11th Feb 2011 06:31
Nokia / Miscellaneous 11.02.2011 08:31 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Nokia CorporationStock exchange releaseFebruary 11, 2011 at 09.45 (CET+1) London, UK - Nokia today outlined its new strategic direction, includingchanges in leadership and operational structure to accelerate the company'sspeed of execution in a dynamic competitive environment. Major elements of the new strategy include: - Plans for a broad strategic partnership with Microsoft to build a new globalmobile ecosystem; Windows Phone would serve as Nokia's primary smartphoneplatform. - A renewed approach to capture volume and value growth to connect 'the nextbillion' to the Internet in developing growth markets - Focused investments in next-generation disruptive technologies- A new leadership team and organizational structure with a clear focus onspeed, results and accountability 'Nokia is at a critical juncture, where significant change is necessary andinevitable in our journey forward,' said Stephen Elop, Nokia President and CEO.'Today, we are accelerating that change through a new path, aimed at regainingour smartphone leadership, reinforcing our mobile device platform and realizingour investments in the future.' Nokia plans to form a strategic partnership with Microsoft to build a globalmobile ecosystem based on highly complementary assets. The Nokia-Microsoftecosystem targets to deliver differentiated and innovative products and haveunrivalled scale, product breadth, geographical reach, and brand identity. WithWindows Phone as its primary smartphone platform, Nokia would help drive thefuture of the platform by leveraging its expertise on hardware optimization,software customization, language support and scale. Nokia and Microsoft wouldalso combine services assets to drive innovation. Nokia Maps, for example,would be at the heart of key Microsoft assets like Bing and AdCenter, andNokia's application and content store would be integrated into MicrosoftMarketplace. Under the proposed partnership, Microsoft would provide developertools, making it easier for application developers to leverage Nokia's globalscale. With Nokia's planned move to Windows Phone as its primary smartphone platform,Symbian becomes a franchise platform, leveraging previous investments toharvest additional value. This strategy recognizes the opportunity to retainand transition the installed base of 200 million Symbian owners. Nokia expectsto sell approximately 150 million more Symbian devices in the years to come. Under the new strategy, MeeGo becomes an open-source, mobile operating systemproject. MeeGo will place increased emphasis on longer-term market explorationof next-generation devices, platforms and user experiences. Nokia still plansto ship a MeeGo-related product later this year. In feature phones, Nokia unveiled a renewed strategy to leverage its innovationand strength in growth markets to connect the next billion people to theirfirst Internet and application experience. New leadership team, operational structureThis new strategy is supported by significant changes in Nokia's leadership,operational structure and approach. Effective today, Nokia has a new leadershipteam with the commitment, competencies and innovative thinking needed intoday's dynamic environment. The Nokia Leadership Team, previously the Group Executive Board, will consistof the following members: Stephen Elop, Esko Aho, Juha Akras, Jerri DeVard,Colin Giles, Rich Green, Jo Harlow, Timo Ihamuotila, Mary McDowell, KaiOistamo, Tero Ojanpera, Louise Pentland and Niklas Savander. Alberto Torres has stepped down from the management team, effective February 10to pursue other interests outside the company. The renewed governance will expedite decision-making and improve time-to-marketof products and innovations, placing a heavy focus on results, speed andaccountability. The new strategy and operational structure are expected to havesignificant impact to Nokia operations and personnel. New company structureAs of April 1, Nokia will have a new company structure, which features twodistinct business units: Smart Devices and Mobile Phones. They will focus onNokia's key business areas: high-end smartphones and mass-market mobile phones.Each unit will have profit-and-loss responsibility and end-to-endaccountability for the full consumer experience, including product development,product management and product marketing. Smart Devices will be responsible for building Nokia's leadership insmartphones and will be led by Jo Harlow. The following sub-units now in MobileSolutions will move under Smart Devices: - Symbian Smartphones- MeeGo Computers- Strategic Business Operations To support the planned new partnership with Microsoft, Smart Devices will beresponsible for creating a winning Windows Phone portfolio. Mobile Phones will drive Nokia's 'web for the next billion' strategy. MobilePhones will leverage its innovation and strength in growth markets to connectthe next billion people and bring them affordable access to the Internet andapplications. The Mobile Phones unit will be led by Mary McDowell. Markets will be responsible for selling products, executing compellingmarketing and communications, creating a competitive local ecosystem, sourcing,customer care, manufacturing, IT and logistics across all Nokia products. Itwill be headed by Niklas Savander. Services and Developer Experience will be responsible for Nokia's globalservices portfolio, developer offering, developer relations and integration ofpartner service offerings. Tero Ojanpera will lead the Services and DeveloperExperience unit in an acting capacity. NAVTEQ, an integral part of Nokia's location and advertising business, will beheaded by Larry Kaplan, and continue as a separate reporting entity. The CTO Office will be responsible for Nokia's technology strategy andforward-looking technology activities, including Nokia Research Center. It willbe headed by Rich Green. Design, responsible for Nokia product and user experience design, will be ledby Marko Ahtisaari. The CFO Office, responsible for all financial activity, will be headed by TimoIhamuotila. Corporate Development, responsible for driving implementation of Nokia'secosystem strategy and strategic partnerships, will be headed by Kai Oistamo. Corporate Relations & Responsibility, responsible for Nokia's government andpublic affairs, sustainable development and social responsibility, will be ledby Esko Aho. Human Resources will be led by Juha Akras. Legal and Intellectual Property will be led by Louise Pentland. Nokia Siemens Networks continues in the Nokia Group as a separate reportingentity. Please visit www.nokia.com/press for press materials. About NokiaAt Nokia, we are committed to connecting people. We combine advanced technologywith personalized services that enable people to stay close to what matters tothem. Every day, more than 1.3 billion people connect to one another with aNokia device - from mobile phones to advanced smartphones and high-performancemobile computers. Today, Nokia is integrating its devices with innovativeservices through Ovi (www.ovi.com), including music, maps, apps, email andmore. Nokia's NAVTEQ is a leader in comprehensive digital mapping andnavigation services, while Nokia Siemens Networks provides equipment, servicesand solutions for communications networks globally. FORWARD-LOOKING STATEMENTSIt should be noted that certain statements herein which are not historicalfacts are forward-looking statements, including, without limitation, thoseregarding: A) the intention to form a strategic partnership with Microsoft tocombine complementary assets and expertise to form a global mobile ecosystemand to adopt Windows Phone as our primary smartphone platform, including theexpected plans and benefits of such partnership; B) the timing and expectedbenefits of our new strategy, including expected operational and financialbenefits and targets as well as changes in leadership and operation structure;C) the timing of the deliveries of our products and services and theircombinations; D) our ability to develop, implement and commercialize newtechnologies, products and services and their combinations; E) expectationsregarding market developments and structural changes; F) expectations andtargets regarding our industry volumes, market share, prices, net sales andmargins of products and services; G) expectations and targets regarding ouroperational priorities and results of operations; H) the outcome of pending andthreatened litigation; I) expectations regarding the successful completion ofacquisitions or restructurings on a timely basis and our ability to achieve thefinancial and operational targets set in connection with any such acquisitionor restructuring; and J) statements preceded by 'believe,' 'expect,''anticipate,' 'foresee,' 'target,' 'estimate,' 'designed,' 'plans,' 'will' orsimilar expressions. These statements are based on management's bestassumptions and beliefs in light of the information currently available to it.Because they involve risks and uncertainties, actual results may differmaterially from the results that we currently expect. Factors that could causethese differences include, but are not limited to: 1) whether definitiveagreements can be entered into with Microsoft for the potential partnership ina timely manner, or at all, and on terms beneficial to us; 2) our ability tocontinue to innovate and maintain the vibrancy of our Symbian-based smartphonesduring the negotiation of the Microsoft partnership and thereafter; 3) thenegotiation and implementation of the Microsoft partnership will requiresignificant time, attention and resources of our senior management and otherswithin the company potentially diverting their attention from other aspects ofour business; 4) in choosing to negotiate a partnership with Microsoft andutilize Windows Phone as our primary smartphone platform, we may forego morecompetitive alternatives achieving greater acceptance and profitability in thesmartphone market; 5) the Microsoft Windows Phone smartphone platform may notbe preferred by application developers, content providers and other partnersimpairing our ability to build a sufficiently competitive ecosystem for oursmartphones; 6) the Microsoft partnership may not achieve the stated goal ofproducing smartphones which are differentiated from those of our competitorsand preferred by our customers and consumers in the expected timeframe, or atall; 7) our ability to change our business model, way of working and culturesufficiently to work effectively and efficiently with Microsoft in order torealize the stated benefits of the partnership in a timely manner, or at all;8) our ability to effectively and smoothly implement our new leadership andoperational structure and to realize the anticipated benefits in a timelymanner; 9) the implementation of the Microsoft partnership and the newoperational structure may cause disruption and dissatisfaction among employeespotentially reducing focus and productivity in some or all areas of ourbusiness; as well as the risk factors specified on pages 11-32 of Nokia'sannual report Form 20-F for the year ended December 31, 2009 under Item 3D.'Risk Factors.' Other unknown or unpredictable factors or underlyingassumptions subsequently proving to be incorrect could cause actual results todiffer materially from those in the forward-looking statements. Nokia does notundertake any obligation to publicly update or revise forward-lookingstatements, whether as a result of new information, future events or otherwise,except to the extent legally required. Media Enquiries: NokiaCommunicationsTel. +358 7180 34900Email: [email protected] www.nokia.comNews Source: NASDAQ OMX 11.02.2011 DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: Nokia FinlandPhone: Fax: E-mail: Internet: ISIN: FI0009000681Category Code: MSCLSE Ticker: 0HAFSequence Number: 682Time of Receipt: Feb 11, 2011 08:30:11 End of Announcement DGAP News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.
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