Premise At the 2017 CES, ‘HMD Global OY’ announced that the will continue the manufacturing, production and distribution of ‘Nokia’ branded smartphones. Strictly speaking HMD Global is still a Finnish start-up that is less than one year old. Its public launch in late 2016 followed a complicated story of naming rights, patents and product lines drawn from Nokia, Microsoft, and Foxconn. Broadly speaking HMD licences the Nokia name and various IP rights from the Finnish legend, acquired the Nokia branded manufacturing business from Microsoft and signed agreements with Foxconn subsidiary FIH to manufacture mobile hardware. Tasks: 1. Define the business strategy of ‘HMD Global OY’ & ‘Nokia’ in bringing out the new ‘Nokia’ smartphone (~500 words) a. Uniqueness of a product b. Level of profit margins c. Creation of Brand Loyalty d. Control of Costs 2. Why did Nokia’s market share drop below $2 in 2012? (~200 words) 3. Financial Report Analysis of gains and losses ratios of ‘Nokia’ in 2012,2013, 2016 a. Please refer to the spreadsheet attached (Ratios.xlsx) to fill out the necessary ratios i. Please fill out Profit and Loss for each year ended ii. Please fill out Balance Sheet iii. Please calculate and fill out all the Ratios b. Please refer to the annual reports attached 4. Analyze current (2017) profitability and risk of ‘Nokia’ & ‘HMD Global OY’ (~2500 words) a. Please refer to the financial sheets attached b. Discounted Cash Flow (DNF) analysis – estimate a company’s future cash flows and discount them back to the future at an estimated discount rate. c. Relative value analysis – fundamental metrics and valuation ratios (price to sales, price to earnings, P/E to growth, etc.) are compared to competitors (Google, Apple and Samsung) d. Book Value – try to estimate what a company might be worth if broken up or liquidated e. Risk Valuation – measure and quantify the level of financial risk within Nokia of investing into ‘HMD’.