Transcript Dia 1 - Tele2 Nederland

IPO proposal 17 May 2005
Paul B.
Agenda
Intro
 Some history
 Products
 The market
 Some financials
 The IPO
 Shareholders
 Proposal
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Intro I
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IPO: Initial
Public Offering
Reasons for
IPO:
* Refinancing
* Cash for
management
* Image
* Options /
Stocks bonusses
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Disadvantages:
* Costs emission
* Info becomes
public
* Loosing power
* Agency costs
Intro II
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Investmentbank:
* set a “good” price
* make prospectus
* define stock markets
* define number of stocks
assigned if over subscribed
* roadshows
* bookbuilding
Intro III
In general profits can be made on short term
* All shares must be sold
* Succesfull IPO > reputation
* Low initial price > spread over investors
> liquidity
 Longer term: underperformance due to:
* “window of opportunity”
* too positive at time of IPO
* demand was high due to roadshows
plus media exposure
SUBSCRIBE, AND SELL AFTER A SHORT TIME
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Some history of TomTom
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Founded in 1991
4 people; 3 still in management
’91-’96: business-to-business applications for
mobile devices:
bar-code reading, meter reading and order-entry
systems
’94: consumer software products for PDAs
> ’98 marketleader
’99: wireless data transmission technology and
location-based server technology
’01: fully-functional navigation systems for
in-vehicle use
June ’02: 1st PDA navigation product “TomTOm
Navigator 1”; co-operation with HP, MSFT, Palm
End ’02: start of production individual device
May ’04: first integrated navigation device “TomTom
GO”; other models followed
Just some fun…  ;-)
The market
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Satellite navigation products:
* factory-installed navigation systems
* dealer-fitted navigation
systems
* personal navigation products
Europe: 2,6 mln units in 2004;
expected 2007: 4,9 mln units.
Strong demand: “People do not like to get lost”
Large, under-penetrated market:
US 221 mln cars; Europe 198.
Only 5,4% / 14,8% of new cars sold have a
system.
Rapid technology advances.
Affordability, Availability, Attractiveness
Distribution
Some simple financials
Net profit (EUR million)
Revenue (EUR million )
27,7
30
250
192,4
200
25
20
150
13,8
15
100
50
66,2
39,1
10
5
7,9
6,2
1,4
0
0
2002
2003
2004
2002
Q1 2005
Net profit margin (% )
2003
2004
Q1 2005
Net cash flow operating activities (EUR
million)
25%
21%
20%
15%
17%
16%
14%
10%
5%
0%
2002
2003
2004
Q1 2005
40
35
30
25
20
15
10
5
0
36,8
15,6
7,6
1,1
2002
2003
2004
Q1 2005
The IPO I
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Subscription period:
Monday 16, 9.00 – Thursday 26, 16.00
Price range: EUR 14.00 – 18.50
Trading starts Friday 27, symbol “TOM2”
Co-ordinators / Bookrunners:
* Goldman Sachs International
* Lehman Brothers
Co-Lead managers:
* Fortis Bank
* Kempen & Co
* Rabo Securities
The IPO II
Total max. EUR 387,5 mln exist.
max. EUR 132,1 mln new
 Lock-up period:
* Company 180 days
* Management 360 days
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The company has NO DEBT
Shareholders
Proposal
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TomTom IPO
ISIN: NL 0000387058
 Code 778328
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EUR 14 – 18,50 per share
 50 shares
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Maximum for a few weeks