Kallasvuo Addresses Nokia AGM, Says 2010 a Key Year

May 6, 2010

HELSINKI, Finland, May 6, 2010 /PRNewswire-FirstCall/ — Nokia (NYSE:
NOK) has built a solid foundation for future success, CEO Olli-Pekka
Kallasvuo told shareholders Thursday.

“By combining services with devices, Nokia is in a stronger position to
grow and create more value for our shareholders,” Kallasvuo said. “We still
have plenty of work to do, but we have built a solid foundation. We believe
in our strategy.”

Nokia’s strategy is based on the vision of a future that is truly mobile.
People increasingly live their lives in ways that are free from the
constraints of place; they want to be able to access and experience the
things that matter to them, and share those experiences with others, wherever
they are and whatever they happen to be doing.

Kallasvuo said about 83 million people around the world are already
registered active users of Nokia services, which increasingly are included
with the purchase of a Nokia mobile device.

As evidence of Nokia’s achievements thus far, Kallasvuo cited the
following statistics:

    - The Ovi Store, which opened a year ago this month, is now averaging
      about 1.7 million downloads a day. There are also localized versions of
      the store in 18 countries, supporting 30 different languages.

    - Nokia's free pedestrian and car navigation software has been downloaded
      more than 10 million times since it was launched in January. The
      service is now available for more than 70 countries and in more than 45

    - Comes With Music, which makes millions of songs available for download
      at no extra cost for up to a year with the purchase of certain Nokia
      devices, was recently launched in China and India - two of the world's
      largest and fastest-growing markets.

    - Nokia Messaging is growing rapidly, supported by more than 70 operators

    - Ovi Mail, which is targeting the billions of potential first-time
      e-mail users around the world, has registered 8 million subscriptions.
      That's a rate of about 1 million subscribers a month.

    - Nokia Life Tools is providing people in India and Indonesia with
      agricultural information, educational services and entertainment. In
      less than a year, it has attracted more than 1.5 million paying
      subscribers, and Kallasvuo announced the service will soon be extended
      to China.

Kallasvuo said the rapidly growing demand for applications, games and
other mobile content is no longer just a Western phenomenon. “It’s a global
trend that plays to one of Nokia’s strengths, our global presence,” he said.

Kallasvuo cited the success of a Finnish company, Offscreen Technologies,
which makes a variety of mobile applications. People from virtually every
country in the world have downloaded Offscreen’s apps with Nokia devices more
than 25 million times.

In reviewing Nokia’s performance in 2009, Kallasvuo noted that the
company sold 432 million devices worldwide – more than its top three
competitors combined. 2009 marked Nokia’s 12th consecutive year as the
world’s largest manufacturer of mobile devices.

But 2009, Kallasvuo noted, was a difficult year, due to a weak global
economy. “The recession coincided with our transformation, as well as changes
in our device portfolio. With all these factors together, it resulted in a
decrease in operating profit and earnings per share, compared with 2008.
Despite the challenging conditions, Nokia continued to maintain strict
controls on costs and has maintained a solid financial position,” Kallasvuo

This year, Nokia is planning to introduce a new generation of devices
that is expected to help close the gap with the competition in high-end
smartphones, Kallasvuo said.

“Our approach has been to concentrate on fewer, competitive products that
bring the features of Symbian-based smartphones to more and more people
around the world. And we are well on our way to doing that.”

In addition, Nokia is continuously improving the experience and value of
Ovi services that are tightly integrated with its devices, creating reasons
for people to start using them and to come back again and again.

Kallasvuo expressed optimism about the MeeGo software platform, which
will be used for Nokia’s next mobile computer.

“We are working hard to reclaim leadership in high-end smartphones and
mobile computers.” he said. “It is critical that we improve the customer
experience with the usability of both our devices and our services.”

About Nokia

At Nokia, we are committed to connecting people. We combine advanced
technology with personalized services that enable people to stay close to
what matters to them. Every day, more than 1.2 billion people connect to one
another with a Nokia device – from mobile phones to advanced smartphones and
high-performance mobile computers. Today, Nokia is integrating its devices
with innovative services through Ovi (http://www.ovi.com), including music,
maps, apps, email and more. Nokia’s NAVTEQ is a leader in comprehensive
digital mapping and navigation services, while Nokia Siemens Networks
provides equipment, services and solutions for communications networks


It should be noted that certain statements herein which are not
historical facts are forward-looking statements, including, without
limitation, those regarding: A) the timing of the deliveries of our products
and services and their combinations; B) our ability to develop, implement and
commercialize new technologies, products and services and their combinations;
C) expectations regarding market developments and structural changes; D)
expectations and targets regarding our industry volumes, market share,
prices, net sales and margins of products and services and their
combinations; E) expectations and targets regarding our operational
priorities and results of operations; F) the outcome of pending and
threatened litigation; G) expectations regarding the successful completion of
acquisitions or restructurings on a timely basis and our ability to achieve
the financial and operational targets set in connection with any such
acquisition or restructuring; and H) statements preceded by “believe,”
“expect,” “anticipate,” “foresee,” “target,” “estimate,” “designed,” “plans,”
“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 that
could cause these differences include, but are not limited to: 1) the
competitiveness and quality of our portfolio of products and services and
their combinations; 2) our ability to timely and successfully develop or
otherwise acquire the appropriate technologies and commercialize them as new
advanced products and services and their combinations, including our ability
to attract application developers and content providers to develop
applications and provide content for use in our devices; 3) our ability to
effectively, timely and profitably adapt our business and operations to the
requirements of the converged mobile device market and the services market;
4) 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; 5) the occurrence of
any actual or even alleged defects or other quality, safety or security
issues in our products and services and their combinations; 6) the
development of the mobile and fixed communications industry and general
economic conditions globally and regionally; 7) our ability to successfully
manage costs; 8) exchange rate fluctuations, including, in particular,
fluctuations 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; 9) the success, financial condition and performance of our
suppliers, collaboration partners and customers; 10) our ability to source
sufficient amounts of fully functional components, sub-assemblies, software,
applications and content without interruption and at acceptable prices and
quality; 11) our success in collaboration arrangements with third parties
relating to the development of new technologies, products and services,
including applications and content; 12) 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 and their
combinations; 13) our ability to manage our inventory and timely adapt our
supply to meet changing demands for our products; 14) 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 and services and their combinations; 15) 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; 16) the impact of changes in government policies, trade
policies, laws or regulations and economic or political turmoil in countries
where our assets are located and we do business; 17) any disruption to
information technology systems and networks that our operations rely on; 18)
our ability to retain, motivate, develop and recruit appropriately skilled
employees; 19) unfavorable outcome of litigations; 20) allegations of
possible health risks from electromagnetic fields generated by base stations
and mobile devices and lawsuits related to them, regardless of merit; 21) our
ability to achieve targeted costs reductions and increase profitability in
Nokia Siemens Networks and to effectively and timely execute related
restructuring measures; 22) developments under large, multi-year contracts or
in relation to major customers in the networks infrastructure and related
services business; 23) the management of our customer financing exposure,
particularly in the networks infrastructure and related services business;
24) whether ongoing or any additional governmental investigations into
alleged violations of law by some former employees of Siemens AG (“Siemens”)
may involve and affect the carrier-related assets and employees transferred
by Siemens to Nokia Siemens Networks; 25) 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 11-32 of Nokia’s annual report Form 20-F for the year ended December
31, 2009
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/agm


SOURCE Nokia Corporation

Source: newswire

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