TIDMNOKIA
Nokia Corporation
Inside information
March 2, 2020 at 8:15 (CET +1)
Pekka Lundmark appointed President and CEO of Nokia; Rajeev Suri to step
down after more than a decade as President and CEO of Nokia and Nokia
Siemens Networks
Espoo, Finland -- Nokia's Board of Directors has appointed Pekka
Lundmark as President and Chief Executive Officer of Nokia. Lundmark is
expected to start in his new role on September 1, 2020.
Lundmark is currently President and CEO of Fortum, a leading energy
company based in Espoo, Finland, where he consistently delivered robust
total shareholder returns, successfully renewed the company's strategy,
and positioned it to be a strong player in the transforming global
energy sector. Prior to Fortum, Lundmark served as President and CEO of
Konecranes, a global material-handling technology leader, and from
1990-2000 he held multiple executive positions at Nokia, including Vice
President of Strategy and Business Development at Nokia Networks.
Lundmark holds a Master of Science degree from Helsinki University of
Technology. He will be based in Espoo, Finland.
"With the acquisition of Alcatel-Lucent behind us and the world of 5G in
front of us, I am pleased that Pekka has agreed to join Nokia," said
Risto Siilasmaa, Nokia Board Chair. "He has a record of leadership and
shareholder value creation at large business-to-business companies; deep
experience in telecommunications networks, industrial digitization, and
key markets such as the United States and China; and a focus on
strategic clarity, operational excellence and strong financial
performance."
"I am honored to have the opportunity to lead Nokia, an extraordinary
company that has so much potential and so many talented people," said
Lundmark. "Together we can create shareholder value by delivering on
Nokia's mission to create the technology to connect the world. I am
confident that the company is well-positioned for the 5G era and it is
my goal to ensure that we meet our commitments to our customers,
employees, shareholders and other stakeholders. Strong values, leading
innovation and unflinching commitment to our customers have always been
core to Nokia and I want to put this even more at our center as we move
forward."
Rajeev Suri, Nokia's current President and CEO, indicated earlier to the
Board that he was considering stepping down from his role at some point
in the future, provided a solid succession plan was in place. Nokia's
Board of Directors has conducted a structured process for CEO succession
and has been working closely with Suri to develop internal candidates
and identify external candidates. That process culminated today, March
2, 2020, when Nokia's Board of Directors made the decision to move
forward with Lundmark's appointment.
"After 25 years at Nokia, I have wanted to do something different," said
Suri. "Nokia will always be part of me, and I want to thank everyone
that I have worked with over the years for helping make Nokia a better
place and me a better leader. I leave the company with a belief that a
return to better performance is on the horizon and with pride for what
we have accomplished over time. Pekka is an excellent choice for Nokia.
I look forward to working with him on a smooth transition and wish him
the best success in his new role."
"On behalf of the entire Board of Directors I would like to thank Rajeev
for his many contributions to Nokia, where he has served with both honor
and distinction," said Siilasmaa. "Rajeev's loyalty, commitment, and
deep personal integrity have served as an example to all of Nokia. I
know that Rajeev will, like myself, always have Nokia blue running
through his veins."
Suri will leave his current position on August 31, 2020 and continue to
serve as an advisor to the Nokia Board until January 1, 2021. During his
tenure as CEO of Nokia and Nokia Siemens Networks, Suri led a
significant consolidation of the telecommunications infrastructure
sector; a fundamental turnaround of Nokia Siemens Networks including the
disposal of multiple non-core assets; massive growth in the company's
highly profitable patent licensing business; the integration of
Alcatel-Lucent; and successful diversification into new software and
enterprise markets. Under his leadership, Nokia became one of the top
two players in telecommunications infrastructure, rising from a number
four position, with the scope and scale for long-term success.
"Pekka is the right person to lead Nokia in the coming years," said Sari
Baldauf, Nokia Board Vice Chair and Chair nominee. "I look forward to
working closely with him and Nokia's leadership team to build an even
stronger company, one well positioned for the future."
"I would also like to extend my personal thanks to Rajeev," continued
Baldauf. "He has been at the heart of a dramatic transformation of Nokia
into one of the top players in the telecommunications infrastructure
industry. His time at Nokia has been characterized by significant
achievements, a relentless customer focus and a clear commitment to
building a company culture based on both performance and respect. Rajeev
leaves Nokia with my gratitude and appreciation for all he has done for
the company."
A press conference for media will be held today at 11:00 EET at Nokia's
Executive Experience Center at Karakaari 18, Espoo, and via webcast at
https://my.icareus.com/web/bright/player/embed/webcast?eventId=42144713&playerId=42073592.
Members of the media are kindly requested to bring their press
credentials.
***
About Pekka Lundmark
Born: 1963
Nationality: Finnish
Master of Science, Helsinki University of Technology, Department of
Technical Physics, 1988
Married, three children
Professional experience
Fortum Corporation, President and CEO, September 2015 - current
Konecranes Plc, President and CEO, 2005 - 2015
Konecranes Plc, Group Executive Vice President, 2004 - 2005
Hackman Oyj Abp, President and CEO, 2002 - 2004
Startupfactory Oy, Managing Partner, 2000 - 2002
Nokia Corporation, various executive positions, 1990 - 2000
About Nokia
We create the technology to connect the world. Only Nokia offers a
comprehensive portfolio of network equipment, software, services and
licensing opportunities across the globe. With our commitment to
innovation, driven by the award-winning Nokia Bell Labs, we are a leader
in the development and deployment of 5G networks.
Our communications service provider customers support more than 6.1
billion subscriptions with our radio networks, and our enterprise
customers have deployed over 1,000 industrial networks worldwide.
Adhering to the highest ethical standards, we transform how people live,
work and communicate. For our latest updates, please visit us online
www.nokia.com and follow us on Twitter @nokia.
Media Enquiries:
Nokia
Communications
Tel. +358 (0) 10 448 4900
Email: press.services@nokia.com
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Katja Antila, Head of Media Relations
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. 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, growth management and operational
key performance indicators; B) expectations, plans or benefits related
to future performance of our businesses and any expected future
dividends including timing and qualitative and quantitative thresholds
associated therewith; C) expectations and targets regarding financial
performance, cash generation, results, the timing of receivables,
operating expenses, taxes, currency exchange rates, hedging, cost
savings, product cost reductions and competitiveness, as well as results
of operations including targeted synergies, better commercial management
and those results 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
competition within our market, market developments, general economic
conditions and structural and legal change globally and in national and
regional markets, such as China; 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, investment
requirements with such rollout, and our ability to capitalize on such
rollout; as well as 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 current cost savings
program; L) expectations, plans or benefits related to future capital
expenditures, reduction of support function costs, temporary incremental
expenditures or other R&D expenditures to develop or rollout software
and other new products, including 5G and increased digitalization; M)
expectation regarding our customers' future capital expenditure
constraints and our ability to satisfy customer concerns; and N)
statements preceded by or including "believe", "expect", "expectations",
"consistent", "deliver", "maintain", "strengthen", "target", "estimate",
"plan", "intend", "assumption", "focus", "continue", "should", "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, general public
health conditions (including its impact on our supply chains) 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 existing and new 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, as well as external events
impacting our customers including mergers and acquisitions; 6) our
ability to maintain our existing sources of intellectual
property-related revenue through our intellectual property, including
through licensing, establishing new sources of revenue and protecting
our intellectual property from infringement; 7) our ability to manage
and improve our financial and operating performance, cost savings,
competitiveness and synergies generally, expectations and timing around
our ability to recognize any net sales 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; 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,
or our customers' security concerns; 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.
(END) Dow Jones Newswires
March 02, 2020 01:30 ET (06:30 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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