TomTom’s Chief Executive Officer, Harold Goddijn

“The PND market developments have become more predictable. The year over year decline of our core markets combined has been in line with previously communicated expectations and sales prices are stabilising. The European economic situation is having a significant impact on the automotive industry. We expect our Automotive revenue to remain under pressure in the coming quarters. As a result we lower our group revenue guidance for the year from around €1.10 billion to around €1.05 billion. We continue to deliver a strong gross margin and the reduction of our cost base is ahead of schedule. We therefore maintain our adjusted EPS guidance for the year of around €0.35.”

¹ Earnings per share adjusted for impairment, acquisition-related amortisation and restructuring charges on a post-tax basis.

² Operating expenses in Q3 2011 include restructuring charges of €0.4 million.

Business review

Consumer introduced a navigation app for Android smartphones to add to our well established smartphone app offering for the iPhone. In the quarter we also launched two new TomTom Hands Free Car Kits for smartphones, which support the iPhone and micro USB compatible smartphones, such as Android phones. We introduced the PRO 5150 TRUCK LIVE for truck drivers in Europe which offers truck-friendly routes, and takes into account dimensional, weight and hazardous materials restrictions. BMW will fit our TomTom GO LIVE PND onto the dashboards of selected models with a specially-designed mount.

Automotive extended its partnerships with Fiat and Mazda with the addition of the Abarth models 500 and Punto, and the new Mazda6. Earlier we announced that PSA Peugeot Citroën had chosen TomTom as the global provider of location and navigation content and services for its infotainment system. Starting early 2015, Peugeot and Citroën models will be equipped with TomTom’s maps, HD Traffic and navigation software. In the quarter TomTom introduced a new delivery format for traffic information (TPEG) which makes it easier for third parties to integrate HD Traffic in their products.

Licensing signed a number of traffic information agreements in the quarter. Traffic management expert DUEL will use our maps, historical and real-time traffic information for forecasting traffic in the Lazio region of Italy. VMZ Berlin, the operator of Berlin's Traffic Information Centre, will use our real-time traffic information to react faster to traffic congestion and improve traffic information for Berlin and for selected parts of the State of Brandenburg.

Business Solutions introduced a comprehensive expansion of WEBFLEET’s reporting capabilities. A set of more than 40 different reports provide businesses with increased insights into fleet operations and help them reduce costs, increase productivity and comply with legal obligations. WEBFLEET’s installed base grew by 39% year on year to 223 thousand.

Financial review