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MarketScreener Homepage  >  Equities  >  Euronext Amsterdam  >  TomTom NV    TOM2   NL0013332471

TOMTOM NV

(TOM2)
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TomTom : Q3 2020 results presentation

10/14/2020 | 08:50am EST

Q3 2020 RESULTS

Harold Goddijn - CEO Taco Titulaer - CFO

14 October 2020

Operational highlights

  • Market conditions continue to improve
  • A multiyear contract extension to provide maps, traffic and maps APIs to Uber
  • A map editing partnership with Uber helping us maintain the freshest maps
  • A new global deal to provide maps, navigation and traffic to Maserati
  • A new product launch, RoadCheck, allowing for safer activation of automated driving functions

1 / 15

Financial highlights

  • Group revenue of €148m (Q2 '20 €124m | Q3 '19: €164m)
  • Automotive operational revenue of €59m

(Q2 '20: €48m | Q3 '19: €88m)

  • Gross margin of 76% (Q2 '20 86% | Q3 '19: 78%)
  • Free cash flow -/- €20m (Q2 '20 -/- €54m | Q3 '19: €23m)
  • Net cash of €346m (Q2 '20: €373m | Q3 '19: €393m)

Quarter on quarter development

Automotive operational revenue

Free cash flow

in € millions

in € millions

85

+24%

14 59

48

-20

Q1 '20

Q2 '20

Q3 '20

Q4 '20

-54

Q1 '20

Q2 '20

Q3 '20

Q4 '20

Strong sequential growth expected in Q4 '20

Free cash flow is expected around €30m in Q4 '20

2020 Outlook

  • Full year revenue expected around €530m
  • Full year free cash flow expected around -/- €30m

Thank you - Any questions?

Revenue breakdown

BY SEGMENT

YTD '20

YTD '19

28%

€403m

42%

€545m

58%

72%

Location Technology

Consumer

BY TYPE

YTD '20

YTD '19

18%

34%

€403m€545m

66%

82%

Software & content

Hardware

10 / 15

P&L

(€ in thousands)

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

Q3 '20

YTD '20

YTD '19

REVENUE

210,803

164,206

156,223

131,197

123,703

147,851

402,750

544,536

Automotive

75,944

55,404

69,190

49,788

51,588

65,945

167,320

196,474

Enterprise

40,156

41,141

41,187

41,481

42,211

39,654

123,346

119,130

Consumer

94,703

67,661

45,846

39,928

29,904

42,252

112,084

228,932

Cost of sales

68,759

36,277

32,249

28,631

17,921

35,861

82,413

153,309

GROSS RESULT

142,044

127,929

123,974

102,566

105,782

111,990

320,337

391,227

Gross margin

67 %

78%

79%

78%

86%

76%

80%

72%

Research and development expenses

78,840

80,272

91,175

76,195

75,055

80,155

231,405

231,610

Amortization of technology and databases

106,561

65,038

65,120

64,740

64,314

64,293

193,348

196,073

Marketing expenses

6,432

7,057

9,002

6,854

4,946

5,825

17,625

20,434

Selling, general and administrative expenses

33,170

32,647

36,398

32,524

25,665

29,327

87,514

96,346

TOTAL OPERATING EXPENSES

225,003

185,014

201,695

180,313

169,980

179,600

529,892

544,463

OPERATING RESULT (EBIT)

-82,959

-57,085

-77,721

-77,747

-64,198

-67,610

-209,555

-153,236

EBIT margin

-39%

-35%

-50%

-59%

-52%

-46%

-52%

-28%

EBITDA

30,983

15,854

-4,588

-5,442

7,313

3,856

5,726

65,616

EBITDA margin

15%

10%

-3%

-4%

6%

3%

1%

12%

Net result from continuing operations

-65,254-43,429-68,958-62,753-62,015

-66,968

-191,735

-124,008

Net result tax profit from discontinued operations

807,237

825,852

NET RESULT

741,983

-43,429-68,958-62,753-62,015

-66,968

-191,735

701,844

Automotive operational revenue

89,639

88,254

116,010

85,339

47,858

59,354

192,551

264,632

Diluted EPS from continuing operations

-0.34

-0.33

-0.52

-0.48

-0.48

-0.51

-1.47

-0.67

11 / 15

Balance Sheet

(€ in thousands)

30-Jun-19

30-Sep-19

31-Dec-19

31-Mar-20

30-Jun-20

30-Sep-20

ASSETS

Goodwill

192,294

192,294

192,294

192,294

192,294

192,294

Intangible assets

509,597

444,646

380,160

312,168

247,122

181,458

Other contract related assets

21,606

23,679

23,923

26,519

29,885

25,864

Other non-current assets

73,421

72,125

71,454

78,481

79,026

74,443

Inventories

19,033

27,483

25,315

23,971

31,902

27,611

Trade receivables

111,981

136,755

99,776

66,507

52,751

110,105

Unbilled receivables

42,621

33,359

34,374

42,393

52,688

56,400

Other receivables and prepayments

56,891

59,435

45,351

44,539

38,996

35,016

Cash and cash equivalents and fixed term deposits

372,030

392,865

436,520

431,563

373,369

346,463

TOTAL ASSETS

1,399,474

1,382,641

1,309,167

1,218,435

1,098,033

1,049,654

TOTAL EQUITY

774,619

735,016

665,932

574,294

516,281

450,503

Deferred tax liability

57,605

42,764

27,283

20,570

14,216

7,527

Lease liability

36,757

34,672

34,268

42,924

43,926

40,143

Provisions

67,261

56,809

55,020

53,555

49,482

54,706

Trade payables

52,871

46,651

47,085

32,266

25,144

22,169

Deferred revenue

296,861

348,230

369,317

395,411

371,950

396,954

Other contract related liabilities

40,519

37,692

26,745

21,031

18,150

19,274

Accruals and other liabilities

72,981

80,807

83,517

78,384

58,884

58,378

TOTAL LIABILITIES

624,855

647,625

643,235

644,141

581,752

599,151

TOTAL EQUITY AND LIABILITIES

1,399,474

1,382,641

1,309,167

1,218,435

1,098,033

1,049,654

Net cash

372,030

392,865

436,520

431,563

373,369

346,463

12 / 15

Cash flow

(€ in thousands)

Q2 '19

Q3 '19

Q4 '19

Q1 '20

Q2 '20

Q3 '20

YTD '20

YTD '19

Operating result

-82,959

-57,085

-77,721

-77,747

-64,198

-67,610

-209,555

-134,220

Financial gains/(losses)

-208

1,424

-1,098

145

-1,059

-2,249

-3,163

779

Depreciation and amortisation

113,942

72,939

73,133

72,305

71,511

71,465

215,281

218,852

Other

-1,764

-12,608

-9,031

800

-1,151

78

-273

-14,568

Changes in working capital

1

-6,830

23,431

68,062

22,596

-53,089

-19,185

-49,678

-17,585

CASH GENERATED FROM OPERATIONS

22,181

28,101

53,345

18,099

-47,986

-17,501

-47,388

53,258

Interest received

213

339

357

95

585

266

946

829

Interest (paid)

-1,203

-262

-409

-386

-798

-353

-1,537

-1,902

Corporate income taxes (paid)/received

-6,816

-1,062

-2,034

-2,004

-3,932

-1,399

-7,335

-9,765

CASH FLOWS FROM OPERATING ACTIVITIES

14,375

27,116

51,259

15,804

-52,131

-18,987

-55,314

42,420

CASH FLOWS FROM INVESTING ACTIVITIES

867,491

-4,445

-226,046

-1,949

32,216

36,340

66,607

853,133

CASH FLOWS FROM FINANCING ACTIVITIES

-750,221

-2,231

-3,762

-18,633

-2,971

-3,996

-25,600

-755,354

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

131,645

20,440

-178,549

-4,778

-22,886

13,357

-14,307

140,199

Free cash flow

Cash flow from operating activties

14,375

27,116

51,259

15,804

-52,131

-18,987

-55,314

42,420

Investments in intangible assets

-3,530

-1,573

-1,462

-9,954

Investment in tangible assets

-2,592

-2,872

-2,118

-2,111

-1,849

-1,027

-4,987

-10,526

Free cash flow from total operations

8,253

22,671

47,679

13,693

-53,980

-20,014

-60,301

21,940

Free cash flow from discontinued operations

7,378

-3,866

Free cash flow from continuing operations

15,631

22,671

47,679

13,693

-53,980

-20,014

-60,301

18,074

FCF from continuing operations as a % revenue

7%

14%

31%

10%

-44%

-14%

-15%

3%

1 Includes the movement of non-current deferred revenue.

13 / 15

Outstanding shares

Q3 '20

YTD '20

Common shares outstanding at the end of the period

132,366,672

132,366,672

Shares in issue at the beginning of the period

130,207,823

131,541,998

Shares in issue at the end of the period

130,223,136

130,223,136

Average shares in issue during the period1

130,220,376

130,670,717

[A]

In the money share options at the beginning of the period

928,280

2,709,084

In the money share options at the end of the period

928,280

1,465,154

Average potential dilutive share options outstanding during the period2

941,164

1,637,960

Average non-dilutive share options during the period

658,260

1,114,226

Average shares outstanding from dilution of options3

282,904

523,734

[B]

Average shares outstanding from dilution of restricted stock units

474,586

536,564

[C]

Average fully diluted shares outstanding during Q3 '20 and YTD '204

130,977,866

131,731,015

[A+B+C]

  1. Shares held in treasury of 2 143 536 are taken into account when calculating the weighted average shares outstanding.
  2. In the money options based on average share price for the period.
  3. Weighted average diluted options based on the period outstanding.

4 The average share price for the quarter was €7.04 and the average share price for the year was €7.81

14 / 15

Important Notice

DISCLAIMER

This document contains certain forward-looking statements with respect to the financial position and results of TomTom's activities. We have based these forward-looking statements on our current expectations and projections about future events, including numerous assumptions regarding our present and future business strategies, operations and the environment in which we will operate in the future. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, and you should not place undue reliance on them. Many of these risks and uncertainties relate to factors that are beyond TomTom's ability to control or estimate precisely, such as levels of customer spending in major economies, changes in consumer preferences, the performance of the financial markets, the levels of marketing and promotional expenditures by TomTom and its competitors, costs of raw materials, employee costs, exchange-rate and interest-rate fluctuations, changes in tax rates, changes in law, acquisitions or disposals, the rate of technological changes, political developments in countries where TomTom operates and the risk of a downturn in the market. Statements regarding market share, including TomTom's competitive position, contained in this document are based on outside sources such as specialized research institutes, industry and dealer panels in combination with management estimates.

The forward-looking statements contained herein speak only as of the date they are made. We do not assume any obligation to update any public information or forward- looking statement in this document to reflect events or circumstances after the date of this document, except as may be required by applicable laws.

You will be solely responsible for your own assessment of the market and the market position of TomTom and you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of TomTom's business. This document does not constitute or form part of, and should not be constructed as, an offer or invitation to subscribe for or purchase any TomTom securities.

NON-GAAP MEASURES

The financial information in this report includes measures, which are not defined by generally accepted accounting principles (GAAP) such as IFRS. We believe this information, along with comparable GAAP measurements, gives insight to investors because it provides a basis for evaluating our operational performance. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP. Wherever appropriate and practical, we provide reconciliations to relevant GAAP measures.

Operational revenue is IFRS revenue adjusted for the movement of deferred and unbilled revenue Gross margin is calculated as gross profit divided by revenue

EBIT is equal to the operating result

EBIT margin is calculated as operating result divided by revenue

EBITDA is equal to operating result plus depreciation and amortization charges

EBITDA margin is calculated as operating result plus depreciation and amortization charges divided by revenue

Net cash is defined as our cash and cash equivalents, including cash classified as held-for-sale (IFRS 5) minus the nominal value of our outstanding bank borrowings

Free cash flow is cash from operating activities from continuing operations minus capital expenditure (investments in intangible assets and property, plant and equipment) of continuing operations

15 / 15

TomTom NV

De Ruijterkade 154

1011 AC Amsterdam

The Netherlands

ir@tomtom.com

+31 20 757 5194 www.tomtom.com/investors

Disclaimer

TomTom NV published this content on 14 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2020 12:49:06 UTC


© Publicnow 2020
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Financials
Sales 2020 533 M 649 M 649 M
Net income 2020 -247 M -300 M -300 M
Net cash 2020 324 M 395 M 395 M
P/E ratio 2020 -4,92x
Yield 2020 -
Capitalization 1 255 M 1 527 M 1 527 M
EV / Sales 2020 1,74x
EV / Sales 2021 1,45x
Nbr of Employees 4 516
Free-Float 48,8%
Chart TOMTOM NV
Duration : Period :
TomTom NV Technical Analysis Chart | TOM2 | NL0013332471 | MarketScreener
Technical analysis trends TOMTOM NV
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 6
Average target price 9,50 €
Last Close Price 9,64 €
Spread / Highest target 14,2%
Spread / Average Target -1,40%
Spread / Lowest Target -17,0%
EPS Revisions
Managers and Directors
NameTitle
Harold Goddijn Chief Executive Officer
Derk Johan Haank Chairman-Supervisory Board
Taco Titulaer Chief Financial Officer
Charles W. Davies Group Chief Technology Officer
Jacqueline A. Tammenoms Bakker Deputy Chairman-Supervisory Board
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