Nokia Corporation Nokia Speeds Up Transformation To Improve Profitability

TIDMNOKIA 
 
   Nokia Corporation 
 
   Stock Exchange Release 
 
   18 March 2021 at 8:00 EET 
 
   Nokia speeds up transformation to improve profitability 
 
   Capital Markets Day 2021 
 
 
   -- Company sets out a three-phased journey to deliver sustainable, 
      profitable growth and technology leadership. 
 
   -- Reiterates its financial outlook for 2021 and provides outlook for 2023. 
 
   -- Anticipates comparable operating margin to increase to 10--13% in 2023 
      and to grow faster than the market in full-year 2023. 
 
   -- Launches new company purpose and ways of working. 
 
   -- Capital Markets Day presentations will update on key market opportunities, 
      focus areas and long-term trends. 
 
 
   Today Nokia is holding its Capital Markets Day 2021 and providing an 
overview of long-term market trends, how it is setting itself up for 
value creation, detailed plans for each of its business segments, its 
financial outlook and its updated dividend policy. 
 
   "Nokia is repositioning itself to deliver sustainable, profitable growth, 
adapting our business to lead in an increasingly digitalized world. We 
have a clear and detailed plan for how we will reset the business, 
accelerate competitiveness and scale up our lead in the markets we 
choose to play in. This plan will enable us to deliver double-digit 
comparable operating margins in 2023," says Pekka Lundmark, President 
and CEO of Nokia. 
 
   "We have moved away from end-to-end as a cornerstone of our equity story 
and have instead put in place four fully accountable, empowered business 
groups, arranged according to how customers buy. Each of these business 
groups has solid strategies and targets to grow market share and margins 
through enhanced technology leadership," he continues. 
 
   Nokia sees a number of major trends impacting the industry over the next 
few years, with 5G and resulting technologies at their core and creating 
opportunities for CSPs, enterprises and webscales. 
 
   These trends include next-generation access with fiber-to-the-home and 
optimized transport technologies delivering a seamless experience for 
consumers in homes and workplaces, enabling a "gigabit society" when 
combined with mobile 5G. In addition, connected digital enterprise will 
drive massive productivity, efficiency and safety gains across 
industries. A result of this will be significant growth in the 
Enterprise market. 
 
   "5G is still in its early phase. We estimate that the peak of the 5G 
market will last roughly twice as long as it did with 4G. So these 
trends of next generation access and digital connected enterprise still 
have a long way to run. I want Nokia be able to shape them, delivering 
best-of-breed products, services and connectivity that allow our 
customers to deliver constantly improving performance," says Lundmark. 
 
   New company purpose 
 
   The world is changing rapidly and facing fundamental challenges. 
Pressure on the planet is increasing, productivity is stalling and 
access to opportunity remains stubbornly unequal. 
 
   Nokia believes technology is central to the solution. 
 
   Technology can help to respond to climate change through more efficient 
use and re-use of the world's resources. It can be essential for 
restoring productivity growth by digitalizing physical industry, and it 
can help provide more inclusive access to work, healthcare, markets and 
education. 
 
   "With that in mind, our new purpose at Nokia is to create technology 
that helps the world act together. With our customers, we create the 
critical networks that bring together the world's people, machines, and 
devices. And everything we do in our business will contribute to this 
aim" Lundmark continues. 
 
   To deliver on its refreshed purpose, Nokia will strengthen its position 
as a trusted partner for critical networks, which underpin more and more 
mission-critical functions for businesses and across societies. In 
addition, Nokia focuses on technology leadership in each of its 
businesses and captures the value shift to cloud and new business models 
as critical networks evolve. Nokia also creates value with long-term 
research and intellectual property which provide both the technology and 
the financial platform for the company to be successful over the long 
term. 
 
   In addition, Nokia is refreshing its ways of working and promoting a 
culture where its people are open to continuous development, fearless to...