Nokia Oyj — Earnings Release 2011

Feb 11, 2011

Nokia provides financial targets and forecasts linked to new strategy

Nokia provides financial targets and forecasts linked to new strategy

Nokia Corporation
Stock exchange release
February 11, 2011 at 9.30 (CET +1)

London, UK - Nokia today outlined a new strategic direction, including changes
in leadership and operational structure to accelerate the company's speed of
execution in a dynamic competitive environment. In connection with this new
strategic direction, Nokia has set new financial targets and forecasts for
Nokia and the mobile device industry and for Nokia Siemens Networks and the
mobile and fixed infrastructure and related services market.

Targets and forecasts for Nokia and the mobile device industry

Nokia expects attractive mobile device industry revenue growth in 2011 and over
the longer-term, driven by the further adoption of smartphones by consumers
globally and the further adoption of mobile devices and services, particularly
in emerging markets. Over the longer-term, Nokia expects mobile device industry
gross margins to come under pressure due to competitive factors.

Due to the initiation of Nokia's strategic transformation on February 11, 2011,
the full-year prospects for its Devices & Services business are subject to
significant uncertainties, and therefore Nokia believes it is not appropriate
to provide annual targets for 2011 at the present time. However, Nokia expects
to continue to provide short-term quarterly forecasts to indicate its progress
in the company's interim reports as well as annual targets when circumstances
allow it to do so.

Nokia expects 2011 and 2012 to be transition years, as the company invests to
build the planned winning ecosystem with Microsoft. After the transition, Nokia
targets longer-term:
- Devices & Services net sales to grow faster than the market.
- Devices & Services non-IFRS* operating margin to be 10% or more.

Targets and forecasts for Nokia Siemens Networks and the mobile and fixed
infrastructure and related services market

Nokia and Nokia Siemens Networks expect overall industry revenue to grow
slightly in 2011, compared to 2010. While growth is expected in certain areas,
such as mobile broadband and services, this is expected to be offset to some
extent by declines in certain areas and a continued challenging competitive
environment.

Due to Nokia Siemens Networks' solid position in industry growth areas, Nokia
and Nokia Siemens Networks target:
- Nokia Siemens Networks net sales to grow faster than the market in 2011.
- Nokia Siemens Networks non-IFRS* operating margin to be above breakeven in
2011.

Additionally, Nokia and Nokia Siemens Networks continue to target Nokia Siemens
Networks to reduce its non-IFRS* annualized operating expenses and production
overheads by EUR 500 million by the end of 2011, compared to the end of 2009.

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 1.3 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 (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 globally.

* 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 the formation of
Nokia Siemens Networks and from all business acquisitions. 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.

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical
facts are forward-looking statements, including, without limitation, those
regarding: A) the intention to form a strategic partnership with Microsoft to
combine complementary assets and expertise to form a global mobile ecosystem
and to adopt Windows Phone as our primary smartphone platform, including the
expected plans and benefits of such partnership; B) the timing and expected
benefits of our new strategy, including expected operational and financial
benefits and targets as well as changes in leadership and operation structure;
C) the timing of the deliveries of our products and services and their
combinations; D) our ability to develop, implement and commercialize new
technologies, products and services and their combinations; E) expectations
regarding market developments and structural changes; F) expectations and
targets regarding our industry volumes, market share, prices, net sales and
margins of products and services; G) expectations and targets regarding our
operational priorities and results of operations; H) the outcome of pending and
threatened litigation; I) 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 J) 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) whether definitive
agreements can be entered into with Microsoft for the potential partnership in
a timely manner, or at all, and on terms beneficial to us; 2) our ability to
continue to innovate and maintain the vibrancy of our Symbian-based smartphones
during the negotiation of the Microsoft partnership and thereafter; 3) the
negotiation and implementation of the Microsoft partnership will require
significant time, attention and resources of our senior management and others
within the company potentially diverting their attention from other aspects of
our business; 4) in choosing to negotiate a partnership with Microsoft and
utilize Windows Phone as our primary smartphone platform, we may forego more
competitive alternatives achieving greater acceptance and profitability in the
smartphone market; 5) the Microsoft Windows Phone smartphone platform may not
be preferred by application developers, content providers and other partners
impairing our ability to build a sufficiently competitive ecosystem for our
smartphones; 6) the Microsoft partnership may not achieve the stated goal of
producing smartphones which are differentiated from those of our competitors
and preferred by our customers and consumers in the expected timeframe, or at
all; 7) our ability to change our business model, way of working and culture
sufficiently to work effectively and efficiently with Microsoft in order to
realize the stated benefits of the partnership in a timely manner, or at all;
8) our ability to effectively and smoothly implement our new leadership and
operational structure and to realize the anticipated benefits in a timely
manner; 9) the implementation of the Microsoft partnership and the new
operational structure may cause disruption and dissatisfaction among employees
potentially reducing focus and productivity in some or all areas of our
business; 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.

Media Enquiries:

Nokia
Communications
Tel. +358 7180 34900
Email: press.services@nokia.com
www.nokia.com