This morning CEO of Nokia Rajeev Suri kicked off the Nokia Capital Markets Day 2016 in Barcelona. The Capital Markets Day is an event in which Nokia presents its plans for the future to investors and the public. The whole event can be followed here.
CEO Suri stared the presentation by calming down investors, because the latest share dip, and saying that Nokia is not Ericsson. As Rajeev said, Nokia’s financial results are superior, and Nokia’s business model allows the company to invest heavily, while keeping the finances in line.
Nokia is extremely well-positioned to win in its primary market with communication service providers, and we aim to target superior returns through focused growth into more attractive adjacent markets where high-performance, end-to-end networks are increasingly in demand,” Suri said.
“We also see opportunities to renew current patent licensing agreements at favorable terms, add new licensees in the mobile phone area and expand licensing further into new areas such as consumer electronics and the automotive sector. Given the appeal to others of our innovations in Networks, virtual reality and digital health, we are confident that we can continue to build our patent and technology licensing business further in the coming years,” he continued.
“Simultaneously, we will remain focused on flawlessly executing our EUR 1.2 billion cost saving program.”
Nokia’s new strategy has four key priority areas:
- Lead in networks with communication service providers
- Expanding networks business to areas like transportation, public sector etc.
- Building a strong, standalone software business, primarily for enterprise and IoT
- Creating new business and licencing opportunities in consumer space
Some financial goals are:
- Long term 10%-15% profitability for Nokia Networks
- 8%-10% profitability for Nokia Networks in 2017 with revenue decline
- Dividend of EUR 0.17 per share for 2016
- A minimal EUR 800 million revenue for Nokia Technologies in 2017
The thing we all want to see, and hear about the most, the mobile phones – they probably won’t be announced today, but Nokia will talk about HMD Global, Foxconn and the Nokia brand today at 11.30 CET.
We will follow the whole event and report with the most importing news. Stay tuned 🙂