Nokia 2015 Annual Report Download - page 71

69
Board review
NOKIA IN 2015
Nokia’s outlook
Metric Guidance Commentary
Nokia Annual operating
cost synergies
Approximately EUR 900 million of
netoperating cost synergies to be
achieved in full year 2018
Compared to the combined operating costs of Nokia and Alcatel
Lucent for full year 2015, excluding special items and purchase
price accounting related items.
Expected to be derived from a wide range of initiatives related to
operating expenses and cost of sales, including:
■Streamlining of overlapping products and services, particularly
within the Mobile Networks business group;
■Rationalization of regional and sales organizations;
■Rationalization of overhead, particularly within manufacturing,
supply-chain, real estate and information technology;
■Reduction of central function and public company costs; and
■Procurement efficiencies, given the combined company’s
expanded purchasing power.
Annual interest
expense reduction
Approximately EUR 200 million of
reductions in interest expenses to be
achieved on a full year basis in 2016
Compared to the cost of debt run rate for the combined
company of Nokia and Alcatel Lucent atyear end 2014.
Due to the very recent acquisition of Alcatel Lucent, Nokia believes it is not appropriate to provide an annual outlook for the new combined
Networks business at the time of publishing this annual report. Nokia intends to provide its full year outlook in conjunction with its Q1/2016
results announcement.