Nokia Capital Markets Day 2008

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Nokia lowers the mobile device industry outlook for Q4 2008 and gives
outlook for 2009

Nokia Corporation
Stock exchange release
December 4, 2008 at 13.00 (CET +1)

New York, NY, USA - Today, at its annual Capital Markets Day event,
Nokia lowered its forecast for mobile device industry volumes for the
fourth quarter 2008. Nokia also presented forecasts for the company
and the industry for 2009. At the event, senior company executives
outlined how Nokia's strategy, robust financial structure and
competitive product portfolio are expected to ensure the company
remains in a position of strength in the more challenging economic
times ahead.

Nokia President and CEO, Olli-Pekka Kallasvuo, highlighted the
benefits of Nokia's brand, scale and number one market position,
stating: "2009 will be challenging for our industry, however we have
a strong, enviable base to build on and I believe we will continue to
strengthen our position on many fronts. Building on our operational
flexibility, Nokia is acting to reduce costs appropriately in the
current slowing environment. At the same time, we remain fully
committed to making the investments to build the future of our
exciting industry and Nokia's continued competitiveness."

Nokia CFO, Rick Simonson, emphasized that appropriate cost reductions
are being effected now and are continuing in plans for 2009 and 2010:
"Nokia's highly variable, low fixed cost business model allows us to
scale to a declining market. We are also acting on all fronts to
reduce our costs beyond what may be attributable solely to the
scalable aspects of the business model - moving to reduce cost of
goods sold even further, reduce operational expenditure
appropriately, and scale back capital expenditure. We expect these
strong actions to offset, in part, the negative impact of slowing
sales."

Outlook for Nokia and the mobile device industry - fourth quarter
2008
The mobile device market slowdown has continued more rapidly than
previously expected since Nokia issued an update on November 14,
2008. The industry continues to be impacted by the effects of a
global consumer pull-back in spending, currency volatility, and
decreased availability of credit. Nokia believes the slowdown is
apparent in varying degrees across all markets, while the most recent
incremental impact in the emerging markets has been more pronounced
than in other markets. As a result, and while noting the lack of
visibility due to the factors cited above, Nokia is revising its
fourth quarter 2008 outlook as follows:
- Nokia now estimates that fourth quarter 2008 industry mobile device
volumes will be lower than the previous estimate of approximately 330
million units, which would result in full year 2008 industry mobile
device volumes below the earlier estimate of 1.24 billion units.
- Nokia believes there is insufficient visibility in the marketplace
to confirm its prior estimate for its fourth quarter 2008 mobile
device market share, which was expected to be at the same level or
slightly up from an estimated 38% in the third quarter 2008.

Outlook for Nokia Siemens Networks and the mobile infrastructure,
fixed infrastructure and related services market - 2008
- Nokia and Nokia Siemens Networks continue to expect the mobile
infrastructure, fixed infrastructure and related services market to
be flat in euro terms in 2008, compared to 2007.
- Nokia and Nokia Siemens Networks continued cost synergy target for
Nokia Siemens Networks is to achieve substantially all of the EUR 2.0
billion of targeted annual cost synergies by the end of 2008.

Targets and forecasts for Nokia and the mobile device industry - 2009
and going forward
- Nokia expects that the mobile device market will continue to be
negatively impacted by the effects of a slowdown in consumer
spending. Nokia also expects that operator and retail distribution
channels will go through a period of destocking, resulting in lower
sales volumes by manufacturers (sell-in) than purchase volumes by
consumers (sell-through) for the industry in the first half of 2009.
- While noting the extremely limited visibility, Nokia expects 2009
industry mobile device volumes to decline 5% or more from 2008
levels.
- Nokia expects the four billion mobile subscriptions mark to be
reached in the first quarter 2009.
- Nokia targets an increase in its market share in mobile devices in
2009 compared to 2008, including increased share in smartphones.
- As previously announced, Nokia has adjusted its Internet services
market focus to the areas of music, maps, media, messaging and
gaming. Nokia estimates these targeted portions of the Internet
services market will be approximately EUR 40 billion in 2011. In
December 2007, Nokia estimated that the total Internet services
market would be approximately EUR 100 billion in 2010.
- Nokia targets Services & Software net sales of EUR 2 billion or
more in 2011.
- Nokia targets its Services & Software business to have 300 million
unique services users by 2012.

Targets and forecasts for Nokia Siemens Networks and the mobile
infrastructure, fixed infrastructure and related services market -
2009
- Nokia and Nokia Siemens Networks preliminary estimate is that the
mobile infrastructure, fixed infrastructure and related services
market will decline 5% or more in euro terms in 2009, from 2008
levels.
- Nokia and Nokia Siemens Networks target for Nokia Siemens Networks
market share to remain constant in 2009, compared to 2008.

Nokia financial targets (non-IFRS*) - 2009
Given the unprecedented environment, Nokia will not, at this time, be
giving operating margin targets for beyond 2009.
- Nokia Devices & Services operating margin target to be in the teens
in 2009.
- NAVTEQ operating margin targeted to be somewhat above the Devices &
Services operating margin in 2009.
- Nokia Siemens Networks operating margin target to be in the single
digits in 2009.

Nokia priorities for 2009
In addition to updating its financial targets, Nokia also outlined
key priorities for 2009. These are:
- To ensure that Nokia's cost base is appropriately sized for a more
challenging environment;
- To grow mobile device market share, to capture growth opportunities
in NAVTEQ and device enhancements, and to capture value from adjacent
markets;
- To build on the momentum in Services & Software by continuing to
grow and focus its services portfolio;
- To mobilize consumer email and consumer instant messaging for
millions of Nokia device users, and;
- To further integrate and simplify Nokia's web services user
interface and device user interface.


* Non-IFRS results exclude special items for all periods. In
addition, non-IFRS results exclude intangible asset amortization,
other purchase price accounting related items and inventory value
adjustments arising from the formation of Nokia Siemens Networks and
from all business acquisitions completed after June 30, 2008. For the
preceding periods, non-IFRS results exclude such items and
adjustments arising from the formation of Nokia Siemens Networks
only. Nokia believes that these non-IFRS financial measures provide
meaningful supplemental information to both management and investors
regarding Nokia's performance by excluding the above-described items
that may not be indicative of Nokia's business operating results.
These non-IFRS financial measures should not be viewed in isolation
or as substitutes to the equivalent IFRS measure(s), but should be
used in conjunction with the most directly comparable IFRS measure(s)
in the reported results.

The main presentations at Nokia Capital Markets Day will be webcast
live at: 

http://investors.nokia.com
The breakout presentations at Nokia Capital Markets Day will be
webcast (archived) at: 

http://investors.nokia.com

FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A)
the timing of product, services and solution deliveries; B) our
ability to develop, implement and commercialize new products,
services, solutions and technologies; C) expectations regarding
market growth, developments and structural changes; D) expectations
regarding our mobile device volume growth, market share, prices and
margins; E) expectations and targets for our results of operations;
F) the outcome of pending and threatened litigation; G) expectations
regarding the successful completion of contemplated acquisitions on a
timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and H) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are
forward-looking statements. 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 that could cause these differences
include, but are not limited to: 1) the deteriorating global economic
conditions and related financial crisis and their impacts on us, our
customers, suppliers, and collaborative partners; 2) competitiveness
of our product, service and solutions portfolio; 3) the extent of the
growth of the mobile communications industry; 4) the growth and
profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products,
services and solutions in those segments; 5) our ability to
successfully manage costs; 6) the intensity of competition in the
mobile communications industry and our ability to maintain or improve
our market position or respond successfully to changes in the
competitive landscape; 7) the impact of changes in technology and our
ability to develop or otherwise acquire complex technologies as
required by the market, with full rights needed to use; 8) timely and
successful commercialization of complex technologies as new advanced
products, services and solutions; 9) our ability to protect the
complex technologies, which we or others develop or that we license,
from claims that we have infringed third parties' intellectual
property rights, as well as our unrestricted use on commercially
acceptable terms of certain technologies in our products, services
and solution offerings; 10) our ability to protect numerous Nokia and
Nokia Siemens Networks patented, standardized or proprietary
technologies from third-party infringement or actions to invalidate
the intellectual property rights of these technologies; 11) Nokia
Siemens Networks' ability to achieve the expected benefits and
synergies from its formation to the extent and within the time period
anticipated and to successfully integrate its operations, personnel
and supporting activities; 12) whether, as a result of investigations
into alleged violations of law by some current or former employees of
Siemens AG ("Siemens"), government authorities or others take further
actions against Siemens and/or its employees that may involve and
affect the carrier-related assets and employees transferred by
Siemens to Nokia Siemens Networks, or there may be undetected
additional violations that may have occurred prior to the transfer,
or ongoing violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 13) any impairment of Nokia Siemens Networks
customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; 14) occurrence of any actual
or even alleged defects or other quality issues in our products,
services and solutions; 15) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality,
safety, security and timely delivery of our products, services and
solutions; 16) inventory management risks resulting from shifts in
market demand; 17) our ability to source sufficient amounts of fully
functional components and sub-assemblies without interruption and at
acceptable prices; 18) any disruption to information technology
systems and networks that our operations rely on; 19) developments
under large, multi-year contracts or in relation to major customers;
20) economic or political turmoil in emerging market countries where
we do business; 21) our success in collaboration arrangements
relating to development of technologies or new products, services and
solutions; 22) the success, financial condition and performance of
our collaboration partners, suppliers and customers; 23) exchange
rate fluctuations, including, in particular, fluctuations between the
euro, which is our reporting currency, and the US dollar, the Chinese
yuan, the UK pound sterling and the Japanese yen, as well as certain
other currencies; 24) the management of our customer financing
exposure; 25) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices
and lawsuits related to them, regardless of merit; 26) unfavorable
outcome of litigations; 27) our ability to recruit, retain and
develop appropriately skilled employees; 28) the impact of changes in
government policies, laws or regulations; and 29) our ability to
effectively and smoothly implement our new organizational structure;
as well as the risk factors specified on pages 10-25 of Nokia's
annual report on Form 20-F for the year ended December 31, 2007 under
"Item 3.D Risk Factors." 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 update publicly or revise forward-looking statements, whether as a
result of new information, future events or otherwise, except to the
extent legally required.

Media and Investor Contacts:
Corporate Communications, tel. [phone], email:
[e-mail]
Investor Relations Europe, tel. [phone]
Investor Relations US, tel. [phone]

www.nokia.com


 
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NOKIA
P.O. Box 226<br>FIN-00045 NOKIA GROUP   Espoo 

WKN: 870737; 
ISIN: FI0009000681; Index: DJ STOXX Large 200, DJ STOXX 50;
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