Slide 1: TomTom Group Second quarter 2009 results
TomTom Group Second quarter 2009 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: Second quarter 2009 review
Second quarter 2009 review Strong EBIT and Operating result of €59 million cash flows Net cash from operating activities of €96 million Strengthened Equity offering successfully completed balance sheet Pro forma net debt of €672 million Connectivity going Connected services on volume product mainstr
Slide 4: Market size PNDs (end user demand)
Market size PNDs (end user demand) 10 2006 Europe 2007 2008 8 • End user demand for PNDs developed as 2009 expected in first half 2009 6 4 • Europe 2 – Decline in European market in Q2 y.o.y. Q1 Q2 Q3 Q4 of 12% to 3.8 million units (H1 ’09: 7.1 million) 10 2006 North America 2007 2008 8 2009 • North
Slide 5: More relevant guidance through connectivity
More relevant guidance through connectivity • TomTom XL (midrange) launched with connectivity • Over 100,000 active users of LIVE Services • Subscription take up rate of around 30% • Compelling test results “…the new TomTom can provide extremely accurate congestion information, updated as it happens
Slide 6: Tele Atlas offering value added content
Tele Atlas offering value added content • Latest MultiNet release: higher quality, produced at lower cost • Internet & Wireless revenue growing strongly • Historical speed profiles: new standard in routing, over 50% of TomTom PNDs in Q2 contained IQ Routes technology The normal route claims to take
Slide 7: AUTO delivering its promise
AUTO delivering its promise • Started shipping in April in new Renault Clio • Positive reception by Renault and its customers • Ramp up over next months for new models: Mégane, Scenic and Laguna 7 © 2009 TomTom
Slide 8: Revenue analysis
Revenue analysis Revenue (in € millions) ASP PNDs (in €) 500 485 120 83 80 131 400 368 99 112 40 92 0 300 Q2 '08 Q1 '09 Q2 '09 213 Units PNDs (in millions) 200 402 72 4 276 3 100 2 3.1 141 2.5 1 1.4 0 0 Q2 '08 Q1 '09 Q2 '09 Q2 '08 Q1 '09 Q2 '09 PNDs Other 8 © 2009 TomTom
Slide 9: Earnings overview TomTom Group
Earnings overview TomTom Group (pro-forma and excluding restructuring charges) in € millions Q2 ’09 Q2 ’08 Q1 ’09 Gross result 188 243 107 Gross margin 51% 50% 50% Operating expenses (129) (157) (118) Operating result 59 87 (11) Operating margin 16% 18% (5%) Interest result (15) (24) (17) Other fina
Slide 10: Cost cutting programme ahead of plan
Cost cutting programme ahead of plan 75 Q2 2009 52 50 44 − Operating expenses down €28 31 million to €129 million (pro forma Marketing 25 17 22 Q2 ’08: €157 million) 0 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 H1 2009 75 − Operating expenses down €64 57 56 56 47 47 million to €247 million (pro forma 50 Q2
Slide 11: Cash flow TomTom Group
Cash flow TomTom Group in € millions Q2 ’09 Q2 ’08 Q1 ’09 Operating result 57 92 (16) Depreciation and amortisation 29 13 26 Financial (losses) (5) (8) (20) Other 3 10 (9) Changes in working capital 14 (51) 33 Cash generated from operations 98 55 13 Interest received 1 6 1 Interest paid (3) (7) (31)
Slide 12: The credit facility
The credit facility Repayment schedule (in € million) Pro forma borrowings (in € millions) Reported borrowings 1,394 Transaction costs netted with borrowings 32 Contractual borrowings outstanding 1,427 Private placement 71 Rights issue 359 Gross proceeds from offering 430 400 397 Estimated transacti
Slide 13: Balance sheet TomTom Group
Balance sheet TomTom Group Q2 ’09* in € millions Q2 ’09 FY ’08 pro forma Goodwill 855 855 855 Intangible assets 992 1,011 992 Property, plant & equipment 46 53 46 Deferred tax assets 40 33 40 Investments 7 6 7 Inventories 64 145 64 Receivables, prepayments & financial instruments 291 342 291 Cash an
Slide 14: Questions?
Questions? Tomtom 5)
Slide 15: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q1 2009 123,315,875 Common shares outstanding end of Q2 2009 124,819,979 Average shares outstanding end of Q2 2009 124,438,375 Share options as of end of Q1 2009 6,327,372 Exercised share options in Q2 2009 1,504,104 Granted share options Q2 2009 5
Slide 16: Earnings per share adjustment post rights issue
Earnings per share adjustment post rights issue Q1 2008 Q2 2008 Q3 2008 Q4 2008 FY 2008 Q1 2009 Q2 2009 Reported net result attributable to 7,256 51,647 57,704 (989,193) (872,585) (36,724) 19,933 the Group Average number of shares outstanding - pre rights issue Basic (in 000s) 121,799 121,805 122,93