Slide 1: Q4 and Full Year 2019 Investor presentation
Q4 and Full Year 2019 Investor presentation 6 February 2020 1 © 2020 Nokia
Slide 2: Disclaimer
Disclaimer During this presentation, we will be making forward-looking that could cause such differences can be both external, such as loss. statements regarding the future business and financial general, economic and industry conditions, as well as internal performance of Nokia and its industry. op
Slide 3: Contents
Contents 04. Introduction 05. Our focus during 2020 Rajeev Suri President and CEO 16. Financial results Kristian Pullola CFO 3 © 2020 Nokia
Slide 4: A strong end to a challenging year
Introduction A strong end to Full year 2019 non-IFRS diluted EPS of EUR 0.22 driven by strong net sales and operating margin a challenging in Q4 year Net cash of EUR 1.7 billion, driven by Q4 free cash flow of EUR 1.4 billion 5G deal momentum continues, with 66 commercial deals and 19 live networks
Slide 5: Our focus during 2020
Our focus during 2020 1. 2. 3. Execute in Generate Secure Mobile Access cash long-term value 5 © 2020 Nokia
Slide 6: Execute in Mobile Access
Our focus during 2020 1 Execute in Mobile Access 6 © 2020 Nokia
Slide 7: 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 7 © 2020 Nokia
Slide 8: 5G Powered by ReefShark
1. Execute in Mobile Access “5G Powered by Expected “5G Powered by ReefShark” shipments: ReefShark” ~100% Approximately 10% of our 5G ~70% product shipments in Q4 2019 • New system on chip shipments underway; expected >35% to deliver product cost and performance advantages • Quarterly update on the
Slide 9: 5G win rate
1. Execute in Mobile Access 5G win rate Factors in customer size and measures the conversion of our end of 2018 4G footprint to 5G, and includes new 5G customer wins • At the end of Q4 2019, our 5G win rate was over 4G 5G 100% outside of China and in the mid 90% range including China • Quarterly upd
Slide 10: 4G and 5G mobile radio market share
1. Execute in Mobile Access 4G and 5G mobile radio 4G+5G market share, excluding China, expected to stabilize in FY 2020 at: ~27% market share 4G+5G market share, excluding China, approximately 27% in FY 2019 • Quarterly qualitative update on market share development 10 © 2020 Nokia
Slide 11: Generate cash
Our focus during 2020 2 Generate cash 11 © 2020 Nokia
Slide 12: Recurring free cash flow
2. Generate cash Recurring free cash flow Expected Full Year 2020 recurring free cash flow: Positive Our outlook for positive recurring free cash flow is, among other things, expected to be supported by an improvement in net working capital performance and improved operational results, partially off
Slide 13: Free cash flow
2. Generate cash Free cash flow 1. 2. 3. Quarterly commentary on Adjusted net Net working Restructuring free cash flow and profit capital cash outflows underlying factors such as: 4. 5. 6. Interest Taxes Capex received/paid 13 © 2020 Nokia
Slide 14: Secure long-term value
Our focus during 2020 3 Secure long- term Value 14 © 2020 Nokia
Slide 15: Securing long-term value
3. Secure long-term value Securing long-term value We will Comprehensive Software Enterprise Patent licensing continue to portfolio leverage and Our comprehensive portfolio of Access, Transport and Software allows us to We will continue to develop our software business, enabling us to leverage our W
Slide 16: Q4 and FY 2019 Financial Results
Q4 and FY 2019 Financial Results 16 © 2020 Nokia
Slide 17: Nokia – Q4'18-Q4'19
Q4 and FY 2019 Financial Results Nokia – Q4’18-Q4’19 17 © 2020 Nokia
Slide 18: Net sales by region
Q4 and FY 2019 Financial Results Net sales by region 18 © 2020 Nokia
Slide 19: Change in net cash – Q4'19
Q4 and FY 2019 Financial Results Change in net cash – Q4’19 19 © 2020 Nokia
Slide 20: Progress on our cost savings program
Q4 and FY 2019 Financial Results Progress on our cost savings program • In full year 2019, excluding the impact of the lower incentive accruals, we achieved approximately EUR 200 million of recurring annual costs savings, compared to full year 2018. • In full year 2019, consistent with Nokia’s busin
Slide 21: Outlook
Q4 and FY 2019 Financial Results Outlook 21 © 2020 Nokia
Slide 22: CEO closing quote on 2020
“While I believe that 2020 will present its share of challenges, I am confident that we are taking the right steps to deliver progressive improvement over the course of this year and to position us for a stronger 2021.” Rajeev Suri President and CEO 22 © 2020 Nokia
Slide 23: Nokia
NOKIA