Nokia Capital Markets Day 2009
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The issuer is solely responsible for the content of this
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Nokia sets key financial targets and Devices & Services operational
priorities for 2010
Nokia Corporation
Stock Exchange Release
December 2, 2009 at 13.00 (CET +1)
Helsinki, Finland - Today, at its annual Capital Markets Day event,
Nokia set key targets and forecasts for the company and its industry
for 2010. Senior company executives outlined how Nokia's focus on
execution combined with its core competitive advantages, position the
company to achieve and sustain broad-based success in the mobile
devices market. At the event, Nokia also demonstrated significant
improvements to its forthcoming version of the Symbian user
interface.
Nokia CEO, Olli-Pekka Kallasvuo, highlighted Nokia's focus on user
experience, stating: "In 2010, we will drive user experience
improvements, and the progress we make will take the Symbian user
interface to a new level. As an operating system, Symbian has reach
and flexibility like no other platform, and we have measures in place
to push smartphones down to new price points globally, while growing
margins. I see great opportunity for Nokia to capture new growth in
our industry, by creating what we expect to be the world's biggest
platform for services on the mobile."
Nokia CFO, Timo Ihamuotila, described Nokia's view of the industry
and competitive environment: "Going into 2010, the overall mobile
devices market is stabilizing and it is growing more in the areas
where Nokia has competitive advantages. We believe that by executing
on the operational priorities we have set, Nokia will be competitive
in both mobile phones and smartphones and will improve its value
share."
Targets and forecasts for Nokia and the mobile device industry
- Nokia expects industry mobile device volumes to be up approximately
10% in 2010, compared to 2009.
- Nokia targets its mobile device volume market share to be flat in
2010, compared to 2009.
- Nokia targets lower average selling price (ASP) erosion of its
mobile devices in 2010, compared to recent years.
- Nokia targets to increase its mobile device value market share
slightly in 2010, compared to 2009.
- Nokia targets non-IFRS* operating expenses in Devices & Services of
approximately EUR 5.7 billion in 2010.
- Nokia targets bringing Devices & Services non-IFRS* research and
development expenses below 10% of net sales in 2010.
- Nokia targets Devices & Services non-IFRS* operating margin of 12%
to 14% in 2010.
- Nokia continues to target Services net sales of EUR 2 billion or
more in 2011.
- Nokia continues to target to have 300 million active users for its
services by the end of 2011.
Targets and forecasts for Nokia Siemens Networks and the mobile and
fixed infrastructure and related services market
- Nokia and Nokia Siemens Networks expect a flat market in euro terms
for the mobile and fixed infrastructure and related services market
in 2010, compared to 2009.
- Nokia and Nokia Siemens Networks target for Nokia Siemens Networks
to grow faster than the market in 2010.
- Nokia and Nokia Siemens Networks continue to target Nokia Siemens
Networks to reduce its non-IFRS* annualized operating expenses and
production overheads by EUR 500 million by the end of 2011, compared
to the end of 2009.
- Nokia and Nokia Siemens Networks target Nokia Siemens Networks non-
IFRS* operating margin of breakeven to 2% in 2010.
Additional financial targets
- Nokia and NAVTEQ target NAVTEQ operating margin to be higher than
Devices & Services operating margin in 2010, on a non-IFRS* basis.
- Nokia targets its financial income and expense to be approximately
EUR 250 million expense in 2010.
Nokia Devices & Services operational priorities
In addition to providing its key financial targets, Nokia also
outlined key Devices & Services operational priorities for 2010.
These are:
- Improve our user experience;
- Re-engineer our Symbian user interface; deliver a major product
milestone before mid-year 2010, and another major product milestone
before the end of 2010;
- Deliver our first Maemo 6-powered mobile computer, with an iconic
user experience, in the second half of 2010;
- Significantly increase the proportion of touch and/or QWERTY
devices in our smartphone portfolio;
- Scale up our Services business by expanding geographically and in
partnership with more operators;
- Provide third party developers with better tools to create
applications and content for our Ovi ecosystem;
- Further optimize the industry's lowest cost end-to-end business
model in Mobile Phones; and
- Continue to build on our affordable and localized services
offerings for emerging market consumers.
* Non-IFRS results exclude special items for all periods. In
addition, non-IFRS results exclude intangible asset amortization,
other purchase price accounting related items and inventory value
adjustments arising from the formation of Nokia Siemens Networks and
from all business acquisitions. Nokia believes that these non-IFRS
financial measures provide meaningful supplemental information to
both management and investors regarding Nokia's performance by
excluding the above-described items that may not be indicative of
Nokia's business operating results. These non-IFRS financial measures
should not be viewed in isolation or as substitutes to the equivalent
IFRS measure(s), but should be used in conjunction with the most
directly comparable IFRS measure(s) in the reported results.
The main session presentations at Nokia Capital Markets Day will be
webcast live at: www.nokia.com/investors. The evening session
auditorium presentations at Nokia Capital Markets Day will be webcast
(archived) at: www.nokia.com/investors
FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A)
the timing of product, services and solution deliveries; B) our
ability to develop, implement and commercialize new products,
services, solutions and technologies; C) our ability to develop and
grow our consumer Internet services business; D) expectations
regarding market developments and structural changes; E) expectations
regarding our mobile device volumes, market share, prices and
margins; F) expectations and targets for our results of operations;
G) the outcome of pending and threatened litigation; H) expectations
regarding the successful completion of contemplated acquisitions on a
timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and I) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are
forward-looking statements. These statements are based on
management's best assumptions and beliefs in light of the information
currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results
that we currently expect. Factors that could cause these differences
include, but are not limited to: 1) the deteriorating global economic
conditions and related financial crisis and their impact on us, our
customers and end-users of our products, services and solutions, our
suppliers and collaborative partners; 2) the development of the
mobile and fixed communications industry, as well as the growth and
profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products,
services and solutions in those segments; 3) the intensity of
competition in the mobile and fixed communications industry and our
ability to maintain or improve our market position or respond
successfully to changes in the competitive landscape; 4)
competitiveness of our product, services and solutions portfolio; 5)
our ability to successfully manage costs; 6) exchange rate
fluctuations, including, in particular, fluctuations between the
euro, which is our reporting currency, and the US dollar, the
Japanese yen, the Chinese yuan and the UK pound sterling, as well as
certain other currencies; 7) the success, financial condition and
performance of our suppliers, collaboration partners and customers;
8) our ability to source sufficient amounts of fully functional
components, sub-assemblies, software and content without interruption
and at acceptable prices; 9) the impact of changes in technology and
our ability to develop or otherwise acquire and timely and
successfully commercialize complex technologies as required by the
market; 10) the occurrence of any actual or even alleged defects or
other quality, safety or security issues in our products, services
and solutions; 11) the impact of changes in government policies,
trade policies, laws or regulations or political turmoil in countries
where we do business; 12) our success in collaboration arrangements
with others relating to development of technologies or new products,
services and solutions; 13) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality,
safety, security and timely delivery of our products, services and
solutions; 14) inventory management risks resulting from shifts in
market demand; 15) our ability to protect the complex technologies,
which we or others develop or that we license, from claims that we
have infringed third parties' intellectual property rights, as well
as our unrestricted use on commercially acceptable terms of certain
technologies in our products, services and solutions; 16) our ability
to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks
patented, standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property
rights of these technologies; 17) any disruption to information
technology systems and networks that our operations rely on; 18)
developments under large, multi-year contracts or in relation to
major customers; 19) the management of our customer financing
exposure; 20) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 21) whether, as a result of
investigations into alleged violations of law by some former
employees of Siemens AG ("Siemens"), government authorities or others
take further actions against Siemens and/or its employees that may
involve and affect the carrier-related assets and employees
transferred by Siemens to Nokia Siemens Networks, or there may be
undetected additional violations that may have occurred prior to the
transfer, or violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 22) any impairment of Nokia Siemens Networks
customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; 23) unfavorable outcome of
litigations; 24) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices
and lawsuits related to them, regardless of merit; as well as the
risk factors specified on pages 11-28 of Nokia's annual report on
Form 20-F for the year ended December 31, 2008 under Item 3D. "Risk
Factors." Other unknown or unpredictable factors or underlying
assumptions subsequently proving to be incorrect could cause actual
results to differ materially from those in the forward-looking
statements. Nokia does not undertake any obligation to publicly
update or revise forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent
legally required.
Media and Investor Contacts:
Nokia
Communications
Tel. +358 7180 34900
Email: press.services@nokia.com
Investor Relations Europe, Tel. +358 7180 34927
Investor Relations US, Tel. +1 914 368 0555
www.nokia.com
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NOKIA
P.O. Box 226<br>FIN-00045 NOKIA GROUP Espoo
WKN: 870737;
ISIN: FI0009000681; Index: DJ STOXX Large 200, DJ STOXX 50;
Listed: Nordic list (Large Cap) in THE HELSINKI STOCK EXCHANGE;
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