. TomTom on track for 10% growth in Location Technology in 2021
TOMTOM’S CHIEF EXECUTIVE OFFICER, HAROLD GODDIJN
"The past year has been a turbulent one. COVID-19 continues to impact people's lives and disrupt the global economy. While we have also been affected, our Enterprise business showed resilience by increasing year on year. Our Automotive operational revenue improved since the lows experienced in the second quarter.
We maintained an Automotive backlog of €1.8 billion. Our 2020 order intake was strong, but our customers' lower near-term car production forecasts impacted our backlog.
During the last year, we managed our costs by cutting discretionary spend but kept investment levels up for our mapping and application platforms.
In 2021, we plan for revenue growth of around 10% in Location Technology and a positive free cash flow for the Group."

OPERATIONAL SUMMARY

A contract extension to provide maps and traffic to Precisely
A new multiyear agreement to provide Maps APIs to Targa Telematics
A contract extension to provide full-stack navigation to Mitsubishi in selected car models
The launch of TomTom Hazard Warnings
Celebrated the 10th edition of the TomTom Traffic Index which cities and governments have increasingly used to monitor traffic patterns in the wake of COVID-19
FINANCIAL SUMMARY FOURTH QUARTER 2020

Group revenue decreased by 20% to €125 million (Q4 '19: €156 million)
Location Technology decreased by 8% to €101 million (Q4 '19: €110 million)
Automotive operational revenue decreased by 23% to €90 million (Q4 '19: €116 million)
Free cash flow is an inflow of €34 million (Q4 '19: inflow of €48 million)
FINANCIAL SUMMARY FULL YEAR 2020

Group revenue decreased by 25% to €528 million (FY '19: €701 million)
Location Technology revenue decreased by 8% to €392 million (FY '19: €426 million)
Automotive operational revenue decreased by 26% to €282 million (FY '19: €381 million)
Free cash flow is an outflow of €26 million (FY '19: inflow of €66 million)
Net cash position of €372 million (FY '19: €437 million)

'19 y.o.y. change FY '20 FY '19 y.o.y. change
Location Technology 101.5 110.4 -8 % 392.2 426.0 -8 %
Consumer 23.9 45.9 -48 % 136.0 274.8 -51 %
Revenue 125.4 156.2 -20 % 528.2 700.8 -25 %
Gross profit 103.1 124.0 -17 % 423.4 515.2 -18 %
Gross margin 82 % 79 % 80 % 74 %
EBITDA -7.8 -4.6 -2.1 61.0
EBITDA margin -6 % -3 % 0 % 9 %
Net result -65.9 -69.0 -257.6 632.9
Free cash flow (FCF) 33.8 47.7 -26.5 65.8
FCF as a % of revenue 27 % 31 % -5 % 9 %

TOMTOM’S CHIEF FINANCIAL OFFICER, TACO TITULAER
"We delivered on our guidance from last quarter, returning to positive free cash flow in the fourth quarter. Location Technology revenue outperformed our expectations, but this was offset by weaker Consumer revenue as retail stores continued to face headwinds following widespread lockdowns across Europe.
In the coming year, we expect Location Technology revenue of €420 to €450 million. This is based on car production not returning to 2019 levels in 2021. In the mid-term, we expect Location Technology revenue to continue to grow to around €550 million in 2023.
Our R&D cash spend will increase compared with 2020 and we expect to generate positive free cash flow, both in the coming year and in the mid-term. We are pleased to announce that we will resume our share buyback program during Q1 2021."

OUTLOOK 2021
(€ in millions) Outlook 2021 Actual 2020
Revenue 520 - 570 528
Of which Location Technology 420 - 450 392
FCF as % of group revenue Around 6% -5%
We have based our 2021 outlook on a USD FX rate of 1.20
1
and the expectation that car production
in 2021 will not reach 2019 volumes. We expect free cash flow (FCF) to be around 6% of group revenue.
Our mid-term outlook for Location Technology is continued growth to around €550 million revenu and a FCF of around 10% of Group revenue in 2023.
Our outlook is supported by an Automotive backlog2 of around €1.8 billion at the end of 2020. This is equal to the backlog reported at the end of 2019. The order intake offset revenue recognized during the year and the impact of our customers' lower near-term car production forecasts.
Given the current uncertainty resulting from cyclical and structural market developments, we are not providing a longer-term view at this time.

1
In 2020 around 80% of Enterprise and 20% of Automotive revenue was based in US Dollar.
2 Automotive backlog is the cumulative expected IFRS revenue from all awarded Automotive deals.

SHARE BUYBACK
In Q1 2021 we will resume our share buyback program which we previously suspended on 31 March 2020 as a precautionary measure in light of the COVID-19 pandemic.
The repurchase will be executed within the limits of relevant laws and regulations and the existing
authority granted by the Annual General Meeting on 15 June 2020. We will inform the market of the actual start and the progress made in executing the share buyback through press releases and our corporate website. The share buyback will be fully used to cover commitments arising from longterm employee incentive plans.
The program was to repurchase up to €50 million of TomTom ordinary shares on Euronext Amsterdam. Until the program's suspension, the total number of shares repurchased was 2,354,433 for an aggregate consideration of €16.6 million. Based on the closing share of TomTom on Euronext Amsterdam on 3 February 2021, the remaining repurchase amount represents approximately 3% of TomTom's issued share capital.


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Precisely and TomTom Help Companies Achieve Data Integrity Through Location Technology.
Amsterdam/New York, 4 February 2021 TomTom (TOM2), the location technology specialist, and Precisely, the global leader in data integrity, today announced an extension of their long-standing relationship. TomTom will provide Precisely with its leading map and traffic datasets, helping Precisely customers leverage important context to make better-informed, more confident business decisions.

Precisely will use TomTom’s highly accurate map information as well as its historic and real-time traffic data – sourced from over 600 million connected devices. This map and traffic data can help financial services organizations reduce fraud, enable insurance companies to better manage location risk, and improve targeted retail marketing campaigns by providing better customer insights.

“Fresh, comprehensive maps and real-time, dynamic traffic data provide essential location context for better and more confident decisions that enable customers to deliver a safer, cleaner and congestion-free world,” said Dan Adams, SVP Data and Operations at Precisely. “TomTom’s suite of industry-leading global map and traffic datasets has the reliability, uniformity and scale needed to enrich any business’ location intelligence platform or application.”

In addition to leveraging TomTom’s data, Precisely will share market trends and location insights with TomTom providing critical information to continually strengthen TomTom’s offerings. Precisely will provide feedback on map data, such as road changes, which TomTom will process in real-time, benefiting all TomTom customers.

“Precisely and TomTom’s continuing relationship is a testament to our ability to collaborate, learn from one another, and improve,” said Anders Truelsen, Managing Director of TomTom Enterprise. “TomTom is proud to collaborate so closely with Precisely, a global leader that helps customers achieve data integrity through maximum accuracy, consistency, and context in data.”

-ENDS-

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