Slide 1: First quarter 2008 results
First quarter 2008 results Harold Goddijn – CEO Marina Wyatt - CFO
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: Financial review
Financial review Marina Wyatt - CFO
Slide 4: Financial summary – Q1 2008
Financial summary – Q1 2008 in € millions Q1 ’08 Q1 ’07 ∆ Q4 ’07 Revenue 264 296 -11% 634 Gross profit 92 118 -22% 268 Gross margin 35% 40% - 42% Operating profit 9 57 -85% 144 Operating margin 3% 19% - 23% Net profit 7 44 -83% 107 Net profit margin 3% 15% - 17% 4 © 2008 TomTom - All percentages and
Slide 5: Revenue by product and geography
Revenue by product and geography By product group By geography Q1 2008 Q1 2008 9% 1% Rest of world 2% North America 32% 67% Europe 89% Q1 2007 Q1 2007 North 6% 2% Rest of world America 3% 12% Europe 86% 91% PNDs PDA/smartphone solutions Other 5 © 2008 TomTom - All percentages and sums are calculated
Slide 6: First quarter revenue analysis
First quarter revenue analysis Revenue (in € millions) ASP PNDs (in €) 250 634 700 200 28 150 600 4 100 204 141 117 50 500 0 Q1 '07 Q4 '07 Q1 '08 296 400 264 17 Units PNDs (in '000s) 300 602 8 25 5 5,000 200 4,000 271 3,000 234 4,278 100 2,000 1,000 1,997 1,330 0 0 Q1 '07 Q4 '07 Q1 '08 Q1 '07 Q4 '07
Slide 7: Operating expenses overview
Operating expenses overview in € millions Q1 ’08 Q1 ’07 Q4 ’07 R&D 20.8 10.7 19.5 % of revenue 7.9% 3.6% 3.1% Marketing 20.5 20.8 62.1 % of revenue 7.8% 7.0% 9.8% Other SG&A 36.5 22.6 35.2 % of revenue 13.8% 7.6% 5.5% Operating expenses 77.8 54.1 116.8 % of revenue 29.5% 18.3% 18.4% Share based comp
Slide 8: Earnings overview
Earnings overview in € millions Q1 ’08 Q1 ’07 Q4 ‘07 Operating profit 8.7 56.6 144.4 Interest income (expenses) 3.5 4.2 4.3 Exchange rate gain (loss) 10.9 (1.1) (4.5) Result of associate (4.6) - 0.8 Taxation (11.3) (16.0) (38.3) Effective tax rate 60.8% 26.7% 26.4% Of which is due to release of defe
Slide 9: Cash flow overview
Cash flow overview in € millions Q1 ’08 Q1 ’07 Q4 ’07 Operating profit 9 57 144 Depreciation and amortisation 8 5 7 Other 2 2 (1) Changes to provisions (6) 2 19 Changes in working capital 40 31 (14) Cash generated from operations 52 98 155 Interest received 5 4 5 Interest paid (1) (0) (0) Tax paid (
Slide 10: Balance sheet
Balance sheet in € millions Q1 ’08 Q1 ’07 Q4 ‘07 Non-current assets Intangible assets 55 37 56 Property, plant & equipment 20 9 18 Deferred tax assets 18 14 24 Investment in associate 812 817 Current assets Inventories 136 85 131 Receivables, prepayments & financial instruments 238 212 460 Cash and
Slide 11: Financial outlook 2008
Financial outlook 2008 • Continued strong growth of the European and North American PND markets; combined markets expected to grow by more than 50% to 38 million units in 2008, up from 24.5 million units in 2007 • Revenue expectation for 2008 of between €1.8 billion and €2.0 billion • PND unit forec
Slide 12: Market and business review
Market and business review Harold Goddijn – CEO
Slide 13: Market size – history and forecast
Market size – history and forecast Market size PND (sell-out) Market size PND (sell-out) Europe North America 8 12 Million units Million units 7 10 6 8 5 4 6 3 4 2 2 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 2008 (FC) Europe 4 8.5 15 20 US 1 3 10 18 13 © 2008 TomTom - All percentages and sums are cal
Slide 14: From strong growth to …
From strong growth to … • Over the last 4 years the PND market saw exceptional growth • TomTom has made navigation accessible, available and easy to use • With current ASPs, PNDs are now affordable for a broad public • The PND is the standard for car navigation in terms of form factor, navigation qu
Slide 15: …continued growth
…continued growth Why would anyone drive without a navigation device? The market will continue to grow • Expanding the # of countries – Reduced cost of production increases the # of markets to address • Increasing penetration levels – People will not go back to paper maps – New services open up new
Slide 16: Update on Tele Atlas acquisition
Update on Tele Atlas acquisition Combination creates new technologies for interactive map creation, enrichment and maintenance – TomTom Map Share™ enables the installed base of nearly 20 million to contribute to digital map creation and maintenance (10,000 unique map changes per day) – TomTom IQ Rou
Slide 17: 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 market share in North America to c.30% • Improve the quality of routing and travel time pr
Slide 18: Appendix
Appendix Tomtom 5)
Slide 19: 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 were valued by a Black & Scholes model and the calculations have been reviewed by our audi
Slide 20: Deferred tax asset release
Deferred tax asset release • TomTom has recognised a deferred tax asset for the temporary tax difference on our equity settled share options • The size of the deferred tax asset was based upon the assumption that the commercial costs (costs as stated in our financial statements) were equal to the fi
Slide 21: Explanation accounting result associates
Explanation accounting result associates • Estimated first quarter ’08 result of Tele Atlas¹ -/- € 6,7m • Additional amortisation (after tax) resulting from PPA² € 8,6m • Net loss Tele Atlas adjusted for TomTom PPA corrections -/- € 15,3m • Calculation result associate Tele Atlas: -/- €15,3m * 29.9%
Slide 22: Outstanding shares
Outstanding shares Common shares outstanding end of Q4 2007 121,785,186 Common shares outstanding end of Q1 2008 121,804,920 Average shares outstanding end of Q1 2008 121,798,956 Share options as of end of Q4 2007 9,557,648 Exercised share options in Q1 2008 19,734 Average share options outstanding