2019-03-22 15:46:00 CET

2019-03-22 15:46:49 CET


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Nokia - Inside information

Nokia comments on market rumors related to its annual report on Form 20-F

Nokia Corporation
Stock Exchange Release
March 22, 2019 at 16:45 (CET +1)

Nokia comments on market rumors related to its annual report on Form 20-F

Espoo - Finland While Nokia does not typically comment on market rumors, given
the market reaction and inquiries related to a disclosure in the risk factors
section of its annual report on Form 20-F for 2018, the company issues this
statement to clarify that the specified investigation is not expected to have a
material impact on Nokia. We have seen no evidence that would suggest that
criminal penalties would apply in this case, and we believe it is highly likely
that any penalties that might apply would be limited and immaterial.

Nokia wishes to clarify that the context of this disclosure is the risk factors
section of its annual report on Form 20-F where the company lists various risks
which could potentially have a material impact on it. However, the disclosure
does not reflect Nokia's assessment of the expected or likely impact of the
investigation on Nokia.

As noted in the annual report, to ensure complete compliance we are now
scrutinizing certain transactions in the former Alcatel Lucent business. Out of
an abundance of caution and in the spirit of transparency, Nokia has contacted
the relevant regulatory authority regarding this review. We are proud of our
reputation as one of the world's most ethical companies and this level of
openness, transparency and cooperation is what you would expect from Nokia.

For audit purposes, the overall group materiality is defined as EUR 125 million
as disclosed in Nokia's annual report for 2018.

It should be noted that Nokia and its businesses are exposed to various risks
and uncertainties and certain statements herein that are not historical facts
are forward-looking statements. These forward-looking statements reflect Nokia's
current expectations and views of future developments and include statements
regarding: A) expectations, plans or benefits related to our strategies and
growth management; B) expectations, plans or benefits related to future
performance of our businesses and any expected future dividends; C) expectations
and targets regarding financial performance, results, operating expenses, taxes,
currency exchange rates, hedging, cost savings and competitiveness, as well as
results of operations including targeted synergies and those related to market
share, prices, net sales, income and margins; D) expectations, plans or benefits
related to changes in organizational and operational structure; E) expectations
regarding market developments, general economic conditions and structural
changes; F) our ability to integrate acquired businesses into our operations and
achieve the targeted business plans and benefits, including targeted benefits,
synergies, cost savings and efficiencies; G) expectations, plans or benefits
related to any future collaboration or to business collaboration agreements or
patent license agreements or arbitration awards, including income to be received
under any collaboration or partnership, agreement or award; H) timing of the
deliveries of our products and services, including our short term and longer
term expectations around the rollout of 5G and our ability to capitalize on such
rollout; and the overall readiness of the 5G ecosystem ; I) expectations and
targets regarding collaboration and partnering arrangements, joint ventures or
the creation of joint ventures, and the related administrative, legal,
regulatory and other conditions, as well as our expected customer reach; J)
outcome of pending and threatened litigation, arbitration, disputes, regulatory
proceedings or investigations by authorities; K) expectations regarding
restructurings, investments, capital structure optimization efforts, 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, capital structure optimization efforts, divestments
and acquisitions, including our 2019-2020 cost savings program; L) expectations,
plans or benefits related to future capital expenditures, temporary incremental
expenditures or other R&D expenditures to develop or rollout new products,
including 5G; and M) statements preceded by or including "believe", "expect",
"expectations", "commit", "anticipate", "foresee", "see", "target", "estimate",
"designed", "aim", "plan", "intend", "influence", "assumption", "focus",
"continue", "project", "should", "is to", "will" or similar expressions. These
forward-looking statements are subject to a number of risks and uncertainties,
many of which are beyond our control, which could cause actual results to differ
materially from such statements. These statements are based on management's best
assumptions and beliefs in light of the information currently available to it.
These forward-looking statements are only predictions based upon our current
expectations and views of future events and developments and are subject to
risks and uncertainties that are difficult to predict because they relate to
events and depend on circumstances that will occur in the future.  Factors,
including risks and uncertainties that could cause these differences include,
but are not limited to: 1) our strategy is subject to various risks and
uncertainties and we may be unable to successfully implement our strategic
plans, sustain or improve the operational and financial performance of our
business groups, correctly identify or successfully pursue business
opportunities or otherwise grow our business; 2) general economic and market
conditions and other developments in the economies where we operate, including
the timeline for the deployment of 5G and our ability to successfully capitalize
on that deployment; 3) competition and our ability to effectively and profitably
invest in new competitive high-quality products, services, upgrades and
technologies and bring them to market in a timely manner; 4) our dependence on
the development of the industries in which we operate, including the cyclicality
and variability of the information technology and telecommunications industries
and our own R&D capabilities and investments; 5) our dependence on a limited
number of customers and large multi-year agreements; 6) our ability to maintain
our existing sources of intellectual property-related revenue through our
intellectual property, including through licensing, establish new sources of
revenue and protect our intellectual property from infringement; 7) our ability
to manage and improve our financial and operating performance, cost savings,
competitiveness and synergies generally and our ability to implement changes to
our organizational and operational structure efficiently; 8) our global business
and exposure to regulatory, political or other developments in various countries
or regions, including emerging markets and the associated risks in relation to
tax matters and exchange controls, among others; 9) our ability to achieve the
anticipated benefits, synergies, cost savings and efficiencies of acquisitions,
including the acquisition of Alcatel-Lucent; 10) exchange rate fluctuations, as
well as hedging activities; 11) our ability to successfully realize the
expectations, plans or benefits related to any future collaboration or business
collaboration agreements and patent license agreements or arbitration awards,
including income to be received under any collaboration, partnership, agreement
or arbitration award; 12) Nokia Technologies' ability to protect its IPR and to
maintain and establish new sources of patent, brand and technology licensing
income and IPR-related revenues, particularly in the smartphone market, which
may not materialize as planned, 13) our dependence on IPR technologies,
including those that we have developed and those that are licensed to us, and
the risk of associated IPR-related legal claims, licensing costs and
restrictions on use; 14) our exposure to direct and indirect regulation,
including economic or trade policies, and the reliability of our governance,
internal controls and compliance processes to prevent regulatory penalties in
our business or in our joint ventures; 15) our reliance on third-party solutions
for data storage and service distribution, which expose us to risks relating to
security, regulation and cybersecurity breaches; 16) inefficiencies, breaches,
malfunctions or disruptions of information technology systems; 17) our exposure
to various legal frameworks regulating corruption, fraud, trade policies, and
other risk areas, and the possibility of proceedings or investigations that
result in fines, penalties or sanctions; 18) adverse developments with respect
to customer financing or extended payment terms we provide to customers; 19) the
potential complex tax issues, tax disputes and tax obligations we may face in
various jurisdictions, including the risk of obligations to pay additional
taxes; 20) our actual or anticipated performance, among other factors, which
could reduce our ability to utilize deferred tax assets; 21) our ability to
retain, motivate, develop and recruit appropriately skilled employees; 22)
disruptions to our manufacturing, service creation, delivery, logistics and
supply chain processes, and the risks related to our geographically-concentrated
production sites; 23) the impact of litigation, arbitration, agreement-related
disputes or product liability allegations associated with our business; 24) our
ability to re-establish investment grade rating or maintain our credit ratings;
25) our ability to achieve targeted benefits from, or successfully implement
planned transactions, as well as the liabilities related thereto; 26) our
involvement in joint ventures and jointly-managed companies; 27) the carrying
amount of our goodwill may not be recoverable; 28) uncertainty related to the
amount of dividends and equity return we are able to distribute to shareholders
for each financial period; 29) pension costs, employee fund-related costs, and
healthcare costs; 30) our ability to successfully complete and capitalize on our
order backlogs and continue converting our sales pipeline into net sales; and
31) risks related to undersea infrastructure, as well as the risk factors
specified on pages 60 to 75 of our 2018 annual report on Form 20-F published on
March 21, 2019 under "Operating and financial review and prospects-Risk factors"
and in our other filings or documents furnished with the U.S. Securities and
Exchange Commission. 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. We do 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
We create the technology to connect the world. We develop and deliver the
industry's only end-to-end portfolio of network equipment, software, services
and licensing that is available globally. Our customers include communications
service providers whose combined networks support 5.7 billion subscriptions, as
well as enterprises in the private and public sector that use our network
portfolio to increase productivity and enrich lives.
Through our research teams, including the world-renowned Nokia Bell Labs, we are
leading the world to adopt end-to-end 5G networks that are faster, more secure
and capable of revolutionizing lives, economies and societies. Nokia adheres to
the highest ethical business standards as we create technology with social
purpose, quality and integrity.

Media Enquiries
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com
Jon Peet, Vice President, Corporate Communications