Nokia 2011 Annual Report Download - page 25

Our strategy for our Location & Commerce business may not succeed if we are unable to
maintain current sources of revenue, provide support for our Devices & Services business and
create new sources of revenue from our location-based services and commerce assets.
In June 2011, we announced plans to create a new Location & Commerce business which combines
NAVTEQ and our Devices & Services social location services operations. The Location & Commerce
business has been an operating and reportable segment from October 1, 2011. In addition to offering a
broad portfolio of products and services for the wider Internet ecosystem, the Location & Commerce
business is creating integrated social location offerings in support of our strategic goals in
smartphones, including Nokia products with Windows Phone, as well as our efforts to connect the next
billion people to the Internet and information.
Our strategy for our Location & Commerce business is subject to certain risks and uncertainties, which
could, either individually or together, significantly impair our ability to compete effectively in the
targeted markets and succeed in maintaining our current sources of revenue and support for our
Devices & Services business or in creating new sources of revenue. Those risks and uncertainties
include the following:
• The existing NAVTEQ customers may choose not to purchase, or purchase less, content or
services from our Location & Commerce business.
• We may not be able to use our location-based assets to compete on a standalone basis or
support the overall Nokia strategy.
• We may not be able to successfully integrate the operations or data from Nokia and NAVTEQ,
for instance the consumer data and data we have collected on places and communities, and
thus are unable to provide the targeted opportunities we plan to provide through the
integration of such data.
• We may lose key personnel formerly working for NAVTEQ and Devices & Services social
location services operations.
• We may not succeed in attracting strategic partners and developers to develop and support
our ecosystem around our Location & Commerce offering, or provide services that are
supported by relevant ecosystems.
• We may fail to attract business partners and merchants to our service offerings to them.
• The service offering we currently provide may not be competitive or another participant may
provide a more competitive new offering in the future.
• The advertising and local commerce business opportunities we target may not grow as
expected or have the possibilities for profitable business in line with our expectations.
• The Location & Commerce business may not succeed in creating integrated social location
offerings in support of our strategic goals in smartphones, including Nokia products with
Windows Phone, or support our efforts to connect the next billion people to the Internet and
information, which would negatively affect our ability to offer compelling and differentiated
mobile products.
• The Microsoft partnership business model to integrate our location-based assets, including
Location & Commerce, with Microsoft’s Bing search engine and adCenter advertising platform
to form a local search and advertising capability that generates new sources of revenue for us
may not materialize as expected, or at all.
• If our Location & Commerce business does not generate revenue as before or new sources of
revenue for us do not materialize as expected, or at all, that business may not generate
positive operating cash flow, and this or other factors may lead to the decrease in value of our
location-based services and commerce assets and may result in further impairment charges.
23