Frost & Sullivan Recognises TomTom for Its Outstanding Achievements in the Automotive Navigation Market

By Frost Sullivan, PRNE
Wednesday, April 21, 2010

LONDON, April 22, 2010 - Based on its recent analysis of the automotive navigation market, Frost &
Sullivan recognises TomTom N.V. (TomTom) with the "2010 European Automotive
Navigation Company of The Year Award." Despite tough market conditions,
TomTom has managed to perform consistently and is the market leader within
Europe for portable navigation devices (PNDs). The company enjoys a
significant 45 per cent market share and has retained its 24 per cent share
in the North American market. The strong brand value associated with its
quality products is the reason for this success. Despite the recession, the
company has been profitable and continues to expand its geographic footprint
while improving its position in the market.

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While PNDs dominate the navigation market, the declining hardware prices
and fierce competition among PND manufacturers have resulted in shrinking
margins since 2007. However, TomTom has been able to find new revenue streams
by constantly improving its PNDs. In Oct 2009, TomTom introduced an entry
level PND priced at 129 euro. The company released connected PNDs, which
allow dynamic information transfer for up-to-date traffic information among
other features. These services are collectively called TomTom Live Services.
At the end of 2009, 25 per cent of connected PND customers had extended their
service contracts after the trial period.

"It is essential to constantly develop innovative products and solutions
to address the changing market as well as customer needs in such a dynamic
market," says Frost & Sullivan Research Analyst Vishnu Muralidharan. "TomTom
formulated a growth strategy to penetrate the automotive embedded market that
remained expensive, complicated, limited to luxury cars and featured content
and maps that were outdated before the car ever left the dealer."

In 2009, TomTom, along with its partner Renault, delivered the in-dash
navigation Carminat TomTom solution - a breakthrough OEM navigation device
that is easy to use, looks great built into the dashboard, and meets all the
automotive qualities and safety requirements. This foray enables TomTom to
compete with factory-fit navigation systems suppliers, thereby elevating its
position from being an accessory at dealerships to being able to leverage its
navigation and supply chain expertise.

The company announced an update to Carminat TomTom solution in Sep. 2009.
This is a significant move because it addresses rapid obsolescence, the most
important concern within the automotive industry. TomTom's solution provides
an easy way to upgrade features with the same set of hardware in the car.

The company has also achieved US$124 million in cost savings target by
optimising its marketing and supply-chain efforts.

Further, TomTom has developed a dynamic location referencing technology
as an open standard for the navigation, mapping and intelligent transport
industry (ITS), called OpenLR(TM). OpenLR(TM) has been designed for traffic
information systems and dynamic route guidance, and is available as an
open-source technology. It easily gets adapted to the requirements of system
integrators, and the technical community can contribute with their ideas to
improve it. Having the map database in-house is a huge advantage for TomTom
that provides the company with opportunities to address personal and
automotive markets and withstand price pressure from the market.

TomTom, already present in the mobile market, decided to launch specific
navigation applications for various operating systems and target the growing
iPhone market. The company sold 180,000 apps, from August - December 2009, of
its 100 euro navigation application in the first six months of its release in
2009.

"Competitors have also announced similar strategies and are targeting
various segments such as automotive embedded navigation, mobile phone
navigation and continuous improvement of PNDs," notes Muralidharan. "The
difference lies in the level of effort undertaken by TomTom to ensure that
all the three categories have the best products by translating its highly
successful PND knowledge base into the automotive and mobile markets."

TomTom also took an auxiliary approached to the automotive navigation
market by introducing a new portable embedded navigation, one that was fixed
in the car and could be used as a PND at the same time. This solution is
available for Toyota cars and in 2009, a second-generation product was
announced. The company also implemented an integrated infotainment system
with a portable navigation device co-developed with Fiat Group Automobiles in
2009, called the Blue&Me TomTom. Overall, TomTom is expanding its footprint
across various sectors, using its experience in the PND market to deliver the
products that the customers want, through various channels.

"The fact that Toyota has once again signed up with TomTom is an
important validation of TomTom's ability to bring the best quality navigation
and services to the car, small and medium-sized cars in particular," says
Muralidharan. "Whether it is a semi-embedded or fully embedded solution, the
company has ensured that the customers receive all of TomTom's exclusive
services."

TomTom has also won several awards for its products. The company is
considered one among the reputed companies known to deliver best-in-class
services to its customers and satisfy them. Overall, TomTom has exhibited
strong strategies, robust implementation, high innovation and strong value to
customers, making it the worthy recipient of the 2010 Europe Frost & Sullivan
Company of the Year Award in the automotive navigation market.

Each year, Frost & Sullivan presents this award to the company that has
demonstrated unparalleled excellence within its industry. The award is based
on the company's business development, competitive strategy, customer
satisfaction and leadership. The recipient is perceived to exhibit
outstanding management and consistent growth. The company must offer high
quality products and/or services and have positive social and economic impact
on local and national communities. The company should have proven expertise
in taking advantage of market changes by capturing and solidifying market
presence, or through execution of innovative strategies within the existing
competitive landscape.

Frost & Sullivan Best Practices Awards recognise companies in a variety
of regional and global markets for demonstrating outstanding achievement and
superior performance in areas such as leadership, technological innovation,
customer service, and strategic product development. Industry analysts
compare market participants and measure performance through in-depth
interviews, analysis and extensive secondary research in order to identify
best practices in the industry.

About TomTom N.V.

TomTom N.V. (AEX: TOM2) is the world's leading provider of location and
navigation solutions. Headquartered in the Netherlands it has over 3,000
employees worldwide. More than 40 million people use its solutions every day,
in the form of dedicated portable navigation devices (PNDs), in-dash car
systems or tracking and tracing solutions for fleet management. In addition,
hundreds of millions of people use TomTom's digital maps on the internet or
mobile phones.

In 2009, TomTom reported 1.5 euro billion in revenues and a 340 euro
million net cash flow from operating activities. More information about
TomTom can be found at www.TomTom.com.

About Frost & Sullivan

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    Frost & Sullivan Contact Information
    Jasmine Malone - Promotions Coordinator
    Phone: +44-207-915-7869
    E-Mail:jasmine.malone@frost.com

Jasmine Malone - Promotions Coordinator of Frost & Sullivan, +44-207-915-7869, jasmine.malone at frost.com

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