HMD global Founded to Create New Generation of Nokia-branded Mobile Phones and Tablets

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HELSINKI, Finland, May 18, 2016 /PRNewswire=KYODO JBN/ --

     Nokia-branded mobile phones and tablets are set to return to the global

consumer market, created by a new company, HMD global Oy ("HMD"). HMD has been

founded to provide a focused, independent home for a full range of

Nokia-branded mobile phones and tablets.

    HMD has signed a strategic licensing agreement with Nokia Technologies, the

advanced technology and licensing unit of Nokia Corporation, giving HMD sole

use of the Nokia brand on mobile phones and tablets worldwide for the next

decade, and cellular standard essential patent licenses.

    HMD intends to leverage and grow Nokia's global brand reach, delivering

beautifully designed, high quality products to people all over the world in

line with Nokia's brand promise. HMD intends to invest over USD 500 million

over the next three years to support the global marketing of Nokia-branded

mobile phones and tablets, funded via its investors and profits from the

acquired feature phone business.

    To complete its portfolio of Nokia branding rights, HMD has conditionally

agreed to acquire from Microsoft the rights to use the "Nokia" trademark on

feature phones until 2024, and design rights relating to Microsoft's Feature

Phone Business. This transaction is expected to close in H2 2016. Together,

these agreements will make HMD the sole global licensee for all types of

Nokia-branded mobile phones and tablets.

    The remainder of Microsoft's feature phone business assets, including its

Hanoi manufacturing facility, and global distribution, fulfilment and supply

chain networks, will conditionally be acquired by FIH Mobile Limited ("FIH"), a

subsidiary of Hon Hai Precision Industries (trading as Foxconn Technology

Group). HMD has signed an agreement with FIH and Nokia Technologies to

establish, on closing of the Microsoft transactions, a collaboration framework

to support the building of a global business for Nokia-branded mobile phones

and tablets. This agreement will give HMD full operational control over sales,

marketing and distribution of its Nokia-branded devices, with exclusive access

to the pre-eminent global sales and distribution network to be acquired by FIH

from Microsoft,  as well as access to FIH's world-leading device manufacturing

and engineering capabilities, and its growing suite of proprietary mobile

technologies and components.

    HMD is entering the global handset market at a time when consumers demand

their mobile devices be part of a strong ecosystem that brings a compelling

user experience delivered at a competitive price. HMD plans for its future

Nokia-branded smartphones and tablets to run on the Android operating system,

uniting one of the world's iconic mobile brands with the leading mobile

software and app development community.

    HMD will be managed by an experienced group of mobile industry leaders.

Arto Nummela, who previously held senior positions with Nokia and is currently

the head of Microsoft's Mobile Devices business for Greater Asia, Middle East

and Africa as well as Microsoft's global Feature Phones business, will serve as

CEO on closing of the Microsoft transaction. HMD's President on closing will be

Florian Seiche, currently Senior Vice President for Europe Sales and Marketing

at Microsoft Mobile, who previously held leadership roles at Nokia, HTC and

other global brands.

    Arto Nummela, CEO of HMD global, said:

    "We will be completely focused on creating a unified range of Nokia-branded

mobile phones and tablets, which we know will resonate with consumers. Branding

has become a critical differentiator in mobile phones, which is why our

business model is centered on the unique asset of the Nokia brand, and our

extensive experience in sales and marketing. We will work with world class

manufacturing and distribution providers to move quickly and deliver what

customers want."

    Ramzi Haidamus, president of Nokia Technologies, said:

    "Today marks the beginning of an exciting new chapter for the Nokia brand

in an industry where Nokia remains a truly iconic name. Instead of Nokia

returning to manufacturing mobile phones itself, HMD plans to produce mobile

phones and tablets that can leverage and grow the value of the Nokia brand in

global markets. Working with HMD and FIH will let us participate in one of the

largest consumer electronics markets in the world while staying true to our

licensing business model."

    Vincent Tong, Chairman of FIH, added:

    "We are looking forward to fostering a strong and long-term collaboration

with HMD global and Nokia. We are impressed by the experience and expertise of

the HMD management team and are committed to supporting them with our

manufacturing, technology and supply chain capabilities, to capture market

opportunities together in the future."

    Subject to receipt of all necessary regulatory approvals the transaction

between HMD and Microsoft is anticipated to close in the second half of 2016.

HMD will make further announcements about its plans and product roadmaps in due

course.

    Registered and headquartered in Helsinki, Finland, HMD is owned by Smart

Connect LP, a private equity fund managed by Jean-Francois Baril, a former

Nokia executive, as well as by HMD management. The Board of HMD will consist of

five members, including one representative from Nokia.

    About HMD global

    Registered and headquartered in Helsinki, Finland, HMD is a new private

venture founded to create a new generation of Nokia-branded mobile devices. HMD

will be run by a group of experienced industry leaders, including CEO-designate

Arto Nummela, who previously held senior roles at Nokia and is currently the

head of Microsoft's Mobile Devices business for Greater Asia, Middle East and

Africa as well as Microsoft's global Feature Phones business, and

president-designate Florian Seiche, who is currently Senior Vice President for

Europe Sales and Marketing at Microsoft Mobile, and previously held key roles

at Nokia, HTC and other global brands. http://www.hmdglobal.com

    About FIH Mobile Ltd

    FIH MOBILE LIMITED (HKEx Stock Code: 2038), a member of HON HAI/FOXCONN

Technology Group, is a vertically integrated services provider for the mobile

device industry worldwide. It provides a full range of solutions to its

customers in connection with end-to-end mobile devices business.

Source: HMD global