Slide 1: TomTom Group Fourth quarter 2008 results
TomTom Group Fourth 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: Fourth quarter 2008 review
Fourth quarter 2008 review Macro economic environment tough market conditions Business profitable operations strong cash generation tight cost management Strategy execution on track 3 All percentages and sums are calculated on non rounded numbers © 2009 TomTom
Slide 4: Overview of progress I
Overview of progress I • TomTom – strong market share – continued innovation • Mobile – new generation of on board and off board solutions in development • WORK – fastest growing European telematics provider – continued steady growth 4 All percentages and sums are calculated on non rounded numbers ©
Slide 5: Overview of progress II
Overview of progress II • Automotive – affordable navigation – user upgradable – volume car segment • Tele Atlas – operational efficiency – Further product differentiation – new delivery platform 5 All percentages and sums are calculated on non rounded numbers © 2009 TomTom
Slide 6: Cost reductions
Cost reductions Cost reductions are made up of • reduction # of staff - 240 jobs by end of Q1 ‘09 • marketing spend aligned with lower revenue expectations • minimise discretionary spending and number of contractors • acceleration of restructuring and integration of Tele Atlas Total OPEX savings of
Slide 7: Our current thinking on 2009
Our current thinking on 2009 Although our visibility is limited, we think the market and our revenue will develop as follows: Market size and share in 2009 • market size Europe and North America 15 million and 17 million units respectively (2008: 17 million each) TomTom outlook 2009 • PND units of b
Slide 8: Revenue analysis
Revenue analysis Revenue* (in € millions) ASP PNDs (in €) 100% 150 5% 20% 16% 100 141 136 80% 100 50 0 60% Q4 '07 Q3 '08 Q4 '08 95% 84% Units PNDs (in millions) 40% 80% 5 4 20% 3 2 4.3 4.4 1 2.5 0% 0 Q4 '07 Q3 '08 Q4 '08 Q4 '07 Q3 '08 Q4 '08 PNDs Other 8 All percentages and sums are calculated on no
Slide 9: Goodwill impairment
Goodwill impairment • Goodwill represents the excess of the costs of an acquisition over the fair value of the net assets of Tele Atlas • The acquisition of Tele Atlas added €1.9 billion of goodwill to our balance sheet • Impairment review at year end determined that the value of goodwill needed to
Slide 10: TomTom OPEX (excluding Tele Atlas) – stable trend
TomTom OPEX (excluding Tele Atlas) – stable trend* in € millions Q4 ’08 Q3 ’08 Q2 ‘08 Q1 ‘08 Q4 ’07 R&D -17 -13 -17 -19 -15 % of revenue 4% 3% 4% 7% 2% Amortisation of t&d -5 -6 -5 -6 -5 % of revenue 1% 2% 1% 2% 1% Marketing -48 -26 -37 -20 -62 % of revenue 10% 7% 8% 8% 10% SG&A -38 -35 -35 -37 -35
Slide 11: Tele Atlas OPEX – downward trend
Tele Atlas OPEX – downward trend * OPEX (in € millions) 80 60 40 72 70 67 64 57 20 0 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 in € millions Q4 ’07 Q1 ‘08 Q2 ‘08 Q3 ’08 Q4 ’08 Total OPEX 72 67 70 64 57 % of revenue 74% 115% 98% 88% 66% * Pro-forma and excluding goodwill impairment and restructuring charges
Slide 12: Earnings overview TomTom Group
Earnings overview TomTom Group (pro-forma excluding impairment & restructuring) in € millions Q4 ’08 Q4 ’07 Q3 ‘08 Operating result 70 159 93 Interest result (28) (26) (26) Other finance result 53 (5) 11 Result of associate 0.0 0.5 0.0 Taxation (24) (29) (20) Effective tax rate 25.7% 22.5% 25.2% Net
Slide 13: Impact of FX rate changes
Impact of FX rate changes in € millions Q4 ’08 rates Q3 ‘08 rates Q4 ‘07 rates Revenue 473 459 475 Cost of Sales (US dollar) (305) (276) (284) Gross margin 35.5% 40.0% 40.2% Gross profit 168 184 191 Average rates US dollar 1.34 1.53 1.45 GB pound 0.79 0.80 0.70 AUS dollar 1.84 1.67 1.59 13 All perce
Slide 14: Cash flow TomTom Group
Cash flow TomTom Group (excluding impairment) in € millions Q4 ’08 Q3 ’08 Q4 ’07 Operating result 54 92 144 Depreciation and amortisation 28 24 7 Financial gains (losses) 56 26 (7) Other 4 4 25 Changes in working capital 108 (41) (14) Cash generated from operations 251 105 155 Interest received 2 1
Slide 15: Balance sheet TomTom Group
Balance sheet TomTom Group YE ’07 in € millions Q4 ’08 Q3 ’08 pro YE ‘07 forma Non-current assets Goodwill 855 1,942 1,895 0 Intangible assets 1,011 1,003 1,013 56 Property, plant & equipment 53 51 42 18 Deferred tax assets 33 34 34 24 Investment in associate 6 7 10 817 Current assets Inventories 14
Slide 16: Questions?
Questions? Tomtom 5)