11th Feb 2011 06:30
Nokia / Miscellaneous 11.02.2011 08:30 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 9.30 (CET +1) London, UK - Nokia today outlined a new strategic direction, including changesin leadership and operational structure to accelerate the company's speed ofexecution in a dynamic competitive environment. In connection with this newstrategic direction, Nokia has set new financial targets and forecasts forNokia and the mobile device industry and for Nokia Siemens Networks and themobile and fixed infrastructure and related services market. Targets and forecasts for Nokia and the mobile device industry Nokia expects attractive mobile device industry revenue growth in 2011 and overthe longer-term, driven by the further adoption of smartphones by consumersglobally and the further adoption of mobile devices and services, particularlyin emerging markets. Over the longer-term, Nokia expects mobile device industrygross margins to come under pressure due to competitive factors. Due to the initiation of Nokia's strategic transformation on February 11, 2011,the full-year prospects for its Devices & Services business are subject tosignificant uncertainties, and therefore Nokia believes it is not appropriateto provide annual targets for 2011 at the present time. However, Nokia expectsto continue to provide short-term quarterly forecasts to indicate its progressin the company's interim reports as well as annual targets when circumstancesallow it to do so. Nokia expects 2011 and 2012 to be transition years, as the company invests tobuild the planned winning ecosystem with Microsoft. After the transition, Nokiatargets longer-term: - Devices & Services net sales to grow faster than the market.- Devices & Services non-IFRS* operating margin to be 10% or more. Targets and forecasts for Nokia Siemens Networks and the mobile and fixedinfrastructure and related services market Nokia and Nokia Siemens Networks expect overall industry revenue to growslightly in 2011, compared to 2010. While growth is expected in certain areas,such as mobile broadband and services, this is expected to be offset to someextent by declines in certain areas and a continued challenging competitiveenvironment. Due to Nokia Siemens Networks' solid position in industry growth areas, Nokiaand Nokia Siemens Networks target: - Nokia Siemens Networks net sales to grow faster than the market in 2011.- Nokia Siemens Networks non-IFRS* operating margin to be above breakeven in2011. Additionally, Nokia and Nokia Siemens Networks continue to target Nokia SiemensNetworks to reduce its non-IFRS* annualized operating expenses and productionoverheads by EUR 500 million by the end of 2011, compared to the end of 2009. 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. * Non-IFRS results exclude special items for all periods. In addition, non-IFRSresults exclude intangible asset amortization, other purchase price accountingrelated items and inventory value adjustments arising from the formation ofNokia Siemens Networks and from all business acquisitions. Nokia believes thatthese non-IFRS financial measures provide meaningful supplemental informationto both management and investors regarding Nokia's performance by excluding theabove-described items that may not be indicative of Nokia's business operatingresults. These non-IFRS financial measures should not be viewed in isolation oras substitutes to the equivalent IFRS measure(s), but should be used inconjunction with the most directly comparable IFRS measure(s) in the reportedresults. 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] 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: 683Time of Receipt: Feb 11, 2011 08:30:28 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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