Slide 1: TomTom N.V. Third quarter 2009 results
TomTom N.V. Third 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: Third quarter 2009 review
Third quarter 2009 review Revenue base Executing on automotive and mobile strategy; broadening subscription revenue increasing EBIT margin 19%; net cash from operating Strong quarter activities of €79 million New and refreshed Depth and breadth of product offering PNDs increased Further integration
Slide 4: Market size PNDs
Market size PNDs 8 2006 Europe 2007 End user PND demand showed usual stable 2008 2009 6 sequential development in Q3 4 Europe 2 – Q3 ‘09 market size 3.8 million (Q3 ’08: 4.1 million) – 7% decline year on year and 3% growth sequentially Q1 Q2 Q3 Q4 8 2006 North America 2007 2008 2009 6 North America
Slide 5: PND product offering broadened
PND product offering broadened TomTom GO x50 LIVE – Refresh of premium range including LIVE Services offering – Latest and newest technologies TomTom Start – Low cost and easy to use – Simple but high quality functionality TomTom XXL – Premium technology with extra‐wide 5.0" touch screen – SKU for U
Slide 6: Broadening revenue base
Broadening revenue base AUTO – Further roll out in Renault car models – Fiat collaboration launched in Punto Evo iPhone – Good initial demand – Close to 80 thousand downloads WORK – Product launches: GO 9000 and GO 7000 TRUCK Photo: TomTom GO 7000 TRUCK 6 © 2009 TomTom
Slide 7: Subscription sales increasing
Subscription sales increasing Webfleet – # of subscriptions increased to 87 thousand Maps – Significant growth of # of map subscribers LIVE Services – Agreement with Vodafone Italy announced – Roll‐out in Belgium and Portugal; 8 countries by end of year – # of active users doubled in the quarter to
Slide 8: Tele Atlas update
Tele Atlas update Strong reduction in operating costs – Operational efficiencies in map production Contracts and customer wins – Agreements with Vodafone and Nextar Geographic expansion – Expanded map coverage in Argentina and Uruguay Management team completed – New Chief Technology Officer and Exec
Slide 9: Outlook
Outlook Full year PND market size Europe 15 million and North America 17 million – Implied volume in Q4 in Europe: 4.3 million units – Implied volume in Q4 in North America: 7.0 million units Seasonally higher volume and lower ASP expected in fourth quarter Lower ASP decline year on year than last y
Slide 10: Revenue analysis
Revenue analysis Revenue (in € millions) ASP PNDs (in €) 528 500 84 120 429 80 136 400 368 100 99 112 99 85 365 40 92 0 110 300 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 444 213 200 Units PNDs (in millions) 343 72 5.0 276 255 4.0 100 3.0 141 2.0 4.4 2.5 2.5 2.6 1.0 1.4 0 0.0 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3
Slide 11: Earnings overview
Earnings overview (pro-forma and excluding restructuring charges) Q3 ’09 Q3 ’08 Q2 ’09 in € millions Gross result 191 240 188 Gross margin 52% 56% 51% Operating expenses 122 147 129 Operating result 70 93 59 Operating margin 19% 22% 16% Interest result (27) (26) (15) Other finance result (3) 11 (17)
Slide 12: OPEX reductions ahead of schedule
OPEX reductions ahead of schedule 60 52 200 40 31 Marketing 17 22 21 20 168 0 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 150 147 60 56 57 129 47 47 46 122 118 40 Total SG&A 20 100 OPEX 0 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 60 50 38 38 37 40 34 31 R&D 20 0 0 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q3 '08 Q4 '08 Q1
Slide 13: Cash flow
Cash flow in € millions Q3 ’09 Q3 ’08 Q2 ’09 Operating result 70 92 57 Depreciation and amortisation 26 24 29 Financial gains / (losses) 9 26 (5) Other 1 4 3 Changes in working capital 8 (41) 14 Cash generated from operations 114 105 98 Interest received 0 1 1 Interest paid (23) (24) (3) Tax (paid)
Slide 14: Balance sheet
Balance sheet in € millions 30 Sept '09 30 June '09 31 Dec '08 Goodwill 855 855 855 Intangible assets 978 992 1,011 Property, plant & equipment 45 46 53 Deferred tax assets 37 40 33 Investments 7 7 6 Inventories 78 64 145 Receivables, prepayments & financial instruments 268 291 343 Cash and equivale
Slide 15: Financial overview
Financial overview Debt Covenant 4 1553 1500 3.5 3.5 1388 1391 1394 3.1 1326 3 3.0 1250 1159 2.5 1109 1000 1006 996 2 2.0 2.0 2.0 2.0 750 599 1 500 Q2 Q3 Q4 H1 H2 H1 H2 H1 H2 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 '09 '09 '09 '09 '10 '11 '11 '12 '12 Gross debt Net debt Leverage ratio Covenant Redemption
Slide 16: Questions?
Questions? Tomtom ff
Slide 17: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q2 ‘091 150,560,769 Common shares outstanding end of Q3 ‘09 221,687,375 Average shares outstanding end of Q3 ‘09 213,380,749 In the money share options as of Q2’09 7,091,972 In the money share options as of Q3’09 7,091,972 Average dilutive share op
Slide 18: Impact of FX rate changes
Impact of FX rate changes Q3 '09 Q2 '09 Q3 '08 in € millions rates rates rates Revenue 365 367 362 Cost of sales 174 180 164 Gross margin 52% 51% 55% Gross profit 191 187 198 Average rates US dollar 1.42 1.36 1.54 GB pound 0.86 0.80 0.80 AUS dollar 1.72 1.67 1.67 18 © 2009 TomTom