TELE ATLAS 
By
Tele Atlas Reports Record Fourth Quarter and Full Year 2007
2007 Net Income ?24.4 million, Revenue Increases 17%
's-Hertogenbosch, The Netherlands, February 28, 2008 - Tele Atlas NV
(EUNV: TA, FSE: TA6), a leading global provider of digital maps and
dynamic content for navigation and location based solutions, today
reported results for the fourth quarter and full year of 2007.
Highlights of the full year and fourth quarter 2007:
* Full year revenues increased 17% to ?308.0 million from ?264.3
million in 2006
* Full year Adjusted EBITDA increased 45%, to ?63.6 million in 2007
* Positive full year net income of ?24.4 million
* Fourth quarter revenues increased 17% to ?96.9 million
* Fourth Quarter Adjusted EBITDA increased 49% to ?31.3 million
* Portable Navigation grew 35% and Internet and Wireless grew 66%
over 2006
* TomTom transaction in phase two review by European Commission
* Outlook 2008: Estimated revenues will grow to ?375 - ?385 million
and Adjusted EBITDA will grow to ?85 - ?95 million
Key Figures
+-------------------------------------------------------------------+
| In millions | | | | | | |
| of euros, | | | | | | |
| except | | | | | | |
| otherwise | Q4 | Q4 | % | FY | | % |
| noted | 2007 | 2006 | Change | 2007 | FY 2006 | Change |
|---------------+-------+-------+--------+-------+---------+--------|
| Revenues | 96.9 | 82.8 | 17% | 308.0 | 264.3 | 17% |
|---------------+-------+-------+--------+-------+---------+--------|
| Adjusted | 31.3 | 21.0 | 49% | 63.6 | 43.8 | 45% |
| EBITDA[1] | | | | | | |
|---------------+-------+-------+--------+-------+---------+--------|
| Operating | 38.3 | 6.7 | 472% | 25.0 | (17.3) | n/a |
| result (EBIT) | | | | | | |
|---------------+-------+-------+--------+-------+---------+--------|
| Net result | 35.9 | 5.4 | 565% | 24.4 | (19.0) | n/a |
|---------------+-------+-------+--------+-------+---------+--------|
| Average | | | | | | |
| number of | 1,823 | 1,590 | 15% | 1,699 | 1,490 | 14% |
| employees | | | | | | |
|---------------+-------+-------+--------+-------+---------+--------|
| Earnings per | 0.38 | 0.06 | 550% | 0.26 | (0.21) | n/a |
| share (in ?) | | | | | | |
+-------------------------------------------------------------------+
[1] Adjusted EBITDA is the operating result before capitalization,
depreciation and amortization, costs related to Share-based Payments
and before transaction costs related to the proposed TomTom
transaction.
Alain De Taeye, Chief Executive Officer, said: "This was a landmark
year for Tele Atlas. We saw record numbers of portable navigation
devices sold worldwide, strong growth in the wireless and Internet
sectors, innovation in automotive navigation, and the announcement
that TomTom intends to acquire the company. Tele Atlas stands ready
to lead a new era in the digital map industry, one in which
interaction with and feedback from the end user community helps us
get closer to the ideal of creating maps in real time that accurately
reflect the ever-changing world around us."
Financial Highlights
Beginning with fiscal 2007, certain changes have been made to
segmentation and presentation in our reporting. These changes are
further clarified in the notes to our financial statements.
Comparative information for 2006 has been restated to reflect these
changes retroactively.
Revenues
Worldwide revenues increased by 17% to ?308.0 million in 2007 from
?264.3 million in 2006. Excluding the effect of changes in exchange
rates worldwide revenue growth was 19%. Revenues in EMEA increased by
12% to ?216.7 million compared to ?193.0 million in 2006, largely due
to growth in portable navigation. Revenues in the Americas increased
by 20% to ?79.1 million in 2007 compared to ?66.2 million in 2006.
Excluding the effect of changes in exchange rates, revenue growth in
The Americas was 31%. In APAC, revenues grew from ?5.2 million to
?12.3 million. Our largest customer in 2007 was TomTom, representing
32% of our revenues (2006: 26%). The only other customer with a share
in our revenues of more than 10% in 2007 was Mio/Navman with 13%.
Revenues per Segment[1]
(In millions of euros)
+------------------------------------------------------------------------------------+
| | 3 months ended | 3 months ended |
| | December 31, 2007 | December 31, 2006 |
|---------------+---------------------------------+----------------------------------|
| | EMEA | Americas | APAC | Total | EMEA | Americas | APAC | Total |
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Portable | | | | | | | | |
|navigation | 44.6| 14.9| 0.9| 60.4| 40.4| 6.2| 0.6| 47.4|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Automotive | | | | | | | | |
|navigation | 7.5| 3.3| 0.9| 11.7| 8.9| 4.0| (0.1)| 13.5|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Data products | | | | | | | | |
|navigation | 4.5| 0.0| 0.1| 4.6| 5.2| 0.0| 0.8| 5.1|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Enterprise and | | | | | | | | |
|government | 3.5| 8.6| 0.0| 12.1| 3.2| 9.2| (0.4)| 12.1|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Other segments | 4.4| 3.0| 0.7| 8.1| 2.3| 1.5| 1.0| 4.8|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
| | 64.5| 29.8| 2.6| 96.9| 60.0| 20.9| 1.9| 82.8|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Intra-company | | | | | | | | |
|Commissions | 1.5| (4.0)| 2.4| -| 0.5| (1.1)| 0.6| -|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Net Revenue | | | | | | | | |
|Total | 66.1| 25.8| 5.1| 96.9| 60.6| 19.8| 2.5| 82.8|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
| | | | | | | | | |
|---------------+---------------------------------+----------------------------------|
| | 12 months ended | 12 months ended |
| | December 31, 2007 | December 31, 2006 |
|---------------+---------------------------------+----------------------------------|
| | EMEA | Americas | APAC | Total | EMEA | Americas | APAC | Total |
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Portable | | | | | | | | |
|navigation | 137.4| 32.5| 1.1| 171.0| 112.2| 13.8| 1.1| 127.1|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Automotive | | | | | | | | |
|navigation | 31.4| 12.0| 2.5| 45.8| 38.3| 11.1| 2.2| 51.7|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Data products | | | | | | | | |
|navigation | 20.2| 0.2| 0.5| 20.9| 22.9| 0.2| 0.1| 23.2|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Enterprise and | | | | | | | | |
|government | 11.1| 34.8| 0.0| 45.9| 10.4| 37.0| 0.2| 47.6|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Other segments | 13.4| 9.2| 1.8| 24.4| 7.5| 6.2| 1.0| 14.7|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
| | 213.5| 88.6| 5.9| 308.0| 191.4| 68.3| 4.6| 264.3|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Intra-company | | | | | | | | |
|Commissions | 3.2| (9.6)| 6.4| -| 1.5| (2.2)| 0.6| -|
|---------------+-------+----------+------+-------+-------+----------+-------+-------|
|Net Revenue | | | | | | | | |
|Total | 216.7| 79.1| 12.3| 308.0| 193.0| 66.2| 5.2| 264.3|
+------------------------------------------------------------------------------------+
[1] Segment revenues reflect revenues by database area.
Intra-company commissions are for customer and technical support
among areas. Rounding differences may occur.
Portable Navigation
During the fourth quarter of 2007, worldwide revenues in the portable
navigation segment increased by 27% over the same period in the prior
year to ?60.4 million. Revenues in the segment grew 38% after
adjusting for the ?4.4 million effect of currency exchange rate
changes. Fourth quarter segment revenues in 2007 reflect map license
fees from the sale of 6.2 million portable navigation units during
the quarter as compared to 3.1 million units in the same period
during the previous year. EMEA portable navigation revenues for the
quarter were ?44.6 million, an increase of 10% over the same period
last year. Americas portable navigation revenues were ?14.9 million,
an increase of 141% over the same period last year (a 211% increase,
excluding exchange rate effect). The difference between portable
navigation unit and revenue growth rates resulted from a movement
towards lower cost portable navigation systems, coupled with product
price reductions in effect during the quarter.
Full year revenues in portable navigation increased by 35% to ?171.0
million from ?127.1 million in 2006. The 2007 revenues represent 15.3
million units versus 7.5 million units in 2006. Revenues in the EMEA
portable navigation segment grew by 22% to ?137.4 million from ?112.2
million in 2006. Revenues in the Americas portable navigation segment
grew by 136% to ?32.5 million from ?13.8 million in 2006 as a result
of the rapid growth in the market for portable navigation systems. In
APAC revenues in this segment remained level with the prior year.
Automotive navigation
Revenues in the automotive segment for the quarter decreased 13% from
the same quarter the prior year to ?11.7 million. After adjusting for
the effects of changes in currency exchange rate, revenues decreased
by 10%. Worldwide, the number of map licenses sold by Tele Atlas in
the automotive segment grew to 0.5 million units. EMEA revenue in
this segment was ?7.5 million, a 16% decrease from the same period in
the prior year. This decline was primarily the result of the loss of
the Volkswagen midline business. The Americas automotive navigation
revenues decreased by 16% to ?3.3 million. After adjustment for the
effects of changes in exchange rates, the decrease in the Americas
automotive revenue was 6%.
For the full year, revenues in the automotive navigation segment
decreased by 11% to ?45.8 million from ?51.7 million in 2006. The
2007 revenues represent 2.0 million units as compared to 1.5 million
units in the prior year. Revenues in the EMEA automotive navigation
segment decreased by 18% to ?31.4 million as compared to ?38.3
million in 2006. This decline was primarily the result of the loss of
the Volkswagen midline business and the phasing out of the
compilation and conversion activities in 2007. The compilation and
conversion decrease was offset by a similar reduction in cost of
revenues and operating expenses. Revenues in the the Americas
automotive navigation segment increased by 8% to ?12.0 million
compared to ?11.1 million in 2006. In APAC, revenues for the
automotive segment increased by 11% to ?2.5 million.
Enterprise and government
Fourth quarter worldwide revenue from the enterprise and government
sectors remained stable at ?12.1 million. Revenues increased 8% after
adjusting for a ?1.0 million effect of currency exchange rate
changes.
Full year revenues in the enterprise and government sector declined
by 4% to ?45.9 million from ?47.6 million in 2006. This was mainly
caused by exchange rate effects. Excluding exchange rates revenues in
this segment increased by 3%.
Data Products Navigation
Fourth quarter revenues from navigation data products decreased by 9%
to ?4.6 million compared to ?5.1 million the same period last year.
Full year revenues in the data products navigation segment, a segment
which today exists primarily in EMEA, decreased by 10% to ?20.9
million from ?23.2 million in 2006 due to reduced demand for map
updates for older CD based systems and a shift in sales from the
dealer and consumer channel towards the platform channel.
Other Segments
Revenue in the fourth quarter in the other segments, consisting of
consumer wireless and Internet segments, increased by 70% to ?8.1
million compared to ?4.8 million during the same period last year as
a result of strong growth in the consumer wireless segment in the
EMEA and Americas regions.
Full year revenues in this segment increased by 66% to ?24.4 million
as compared to ?14.7 million in 2006. EMEA revenues in this segment
grew 79% in 2007 to ?13.4 million from ?7.5 million in 2006 while the
Americas revenues increased 48% in 2007 to ?9.2 million from ?6.2
million in 2006. Growth in this segment for APAC was ?0.8 million to
?1.8 million.
Operating Expenses
Total operating expenses, excluding depreciation and amortization
charges and the reversal of recognized impairment charges which were
recognized in 2003, increased by 10% to ?267.7 million from ?242.5
million in 2006. Employee stock option expense included in operating
expenses in 2007 amounted to ?16.8 million, compared to ?21.9 million
in 2006. Excluding employee stock option expense, operating expenses
increased by 11% to ?250.9 million from ?220.5 million in 2007.
Included in 2007 operating expenses is an amount of ?6.5 million
related to the proposed acquisition by TomTom. The effect of changes
in exchange rates for operating expenses was a ?8.3 million
reduction. The cumulative full year impact on operating expenses of
the acquisitions in 2007 in Taiwan, Thailand and South Africa was
?0.6 million.
Cost of revenue increased to ?31.8 million from ?25.7 million in
2006. As a percentage of revenues, cost of revenues remained stable
at 10%.
Personnel expenses excluding stock option expenses, increased by 11%
to ?120.8 million from ?109.2 million in 2006. This increase was
primarily due to increases in headcount as our operations grew.
Other operating expenses increased by 15% to ?98.4 million in 2007
from ?85.7 million in 2006. Excluding the cost of ?6.5 million
related to the proposed acquisition by TomTom other operating
expenses would have increased with 7%, in line with the growth of the
business.
Operating Result
In the fourth quarter of 2007 Adjusted EBITDA (operating result
before capitalization, depreciation and amortization, costs related
to share-based payments, the reversal of impairment charges and
transaction costs related to the proposed TomTom transaction) for the
Company improved from ?21.0 million to ?31.3 million.
For the full year Adjusted EBITDA improved to a profit of ?63.6
million in 2007 from ?43.8 million in 2006. The Adjusted EBITDA for
our EMEA region improved to a profit of ?111.6 million in 2007 from a
profit of ?95.3 million in 2006. The Adjusted EBITDA attributable to
the Americas increased to a profit of ?14.9 million from a profit of
?6.5 million in 2006. In the APAC region, Adjusted EBITDA improved to
a loss of ?0.5 million in 2007 from a loss of ?4.0 million in 2006.
The Adjusted EBITDA at the corporate level was a loss of ?62.4 in
2007 versus a loss of ?54.1 in 2006.
Fourth quarter operating profit was ?38.3 million compared to ?6.7
million in the same period in 2006. This includes the ?23.1 million
effect of the reversal of previously recognized impairment losses on
intangible assets in the Americas.
The Company's full year operating profit for the year was ?25.0
million compared to a loss of ?17.3 million in 2006, mainly because
of the improvement in EBITDA and the ?23.1 million effect of a
reversal of previously recognized impairment losses on intangible
assets.
Net financial income for the year increased to ?7.8 million in 2007
from ?4.7 million in 2006. This increase was primarily the result of
improved cash management and increased interest rates.
In 2007, a net tax charge of ?8.3 million was included in the Income
Statement, compared to a benefit of ?1.4 million in the previous
year. The benefit in 2006 included the recognition of a ?10.7 million
tax benefit which was recognized following approval by the tax
authorities of the reclassification for tax purposes of certain
intercompany financing in the Netherlands.
In the fourth quarter of 2007 net income was ?35.9 million compared
to ?5.4 million in the fourth quarter in 2006. Net income for 2007
was a profit of ?24.4 million in 2007 compared to a loss of ?19.0
million in 2006.
Cash Flow
The net cash flow from operating activities in 2007 declined to a
cash inflow of ?34.0 million in 2007 from ?39.3 million in 2006. This
resulted primarily from an increase in working capital and higher
taxes, which were partially offset by a higher EBITDA. Working
capital and other changes increased by ?33.5 million as compared to
an increase of ?19.7 million in 2006.
2007 Operational Review
Tele Atlas achieved many operational goals in 2007, again led by the
portable navigation segment. Gains were also realized in the
Company's other market segments, including key wins in the automotive
market. For example, under a contract signed in 2007, the first BMW
vehicles with Tele Atlas map data are due to arrive in North American
showrooms at the end of 2008. The Company also announced further
progress in the growing Internet and wireless markets with Google now
using Tele Atlas maps for Google Maps for Mobile and for Google Earth
in EMEA, and new and expanded agreements in the enterprise/public
sector market.
Portable Navigation Market
The portable navigation market continued its rapid growth throughout
2007. A record of around 20 million dedicated portable navigation
units were sold in EMEA, representing market growth of more than 65%
compared to 2006. Tele Atlas currently expects, barring unforeseen
circumstances, that this market growth should continue into 2008 with
unit growth rates of approximately 40%. Six of the eight leading
portable navigation device providers worldwide use Tele Atlas maps.
These include TomTom, Mio, Garmin and ViaMichelin. In 2007, Tele
Atlas worldwide revenues in the portable navigation segment increased
by 35% to ?171.0 million, compared to ?127.1 million in 2006.
In 2007, TomTom remained Tele Atlas' largest customer accounting for
32% of the Company's revenue in 2007. Tele Atlas and TomTom executed
an amended agreement for the supply of map products for TomTom's
portable navigation product line. Current TomTom navigation devices
using Tele Atlas maps include the TomTom GO 920, 720, 520, the ONE
Third edition devices, and all ONE XL devices. Customers can choose
from regional maps, European maps or maps covering the United States.
TomTom also introduced the TomTom ONE in South Africa, which is the
first navigation device launched with Tele Atlas map data in this
region. Additionally, as of 2007, TomTom users can update maps
conveniently through TomTom HOME or via the TomTom website. TomTom
users with a device with map version 6.75 or higher can use TomTom
Map Share(TM), a unique map improvement technology that enables users
to easily and instantly improve maps directly on their device.
Mio introduced several new units including the C320, C520 and the
C520t, which are all equipped with 4.3 inch screens and the most
recent versions of Tele Atlas maps. To reach the low cost segment of
this market, Mio launched the C220. This unit is priced at ?199,
making it one of most affordable units on the market. Mio currently
ranks number three in the European market and has grown to become one
of Tele Atlas' largest customers.
Additionally, Mio introduced the C620 with MioMap 2008, featuring the
recently released Tele Atlas Digital Elevation Model and 3D
Landmarks. Tele Atlas will also provide Mio with digital maps and
rich navigation content including millions of POIs for its new
devices the Mio DigiWalker(TM) C720t, Mio DigiWalker(TM) C230 and Mio
DigiWalker(TM) C320, which were unveiled at the DigitalLife
technology conference.
Navman introduced its new S-series navigation devices featuring Tele
Atlas maps. The new models, S30, S50, S70 and S90i, include over 500
improvements in areas such as design, intelligence and user
interfaces.
Tele Atlas partner Nav N Go signed an agreement with Sony
PlayStation® Portable Go! Explore in August, opening the fast-growing
gaming sector to mapping applications and navigation. This solution
will feature Tele Atlas digital maps and POI content, as well as 3D
City Maps, 3D Landmarks and turn-by-turn routing.
The Company also announced that Garmin International will deploy Tele
Atlas digital maps for its GVN 52 devices in Malaysia, Singapore,
Indonesia and Thailand.
In 2007, Tele Atlas announced it will provide digital maps for the
United States and Canada and content for more than 12 million POIs,
as well as turn-by-turn directions and text-to-speech verbal guidance
for the new HP iPAQ 300 Series Travel Companion. The device's HP
Navigation System combines high-performance GPS technology, a
high-resolution 4.3-inch touch screen display and a premium
audio/visual entertainment system for a complete mobile navigation
and multimedia offering.
In February 2008, Quantum, a provider of high-quality, innovative
multimedia and mobile "Personal TV" devices, and AvMap, the Italian
leader in satellite navigation systems, announced the launch of QTM
1000 Nav. This is one of the world's first devices to integrate
portable TV and advanced satellite navigation technologies. The
device will feature digital maps and content from Tele Atlas.
Automotive Navigation Market
Revenues from the automotive navigation market were ?45.8 million in
2007, compared to ?51.7 million in 2006, a decrease of 11%. This
decline was primarily the result of the loss of the Volkswagen
midline business and Tele Atlas has phased out its compilation and
conversion activities in 2007. The compilation and conversion
decrease was offset by a similar reduction in cost of revenues and
operating expenses.
In 1995, Tele Atlas first supplied digital maps to Mercedes-Benz
through its partner Blaupunkt. Today, Tele Atlas supplies maps to
many leading automotive brands and OEM equipment manufacturers
including Audi, Bentley, Bosch/ Blaupunkt, BMW, Mercedes-Benz, Denso,
Ford, General Motors, Harman/Becker Automotive, Pioneer, Porsche,
SiemensVDO, Toyota, Volkswagen and many others.
Tele Atlas announced a tier one relationship with BMW. Under this
agreement, BMW will begin to use Tele Atlas map data in the Americas,
with initial introduction expected in late 2008. Tele Atlas map data
is currently used in BMW models in several markets in APAC and
Russia.
The Company's achievements in this sector during 2007 also included
the launch of the first automotive navigation system in EMEA with
full voice recognition. This solution is powered by Tele Atlas Voice
Map data and was released by Mercedes-Benz for the new C-class which
will be available in the summer of 2008.
Ford launched a new Blaupunkt/Tele Atlas DVD system in Europe for the
new Ford Mondeo. The system will become available on other Ford
models later in the year and gives purchasers the option of using
SD-card systems as an alternative for CDs. The Company also reported
a key win at a major French auto maker for a new low-end in-car
navigation platform.
In Russia and APAC, the first Tele Atlas products were released by
Mercedes-Benz for the new C-class with the Mitsubishi Electric
Platform. Also in Russia, the addition of Audi as a Tele Atlas
customer means that all German premium brands (Audi, BMW,
Mercedes-Benz and Porsche) now source Tele Atlas data of Russia in
their navigation systems.
Internet/Wireless Market
Revenue in the Internet/wireless market increased by 66% to ?24.4
million in 2007, compared to ?14.7 million in 2006. Although volume
in this market segment remained limited in 2007, Tele Atlas firmly
believes that the quality of its map data, combined with its
relationships with companies such as Google, RIM, Mappy and
Wayfinder, leave it well positioned in this emerging market. Tele
Atlas is already a leading supplier in the Internet/wireless market,
providing maps to four of the five top Internet mapping providers.
In 2007, Google Inc. selected Tele Atlas digital maps to power its
Google Maps for Mobile and Google Earth in Europe. The Company's
growing relationship with Google is expected to produce unique
business opportunities in the future.
Tele Atlas also closed an agreement with Sony Ericsson for their P1i
Smart Phone, which can be bundled with a Bluetooth GPS mouse and the
Wayfinder Navigator application. This bundle provides users with a
complete navigation solution on this mobile phone including GPS
mapping in over 150 countries, turn-by-turn navigation in over 50
countries and more than 20 languages, and a power search feature to
help users locate selected local services and POIs. In 2007, Tele
Atlas sold more than 200,000 regional maps for navigation as a result
of this partnership.
Tele Atlas digital map data is also used in the SFR Navigation
solution launched by Mappy and SFR in France. SFR Navigation is an
all-inclusive GPS service for mobile phones. This solution combines
the latest GPS device functionality with European geographic coverage
of 16 countries, hundreds of thousands of POIs, real-time traffic
information for more than 70,000 kilometers of roads, and fixed and
mobile speed cameras throughout France.
In 2007, the Company conducted the Wireless GPS Study, which revealed
that the vast majority of consumers, 84%, view built-in GPS as a
valuable feature for their mobile phones, and 75% want to use their
mobile phones to find POIs or other information about their
surroundings. These findings, as well as an expanding roster of
industry leading wireless partners, reinforce the Company's belief
that this market remains poised for strong growth.
Enterprise and Government Market
In 2007, Tele Atlas continued to be the leading digital map supplier
to the enterprise and government segment, and the Company's
leadership in that market stabilized during the year. Revenues for
these markets declined 4% to ?45.9 million in 2007, compared to ?47.6
million in 2006 due to the decline of the dollar against the euro.
In January, Tele Atlas announced an agreement to integrate MCH
GeoPoints' data within Tele Atlas' digital maps and POI products.
Through the agreement, federal, state and local governments and
commercial enterprises such as insurance and utility companies will
have access to information designed to assist with their map-based
applications.
Additionally, the Company renewed enterprise agreements with the
States of Connecticut and Tennessee, demonstrating continued trust in
Tele Atlas for important public safety applications. The United
States Department of Justice awarded a new three-year agreement to
Tele Atlas which allows all United States law enforcement officials
to use the Company's maps to geographically coordinate their
respective investigations.
Tele Atlas' ability to deliver quality datasets for critical
emergency services applications was demonstrated by the American
Medical Response's expansion of their Tele Atlas agreement to enable
ambulance dispatch services beyond their initial state of California.
Tele Atlas also renewed enterprise license agreements with The United
States Environmental Protection Agency and the United States Army
Corps of Engineers.
The Company also renewed contracts with El Paso Gas and the United
States Department of Health and Human Services in the Americas.
Update on TomTom's Cash Offer for All Outstanding Shares in Tele
Atlas
On October 2, 2007 TomTom launched its cash offer for all outstanding
shares in Tele Atlas. On October 15, 2007, TomTom and Tele Atlas were
advised that the initial 15-day waiting period pursuant to the US
Hart Scott Rodino Antitrust Improvements Act (as amended) for
TomTom's proposed acquisition of Tele Atlas had been terminated early
without the issuance of a request for additional information or
documentary material.
Following referral by the national competition authorities in the
relevant EU member states to the European Commission as announced on
September 24, 2007, parties have notified the transaction to the
European Commission in accordance with the planned timetable.
The acceptance period under the Revised Offer commenced on November
19, 2007. On November 28, 2007, the European Commission decided to
initiate a second phase review allowing the Commission to carry out
an in-depth examination of the transaction and its market impact.
TomTom subsequently extended the acceptance period, which would
initially end on December 18, 2007, until March 31, 2008 (inclusive).
TomTom and Tele Atlas have indicated in their press release of
November 28, 2007 that they estimate that they may have reasonable
insight about the likely outcome of the second phase review towards
the end of the first quarter 2008. On October 15, 2007 TomTom and
Tele Atlas completed the United States anti-trust procedure pursuant
to the Hart Scott Rodino Antitrust Improvements Act (as amended).
Tele Atlas is confident that competition approval will be obtained
from the European Commission.
On December 7, 2007 an extraordinary meeting of shareholders was held
during which, inter alia, the Revised Offer of TomTom was discussed.
The general meeting of shareholders passed all resolutions proposed
to them, including a change in the composition of the Supervisory
Board, subject to the condition precedent that the Revised Offer is
declared unconditional by TomTom. The changes to the Supervisory
Board become effective as of the settlement of the Revised Offer.
TomTom may extend the acceptance period one or more times in the
event that one or more of the offer conditions as set out in the
offer memorandum are not fulfilled. Obtaining anti-trust approval
from the European Commission is one of the offer conditions.
Full Year 2008 Outlook
At the time of this writing, the proposed purchase of Tele Atlas by
TomTom remains under review by the European Commission competition
authorities. We are not able at this time to assess the effect of the
proposed purchase on periods after the closing of the transaction.
The following guidance has been developed on the basis of Tele Atlas
as a standalone independent company.
With this assumption and based on the 2007 results and our current
expectations for 2008, we estimate revenues will grow to between ?375
and ?385 million during 2008 and Adjusted EBITDA will grow to between
?85 and ?95 million.
This outlook includes the impact of the Taiwan, Thailand and South
Africa transactions which were concluded in 2007. All together, these
transactions are expected to increase 2008 revenues by ?5 million and
increase 2008 Adjusted EBITDA by ?1 million
The Company's expenditures for property and equipment for 2008 are
expected to be approximately ?15 million and working capital
requirements for accounts receivables are expected to increase in
proportion to the expected increase in revenues.
This outlook excludes the impact of unforeseen circumstances as well
as the impact of any acquisitions which may be completed in 2008.
Subsequent to 2008, our current expectation is that, barring
unforeseen circumstances, we can grow revenues in excess of 20% on an
annual basis for the next several years and that our Adjusted EBITDA
for each year will increase by approximately 50% of incremental
revenue.
For more information, please contact:
Jan Wirken
Investor Relations Manager, Tele Atlas NV
Phone: + 31 73 640 21 60
jan.wirken@teleatlas.com
Due to the pending transaction with TomTom, Tele Atlas will not host
a conference call relating to the fourth quarter / full year results.
A presentation summarizing the results will be posted on the
company's web site.
Ticker Symbols
ISIN: NL0000233948
Eurolist by Euronext Symbol: TA
Geregelter Markt in Frankfurt (TecDax) Symbol: TA6
WKN: 927101
About Tele Atlas
Tele Atlas delivers the digital maps and dynamic content that power
some of the world's most essential navigation and location-based
services (LBS). The information is the foundation for a wide range of
portable and in-car navigation systems and mobile and Internet map
applications that help users find the people, places, products, and
services they need, wherever they are. The company also works with
business partners who trust its digital map data to deliver critical
applications for emergency, business, fleet, and infrastructure
services. Through a combination of its own products and partnerships,
Tele Atlas offers digital map coverage of more than 200 countries and
territories worldwide. The company was founded in 1984 and today has
approximately 2,500 full-time staff and contract cartographers at
offices in 24 countries and uses a sophisticated network of
professional drivers, mobile mapping vans, and more than 50,000 data
resources to deliver highly accurate and up-to-date digital maps.
Tele Atlas is listed on the Frankfurt Stock Exchange (TA6) and on
Euronext Amsterdam (TA). For more information, visit
www.teleatlas.com.
This press release includes an announcement of Tele Atlas pursuant
to the provisions of section 9b paragraph 1 of the Dutch Securities
Markets Supervision Decree 1995 (Besluit toezicht effectenverkeer
1995) in connection with the recommended public offer by TomTom for
all outstanding shares in the share capital of Tele Atlas (the
"Shares") (the "Offer"). This press release does not constitute an
offer to purchase nor a solicitation of an offer to sell shares. Any
offer will be made only by means of the Offer Memorandum dated
October 2, 2007 ("Offer Memorandum"). Not for release, distribution
or publication, in whole or in part to Australia, Canada or Japan.
The Offer is not being made, and the Shares will not be accepted for
purchase from or on behalf of any Shareholder, in any jurisdiction in
which the making or acceptance thereof would not be in compliance
with the securities or other laws or regulations of such jurisdiction
or would require any registration, approval or filing with any
regulatory authority not expressly contemplated by the terms of this
Offer Memorandum. Persons obtaining the Offer Memorandum are required
to take due note and observe all such restrictions and obtain any
necessary authorizations, approvals or consents. Neither TomTom, nor
Tele Atlas, nor any of their advisers accepts any liability for any
violation by any person of any such restriction. Any person
(including, without limitation, custodians, nominees and trustees)
who would or otherwise intend to forward the Offer Memorandum or any
related document to any jurisdiction outside The Netherlands should
carefully read Section 1 (Restrictions and Important Information) of
the Offer Memorandum before taking any action. The distribution of
the Offer Memorandum in jurisdictions other than The Netherlands may
be restricted by law and therefore persons into whose possession the
Offer Memorandum comes should inform themselves about and observe
such restrictions. Any failure to comply with any such restrictions
may constitute a violation of the law of any such jurisdiction.
Forward Looking Statements
This release contains certain forward-looking statements. These
forward-looking statements are not historical facts but rather are
based on current expectations, estimates and projections about the
industry, the Company's beliefs and its assumptions. Words such as
"anticipates," "expects," "intends," "outlook," "plans," "believes,"
"seeks," "may," "will," "should" and "estimates," and variations of
these words and similar expressions, are intended to identify
forward-looking statements. These statements are not guarantees of
future performance and are subject to risks, uncertainties and other
factors, some of which are beyond the Company's control, are
difficult to predict and could cause actual results to differ
materially from those expressed, implied or forecast in the
forward-looking statements. In addition, the forward-looking events
discussed in this press release might not occur. These risks and
uncertainties include, among others, those set forth herein and under
"Risk Profile" in the Company's 2007 annual report. Readers are
cautioned not to place undue reliance on these forward-looking
statements. Readers should read this press release with the
understanding that actual future results and events may be materially
different from what we currently expect. There are no assurances that
any of the matters about which forward-looking statements are made
will occur. The forward-looking statements included in this press
release reflect Tele Atlas' views and assumptions only as of the date
of this press release. The Company undertakes no obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise.
Tele Atlas and the Tele Atlas logo are registered trademarks and
trade names of Tele Atlas N.V. Other trademarks and trade names are
the property of the owners of those trademarks and trade names.
The press release can be downloaded from the following link:
http://hugin.info/136347/R/1196011/242844.pdf
Copyright © Hugin AS 2008. All rights reserved.TELE ATLAS : reports 4Q07 and FY2007 profit
Share
© GlobeNewswire - 2008
