Slide 1: Fourth Quarter 2006 Results
Fourth Quarter 2006 Results 22 February 2007 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 it o
Slide 3: Agenda
Agenda Business Review Harold Goddijn, CEO Financial review Marina Wyatt, CFO Business Outlook Harold Goddijn, CEO 3
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights • Record quarter - €478 million revenue and €80 million net profit • Strong gross margin of 46% • Cash generated from operations of €132 million • 1.9 million PNDs shipped: more than double Q4 ’05 • New ONE range a great success • Joint development with Vodafone NL for new
Slide 5: Strong Growth of PNDs in Europe Continues
Strong Growth of PNDs in Europe Continues Trends in PND sell-out* in Europe over the last three years 1,400 1,200 1,000 800 600 400 200 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2004 2005 2006 * Based on December 2006 GfK sell out figures for PNDs, (covers approx. 2/3 of overall market) 5
Slide 6: TomTom Products are the World's Favourite and Most Sold PNDs
TomTom Products are the World’s Favourite and Most Sold PNDs • Market leader in Europe with 50% market share • Units shipped in North America 3 times higher than prior year, 20% exit market share • Won more than 150 consumer awards • TomTom ONE is the world’s number one selling PND 6
Slide 7: Installed Base Grew to Over 8 Million
Installed Base Grew to Over 8 Million • TomTom HOME – Portal to manage content – Access maps, voices, traffic, safety cams etc. – Access upgrades – Share data • Growing Aftermarket – Accessories – Peripherals – Map updates 7
Slide 8: Next Generation Travel Time Information
Next Generation Travel Time Information • Implementation on schedule, available throughout the Netherlands in second half of 2007 • Wide coverage - major, regional, Current Coverage local and urban roads • Accurate journey times and automatically optimized routing become a reality • A unique and unr
Slide 9: Agenda
Agenda Business Review Harold Goddijn, CEO Financial review Marina Wyatt, CFO Business Outlook Harold Goddijn, CEO 9
Slide 10: Financial Summary
Financial Summary in € millions Q4 ‘06 Q3 ‘06 ∆ 2006 2005 ∆ Revenue 478 353 35% 1,364 720 89% Gross Profit 218 154 42% 579 311 86% Gross Margin 46% 44% - 42% 43% - Operating Profit 126 101 25% 340 195 74% Operating Profit Margin 26% 29% - 25% 27% - Net Profit 80 73 10% 222 143 55% Net Profit Margin
Slide 11: Revenue by Product and Geography
Revenue by Product and Geography By Product Group By Geography FY 2006 FY 2006 5% Australia 2% 2% North America 8% Europe 90% 93% Q4 2006 Q4 2006 2% 5% Australia 3% North America 7% Europe 90% 93% PNDs PDA/smartphone solutions Other 11
Slide 12: Fourth Quarter Revenue Analysis
Fourth Quarter Revenue Analysis Revenue (in € millions) ASP PNDs (in €) 300 500 478 25 200 11 337 285 230 100 400 353 14 0 3 Q4 '05 Q3 '06 Q4 '06 300 289 10 Units PNDs (in '000s) 16 2,000 442 200 1,500 336 263 1,000 1,915 100 1,180 500 779 0 0 Q4 '05 Q3 '06 Q4 '06 Q4 '05 Q3 '06 Q4 '06 PNDs PDA/smart
Slide 13: Margin Comparison
Margin Comparison Margins (% of revenue) 50% 46% 44% 43% 42% 40% 30% 29% 27% 26% 25% 21% 20% 20% 17% 16% 10% 0% Gross Margin Operating Margin Net Profit Margin Q3 ‘06 Q4 ‘06 FY ‘05 FY ‘06 13
Slide 14: Operating Expenses Overview
Operating Expenses Overview in € millions Q4 ‘06 Q3 ‘06 Q4 ‘05 R&D 12.8 8.6 3.0 % of revenue 2.7% 2.4% 1.0% Marketing 44.6 15.5 35.9 % of revenue 9.3% 4.4% 12.4% Other SG&A 28.6 24.0 13.9 % of revenue 6.0% 6.8% 4.8% Operating expenses 86.1 48.1 52.8 % of revenue 18.0% 13.6% 18.2% Accounting charge f
Slide 15: Earnings Overview
Earnings Overview in € millions Q4 ‘06 Q3 ‘06 Q4 ’05 Operating profit 125.7 100.6 67.4 Net financial expenses and income (11.3) 3.3 3.8 of which FX gains / losses (13.5) 0.8 3.3 Taxation (34.0) (31.2) (22.8) effective tax rate 29.7% 30.1% 32.0% Net Profit 80.4 72.6 48.4 Average # of shares outstandi
Slide 16: Cash Flow Overview
Cash Flow Overview in € millions Q4 ‘06 Q3 ‘06 2006 2005 Operating profit 125.7 100.6 340.2 195.1 Depreciation and amortization 5.1 4.5 18.2 3.4 Additions to provisions 6.8 10.3 22.8 20.9 Changes in working capital (5.0) 2.0 10.0 (134.6) Other operating items (0.6) 0.0 0.9 17.6 Cash generated from o
Slide 17: Balance Sheet
Balance Sheet in € millions YE 2006 Q3 2006 YE 2005 Non-Current Assets Intangible Assets 39.2 41.8 15.8 Property, plant & equipment 7.9 8.0 5.2 Deferred Tax Assets 12.1 5.4 1.3 Current Assets Inventories 123.0 108.7 103.2 Receivables, Prepayments & Financial Instruments 283.0 277.4 159.7 Cash and Eq
Slide 18: 2007 FY Financial Outlook
2007 FY Financial Outlook • Expected PND market size: Europe 14 million units, North America 4 million units • Total PNDs for TomTom estimated at 7 to 8 million units • TomTom revenue estimated at €1.6 billion to €1.8 billion • Consistent target gross margin of c. 40% and operating margin of c. 20%
Slide 19: Agenda
Agenda Business Review Harold Goddijn, CEO Financial review Marina Wyatt, CFO Business Outlook Harold Goddijn, CEO 19
Slide 20: TomTom's development
TomTom’s development • In 5 years TomTom’s revenue grew from €8 million to €1.4 billion • We defined the personal navigation category • We are the largest company in the space with an installed base of 8 million users • TomTom owners benefit from less stress, less distance travelled, and greater saf
Slide 21: TomTom 2007 Priorities
TomTom 2007 Priorities • Deliver exciting roadmap of new products and services • Be first to market with key innovations • Maintain 50% market share in Europe and increase market share in North America • Roll-out travel time information service in the Netherlands and prepare for roll-out to other ge
Slide 22: Questions
TomTom yw Questions 22
Slide 23: Annex
Annex For further information please contact TomTom Investor Relations Tel: +31 20 850 0994 ir@tomtom.com www.investors.tomtom.com 23
Slide 24: World's first embedded PND solution for the automotive industry
World’s first embedded PND solution for the automotive industry • Designed a complete PND that can dock with a 2-DIN car radio • Joint development with Fujitsu-Ten (Eclipse) • PND will control car radio whilst docked • PND can also be integrated in other applications 24
Slide 25: TomTom launched FM Transmitter Mount in Europe
TomTom launched FM Transmitter Mount in Europe • Available for European portable navigation customers for the first time: wireless integration of navigation instructions and music through car stereo • The FM Transmitter Mount broadcasts navigation instructions and music from a TomTom GO device over
Slide 26: Revenue Analysis 2006
Revenue Analysis 2006 Revenue in € millions ASP PNDs (in €) 368 1400 1,364 65 300 270 1,364 31 1200 200 125 91 100 1000 0 2005 2006 800 720 32 Units PNDs (in '000s) 65 1,268 600 5,000 4,687 4,000 400 3,000 623 2,000 1,688 200 1,000 524 343 0 0 2005 2006 2005 2006 PNDs PDA/smartphone solutions Other
Slide 27: Operating Expenses Overview 2006
Operating Expenses Overview 2006 in € millions 2006 2005 ∆ R&D 36 9 300% % of revenue 2.7% 1.2% Marketing 101 63 60% % of revenue 7.4% 8.8% Other SG&A 80 38 111% % of revenue 5.9% 5.3% Operating expenses 217 111 96% % of revenue 15.9% 15.3% Accounting charge for share options 21 5 320% % of revenue
Slide 28: Earnings Overview 2006
Earnings Overview 2006 in € millions 2006 2005 ∆ Operating profit 340 195 74% Net financial expenses and income (25) 15 of which FX gains / losses (32) 12 Taxation (93) (67) 39% effective tax rate 29.6% 31.8% Net Profit 222 143 55% Average # of shares outstanding, diluted (in millions) 117 114 3% Di
Slide 29: Cash Flow 2006
Cash Flow 2006 in € millions 2006 2005 ∆ Operating profit 340 195 74% Depreciation and amortization 18 3 500% Additions to provisions 23 21 9% Changes in working capital 10 (135) Other operating items 1 18 Cash generated from operations 392 102 284% Interest received 9 3 200% Tax paid (110) (63) 75%
Slide 30: Balance Sheet Analysis 2006
Balance Sheet Analysis 2006 Assets in € millions Equity & Liabilities in € millions 903 903 Cash & Equivalents Current Liabilities 900 900 Receivables & Provisions & Long Prepayments Term Liabilities Inventories Shareholder's Equity 750 750 307 Non-Current Assets 438 600 600 45 463 463 450 450 135 1
Slide 31: Accounting Charge for Share Options
Accounting Charge for Share Options • Under IFRS, 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 and the calculations are reviewed by our auditors; – The m
Slide 32: Outstanding Shares
Outstanding Shares Common shares outstanding end of Q3 2006 110,757,091 Common shares outstanding end of Q4 2006 112,921,566 Average shares outstanding end of Q4 2006 112,160,347 Share options as of end of Q3 2006 11,106,006 New shares options as of 9 November 2006 1,705,000 Exercised share options
Slide 33: Share Options Vesting Schedule
Share Options Vesting Schedule Number of options in 2006-2009 (in ‘000s) 1 Jun 1 Nov 1 Dec 10 Aug 10 Nov 28 Feb 9 May 8 Aug 9 Nov 2007 2007 2007 2008 2008 2009 2009 2009 2009 2,081 €0.75 1,500 €3.75 190 €3.75 1,110 €26.44 3,308 €28.82 105 €25.50 113 €37.68 188 €28.58 1,705 €33.96 33
Slide 34: End
TomTom yw End 34