Nokia Siemens Networks targets improved financial performance, return
to growth
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Company sets goal to reduce annualized operating expenses andproduction overheads by EUR 500 million by end 2011 compared to end2009Nokia CorporationStock Exchange ReleaseNovember 3, 2009 at 13:00 (CET +1)Espoo, Finland - Nokia Siemens Networks today announced its plan toimprove financial performance and return to growth. The plan includesreorganizing the company's business units to better align withcustomer needs; extensive operating expense and production overheadreduction, including a global personnel review; ongoing purchasingsavings; expanded partnering to ensure a full portfolio ofworld-class products and services; and potential acquisitions whereassets would add scale to existing product areas or customerrelationships."As our customers make purchasing decisions, they want a partner whoengages in issues well beyond a traditional discussion oftechnology," said Rajeev Suri, chief executive officer of NokiaSiemens Networks. "Business models, innovation, growth andtransformation are now very much front and center when it comes tothe selection of a technology partner - and our planned new structurewill position us well in this changing market."ReorganizationThe Company's five business units are planned to be realigned intothree, each targeting a specific customer focus area. The planned newbusiness units, which are expected to come into effect on January 1,2010, are:- Business Solutions, which will focus on helping customers generatenew revenue and differentiate from the competition by providing afaster time to market for end-user services; enhancing billing andcharging capability; automating and simplifying processes; addressingthe challenges of convergence; and tapping into rich subscriber datato deliver a unique customer experience. Jürgen Walter, currentlyhead of the company's Converged Core business unit, will assumeleadership of the Business Solutions organization.- Network Systems, which will focus on providing both fixed andmobile network infrastructure, including the company's innovativeFlexi base stations, core products, optical transport systems, andbroadband access equipment. Marc Rouanne, currently head of thecompany's Radio Access business unit, will assume leadership of theNetwork Systems organization.- Global Services, which will focus on helping customers improveoperational efficiency through outsourcing of their non-coreactivities; supporting and managing their networks with robustcustomer care offerings; and ensuring fast and cost-effectiveimplementation of new networks and network upgrades. AshishChowdhary, currently head of the company's Services business, willassume leadership of the Global Services organization.Rouanne and Walter will join the Company's Executive Board, effectiveJanuary 1, 2010. Chowdhary is already a member of the ExecutiveBoard and will remain so in his new role.Cost reductionsDespite having fully achieved the original merger integration savingsobjectives of Nokia Siemens Networks, changes in the global economyand competitive environment make further cost reductions necessary.As a result, Nokia Siemens Networks will target a reduction ofannualized operating expenses and production overheads of EUR 500million by the end of 2011 compared to the end of 2009. The companyestimates that total charges associated with these reductions will bein the range of EUR 550 million over the course of 2010-2011.The operating expense and production overhead savings are expected tocome from a wide range of areas, including real estate, informationtechnology, site optimization, strategic workforce rebalancing, andoverall general and administrative expenses. As part of this effort,the company will also conduct a global personnel review which maylead to headcount reductions in the range of about 7-9 percent of itscurrent approximately 64,000 employees.Specific country impact may be higher or lower than the now estimatedglobal 7-9 percent range and the company will only provide furtherdetails related to this intended action when the review and planningprocess has progressed and employee representatives have beeninvolved where required. As the stability of customer relationshipsis a key priority, disruption to key customer-facing sales positionsas a result of this review is expected to be limited.In addition to the operating expense and production overhead savings,Nokia Siemens Networks will target an annual reduction in product andservice procurement costs related to cost of goods sold that issubstantially larger than the targeted EUR 500 million in operatingexpenses and production overhead reductions. This targeted reductionis expected to position the company to meet ongoing customerrequirements for competitive pricing.Partnerships and acquisitionsNokia Siemens Networks will seek to further strengthen its businessthrough partnerships and acquisitions. The Company already has arange of partnerships, including with Juniper Networks in the CarrierEthernet transport arena.Nokia Siemens Networks will also pursue acquisitions when assets areavailable and the associated purchase price of those assets providesthe appropriate value. In particular, the Company will target assetsthat enhance the scale of existing product and service business linesand that deepen relationships with key customers."We recognize that we are operating in a market where customer needsare evolving fast," said Mika Vehvilainen, chief operating officer ofNokia Siemens Networks. "We see acquisitions and expanded partneringas important tools to help meet these needs in the fastest, mostefficient way possible."About Nokia Siemens NetworksNokia Siemens Networks is a leading global enabler oftelecommunications services. With its focus on innovation andsustainability, the company provides a complete portfolio of mobile,fixed and converged network technology, as well as professionalservices including consultancy and systems integration, deployment,maintenance and managed services. It is one of the largesttelecommunications hardware, software and professional servicescompanies in the world. Operating in 150 countries, its headquartersare in Espoo, Finland.Engage in conversation about Nokia Siemens Networks' aim to reinventthe connected world at http://unite.nokiasiemensnetworks.com andtalk about its news at http://blogs.nokiasiemensnetworks.comFind out if your country is exploiting the full potential ofconnectivity at http://connectivityscorecard.orgAbout NokiaNokia is a pioneer in mobile telecommunications and the world'sleading maker of mobile devices. Today, we are connecting people innew and different ways - fusing advanced mobile technology withpersonalized services to enable people to stay close to what mattersto them. We also provide comprehensive digital map informationthrough NAVTEQ; and equipment, solutions and services forcommunications networks through Nokia Siemens Networks.FORWARD-LOOKING STATEMENTSIt should be noted that certain statements herein which are nothistorical facts, including, without limitation, those regarding: A)the timing of product, services and solution deliveries; B) ourability to develop, implement and commercialize new products,services, solutions and technologies; C) our ability to develop andgrow our consumer Internet services business; D) expectationsregarding market developments and structural changes; E) expectationsregarding our mobile device volumes, market share, prices andmargins; F) expectations and targets for our results of operations;G) the outcome of pending and threatened litigation; H) expectationsregarding the successful completion of contemplated acquisitions on atimely basis and our ability to achieve the set targets upon thecompletion of such acquisitions; and I) statements preceded by"believe," "expect," "anticipate," "foresee," "target," "estimate,""designed," "plans," "will" or similar expressions areforward-looking statements. These statements are based onmanagement's best assumptions and beliefs in light of the informationcurrently available to it. Because they involve risks anduncertainties, actual results may differ materially from the resultsthat we currently expect. Factors that could cause these differencesinclude, but are not limited to: 1) the deteriorating global economicconditions and related financial crisis and their impact on us, ourcustomers and end-users of our products, services and solutions, oursuppliers and collaborative partners; 2) the development of themobile and fixed communications industry, as well as the growth andprofitability of the new market segments that we target and ourability to successfully develop or acquire and market products,services and solutions in those segments; 3) the intensity ofcompetition in the mobile and fixed communications industry and ourability to maintain or improve our market position or respondsuccessfully to changes in the competitive landscape; 4)competitiveness of our product, services and solutions portfolio; 5)our ability to successfully manage costs; 6) exchange ratefluctuations, including, in particular, fluctuations between theeuro, which is our reporting currency, and the US dollar, theJapanese yen, the Chinese yuan and the UK pound sterling, as well ascertain othercurrencies; 7) the success, financial condition and performance ofour suppliers, collaboration partners and customers; 8) our abilityto source sufficient amounts of fully functional components,sub-assemblies, software and content without interruption and atacceptable prices; 9) the impact of changes in technology and ourability to develop or otherwise acquire and timely and successfullycommercialize complex technologies as required by the market; 10) theoccurrence of any actual or even alleged defects or other quality,safety or security issues in our products, services and solutions;11) the impact of changes in government policies, trade policies,laws or regulations or political turmoil in countries where we dobusiness; 12) our success in collaboration arrangements with othersrelating to development of technologies or new products, services andsolutions; 13) our ability to manage efficiently our manufacturingand logistics, as well as to ensure the quality, safety, security andtimely delivery of our products, services and solutions; 14)inventory management risks resulting from shifts in market demand;15) our ability to protect the complex technologies, which we orothers develop or that we license, from claims that we have infringedthird parties' intellectual property rights, as well as ourunrestricted use on commercially acceptable terms of certaintechnologies in our products, services and solutions; 16) our abilityto protect numerous Nokia, NAVTEQ and Nokia Siemens Networkspatented, standardized or proprietary technologies from third-partyinfringement or actions to invalidate the intellectual propertyrights of these technologies; 17) any disruption to informationtechnology systems and networks that our operations rely on; 18)developments under large, multi-year contracts or in relation tomajor customers; 19) the management of our customer financingexposure; 20) our ability to retain, motivate, develop and recruitappropriately skilled employees; 21) whether, as a result ofinvestigations into alleged violations of law by some formeremployees of Siemens AG ("Siemens"), government authorities or otherstake further actions against Siemens and/or its employees that mayinvolve and affect the carrier-related assets and employeestransferred by Siemens to Nokia Siemens Networks, or there may beundetected additional violations that may have occurred prior to thetransfer, or violations that may have occurred after the transfer, ofsuch assets and employees that could result in additional actions bygovernment authorities; 22) any impairment of Nokia Siemens Networkscustomer relationships resulting from the ongoing governmentinvestigations involving the Siemens carrier-related operationstransferred to Nokia Siemens Networks; 23) unfavorable outcome oflitigations; 24) allegations of possible health risks fromelectromagnetic fields generated by base stations and mobile devicesand lawsuits related to them, regardless of merit; as well as therisk factors specified on pages 11-28 of Nokia's annual report onForm 20-F for the year ended December 31, 2008 under Item 3D. "RiskFactors." Other unknown or unpredictable factors or underlyingassumptions subsequently proving to be incorrect could cause actualresults to differ materially from those in the forward-lookingstatements. Nokia does not undertake any obligation to publiclyupdate or revise forward-looking statements, whether as a result ofnew information, future events or otherwise, except to the extentlegally required.Media Enquiries:Nokia Siemens NetworksBen RoomeTel. +44 7827 300 203Email: ben.roome(at)nsn.comFinlandRiitta MårdPhone: +358 50 514 9718Email: riitta.mard(at)nsn.comGermanyChristina DinneTel. +49 89 636 73465Email: christina.dinne(at)nsn.comNokiaCommunicationsTel. +358 7180 34900Email: press.services(at)nokia.comwww.nokia.comwww.nokiasiemensnetworks.com --- End of Message ---NOKIAP.O. Box 226
FIN-00045 NOKIA GROUP Espoo WKN: 870737; ISIN: FI0009000681; Index: DJ STOXX Large 200, DJ STOXX 50;Listed: Nordic list (Large Cap) in THE HELSINKI STOCK EXCHANGE;
Datum: 03.11.2009 - 12:00 Uhr
Sprache: Deutsch
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