2017-07-24 08:01:02 CEST
2017-07-24 08:01:02 CEST
REGULATED INFORMATION
Nokia - Other information disclosed according to the rules of the Exchange
Nokia provides recast comparative segment results for 2016 and Q1 2017 reflecting the new financial reporting structure
Nokia Corporation
Stock Exchange Release
July 24, 2017 at 9:00 (CET +1)
Nokia provides recast comparative segment results for 2016 and Q1 2017
reflecting the new financial reporting structure
Espoo, Finland - Nokia today provided in advance of its next results
announcement recast comparative segment financial information on a quarterly and
annual basis for 2016 and for Q1 2017, reflecting the creation of the Global
Services business group and its effect on Nokia's financial reporting and
organizational structure.
As announced earlier, Nokia will publish its financial report for the second
quarter and half year 2017 on July 27, 2017 at approximately 8 a.m. Finnish time
(CET+1).
Changes in reporting structure, effective from April 1, 2017
On March 17, 2017, Nokia announced changes in its organizational structure
designed to accelerate the execution of its strategy, including strengthening
Nokia's ability to deliver strong financial performance, drive growth in
services, meet changing customer demands in mobile networks, achieve cost
savings and ongoing transformation goals, and enable strategic innovation across
Nokia's Networks business. These organizational changes included the separation
of Nokia's former Mobile Networks business group into two distinct
organizations: one focused on products and solutions, called Mobile Networks,
and the other on services, called Global Services.
As a result of these changes, Nokia has changed its financial reporting
structure for its Networks business. As of the second quarter 2017, Nokia's
Networks business is comprised of three reportable segments and five business
groups.
1. Ultra Broadband Networks, comprised of the Mobile Networks and Fixed
Networks business groups.
* The Mobile Networks business group is comprised of the products and
solutions that resided within the previous Mobile Networks business
group. As a result of the organization change, services no longer reside
under Mobile Networks. The Mobile Networks business group provides radio
networks, converged core networks and advanced mobile networks
solutions.
* The Fixed Networks business group provides broadband access, digital
home, access management solutions and Fixed Networks services.
2. Global Services, comprised of the Global Services business group.
* The Global Services business group is comprised of the services that
resided within the previous Mobile Networks business group, including
company-wide managed services. Global Services does not include the
services of Fixed Networks, IP/Optical Networks and Applications &
Analytics, which continue to reside within the respective business
groups. The Global Services business group provides network planning and
optimization, network implementation, system integration, company-wide
managed services and care.
3. IP Networks and Applications, comprised of the IP/Optical Networks and
Applications & Analytics business groups.
* The IP/Optical Networks business group provides IP routing, optics and
IP/Optical Networks services.
* The Applications & Analytics business group provides intelligent
software and services that help service providers build strong digital
businesses including business support systems, operational support
systems, service delivery platforms, network management, emerging
businesses, as well as the software and services offerings from the
Comptel acquisition.
Recast comparative segment financial information for 2016 and Q1 2017
To provide a basis for comparison, the following tables present a recasting of
Nokia's segment financial information on an unaudited basis for all four
quarters of 2016 separately, as well as for the full year 2016 and Q1 2017.
The tables are also available in Excel format at http://nokia.com/financials.
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Q1'17 |Ultra |Glo- |IP |Nokia's|Nokia |Group |Eli- |Non- |Non- |Nokia |
+--------+Broad-|bal |Net- |Net- |Tech- |Com- |mi- |IFRS |IFRS |Total |
|EUR |band |Servi-|works |works |no- |mon and|na- |total|exclu-| |
|million |Net- |ces |and |busi- |logies|Other |tions| |sions | |
| |works | |Appli-|ness | | | | |(4) | |
| |(1) | |ca- |Total | | | | | | |
| | | |tions |(3) | | | | | | |
| | | |(2) | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Net |2 236 |1 361 |1 304 |4 902 |247 |254 |(15) |5 388|(11) |5 378 |
|sales | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Cost of |(1 |(1 |(744) |(2 967)|(13) |(227) |15 |(3 |(61) |(3 |
|sales |105) |118) | | | | | |192) | |252) |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Gross |1 131 |243 |560 |1 935 |234 |27 |0 |2 196|(71) |2 125 |
|profit | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
| % of |50.6% |17.9% |42.9% |39.5% |94.7% |10.6% | |40.8%| |39.5% |
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
| | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Research|(583) |(23) |(338) |(944) |(61) |(76) |0 |(1 |(184) |(1 |
|and | | | | | | | |080) | |265) |
|deve- | | | | | | | | | | |
|lopment | | | | | | | | | | |
|expenses| | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
| % of |26% |2% |26% |19% |25% |30% | |20% | |24% |
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
| | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Selling,|(300) |(164) |(203) |(667) |(58) |(56) |0 |(781)|(138) |(919) |
|general | | | | | | | | | | |
|and | | | | | | | | | | |
|admi- | | | | | | | | | | |
|nistra- | | | | | | | | | | |
|tive | | | | | | | | | | |
|expenses| | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
| % of |13% |12% |16% |14% |23% |22% | |14% | |17% |
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
| | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Other |(3) |(2) |4 |0 |0 |6 |0 |6 |(74) |(69) |
|income | | | | | | | | | | |
|and | | | | | | | | | | |
|expenses| | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|Opera- |245 |55 |23 |324 |116 |(99) |0 |341 |(468) |(127) |
|ting | | | | | | | | | | |
|profit | | | | | | | | | | |
|(loss) | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
| % of |11.0% |4.0% |1.8% |6.6% |47.0% |(39.0)%| |6.3% | |(2.4)%|
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+------+------+-------+------+-------+-----+-----+------+------+
|1 Mobile Networks net sales of EUR 1 735 million, Fixed Networks net sales of |
|EUR 501 million. |
+------------------------------------------------------------------------------+
|2 IP Routing net sales of EUR 621 million, Optical Networks net sales of EUR |
|324 million and Applications & Analytics net sales of EUR 359 million. |
+------------------------------------------------------------------------------+
|3 Includes Total Services net sales of EUR 1 909 million which consists of all|
|of the services sales of Nokia's Networks business, including Global Services |
|of EUR 1 361 million and the services of Fixed Networks, IP/Optical Networks |
|and Applications & Analytics. |
+------------------------------------------------------------------------------+
|4 Non-IFRS results exclude costs related to the Alcatel-Lucent transaction and|
|related integration, goodwill impairment charges, intangible asset |
|amortization and purchase price related items, restructuring and associated |
|charges, and certain other items that may not be indicative of Nokia's |
|underlying business performance. |
+------------------------------------------------------------------------------+
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Full |Ultra |Glo- |IP |Nokia's|Nokia |Group |Eli- |Non- |Non- |Nokia |
|Year |Broad-|bal |Net- |Net- |Tech- |Com- |mi- |IFRS |IFRS |Total |
|2016 |band |Ser- |works |works |no- |mon |na- |total |exclu-| |
+--------+Net- |vi- |and |busi- |logies|and |tions| |sions | |
|EUR |works |ces |Appli-|ness | |Other | | |(4) | |
|million |(1) | |ca- |Total | | | | | | |
| | | |tions |(3) | | | | | | |
| | | |(2) | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Net |9 758 |6 036|6 036 |21 830 |1 053 |1 142 |(53) |23 972|(331) |23 641|
|sales | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Cost of |(5 |(4 |(3 |(13 |(42) |(957) |53 |(14 |(801) |(15 |
|sales |210) |825) |335) |370) | | | |316) | |117) |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Gross |4 548 |1 211|2 701 |8 460 |1 011 |185 |0 |9 657 |(1 |8 524 |
|profit | | | | | | | | |133) | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
| % of |46.6% |20.1%|44.7% |38.8% |96.0% |16.2% | |40.3% | |36.1% |
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
| | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Re- |(2 |(96) |(1 |(3 777)|(249) |(287) |0 |(4 |(683) |(4 |
|search |393) | |288) | | | | |314) | |997) |
|and | | | | | | | | | | |
|deve- | | | | | | | | | | |
|lopment | | | | | | | | | | |
|expenses| | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
| % of |25% |2% |21% |17% |24% |25% | |18% | |21% |
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
| | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Selling,|(1 |(679)|(773) |(2 664)|(184) |(235) |0 |(3 |(685) |(3 |
|general |212) | | | | | | |082) | |767) |
|and | | | | | | | | | | |
|admi- | | | | | | | | | | |
|nistra- | | | | | | | | | | |
|tive | | | | | | | | | | |
|expenses| | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
| % of |12% |11% |13% |12% |17% |21% | |13% | |16% |
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
| | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Other |(21) |(30) |(25) |(76) |1 |(13) |0 |(88) |(772) |(860) |
|income | | | | | | | | | | |
|and | | | | | | | | | | |
|expenses| | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|Opera- |922 |406 |615 |1 943 |579 |(350) |0 |2 172 |(3 |(1 |
|ting | | | | | | | | |272) |100) |
|profit/ | | | | | | | | | | |
|(loss) | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
| % of |9.4% |6.7% |10.2% |8.9% |55.0% |(30.6)%| |9.1% | |(4.7)%|
|net | | | | | | | | | | |
|sales | | | | | | | | | | |
+--------+------+-----+------+-------+------+-------+-----+------+------+------+
|1 Mobile Networks net sales of EUR 7 357 million, Fixed Networks net sales of |
|EUR 2 401 million. |
+------------------------------------------------------------------------------+
|2 IP Routing net sales of EUR 2 941 million, Optical Networks net sales of EUR|
|1 564 million and Applications & Analytics net sales of EUR 1 532 million. |
+------------------------------------------------------------------------------+
|3 Includes Total Services net sales of EUR 8 531 million which consists of all|
|of the services sales of Nokia's Networks business, including Global Services |
|of EUR 6 036 million and the services of Fixed Networks, IP/Optical Networks |
|and Applications & Analytics. |
+------------------------------------------------------------------------------+
|4 Non-IFRS results exclude costs related to the Alcatel-Lucent transaction and|
|related integration, goodwill impairment charges, intangible asset |
|amortization and purchase price related items, restructuring and associated |
|charges, and certain other items that may not be indicative of Nokia's |
|underlying business performance. |
+------------------------------------------------------------------------------+
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Q1'16 |Ultra |Glo- |IP |Nokia's|Nokia|Group |Eli- |Non- |Non- |Nokia |
+---------+Broad-|bal |Net- |Net- |Tech-|Com- |mi- |IFRS |IFRS |Total |
|EUR |band |Ser- |works |works |no- |mon |na- |total|exclu-| |
|million |Net- |vi- |and |busi- |lo- |and |tions| |sions | |
| |works |ces |Appli-|ness |gies |Other | | |(4) | |
| |(1) | |ca- |Total | | | | | | |
| | | |tions |(3) | | | | | | |
| | | |(2) | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Net |2 297 |1 444|1 453 |5 193 |198 |235 |(11) |5 615|(104) |5 511 |
|sales | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Cost of |(1 |(1 |(800) |(3 188)|(2) |(209) |11 |(3 |(547) |(3 935)|
|sales |251) |137) | | | | | |388) | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Gross |1 046 |307 |653 |2 005 |196 |27 |0 |2 228|(651) |1 577 |
|profit | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |45.5% |21.3%|44.9% |38.6% |99.0%|11.5% | |39.7%| |28.6% |
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Re- |(612) |(25) |(340) |(977) |(58) |(73) |0 |(1 |(156) |(1 264)|
|search | | | | | | | |108) | | |
|and deve-| | | | | | | | | | |
|lopment | | | | | | | | | | |
|expenses | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |27% |2% |23% |19% |29% |31% | |20% | |23% |
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Selling, |(299) |(173)|(198) |(669) |(32) |(47) |0 |(748)|(224) |(972) |
|general | | | | | | | | | | |
|and admi-| | | | | | | | | | |
|nistra- | | | | | | | | | | |
|tive | | | | | | | | | | |
|expenses | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |13% |12% |14% |13% |16% |20% | |13% | |18% |
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Other |(8) |(6) |(8) |(22) |0 |(5) |0 |(27) |(25) |(52) |
|income | | | | | | | | | | |
|and | | | | | | | | | | |
|expenses | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Opera- |127 |102 |107 |337 |106 |(99) |0 |345 |(1 |(712) |
|ting | | | | | | | | |057) | |
|profit/ | | | | | | | | | | |
|(loss) | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |5.5% |7.1% |7.4% |6.5% |53.5%|(42.1)%| |6.1% | |(12.9)%|
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|1 Mobile Networks net sales of EUR 1 678 million, Fixed Networks net sales of |
|EUR 619 million. |
+------------------------------------------------------------------------------+
|2 IP Routing net sales of EUR 717 million, Optical Networks net sales of EUR |
|377 million and Applications & Analytics net sales of EUR 359 million. |
+------------------------------------------------------------------------------+
|3 Includes Total Services net sales of EUR 2 022 million which consists of all|
|of the services sales of Nokia's Networks business, including Global Services |
|of EUR 1 444 million and the services of Fixed Networks, IP/Optical Networks |
|and Applications & Analytics. |
+------------------------------------------------------------------------------+
|4 Non-IFRS results exclude costs related to the Alcatel-Lucent transaction and|
|related integration, goodwill impairment charges, intangible asset |
|amortization and purchase price related items, restructuring and associated |
|charges, and certain other items that may not be indicative of Nokia's |
|underlying business performance. |
+------------------------------------------------------------------------------+
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Q2'16 |Ultra |Glo- |IP |Nokia's|Nokia|Group |Eli- |Non- |Non- |Nokia |
+---------+Broad-|bal |Net- |Net- |Tech-|Com- |mi- |IFRS |IFRS |Total |
|EUR |band |Ser- |works |works |no- |mon |na- |total|exclu-| |
|million |Net- |vi- |and |busi- |lo- |and |tions| |sions | |
| |works |ces |Appli-|ness |gies |Other | | |(4) | |
| |(1) | |ca- |Total | | | | | | |
| | | |tions |(3) | | | | | | |
| | | |(2) | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Net |2 356 |1 444|1 421 |5 222 |194 |270 |(16) |5 670|(93) |5 576 |
|sales | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Cost of |(1 |(1 |(809) |(3 256)|(7) |(218) |16 |(3 |(81) |(3 545)|
|sales |246) |201) | | | | | |464) | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Gross |1 110 |244 |612 |1 966 |187 |52 |0 |2 205|(174) |2 031 |
|profit | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |47.1% |16.9%|43.1% |37.6% |96.4%|19.3% | |38.9%| |36.4% |
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Re- |(614) |(24) |(310) |(948) |(57) |(70) |0 |(1 |(162) |(1 236)|
|search | | | | | | | |074) | | |
|and | | | | | | | | | | |
|deve- | | | | | | | | | | |
|lopment | | | | | | | | | | |
|expenses | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |26% |2% |22% |18% |29% |26% | |19% | |22% |
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Selling, |(304) |(170)|(190) |(664) |(39) |(63) |0 |(765)|(154) |(919) |
|general | | | | | | | | | | |
|and admi-| | | | | | | | | | |
|nistra- | | | | | | | | | | |
|tive | | | | | | | | | | |
|expenses | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |13% |12% |13% |13% |20% |23% | |13% | |16% |
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Other |(9) |(15) |(17) |(41) |(2) |10 |0 |(34) |(602) |(636) |
|income | | | | | | | | | | |
|and | | | | | | | | | | |
|expenses | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|Opera- |184 |34 |95 |313 |89 |(70) |0 |332 |(1 |(760) |
|ting | | | | | | | | |092) | |
|profit/ | | | | | | | | | | |
|(loss) | | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
| % of |7.8% |2.4% |6.7% |6.0% |45.9%|(25.9)%| |5.9% | |(13.6)%|
|net sales| | | | | | | | | | |
+---------+------+-----+------+-------+-----+-------+-----+-----+------+-------+
|1 Mobile Networks net sales of EUR 1 727 million, Fixed Networks net sales of |
|EUR 629 million. |
+------------------------------------------------------------------------------+
|2 IP Routing net sales of EUR 713 million, Optical Networks net sales of EUR |
|375 million and Applications & Analytics net sales of EUR 334 million. |
+------------------------------------------------------------------------------+
|3 Includes Total Services net sales of EUR 2 039 million which consists of all|
|of the services sales of Nokia's Networks business, including Global Services |
|of EUR 1 444 million and the services of Fixed Networks, IP/Optical Networks |
|and Applications & Analytics. |
+------------------------------------------------------------------------------+
|4 Non-IFRS results exclude costs related to the Alcatel-Lucent transaction and|
|related integration, goodwill impairment charges, intangible asset |
|amortization and purchase price related items, restructuring and associated |
|charges, and certain other items that may not be indicative of Nokia's |
|underlying business performance. |
+------------------------------------------------------------------------------+
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Q3'16 |Ultra |Glo- |IP |Nokia's|Nokia|Group |Eli- |Non- |Non- |Nokia|
+----------+Broad- |bal |Net- |Net- |Tech-|Com- |mi- |IFRS |IFRS |Total|
|EUR |band |Ser- |works |works |no- |mon |na- |total|exclu-| |
|million |Net- |vi- |and |busi- |lo- |and |tions| |sions | |
| |works |ces |Appli-|ness |gies |Other | | |(4) | |
| |(1) | |ca- |Total | | | | | | |
| | | |tions |(3) | | | | | | |
| | | |(2) | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Net |2 519 |1 389|1 421 |5 329 |353 |297 |(22) |5 956|(60) |5 896|
|sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Cost of |(1 358)|(1 |(815) |(3 330)|(12) |(255) |22 |(3 |(88) |(3 |
|sales | |158) | | | | | |575) | |663) |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Gross |1 161 |231 |607 |1 998 |341 |42 |0 |2 381|(149) |2 233|
|profit | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |46.1% |16.6%|42.7% |37.5% |96.6%|14.1% | |40.0%| |37.9%|
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Re- |(575) |(23) |(303) |(901) |(65) |(70) |0 |(1 |(179) |(1 |
|search | | | | | | | |037) | |216) |
|and deve- | | | | | | | | | | |
|lopment | | | | | | | | | | |
|expenses | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |23% |2% |21% |17% |18% |24% | |17% | |21% |
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Selling, |(301) |(168)|(188) |(657) |(50) |(65) |0 |(772)|(145) |(916)|
|general | | | | | | | | | | |
|and admi- | | | | | | | | | | |
|nistra- | | | | | | | | | | |
|tive | | | | | | | | | | |
|expenses | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |12% |12% |13% |12% |14% |22% | |13% | |16% |
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Other |(7) |(1) |3 |(5) |0 |(11) |0 |(17) |(29) |(45) |
|income | | | | | | | | | | |
|and | | | | | | | | | | |
|expenses | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Operating |278 |39 |119 |435 |226 |(105) |0 |556 |(501) |55 |
|profit/ | | | | | | | | | | |
|(loss) | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |11.0% |2.8% |8.4% |8.2% |64.0%|(35.4)%| |9.3% | |0.9% |
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|1 Mobile Networks net sales of EUR 1 924 million, Fixed Networks net sales of |
|EUR 595 million. |
+------------------------------------------------------------------------------+
|2 IP Routing net sales of EUR 696 million, Optical Networks net sales of EUR |
|352 million and Applications & Analytics net sales of EUR 373 million. |
+------------------------------------------------------------------------------+
|3 Includes Total Services net sales of EUR 1 972 million which consists of all|
|of the services sales of Nokia's Networks business, including Global Services |
|of EUR 1 389 million and the services of Fixed Networks, IP/Optical Networks |
|and Applications & Analytics. |
+------------------------------------------------------------------------------+
|4 Non-IFRS results exclude costs related to the Alcatel-Lucent transaction and|
|related integration, goodwill impairment charges, intangible asset |
|amortization and purchase price related items, restructuring and associated |
|charges, and certain other items that may not be indicative of Nokia's |
|underlying business performance. |
+------------------------------------------------------------------------------+
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Q4'16 |Ultra |Glo- |IP |Nokia's|Nokia|Group |Eli- |Non- |Non- |Nokia|
+----------+Broad- |bal |Net- |Net- |Tech-|Com- |mi- |IFRS |IFRS |Total|
|EUR |band |Ser- |works |works |no- |mon |na- |total|exclu-| |
|million |Net- |vi- |and |busi- |lo- |and |tions| |sions | |
| |works |ces |Appli-|ness |gies |Other | | |(4) | |
| |(1) | |ca- |Total | | | | | | |
| | | |tions |(3) | | | | | | |
| | | |(2) | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Net |2 586 |1 759|1 740 |6 086 |309 |340 |(3) |6 731|(74) |6 657|
|sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Cost of |(1 355)|(1 |(912) |(3 596)|(21) |(275) |3 |(3 |(85) |(3 |
|sales | |329) | | | | | |889) | |974) |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Gross |1 231 |430 |829 |2 490 |287 |65 |0 |2 842|(159) |2 683|
|profit | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |47.6% |24.4%|47.6% |40.9% |92.9%|19.1% | |42.2%| |40.3%|
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Re- |(592) |(24) |(335) |(951) |(70) |(74) |0 |(1 |(185) |(1 |
|search | | | | | | | |095) | |281) |
|and deve- | | | | | | | | | | |
|lopment | | | | | | | | | | |
|expenses | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |23% |1% |19% |16% |23% |22% | |16% | |19% |
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Selling, |(308) |(169)|(197) |(674) |(63) |(60) |0 |(797)|(162) |(959)|
|general | | | | | | | | | | |
|and admi- | | | | | | | | | | |
|nistra- | | | | | | | | | | |
|tive | | | | | | | | | | |
|expenses | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |12% |10% |11% |11% |20% |18% | |12% | |14% |
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Other |3 |(7) |(3) |(8) |4 |(6) |0 |(10) |(116) |(126)|
|income | | | | | | | | | | |
|and | | | | | | | | | | |
|expenses | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|Operating |333 |230 |294 |858 |158 |(76) |0 |940 |(622) |317 |
|profit/ | | | | | | | | | | |
|(loss) | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
| % of |12.9% |13.1%|16.9% |14.1% |51.1%|(22.4)%| |14.0%| |4.8% |
|net sales | | | | | | | | | | |
+----------+-------+-----+------+-------+-----+-------+-----+-----+------+-----+
|1 Mobile Networks net sales of EUR 2 028 million, Fixed Networks net sales of |
|EUR 558 million. |
+------------------------------------------------------------------------------+
|2 IP Routing net sales of EUR 815 million, Optical Networks net sales of EUR |
|460 million and Applications & Analytics net sales of EUR 466 million. |
+------------------------------------------------------------------------------+
|3 Includes Total Services net sales of EUR 2 498 million which consists of all|
|of the services sales of Nokia's Networks business, including Global Services |
|of EUR 1 759 million and the services of Fixed Networks, IP/Optical Networks |
|and Applications & Analytics. |
+------------------------------------------------------------------------------+
|4 Non-IFRS results exclude costs related to the Alcatel-Lucent transaction and|
|related integration, goodwill impairment charges, intangible asset |
|amortization and purchase price related items, restructuring and associated |
|charges, and certain other items that may not be indicative of Nokia's |
|underlying business performance. |
+------------------------------------------------------------------------------+
About Nokia
We create the technology to connect the world. Powered by the research and
innovation of Nokia Bell Labs, we serve communications service providers,
governments, large enterprises and consumers, with the industry's most complete,
end-to-end portfolio of products, services and licensing.
From the enabling infrastructure for 5G and the Internet of Things, to emerging
applications in virtual reality and digital health, we are shaping the future of
technology to transform the human experience. www.nokia.com
Media Enquiries:
Nokia
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com
Investor Enquiries:
Nokia
Investor Relations
Tel. +358 4080 3 4080
Email: investor.relations@nokia.com
FORWARD-LOOKING STATEMENTS
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, including, without limitation, those regarding:
A) our ability to integrate Alcatel Lucent into our operations and achieve the
targeted business plans and benefits, including targeted synergies in relation
to the acquisition of Alcatel Lucent; B) expectations, plans or benefits related
to our strategies and growth management; C) expectations, plans or benefits
related to future performance of our businesses; 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) 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; G) expectations, plans or benefits related to any future collaboration
or to the business collaboration agreement and the patent license agreement
between Nokia and Apple announced on May 23, 2017, including income to be
received under any collaboration or partnership or agreement; H) timing of the
deliveries of our products and services; 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; and L) 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 strategy, sustain or improve the operational and
financial performance of our business and correctly identify and successfully
pursue business opportunities or growth; 2) our ability to achieve the
anticipated benefits, synergies, cost savings and efficiencies of the
acquisition of Alcatel Lucent, and our ability to implement our organizational
and operational structure efficiently; 3) general economic and market conditions
and other developments in the economies where we operate; 4) competition and our
ability to effectively and profitably compete and invest in new competitive
high-quality products, services, upgrades and technologies and bring them to
market in a timely manner; 5) our dependence on the development of the
industries in which we operate, including the cyclicality and variability of the
information technology and telecommunications industries; 6) 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; 7) our ability to manage and
improve our financial and operating performance, cost savings, competitiveness
and synergies after the acquisition of Alcatel Lucent; 8) our dependence on a
limited number of customers and large multi-year agreements; 9) exchange rate
fluctuations, as well as hedging activities; 10) Nokia Technologies' ability to
protect its IPR and to maintain and establish new sources of patent licensing
income and IPR-related revenues, particularly in the smartphone market; 11) our
ability to successfully realize the expectations, plans or benefits related to
any future collaboration or to the business collaboration agreement and the
patent license agreement between Nokia and Apple announced on May 23, 2017,
including income to be received under any collaboration or partnership or
agreement; 12) 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; 13) 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; 14) our
ability to identify and remediate material weaknesses in our internal control
over financial reporting; 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) Nokia
Technologies' ability to generate net sales and profitability through licensing
of the Nokia brand, particularly in digital media and digital health, and the
development and sales of products and services, as well as other business
ventures which may not materialize as planned; 18) our exposure to various
legislative frameworks and jurisdictions that regulate fraud and enforce
economic trade sanctions and policies, and the possibility of proceedings or
investigations that result in fines, penalties or sanctions; 19) adverse
developments with respect to customer financing or extended payment terms we
provide to customers; 20) 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; 21) our actual or anticipated performance,
among other factors, which could reduce our ability to utilize deferred tax
assets; 22) our ability to retain, motivate, develop and recruit appropriately
skilled employees; 23) disruptions to our manufacturing, service creation,
delivery, logistics and supply chain processes, and the risks related to our
geographically-concentrated production sites; 24) the impact of litigation,
arbitration, agreement-related disputes or product liability allegations
associated with our business; 25) our ability to optimize our capital structure
as planned and re-establish our investment grade credit rating or otherwise
improve our credit ratings; 26) our ability to achieve targeted benefits from or
successfully achieve the required administrative, legal, regulatory and other
conditions and implement planned transactions, as well as the liabilities
related thereto; 27) our involvement in joint ventures and jointly-managed
companies; 28) the carrying amount of our goodwill may not be recoverable; 29)
uncertainty related to the amount of dividends and equity return we are able to
distribute to shareholders for each financial period; 30) pension costs,
employee fund-related costs, and healthcare costs; and 31) risks related to
undersea infrastructure, as well as the risk factors specified on pages 67 to
85 of our 2016 annual report on Form 20-F under "Operating and financial review
and prospects-Risk factors" and in our other filings 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.
[]
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