Nokia filing today its annual report on Form 20-F for 2012; reiterating its longer-term financial targets and providing additional information on its agreement with Microsoft

Thu Mar 7, 2013 9:13am EST

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Nokia Corporation
Stock Exchange Release
March 7, 2013 at 16.10 (CET +1)

Espoo, Finland - Nokia announced that it is today filing its annual report on Form 20-F for 2012
with the US Securities and Exchange Commission. In the report, Nokia reiterates longer-term
financial targets, and provides additional information in relation to its agreement with
Microsoft.

The report will be shortly available in pdf format through http://www.nokia.com/financials
http://www.nokia.com/financials . Shareholders may request a hard copy of the report free of
charge through Nokia's Internet pages.

Longer-term financial targets

In this annual report, Nokia reiterated its longer-term financial targets for its Devices &
Services business and Nokia Siemens Networks.

Longer-term, Nokia continues to target:

- Devices & Services net sales to grow faster than the market.
- Devices & Services non-IFRS operating margin to be 10% or more.

Longer-term, Nokia Siemens Networks continues to target for its non-IFRS operating margin to be
between 5% and 10%.

Additional disclosure on Microsoft agreement

This annual report also includes additional information in relation to Nokia's agreement with
Microsoft, including mainly the following:

- The remaining minimum software royalty commitment payments from Nokia to Microsoft are expected
to exceed the remaining platform support payments from Microsoft to Nokia by a total of
approximately EUR 0.5 billion over the remaining life of the agreement.
- However, in 2013 the amount of the platform support payments from Microsoft to Nokia is still
expected to slightly exceed the total amount of the minimum software royalty commitment payments
from Nokia to Microsoft.

This release includes information on a non-IFRS, or underlying business performance, basis.
Non-IFRS information excludes special items for all periods. In addition, non-IFRS results exclude
intangible asset amortization, other purchase price accounting related items and inventory value
adjustments arising from the formation of Nokia Siemens Networks and from all business
acquisitions. Nokia believes that non-IFRS financial measures provide meaningful supplemental
information to both management and investors regarding Nokia's performance by excluding the
above-described items that may not be indicative of Nokia's business operating results. Non-IFRS
financial measures should not be viewed in isolation or as substitutes to the equivalent IFRS
measure(s), but should be used in conjunction with the most directly comparable IFRS measure(s) in
the reported results.

FORWARD-LOOKING STATEMENTS
It should be noted that Nokia and its business 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) the expected plans and benefits of our partnership with
Microsoft to bring together complementary assets and expertise to form a global mobile ecosystem
for smartphones; B) the timing and expected benefits of our strategies, including expected
operational and financial benefits and targets as well as changes in leadership and operational
structure; C) the timing of the deliveries of our products and services; D) our ability to
innovate, develop, execute and commercialize new technologies, products and services; E)
expectations regarding market developments and structural changes; F) expectations and targets
regarding our industry volumes, market share, prices, net sales and margins of our products and
services; G) expectations and targets regarding our operational priorities and results of
operations; H) expectations and targets regarding collaboration and partnering arrangements; I)
the outcome of pending and threatened litigation, regulatory proceedings or investigations by
authorities; J) expectations regarding the successful completion of  restructurings, investments,
acquisitions and divestments on a timely basis and our ability to achieve the financial and
operational targets set in connection with any such restructurings, investments, acquisitions and
divestments; and K) statements preceded by "believe," "expect," "anticipate," "foresee," "target,"
"estimate," "designed," "aim", "plans," "intends," "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 make the
Windows Phone ecosystem a competitive and profitable global ecosystem that achieves sufficient
scale, value and attractiveness to relevant market participants, making Nokia products with
Windows Phone a competitive choice for consumers; 2) our success in the smartphone market,
including our ability to introduce and bring to market quantities of attractive, competitively
priced Nokia products with Windows Phone that are positively differentiated from our competitors'
products, both outside and within the Windows Phone ecosystem; 3) our ability to produce
attractive and competitive devices in our Mobile Phones business unit, including feature phones
and devices with features such as full touch that can be categorized as smartphones, in a timely
and cost efficient manner with differentiated hardware, software, localized services and
applications; 4) the success of our HERE strategy, including our ability to establish a successful
location-based platform and extend our location-based services across devices and operating
systems; 5) our ability to provide support for our Devices & Services business and maintain
current and create new sources of revenue from our location-based service and commerce assets; 6)
our ability to protect numerous patented standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property rights of these technologies; 7)
our ability to maintain the existing sources of intellectual property related revenue and
establish new such sources; 8) the intensity of competition in the various markets where we do
business and our ability to maintain or improve our market position or respond successfully to
changes in the competitive environment; 9) our ability to keep momentum and increase our speed of
innovation, product development and execution in order to bring new innovative and competitive
mobile products and location-based or other services to the market in a timely manner; 10) the
success of our partnership with Microsoft in connection with the Windows Phone ecosystem; 11) our
ability to effectively and smoothly implement the planned changes in our operational structure and
achieve targeted efficiencies and reductions in operating expenses; 12) our ability to retain,
motivate, develop and recruit appropriately skilled employees; 13) our dependence on the
development of the mobile and communications industry, including location-based and other services
industries, in numerous diverse markets, as well as on general economic conditions globally and
regionally; 14) our ability to maintain and leverage our traditional strengths in the mobile
products market, especially if we are unable retain the loyalty of our mobile operator and
distributor customers and consumers as a result of the implementation of our strategies or other
factors; 15) the performance of the parties we partner and collaborate with, including Microsoft
and our ability to achieve successful collaboration or partnering arrangements; 16) our ability to
deliver our mobile products profitably, in line with quality requirements and on time, especially
if the limited number of suppliers we depend on fail to deliver sufficient quantities of fully
functional products, components, sub-assemblies, software and services on favourable terms and in
compliance with our supplier requirements; 17) our ability to manage efficiently our manufacturing
and logistics, as well as to ensure the quality, safety, security and timely delivery of our
products and services; 18) any actual or even alleged defects or other quality, safety and
security issues in our products; 19) any inefficiency, malfunction or disruption of a system or
network that our operations rely on; 20) the impact of cybersecurity breach or other factors
leading to an actual or alleged loss, improper disclosure or leakage of any personal or consumer
data collected by us or our partners or subcontractors, made available to us or stored in or
through our products; 21) our ability to successfully manage the pricing of our products and costs
related to our products and our operations; 22) the potential complex tax issues and obligations
we may face, including the obligation to pay additional taxes in various jurisdictions and our
actual or anticipated performance, among other factors, could result in allowances related to
deferred tax assets; 23) exchange rate fluctuations, particularly between the euro, which is our
reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain
other currencies; 24) our ability to protect the technologies, which we or others develop or which
we license, from claims that we have infringed third parties' intellectual property rights, as
well as our unrestricted use on commercially acceptable terms of certain technologies in our
product and services; 25) the impact of economic, regulatory, political or other development on
our sales, manufacturing facilities and assets located in emerging market countries as well as the
impact of regulations against imports to those countries; 26) the impact of changes in and
enforcement of government policies, technical standards, trade policies, laws or regulations in
countries where our assets are located and where we do business; 27) investigations or claims by
contracting parties in relation to exits from countries, areas or contractual arrangements; 28)
unfavorable outcome of litigation, regulatory proceedings or investigations by authorities; 29)
allegations of possible health risks from electromagnetic fields generated by base stations and
mobile devices, and the lawsuits and publicity related to them, regardless of merit; 30) Nokia
Siemens Networks' success in the mobile broadband infrastructure and related services market and
its ability to effectively, profitably and timely adapt business and operations to the diverse
needs of its customers; 31) Nokia Siemens Networks' ability to maintain and improve its market
position and respond successfully to changes and competition in the mobile broadband
infrastructure and related services market; 32) Nokia Siemens Networks' success in implementing
its restructuring plan and reducing its operating expenses and other costs; 33) Nokia Siemens
Networks' ability to invest in and timely introduce new competitive products, services, upgrades
and technologies; 34) Nokia Siemens Networks' dependence on limited number of customers and large,
multi-year contracts; 35) Nokia Siemens Networks' liquidity and its ability to meet its working
capital requirements, including access to available credit under its financing arrangements and
other credit lines as well as cash at hand; 36) the management of Nokia Siemens Networks' customer
financing exposure; 37) whether ongoing or any additional governmental investigations of alleged
violations of law by some former employees of Siemens may involve and affect the carrier-related
assets and employees transferred by Siemens to Nokia Siemens Networks; 38) any impairment of Nokia
Siemens Networks customer relationships resulting from ongoing or any additional governmental
investigations involving the Siemens carrier-related operations transferred to Nokia Siemens
Networks, as well as the risk factors specified on pages 12-47 of Nokia's annual report on Form
20-F for the year ended December 31, 2012 under Item 3D. "Risk Factors." Other unknown or
unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause
actual results to differ materially from those in the forward-looking statements. Nokia does not
undertake any obligation to publicly update or revise forward-looking statements, whether as a
result of new information, future events or otherwise, except to the extent legally required.

About Nokia http://www.nokia.com/ 
Nokia is a global leader in mobile communications whose products have become an integral part of
the lives of people around the world. Every day, more than 1.3 billion people use their Nokia to
capture and share experiences, access information, find their way or simply to speak to one
another. Nokia's technological and design innovations have made its brand one of the most
recognized in the world. For more information, visit http://www.nokia.com/about-nokia
http://www.nokia.com/about-nokia .

Media Enquiries:

Nokia
Communications
Tel. +358 7180 34900
Email: press.services@nokia.com mailto:press.services@nokia.com 

www.nokia.com http://www.nokia.com/ 



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