© 2018 Nokia1 © 2018 Nokia1

Becoming the operations industry benchmark

European Supply Chain Management Strategies Summit – Berlin, Germany

• Johannes Giloth, SVP Global Operations and Chief Procurement Officer

• 28-11-2018

© 2018 Nokia2

Operations - a key enabler of excellence and growth at Nokia

Public

© 2018 Nokia3 For internal use

© 2018 Nokia4 Public

Disciplined execution for successful integration and transformation

Operational excellence and agility

2018201620142012

AcquiredMotorola Solutions wireless networks

CreatedNokia Technologies

Pulp, Paper, Rubber, Early Bell System products, Mobile phones

Launched Networkstransformation plan

SoldDevices & Services

AcquiredAlcatel-Lucent

SoldHERE

AcquiredGainspeed

AcquiredDeepfield

AcquiredComptel

CreatedNokia Shanghai Bell

Acquired Unium

AcquiredSpaceTimeInsight

Awarded 9th Nobel Prize

© 2018 Nokia5

Future Nokia Digital Value Network – Segmented, Connected, GreenStarts with the Customer Ends with the Customer

Our Vision

A sustainable Value Network adopting

technology to give a differentiated

experience building long term loyalty

to Nokia

Our Ambition

Become #1 supply chain &

procurement operations in the

industry, leveraging digitization

towards Industry 4.0

© 2018 Nokia6

A vital function for customer satisfactionGlobal Operations as the beating heart of Nokia

Public

EMS and Factories are producing thousands of products in a year

6,000

Purchasing volume to our suppliers

+12bn €

Receiving millions of Sales Orders from our customers in a year

~9,000/day

Managing a large supplier base of

+25,000

Shipping to every corner of the world

~120 countries

Moving thousands of tons of equipment in a year

530t/day

Managing factories (own and EMS) in 6 regions and 16 countries

24

Delivering through 8 hubs and hundreds of drop off points

220

© 2018 Nokia6

© 2018 Nokia7

Leading digital operations preparing for the new reality of Industry 4.0

Public

© 2018 Nokia8

… the next wave is all around customer centricityAll Supply Chains going through different maturity levels

Public

The

profitability

battle

Integrated lean

Supply network

Increased

agility

requirements

Demand driven value

network

Digitalized and customized

value network

Customer

centricity

© 2018 Nokia8

© 2018 Nokia9Nokia 2018

Customer Centricity drivers

Conscious

Supply

NetworkValue Adding

Supplier

Ecosystem

Adaptive

Value

Chain

Digital

Customer

Operations

Integrated

Business

Planning

Future Fit

People

© 2018 Nokia10

Digital Customer Operations

• Robotics Process Automation

• Customer Segmentation

• Early involvement in Sell

• Digital market place

• Intelligent configurationThe new digital norm

© 2018 Nokia10 Public

© 2018 Nokia11

Integrated Business Planning

• Orchestrate in Real Time Supply Chain

Network from customer up to 3rd tier

supplier

• Cross functional

• Cost To Serve focused

• Automated and event based decision

making

Integrated and agile

business planning

throughout the entire

product lifecycle

© 2018 Nokia12

Conscious Supply Network

• Conscious Factory (FiaB video)

• Conscious Warehouse

• Conscious Distribution

The digital twin challenge

© 2018 Nokia13

Value Adding Supply Ecosystem

• Open collaboration and sharing

• Transparent relationship

• Procurement digitalization

• Predictive analytics Leverage the ecosystem

challenge and make it to a

strength

© 2018 Nokia14

Adaptive Value Chain

The D.A.R.T Model

• Digitalize

• Analyze

• Robotize

• Transparent

© 2018 Nokia14 Public

Agile and configurable

supply chain segments to

react to volatile markets

and new digital business

models

© 2018 Nokia15

Future Fit People

• From directive to catalyst leadership

• From reactive to self-driven learning &

development

• From hierarchy to network organization

• From transactional execution to

Entrepreneurial mindset to become

Service Oriented Technology is not enough. The

key is people, and our ability to

engage in a mindset shift

© 2018 Nokia16

Driving continuous improvement while investing in

disruptive innovationsFor internal use

A transformation journey towards excellence