Of the total EUR1.7 billion, EUR 640 million has already been recorded as of the third quarter. Nokia now expects EUR 700 million of the total restructuring and associated charges to be recorded this year, EUR 800 million next year, and EUR 200 million in full year 2018.

Nokia also wants to grow its dividend by distributing 40-70 percent of adjusted earnings per share, taking into account Nokia's cash position and expected cash flow generation. For 2016, Nokia is aiming to propose a dividend of EUR 0.17 per share, subject to shareholder approval in 2017.  

CEO Rajeev Suri is confident the company is “extremely” well-positioned to win in its primary market with communication service providers and that it will be fully free cash flow positive in full year 2018. Free cash flow this year will still be affected by the cost savings programme. Next year it will be slightly positive.

The new strategy builds upon the company’s enhanced portfolio, bolstered by the acquisition of Alcatel-Lucent, with four key priority areas outlined for the next two years at least. Nokia said it wants to lead in high-performance, end-to-end networks with communication service providers; expand network sales to select vertical markets needing high-performing and secure networks; build a strong, standalone software business; and create new business and licensing opportunities in the consumer ecosystem.

Over the long term, the company will seek to grow net sales for Nokia's Networks business faster than its primary addressable market through continued industry leadership and disciplined expansion, plus diversification to adjacent markets. Nokia's primary addressable market size is EUR 113 billion in 2016, and is expected to have a 5-year compound annual growth rate of about 1 percent. Nokia's adjacent addressable market size is EUR 18 billion in 2016, and is expected to have a 5-year CAGR of 13 percent. Nokia is targeting long-term operating margin range for Nokia's Networks business at 10-15 percent, with all Networks business groups expected to contribute double-digit long-term operating margin. If the market environment and Nokia's execution are both in-line with Nokia's expectations, Nokia expects operating margin to be around the midpoint of this range. The company said its target is also to maintain total cash and other liquid assets at 30 percent of its annual net sales over time.

For 2017, Nokia expects net sales for Nokia's Networks business to decline in line with its primary addressable market in full year 2017, pulled down also by competitive industry dynamics, product and regional mix, the timing of major network deployments and the execution of its cost savings plan. The operating margin seen at 8-10 percent.

The company said it will not give a full 2017 outlook for Nokia Technologies but added it does expect net revenues related to patent and brand licensing to grow to a run rate of EUR 950 million by the end of 2016. Total net revenues from Digital Health and Digital Media will increase year-on-year in full year 2017, primarily influenced by increased consumer adoption of our Digital Health and Digital Media products.

Capex for next year is seen at EUR 500 million, primarily due to expenses at Nokia's Networks business.