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Technology Stocks : Nokia Corp. (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (1754)	11/30/2001 1:33:00 PM
From: Eric L	Read Replies (1) \| Respond to of 9255

Jorma Ollila Introduction at Capital Markets Day Mr. Jorma Ollila, Chairman and CEO - Opening Remarks of the Day _______________________________________________________________________ Agenda • Economic & Industry Environment • Market behavior during transition • Industry Trends Slide 9 event.mediaondemand.com _______________________________________________________________________ Changing Economic and Industry Environment How wrong we all well 12 or 13 months ago. It has been a very challenging economic environment for everyone. ... At the beginning of the year we had 6 months of major uncertainty. In July we projected the 3rd quarter pretty well. We now feel good about guidance about 4th quarter. We have clearly improved visibility but it is still not easy not easy for the industry. We expect a rebound of some sort by end of next year. Starting this 4th quarter in US. Their will be no good news from Europe next nine months. Europe will follow the US in recovering with some delay. One key issue in industry - digitalization of content allowing digital to go mobile in a big way. There Are Specific Issues That The Communications Industry Is Facing: • New industry structures • Extent of 3G investments • Timing & usage of new Services • Economic environment • Digitalization of Content The single key issue is Digitilazation of content. Slide 10 event.mediaondemand.com _______________________________________________________________________ Market Behavior During a Transition Overhype --> Over-criticism --> Recognition of new business Voice goes Wireless Internet & WAP Economic slowdown and 3G license fees Connecting People - The next phase Slide 11 event.mediaondemand.com _______________________________________________________________________ Industry Trends Is the Business Model Changing? What is Nokia's business model in the future? • Software • Hardware • Services Analysing software and hardware separately is not relevant. • One needs to combine software with hardware or • Offer software as a service Nokia continues creating value from combining hardware with software - and offer superior 'Total Products' and solutions to Consumers and Operators Slide 13 event.mediaondemand.com _______________________________________________________________________ Mobile Phones Business Model Is Evolving The PC business model is not the right reference The PC Industry Business model - Dominant component Vendor - Dominant Software Vendor - Low Value added Hardware • False assumption: PC type of business model is directly applicable • Low value added from hardware • All value created in separate software & application layers • Fact: Mobile Phones are becoming intelligent devices with a lot of value added coming from software The PC business model is not the right reference • Open mobile architecture initiative • Nokia's Mobile Software Strategy: • Licensing of source code • Terminal client & Server offering • Total Product Concepts (end-to-end) • Differentiation on multiple layers • Open competition in component chipsets Value Added remains within the mobile operator & vendor Slide 14 event.mediaondemand.com Slide 15 event.mediaondemand.com _______________________________________________________________________ New Mobile Services Are Emerging As We Speak • Open Mobile Architecture enabling non-fragmented global Service Platforms • Technology enablers in place • Operator billing capability & business model • Host of attractive services to be launched • multimedia messaging, infotainment, games, business, services, etc Example Mobile Services - Wave Sound - Bitmap Image - Video Clip - SMS, MMS Slide 16 event.mediaondemand.com _______________________________________________________________________ When Will 3G Become Mass Market? • 3G handset availability - chipset maturity • 3G infrastructure maturity -standardization • Services availability • Speeds offered by 3G • Operator cash flow constraits • Wait-and-see mode by operators Slide 17 event.mediaondemand.com _______________________________________________________________________ 3G Infrastructure Rollout Is Reality Today Nokia plans to deliver approximately 100,000 WCDMA carriers during 2002 • Nokia dual mode 3G phones in volumes in H2-2002 • 3G rollout takes time and it will happen gradually • 3G WCDMA brings cost efficiency • 3G is only incremental addition to operator existing Capex • Drive for increased ARPU • Competitive dynamics accelerate rollout 3G Services Will Emerge In H1-2003 Slide 18 event.mediaondemand.com _______________________________________________________________________ Complexity Is Increasing Mobile Phones Are Not A Commodity .... today and will not be in the future Perception: • Technology advances are slowing down • Product differences are dissapearing • Competitors are catching up • Phone on one chip • Technology outlicensing Reality: • New era of innovation in mobile terminals with content going mobile • Accelerating technology advancements • Diverging product categories • Increasing role of software • Importance of continuous product renewal Slide 19 event.mediaondemand.com Slide 20 event.mediaondemand.com The 3MB PDF of this presentation can be downloaded here: media.corporate-ir.net Jorma's presentation can be accessed here: corporate-ir.net ### - Eric -