Stock Exch­an­ge Release
Sep­tem­ber 3, 2013 at 06.00 (CET +1)

• Tran­sac­tion expec­ted to be signi­fi­cant­ly accre­ti­ve to Nokia earnings.
• Nokia con­ti­nues to deve­lop, and sees signi­fi­cant value in, advan­ced tech­no­lo­gies, its patent port­fo­lio and Nokia brand.
• Nokia focu­sing on NSN, HERE and Advan­ced Tech­no­lo­gies post-tran­sac­tion. Each busi­ness a lea­ding play­er in its respec­ti­ve segment.
• Nokia out­lines chan­ges to lea­der­ship and Board of Directors.

ESPOO, Fin­land — Nokia Cor­po­ra­ti­on today announ­ced that it has signed an agree­ment to enter into a tran­sac­tion wher­eby Nokia will sell sub­stan­ti­al­ly all of its Devices & Ser­vices busi­ness and licence its patents to Micro­soft for EUR 5.44 bil­li­on in cash, paya­ble at clo­sing. Nokia expects to book a gain on sale of appro­xi­m­ate­ly EUR 3.2 bil­li­on, and expects the tran­sac­tion to be signi­fi­cant­ly accre­ti­ve to earnings.

The tran­sac­tion is expec­ted to clo­se in the first quar­ter of 2014, sub­ject to appr­oval by Nokia share­hol­ders, regu­la­to­ry appr­ovals and other cus­to­ma­ry clo­sing conditions.

Fol­lo­wing the tran­sac­tion, Nokia plans to focus on its three estab­lished busi­nesses, each of which is a lea­der in enab­ling mobi­li­ty in its respec­ti­ve mar­ket seg­ment: NSN, a lea­der in net­work infra­struc­tu­re and ser­vices; HERE, a lea­der in map­ping and loca­ti­on ser­vices; and Advan­ced Tech­no­lo­gies, a lea­der in tech­no­lo­gy deve­lo­p­ment and licen­sing. At clo­sing, this tran­sac­tion is expec­ted to streng­then Nokia’s finan­cial posi­ti­on and pro­vi­de a solid basis for future invest­ment in the­se three businesses.

“After a tho­rough assess­ment of how to maxi­mi­ze share­hol­der value, inclu­ding con­side­ra­ti­on of a varie­ty of alter­na­ti­ves, we belie­ve this tran­sac­tion is the best path for­ward for Nokia and its share­hol­ders,” said Ris­to Sii­las­maa, Chair­man of the Nokia Board of Direc­tors and, fol­lo­wing today’s announce­ment, also Nokia inte­rim CEO.

Deal Terms

Sub­ject to the clo­sing of the tran­sac­tion, Micro­soft will acqui­re sub­stan­ti­al­ly all of Nokia’s Devices & Ser­vices busi­ness, inclu­ding the Mobi­le Pho­nes and Smart Devices busi­ness units as well as an indus­try-lea­ding design team, ope­ra­ti­ons inclu­ding all Nokia Devices & Ser­vices pro­duc­tion faci­li­ties, Devices & Ser­vices-rela­ted sales and mar­ke­ting acti­vi­ties, and rela­ted sup­port func­tions. At clo­sing, appro­xi­m­ate­ly 32,000 peo­p­le are expec­ted to trans­fer to Micro­soft, inclu­ding appro­xi­m­ate­ly 4,700 peo­p­le in Fin­land. Nokia’s CTO (Chief Tech­no­lo­gy Office) orga­niza­ti­on and patent port­fo­lio will remain within the Nokia Group. The ope­ra­ti­ons that are plan­ned to be trans­fer­red to Micro­soft gene­ra­ted an esti­ma­ted EUR 14.9 bil­li­on, or almost 50%, of Nokia’s net sales for the full year 2012.

As part of the tran­sac­tion, Nokia will grant Micro­soft a 10 year non-exclu­si­ve licen­se to its patents as of the time of the clo­sing, and Micro­soft will grant Nokia recipro­cal rights rela­ted to HERE ser­vices. In addi­ti­on, Nokia will grant Micro­soft an opti­on to extend this mutu­al patent agree­ment to per­p­etui­ty. Of the total purcha­se pri­ce of EUR 5.44 bil­li­on, EUR 3.79 bil­li­on rela­tes to the purcha­se of sub­stan­ti­al­ly all of the Devices & Ser­vices busi­ness, and EUR 1.65 bil­li­on rela­tes to the mutu­al patent agree­ment and future option.

Addi­tio­nal­ly, Micro­soft will beco­me a stra­te­gic licen­see of the HERE plat­form, and will sepa­ra­te­ly pay Nokia for a four year licen­se. This reve­nue stream is expec­ted to sub­stan­ti­al­ly replace the reve­nue stream HERE is curr­ent­ly recei­ving from Nokia’s Devices & Ser­vices busi­ness intern­al­ly. If the tran­sac­tion clo­ses Micro­soft is expec­ted to beco­me one of the top three cus­to­mers of HERE.

Micro­soft has agreed to make imme­dia­te­ly available to Nokia EUR 1.5 bil­li­on of finan­cing in the form of three EUR 500 mil­li­on tran­ches of con­ver­ti­ble bonds to be issued by Nokia matu­ring in 5, 6 and 7 years respec­tively. It is at Nokia’s dis­cre­ti­on if it choo­ses to draw down all or some of the­se tran­ches. The finan­cing is not con­di­tio­nal on the tran­sac­tion clo­sing. If the tran­sac­tion clo­ses, any out­stan­ding bonds will be rede­e­med and net­ted against the deal pro­ceeds by the amount of prin­ci­pal and accrued interest.

The fol­lo­wing are the key terms of the three tran­ches of bonds Nokia may choo­se to issue:

• The first tran­che matures in 5 years and has a 1.125% per annum cou­pon paya­ble semi-annu­al­ly with an initi­al con­ver­si­on pri­ce of EUR 3.9338.
• The second tran­che matures in 6 years and has a 2.5% per annum cou­pon paya­ble semi-annu­al­ly with an initi­al con­ver­si­on pri­ce of EUR 4.0851.
• The third tran­che matures in 7 years and has a 3.625% per annum cou­pon paya­ble semi-annu­al­ly with an initi­al con­ver­si­on pri­ce of EUR 4.2364.

The Board of Direc­tors of Nokia will sepa­ra­te­ly assess whe­ther to draw down some or all of this finan­cing. If Nokia would deci­de to uti­li­ze this finan­cing opti­on, the ear­liest that Micro­soft could con­vert any of the­se bonds to shares is two years from draw down.

Micro­soft has agreed to a 10 year licen­se arran­ge­ment with Nokia to use the Nokia brand on cur­rent Mobi­le Pho­nes pro­ducts. Nokia will con­ti­nue to own and main­tain the Nokia brand.  Under the terms of the tran­sac­tion, Micro­soft has agreed to a 10 year licen­se arran­ge­ment with Nokia to use the Nokia brand on cur­rent and sub­se­quent­ly deve­lo­ped pro­ducts based on the Series 30 and Series 40 ope­ra­ting sys­tems.  Upon the clo­sing of the tran­sac­tion, Nokia would be rest­ric­ted from licen­sing the Nokia brand for use in con­nec­tion with mobi­le device sales for 30 months and from using the Nokia brand on Nokia’s own mobi­le devices until Decem­ber 31, 2015.

The tran­sac­tion is sub­ject to poten­ti­al purcha­se pri­ce adjus­t­ments, pro­tec­ting both Nokia and Micro­soft, and a USD 750 mil­li­on ter­mi­na­ti­on fee paya­ble by Micro­soft to Nokia in the event that the tran­sac­tion fails to recei­ve neces­sa­ry regu­la­to­ry clearances.

Buil­ding Nokia’s next chapter

Fol­lo­wing the tran­sac­tion, Nokia plans to focus on its three estab­lished busi­nesses, each of which is a lea­der in enab­ling mobi­li­ty in its respec­ti­ve mar­ket seg­ment: NSN, a lea­der in net­work infra­struc­tu­re and ser­vices; HERE, a lea­der in map­ping and loca­ti­on ser­vices; and Advan­ced Tech­no­lo­gies, a lea­der in tech­no­lo­gy deve­lo­p­ment and licensing.

Nokia will retain its head­quar­ters in Fin­land. Exclu­ding the appro­xi­m­ate­ly 32,000 peo­p­le plan­ned to trans­fer to Micro­soft, Nokia would have employ­ed appro­xi­m­ate­ly 56,000 peo­p­le at the end of the second quar­ter 2013.

“Today is an important moment of chan­ge and reinven­ti­on for Nokia and its employees,” said Nokia Chair­man and inte­rim CEO Mr. Sii­las­maa. “With our strong cor­po­ra­te iden­ti­ty, lea­ding assets and talent, and from a posi­ti­on of rene­wed finan­cial strength, we will build Nokia’s next chapter.”

NSN, a whol­ly-owned busi­ness of Nokia sin­ce August 2013, is a lea­der in mobi­le broad­band, and is focu­sed on ope­ra­ting at the fore­front of each gene­ra­ti­on of mobi­le tech­no­lo­gy, inclu­ding pushing the boun­da­ries of con­nec­ting peo­p­le through LTE and future tech­no­lo­gies. Nokia con­ti­nues to mana­ge NSN as a strong, inde­pen­dent entity.

HERE will con­ti­nue to focus on gro­wing its indus­try-lea­ding posi­ti­on through a broad loca­ti­on offe­ring across mobi­le devices, con­nec­ted devices, enter­pri­se solu­ti­ons and the auto­mo­ti­ve envi­ron­ment. HERE will con­ti­nue to exe­cu­te its stra­tegy to beco­me the lea­ding inde­pen­dent loca­ti­on cloud plat­form com­pa­ny, offe­ring map­ping and loca­ti­on ser­vices across dif­fe­rent screens and ope­ra­ting systems.

Our Advan­ced Tech­no­lo­gies busi­ness will build on seve­ral of Nokia’s cur­rent CTO and Intellec­tu­al Pro­per­ty Rights activities.Advanced Tech­no­lo­gies will explo­re new busi­ness oppor­tu­ni­ties through advan­ced rese­arch, deve­lo­p­ment and con­cept pro­ducts in are­as such as con­nec­ti­vi­ty, sens­ing and mate­ri­al tech­no­lo­gies, as well as web and cloud tech­no­lo­gies. At the same time, Advan­ced Tech­no­lo­gies plans to con­ti­nue to build Nokia’s patent port­fo­lio from this inno­va­ti­on and tar­gets to expand its indus­try-lea­ding tech­no­lo­gy licen­sing pro­gram, span­ning tech­no­lo­gies that enable mobi­li­ty today and tomorrow.

“Fol­lo­wing this tran­sac­tion, Nokia’s finan­cial situa­ti­on is expec­ted to be signi­fi­cant­ly stron­ger and its ear­nings pro­fi­le signi­fi­cant­ly impro­ved,” said Nokia CFO and inte­rim Pre­si­dent Timo Iha­muoti­la. “We will have three well-posi­tio­ned busi­nesses, each a lea­der in its mar­ket. Over­all, we will con­ti­nue to focus on mana­ging and maxi­mi­zing the assets of Nokia Group pru­dent­ly and prag­ma­ti­cal­ly to crea­te value for Nokia shareholders.”

His­to­ri­cal pro for­ma infor­ma­ti­on and stra­te­gic evaluation

This tran­sac­tion is expec­ted to be signi­fi­cant­ly accre­ti­ve to Nokia ear­nings. In the first half 2013, Nokia Group net sales were EUR 11.5 bil­li­on and non-IFRS ope­ra­ting mar­gin was 4.2%. On a pro for­ma basis assum­ing this tran­sac­tion would have clo­sed, Nokia Group net sales would have been EUR 6.3 bil­li­on and non-IFRS ope­ra­ting mar­gin would have been 12.1% in the first half 2013.

1) The pro for­ma net sales for con­ti­nuing ope­ra­ti­ons have been cal­cu­la­ted by deduc­ting the Mobi­le Pho­nes and Smart Devices busi­ness units net sales and spa­re parts net sales from the Nokia Group net sales.
2) Addi­tio­nal­ly, con­ti­nuing ope­ra­ti­ons pro for­ma net sales have been adjus­ted to reflect the HERE plat­form licen­se agree­ment under which Micro­soft will sepa­ra­te­ly pay Nokia, as if the tran­sac­tion had clo­sed on Janu­ary 1, 2012.
3) The pro for­ma ope­ra­ting pro­fit % has been cal­cu­la­ted by deduc­ting the Mobi­le Pho­nes and Smart Devices busi­ness units cos­ts from the Nokia group cos­ts as well as by making cer­tain cost adjus­t­ments bet­ween the trans­fer­ring busi­ness and con­ti­nuing ope­ra­ti­ons to reflect the scope of the transaction.
4) The abo­ve figu­res reflect the retro­s­pec­ti­ve appli­ca­ti­on of IAS 19R, Employee bene­fits, as published in our 2013 inte­rim reports.

The tran­sac­tion is also expec­ted to signi­fi­cant­ly streng­then Nokia’s finan­cial posi­ti­on and Nokia tar­gets to return to being an invest­ment gra­de com­pa­ny. If this tran­sac­tion as well as Nokia’s acqui­si­ti­on of 50% of NSN would have clo­sed befo­re the end of the second quar­ter 2013, Nokia would have ended the quar­ter with gross cash of EUR 14.9 bil­li­on and net cash of EUR 7.8 bil­li­on, exclu­ding tran­sac­tion rela­ted expen­ses and taxes. Assum­ing repay­ment of finan­cing faci­li­ties rela­ted to the NSN acqui­si­ti­on as well as Nokia’s debt faci­li­ties of EUR 1.8 bil­li­on matu­ring befo­re the end of the first quar­ter 2014, Nokia would have ended the second quar­ter 2013 with gross cash of EUR 11.4 bil­li­on and net cash of EUR 7.8 bil­li­on, exclu­ding tran­sac­tion rela­ted expen­ses and taxes. This com­pa­res to repor­ted gross cash of EUR 9.5 bil­li­on and net cash of EUR 4.1 bil­li­on at the end of the second quar­ter 2013.

Nokia’s Board of Direc­tors is con­duc­ting a stra­tegy eva­lua­ti­on for Nokia Group bet­ween sig­ning and clo­sing of the tran­sac­tion. This eva­lua­ti­on will com­pri­se of eva­lua­tions of stra­te­gies for each of Nokia’s three busi­nesses and pos­si­ble syn­er­gies bet­ween them, as well as an eva­lua­ti­on of the opti­mal cor­po­ra­te and capi­tal struc­tu­re for Nokia after the clo­sing of the tran­sac­tion. After this eva­lua­ti­on is com­ple­te, dee­med excess capi­tal is plan­ned to be dis­tri­bu­ted to shareholders.

Nokia expects to book a gain on sale of appro­xi­m­ate­ly EUR 3.2 bil­li­on from the tran­sac­tion, exclu­ding any poten­ti­al tax impli­ca­ti­ons, gains or los­ses rela­ted to cur­ren­cy trans­la­ti­on dif­fe­ren­ces trig­ge­red by the tran­sac­tion. In con­nec­tion with the tran­sac­tion, Nokia will be requi­red to eva­lua­te whe­ther the impact of the sale on future cash flows or ope­ra­ting results requi­res chan­ges in the car­ry­ing values of any of its remai­ning assets or lia­bi­li­ties. This eva­lua­ti­on will include, among other things, a review of exis­ting good­will balan­ces for impair­ment and the poten­ti­al reco­vera­bi­li­ty of defer­red tax assets curr­ent­ly sub­ject to valua­ti­on allo­wan­ce.  Addi­tio­nal assets and lia­bi­li­ties may requi­re adjus­t­ment upon com­ple­ti­on of our review.

Nokia Lea­der­ship

Nokia today announ­ced chan­ges to its lea­der­ship as a result of the pro­po­sed tran­sac­tion. The­se chan­ges, which are effec­ti­ve imme­dia­te­ly, are desi­gned to pro­vi­de an appro­pria­te cor­po­ra­te gover­nan­ce struc­tu­re during the inte­rim peri­od fol­lo­wing the announce­ment of this transaction.

The Nokia Lea­der­ship Team will con­ti­nue to con­sist of the cur­rent mem­bers, but with chan­ges in posi­ti­ons and report­ing lines as out­lined below.

Ris­to Sii­las­maa will assu­me an inte­rim CEO role for Nokia while con­ti­nuing to ser­ve in his role as Chair­man of the Nokia Board of Direc­tors. As part of his inte­rim CEO role, Mr. Sii­las­maa will, among other tasks, over­see stra­tegy and have four direct reports: Micha­el Halb­herr, Exe­cu­ti­ve Vice Pre­si­dent, HERE; Ste­phen Elop, Exe­cu­ti­ve Vice Pre­si­dent, Devices & Ser­vices; Timo Iha­muoti­la, Nokia CFO and inte­rim Pre­si­dent; and Jes­per Ove­sen, Exe­cu­ti­ve Chair­man of the NSN Board of Directors.

To avo­id the per­cep­ti­on of any poten­ti­al con­flict of inte­rest bet­ween now and the pen­ding clo­sure of the tran­sac­tion, Ste­phen Elop will step asi­de as Pre­si­dent and CEO of Nokia Cor­po­ra­ti­on, resign from the Board of Direc­tors, and will beco­me Exe­cu­ti­ve Vice Pre­si­dent, Devices & Ser­vices. The fol­lo­wing Nokia Lea­der­ship Team mem­bers will report to Mr. Elop: Mar­ko Ahti­saa­ri, Exe­cu­ti­ve Vice Pre­si­dent, Design; Jo Har­low, Exe­cu­ti­ve Vice Pre­si­dent, Smart Devices; Juha Put­ki­ran­ta, Exe­cu­ti­ve Vice Pre­si­dent, Ope­ra­ti­ons; Timo Toik­ka­nen, Exe­cu­ti­ve Vice Pre­si­dent, Mobi­le Pho­nes; and Chris Weber, Exe­cu­ti­ve Vice Pre­si­dent, Sales and Marketing.

Timo Iha­muoti­la beco­mes Pre­si­dent of Nokia for the inte­rim peri­od while also con­ti­nuing to ser­ve as CFO. Mr. Iha­muoti­la will assu­me the respon­si­bi­li­ty of chai­ring the Nokia Lea­der­ship Team. The fol­lo­wing Nokia Lea­der­ship Team mem­bers will report to Mr. Iha­muoti­la: Loui­se Pent­land, Exe­cu­ti­ve Vice Pre­si­dent and Chief Legal Offi­cer; Hen­ry Tir­ri, Exe­cu­ti­ve Vice Pre­si­dent and Chief Tech­no­lo­gy Offi­cer; Juha Äkräs, Exe­cu­ti­ve Vice Pre­si­dent, Human Resour­ces; and Kai Öistämö, Exe­cu­ti­ve Vice Pre­si­dent, Cor­po­ra­te Development.

We expect that Mr. Elop, Ms. Har­low, Mr. Put­ki­ran­ta, Mr. Toik­ka­nen, and Mr. Weber would trans­fer to Micro­soft at the anti­ci­pa­ted closing.

Mr. Ahti­saa­ri has deci­ded to again pur­sue entre­pre­neu­ri­al oppor­tu­ni­ties. He will step down from the Nokia Lea­der­ship Team and his posi­ti­on as Exe­cu­ti­ve Vice Pre­si­dent, Design, effec­ti­ve as from Novem­ber 1, 2013. He will con­ti­nue to work on acti­vi­ties rela­ted to the tran­sac­tion through Novem­ber 30, 2013. Effec­ti­ve Novem­ber 1, 2013 Ste­fan Pan­nen­be­cker will start lea­ding Design, report­ing to Mr. Elop.

This announce­ment does not chan­ge the cur­rent lea­der­ship for Nokia Solu­ti­ons and Net­works. Rajeev Suri will con­ti­nue to ser­ve as CEO, NSN, report­ing to NSN’s Board which con­ti­nues to be chai­red by Jes­per Ove­sen who con­ti­nues to ser­ve as NSN’s Exe­cu­ti­ve Chair­man and reports to Mr. Siilasmaa.

Nokia Board of Directors

To avo­id the per­cep­ti­on of any poten­ti­al con­flict of inte­rest bet­ween now and the pen­ding clo­sure of the tran­sac­tion, Ste­phen Elop will resign from the Nokia Board of Direc­tors effec­ti­ve today. The Nokia Board curr­ent­ly con­sists of the fol­lo­wing nine mem­bers: Ris­to Sii­las­maa, Chair­man; Jou­ko Kar­vi­nen, Vice Chair­man; Bruce Brown; Eliza­beth Doh­erty; Hen­ning Kager­mann; Hel­ge Lund; Mår­ten Mic­kos; Eliza­beth Nel­son and Kari Sta­digh. As a result of Mr. Sii­las­maa assum­ing the inte­rim CEO role, and in line with good cor­po­ra­te gover­nan­ce, Mr. Sii­las­maa will no lon­ger be a mem­ber and Chair­man of the Cor­po­ra­te Gover­nan­ce & Nomi­na­ti­on Com­mit­tee. The Cor­po­ra­te Gover­nan­ce and Nomi­na­ti­on Com­mit­tee curr­ent­ly con­sists of the fol­lo­wing three mem­bers:  Mr. Kager­mann, Mr. Kar­vi­nen and Mr. Lund. The Board elec­ted Mr. Kar­vi­nen as the Chair­man of the Cor­po­ra­te Gover­nan­ce & Nomi­na­ti­on Com­mit­tee. The com­po­si­ti­on of the Per­son­nel Com­mit­tee and the Audit Com­mit­tee remain unchanged.

Extra­or­di­na­ry share­hol­ders mee­ting and Nokia Board recommendation

Under the terms of the agree­ment, the clo­sing of the tran­sac­tion will be sub­ject to appr­oval by Nokia share­hol­ders. Nokia plans to hold an Extra­or­di­na­ry Gene­ral Mee­ting on Novem­ber 19, 2013 and to publish a noti­ce of the mee­ting and make available more infor­ma­ti­on on the tran­sac­tion and its back­ground later this month. Having tho­rough­ly ana­ly­sed the tran­sac­tion and other alter­na­ti­ves available, the Board of Direc­tors deci­ded to enter into the tran­sac­tion and recom­mends that Nokia share­hol­ders vote to con­firm and appro­ve the sale of sub­stan­ti­al­ly all of the Devices & Ser­vices busi­ness to Micro­soft at the Extra­or­di­na­ry Gene­ral Meeting.

Inves­tor Con­fe­rence Call

Today, Nokia exe­cu­ti­ves will hold an inves­tor call at 3.00pm Fin­nish time. A live web­cast of the con­fe­rence call will be available at http://investors.nokia.com. Media repre­sen­ta­ti­ves can view the web­cast or lis­ten in at +1 706 634 5012, con­fe­rence ID 45390451.

Press Con­fe­rence

Nokia will host a press con­fe­rence today on Tues­day at 11.00 a.m. EET in Dipo­li, Espoo (Otaka­a­ri 24). Regis­tra­ti­on will start at 10 a.m., and the doors will open at 10.40 a.m. Due to space cons­traints, only media who show valid press cre­den­ti­als at the regis­tra­ti­on will be admit­ted. Media are encou­ra­ged to watch a live web­cast of the press con­fe­rence via: http://press.nokia.com.

Media Enqui­ries

Nokia
Communications

Tel. +358 7180 34900
Email: press.services@nokia.com
www.nokia.com/

FORWARD-LOOKING STATEMENTS
It should be noted that Nokia and its busi­ness are expo­sed to various risks and uncer­tain­ties and cer­tain state­ments her­ein that are not his­to­ri­cal facts are for­ward-loo­king state­ments, inclu­ding, wit­hout limi­ta­ti­on, tho­se regar­ding: A) the plan­ned sale by Nokia of sub­stan­ti­al­ly all of Nokia’s Devices & Ser­vices busi­ness, inclu­ding Smart Devices and Mobi­le Pho­nes  (refer­red to below as “Sale of the D&S Busi­ness”) pur­su­ant to a purcha­se agree­ment bet­ween Nokia and Micro­soft (refer­red to below as “Agree­ment”); B) the clo­sing of the Sale of the D&S Busi­ness; C) obtai­ning the share­hol­der appr­oval for the Sale of the D&S Busi­ness; D) recei­ving time­ly, or at all, neces­sa­ry regu­la­to­ry appr­ovals for the Sale of the D&S Busi­ness; E) expec­ta­ti­ons, plans or bene­fits rela­ted to or cau­sed by the Sale of the D&S Busi­ness; F) expec­ta­ti­ons, plans or bene­fits rela­ted to Nokia’s stra­te­gies, inclu­ding plans for Nokia with respect to its con­ti­nuing busi­ness are­as that will not be dive­s­ted in con­nec­tion with the Sale of the D&S Busi­ness; G) expec­ta­ti­ons, plans or bene­fits rela­ted to chan­ges in lea­der­ship and ope­ra­tio­nal struc­tu­re; H) expec­ta­ti­ons and tar­gets regar­ding our ope­ra­tio­nal prio­ri­ties, finan­cial per­for­mance or posi­ti­on, results of ope­ra­ti­ons and use of pro­ceeds from the Sale of the D&S Busi­ness; and I) state­ments pre­ce­ded by “belie­ve,” “expect,” “anti­ci­pa­te,” “fore­see,” “sees,” “tar­get,” “esti­ma­te,” “desi­gned,” “aim”, “plans,” “intends,” “focus,” “will” or simi­lar expres­si­ons. The­se state­ments are based on management’s best assump­ti­ons and beliefs in light of the infor­ma­ti­on curr­ent­ly available to it. Becau­se they invol­ve risks and uncer­tain­ties, actu­al results may dif­fer mate­ri­al­ly from the results that we curr­ent­ly expect. Fac­tors, inclu­ding risks and uncer­tain­ties that could cau­se the­se dif­fe­ren­ces include, but are not limi­t­ed to: 1) the ina­bi­li­ty to clo­se the Sale of the D&S Busi­ness in a time­ly man­ner, or at all, for ins­tance due to the ina­bi­li­ty or delays in obtai­ning the share­hol­der appr­oval or neces­sa­ry regu­la­to­ry appr­ovals for the Sale of the D&S Busi­ness, or the occur­rence of any event, chan­ge or other cir­cum­s­tance that could give rise to the ter­mi­na­ti­on of the Agree­ment; 2) the poten­ti­al adver­se effect on the sales of our mobi­le devices, busi­ness rela­ti­onships, ope­ra­ting results and busi­ness gene­ral­ly  resul­ting from the announce­ment of the Sale of the D&S Busi­ness or from the terms that we have agreed for the Sale of the D&S Busi­ness; 3) any nega­ti­ve effect cau­sed by us ente­ring into the Sale of the D&S Busi­ness, as we may fore­go other com­pe­ti­ti­ve alter­na­ti­ves for stra­te­gies or part­ner­ships that would bene­fit our Devices & Ser­vices busi­ness and if the Sale of the D&S Busi­ness is not clo­sed, we may have limi­t­ed opti­ons to con­ti­nue the Devices & Ser­vices  busi­ness or enter into ano­ther tran­sac­tion on terms favorable to us, or at all; 4) our abili­ty to effec­tively and smooth­ly imple­ment plan­ned chan­ges to our lea­der­ship and ope­ra­tio­nal struc­tu­re or main­tain an effi­ci­ent inte­rim gover­nan­ce struc­tu­re and pre­ser­ve or hire key per­son­nel; 5) any nega­ti­ve effect from the imple­men­ta­ti­on of the Sale of the D&S Busi­ness, which will requi­re signi­fi­cant time, atten­ti­on and resour­ces of our seni­or manage­ment and others within the com­pa­ny poten­ti­al­ly diver­ting their atten­ti­on from other aspects of our busi­ness; 6) dis­rup­ti­on and dis­sa­tis­fac­tion among employees cau­sed by the plans and imple­men­ta­ti­on of the Sale of the D&S Busi­ness redu­cing focus and pro­duc­ti­vi­ty in are­as of our busi­ness; 7) the amount of the cos­ts, fees, expen­ses and char­ges rela­ted to or trig­ge­red by the Sale of the D&S Busi­ness; 8) any impairm­ents or char­ges to car­ry­ing values of assets or lia­bi­li­ties rela­ted to or trig­ge­red by the Sale of the D&S Busi­ness; 9) poten­ti­al adver­se effect on our busi­ness, pro­per­ties or ope­ra­ti­ons cau­sed by us imple­men­ting the Sale of the D&S Busi­ness; 10) the initia­ti­on or out­co­me of any legal pro­cee­dings, regu­la­to­ry pro­cee­dings or enforce­ment mat­ters that may be insti­tu­ted against us rela­ting to the Sale of the D&S Busi­ness; and, as well as the risk fac­tors spe­ci­fied on pages 12–47 of Nokia’s annu­al report on Form 20‑F for the year ended Decem­ber 31, 2012 under Item 3D. “Risk Fac­tors.” and risks out­lined in our most recent inte­rim report. Other unknown or unpre­dic­ta­ble fac­tors or under­ly­ing assump­ti­ons sub­se­quent­ly pro­ving to be incor­rect could cau­se actu­al results to dif­fer mate­ri­al­ly from tho­se in the for­ward-loo­king state­ments. Nokia does not under­ta­ke any obli­ga­ti­on to publicly update or revi­se for­ward-loo­king state­ments, whe­ther as a result of new infor­ma­ti­on, future events or other­wi­se, except to the ext­ent legal­ly required.