Amsterdam, the Netherlands, 4 February 2021 7:00 AM CEST

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)

KEY FIGURES

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."

View the full TomTom fourth quarter 2020 results press release on our quarterly results website.

-ENDS-

About TomTom

TomTom 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. 

www.tomtom.com