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Nokia Corporation (NOK)
Q3 2010 Earnings Call Transcript
October 21, 2010 8:00 am ET
Kristian Pullola – VP, Head of Treasury & IR
Stephen Elop – President & CEO
Timo Ihamuotila – EVP & CFO
Stuart Jeffrey – Nomura
Rod Hall – JP Morgan
Andrew Griffin – Merrill Lynch
Mike Walkley – Canaccord Genuity
Kulbinder Garcha – Credit Suisse
Gareth Jenkins – UBS
Mark Sue – RBC Capital Markets
Tim Boddy – Goldman Sachs
Kai Korschelt – Deutsche Bank
Tim Long – Bank of Montreal
Patrick Standaert – Morgan Stanley
Andrew Gardiner – Barclays
Previous Statements by NOK
» Nokia Corp. Q2 2010 Earnings Call Transcript
» Nokia Corporation Q1 2010 Earnings Call Transcript
» Nokia Corporation Q4 2009 Earnings Call Transcript
» Nokia Corporation Q3 2009 Earnings Call Transcript
Thank you. I will now turn the call over to Mr. Kristian Pullola, Vice President, Head of Treasury and Investor Relations. Sir, you may begin.
Ladies and gentlemen, welcome to Nokia’s third quarter 2010 conference call. I’m Kristian Pullola, Head of Nokia Investor Relations; Stephen Elop, President and CEO of Nokia; and Timo Ihamuotila, CFO of Nokia are here in Espoo with me today.
During this call, we will be making forward-looking statements regarding the future business and financial performance of Nokia and its industry. These statements are predictions that involve risks and uncertainties. Actual results may therefore materially differ from results currently expected.
Factors that could cause such differences can be both external such as general, economic and industry conditions as well as internal operating factors. We have identified these in more detail on pages 11 to 32 in our 2009 20-F as well as our press release issued today.
Our aim is to finish this call in approximately one hour. Please note that today’s press release and the presentation includes non-IFRS results information in addition to the reported results information. Our quarterly results release includes detailed explanation of the content of the non-IFRS information as well as a reconciliation between the two.
With that, Stephen, please go ahead.
Thank you, ladies and gentlemen, for joining us today for what is my first earnings release as the President and CEO of Nokia. In the five weeks since joining Nokia, I have begun the journey of listening, learning, and adjusting. Indeed I have already had the opportunity to interact with literally thousands of employees as well as customers and partners. At the highest level what I have initially found is a company with many great strengths and a history of achievements that are second to none in the industry. Yet our company faces a remarkably disruptive time in the industry with recent results demonstrating that we must reassess our role in and our approach to this industry.
The strengths that I referenced are quite diverse in nature. Quite clearly, one of Nokia’s greatest historic strengths has been the ability to produce great products, where product is defined not only as the hardware but also the software, the platform, and the services that comprise the entire user experience.
On the other hand it was indeed a surprise to me that our most recent quarterly results were constrained not by demand for our products but by the supply of certain critical components. Indeed the demand for our products, including those most recently launched, is a very encouraging sign for our future.
Another key strength is the employee talent within Nokia. We have thousands of skilled and dedicated people around the world and I have very deliberately assessed whether or not the critical, law ingredients exist within our walls, including in areas such as contemporary user experiences and design; cloud-based services; software engineering practices and process; manufacturing, logistics and supply management; the ability to develop, maintain, and defend differentiated intellectual property; and, of course, hardware design, engineering, and mechanics.
The good news is that many of these capabilities are within Nokia with a growing number of industry thought leaders serving as members of our team. On the other hand, we must more deliberately align and focus this talent around a crisply articulated strategy where a tighter collection of important priorities are well understood and pursued by all.
Another critical strength of Nokia is its capacity to innovate. I would characterize Nokia as a landscape of unpolished gems. Whether it is the degree of intimacy we have established with millions of consumers around the world, our naturally aligned world view with operators, groundbreaking technological capabilities in everything from optics to nanotechnology to haptics, our strengths in emerging markets, or our assets in location-based services, there is an embarrassment of riches within Nokia.
On the other hand, the value of these gems to our consumers and shareholders will only be realized if we make a concerted effort to translate the most important of them into sustainable, differentiated value while firmly setting aside those whose future is less relevant.
Much has been written about the questions we face about the relative role of various operating system platforms, including Series 40, Symbian and MeeGo in an environment where other operating platforms have been gaining share.
I see the broad penetration and user familiarity of both Series 40 and Symbian as an asset for the company that must be carefully managed and renewed over time, and it is our aspiration to raise the industry bar on what constitutes a contemporary user experience as we look forward to our first MeeGo-based device.