Nokia filing today its annual report on Form 20-F for 2012; reiterating its longer-term financial targets and providing additional information on its agreement with Microsoft
Stock Exchange Release
March 7, 2013 at 16.10 (CET +1)
Espoo, Finland - Nokia announced that it is today filing its annual report on Form 20-F for 2012 with the US Securities and Exchange Commission. In the report, Nokia reiterates longer-term financial targets, and provides additional information in relation to its agreement with Microsoft.
The report will be shortly available in pdf format through http://www.nokia.com/financials. Shareholders may request a hard copy of the report free of charge through Nokia's Internet pages.
Longer-term financial targets
In this annual report, Nokia reiterated its longer-term financial targets for its Devices & Services business and Nokia Siemens Networks.
Longer-term, Nokia continues to target:
- Devices & Services net sales to grow faster than the market.
- Devices & Services non-IFRS operating margin to be 10% or more.
Longer-term, Nokia Siemens Networks continues to target for its non-IFRS operating margin to be between 5% and 10%.
Additional disclosure on Microsoft agreement
This annual report also includes additional information in relation to Nokia's agreement with Microsoft, including mainly the following:
- The remaining minimum software royalty commitment payments from Nokia to Microsoft are expected to exceed the remaining platform support payments from Microsoft to Nokia by a total of approximately EUR 0.5 billion over the remaining life of the agreement.
- However, in 2013 the amount of the platform support payments from Microsoft to Nokia is still expected to slightly exceed the total amount of the minimum software royalty commitment payments from Nokia to Microsoft.
This release includes information on a non-IFRS, or underlying business performance, basis. Non-IFRS information excludes 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 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. 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.