Nokia CEO Olli-Pekka Kallasvuo at the Nokia Annual General Meeting 2009: “Irresistable” Solutions Combining Devices and Services Will be a Key to Future Success

April 23, 2009

HELSINKI, Finland, April 23 /PRNewswire-FirstCall/ — Today at its Annual
General Meeting, Nokia (NYSE: NOK) President and CEO, Olli-Pekka Kallasvuo
outlined the company’s future strategy. “Nokia is fundamentally changing its
business model to transform both the company and the industry. While we
continue to compete with the traditional mobile device manufacturers, we also
are dealing with new competitors entering the market from the PC and Internet
industries,” he said.

“To succeed in this new environment, we need to offer consumers
irresistible solutions that improve their lives. During 2008, we have taken
many steps to ensure we maintain our strong leading position in the device
business, while increasing our focus on solutions-centric business models. We
have focused our services investments on five primary categories: maps,
music, messaging, media and games. These are the areas where the biggest
opportunities lie.”

Mr. Kallasvuo said the company believes that Nokia’s strategy of
combining unique services with high- quality devices will increase customer
retention and add value. He said that more consumers are not only choosing
Nokia, but are also remaining as Nokia customers.

“Our estimated consumer retention rate of around 55 percent is almost
twice the rate of our global competitors,” Kallasvuo said, and he noted that
Nokia customer retention has consistently increased every quarter since the
beginning of 2007. “This is a substantial achievement and shows we have made
significant progress with our solutions approach during the past year.”

During the address, Mr. Kallasvuo also highlighted the Nokia 5800 Xpress
Music devices as a great success: “Consumer response has been well beyond
expectations, and it has the potential to become our most successful device
ever. We estimate that this smartphone alone accounts for around 20 per cent
of all touch screen devices sold worldwide. It offers unique value for those
who want to experience their music on the move, particularly when combined
with our innovative Comes With Music service.”

Mr. Kallasvuo went on to emphasize that Nokia sees further opportunities
as consumers trade down to less expensive devices, particularly in a time of
recession. “The Symbian operating system is the world’s most widely used
software platform for advanced mobile phones.” According to Mr. Kallasvuo,
with the help of Symbian, Nokia plans to broaden the definition of the
smartphone, by expanding smartphone features into the mid-range, and into new
product categories.

“We believe that mobile computing should not be limited only to
expensive, high-end devices. Expanding Symbian into lower price points is the
right thing to do. We see this as a tremendous opportunity to increase
efficiency, to get more scale for Symbian, and gain market share.”

He also said that success in the changing business environment would
require courage and a shift away from the conventional: “We cannot expect to
do it all alone. We have to work together with certain competitors, new
players and partners in new ways. We have to compete and co-operate. We are
working more closely with many other companies, including operators and
partners. We expect more such partnerships to come.”

Mr. Kallasvuo told the audience that Nokia has been continually adapting
to a changing environment and would continue this approach. “We are scaling
our operations accordingly and making sensible but fundamental changes in the
way we work. The results of our cost-savings program are not giving us
one-off savings for the short term; these are long-term changes with
long-term savings.”

“Innovation in the mobile communications industry is certainly not
standing still. It is very clear we have to continue to invest in our future,
but at a more appropriate pace. Given the current climate, we have to balance
what is beneficial and sustainable for Nokia’s long-term future, while
adjusting the speed at which we operate.”

Even though the global device market will contract this year for the
first time in many years, there is reason for optimism according to Mr.
Kallasvuo: “There is a lot of opportunity for the taking in our industry.
Mobile devices are becoming true mobile computers and consumers increasingly
are more willing to use them in new ways with new services.”

About Nokia

Nokia is the world’s number one manufacturer of mobile devices by market
share and a leader in the converging Internet and communications industries.
We make a wide range of devices for all major consumer segments and offer
Internet services that enable people to experience music, maps, media,
messaging and games. We also provide comprehensive digital map information
through NAVTEQ and equipment, solutions and services for communications
networks through Nokia Siemens Networks.


It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A) the
timing of product, services and solution deliveries; B) our ability to
develop, implement and commercialize new products, services, solutions and
technologies; C) our ability to develop and grow our consumer Internet
services business; D) expectations regarding market developments and
structural changes; E) expectations regarding our mobile device volumes,
market share, prices and margins; F) expectations and targets for our results
of operations; G) the outcome of pending and threatened litigation; H)
expectations regarding the successful completion of contemplated acquisitions
on a timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and I) statements preceded by “believe,”
“expect,” “anticipate,” “foresee,” “target,” “estimate,” “designed,” “plans,”
“will” or similar expressions are forward-looking statements. 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 that could cause these differences include, but are
not limited to: 1) the deteriorating global economic conditions and related
financial crisis and their impact on us, our customers and end-users of our
products, services and solutions, our suppliers and collaborative partners;
2) the development of the mobile and fixed communications industry, as well
as the growth and profitability of the new market segments that we target and
our ability to successfully develop or acquire and market products, services
and solutions in those segments; 3) the intensity of competition in the
mobile and fixed communications industry and our ability to maintain or
improve our market position or respond successfully to changes in the
competitive landscape; 4) competitiveness of our product, services and
solutions portfolio; 5) our ability to successfully manage costs; 6) exchange
rate fluctuations, including, in particular, fluctuations between the euro,
which is our reporting currency, and the US dollar, the Japanese yen, the
Chinese yuan and the UK pound sterling, as well as certain other currencies;
7) the success, financial condition and performance of our suppliers,
collaboration partners and customers; 8) our ability to source sufficient
amounts of fully functional components, sub-assemblies, software and content
without interruption and at acceptable prices; 9) the impact of changes in
technology and our ability to develop or otherwise acquire and timely and
successfully commercialize complex technologies as required by the market;
10) the occurrence of any actual or even alleged defects or other quality,
safety or security issues in our products, services and solutions; 11) the
impact of changes in government policies, trade policies, laws or regulations
or political turmoil in countries where we do business; 12) our success in
collaboration arrangements with others relating to development of
technologies or new products, services and solutions; 13) our ability to
manage efficiently our manufacturing and logistics, as well as to ensure the
quality, safety, security and timely delivery of our products, services and
solutions; 14) inventory management risks resulting from shifts in market
demand; 15) our ability to protect the complex technologies, which we or
others develop or that 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 products,
services and solutions; 16) our ability to protect numerous Nokia, NAVTEQ and
Nokia Siemens Networks patented, standardized or proprietary technologies
from third-party infringement or actions to invalidate the intellectual
property rights of these technologies; 17) any disruption to information
technology systems and networks that our operations rely on; 18) developments
under large, multi-year contracts or in relation to major customers; 19) the
management of our customer financing exposure; 20) our ability to retain,
motivate, develop and recruit appropriately skilled employees; 21) whether,
as a result of investigations into alleged violations of law by some former
employees of Siemens AG (“Siemens”), government authorities or others take
further actions against Siemens and/or its employees that may involve and
affect the carrier-related assets and employees transferred by Siemens to
Nokia Siemens Networks, or there may be undetected additional violations that
may have occurred prior to the transfer, or violations that may have occurred
after the transfer, of such assets and employees that could result in
additional actions by government authorities; 22) any impairment of Nokia
Siemens Networks customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations transferred
to Nokia Siemens Networks; 23) unfavorable outcome of litigations; 24)
allegations of possible health risks from electromagnetic fields generated by
base stations and mobile devices and lawsuits related to them, regardless of
merit; as well as the risk factors specified on pages 11-28 of Nokia’s annual
report on Form 20-F for the year ended December 31, 2008 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.

Olli-Pekka Kallasvuo’s speech at Nokia Annual General Meeting will be
available later today also at http://www.nokia.com/investor


SOURCE Nokia Corporation

Source: newswire

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