Nokia Oyj — Earnings Release 2001

Nov 27, 2001

News Details

Ad-hoc | 27 November 2001 15:04

Nokia Corp english

Nokia expects solid revenue growth next year as industry enters new phase Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Company announces annual sales growth target of about 15% with continuing good profitability for 2002. At the company’s annual global analyst meeting, Nokia saw conditions set to improve markedly next year, expecting annual sales growth of about 15% for 2002 with continuing good profitability. Nokia also expects to achieve sales growth of 25-35% during the fourth quarter, 2002 at the latest. Nokia estimates 420-440 million mobile handsets would be sold globally in 2002, representing annual market volume growth in the area of 10-15%. Annual double- digit market volume growth is expected to continue from 2002 onwards. The company also revisited its full-year estimate for total market volume for 2001, which Nokia now sees reaching about 380 million phones, with expectations for about 105-110 million in the fourth quarter 2001. In terms of global subscriber growth, the company continues to expect 1 billion mobile phone subscribers during the first half of next year and is forecasting a total 1.5 billion subscribers by 2005. end of ad-hoc-announcement (c)DGAP 27.11.2001 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Backed by continuing good profitability and efficient net working capital management, the company expects operating cash flow during 2002 to remain at healthy levels. It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding 1) the timing of product deliveries; 2) the Company’s ability to develop and implement new products and technologies; 3) expectations regarding market growth and developments; 4) expectations for growth and profitability; and 5) statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar expressions, are forward-looking statements. Because such statements involve risks and uncertainties, actual results may differ materially from the results currently expected by the Company. Factors that could cause such differences include, but are not limited to 1) industry conditions, such as the strength of product demand, the intensity of competition, pricing pressures, the acceptability of new product introductions such as Internet-ready phones, the introduction of new products by competitors, the impact of changes in technology, including the Company’s success in the emerging 3G market, the introduction and marketing of new products and services by operators, the ability of the Company to source components from third parties without interruption and at reasonable prices, demand for vendor financing and the Company’s ability and willingness to provide such financing and to mitigate the related exposure, and the success and financial condition of the Company’s strategic partners and customers; 2) operating factors, such as continued success of manufacturing activities and the achievement of manufacturing efficiencies therein, continued success of product development and inventory risks due to shifts in market demand; 3) general economic conditions in the Company’s principal geographic markets and in the wireless telecommunications industry as a whole, and fluctuations in exchange rates, including in particular the impact of the exchange rate between the Euro and the US dollar; as well as 4) the risk factors specified on pages 10 to 16 of the Company’s Form 20-F for the year ended December 31, 2000. Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges. Further information: Lauri Kivinen, Corporate Communications, tel. +358 7180 34495 Ulla James, Investor Relations, tel. +1 972 894 4880 Antti Räikkönen, Investor Relations, tel. +358 7180 34290 www.nokia.com ——————————————————————————– WKN: 870737; Index: Listed: Amtlicher Handel in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München, Stuttgart 271504 Nov 01