TomTom Reports Fourth Quarter and Full Year Results

Cash flows used in financing activities amounted to €114 million representing a €110 million repayment of our borrowings and €4 million related to the buy-out of some minority shareholders in our map-making business.

Debt financing

Following the 2011 repayment of €210 million, the carrying value of our borrowings as of 31 December 2011 was €384 million (31 December 2010: €588 million). This carrying value includes the transaction costs, which are netted against the borrowings. The nominal value of the outstanding borrowings was €388 million.

Net debt as at year end 2011 was €194 million, down from €294 million at the end of 2010. The net debt to the last twelve months EBITDA ratio was 0.88 times compared to 0.98 at year end 2010.

Balance sheet

As at year end 2011, accounts receivable plus other receivables totalled €236 million, down by €112 million compared to €348 million at the end of 2010. The inventory level was reduced to €66 million from €94 million at the end of last year and €73 million at the end of the previous quarter. Cash and cash equivalents at the end of the quarter were €194 million.

Current liabilities were €858 million compared to €834 million in the same quarter last year and €543 million in the previous quarter. The sequential increase was mainly caused by the reclassification of our remaining outstanding borrowings to current liabilities as they become due at the end of 2012. A forward start facility agreement comprising of a €250 million term loan facility and a €150 million revolving credit facility is in place to replace our current facilities from the end of 2012.

At the end of the quarter we had shareholders’ equity of €708 million up from €694 million at the beginning of the quarter.

Consolidated income statements

(in € thousands)	Q4 2011	Q4 2010	FY 2011	FY 2010

Revenue	357,401	515,834	1,273,217	1,521,083
Cost of sales	191,426	279,251	633,545	777,018
Gross result	165,975	236,583	639,672	744,065

Research and development expenses	46,745	44,129	172,822	161,875
Amortisation of technology & databases	27,007	22,723	84,619	77,644
Marketing expenses	20,507	48,287	78,062	104,788
Selling, general and administrative expenses	60,511	53,778	208,917	199,941
Impairment charge	0	0	511,936	0
Stock compensation expense	789	2,940	7,985	13,495
Total operating expenses¹	155,559	171,857	1,064,341	557,743

Operating result	10,416	64,726	-424,669	186,322

Interest result	-3,826	-8,074	-21,862	-35,064
Other finance result	714	5,128	6,093	-15,962
Result associates	-94	707	-432	-1,270
Result before tax	7,210	62,487	-440,870	134,026

Income tax	4,583	-10,307	1,919	-26,356
Net result	11,793	52,180	-438,951	107,670

Non-controlling interests	-94	475	-1,107	-98
Net result attributed to the group	11,887	51,705	-437,844	107,768

Basic number of shares (in thousands)	221,895	221,748	221,874	221,724
Diluted number of shares (in thousands)	221,939	223,964	221,904	222,040

EPS, € basic	0.05	0.23	-1.97	0.49
EPS, € diluted	0.05	0.23	-1.97	0.49
¹ Operating expenses include restructuring charges of €13.6 million in Q4 '11 (€1.3 million in Q4 '10), €14.8 million in FY '11 (€3.3 million in FY '10)

Consolidated balance sheet

(in € thousands)	31 Dec 2011	31 Dec 2010

Goodwill	381,569	854,713
Other intangible assets	871,528	946,263
Property, plant and equipment	32,555	38,977
Deferred tax assets	10,493	22,265
Investments	4,450	7,720
Total non-current assets	1,300,595	1,869,938

Inventories	65,502	93,822
Trade receivables	184,939	305,821
Other receivables and prepayments	51,242	41,853
Other financial assets	2,784	5,724
Cash and cash equivalents	193,579	305,600
Total current assets	498,046	752,820

Total assets	1,798,641	2,622,758

Share capital	44,379	44,362
Share Premium	975,260	974,554
Other reserves	131,213	117,419
Accumulated (deficit)	-444,852	-222
Non-controlling interests	2,451	5,416
Total equity	708,451	1,141,529

Borrowings	0	384,011
Provisions	50,114	51,051
Long-term liability	0	926
Deferred tax liability	182,273	211,014
Total non-current liabilities	232,387	647,002

Trade payables	116,616	218,419
Borrowings	383,810	203,586
Tax and social security	20,942	35,443
Provisions	51,213	58,237
Other liabilities and accruals	285,222	318,542
Total current liabilities	857,803	834,227

Total equity and liabilities	1,798,641	2,622,758

Consolidated statements of cash flows

(in € thousands)	Q4 2011	Q4 2010	FY 2011	FY 2010

Operating result	10,416	64,726	-424,669	186,322
Financial gains/(losses)	7,786	-4,394	4,554	-11,789
Amortisation and depreciation	36,999	30,501	119,097	109,098
Impairment charge	0	0	511,936	0
Equity-settled stock compensation expense	1,067	2,092	7,996	12,901
Change to provisions	-6,645	1,500	-10,224	-5,180
Changes in working capital:
Change in inventories	9,683	-13,965	27,915	-26,987
Change in receivables and prepayments	31,185	-65,138	113,384	-27,617
Change in current liabilities	47,253	127,530	-154,770	28,545
Cash generated from operations	137,744	142,852	195,219	265,293

Interest received	1,535	278	2,871	977
Interest paid	-3,997	-6,125	-18,459	-25,589
Corporate income taxes paid	-1,119	4,260	-5,456	-30,378
Net cash flow from operating activities	134,163	141,265	174,175	210,303

Investments in intangible assets	-9,512	-14,140	-57,918	-47,096
Investments in property, plant and equipment	-3,370	-8,155	-16,502	-17,866
Dividend received	1,628	0	1,628	0
Total cash flow used in investing activities	-11,254	-22,295	-72,792	-64,962

Repayments on borrowings	-110,000	-85,000	-210,000	-210,000
Proceeds on issue of ordinary shares	0	815	724	817
Acquisition of non-controlling interests	-4,004	0	-4,243¹	0
Total cash flow from financing activities	-114,004	-84,185	-213,519	-209,183

Net increase in cash and cash equivalents	8,905	34,785	-112,136	-63,842
Cash and cash equivalents at beginning of period	182,312	267,615	305,600	368,403
Exchange rate effect on cash balances held in foreign currencies	2,362	3,200	115	1,039
Cash and cash equivalents at end of period	193,579	305,600	193,579	305,600
¹ Includes - €0.2 million which was classified as investments in financial fixed assets in the previous quarter

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