諾基亞 (NOK) 2019 Q1 法說會逐字稿

Hello, and welcome to the Nokia First Quarter 2019 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

您好，歡迎參加諾基亞 2019 年第一季度收益電話會議。（操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Mr. Matt Shimao, Head of Investor Relations. Please sir, you may begin.

現在我想將會議交給投資者關係主管Matt Shimao 先生。先生，請您開始吧。

Ladies and gentlemen, welcome to Nokia's First Quarter 2019 Conference Call. I'm Matt Shimao, Head of Nokia Investor Relations. Rajeev Suri, President and CEO of Nokia; and Kristian Pullola, CFO of Nokia, are here in Espoo with me today.

女士們、先生們，歡迎參加諾基亞 2019 年第一季度電話會議。我是諾基亞投資者關係主管馬特·世茂。Rajeev Suri，諾基亞總裁兼首席執行官；諾基亞首席財務官克里斯蒂安·普拉拉 (Kristian Pullola) 今天和我一起來到埃斯波。

During this call, we'll be making forward-looking statements regarding the future business and financial performance of Nokia and its industry. These statements are predictions that involve risks and uncertainties. Actual results may, therefore, differ materially from the results we currently expect. Factors that could cause such differences can be both external such as general, economic and industry conditions as well as internal operating factors. We have identified such risks in more detail on pages 60 through 75 of our 2018 annual report on Form 20-F, our financial report for Q1 issued today as well as our other filings with the U.S. Securities and Exchange Commission.

在本次電話會議中，我們將就諾基亞及其行業的未來業務和財務業績做出前瞻性陳述。這些陳述是涉及風險和不確定性的預測。因此，實際結果可能與我們當前預期的結果存在重大差異。可能導致這種差異的因素既可以是外部因素，如總體經濟和行業狀況，也可以是內部經營因素。我們在 2018 年 20-F 年度報告第 60 至 75 頁、今天發布的第一季度財務報告以及向美國證券交易委員會提交的其他文件中更詳細地識別了此類風險。

Please note that our results release, the complete interim report with tables and the presentation on our website include non-IFRS results information in addition to the reported results information. Our complete financial report with tables, available on our website, includes a detailed explanation of the content of the non-IFRS information and a reconciliation between the non-IFRS and the reported information.

請注意，我們的業績發布、帶有表格的完整中期報告以及我們網站上的演示文稿除報告的業績信息外還包括非 IFRS 業績信息。我們的完整財務報告和表格可在我們的網站上找到，其中包括對非國際財務報告準則信息內容的詳細解釋以及非國際財務報告準則與報告信息之間的調節。

With that, Rajeev, over to you.

好了，拉吉夫，交給你了。

Thanks, Matt, and thanks to all of you for joining today.

謝謝馬特，也感謝大家今天的加入。

Q1 was a weak quarter for Nokia as we expected. When we spoke last time, we pointed to a soft first half and a particularly weak first quarter, followed by a robust second half. We continue to stand by that view. In terms of the quarter, we understand the underlying drivers of our performance and believe that they will largely mitigate over the course of the year. As a result, we are holding our full year 2019 guidance.

正如我們預期的那樣，諾基亞第一季度表現疲軟。當我們上次談話時，我們指出了上半年的疲軟和特別疲軟的第一季度，隨後是強勁的下半年。我們繼續堅持這一觀點。就本季度而言，我們了解業績的根本驅動因素，並相信這些因素將在一年內很大程度上緩解。因此，我們維持 2019 年全年指引不變。

I recognize that given the first quarter outcome, many of you may be skeptical that we can deliver on those commitments. Or that, if we do, it will be at the cost of our 2020 performance. I do not see things that way and would like to focus my remarks today on how we expect things to develop and the risks that we see. As I do that, I want to make 3 key points. First, many of our businesses are performing very well and have momentum moving forward. Second, we have a clear understanding of what did not go well in Q1 and have confidence that things will improve as the year progresses. Third, while we do see certain risks increasing, there are opportunities as well.

我認識到，鑑於第一季度的結果，你們中的許多人可能對我們能否兌現這些承諾表示懷疑。或者說，如果我們這樣做，將以犧牲我們 2020 年的業績為代價。我不這麼看，今天我想重點討論我們對事態發展的預期以及我們看到的風險。在這樣做時，我想提出 3 個要點。首先，我們很多業務表現都很好，有前進的動力。其次，我們對第一季度的不順利之處有清晰的認識，並有信心隨著今年的進展情況會有所改善。第三，雖然我們確實看到某些風險在增加，但也存在機遇。

Let me dive into more detail on each, starting with the easy part. Many of our businesses are performing well and are positioned well for the future. Consider the following: IP routing is in superb condition, with clear product leadership and is benefiting from the virtuous circle of investment that I've talked about before as customers prepare their network for 5G. IP routing grew by 12% in constant currency in the first quarter, far outpacing the market. That is the second-consecutive quarter of growth for the business, and we have good momentum moving ahead.

讓我從簡單的部分開始詳細介紹每個部分。我們的許多業務都表現良好，並且為未來做好了準備。請考慮以下因素：IP 路由狀況良好，具有明顯的產品領先地位，並且受益於我之前在客戶為 5G 準備網絡時談到的投資良性循環。按固定匯率計算，第一季度 IP 路由增長了 12%，遠遠超過市場增速。這是該業務連續第二個季度增長，我們有良好的前進勢頭。

Optical Networks continued to grow as well, up 7% in constant currency. While profitability remains diluted, it is improving and tracking to our plan. Products based on our Photonic Service Engine 3 chipset, PSE-3, are already in trial with 2 service providers in Europe and are looking very good. With this, we will once again leapfrog the competition and be able to deliver massive capacity and efficiency improvement.

光網絡也繼續增長，按固定匯率計算增長了 7%。雖然盈利能力仍然被稀釋，但它正在改善並符合我們的計劃。基於我們的光子服務引擎 3 芯片組 PSE-3 的產品已在歐洲的 2 家服務提供商處進行試用，並且看起來非常好。藉此，我們將再次超越競爭對手，並能夠實現大規模的產能和效率提升。

Then our licensing business, which continues to track well against its strategic roadmap. When you include a new licensee that we expect to sign a final agreement within the coming weeks, we will reach an annual recurring revenue run rate of approximately EUR 1.4 billion. We are also making progress in automotive licensing, including the addition of Audi and Porsche to earlier licensees, BMW, Mini and Rolls-Royce.

然後是我們的授權業務，該業務繼續按照其戰略路線圖良好發展。當您納入我們預計將在未來幾週內簽署最終協議的新被許可方時，我們將達到約 14 億歐元的年度經常性收入運行率。我們在汽車許可方面也取得了進展，包括將奧迪和保時捷添加到早期的授權商寶馬、Mini 和勞斯萊斯中。

As part of our investment into our end-to-end portfolio, we are delivering the innovation and standard essential patents to maintain this business well into the future. To do that, we need to continue to innovate, and that is exactly what we are doing. I know some of you have expressed concern that the number of patents coming from Nokia is lower than some others in our sector. But I want to be very clear about this. We are not interested in playing the volume game. We are focused on quality, on the patents that really matter and have the highest potential for future monetization. By the end of Q1 2019, for example, we had declared more than 1,500 patent families essential for 5G, with more to follow. We are investing to make this happen and delivering patent filings ahead of our internal plan. This is largely through the ongoing work of Nokia Bell Labs and its unique and powerful capacity for innovation. They have been at the heart of cellular standards development for many years, and we intend to keep them there for the future. We see licensing as a core engine for value creation, not just for a few years, not just for the next 10 years, but for decades to come.

作為我們端到端產品組合投資的一部分，我們正在提供創新和標準必要專利，以維持這項業務的未來。為此，我們需要繼續創新，而這正是我們正在做的事情。我知道你們中的一些人對諾基亞的專利數量低於我們行業中的其他一些專利數量表示擔憂。但我想非常清楚地說明這一點。我們對玩成交量遊戲不感興趣。我們專注於質量、真正重要且具有未來貨幣化最大潛力的專利。例如，到 2019 年第一季度末，我們已宣布超過 1,500 個 5G 必需的專利族，後續還會有更多專利族。我們正在投資以實現這一目標，並在我們的內部計劃之前提交專利申請。這很大程度上得益於諾基亞貝爾實驗室的持續工作及其獨特而強大的創新能力。多年來，它們一直是蜂窩標准開發的核心，我們打算在未來繼續將它們留在那裡。我們將許可視為價值創造的核心引擎，不僅是幾年，不僅僅是未來十年，而是未來幾十年。

Our new Nokia Enterprise business is also performing well, with net sales to the enterprise customer segment up by 5% in constant currency when you adjust for the third-party integration business that we're exiting. Orders grew more than 20%, and we added another 33 new customers in the quarter. We expect some variability in the quarterly financial performance of Enterprise going forward as is normal for an emerging business that has some large projects. Q2 is likely to be soft, given some technology transitions and project timing, but my expectation remains that on an annualized basis, we will be able to grow net sales in the double-digits.

我們新的諾基亞企業業務也表現良好，當對我們正在退出的第三方集成業務進行調整時，按固定匯率計算，企業客戶群的淨銷售額增長了 5%。本季度訂單增長超過 20%，並且新增 33 個新客戶。我們預計 Enterprise 未來的季度財務業績會出現一些變化，這對於擁有一些大型項目的新興企業來說是正常的。考慮到一些技術轉型和項目時間安排，第二季度可能會比較疲軟，但我的預期仍然是，按年化計算，我們將能夠實現兩位數的淨銷售額增長。

Interest in 5G private wireless networks is particularly robust in utilities, transportation and the public sector. We also see significant opportunities in industrial automation solutions in the manufacturing and logistics segments.

公用事業、交通和公共部門對 5G 專用無線網絡的興趣尤其濃厚。我們還看到製造和物流領域工業自動化解決方案的巨大機遇。

Finally, Nokia Software, which like Nokia Enterprise, is a key element of our strategy. While a very strong Q4 2018 resulted in net sales that declined 4% in constant currency in the first quarter and a small operating loss, momentum is building as the year progresses. Orders are strong, and overall execution is good.

最後，諾基亞軟件與諾基亞企業一樣，是我們戰略的關鍵要素。雖然 2018 年第四季度的強勁表現導致第一季度淨銷售額按固定匯率計算下降了 4%，並且出現了小幅運營虧損，但隨著這一年的進展，勢頭正在增強。訂單強勁，整體執行情況良好。

Within Nokia Software, we now have 2 areas, applications and core, that are at different stages of development with different performance. On the application side, we expect solid growth and profitability. As I have discussed in previous calls, we have built a strong foundation for this business, including refreshing 70% of the sales organization and rearchitecting our software on a common modern platform. As just one example of our progress, we added our 100 CloudBand customer in Q1, and we have integrated that product with 45 network functions from third-parties to increase its capabilities.

在諾基亞軟件內部，我們現在有兩個領域：應用程序和核心，它們處於不同的發展階段，具有不同的性能。在應用方面，我們預計會有穩健的增長和盈利能力。正如我在之前的電話會議中所討論的，我們已經為這項業務奠定了堅實的基礎，包括更新 70% 的銷售組織，並在通用現代平台上重新架構我們的軟件。作為我們進展的一個例子，我們在第一季度增加了 100 個 CloudBand 客戶，並且我們將該產品與第三方的 45 個網絡功能集成以增強其功能。

In terms of core, a transformation is underway in both sales and product development. We are moving our core software to a common modern platform, which will make it completely cloud native by the end of 2020. Additionally, we are strengthening our sales capability and improving commercial discipline in a similar way to what we did with applications. The lessons learned from the transformation of our applications business give us confidence that we can transform the core business in an accelerated manner and that it can still deliver better-than-average profitability for the company.

從核心來看，銷售和產品研發都在發生轉型。我們正在將我們的核心軟件轉移到一個通用的現代平台，這將使其在 2020 年底前完全雲原生。此外，我們正在加強我們的銷售能力並改善商業紀律，就像我們在應用程序方面所做的那樣。應用業務轉型的經驗教訓讓我們有信心能夠加快核心業務的轉型，並且仍然能夠為公司帶來高於平均水平的盈利能力。

So in short, many parts of our business are tracking well and many delivered a good Q1 performance. So then to address my second point, why the poor quarter and why do we expect both top line and profitability to improve significantly as the year progresses? The answer is largely related to 5G. Our revenue recognition policies and contractual terms require reasonable commercial availability and customer acceptance of our own system software before we can recognize revenue related to a new generation of mobile technology. Neither of this was fully in place by the end of Q1, but that situation is changing fast. We expect to see some improvement in Q2 and much more in the second half.

簡而言之，我們業務的許多部分都進展順利，許多部分在第一季度取得了良好的業績。那麼，接下來要解決我的第二點，為什麼這個季度表現不佳，為什麼我們預計隨著今年的進展，營收和盈利能力都會顯著改善？答案很大程度上與5G有關。我們的收入確認政策和合同條款要求合理的商業可用性和客戶接受我們自己的系統軟件，然後我們才能確認與新一代移動技術相關的收入。到第一季度末，這兩項都還沒有完全到位，但這種情況正在迅速改變。我們預計第二季度會出現一些改善，下半年會出現更多改善。

To put this in perspective, this situation means that we missed approximately EUR 200 million in 5G revenue recognition in North America alone in Q1, and we should see that come back in full before the end of the year. Korea, although a much smaller market than North America, had similar challenges. The recent 5G launches in the country used the September 2018 3GPP baseline that leading chipset makers do not consider commercial, given later changes in the standardization body that are not backward compatible. In addition, unlike last year, we had no new 4G software releases in the first quarter as we needed to ensure compatibility with our 5G product. This impacted our overall software content and, thus, our gross margin. But we do expect 4G releases to come in each of the 3 remaining quarters of the year.

從長遠來看，這種情況意味著我們在第一季度僅在北美地區就錯過了約 2 億歐元的 5G 收入確認，我們應該會在年底前看到這一情況全部恢復。韓國雖然是一個比北美小得多的市場，但也面臨著類似的挑戰。該國最近推出的 5G 使用了 2018 年 9 月的 3GPP 基準，考慮到標準化機構後來的變化不向後兼容，領先的芯片組製造商不考慮將其商業化。此外，與去年不同的是，我們在第一季度沒有發布新的 4G 軟件，因為我們需要確保與 5G 產品的兼容性。這影響了我們的整體軟件內容，從而影響了我們的毛利率。但我們確實預計 4G 版本將在今年剩餘 3 個季度中的每個季度發布。

I would also like to openly address the question of Nokia mobile radio road maps as there is some noise about where we stand today. We do have some short-term issues, weeks and, at most, a few months in some select cases. But these need to be understood in the context of a technology cycle that will last well over the next decade and that is still in the process of maturing. In Q1, higher radio product costs also had an impact on gross margin, and that is not unusual early in a new generation of technology. We are very focused on this issue and have a clear plan for improvement.

我還想公開討論諾基亞移動無線電路線圖的問題，因為關於我們今天的立場存在一些噪音。我們確實遇到了一些短期問題，在某些特定情況下，可能會持續數週，最多可能持續幾個月。但這些需要在技術週期的背景下理解，該技術週期將在未來十年持續很長一段時間，並且仍處於成熟的過程中。第一季度，無線電產品成本上升也對毛利率產生了影響，這在新一代技術的早期並不罕見。我們非常關注這個問題，並有明確的改進計劃。

As a proof point that the ecosystem is still maturing, we have found software defects and instability in the consumer device chipsets in the process of testing our 5G base station software. It seems reasonable to believe that if we were significantly behind our competition as some have suggested, such defects and stability issues would have already been found and then fixed by the chipset makers. I do not find these gaps particularly surprising, given the speed at which things have been and are continuing to move, but it also suggests that full ecosystem stability and predictability are yet to come.

作為生態系統仍在成熟的證據，我們在測試 5G 基站軟件的過程中發現了消費設備芯片組中的軟件缺陷和不穩定因素。似乎有理由相信，如果我們像一些人所說的那樣明顯落後於我們的競爭對手，那麼芯片組製造商應該已經發現並修復了此類缺陷和穩定性問題。考慮到事情過去和現在的發展速度，我並不覺得這些差距特別令人驚訝，但這也表明生態系統的完全穩定性和可預測性尚未到來。

I would also note that while Nokia is not always first with time-to-market for individual features, our products have a consistent record of outperforming our competition in the field. For proof of this, look no further than our AirScale 4G base station. I have been told by some of the biggest players in North America that this product is performing far better than what they see from others.

我還要指出的是，雖然諾基亞並不總是在個別功能的上市時間方面處於領先地位，但我們的產品在該領域的競爭中一直表現出色。要證明這一點，我們的 AirScale 4G 基站就是最佳選擇。北美一些最大的參與者告訴我，該產品的性能遠遠好於他們從其他產品看到的效果。

Let me take this opportunity to address some of the other product-related topics that are relevant as 5G moves forward. The first is software upgradability of existing mobile base stations to 5G. I have talked about this before and software-only upgrades are meaningless unless your hardware has the right capacity. After all, you could, in theory, upgrade an old laptop to the very latest version of Windows but the end result would be lousy performance. Doing something similar when it comes to base stations does not make any sense to us, and we do not think it makes sense for our customers either.

讓我藉此機會談談與 5G 發展相關的其他一些產品相關主題。首先是現有移動基站到 5G 的軟件升級能力。我之前已經談到過這一點，除非您的硬件具有合適的容量，否則僅軟件升級是沒有意義的。畢竟，從理論上講，您可以將舊筆記本電腦升級到最新版本的 Windows，但最終結果將是性能不佳。在基站方面做類似的事情對我們來說沒有任何意義，我們也不認為這對我們的客戶有意義。

Second, dynamic spectrum sharing or DSS. Most operators do not see this as a necessary solution in the short to medium term, given the spectrum that will be utilized in most 5G launches. It also requires unique device functionality that is not yet available and will likely come only at the end of this year. DSS becomes most relevant when operators want to share their old 2G, 3G or 4G spectrum with 5G, especially in lower bands. We are well suited to enabling this, given that in the past 2 years, we have shipped in the range of 3.8 million 5G-upgradeable RF units. At the same time, for those customers with a near-term need for DSS, we will have the right features at the right time.

其次，動態頻譜共享或DSS。考慮到大多數 5G 發布將使用的頻譜，大多數運營商並不認為這是中短期內必要的解決方案。它還需要獨特的設備功能，但目前尚不可用，可能要到今年年底才能實現。當運營商希望與 5G 共享其舊的 2G、3G 或 4G 頻譜時，尤其是在較低頻段，DSS 變得最為重要。鑑於在過去 2 年裡，我們已經發貨了 380 萬個可升級 5G 的 RF 單元，我們非常適合實現這一目標。同時，對於那些近期需要 DSS 的客戶，我們將在正確的時間提供正確的功能。

Third, you are probably also hearing about common baseband boards for 2G, 3G, 4G and 5G. Nokia was the first supplier to introduce such commonality when we introduced our Flexi release too many years ago. Through that, we learned that what sounds good in theory can be quite imperfect in practice. Common baseband boards mean compromises due to the unique processing requirements of different radio technologies and typically cannot compete with next-generation products that are optimized for the following cycle of mobile technology. Basically, it means a board that has compromises from the start and is obsolete by the time it is supposed to be most useful. That is why we believe our approach, which also offers more flexibility in multiple radio bands than what we see from others, is better for our customers, better for protecting their investment and better for end-user experience.

第三，您可能還聽說過 2G、3G、4G 和 5G 的通用基帶板。當我們多年前推出 Flexi 版本時，諾基亞是第一個引入這種通用性的供應商。通過這件事，我們了解到，理論上聽起來不錯的東西在實踐中可能非常不完美。由於不同無線電技術的獨特處理要求，通用基帶板意味著妥協，並且通常無法與針對下一個移動技術週期優化的下一代產品競爭。基本上，這意味著一個董事會從一開始就做出了妥協，到了最有用的時候就已經過時了。這就是為什麼我們相信我們的方法比我們從其他人那裡看到的方法在多個無線電頻段上提供了更大的靈活性，對我們的客戶來說更好，更好地保護他們的投資，並且更好地提供最終用戶體驗。

On these topics and others, it appears that our thoughtful approach, focused on ensuring the best long-term value for our customers, is making a difference. In past calls, I have mentioned our customer satisfaction measure called Customer Perceived Value or CPVi. It is based on a large number of rolling annual interviews with multiple respondents across 100 different accounts and is designed to give a forward-looking view on the propensity of customers to buy from Nokia. Our most recent results show that we are closing the gap with the market leader and significantly distancing ourselves from the declining #3 in the market. We see particular strength coming from favorable perceptions of our end-to-end portfolio, account interaction and customer intimacy, and innovation in big data and analytics.

在這些主題和其他主題上，我們專注於確保為客戶提供最佳長期價值的深思熟慮的方法似乎正在發揮作用。在過去的電話中，我提到了我們的客戶滿意度衡量標準，稱為客戶感知價值或 CPVi。該報告基於對 100 個不同賬戶的多名受訪者進行的大量滾動年度訪談，旨在對客戶從諾基亞購買產品的傾向提供前瞻性觀點。我們最新的結果表明，我們正在縮小與市場領導者的差距，並與市場中排名第三的公司顯著拉開距離。我們看到了特別的優勢來自於對我們的端到端產品組合、賬戶互動和客戶親密度以及大數據和分析創新的良好認知。

This record of performance and strong customer support is one of the key reasons that we continue to win in the market. We now have 36 5G commercial contracts, including 18 with named customers. More than half of those 36 deals include portfolio elements that others do not have.

這一業績記錄和強大的客戶支持是我們繼續贏得市場的關鍵原因之一。我們目前擁有 36 個 5G 商業合同，其中 18 個為指定客戶。這 36 筆交易中有一半以上包含其他交易所沒有的投資組合元素。

Coming back to our Q1 financial performance, we also saw some execution issues in our services business. Typically, in this business, vendors like Nokia have a handful of challenging services projects. Nothing unusual there. And we have a couple such projects that we have referenced before that are getting intense focus. And recovery is underway, even if not as fast as I would like. In Q1, however, we faced a significant hit to services profitability related to cost overruns and under performance in 2 large projects, driven by near-term 5G delays. These projects will continue to provide a drag in Q2 but are expected to recover as the year progresses.

回到我們第一季度的財務業績，我們還看到服務業務中存在一些執行問題。通常，在這個行業中，像諾基亞這樣的供應商都會有一些具有挑戰性的服務項目。那裡沒有什麼不尋常的。我們之前提到過幾個這樣的項目，它們正在引起人們的強烈關注。恢復正在進行中，儘管沒有我希望的那麼快。然而，在第一季度，由於近期 5G 延遲，我們的服務盈利能力受到了重大打擊，這與成本超支和 2 個大型項目的績效不佳有關。這些項目將繼續拖累第二季度，但預計將隨著今年的進展而恢復。

Separate from 5G-related topics, Fixed Networks had a challenging quarter with both lower net sales and a geographical mix leading to weak profitability. We continue to run this business very tightly with a firm control on OpEx spending, but if performance does not start to recover, we will look to drive further focus and efficiency. Despite this, there are also good reasons for optimism, particularly with higher-than-expected demand for our fixed wireless access solution, including from customers like Optus and South African operator, rain. It is absolutely unique in the market today as it includes the new 5G gateway that launched at Mobile World Congress. Designed with the highest gain antenna in the market and massive increases in coverage and capacity compared to traditional designs, this is a compact solution that makes it literally plug and play for an operator to use their mobile network to bring 5G speeds to every corner of the home.

除了與 5G 相關的主題之外，固定網絡業務的季度也充滿挑戰，淨銷售額較低，而且地域結構複雜，導致盈利能力疲軟。我們將繼續嚴格控制運營支出，嚴格控制這項業務，但如果業績沒有開始恢復，我們將尋求進一步提高重點和效率。儘管如此，我們也有充分的理由保持樂觀，特別是對我們的固定無線接入解決方案的需求高於預期，其中包括來自Optus和南非運營商rain等客戶的需求。它在當今市場上絕對是獨一無二的，因為它包括在世界移動大會上推出的新 5G 網關。這是一款緊湊的解決方案，採用市場上增益最高的天線設計，與傳統設計相比，覆蓋範圍和容量大幅增加，使運營商能夠即插即用地使用其移動網絡，將 5G 速度帶到每個角落。家。

Finally, on to my third point about risks and opportunities. I've talked about the opportunities we see based on the strength of our products and services, Nokia's unique end-to-end differentiation and 5G-related investments by our customers that benefit our entire portfolio. So what about risks? We see some evolving that are worthy of further comment. The first is execution risk for the remainder of the year, and particularly in the second half, given the high volume we expect. We demonstrated in 2018 that we can deliver a fully loaded second half and expect we can do so again. That said, I think it is reasonable to acknowledge that our slow start to the year has slightly increased risk in this area.

最後，關於風險和機遇的第三點。我已經談到了基於我們產品和服務的優勢、諾基亞獨特的端到端差異化以及我們客戶的 5G 相關投資所看到的機遇，這些投資使我們的整個產品組合受益。那麼風險呢？我們看到一些值得進一步評論的演變。首先是今年剩餘時間的執行風險，特別是下半年，因為我們預計交易量很大。我們在 2018 年證明，我們可以實現下半年的滿負荷運轉，並期望我們能夠再次做到這一點。也就是說，我認為有理由承認，今年開局緩慢導致該領域的風險略有增加。

Let me take this opportunity to note that while we believe 2019 will bear considerable similarity to 2018 in terms of quarterly sales performance, the underlying drivers are different. 2018 ended strong as operators invested in their networks in advance of 5G radio rollout. 2019 should end with the 5G ecosystem largely mature and with 5G demand continuing to grow in 2020.

讓我藉此機會指出，雖然我們認為 2019 年的季度銷售業績將與 2018 年相當相似，但潛在的驅動因素是不同的。由於運營商在 5G 無線電推出之前對其網絡進行了投資，2018 年表現強勁。2019 年結束時，5G 生態系統將基本成熟，2020 年 5G 需求將繼續增長。

The second risk we see is a potential increase in competitive intensity in a limited number of accounts, as some competitors seek to be more commercially aggressive in the early stages of 5G. We have no desire to engage in such behavior but are prepared to act as needed to maintain our footprint.

我們看到的第二個風險是有限數量的賬戶中的競爭強度可能會增加，因為一些競爭對手尋求在 5G 的早期階段更具商業侵略性。我們無意參與此類行為，但準備根據需要採取行動以維持我們的足跡。

Third, we see an increasing number of customers reassessing their vendor selection in light of security concerns. While it is governments who are driving this issue and who will determine the right policies for their countries, we will support our customers in cases where they have an interest in changing suppliers. In the near term, this could put some pressure on margins but we will expect -- accept that in cases with the right long-term profitability profile.

第三，我們看到越來越多的客戶出於安全考慮重新評估他們的供應商選擇。儘管政府正在推動這一問題並為其國家製定正確的政策，但如果客戶有興趣更換供應商，我們將為其提供支持。短期內，這可能會給利潤率帶來一些壓力，但我們預計，在長期盈利能力良好的情況下，我們會接受這一點。

On this topic, I want to be clear that a change of vendor does not necessarily mean a full-scale swap. There are other ways to manage the transition that are more cost-effective and less complex, including opening certain interfaces or deploying a light 4G overlay layer. And for more on this, I would encourage you to look at a blog on our website from Harri Holma, a Nokia Bell Labs fellow and one of the industry's top experts on radio technology.

關於這個話題，我想澄清的是，更換供應商並不一定意味著全面更換。還有其他更具成本效益且不太複雜的管理過渡的方法，包括開放某些接口或部署輕型 4G 覆蓋層。有關這方面的更多信息，我鼓勵您查看我們網站上由諾基亞貝爾實驗室研究員、業界頂級無線電技術專家之一哈里·霍爾瑪 (Harri Holma) 撰寫的博客。

To pull all this together, yes, we do see risks, no doubt about it. But more importantly, we continue to see a path to delivering on the full year 2019 guidance that we gave in January and continuing to strengthen our performance in 2020.

綜上所述，是的，我們確實看到了風險，這是毫無疑問的。但更重要的是，我們繼續看到一條實現我們 1 月份給出的 2019 年全年指導並繼續加強我們 2020 年業績的道路。

With that, let me briefly comment on a few other topics before I hand the call over to Kristian.

在將電話轉交給克里斯蒂安之前，讓我簡要評論一下其他幾個話題。

First, 2 regions, North America and China. In North America, we reported constant currency growth of only 1%, a less-than-ideal outcome that was largely driven by the lack of 5G revenue that I mentioned earlier. Just to help with any comparisons you might make, if you look at just Mobile Networks and Services without managed services, our growth in North America was approximately 15% in the first quarter. If you assume that we have been able to recognize the approximately EUR 200 million in 5G revenue that I mentioned earlier, we would have grown approximately 40% in the market. This is not to excuse our shortfall but to put it in perspective. I would also note that we do not believe there have been any material changes in market share with North American customers, but timing of our sales may be different to what others see.

一、2個地區，北美和中國。在北美，我們報告的貨幣持續增長率僅為 1%，這一結果不太理想，這主要是由於我之前提到的 5G 收入缺乏所致。為了幫助您進行比較，如果您僅查看移動網絡和服務而不考慮託管服務，我們在北美第一季度的增長約為 15%。如果你假設我們已經能夠確認我之前提到的約 2 億歐元的 5G 收入，那麼我們的市場增長率將達到約 40%。這並不是要為我們的不足找藉口，而是要正確看待它。我還要指出的是，我們認為北美客戶的市場份額沒有發生任何重大變化，但我們的銷售時間可能與其他人看到的不同。

China remains a challenge, and our sales declined by 12% in Q1 in constant currency, largely reflecting operator CapEx control in advance of 5G. As 5G accelerates in the market, we expect that there will be early activities that are called trials but, in fact, are fairly large initial rollouts that require significant free-of-charge products and services. While participating in some of this will almost certainly be necessary, our focus will be on the commercial phases that we expect to come in 2020. Overall, and as I noted last quarter, we will remain prudent in China and seek to balance share in the country versus overall profitability.

中國仍然是一個挑戰，按固定匯率計算，我們第一季度的銷售額下降了 12%，這主要反映了運營商在 5G 之前的資本支出控制。隨著 5G 在市場上的加速發展，我們預計將會出現稱為試驗的早期活動，但實際上，這是相當大的初始部署，需要大量的免費產品和服務。雖然參與其中的一些項目幾乎肯定是必要的，但我們的重點將放在預計 2020 年實現的商業階段。總體而言，正如我上季度指出的那樣，我們將在中國保持謹慎態度，並尋求在中國市場份額與整體盈利能力之間取得平衡。

Second, costs. We continue to deliver on our cost-cutting targets and are on track to meet the EUR 700 million target we announced with our third quarter earnings last year. As we see the various risks and opportunities play out in coming quarters, we will also continue to assess our portfolio to ensure we are focusing only in the areas where we see true market opportunity. Our view that cost leadership and clear prioritization of investments are critical success factors in our sector remains absolutely unchanged. If market conditions or our own performance suggests that we need to adjust costs, we will not hesitate to do so.

第二，成本。我們繼續實現成本削減目標，並有望實現去年第三季度收益中宣布的 7 億歐元目標。當我們看到未來幾個季度出現的各種風險和機遇時，我們還將繼續評估我們的投資組合，以確保我們只關注我們看到真正市場機會的領域。我們認為成本領先和明確的投資優先順序是我們行業成功的關鍵因素這一觀點仍然沒有改變。如果市場狀況或我們自身的業績表明我們需要調整成本，我們會毫不猶豫地這樣做。

Let me move now to cash. Our performance with respect to cash was weak in the quarter. However, we remain confident in our guidance to be slightly positive in free cash flow for the full year. I want to reassure you that we are extremely focused on this subject and have initiated a number of measures to address this performance. Kristian will provide more details in a moment.

現在讓我談談現金。本季度我們的現金表現疲弱。然而，我們仍然對全年自由現金流略為正值的指導充滿信心。我想向您保證，我們非常關注這個問題，並採取了一系列措施來解決這一問題。克里斯蒂安稍後將提供更多細節。

Finally, Alcatel Submarine Networks or ASN. You may have seen a recent announcement that our talks to sell the asset to a French company called Ekinops have come to an end. That is true, as our view of the business has changed in step with the change in the overall optical market. While we see good reasons to keep the business as a core part of Nokia, we also understand that the French government would prefer at least partial French ownership of ASN. We will continue to work with them to see if we can find a solution that meets their needs and is in the best interest of Nokia shareholders.

最後，阿爾卡特海底網絡或 ASN。您可能已經看到最近的一則公告，稱我們將資產出售給一家名為 Ekinops 的法國公司的談判已經結束。確實如此，因為我們對業務的看法隨著整個眼鏡市場的變化而變化。雖然我們認為有充分的理由將該業務保留為諾基亞的核心部分，但我們也了解法國政府更願意法國至少擁有部分 ASN。我們將繼續與他們合作，看看能否找到滿足他們需求並符合諾基亞股東最佳利益的解決方案。

With that, let me turn the call over to Kristian. Kristian?

接下來，讓我把電話轉給克里斯蒂安。克里斯蒂安？

Thank you, Rajeev. Today, I will take you through a number of topics, including the financial performance of Nokia Technologies, and Group Common and Other as well as group-level results. I would like to then focus on our cash flow in Q1, some key items for Q2 and some of the actions we are taking to improve our cash performance and balance sheet. And finally, I'll briefly touch upon our guidance.

謝謝你，拉吉夫。今天，我將向您介紹一些主題，包括諾基亞技術的財務業績、集團通用和其他以及集團層面的業績。然後，我想重點關注第一季度的現金流、第二季度的一些關鍵項目以及我們為改善現金績效和資產負債表而採取的一些行動。最後，我將簡要談談我們的指導。

By now, I'm sure you are all familiar with our new reporting structure. As part of this, we are now providing additional disclosure with amounts related to licensing. And Nokia Bell Labs allocated 80% to Networks and 15% to Nokia Services. This ratio is in accordance with their value contribution, and we are providing this information to improve comparability with our peers.

到目前為止，我相信你們都熟悉我們新的報告結構。作為其中的一部分，我們現在提供與許可相關的金額的額外披露。諾基亞貝爾實驗室將 80% 分配給網絡部門，15% 分配給諾基亞服務部門。該比率與他們的價值貢獻一致，我們提供此信息是為了提高與同行的可比性。

On this basis, our networks' operating margin in Q1 '19 would have been negative 1% instead of the negative 6.4% reported. And Nokia Software operating margins would have been positive 5% instead of the negative 1.3% reported. You can find this disclosure on Page 6 of our Q1 earnings release.

在此基礎上，我們網絡 19 年第一季度的營業利潤率將是負 1%，而不是報告的負 6.4%。諾基亞軟件的營業利潤率將為正 5%，而不是報告的負值 1.3%。您可以在我們第一季度收益報告的第 6 頁上找到此披露信息。

Moving to Nokia Technologies. Net sales in Q1 totaled EUR 370 million, an increase of 1% year-on-year, primarily related to higher onetime catch-up net sales related to a new license agreement and the sale of certain patents. Net sales at constant currency were flat year-on-year. In Q1 '19, we had EUR 40 million onetime net sales compared to EUR 10 million in Q1 '18. On a recurring basis, net sales declined 4% year-on-year.

轉向諾基亞技術公司。第一季度淨銷售額總計 3.7 億歐元，同比增長 1%，主要與新許可協議和某些專利銷售相關的一次性追趕淨銷售額增加有關。按固定匯率計算的淨銷售額同比持平。19 年第一季度，我們的一次性淨銷售額為 4000 萬歐元，而 18 年第一季度為 1000 萬歐元。經常性淨銷售額同比下降 4%。

From a profitability perspective, operating margin was up solidly on a year-on-year basis, with Q1 at 82% compared to 75% in the year ago quarter. This improvement was primarily due to the absence of costs related to digital health, which we divested last year.

從盈利能力角度來看，營業利潤率同比穩健增長，第一季度為 82%，而去年同期為 75%。這一改善主要是由於我們去年剝離了與數字醫療相關的成本。

As Rajeev mentioned, we are in the final stages of signing an agreement with a new licensee. While the name of the company and the terms of the agreement are confidential for your models, our licensing run rate as of today would be approximately EUR 1.4 billion annually if you include this new licensee.

正如 Rajeev 提到的，我們正處於與新被許可人簽署協議的最後階段。雖然公司名稱和協議條款對於您的型號是保密的，但如果您將這個新的被許可人包括在內，我們截至目前的許可運行率每年約為 14 億歐元。

Moving to Group Common and Other in Q1. Net sales decreased 12% year-on-year in constant currency, primarily driven by ASN. ASN is a project-oriented business. This has led to a challenging net sales performance over the past years -- over the past year as a number of large projects came to completion. Looking forward, we see this trend inflecting in the second half of 2019 when ASN commerces work on new projects.

在第一季度轉向普通組和其他組。按固定匯率計算，淨銷售額同比下降 12%，這主要是受到 ASN.1 的推動。ASN 是一家面向項目的企業。這導致過去幾年的淨銷售業績充滿挑戰——在過去的一年裡，隨著許多大型項目的竣工。展望未來，我們預計這一趨勢將在 2019 年下半年出現變化，屆時 ASN commerce 將會開展新項目。

Group Common and Other operating loss worsened year-on-year, primarily driven by lower gross profits and higher costs related to long-term investments to drive digitalization for the future, which negatively impacted both R&D and SG&A. These were partly offset by higher gains in Nokia's venture fund investments. Please note for your models that our OpEx run rate in Group Common and Other has now increased by approximately EUR 20 million per quarter related to the long-term investments I just mentioned.

集團普通及其他經營虧損同比惡化，主要是由於毛利潤下降以及與推動未來數字化的長期投資相關的成本上升，這對研發和銷售、一般管理費用均產生了負面影響。這些收益被諾基亞風險基金投資的較高收益所部分抵消。請注意，對於您的模型，由於我剛才提到的長期投資，我們在 Group Common 和 Other 中的 OpEx 運行率現已每季度增加約 2000 萬歐元。

Moving to Nokia level results. Looking at non-IFRS taxes in Q1, the group level operating loss drove a tax benefit in the quarter compared to tax expense last year. For full year '19, we continue to expect non-IFRS tax rate to be approximately 28% at a lower rate compared to last year, driven by our new tax model, which we put in place at the beginning of 2019.

轉向諾基亞水平的結果。從第一季度的非國際財務報告準則稅收來看，與去年的稅收支出相比，集團層面的運營虧損推動了本季度的稅收優惠。在我們於 2019 年初實施的新稅收模式的推動下，我們繼續預計 2019 年全年非國際財務報告準則稅率約為 28%，稅率低於去年。

Looking at non-IFRS financial income and expenses in Q1, our year-on-year results reflect an improvement in foreign exchange hedging results, partly offset by higher interest expenses related to the sale of receivables and the inclusion of leasing interest expenses as a result of the adoption of IFRS 16. At the Nokia level, our non-IFRS diluted EPS was negative EUR 0.02 in Q1, down from EUR 0.02 in the year ago quarter. Overall, this performance was primarily driven by lower gross profit in our Networks business.

從第一季度的非國際財務報告準則財務收入和支出來看，我們的同比業績反映了外匯對沖結果的改善，但部分被與應收賬款銷售相關的較高利息費用以及因此計入的租賃利息費用所抵消IFRS 16 的採用。在諾基亞層面，我們第一季度的非國際財務報告準則攤薄後每股收益為負 0.02 歐元，低於去年同期的 0.02 歐元。總體而言，這一業績主要是由於我們的網絡業務毛利潤下降所致。

Next, turning to our cash flow performance in Q1 and our balance sheet. On a sequential basis, Nokia's net cash decreased by approximately EUR 1.1 billion to a quarter end balance of approximately EUR 2 billion. During the first quarter, Nokia's free cash flow was negative EUR 930 million. In addition to the seasonally weak profitability in the quarter, our cash outflows were negatively impacted by a number of items. Firstly, we saw continued outflows related to restructuring and network equipment swaps. We also witnessed seasonally weaker cash collections following significantly higher sale of receivables in the fourth quarter of 2018 and certain unexpected and unusual overdues at the end of the first quarter.

接下來，轉向我們第一季度的現金流表現和資產負債表。諾基亞淨現金環比減少約 11 億歐元，季度末餘額約為 20 億歐元。第一季度，諾基亞的自由現金流為負9.3億歐元。除了本季度盈利能力季節性疲弱之外，我們的現金流出還受到許多項目的負面影響。首先，我們看到與重組和網絡設備更換相關的資金持續流出。在 2018 年第四季度應收賬款銷售大幅增加以及第一季度末出現某些意外和異常逾期之後，我們還目睹了現金回款季節性疲軟。

Lastly, we saw seasonally higher inventory levels as well as higher-than-normal inventory levels due to our decision to ensure sufficient flexibility to deliver higher levels of equipment sales, particularly related to 5G and the deferral of revenue recognition mainly in North America.

最後，由於我們決定確保足夠的靈活性以提供更高水平的設備銷售，特別是與 5G 相關的設備銷售以及主要在北美推遲收入確認，我們的庫存水平出現了季節性上升以及高於正常水平。

Specifically regarding Q2 cash flow, our cash will be negatively impacted by bonuses paid under our annual employee incentive plans. We also expect inventories to remain at elevated levels in Q2. Having said that, we expect inventories to significantly improve in the second half.

具體而言，就第二季度現金流而言，我們的現金將受到年度員工激勵計劃下支付的獎金的負面影響。我們還預計第二季度庫存將保持在較高水平。話雖如此，我們預計下半年庫存將顯著改善。

Additionally, regarding our dividend, as mentioned last quarter, Nokia's Board of Directors has proposed to the AGM a maximum -- an aggregate maximum dividend of EUR 0.20 per share to be paid in quarterly installments. The first quarterly installment is expected to be paid in June.

此外，關於我們的股息，正如上季度提到的，諾基亞董事會已向年度股東大會提議最高股息——每股 0.20 歐元的最高股息，按季度分期支付。第一季度分期付款預計將於六月支付。

Our cash performance continues to be an area of strong focus for us, and we are diligently working to improve this. We continue to believe that the free cash flow will be slightly positive in 2019, and we acknowledge that this will require significant improvement in our execution. I am confident that we will show improvement in the coming quarters, following the actions we have put in place. For example, we have established a free cash flow program to ensure company-wide focus on free cash flow and the release of networking capital, including project asset optimization, reviews of contract terms and conditions as well as supply chain and inventory optimization. I will be tracking this on a bi-weekly basis to ensure that we meet our expectations. And we have now tied a significant part of senior leaders' incentives to free cash flow improvements in 2019 and beyond.

我們的現金表現仍然是我們重點關注的領域，我們正在努力改善這一點。我們仍然相信 2019 年自由現金流將略為正，並且我們承認這需要我們在執行方面進行重大改進。我相信，按照我們採取的行動，我們將在未來幾個季度取得進步。例如，我們建立了自由現金流計劃，以確保全公司關注自由現金流和網絡資本的釋放，包括項目資產優化、合同條款和條件審查以及供應鍊和庫存優化。我將每兩週跟踪一次，以確保我們滿足我們的期望。現在，我們已將高層領導者的激勵措施的很大一部分與 2019 年及以後自由現金流的改善掛鉤。

Turning briefly to our balance sheet. As I mentioned earlier, we ended the quarter with EUR 2 billion of net cash. During Q1, we successfully issued EUR 750 million of unsecured notes, which will mature in 2026 and carry a 2% fixed coupon. These proceeds have been used to repay a portion of our debt in Q1 and for general corporate purposes. We are pleased with the interest rate we were able to get, which helps us lower our overall interest expenses.

簡單地談談我們的資產負債表。正如我之前提到的，本季度末我們的淨現金為 20 億歐元。第一季度，我們成功發行了 7.5 億歐元無抵押票據，該票據將於 2026 年到期，固定票面利率為 2%。這些收益已用於償還我們第一季度的部分債務以及一般公司用途。我們對能夠獲得的利率感到滿意，這有助於我們降低總體利息支出。

Finally, turning to guidance. As Rajeev mentioned, we have reiterated our full year guidance -- full year 2019 guidance even if we now see signs of increased overall risk. Our view is based on a strong recovery expected in the second half of the year, driven by 5G deployments, in addition to early benefits from initiatives in our cost-savings program. While our expected weak first half put significant pressure on our second half execution, I believe our teams can rise to this challenge.

最後，轉向指導。正如 Rajeev 提到的，我們重申了我們的全年指引——2019 年全年指引，即使我們現在看到整體風險增加的跡象。我們的觀點是基於 5G 部署的推動下，預計下半年將出現強勁復甦，此外我們的成本節約計劃舉措也帶來了早期效益。雖然我們預期的上半場表現不佳給下半場的執行帶來了巨大壓力，但我相信我們的團隊能夠應對這一挑戰。

With that, I hand over to Matt for Q&A.

就這樣，我將問題交給馬特進行問答。

Thank you, Kristian. For the Q&A session, please limit yourself to one question only. Nicole, please go ahead.

謝謝你，克里斯蒂安。對於問答環節，請僅限回答一個問題。妮可，請繼續。

(Operator Instructions) Our first question comes from Sandeep Deshpande of JPMorgan.

（操作員指令）我們的第一個問題來自摩根大通的 Sandeep Deshpande。

Rajeev, I have a quick question. I mean do you have -- I mean we are in the early stage of the 5G transition. I mean if you go back to the 4G transition and you were in charge at time as well, I mean in the initial part there was a lot of price war -- there was a considerable price war in the market, but then, eventually, in the 4G market, you did come up on top. Do you see this as a similar sort of situation which is causing margin -- impact to the margin? Or is this early part of 5G different from how it was in 4G? And then when you look at your overall gross margin, if it -- how would you classify how much of that is coming from any price situation and how much from company-specific things such as the software upgrade, et cetera?

拉吉夫，我有一個簡單的問題。我的意思是，我們正處於 5G 過渡的早期階段。我的意思是，如果你回到 4G 過渡並且你當時也負責，我的意思是在最初的部分有很多價格戰 - 市場上有相當大的價格戰，但最終，在4G市場上，你們確實名列前茅。您是否認為這是一種類似的導致利潤率影響的情況？或者說 5G 的早期階段與 4G 階段有何不同？然後，當您查看總體毛利率時，如果是的話，您將如何分類其中有多少來自任何價格情況，有多少來自公司特定的事物，例如軟件升級等？

So I would say that it's not widespread, any competitive intensity. I think what we're -- we're not seeing that as much right now. What we're seeing are potential signs of that coming through. So let's be clear that we haven't seen it yet, there's potential signs of that coming through. I would, again, say that it's in just certain accounts and maybe even certain countries like -- and so I think our response needs to be a nuanced regional strategy. So we're not going to take an approach that's similar everywhere. For example, in China, we need to be far more prudent because there we expect more aggression, we expect free-of-charge deployments, et cetera. So there, we'll be super prudent and focus on the commercial phase. But again, then there is the second aspect of security-related concerns through which there may be some replacements of competitors and so on. Long-term, that's an opportunity. And again, here we don't think it requires full-scale swaps because Nokia's come up with a few solutions that we can avoid that, i.e., just put a thin layer of LTE, just swap that thin layer of LTE and then use that to connect to 5G on non-standalone architecture. So I guess, in the early days of 4G, it was more aggressive because there were also big modernization contracts started by one particular competitor. I don't see it the same way. I will come back and address gross margin. I'm sure the question will come up in terms of what is going to change for Nokia going forward.

所以我想說這並不普遍，沒有任何競爭強度。我認為我們現在並沒有看到那麼多。我們看到的是這種情況正在發生的潛在跡象。因此，我們要明確的是，我們還沒有看到這種情況，但有潛在的跡象。我想再次強調，這只是在某些賬戶中，甚至可能是在某些國家中，所以我認為我們的應對措施需要是一項細緻入微的區域戰略。因此，我們不會採取到處都相似的方法。例如，在中國，我們需要更加謹慎，因為我們預計那裡會有更多的侵略，我們預計免費部署等等。因此，我們將非常謹慎並專注於商業階段。但同樣，還有第二個與安全相關的問題，通過這個問題可能會出現一些競爭對手的替代品等等。從長遠來看，這是一個機會。再說一遍，我們認為不需要全面交換，因為諾基亞提出了一些我們可以避免這種情況的解決方案，即只需放置一層薄薄的 LTE，只需交換薄層 LTE，然後使用它在非獨立架構上連接5G。所以我想，在 4G 的早期，它更加激進，因為也有一個特定競爭對手啟動的大型現代化合同。我不這麼認為。我會回來談談毛利率。我確信這個問題將會出現在諾基亞未來將發生什麼變化的方面。

Our next question comes from Andrew Gardiner of Barclays.

我們的下一個問題來自巴克萊銀行的安德魯·加德納。

Rajeev, you sort of foreshadowed my question now. The unchanged 2019 outlook, margin outlook, does imply a steep ramp of gross margin as we move from first quarter through second quarter and into the back half for the year. I can understand what you're saying about sort of the increase, a return to some of the software releases and improving mix should help, but at the same time, you're highlighting some of these competitive pressures. So after that weak first quarter and still holding the desire to meet your full year targets, how do you balance those competing factors? Do you need to cede market share in order to improve margins? Or are there mechanical things that should come through that are giving you that confidence in the ramp over the course of the year?

Rajeev，你現在有點預示了我的問題。2019 年的前景（即利潤率前景）保持不變，確實意味著，從第一季度到第二季度，再到今年下半年，毛利率將急劇上升。我可以理解您所說的增加、恢復某些軟件版本和改進組合應該有所幫助，但與此同時，您強調了其中一些競爭壓力。因此，在經歷了疲軟的第一季度之後，但仍然渴望實現全年目標，您如何平衡這些競爭因素？您是否需要放棄市場份額以提高利潤率？或者是否有一些機械性的事情應該經歷，讓您對今年的增長充滿信心？

So let me take some time on this one. This is an important question. So first off, it is fair for you to expect us to drive sequential improvement in gross margin every quarter for the remainder of 2019, and let me explain the drivers. First, of course, is 5G growth that will drive improved scale, which will provide us with improved leverage, right? And there are 2 distinct parts to this. Number one, we expect 5G deployments to accelerate meaningfully in the second half, and we have visibility to where those countries are, what those contracts will be.

讓我花點時間討論一下這個問題。這是一個重要的問題。因此，首先，您可以合理地期望我們在 2019 年剩餘時間內每個季度推動毛利率連續改善，讓我解釋一下驅動因素。首先，當然，5G 的增長將推動規模的擴大，這將為我們提供更高的槓桿，對嗎？這有兩個不同的部分。第一，我們預計 5G 部署將在下半年顯著加速，並且我們可以了解這些國家的情況以及這些合同的內容。

Two, also as we highlighted, we delivered approximately EUR 200 million of 5G hardware in Q1 that we were unable to recognize revenue on. And we expect that to be captured in full by the end of the year. So that's the first point, 5G growth.

第二，正如我們強調的那樣，我們在第一季度交付了約 2 億歐元的 5G 硬件，但我們無法確認收入。我們預計這一點將在今年年底前得到充分體現。這就是第一點，5G 增長。

The second is product mix. And that will improve, one, because within Mobile Access, we expect a higher mix of software sales following a Q1 during which we did not have any software releases, not 4G, not 5G. 4G because of the compatibility with 5G, and 5G because of what I've mentioned, our revenue recognition. And two, if you move beyond Mobile Access for a minute, there are also several drivers of improvement: number one, improved scale in Fixed Networks, which was down a lot in Q1; FP4 product cycle in IP Routing, the structural cost benefit we have there; third, PSE-3 cycle in Optical that's coming later in the year.

二是產品結構。這將會有所改善，因為在移動接入領域，我們預計第一季度之後軟件銷售的組合將會更高，在此期間我們沒有任何軟件發布，無論是 4G 還是 5G。4G 是因為與 5G 的兼容性，5G 是因為我提到的，我們的收入認可。第二，如果你超越移動接入一分鐘，還有幾個改進的驅動因素：第一，固定網絡規模擴大，第一季度大幅下降；第二，固定網絡規模擴大。 IP 路由中的 FP4 產品週期，我們在那裡擁有結構性成本優勢；第三，光學領域的 PSE-3 週期將於今年晚些時候推出。

And then on the third big point, in Services, which is within Mobile Access, as I mentioned, the particular challenges we are seeing are limited to a couple of services contracts where we had some cost overruns, and I'm confident that we can drive significant improvement in our execution the remainder of the year. Plus, we also expect cost reductions in services, which is part of cost of sales and hence will improve gross margin. And more broadly speaking, we're focused on improving our overall product costs. Obviously, we're in a new technology transition, and as we progress through the 5G technology cycle, I can assure you that we're already taking the necessary actions, such as more ReefShark chipsets, system on chip products, et cetera to start in '19 and later in '20.

然後，關於第三個要點，即移動訪問範圍內的服務，正如我所提到的，我們所看到的特殊挑戰僅限於一些成本超支的服務合同，我相信我們可以推動我們今年剩餘時間的執行力顯著提高。此外，我們還預計服務成本會降低，這是銷售成本的一部分，因此將提高毛利率。更廣泛地說，我們專注於提高整體產品成本。顯然，我們正處於新的技術轉型之中，隨著我們在 5G 技術週期中取得進展，我可以向您保證，我們已經採取了必要的行動，例如更多的 ReefShark 芯片組、片上系統產品等，以開始在 19 年和後來的 20 年。

Our next question comes from Richard Kramer of Arete Research.

我們的下一個問題來自 Arete Research 的理查德·克萊默 (Richard Kramer)。

Rajeev, there's been a lot of attention paid on some high-profile new deals like Rakuten, which are obviously using some new models. And you've seen some moves from some of your rivals from capturing a sort of price premium in the market to now trying to be a price leader. So there seems to be a lot of evidence behind the notion of price aggression that you mentioned. I guess my question, given all the execution challenges you face and not to add to them, is whether you're confident that your second restructuring is going to be sufficient to bring Nokia to the cost structure it needs longer term, maybe even beyond the 2020 guidance? Or are we simply on a wheel, a hamster wheel, as it is, of needing constant cost reductions to sustain those margins, which, I guess, with the execution challenges right now, are very hard to get to in the near term?

Rajeev，樂天等一些備受矚目的新交易受到了很多關注，這些交易顯然正在使用一些新模型。您已經看到一些競爭對手採取了一些舉措，從在市場上獲得某種價格溢價到現在試圖成為價格領導者。所以你提到的價格侵略的概念背後似乎有很多證據。我想我的問題是，考慮到您面臨的所有執行挑戰（而不是增加這些挑戰），您是否有信心第二次重組足以使諾基亞達到其長期所需的成本結構，甚至可能超出預期2020年指導？或者我們只是在一個輪子上，就像倉鼠輪子一樣，需要不斷降低成本來維持這些利潤，我想，由於目前執行方面的挑戰，短期內很難達到這一目標？

So yes, we expect this to be sort of the restructuring round, not requiring more rounds after this. On the Rakuten, I mean, of course, we're a primary vendor there. We're in a key position there. So the network architecture that we see in Rakuten, I don't see that replicating other parts of the world because, one, it's still a closed ecosystem; and second, it's a greenfield operator, so they can do it because they don't have to carry any legacy features, 4G, 3G, et cetera. So it's an isolated set up. We're following that closely because we're involved. It's better to be involved than not. It's a decent contract for us.

所以，是的，我們預計這將是一輪重組，之後不需要更多輪次。在樂天，我的意思是，當然，我們是那裡的主要供應商。我們在那里處於關鍵位置。因此，我們在樂天看到的網絡架構，我認為不會復制世界其他地方，因為，第一，它仍然是一個封閉的生態系統；第二，它仍然是一個封閉的生態系統；第二，它仍然是一個封閉的生態系統。其次，它是一家新建運營商，因此他們可以做到這一點，因為他們不必攜帶任何傳統功能，4G、3G 等。所以這是一個孤立的設置。我們正在密切關注這一點，因為我們參與其中。參與總比不參與好。這對我們來說是一份不錯的合同。

Longer term, there'll be other meaningful initiatives, which is Open RAN. ORAN will start to happen, et cetera. And I think that's a good thing for the industry because then we can stopping doing swaps with each other because you can open interfaces and change and mix suppliers more readily.

從長遠來看，還會有其他有意義的舉措，這就是 Open RAN。ORAN 將開始發生，等等。我認為這對整個行業來說是一件好事，因為這樣我們就可以停止相互交換，因為你可以更容易地開放接口、改變和混合供應商。

On the final point on price pressure. Again, we haven't seen a lot of evidence of this. I'm just pointing to particular possibilities of risk here. And I know that China will be aggressive, in particular, so we will take a more nuanced regional strategy always with the right long-term profitability profile.

關於價格壓力的最後一點。同樣，我們還沒有看到很多這方面的證據。我在這裡只是指出特定的風險可能性。我知道中國將尤其具有侵略性，因此我們將採取更加細緻的區域戰略，始終保持正確的長期盈利能力。

Our next question comes from Mike Walkley of Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Mike Walkley。

With Q1 consistent with the slower start to 2019, you still have a strong conviction of a stronger second half. Can you just update us on what regions you have the strongest visibility to support your stronger second half outlook and if there's any consolidation risk to that outlook?

由於第一季度與 2019 年較慢的開局一致，您仍然堅信下半年會更加強勁。您能否向我們介紹一下哪些地區的知名度最高，可以支持您更強勁的下半年前景，以及該前景是否存在整合風險？

So in terms of the business product areas, like I mentioned, more scale in Fixed Networks, we have visibility to that happening; the FP4 product cycle, which is receiving a lot of warm reception by a number of customers; the PSE-3 in Optical, which is coming later this year. Then visibility from a regional standpoint, North America, I mean that, obviously, we have visibility, 2 early launches have happened, more will accelerate. Korea, I mean the launches have happened and acceleration is somewhat already underway. Japan will come next. Spectrum has been awarded, and now 5G roll out will start in earnest as vendor decisions will get to be made. And then there is China, which will happen sort of in Q3 timeframe in terms of the central procurement round 1 tendering decisions. Australia, that's underway from a 5G standpoint, including fixed wireless access. Middle Eastern countries, we've already signed those contracts as part of our 36 commercial 5G contracts. And then you have Nordic countries and perhaps a couple of countries in Europe like the U.K., Italy more notably. And then there'll be -- the rest of them will start to happen more in 2020. But this is the 2019 activity list, if you like, from the 36 5G commercial contracts that we have, which are growing by the day.

因此，就業務產品領域而言，就像我提到的那樣，固定網絡的規模更大，我們可以看到這種情況的發生； FP4產品週期，受到眾多客戶的熱烈歡迎；光學領域的 PSE-3 將於今年晚些時候推出。然後從區域的角度來看，北美的可見性，我的意思是，顯然，我們有可見性，已經發生了兩次早期發布，更多的將會加速。韓國，我的意思是發射已經發生，並且加速已經在進行中。日本將是下一個。頻譜已經獲得，現在隨著供應商做出決定，5G 部署將正式開始。然後是中國，就中央採購第一輪招標決定而言，這將在第三季度的時間範圍內發生。澳大利亞正在從 5G 的角度進行這項工作，其中包括固定無線接入。在中東國家，我們已經簽署了這些合同，作為我們 36 個商業 5G 合同的一部分。然後是北歐國家，或許還有一些歐洲國家，比如英國、意大利。然後，剩下的事情將在 2020 年開始發生更多。但這是 2019 年的活動清單，如果你願意的話，來自我們擁有的 36 個 5G 商業合同，這些合同與日俱增。

Our next question comes from David Mulholland of UBS

我們的下一個問題來自瑞銀集團的大衛·穆赫蘭

Just one question on the Technologies division. Obviously, you've pointed to the recurring revenue base of now about EUR 1.4 billion. I'm just wondering if you can comment on whether you think there's still opportunities to grow from here, given you've taken away kind of the divisional guide for 2020, but in the past, you've been targeting I think close to EUR 1.7 billion. And if I can squeeze one quick clarification. On the EUR 200 million hardware sales that you're talking about, can you clarify whether you've taken the cost on that from a COGS perspective or whether it's missing from both revenue and COGS?

只是關於技術部門的一個問題。顯然，您已經指出目前的經常性收入基礎約為 14 億歐元。我只是想知道您是否可以評論一下您是否認為這裡仍有增長的機會，因為您已經取消了 2020 年的分區指南，但在過去，我認為您的目標一直接近歐元17億。如果我能快速澄清一下的話。關於您所談論的 2 億歐元硬件銷售額，您能否澄清一下您是否從 COGS 角度考慮了該成本，或者是否在收入和 COGS 中都忽略了該成本？

Maybe I can start just on the latter one. So we are talking about 5G deliveries in general in North America, including hardware and software, and the costs have not been taken. The cost will be booked when revenues are recognized.

也許我可以從後一個開始。所以我們說的是北美地區總體的5G交付，包括硬件和軟件，成本還沒算。成本將在確認收入時入賬。

Correct. And David, on the tech thing, yes, we see opportunities to grow from here on. As we said before, there is still more in China, the automotive licensing, which is very much underway, there are more IoT verticals with consumer broadcast. So yes, we see the opportunity to grow. I think, perhaps, what's even more important is that we see this business lasting for a very long time. It is a recurring revenue business. And given the patents that we're innovating with, including the new 5G patents that we've gone with, I mean, we see this as an opportunity for decades. And I want to make this clear, this isn't a few years or even 10 years, it's way beyond.

正確的。大衛，在科技方面，是的，我們看到了從現在開始增長的機會。正如我們之前所說，中國還有更多的汽車許可正在順利進行，還有更多的物聯網垂直行業與消費者廣播。所以，是的，我們看到了增長的機會。我認為，也許更重要的是我們看到這項業務能夠持續很長時間。這是一項經常性收入業務。考慮到我們正在創新的專利，包括我們已經採用的新 5G 專利，我的意思是，我們認為這是幾十年來的機會。我想澄清這一點，這不是幾年，甚至不是十年，而是遠遠超過了。

Our next question comes from Achal Sultania of Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Achal Sultania。

Just another clarification on the Technologies business. I think last year you were mentioning already a EUR 350 million run rate every quarter. And now we've seen OPPO deal signed last quarter, we have another new licensee coming in this quarter, and still the run rate is EUR 1.4 billion. So I'm just surprised like -- is something else dragging the revenue run rate down, like any contract which has expired? Or there's been any renegotiation which has led to lower value?

只是對技術業務的另一個澄清。我想去年您已經提到了每個季度 3.5 億歐元的運行率。現在我們已經看到 OPPO 上季度簽署了協議，本季度又迎來了另一個新的被許可人，但運行率仍然是 14 億歐元。所以我很驚訝——是否還有其他因素拖累了收入運行率，比如任何已經到期的合同？或者有任何重新談判導致價值降低？

Yes, I think your thinking is correct. We have some new licensees that have added to the run rate, and then, we have some renewals that have reduced it. I think the key thing is that, as of now, we are at the EUR 1.4 billion level. And as Rajeev said, we're going to keep it there and improve it, and it's there for the long term.

是的，我認為你的想法是正確的。我們有一些新的被許可人增加了運行率，然後，我們有一些續訂降低了運行率。我認為關鍵是，截至目前，我們處於 14 億歐元的水平。正如 Rajeev 所說，我們將保留它並改進它，並且它會長期存在。

Our next question comes from Robert Sanders of Deutsche Bank.

我們的下一個問題來自德意志銀行的羅伯特·桑德斯。

I guess my question was on the China business. Clearly, it's going to be the biggest 5G market in the world, and yet you seem to be revisiting whether you want to be in this market in a major way. Is your strategy to sort of bring the share down to the single digits and participate selectively? Or is it just that, in the short term, you're going to be avoiding getting involved in trials where you're going to have to give equipment away, and then you're going to look to come back and maintain your sort of mid-teens to high-teens share in the long term?

我想我的問題是關於中國業務的。顯然，這將成為世界上最大的 5G 市場，但您似乎正在重新考慮是否要大力進入這個市場。您的策略是將份額降至個位數並有選擇地參與嗎？或者只是在短期內，你將避免參與必須放棄設備的試驗，然後你會尋求回來並維持你的那種從長遠來看，中十幾歲到十幾歲的份額？

Look, I think there's going to be a free-of-charge large, pre-commercial trial phase, where one is expected to preoccupy some territory. It's going to be costly. And then there will be a -- the actual commercial round later in the year, Q3. With all of the operators, it's also likely to require some up front losses to be crystallized, given that it's going to be aggressive without any commitments. And then you have to bank on those revenues coming downstream. So both from a short-term point of view as well as from a long-term point of view, we need to be careful and somewhat selective in how much we want to play in that game. Yes, it will be the largest market by volume but certainly not by value. And we can play a nuanced regional strategy as we have played before. If you recall the Nokia-Siemens networks, they use to quite some good effect.

看，我認為將會有一個免費的大型預商業試驗階段，預計將佔據一些領域。這將是昂貴的。然後，今年晚些時候，即第三季度，將會有真正的商業回合。對於所有運營商來說，考慮到它將在沒有任何承諾的情況下積極進取，因此也可能需要一些前期損失才能具體化。然後你必須依靠下游的這些收入。因此，無論是從短期角度還是從長期角度來看，我們都需要謹慎並有選擇性地選擇我們想在這場遊戲中玩多少。是的，從數量上看，這將是最大的市場，但從價值上看，這肯定不是最大的市場。我們可以像以前一樣採取細緻入微的區域戰略。如果您還記得諾基亞-西門子網絡，它們的使用效果相當不錯。

Having said that, we see opportunity on private wireless with enterprises there, straight-on companies. We're lucky to have a joint venture that helps us there. We see opportunities on the IP and optics side. We see opportunities on fixed networks still. So we can still differentiate our play where we see more healthy long-term margin profile.

話雖如此，我們看到了私人無線領域與企業、直接公司的機會。我們很幸運有一家合資企業可以在這方面為我們提供幫助。我們看到了 IP 和光學方面的機會。我們仍然看到固定網絡上的機會。因此，我們仍然可以在看到更健康的長期利潤狀況時使我們的策略與眾不同。

Our next question comes from Sébastien Sztabowicz of Kepler Cheuvreux.

我們的下一個問題來自 Kepler Cheuvreux 的 Sébastien Sztabowicz。

Do you see any opportunity in business within the $20 billion Rural Digital Opportunity Fund that's been launched by the U.S. government? And if yes, when do you expect that this opportunity could materialize in terms of revenue contribution?

您認為美國政府推出的 200 億美元農村數字機會基金有任何商業機會嗎？如果是，您預計這個機會何時能夠在收入貢獻方面實現？

I'm not sure I got the question. Was this on a public 5G network or...

我不確定我是否明白了這個問題。這是在公共 5G 網絡上還是......

It's on the $20 billion -- yes, exactly, the rural deployment of broadband in the U.S.

這是 200 億美元——是的，確切地說，是在美國農村地區部署寬帶。

Oh, yes, certainly we see opportunity there as well. I mean all things North America. All things 4G and 5G, we see opportunity. Beyond that, we also see industrial private wireless with utilities and transportation as opportunity. So yes, we do.

哦，是的，我們當然也在那裡看到了機會。我指的是北美的所有事物。4G 和 5G 的一切，我們都看到了機會。除此之外，我們還認為工業專用無線與公用事業和交通運輸是機遇。所以是的，我們願意。

And I guess it's fair to say that this is not only a U.S. phenomena. I think we see these government-backed rural opportunities also in other places around the world. There will be linkages between 5G licenses and the operators need to put kind of more capacity in work in rural areas. And some of that will be able to be done with fixed wireless access solutions and other parts of the portfolio that we have.

我想可以公平地說，這不僅僅是美國的現象。我認為我們在世界其他地方也看到了這些政府支持的農村機會。5G牌照與運營商需要在農村地區投入更多產能之間存在聯繫。其中一些可以通過固定無線接入解決方案和我們擁有的產品組合的其他部分來完成。

And we've seen this in -- these Universal Service Funds are not unique, as Kristin said. We've seen it in Saudi Arabia. We've seen it in India and other parts. And absolutely.

正如克里斯汀所說，我們已經看到了這一點，這些普遍服務基金並不是獨一無二的。我們在沙特阿拉伯已經看到了這一點。我們在印度和其他地區已經看到了這種情況。絕對是。

Our next question comes from Tal Liani of Bank of America.

我們的下一個問題來自美國銀行的塔爾·利亞尼。

I would like to focus on the gross margin. It's a major decline in gross margin, and I'm wondering if you can break it down. I tried to add back the $200 million to revenues. And even if I added that 90% margin just to see what's the impact on gross margin, it's still the gross margin is only 34.5% versus 39.5% that we expected. So I'm wondering what drives such a sharp decline in gross margin, and if you can break it down to the pieces or quantify. And then how long does it take you to go back to the 39%? I understand it's going to improve second half, but how long does it take it to go back to the 39%?

我想重點關注毛利率。這是毛利率的大幅下降，我想知道你是否可以將其分解。我試圖將這 2 億美元加回收入中。即使我添加 90% 的利潤率只是為了看看對毛利率有何影響，毛利率仍然只有 34.5%，而我們預期的為 39.5%。所以我想知道是什麼導致毛利率如此急劇下降，以及是否可以將其分解或量化。那麼你需要多長時間才能回到39%？我知道下半年會有所改善，但是需要多長時間才能回到39%？

So I think Rajeev already talked about the right side of the improvement, where will it come from. Let me kind of talk about what happened and maybe also remind you we said, going into the year, that we expected a soft first half and a robust second half and a particularly weak Q1. From a broad perspective, as we have highlighted in the past, it is typical that, in the early parts of a technology cycle, product costs are relatively high and then you improve them as you work through -- as the technology matures. In addition to that, we did experience several challenges in Q1. First, as you correctly pointed out, we were unable to recognize approximately EUR 200 million of 5G deliveries in North America. Secondly, we had a negative product mix. On the one hand, we did see lower mix of software sales due to the absence of software releases also for 4G in the quarter. In mobile access, we were also negatively impacted by having a higher proportion of network deployment services in the business mix. And then thirdly, in Services within Mobile Access, we were impacted by some cost overruns and some underperformance in 2 large programs -- projects driven by near-term 5G delays. But as Rajeev said, we are confident that we can drive focus and significant improvement in our execution in Services going forward. So I think that's it.

所以我認為 Rajeev 已經談到了改進的右側，它將來自哪裡。讓我談談發生的事情，也許還提醒您，我們說過，進入今年，我們預計上半年會疲軟，下半年會強勁，而第一季度會特別疲弱。從廣泛的角度來看，正如我們過去強調的那樣，通常情況下，在技術週期的早期階段，產品成本相對較高，然後隨著技術的成熟，您會在工作過程中對其進行改進。除此之外，我們在第一季度確實遇到了一些挑戰。首先，正如您正確指出的那樣，我們無法確認北美大約 2 億歐元的 5G 交付量。其次，我們的產品組合不佳。一方面，由於本季度沒有發布 4G 的軟件，我們確實看到軟件銷售組合有所下降。在移動接入方面，我們也因業務組合中網絡部署服務比例較高而受到負面影響。第三，在移動接入服務中，我們受到兩個大型項目（由近期 5G 延遲驅動的項目）的一些成本超支和一些績效不佳的影響。但正如 Rajeev 所說，我們有信心能夠在未來的服務執行中推動重點和重大改進。所以我想就是這樣。

Then in a way, how quick -- quickly things will come back, there you need to look at what we've said: first half, soft; second half, robust. So I think much more of this margin improvement is second half.

然後在某種程度上，事情會恢復得有多快，你需要看看我們所說的：上半場，軟；下半場，軟；下半場，軟。下半場，強勢。因此，我認為利潤率的改善更多是在下半年。

Our next question comes from Aleksander Peterc of Societe Generale.

我們的下一個問題來自法國興業銀行的亞歷山大·彼得克。

I'd just like you to come back a little bit on the EUR 200 million of revenue that you weren't able to recognize this quarter. Can you reassure us on the fact that there is virtually no risk that this will not be recognized in 2019? And also if this was supposed to be first quarter revenue, how come it may take you until the end of the year to get it recognized? Are there also any risks attached to that like additional cost overruns? Can this occur again in the future quarters? Just put a little bit of color on that.

我只是希望您能稍微回顧一下本季度您無法確認的 2 億歐元收入。您能否向我們保證，這一點在 2019 年幾乎不存在不被認可的風險？而且，如果這應該是第一季度的收入，為什麼要到年底才能得到確認？是否還存在額外成本超支等風險？這種情況會在未來幾個季度再次發生嗎？只需在上面塗一點顏色即可。

I think maybe I can start and, Rajeev, please chip in. I think what we are saying is that things are improving quickly. There will be some improvement already in the second quarter, but the full benefit of the EUR 200 million will come through in the second half. I don't think we are saying by the end of the year, we are saying during the second half. We do feel confident that we will be able to recognize this revenue. And when it comes to additional costs, that's not the topic here. It's more -- it takes some time to mature the software to the stage that it meets general availability as well as the customer commitments that we've made, and then we'll hit the recognition milestone.

我想也許我可以開始，拉吉夫，請幫忙。我認為我們所說的是事情正在迅速改善。第二季度已經有了一些改善，但 2 億歐元的全部效益將在下半年體現出來。我認為我們不是在說年底，而是在下半年。我們確實有信心能夠確認這筆收入。當談到額外成本時，這不是這裡的主題。更重要的是，需要一些時間才能使軟件成熟到滿足普遍可用性以及我們做出的客戶承諾的階段，然後我們將達到認可的里程碑。

I'll just add to that, Alex, is that we see cost reduction in Services in cost of sales happening in the remainder of the year, particularly in the second half. And then, as I said, more operational scale in Fixed Networks is going to help, and FP4 product cycle and PSE-3 optical product cycle as well as, like we said, Enterprise was only up about some 5%, and it'll be up -- overall, we expect it to be faster growing in the remainder of the year.

亞歷克斯，我要補充一點的是，我們看到今年剩餘時間，特別是下半年，銷售成本中的服務成本將會下降。然後，正如我所說，固定網絡更大的運營規模將會有所幫助，FP4 產品週期和 PSE-3 光學產品週期以及，正如我們所說，企業僅增長了約 5%，而且它將總體而言，我們預計今年剩餘時間增長速度會更快。

Our next question comes from Simon Leopold of Raymond James.

我們的下一個問題來自雷蒙德·詹姆斯的西蒙·利奧波德。

I wanted to see if we could maybe double click on the competitive environment. I appreciate you don't like to name names but I think a lot of subtle suggestions here I want to make sure I understand and maybe some things to clarify. Specifically, Erickson's not seeing these kind of margin pressures, which suggests maybe this is reflective of the geographic mix. And it also sounds like you're implying renewed pricing pressure in the Chinese market. I'm wondering if we should interpret this as China's revenge on the Huawei backlash. And lastly in this competitive question is we hear a lot of concern about Samsung's growing position. Maybe if you could help the folks put this in context.

我想看看我們是否可以雙擊競爭環境。我很感激你不喜歡指名道姓，但我認為這裡有很多微妙的建議，我想確保我理解，也許還有一些需要澄清的事情。具體來說，埃里克森沒有看到這種利潤壓力，這表明這可能反映了地域組合。聽起來您還暗示中國市場將面臨新的定價壓力。我想知道我們是否應該將此解讀為中國對華為強烈抵制的報復。最後，在這個競爭問題中，我們聽到了很多對三星地位不斷增長的擔憂。也許你可以幫助人們了解這一點。

Yes. There were quite a few questions there, Simon. So I think first, if I remember right, one of our competitors has also pointed to some competitive intensity. And again, this is a risk that we see. We're not seeing it right now. This is a risk that we see because a few competitors are seeking to be a little bit more aggressive. And number two, there are the security concerns, which require some swaps. And to mitigate full-scale swaps, we have come up with a technology approach to do it with a light LTE layer and then connect that to non-standalone architecture for 5G. China and this thing about is that a reaction? No. We saw it similarly in 4G. I think the only difference is volume-wise China is going to be much bigger in 5G, it's an industrial policy. And of course we'll play. We expect to play, but we need to be very sensible about how we play. There's no point playing just for top line and volume. That is not the business we're in. And so we'll have to balance that with what is the right margin profile. Other than that, there's nothing specific to say on competitive intensity. It's a risk that we see potentially.

是的。西蒙，有很多問題。所以我認為首先，如果我沒記錯的話，我們的一位競爭對手也指出了一些競爭強度。同樣，這是我們看到的風險。我們現在還沒有看到它。這是我們看到的風險，因為一些競爭對手正在尋求更具侵略性。第二，存在安全問題，需要進行一些交換。為了減輕全面交換的影響，我們提出了一種技術方法，使用輕型 LTE 層來實現這一點，然後將其連接到 5G 的非獨立架構。中國和這件事有關是一種反應嗎？不。我們在 4G 中也看到了類似的情況。我認為唯一的區別是中國在 5G 領域的規模將會更大，這是一項產業政策。我們當然會玩。我們期待比賽，但我們需要對比賽方式非常明智。僅僅為了營收和銷量而玩是沒有意義的。那不是我們從事的業務。因此，我們必須平衡這一點與正確的利潤狀況。除此之外，關於競爭強度沒有什麼具體可說的。這是我們潛在的風險。

And with this we'll close our Q&A session for today. Thank you for your questions today. I would now like to turn the call back to Rajeev.

今天的問答環節到此結束。感謝您今天提出的問題。我現在想把電話轉回拉吉夫。

Thank you, Matt, and Kristian, and thanks all for your questions.

謝謝馬特和克里斯蒂安，也感謝大家提出的問題。

I'd like to close with a few key thoughts. I mean Q1 was weak as we had expected, but we have continued reason for optimism as the year progresses. We understand the developments that impacted the first quarter, and they are expected to ease over the remainder of 2019. 5G is in its early stages, the ecosystem is not yet mature and Nokia is facing some near-term challenges of our own. But overall, we see things improving quickly and surely. We have a portfolio that is unique for the 5G era. As I noted in my remarks, more than half of our 5G wins include elements of our portfolio that at least one of our competitors simply does not have. We're also seeing real evidence of what I have called the virtual circle of investment, and that is growth in IP and Optical as operators modernize their transport capability in advance of 5G. Our strategy is also paying off as see good progress in licensing, in software and in our expansion in the Enterprise segment. Still, plenty of work to do in all areas, but momentum is with us. Yes, there are risks, as I shared earlier, but overall, we remain confident in our ability to deliver in 2019 and have an even better 2020.

我想以一些關鍵想法作為結束語。我的意思是，第一季度的表現如我們預期的那樣疲弱，但隨著時間的推移，我們仍有理由保持樂觀。我們了解影響第一季度的事態發展，預計這些事態發展將在 2019 年剩餘時間內緩解。5G 仍處於早期階段，生態系統尚未成熟，諾基亞也面臨著一些近期挑戰。但總體而言，我們看到事情正在迅速而肯定地改善。我們擁有 5G 時代獨一無二的產品組合。正如我在發言中指出的那樣，我們一半以上的 5G 勝利都包含了我們產品組合中的元素，而這些元素至少是我們的競爭對手所不具備的。我們還看到了我所說的虛擬投資圈的真實證據，即隨著運營商在 5G 之前實現傳輸能力現代化，IP 和光纖的增長。我們的戰略也取得了回報，在許可、軟件和企業領域的擴張方面取得了良好進展。儘管如此，各個領域仍有大量工作要做，但我們的勢頭依然強勁。是的，正如我之前分享的那樣，存在風險，但總體而言，我們對 2019 年的交付能力和 2020 年的業績充滿信心。

With that, thank you very much for your time and attention. And I'll now hand it back over to Matt.

在此，非常感謝您的時間和關注。現在我將把它交還給馬特。

Ladies and gentlemen, this concludes our conference call. I would like to remind you that during the conference call today, we have made a number of forward-looking statements that involve risk and uncertainties. Actual results may therefore differ materially from the results currently expected. Factors that could cause such differences can be both external, such as general, economic and industry conditions, as well as internal operating factors. We have identified these in more detail on Pages 60 through 75 of our 2018 annual report on Form 20-F, our financial report for Q1 issued today as well as our other filings with the U.S. Securities and Exchange Commission. Thank you.

女士們先生們，我們的電話會議到此結束。我想提醒大家，在今天的電話會議中，我們做出了一些涉及風險和不確定性的前瞻性陳述。因此，實際結果可能與當前預期的結果存在重大差異。可能導致這種差異的因素既可以是外部因素，例如總體經濟和行業狀況，也可以是內部運營因素。我們在 2018 年年度報告 20-F 表格第 60 至 75 頁、今天發布的第一季度財務報告以及向美國證券交易委員會提交的其他文件中更詳細地確定了這些內容。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。