Request-02 Timo Ihamuotila Webcast

8/4/2019 Request-02 Timo Ihamuotila Webcast

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Nokia Strategy andFinancial Briefing

Timo Ihamuotila

CFO

February 11, 2011


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Expected Industry Trends: Revenue and Ma

Copyright 2011 Nokia

Europe

12%

4%

Latin America

5%

22%

Greater China

24%

10%

Middle East &

Africa

13%

26%

Asia Pacific

7%

13%

Source: Nokia estimates

ApproxReven

2010-2

Total dev

Smartph

but m

industr

expecte

under p

longer-

Smartphone market

Total device market

Nokia America

7%

14%

Approximate Revenue CAGR by Geographic Area, 2010-2014


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Devices & Services: Nokia Must Change Faste


22

24

26

28

30

32

34

36

38

40

2007 2008 200

M

arketshare%

Volume market share

o

Value (net sales)market share

Actual Results

*Note: Targets set on Dec 2, 2009; Does not reflect updates made during 2010Source: Nokia estimates

Nokia mobile device volume

market share flat, compared

to 2009

Nokia mobile device value

market share up slightly,

compared to 2009

Non-IFRS operating margin:

12-14%

Original 2010 Targets,

as Set at 2009 CMD*


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Speed, Results &Accountability


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Two Separate Business Units Leveraging NoAssets


Brand

Logistics & Manufacturing

Distr

Hardware

Scale

Operator R

Under the planned partnership with Microsoft, we would adopt Windows Phone as our primary smartphone platform


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Two Separate Business Units Leveraging NoAssets


Store

Location

Based

ServicesIPR

Under the planned partnership with Microsoft, we would adopt Windows Phone as our primary smartphone platform


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Expected FinancialImpact from PlannedMicrosoft Partnership


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Maximize Shareholder Value vs. Alternative


Sustainable

Differentiation

Long-term benefits to

Net Sales and Margins

Royalty Payments

to MicrosoftLower Gross Margin %

Sales and Marketing Support

from MicrosoftLower S&M OPEX

Focus on Differentiation Lower R&D OPEX

Services Partnership Enhanced Monetization Potential

Winning Ecosystem with Microsoft

Note: Subject to execution of the definitive agreements with Microsoft


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Devices & ServicesLonger-Term Targets


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Post-Transition Financial Targets

Longer-Term Financial Targets

D&S Net Sales: grow faster than the market

D&S Non-IFRS Operating Margin: 10% or more



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Transition Period


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Mobile Devices Net Sales Mix


% of

Net Sales

100%

Windows PhoneSymbian

Mobile Phones

(Note: MeeGo net sales not illustrated)

For illustrative purposes only; Not a forecast


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Mobile Phones: Web for the Next Billion


Strong Market Position Unique Services Assets

and Local capabilities

Bring Mo

Experie

Pric


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Focus Our Direct R&D Investment

For illustrative purposes only; Does not represent total R&D spend; Not a forecast

Longer-Term2010

Services

Symbian

Services

Mobile PhonesPlatforms

Mobile PhonesPlatforms


MeeGo

WindowsPhone


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Nokia SiemensNetworks and

NAVTEQ


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Nokia Siemens Networks Key Priorities

In 2010, Nokia Siemens Network delivered on key prior

Driving for growth

Cost leadership

Reinvigorating the organization

In 2011, Nokia Siemens Networks key priorities include

Driving for growth

Driving for value



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Nokia Siemens Networks 2011 Targets

Nokia and Nokia Siemens Networks target overall industry

revenue to grow slightly in 2011, compared to 2010.

Nokia and Nokia Siemens Networks target:

Net sales growth to outperform the market in 2011.

Non-IFRS operating margin to be above breakeven in 2011.

To reduce non-IFRS annualized operating expenses and produ

overheads by EUR 500 million by the end of 2011, compared t

end of 2009.



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NAVTEQ Overview


Competitive industry environment.

Longer-term, NAVTEQ is expected to benefit from Nokias plapartnership with Microsoft.


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Summary


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Thank you.

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Request-02 Timo Ihamuotila Webcast