TomTom Reports Third Quarter 2009 Results

                               Excluding restructuring charges(1)
(in EUR  millions)             Q3'09  Q3'08  y.o.y. change  Q2'09  q.o.q. change
Revenue                        365    429    -15%           368    -1%
Gross result                   191    240    -20%           188    2%
Gross margin                   52%    56%                   51%
EBITDA                         96     119    -20%           88     9%
EBITDA margin                  26%    28%                   24%
Operating result               70     93     -25%           59     19%
Operating margin               19%    22%                   16%
Net result                     31     58     -48%           21     42%
EPS, EUR  diluted              0.14   0.39   -63%           0.14   0%
Adjusted EPS(2), EUR  diluted  0.20   0.47   -58%           0.22   -12%
                               Reported
(in EUR  millions)             Q3'09  Q3'08  y.o.y. change  Q2'09  q.o.q. change
Revenue                        365    429    -15%           368    -1%
Gross result                   191    240    -20%           188    2%
Gross margin                   52%    56%                   51%
EBITDA                         96     118    -19%           85     12%
EBITDA margin                  26%    28%                   23%
Operating result               70     92     -24%           57     23%
Operating margin               19%    21%                   15%
Net result                     31     58     -47%           20     53%
EPS, EUR  diluted              0.14   0.38   -63%           0.13   8%
Adjusted EPS(2), EUR  diluted  0.20   0.47   -58%           0.22   -12%

Third quarter 2009 financial highlights(1)

--
Revenue of EUR365 million

--
Operating result of EUR70 million, operating margin of 19%

--
Operating expenses reduced by EUR26 million, 17% year on year

--
Net cash flow from operating activities of EUR79 million

--
Net debt of EUR599 million (Q2 2009: EUR1,006 million)

Third quarter 2009 operational highlights

--
Launch of TomTom application for Apple iPhone

--
TomTom solution for Fiat Punto Evo launched

--
Further roll-out of LIVE Services in Portugal and Belgium

--
New PND ranges: TomTom XXL and TomTom Start

--
Tele Atlas leadership team fully in place

(1)For comparative reasons the restructuring charges
of EUR 2.1 million in Q2 2009 and EUR 0.7 million in Q3 2008 have been
excluded.
(2)Earnings per share adjusted for acquisition related
amortisation, non-cash goodwill impairment and restructuring
charges on a post tax basis.

TomTom's Chief Executive Officer, Harold Goddijn

"We delivered strong profitability and cash flow in the third quarter
as a result of our continued focus on cost and cash management. At the
same time we are broadening our revenue base. In the past twelve months
we were able to increase the contribution of non PND revenue from 20
percent to 30 percent of group revenue.'

Market and TomTom outlook 2009

End user demand continued to develop in line with our expectations in
both Europe and North America. For the full year 2009, the European and
North American PND market sizes are expected to be approximately 15
million and 17 million units respectively.

We are ahead of schedule to achieve our EUR90 million operating expenses
savings target when comparing operating expenses in 2009 to the 2008
full year pro forma operating expenses of EUR627 million.

Operational review

Key figures TomTom (excluding Tele Atlas)

(in EUR  millions)        Q3'09  Q3'08  y.o.y. change  Q2'09  q.o.q. change
Revenue                   318    377    -16%           322    -1%
- of which PNDs           255    343    -26%           276    -7%
- of which Other          63     34     85%            47     34%
# of PNDs sold (in 000s)  2,581  2,526  2%             2,458  5%
ASP                       99     136    -27%           112    -12%

In the third quarter the market showed a stable PND end user demand on a
sequential basis. Year over year the market decreased in Europe in the
quarter by 7% from 4.1 million to 3.8 million units. In North America
the market increased by 3% from 3.3 million to 3.4 million units during
the same period. Our market shares in both geographies remained fairly
stable at 44% in Europe and 18% in North America.

In the quarter the Consumer business unit refreshed our premium range
with the TomTom GO X50 series, including a series of devices with LIVE
Services. At the end of the quarter we also introduced a connected
volume product in the USA, the TomTom XL LIVE. To address a broader
range of customers we added two new PND ranges to our offering, the
TomTom XXL and Start, catering to individual preferences and needs.

Halfway through the quarter we launched our iPhone application. The
initial demand was strong and overall the reception of the application
was positive. In the quarter close to 80 thousand downloads were
registered.

The AUTO business unit announced that together with Fiat Group
Automobiles we have developed an integrated portable navigation
solution, which will be sold as an option in the Fiat Punto Evo. The
collaboration offers Fiat the opportunity to integrate our solutions
into multiple car models. During the quarter, the Carminat-TomTom
solution was rolled out over multiple car models within Renault.

The WORK business unit announced the fully portable TomTom GO 9000 which
is aimed at fleets where drivers and vehicles change frequently or where
subcontractors are used. Early in October we announced the TomTom GO
7000 TRUCK, a product specifically designed for trucks and large
vehicles. In the quarter the net number of subscribers grew by six
thousand to 87 thousand.

Key figures Tele Atlas(1)

(in EUR  millions)                        Q3'09  Q3'08  y.o.y. change  Q2'09  q.o.q. change
Revenue                                   47     52     -8%            46     3%
- of which PNDs (external)                11     14     -17%           8      35%
- of which Automotive (external)          13     13     -4%            13     -6%
- of which Other                          24     25     -5%            24     -3%
# of map licenses (external, in 000s)(2)  1,249  1,520  -18%           1,017  22%
(1) excluding restructuring charges
(2) PND and automotive maps

Tele Atlas made clear progress in processing community input to further
improve its map database. By using more community input to update,
validate and realign or extend the data in our map database we have been
able to further improve the freshness and accuracy of our maps at lower
cost.

Tele Atlas signed an agreement with Vodafone to supply digital maps and
location-based content, marked 20 years of collaboration with GIS
modelling and mapping software leader ESRI and signed on with consumer
electronics developer Nextar. We also expanded our digital map coverage
in Argentina and Uruguay, working jointly with Datamap.

Tele Atlas' leadership team was completed with the appointments of the
Chief Technology Officer and the Executive Vice President of Sales and
Marketing.

Financial review

For ease of comparison restructuring charges are excluded from the
financial review.

Revenue

Revenue for the group was EUR365 million for the quarter, a slight
decrease of 0.8% sequentially (Q2 2009: EUR368 million) and a decrease of
15% compared with last year (Q3 2008: EUR429 million). The year on year
decline reflects the continued impact of the weak economic environment
on our business. The rate of year on year revenue decline slowed this
quarter.

The revenue of the TomTom business (excluding the Tele Atlas business)
over the past quarter amounted to EUR318 million, a decrease of 1.4%
sequentially (Q2 2009: EUR322 million) and a decline of 16% compared to
the previous year (Q3 2008: EUR377 million).

PND sales amounted to EUR255 million, representing 70% of group revenue in
the quarter (Q2 2009: EUR276 million and 75%; Q3 2008: EUR343 million and
80%).

Other revenue, which consists of WORK, AUTO, services and other consumer
revenue, increased by 34% sequentially to EUR63 million from EUR47 million
in the second quarter of the year (Q3 2008: EUR34 million). The increase
in other revenue was mainly driven by a strong increase in automotive
sales and the new iPhone application.

Tele Atlas revenue (excluding inter company) was EUR47 million for the
quarter, an increase of 3.2% sequentially (Q2 2009: EUR46 million) and a
decline of 8.3% compared to the same quarter of last year (Q3 2008: EUR52
million). The year over year revenue decline was mainly the result of
lower PND map sales.

Volumes and average selling prices

We shipped 2.58 million PND units in the quarter, an increase of 5.0%
sequentially (Q2 2009: 2.46 million) and an increase of 2.2% year on
year (Q3 2008: 2.53 million).

The average selling price for PNDs in the second quarter was EUR99, a
decrease of 12% compared to the previous quarter (Q2 2009: EUR112) and a
decrease of 27% compared to the third quarter of 2008 (Q3 2008: EUR136).
The decline was driven by price decreases across a number of products,
partly in anticipation of promotional activities in the fourth quarter.
We continue to expect that the rate of ASP decline for the full year
will be slower than in 2008.

Gross margin

The gross margin for the group was strong at 52%, which represents an
increase of one percentage point sequentially (Q2 2009: 51%) and a
decrease of four percentage points compared to the third quarter of last
year (Q3 2008: 56%).

Operating expenses

In the quarter, total operating expenses amounted to EUR122 million, which
represents a decrease of 5.7% or EUR7.3 million compared to the second
quarter (Q2 2009: EUR129 million). The decrease in operating expenses was
the result of reduced costs across all operating expense categories.
Year on year pro forma operating expenses decreased by 17% for the
quarter (Q3 2008: EUR147 million). Operating expenses as a percentage of
revenue for the quarter decreased to 33% (Q2 2009: 35%, Q3 2008: 34%).

Research and development (R&D) expenses for the quarter were EUR31
million, an 8.1% decrease compared to the previous quarter (Q2 2009: EUR34
million) and a decrease of 18% compared to the R&D expenses for the
previous year (Q3 2008: EUR38 million). The decrease is the result of
improving efficiency in our map production activities.

Amortisation of technology and databases for the quarter was EUR19 million
(Q2 2009: EUR21 million, Q3 2008: EUR17 million).

Marketing expenses showed a slight decline for the quarter at EUR21
million (Q2 2009: EUR22 million). The year on year comparison shows a
decrease in marketing expenses of 31% (Q3 2008: EUR31 million). Total
marketing expenses represented 5.8% of group revenue, a slight decrease
compared to the previous quarter (Q2 2009: 6.0%), and a decrease of 1.4
percentage points compared to the same quarter last year (Q3 2008: 7.2%).

Selling, general and administrative (SG&A) expenses for the quarter
amounted to EUR46 million, down slightly compared to the previous quarter
(Q2 2009: EUR47 million) and by 18% compared to the same quarter last year
(Q3 2008: EUR56 million). SG&A expenses for the group represented 13% of
revenue, the same as in the previous quarter.

Stock compensation expenses for the quarter were EUR3.6 million, down from
EUR5.1 million in the previous quarter. The costs in the previous quarter
were higher because of share options which have since vested which
resulted in lower ongoing costs.

The operating result for the quarter increased by EUR11 million quarter on
quarter to EUR70 million (Q2 2009: EUR59 million). As a percentage of
revenue, the operating profit increased by three percentage points to
19% (Q2 2009: 16%). Year on year the operating profit decreased by EUR23
million (Q3 2008: EUR93 million).

Financial results

The interest expense for the third quarter amounted to EUR27 million (Q2
2009: EUR15 million). The increased interest expense is explained by the
one-off accelerated amortisation of the capitalised transaction costs on
the borrowings (EUR13 million) which resulted from the debt repayment of
EUR409 million. The interest expense was partly offset by a EUR3.0 million
gain resulting from buying back part of the outstanding debt at a
discount.

The other finance result shows a loss of EUR2.5 million, which arose
mainly from foreign exchange contracts which were put in place to cover
our committed and anticipated exposure in non-functional currencies. The
loss on our foreign exchange hedge instruments was mainly driven by a
weaker US dollar against the euro during the quarter which was partly
offset by the weakening of the GB pound as we hedge both our GB pound
sales and our net exposure related to our US dollar sales and purchases.

Tax

The net income tax charge in all the jurisdictions in which we operate
was EUR9.8 million in the third quarter (Q2 2009: EUR6.8 million). The
effective tax rate in the third quarter was 24.0% (Q2 2009: 24.1%).

Cash flow

In the third quarter, we had strong cash flows from operations of EUR114
million, an increase of EUR8.6 million versus the same period last year
(Q3 2008: EUR105 million) and an increase of EUR16 million versus the
previous quarter. The cash generated from operations was mainly driven
by our operating profit of EUR70 million and by a further reduction of
working capital which resulted in a cash inflow of EUR8.2 million. Net
cash flow from operating activities was EUR79 million compared to EUR37
million in the same period last year and EUR96 million in the previous
quarter.

The net proceeds of the equity issue were used to repay the loan and
resulted in a cash outflow from financing activities of EUR64 million as
the cash inflow from the private placement was booked in the previous
quarter.

Debt financing

On 30 September 2009 the book value of our borrowings amounted to EUR996
million, a decrease of EUR398 million compared to the previous quarter (Q2
2009: EUR1,394 million). Excluding transaction costs, which are netted
against the borrowings, our borrowings amounted to EUR1,018 million, down
from EUR1,427 million in the previous quarter. The decrease results from a
repayment of EUR409 million which includes a EUR3.0 million gain resulting
from buying back part of the outstanding debt at a discount.

On 30 September 2009 our net debt had decreased to EUR599 million, down
from EUR1,006 million at the start of the quarter. The decrease results
from the cash inflow received from the rights issue in combination with
a strong operating cash flow for the quarter. The net debt is the sum of
the borrowings (EUR1,018 million), minus the cash and cash equivalents at
the end of the period (EUR423 million) plus our financial lease
commitments (EUR3.6 million).

The floating interest coupon of the loan is based on Euribor plus a
margin. The Euribor element of the interest coupon is fixed with
interest rate swaps.

Balance sheet

Current assets slightly decreased in the quarter, mainly driven by a
decrease of EUR25 million in trade receivables to an amount of EUR212
million (Q2 2009: EUR237 million). Our inventories increased during the
quarter by EUR13 million to EUR78 million (Q2 2009: EUR64 million). The cash
position remained stable during the quarter at EUR423 million (Q2 2009:
EUR423 million).

At the end of the third quarter, we had shareholder's equity of EUR943
million, up from EUR502 million at the beginning of the quarter, mainly
resulting from the gross proceeds of the private placement and the
rights issue.

- END-

Consolidated income statements

(in EUR  thousands)                           Q3'09    Q3'08    YTD'09   YTD'08
Revenue                                       365,151  428,712  946,348  1,145,965
Cost of sales                                 173,857  188,530  460,056  603,169
Gross result                                  191,294  240,182  486,292  542,796
Research and development expenses             31,385   38,428   102,910  84,723
Amortisation of technology & databases        19,355   17,300   57,080   29,889
Marketing expenses                            21,302   31,012   60,445   90,952
Selling, general and administrative expenses  46,132   56,685   146,870  141,326
Stock compensation expense                    3,552    4,630    8,829    2,933
Total operating expenses                      121,726  148,055  376,134  349,823
Operating result                              69,568   92,127   110,158  192,973
Interest result                               -26,945  -26,460  -59,592  -24,496
Other finance result                          -2,542   11,424   -35,480  19,506
Result associates                             672      0        1,870    -13,456
Result before tax                             40,753   77,091   16,956   174,527
Income tax                                    -9,780   -19,422  -3,205   -57,757
Net result                                    30,973   57,669   13,751   116,770
Minority interests                            431      -36      0        162
Net result attributed to the group            30,542   57,705   13,751   116,608
EPS, EUR  basic                               0.14     0.39     0.08     0.79
EPS, EUR  diluted                             0.14     0.38     0.08     0.78
Basic number of shares (in millions)          213.4    148.7    171.3    147.8
Diluted number of shares (in millions)        215.9    150.8    172.0    150.1

Consolidated pro-forma income statements (excluding restructuring
charges)*

(in EUR  thousands)                           Q3'09    Q3'08    YTD'09   YTD'08
Revenue                                       365,151  428,712  946,348  1,220,111
Cost of sales                                 173,857  188,530  460,056  587,232
Gross result                                  191,294  240,182  486,292  632,879
Research and development expenses             31,385   38,428   102,910  127,440
Amortisation of technology & databases        19,355   17,300   57,080   50,255
Marketing expenses                            21,302   31,012   60,445   102,903
Selling, general and administrative expenses  46,132   56,052   139,366  167,678
Stock compensation expense                    3,552    4,630    8,829    10,478
Total operating expenses                      121,726  147,422  368,630  458,754
Operating result                              69,568   92,760   117,662  174,125
Interest result                               -26,945  -26,461  -59,592  -75,154
Other finance result                          -2,542   11,424   -35,480  20,060
Result associates                             672      0        1,870    -1,211
Result before tax                             40,753   77,723   24,460   117,820
Income tax                                    -9,780   -19,583  -5,118   -45,448
Net result                                    30,973   58,140   19,342   72,372
Minority interests                            431      -36      0        -137
Net result attributed to the group            30,542   58,176   19,342   72,509
EPS, EUR  basic                               0.14     0.39     0.11     0.49
EPS, EUR  diluted                             0.14     0.39     0.11     0.48
Basic number of shares (in millions)          213.4    148.7    171.3    147.8
Diluted number of shares (in millions)        215.9    150.8    172.0    150.1

* The figures assume consolidation of Tele Atlas throughout 2008 and
exclude the restructuring charges of EUR0.7 million in Q3 2008, EUR5.4
million in Q1 2009 and EUR2.1 million in Q2 2009.

Consolidated balance sheet

(in EUR  thousands)                30 Sept 2009  31 Dec 2008
Goodwill                           854,717       854,713
Other intangible assets            977,637       1,011,194
Property, plant and equipment      45,204        53,155
Deferred tax assets                37,156        32,977
Investments                        7,494         5,663
Total non-current assets           1,922,208     1,957,702
Inventories                        77,509        145,398
Trade receivables                  212,093       289,981
Other receivables and prepayments  36,501        15,987
Other financial assets             19,077        36,583
Cash and cash equivalents          422,932       321,039
Total current assets               768,112       808,988
Total assets                       2,690,320     2,766,690
Share capital                      44,337        24,663
Share Premium                      973,691       575,918
Other reserves                     42,218        32,746
Stock compensation reserve         74,932        69,469
Retained earnings/ (deficit)       -196,602      -194,387
Minority interests                 4,191         4,964
Total equity                       942,767       513,373
Borrowings                         795,233       1,241,900
Provisions                         54,049        55,702
Long-term liability                3,640         4,749
Deferred tax liability             227,560       229,075
Total non-current liabilities      1,080,482     1,531,426
Trade payables                     137,932       152,119
Borrowings                         200,841       146,588
Tax and social security            42,584        29,044
Provisions                         47,407        57,231
Other liabilities and accruals     238,307       336,909
Total current liabilities          667,071       721,891
Total equity and liabilities       2,690,320     2,766,690

Consolidated statements of cash flows

(in EUR  thousands)                                               Q3'09     Q3'08    YTD'09    YTD'08
Operating result                                                  69,568    92,127   110,158   192,973
Financial gains / (losses)                                        8,766     25,569   -15,851   13,609
Depreciation of PPE                                               2,418     5,831    14,465    10,689
Amortisation of intangible assets                                 23,555    18,415   66,115    33,933
Change to provisions                                              -2,529    1,331    -12,074   11,866
Change to stock compensation reserve                              3,632     2,288    7,043     1,247
Changes in working capital:
Change in inventories                                             -12,464   -55,503  68,487    -68,103
Change in receivables and prepayments                             7,073     80,753   57,379    194,187
Change in current liabilities                                     13,558    -65,826  -70,678   -178,166
Cash generated from operations                                    113,577   104,985  225,044   212,235
Interest received                                                 289       565      1,877     11,566
Interest paid                                                     -23,155   -24,190  -57,745   -32,680
Corporate income taxes paid                                       -12,184   -44,459  -14,985   -86,275
Net cash flow from operating activities                           78,527    36,901   154,191   104,846
Investments in intangible assets                                  -7,624    -12,401  -42,429   -20,931
Investments in property, plant and equipment                      -3,340    -4,374   -12,185   -25,159
Acquisition of subsidiary                                         -2,604    -59,558  -2,604    -1,829,495
Total cash flow used in investing activities                      -13,568   -76,333  -57,218   -1,875,585
Repayment/proceeds from borrowings                                -412,048  -3,648   -412,048  1,550,789
Proceeds on issue of ordinary shares                              348,189   7,686    415,867   20,376
Total cash flow from financing activities                         -63,859   4,038    3,819     1,571,165
Net increase in cash and cash equivalents                         1,100     -35,394  100,792   -199,574
Cash and Cash equivalents at beginning of period                  422,530   296,277  321,039   463,339
Exchange rate effect on cash balances held in foreign currencies  -698      1,631    1,101     -1,251
Cash and Cash equivalents at end of period                        422,932   262,514  422,932   262,514

Consolidated statement of changes in stockholders' equity

(in EUR  thousands)                                 share capital  share premium  other reserves  stock compens. reserve  retained earnings  shareholders equity  minority interests  total
01 January 2009                                     24,663         575,918        32,746          69,469                  -194,387           508,409              4,964               513,373
Translation differences                                                           -1,012                                                     -1,012               -773                -1,785
Transfer to legal reserves                                                        10,484                                  -15,966            -5,482                                   -5,482
Net income (expense) recognised directly in equity  0              0              9,472           0                       -15,966            -6,494               -773                -7,267
Result for the year                                                                                                       13,751             13,751               0                   13,751
Total recognised income and expense                 0              0              9,472           0                       -2,215             7,257                -773                6,484
Stock compensation reserve                                                                        5,463                                      5,463                                    5,463
Issue of Share Capital                              19,674         397,773                                                                   417,447                                  417,447
31 September 2009                                   44,337         973,691        42,218          74,932                  -196,602           938,576              4,191               942,767

Accounting policies

Basis of accounting

The condensed consolidated financial statements for the three-month
period ended 30 September 2009 with related comparative information have
been prepared using International Financial Reporting Standards (IFRS).
Accounting policies and methods of computation followed in the interim
financial statements, for the period ended 30 September 2009, are the
same as those followed in the Financial Statements for the year ended 31
December 2008. Further disclosures as required under IFRS for a complete
set of consolidated financial statements are not included in the
condensed consolidated financial statements.

Audio web cast third quarter 2009 results
The information for our third quarter results audio web cast is as
follows:
Date and time: 28 October 2009 at 14:00 CET
Place: http://investors.tomtom.com/tomtom/presentations/
TomTom is listed at Euronext Amsterdam in the Netherlands
ISIN: NL0000387058 / Symbol: TOM2

About TomTom N.V.

TomTom N.V. is the world's leading provider of navigation solutions and
digital maps. TomTom N.V. has over 3300 employees working in four
business units -- TomTom, Tele Atlas, AUTO and WORK.

TomTom's products are developed with an emphasis on innovation, quality,
ease of use, safety and value. TomTom's products include all-in-one
navigation devices which enable customers to navigate right out of the
box; these are the award-winning TomTom GO family, the TomTom XL and
TomTom ONE ranges and the TomTom RIDER. Additionally, independent
research proves that TomTom products have a significant positive effect
on driving and road safety.

Tele Atlas delivers the digital maps and dynamic content that power some
of the world's most essential navigation and location-based services
(LBS). Through a combination of its own products and partnerships, Tele
Atlas offers digital map coverage of more than 200 countries and
territories worldwide. The business unit AUTO develops and sells
navigation systems and services to car manufacturers and OEMs. WORK
combines industry leading communication and smart navigation technology
with leading edge tracking and tracing expertise.

TomTom N.V. was founded in 1991 in Amsterdam and has offices in Europe,
North America, Middle East, Africa and Asia Pacific. TomTom is listed at
Euronext Amsterdam in The Netherlands. For more information, go to www.tomtom.com.

This document contains certain forward-looking statements relating to
the business, financial performance and results of the Company and the
industry in which it operates. These statements are based on the
Company's current plans, estimates and projections, as well as its
expectations of external conditions and events. In particular the words
"expect", "anticipate", "estimate", "may", "should", "believe" and
similar expressions are intended to identify forward-looking statements.
Forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those in the
forward-looking statements. These include, but are not limited to: the
level of consumer acceptance of existing and new and upgraded products
and services; the growth of overall market demand for the Company's
products or for personal navigation products generally; the Company's
ability to sustain and effectively manage its recent rapid growth; and
the Company's relationship with third party suppliers, and its ability
to accurately forecast the volume and timing of sales. Additional
factors could cause future results to differ materially from those in
the forward-looking.

SOURCE: TomTom

TomTom 
Financial Community 
Richard Piekaar, +31 20 757 5194 
ir@tomtom.com

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