Nokia Newsroom FAQ – COVID-19
1. What steps have you taken to protect your employees?
We are monitoring the situation closely to ensure the safety of our employees in this fast-moving situation.
To date we have taken a range of steps, including banning international travel for Nokia employees, except for strictly-defined ‘critical’ reasons; closing all our facilities to all visitors, with the exception of people engaged in essential maintenance and services, and asking our staff to work from home wherever possible. We started implementing these measures in some regions in January already and have updated guidance as the situation has developed. We have also reminded everyone that if local authority decisions or directions vary from our policies, it is the local, stricter decisions that must be followed.
Other actions include enhanced building hygiene measures across our facilities, and clear advice on how staff can mitigate risks by maintaining good personal hygiene.
We are also providing guidance on how staff can maintain a healthy work-life balance and look after their physical and mental well-being.
These actions demonstrate our strong commitment to supporting global efforts to end the pandemic and overcoming the disruption and challenges we currently face.
2. Have you implemented new policies due to COVID-19?
Yes, we distributed updated guidance to all our employees in early March. The actions are consistent with a change in global efforts to control the virus.
Our primary goal with this policy is to protect Nokia employees from health risks. We are also seeking to provide added flexibility for managing work-life balance challenges as various public and private services are adjusted in response to the virus and, where possible, ensuring we meet our customer and contractual commitments.
3. How do you ensure you keep delivering to your customers?
We are active in a number of areas, designed primarily to keep everyone safe and to keep networks functioning well, worldwide. We have already made all our customer meetings virtual, prohibited all but the most essential travel and implemented a ‘work from home’ policy on a country-by-country basis, as appropriate. We have established a global command center to manage the supply chain challenges arising from the outbreak; and we are ready to activate relevant business continuity plans should the situation in any part of our organization require this.
Naturally, these measures change how we work at present, and we are making every effort to ensure the impact on all our customers is minimized and mitigated. We continue to work closely with all our customers, to ensure that the changing needs and requirements at this time are well understood and that we respond appropriately to them.
With so many people confined to their homes, the connectivity we provide and the critical services we support are essential to the proper functioning of society.
4. Has the coronavirus had an impact on your supply operations?
Nokia has a global manufacturing footprint designed for optimized global supply, and to mitigate against risks such as local disruptive events, transportation capacity problems, and political risks. Our supply network consists of 25 factories around the globe and 6 hubs for customer fulfillment. As a result, we are not dependent on one location or entity. But we have also established a global command center to manage the supply chain challenges arising from the outbreak; and we are ready to activate relevant business continuity plans should the situation in any part of our organization require this.
5. Can you provide an update on your financial liquidity situation?
Nokia is in a good position with regards to financial liquidity. We ended 2019 with 6 billion euros of cash. We also have a 1.5 billion euro revolving credit facility that was renewed last year and that has not been used yet.
Additionally, we increased our liquidity at the end of February 2020 by drawing on the loans facility we had signed with EIB in 2018.
Nokia does not have any debt repayments due in 2020 and all of our debt is financial covenant free.