AMSTERDAM, The Netherlands, December 4 /PRNewswire-FirstCall/ -- At its
annual investor event today, Nokia (NYSE:NOK) presented key targets and
forecasts for the next one to two years, while senior company executives
described how Nokia's advantages as the leading device company underpin its
strategic move into Internet services.
In his keynote address, Nokia President and CEO Olli-Pekka Kallasvuo
said: "We have made great strides in strengthening Nokia's device portfolio
over the past year. The improvements we've made have driven the profitable
growth and market share gains Nokia has enjoyed in 2007, and we aim to
continue the good momentum in our device portfolio next year."
Speaking about Nokia's opportunities in Internet services, Kallasvuo
said: "Nokia's goal is to be the world #1 in bringing the Internet to
mobile devices. We estimate that in 2010, the total Internet services
market will be approximately 100 billion euros."
Nokia Financial Targets
(excluding special items, purchase price accounting, and the pending
acquisition of NAVTEQ)
- Nokia Group operating margin of 16-17% targeted within the next one
to two years. This target is revised from the one to two year 15% operating
margin target Nokia gave in November 2006.
- Nokia Devices & Services operating margin targeted to be
approximately 20% during the next one to two years.* (see reconciliation
below).
- Nokia Siemens Networks' target operating margin increasing to 10% by
the end of 2009.
- Nokia targets an improvement in the ratio of Nokia Group gross margin
to R&D expenses and an improvement in the ratio of Nokia Group gross margin
to sales and marketing expenses in 2008, compared to 2007.
Targets and Forecasts for Nokia and the Industry
Nokia aims:
- To increase its market share in mobile devices in 2008.
Nokia expects: - Industry mobile device volumes in 2008 to grow approximately 10% from
the approximately 1.1 billion units Nokia estimates for 2007.
- Industry mobile device volume growth in 2008 to be above 15% in
Asia-Pacific, China and Middle East & Africa, and below 10% in North
America, Europe and Latin America.
- Nokia expects the device industry to experience value growth in 2008,
but expects some decline in industry Average Selling Prices (ASPs)
primarily reflecting the increasing impact of the emerging markets and
competitive factors in general.
- The four billion mobile subscriptions mark to be reached in 2009,
rather than in 2010 as previously forecasted.
- The converged device market to reach approximately 120 million units
in 2007 and 180 million units in 2008.
- To ship approximately 200 million Nokia devices with an integrated
digital camera in 2007 and more than 250 million units in 2008.
- To ship approximately 145 million Nokia music-enabled devices in 2007
and more than 180 million units in 2008.
Nokia and Nokia Siemens Networks Forecasts and Targets for the
Infrastructure Market and Nokia Siemens Networks
- Nokia expects very slight growth for the mobile and fixed
infrastructure and related services market in euro terms in 2008.
- Nokia Siemens Networks aims to grow faster than the market in 2008.
* Devices & Services is not comparable to the current definition of
"Devices", consisting of Mobile Phones and Multimedia combined, but is
based on what will be the reportable business segment under our new
organizational structure starting January 1, 2008. Devices & Services will
be comprised of the totality of the existing Mobile Phones, Multimedia and
Enterprise Solutions business groups - and will also include expenses
previously reported under "Common Group Functions". A comparable figure for
Devices & Services operating margin for the period Q1-Q3 2007 was
approximately 19%.
The main presentations at Nokia Capital Market Days will be webcast
live at: http://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, service and solution deliveries; B) our ability to
develop, implement and commercialize new products, services, solutions and
technologies; C) expectations regarding market growth, developments and
structural changes; D) expectations regarding our mobile device volume
growth, market share, prices and margins; E) expectations and targets for
our results of operations; F) the outcome of pending and threatened
litigation; G) expectations regarding the successful completion of
contemplated acquisitions on a timely basis and our ability to achieve set
targets upon the completion of such acquisitions; and H) 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) competitiveness
of our product portfolio; 2) our ability to identify key market trends and
to respond timely and successfully to the needs of our customers; 3) the
extent of the growth of the mobile communications industry, as well as the
growth and profitability of the new market segments within that industry
which we target; 4) the availability of new products and services by
network operators and other market participants; 5) our ability to
successfully manage costs; 6) the intensity of competition in the mobile
communications industry and our ability to maintain or improve our market
position and respond successfully to changes in the competitive landscape;
7) the impact of changes in technology and our ability to develop or
otherwise acquire complex technologies as required by the market, with full
rights needed to use; 8) timely and successful commercialization of complex
technologies as new advanced products, services and solutions; 9) 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 solution offerings; 10) our ability to protect numerous Nokia
patented, standardized, or proprietary technologies from third party
infringement or actions to invalidate the intellectual property rights of
these technologies; 11) 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; 12) inventory
management risks resulting from shifts in market demand; 13) our ability to
source quality components and sub-assemblies without interruption and at
acceptable prices; 14) Nokia's and Siemens' ability to successfully
integrate the operations, personnel and supporting activities of their
respective businesses as a result of the merger of Nokia's networks
business and Siemens' carrier-related operations for fixed and mobile
networks forming Nokia Siemens Networks; 15) whether, as a result of
investigations into alleged violations of law by some current or former
employees of Siemens, government authorities or others take 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 ongoing violations that may occur
after the transfer, of such assets and employees that could result in
additional actions by government authorities; 16) the expense, time,
attention and resources of Nokia Siemens Networks and our management to
detect, investigate and resolve any situations related to alleged
violations of law involving the assets and employees of Siemens
carrier-related operations transferred to Nokia Siemens Networks; 17) 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; 18) developments under
large, multi-year contracts or in relation to major customers; 19) general
economic conditions globally and, in particular, economic or political
turmoil in emerging market countries where we do business; 20) our success
in collaboration arrangements relating to development of technologies or
new products, services and solutions; 21) the success, financial condition
and performance of our collaboration partners, suppliers and customers; 22)
any disruption to information technology systems and networks that our
operations rely on; 23) exchange rate fluctuations, including, in
particular, fluctuations between the euro, which is our reporting currency,
and the US dollar, the Chinese yuan, the UK pound sterling and the Japanese
yen, as well as certain other currencies; 24) the management of our
customer financing exposure; 25) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices and
lawsuits related to them, regardless of merit; 26) unfavorable outcome of
litigations; 27) our ability to recruit, retain and develop appropriately
skilled employees; and 28) the impact of changes in government policies,
laws or regulations; as well as the risk factors specified on pages 12-24
of Nokia's annual report on Form 20-F for the year ended December 31, 2006
under "Item 3.D 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 update publicly or
revise forward-looking statements, whether as a result of new information,
future events or otherwise, except to the extent legally required.
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SOURCE Nokia Corporation
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