Slide 1: TomTom Q3 2010 results
TomTom Q3 2010 results Harold Goddijn - CEO & Marina Wyatt - CFO | 20 October 2010
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 2010 highlights
Third quarter 2010 highlights › Strong revenue of Consumer and new revenue lines › New PND ranges introduced › Automotive contracts underpin strategy HD Traffic now available across Europe; number of connected › users growing strongly 3
Slide 4: Operational developments
Operational developments Connectivity play across multiple platforms › Introducing connected PND ranges across Europe > GO LIVE 1000 made available > VIA LIVE announced › New “connected” Automotive contracts > TomTom to supply solutions for Renault, Mazda and Sony › Business Solutions continues to s
Slide 5: PND market size and share
PND market size and share* Europe and North America › Market size > Europe 3.4 million units (Q3 ‘09: 3.8 million) > North N th America A i 2.8 2 8 million illi units it (Q3 ‘09: ‘09 3.1 3 1 million) illi ) › Market share growth in Europe and North America Europe North America 50% 50% 40% 40% 30% 30
Slide 6: Outlook 2010
Outlook 2010 › On track to achieve full year guidance › Full year guidance of broadly flat revenue and EPS › 2009: revenue €1.48 billion, EPS €0.47 6
Slide 7: Revenue analysis
Revenue analysis › Strong growth of new revenue lines › Automotive and Business Solutions grew 48% and 37% respectively › Content & Services revenue increased 6% to €90 million › Strong growth in Consumer C&S and Automotive map sales compensate for weaker Licensing quarter › C&S revenue increased to
Slide 8: Earnings overview
Earnings overview in € millions Q3 '10 Q3 '09 Q2 '10 Gross result 178 191 185 Gross margin 48% 52% 51% Operating expenses 123 122 135 Operating result 55 70 50 Operating margin 15% 19% 14% Interest result (10) (27) (9) Other finance result (20) (3) 5 Result associates (1) 1 (2) Result before tax 25
Slide 9: Impact of FX rate changes
Impact of FX rate changes Q3 ‘10 10 results based on current exchange rates and that of previous quarters compared Q3 '10 Q3 '09 Q2 '10 rates rates rates In € millions Revenue 375 360 370 Cost of sales 197 180 188 Gross margin 48% 50% 49% Gross profit 178 180 182 P&L rates in € US dollar 1.27 1.42 1
Slide 10: Operating expenses
Operating expenses 60 37 41 40 36 160 40 31 R&D 20 134 135 0 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 127 122 123 120 30 26 24 21 20 15 17 Total Marketing OPEX 10 0 80 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 60 52 51 48 46 47 40 SG&A 20 40 0 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10
Slide 11: Cash flow
Cash flow in € millions Q3 '10 Q3 '09 Q2 '10 Operating result 55 70 50 Depreciation and amortisation 26 26 26 Financial (losses) / gains (1) 9 4 Other 0 1 7 g in workingg capital Changes p ((16)) 8 ((5)) Cash generated from operations 63 114 82 Interest received 0 0 0 Interest paid (8) (23) (5) Tax
Slide 12: Balance sheet
Balance sheet in € millions 30 Sep '10 30 Jun '10 Goodwill 855 855 Intangible assets 958 965 Property, plant & equipment 36 39 Investments 7 7 Deferred tax assets 24 24 Inventories 80 63 Receivables, prepayments & financial instruments 291 315 Cash and equivalents 268 367 Total assets , 2,518 2,634
Slide 13: Financial overview
Financial overview Gross and net debt Net debt/LTM EBITDA covenant 4 M EBITDA 1,553 3.5 3.5 1,400 1,388 1,391 1,394 3.1 3.0 1,326 3 25 2.5 Net debt / LTM 1,109 1,159 1,000 1,006 996 2.0 2.0 2.0 2.0 2 790 808 808 1.3 1.3 1.2 1.2 683 600 599 1 496 442 442 416 200 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4
Slide 14: Thank you Any questions?
Thank you Any questions? TOMTOMY
Slide 15: Market size Europe and North America
Market size Europe and North America* Volume ('000s) Q1 '10 Q2 '10 Q3 '10 Q4 '10 YTD 2010 Europe 2,749 3,089 3,414 9,252 North America 2,564 3,351 2,821 8,736 Volume ('000s) Q1 '09 Q2 '09 Q3 '09 Q4 '09 2009 Europe 3,177 3,704 3,761 4,252 14,895 N th America North A i 2 641 2,641 3 470 3,470 3 065 3,
Slide 16: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q2 ‘10 221,718,074 Common shares outstanding end of Q3 ‘10 221,718,074 Average shares outstanding end of Q3 ‘10 221,718,074 In the money share options as of Q2’10 0 In the money share options as of Q3’10 0 Average dilutive share options outstanding