Nokia Oyj — Earnings Release 2002

Dec 3, 2002

News Details

Ad-hoc | 3 December 2002 16:57

Nokia Corp english

Nokia expects solid growth in the mobile handset industry in 2003 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– The company expects 10% or slightly more handset market growth in 2003 – while anticipating a challenging industry environment in wireless infrastructure to continue Speaking to investors, Jorma Ollila, Chairman and CEO said, “As industry growth dynamics change, Nokia is the company best positioned to capitalize on the opportunities ahead. We see growth potential in new product categories especially in games, imaging and the enterprise market in which we can extend our strong brand, technology prowess and manufacturing scalability. We believe we have gained global handset market share in 2002, bringing us even closer to our target of 40%.” Wireless Handset Market Nokia continues to believe the total market volume for handsets will reach 400 million units in 2002 and 2003 market volume is expected to grow 10% or slightly more. Growth in 2003 will be driven by a combination of subscriber growth and a stabilizing replacement cycle. The company projects that the mobile subscriber market will grow from more than 1.1 billion at the end of 2002 to approximately 1.5 billion in 2005, while the annual share of the replacement market will continue to grow from the current 50% level. Currently, slightly more than a quarter of the global subscribers upgrade their handsets annually, which leads to a replacement cycle of roughly 2.5 years. This replacement cycle has lengthened over the last 18 months – but now appears to be stabilizing – providing an important engine for growth going forward. The complete press release is available at: http://press.nokia.com/PR/200212/883734_5.html end of ad-hoc-announcement (c)DGAP 03.12.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: It should be noted that certain statements herein which are not historical facts, including, without limitation those regarding A) the timing of product deliveries; B) our ability to develop and implement new products and technologies; C) expectations regarding market growth and developments; D) expectations for growth and profitability; and E) statements preceded by “believe,” “expect,” “anticipate,” “foresee” or similar expressions, are forward-looking statements. Because these statements 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) developments in the mobile communications market including the continued development of the replacement market and the Company’s success in the 3G market; 2) demand for products and services; 3) market acceptance of new products and service introductions; 4) the availability of new products and services by operators; 5) weakened economic conditions in many of the Company’s principal markets; 6) pricing pressures; 7) intensity of competition; 8) the impact of changes in technology; 9) consolidation or other structural changes in the mobile communications market; 10) the success and financial condition of the Company’s partners, suppliers and customers; 11) the management of the Company’s customer financing exposure; 12) the continued success of product development by the Company; 13) the continued success of cost-efficient, effective and flexible manufacturing by the Company; 14) the ability of the Company to source component production and R&D without interruption and at acceptable prices; 15) inventory management risks resulting from shifts in market demand; 16) fluctuations in exchange rates, including, in particular, the fluctuations in the euro exchange rate between the US dollar and the Japanese yen; 17) impact of changes in government policies, laws or regulations; 18) the risk factors specified on pages 10 to 17 of the Company’s Form 20-F for the year ended December 31, 2001. For more 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; ISIN: FI0009000681; Index: Listed: Amtlicher Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München, Stuttgart 031657 Dez 02