Ad-hoc | 24 November 2003 19:27

Nokia redefines addressable market – targets EUR 200 billion opportunity

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Nokia redefines addressable market – targets EUR 200 billion opportunity Nokia expects to achieve its earlier guidance for the fourth quarter At the company’s Capital Market Days in Irving, Texas, Nokia outlined its strategy for growth in the expanding multimedia and enterprise markets while continuing to capitalize on the mobile voice market. “Expanding mobile voice, driving consumer multimedia and extending mobility to the enterprise are central to Nokia’s growth strategy,” said Jorma Ollila, Nokia Chairman and CEO. “With our new structure, effective as of January 1, 2004, we will be aligned to focus on the EUR 200 billion market opportunity through meeting end-user and customer needs, developing end-to-end solutions and realizing economies of scale.” Expanded addressable market driving growth Based on 2003 market value estimates, Nokia believes that the combined markets of voice-optimized devices, imaging, games, media, and enterprise mobility and mobile networks represent a EUR 200 billion addressable market for the company. Nokia will pursue this market opportunity by further leveraging its core competitive advantages of superior products, brand, demand supply network, technology leadership and cost efficiency. Nokia’s strategy is designed to drive growth in net sales. The imaging, games, media, and enterprise mobility device markets offer Nokia excellent growth potential while there still are opportunities to increase Nokia’s market share in voice-optimized device and networks markets. Assuming favorable development of the defined addressable market and successful implementation of the company’s strategy and new operational structure, Nokia has a long-term target to achieve an average annual net sales growth of at least 10 % at constant currency. end of ad-hoc-announcement (c)DGAP 24.11.2003 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: Fourth quarter update For the fourth quarter 2003, Nokia sees that the mobile phone market has continued to develop well based on indications of strong industry demand and healthy channel inventories. The company’s own mobile phone volumes are progressing according to plan. In infrastructure, both the overall market and Nokia Networks performance are developing as projected. As a mid-quarter update based on the progress so far this quarter, Nokia believes it will achieve its previous guidance given in conjunction with the company’s third quarter results announcement on October 16, 2003, including the sales guidance (Nokia Mobile Phones flat or slightly up year-on-year, Nokia Networks approximately EUR 1.4 billion) and pro forma EPS (diluted) guidance (EUR 0.21-EUR 0.23). 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 mobile phone replacement market and the timing and success of the roll-out of new products and solutions based on 3G and subsequent new technologies; 2) demand for our products and solutions; 3) the development of the mobile software and services market in general; 4) the availability of new products and services by network operators; 5) market acceptance of new products and service introductions; 6) the intensity of competition in the mobile communications market and changes in the competitive landscape; 7) the impact of changes in technology; 8) general economic conditions globally and in our most important markets; 9) pricing pressures; 10) consolidation or other structural changes in the mobile communications market; 11) the success and financial condition of the Company’s partners, suppliers and customers; 12) the management of the Company’s customer financing exposure; 13) the success of our product development; 14) our success in maintaining efficient manufacturing and logistics as well as high product quality; 15) the ability of the Company to source quality components and research and development without interruption and at acceptable prices; 16) our ability to have access to the complex technology involving patents and other intellectual property rights included in our products and solutions; 17) inventory management risks resulting from shifts in market demand; 18) fluctuations in exchange rates, including, in particular, the fluctuations between the euro, which is our reporting currency, and the US dollar and the Japanese yen; 19) the impact of changes in government policies, laws or regulations; as well as 20) the risk factors specified on pages 11 to 18 of the Company’s Form 20-F for the year ended December 31, 2002. For more information – Media and Investor Contacts: Corporate Communications, tel. +358 7180 34495 or +358 7180 34900 Investor Relations Europe, tel. +358 7180 34289 Investor Relations US, tel. +1 972 894 4880 http://www.nokia.com Q4 2003 results will be made public on January 22, 2004. The dates for the 2004 quarterly reports will be announced later. The complete press release is available at http://www.nokia.com/ ——————————————————————————– WKN: 870737; ISIN: FI0009000681; Index: Listed: Amtlicher Markt in Frankfurt (General Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 241927 Nov 03