Credit Suisse Global Services Growth Conference
Judson Green, President & CEOJudson Green, President & CEODave Mullen, Exec. VP & CFODave Mullen, Exec. VP & CFO
March 13, 2007March 13, 2007
1Copyright 2007 NAVTEQ Corp. All rights reserved.
Important Disclosure
This presentation may contain forwardThis presentation may contain forward--looking statements within the meaning of looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statthe Private Securities Litigation Reform Act of 1995. These statements are based ements are based on management's current expectations, assumptions and projectionon management's current expectations, assumptions and projections about s about NAVTEQ at the time that the statements are made. Such statementsNAVTEQ at the time that the statements are made. Such statements may include, may include, but are not limited to, expectations of future operating resultsbut are not limited to, expectations of future operating results. The forward. The forward--looking looking statements are subject to certain risks and uncertainties that mstatements are subject to certain risks and uncertainties that may cause the actual ay cause the actual results to differ materially from our past performance and our cresults to differ materially from our past performance and our current expectations urrent expectations and projections. For a discussion of these risks and factors thand projections. For a discussion of these risks and factors that may affect future at may affect future performance, please review the reports filed by NAVTEQ with the performance, please review the reports filed by NAVTEQ with the SEC; in SEC; in particular, note the risk factors set forth under "Item 1A. Riskparticular, note the risk factors set forth under "Item 1A. Risk Factors" in the Factors" in the company's Annual Report on Form 10company's Annual Report on Form 10--K for the fiscal year ended December 31, K for the fiscal year ended December 31, 2006. NAVTEQ disclaims any obligation to update or revise any f2006. NAVTEQ disclaims any obligation to update or revise any forwardorward--looking looking statements, except as required by law.statements, except as required by law.
2Copyright 2007 NAVTEQ Corp. All rights reserved.
2006 AccomplishmentsGrew revenue organically by 23% vs. 2005 (excluding distributionGrew revenue organically by 23% vs. 2005 (excluding distribution))
Maintained our leadership share of the global digital map busineMaintained our leadership share of the global digital map business ss
Improved the quality, content and coverage of our mapImproved the quality, content and coverage of our map
Introduced a critical new technology platform for map building Introduced a critical new technology platform for map building
Announced two acquisitions that enhance our offeringAnnounced two acquisitions that enhance our offering
3Copyright 2007 NAVTEQ Corp. All rights reserved.
In-Dash Navigation — Vehicle Models Offering Navigation
249 242 235
82% 82%85%
0
50
100
150
200
250
300
2005 2006 2007E0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
165194
225
51%
68%
47%
0
50
100
150
200
250
300
2005 2006 2007E0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
North America adoption surges in 2007North America adoption surges in 2007……Western Europe adoption steady at 80%+Western Europe adoption steady at 80%+……
Note: Models shown for illustration purposes. Adoption percentages based on total car sales volume in each region, not number of models
4Copyright 2007 NAVTEQ Corp. All rights reserved.
Vehicle Segmentation
Low-end
Segment Description Examples
High-end E2 High Luxury Audi A8, Lexus LS-Series, Mercedes S-Class
E1 Large & Luxury Lexus GS, BMW 5-Series, Acura TL
D2 Executive Jaguar X-Type, Saab 9-3, Mercedes C-Class
D1 Upper Medium Honda Accord, VW Passat, Nissan Altima
C2 Medium VW Jetta, Toyota Prius, Hyundai Elantra
C1 Lower Medium Honda Civic, Ford Focus, Mazda 3, Toyota Corolla
B Super Mini Mini, Ford Fiesta, Kia Rio
A Utility/ City Honda Life, Suzuki Alto, Renault Twingo
MPV Multiple PurposeVehicle
Toyota Sienna, Honda Odyssey, Nissan Quest
SUV Sport Utility Vehicle Range Rover, Ford Explorer, Toyota RAV4
5Copyright 2007 NAVTEQ Corp. All rights reserved.
In-Dash Navigation — Take Rate by Vehicle Segment (EU)
Source: NAVTEQ Analysis 2007
European OEM Take Rates(% of vehicles sold with nav when offered)
10
40
50
60
70
80
90100%
0
5
15
20
25
30
1998 1999 2000 2001 2002 2003 2004 2005 2006
C 9%
96%
65%E1
E2
D 27%
AB 2%
6Copyright 2007 NAVTEQ Corp. All rights reserved.
In-Dash — Industry Map Units & Penetration RatesWESTERN EUROPE WESTERN EUROPE –– 20062006
Manufacturer Adoption:Manufacturer Adoption: 82%82%Industry Penetration:Industry Penetration: 14%14%
Note: Includes initial units bundled with new OEM factory installed and aftermarket systems. “Penetration” defined as % of vehicles sold equipped with navigation.Source: NAVTEQ estimates and Global Insight car sales data.
NORTH AMERICA NORTH AMERICA –– 20062006
Manufacturer Adoption:Manufacturer Adoption: 51%51%Industry Penetration:Industry Penetration: 8%8%
1.11.2
1.5
1.92.1 2.26.3%
7.7%
9.5%
11.7%
13.1%13.6%
2001 2002 2003 2004 2005 2006
0.3 0.40.6
0.9
1.2
1.5
1.5%2.0%
3.3%
4.9%
6.7%
8.4%
2001 2002 2003 2004 2005 2006
(Units in millions)
7Copyright 2007 NAVTEQ Corp. All rights reserved.
Source: Global Insight Data and NAVTEQ Internal Analysis
Ultra Low Cost In-Dash Systems Are EmergingUltra Low Cost InUltra Low Cost In--Dash systems designed to address the mass Dash systems designed to address the mass market are now available in Europe market are now available in Europe
European ULCID Estimates (Units)
2007E 2008E
€499
Just Announced!
With NAVTEQ Maps and Distribution Services
8Copyright 2007 NAVTEQ Corp. All rights reserved.
Status Update: BMW / VW / DaimlerChryslerNAVTEQ was selected as BMWNAVTEQ was selected as BMW’’s Preferred Supplier for its next generation s Preferred Supplier for its next generation navigation platformnavigation platform−− BMWBMW’’s decision to award business to both NAVTEQ and our competitor ws decision to award business to both NAVTEQ and our competitor was driven by as driven by
the automakerthe automaker’’s dual source supplier policys dual source supplier policy−− NAVTEQ will retain strong global share leadership at BMWNAVTEQ will retain strong global share leadership at BMW
NAVTEQ was selected to power NAVTEQ was selected to power VWVW’’ss midline platforms beginning later this yearmidline platforms beginning later this year−− We expect our VW brand share in Europe to be >50% by 2008We expect our VW brand share in Europe to be >50% by 2008− The midline is a global platform, including China, where our JV, NAV2, will launch
with VW in 4Q07
NAVTEQ is the Preferred Supplier of map data at DaimlerChryslerNAVTEQ is the Preferred Supplier of map data at DaimlerChrysler−− DaimlerDaimler’’s decision to award a future generation platform to our competits decision to award a future generation platform to our competitor was also or was also
driven by a dual supplier strategydriven by a dual supplier strategy−− NAVTEQ expects to continue to supply the majority of DaimlerNAVTEQ expects to continue to supply the majority of Daimler’’s global business s global business
going forwardgoing forward
9Copyright 2007 NAVTEQ Corp. All rights reserved.
0
1,000
2,000
3,000
4,000
5,000
2001 2002 2003 2004 2005 2006
Western EuropeNorth America
Portable Devices — NAVTEQ Map UnitsNAVTEQ map unit sales
for mobile navigation devices(in thousands)
Over 300 million new devices Over 300 million new devices are sold each year in our are sold each year in our primary marketsprimary markets−− Portable Navigation Devices Portable Navigation Devices −− PDAsPDAs−− Mobile phones & smartphonesMobile phones & smartphones
Since 2001, NAVTEQ map units Since 2001, NAVTEQ map units for mobile devices have grown for mobile devices have grown at a CAGR of nearly 200%at a CAGR of nearly 200%
North America had a breakout North America had a breakout year in 2006, with map units up year in 2006, with map units up over 200%over 200%
Source: NAVTEQ internal analysis
10Copyright 2007 NAVTEQ Corp. All rights reserved.
Portable Devices — Q4 Map Unit Growth
4Q06 vs. 4Q06 vs. 4Q054Q05
+42%+42%TOTAL NVT PORTABLE TOTAL NVT PORTABLE DEVICE MAP UNITSDEVICE MAP UNITS
––73%73%PDA & other PDA & other (non(non--integrated)integrated)
+100%+100%PND PND (integrated)(integrated)
NAVTEQ sells maps for a variety of portable devices, NOT just PNDs.
Source: NAVTEQ internal analysis.
11Copyright 2007 NAVTEQ Corp. All rights reserved.
Nokia Driving Adoption of Wireless Solutions in EU
LD-3W: Bluetooth GPS + Navigation BundleBundled ROUTE 66 full on board turn-by-turnnavigation and 1 country of map coverage
CK-20W: Navigation-Enabled Hands-Free KitLD-2 wired GPS receiver enhancement to CK-20WBundles ROUTE 66 full on board turn-by-turn navigation and 1 country of map coverage
PND: Dedicated Navigation DeviceIncludes ROUTE 66 full turn-by-turn navigation and 1 country of map coverage
Vega: GPS-Integrated Series 60 TerminalMobile Phone handsetBundled with full onboard turn-by-turn navigation and 1 country of map coverageWill launch in 60 countries in EU and APAC
Aalto: GPS-Integrated Series 60 TerminalMultimedia handset (N95)Bundled with hybrid map and routes capabilities Regional map coverageWill be launched worldwideUpgrade to navigation available to consumer at their cost
Mobile Search: Visualize Search ResultsOff board access to Yellow Page informationAvailable in multiple countries in EU and APACNow 20 countries in EU and APAC
Map in Every Phone “Smart2Go”Hybrid application offering address /POI search and routingGeo coverage available in as many countries as possible worldwideUpgrade to navigation available to consumer at their cost
Top Vendors by Units Shipped
Source: Canalys estimates, Smart Mobile Device Analysis, January 2007
Units (000)
01,0002,0003,0004,0005,0006,0007,000
Nokia SonyEricsson
HTC RIM HP Palm O2 MioTechnology
Q4 2005Q4 2006
Nokia represents the vast majority of smartphone
handset shipments
NAVTEQ Is Well Established with Nokia
Competitor
Competitor
12Copyright 2007 NAVTEQ Corp. All rights reserved.
Offboard Wireless Solutions in the U.S.
050
100150200250300350400450500
2005 2006
Aggregate Paid Subscribers to Major Offboard Services in U.S.
(December 2006)
Figures rounded. Source: NAVTEQ internal analysis
Traffic.com
14Copyright 2007 NAVTEQ Corp. All rights reserved.
Traffic.com Acquisition Benefits
Provides access to proprietary content that consumers find valuaProvides access to proprietary content that consumers find valuableble
Enhances NAVTEQ TrafficEnhances NAVTEQ Traffic’’s revenue growth, share of business, and profitabilitys revenue growth, share of business, and profitability
Provides stateProvides state--ofof--the art traffic data processing capabilitythe art traffic data processing capability
Brings consumerBrings consumer--facing web presencefacing web presence
Offers expertise in advertising sponsorship for the commercializOffers expertise in advertising sponsorship for the commercialization of contentation of content
+
15Copyright 2007 NAVTEQ Corp. All rights reserved.
Sensor Data Is Critical To A Robust Traffic Solution
24 hour traffic feedSensors
Probe (Cellular)
Probe (Vehicle)
Rush hour traffic feed
Accuracy of data(not accurate enough to isolate
roads; can’t discern pedestrians, parked cars, etc.)
(not enough vehicles)
(infrequent “pings”)
Privacy issues
Breadth of road coverage
(off-hour transit)
(Traffic isn’t an issue on every road)
Capital requirements
Multiple sources of data are needed to create the most compelling traffic solutions. Today, fixed sensors are essential to meet quality expectations
16Copyright 2007 NAVTEQ Corp. All rights reserved.
Fundamentals of the Advertising Business ModelThe advertising business model has two basic steps:The advertising business model has two basic steps:
BuildAdvertisingInventory
SellAdvertisingInventory
How?Affiliations: Barter traffic information for 10-sec spots on TV and radio stations Web impressions: Drive traffic to consumer website and create opportunity to expose these visitors to advertising messages (e.g., www.traffic.com)Ad-supported services: Provide mobile services that are supported by advertising messages
How?Media sales: Sell media to advertisers directly or indirectly (i.e. via advertising agencies or media buyers); typically for established inventory in large quantitiesSponsorships: Find an advertising partner to support a specific ad-supported program or service; typically for new inventory in smaller quantities
17Copyright 2007 NAVTEQ Corp. All rights reserved.
Traffic – Key Revenue Metrics
Radio & TV Affiliations Interactive Data Services
Number of 10-second spots
Sellout Rate
Average Rate
Unique users
Visits
Refers to the sale of 10-second “spots”around traffic reports on radio and TV
Refers to the sale of traffic content to Internet portals and other websites to drive
traffic
Subscribers
Activated Devices
Transactions
Refers to the license of traffic data for use in navigation software applications, such as in-
dash navigation and PNDs
Registered users
Page views
18Copyright 2007 NAVTEQ Corp. All rights reserved.
Traffic.com – Interactive Metrics (2006)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jan-06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-06
Uni
ques
and
Vis
its (M
)
0
2
4
6
8
10
12
Page
vie
ws
(Ms)
Unique users Visits Page views
0
50
100
150
200
250
300
350
400
Jan-06 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec-06
Reg
iste
red
Use
rs (K
)
Registered Users
19Copyright 2007 NAVTEQ Corp. All rights reserved.
2007 Should Be Another Exciting YearSteady increase in penetration of inSteady increase in penetration of in--dash systemsdash systems
Portable devices continuing their exciting growth trendPortable devices continuing their exciting growth trend
Nokia driving first onboard maps and navigation for phonesNokia driving first onboard maps and navigation for phones
Wireless carriers, led by VZW, becoming more active in LBSWireless carriers, led by VZW, becoming more active in LBS
Integration of Traffic.com adding important advertising expertisIntegration of Traffic.com adding important advertising expertisee
Thank you!
Contact:Tom FoxTom Fox
Director, Investor RelationsDirector, Investor Relations(312) 894(312) 894--70447044
[email protected]@navteq.com
