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NOKIA: Nokia appoints Rajeev Suri as President and CEO and announces new strategy, program to optimize capital structure, and leadership team

Nokia Corporation

Stock exchange release
April 29, 2014 at 06:00 (CET+1)

Espoo, Finland - Having completed the sale of substantially all of its
Devices&Services business to Microsoft on April 25, 2014, Nokia today
announced the following:

- The appointment of Rajeev Suri as President and Chief Executive Officer,
effective May 1, 2014;

- A vision to be a leader in technologies important in a connected world;

- A strategy to realize that vision by building on Nokia's three strong
businesses in networks, location and technologies;

- Plans for a EUR 5 billion program to optimize its capital structure,
including the Nokia Board's proposal to the Annual General Meeting 2014 for
the dividend and for an authorization for the Board to repurchase shares; and

- A new governance structure and the appointment of a new leadership team,
effective May 1, 2014.

New President and CEO

Nokia Board of Directors has appointed Rajeev Suri as President and CEO of
Nokia Corporation, effective May 1, 2014. Suri joined Nokia in 1995 and has
held a wide range of leadership positions in the company. Since October of
2009, he has served as CEO of NSN, the former joint venture between Nokia and
Siemens that is now fully owned by Nokia. During his tenure as CEO, that
business went through a radical transformation to become one of the leaders
in the telecommunications infrastructure industry.

"As Nokia opens this new chapter, the Nokia Board and I are confident that
Rajeev is the right person to lead the company forward," said Risto
Siilasmaa, Chairman of the Nokia Board of Directors. "He has a proven ability
to create strategic clarity, drive innovation and growth, ensure disciplined
execution, and deliver results. We believe that his passion for technology
will help ensure that Nokia continues to deliver innovations that have a
positive impact on people's lives."

Siilasmaa, who has also been serving as an interim CEO, will return to
focusing exclusively on his role as Chairman of Nokia's Board of Directors as
of May 1, 2014.

"I am honored to have been asked to take this role, and excited about the
possibilities that lie in our future," said Rajeev Suri. "Nokia, with its
deep experience in connecting people and its three strong businesses, is
well-positioned to tap new opportunities during this time of technological
change. I look forward to working with the entire Nokia team as we embark on
this exciting journey."

Long-term leadership targeted in three key areas

Nokia believes that over the next 10 years billions of connected devices will
converge into intelligent and programmable systems that will have the
potential to improve lives in a vast number of areas: time and availability,
transportation and resource consumption, learning and work, health and
wellness, and many more.

This new world of technology will require 1) connectivity capable of handling
massive numbers of devices and exponential increases in data traffic; 2)
location services that seamlessly bridge between the real and virtual worlds;
and 3) innovation, including in sensing, radio and low power technologies.
Nokia's vision is to be a leader over the long term in these three areas.

"The world of technology is on the verge of a change that we believe will be
as profound as the creation of the internet" said Rajeev Suri. "With our
three strong businesses - Networks, HERE and Technologies - and position as
one of the world's largest software companies, we are well placed to meet our
goal to be a leader in the technologies for a world where everybody and
everything is connected."

Nokia strategy

"Nokia's strategy is to develop its three businesses in order to realize its
vision of being a technology leader in a connected world and, in turn, create
long-term shareholder value," said Rajeev Suri. "Our goal is to optimize the
company so that each business is best enabled to meet its goals. Where it
makes sense to do so, we will pursue shared opportunities between the
businesses, but not at the expense of focus and discipline in each."

Nokia will target the creation of long-term shareholder value by focusing on
the following three areas:

1 Through itsNetworks business (formerly Nokia Solutions and Networks, or
NSN), Nokia will invest in the innovative products and services needed by
telecoms operators to manage the increase in wireless data traffic which is
more than doubling every year. Future investment will focus on further
building on our strong position in mobile broadband and related services,
and strengthening our leadership position in next-generation network
technologies. Today, the Networks business serves more than 90 of the
world's 100 largest operators, is a leader in the large and dynamic mobile
broadband market, and is ranked third in estimated global market share in
mobile radio and second in telecommunication services. An early leader in
virtualization and cloud technologies, Networks conducted trials and
pre-commercial live projects with more than 50 customers in 2013.
"Customers of our Networks business can have confidence that we will
continue to make the investments necessary to deliver the innovation needed
to help them build even stronger businesses," said Rajeev Suri.
2 Through itsHERE business, Nokia will invest to further develop its location
cloud to make it the leading source of location intelligence and
experiences across many different operating systems, platforms and screens.
Given that location is an essential element of a connected world, we will
target our investment in three areas: 1) technology for smart, connected
cars; 2) cloud-based services for personal mobility and location
intelligence, including for the growing segment of wearables and special
purpose devices; and 3) location-based analytics for better business
decisions. Today, HERE is the leading global provider of map content,
powering four out of five in-car navigation systems. Its location platform
is used by leading internet companies such as Amazon, Microsoft and Yahoo.
"Our view is that only one other company has location services that come
close to the depth and breadth of those from HERE - and HERE has the
advantage of being independent from any operating system or single business
model," said Rajeev Suri.
3 Through itsTechnologies business, Nokia will invest in the further
development of its industry-leading innovation portfolio. This will include
1) expanding our successful intellectual property licensing program; 2)
helping other companies and organizations benefit from our breakthrough
innovations through technology licensing; and 3) exploring new technologies
for use in potential future products and services. The Technologies team
includes hundreds of world-class scientists and engineers who have driven
more than half of Nokia's recent patent filings and many of whom are
recognized as leading experts in fields that are essential for enabling the
future connected world. These areas include low-power connected smart
multi-sensor systems, distributed sensing, and intelligent interplay
between various types of radio technologies. "Nokia's industry leading
intellectual property has the potential to create significant value for our
licensees and our shareholders," said Rajeev Suri. "With the strength of
our Technologies team and continuing investment in advanced research and
development, we can also drive new opportunities for Nokia in both
business-to-business and consumer markets."

Nokia's continuing businesses invested more than EUR 2.5 billion in research
and development in 2013. We believe that the company has a strong financial
position and the capacity to continue to make the investments necessary to
remain an innovation leader in the three segments in which it competes.

Planned EUR 5 billion capital structure optimization program

As a result of the closing of the transaction between Nokia and Microsoft,
Nokia's financial position and earnings profile have both improved
significantly. Furthermore, Nokia's Board of Directors has conducted a
thorough analysis of Nokia's potential capital structure requirements. Based
on this analysis, the Nokia Board is confident that Nokia has the financial
strength and flexibility to sustain the long-term investments necessary to
ensure industry leadership in the future.

To improve the efficiency of Nokia's capital structure, the Nokia Board is
today announcing plans for a EUR 5 billion capital structure optimization
program which focuses on recommencing ordinary dividends, distributing deemed
excess capital to shareholders, and reducing interest bearing debt. This
comprehensive program consists of the following components:

* Recommencement of ordinary dividend payments, with at least EUR 800 million
of ordinary dividends in total planned for 2013 and 2014, as follows: * An
ordinary dividend for 2013 of EUR 0.11 per share (approximately EUR 400
million), subject to shareholder approval in 2014; and * A planned ordinary
dividend for 2014 of at least EUR 0.11 per share (at least approximately
EUR 400 million), subject to shareholder approval in 2015;
* A special dividend of EUR 0.26 per share, subject to shareholder approval
in 2014 (approximately EUR 1 billion);
* A EUR 1.25 billion share repurchase program, subject to the authorization
to the Board by the shareholders in 2014; and
* Debt reduction of approximately EUR 2 billion by the end of the second
quarter 2016.

"We are committed to effective deployment of capital to drive future value
creation," said Timo Ihamuotila, who is currently Nokia's Chief Financial
Officer and who has been appointed to serve as the Group Chief Financial
Officer as of May 1, 2014. "We believe our planned comprehensive EUR 5
billion capital structure optimization program enables Nokia to make quick
and orderly progress towards a more efficient capital structure, and is
aligned with the long-term interests of our customers and shareholders.
Together with our continued focus on solid business execution, these capital
structure enhancements support our longer-term target to return to an
investment grade credit rating, which would further affirm our long-term
competitive strength and support our strategic objectives."

Ordinary Dividends - at least EUR 800 million in total for 2013 and 2014

As part of the overall capital structure optimization program, Nokia Board of
Directors proposes to the Annual General Meeting, scheduled to take place on
June 17, 2014 (Annual General Meeting 2014), the recommencement of ordinary
dividend payments to shareholders. The Nokia Board proposes to the Annual
General Meeting 2014 that a dividend of EUR 0.11 per share be paid with
respect to the year 2013,...

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