Capital Markets Day 2021 - Jenni Lukander Nokia Technologies - Nokia Corporation
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Capital Markets Day 2021 Jenni Lukander Nokia Technologies
Disclaimer It should be noted that Nokia and its business are exposed Exchange Commission, including Nokia’s financial results measures at constant currency excludes the impact of to various risks and uncertainties and certain statements reports. Other unknown or unpredictable factors or changes in exchange rates in comparison to euro, our herein that are not historical facts are forward-looking underlying assumptions subsequently proven to be reporting currency. As comparable or constant currency statements. These forward-looking statements reflect incorrect could cause actual results to differ materially financial measures are not defined in IFRS they may not be Nokia’s current expectations and views of future from those in the forward-looking statements. We do not directly comparable with similarly titled measures used by developments and include statements preceded by undertake any obligation to publicly update or revise other companies, including those in the same industry. The “believe”, “expect”, “expectations”, “commit”, “anticipate”, forward-looking statements, whether as a result of new primary rationale for presenting these measures is that “foresee”, “see”, “target”, “estimate”, “designed”, “aim”, information, future events or otherwise, except to the the management uses these measures in assessing the “plan”, “intend”, “influence”, “assumption”, “focus”, extent legally required. financial performance of Nokia and believes that these “continue”, “project”, “should", "is to", "will” or similar measures provide meaningful supplemental information expressions. These statements are based on Nokia presents financial information on reported, on the underlying business performance of Nokia. These management's best assumptions and beliefs in light of the comparable and constant currency basis. Comparable financial measures should not be considered in isolation information currently available to it. Because they involve measures presented in this document exclude intangible from, or as a substitute for, financial information risks and uncertainties, actual results may differ materially asset amortization and other fair value adjustments, presented in compliance with IFRS. from the results that we currently expect. Factors, goodwill impairments, restructuring related charges and including risks and uncertainties that could cause such certain other items affecting comparability. In order to Nokia is a registered trademark of Nokia Corporation. differences can be both external, such as general, allow full visibility on determining comparable results, Other product and company names mentioned herein may economic and industry conditions, as well as internal information on items affecting comparability is presented be trademarks or trade names of their respective owners. operating factors. We have identified these in more detail separately for each of the components of profit or loss. in our Annual Report on Form 20-F for the year ended Constant currency reporting provides additional December 31, 2020 under “Operating and Financial Review information on change in financial measures on a constant and Prospects—Risk Factors“, and in our other filings or currency basis in order to better reflect the underlying documents furnished with the U.S. Securities and business performance. Therefore, change in financial 2 © 2021 Nokia Public
A highly profitable and sustainable licensing business
Patent licensing Technology licensing Brand licensing
Monetizing our industry-leading Helping device makers integrate Licensing the Nokia brand to
patent portfolio our technology into their products consumer device makers
Technology portfolio Technology incubation
Renewing our portfolio and increasing its value Incubating future opportunities
3 © 2021 Nokia PublicTechnology leadership
Innovation leadership €130bn+ €4bn+
Spearheaded by Nokia Bell Labs invested in cutting-edge invested in R&D across
R&D since 2000 Nokia during 2020
Standards leadership 3,500+ 6G
Ecosystem leadership through standardization patent families declared leadership in Hexa-X
essential to 5G standard project and beyond
Patent leadership ~20,000 1,500+
Constant renewal of industry-leading portfolio patent families with vast new patent families
majority in force in 2030 filed during 2020
4 © 2021 Nokia PublicIndustry-leading patent portfolio
Patent #1 #1
PA Consulting ranked Nokia as IPlytics ranked Nokia as #1 in
leadership #1 in ownership of granted
patents that their analysis
ownership of active US or
European granted patents
found essential to 5G declared as essential to 5G
Sources: PA Consulting (11/2020), IPlytics (02/2021).
NOTE: Reference to certain patent studies here does not mean that Nokia would necessarily agree on all the data, methods, and conclusions in those studies.
5 © 2021 Nokia PublicOur inventions enable entire industries
Our portfolio is widely used … … in multiple markets
Emerging segments
Cellular Multimedia
standards technologies Internet of Things
Connected vehicles
Device Network Consumer electronics
technologies technologies
Mobile handsets
6 © 2021 Nokia PublicMobile handset deals provide strong recurring revenue
Mobile 1.6bn+ ~2% High
handsets mobile handset CAGR of shipments licensing maturity in
shipments in 2020 projected for 2019-23 our core segment
7 © 2021 Nokia PublicWe are gaining traction in consumer electronics
Consumer 1.2bn+ ~2% Low
electronics consumer electronics CAGR of shipments licensing maturity in
shipments in 2020 projected for 2019-23 this growth segment
8 © 2021 Nokia PublicOn course for further growth in automotive
Connected ~40m ~8% Low
vehicles connected vehicle CAGR of shipments licensing maturity in
shipments in 2020 projected for 2019-23 this growth segment
9 © 2021 Nokia PublicLong-term opportunity in IoT
Internet of 240m+ ~19% Low
Things cellular IoT device CAGR of shipments licensing maturity in
shipments in 2020 projected for 2019-23 this nascent segment
10 © 2021 Nokia PublicA licensee-friendly
approach
Providing access to our
Patent ecosystem-powering
licensing intellectual property
Holistic
customer
Helping customers offering
Allowing customers
to integrate our Technology Brand to leverage our
technology into licensing licensing iconic Nokia brand
their products
11 © 2021 Nokia PublicA proven track record
Patent business net sales and key deals Apple
Xiaomi
Vivo
Huawei Proven assets
Strong IP assets with their value
proven through the legal system
LG
Blackberry
Samsung Major
Samsung
OPPO renewal Expert team
incl. 5G Strong patent creation, licensing,
Huawei and litigation teams
Microsoft
Apple HTC
05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Licensee-friendly
Compelling licensing offering incl.
Cash inflows to net sales ratio 3.5 0.4 1.0 1.8 0.9 0.8 0.6 patents, technology, and brand
NOTE: A limited subset of example deals is presented here for illustration purposes only and may include past and/or current licensees and do not imply future license renewals.
Patent business net sales are illustrated using a 3-year moving average (centered). Cash inflows to net sales ratio shown is for Nokia Technologies.
12 © 2021 Nokia PublicStrategic focus areas and expectations
Focus areas Key initiatives
Drive • Invest in 5G and multimedia R&D and standardization Comparable
innovation • Continue renewing patent portfolio for the long term operating margin*
Secure • Secure renewals for major deals in mobile handsets
renewals • License remaining uncontracted handset vendors 2021 & 2023:
Expand
coverage
• Continue to diversify and grow in new segments > 75%
• Further leverage broad technology assets
Build brand • Build brand partnerships and grow brand value
partnerships • Develop new opportunities for brand licensing
* Comparable results exclude amortization of acquired intangibles, restructuring and other items affecting comparability.
The guidance provided reflects Nokia’s new operating model, effective January 1, 2021.
13 © 2021 Nokia PublicKey takeaways
Delivering value from intellectual property
Strong Attractive Proven World-class
IP portfolio opportunities track record team
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