Nokia Oyj · OMXHEX:NOKIA
Nokia Oyj — Q1 2020 Earnings Presentation
25 slides from Nokia Oyj's earnings presentation, Apr 30, 2020
Slide 1: Investor presentation 30 April 2020
Investor presentation 30 April 2020 1 © 2020 Nokia
Slide 2: Disclaimer
Disclaimer It should be noted that Nokia and its business are exposed to actual results to differ materially from those in the forward- IFRS, and either of these financial measures as used by Nokia may various risks and uncertainties and certain statements herein that looking statements. We do not u
Slide 3: Introduction, Our focus during 2020, Our financial results
04. Introduction 06. Our focus during 2020 Rajeev Suri President and CEO 17. Our financial results Kristian Pullola CFO 3 © 2020 Nokia
Slide 4: Improved margins as transformation and product cost reduction efforts take hold
Introduction Improved margins • Confidence in resilient customer base and strong liquidity position as transformation • 5G deal momentum continues, with and product cost 70 commercial deals and 21 live networks • Strong growth in Nokia Software and reduction efforts Nokia Enterprise take hold • With
Slide 5: Covid-19
Covid-19 First focus during the COVID-19 crisis is to our employees. We are working around the clock to keep our people safe. Supporting the essential services our customers provide has never been more critical in enabling the world to continue to function in an orderly way. Supporting communities w
Slide 6: Our focus during 2020
Our focus during 2020 1. 2. 3. Execute in Mobile Generate Secure Access cash long-term value 6 © 2020 Nokia
Slide 7: Execute in Mobile Access
Our focus during 2020 Execute in Mobile Access 7 © 2020 Nokia Internal use only
Slide 8: Addressing Mobile Access profitability through four key actions
1. Execute in Mobile Access Addressing Mobile Access profitability through four key actions 1. 2. 3. 4. Reduce product Maintain scale Improve Further cost commercial strengthen management operational and deal performance in discipline services 8 © 2020 Nokia
Slide 9: “5G Powered by ReefShark”
1. Execute in Mobile Access “5G Powered by Expected “5G Powered by ReefShark” shipments: ReefShark” ~100% Q1 2020 performance in-line with our expectations • This KPI tracks shipments of our System- ~70% on-Chip (SoC) based 5G Powered by ReefShark (“5G PBR”) product portfolio. Increased 5G PBR shipm
Slide 10: 5G win rate
1. Execute in Mobile Access 5G win rate Q1 2020 performance in-line with our expectations • This KPI measures how we are doing in converting our end of 2018 4G footprint into 5G footprint. It factors in customer size, as well as new 5G footprint where we did not previously have a 4G installed base (
Slide 11: 4G and 5G mobile radio market share
1. Execute in Mobile Access 4G and 5G mobile radio market share 4G+5G mobile radio market share, excluding China, expected to stabilize in Full Year 2020 at: Q1 2020 performance in-line with our expectations • We finished 2019 with our 4G+5G mobile radio market share standing at ~27% excluding China
Slide 12: Generate cash
Our focus during 2020 Generate cash 12 © 2020 Nokia Internal use only
Slide 13: Recurring free cash flow
2. Generate cash Recurring free cash flow Our outlook for positive Expected Full Year 2020 recurring free cash flow: recurring free cash flow is expected to be supported by an improvement in net working capital performance and improved operational results, partially offset by a more substantial diff
Slide 14: Secure long-term value
Our focus during 2020 Secure long-term value 14 © 2020 Nokia Internal use only
Slide 15: Secure long-term value
3. Secure long-term value Secure long-term value We will continue to Comprehensive Software Enterprise Patent licensing leverage and develop portfolio our assets Our portfolio of Access, We continue to develop our We continue to leverage our Our strong patent portfolio Transport and Software softwar
Slide 16: Our sustainability performance
3. Secure long-term value Our sustainability performance Connectivity and Improving lives Climate Integrity Culture technology will play a with technology key role in helping to solve many future Connectivity brought isolated people together during the We set science-based targets to decrease GHG em
Slide 17: Q1 2020 Financial results
QO1 2020 Financial results NOKIA
Slide 18: Nokia Q1'19-Q1'20
Q1 2020 Financial results Nokia Q1’19-Q1’20 18 © 2020 Nokia
Slide 19: Net sales Q1'20, reported
Q1 2020 Financial results Net sales Q1’20, reported 19 © 2020 Nokia
Slide 20: Net sales by region Q1'19-Q1'20
Q1 2020 Financial results Net sales by region Q1’19-Q1’20 20 © 2020 Nokia
Slide 21: Change in net cash Q1'20
Q1 2020 Financial results Change in net cash Q1’20 21 © 2020 Nokia
Slide 22: Progress on our cost savings program
Q1 2020 Financial results Progress on our cost savings program We expect our most recent cost savings program to Actual Expected amounts for result in a net EUR 500 million reduction of non-IFRS Beyond In EUR million, approximately FY FY operating expenses and production overheads (“fixed FY Total c
Slide 23: Outlook
Q1 2020 Financial results Outlook Full Year 2020 Non-IFRS diluted earnings per share EUR 0.23 (adjusted from EUR 0.25) plus or minus 5 cents Non-IFRS operating margin 9.0% (adjusted from 9.5%) plus or minus 1.5 percentage points Recurring free cash flow1 Positive Long term (3 to 5 years) Non-IFRS op
Slide 24: CEO closing quote on first quarter results
Our focus during 2020 “Nokia’s solid first quarter results showed broad year-on-year profitability improvements as our transformation and product cost reduction efforts started to take hold. We saw good progress in Mobile Access and in our cash performance. In this time of unprecedented change, give
Slide 25: Nokia
NOKIA