Slide 1: First Quarter 2007 Results
First Quarter 2007 Results 25 April 2007 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 it o
Slide 3: Agenda
Agenda Topic Speaker Market Developments Harold Goddijn (CEO) and Business Update 2007 Q1 Financials Marina Wyatt (CFO) 3
Slide 4: First Quarter Highlights
First Quarter Highlights • €296 million revenue and €44 million net profit • Gross margin of 40% • Cash generated from operations of €98 million • 1.3 million PNDs shipped • Growth of European market share to 52% • Growth of US market share to 25% • Milestone of 1 million registered TomTom HOME user
Slide 5: Strong Global Growth of PNDs
Strong Global Growth of PNDs Europe (>100% growth) US (>300% growth) Sell out # of PNDs (in 000s) Sell out # of PNDs (in 000s) 4,000 2,000 3,000 1,500 2,000 1,000 1,000 500 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2005 2006 2007 2005 2006 2007 * Based on February 2007 extrapolated GfK (EU10) and NPD (US) sell ou
Slide 6: Increased Market Share
Increased Market Share - in both Europe and US - Strengthened clear #1 Reinforced #2 market market position in Europe position in US market – Penetration level ≈ 15% – Penetration level < 5% – Q1 Market share of 52% – Q1 market share of 25% (GfK) up from 50% at the end of 2006 (NPD) up from 20% at t
Slide 7: North American Market
North American Market - gaining momentum - • US PND market is growing very rapidly, although base still small • TomTom is now the most recognised personal navigation brand with awareness of >60% • Retailers are investing heavily in the category • Expansion of # of direct retail outlets is broadly co
Slide 8: TomTom XL - first mid-range product
TomTom XL - first mid-range product - “ …See More, Drive Easy…” Easy • New addition to the TomTom family Æ 3-tier segmentation • Focus on pure navigation • Large 4.3” screen improves user experience • Plug & play traffic with optional TMC • Design based on the world’s #1 PND, the TomTom ONE 8
Slide 9: TomTom WORK
TomTom WORK - Connected Navigation - • Over 18,000 active subscribers, up 32% sequentially and up 108% year on year • Making access to the network easier - GO 715 - first navigation device with integrated GPRS modem and SIM card launched • Activities in Germany, UK, Benelux, France, Austria and the
Slide 10: TomTom 2007 Priorities
TomTom 2007 Priorities • Deliver exciting roadmap of new products and services • Be first to market with key innovations • Maintain 50% market share in Europe and increase market share in North America • Roll-out travel time information service in the Netherlands and prepare for roll-out to other ge
Slide 11: Agenda
Agenda Topic Speaker Market Developments Harold Goddijn (CEO) and Business Update 2007 Q1 Financials Marina Wyatt (CFO) 11
Slide 12: Financial Summary
Financial Summary in € millions Q1 ’07 Q1’06 ∆ Q4’06 Revenue 296 256 16% 478 Gross Profit 118 89 33% 218 Gross Margin 40% 35% - 46% Operating Profit 57 50 14% 126 Operating Profit Margin 19% 20% - 26% Net Profit 44 31 42% 80 Net Profit Margin 15% 12% - 17% * The figures in the table contain rounded
Slide 13: Revenue by Product and Geography
Revenue by Product and Geography By Product Group By Geography FY 2006 FY 2006 5% ROW 2% 2% North America 8% Europe 90% 93% Q1 2007 Q1 2007 2% 6% ROW 2% North America 12% Europe 86% 92% PNDs PDA/smartphone solutions Other 13
Slide 14: First Quarter Revenue Analysis
First Quarter Revenue Analysis Revenue (in € millions) ASP PNDs (in €) 300 500 478 25 200 11 305 230 100 204 400 0 Q1 '06 Q4 '06 Q1 '07 296 300 17 256 8 Units PNDs (in '000s) 14 9 2,000 442 200 1,500 271 1,000 1,915 233 100 1,330 500 762 0 0 Q1 '06 Q4 '06 Q1 '07 Q1 '06 Q4 '06 Q1 '07 PNDs PDA/smartph
Slide 15: Operating Expenses Overview
Operating Expenses Overview in € millions Q1 ‘07 Q4 ‘06 Q1 ‘06 R&D 10.7 12.8 5.6 % of revenue 3.6% 2.7% 2.2% Marketing 20.8 44.6 14.9 % of revenue 7.0% 9.3% 5.8% Other SG&A 22.6 28.6 13.2 % of revenue 7.6% 6.0% 5.2% Operating expenses 54.1 86.1 33.7 % of revenue 18.3% 18.0% 13.2% Accounting charge f
Slide 16: Earnings Overview
Earnings Overview in € millions Q1 ‘07 Q4 ‘06 Q1 ‘06 Operating profit 56.6 125.7 50.2 Net financial income and expenses 3.1 (11.3) (4.8) of which FX losses (1.1) (13.5) (6.1) Taxation (16.0) (34.0) (14.1) effective tax rate 26.7% 29.7% 31.1% Net Profit 43.7 80.4 31.3 Average diluted # of shares outs
Slide 17: Cash Flow Overview
Cash Flow Overview in € millions Q1 ‘07 Q4 ‘06 Q1 ‘06 Operating profit 56.6 125.7 50.2 Depreciation and amortization 5.3 5.1 2.9 Additions to provisions 2.1 6.8 3.3 Changes in working capital 31.3 (5.0) 14.7 Other operating items 2.4 (0.6) 2.9 Cash generated from operations 97.7 132.0 74.0 Interest
Slide 18: Balance Sheet
Balance Sheet in € millions Q1 ’07 Q4 ’06 Non-Current Assets Intangible Assets 37.1 39.2 Property, plant & equipment 8.8 7.9 Deferred Tax Assets 13.9 12.1 Current Assets Inventories 85.3 123.0 Receivables, Prepayments & Financial Instruments 211.6 283.0 Cash and Equivalents 512.6 437.8 Total Assets
Slide 19: 2007 FY Financial Outlook
2007 FY Financial Outlook • Total PNDs for TomTom estimated at 7 to 8 million units • TomTom revenue estimated at €1.6 billion to €1.8 billion • Consistent target gross margin of c. 40% and operating margin of c. 20% of revenue • Revenues are expected to be stronger in the third and especially in th
Slide 20: Questions
TomTom yw Questions 20
Slide 21: Annex
Annex For further information please contact TomTom Investor Relations Tel: +31 20 753 5194 ir@tomtom.com http://investors.tomtom.com 21
Slide 22: Accounting Charge for Share Options
Accounting Charge for Share Options • 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; – The m
Slide 23: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q4 2006 112,921,566 Common shares outstanding end of Q1 2007 112,921,566 Average shares outstanding end of Q1 2007 112,921,566 Share options as of end of Q4 2006 10,293,512 New shares options as of 8 March 2007 30,000 Exercised share options in Q1
Slide 24: Share Options Vesting Schedule
Share Options Vesting Schedule Number of options in 2007-2010 (in ‘000s) 1 Jun 1 Nov 1 Dec 10 Aug 10 Nov 28 Feb 9 May 8 Aug 9 Nov 8 Mar 2007 2007 2007 2008 2008 2009 2009 2009 2009 2010 2,081 €0.75 1,500 €3.75 182 €3.75 1,110 €26.44 3,308 €28.82 105 €25.50 113 €37.68 188 €28.58 1,705 €33.96 30 €30.9
Slide 25: End
TomTom yw End 25