TomTom NV Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Wim Gille - ABN AMRO ODDO BHF - Analyst : It's a very good afternoon. Hope you can hear me. First, my questions are about the outlook for enterprise and automotive. When I look at enterprise, I see I have pretty good commercial momentum in the second half. And if I do a very simplistic four times Q4, I already end up at EUR170 million in enterprise revenues for 2025. So that would be without kind of new wins and new clients. And that's an increase of 6% for enterprise. Is that also kind of the minimum growth that you would expect in enterprise based on what we see today? And then the second question is the implied outlook for the automotive business. If I put a simple, put 5% to 10% growth just to be conservative on enterprise in my model, I end up with a minus 17% to minus 5% on automotive on an IFRS basis. Can you give us a bit more granularity on how you look at this? It is based on kind of a firm visibility on 2025. This is what we expect or is it more, there's a lot of uncertainty in the market and we just want to be cautious here. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 12:00PM, TOM2.AS - Q4 2024 TomTom NV Earnings Call And then the last question would be on the commercial momentum in the enterprise segment. Can you give us a bit more granularity on the sales funnel, how things are progressing there? What are you currently converting? Is it still om clients, or are you also converting here clients? And are there any big fish in the sales funnel that could or could not convert into 2025? Thanks.

Question: Wim Gille - ABN AMRO ODDO BHF - Analyst : Very good. And I still want to follow up on the automotive question because if I read in between the lines and I, hear you talking, you basically say we don't know what's happening on a monthly basis at this point in time. Oh, we don't know what's happening on a monthly basis at this point in time. And hence, we're just being very cautious here that begs the question, why give an outlook at all if we don't know. And I don't think anyone on this call needs to have a press release I don't to pick about OEM this week. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 12:00PM, TOM2.AS - Q4 2024 TomTom NV Earnings Call

Question: Wim Gille - ABN AMRO ODDO BHF - Analyst : To summarize, there's short-term uncertainty in automotive, but the outlook for automotive in the midterm, it's unchanged, if any, it's even better. Momentum in enterprise is going great. And in this year at peak uncertainty, you are still cash flow positive. So what prevents you from using some of your cash pile to start a share buyback because obviously, the market is more focusing on the short-term uncertainty than the midterm opportunity. So I would say that this is actually the time to basically use that (inaudible) and start a share buyback again.

Question: Wim Gille - ABN AMRO ODDO BHF - Analyst : All right. Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 12:00PM, TOM2.AS - Q4 2024 TomTom NV Earnings Call

Question: Tim Ehlers - Kepler Cheuvreux SA - Analyst : Yes. Hi, good afternoon. Thanks for taking my questions. The first one is about the gross margin. As consumer is expected to decline further, I mean, automotive is also somewhat declining and but enterprise is improving, we should expect an improvement of the gross model, right? And is there a top level at which you would say that the level where it will stabilize considering all things are normal?

Question: Tim Ehlers - Kepler Cheuvreux SA - Analyst : Okay, great, thanks. And then one question with regards to ADAS maps and technology. I mean, expectations are that adaptation of the technology will take longer than expected and the rollout is slower, but you still see some traction there. And do you see that first customers are looking into it a bit more which could eventually give you somewhat of a mitigation towards the overall decline in automotive.

Question: Tim Ehlers - Kepler Cheuvreux SA - Analyst : Yes.

Question: Tim Ehlers - Kepler Cheuvreux SA - Analyst : And you already see that traction. So not something that you expect to happen in the midterm but it's also something that you already see to some extent.

Question: Tim Ehlers - Kepler Cheuvreux SA - Analyst : Great. And then one last one. With regard to our automotive customers, do you currently see variations when it comes to geographies. And I'm thinking especially about US customers, but also Chinese. And could you maybe comment a bit on the dynamics you see across those geographies?

Question: Tim Ehlers - Kepler Cheuvreux SA - Analyst : Okay. I wanted to ask if your competitive position within those geographies, is it the same across the globe? Or does it differ?

Question: Tim Ehlers - Kepler Cheuvreux SA - Analyst : Okay, great. Thanks for that.

Question: Marc Hesselink - ING Financial Markets - Analyst : Yeah, thanks for taking the question. Yes. My first question is on the product. You already said that you've invested heavily over the last couple of years into the new platform, the Hovis platform. what is next? Are there still a lot of things that you want to add on top of the platform, a lot of extra functionality? Or it's also maybe the possibility to invest a bit more and then even further increase the efficiency a little bit of the strategic things that you want to change maybe this year, but also in the coming years.

Question: Marc Hesselink - ING Financial Markets - Analyst : Clear. Thanks. The second question is coming back on automotive. I fully understand that the short-term is very, very low visibility. And as you also developing more in the R&D phase for the more longer-term projects with your clients? And you already talked a bit a bit in previous questions, but just maybe just your thinking on how this will develop in the longer run in the industry. Is the mapping business within the automotive, is it going to grow in line with production growth? Or do you see very significant quick uptakes in those adoption rates, pricing differences also the shift between maybe the OEMs who was going to be the winners and with loser, maybe also new payment system not pay per car, but more on a per Brent maybe basis. I mean a lot of things are moving, I think, in automotive at the moment. If you just can share a bit what you're hearing, what you think and what will impact on the longer-term?

Question: Marc Hesselink - ING Financial Markets - Analyst : Okay. Very clear. Thank you.