Post on 14-Apr-2018
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Accelerating GrowthMicrosofts strategic rationale for deal announcedwith Nokia on September 3, 2013
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This presentation contains forward-looking statements, which are any predictions, projectionstatements about future events based on current expectations and assumptions that are subjuncertainties. The potential risks and uncertainties include, among others, that the expected other benefits from the Nokia transaction may not be realized, including because of: our inab
transaction, or Nokias inability to repay the financing should it take down the financing and tdoesnt close; the response to the acquisition by the customers, employees, and strategic anpartners of the Nokias Devices & Services business; the extent to which we achieve anticipatefficiencies and cost savings, and anticipated smart device and mobile phone market share tagrowth rates for the smart device and mobile phone markets; ongoing downward pressure omobile devices; unanticipated restructuring expenses; any restrictions or limitations imposed authorities; the impact of Microsoft management and organizational changes resulting from Nokias Devices & Services business; the ability to retain key Nokia personnel; our effectivenethe Nokia Devices & Services business with Microsofts businesses; the response of existing Mdevices original equipment manufacturers; risks related to the Nokia Devices & Services interoperations; and our ability to realize our broader strategic and operating objectives. Actual rematerially differ because of the factors discussed above, in the comments made during this cand in the risk factors section of our Form 10-K, Form 10-Qs, and other reports and filings wand Exchange Commission. We do not undertake any duty to update any forward-looking st
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2012, Q3 2012, Q4
Nokia Windows Pho
by Calendar
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($0.12)
($0.06)
$0.04
($0.08)
$0.00
$0.08
($0.15)
($0.10)
($0.05)
$0.00
$0.05
$0.10
FY14E FY15E FY16E
GAAP
Non-GAAP*
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NPV
Assumed Operating Margin 5%
Annual Operating Income $2.3 billion $
NPV $15 billion $
Smartphone Revenue Opportunity2018E WorldwideSmartphone Shipments
1.7 billion
Assumed Market Share 15%
Annual Revenue ~$45 billion
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Microsoft benefits under more than
60 patent
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Nokia executives on board assuming key roles
Device/supply chain consolidation
Phone device R&D centered in Finland
Marketing/services consolidation
Nokia sales team intactIntegration executives mobilized
Working rhythms intact
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Net Income Twelve Months Ended
June 30,
(In millions) 2014 2015 2016
Estimated impact of acquisition (GAAP) ($1,005) ($541) $299
Estimated for acquisition-related amortization and
integration expenses $309 $548 $410
Estimated impact of acquisition (non-GAAP) ($696) $7 $709
Earnings per share Twelve Months EndedJune 30,
2014 2015 2016
Estimated impact of acquisition (GAAP) ($0.12) ($0.06) $0.04
Estimated for acquisition-related amortization and
integration expenses $0.04 $0.06 $0.04
Estimated impact of acquisition (non-GAAP) ($0.08) $0.00 $0.08
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