, France - Current map

Slide 13: Disneyland Paris, France - New map

Slide 14: TomTom

Slide 15: The New Maps Platform

Slide 16: The world of mapmaking is changing dramatically

Slide 17: Growing interest in OSM

Slide 18: Limitations of Current Map Options

Slide 19: Bringing the best resources of the world together

Slide 20: Rising expectations for maps

Slide 21: TomTom Maps Sources

Slide 22: Map data improvement on visualization

Slide 23: Better map, better traffic

Slide 24: Daily Automated Observations from Vehicles

Slide 25: Lane-Level Geometry

Slide 26: Build for Collaboration

Slide 27: TomTom's New Maps

Slide 28: TomTom

Slide 29: Driving Growth in Automotive

Slide 30: Product portfolio serving multiple segments

Slide 31: TomTom market share in Europe

Slide 32: TomTom market share in North America

Slide 33: Product portfolio serving multiple segments

Slide 34: Navigation take rate continues to grow

Slide 35: Addressable market size growing toward €1.5 billion

Slide 36: Electrification is transforming the navigation experience

Slide 37: Advanced Driver Assistance Systems drive higher take rates

Slide 38: Location technology enables the software-defined vehicle

Slide 39: Map as the key enabler for in-car experience

Slide 40: Long-term partnerships on location technology required

Slide 41: Backlog fueled by recent wins

Slide 42: TomTom

Slide 43: New Opportunities

Slide 44: The growing location technology market and customer needs

Slide 45: The growing location technology market and customer needs

Slide 46: The location technology market

Slide 47: Location is needed everywhere

Slide 48: Ride-hailing

Slide 49: Food delivery

Slide 50: Rising expectations require a smarter map

Slide 51: The growing location technology market and customer needs

Slide 52: New TomTom Maps

Slide 53: New TomTom Maps

Slide 54: A collaborative map

Slide 55: The growing location technology market and customer needs

Slide 56: Increased market share in existing segments

Slide 57: New markets

Slide 58: A broader developer audience

Slide 59: Resulting in a significant expansion of our addressable market

Slide 60: The rising expectations in our industry require a smarter map

Slide 61: TomTom

Slide 62: Products & Business Model

Slide 63: Product portfolio, Business model, Ecosystem

Slide 64: Products for application developers

Slide 65: Product portfolio

Slide 66: Product portfolio

Slide 67: Product portfolio

Slide 68: Product portfolio

Slide 69: Business model

Slide 70: Ecosystem

Slide 71: The flywheel is spinning

Slide 72: TomTom

Slide 73: Technology & Competitive Position

Slide 74: TomTom Pioneered

Slide 75: Kickstart Growth

Slide 76: Phenomenal Execution

Slide 77: Power of Feedback

Slide 78: Doubling Down

Slide 79: Incredible Team