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Nokia expects to revise upwards its 2021 financial guidance – Hub News Report



Nokia Corporation
Inside information
13 July 2021 at 9:00 EET

Nokia expects to revise upwards its 2021 financial guidance

Espoo, Finland – Nokia is today providing an update to its financial guidance for full year 2021. In the second quarter Nokia saw continued strength in the business, improving its expectations for the full year. Nokia now expects to revise upwards its prior outlook ranges for 2021. Nokia plans to provide full details on its second quarter and half-year financial performance and revised full year 2021 guidance on 29 July 2021.

The previous outlook for 2021 (reiterated on 29 April 2021) was:





Net sales, adjusted for currency fluctuations1 €20.6bn to €21.8bn
Comparable operating margin 7 to 10%
Free cash flow Positive
Comparable ROIC 10 to 15%

1
)
Assuming continuation of 2020 year-end EUR/USD rate of 1.23
.

“We are progressing well with our three-phased plan to achieve sustainable, profitable growth and technology leadership laid out at our Capital Markets Day in March. Our first half performance has shown evidence of this in good cost control and also benefited from strength in a number of our end markets. We continue to expect some headwinds in the second half as we have previously highlighted but our performance in the first half provides a good foundation for the full year,” said Pekka Lundmark, Nokia President and CEO.

The company will release its second quarter and half year 2021 financial results on Thursday 29 July 2021.

Nokia will conduct a conference call with analysts and investors to discuss its second quarter performance and business outlook on 29 July 2021 at 11:30am EET / 9:30am BST / 4:30am US EST.

About Nokia
At Nokia, we create technology that helps the world act together.

As a trusted partner for critical networks, we are committed to innovation and technology leadership across mobile, fixed and cloud networks. We create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs.

Adhering to the highest standards of integrity and security, we help build the capabilities needed for a more productive, sustainable and inclusive world.

Inquiries:

Nokia
Communications
Phone: +358 10 448 4900
Email: [email protected]
Katja Antila, Head of Media Relations

Nokia
Investor Relations
Phone: +358 40 803 4080
Email: [email protected]

Forward-looking statements
ItshouldbenotedthatNokia anditsbusinesses areexposedtovariousrisksanduncertaintiesand certainstatementshereinthatare nothistoricalfactsareforward-lookingstatements.Theseforward-lookingstatementsreflectNokia’scurrentexpectations andviewsof futuredevelopmentsandincludestatementsregarding: A) expectations, plans orbenefitsrelatedtoourstrategies,growthmanagement andoperationalkey performanceindicators; B) expectations, plans orbenefitsrelatedto future performance ofourbusinesses (includingtheexpectedimpact, timing and duration ofthatimpact of COVID-19 onourbusinesses,oursupplychainandourcustomers’ businesses) andanyfuturedividendsincludingtiming and qualitative and quantitativethresholdsassociatedtherewith; C) expectations andtargetsregardingfinancialperformance, cashgeneration,results, the timing ofreceivables, operatingexpenses, taxes,currencyexchange rates,hedging,costsavings,productcostreductionsandcompetitiveness, aswellasresultsofoperationsincludingtargetedsynergies,bettercommercial management andthoseresultsrelatedtomarketshare,prices, net sales,incomeandmargins; D) expectations, plans orbenefitsrelatedto changes inorganizationalandoperationalstructure; E) expectationsregardingcompetitionwithinourmarket,marketdevelopments,generaleconomicconditions and structural andlegalchangegloballyand in national andregionalmarkets,suchas China; F)ourabilitytointegrateacquiredbusinessesintoouroperationsandachievethetargetedbusiness plans andbenefits,includingtargetedbenefits, synergies,costsavingsandefficiencies; G) expectations, plans orbenefitsrelatedtoanyfuture collaboration or to business collaborationagreementsor patentlicenseagreementsor arbitrationawards,includingincometobereceivedunderanycollaboration or partnership, agreement oraward; H) timing of thedeliveriesofourproductsand services,includingourshorttermand longertermexpectationsaroundtherolloutof 5G,investmentrequirementswithsuchrollout, andourabilitytocapitalizeonsuchrollout; I) expectations andtargetsregardingcollaboration andpartneringarrangements,joint venturesor thecreationofjoint ventures, and therelatedadministrative,legal,regulatoryandotherconditions, aswellasourexpectedcustomerreach; J)outcomeofpendingandthreatenedlitigation, arbitration, disputes,regulatoryproceedingsor investigations byauthorities; K) expectationsregardingrestructurings,investments, capital structureoptimizationefforts, uses ofproceedsfromtransactions, acquisitions anddivestmentsandourabilitytoachievethefinancialandoperationaltargetsset inconnectionwithanysuchrestructurings,investments, capital structureoptimizationefforts,divestmentsand acquisitions,includingourcurrentcostsavingsprogram; L)expectations, plans orbenefitsrelatedto future capitalexpenditures,reductionof supportfunctioncosts,temporaryincrementalexpendituresorotherR&Dexpenditurestodeveloporrolloutsoftware andothernewproducts,including5G,ReefSharkandincreaseddigitalization; M) expectationsregardingourcustomers′ future actions,includingourcustomers’ capitalexpenditureconstraintsandourabilitytosatisfycustomer’sneedsandretaintheirbusiness; and N)statementsprecededby orincludingbelieve”, “expect”, “expectations”, “deliver”, “maintain”, “strengthen”, “target”, “estimate”, “plan”, “intend”, “assumption”, “focus”, “continue”, “should″, ”will” orsimilarexpressions.Theseforward-lookingstatementsaresubjectto anumberofrisksanduncertainties,manyofwhicharebeyondourcontrol,whichcouldcauseouractualresultstodiffermateriallyfromsuchstatements.Thesestatementsarebasedonmanagement’sbestassumptionsandbeliefsin light of the informationcurrentlyavailabletothem.Theseforward-lookingstatementsareonlypredictionsbaseduponourcurrentexpectations andviewsof futureeventsanddevelopmentsand aresubjecttorisksanduncertaintiesthataredifficulttopredictbecausetheyrelate toeventsanddependoncircumstancesthatwilloccurin the future.Factors,includingrisksanduncertaintiesthatcouldcausethesedifferencesinclude, but are notlimitedto: 1)ourstrategyissubjecttovariousrisksanduncertaintiesandwemaybeunabletosuccessfullyimplementourstrategicplans,sustainorimprovetheoperationalandfinancialperformance ofourbusiness groups,correctlyidentifyorsuccessfullypursuebusinessopportunitiesorotherwisegrowourbusiness; 2)generaleconomicandmarketconditions,generalpublichealthconditions (includingitsimpact onoursupplychains) andotherdevelopmentsin theeconomieswhereweoperate,includingthe timeline for thedeploymentof 5G andourabilitytosuccessfullycapitalizeonthatdeployment; 3)competitionandourabilitytoeffectivelyandprofitablyinvestinexistingand new high-qualityproducts, services, upgrades and technologies andbringthemtomarketin atimelymanner; 4)ourdependenceon thedevelopmentof the industries inwhichweoperate,includingthecyclicalityandvariabilityof the informationtechnologyandtelecommunicationsindustries andourownR&Dcapabilitiesandinvestments; 5)ourdependenceon alimitednumberofcustomersand large multi-yearagreements, aswellasexternaleventsimpactingourcustomersincludingmergers and acquisitions and thepossibilityofourcustomersawardingbusiness toourcompetitors; 6)ourabilitytomaintainourexistingsources ofintellectualproperty-relatedrevenuethroughourintellectualproperty,includingthroughlicensing,establishingnew sources of revenue andprotectingourintellectualpropertyfrominfringement; 7)ourabilityto manage andimproveourfinancialand operating performance,costsavings,competitivenessand synergiesgenerally, expectations and timingaroundourabilitytorecognizeanynet sales andourabilitytoimplementchanges toourorganizationalandoperationalstructureefficiently; 8)ourglobal business andexposuretoregulatory,politicalorotherdevelopmentsinvariouscountries orregions,includingemergingmarketsand theassociatedrisksin relation totaxmattersand exchangecontrols,amongothers; 9)ourabilitytoachievetheanticipatedbenefits, synergies,costsavingsandefficienciesof acquisitions; 10) exchange rate fluctuations, aswellashedgingactivities; 11)ourabilitytosuccessfullyrealizethe expectations, plans orbenefitsrelatedtoanyfuture collaboration or business collaborationagreementsand patentlicenseagreementsor arbitrationawards,includingincometobereceivedunderanycollaboration, partnership, agreement or arbitrationaward; 12) Nokia Technologies’abilitytoprotectitsIPR and tomaintainandestablishnew sources of patent, brand andtechnologylicensingincomeand IPR-relatedrevenues,particularlyin the smartphonemarket,whichmaynotmaterializeasplanned, 13)ourdependenceon IPR technologies,includingthosethatwehavedevelopedandthosethatarelicensedto us, and theriskofassociatedIPR-relatedlegalclaims,licensingcostsand restrictions on use; 14)ourexposureto direct and indirectregulation,includingeconomicortradepolicies, and thereliabilityofourgovernance,internalcontrolsandcomplianceprocessestopreventregulatorypenalties inourbusiness or inourjoint ventures; 15)ourrelianceonthird-party solutions for datastorageand service distribution,whichexpose us torisksrelatingtosecurity,regulationandcybersecuritybreaches; 16)inefficiencies,breaches,malfunctionsor disruptions of informationtechnologysystems, orourcustomerssecurityconcerns; 17)ourexposuretovariouslegalframeworksregulatingcorruption,fraud,tradepolicies, andotherriskareas, and thepossibilityofproceedingsor investigationsthatresultin fines, penalties or sanctions; 18) adversedevelopmentswithrespect tocustomerfinancingorextendedpaymenttermsweprovidetocustomers; 19) thepotentialcomplextaxissues,taxdisputes andtaxobligationswemayface invariousjurisdictions,includingtheriskof obligations topayadditionaltaxes; 20)ouractualoranticipatedperformance,amongotherfactors,whichcouldreduceourabilitytoutilizedeferredtaxassets; 21)ourabilitytoretain,motivate,developandrecruitappropriatelyskilledemployees; 22) disruptions toourmanufacturing, servicecreation,delivery,logisticsandsupplychainprocesses,ourabilityto procure certain standard componentssuchassemiconductors, and therisksrelatedtoourproduction sites; 23) the impact oflitigation, arbitration, agreement-relateddisputes orproductliabilityallegationsassociatedwithourbusiness; 24)ourabilityto re-establishinvestmentgrade rating ormaintainourcreditratings; 25)ourabilitytoachievetargetedbenefitsfrom, orsuccessfullyimplementplannedtransactions, aswellas theliabilitiesrelatedthereto; 26)ourinvolvementinjoint venturesandjointly-managedcompanies; 27) thecarryingamountofourgoodwillmaynotberecoverable; 28)uncertaintyrelatedto theamountofdividendsandequityreturn (ifany)weare able todistributetoshareholdersforeachfinancialperiod; 29) pensioncosts,employeefund-relatedcosts, andhealthcarecosts; 30)ourabilitytosuccessfullycompleteandcapitalizeonourorderbacklogsand continueconvertingoursales pipelineintonet sales; 31)risksrelatedtounderseainfrastructure; and 32) the scope and duration of the COVID-19 impact on the globaleconomyandfinancialmarketsaswellasourcustomers,supplychain,productdevelopment, servicedelivery,otheroperationsandourfinancial,tax, pension andotherassets, and theshapeof theeconomicrecoveryfollowingthepandemicaswellas theriskfactorsspecifiedinour2020annualreport onForm20-Fpublishedon March 4, 2021under“Operating andfinancialreviewand prospects-Riskfactors″ and inourotherfilingsor documentsfurnishedwiththe U.S. Securities and Exchange Commission.Otherunknownorunpredictablefactorsorunderlyingassumptionssubsequentlyproventobeincorrectcouldcauseactualresultstodiffermateriallyfromthosein theforward-lookingstatements.Wedo notundertakeanyobligation topubliclyupdate orreviseforward-lookingstatements,whetheras aresultof new information, futureeventsorotherwise,exceptto theextentlegallyrequired.

 



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