Earnings Release • Feb 6, 2019
Earnings Release
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Throughout this press release we make reference to continuing operations (TomTom excluding Telematics), discontinued operations (Telematics) and total operations (continuing & discontinued).
| (€ in millions, unless stated otherwise) | Q4 '18 | Q4 '17 | y.o.y. change |
FY '18 | FY '17 | y.o.y. change |
|---|---|---|---|---|---|---|
| Automotive & Enterprise | 106.6 | 86.9 | 23% | 372.3 | 333.2 | 12% |
| Consumer | 67.4 | 89.4 | -25% | 314.5 | 406.1 | -23% |
| Telematics (discontinued operations) | 43.8 | 41.9 | 4% | 173.8 | 163.6 | 6% |
| Total revenue | 217.8 | 218.2 | 860.6 | 902.9 | -5% | |
| Total gross profit | 151.7 | 129.5 | 17% | 610.6 | 569.8 | 7% |
| Gross margin | 70% | 59% | 71% | 63% | ||
| Total EBITDA | 43.6 | 38.4 | 14% | 213.7 | 158.3 | 35% |
| EBITDA margin | 20% | 18% | 25% | 18% | ||
| Total operating result (EBIT) | 0.0 | -29.6 | 55.5 | -186.0 | ||
| Operating margin | 0% | -14% | 6% | -21% | ||
| Net result | 1.4 | -34.7 | 44.8 | -194.4 | ||
| Adjusted net result | 22.6 | 4.0 | 83.2 | 42.3 | ||
| EPS, € fully diluted | 0.01 | -0.15 | 0.19 | -0.83 | ||
| Adjusted EPS1 , € fully diluted |
0.10 | 0.02 | 0.36 | 0.18 |
Change percentages and totals calculated before rounding.
This report includes the following non-GAAP measures: Automotive operational revenue, gross margin, EBIT (margin), EBITDA (margin), adjusted net result, adjusted EPS and net cash, which are further explained on page 13 of this report. Comparative figures have been restated to reflect the adoption of IFRS 15 and IFRS 16 accounting standards.
1 Earnings per fully diluted share count adjusted for movement of deferred revenue, unbilled revenue, deferred cost of sales, impairments, material restructuring and disposal costs on a post-tax basis.
"We closed 2018 with a strong fourth quarter, especially in Automotive, and solid cash generation. After the announced divestment of our Telematics business we are now a more focused company.
The recent extension of the partnership with Microsoft is another proof of the competitiveness of our product portfolio.
To keep the positive momentum, we will accelerate our investments in strategic areas while generating cash. Those areas are: further improvements in the efficiency of our map-making system, class-leading products and services for the automotive market, including maps for automated driving and developer products (Maps APIs).
We are excited with the progress we have made and the opportunities that are ahead of us."
The outlook for 2019 is based on TomTom's continuing operations.
| Continuing operations | Outlook 2019 | Actuals 2018 |
|---|---|---|
| Revenue | €675 million | €687 million |
| Of which Location Technology | €430 million | €372 million |
| Gross margin | > 70% | 69% |
| OPEX | €555 million | €472 million |
| CAPEX | €55 million | €77 million |
| Adjusted EPS* | €0.15 | €0.32 |
| FCF as % of revenue** | 10% | 13% |
In 2019 Location Technology (Automotive and Enterprise) revenue is expected to grow by ~15% year on year. We have decided to accelerate our OPEX and CAPEX spend by ~10% year on year to further improve our competitive position in a constantly changing market and to keep current positive momentum going.
Although the adjusted EPS will decline (~€0.10 of the decline is explained by our Consumer business), we will continue to generate free cash flow around 10% of revenue.
* The adjusted EPS1 is now adjusted as well for acquisition related amortization on a post-tax basis.
** Free cash flow (FCF) is defined as cash flow before financing activities. 2018 FCF of continuing operations was €90 million.
1 Adjusted EPS is calculated as adjusted net result divided by the weighted average number of diluted shares over the period. The adjusted net result for 2019 outlook is calculated as net result attributed to equity holders adjusted for movement of deferred/unbilled revenue, deferred cost of sales, impairments and acquisition related amortization on a post-tax basis. The 2018 movement of deferred/unbilled revenue and deferred cost of sales on a post-tax basis for continuing operations was €41 million and the acquisition related amortization on a post-tax basis was €37 million. The adjusted EPS outlook will be restated after the capital repayment and share consolidation expected during the third quarter 2019.
Revenue for the fourth quarter from continuing operations amounted to €174 million, in line with the same quarter last year (Q4 '17: €176 million). Automotive showed a considerable year on year revenue increase, while Enterprise was broadly flat and Consumer showed a strong decline. Group revenue from continuing operations in 2018 was €687 million, which is 7% lower compared with €739 million in 2017.
Operating result (EBIT) from continuing operations in the quarter was a loss of €13 million (Q4 '17: loss €45 million). 2018 operating result (EBIT) from continuing operations amounted to €2.9 million (FY '17: -€71 million - excluding impairment) driven by lower operating expenses and higher gross result.
Adjusted net result from total operations for the quarter was a gain of €23 million, which translates to a fully diluted adjusted EPS of €0.10 (Q4 '17: €0.02). For the full year this amounted to €83 million compared with €42 million in 2017. The adjusted EPS for the year was €0.36 (FY '17: €0.18).
| (€ in millions) | Q4 '18 | Q4 '17 | y.o.y. change |
FY '18 | FY '17 | y.o.y. change |
|---|---|---|---|---|---|---|
| Automotive | 73.4 | 54.3 | 35% | 245.0 | 195.7 | 25% |
| Enterprise | 33.2 | 32.6 | 2% | 127.3 | 137.5 | -7% |
| Total Automotive & Enterprise revenue | 106.6 | 86.9 | 23% | 372.3 | 333.2 | 12% |
| Automotive & Enterprise EBITDA | 87.2 | 101.1 | -14% | |||
| EBITDA margin (%) | 23% | 30% | ||||
| Automotive & Enterprise Operating result (EBIT) | -46.0 | -43.0 | 7% | |||
| Operating margin (%) | -12% | -13% |
Change percentages and totals calculated before rounding.
Automotive & Enterprise combined revenue in the quarter was €107 million (Q4 '17: €87 million) and for the full year €372 million (FY'17: €333 million). Automotive & Enterprise combined reported year on year revenue growth of 12% driven by strong revenue growth in Automotive, partially offset by a limited decline in Enterprise, mainly caused by a revenue recognition one-off in 2017.
Automotive generated revenue of €73 million in the quarter, representing a 35% increase year on year. Automotive operational revenue increased by 28% year on year (Q4 '18 €97 million vs Q4 '17 €76 million). The strong growth was the result of new contracts that started during 2018 and higher volumes from existing customers.
Enterprise revenue in Q4 '18 was €33 million, flat compared with the same quarter last year.
EBITDA for the full year declined year on year because of a shift from CAPEX to OPEX.
Automotive announced new collaborations with DENSO and Delphi Technologies during CES 2019. With DENSO, TomTom's HD Map will work in combination with their in-vehicle sensors such as cameras and radars to power the localization, perception and path planning functions for a complete autonomous driving system. This collaboration will allow DENSO to offer a market-leading system targeting Level 2 automation for highways and major urban roads.
Our collaboration with Delphi Technologies will bolster vehicles' powertrains. The powertrain control system will become more predictive through TomTom's map data, such as speed limits and road gradient, which will reduce energy consumption and improve safety.
In Enterprise, we announced the expansion of our partnership with Microsoft, with our location technologies chosen to power mapping services across all of Microsoft, including Bing, Cortana, Windows and other products.
| (€ in millions) | Q4 '18 | Q4 '17 | y.o.y. change |
FY '18 | FY '17 | y.o.y. change |
|---|---|---|---|---|---|---|
| Consumer products | 55.1 | 79.2 | -30% | 271.0 | 361.2 | -25% |
| Automotive hardware | 12.3 | 10.2 | 21% | 43.5 | 44.9 | -3% |
| Total Consumer revenue | 67.4 | 89.4 | -25% | 314.5 | 406.1 | -23% |
| Consumer EBITDA | 70.0 | 2.7 | ||||
| EBITDA margin (%) | 22% | 1% | ||||
| Consumer Operating result (EBIT) | 63.4 | -12.1 | ||||
| Operating margin (%) | 20% | -3% |
Change percentages and totals calculated before rounding.
Total Consumer revenue for the quarter was €67 million, 25% lower compared with the same quarter last year (Q4 '17: €89 million). Consumer revenue for the year was €315 million, a 23% decrease from 2017.
EBITDA showed a sharp increase following the reorganization at the end of 2017.
Consumer recently won a series of awards from Stiftung Warentest, a German consumer benchmark organization, for several of our portable navigation devices and navigation apps.
The gross margin of continuing operations for the quarter was 67%, compared with 55% in Q4 '17, reflecting increasing proportion of high margin recurring data, software and services revenue in our product mix.
While revenue declined in 2018, the gross profit for the year was €475 million, 7% higher than €446 million in 2017. The gross margin for the year was 69% compared with 60% last year.
Total operating expenses from continuing operations in the quarter was €130 million, a decrease of €12 million compared with the same quarter last year (Q4 '17: €142 million). In Q4 '18 we recorded a one-time gain of €13 million resulting from a litigation settlement. In Q4 '17, operating expenses included €29 million relating to restructuring and asset disposals. Excluding the one-off items, operating expenses increased mainly as the result of lower capitalization as our map making platform matured and reached its intended use.
For the full year, operating expenses were €472 million compared with €517 million (excluding a €169 million goodwill impairment charge) in 2017. Both years are impacted by one-off items. In 2018 we recorded a one-time gain of €22 million from litigation settlements. 2017 operating expenses included €41 million restructuring costs and asset disposals. Excluding these one-off items, the underlying operating expenses showed a modest year on year increase following higher spend in our map activities.
| Q4 '18 | FY '18 | |||
|---|---|---|---|---|
| (€ in millions, unless stated otherwise) | recalculated at | recalculated at | ||
| Q4 '18 | Q4 '17 | FY '18 | FY '17 | |
| actual | FX rates1 | actual | FX rates1 | |
| Revenue | 174.0 | 172.5 | 686.8 | 692.5 |
| Gross profit | 117.4 | 117.0 | 475.3 | 473.3 |
| Gross margin | 67% | 68% | 69% | 68% |
| Operating result (EBIT) | -12.7 | -12.5 | 2.9 | -2.3 |
| Operating margin | -7% | -7% | 0% | 0% |
| FX RATES (IN €) | Q4 '18 | Q4 '17 | FY '18 | FY '17 |
| US dollar | 1.14 | 1.18 | 1.18 | 1.13 |
| GB pound | 0.89 | 0.88 | 0.89 | 0.87 |
1The Q4 '18/FY '18 income and expense in US dollar and GB pound have been converted to euro using Q4 '17 / FY '17 average exchange rates. All other foreign currencies have not been converted.
Total financial result from continuing operations for the quarter was a gain of €1.8 million (Q4 '17: gain of €0.3 million), which consisted primarily of foreign exchange gains from the revaluation of monetary balance sheet items.
Total financial income and expenses for the year was a €3.5 million gain, slightly higher than the gain of €2.8 million in 2017 attributable to lower financing costs.
The net income tax gain for the quarter was €1.8 million compared with an €5.4 million expense in Q4 '17. The year on year change is driven by a re-measurements of deferred tax assets and liabilities. For the full year, we recorded an income tax expense of €9.2 million versus €9.0 million in 2017.
After a strategic review, it was decided to divest the Telematics business unit. In January 2019, we announced the sale of Telematics to Bridgestone for a purchase price of €910 million. The transaction is subject to customary closing conditions and is expected to close in the second quarter, followed by the capital repayment expected to be executed in the third quarter of 2019. This capital repayment will not be subject to Dutch dividend withholding tax. For the year ended 31 December 2018, we apply held-for-sale accounting (IFRS 5) and present Telematics as discontinued operations.
| (€ in millions, unless stated otherwise) | Q4 '18 | Q4 '17 | y.o.y. change |
FY '18 | FY '17 | y.o.y. change |
|---|---|---|---|---|---|---|
| Subscriptions | 34.8 | 32.7 | 6% | 136.2 | 126.3 | 8% |
| Hardware and other services1 | 9.0 | 9.2 | -3% | 37.6 | 37.3 | 1% |
| Total Telematics revenue | 43.8 | 41.9 | 4% | 173.8 | 163.6 | 6% |
| Discontinued operations EBITDA | 15.8 | 19.7 | -20% | 71.7 | 70.8 | 1% |
| EBITDA margin | 36% | 47% | 41% | 43% | ||
| Discontinued operations Operating result (EBIT) | 12.7 | 15.1 | -16% | 52.6 | 53.6 | -2% |
| Operating margin | 29% | 36% | 30% | 33% | ||
| Net result discontinued operations | 10.6 | 15.2 | -30% | 47.6 | 51.3 | -7% |
Change percentages and totals calculated before rounding.
1Other services revenue comprises installation services and separately purchased traffic service and/or map content.
Telematics revenue for the quarter was €44 million, 4% increase compared with the same quarter last year. The recurring subscription revenue for the quarter increased by 6% year on year to €35 million (Q4 '17: €33 million).
Revenue for the year increased by 6% from €164 million in 2017 to €174 million in 2018.
The operating result (EBIT) from discontinued operations in 2018 showed a marginal decline compared with 2017. The operating result from discontinued operations (IFRS 5) deviates from segment reporting, as it does not include cost allocations for the usage of TomTom products or shared services.
Telematics sources certain products and services from TomTom such as driver terminals, map and traffic data, and will continue to do so under Bridgestone's ownership. The agreement will also secure the delivery of probe data to TomTom.
| (€ in millions, unless stated otherwise) | Q4 '18 | Q4 '17 | y.o.y. change |
FY '18 | FY '17 | y.o.y. change |
|---|---|---|---|---|---|---|
| Net result continuing operations | -9.2 | -49.9 | -82% | -2.9 | -245.7 | -99% |
| Net result discontinued operations | 10.6 | 15.2 | -30% | 47.6 | 51.3 | -7% |
| Net result total operations | 1.4 | -34.7 | -104% | 44.8 | -194.4 | -123% |
| Net result attributed to equity holders | 1.4 | -34.4 | -104% | 44.9 | -194.0 | -123% |
| Movement of deferred/unbilled revenue and deferred CoS |
27.6 | 2.4 | 50.0 | 24.1 | 107% | |
| Tax effect on movement of deferred/ unbilled revenue and deferred CoS |
-6.4 | -0.5 | -11.6 | -5.1 | 127% | |
| One-off items (net of tax)1 | 36.5 | 217.3 | ||||
| Adjusted net result | 22.6 | 4.0 | 83.2 | 42.3 | 97% | |
| Adjusted EPS, € fully diluted | 0.10 | 0.02 | 0.36 | 0.18 | 100% |
Change percentages and totals calculated before rounding.
1One-off items in FY '17 included an impairment charge of €168.7 million as well as material restructuring and disposal costs on a post-tax basis.
The net result from total operations for the year was a gain of €45 million compared with a loss of €194 million in 2017.
The adjusted net result for the full year from total operations was a profit of €83 million compared with a profit of €42 million in FY '17, translating into an adjusted EPS of €0.36 and €0.18, respectively.
Net movement of deferred and unbilled revenues and deferred cost of sales per segment.
| (€ in millions) | Q4 '18 | Q4 '17 | FY '18 | FY '17 |
|---|---|---|---|---|
| Automotive | 23.5 | 21.3 | 72.4 | 48.7 |
| Enterprise | 10.7 | -13.8 | 5.3 | -4.6 |
| Consumer | -5.4 | -4.9 | -24.5 | -17.2 |
| Total continuing operations | 28.8 | 2.5 | 53.2 | 26.9 |
| Telematics | -1.2 | -0.1 | -3.2 | -2.7 |
| Total | 27.6 | 2.4 | 50.0 | 24.1 |
Totals calculated before rounding.
Trade receivables were €93 million in Q4 '18 compared with €114 million at the end of Q4 '17. The inventory level at the end of the quarter was €26 million, compared with €32 million at the end of the same quarter last year, following the decline in hardware sales.
Current liabilities excluding deferred revenue were €244 million compared with €253 million at the end of Q4 '17. The decrease is mainly due to a decrease in 'other contract related liabilities' in line with the overall revenue decline Consumer.
Total deferred revenue was €308 million at the end of Q4 '18, compared with €261 million at the end of the same quarter last year. The year on year trend reflects an increase of Automotive contracts for multi-year service offerings, offset by releases of deferred revenue in Consumer.
| (€ in millions) | 31 December 2018 | 31 December 2017 |
|---|---|---|
| Automotive | 172.1 | 98.0 |
| Enterprise | 17.4 | 15.7 |
| Consumer | 91.4 | 116.3 |
| Total continuing operations | 280.9 | 230.0 |
| Telematics | 27.5 | 31.3 |
| Total | 308.4 | 261.3 |
Totals calculated before rounding.
The cash flow from operating activities for the quarter was €87 million compared with €98 million in Q4 '17. The year on year decrease was mainly driven by higher working capital utilization.
The cash flow used in investing activities for the quarter was €9 million, a decrease of €17 million compared with €26 million in the same quarter last year. The decrease reflects lower capitalization as our map-making platform matured and has reached the intended productivity level.
On 31 December 2018, the group had no outstanding bank borrowings and reported a cash position of €248 million excluding cash classified as held for sale of €4.4 million (Q4 '17: net cash of €121 million).
| (€ in millions) | Q4 '18 | Q4 '17 | y.o.y. change |
FY '18 | FY '17 | y.o.y. change |
|---|---|---|---|---|---|---|
| Map content and map-making platform | 6.0 | 17.3 | -66% | 61.3 | 63.9 | -4% |
| Other | 2.5 | 6.1 | -59% | 15.4 | 28.6 | -46% |
| Total continuing operations | 8.5 | 23.4 | -64% | 76.7 | 92.5 | -17% |
| Telematics | 0.8 | 2.7 | -72% | 7.4 | 13.0 | -43% |
| Total | 9.2 | 26.1 | -65% | 84.2 | 105.4 | -20% |
Change percentages and totals calculated before rounding.
The cash flow from financing activities for the quarter was an outflow of €4.7 million (Q4 '17: outflow of €56 million). The year on year decrease is due to the share buy back program held in the fourth quarter last year. In the quarter, 73 thousand options were exercised (Q4 '17: 112 thousand options), related to our long-term employee incentive programs, resulting in a €0.3 million cash inflow (Q4 '17: €0.6 million).
FULL YEAR
| FY '18 | FY '17 | ||||||
|---|---|---|---|---|---|---|---|
| (€ in millions) | Continuing operations |
Discontinued operations |
Total operations |
Continuing operations |
Discontinued operations |
Total operations |
|
| Revenue | 686.8 | 173.8 | 860.6 | 739.3 | 163.6 | 902.9 | |
| Cost of sales | 211.5 | 38.5 | 250.0 | 293.3 | 39.8 | 333.1 | |
| Gross profit | 475.3 | 135.3 | 610.6 | 446.0 | 123.8 | 569.8 | |
| Research and development expenses | 220.9 | 10.8 | 231.7 | 202.0 | 5.9 | 207.9 | |
| Amortization of technology and databases | 108.2 | 2.4 | 110.6 | 111.1 | 1.2 | 112.3 | |
| Marketing expenses | 28.0 | 8.5 | 36.6 | 43.8 | 8.0 | 51.8 | |
| Selling, general and administrative expenses | 115.4 | 60.9 | 176.3 | 160.0 | 55.1 | 215.1 | |
| Impairment charge | 0.0 | 0.0 | 0.0 | 168.7 | 0.0 | 168.7 | |
| Total operating expenses | 472.4 | 82.7 | 555.1 | 685.5 | 70.2 | 755.7 | |
| Operating result | 2.9 | 52.6 | 55.5 | -239.6 | 53.6 | -186.0 | |
| Financial income/(expense) | 3.5 | -3.6 | -0.1 | 2.8 | -1.3 | 1.5 | |
| Income tax income/(expense) | -9.2 | -1.4 | -10.6 | -9.0 | -1.0 | -10.0 | |
| Net (loss) / profit | -2.9 | 47.6 | 44.8 | -245.7 | 51.3 | -194.4 | |
| Adjusted earnings per share (in €): | |||||||
| Adjusted EPS, € basic | 0.36 | 0.18 | |||||
| Adjusted EPS, € diluted | 0.36 | 0.18 | |||||
| Basic number of shares (in thousands) | 230,878 | 233,722 | |||||
| Diluted number of shares (in thousands) | 233,143 | 236,836 |
| Q4 '18 | Q4 '17 | ||||||
|---|---|---|---|---|---|---|---|
| (€ in millions) | Continuing operations |
Discontinued operations |
Total operations |
Continuing operations |
Discontinued operations |
Total operations |
|
| Revenue | 174.0 | 43.8 | 217.8 | 176.3 | 41.9 | 218.2 | |
| Cost of sales | 56.6 | 9.4 | 66.0 | 78.7 | 10.0 | 88.7 | |
| Gross profit | 117.4 | 34.4 | 151.7 | 97.6 | 31.9 | 129.5 | |
| Research and development expenses | 71.9 | 3.4 | 75.3 | 51.5 | 0.9 | 52.5 | |
| Amortization of technology and databases | 31.2 | 0.7 | 31.9 | 40.8 | 0.3 | 41.1 | |
| Marketing expenses | 7.4 | 2.0 | 9.4 | 7.1 | 2.0 | 9.1 | |
| Selling, general and administrative expenses | 19.6 | 15.6 | 35.2 | 42.9 | 13.6 | 56.5 | |
| Total operating expenses | 130.1 | 21.7 | 151.8 | 142.3 | 16.8 | 159.1 | |
| Operating result | -12.7 | 12.7 | 0.0 | -44.7 | 15.1 | -29.6 | |
| Financial income/(expense) | 1.8 | -1.0 | 0.8 | 0.3 | 0.4 | 0.7 | |
| Income tax income/(expense) | 1.8 | -1.1 | 0.7 | -5.4 | -0.3 | -5.8 | |
| Net (loss) / profit | -9.2 | 10.6 | 1.4 | -49.9 | 15.2 | -34.7 | |
| Adjusted earnings per share (in €): | |||||||
| Adjusted EPS, € basic | 0.10 | 0.02 | |||||
| Adjusted EPS, € diluted | 0.10 | 0.02 | |||||
| Basic number of shares (in thousands) | 231,203 | 232,167 | |||||
| Diluted number of shares (in thousands) | 233,193 | 235,027 |
| Q4 '18 | Q4 '17 | FY '18 | FY '17 | |
|---|---|---|---|---|
| (€ in thousands) | Unaudited | Unaudited Restated |
Unaudited | Audited Restated |
| Revenue | 173,999 | 176,258 | 686,798 | 739,284 |
| Cost of sales | 56,638 | 78,691 | 211,471 | 293,295 |
| Gross profit | 117,361 | 97,567 | 475,327 | 445,989 |
| Research and development expenses | 71,902 | 51,539 | 220,853 | 201,979 |
| Amortization of technology and databases | 31,200 | 40,763 | 108,200 | 111,102 |
| Marketing expenses | 7,439 | 7,076 | 28,015 | 43,791 |
| Selling, general and administrative expenses | 19,568 | 42,891 | 115,354 | 159,985 |
| Impairment charge | 0 | 0 | 0 | 168,687 |
| Total operating expenses | 130,109 | 142,269 | 472,422 | 685,544 |
| Operating result | -12,748 | -44,702 | 2,905 | -239,555 |
| Interest result | -404 | -386 | -1,062 | -1,699 |
| Other financial result | 1,590 | 455 | 3,555 | 3,748 |
| Result of associates | 603 | 203 | 982 | 759 |
| Result before tax | -10,959 | -44,430 | 6,380 | -236,747 |
| Income tax income/(expense) | 1,775 | -5,438 | -9,242 | -8,991 |
| Net result from continuing operations | -9,184 | -49,868 | -2,862 | -245,738 |
| Net after tax profit from discontinued operations | 10,607 | 15,207 | 47,622 | 51,340 |
| Net (loss) / profit | 1,423 | -34,661 | 44,760 | -194,398 |
| Net result attributable to: | ||||
| Equity holders of the parent | 1,423 | -34,398 | 44,857 | -193,974 |
| Non-controlling interests | 0 | -263 | -97 | -424 |
| Net result | 1,423 | -34,661 | 44,760 | -194,398 |
| Earnings per share (in €): | ||||
| EPS, € basic | 0.01 | -0.15 | 0.19 | -0.83 |
| EPS, € diluted | 0.01 | -0.15 | 0.19 | -0.83 |
| Earnings per share from continuing operations (in €): |
||||
| EPS, € basic | -0.04 | -0.21 | -0.01 | -1.05 |
| EPS, € diluted | -0.04 | -0.21 | -0.01 | -1.05 |
| Basic number of shares (in thousands) | 231,203 | 232,167 | 230,878 | 233,722 |
| Diluted number of shares (in thousands) | 233,193 | 235,027 | 233,143 | 236,836 |
| (€ in thousands) | 31 December 2018 | 31 December 2017 |
|---|---|---|
| Unaudited | Audited Restated | |
| Goodwill | 192,294 | 256,319 |
| Other intangible assets | 634,728 | 718,397 |
| Property, plant and equipment | 26,380 | 33,621 |
| Lease assets | 35,393 | 45,689 |
| Other contract related assets | 10,426 | 8,657 |
| Investments in associates | 3,899 | 4,223 |
| Deferred tax assets | 5,296 | 7,453 |
| Total non-current assets | 908,416 | 1,074,359 |
| Inventories | 26,400 | 31,609 |
| Trade receivables | 92,530 | 114,254 |
| Unbilled receivables | 22,512 | 25,150 |
| Other contract related assets | 14,071 | 5,981 |
| Other receivables and prepayments | 54,977 | 26,396 |
| Other financial assets | 21 | 0 |
| Cash and cash equivalents | 247,675 | 120,850 |
| 458,186 | 324,240 | |
| Assets held for sale | 128,323 | 0 |
| Total current assets | 586,509 | 324,240 |
| Total assets | 1,494,925 | 1,398,599 |
| Share capital | 47,064 | 47,064 |
| Share premium | 1,066,201 | 1,068,149 |
| Treasury shares | -37,707 | -48,790 |
| Other reserves | 251,799 | 263,164 |
| Accumulated deficit | -553,248 | -609,993 |
| Equity attributable to equity holders of the parent | 774,109 | 719,594 |
| Non-controlling interests | 0 | 2,308 |
| Total equity | 774,109 | 721,902 |
| Lease liabilities | 25,558 | 33,172 |
| Deferred tax liability | 80,436 | 85,804 |
| Provisions | 62,085 | 43,727 |
| Deferred revenue | 155,875 | 148,058 |
| Total non-current liabilities | 323,954 | 310,761 |
| Trade payables | 51,076 | 51,441 |
| Lease liabilities | 13,172 | 15,006 |
| Provisions | 28,990 | 37,173 |
| Deferred revenue | 125,035 | 113,246 |
| Other contract related liabilities | 38,665 | 64,380 |
| Income taxes | 946 | 1,702 |
| Accruals and other liabilities | 83,571 | 82,988 |
| 341,455 | 365,936 | |
| Liabilities associated with assets held for sale | 55,407 | 0 |
| Total current liabilities | 396,862 | 365,936 |
| Total equity and liabilities | 1,494,925 | 1,398,599 |
| (€ in thousands) | Q4 '18 | Q4 '17 Unaudited |
FY '18 | FY '17 Audited |
|---|---|---|---|---|
| Unaudited | Restated | Unaudited | Restated | |
| Operating result from continuing operations | -12,748 | -44,702 | 2,905 | -239,555 |
| Operating result from discontinued operations | 12,703 | 15,115 | 52,608 | 53,604 |
| Operating result | -45 | -29,587 | 55,513 | -185,951 |
| Financial gains/(losses) | 1,420 | 615 | 269 | -2,303 |
| Depreciation, amortization and impairment | 43,666 | 67,959 | 158,188 | 344,221 |
| Change in provisions | 6,268 | 1,583 | -1,155 | 4,788 |
| Equity-settled stock compensation expenses | 1,262 | 1,356 | 5,504 | 8,104 |
| Changes in working capital: | ||||
| Change in inventories | 2,846 | 10,254 | 8,140 | 9,964 |
| Change in receivables and prepayments | 2,338 | 54,823 | -29,814 | 7,135 |
| Change in liabilities (excluding provisions)1 | 32,714 | -8,261 | 42,592 | -2,145 |
| Cash generated from operations | 90,469 | 98,742 | 239,237 | 183,813 |
| Interest received | 32 | 59 | 429 | 258 |
| Interest (paid) | -517 | -403 | -1,593 | -1,819 |
| Corporate income taxes (paid) | -2,711 | -341 | -9,100 | -8,654 |
| Cash flows from operating activities | 87,273 | 98,057 | 228,973 | 173,598 |
| Investments in intangible assets | -4,762 | -20,845 | -64,117 | -89,313 |
| Investments in property, plant and equipment | -4,459 | -5,301 | -20,035 | -16,116 |
| Acquisition of subsidiaries and other businesses | 0 | 0 | 0 | -24,494 |
| Dividends received | 109 | 96 | 259 | 202 |
| Cash flows from investing activities | -9,112 | -26,050 | -83,893 | -129,721 |
| Change in utilisation of credit facility | 0 | -3,000 | 0 | -10,000 |
| Repayment of borrowings | 0 | 0 | 0 | -708 |
| Change in lease liability | -4,915 | -3,516 | -17,011 | -15,590 |
| Change in non-controlling interest | 0 | -121 | -1,545 | -244 |
| Proceeds on issue of ordinary shares | 258 | 563 | 3,785 | 12,403 |
| Purchase of share capital | 0 | -49,831 | 0 | -49,831 |
| Cash flows from financing activities | -4,657 | -55,905 | -14,771 | -63,970 |
| Net increase / (decrease) in cash and cash equivalents | 73,504 | 16,102 | 130,309 | -20,093 |
| Cash and cash equivalents at beginning of period | 178,522 | 105,220 | 120,850 | 142,527 |
| Exchange rate changes on cash balances held in foreign currencies |
86 | -472 | 953 | -1,584 |
| Cash and cash equivalents at the end of the period | 252,112 | 120,850 | 252,112 | 120,850 |
| Cash and cash equivalents classified as held for sale | 4,437 | 0 | 4,437 | 0 |
| Cash and cash equivalents at the end of the period | 247,675 | 120,850 | 247,675 | 120,850 |
1Includes movements in the non-current portion of deferred revenue presented under non-current liabilities.
The condensed consolidated financial information for the three- and the twelve-month period ended 31 December 2018 and the related comparative information has been prepared using accounting policies and methods of computation which are based on International Financial Reporting Standards (IFRS) and disclosed in the Financial Statements for the year ended 31 December 2018.
The consolidated and company financial statements of TomTom NV for the year ended 31 December 2018 have been prepared and audited but are not yet published.
Unless otherwise indicated, the quarterly condensed consolidated information in this press release is unaudited nor reviewed. Due to rounding, amounts may not add up precisely to totals.
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 as 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.
Automotive operational revenue is IFRS Automotive revenue adjusted for the movement of deferred and unbilled revenue
Gross margin is calculated as gross profit divided by revenue
EBIT is equal to our operating result
EBIT margin is calculated as operating result divided by revenue
EBITDA is equal to our operating result plus depreciation and amortization charges
EBITDA margin is calculated as operating result plus depreciation and amortization charges divided by revenue
Adjusted net result is calculated as net result attributed to equity holders adjusted for movement of deferred revenue, unbilled revenue, deferred cost of sales, impairments and material restructuring and disposal costs on a post-tax basis
Adjusted EPS is calculated as adjusted net result divided by the weighted average number of diluted shares over the period
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
TomTom Investor Relations Email: [email protected] +31 20 757 5194
The information for our audio webcast is as follows: Date and time: 6 February 2019 at 14:00 CET corporate.tomtom.com/presentations.cfm TomTom is listed at NYSE Euronext Amsterdam in the Netherlands ISIN: NL0000387058 / Symbol: TOM2
TomTom (TOM2) is the leading independent location technology specialist, shaping mobility with highly accurate maps, navigation software, real-time traffic information and services. To achieve our vision of a safer world, free of congestion and emissions, we create innovative technologies that keep the world moving. By combining our extensive experience with leading business and technology partners, we power connected vehicles, smart mobility and, ultimately, autonomous driving. Headquartered in Amsterdam with offices in 30 countries, TomTom's technologies are trusted by hundreds of millions of people worldwide. For further information, please visit www.tomtom.com.
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 the company operates and the risk of a downturn in the market. Statements regarding market share, including the company's competitive position, contained in this document are based on outside sources such as specialised 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.
This document contains inside information as meant in clause 7 of the Market Abuse Regulation.
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