Tomtom Nv · EURONEXT:TOM2
Tomtom Nv — Q2 2005 Earnings Presentation
23 slides from Tomtom Nv's earnings presentation, Jul 27, 2005
Slide 1: Q2 Results Presentation
Q2 Results Presentation 27 July 2005 Taking Navigation to the Mass Market 1
Slide 2: Important Notice
Important Notice 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
Slide 3: Agenda
Agenda Topic Speaker 1) Market Developments Harold Goddijn (CEO) and Business Update 2) Q2 Financial Results Marina Wyatt (CFO) 3) Questions & Answers 3
Slide 4: Market Developments and Business Highlights
Market Developments and Business Highlights
Slide 5: Market Opportunity
Market Opportunity Very significant market opportunity for TomTom’s products – The total European and US car park is 418m cars – 94% of cars on the road in Europe and 98% in the US do not have a satellite navigation system – Only 10% of new cars sold have a satellite navigation system 5
Slide 6: Overall Market Developments
Overall Market Developments Market acceptance for personal navigation products is accelerating faster than anticipated Continued high growth for personal navigation sector More product choice and lower price points have been fuelling growth Market movement towards integrated “fit for purpose
Slide 7: Personal vs. Factory-Installed Navigation systems
Personal vs. Factory-Installed Navigation systems ‘Why in-dash GPS nav systems are lost’ CNET, May 5, 2005 “Of course, car makers stress the reliability and robust nature of their products, qualities the consumer electronics biz often ignores. Still, consumers have been conditioned by companies such
Slide 8: European Personal Navigation Market Update
European Personal Navigation Market Update Integrated devices represented Personal Navigation Solutions 29% of the European mobile Shipped (Q1) navigation market in Q1 2005 Canalys estimates that integrated Smart devices will outsell solutions for Phones, 5% handhelds in 2006 Most new entrants
Slide 9: TomTom Business Update
TomTom Business Update TomTom’s market position is strengthening – Diversified product range through the introduction of the GO 300/500/700 products which address the entry level to the high end – Substantial investment in brand and product The TomTom Plus functionality is unique – Gives user si
Slide 10: TomTom Business Update
TomTom Business Update TomTom’s distribution network is strong and increasing – Europe; deepening and widening of distribution network • Czech Republic, Poland • New distributors in both well established and new western European markets – US; growing distribution nationwide to 2,500 outlets this s
Slide 11: 2H 2005 Business Outlook
2H 2005 Business Outlook Retail demand is strong and growth will continue to be driven by the GO range We are ramping up the supply chain to meet the significant volume uplift in 2H Rider (motorcycle product) expected to ship in Q3 Further TomTom Plus content will be released in Q3 11
Slide 12: Q2 Financial Results
wWQ2 Financial Results tomtom
Slide 13: Financial Summary
Financial Summary Change vs. Change vs. (€ millions) Q2 2005 Q1 2005 Q1 2005 Q2 2004 Q2 2004 Revenue 114.8 66.2 73% 35.8 221% Gross Profit 47.9 31.2 54% 14.6 228% Gross Margin 42% 47% - 41% - Operating 27.0 18.5 46% 8.6 216% Profit Operating 24% 28% - 24% - Profit Margin Net Profit 22.1 13.8 61% 5.4
Slide 14: Revenue Analysis
Revenue Analysis Revenue (€ millions) Units (thousands) 130 300 262.4 250 120 114.8 6.5 200 110 158.3 12.6 150 100 108.1 112.8 111.1 100 90 50 22.7 80 0 Q2 04 Q1 05 Q2 05 70 66.2 2.9 60 ASP (€) 16.3 487 500 50 95.8 434 35.8 400 365 40 1.4 30 300 23.4 47.0 20 200 148 145 114 10 100 11.0 0 0 Q2 04 Q1
Slide 15: Q2 Revenue By Product and Geography
Q2 Revenue By Product and Geography By Product Group By Geography FY 2004 FY 2004 4.2% US 2.9% 35.7% Europe 97.1% - No country >25% 60.1% - 5 countries >10% Q2 2005 H1 2005 5.6% US 3.0% RoW 0.4% 11.0% Europe 96.6% - No country >25% - 5 countries >10% 83.4% Integrated Devices Non-Integrated Devices O
Slide 16: Quarterly Margin Development
Quarterly Margin Development Margins (%) 60% 47.1% 40.8% 41.7% 40% 27.9% 23.9% 23.5% 20.8% 19.2% 20% 15.2% 0% Gross Margin Operating Margin Net Profit Margin Q2 04 Q1 05 Q2 05 16
Slide 17: Operating Expenses Overview
Operating Expenses Overview Q2 2005 Q1 2005 Q2 2004 % of % of % of €m Revenue €m Revenue €m Revenue R&D 2.2 1.9% 1.8 2.7% 1.2 3.2% Marketing 12.1 10.5% 5.1 7.8% 2.1 6.0% Other SG&A 6.2 5.4% 5.4 8.1% 2.6 7.3% Accounting Charge for 0.4 0.4% 0.4 0.6% 0.1 0.3% Share Options Total Operating 20.9 18.2% 12
Slide 18: Earnings Overview
Earnings Overview (€ millions) Q2 2005 Q1 2005 Q2 2004 Operating Profit 27.0 18.5 8.6 Financial Expenses 5.7 1.7 0.1 and Income, Net Of which FX Gains / 5.4 1.5 0.1 (Losses) Income Tax 10.6 6.4 3.2 Net Profit 22.1 13.8 5.4 EPS (€ per Share) 0.20 0.13 0.05 18
Slide 19: Cash Flow Profile
Cash Flow Profile (€ millions) Q2 2005 Q1 2005 Q2 2004 Operating Profit 27.0 18.4 8.6 Depreciation and 0.4 0.5 0.3 Amortisation Additions to Provisions 0.9 0.2 0.1 Changes in Working (10.5) (9.3) (9.8) Capital Other Operating Items 2.0 1.9 0.1 Cash Generated from 19.8 11.7 (0.7) Operations Net Cash
Slide 20: Q2 2005 Balance Sheet
Q2 2005 Balance Sheet (€ millions) 30-Jun-2005 31-Dec-2004 Non-Current Assets 3.9 3.0 Current Assets Inventories 28.2 13.4 Receivables, Prepayments & 68.0 34.4 Financial Instruments Cash and Equivalents 187.9 40.2 Total Assets 288.0 90.9 Shareholders’ Equity 191.1 37.8 Long-term Liabilities 1.0 1.3
Slide 21: 2005 FY Financial Outlook
2005 FY Financial Outlook Revenues expected to at least triple compared to last year driven by integrated devices ASPs expected to increase in the second half compared to Q2, due to product mix Operating margin expected to be broadly similar to 2004 FY reported – Gross margins lower – Fixed co
Slide 22: Questions?
Questions?
Slide 23: Taking Navigation to the Mass Market
Taking Navigation to the Mass Market 23