23rd Nov 2011 11:00
Nokia / Miscellaneous 23.11.2011 13:00 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- - Focuses on mobile network infrastructure and services market- Targets significant operating expense and production overhead savings- Plans global workforce reduction of approximately 17,000 Nokia CorporationStock Exchange ReleaseNovember 23, 2011 at 14.00 (CET+1) Espoo, Finland - Nokia Siemens Networks today announced its strategy to focuson mobile broadband and services and the launch of an extensive globalrestructuring program. 'We believe that the future of our industry is in mobile broadband and services- and we aim to be an undisputed leader in these areas,' said Rajeev Suri,chief executive officer of Nokia Siemens Networks. 'At the same time, we needto take the necessary steps to maintain long term competitiveness and improveprofitability in a challenging telecommunications market.' Strategy updateNokia Siemens Networks will target end-to-end mobile network infrastructure andservices, with a particular emphasis on mobile broadband. 'Our goal is to provide the world's most efficient mobile networks, theintelligence to maximize the value of those networks, and the servicescapability to make it all work seamlessly,' said Suri. 'Despite the need torestructure parts of our company, our commitment to research and developmentremains unchanged, with investment in mobile broadband expected to increaseover the coming years.' Nokia Siemens Networks plans to realign its business to focus on mobilebroadband (including optical), customer experience management and services. Thecompany's Services organization will further strengthen its highly-efficientglobal delivery system. Business areas not consistent with the new strategy areplanned to be divested or managed for value. Quality and innovation willcontinue to be priorities for the company, with ongoing investment in bothareas. Restructuring programNokia Siemens Networks targets to reduce its non-IFRS* annualized operatingexpenses and production overheads by EUR 1 billion by the end of 2013, comparedto the end of 2011. While these savings are expected to come largely fromorganizational streamlining, the company will also target areas such as realestate, information technology, product and service procurement costs, overallgeneral and administrative expenses, and a significant reduction of suppliersin order to further lower costs and improve quality. Nokia Siemens Networks plans to reduce its global workforce** by approximately17,000 by the end of 2013. These planned reductions are expected to be drivenby aligning the company's workforce with its new strategy as well as through arange of productivity and efficiency measures. These planned measures areexpected to include elimination of the company's matrix organizationalstructure, site consolidation, transfer of activities to global deliverycenters, consolidation of certain central functions, cost synergies from theintegration of Motorola's wireless assets, efficiencies in service operations,and company-wide process simplification. Nokia Siemens Networks will begin the process of engaging with employeerepresentatives in accordance with country-specific legal requirements to findsocially responsible means to address these reduction needs. More informationwill be shared in impacted countries as the process proceeds. In order toreduce the impact of the planned reductions, Nokia Siemens Networks intends tolaunch locally led programs at the most affected sites to provide re-trainingand re-employment support. 'As we look towards the prospect of an independent future, we need to takeaction now to improve our profitability and cash generation,' said Suri. 'Theseplanned reductions are regrettable but necessary - and it is our goal to makethem in a fair and responsible way, providing the support we can to employeesand communities.' Conference Call and WebcastNokia Siemens Networks will host a conference call for media beginning at 15:00pm (EET) 14:00 pm (CET) on Wednesday, November 23. The conference call will bewebcast live with audio at: www.nokiasiemensnetworks.com/webcast A dial-in option is also available.Telephone number: +44 (0) 203 106 4822Confirmation code: 4484071A replay of the webcast will be available shortly after the conclusion of theevent. About Nokia Siemens NetworksNokia Siemens Networks is a leading global enabler of telecommunicationsservices. With its focus on innovation and sustainability, the company providesa complete portfolio of mobile, fixed and converged network technology, as wellas professional services including consultancy and systems integration,deployment, maintenance and managed services. It is one of the largesttelecommunications hardware, software and professional services companies inthe world. Operating in 150 countries, its headquarters are in Espoo, Finland.www.nokiasiemensnetworks.com Talk about Nokia Siemens Networks' news athttp://blogs.nokiasiemensnetworks.com and find out if your country isexploiting the full potential of connectivity at www.connectivityscorecard.org About NokiaNokia is a global leader in mobile communications whose products have become anintegral part of the lives of people around the world. Every day, more than 1.3billion people use their Nokia to capture and share experiences, accessinformation, find their way or simply to speak to one another. Nokia'stechnological and design innovations have made its brand one of the mostrecognized in the world. For more information, visithttp://www.nokia.com/about-nokia NOKIA FORWARD-LOOKING STATEMENTSIt should be noted that certain statements herein which are not historicalfacts are forward-looking statements, including, without limitation, thoseregarding: A) the expected plans and benefits of our strategic partnership withMicrosoft to combine complementary assets and expertise to form a global mobileecosystem and to adopt Windows Phone as our primary smartphone platform; B) thetiming and expected benefits of our new strategy, including expectedoperational and financial benefits and targets as well as changes in leadershipand operational structure; C) the timing of the deliveries of our products andservices; D) our ability to innovate, develop, execute and commercialize newtechnologies, products and services; E) expectations regarding marketdevelopments and structural changes; F) expectations and targets regarding ourindustry volumes, market share, prices, net sales and margins of products andservices; G) expectations and targets regarding our operational priorities andresults of operations; H) expectations and targets regarding collaboration andpartnering arrangements; I) the outcome of pending and threatened litigation;J) expectations regarding the successful completion of acquisitions orrestructurings on a timely basis and our ability to achieve the financial andoperational targets set in connection with any such acquisition orrestructuring; and K) statements preceded by 'believe,' 'expect,' 'anticipate,''foresee,' 'target,' 'estimate,' 'designed,' 'plans,' 'will' or similarexpressions. These statements are based on management's best assumptions andbeliefs in light of the information currently available to it. Because theyinvolve risks and uncertainties, actual results may differ materially from theresults that we currently expect. Factors that could cause these differencesinclude, but are not limited to: 1) our ability to succeed in creating acompetitive smartphone platform for high-quality differentiated winningsmartphones or in creating new sources of revenue through our partnership withMicrosoft; 2) the expected timing of the planned transition to Windows Phone asour primary smartphone platform and the introduction of mobile products basedon that platform; 3) our ability to maintain the viability of our currentSymbian smartphone platform during the transition to Windows Phone as ourprimary smartphone platform; 4) our ability to realize a return on ourinvestment in MeeGo and next generation devices, platforms and userexperiences; 5) our ability to build a competitive and profitable globalecosystem of sufficient scale, attractiveness and value to all participants andto bring winning smartphones to the market in a timely manner; 6) our abilityto produce mobile phones in a timely and cost efficient manner withdifferentiated hardware, localized services and applications; 7) our ability toincrease our speed of innovation, product development and execution to bringnew competitive smartphones and mobile phones to the market in a timely manner;8) our ability to retain, motivate, develop and recruit appropriately skilledemployees; 9) our ability to implement our strategies, particularly our newmobile product strategy; 10) the intensity of competition in the variousmarkets where we do business and our ability to maintain or improve our marketposition or respond successfully to changes in the competitive environment; 11)our ability to maintain and leverage our traditional strengths in the mobileproduct market if we are unable to retain the loyalty of our mobile operatorand distributor customers and consumers as a result of the implementation ofour new strategy or other factors; 12) our success in collaboration andpartnering arrangements with third parties, including Microsoft; 13) thesuccess, financial condition and performance of our suppliers, collaborationpartners and customers; 14) our ability to source sufficient quantities offully functional quality components, subassemblies and software on a timelybasis without interruption and on favorable terms, including the disruption ofproduction and/or deliveries from any of our suppliers as a result of adverseconditions in the geographic areas where they are located; 15) our ability tomanage efficiently our manufacturing, service creation, delivery and logisticswithout interruption; 16) our ability to ensure the timely delivery ofsufficient volumes of products that meet our and our customers' and consumers'requirements and manage our inventory and timely adapt our supply to meetchanging demands for our products; 17) any actual or even alleged defects orother quality, safety and security issues in our products; 18) any actual oralleged loss, improper disclosure or leakage of any personal or consumer datacollected or made available to us or stored in or through our products; 19) ourability to successfully manage costs, including our ability to achieve targetedcosts reductions and to effectively and timely execute related restructuringmeasures, including personnel reductions; 20) our ability to effectively andsmoothly implement the new operational structure for our businesses; 21) thedevelopment of the mobile and fixed communications industry and generaleconomic conditions globally and regionally; 22) exchange rate fluctuations,including, in particular, fluctuations between the euro, which is our reportingcurrency, and the US dollar, the Japanese yen and the Chinese yuan, as well ascertain other currencies; 23) our ability to protect the technologies, which weor others develop or that we license, from claims that we have infringed thirdparties' intellectual property rights, as well as our unrestricted use oncommercially acceptable terms of certain technologies in our products andservices; 24) our ability to protect numerous Nokia, NAVTEQ and Nokia SiemensNetworks patented, standardized or proprietary technologies from third-partyinfringement or actions to invalidate the intellectual property rights of thesetechnologies; 25) the impact of changes in government policies, trade policies,laws or regulations and economic or political turmoil in countries where ourassets are located and we do business; 26) any disruption to informationtechnology systems and networks that our operations rely on; 27) unfavorableoutcome of litigations; 28) allegations of possible health risks fromelectromagnetic fields generated by base stations and mobile products andlawsuits related to them, regardless of merit; 29) our ability to achievetargeted costs reductions and increase profitability in Nokia Siemens Networksand to effectively and timely execute related restructuring measures; 30) NokiaSiemens Networks' ability to maintain or improve its market position or respondsuccessfully to changes in the competitive environment; 31) Nokia SiemensNetworks' liquidity and its ability to meet its working capital requirements;32) whether Nokia Siemens Networks is able to successfully integrate theacquired assets of Motorola Solutions' networks business, retain existingcustomers of the acquired business, cross-sell Nokia Siemens Networks' productsand services to customers of the acquired business and otherwise realize theexpected synergies and benefits of the acquisition; 33) Nokia Siemens Networks'ability to timely introduce new products, services, upgrades and technologies;34) Nokia Siemens Networks' success in the telecommunications infrastructureservices market and Nokia Siemens Networks' ability to effectively andprofitably adapt its business and operations in a timely manner to theincreasingly diverse service needs of its customers; 35) developments underlarge, multi-year contracts or in relation to major customers in the networksinfrastructure and related services business; 36) the management of ourcustomer financing exposure, particularly in the networks infrastructure andrelated services business; 37) whether ongoing or any additional governmentalinvestigations into alleged violations of law by some former employees ofSiemens AG may involve and affect the carrier-related assets and employeestransferred by Siemens AG to Nokia Siemens Networks; 38) any impairment ofNokia Siemens Networks customer relationships resulting from ongoing or anyadditional governmental investigations involving the Siemens carrier-relatedoperations transferred to Nokia Siemens Networks; as well as the risk factorsspecified on pages 12-39 of Nokia's annual report Form 20-F for the year endedDecember 31, 2010 under Item 3D. 'Risk Factors.' Other unknown or unpredictablefactors or underlying assumptions subsequently proving to be incorrect couldcause actual results to differ materially from those in the forward-lookingstatements. Nokia does not undertake any obligation to publicly update orrevise forward-looking statements, whether as a result of new information,future events or otherwise, except to the extent legally required. Media Enquiries Nokia Siemens NetworksMedia RelationsPhone: +358 7180 31451E-mail: [email protected] Notes:* 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. ** The total global workforce of Nokia Siemens Networks on 1 November 2011 wasapproximately 74,000.News Source: NASDAQ OMX 23.11.2011 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: 944Time of Receipt: Nov 23, 2011 13:00:12 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.
Related Shares:
Nokia Ord