TIDMNOKIA 
 
   Nokia Corporation 
 
   Interim report 
 
   29 October 2020 at 08:00 (CET +1) 
 
   Nokia Corporation Interim Report for Q3 and January-September 2020 
 
   Solid margin and free cash flow; net sales decline primarily due to 
services 
 
 
   -- Continued improvements in our Mobile Access portfolio; reducing product 
      costs and improving product performance; commitment to invest in R&D to 
      drive product leadership 
 
   -- 7% year-on-year decrease in net sales, largely driven by lower services 
      within Mobile Access, consistent with our expectation for lower network 
      deployment services 
 
   -- Strong year-on-year growth in Nokia Enterprise 
 
   -- Continued margin expansion year-on-year, primarily driven by Mobile 
      Access and Optical Networks 
 
   -- Positive operating profit, on a reported basis, in Q3 and first nine 
      months of 2020 
 
   -- Solid free cash flow in Q3 and the first nine months of 2020 
 
   -- Adjusted 2020 outlook midpoints for non-IFRS EPS to EUR 0.23 (from EUR 
      0.25) and operating margin to 9.0% (from 9.5%), with the new midpoints 
      and ranges within the previously provided outlook ranges 
 
   -- Provided new outlook for 2021 non-IFRS operating margin of 7-10% 
 
   -- Long term outlook to be provided latest at the Capital Markets Day on 
      March 18, 2021 
 
 
 
   This is a summary of the Nokia Corporation Interim Report for Q3 and 
January-September 2020 published today. The complete Interim Report for 
Q3 and January-September 2020 with tables is available at 
https://www.globenewswire.com/Tracker?data=XPamBNLwnKNl3BEKUNYJTX0CC4JMvJL021VFHQy5bfkzgDSwSbuAjicQt7Kg-Bj6PX3QaF48ID84mBhPlshAZdkj-RSoco_QNQuwFMryH2U= 
www.nokia.com/financials. Investors should not rely on summaries of our 
financial reports only, but should review the complete financial reports 
with tables. 
 
   PEKKA LUNDMARK, PRESIDENT AND CEO, ON Q3 2020 RESULTS 
 
 
 
 
 
   In my first quarter as CEO of Nokia, I have seen both opportunities and 
challenges. As our solid Q3 results demonstrate, we are making good 
progress in many parts of our business. Profitability was up on a 
year-on-year basis, we had the fifth consecutive quarter of solid free 
cash flow, Nokia Enterprise maintained its double-digit growth, and we 
continued to strengthen the competitiveness and cost position of our 
mobile radio products. 
 
   When I look ahead, however, the good progress we have made is not 
enough. Our financial performance in 2021 is expected to be challenging, 
and more change is needed. We have lost share at one large North 
American customer, see some margin pressure in that market, and believe 
we need to further increase R&D investments to ensure leadership in 5G. 
In fact, we have decided that we will invest whatever it takes to win in 
5G. Our customers are counting on us and we will be there for them. 
 
   We announced separately today some important changes to our operating 
model. The goal of this new model is to better align with the needs of 
our customers, and through that improve our performance and create 
shareholder value. The changes announced today mark a shift from 
end-to-end as a strategic principle to a more focused approach with each 
business group having a distinct role in our overall strategy. 
 
   Each of the four new business groups will have P&L responsibility and 
ownership of creating a path to becoming one of the market leaders in 
their respective sector. The changes optimize our operating model for 
better accountability and transparency, increased simplicity and 
cost-efficiency. 
 
   We plan to share more details about our strategy in December and at a 
Capital Markets Day in March. A more rigorous approach to capital 
allocation will be key to our strategic direction. As a technology 
company we will invest to win in those segments where we choose to 
compete. 
 
   Equally important is our view of the future, where we see an opportunity 
to lead in "network-as-a-service" business models for telecom operators 
and enterprise customers. This change offers a broad opportunity for 
Nokia to provide a trusted, software-led and cloud-based network 
capability that can be rapidly integrated, deployed, and self-managed as 
a complete service, allowing us to move up the value chain and provide 
additional "network plus" value-adding services. This vision will take 
time to become a reality, but Nokia is well positioned to win given our 
deep experience in delivering carrier-grade network performance and 
extensive work with webscale companies and enterprises. 
 
   I have no doubt that the potential of Nokia is substantial, even if 
delivering on that promise will take time. We expect to stabilize our 
financial performance in 2021 and deliver progressive improvement 
towards our long-term goal after that. We intend to provide an update on 
long-term outlook at the latest on Capital Markets Day. I am confident 
that with the right strategy, focus, and operating model we will be 
successful. Today, we embark on that journey. 
 
   NOKIA FINANCIAL RESULTS 
 
 
 
 
                                               Constant                                 Constant 
EUR million (except                    YoY      currency                        YoY      currency 
 for EPS in EUR)        Q3'20  Q3'19  change   YoY change  Q1-Q3'20  Q1-Q3'19  change   YoY change 
----------------------  -----  -----  ------  -----------  --------  --------  ------  ----------- 
Net sales               5 294  5 686    (7)%         (3)%    15 299    16 412    (7)%         (6)% 
    Networks            4 112  4 434    (7)%         (3)%    11 825    12 770    (7)%         (6)% 
    Nokia Software        585    677   (14)%        (10)%     1 795     1 898    (5)%         (4)% 
    Nokia Technologies    331    358    (8)%         (8)%     1 020     1 112    (8)%         (8)% 
    Group Common and 
     Other                275    236     17%          16%       691       720    (4)%         (5)% 
    Non-IFRS 
     exclusions           (1)    (2)                            (2)      (29) 
    Eliminations          (9)   (17)                           (29)      (58) 
Gross profit            1 976  1 969      0%                  5 760     5 614      3% 
Operating 
 profit/(loss)            350    264     33%                    444     (318) 
    Networks              263    128    105%                    431       (7) 
    Nokia Software         87    156   (44)%                    246       286   (14)% 
    Nokia Technologies    274    294    (7)%                    846       919    (8)% 
    Group Common and 
     Other              (138)  (100)                          (499)     (329) 
    Non-IFRS 
     exclusions         (136)  (214)                          (581)   (1 187) 
Operating margin %       6.6%   4.6%  200bps                   2.9%    (1.9)%  480bps 
Net sales (non-IFRS)    5 294  5 688    (7)%         (3)%    15 301    16 441    (7)%         (6)% 
Gross profit 
 (non-IFRS)             1 981  2 006    (1)%                  5 785     5 765      0% 
Operating profit 
 (non-IFRS)               486    478      2%                  1 025       869     18% 
Operating margin % 
 (non-IFRS)              9.2%   8.4%   80bps                   6.7%      5.3%  140bps 
                        -----  -----  ------               --------  --------  ------ 
Financial income and 
 expenses                (73)   (98)   (26)%                  (134)     (326)   (59)% 
Income taxes             (74)   (80)                          (124)       108 
Profit/(loss) for the 
 period                   203     87    133%                    187     (545) 
EPS, diluted             0.04   0.01    300%                   0.03    (0.10) 
Financial income and 
 expenses (non-IFRS)     (78)  (113)   (31)%                  (172)     (291)   (41)% 
Income taxes 
 (non-IFRS)             (103)  (101)      2%                  (202)     (161)     25% 
Profit for the period 
 (non-IFRS)               305    267     14%                    653       409     60% 
EPS, diluted 
 (non-IFRS)              0.05   0.05      0%                   0.11      0.07     57% 
                        -----  -----  ------               --------  --------  ------ 
 
 
   The financial information in this report is unaudited. Non-IFRS results 
exclude costs related to the acquisition of Alcatel-Lucent and related 
integration, goodwill impairment charges, intangible asset amortization 
and other purchase price fair value adjustments, restructuring and 
associated charges and certain other items that may not be indicative of 
Nokia's underlying business performance. For details, please refer to 
note 2, "Non-IFRS to reported reconciliation", in the notes to the 
Financial statement information included in Nokia Corporation Interim 
Report for Q3 and January-September 2020. Change in net sales at 
constant currency excludes the effect of changes in exchange rates in 
comparison to euro, our reporting currency. For more information on 
currency exposures, please refer to note 1, "Basis of Preparation", in 
the "Financial statement information" section included in Nokia 
Corporation Interim Report for Q3 and January-September 2020. 
 
 
   -- Both non-IFRS and reported net sales in Q3 2020 were EUR 5.3bn, compared 
      to EUR 5.7bn in Q3 2019. On a constant currency basis, both non-IFRS and 
      reported net sales decreased 3%, primarily due to services within Mobile 
      Access. The services-related declines in Q3 2020 were primarily driven by 
      lower levels of network deployment services, consistent with our 
      expectation, as disclosed in our Outlook section of the Report for Q2 and 
      Half Year 2020. In Nokia Enterprise, we continued to make great progress 
      and delivered 15% year-on-year growth in net sales. 
 
   -- The impact of COVID-19 on Nokia's financial performance and financial 
      position was primarily related to factory closures, resulting in a net 
      sales impact of approximately EUR 200 million in the first nine months of 
      2020, with the majority of these net sales expected to be shifted to 
      future periods, rather than being lost. At the end of Q3 2020, we were no 
      longer experiencing factory closures related to COVID-19. In addition, 
      COVID-19 has affected our operational costs, and we now expect a 
      temporary benefit of approximately EUR 250 million due to lower travel 
      and personnel expenses related to COVID-19 in full year 2020. 
 
   -- In Q3 2020, non-IFRS gross margin was 37.4% (reported 37.3%) and non-IFRS 
      operating margin was 9.2% (reported 6.6%). During the period, Nokia 
      continued to deliver improvements in gross margin and operating margin. 
 
   -- In Networks, gross profit and operating profit increased, driven 
      primarily by improved performance in Mobile Access and Optical Networks. 
      In Mobile Access, we continued to drive improvements in our portfolio by 
      strengthening our roadmaps, reducing product costs and improving our 
      product performance. In Optical Networks, our significantly improved 
      year-on-year results were due to a particularly strong Q3 2020, which 
      benefitted from pent-up demand, following the easing of temporary supply 
      chain constraints related to COVID-19. 
 
   -- Non-IFRS diluted EPS in Q3 2020 was EUR 0.05, compared to EUR 0.05 in Q3 
      2019, primarily driven by continued progress related to our cost savings 
      program and a net positive fluctuation in financial income and expenses, 
      partially offset by a net negative fluctuation in other operating income 
      and expense, higher investments in 5G R&D to accelerate our product 
      roadmaps and cost competitiveness in Mobile Access and lower gross 
      profit. 
 
   -- Reported diluted EPS in the first nine months of 2020 was EUR 0.03, 
      compared to negative EUR 0.10 in the first nine months of 2019. The 
      change was primarily driven by lower amortization of acquired intangible 
      assets, continued progress related to our cost savings program, a net 
      positive fluctuation in financial income and expenses and lower costs 
      related to network equipment swaps, partially offset by higher 
      investments in 5G R&D to accelerate our product roadmaps and cost 
      competitiveness in Mobile Access and a net negative fluctuation in other 
      operating income and expense. 
 
   -- Q3 2020 was the fifth quarter in a row of solid free cash flow. We 
      established a program in Q1 2019 to focus on free cash flow. Since 
      establishing this program, reduced working capital has been a significant 
      source of cash, principally because of lower net sales and, to a lesser 
      extent, improved execution. During Q3 2020, net cash increased by 
      approximately EUR 0.3 billion, resulting in an end-of-quarter net cash 
      balance of approximately EUR 1.9 billion. During Q3 2020, total cash 
      increased by approximately EUR 0.1 billion, resulting in an 
      end-of-quarter total cash balance of approximately EUR 7.6 billion. 
 
 
 
 
   COVID-19 
 
 
 
   The COVID-19 pandemic has made vividly clear the critical importance of 
connectivity to keep society functioning. We believe we have a resilient 
customer base, and we feel a sense of duty to our customers and the 
communities they serve. 
 
   We believe the impact of COVID-19 on Nokia's financial performance and 
financial position has so far been primarily related to factory 
closures. Due to significant uncertainties and risks in estimating the 
impact of customer-related delivery and implementation challenges, we 
are now focusing our COVID-19 disclosure on the impact of factory 
closures, which have had a net sales impact of approximately EUR 200 
million in the first nine months of 2020, with the majority of these net 
sales expected to be shifted to future periods, rather than being lost. 
At the end of Q3 2020, we were no longer experiencing factory closures 
related to COVID-19. The EUR 200 million of negative impact in the first 
nine months of 2020 relates primarily to Alcatel Submarine Networks 
within Group Common and Other, which experienced temporary factory 
closures that impacted Q1 2020 and Q2 2020. 
 
   COVID-19 also affected our operational costs (for example, temporary 
lower travel), capital expenditures (temporary delays), cash outflows 
related to taxes (tax relief), and net working capital (for example, 
lower inventories due to temporary disruptions). In full year 2020, we 
now expect a temporary benefit of approximately EUR 250 million due to 
lower travel and personnel expenses related to COVID-19, of which 
approximately EUR 150 million is expected to benefit operating expenses 
and approximately EUR 100 million is expected to benefit cost of sales. 
 
   Potential risks and uncertainties continue to exist related to the scope 
and duration of the COVID-19 impact and the pace and shape of the 
economic recovery following the pandemic. 
 
   During the COVID-19 pandemic, we have continued to advance our 5G 
roadmap and product evolution, as planned, and we believe that our 
COVID-19 mitigation actions in R&D have been successful. We believe we 
remain on track with our plans to drive progressive improvement over the 
course of 2020. 
 
   Health and safety 
 
   Naturally, Nokia's first focus during the COVID-19 pandemic is to our 
employees. We have in place strict protocols for Nokia facilities and 
provided clear advice to our employees about how they can mitigate the 
risks of COVID-19 in situations where they have to go about critical 
work. 
 
   We have taken a range of steps, including banning international travel 
for Nokia employees, except for strictly-defined 'critical' reasons; 
closing all our facilities to all visitors, with the exception of people 
engaged in essential maintenance and services, and asking our staff to 
work from home wherever possible. We started implementing these measures 
in some regions already in January and have updated guidance as the 
situation has developed. 
 
   As the overwhelming majority of Nokia employees continue working 
remotely, we are providing guidance on how staff can maintain a healthy 
work-life balance and look after their physical and mental well-being. 
 
   Supporting the essential services our customers provide 
 
   The products and services that we provide have never been more critical 
in enabling the world to continue to function in an orderly way. We 
continue to work closely with all our customers, to ensure that the 
changing needs and requirements at this time are well understood and 
that we respond appropriately to them. 
 
   In Q3 2020, connectivity continued to bring together people isolated 
from each other by the COVID-19 pandemic. Remote working and schooling, 
robust delivery of basic services and smart deliveries are just some 
examples that have been enabled by our connectivity solutions. Our 
shared value project with UNICEF in Kenya continued in Q3 2020 with the 
first schools connected in September using our Fixed Wireless Access 
solution, FastMile. The work started in early 2018. The current COVID-19 
pandemic has underlined the importance of connectivity to enable digital 
learning and inclusion. 
 
   Nokia has a global manufacturing footprint designed for optimized global 
supply, and to mitigate against risks such as local disruptive events, 
transportation capacity problems, and political risks. Our supply 
network consists of 25 factories around the globe and six hubs for 
customer fulfillment. As a result, at the Nokia level, we are not 
dependent on one location or entity. We have also established a global 
command center to manage the supply chain challenges arising from the 
outbreak; and we are ready to activate relevant business continuity 
plans should the situation in any part of our organization require this. 
 
   Impact on asset valuations 
 
   COVID-19 has affected the valuations of certain assets, including 
investments in non-publicly quoted assets through Nokia's venture fund 
investments and pension plans, the valuation of which is inherently 
challenging in fast-moving market conditions. In Q3 2020, the valuation 
uncertainty has decreased compared to Q2 2020 but still remains elevated 
(for details, please refer to note 5 "Pensions and other post-employment 
benefits" and note 8 "Fair value of financial instruments") in the 
"Financial statement information" section included in Nokia Corporation 
interim report for Q3 and January-September 2020). 
 
   In relation to its financial statements as of September 30, 2020, Nokia 
has also considered the indicators of impairment of goodwill and other 
intangible assets, recoverability of deferred tax assets, valuation of 
inventories, and collectability of trade receivables and contract 
assets. Based on these assessments, COVID-19 is currently not expected 
to have long-term effects on Nokia's financial performance that would 
require adjustments to the carrying amounts of goodwill and other 
intangible assets or deferred tax assets. Also, Nokia has not identified 
any material increase in the amount of bad debt or need to adjust the 
valuation of inventories. 
 
   Doing our part to fight the pandemic 
 
   We also feel another sense of duty -- to the societies where Nokia 
operates. As a global company, we have a duty to be part of the global 
fight against this pandemic. In Q3 2020, we also continued our support 
for the mHealth program with UNICEF in Indonesia where their real-time 
big data and artificial intelligence platform is allowing policymakers 
and citizens to understand the levels of physical distancing, movement 
and mobility at the village level. As a result of the insights from the 
platform, UNICEF Indonesia has been able to materially assist in the 
formation of evidence-based policy to fight COVID-19, ensuring a lower 
disease burden and a brighter future in Indonesia. 
 
   These actions demonstrate our strong commitment to supporting global 
efforts to end the pandemic and overcoming the disruption and challenges 
we currently face. 
 
   OUTLOOK 
 
   Full Year 2020 
 
 
 
 
Non-IFRS diluted earnings   EUR 0.23 plus or minus 3 cents (adjusted from 
 per share                   EUR 0.25 plus or minus 5 cents) 
--------------------------  -------------------------------------------------- 
Non-IFRS operating margin   9.0% plus or minus 1.0 percentage points (adjusted 
                             from 9.5% plus or minus 1.5 percentage points) 
Recurring free cash         EUR 600 million plus or minus EUR 250 million 
flow(1)                      (adjusted from clearly positive) 
 
 
   (1)     Free cash flow = net cash from/(used in) operating activities - 
capital expenditures + proceeds from sale of property, plant and 
equipment and intangible assets -- purchase of non-current financial 
investments + proceeds from sale of non-current financial investments. 
 
   Full Year 2021 
 
 
 
 
Non-IFRS operating margin  7 - 10% (new) 
 
 
 
   Long term 
 
 
 
 
Nokia intends to provide a long term outlook, latest at Capital Markets 
 Day on March 18, 2021 (This is in comparison to our previous long term 
 outlook for 12-14% non-IFRS operating margin in 3 to 5 years.) Due to 
 ongoing work related to our strategy and new operating model, we believe 
 it would be premature to provide a long-term outlook. 
 
 
 
   Dividend 
 
 
 
 
Long term (3 to 5 years) annual dividend distribution target: an earnings-based 
 growing dividend of approximately 40% to 70% of non-IFRS diluted EPS, 
 taking into account Nokia's cash position and expected cash flow. The 
 annual distribution would be paid as quarterly dividends. 
 
 
 
   KEY DRIVERS OF NOKIA'S OUTLOOK 
 
   Networks and Nokia Software are expected to be influenced by factors 
including: 
 
 
   -- Our expectation that we will underperform our primary addressable market, 
      which is expected to decline on a constant currency basis in full year 
      2020, excluding China (This is in comparison to our earlier commentary to 
      slightly underperform our primary addressable market, which is expected 
      to be flattish on a constant currency basis, excluding China). We lowered 
      our expectations regarding network deployment services within Mobile 
      Access, and we lowered our expectations for our primary addressable 
      market, excluding China, due to the impact of COVID-19; 
 
   -- Our expectation for operating profit seasonality in 2020 to be similar to 
      2019, with the majority of operating profit to be generated in the fourth 
      quarter. Due to our strong free cash flow performance in the first nine 
      months of 2020, we no longer expect our free cash flow seasonality in 
      2020 to be similar to 2019; 
 
   -- Potential risks and uncertainties related to the scope and duration of 
      the COVID-19 impact and the pace and shape of the economic recovery 
      following the pandemic; 
 
   -- Competitive intensity, which is particularly impacting Mobile Access and 
      is expected to continue at a high level in full year 2020, as some 
      competitors seek to take share in the early stage of 5G; 
 
   -- Our expectation that we will accelerate our product roadmaps and cost 
      competitiveness through additional 5G investments in 2020, thereby 
      enabling us to drive product cost reductions and maintain the necessary 
      scale to be competitive; 
 
   -- Our expectation that we will drive improvements in automation and 
      productivity through additional digitalization investments in 2020; 
 
   -- Customer demand could weaken and risk could increase further in India, 
      after the country's Supreme Court upheld a ruling that telecoms companies 
      must pay retroactive license and spectrum fees; 
 
   -- Opportunities and risks in North America following the completion of a 
      merger, and, more broadly, the potential for temporary capital 
      expenditure constraints due to potential mergers or acquisitions by our 
      customers; 
 
   -- The timing of completions and acceptances of certain projects; 
 
   -- Some customers are reassessing their vendors in light of security 
      concerns, creating near-term pressure to invest in order to secure 
      long-term benefits; 
 
   -- Our expectation that we will improve our R&D productivity and reduce 
      support function costs through the successful execution of our cost 
      savings program, which is explained in more detail in the Cost savings 
      program section of Nokia Corporation interim report for Q3 and 
      January-September; 
 
   -- Our product and regional mix, including the impact of the high cost level 
      associated with our first generation 5G products; and 
 
   -- Macroeconomic, industry and competitive dynamics. 
 
 
   Nokia Technologies is expected to be influenced by factors including: 
 
 
   -- The timing and value of new and existing patent licensing agreements with 
      smartphone vendors, automotive companies and consumer electronics 
      companies; 
 
   -- Results in brand and technology licensing; 
 
   -- Costs to protect and enforce our intellectual property rights; and 
 
   -- The regulatory landscape. 
 
 
   Additionally, our outlook is based on the following assumptions: 
 
 
   -- Nokia's outlook for recurring free cash flow in 2020 is expected to be 
      supported by an improvement in net working capital performance and 
      improved operational results, partially offset by a more substantial 
      difference in 2020 between profit and free cash flow in Nokia 
      Technologies; 
 
   -- In 2020 and 2021, Nokia expects the free cash flow performance of Nokia 
      Technologies to be approximately EUR 600 million lower than its operating 
      profit, primarily due to certain major prepayments we received from 
      certain licensees in 2014 and 2017 (new); 
 
   -- Non-IFRS financial income and expenses are expected to be an expense of 
      approximately EUR 250 million in full year 2020 and EUR 300 million over 
      the longer-term. (This is in comparison to earlier commentary for an 
      expense of EUR 300 million in full year 2020 and per annum over the 
      longer-term). Our updated commentary is primarily due to our expectation 
      for lower costs related to the sale of receivables and improved FX 
      results driven by lower expected hedging costs; 
 
   -- Non-IFRS income taxes are expected at a rate of approximately 26% in full 
      year 2020 and approximately 25% over the longer-term, subject to the 
      absolute level of profits, regional profit mix and changes to our 
      operating model; 
 
   -- Cash outflows related to income taxes are expected to be approximately 
      EUR 350 million in full year 2020 and approximately EUR 400 million per 
      annum over the longer term until our US or Finnish deferred tax assets 
      are fully utilized (This is in comparison to earlier commentary for EUR 
      400 million in full year 2020 and EUR 450 million per annum over the 
      longer term.) Our updated commentary is primarily due to our expectation 
      for lower cash taxes in 2020, driven by COVID-19-related tax reliefs and 
      delayed timing of certain tax outflows; and uncertainty related to timing 
      of certain expected cash tax outflows over the longer term; and 
 
   -- Capital expenditures are expected to be approximately EUR 500 million in 
      full year 2020. (This is in comparison to earlier commentary for EUR 550 
      million in full year 2020 and EUR 600 million over the longer-term.) We 
      are not currently providing longer-term assumptions for capital 
      expenditures, and our updated full year 2020 commentary is primarily due 
      to temporary delays related to COVID-19. 
 
   ANALYST CONFERENCE CALL 
 
   Nokia's analyst conference call will begin on October 29, 2020 at 3 p.m. 
Finnish time. A link to the webcast of the conference call will be 
available at 
https://www.globenewswire.com/Tracker?data=XPamBNLwnKNl3BEKUNYJTX0CC4JMvJL021VFHQy5bfnvHiKtkSXQWBrMsTeJA1xZL2FioION4BsTg7fOleQmmRH9g8k1XBq1TorDWiQrMoWfuTL3WpA4pGOJ4K5CodgrGnFz4fZl5sdAieB4KbHTXfT-eRJajYxzDG1I6HMPxHwmvxxlLnSZvva89fCBDclfI74LS31pqfM8sM1FDDqv1oEPazpvLz8zs_I4Rj36tl_PH5dOtVntxA9C4g8ZYZZWZuobXnYpeYWF6xb2U0tDGA== 
www.nokia.com/financials. Media representatives can listen in via the 
link, or call +1-412-717-9224. 
 
   Media Inquiries: 
 
   Nokia Communications 
 
   Tel. +358 10 448 4900 
 
   Email: 
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press.services@nokia.com 
 
   Katja Antila, Head of Media Relations 
 
   Investor Inquiries: 
 
   Nokia Investor Relations 
 
   Tel. +358 40 803 4080 
 
   Email: 
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investor.relations@nokia.com 
 
   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 6.4 
billion subscriptions with our radio networks, and our enterprise 
customers have deployed over 1,300 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. 
 
   RISKS AND 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 (including the expected impact, 
timing and duration of that impact of COVID-19 on our businesses, our 
supply chain and our customers' businesses) and any 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; 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, ReefShark and 
increased digitalization; M) expectations regarding our customers' 
future actions, including our customers' capital expenditure constraints 
and our ability to satisfy customer's needs and retain their business; 
and N) statements preceded by or including "believe", "expect", 
"expectations", "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 our 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 them. 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 and the possibility of our 
customers awarding business to our competitors; 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 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 (if any) 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; 31) risks related to 
undersea infrastructure; and 32) the scope and duration of the COVID-19 
impact on the global economy and financial markets as well as our 
customers, supply chain, product development, service delivery, other 
operations and our financial, tax, pension and other assets, and the 
shape of the economic recovery following the pandemic as well as the 
risk factors specified in our 2019 annual report on Form 20-F published 
on March 5, 2020 under "Operating and financial review and 
prospects-Risk factors" as supplemented by the form 6-K published on 
April 30, 2020 under the header "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. 
 
 
 
   Attachment 
 
 
   -- Nokia_ results_2020_Q3 
      https://ml-eu.globenewswire.com/Resource/Download/41cd8e58-6650-4158-a9d3-351acd69b13c 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

October 29, 2020 02:15 ET (06:15 GMT)

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