Good day, ladies and gentlemen. Welcome to TomTom's fourth quarter and full year 2020 earnings conference call. At this time, all participants are in a listen-only mode. We will be facilitating a question and answer session towards the end of today's prepared remarks, at which time, if you would like to ask a question, you may do so by pressing star one on your telephone. If at any time during the call you require audio assistance, feel free to press star zero and the conference coordinator will be happy to assist you. Please note that this conference is being recorded today. I will now turn the call over to your host for today's conference, Megan Daniel, investor relations officer. You may begin. Thank you, operator. Good afternoon, welcome to our conference call, during which we will discuss our operational and financial highlights for the fourth quarter and full year 2020. With me today are Harold Goddijn, our CEO, and Taco Titulaer, our CFO. We will start today's call with Harold, who will discuss the key operational developments, followed by a more detailed look at the financial results and outlook from Taco. We will then take your questions. As usual, I'd like to point out that safe harbor applies. With that, Harold, I would like to hand it over to you. Yeah, thank you. Thank you very much, Megan, and welcome everybody to our call. Of course, the past year was a challenging one, and COVID-19 continues to impact people's lives and has disrupted the global economy. Dealing with the pandemic's consequences will remain a challenge for this year. Our enterprise business showed resilience, and our automotive operational revenue recovered since the lows experienced in the second quarter. We maintained an automotive backlog of EUR 1.8 billion. Our 2020 order intake was strong, and under normal circumstances, backlog would have grown. However, our automotive customers have revised downward their forecasts for 2021 and 2022, which offset the strong order intake. Today, we announced an extension of our long-standing relationship with Precisely, formerly known as Pitney Bowes. By providing our map information and traffic data, we will help Precisely enrich their location intelligence products. Precisely will also share some of their data and observed changes in the database back to TomTom in the context of our map editing partnership, a program we intend to roll out to more partners. We further expanded our position in fleet and logistics by closing a new long-term agreement for our maps APIs to Targa Telematics, and Targa will use the technology to help optimizing operational efficiency for their customers. Mitsubishi Motors has chosen our full stack navigation to power the new Eclipse Cross entertainment system. Furthermore, in 2022, a new regulation will come into force that requires car makers to integrate new functions, including intelligent speed assistance. In anticipation, we have significantly improved our data sets and developed a new delivery mechanism to increase reliability, reduce latency for those critical safety systems. Our traffic information revealed insights into the spread of and recovery from COVID-19. Journalists, researchers, policy advisors, and governments made extensive use of our traffic data, which we made available for this purpose free of charge. We received hundreds of requests for data, and I'm pleased we can support our communities in understanding the impact of the pandemic and the effects of the implemented policies. We have, of course, not lost sight of our strategic priorities and longer-term objectives. We've kept investment levels up for our mapping and application platforms. I want to briefly discuss progress we've made and the plans we have for 2021 in the next slide. Our goal is to significantly improve our location platform, largely through automated processes. Progress has been made in 2020, and we are solidified in our resolve to make significant improvements to our data platform along the axis of geographical coverage, attribution, quality, and freshness. The aim is to make our data suitable for a much broader range of applications for more industries and in more geographical territories. In parallel, we are significantly improving the quality and completeness of our online application platform to make it easier for customers to create value, creating applications on top of the database. TomTom offers an exciting workplace for talent. Our culture is much appreciated, and we deploy a broad range of cutting-edge technologies to solve hard problems. In 2020, we were successful in hiring top talent from across the industry. We will make sure that we continue to coach and encourage our people to achieve great things by empowering them and providing them with growth and learning opportunities. It's thanks to our people that we could act quickly and decisively to deal with the impact of the pandemic and avoid negative impact on customer commitments. This concludes my part of the presentation, I'm handing over to Taco. Thank you, Harold. I will make some comments on the financials and outlook. We will then go to the Q&A. In the fourth quarter, we reported group revenue EUR 125 million. That's 20% lower than the same quarter last year. In the fourth quarter, location technology reported revenue of EUR 101 million, slightly outperforming our expectations, but this was offset by weaker consumer revenue. Let me go through the revenue business by business. Automotive IFRS revenue was EUR 60 million, a decrease of 14% compared with the same quarter last year. Automotive operational revenue was EUR 90 million in the quarter, a year-on-year decrease of 23%. Sequentially, we achieved operational revenue growth of more than 50%. The sequential increase reflects the continued recovery of car production volumes during 2020, in combination with NRE invoicing. Enterprise revenue increased marginally from the same quarter last year, as revenue from new contracts was offset by unfavorable foreign exchange rate movement, as around 80% of our enterprise contracts are invoiced in US dollars. In the fourth quarter, consumer revenue decreased by 48% to EUR 24 million, as retail closures and decreased demand following widespread lockdowns across Europe impacted revenue. In the fourth quarter, gross margin was 82%, benefiting from lower hardware revenue in our sales mix. Operating expenses were EUR 181 million, a decrease of EUR 20 million compared with the same quarter last year. Please note that our research and development expenses included a restructuring expense of EUR 7 million in 2019. Excluding this, the year-on-year decrease is mainly the effect of discretionary cost control measures. The free cash flow for the quarter was an inflow of EUR 34 million, in line with our expectations provided last quarter. The year-on-year decrease in free cash flow reflects lower operational revenue in both automotive and consumer. At the end of 2020, we reported a net cash position of EUR 372 million. We will use EUR 35 million during the course of this year for a share buyback to cover our long-term incentive plans. On slide five, as Harold mentioned earlier, we reported an automotive backlog of EUR 1.8 billion, stable when compared to last year. Our automotive backlog is the sum of total expected IFRS revenue from all awarded deals. The backlog decreases when revenue is recognized during the year. It increases when we win new deals, it can either increase or decrease when our customers revise their forecast of car production volumes. While we are pleased with the volume and quality of the deal activity this year, the positive impact of deals in 2020 was offset by our customers' downwards revision of near-term car production volumes on existing deals. To provide more transparency on our automotive revenue expectations, we provided an indication of the phasing of how this backlog will materialize over the coming years. For 2021, most of our recognized revenue will be the outcome of our backlog. In later years, it will be based on a combination of new deals and backlog. We'll give an update of the automotive backlog on an annual basis during our full year results. This brings me to the next slide, our outlook for 2021. For 2021, we expect group revenue to be between EUR 520 million and EUR 570 million, and location technology revenue between EUR 420 million and EUR 450 million. This is based on our expectation that car production volumes in 2021 will not return to the levels that we were seeing in 2019. Our OPEX will significantly decline year-over-year from EUR 711 million in 2020 to around EUR 520 million in 2021. This decline is driven by the decline of total D&A from EUR 285 million in 2020 to between EUR 70 million and EUR 75 million. For 2021, R&D is expected to grow to around EUR 330 million, a 5% growth year-over-year, which I will further discuss on the next slide. To conclude, we expect to generate free cash flow of around 6% of group revenue. Slide seven. As said, in 2021, we plan to increase our R&D cash spend. On the right-hand side of this slide, we indicate a trend for components of our R&D cash spend. Our overall spending on geographical data expected to come down as automation levels increase. This will be the result of extra investments in our engineering in that area. We will increase our cash spend on our application layer, enabling faster software update cycles, ease of integration, and flexibility. In the last slide of this presentation, I want to discuss our mid-term outlook. We expect to grow our location technology revenue to around EUR 550 million in 2023. Growth is expected to come from new opportunities in enterprise, as well as further growth in automotive. Following increased take rates. We have a target for free cash flow as a percentage of the group revenue of around 10%. Operator, we would now like to start the Q&A session. I can see the first question comes from the line of François Duvernay. Please ask your question. Hi. Thank you very much. I have a couple. The first one is on your backlog that you mentioned to be a EUR 1.8 billion. With the reason of order intake, that seems positive, but it has been offset by the lower forecast from your customers going forward. Can you talk about your market share trends in 2020? Where do you see it moving, and how much do you think you have in terms of market share in 2020 would be very helpful. About this lower forecast, if you look at the industry, automotive seems to revise up their forecast quite aggressively, which is leading to shortage in semiconductors, most likely. The discussion we have with semiconductors is the automotive are changing their mind a bit late. My question is, did you factor that in your backlog, or is it something that you will maybe see a bit later? That's the first question. I have others, if I may, after. Yeah, François. Thank you. First question, market share movement. We believe it will go up this year, mostly because the switching over during 2021 from one of our North American customers, from a competitor to us, to our technology. That will take place in 2021, 2022 with the introduction of new models. Otherwise, there's no significant changes in market shares that we can see in 2021. I think the semiconductor thing, it's a tricky one. I think the shortage there is mostly a result of other industry players upping their demand as a result of COVID-19. I think the automotive industry takes about probably something like 10% of total silicon. 90% goes elsewhere, including in mobile phones and laptops and what-not. What we have seen, of course, in 2020 is that production volumes for those applications have gone up and demand has gone up, and supply is not infinite. There's limited supply. I think you see the effect of those two things. Now, you could also argue that car makers got it wrong in forecasting their demand. Difficult to judge. The only thing that we can say is that during 2020, we have seen quite a bit of fluctuation in the outlook of car makers for the near term. For the rest of 2020, for 2021. I think they have recovered some of their optimism recently, to reflect a transition to a more normal and stable run rate where we have increased level of visibility and predictability. At the same time, I think there's still quite a bit of nervousness in the automotive industry around what will actually happen in 2021 and then 2022. I think overall, the consensus is that by 2022, when I listen to what I hear from our customers, is by 2022, we will start to go more in a steady state and we will approach the volumes that we have seen in 2019. Overall, if you look at car makers' performance, they have overperformed, I think, or some of them, not all of them, but some of the car makers have overperformed in China, which has softened some of the negative effects of COVID-19. In the context of looking at TomTom, it's useful to realize that we are not playing for the domestic China market. We have not been able to benefit from that recovery, if you like. In terms of, because last year has been quite unique in many senses. If we look at 2021, how do you see from an order behavior point of view? Do you see it's going to be as well a very hot year in terms of order book order intake or it's difficult to see? Yeah. Difficult to say at this stage, François. I think there are good opportunities for us to land some significant deals. It's too early to say how that will all pan out, of course. Okay. I understand. My second question was on the PSA-FCA merger. It seems to be according to your public statements and your report that both of them are customers of yours. I just wanted to ask you what are the implication, do you see the risk and opportunities from this merger, for TomTom? I think we have excellent relationship with PSA that goes back a number of years now. We're just moving in FCA in a meaningful way. We start shipping in 2020, for selected FCA models, but they are standardizing on TomTom technology in the future. We're very excited about the progress we've made and how the relationship with FCA is evolving. We're very happy with how the relationship is with PSA. That merger is a complex thing. There's a lot of work going on behind the scenes. We are party to some of those discussions. Don't expect anything significant this year. We fully anticipate that in the new rounds of RFQs, that we will see consolidated demand from the Stellantis group. We feel we're very well positioned to keep supporting Stellantis in that context. Okay. That's very clear. Thank you, Harold. The other question I had is on the EV that seems to be as well quite growing fast, not only in China, where you are not present, but also in Europe, which obviously it's more important for you guys. I was just wondering, if we compare an EV car versus a premium combustion engine, where your content is, if you compare the two. Is it a similar content or you see, because I know you are doing some products for EV only, so do you see a meaningful average selling price, higher that for an EV versus ICE or not really? No. Well, I think there are opportunities in EV for extra services and stuff. I think what EV is doing, and that's more important to us, is a real watershed in terms of deploy technology. What we see with EV vehicles, they are all using location technology for range and for charging and whatnot. They are all connected, so there are more opportunities to deliver higher end user experience. That means online routing, online maps, which is really bringing us at a level now with the best you can get on a mobile phone. We're closing that mobile phone car gap significantly now, and hence also the significant investment in online technology and we're on track there. That's good. I like it. Of course, the significance is that 100% of electrical vehicles will use our technology or at least in the customer base, where for combustion engines, that's still a relatively low percentage. It doesn't exceed 40%. It's probably somewhere at 35% now. For EV, it will go to 100%. What we have seen and what we read every day is more and more momentum behind the EV movement. I think Volkswagen really pushed the boat out with the ID.3, the ID.4 to follow now. We see FCA coming out, we see PSA coming out with volume products that are offering consumers now a much broader choice. It's becoming mainstream really rapidly. I think it has taken a long time, this whole EV thing to become mainstream. Maybe in the beginning we have been a bit too optimistic about that transition. I think we could be underestimating the speed by which things are happening with respect to electrical vehicles. Mm-hmm. Sorry, go ahead. Sorry. Yeah. I think the train has left the station. The end user experience is great. Prices are still a bit high. I think you can clearly see now and more and more people can see that the future is going to be electric. There is no doubt in my mind that this is an irreversible trend which will continue to accelerate. Okay. If I understand correctly, is it fair to say that as EV accelerates, your take-up will accelerate basically more rapidly? Is it a fair comment to say? I think that's fair. Bear in mind that we're coming from a low base. When I'm very enthusiastic about what is ahead of us, at the same time, you need to realize that we're coming from a very low base as of today. It will catch on, it will go and it will grow quickly. I think I bought one myself now, of course, I bought a Fiat 500 with our own technology in there, and it is a fantastic user experience, both in terms of the electricity, the powertrain, the software, the whole infotainment system, is really a big step up. I'm not claiming we are at Tesla level here, but we're getting close. The gap is closing quickly now. Okay. In terms of end user satisfaction and closing the gap with what's happening on the mobile phone. There's a lot to be optimistic about in that sense. Okay. That's very clear, Harold. Maybe last one, and I will go back to the queue, for my peers. If you look at your 2023 targets, for location technology, can you give us a bit more details around the drivers of that? If you look at the past, it's true that it has been very volatile, very difficult to forecast, because of the OEMs, their own forecast, and we saw a couple of adjustments in the past around long-term assumptions. How can you give us confidence about this number basically for 2023? Would be very helpful to understand what you backed in for this and how you get there. If you look at that 2023 number, there is a fair chunk of automotive revenue that is already in the books. There is some short-term nervousness around COVID that will go away, and that will be reflected as well in the solidity of that outlook. We also have given quite a broad range, because of some uncertainties in the short term. I don't know about you, but I think that after the summer, it will be strange if we are not in more predictable territory. I don't think that means that we have globally processed all the pain and the damage, but at least we will get back to a normal situation where the economy can start to adjust to new reality. People can start traveling again. We get into a more predictable future. I think that part of the forecast, I am pretty confident that we will get there or how we think. I think on the enterprise things are a little bit more difficult to predict. As I alluded, in my introduction remarks, we are building a much more powerful platform, and I think that's needed. If you look at our history, we are very much in navigation, and that's great because it's the most difficult use case that there is, but there's a whole other world out there for other location services. I think by 2023, 2022, our platform will be much more capable in dealing with those use cases as well. It's a very active program underway to automate the hell out of map making, make much more efficient use of existing resources, that will result in a more powerful platform, broader market opportunities, both geographically but also along the axis of type of applications we can deploy. There's enough to play with for us to start growing also that enterprise revenue by that time. I'm confident that we'll get there. Difficult, especially in tech, to predict on tech side two or three years out. I'm quietly confident that new opportunities will open up. Great. Thank you, Harold. I will go back to queue. Thank you. The next question comes from the line of Marc Hesselink from ING. Please ask your question. Your line is open. Sorry, was that me? Can you hear me? Yeah, we can. Go ahead. Hi. Sorry. It's Marc Hesselink, ING. I was not 100% sure. Sorry. Yeah. Welcome, Marc. Thanks. The first question is on the comment that you made in the slides, automate. The extra investments in the application layers. What can you do in the short term, end of this year? What are the investments you are going to make and how it is going to improve the product? I think Taco has given an indication where the investment levels are going to be. We feel comfortable with that number in order to achieve our goals. What we are saying here, as a business, we are really aiming to have a step change in efficiency in that mapmaking platform. That will create space and efficiency. We can go faster. Mapmaking has been a very manual process, and that's okay. That's the world we live in, we came from. As a result of the introduction of our new mapmaking platform, that's now up and running for a couple of years now, two, three years and maturing, it has also opened up a new way to look at how you build maps. That is the second kind of transition we're going through. The platform is there. Now we can hook on automation, look at different data sources, figure out new ways to have a high degree of automation in integrating those data sources while making sure quality is there, consistency is there, and that you can meet the high demand applications as well that are often safety critical and so on and so forth. You know what I mean, ADAS and HD. Also a broad range of other applications, more in the enterprise world than in the developer world. That's our path to efficiency, improvement of the platform, and ultimately addressing a broader range of potential customers and potential industries that we can target our products for. I do know well, that's going to be critical and that's going to be important. The progress we've made, again, I said it in my introduction, Marc, the progress we've made in 2020, that gives us a lot of confidence that we can actually get there. Is this like a multiple year story, or you can make big steps in the coming year? Well, we can make big steps in the coming two to three years. It's never done, it's never finished, but we can make anew. All the time, new opportunities arise with AI and new technologies and more powerful cloud and whatnot. It's a never-ending story, and I think we've been doing quite well, certainly compared to competition with limited investments. Compared to competition, we have improved faster on our content, but we need to continue on that path and accelerate on that path. That's going to be an important driver for operational leverage, growth in geography, growth in type of applications, growth in industry segments where we can play, and ultimately solidifying a role in location-based technology. Next to, dare I say, Google. Okay, clear. Might make a bit to this comparative dynamics. If I'm correct, the first half of the year was very good on order intake. Do you believe that structurally you're still winning share in the backlog? Yeah, I think we are. As I said earlier, there is a big North American customer that's switching around now. That's been in the making for a couple of years, but we'll start seeing the effects of that coming through in 2021, a bit later than expected, again, because of COVID. I don't want to use it as an excuse, but it's a fact. It will happen, and it's on its way, and I'm happy with that. There are a couple more customers out there that we need to switch. Those are within We have them in our visor, I think with a good story, and at a bigger price, I think, is broadening the suitability of our platform technology for a much broader range of applications outside the auto industry. I think there is significant opportunity for growth. Clear. Final one is a follow-up on the attach rate trends. Can you indicate a bit where you are today within your client base and how that is trending? Is that going very gradually or is that accelerating? What are you seeing? No, the growth in attachment rate is going gradually, much slower, actually, than people would expect. Typically, the people we talk to and that are on the phone on a day like this have expensive cars with expensive screens in the middle. There's a whole world out there where that's not been implemented. Attachment rates are still not where you typically expect them to be. It's more around the 35%, I reckon, now. Anyway, that's growing, but it's growing at glacial speed. As I said earlier, electric will change that. Electric will help in converting. Electric will do 100% attachment rate or close to 100% attachment rate. That's the way we see it now. The other thing that electric does is bring in connectivity in the vehicle. That in itself allows us to close the experience gap between what customers do on a mobile phone and what people are doing on a screen. I think we've long been critical in our own work actually, that we were not able or insufficiently capable within the constraints of an automotive industry to deliver a good end user experience, and that has been a source of frustration, if you like. Those constraints are being lifted now, and I think there are three movements that are facilitating that. Electric is one, connectivity is two, and three is an awareness in the automotive world, in the industry, that we really need to speed up now in closing that gap. That is leading also to a different conversation. Typically, the relation between a supplier and automotive customer are not very balanced. It's often around specifications and price. That's the traditional way of buying components for a vehicle. The awareness that that doesn't work for software is growing, and that is opening up new ways of partnering, collaborating, all with the goal to make it more efficient, more collaborative, and improve that end user experience. I think we're on a pretty good trajectory there. Okay. Thank you very much. All right. Thank you. The next question comes from the line of [Wim Gille] from ABN AMRO. Please ask your question. Hi there. This is Wim Gille from ABN AMRO. I would like to have two questions, please. First is on Apple and Apple Car. Yesterday, quite some news flow around the Apple Car, which is supposedly coming to the market. According to CNBC, they're close to finalizing a deal with Hyundai-Kia to manufacture this Apple-branded autonomous vehicle from their plant in West Point. The product should already go in production by 2024. The first question is, what is your relationship with Hyundai-Kia at this point in time? Secondly, more directly maybe, are you involved in this project directly? The second question I would have is on Enterprise. That was flat year-over-year in fourth quarter. Obviously, there's underlying industry growth. Maybe you can give me a bit of feeling what happened there exactly in fourth quarter. Also, dig a little bit deeper into how the market is developing for map APIs versus in compiled maps, and possibly how the Microsoft contract is doing for you guys. Thanks. Yeah. Thank you. I think the Apple thing is an endless source of speculation. I have very little to add. There's enough chatter there, and I don't think I've got anything meaningful to add there. I don't feel I can contribute to the conversation and that speculation. I think the other thing, Hyundai-Kia is in itself a very reputable company, of course. We have a good relationship with there. We are aiming to get a bigger portion of their wallet. We have a billing relationship for a number of projects and for a number of territories, but it's clearly one of the customers where we want to increase our involvement. Sorry, I missed a bit the question on Enterprise development. Can you please repeat that? Yeah. In the fourth quarter, you were flat year-over-year. Yeah. I was kind of, since there's a continuous growth in the industry for enterprise. Maybe if you can shed a bit of light on what happened, specifically in the fourth quarter. Is it maybe volume versus price thing? Did you lose a contract, or what's the reason why you didn't grow in the fourth quarter, despite the positive momentum in the industry? Maybe also give us a bit of feeling on how map APIs are developing versus how the in-compiled maps are developing. Lastly, on the Microsoft contract, if everything is running according to plan. Well, I'll take, hi Wim, it's Taco. I'll take the first part. Most of our customers have a fixed value arrangement. It does not fluctuate with underlying performance of those companies. If you compare year-over-year, the one thing that hurt Enterprise was the weakening of the USD as 80% of our Enterprise customers pay us in USD. The severe weakening of the USD had an impact, and without it would have grown year-over-year. Harold, the question about API growth? Yeah. Again, small proportion of our revenue, but growing, so encouraging signs. It is an area of growth and ongoing investment. When we further mature our API family of products and add the SDKs that we currently have under development, we are ready again to start pushing on that side of the business in a bigger way. We see good growth. We see improvements in the technology coming through as well, and it's an area where we will keep investing. Investing is happening in two ways. We see, generally speaking, all of our customers taking more and more online services instead of embedded products. When you've done that, they're not as is suitable necessarily for developer usage. You need to do something. You need to make it more user-friendly, documentation, all the rest of that, and make it suitable for developers to use it in an easier way. It's the customer, the productization, if you like, of core technology that is developed elsewhere, where we increase the investment. What you will see from TomTom is a more harmonized, focused, and capable concentration of products and services around online delivery. That is the trend we're witnessing, and that is possible because we have a lot more alignment now in terms of product between enterprise customers and automotive customers. That is facilitating that simplification, if you like, of the product portfolio. Very good. The Microsoft contract? Yeah. It's going according to plan. It's a long-term thing. We made important step in the further development of that relationship in 2020. They're now about ready to phase in our map content for the Bing platform. That's all on schedule, all on the way. We see a significant uptake in API usage as well. Yeah, I think it's going according to plan, and I still think it's a very exciting partnership with a lot more potential that we can develop further over the years to come. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Miki Sugimoto from RWC Partners. Please ask your question. Good afternoon. Thank you for taking my question. Going back to automotives, two questions. First is that I understand that with the penetration of EV, the take rate will increase, and that is the same for, that would be for TomTom as well. My first question is that whilst the penetration is increasing, is it conceivable that your take rate will decline in the meantime, in the next two or three years because of, for example, like CarPlay and Android Auto, so that consumer would rather opt for use those rather than use in-sat nav? My second question is that, as the EV penetration increase and the take rate will increase to 100% along that, are there new competition coming in for you when you go and speak to your customer? Specifically, I was wondering for the companies such as who working on a HD Map, like Mobileye, that belongs to Intel, and also Cruise, I think it's partly owned by GM, how do they fit into the picture? Also, in addition to that, you spoke a little bit about in your press release that given the current uncertainty resulting from cyclical and structural market development, you're not providing long-term view at this time. I was wondering if you could put a little bit more color around the structural market development that you had defined. Thank you. Yeah. Thank you, Miki. Let me look at my notes, just make sure that I get it right. Yeah. First question about take rate. As I said, generally speaking, take rates are going up, but it's going slowly. What's going to change that is electric, but electric is still only 2% of the total car production in the relevant markets that we are operating in. We expect that number to grow, but before it has a meaningful impact that the overall volume of electrical vehicles need to go up before you can actually see that in the overall attachment rate number. The CarPlay, Android Auto, is that working against you? That's not what we see. It's important to understand that if you want to run CarPlay and Android in the vehicle, you need to have powerful infotainment system with a big screen and a big processor, and you have the whole infrastructure. You also run your own applications there. Because we see a much tighter integration between vehicle functions, and the infotainment system, we find it difficult to see that the map will no longer be part of that infotainment system. We see integration of ADAS and the cluster, all that information, being distributed throughout the vehicle, making part of vehicle functions, new safety requirements as well for speed assist and maximum speed warnings. All that is integrated in the vehicle and needs to be tested as such. Yes, Android and CarPlay will not go away. They are popular with certain customers, end users. We don't see them displacing built-in maps in the vehicle. Okay. HD Map. A lot has been said, a lot has been done about HD Map and about self-driving. We've seen initially great enthusiasm for HD and for self-driving technology. We have seen announcements and introduction plans that have not been living up to expectations. That HD Map thing and self-driving is not off the agenda, and we are still working and close relationship, close contact with a number of customers who want to license HD Map from us. I think it's fair to say, and I said it at earlier calls as well, that the progress is not as fast as we had hoped for. I don't think that has changed. For us, visibility on the breakthrough in adaptation of HD Maps is not something that has come any closer than it was at the last earnings call. Okay. Yeah. What's going on with companies like Intel and more specifically Mobileye? I think one of the effects, what we see is that more and more sensor-derived observations are becoming available, as a result of more technology in the vehicle. The vehicle sees now speed signs and other signs and can distinguish lane markings and traffic signs, traffic lights, zebra crossings, as on and so forth. There is now emerging a marketplace for that data. Car makers want to own it. Car makers want to make money out of it, but there's also a marketplace that's evolving. That's quite an interesting and important development for us because it will help us to further automate the mapmaking process. As a result of those data becoming available and affordable, it's becoming a more automated process to use that data and improve the quality of the map, and do it in an automated, continuous way. When I say we work very hard to make our maps fresher, more reliable, have more data in them, one of the things that makes that possible is broad availability or broader availability, I should say, of all those observations. New technologies will help us to compare what the cameras see to what we have in the database and make adjustments. That doesn't mean that you can make mapmaking fully automated. Not at all. There's a whole load of data that you cannot create and generate through these kind of processes, and require different methods and different ways of collecting, processing, harmonizing data. Does that answer your question? Yes. That's very helpful. Thank you very much. Could I then just confirm that, for example, the conversation you have with the OEMs for, let's say, for their new EV model to be launched in three or four years' time, for those, you don't see any new competitions competing for the order? It's the same interfaces that you're already competing with? Yeah, we have not seen a change in that respect of the competitive landscape. Okay. Thank you very much. You're welcome. Thank you. The next question comes from the line of François Duvernay. Please ask your question. Your line is open. Hi, just a quick follow-up. Sorry, guys. On your comments about the CarPlay and Android, that you don't think it will replace it. There are a couple of news. Renault was a few years ago announcing they will integrate Android into their car. I just wanted to clarify, does it mean that even if Android is a by default operating system, does it mean that you will still be in the car? Just wanted to understand these comments. If an OEM announced that they will use Android operating system, where TomTom can be in the car if it's not replacing it. Just wanted to clarify that. The second one is on HD. It has been delayed, like you said, because of COVID, but obviously you invested a lot in R&D into that in the last few years, and if I look at your Capital Markets Day back in 2019, it was something that was part of the strategy longer term. When do you think it's going to come back into this? It seems that for autonomous driving, level 4 plus, industry experts were saying that HD Map is a requirement. Is there any chance for this kind of a statement? Thank you very much. I'll stop here, I promise. Yeah. No worry. No problem whatsoever, François. Thank you. Let me say what Miki was referring to, CarPlay and Android Auto. Those are applications that are running on a smartphone, and the idea is that you replicate the screens on the head unit of a car. She was really referring to kind of built-in functionality- Okay. Maybe I misunderstood that. Yeah. That is the CarPlay, Android Auto debate. There is another development, that is the operating system in the car. The operating system, that says nothing about the application layer, the operating system, is also converging to the Android open source part. There are various reasons for that. One of the things that that does, you have a number of operating systems, you have QNX, you have Linux, and you have Android as the main contenders, I think, in the car operating system world. It looks like AOSP, as we call it, that's the open source bit, is gaining momentum. There are good reasons for that. It's well-supported by silicon, it's well-supported with hardware abstraction layers, and there are powerful development tools for application development and test and what have you. It's a well-understood operating system that is license-free. We see more and more car makers converting to that operating system. That makes life a lot easier for everybody in the industry, because you have a standardized operating system, then you can standardize your own applications, you can build on the latest tools, you can use the hardware abstraction layers, which makes it all a lot easier, less complex to build those applications. That's the other trend that we're seeing in the auto industry. HD, when is it coming back? Well, what I do know is it is coming back. The problem is not HD maps. We know how to do it. We know how they're used. We know how to produce them at scale. Our production pipeline has much matured in the last years. The real question is, when is level 4 going to happen? That is still not answered. It's a harder problem than people had expected, and we don't see a real breakthrough. We see some bravado, some statements still in the marketplace, but very little evidence yet. That is still not some problem that the industry has solved. What we have figured out, of course, with the new technologies that help us to produce HD, we can also make map production more efficient and better automated. That whole visual recognition of data classification, processing, and integration of data, has moved on significantly from where we were only a couple of years ago. Great. Thank you very much. Thank you. Thank you and t he last question comes from the line of [Wim Gille]. Please ask your question. Your line is open. Yeah. Hi, Harold. I was triggered by, let's say, the last discussion where you basically said the fact that Android as an operating system is gaining ground, is helping the industry because of standardization. Let's say from where I'm sitting, a few years ago, we had a duopoly here with the QNX from BlackBerry and Linux, and now we have three operating systems. Isn't this just adding complexity? The other question that I had was, I think my information is a bit stale here, but in the past, QNX was the only one that had specific licenses that are required or certificates that were required to have the security of the car actually embedded, i.e., if you want to have emergency brakes and those kind of things embedded in your infotainment system, then you need to have certain certificates, and QNX was the only one that actually had those. Where are we in the industry with respect to standardization, and aren't we just adding a lot more complexity? No, we're not adding complexity. We're making it simpler. If you want to run products that run on a broad range of platforms, you need to develop in C++, and that's all great, but not very productive. By concentrating your leading products on an AOSP platform, you can use much more efficient tools, libraries, test frameworks, and so on and so forth. I think the industry is recognizing that. We still see some legacy stuff, but I think it's a safe bet to say that the market will converge to AOSP. We definitely have made that bet, and arguably, you always need to be a little bit lucky with that. You never know what the future will look like. Every now and then, as a company, you need to place those bets, which platforms are going to win. We are now saying C++ is no longer the main way forward to deliver great end-user experiences, and we can use modern tools because we see simplification in the landscape of operating systems. What you say about some safety-critical applications, yes, there is something like that. In line with regulation, you can't do everything in AOSP because you lack a certain level of security. The industry has figured out a way around that by running a more secure operating system somewhere in the corner of the SOC and running the safety-critical applications that are needed. Then you can still combine them in a unified user interface, but you have different levels of certification and whatnot. It's a little bit technical. I don't want to dwell too much on it. I think the takeaway is that the overall trend for infotainment is AOSP as operating system, standardization, hardware abstraction layers, which makes it for companies as us much easier, and we can go much faster. Let's say, because obviously from a sentiment perspective, there were a lot of investors and people in the financial community who generally lack the kind of experience and the, let's say, insights to really distinguish between those technical details. What they will fear, obviously, with Android taking over the operating systems there is that they will embed Google Maps as well, blah, blah, and as a consequence, replace embedded maps. What's your response to that fear, which is obviously here in the market? I just had the feedback from a client once more. In the end, Google will take over. It's a very difficult, let's say, sentiment to battle, especially for the sell side. Can you explain us one more time why the kind of emergence of Android as an operating system is not a threat to your company? Well, because they're independent decisions. It's an independent decision. The decision is, do I want to run the Google application set, or do I want to have something where I have better control? If you make that decision, then your second decision is, or secondary order is, on what operating system am I going to run that? They are independent. The obvious choice these days for an operating system in a car, for an infotainment system, is now clearly heading for AOSP because it has got widespread support in the industry from tier 1s, from silicon hardware vendors who are connecting to an infotainment system can have one interface. There's a clear rationale why that is happening. What it does, it makes the choice for not going with the Google set of applications a much easier one because there's much wider support for the SOC and for the whole architecture and for the whole system. The cost of not doing Android at the application layer is significantly coming down, and the quality of what you can deliver is significantly going up. Thank you very much. You're welcome. Since we have no further questions, I would like to thank you all for joining us this afternoon. Operator, you can close the call. Thank you. That does conclude our conference for today. Thank you for participating. You may all disconnect.