Nokia announces its new development vision and str

2022-09-22
  • Detail

Nokia announced its new development vision and strategic priorities

Nokia recently announced its new development vision and strategic priorities, aiming to ensure the continuous growth of its core business. A spokesman for the Ministry of Health said that it would explore new opportunities in the rapidly developing market. Nokia also set key financial goals, reflecting its ambition to become a technology leader in the connected world after three years of major adjustments and transformations

Su Li, President and CEO of Nokia, said at the Nokia capital markets day event held in Barcelona that Nokia's transformation has accelerated since the 2014 investor activities, especially after the completion of the acquisition of Alcatel lucent, the company's size, strength and flexibility have been significantly improved

Su Li said: Nokia is fully qualified to win the major market of communication service providers. Our goal is to focus on more attractive related market areas, make full use of the strong demand for high-performance, end-to-end networks in these markets, and obtain excellent returns

he also said: we will actively strive to renew the patent licensing agreement with favorable terms, add new licenses in the mobile field, and expand the licensing business to new fields such as consumer electronics and the automotive industry. In view of its competitive advantages in the communication network, virtual reality and digital health markets, Nokia will be able to continue to promote the performance of patent and technology licensing business in the next few years, and we are full of confidence

he then added: at the same time, we will continue to promote the implementation of the 1.2 billion euro cost reduction plan

Nokia's new strategy is proposed on the basis of the improvement of its business portfolio after the acquisition of Alcatel lucent. The strategy will focus on the following four priorities:

occupy a leading position in the field of high-performance, end-to-end networks for communication service providers: make use of our unparalleled end-to-end portfolio to ensure continuous leadership in the market and profitability

expand network sales to select vertical markets that need high-performance security networks: expand our business footprint in the five selected vertical markets, including energy, transportation, utilities, ultra large-scale technology enterprises and Internet giants (webscale)

establish a strong and independent software business: go beyond our existing product dependent software model, create a software business whose marginal profit is comparable to that of large software companies, and focus on key areas such as enterprise software and IOT platform

create new business and licensing opportunities in the consumer ecosystem: expand successful patent licensing in automotive, consumer electronics, IOT and other fields. Rely on technology and brand licensing to create new revenue streams, and create new businesses in the field of digital media and digital health

Su Li, President and CEO of Nokia, said: in the next two years, we will work with communication service providers to strengthen our leading position, gain trust and recognition in our target vertical market, fully tap the growth opportunities of software business with confidence, and finally establish a strong and independent software business. In order to achieve this goal, we will continue to adhere to a standardized and orderly operation mode and deliver excellent financial performance to our shareholders

long term goal

Nokia's goal is to make the long-term growth rate of net sales of Nokia's communication network business exceed its main target market by maintaining its leading position in the industry, orderly expanding and diversifying into related markets. In 2016, Nokia's main target market size is currently about 113 billion euros, and it is expected that the compound annual growth rate of this market will be about 1% in the next five years. Nokia's associated target market size is currently 18billion euros, and its compound annual growth rate is expected to be about 13% in the next five years

Nokia aims to achieve a long-term operating profit margin of 10% to 15% when all its communication network business departments achieve a double-digit long-term operating profit margin. If the market environment and Nokia's execution can meet expectations, the operating profit margin is expected to reach about 12.5%

Nokia expects its long-term effective non IFRS tax rate to be about 30%

Nokia expects that the tax related cash flow will continue to be maintained at about 400million euros per year until its deferred income tax assets are fully utilized. The amount of cash tax may vary from jurisdiction to jurisdiction, depending on the level of profit in that jurisdiction and the amount of permitted income that may be subject to withholding tax

Nokia aims to maintain its total cash and other current assets at about 30% of its annual net sales in the future

outlook of Nokia communication network business in 2017

Nokia predicts that the sales of net fatigue tester advantage analysis of Nokia's communication network business will decline in 2017, but will be consistent with the annual development of its main target markets

Nokia predicts that the annual operating profit margin of Nokia's communication network business in 2017 will reach 8% to 10%

Nokia predicts, The annual net sales and operating profit margin of Nokia's communication network business in 2017 will be affected by the following factors:

the main target market of Nokia's communication network business has declined, but the decline remains at a low single digit percentage point

industry competition situation

only rotate the loading part 360 ° around the vertical axis. What is the servo valve of the microcomputer screen hydraulic universal testing machine? The timing of the main network deployment of the domain portfolio

implement the cost reduction and reinvestment plan, while maintaining the year-on-year decline in operating expenses

Nokia technology 2017 outlook

due to the risks and uncertainties in determining the signing timing and value of important licensing agreements, Nokia believes that it is not suitable to predict the relevant situation in 2017 at present. Nokia predicts that the annual net sales of relevant patents and brand licensing businesses should increase to about 950million euros by the end of 2016. Some licensing agreements will expire at the end of 2016, and the current annual net sales of this part of business is about 150million euros. If the license agreement is not updated and no new license agreement is signed, the annual net sales of the patent and brand licensing business will be about 800million euros at the beginning of 2017, of which about 30% of the business revenue comes from the authorized global smart market

Nokia predicts that as more and more consumers choose Nokia's digital health and digital media products, its net sales of digital health and digital media business are expected to increase year-on-year in 2017

about Nokia

Nokia is a global leader in creating core technologies for the connected world. With the research and innovation of Nokia Bell Laboratories, Nokia uses the industry's most comprehensive end-to-end products, services and licensing platform to serve communication service providers, government departments, large enterprises and consumers

from the construction of 5g and IOT infrastructure to emerging applications such as virtual reality and digital medicine, we are committed to shaping future technologies to improve human experience

Copyright © 2011 JIN SHI