SAVE THE DATE - Hypoport AG

Nokia
Finland/Telecom Equipment Analyser
Nokia (Buy)
Buy
Recommendation unchanged
Share price: EUR
closing price as of 07/05/2012
Target price: EUR
Target Price unchanged
Reuters/Bloomberg
2.40
4.00
NOK1V.HE/NOK1V FH
Market capitalisation (EURm) 8,919
Current N° of shares (m) 3,710
Free float 100%
Daily avg. no. trad. sh. 12 mth 29,733,059
Daily avg. trad. vol. 12 mth (m) 124
Price high 12 mth (EUR) 6.11
Price low 12 mth (EUR) 2.39
Abs. perf. 1 mth -38.20%
Abs. perf. 3 mth -38.11%
Abs. perf. 12 mth -59.39%
Key financials (EUR) 12/11 12/12e 12/13e
Sales (m) 38,659 32,700 35,708
EBITDA (m) (351) 456 3,147
EBITDA margin nm 1.4% 8.8%
EBIT (m) (1,073) (224) 2,479
EBIT margin nm nm 6.9%
Net Profit (adj.)(m) 971 (253) 1,360
ROCE -43.6% -11.9% -119.8%
Net debt/(cash) (m) (5,455) (3,511) (5,251)
Net Debt/Equity -0.4 -0.3 -0.4
Debt/EBITDA 15.5 -7.7 -1.7
Int. cover(EBITDA/Fin. int) (3.4) 2.7 15.7
EV/Sales 0.2 0.1 0.0
EV/EBITDA nm 6.0 0.3
EV/EBITDA (adj.) 2.3 2.6 0.3
EV/EBIT nm nm 0.4
P/E (adj.) 14.4 nm 6.6
P/BV 1.2 0.8 0.7
OpFCF yield -13.5% -29.8% 16.2%
Dividend yield 8.3% 0.0% 8.3%
EPS (adj.) 0.26 (0.07) 0.37
BVPS 3.20 2.94 3.30
DPS 0.20 0.00 0.20
6.0 vvdsvdvsdy
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12
Source: Factset
NOKIA Stoxx Telecom Equipment (Rebased)
Shareholders: Keskinäinen Eläkevakuutusyhtiö
Ilmarinen 1.29%; Keskinäinen
työeläkevakuutusyhtiö Varma 1.02%;
Valtion Eläkerahasto 0.45%;
Analyst(s):
Hannu Rauhala, Pohjola
hannu.rauhala@pohjola.fi
+358 10 252 4392
Google infringed upon Oracle’s Java copyrights
The facts: Yesterday, a US jury found that Google had breached copyrights held
by Oracle on the Java programming language. The decision, however, did not take
a stand whether this was a fair use case which would allow the use of copyright
material in certain cases without the copyright holder‟s permission.
In another decision, the jury stated that Google had used the Java programming
language‟s software code in its Android OS without permission. The court
considered, however, that Google would only be entitled to statutory damages,
although Oracle has sought compensation on indirect income which Google has
received by breaching the copyrights of Java. The court did not yet decide upon
any damages but it is generally believed that they would remain clearly lower than
Oracle has originally demanded.
Google has announced that it would be asking for a mistrial to be declared, based
on the fair use doctrine. Oracle, for its part, commented that the court‟s decision
supports the company‟s view that Google needs to licence Java for use in its
Android operating system.
Our analysis: The forthcoming ruling will be interesting for Nokia, because it will
determine whether Android will become a software requiring a license and, if so,
how would it impact low-end smartphone prices and Google‟s software strategy.
So far, e.g. Microsoft has sued manufacturers of Android devices for copyright
infringements, but no-one had sued Google directly. For a long time, rumours
have circulated that Nokia would be developing its own Linux-based OS to be
used in the low-end smartphone segment, to replace the current S40 operating
system. In any case, we believe that uncertainty surrounding Android will benefit
competing operating systems.
Conclusion & Action: TP and recommendation unchanged.
Page 33 of 80 European Securities Network
Please refer to important disclaimer on the last page