Nokia appoints Ramzi Haidamus to head Nokia Technologies and as member of the Nokia Group Leadership Team

Nokia appoints Ramzi Haidamus to head Nokia Technologies and as member of the Nokia Group Leadership Team

Nokia Corporation
Stock exchange release
July 24, 2014 at 12:35 (CET +1)

Espoo, Finland - Nokia today announced the appointment of Ramzi Haidamus, a technology-licensing expert with proven business leadership skills and a strong innovation background, as President of Nokia's technologies business and member of the Group Leadership team, with effect from September 3, 2014.

A trained engineer, Haidamus has spent most of his career with Dolby Laboratories, which he helped to grow from a USD 72 million private business into a nearly USD 1 billion thriving public company. During his 17 years with Dolby, he held a variety of roles, most recently with chief operating officer-level responsibility. He has led innovation efforts, including those related to Dolby's technological roadmaps and standards development for DVD and BluRay.  He has experience in nurturing new technologies in an incubator-like environment and in growing new businesses, including as President of Via Licensing Corporation, a Dolby subsidiary.

"Ramzi has the perfect blend of technology savvy, business leadership and innovation experience to head our cutting-edge technologies business," said Rajeev Suri, President and Chief Executive Officer of Nokia. "With Ramzi at the head of the world-class Nokia Technologies team and our continuing investment in advanced research and development, we are well-positioned to drive the innovation and licensing business needed to move us closer to our goal of technology leadership in a world where everyone and everything is connected."

"I am honored to take on this exciting role at Nokia," said Haidamus, incoming President of Nokia Technologies. "I relish the opportunity to head Nokia's ground-breaking technologies business with its track record of innovation and team of hundreds of world-class scientists and engineers. These experts have driven more than half of Nokia's recent patent filings and are leaders in fields that are essential for enabling the connected world."

Born in Lebanon, Haidamus moved at the age of 17 to the US, where he completed his Bachelor's and Master's degrees in electrical engineering at the University of the Pacific.

Henry Tirri, who has served as acting head of Nokia Technologies business since its formation on May 1, 2014, will continue in this role until Haidamus joins on September 3, 2014. From that date, Tirri will step down from the Group Leadership Team and will become an advisor to Suri on technology issues.

"We are grateful to Henry for all his work for Nokia over the years and for his willingness to lead the Nokia Technologies team during an important time of change and transition," said Suri. "Henry has graciously agreed to support Ramzi as he transitions into the company. Henry has unique insights into the world of technology, and I am pleased that we will continue to benefit from his expertise throughout this year and possibly beyond."

 

A photo of Ramzi Haidamus can be downloaded at: http://nokia.ly/1uhFQTS

FORWARD-LOOKING STATEMENTS

It should be noted that Nokia and its business are exposed to various risks and uncertainties and certain statements herein that are not historical facts are forward-looking statements, including, without limitation, those regarding: A) expectations, plans or benefits related to Nokia's strategies; B) expectations, plans or benefits related to future performance of Nokia's continuing businesses Nokia Networks, HERE and Nokia Technologies; C) expectations, plans or benefits related to changes in leadership and operational structure; D) expectations regarding market developments, general economic conditions and structural changes; E) expectations and targets regarding performance, including those related to market share, prices, net sales and margins; F) the timing of the deliveries of our products and services; G) expectations and targets regarding our financial performance, cost savings and competitiveness, as well as results of operations; H) expectations and targets regarding collaboration and partnering arrangements; I) the outcome of pending and threatened litigation, arbitration, disputes, regulatory proceedings or investigations by authorities; J) expectations regarding restructurings, investments, uses of proceeds from transactions, acquisitions and divestments and our ability to achieve the financial and operational targets set in connection with any such restructurings, investments, divestments and acquisitions, including any expectations, plans or benefits related to or caused by the transaction announced on September 3, 2013 where Nokia sold substantially all of the Devices & Services business to Microsoft on April 25, 2014 ("Sale of the D&S Business"); K) statements preceded by or including "believe," "expect," "anticipate," "foresee," "sees," "target," "estimate," "designed," "aim", "plans," "intends," "focus", "continue", "project", "should", "will" or similar expressions. 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, including risks and uncertainties that could cause these differences include, but are not limited to: 1) our ability to execute our strategies successfully and in a timely manner, and our ability to successfully adjust our operations; 2) our ability to sustain or improve the operational and financial performance of our continuing businesses and correctly identify business opportunities or successfully pursue new business opportunities; 3) our ability to execute Nokia Networks' strategy and effectively, profitably and timely adapt its business and operations to the increasingly diverse needs of its customers and technological developments; 4) our ability within our Nokia Networks business to effectively and profitably invest in and timely introduce new competitive high-quality products, services, upgrades and technologies; 5) our ability to invent new relevant technologies, products and services, to develop and maintain our intellectual property portfolio and to maintain the existing sources of intellectual property related revenue and establish new such sources; 6) our ability to protect numerous patented standardized or proprietary technologies from third-party infringement or actions to invalidate the intellectual property rights of these technologies; 7) our ability within our HERE business to maintain current sources of revenue, historically derived mainly from the automotive industry, create new sources of revenue, establish a successful location-based platform and extend our location-based services across devices and operating systems; 8) effects of impairments or charges to carrying values of assets, including goodwill, or liabilities; 9) our dependence on the development of the mobile and communications industry in numerous diverse markets, as well as on general economic conditions globally and regionally; 10) Nokia Networks business' dependence on a limited number of customers and large, multi-year contracts; 11) our ability to retain, motivate, develop and recruit appropriately skilled employees; 12) the potential complex tax issues and obligations we may face, including the obligation to pay additional taxes in various jurisdictions and our actual or anticipated performance, among other factors, could result in allowances related to deferred tax assets; 13) our ability to manage our manufacturing, service creation and delivery, and logistics efficiently and without interruption, especially if the limited number of suppliers we depend on fail to deliver sufficient quantities of fully functional products and components or deliver timely services; 14) potential exposure to contingent liabilities due to the Sale of the D&S Business and possibility that the agreements we have entered into with Microsoft may have terms that prove to be unfavorable to us; 15) any inefficiency, malfunction or disruption of a system or network that our operations rely on or any impact of a possible cybersecurity breach; 16) our ability to reach targeted results or improvements by managing and improving our financial performance, cost savings and competitiveness; 17) management of Nokia Networks' customer financing exposure; 18) the performance of the parties we partner and collaborate with, and our ability to achieve successful collaboration or partnering arrangements; 19) our ability to protect the technologies, which we develop, license, use or intend to use from claims that we have infringed third parties' intellectual property rights, as well as, impact of possible licensing costs, restriction on our usage of certain technologies, and litigation related to intellectual property rights; 20) the impact of regulatory, political or other developments on our operations and sales in those various countries or regions where we do business; 21) exchange rate fluctuations, particularly between the euro, which is our reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain other currencies; 22) our ability to successfully implement planned transactions, such as acquisitions, divestments, mergers or joint ventures, manage unexpected liabilities related thereto and achieve the targeted benefits; 23) the impact of unfavorable outcome of litigation, arbitration, contract related disputes or allegations of health hazards associated with our business, as well as the risk factors specified on pages 12-35 of Nokia's annual report on Form 20-F for the year ended December 31, 2013 under Item 3D. "Risk Factors" and in our Interim Report issued on July 24, 2014. Other unknown or unpredictable factors or underlying assumptions subsequently proven to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

About Nokia

Nokia invests in technologies important in a world where billions of devices are connected. We are focused on three businesses: network infrastructure software, hardware and services, which we offer through Nokia Networks; location intelligence, which we provide through HERE; and advanced technology development and licensing, which we pursue through Nokia Technologies. Each of these businesses is a leader in its respective field. http://company.nokia.com

Nokia Technologies develops and licenses cutting-edge innovations that are powering the next revolution in computing and mobility: a "programmable world" where intelligent connections bring millions of everyday objects online and create exciting new possibilities. At the heart of Nokia Technologies is a world-class research and development program. In partnership with leading universities around the world, it expands on Nokia's leading role in creating and shaping fundamental technologies and standards enabling most mobile computing products and wireless communications used today. Our scientists, engineers and licensing experts draw deep expertise in areas ranging from imaging and sensing, wireless connectivity and power management, to advanced materials and beyond.

Media Enquiries

Nokia
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com

 

 

 

---

If you wish to unsubscribe please go to: http://company.nokia.com/en/news/press-releases/subscribe

---

Nokia nimittää Ramzi Haidamuksen Nokia Technologies -liiketoiminnan johtajaksi ja Nokian johtokunnan jäseneksi

Nokia nimittää Ramzi Haidamuksen Nokia Technologies -liiketoiminnan johtajaksi ja Nokian johtokunnan jäseneksi

Nokia Oyj
Pörssitiedote
24.7.2014 klo 12.35

Nokia ilmoitti tänään nimittäneensä Ramzi Haidamuksen Nokia Technologies -liiketoiminnan johtajaksi ja Nokian johtokunnan jäseneksi alkaen 3. syyskuuta 2014. Haidamus on teknologialisensoinnin asiantuntija, ja hänellä on vahva kokemus liiketoiminnan johtamisesta ja innovoinnista.

Haidamus on insinööri, joka on työskennellyt valtaosan urastaan Dolby Laboratories -yhtiössä, joka hänen myötävaikutuksellaan kasvoi 72 miljoonan dollarin yhtiöstä lähes miljardin dollarin menestyväksi pörssiyhtiöksi. Haidamus on työskennellyt Dolbyssa 17 vuotta useissa tehtävissä, viimeksi operatiivisissa johtotehtävissä. Hän on johtanut useita innovaatiohankkeita, mukaan lukien Dolbyn DVD- ja Blu Ray -standardien ja -teknologioiden kehitystä. Hänellä on kokemusta uusien teknologioiden kehittämisestä yrityshautomotyyppisessä ympäristössä sekä uuden liiketoiminnan kasvattamisesta, muun muassa Dolbyn tytäryhtiön Via Licencing Corporationin toimitusjohtajana.

"Ramzilla on erinomainen yhdistelmä teknologiaosaamista, johtamistaitoa ja innovaatiokokemusta johtamaan huippuluokan teknologialiiketoimintaamme", sanoo Nokian toimitusjohtaja Rajeev Suri. "Saatuamme Ramzin Nokia Technologies -liiketoimintamme johtajaksi ja jatkaessamme investointeja tutkimukseen ja kehitykseen olemme erinomaisessa asemassa kehittää innovaatio- ja lisensointiliiketoimintaamme. Tämä vie meidät kohti tavoitettamme olla teknologiajohtaja maailmassa, jossa kaikki - niin ihmiset kuin laitteet - voivat olla yhteydessä toisiinsa."

"Minulle on kunnia tulla nimitetyksi tähän erittäin mielenkiintoiseen tehtävään Nokiassa", sanoo Nokia Technologies -liiketoiminnan johtajaksi nimitetty Haidamus. "Olen erittäin iloinen saadessani tilaisuuden johtaa Nokian uraauurtavaa teknologialiiketoimintaa, jolla on vaikuttavat innovaatioansiot, ja jonka palveluksessa on satoja maailman johtavia tiedemiehiä ja insinöörejä. Nämä asiantuntijat ovat luoneet yli puolet Nokian viimeaikaisista patenteista ja ovat johtavia asiantuntijoita monilla olennaisilla Internetiin kytketyn maailman mahdollistavilla alueilla."

Haidamus syntyi Libanonissa ja muutti 17-vuotiaana USA:han, jossa hän suoritti sähkötekniikan Bachelor ja Master -tutkinnot University of the Pacific -yliopistossa.

Nokia Technologies -liiketoiminnan virkaatekevänä johtajana sen perustamisesta 1.5.2014 alkaen toiminut Henry Tirri jatkaa tehtävässä kunnes Haidamus aloittaa 3.9.2014. Tällöin Tirri jää pois Nokian johtokunnasta, ja jatkaa Surin teknologianeuvonantajana. 

"Olemme kiitollisia Henrylle hänen vuosia jatkuneesta työstään Nokian hyväksi ja siitä, että hän halusi ottaa Nokia Technologies -tiimin johtoonsa tärkeänä muutoksen aikana", Suri sanoo. "Henry on luvannut tukea Ramzia hänen perehtyessään yritykseemme. Henryllä on ainutlaatuinen tuntemus teknologian maailmasta, ja olen hyvin kiitollinen voidessamme hyödyntää hänen asiantuntijuuttaan tämän vuoden ajan ja mahdollisesti pidempään".

 

Ramzi Haidamuksen valokuva on ladattavissa osoitteessa: http://nokia.ly/1uhFQTS

 

TULEVAISUUDENNÄKYMIIN LIITTYVÄT KANNANOTOT

On otettava huomioon, että Nokiaan ja sen liiketoimintaan liittyy erilaisia riskejä ja epävarmuustekijöitä ja että tähän tiedotteeseen sisältyvät, muut kuin jo toteutuneita seikkoja koskevat lausumat, ovat tulevaisuudennäkymiin liittyviä kannanottoja. Näitä ovat esimerkiksi: A) oletukset, suunnitelmat tai hyödyt liittyen Nokian strategioihin; B) oletukset, suunnitelmat tai hyödyt liittyen Nokian jatkuvien liiketoimintojen, Nokia Networks, HERE ja Nokia Technologies, tulevaan tulokseen; C) oletukset, suunnitelman ja hyödyt liittyen muutoksiin johdossamme ja toiminnallisessa rakenteessamme; D) oletukset markkinoiden kehittymisestä ja yleisestä taloudellisesta tilanteesta ja rakenteellisista muutoksista; E) oletukset ja tavoitteet koskien suoriutumista, mukaan lukien markkinaosuus, hinnat, liikevaihto ja tuotteidemme ja palveluidemme katteet; F) tuotteidemme ja palveluidemme toimitusten ajoitus; G) oletukset ja tavoitteet koskien taloudellista tulostamme, kulujen säästämistä ja kilpailukykyisyyttä sekä toiminnan tulosta; H) oletukset ja tavoitteet koskien yhteistyö- ja kumppanuusjärjestelyitä; I) vireillä olevien ja mahdollisesti tulevien oikeudenkäyntien, välimiesmenettelyiden, hallinnollisten menettelyjen ja viranomaistutkimusten lopputulos; J) oletukset koskien uudelleenjärjestelyitä, investointeja, yritysjärjestelyistä saatavien tulojen käyttöä, divestointeja ja yrityskauppoja ja kykymme saavuttaa näiden uudelleenjärjestelyjen, investointien, divestointien ja yrityskauppojen yhteydessä asetetut taloudelliset ja toiminnalliset tavoitteet, mukaan lukien oletukset, suunnitelmat ja hyödyt liittyen 3.9.2013 julkistettuun yrityskauppaan, jossa Nokia myi olennaisilta osin koko sen Devices & Services liiketoiminnan Microsoftille 25.4.2014 (D&S-liiketoiminnan Myynti); K) lausumat, joissa esiintyy sana "uskoa", "odottaa", "ennakoida", "ennustaa", "näkee", "tavoitella", "arvioida", "on tarkoitettu", "tähdätä", "suunnitella", "aikoa", "keskittyä", "jatkaa", "arviomme mukaan", "pitäisi", "tulee tekemään" tai muu vastaava ilmaisu. Tällaiset lausumat perustuvat johdon parhaaseen arvioon ja uskoon sen tiedon valossa, joka sillä on kyseisellä hetkellä ollut saatavilla. Koska tällaisiin lausumiin sisältyy riskejä ja epävarmuuksia, todelliset tulokset voivat poiketa huomattavasti niistä tuloksista, joita tällä hetkellä odotamme. Tekijöitä, mukaan lukien riskejä ja epävarmuustekijöitä, jotka saattaisivat aiheuttaa tällaisia poikkeamia voivat olla esimerkiksi: 1) kykymme toteuttaa strategioitamme onnistuneesti tai oikea-aikaisesti ja kykymme sopeuttaa toimintaamme; 2) Kykymme säilyttää ja parantaa jatkuvien liiketoimintojemme toiminnallista ja taloudellista tulosta ja tunnistaa liiketoimintamahdollisuuksia tai menestyksekkäästi harjoittaa uusia liiketoimintamahdollisuuksia; 3) kykymme toteuttaa Nokia Networksin strategia ja tehokkaasti, kannattavasti ja oikea aikaisesti sopeuttaa sen liiketoiminta ja vastata asiakkaiden kasvavaan tarpeeseen erilaisiin sovelluksiin tai tekniseen kehitykseen; 4) kykymme Nokia Networksin liiketoiminnassa tehokkaasti ja kannattavasti ja oikea-aikaisesti sijoittaa uusiin kilpailukykyisiin ja korkealatuisiin tuotteisiin, palveluihin, uudistuksiin ja teknologioihin; 5) kykymme keksiä uusia relevantteja teknologioita, tuotteita ja palveluita, kehittää ja ylläpitää teollisuusoikeuksiemme salkkua ja ylläpitää nykyisiä teollisuusoikeuksien tulonlähteitä sekä keksiä uusia sellaisia; 6) kykymme suojella lukuisia patentoituja standardisoituja tai Nokian omia teknologioita kolmansien osapuolien rikkomuksilta ja toimilta mitätöidä näiden teknologioiden teollisuusoikeuksia; 7) kykymme ylläpitää HERE-liiketoiminnassa tämänhetkisiä tulonlähteitä, jotka HERE-liiketoiminta on historiallisesti saanut pääosin autoteollisuudesta, onnistua luomaan uusia tulonlähteitä, menestyksekäs paikkatietoalusta ja laajentamaan paikkatietopalveluitamme kattamaan yhä useampia laitteita ja käyttöjärjestelmiä; 8) kulukirjausten ja arvonalentumisten vaikutukset, mukaan lukien liikearvo ja vastuut; 9) riippuvuutemme langattoman viestinnän ja viestinnän toimialojen kehityksestä useilla eri markkinoilla, sekä yleisestä maailmanlaajuisesta ja alueellisesta taloudellisesta tilanteesta; 10) Nokia Networks-liiketoiminnan riippuvuus suppeasta määrästä asiakkaita ja laajoista, monivuotisista sopimuksista; 11) kykymme pitää palveluksessa, kannustaa, kehittää ja rekrytoida osaavia työntekijöitä; 12) potentiaaliset monitahoiset veroihin liittyvät seikat ja velvoitteet, joiden nojalla meille voi tulla maksettavaksi lisää veroja eri lainkäyttöalueilla, sekä se, että todellinen tai oletettu tuloksemme, muiden tekijöiden ohella, voi vaatia kirjanpitoarvon vähennyksiä laskennallisissa verosaatavissa; 13) kykymme hallinnoida tuotantoamme, palvelukehitystämme ja toimitusta sekä logistiikkaamme tehokkaasti ja keskeytyksittä, erityisesti, jos rajoitettu määrä toimittajia, joista olemme riippuvaisia ei välttämättä pysty toimittamaan riittävää määrää täysin toimivia tuotteita ja komponentteja tai ajoissa toimittamaan palveluita; 14) D&S-liiketoiminnan Myynti voi altistaa meidät taseen ulkopuolisille vastuille, ja sopimukset, joita olemme tehneet Microsoftin kanssa voivat sisältää ehtoja, jotka osoittautuvat meille epäedullisiksi; 15) tehottomuus-, toiminta- tai muu häiriö tietoliikennejärjestelmissä tai verkoissa, joista toimintamme on riippuvaista tai mahdollinen kybertietoturvamurto; 16) kykymme saavuttaa tavoitteet tai tavoitellut parannukset liittyen tavoiteltuihin tulosparannuksiin, kulusäästöihin tai kilpailukykyisyyteen; 17) Nokia Networksin asiakasrahoitusriskien hallinta; 18) yhteistyökumppaneidemme ja partnereidemme suorituskyky sekä kykymme solmia onnistuneita yhteistyö- ja kumppanuusjärjestelyjä; 19) kykymme suojata teknologioita, joita kehitämme, lisensoimme, käytämme tai aiomme käyttää, kanteilta siitä, että olemme loukanneet kolmannen osapuolen teollisuusoikeuksia sekä mahdollisten lisensiointi kulujen, tiettyjen teknologioiden käyttöön liittyvien rajoitusten ja teollisuusoikeuksiin liittyvien oikeudenkäyntien vaikutukset; 20) talouden, sääntelyn tai politiikan kehitys sekä muiden tapahtumien vaikutus toimintaamme ja liikevaihtoomme niissä useissa maissa tai alueilla, joissa harjoitamme liiketoimintaa; 21) valuuttakurssien vaihtelut, erityisesti vaihtelut raportointivaluuttamme euron ja Yhdysvaltojen dollarin, Japanin jenin, Kiinan yuanin sekä eräiden muiden valuuttojen välillä; 22) kykymme menestyksekkäästi panna täytäntöön suunnitellut yritysjärjestelyt kuten hankinnat, divestoinnit, fuusiot, yhteistoimintayritykset, hallinnoida niihin liittyviä odottamattomia vastuita ja saavuttaa asetetut hyödyt; 23) oikeudenkäynnit, välimiesmenettelyt, sopimuksiin liittyvät riidat ja syytökset terveyshaitoista liittyen liiketoimintaamme sekä ne riskitekijät, jotka mainitaan Nokian viimeisimmässä Yhdysvaltojen arvopaperisäännösten mukaisessa asiakirjassa (Form 20-F) s. 12-35 otsikon Item 3.D "Risk Factors" alla ja meidän 24.7.2014 julkistamassamme osavuosikatsauksessa esitetyt riskit. Muut tuntemattomat tai odottamattomat tekijät tai vääriksi osoittautuvat oletukset voivat aiheuttaa todellisten tulosten huomattavan poikkeamisen tulevaisuudennäkymiin liittyvissä kannanotoissa ja lausumissa esitetyistä tulosodotuksista. Nokia ei sitoudu julkisesti päivittämään tai muuttamaan tulevaisuudennäkymiin liittyviä kannanottoja tai lausumia uuden tiedon, tulevaisuuden tapahtuman tai muun syyn johdosta, paitsi siltä osin kuin sillä on siihen lainmukainen velvollisuus.

 

Nokia

Nokia sijoittaa teknologioihin, jotka mahdollistavat maailman, jossa miljardit laitteet ovat yhteydessä toisiinsa verkon välityksellä. Nokialla on kolme liiketoimintaa: verkkoinfrastruktuurin ohjelmistoihin, laitteisiin ja palveluihin keskittyvä Nokia Networks, sijaintitietoon keskittyvä HERE ja teknologiakehitykseen -ja lisensointiin keskittyvä Nokia Technologies. Kaikki Nokian liiketoiminnat ovat omien toimialueidensa johtavia toimijoita. http://company.nokia.com

Nokia Technologies kehittää ja lisensoi huippuinnovaatioita, jotka mahdollistavat uuden murroksen tietojenkäsittelyssä ja langattomissa ratkaisuissa. Tässä "ohjelmoitavassa maailmassa" älykkäät yhteydet liittävät miljoonat, jokapäiväisessä käytössä olevat laitteet verkkoon ja siten luovat uusia, kiinnostavia mahdollisuuksia. Alansa johtava tutkimus- ja tuotekehitystiimi on Nokia Technologies -liiketoiminnan ytimessä. Yhteistyössä maailman  johtavien yliopistojen kanssa se laajentaa Nokian johtavaa roolia niiden teknologioiden ja standardien kehittämisessä, jotka mahdollistavat valtaosan tänään käytössä olevista langattoman tietoliikenteen ja -tekniikan tuotteista. Tutkijoillamme, insinööreillämme ja lisensoijillamme on pitkä kokemus muun muassa valokuvausteknologioiden, sensori- ja materiaaliteknologioiden, langattomien yhteyksien ja virrankulutuksen hallinnan saralla.

 

 

Lisätietoja tiedotusvälineille

Nokia
Viestintä
Puh. +358 (0) 10 448 4900
Sähköposti: press.services@nokia.com

 

 

 

---

If you wish to unsubscribe please go to: http://company.nokia.com/en/news/press-releases/subscribe

---

Correction: Nokia Corporation Interim Report for Q2 2014 and January-June 2014

Correction: Nokia Corporation Interim Report for Q2 2014 and January-June 2014

Nokia Corporation
Interim Report
July 24, 2014 at 10:00 (CET+1)

This is a correction to the summary interim report for Q2 2014 and January-June 2014 that was published today at 8:00am. This version is identical but now also includes the "Nokia Outlook" section.

This is a summary of the Nokia Corporation Interim Report for Q2 2014 and January-June 2014 published today. The complete Interim Report with tables for Q2 2014 and January-June 2014 is available at http://company.nokia.com/financials. Investors should not rely on summaries of Nokia's interim reports only, but should review the full interim reports with tables.

Nokia Corporation Interim Report for Q2 2014 and January-June 2014

FINANCIAL AND OPERATING HIGHLIGHTS

Second quarter 2014 highlights for continuing operations:

- Non-IFRS diluted EPS in Q2 2014 of EUR 0.06 (EUR 0.05 in Q2 2013); reported diluted EPS of EUR -0.01 (EUR -0.02 in Q2 2013)
- Net sales in Q2 2014 of EUR 2.9 billion (EUR 3.2 billion in Q2 2013)

Nokia Networks
- In Q2 2014, Nokia Networks achieved strong underlying operating profitability with non-IFRS operating profit of EUR 281 million, or 11.0% of net sales, compared to EUR 328 million, or 11.8% of net sales, in Q2 2013. The strong level of profitability for Nokia Networks in Q2 2014 and Q2 2013 was primarily due to operational efficiency which benefitted both gross margin and operating profit.
- Nokia Networks net sales in Q2 2014 were EUR 2.6 billion, compared to EUR 2.8 billion in Q2 2013.
- Excluding foreign currency fluctuations and the divestments of businesses not consistent with its strategic focus, as well as the exiting of certain customer contracts and countries, Nokia Networks net sales would have increased 1% year-on-year.

HERE
- HERE net sales in Q2 2014 were approximately flat on a year-on-year basis. Excluding foreign currency fluctuations, HERE net sales in Q2 2014 would have increased 2% year-on-year.
- In Q2 2014, HERE sold map data licenses for the embedded navigation systems of 3.3 million new vehicles globally, compared to 2.7 million vehicles in Q2 2013.
- HERE continued to focus on investing in longer term transformational growth opportunities, and announced the acquisitions of Medio and Desti.

Nokia Technologies
- Nokia Technologies net sales increased sequentially in Q2 2014, primarily due to Microsoft becoming a more significant intellectual property licensee in conjunction with the sale of substantially all of the Devices & Services business to Microsoft.

Balance sheet highlights:
- Nokia ended Q2 2014 with a strong balance sheet and solid cash position with gross cash of EUR 9.0 billion and net cash of EUR 6.5 billion compared to EUR 6.9 billion and EUR 2.1 billion, respectively, at the end of Q1 2014.
- In Q2 2014, Nokia completed the sale of substantially all of the Devices & Services business to Microsoft. Of the approximately EUR 5.0 billion of net cash impact from the proceeds, approximately EUR 4.8 billion benefitted Q2 2014 with the balance expected to be received in the second half 2014. In connection with the completion of the transaction the EUR 1.5 billion Microsoft convertible bonds were repaid.
- During Q2 2014 we started the capital structure optimization program with the redemption of approximately EUR 950 million of Nokia Networks debt. As a result of this, Nokia no longer has material financial covenants.

January-June 2014 highlights for continuing operations:
Nokia continuing operations net sales in January-June 2014 were EUR 5.6 billion
- Nokia continuing operations net sales for the first half 2014 decreased 11% year-on-year.
- Reported EPS for the first half 2014 was EUR 0.02, compared to EUR -0.04 in the first half 2013.

Commenting on the second quarter results, Rajeev Suri, Nokia President and CEO, said:

Nokia's second quarter performance shows the strength of the company today. 

In Nokia Networks, our unique operating model has allowed us to deliver strong profitability while improving our topline trend. Maintaining this balance will remain a clear priority in the second half of the year, when we expect Networks to return to year-on-year growth. Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for Networks to be at or slightly above our long term target range of 5 to 10 percent.

HERE demonstrated good year-on-year growth in its automotive business, and we continue to invest to expand in this area, as well as in the enterprise and consumer markets. The licensing and innovation engine of Nokia Technologies remains very much on track. We see opportunities to expand this business with both new and existing licensees, and the Technologies team continues to increase its industry-leading patent portfolio.

This performance, along with the many conversations I have had with customers, partners, employees and others in my first quarter as CEO, gives me a high degree of confidence about our future.

 

SUMMARY FINANCIAL INFORMATION

	Reported and Non-IFRS second quarter 2014 results1						Reported and Non-IFRS January - June 2014 results1
EUR million	Q2/14	Q2/13	YoY Change	Q1/14	QoQ Change		Q1-Q2/2014	Q1-Q2/2013	YoY Change
Continuing Operations
Net sales	2 942	3 155	-7 %	2 664	10 %		5 606	6 295	-11 %
Gross margin % (non-IFRS)	44.0 %	43.6 %		45.7 %			44.8 %	41.4 %
Operating expenses (non-IFRS)	-940	-1 009	-7 %	-925	2 %		-1 865	-2 013	-7 %
Operating profit (non-IFRS)	347	430	-19 %	304	14 %		651	684	-5 %
Non-IFRS exclusions	62	419		62			125	702
Operating profit	284	12		242	17 %		526	-18
EPS, EUR diluted (non-IFRS)	0.06	0.05	20 %	0.04	50 %		0.10	0.06	67 %
EPS, EUR diluted (reported)	-0.01	-0.02		0.03			0.02	-0.04
Net cash from operating activities	1 455	-	-	198			1 653	-
Net cash and other liquid assets	6 497	4 067	60 %	2 075	213 %		6 497	4 067	60 %
Discontinued Operations
Net sales	497	2 579	-81 %	1 929	-74 %		2 426	5 344	-55 %
Operating profit (non-IFRS)	-110	-127		-306			-416	-200
Operating profit	3 075	-126		-326			2 749	-246
Net cash from operating activities	-664	-		-336			-1 001	-
Nokia Group (continuing and discontinued operations)
EPS, EUR diluted (non-IFRS)	0.03	0.00		-0.04			-0.01	-0.01
EPS, EUR diluted (reported)	0.61	-0.06		-0.06			0.54	-0.13
Net cash from operating activities	790	-196		-138			652	10
Net cash and other liquid assets	6 497	4 067	60 %	2 075	213 %		6 497	4 067	60 %

 

Note 1 relating to results information and non-IFRS (also referred to as "underlying") results: The results information in this report is unaudited. Percentages and figures presented herein may include rounding differences and therefore may not add up precisely to the totals presented and may vary from previously published financial information. In addition to information on our reported IFRS results, we provide certain information on a non-IFRS, or underlying business performance, basis. Non-IFRS results exclude all material special items for all periods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from (i) the formation of Nokia Networks (formerly NSN) and (ii) all business acquisitions completed after June 30, 2008. Nokia believes that our non-IFRS results provide meaningful supplemental information to both management and investors regarding Nokia's underlying business performance by excluding the above-described items that may not be indicative of Nokia's business operating results. These non-IFRS financial measures should not be viewed in isolation or as substitutes to the equivalent IFRS measure(s), but should be used in conjunction with the most directly comparable IFRS measure(s) in the reported results. More information, including a reconciliation of our Q2 2014 and Q2 2013 non-IFRS results to our reported results, can be found in our complete Q2 2014 report with tables on pages 21-27. A reconciliation of our Q1 2014 non-IFRS results to our reported results can be found in our complete Q1 2014 interim report with tables on pages 19-23 published on April 29, 2014.

 

Nokia Outlook

 

• Nokia now expects Nokia Networks' non-IFRS operating margin for the full year 2014 to be at or slightly above the high end of Nokia Networks' targeted long-term non-IFRS operating margin range of 5% to 10%. This compares to Nokia's previous outlook for Nokia Networks non-IFRS operating margin for the full year 2014 to be towards the higher end of Nokia Networks' targeted long-term non-IFRS operating margin range of 5% to 10%. In addition, Nokia expects Nokia Networks' net sales to grow on a year-on-year basis in the second half 2014. This outlook is based on Nokia's first half 2014 financial performance, as well as Nokia's expectations regarding a number of factors, including:
  • competitive industry dynamics;
  • product and regional mix;
  • a higher proportion of major new network deployment projects; and
  • expected continued operational improvement.
• During 2014, Nokia continues to expect HERE to invest to capture longer term transformational growth opportunities. This is expected to negatively affect HERE's 2014 non-IFRS operating margin.
• Nokia expects Nokia Technologies' annualized net sales to continue at a run rate of approximately EUR 600 million during 2014.
• Nokia currently expects financial income and expenses, including net interest expenses and the impact from changes in foreign exchange rates on certain balance sheet items, to amount to approximately EUR 40 million on a quarterly basis, subject to changes in foreign exchange rates and the level of interest bearing liabilities.
• On a non-IFRS basis, until a pattern of tax profitability is re-established in Finland, Nokia continues to expect to record approximately EUR 250 million of annualized tax expense for its continuing operations. This corresponds to the anticipated cash tax obligations for Nokia Networks, HERE and Nokia Technologies. After a pattern of tax profitability is re-established in Finland, Nokia expects to record tax expenses at a long-term effective tax rate of approximately 25%. However, Nokia's cash tax obligations are expected to remain at approximately EUR 250 million annually until Nokia's currently unrecognized Finnish deferred tax assets have been fully utilized. At the end of the second quarter 2014, Nokia had approximately EUR 2.0 billion of unrecognized Finnish deferred tax assets that would be available against approximately EUR 9.9 billion of taxable profits.
• In the third quarter 2014, Nokia paid a special dividend of approximately EUR 1 billion (EUR 0.26 per share) and an ordinary dividend of approximately EUR 400 million (EUR 0.11 per share), as approved by shareholders at the 2014 Annual General Meeting. At the 2014 Annual General Meeting, shareholders also approved a share repurchase authorization, and Nokia plans to commence the repurchases following the publication of interim results for the second quarter 2014.
• Nokia continues to expect full year 2014 capital expenditures for continuing operations to be approximately EUR 200 million, primarily attributable to Nokia Networks.

 

 

RISKS AND FORWARD-LOOKING STATEMENTS

It should be noted that Nokia and its business are exposed to various risks and uncertainties and certain statements herein that are not historical facts are forward-looking statements, including, without limitation, those regarding: A) expectations, plans or benefits related to Nokia's strategies; B) expectations, plans or benefits related to future performance of Nokia's continuing businesses Nokia Networks, HERE and Nokia Technologies; C) expectations, plans or benefits related to changes in leadership and operational structure; D) expectations regarding market developments, general economic conditions and structural changes; E) expectations and targets regarding performance, including those related to market share, prices, net sales and margins; F) the timing of the deliveries of our products and services; G) expectations and targets regarding our financial performance, cost savings and competitiveness, as well as results of operations; H) expectations and targets regarding collaboration and partnering arrangements; I) the outcome of pending and threatened litigation, arbitration, disputes, regulatory proceedings or investigations by authorities; J) expectations regarding restructurings, investments, uses of proceeds from transactions, acquisitions and divestments and our ability to achieve the financial and operational targets set in connection with any such restructurings, investments, divestments and acquisitions, including any expectations, plans or benefits related to or caused by the transaction announced on September 3, 2013 where Nokia sold substantially all of the Devices & Services business to Microsoft on April 25, 2014 ("Sale of the D&S Business"); K) statements preceded by or including "believe," "expect," "anticipate," "foresee," "sees," "target," "estimate," "designed," "aim", "plans," "intends," "focus", "continue", "project", "should", "will" or similar expressions. 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, including risks and uncertainties that could cause these differences include, but are not limited to: 1) our ability to execute our strategies successfully and in a timely manner, and our ability to successfully adjust our operations; 2) our ability to sustain or improve the operational and financial performance of our continuing businesses and correctly identify business opportunities or successfully pursue new business opportunities; 3) our ability to execute Nokia Networks' strategy and effectively, profitably and timely adapt its business and operations to the increasingly diverse needs of its customers and technological developments; 4) our ability within our Nokia Networks business to effectively and profitably invest in and timely introduce new competitive high-quality products, services, upgrades and technologies; 5) our ability to invent new relevant technologies, products and services, to develop and maintain our intellectual property portfolio and to maintain the existing sources of intellectual property related revenue and establish new such sources; 6) our ability to protect numerous patented standardized or proprietary technologies from third-party infringement or actions to invalidate the intellectual property rights of these technologies; 7) our ability within our HERE business to maintain current sources of revenue, historically derived mainly from the automotive industry, create new sources of revenue, establish a successful location-based platform and extend our location-based services across devices and operating systems; 8) effects of impairments or charges to carrying values of assets, including goodwill, or liabilities; 9) our dependence on the development of the mobile and communications industry in numerous diverse markets, as well as on general economic conditions globally and regionally; 10) Nokia Networks business' dependence on a limited number of customers and large, multi-year contracts; 11) our ability to retain, motivate, develop and recruit appropriately skilled employees; 12) the potential complex tax issues and obligations we may face, including the obligation to pay additional taxes in various jurisdictions and our actual or anticipated performance, among other factors, could result in allowances related to deferred tax assets; 13) our ability to manage our manufacturing, service creation and delivery, and logistics efficiently and without interruption, especially if the limited number of suppliers we depend on fail to deliver sufficient quantities of fully functional products and components or deliver timely services; 14) potential exposure to contingent liabilities due to the Sale of the D&S Business and possibility that the agreements we have entered into with Microsoft may have terms that prove to be unfavorable to us; 15) any inefficiency, malfunction or disruption of a system or network that our operations rely on or any impact of a possible cybersecurity breach; 16) our ability to reach targeted results or improvements by managing and improving our financial performance, cost savings and competitiveness; 17) management of Nokia Networks' customer financing exposure; 18) the performance of the parties we partner and collaborate with, and our ability to achieve successful collaboration or partnering arrangements; 19) our ability to protect the technologies, which we develop, license, use or intend to use from claims that we have infringed third parties' intellectual property rights, as well as, impact of possible licensing costs, restriction on our usage of certain technologies, and litigation related to intellectual property rights; 20) the impact of regulatory, political or other developments on our operations and sales in those various countries or regions where we do business; 21) exchange rate fluctuations, particularly between the euro, which is our reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain other currencies; 22) our ability to successfully implement planned transactions, such as acquisitions, divestments, mergers or joint ventures, manage unexpected liabilities related thereto and achieve the targeted benefits; 23) the impact of unfavorable outcome of litigation, arbitration, contract related disputes or allegations of health hazards associated with our business, as well as the risk factors specified on pages 12-35 of Nokia's annual report on Form 20-F for the year ended December 31, 2013 under Item 3D. "Risk Factors." Other unknown or unpredictable factors or underlying assumptions subsequently proven to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Nokia does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

Nokia, Helsinki - July 24, 2014

Media and Investor Contacts:

Corporate Communications, tel. +358 10 448 4900 email: press.services@nokia.com
Investor Relations Europe, tel. +358 4080 3 4080
Investor Relations US, tel. +1 408 663 5685

Planned publication dates for interim reports in 2014
- report for Q3 2014 and January-September 2014: October 23, 2014

---

If you wish to unsubscribe please go to: http://company.nokia.com/en/news/press-releases/subscribe

---