Nokia Corporation
Stock Exchange Release
December 2, 2009 at 13.00 (CET +1)
Nokia Capital Markets Day 2009
Nokia sets key financial targets and Devices & Services operational priorities
for 2010
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