Due to transition in telecom markets, Nokia unable to share revenue target for 2012

Telecom Lead Europe: Due to transition and risks in
telecom infrastructure and mobile phone markets, Nokia will not share revenue
target for 2012. Nokia reports revenue from Nokia Siemens Networks, Nokia’s
phone business and location and commerce business.

Nokia said it is not appropriate to provide annual
targets for 2012 as the current year is expected to continue to be a year of
transition. In 2012 Nokia Siemens Networks is continuing to implement its
new strategy and restructuring program. Additionally, the macroeconomic environment
is making it increasingly di
to estimate our outlook and provide reliable targets.


In 2011 as well, Nokia did not share annual targets.

However, in the longer-term, Nokia targets would be:

Devices & Services net sales to grow faster than the
market, and

Devices & Services operating margin will be 10
percent or more, excluding special items and purchase price accounting related

Longer-term, Nokia and Nokia Siemens Networks target:

Nokia Siemens Networks’ operating margin will be between
5 percent and 10 percent, excluding special items and purchase price accounting
related items.

Nokia, which shared its annual report, said 2012 is
expected to continue to be a year of transition during which Nokia’s Devices
& Services business will be subject to risks and uncertainties as Nokia’s
Smart Devices business unit continues to transition from Symbian products to
Nokia products with Windows Phone and Nokia’s Mobile Phones business unit aims
to bring more smartphone-like features and design to Nokia’s feature phone

Those risks and uncertainties include, among others,
continued deterioration in demand for Nokia’s Symbian devices; the timing,
ramp-up and demand for Nokia’s new products, including Nokia’s Lumia devices;
and further pressure on margins as competitors endeavor to capitalize on
Nokia’s platform and product transition.

According to its annual report, Nokia Siemens Networks
announced in November 2011 a new strategy which focuses its business on mobile
broadband and services, and has launched an extensive global restructuring


Nokia and Nokia Siemens Networks have announced a number
of planned changes to operations during 2011 and 2012 in connection with the
implementation of new strategies for Nokia’s Devices & Services and Nokia
Siemens Networks businesses as well as in relation to the creation of a new
location & commerce business.

The planned changes include substantial personnel
reductions, site and facility closures and reconfigurations of certain Nokia
facilities. Nokia continues to target to reduce its Devices & Services
operating expenses by more than EUR 1 billion for the full year 2013, compared
to the Devices & Services operating expenses of EUR 5.35 billion for
 the full year 2010, excluding special items and purchase price accounting
related items.

Nokia and Nokia Siemens Networks continue to target to
reduce Nokia Siemens Networks annualized operating expenses and production
overheads, excluding special items and purchase price accounting related items,
by EUR 1 billion by the end of 2013, compared to the end of 2010.

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