Tomtom Nv · EURONEXT:TOM2
Tomtom Nv — Q3 2005 Earnings Presentation
23 slides from Tomtom Nv's earnings presentation, Oct 27, 2005
Slide 1: Third Quarter Results Presentation
Third Quarter Results Presentation Taking Navigation to the Mass Market 27 October 2005 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
Slide 3: Agenda
Agenda Topic Speaker 1) Market Developments Harold Goddijn (CEO) and Business Update 2) Q3 Financial Results Marina Wyatt (CFO) 3) Questions & Answers 3
Slide 4: Market Developments and Business Update
Market Developments and Business Update 4
Slide 5: Market Developments
Market Developments Market acceptance of personal navigation products has continued to accelerate Integrated device volumes overtook PDA/mobile solutions in Europe in Q2, smart phones still small part of market More products from more suppliers are driving product segmentation and greater cons
Slide 6: Third Quarter Highlights
Third Quarter Highlights € 250.0 million revenue – up 118% on quarter sequentially (Q2 ’05: € 114.8 million) – up 373% on quarter year-on-year (Q3 ’04: € 52.8 million) € 58.7 million net profit – up 166% on quarter sequentially (Q2 ’05: € 22.1 million) – up 643% on quarter year-on-year (Q3 ’04:
Slide 7: North American Market overview
North American Market overview Revenues grew to € 10.5 million compared to € 5.0 million in the second quarter Distribution network strengthened to 2,500 outlets. By the end of October this number will increase to 3,700 TomTom now has #3 market share in the US personal navigation market Mult
Slide 8: Fourth quarter business outlook
Fourth quarter business outlook We are well prepared for the fourth quarter: – market leading position – strong retail presence – appropriately stocked channels – broad product range Substantial marketing campaigns in Europe and the US to support fourth quarter sales TomTom One shipping in Oct
Slide 9: Here is ONE
Here is ONE Entry-level product •Speaker set size and quality •Battery life •Form factor •Price 9
Slide 10: Q3 Financial Results
3 Q3 Financial Results tomtom
Slide 11: Financial Summary
Financial Summary Change vs. Change vs. (€ millions) Q3 2005 Q2 2005 Q2 2005 Q3 2004 Q3 2004 Revenue 250.0 114.8 118% 52.8 373% Gross Profit 108.3 47.9 126% 24.0 351% Gross Margin 43% 42% - 45% - Operating 82.2 27.0 204% 13.0 532% Profit Operating 33% 24% - 25% - Profit Margin Net Profit 58.7 22.1 1
Slide 12: Revenue Analysis
Revenue Analysis Revenue (€ millions) Units (thousands) 600 260 538 250.0 13.5 500 240 20.0 400 220 300 262 200 200 160 180 97 111 100 73 160 0 Q3 04 Q2 05 Q3 05 140 120 114.8 ASP (€) 6.5 216.5 12.6 500 463 100 402 80 400 365 52.8 60 300 2.8 95.8 40 16.0 200 165 114 125 20 100 34.0 0 0 Q3 04 Q2 05 Q
Slide 13: Q3 Revenue by Product and Geography
Q3 Revenue by Product and Geography By Product Group By Geography FY 2004 FY 2004 4.2% North America 2.9% 35.7% Europe 97.1% 60.1% Q3 2005 Q3 2005 5.4% North America 4.2% Australia 1.3% 8.0% Europe 94.5% 86.6% Integrated Devices Non-Integrated Devices Other 13
Slide 14: Quarterly Margin Comparison
Quarterly Margin Comparison Margins (%) 50 47.1 45.3 45.1 43.3 41.7 40 32.9 30 27.9 24.5 23.5 23.5 21.4 20.8 19.2 20 15.0 13.9 10 0 Gross Margin Operating Margin Net Profit Margin Q3 04 Q4 04 Q1 05 Q2 05 Q3 05 14
Slide 15: Operating Expenses Overview
Operating Expenses Overview Q3 2005 Q2 2005 Q3 2004 % of % of % of €m Revenue €m Revenue €m Revenue R&D 2.3 0.9% 2.2 1.9% 0.8 1.5% Marketing 10.5 4.2% 12.1 10.5% 7.0 13.2% Other SG&A 12.2 4.9% 6.2 5.4% 3.0 5.7% Accounting Charge 1.1 0.4% 0.4 0.3% 0.2 0.4% for Share Options Total Operating 26.1 10.4%
Slide 16: Earnings Overview
Earnings Earnings Overview Overview (€ millions) Q3 2005 Q2 2005 Q3 2004 Operating Profit 82.2 27.0 13.0 Financial Expenses and 3.4 5.7 -0.3 Income, Net Of which FX Gains / Losses 2.1 5.4 -0.6 Income Tax 27.0 10.6 4.7 Effective tax rate 31.5% 32.4% 37.3% Net Profit 58.7 22.1 7.9 Average # of shares
Slide 17: Cash Flow
Cash Flow (€ millions) Q3 2005 Q2 2005 Q3 2004 Operating Profit 82.2 27.0 13.0 Depreciation and Amortization 0.9 0.4 0.3 Additions to Provisions 9.1 0.9 0.2 Changes in Working Capital (39.9) (10.5) (13.0) Other Operating Items 3.6 2.0 (0.2) Cash Generated from Operations 55.9 19.8 0.3 Net Cash Flow
Slide 18: Balance Sheet
Balance Sheet (€ millions) Q3 2005 Q2 2005 YE 2004 Non-Current Assets 17.5 3.9 3.0 Current Assets Inventories 68.0 28.2 13.4 Receivables, Prepayments & 136.2 68.0 34.3 Financial Instruments Cash and Equivalents 230.5 187.9 40.2 Total Assets 452.2 288.0 90.9 Shareholders’ Equity 250.8 191.1 37.8 Long
Slide 19: 2005 FY Financial Outlook
2005 FY Financial Outlook Full year 2005 guidance increased. Revenues now expected to be approximately three and a half times 2004 revenues Gross margins expected to be slightly lower than in 2004 with operating margins modestly higher because of operating cost leverage ASPs expected to decrea
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Slide 21: Appendix
wy Appendix tomtom
Slide 22: Calculation of Accounting Charge for Share Options
Calculation of Accounting Charge for Share Options 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 – The monthly charge to the P&L is calculated as total v
Slide 23: Calculation of average number of fully diluted shares outstanding
Calculation of average number of fully diluted shares outstanding Common Shares Outstanding as of 30-Jun-2005: 107,281,473 Common Shares Outstanding as of 30-Sep-2005: 107,281,473 Average Shares Outstanding as of 30-Sep-2005: 107,281,473 Share Options as of 30-Jun-2005: 9,768,259 New Shares Options