- TomTom sees early signs of recovery during the second quarter

TOMTOM’S CHIEF EXECUTIVE OFFICER, HAROLD GODDIJN
"COVID-19 remains a challenge for the global economy, but our operational revenue is on the road to recovery from the lows experienced in April.

In the first half of the year we saw a large volume of deal activity, combined with a high success rate. We converted multiple opportunities in both Automotive and Enterprise, which will contribute to future revenue. The announcement of the Ford SYNC 4 platform, which includes our traffic services, makes us particularly proud as it further expands our footprint in North America.

During these turbulent times, we are maintaining our investment level in research and development, laying the foundations for future success. We are making good progress on our 2020 priorities with further development of our connected navigation product and improvements to our Maps APIs."

OPERATIONAL SUMMARY

A multi-year global traffic service deal for Ford’s SYNC 4 platform
A partnership with Delphi Technologies that delivers passenger car fuel savings of over 10%
A new global deal to provide maps and traffic data for ViaMichelin
A partnership with Foursquare to add millions of POIs worldwide
FINANCIAL SUMMARY SECOND QUARTER 2020

Group revenue decreased by 41% to €124 million (Q2 '19: €211 million)
Location Technology revenue of €94 million (Q2 '19: €116 million)
Automotive operational revenue decreased by 47% to €48 million (Q2 '19: €90 million)
Free cash flow is an outflow of €54 million (Q2 '19: inflow of €16 million)
Net cash of €373 million (Q2 '19: €372 million)
KEY FIGURES

(€ in millions, unless stated otherwise)
Q2 '20 Q2 '19 y.o.y. change H1 '20 H1 '19 y.o.y. change

Location Technology 93.8 116.1 -19 % 185.1 219.1 -16 %
Consumer 29.9 94.7 -68 % 69.8 161.3 -57 %
Revenue 123.7 210.8 -41 % 254.9 380.3 -33 %
Gross profit 105.8 142.0 -26 % 208.3 263.3 -21 %
Gross margin 86 % 67 % 82 % 69 %
EBITDA 7.3 31.0 1.9 49.8
EBITDA margin 6 % 15 % 1 % 13 %
Net result 1 -62.0 742.0 -124.8 745.3
Free cash flow (FCF) -54.0 15.6 -40.3 -4.6
FCF as a % of revenue -44 % 7 % -16 % -1 %

1 All figures presented in the table above relate to continuing operations, except for the H1 '19 Net result.

FINANCIAL AND BUSINESS REVIEW
TOMTOM’S CHIEF FINANCIAL OFFICER, TACO TITULAER
"In terms of results, it was a quarter of two halves. While Enterprise grew throughout, factory and retail closures hit trading conditions for Automotive and Consumer in April. As lockdowns lifted in May and factories and shops reopened, operational revenue for these businesses began to recover.
This accelerated further in June, which contributed half of the quarter's operational revenue in these units.
While conditions have been tough, it is important to note that the year-on-year decline in Consumer revenue is exaggerated by the strong reference quarter (due to higher replacement sales following the GPS week number rollover issue).
We consumed cash in Q2 '20, though we expect to generate positive free cash flow in the second half of the year. This will result from continued revenue recovery, combined with discretionary cost control measures and expected seasonal customer receipts.
Given the uncertainty, we will not provide guidance at this time. As market conditions develop, we will reassess this position and whether to resume our share buyback program.”

REVENUE
Revenue for the second quarter amounted to €124 million, a 41% decrease compared with the same quarter last year (Q2 '19: €211 million).

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