Nokia expects to revise upwards its 2021 financ...
Nokia Corporation
Inside information
13 July 2021 at 9:00 EET
Nokia expects to revise upwards its 2021 financial guidance
Espoo, Finland – Nokia is today providing an update to its financial guidance for full year 2021. In the second quarter Nokia saw continued strength in the business, improving its expectations for the full year. Nokia now expects to revise upwards its prior outlook ranges for 2021. Nokia plans to provide full details on its second quarter and half-year financial performance and revised full year 2021 guidance on 29 July 2021.
The previous outlook for 2021 ( reiterated on 29 April 2021) was :
| Net sales, adjusted for currency fluctuations1 | €20.6bn to €21.8bn |
| Comparable operating margin | 7 to 10% |
| Free cash flow | Positive |
| Comparable ROIC | 10 to 15% |
1 ) Assuming continuation of 2020 year-end EUR/USD rate of 1.23 .
“We are progressing well with our three-phased plan to achieve sustainable, profitable growth and technology leadership laid out at our Capital Markets Day in March. Our first half performance has shown evidence of this in good cost control and also benefited from strength in a number of our end markets. We continue to expect some headwinds in the second half as we have previously highlighted but our performance in the first half provides a good foundation for the full year,” said Pekka Lundmark, Nokia President and CEO.
The company will release its second quarter and half year 2021 financial results on Thursday 29 July 2021.
Nokia will conduct a conference call with analysts and investors to discuss its second quarter performance and business outlook on 29 July 2021 at 11:30am EET / 9:30am BST / 4:30am US EST.
About Nokia
At Nokia, we create technology that helps the world act together.
As a trusted partner for critical networks, we are committed to innovation and technology leadership across mobile, fixed and cloud networks. We create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.
Adhering to the highest standards of integrity and security, we help build the capabilities needed for a more productive, sustainable and inclusive world.
Inquiries :
Nokia
Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Katja Antila, Head of Media Relations
Nokia
Investor Relations
Phone: +358 40 803 4080
Email: investor.relations@nokia.com
Forward-looking
statements
It
should
be
noted
that
Nokia and
its
businesses are
exposed
to
various
risks
and
uncertainties
and certain
statements
herein
that
are not
historical
facts
are
forward-looking
statements
.
These
forward-looking
statements
reflect
Nokia's
current
expectations and
views
of future
developments
and
include
statements
regarding
: A) expectations, plans or
benefits
related
to
our
strategies
,
growth
management and
operational
key performance
indicators
; B) expectations, plans or
benefits
related
to future performance of
our
businesses (
including
the
expected
impact, timing and duration of
that
impact of COVID-19 on
our
businesses,
our
supply
chain
and
our
customers
’ businesses) and
any
future
dividends
including
timing and qualitative and quantitative
thresholds
associated
therewith
; C) expectations and
targets
regarding
financial
performance, cash
generation
,
results
, the timing of
receivables
, operating
expenses
, taxes,
currency
exchange rates,
hedging
,
cost
savings
,
product
cost
reductions
and
competitiveness
, as
well
as
results
of
operations
including
targeted
synergies,
better
commercial management and
those
results
related
to
market
share
,
prices
, net sales,
income
and
margins
; D) expectations, plans or
benefits
related
to changes in
organizational
and
operational
structure; E) expectations
regarding
competition
within
our
market
,
market
developments
,
general
economic
conditions and structural and
legal
change
globally
and in national and
regional
markets
,
such
as China; F)
our
ability
to
integrate
acquired
businesses
into
our
operations
and
achieve
the
targeted
business plans and
benefits
,
including
targeted
benefits
, synergies,
cost
savings
and
efficiencies
; G) expectations, plans or
benefits
related
to
any
future collaboration or to business collaboration
agreements
or patent
license
agreements
or arbitration
awards
,
including
income
to
be
received
under
any
collaboration or partnership, agreement or
award
; H) timing of the
deliveries
of
our
products
and services,
including
our
short
term
and longer
term
expectations
around
the
rollout
of 5G,
investment
requirements
with
such
rollout
, and
our
ability
to
capitalize
on
such
rollout
; I) expectations and
targets
regarding
collaboration and
partnering
arrangements,
joint ventures
or the
creation
of
joint ventures
, and the
related
administrative,
legal
,
regulatory
and
other
conditions, as
well
as
our
expected
customer
reach
; J)
outcome
of
pending
and
threatened
litigation
, arbitration, disputes,
regulatory
proceedings
or investigations by
authorities
; K) expectations
regarding
restructurings
,
investments
, capital structure
optimization
efforts, uses of
proceeds
from
transactions, acquisitions and
divestments
and
our
ability
to
achieve
the
financial
and
operational
targets
set in
connection
with
any
such
restructurings
,
investments
, capital structure
optimization
efforts,
divestments
and acquisitions,
including
our
current
cost
savings
program; L)
expectations, plans or
benefits
related
to future capital
expenditures
,
reduction
of support
function
costs
,
temporary
incremental
expenditures
or
other
R&D
expenditures
to
develop
or
rollout
software and
other
new
products
,
including
5G,
ReefShark
and
increased
digitalization
; M) expectations
regarding
our
customers
' future actions,
including
our
customers
’ capital
expenditure
constraints
and
our
ability
to
satisfy
customer’s
needs
and
retain
their
business; and N)
statements
preceded
by or
including
“
believe
”, “
expect
”, “expectations”, “
deliver
”, “
maintain
”, “
strengthen
”, “
target
”, “
estimate
”, “plan”, “
intend
”, “
assumption
”, “focus”, “continue”, “
should
", "
will
” or
similar
expressions.
These
forward-looking
statements
are
subject
to a
number
of
risks
and
uncertainties
,
many
of
which
are
beyond
our
control,
which
could
cause
our
actual
results
to
differ
materially
from
such
statements
.
These
statements
are
based
on
management’s
best
assumptions
and
beliefs
in light of the information
currently
available
to
them
.
These
forward-looking
statements
are
only
predictions
based
upon
our
current
expectations and
views
of future
events
and
developments
and are
subject
to
risks
and
uncertainties
that
are
difficult
to
predict
because
they
relate to
events
and
depend
on
circumstances
that
will
occur
in the future.
Factors
,
including
risks
and
uncertainties
that
could
cause
these
differences
include
, but are not
limited
to: 1)
our
strategy
is
subject
to
various
risks
and
uncertainties
and
we
may
be
unable
to
successfully
implement
our
strategic
plans,
sustain
or
improve
the
operational
and
financial
performance of
our
business groups,
correctly
identify
or
successfully
pursue
business
opportunities
or
otherwise
grow
our
business; 2)
general
economic
and
market
conditions,
general
public
health
conditions (
including
its
impact on
our
supply
chains
) and
other
developments
in the
economies
where
we
operate
,
including
the timeline for the
deployment
of 5G and
our
ability
to
successfully
capitalize
on
that
deployment
; 3)
competition
and
our
ability
to
effectively
and
profitably
invest
in
existing
and new high-
quality
products
, services, upgrades and technologies and
bring
them
to
market
in a
timely
manner
; 4)
our
dependence
on the
development
of the industries in
which
we
operate
,
including
the
cyclicality
and
variability
of the information
technology
and
telecommunications
industries and
our
own
R&D
capabilities
and
investments
; 5)
our
dependence
on a
limited
number
of
customers
and large multi-
year
agreements
, as
well
as
external
events
impacting
our
customers
including
mergers and acquisitions and the
possibility
of
our
customers
awarding
business to
our
competitors
; 6)
our
ability
to
maintain
our
existing
sources of
intellectual
property-related
revenue
through
our
intellectual
property
,
including
through
licensing
,
establishing
new sources of revenue and
protecting
our
intellectual
property
from
infringement
; 7)
our
ability
to manage and
improve
our
financial
and operating performance,
cost
savings
,
competitiveness
and synergies
generally
, expectations and timing
around
our
ability
to
recognize
any
net sales and
our
ability
to
implement
changes to
our
organizational
and
operational
structure
efficiently
; 8)
our
global business and
exposure
to
regulatory
,
political
or
other
developments
in
various
countries or
regions
,
including
emerging
markets
and the
associated
risks
in relation to
tax
matters
and exchange
controls
,
among
others
; 9)
our
ability
to
achieve
the
anticipated
benefits
, synergies,
cost
savings
and
efficiencies
of acquisitions; 10) exchange rate fluctuations, as
well
as
hedging
activities
; 11)
our
ability
to
successfully
realize
the expectations, plans or
benefits
related
to
any
future collaboration or business collaboration
agreements
and patent
license
agreements
or arbitration
awards
,
including
income
to
be
received
under
any
collaboration, partnership, agreement or arbitration
award
; 12) Nokia Technologies'
ability
to
protect
its
IPR and to
maintain
and
establish
new sources of patent, brand and
technology
licensing
income
and IPR-
related
revenues,
particularly
in the smartphone
market
,
which
may
not
materialize
as
planned
, 13)
our
dependence
on IPR technologies,
including
those
that
we
have
developed
and
those
that
are
licensed
to us, and the
risk
of
associated
IPR-
related
legal
claims,
licensing
costs
and restrictions on use; 14)
our
exposure
to direct and indirect
regulation
,
including
economic
or
trade
policies
, and the
reliability
of
our
governance
,
internal
controls
and
compliance
processes
to
prevent
regulatory
penalties in
our
business or in
our
joint ventures
; 15)
our
reliance
on
third
-party solutions for data
storage
and service distribution,
which
expose us to
risks
relating
to
security
,
regulation
and
cybersecurity
breaches
; 16)
inefficiencies
,
breaches
,
malfunctions
or disruptions of information
technology
systems
, or
our
customers
’
security
concerns
; 17)
our
exposure
to
various
legal
frameworks
regulating
corruption,
fraud
,
trade
policies
, and
other
risk
areas, and the
possibility
of
proceedings
or investigations
that
result
in fines, penalties or sanctions; 18) adverse
developments
with
respect to
customer
financing
or
extended
payment
terms
we
provide
to
customers
; 19) the
potential
complex
tax
issues,
tax
disputes and
tax
obligations
we
may
face in
various
jurisdictions
,
including
the
risk
of obligations to
pay
additional
taxes; 20)
our
actual
or
anticipated
performance,
among
other
factors
,
which
could
reduce
our
ability
to
utilize
deferred
tax
assets; 21)
our
ability
to
retain
,
motivate
,
develop
and
recruit
appropriately
skilled
employees
; 22) disruptions to
our
manufacturing
, service
creation
,
delivery
,
logistics
and
supply
chain
processes
,
our
ability
to procure certain standard components
such
as
semiconductors
, and the
risks
related
to
our
production sites; 23) the impact of
litigation
, arbitration, agreement-
related
disputes or
product
liability
allegations
associated
with
our
business; 24)
our
ability
to re-
establish
investment
grade rating or
maintain
our
credit
ratings; 25)
our
ability
to
achieve
targeted
benefits
from
, or
successfully
implement
planned
transactions, as
well
as the
liabilities
related
thereto
; 26)
our
involvement
in
joint ventures
and
jointly-managed
companies
; 27) the
carrying
amount
of
our
goodwill
may
not
be
recoverable
; 28)
uncertainty
related
to the
amount
of
dividends
and
equity
return (if
any
)
we
are able to
distribute
to
shareholders
for
each
financial
period
; 29) pension
costs
,
employee
fund-related
costs
, and
healthcare
costs
; 30)
our
ability
to
successfully
complete
and
capitalize
on
our
order
backlogs
and continue
converting
our
sales pipeline
into
net sales; 31)
risks
related
to
undersea
infrastructure; and 32) the scope and duration of the COVID-19 impact on the global
economy
and
financial
markets
as
well
as
our
customers
,
supply
chain
,
product
development
, service
delivery
,
other
operations
and
our
financial
,
tax
, pension and
other
assets, and the
shape
of the
economic
recovery
following
the
pandemic
as
well
as the
risk
factors
specified
in
our
2020
annual
report on
Form
20-F
published
on March 4, 2021
under
"Operating and
financial
review
and prospects-Risk
factors
" and in
our
other
filings
or documents
furnished
with
the U.S. Securities and Exchange Commission.
Other
unknown
or
unpredictable
factors
or
underlying
assumptions
subsequently
proven
to
be
incorrect
could
cause
actual
results
to
differ
materially
from
those
in the
forward-looking
statements
.
We
do 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
.
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