Nokia 2014 Annual Report Download - page 77

NOKIA IN 2014 75
Board review
Nokia’s outlook
■Nokia continues to expect Nokia Networks’
net sales to grow on a year-on-year basis
for the full year 2015.
■Nokia continues to expect Nokia Networks’
operating margin for the full year 2015 to
be in-line with Nokia Networks’ long-term
operating margin range of 8% to 11%,
excluding special items and purchase price
accounting related items.
■Nokia’s outlook for Nokia Networks net sales
and operating margin, excluding special
items and purchase price accounting
related items, is based on expectations
regarding a number of factors, including:
– competitive industry dynamics;
– product and regional mix;
– the timing of major network
deployments; and
– expected continued operational
improvement.
■Nokia continues to expect HERE’s net sales
to grow on a year-on-year basis for the full
year 2015.
■Nokia continues to expect HERE’s operating
margin, excluding special items and
purchase price accounting related items,
for the full year 2015 to be between 7%
and 12%, based on HERE’s leading market
position, positive industry trends and
improved focus on cost efficiency.
■Nokia continues to expect Nokia
Technologies’ net sales to grow on a
year-on-year basis for the full year 2015,
excluding potential amounts related to the
expected resolution of our ongoing
arbitration with Samsung, which is expected
to be concluded during 2015.
■Nokia continues to expect Nokia
Technologies’ operating expenses,
excluding special items and purchase price
accounting related items, to increase
meaningfully on a year-on-year basis for
the full year 2015. More specifically, Nokia
expects Nokia Technologies’ quarterly
operating expenses in 2015, excluding
special items and purchase price accounting
related items, to be approximately in-line
with the fourth quarter 2014 level. This is
related to higher investments in licensing
activities, licensable technologies, and
business enablers including go-to-market
capabilities, which target new and
significant long-term growth opportunities.
■Nokia continues to expect Nokia Group
capital expenditures to be approximately
EUR 200 million in 2015, primarily
attributable to capital expenditures by
Nokia Networks.
■Nokia continues to expect Nokia Group
financial income and expenses, including
net interest expenses and the impact from
changes in foreign exchange rates on
certain balance sheet items, to amount
to an expense of approximately EUR 160
million in 2015, subject to changes in
foreign exchange rates and the level of
interest-bearing liabilities.
■Nokia continues to expect Group Common
Functions operating expenses, excluding
special items and purchase price accounting
related items, to be approximately EUR 120
million in 2015.
■Nokia continues to target to record tax
expenses in Nokia Group’s Consolidated
Income Statements at a long-term effective
tax rate of approximately 25%. However,
Nokia targets Nokia Group’s cash tax
obligations to continue at approximately
EUR 250 million annually until Nokia Group’s
deferred tax assets have been fully utilized.
The cash tax amount may vary depending
on profit levels in different jurisdictions and
the amount of license income potentially
subject to withholding tax.