Slide 1: TomTom Q4 2010 results
TomTom Q4 2010 results Harold Goddijn - CEO & Marina Wyatt - CFO | 18 February 2011
Slide 2: Financial highlights
Financial highlights › Content & Services revenue grew by 16% to €98 million › Automotive revenue grew by 52% to €55 million › Gross margin of 46% and EBIT margin of 13% › Net cash flow from operating activities of €141 million 2
Slide 3: Operational highlights
Operational highlights › Consumer › HD Traffic expansion › New GO LIVE range launched in US › GPS sports watch announced › Extension of existing Automotive partnerships › More Renault, Fiat and Toyota models with TomTom solutions › LIVE Services go in-dash in 2011 › Licensing contracts signed › Cont
Slide 4: Our assets
Our assets Licensing Business Solutions Automotive Core content Mobile Enhanced content Software assets + PND web based publishing platform 4
Slide 5: 2011 priorities (1/2)
2011 priorities (1/2) › Consumer › Roll-out HD Traffic in US and monetise our European HD Traffic footprint › Grow the proportion of connected devices in our sales mix › Market share growth and limited ASP decline › Automotive › Expand into more models, countries and increase take rates › Win new co
Slide 6: 2011 priorities (2/2)
2011 priorities (2/2) › Licensing › Grow position in wireless market › Develop new products to monetise our content assets › Develop the Geographic Information System (GIS) opportunity › Business Solutions › Grow organically at twice the speed of the European industry › Launch additional services to
Slide 7: Outlook 2011
Outlook 2011 › Broaden revenue base › Grow contribution of Content & Services › Increase operating expenses to support development of new technologies and sales capabilities › Broadly flat revenue and earnings per share compared to 2010 7
Slide 8: Revenue analysis – business units
Revenue analysis – business units Revenue Q4 2009: € 533 million Revenue Q4 2010: € 516 million Business Business Solutions Solutions 3% 3% Licensing 7% Licensing Consumer Consumer 8% 84% 79% Automotive 7% Automotive 11% Revenue FY 2009: € 1,480 million Revenue FY 2010: € 1,521 million Business Busi
Slide 9: Revenue analysis – segments
Revenue analysis – segments Revenue Q4 2009: € 533 million Revenue Q4 2010: € 516 million Hardware C&S C&S Hardware 84% 19% 16% 81% Revenue FY 2009: € 1,480 million Revenue FY 2010: € 1,521 million C&S Hardware 21% Hardware C&S 77% 79% 23% 9
Slide 10: Earnings overview
Earnings overview in € millions Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Gross result 245 144 185 178 237 Gross margin 46% 54% 51% 48% 46% Operating expenses 134 127 135 123 172 Operating result 111 17 50 55 65 Operating margin 21% 6% 14% 15% 13% Interest result (11) (8) (9) (10) (8) Other finance result
Slide 11: Operating expenses
Operating expenses 60 180 172 41 40 44 37 36 40 R&D 160 20 0 135 140 134 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 127 123 120 60 48 40 100 26 Marketing 15 24 17 20 80 0 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 60 60 52 51 54 48 47 40 40 SG&A Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 20 0 Total OPEX Q4 '09 Q1 '10 Q2 '1
Slide 12: Cash flow
Cash flow in € millions Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Operating result 111 17 50 55 65 Depreciation and amortisation 26 27 26 26 31 Financial (losses) / gains (4) (10) 4 (1) (4) Other 12 (3) 7 0 4 Changes in working capital 61 (54) (5) (16) 48 Cash generated from operations 205 (23) 82 63 143 I
Slide 13: Balance sheet
Balance sheet in € millions 31 Dec '09 31 Mar '10 30 Jun '10 30 Sep '10 31 Dec '10 Goodwill 855 855 855 855 855 Other intangible assets 986 978 965 958 946 Other non-current assets 79 74 70 67 69 Inventories 67 61 63 80 94 Receivables, prepayments & financial instruments 331 222 315 291 353 Cash and
Slide 14: Thank you Any questions?
Thank you Any questions? TOMTOMY
Slide 15: PND market size and share
PND market size and share* Europe and North America › Market size › Europe 3.5 million units (Q4 ‘09: 4.3 million) › North America 6.5 million units (Q4 ‘09: 8.6 million) › Market share growth in Europe and North America Europe North America 50% 50% 40% 40% 30% 30% 20% 46% 49% 20% 29% 32% 10% 10% 0%
Slide 16: PND market size Europe and North America
PND market size Europe and North America* Volume (in millions) Q1 '10 Q2 '10 Q3 '10 Q4 '10 2010 Europe 2.8 3.1 3.5 3.5 12.8 North America 2.6 3.3 2.8 6.5 15.2 Volume (in millions) Q1 '09 Q2 '09 Q3 '09 Q4 '09 2009 Europe 3.2 3.7 3.8 4.3 14.9 North America 2.6 3.5 3.1 8.6 17.8 * Rounded numbers; PND s
Slide 17: Full year earnings overview
Full year earnings overview in € millions FY '09 FY '10 Gross result 731 744 Gross margin 49% 49% Operating expenses 510 558 Operating result 221 186 Operating margin 15% 12% Interest result (71) (35) Other finance result (41) (16) Result associates 3 (1) Result before tax 111 134 Taxation (25) (26)
Slide 18: Full year cash flow
Full year cash flow in € millions FY '09 FY '10 Operating result 221 186 Depreciation and amortisation 106 109 Financial losses (20) (12) Other 6 8 Changes in working capital 116 (26) Cash generated from operations 430 265 Interest received 3 1 Interest paid (66) (26) Tax paid (26) (30) Net cash flo
Slide 19: Impact of FX rate changes
Impact of FX rate changes Q4 ‘10 results based on current exchange rates and that of previous quarters compared in € millions Q4 '10 Q4 '09 Q3 '10 rates rates rates Revenue 516 498 526 Cost of sales 279 260 293 Gross margin 46% 48% 44% Gross profit 237 238 233 P&L rates in € US dollar 1.35 1.48 1.27
Slide 20: Debt development
Debt development History, future and leverage Gross and net debt Leverage Gross debt 4 Net debt / LTM EBITDA 800 Net debt 3 Actual Covenant 600 € millions 2 400 200 1 0 0 Redemption schedule 600 • €588million gross debt € millions 400 • €306 million cash on hand 200 388 • €294 million net debt 210 0
Slide 21: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q3 ‘10 221,718,074 Common shares outstanding end of Q4 ‘10 221,808,085 Average shares outstanding in Q4 ‘10 221,747,864 In the money share options as of Q3 ‘10 0 In the money share options as of Q4 ‘10 12,300,172 Average dilutive share options outs
Slide 22: 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