ESPOO,
The complete press release with tables is available at:
http://www.nokia.com/results/Nokia_results2008Q4e.pdf
Non-IFRS full
Non-IFRS fourth quarter 2008 year 2008
results(1, 2) results(1, 2, 3)
Q4/ Q4/ YoY Q3/ QoQ YoY
EUR million 2008 2007 Change 2008 Change 2008 2007 Change
Net sales 12665 15738 -19.5% 12239 3.5% 50722 51108 -0.8%
Devices &
Services 8141 11141 -26.9% 8605 -5.4% 35099 37705 -6.9%
NAVTEQ 206 157 31.2% 363
Nokia Siemens
Networks 4340 4604 -5.7% 3504 23.9% 15319 13443 14.0%
Operating profit 1239 2634 -53.0% 1756 -29.4% 7033 7697 -8.6%
Devices &
Services 983 2541 -61.3% 1602 -38.6% 6373 7588 -16.0%
NAVTEQ 53 29 82.8% 82
Nokia Siemens
Networks 225 195 15.4% 177 27.1% 757 331 128.7%
Operating margin 9.8% 16.7% 14.3% 13.9% 15.1%
Devices &
Services 12.1% 22.8% 18.6% 18.2% 20.1%
NAVTEQ 25.7% 18.5% 22.6%
Nokia Siemens
Networks 5.2% 4.2% 5.1% 4.9% 2.5%
EPS, EUR Diluted 0.26 0.48 -45.8% 0.33 -21.2% 1.34 1.49 -10.1%
Reported full
Reported fourth quarter 2008 year 2008
results(1) results(1,3)
Q4/ Q4/ YoY Q3/ QoQ YoY
EUR million 2008 2007 Change 2008 Change 2008 2007 Change
Net sales 12662 15717 -19.4% 12237 3.5% 50710 51058 -0.7%
Devices &
Services 8141 11141 -26.9% 8605 -5.4% 35099 37705 -6.9%
NAVTEQ 205 156 31.4% 361
Nokia Siemens
Networks 4338 4583 -5.3% 3503 23.8% 15309 13393 14.3%
Operating profit 492 2492 -80.3% 1469 -66.5% 4966 7985 -37.8%
Devices &
Services 766 2594 -70.5% 1602 -52.2% 5816 7584 -23.3%
NAVTEQ -73 -80 -8.8% - 153
Nokia Siemens
Networks -179 0 -1 - 301 -1308 -77.0%
Operating margin 3.9% 15.9% 12.0% 9.8% 15.6%
Devices &
Services 9.4% 23.3% 18.6% 16.6% 20.1%
NAVTEQ -35.6% -51.3% -42.4%
Nokia Siemens
Networks -4.1% 0.0% 0.0% -2.0% -9.8%
EPS, EUR Diluted 0.15 0.47 -68.1% 0.29 -48.3% 1.05 1.83 -42.6%
Note 1 relating to NAVTEQ: On
Note 2 relating to non-IFRS results: Non-IFRS results exclude 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 i) the formation of Nokia Siemens Networks and
ii) all business acquisitions completed after
Nokia believes that these 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. These 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.
A reconciliation of the non-IFRS results to our reported results for Q4
2008 and Q4 2007 as well as for full year 2008 and 2007 can be found in the
tables on pages 11-16 and 25-29 of this press release. A reconciliation of
our Q3 2008 non-IFRS results can be found on pages 12-16 of our Q3 2008
Interim Report of
Note 3 relating to Nokia Siemens Networks: The results of Nokia Group and
Nokia Siemens Networks for the full year 2008 are not directly comparable to
the results for the full year 2007, which include the results of Nokia's
former Networks business group for the first quarter 2007 and those of Nokia
Siemens Networks from
FOURTH QUARTER 2008 HIGHLIGHTS
- Nokia net sales of
- Devices & Services net sales of
- Services and software net sales of
- Estimated industry mobile device volumes of 305 million units, down 9% year on year and down 2% sequentially.
- Nokia mobile device volumes of 113.1 million units, down 15% year on year and down 4% sequentially.
- Nokia estimated mobile device market share of 37% in Q4 2008, down from 40% in Q4 2007 and down from 38% in Q3 2008. The full year 2008 estimated market share was 39%.
- Nokia mobile device ASP of
- Devices & Services gross margin of 33.8%, down from 36.5% in Q3 2008.
- NAVTEQ net sales of
- Nokia Siemens Networks net sales of
- Nokia Siemens Networks achieved substantially all of the
- Operating cash flow was negative
- Total cash and other liquid assets of
OLLI-PEKKA KALLASVUO,
"In recent weeks, the macroeconomic environment has deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry. We are taking action to reduce overall costs and to preserve our strong capital structure. This is clearly our top priority in the current economic environment. However, it is important for Nokia to continue investing at the proper pace in future growth. We believe Nokia has a tremendous opportunity to capture value as the Internet services market evolves and grows. Being a catalyst for change has been our heritage and it will be our future."
INDUSTRY AND NOKIA OUTLOOK
- Nokia expects industry mobile device volumes in the first quarter 2009 to decline sequentially to a greater extent than the seasonal sequential decrease in the first quarter of the past few years.
- Nokia expects its mobile device market share in the first quarter 2009 to be at approximately the same level sequentially.
- While noting the extremely limited visibility, Nokia now expects 2009 industry mobile device volumes to decline approximately 10% from 2008 levels. Nokia expects the decline to be greater in the first half than in the second half of the year. This is an update to Nokia's earlier estimate that 2009 industry mobile device volumes would decline 5% or more from 2008 levels.
- Nokia continues to target an increase in its market share in mobile devices in 2009.
- Nokia now targets its non-IFRS operating margin in Devices & Services to be more than 10% in the first half 2009 and to be in the teens for the second half 2009, rather than in the teens for the full year 2009 as previously targeted.
- Nokia targets its annualized non-IFRS operating expense run rate in
Devices & Services to be lower than
- Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure and fixed infrastructure and related services market to decline 5% or more in Euro terms in 2009, from 2008 levels.
- Nokia and Nokia Siemens Networks continue to target for Nokia Siemens Networks market share to remain constant in 2009, compared to 2008.
Q4 2008 FINANCIAL HIGHLIGHTS
(Comparisons are given to the fourth quarter 2007 results, unless otherwise indicated.)
The non-IFRS results exclusions
Q4
-
-
-
-
-
-
Q3
-
-
-
Q4
-
-
-
-
Non-IFRS results exclude 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 i) the
formation of Nokia Siemens Networks and ii) all business acquisitions
completed after
Nokia Group
Nokia's fourth quarter 2008 net sales decreased 19% to
The following chart sets out the year on year and sequential growth rates in our net sales on a reported basis and at constant currency for the periods indicated.
NOKIA FOURTH QUARTER 2008 NET SALES Reported & Constant Currency(1) Q4/2008 vs. Q4/2008 vs. Q4/2007 Q3/2008 Change Change Group net sales - reported -19% 3% Group net sales - constant currency(1) -18% 1% Devices & Services net sales - reported -27% -5% Devices & Services net sales - constant currency(1) -25% -8% Nokia Siemens Networks net sales - reported -5% 24% Nokia Siemens Networks net sales - constant currency(1) -4% 23%
Note 1: Change in net sales at constant currency excludes the impact of changes in exchange rates in comparison to the Euro, our reporting currency.
Nokia's fourth quarter 2008 reported operating profit decreased 80% to
Operating cash flow for the fourth quarter 2008 was negative
Devices & Services
In the fourth quarter 2008, the total mobile device volumes of our Devices & Services group were 113.1 million units, representing a decline of 15% year on year and a 4% sequential decrease. The overall industry mobile device volumes for the same period were 305 million units based on Nokia's estimate, representing a 9% year on year decrease and a 2% sequential decrease.
Of the total industry mobile device volumes, converged mobile device industry volumes in the fourth quarter 2008 increased to 48.0 million units, based on Nokia's estimate, compared with an estimated 40.1 million units in the fourth quarter 2007 and 44.2 million units in the third quarter 2008. Our own converged mobile device volumes were 15.1 million units in the fourth quarter 2008, compared with 18.8 million units in the fourth quarter 2007 and 15.5 million units in the third quarter 2008. We shipped approximately 8 million Nokia Nseries and over 3 million Nokia Eseries devices during the fourth quarter 2008.
The following chart sets out our mobile device volumes for the periods indicated, as well as the year on year and sequential growth rates, by geographic area.
NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA (million units) Q4/2008 Q4/2007 YoY Change Q3/2008 QoQ Change Europe 34.7 37.2 -6.7% 27.4 26.6% Middle East & Africa 18.2 23.6 -22.9% 21.5 -15.3% Greater China 12.9 20.2 -36.1% 19.8 -34.8% Asia-Pacific 29.9 34.0 -12.1% 33.6 -11.0% North America 4.1 5.1 -19.6% 4.5 -8.9% Latin America 13.3 13.4 -0.7% 11.0 20.9% Total 113.1 133.5 -15.3% 117.8 -4.0%
Based on our preliminary market estimate, Nokia's mobile device market
share for the fourth quarter 2008 was 37%, compared with 40% in the fourth
quarter 2007 and 38% in the third quarter 2008. Our year on year market share
decline was driven primarily by lower market share in
Our mobile device average selling price (ASP) in the fourth quarter 2008
was
Fourth quarter 2008 Devices & Services net sales declined 27% to
Net sales grew in Devices & Services year on year in
Devices & Services reported gross profit and non-IFRS gross profit
decreased 37% to
Devices & Services reported operating profit decreased 70% to
NAVTEQ
(Comparisons are given to the third quarter 2008)
Fourth quarter 2008 NAVTEQ reported net sales increased 31% sequentially
to
Nokia Siemens Networks
Fourth quarter 2008 net sales decreased 5% to
The following chart sets out Nokia Siemens Networks net sales for the periods indicated, as well as the year on year and sequential growth rates, by geographic area.
NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA EUR million Q4/2008 Q4/2007 YoY Change Q3/2008 QoQ Change Europe 1 636 2 045 -20.0% 1 358 20.5% Middle East & Africa 615 541 13.7% 424 45.0% Greater China 409 492 -16.9% 288 42.0% Asia-Pacific 967 838 15.4% 894 8.2% North America 198 243 -18.5% 150 32.0% Latin America 513 424 21.0% 389 31.9% Total 4 338 4 583 -5.3% 3 503 23.8%
Nokia Siemens Networks reported gross profit decreased 17% to
Nokia Siemens Networks had a fourth quarter 2008 reported operating loss
of
Q4 2008 OPERATING HIGHLIGHTS
Nokia
- Nokia announced a reorganization of its sales, marketing, research and
other activities, impacting an estimated 850 employees globally. The
reorganization includes a headcount reduction at Nokia Research Center and
the closure of Nokia's offices in
- Nokia announced that it is discontinuing mobile device sales and
marketing activities in
- Nokia announced the renewal of a multi-year patent license agreement with Research In Motion (RIM), covering the worldwide use of standards essential patents for GSM, WCDMA and CDMA2000 technologies. The financial terms of the agreement consist of an up-front payment and on-going royalties payable to Nokia.
Devices
- Further strengthening its Nokia Nseries range of mobile devices, Nokia announced the Nokia N97, a mobile computer featuring a 3.5" touch display with a full QWERTY keyboard, a 5 megapixel camera, integrated A-GPS sensors and an electronic compass, and 32 GB of on-board memory.
- Nokia announced and started shipments of the Nokia 5800 XpressMusic, a mobile device optimized for music and featuring a 3.2 inch touch screen display with tactile feedback, a 3.2 megapixel camera and A-GPS functionality.
- Nokia announced and started shipments of the Nokia E63, with a full QWERTY keyboard, a variety of multimedia features and offered at a price intended to make the Eseries range accessible to a wider audience.
- Nokia announced the strengthening of its portfolio of entry-level
mobile devices with several new models, including the Nokia 1202, developed
especially for people living in rural areas. With an estimated retail price
of
- Nokia completed its acquisition of Symbian Limited, the company that develops and licenses Symbian OS, the market-leading operating system for mobile devices. The acquisition is an important step by Nokia and industry partners to develop Symbian OS into an open and unified mobile software platform, which will be licensed royalty-free and eventually move towards 'open source'.
- Nokia and IBM announced IBM Lotus Notes support for selected Nokia S60-based mobile devices, meaning that millions of Lotus Notes users are now able to access their email with their Nokia devices.
Services & Software
- Nokia announced an agreement to sell its security appliance business to Check Point Software Technologies, a disposal in line with Nokia's renewed business mobility strategy to cease developing and marketing its own behind-the-firewall business mobility solutions.
- Nokia completed its acquisition of OZ Communications Inc., a purchase intended to strengthen its position in consumer mobile messaging.
- In the
- Nokia launched
- Nokia launched Maps on Ovi, a tool enabling people to plan their journey at home on their PC and synchronize the data with their mobile.
- Nokia launched the beta trial of Mail on Ovi, a free email service enabling users of selected Nokia devices to obtain an ovi.com-suffixed email account without the need for a separate PC.
- Nokia announced the launch of Nokia Messaging, a service which gives millions of consumers access to email and instant messaging accounts from Yahoo! Mail(R) and Yahoo! Messenger(R), Windows Live Hotmail, Gmail and Google Talk, and AOL Mail, as well as email solutions from thousands of ISPs around the world on the majority of Nokia devices. Nokia Messaging is launching commercially in selected markets during the first quarter 2009.
- Nokia announced
- Seven new titles were made commercially available on the N-Gage mobile games service.
NAVTEQ
- NAVTEQ announced an agreement to acquire T-Traffic Systems GmbH, a
leading provider of traffic services in
- NAVTEQ expanded its portfolio of dynamic content - or real-time data - to include flight status and fuel prices, leveraging leading dynamic distribution capabilities from traffic and camera alerts.
- NAVTEQ Traffic was launched in Microsoft Windows Live FrameIt.
- NAVTEQ announced an industry strategy for map-enhanced ADAS (advanced driver assistance systems) using the Map-Enhanced Positioning Engine (MPE).
- NAVTEQ launched an enhanced Traffic Patterns product in
Nokia Siemens Networks
- Nokia Siemens Networks secured 3G contracts with three major operators
in Canada - Telus,
- Nokia Siemens Networks became the first infrastructure vendor to ship Long Term Evolution (LTE) compatible base stations. The Flexi Multimode Base Station hardware requires only a software upgrade for full LTE capability. Nokia Siemens Networks also recorded another world first with a demonstration of LTE-Advanced technology.
- Nokia Siemens Networks strengthened its leading position in packet core with a deal with NTT DoCoMo for LTE Evolved Packet Core (EPC), in partnership with Fujitsu.
- In December, Nokia Siemens Networks announced it had been selected for a major managed services deal with Tata Teleservices Limited, which involves network planning, project management, network roll-out and systems integration activities across the Indian operator's new national GSM network as well as the provision of radio access and soft-switching equipment.
- Research house Ovum named Nokia Siemens Networks the market leader in the WDM (Wavelength Division Multiplexing) deployment of 40 Gigabit per second optical transmission technology, during a quarter in which the company began a significant roll-out with a major customer.
- Nokia Siemens Networks expanded its relationship with Blyk, the free
mobile network for 16-24 year olds funded by advertising, with turnkey
services contracts to host the operator's core network as it expands into
For more information on the operating highlights mentioned above, please refer to related press announcements at the following links: http://www.nokia.com/press http://www.navteq.com/about/press.html, http://www.nokiasiemensnetworks.com/press
NOKIA IN THE FOURTH QUARTER 2008
(The following discussion is of Nokia's reported results. Comparisons are given to the fourth quarter 2007 results, unless otherwise indicated.)
As of
On
Nokia's net sales decreased 19% to
Operating profit decreased 80% to
In the period from October to
NOKIA IN JANUARY -
(The following discussion is of Nokia's reported results. Comparisons are given to 2007 results, unless otherwise indicated.)
As of
As of
On
Nokia Group
For 2008, Nokia's net sales decreased 1% to
In 2008,
Nokia's gross margin in 2008 was 34.3%, compared to 33.8% in 2007.
Nokia's 2008 operating profit decreased 38% to
The global economic slowdown, combined with unprecedented currency volatility, resulted in a sharp pull back in global consumer spending in the second half of 2008, particularly in the fourth quarter. The more limited availability of credit also reduced the purchasing ability of some trade customers. In 2008, Nokia's net sales and profitability, in particular in Devices & Services, were negatively impacted by these factors.
Reported research and development expenses were
In 2008, Nokia's selling and marketing expenses were
Administrative and general expenses were
Group Common Functions expenses totaled
Net financial expense was
Profit before tax and minority interests was
Operating cash flow for the year ended
Devices & Services
In 2008, the total mobile device volume of our Devices & Services group reached 468 million units, representing an increase of 7% year on year. Strong year on year volume growth in the first half 2008 was significantly offset by slowing growth in the third quarter 2008 and declining volumes in the fourth quarter 2008. The overall industry mobile device volumes for 2008 reached 1.21 billion units, based on Nokia's preliminary market estimate, representing an increase of 6% year on year. Based on our preliminary market estimate, Nokia's market share grew to 39 % in 2008, compared to 38% in 2007.
Of the total industry mobile device volumes, converged mobile device industry volumes in 2008 increased to 161 million units, based on Nokia's estimate, compared with an estimated 117 million units in 2007. Our own converged mobile device volumes were 60.6 million units in 2008, compared with 60.5 million units in 2007. Nokia shipped over 36 million Nokia Nseries and approximately 10 million Nokia Eseries devices in 2008.
The following chart sets out our mobile device volumes for the periods indicated, as well as the year on year growth rates, by geographic area.
NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA (million units) 2008 2007 YoY Change Europe 114.9 117.2 -2.0% Middle East & Africa 81.0 75.6 7.1% Greater China 71.3 70.7 0.8% Asia-Pacific 134.0 112.9 18.7% North America 15.7 19.4 -19.1% Latin America 51.5 41.3 24.7% Total 468.4 437.1 7.2%
During 2008, Nokia gained device market share in
In
In
In
Nokia's device ASP in 2008 was
Devices & Services net sales 2008 declined 7% to
Net sales grew in Devices & Services year on year in
Devices & Services gross profit decreased 7% to
Devices & Services operating profit decreased 23% to
NAVTEQ
Net sales of NAVTEQ for the six months ended on
NAVTEQ operating loss for the six months ended on
Nokia Siemens Networks
Net sales of Nokia Siemens Networks increased 14% to
Nokia Siemens Networks had an operating loss of
2008 OPERATING HIGHLIGHTS
Nokia
- Nokia began operating under its new organizational structure, with its three former mobile device business groups-Mobile Phones, Multimedia and Enterprise Solutions-and the supporting horizontal groups forming one integrated business group, Devices & Services. The new organizational structure is designed to align Nokia with the opportunities Nokia sees for future growth in devices and services and increase efficient ways of working across the company. Devices & Services has three business units: Devices; Services; and Markets. The three units receive operational support from our Corporate Development Office, which is also responsible for exploring corporate strategic and future growth opportunities.
- Nokia announced and completed the closure of its mobile devices
production facility in Bochum,
- Nokia and Qualcomm announced that they entered into a new 15 year license agreement covering various standards, including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and other technologies. The agreement resulted in settlement of all litigation between the two companies.
Devices
- Further strengthening its Nokia Nseries range of mobile devices, Nokia announced and began shipments of the Nokia N78, Nokia N79, Nokia N85 and Nokia N96, and unveiled the flagship Nokia N97 mobile computer.
- Building out the Nokia Eseries range of mobile devices, Nokia announced and began shipments of the Nokia E63, Nokia E66 and Nokia E71.
- Nokia announced that Microsoft Exchange ActiveSync will be available in all Nokia S60 3rd Edition devices, as well as compatibility with IBM Lotus Notes Traveler on all Nokia S60 3rd Edition devices. These announcements enable access to over 80 percent of the world's corporate email accounts.
- Nokia announced and began shipments of eight mobile devices with functions and features specially designed for consumers in emerging markets, starting with the Nokia 1202 and up to the Nokia 7100 Supernova.
- Nokia announced and began shipments of the Nokia 5800 XpressMusic, a mobile device optimized for music and featuring a 3.2 inch touch screen display with tactile feedback, a 3.2 megapixel camera and A-GPS functionality.
- Nokia announced and began shipments of the Nokia 6210 Navigator, the first Nokia GPS-enabled device with an integrated compass for pedestrian guidance, and the Nokia 6220 classic.
Services & Software
- Nokia announced that it is focusing on developing services in five core areas: music, maps, media, messaging and games.
- Nokia expanded
- Nokia launched Comes With Music first in the
- The number of titles available on the N-Gage mobile games service grew to 27 by the end of the year.
- Nokia updated Ovi.com with functionality for syncing your calendar, contacts, notes and tasks between a Nokia mobile device and www.ovi.com.
NAVTEQ
- NAVTEQ announced an industry strategy for map-enhanced ADAS (advanced driver assistance systems) using the Map-Enhanced Positioning Engine (MPE).
- NAVTEQ started providing both NAVTEQ Traffic RDS delivery service and
NAVTEQ interactive advertising services for multiple Garmin devices (the nuvi
755T and 775T and nuvi 2x5 family). Together with Garmin, NAVTEQ is the first
to bring an advertising supported, real-time traffic service to market in
- NAVTEQ expanded its portfolio of dynamic content - or real-time data - to include flight status and fuel prices, leveraging leading dynamic distribution capabilities from traffic and camera alerts.
Nokia Siemens Networks
- Nokia Siemens Networks achieved substantially all of the
- In November, Nokia Siemens Networks announced that it completed the preliminary planning process to identify the proposed remaining headcount reductions necessary to reach its previously announced synergy-related headcount adjustment goal of 9 000 and began the process of sharing those plans with employees and their representatives.
- At the Mobile World Congress 2008, Nokia Siemens Networks launched its LTE solution for radio and core networks, including the new Flexi Multimode Base Station, and in October announced that it had begun shipping LTE-compatible Flexi base stations.
- Nokia Siemens Networks demonstrated its technological leadership throughout the year with a number of industry-leading events: the launch of the industry's first DWDM single optical platform serving Metro to Core; the world's first demonstration of LTE-Advanced technology; a record-breaking 100 Gbps. transmission on a single wavelength for more than 1 040 kilometers over deployed field fiber (with Verizon); the worlds fastest IHSPA data call using a mobile device.
- Nokia Siemens Networks secured major 3G radio access deals all over the
world, from the UK to
- Nokia Siemens Networks' Services expanded its global remote delivery capability, delivering more than 200 projects across the world with successes including major event support ensuring network quality and performance, software upgrades and maintenance, and network monitoring and planning services.
- Nokia Siemens Networks continued to win major managed services deals
including a breakthrough network operations agreement with Embarq Corporation
in
- Demonstrating its ongoing commitment to developing innovative solutions
for emerging markets, Nokia Siemens Networks launched its eCommerce rural
trading platform with Fujian Mobile in
ACQUISITIONS AND DIVESTMENTS IN 2008
- On
- On
- On
- On
- On
- On
- On
- On
- On
- On
PERSONNEL
The average number of employees during 2008 was 120 066. At
SHARES
The total number of Nokia shares at
DIVIDEND
Nokia's Board of Directors will propose a dividend of
1 EUR = 1.392 USD
The complete press release with tables is available at:
http://www.nokia.com/results/Nokia_results2008Q4e.pdf
FORWARD-LOOKING STATEMENTS
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) expectations regarding market growth, developments and structural changes; D) expectations regarding our mobile device volume growth, market share, prices and margins; E) expectations and targets for our results of operations; F) the outcome of pending and threatened litigation; G) 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 H) 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 the related financial crisis and their impacts on us, our customers, suppliers, and collaborative partners; 2) competitiveness of our product, service and solutions portfolio; 3) the extent of the growth of the mobile communications industry; 4) 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; 5) our ability to successfully manage costs; 6) the intensity of competition in the mobile communications industry and our ability to maintain or improve our market position or respond successfully to changes in the competitive landscape; 7) the impact of changes in technology and our ability to develop or otherwise acquire complex technologies as required by the market, with full rights needed to use; 8) timely and successful commercialization of complex technologies as new advanced products, services and solutions; 9) 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 solution offerings; 10) our ability to protect numerous Nokia and Nokia Siemens Networks patented, standardized or proprietary technologies from third-party infringement or actions to invalidate the intellectual property rights of these technologies; 11) Nokia Siemens Networks' ability to achieve the expected benefits and synergies from its formation to the extent and within the time period anticipated and to successfully integrate its operations, personnel and supporting activities; 12) whether, as a result of investigations into alleged violations of law by some current or 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 ongoing violations that may have occurred after the transfer, of such assets and employees that could result in additional actions by government authorities; 13) any impairment of Nokia Siemens Ne