Slide 1: Q1 2021 Investor presentation
Q1 2021 Investor presentation 29 April 2021 1 © 2021 Nokia
Slide 2: Disclaimer
Disclaimer It should be noted that Nokia and its business are exposed to proven to be incorrect could cause actual results to differ companies, including those in the same industry. The primary various risks and uncertainties and certain statements herein that materially from those in the forward-lo
Slide 3: Welcome
Welcome Pekka Lundmark 4. Q1 performance President and CEO 11. Business Groups’ results 15. Our three-phased plan Marco Wirén 19. Group Common and Other CFO 20. Cash and liquidity position 22. 2021 addressable market 23. 2021 Outlook 3 © 2021 Nokia Public
Slide 4: Q1 performance
Q1 performance Pubic NOK
Slide 5: A robust start to the year
A robust start to the year Sales growth driving margin increase and strong cash generation Scale On track to deliver on our plan to achieve sustainable, Accelerate profitable growth and technology leadership Reset 5 © 2021 Nokia Public
Slide 6: Net sales increase driven by Network Infrastructure and Mobile Networks
Net sales increase driven by Network Infrastructure and Mobile Networks Net sales +9% YoY constant currency € 7,0 bn +3% YoY reported €4.9bn €5.1bn € 6,0 bn € 5,0 bn Mobile Networks € 4,0 bn Network Infrastructure Cloud and Network Services € 3,0 bn Nokia Technologies € 2,0 bn Group Common and Other
Slide 7: Enterprise double-digit growth fuelled by new customers
Enterprise double-digit growth fuelled by 63 new customers Q1 2021 5% YoY YoY 7% Enterprise customers reported constant currency 7% Q1 2021 +14% +18% 81% CSP Enterprise Licensees Other 7 © 2021 Nokia Public
Slide 8: Strong sales growth in North America and Greater China
Strong sales growth in North America and Greater China Q1 2021 Q1 2020 – Q1 2021 net sales € 2 500m 5% 6% € 2 000m 8% 33% 8% € 1 500m € 1 000m 11% 29% € 500m North America Europe € 0m Asia Pacific Middle East & Africa North Europe Asia Pacific Middle East Greater Latin India Greater China Latin Amer
Slide 9: Improvement across all key figures
Improvement across all key figures Q1 21 net sales Q1 21 net cash Q1 21 total cash €5.1bn €3.7bn €8.8bn Q1 20: €4.9bn Q4 20: €2.5bn Q4 20: €8.1bn Q1 21 gross margin Q1 21 operating margin Q1 21 EPS, diluted 38.2% 37.9% (comparable) (reported) 10.9% 8.5% (comparable) (reported) €0.07 €0.05 (comparabl
Slide 10: Maintaining our financial outlook for 2021
Maintaining our financial outlook for 2021 Q1 provides a good foundation for achieving the higher end of the 7 to 10% comparable operating margin range for full year 2021 10 © 2021 Nokia Public
Slide 11: Mobile Networks delivered a solid first quarter with an uptick in profitability
Mobile Networks delivered a solid first quarter with an uptick in profitability €2.3bn 3.4% On track with KPIs: ~70% ReefShark share by end of year 2021 Q1 net sales Q1 comparable operating margin Net sales and comparable gross margin Comparable operating profit and margin 4G/5G conversion rate at 9
Slide 12: Network Infrastructure had an excellent quarter across its businesses
Network Infrastructure had an excellent quarter across its businesses €1.7bn 10.8% Net sales by business IP Networks 12% Q1 net sales Q1 comparable operating margin 36% Optical Networks 29% Net sales and comparable gross margin Comparable operating profit and margin Fixed Networks +22% reported +1 3
Slide 13: Cloud and Network Services is on track with transformation
Cloud and Network Services is on track with transformation €674m (3.0)% Rebalancing R&D spend and investing to capture leadership Q1 net sales Q1 comparable operating margin in growth areas Net sales and comparable gross margin Comparable operating profit and margin -9% reported +220bps € 100 m -5%
Slide 14: Nokia Technologies delivered strong results
Nokia Technologies delivered strong results €365m 78.4% New agreements drive growth and validate our multimedia and Q1 net sales Q1 comparable operating margin cellular patent Net sales and comparable gross margin Comparable operating profit and margin +5% reported portfolios (230)bps +6% constant c
Slide 15: Well on track with our three-phased plan
Well on track with our three-phased plan 2021 focus 2022 and mid term Scale Accelerate • New use cases • New business models • Enhance technology leadership . Reset • Digitalization • Technology leadership • Automation • Operating model • Emerging opportunities • Mobile Networks • Lower cost base •
Slide 16: Driving sustainable progress, with integrity
Driving sustainable progress, with integrity Q1 highlights Creating technology that 50% 26% helps the world act together target to reduce minimum target of emissions from external female hires 2019-2030 in 2021 * ”World’s Most Ethical Companies” and “Ethisphere” names and marks are registered tradem
Slide 17: We have a good foundation to build on
We have a good foundation to build on 17 © 2021 Nokia Public
Slide 18: CFO remarks
CFO remarks Marco Wirén 19. Group Common and Other CFO 20. Cash and liquidity position 22. 2021 addressable market 23. 2021 Outlook 18 © 2021 Nokia Public
Slide 19: Group Common and Other profitability benefited from venture fund investments
Group Common and Other profitability benefited from venture fund investments Net sales Comparable operating profit € 100 m € 50 m € 80 m € 10 m € 60 m -€ 30 m € 40 m -€ 70 m € 20 m -€ 110 m € 0m -€ 150 m Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Decrease in net sales driven by Radi
Slide 20: Strong Q1 cash performance, driven by profit and receivables
Strong Q1 cash performance, driven by profit and receivables Free cash flow of €1.2bn € billion 20 © 2021 Nokia Public
Slide 21: Solid liquidity enables investments to secure technology leadership
Solid liquidity enables investments to secure technology leadership Net cash of €3.7bn and total cash of €8.8bn Net cash and current financial investments Total cash and current financial investments € 4,0 bn € 10,0 bn € 8,0 bn € 3,0 bn € 6,0 bn € 2,0 bn € 4,0 bn € 1,0 bn € 2,0 bn € 0,0 bn € 0,0 bn
Slide 22: Slight improvement in Mobile Networks 2021 addressable market
Slight improvement in Mobile Networks 2021 addressable market Calculated using the 2020 year-end EUR/USD rate of 1.23 2021 2021 Estimated, in € (as of Q1 2021) (as of Q4 2020) 2020 Mobile Networks1 44bn 43bn 45bn Network Infrastructure2 42bn 42bn 42bn Cloud and Network Services 24bn 24bn 25bn Total
Slide 23: Full Year 2021 and 2023 Outlook maintained
Full Year 2021 and 2023 Outlook maintained Full year 2021 Full year 2023 Net sales, adjusted for currency €20.6 billion to €21.8 billion Grow faster than the market fluctuations1 Comparable operating margin2 7 to 10% 10 to 13% Free cash flow3 Positive Clearly positive Comparable ROIC2,4 10 to 15% 15
Slide 24: © 2021 Nokia Public
24 ©2021 Nokia Public NOKIA
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