2009-07-16 12:00:00 CEST
2009-07-16 12:00:03 CEST
REGULATED INFORMATION
Nokia - Interim report (Q1 and Q3)
Nokia Q2 2009 net sales EUR 9.9 billion, non-IFRS EPS EUR 0.15 (reported EPS EUR 0.10)
Nokia Corporation
Interim Report
July 16, 2009 at 13.00 (CET +1)
Nokia Q2 2009 net sales EUR 9.9 billion, non-IFRS EPS EUR 0.15 (reported EPS EUR
0.10)
Non-IFRS operating margin in Devices & Services up sequentially to 12.2%
(reported 11.6%)
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| | Non-IFRS second quarter 2009 results1,2,3 |
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| | | | YoY | | QoQ |
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| EUR million | Q2/2009 | Q2/2008 | Change | Q1/2009 | Change |
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| Net sales | 9 913 | 13 155 | -24.6% | 9 276 | 6.9% |
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| Devices & Services | 6 586 | 9 090 | -27.5% | 6 173 | 6.7% |
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| NAVTEQ | 148 | | | 134 | 10.4% |
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| Nokia Siemens | 3 199 | 4 071 | -21.4% | 2 990 | 7.0% |
| Networks | | | | | |
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| | | | | | |
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| Operating profit | 775 | 2 054 | -62.3% | 514 | 50.8% |
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| Devices & Services | 802 | 1 824 | -56.0% | 642 | 24.9% |
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| NAVTEQ | 19 | | | 5 | 280.0% |
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| Nokia Siemens | 2 | 274 | -99.3% | -122 | |
| Networks | | | | | |
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| | | | | | |
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| Operating margin | 7.8% | 15.6% | | 5.5% | |
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| Devices & Services | 12.2% | 20.1% | | 10.4% | |
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| NAVTEQ | 12.8% | | | 3.7% | |
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| Nokia Siemens | 0.1% | 6.7% | | -4.1% | |
| Networks | | | | | |
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| | | | | | |
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| EPS, EUR Diluted | 0.15 | 0.37 | -59.5% | 0.10 | 50.0% |
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| | Reported second quarter 2009 results1,3 |
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| | | | YoY | | QoQ |
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| EUR million | Q2/2009 | Q2/2008 | Change | Q1/2009 | Change |
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| Net sales | 9 912 | 13 151 | -24.6% | 9 274 | 6.9% |
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| Devices & Services | 6 586 | 9 090 | -27.5% | 6 173 | 6.7% |
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| NAVTEQ | 147 | | | 132 | 11.4% |
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| Nokia Siemens | 3 199 | 4 067 | -21.3% | 2 990 | 7.0% |
| Networks | | | | | |
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| | | | | | |
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| Operating profit | 427 | 1 474 | -71.0% | 55 | 676.4% |
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| Devices & Services | 763 | 1 565 | -51.2% | 547 | 39.5% |
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| NAVTEQ | -100 | | | -120 | -16.7% |
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| Nokia Siemens | -188 | -47 | 300.0% | -361 | -47.9% |
| Networks | | | | | |
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| | | | | | |
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| Operating margin | 4.3% | 11.2% | | 0.6% | |
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| Devices & Services | 11.6% | 17.2% | | 8.9% | |
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| NAVTEQ | -68.0% | | | -90.9% | |
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| Nokia Siemens | -5.9% | -1.2% | | -12.1% | |
| Networks | | | | | |
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| | | | | | |
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| EPS, EUR Diluted | 0.10 | 0.29 | -65.5% | 0.03 | 233.3% |
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Note 1 relating to NAVTEQ: On July 10, 2008, Nokia completed the acquisition of
NAVTEQ Corporation. NAVTEQ is a separate reportable segment of Nokia starting
from the third quarter 2008. Accordingly, the results of NAVTEQ are not
available for the prior periods.
Note 2 relating to non-IFRS results: Non-IFRS results exclude special items for
all periods. In addition, non-IFRS results exclude intangible asset
amortization, other purchase price accounting related items and inventory value
adjustments arising from i) the formation of Nokia Siemens Networks and ii) all
business acquisitions completed after June 30, 2008. More specific information
about the exclusions from the non-IFRS results may be found in this press
release on pages 3, 10 and 13-17.
Nokia believes that these non-IFRS financial measures provide meaningful
supplemental information to both management and investors regarding Nokia's
performance by excluding the above-described items that may not be indicative of
Nokia's business operating results. These non-IFRS financial measures should not
be viewed in isolation or as substitutes to the equivalent IFRS measure(s), but
should be used in conjunction with the most directly comparable IFRS measure(s)
in the reported results. A reconciliation of the non-IFRS results to our
reported results for Q2 2009 and Q2 2008 can be found in the tables on pages 10
and 13-17 of this press release. A reconciliation of our Q1 2009 non-IFRS
results can be found on pages 12-16 of our Q1 2009 Interim Report of April 16,
2009.
Note 3: Nokia reported net sales were EUR 19 186 million and earnings per share
(diluted) were EUR 0.13 for the period from January 1 to June 30, 2009. Further
information about the results for the period from January 1 to June 30, 2009 can
be found in this press release on pages 9, 11, and 18-23.
SECOND QUARTER 2009 HIGHLIGHTS
- Nokia net sales of EUR 9.9 billion, down 25% year on year and up 7%
sequentially (down 24% and up 7% at constant currency).
- Devices & Services net sales of EUR 6.6 billion, down 28% year on year and up
7% sequentially (down 28% and up 7% at constant currency), and non-IFRS
operating margin of 12.2% (20.1% in Q2 2008).
- Devices & Services gross margin of 34.0%, up from 33.8% in Q1 2009.
- Services net sales of EUR 140 million (billings of EUR 207 million). Due to
the divestment of the security appliance business in April 2009, services net
sales are not directly comparable to prior periods.
- Estimated industry mobile device volumes of 268 million units, down 12% year
on year and up 5% sequentially.
- Nokia mobile device volumes of 103.2 million units, down 15% year on year and
up 11% sequentially.
- Nokia estimated mobile device market share of 38% in Q2 2009, down from 40% in
Q2 2008 and up from 37% in Q1 2009.
- Nokia mobile device ASP of EUR 62, down from EUR 65 in Q1 2009.
- NAVTEQ net sales of EUR 147 million, up 11% sequentially, and non-IFRS
operating margin of 12.8% (3.7% in Q1 2009)
- Nokia Siemens Networks net sales of EUR 3.2 billion, down 21% year on year and
up 7% sequentially (down 20% and up 8% at constant currency), and non-IFRS
operating margin of 0.1% (6.7% in Q2 2008)
- Nokia operating cash flow of EUR 716 million.
- Total cash and other liquid assets of EUR 7.0 billion at the end of Q2 2009.
OLLI-PEKKA KALLASVUO, NOKIA CEO:
“Nokia put in a solid performance in what was another tough quarter. We
increased our share of the global mobile device market sequentially to an
estimated 38% and grew our smartphone market share to an estimated 41%. As a
result of strong operational execution, underlying operating margins improved
sequentially in all segments. Competition remains intense, but demand in the
overall mobile device market appears to be bottoming out. As before, we are
continuing to tightly manage our operating expenses.
We are balancing short-term priorities with our longer-term growth ambitions as
elements of the mobile handset, PC, internet and media industries converge to
form a new industry. Consumers will increasingly expect devices and services
designed as integrated solutions. To capture this opportunity we are
accelerating our strategic transformation into a solutions company.”
INDUSTRY AND NOKIA OUTLOOK
- Nokia expects industry mobile device volumes in the third quarter 2009 to be
at approximately the same level or up slightly sequentially.
- Nokia expects its mobile device market share in the third quarter 2009 to be
approximately at the same level sequentially.
- Nokia continues to expect 2009 industry mobile device volumes to decline
approximately 10% from 2008 levels.
- Nokia now expects its market share in mobile devices to be approximately flat
in 2009, compared with 2008. This is an update to Nokia's earlier target to
increase its market share in mobile devices in 2009.
- Nokia now expects its non-IFRS operating margin in Devices & Services in the
second half 2009 to be at approximately the same level as in the first half
2009. This is an update to Nokia's earlier target for the non-IFRS operating
margin in Devices & Services to be in the teens for the second half 2009.
- Nokia and Nokia Siemens Networks continue to expect the mobile infrastructure
and fixed infrastructure and related services market to decline approximately
10% in Euro terms in 2009, from 2008 levels.
- Nokia and Nokia Siemens Networks now expect Nokia Siemens Networks market
share to decline moderately in 2009, compared to 2008, with a strong performance
in its Services business unit expected to be offset by declines in certain
product businesses. This is an update to Nokia and Nokia Siemens Networks
earlier target for Nokia Siemens Networks market share to remain constant in
2009, compared to 2008.
SECOND QUARTER 2009 FINANCIAL HIGHLIGHTS
(Comparisons are given to the second quarter 2008, unless otherwise indicated.)
The non-IFRS results exclusions
Q2 2009 — EUR 348 million (net) consisting of:
- EUR 22 million of impairment of intangible assets in Devices & Services
- EUR 83 million restructuring charge in Devices & Services
- EUR 68 million gain on sale of security appliance business in Devices &
Services
- EUR 69 million restructuring charge and other one-time items in Nokia Siemens
Networks
- EUR 121 million of intangible assets amortization and other purchase price
related items arising from the formation of Nokia Siemens Networks
- EUR 119 million of intangible assets amortization and other purchase price
related items arising from the acquisition of NAVTEQ
- EUR 2 million of intangible assets amortization and other purchase price
related items arising from the acquisition of OZ Communications in Devices &
Services
Q1 2009 — EUR 459 million consisting of:
- EUR 34 million of impairment of intangible assets in Devices & Services
- EUR 59 million restructuring charge in Devices & Services
- EUR 123 million restructuring charge and other one-time items in Nokia Siemens
Networks
- EUR 116 million of intangible assets amortization and other purchase price
related items arising from the formation of Nokia Siemens Networks
- EUR 125 million of intangible assets amortization and other purchase price
related items arising from the acquisition of NAVTEQ
- EUR 2 million of intangible assets amortization and other purchase price
related items arising from the acquisition of OZ Communications in Devices &
Services
Q2 2008 — EUR 580 million consisting of:
- EUR 259 million of charges related to closure of the Bochum site in Germany in
Devices & Services
- EUR 201 million restructuring charge and other one-time items in Nokia Siemens
Networks
- EUR 120 million of intangible assets amortization and other purchase price
related items arising from the formation of Nokia Siemens Networks
Non-IFRS results exclude special items for all periods. In addition, non-IFRS
results exclude intangible asset amortization, other purchase price accounting
related items and inventory value adjustments arising from i) the formation of
Nokia Siemens Networks and ii) all business acquisitions completed after June
30, 2008.
Nokia Group
Nokia's second quarter 2009 net sales decreased 25% to EUR 9.9 billion, compared
with EUR 13.2 billion in the second quarter 2008. At constant currency, Group
net sales would have decreased 24% year on year and increased 7% sequentially.
The following chart sets out the year on year and sequential growth rates in our
net sales on a reported basis and at constant currency for the periods
indicated.
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| NOKIA SECOND QUARTER 2009 NET SALES |
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| Reported & Constant Currency1 |
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| | Q2/2009 | Q2/2009 |
| | vs. | vs. |
| | Q2/2008 | Q1/2009 |
| | Change | Change |
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| Group net sales - reported | -25% | 7% |
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| Group net sales - constant currency1 | -24% | 7% |
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| | | |
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| Devices & Services net sales - reported | -28% | 7% |
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| Devices & Services net sales - constant | -28% | 7% |
| currency1 | | |
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| Nokia Siemens Networks net sales - | -21% | 7% |
| reported | | |
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| Nokia Siemens Networks net sales - | -20% | 8% |
| constant currency1 | | |
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| Note 1: Change in net sales at constant currency excludes the impact of |
| changes in exchange rates in comparison to the Euro, our reporting currency. |
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Nokia's second quarter 2009 reported operating profit decreased 71% to EUR 427
million, compared with EUR 1.5 billion in the second quarter 2008. Nokia's
second quarter 2009 non-IFRS operating profit decreased 62% to EUR 775 million,
compared with EUR 2.1 billion in the second quarter 2008. Nokia's second quarter
2009 reported operating margin was 4.3% (11.2%). Nokia's second quarter 2009
non-IFRS operating margin was 7.8% (15.6%).
Operating cash flow for the second quarter 2009 was EUR 716 million. Operating
cash flow for the second quarter 2008 was EUR 1.5 billion. Total cash and other
liquid assets were EUR 7.0 billion at June 30, 2009, compared with EUR 8.0
billion at June 30, 2008. At June 30, 2009, Nokia's net debt-equity ratio
(gearing) was -10%, compared with -47% at June 30, 2008.
Devices & Services
In the second quarter 2009, the total mobile device volumes of our Devices &
Services group were 103.2 million units, representing a decline of 15% year on
year and an 11% increase sequentially. The overall industry mobile device
volumes for the same period were 268 million units based on Nokia's preliminary
estimate, representing a 12% year on year decrease and a 5% sequential increase.
The lower device volumes year on year for Nokia and the industry continued to be
driven by the negative impact of the deteriorated global economic conditions,
including weaker consumer and corporate spending, constrained credit
availability and currency market volatility. The sequential industry device
volume increase primarily reflected seasonality in the second quarter. Nokia
volumes also benefited sequentially from a more stable inventory situation in
the operator and distributor channels. Nokia's mobile device market share was an
estimated 38% in the second quarter 2009, down from 40% in the second quarter
2008 and up from 37% in the first quarter 2009.
Of the total industry mobile device volumes, converged mobile device industry
volumes in the second quarter 2009 increased to 41.0 million units, based on
Nokia's preliminary estimate, compared with an estimated 37.1 million units in
the second quarter 2008, and 36.0 million units in the first quarter 2009. Our
own converged mobile device volumes were 16.9 million units in the second
quarter 2009, compared with 15.3 million units in the second quarter 2008 and
13.7 million units in the first quarter 2009. Nokia's share of the converged
device market was an estimated 41% in the second quarter 2009, unchanged from
41% in the second quarter 2008 and up from 39% in the first quarter 2009. We
shipped 4.6 million Nokia Nseries and 4.7 million Nokia Eseries devices during
the second quarter 2009, up from the combined 8.2 million Nseries and Eseries
devices we shipped in the first quarter 2009.
The following chart sets out our mobile device volumes for the periods
indicated, as well as the year on year and sequential growth rates, by
geographic area.
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| NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA |
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| (million units) | Q2/2009 | Q2/2008 | YoY Change | Q1/2009 | QoQ |
| | | | | | Change |
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| Europe | 23.3 | 27.1 | -14.0% | 22.3 | 4.5% |
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| Middle East & | 18.9 | 21.1 | -10.4% | 14.8 | 27.7% |
| Africa | | | | | |
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| Greater China | 18.6 | 17.6 | 5.7% | 17.9 | 3.9% |
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| Asia-Pacific | 30.3 | 36.4 | -16.8% | 28.2 | 7.4% |
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| North America | 3.2 | 4.5 | -28.9% | 3.4 | -5.9% |
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| Latin America | 8.9 | 15.3 | -41.8% | 6.6 | 34.8% |
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| Total | 103.2 | 122.0 | -15.4% | 93.2 | 10.7% |
--------------------------------------------------------------------------------Based on our preliminary market estimate, Nokia's mobile device market share for
the second quarter 2009 was 38%, compared with 40% in the second quarter 2008
and 37% in the first quarter 2009. Our year on year market share decline was
driven primarily by lower market share in Latin America, Asia-Pacific and North
America. This was partially offset by a slightly higher market share in Greater
China, Europe and Middle East & Africa. Sequentially, our market share declined
in North America, but this decline was more than offset by our increased market
share in Middle East & Africa, Greater China, Europe, Asia-Pacific and Latin
America.
Our mobile device average selling price (ASP) in the second quarter 2009 was EUR
62, down from EUR 74 in the second quarter 2008 and EUR 65 in the first quarter
2009. Both the year on year and sequential ASP declines were primarily due to
general price pressure and a higher proportion of sales of lower priced
products. Our second quarter 2009 ASP benefited from sales of new high-end
products, compared to the first quarter 2009.
Second quarter 2009 Devices & Services net sales declined 28% to EUR 6.6
billion, compared with EUR 9.1 billion in the second quarter 2008. Devices &
Services net sales were down year on year in all geographic areas. At constant
currency, Devices & Services net sales would have decreased 28%. The net sales
decline resulted primarily from lower volumes, combined with the ASP decline,
compared with the second quarter 2008. Of our total Devices & Services net
sales, services contributed EUR 140 million in the second quarter 2009,
representing 18% year on year growth and a 7% sequential decrease. Nokia
completed the divestment of its security appliances business in April 2009 and
accordingly services net sales for periods from April 1, 2009 are not directly
comparable to services net sales of any prior periods.
Devices & Services reported gross profit and non-IFRS gross profit decreased 32%
to EUR 2.2 billion, compared with EUR 3.3 billion in the second quarter 2008,
with a reported and non-IFRS gross margin of 34.0% (36.1%). The year on year
gross margin decrease was primarily due to a higher proportion of sales of lower
end, lower margin devices and a lower proportion of sales of new high-end,
higher margin devices, as well as general price pressure.
Devices & Services reported operating profit decreased 51% to EUR 763 million,
compared with EUR 1.6 billion in the second quarter 2008, with a reported
operating margin of 11.6% (17.2%). Devices & Services non-IFRS operating profit
decreased 56% to EUR 802 million, compared with EUR 1.8 billion in the second
quarter 2008, with a non-IFRS operating margin of 12.2% (20.1%). The 56% year on
year decrease in non-IFRS operating profit for the second quarter 2009 was due
primarily to lower net sales compared with the second quarter 2008. The impact
of lower net sales was somewhat mitigated by a reduction in our cost of sales
and operating expenses during the second quarter 2009.
NAVTEQ
(Comparisons are given to the first quarter 2009)
Second quarter 2009 NAVTEQ net sales increased 11% sequentially to EUR 147
million, compared with EUR 132 million in the first quarter 2009, reflecting a
slight pick-up in demand for auto navigation systems. NAVTEQ reported gross
profit was EUR 126 million (EUR 116 million), with a gross margin of 85.7%
(87.5%). Non-IFRS gross profit was EUR 127 million (EUR 117 million), with a
non-IFRS gross margin of 85.8% (87.3%). NAVTEQ had a reported operating loss of
EUR 100 million (EUR 120 million loss). The reported operating margin was -68.0%
(-90.9%). NAVTEQ non-IFRS operating profit was EUR 19 million (EUR 5 million),
with a non-IFRS operating margin of 12.8% (3.7%).
Nokia Siemens Networks
Second quarter 2009 net sales decreased 21% to EUR 3.2 billion, compared with
EUR 4.1 billion in the second quarter 2008, reflecting challenging market
conditions and competitive factors. At constant currency, Nokia Siemens Networks
net sales would have decreased 20%.
The following chart sets out Nokia Siemens Networks net sales for the periods
indicated, as well as the year on year and sequential growth rates, by
geographic area.
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| NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA |
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| EUR million | Q2/2009 | Q2/2008 | YoY | Q1/2009 | QoQ |
| | | | Change | | Change |
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| Europe | 1 209 | 1 412 | -14.4% | 1 097 | 10.2% |
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| Middle East & Africa | 459 | 553 | -17.0% | 436 | 5.3% |
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| Greater China | 353 | 413 | -14.5% | 284 | 24.3% |
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| Asia-Pacific | 648 | 1 076 | -39.8% | 692 | -6.4% |
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| North America | 208 | 158 | 31.6% | 169 | 23.1% |
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| Latin America | 322 | 455 | -29.2% | 312 | 3.2% |
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| Total | 3 199 | 4 067 | -21.3% | 2 990 | 7.0% |
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Nokia Siemens Networks reported gross profit decreased 25% to EUR 860 million,
compared with EUR 1.1 billion in the second quarter 2008, with a gross margin of
26.9% (28.2%). Nokia Siemens Networks non-IFRS gross profit decreased 30% to EUR
897 million, compared with EUR 1.3 billion in the second quarter 2008, with a
non-IFRS gross margin of 28.0% (31.5%). The lower year on year non-IFRS gross
profit in the second quarter 2009 was due primarily to lower year on year net
sales.
Nokia Siemens Networks had a second quarter 2009 reported operating loss of EUR
188 million compared with an operating loss of EUR 47 million in the second
quarter 2008, with an operating margin of -5.9% (-1.2%). Nokia Siemens Networks
non-IFRS operating profit was EUR 2 million in the second quarter 2009, compared
with a non-IFRS operating profit of EUR 274 million in the second quarter 2008,
with a non-IFRS operating margin of 0.1% (6.7%). The year on year decline in
Nokia Siemens Networks non-IFRS operating profit primarily reflected lower net
sales.
Q2 2009 OPERATING HIGHLIGHTS
Devices & Services
- Nokia continued to take action to adjust its business operations and cost base
in accordance with market demand as well as seek savings in operational
expenses, looking at all areas and activities across Devices & Services and
global support functions:
- Nokia announced plans to streamline its Services organization, including
measures that are targeted to open up greater opportunities for third party
partner services. Approximately 450 employees globally are affected by the
plans.
- Nokia announced plans to improve cost-efficiency in logistics, production
management and production support operations, with approximately 170 employees
globally affected.
- Nokia announced a targeted voluntary resignation package for up to 320
employees at its mobile device manufacturing facility in Salo, Finland. The
scheme was fully subscribed.
- Nokia commenced shipments of the Nokia N97, its flagship smartphone and the
first device to ship with the integrated Ovi Store, a one-stop-shop for
applications and content for millions of Nokia device users and another critical
element of our evolving Ovi internet services offering. Ovi Store launched in
late May and by the end of the quarter it had attracted downloads from people in
more than 180 countries.
- In the area of music, Nokia benefited from the continued strong performance by
the Nokia 5800 XpressMusic, its first mass market touch product, which shipped
3.7 million units during the quarter. More than 6.8 million units have shipped
since the device began shipping in late November last year. During the second
quarter, Nokia further strengthened its offering of devices optimized for music,
announcing the Nokia 5530 XpressMusic, a compact touch-screen device. Nokia also
extended its Comes With Music service - an ‘all-you-can-eat' music offer where
users can download freely millions of tracks for a pre-defined period of time
and keep those tracks once the period is up - to Brazil, Germany, Italy, Mexico,
Sweden and Switzerland. Additionally, Nokia extended Nokia Music Store, with the
chain of digital music stores now covering 21 countries in total.
- Nokia Messaging, Nokia's consumer email service, continued to gain traction
among operators with six new agreements announced in the second quarter. By the
end of the quarter, Nokia Messaging was available to Nokia users in more than 40
countries. Additionally, by the end of the quarter, approximately 600 000 people
had activated an Ovi Mail account. Ovi Mail is an email solution developed
especially for consumers in emerging markets.
- Nokia started shipments of the Nokia E75, its flagship email device, and the
Nokia N86 8MP, its flagship imaging device. Nokia also announced the Nokia E72,
its latest full QWERTY smartphone and the successor to the highly popular Nokia
E71. Cumulative shipments of the Nokia E71 reached 5 million during the quarter.
- Nokia made Nokia Life Tools commercially available across India. Nokia Life
Tools is an innovative offering of agriculture information, education and
entertainment services targeted at non-urban consumers in emerging markets.
Nokia Life Tools is available on the new Nokia 2330 classic and the Nokia 2323
classic, and will also be made available on other enabled devices.
- Nokia announced the Nokia 6216 classic, its first SIM-based Near Field
Communication (NFC) device which enables operators to build NFC services on to
the SIM card.
- Nokia commenced shipments of its first 3G mobile device in Korea. The 6210s is
a competitively priced smartphone with a slide form factor and is available
through local operator KTF.
- Nokia expanded its network of research laboratories with the opening of Nokia
Research Center, Berkeley, in California in the United States.
- Nokia and Intel Corporation announced that they will work together to develop
a new class of Intel® Architecture-based mobile computing device and chipset
architectures that will combine the performance of powerful computers with
high-bandwidth mobile broadband communications and ubiquitous Internet
connectivity. The two companies share a vision of a new class of standards-based
mobile computing platforms that provide an always-on, always-connected
experience and offer the performance to deliver PC-like Internet experiences
across a new class of services.
NAVTEQ
- NAVTEQ announced the availability of dynamic content delivery for HD Radio™
systems in North America, accelerating the delivery of content including
traffic, weather and fuel prices.
- NAVTEQ launched NAVTEQ LocationPoint™, a location-based advertising service
for mobile devices, in several European countries.
- NAVTEQ announced the availability of Motorway Junction Objects, which enables
navigation systems to display full 3D animation of complex junctions, in
Australia with expansion planned to include the United States and Europe.
- NAVTEQ announced a contract extension with MSN® Direct for NAVTEQ Traffic™,
supporting Microsoft's Live Search Maps web-based service and as part of the MSN
Direct connected services bundle.
- NAVTEQ announced that it has signed an agreement with Samsung Electronics
providing access to all countries in the NAVTEQ database as well as NAVTEQ's
Visual Content, Speed Limits, Extended Lanes and NAVTEQ Discover Cities™.
Nokia Siemens Networks
- In June, Nokia Siemens Networks reached an agreement to acquire CDMA and LTE
assets from Nortel in a USD 650 million transaction that remains subject to the
approvals of the relevant bankruptcy courts in North America as well as
customary closing conditions.
- Nokia Siemens Networks strengthened its capital structure with the completion
of a EUR 2 billion syndicated loan agreement with a group of 21 international
banks, in a transaction that was over-subscribed. Nokia Siemens Networks also
concluded an agreement with the European Investment Bank for a EUR 250 million
loan for the development of its multimode Radio Access network technology.
- Nokia Siemens Networks was awarded a EUR 1.1 billion, five-year managed
services deal by Oi, a major Brazilian operator and one of the largest in Latin
America. By the terms of the contract Nokia Siemens Networks will be the sole
provider of operations and maintenance for all of Oi's Internal Plant Operations
across 17 Brazilian states.
- Momentum in the services business continued with key services-led customer
wins with Telenor in Pakistan, DIGI Telecommunications in Malaysia and a turnkey
security solution for MTS in Russia that will ensure safe internet browsing on
GSM and 3G networks.
- Nokia Siemens Networks continued to facilitate its customers' development of
mobile broadband internet with significant wins including a network
modernization deal with M1 in Singapore, the development of an HSPA+ capable
network for Elisa in Finland, the roll-out of Ireland's National Broadband
Scheme using Wireless Broadband with 3 and a successful trial of HSPA+ in a live
3G network with Zain Saudi Arabia.
- Time Warner Cable selected Nokia Siemens Networks to supply and build a fully
integrated, 3GPP and PacketCable 2.0 compliant IMS (IP Multimedia Subsystem)
network, which will be the basis for providing next generation consumer
applications that will combine existing voice, video and data services.
For more information on the operating highlights mentioned above, please refer
to related press announcements at the following links:
http://www.nokia.com/press, http://www.navteq.com/about/press.html,
http://www.nokiasiemensnetworks.com/press
NOKIA IN THE SECOND QUARTER 2009
(The following discussion is of Nokia's reported results. Comparisons are given
to the second quarter 2008 results, unless otherwise indicated.)
On July 10, 2008, Nokia completed the acquisition of NAVTEQ Corporation. NAVTEQ
is a separate reportable segment of Nokia starting from the third quarter 2008.
Accordingly, the results of NAVTEQ are not available for the prior periods.
Nokia's net sales decreased 25% to EUR 9 912 million (EUR 13 151 million). Net
sales of Devices & Services decreased 28% to EUR 6 586 million (EUR 9 090
million). Net sales of NAVTEQ were EUR 147 million. Net sales of Nokia Siemens
Networks decreased 21% to EUR 3 199 million (EUR 4 067 million).
Operating profit decreased 71% to EUR 427 million (EUR 1 474 million),
representing an operating margin of 4.3% (11.2%). Operating profit in Devices &
Services decreased 51% to EUR 763 million (EUR 1 565 million), representing an
operating margin of 11.6% (17.2%). Operating loss in NAVTEQ was EUR 100 million,
representing an operating margin of -68.0%. Operating loss in Nokia Siemens
Networks was EUR 188 million (loss of EUR 47 million), representing an operating
margin of -5.9% (-1.2%). Corporate Common Functions reported expense totaled EUR
48 million (EUR 44 million).
In the second quarter 2009, net financial expense was EUR 61 million (net
financial income EUR 3 million). Profit before tax was EUR 380 million (EUR 1
477 million). Profit was EUR 287 million (EUR 1 083 million), based on a profit
of EUR 380 million (EUR 1 103 million) attributable to equity holders of the
parent and a negative EUR 93 million (negative EUR 20 million) attributable to
minority interests. Earnings per share decreased to EUR 0.10 (basic) and EUR
0.10 (diluted), compared with EUR 0.29 (basic) and EUR 0.29 (diluted) in the
second quarter of 2008.
NOKIA IN JANUARY - JUNE 2009
(The following discussion is of Nokia's reported results. Comparisons are given
to the January-June 2008 results, unless otherwise indicated.)
On July 10, 2008, Nokia completed the acquisition of NAVTEQ Corporation. NAVTEQ
is a separate reportable segment of Nokia starting from the third quarter 2008.
Accordingly, the results of NAVTEQ are not available for the prior periods.
Nokia's net sales decreased 26% to EUR 19 186 million (EUR 25 811 million). Net
sales of Devices & Services decreased 30% to EUR 12 759 million (EUR 18 353
million). Net sales of NAVTEQ were EUR 279 million. Net sales of Nokia Siemens
Networks decreased 17% to EUR 6 189 million (EUR 7 468 million).
Operating profit decreased 84% to EUR 482 million (EUR 3 005 million),
representing an operating margin of 2.5% (11.6%). Operating profit in Devices &
Services decreased 62% to EUR 1 310 million (EUR 3 448 million), representing an
operating margin of 10.3% (18.8%). Operating loss in NAVTEQ was EUR 220 million,
representing an operating margin of -78.9%. Operating loss in Nokia Siemens
Networks was EUR 549 million (loss of EUR 121 million), representing an
operating margin of -8.9% (-1.6%). Corporate Common Functions reported expense
totaled EUR 59 million (EUR 322 million).
In the period from January to June 2009, net financial expense was EUR 138
million (net financial income EUR 71 million). Profit before tax was EUR 368
million (EUR 3 084 million). Profit was EUR 291 million (EUR 2 283 million),
based on a profit of EUR 502 million (EUR 2 325 million) attributable to equity
holders of the parent and a negative EUR 211 million (negative EUR 42 million)
attributable to minority interests. Earnings per share decreased to EUR 0.14
(basic) and EUR 0.13 (diluted), compared with EUR 0.61 (basic) and EUR 0.61
(diluted) in January-June 2008.
PERSONNEL
The average number of employees during January-June 2009 was 123 274, of which
the average number of employees at Nokia Siemens Networks was 60 686. At June
30, 2009, Nokia employed a total of 120 827 people (117 212 at June 30, 2008),
of which 60 983 were employed by Nokia Siemens Networks (60 039 people at June
30, 2008).
SHARES
The total number of Nokia shares at June 30, 2009 was 3 744 948 552. At June 30,
2009, Nokia and its subsidiary companies owned 37 520 159 Nokia shares,
representing approximately 1.0% of the total number of Nokia shares and the
total voting rights.
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| | Reported | Reported | | Non-IFRS | Non-IFRS |
| | 4-6/2009 | 4-6/2008 | | 4-6/2009 | 4-6/2008 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net sales | 9 912 | 13 151 | | 9 913 | 13 155 |
--------------------------------------------------------------------------------
| Cost of sales | -6 685 | -8 727 | | -6 648 | -8 595 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 3 227 | 4 424 | | 3 265 | 4 560 |
--------------------------------------------------------------------------------
| Research and | -1 458 | -1 396 | | -1 326 | -1 351 |
| development expenses | | | | | |
--------------------------------------------------------------------------------
| Selling and | -1 003 | -990 | | -898 | -919 |
| marketing expenses | | | | | |
--------------------------------------------------------------------------------
| Administrative and | -304 | -338 | | -263 | -293 |
| general expenses | | | | | |
--------------------------------------------------------------------------------
| Other income | 143 | 119 | | 75 | 118 |
--------------------------------------------------------------------------------
| Other expenses | -178 | -345 | | -78 | -61 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 427 | 1 474 | | 775 | 2 054 |
--------------------------------------------------------------------------------
| Share of results of | 14 | - | | 14 | - |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Financial income and | -61 | 3 | | -61 | 3 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 380 | 1 477 | | 728 | 2 057 |
--------------------------------------------------------------------------------
| Tax | -93 | -394 | | -204 | -554 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit | 287 | 1 083 | | 524 | 1 503 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit attributable | 380 | 1 103 | | 552 | 1 407 |
| to equity holders of | | | | | |
| the parent | | | | | |
--------------------------------------------------------------------------------
| Profit attributable | -93 | -20 | | -28 | 96 |
| to minority | | | | | |
| interests | | | | | |
--------------------------------------------------------------------------------
| | 287 | 1 083 | | 524 | 1 503 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | |
| EUR (for profit | | | | | |
| attributable to the | | | | | |
| equity holders of | | | | | |
| the parent) | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.10 | 0.29 | | 0.15 | 0.37 |
--------------------------------------------------------------------------------
| Diluted | 0.10 | 0.29 | | 0.15 | 0.37 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares | | | | | |
| 1 000 shares) | | | | | |
--------------------------------------------------------------------------------
| Basic | 3 704 819 | 3 755 241 | | 3 704 819 | 3 755 241 |
--------------------------------------------------------------------------------
| Diluted | 3 711 297 | 3 788 068 | | 3 711 297 | 3 788 068 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 443 | 334 | | 201 | 214 |
| amortization, total | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Share-based | 9 | 39 | | 9 | 39 |
| compensation | | | | | |
| expense, total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| | Reported | Reported | | Non-IFRS | Non-IFRS |
| | 1-6/2009 | 1-6/2008 | | 1-6/2009 | 1-6/2008 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Net sales | 19 186 | 25 811 | | 19 189 | 25 818 |
--------------------------------------------------------------------------------
| Cost of sales | -13 056 | -16 860 | | -12 958 | -16 653 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 6 130 | 8 951 | | 6 231 | 9 165 |
--------------------------------------------------------------------------------
| Research and | -2 958 | -2 771 | | -2 684 | -2 681 |
| development expenses | | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -1 965 | -2 025 | | -1 753 | -1 887 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administrative and | -584 | -646 | | -513 | -571 |
| general expenses | | | | | |
--------------------------------------------------------------------------------
| Other income | 199 | 164 | | 131 | 163 |
--------------------------------------------------------------------------------
| Other expenses | -340 | -668 | | -123 | -151 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 482 | 3 005 | | 1 289 | 4 038 |
--------------------------------------------------------------------------------
| Share of results of | 24 | 8 | | 24 | 8 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Financial income and | -138 | 71 | | -138 | 71 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 368 | 3 084 | | 1 175 | 4 117 |
--------------------------------------------------------------------------------
| Tax | -77 | -801 | | -321 | -1 088 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit | 291 | 2 283 | | 854 | 3 029 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit attributable | 502 | 2 325 | | 909 | 2 899 |
| to equity holders of | | | | | |
| the parent | | | | | |
--------------------------------------------------------------------------------
| Profit attributable | -211 | -42 | | -55 | 130 |
| to minority interests | | | | | |
--------------------------------------------------------------------------------
| | 291 | 2 283 | | 854 | 3 029 |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | |
| EUR (for profit | | | | | |
| attributable to the | | | | | |
| equity holders of the | | | | | |
| parent) | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.14 | 0.61 | | 0.25 | 0.76 |
--------------------------------------------------------------------------------
| Diluted | 0.13 | 0.61 | | 0.24 | 0.76 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares (1 000 shares) | | | | | |
--------------------------------------------------------------------------------
| Basic | 3 702 362 | 3 789 252 | | 3 702 362 | 3 789 252 |
--------------------------------------------------------------------------------
| Diluted | 3 718 775 | 3 829 144 | | 3 718 775 | 3 829 144 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 905 | 681 | | 420 | 441 |
| amortization, total | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Share-based | -16 | 97 | | -16 | 97 |
| compensation expense, | | | | | |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA NET SALES BY GEOGRAPHIC AREA, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| Reported | 4-6/2009 | Y-o-Y | 4-6/2008 | 1-12/2008 |
| | | change, % | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 3 418 | -27 | 4 657 | 18 842 |
--------------------------------------------------------------------------------
| Middle-East & Africa | 1 503 | -22 | 1 935 | 7 265 |
--------------------------------------------------------------------------------
| Greater China | 1 491 | -6 | 1 583 | 6 420 |
--------------------------------------------------------------------------------
| Asia-Pacific | 2 220 | -29 | 3 148 | 11 344 |
--------------------------------------------------------------------------------
| North America | 534 | 6 | 503 | 2 068 |
--------------------------------------------------------------------------------
| Latin America | 746 | -44 | 1 325 | 4 771 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 9 912 | -25 | 13 151 | 50 710 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA PERSONNEL BY GEOGRAPHIC AREA |
--------------------------------------------------------------------------------
| | 30.06.09 | Y-o-Y | 30.06.08 | 31.12.08 |
| | | change, % | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 59 996 | -1 | 60 345 | 61 971 |
--------------------------------------------------------------------------------
| Middle-East & Africa | 4 164 | -18 | 5 093 | 5 160 |
--------------------------------------------------------------------------------
| Greater China | 14 596 | 5 | 13 946 | 14 879 |
--------------------------------------------------------------------------------
| Asia-Pacific | 22 236 | 11 | 20 041 | 21 832 |
--------------------------------------------------------------------------------
| North America | 8 074 | 36 | 5 916 | 8 862 |
--------------------------------------------------------------------------------
| Latin America | 11 761 | -1 | 11 871 | 13 125 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 120 827 | 3 | 117 212 | 125 829 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DEVICES & SERVICES, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Reporte | Special | Non-IFRS | Reported | Special | Non-IFR |
| | d | items & | 4-6/2009 | 4-6/2008 | items & | S |
| | 4-6/200 | PPA | | | PPA | 4-6/200 |
| | 9 | 4-6/2009 | | | 4-6/2008 | 8 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 6 586 | - | 6 586 | 9 090 | - | 9 090 |
--------------------------------------------------------------------------------
| Cost of | -4 345 | - | -4 345 | -5 812 | - | -5 812 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 2 241 | - | 2 241 | 3 278 | - | 3 278 |
--------------------------------------------------------------------------------
| % of net | 34.0 | | 34.0 | 36.1 | | 36.1 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | -733 | 2 | -731 | -741 | - | -741 |
| development | | | | | | |
| expenses 1) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 11.1 | | 11.1 | 8.2 | | 8.2 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -599 | - | -599 | -630 | - | -630 |
| marketing | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| % of net | 9.1 | | 9.1 | 6.9 | | 6.9 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrati | -106 | - | -106 | -115 | - | -115 |
| ve and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| % of net | 1.6 | | 1.6 | 1.3 | | 1.3 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | -40 | 37 | -3 | -227 | 259 | 32 |
| and expenses | | | | | | |
| 2) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | 763 | 39 | 802 | 1 565 | 259 | 1 824 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net | 11.6 | | 12.2 | 17.2 | | 20.1 |
| sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Amortization of acquired intangible assets of EUR 2 million in Q2/09 |
--------------------------------------------------------------------------------
| 2) Restructuring charges of EUR 83 million, impairment of assets EUR 22 |
| million and gain on sale of security appliance business of EUR 68 million in |
| Q2/09. Restructuring charges of EUR 259 million related to closure of the |
| Bochum site in Germany in Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NAVTEQ, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Reported | Special items & | Non-IFRS |
| | 4-6/2009 | PPA | 4-6/2009 |
| | | 4-6/2009 | |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Net sales 1) | 147 | 1 | 148 |
--------------------------------------------------------------------------------
| Cost of sales | -21 | | -21 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Gross profit | 126 | 1 | 127 |
--------------------------------------------------------------------------------
| % of net sales | 85.7 | | 85.8 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Research and development | -158 | 88 | -70 |
| expenses 2) | | | |
--------------------------------------------------------------------------------
| % of net sales | 107.5 | | 47.3 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -55 | 30 | -25 |
| expenses 3) | | | |
--------------------------------------------------------------------------------
| % of net sales | 37.4 | | 16.9 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Administrative and general | -15 | - | -15 |
| expenses | | | |
--------------------------------------------------------------------------------
| % of net sales | 10.2 | | 10.1 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Other income and expenses | 2 | - | 2 |
--------------------------------------------------------------------------------
| | | | |
--------------------------------------------------------------------------------
| Operating profit | -100 | 119 | 19 |
--------------------------------------------------------------------------------
| % of net sales | -68.0 | | 12.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 1 million in Q2/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2) Amortization of acquired intangibles of EUR 88 million in Q2/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3) Amortization of acquired intangibles of EUR 30 million in Q2/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA SIEMENS NETWORKS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Reporte | Special | Non-IFRS | Reported | Special | Non-IFR |
| | d | items & | 4-6/2009 | 4-6/2008 | items & | S |
| | 4-6/200 | PPA | | | PPA | 4-6/200 |
| | 9 | 4-6/2009 | | | 4-6/2008 | 8 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net sales 1) | 3 199 | - | 3 199 | 4 067 | 4 | 4 071 |
--------------------------------------------------------------------------------
| Cost of | -2 339 | 37 | -2 302 | -2 921 | 132 | -2 789 |
| sales 2) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 860 | 37 | 897 | 1 146 | 136 | 1 282 |
--------------------------------------------------------------------------------
| % of net | 26.9 | | 28.0 | 28.2 | | 31.5 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | -566 | 42 | -524 | -653 | 45 | -608 |
| development | | | | | | |
| expenses 3) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 17.7 | | 16.4 | 16.1 | | 14.9 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -349 | 75 | -274 | -359 | 71 | -288 |
| marketing | | | | | | |
| expenses 4) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 10.9 | | 8.6 | 8.8 | | 7.1 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrati | -149 | 41 | -108 | -188 | 45 | -143 |
| ve and | | | | | | |
| general | | | | | | |
| expenses 5) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 4.7 | | 3.4 | 4.6 | | 3.5 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | 16 | -5 | 11 | 7 | 24 | 31 |
| and expenses | | | | | | |
| 6) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -188 | 190 | 2 | -47 | 321 | 274 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net | -5.9 | | 0.1 | -1.2 | | 6.7 |
| sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 4 million in Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 2) Restructuring charges of EUR 37 million in Q2/09 and of EUR 132 million |
| in Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 3) Reversal of restructuring charges of EUR 3 million and amortization of |
| acquired intangibles of EUR 45 million in Q2/09. Amortization of acquired |
| intangibles of EUR 45 million in Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 4) Restructuring charges of EUR 4 million and amortization of acquired |
| intangibles of EUR 71 million in Q2/09. Amortization of acquired intangibles |
| of EUR 71 million in Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 5) Restructuring charges of EUR 41 million in Q2/09 and EUR 45 million in |
| Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 6) Reversal of restructuring charges of EUR 10 million and amortization of |
| acquired intangibles of EUR 5 million in Q2/09. Restructuring charges of EUR |
| 24 million in Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP COMMON FUNCTIONS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Reported | Special | Non-IFR | Reported | Special | Non-IFR |
| | 4-6/2009 | items & | S | 4-6/2008 | items & | S |
| | | PPA | 4-6/200 | | PPA | 4-6/200 |
| | | 4-6/200 | 9 | | 4-6/200 | 8 |
| | | 9 | | | 8 | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net sales | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| Cost of sales | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | -1 | - | -1 | -2 | - | -2 |
| development | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | - | - | - | -1 | - | -1 |
| marketing | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrativ | -34 | - | -34 | -35 | - | -35 |
| e and general | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | -13 | - | -13 | -6 | - | -6 |
| and expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -48 | - | -48 | -44 | - | -44 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA GROUP | | | | | | |
--------------------------------------------------------------------------------
| | Reported | Spec | Non-IFRS | Reported | Speci | Non-IFRS |
| | 4-6/2009 | ial | 4-6/2009 | 4-6/2008 | al | 4-6/2008 |
| | | item | | | items | |
| | | s & | | | & PPA | |
| | | PPA | | | 4-6/2 | |
| | | 4-6/ | | | 008 | |
| | | 2009 | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net sales 1) | 9 912 | 1 | 9 913 | 13 151 | 4 | 13 155 |
--------------------------------------------------------------------------------
| Cost of | -6 685 | 37 | -6 648 | -8 727 | 132 | -8 595 |
| sales 2) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 3 227 | 38 | 3 265 | 4 424 | 136 | 4 560 |
--------------------------------------------------------------------------------
| % of net | 32.6 | | 32.9 | 33.6 | | 34.7 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | -1 458 | 132 | -1 326 | -1 396 | 45 | -1 351 |
| development | | | | | | |
| expenses 3) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 14.7 | | 13.4 | 10.6 | | 10.3 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -1 003 | 105 | -898 | -990 | 71 | -919 |
| marketing | | | | | | |
| expenses 4) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 10.1 | | 9.1 | 7.5 | | 7.0 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrati | -304 | 41 | -263 | -338 | 45 | -293 |
| ve and | | | | | | |
| general | | | | | | |
| expenses 5) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 3.1 | | 2.7 | 2.6 | | 2.2 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | -35 | 32 | -3 | -226 | 283 | 57 |
| and expenses | | | | | | |
| 6) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | 427 | 348 | 775 | 1 474 | 580 | 2 054 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net | 4.3 | | 7.8 | 11.2 | | 15.6 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Share of | 14 | | 14 | - | | - |
| results of | | | | | | |
| associated | | | | | | |
| companies | | | | | | |
--------------------------------------------------------------------------------
| Financial | -61 | | -61 | 3 | | 3 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit | 380 | 348 | 728 | 1 477 | 580 | 2 057 |
| before tax | | | | | | |
--------------------------------------------------------------------------------
| Tax | -93 | -111 | -204 | -394 | -160 | -554 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit | 287 | 237 | 524 | 1 083 | 420 | 1 503 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit | 380 | 172 | 552 | 1 103 | 304 | 1 407 |
| attributable | | | | | | |
| to equity | | | | | | |
| holders of | | | | | | |
| the parent | | | | | | |
--------------------------------------------------------------------------------
| Profit | -93 | 65 | -28 | -20 | 116 | 96 |
| attributable | | | | | | |
| to minority | | | | | | |
| interests | | | | | | |
--------------------------------------------------------------------------------
| | 287 | 237 | 524 | 1 083 | 420 | 1 503 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | | | | | | |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| (for profit | | | | | | |
| attributable | | | | | | |
| to the | | | | | | |
| equity | | | | | | |
| holders | | | | | | |
--------------------------------------------------------------------------------
| of the | | | | | | |
| parent) | | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.10 | | 0.15 | 0.29 | | 0.37 |
--------------------------------------------------------------------------------
| Diluted | 0.10 | | 0.15 | 0.29 | | 0.37 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | |
| number of | | | | | | |
| shares | | | | | | |
--------------------------------------------------------------------------------
| (1 000 | | | | | | |
| shares) | | | | | | |
--------------------------------------------------------------------------------
| Basic | 3 704 | | 3 704 819 | 3 755 241 | | 3 755 241 |
| | 819 | | | | | |
--------------------------------------------------------------------------------
| Diluted | 3 711 | | 3 711 297 | 3 788 068 | | 3 788 068 |
| | 297 | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 443 | -242 | 201 | 334 | -120 | 214 |
| and | | | | | | |
| amortization | | | | | | |
| , total | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Share-based | 9 | - | 9 | 39 | - | 39 |
| compensation | | | | | | |
| expense, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 1 million Q2/09 and EUR 4 |
| million in Q2/08. |
--------------------------------------------------------------------------------
| 2) Restructuring charges of EUR 37 million in Q2/09 and EUR 132 million in |
| Q2/08. |
--------------------------------------------------------------------------------
| 3) Amortization of acquired intangible assets of EUR 135 million and |
| reversal of restructuring charges of EUR 3 million in Q2/09. Amortization of |
| acquired intangible assets of EUR 45 million in Q2/08. |
--------------------------------------------------------------------------------
| 4) Restructuring charges of EUR 4 million and amortization of acquired |
| intangible assets of EUR 101 million in Q2/09. Amortization of acquired |
| intangible assets of EUR 71 million in Q2/08. |
--------------------------------------------------------------------------------
| 5) Restructuring charges of EUR 41 million in Q2/09 and EUR 45 million in |
| Q2/08. |
--------------------------------------------------------------------------------
| 6) Restructuring charges of EUR 73 million, amortization of acquired |
| intangible assets of EUR 5 million and impairment of intangible assets of |
| EUR 22 million and gain on sale of security business of EUR 68 million in |
| Q2/09. Restructuring charges of EUR 283 million in Q2/08. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, IFRS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 4-6/2009 | 4-6/2008 | 1-6/200 | 1-6/2008 | 1-12/200 |
| | | | 9 | | 8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 9 912 | 13 151 | 19 186 | 25 811 | 50 710 |
--------------------------------------------------------------------------------
| Cost of sales | -6 685 | -8 727 | -13 056 | -16 860 | -33 337 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 3 227 | 4 424 | 6 130 | 8 951 | 17 373 |
--------------------------------------------------------------------------------
| Research and | -1 458 | -1 396 | -2 958 | -2 771 | -5 968 |
| development expenses | | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -1 003 | -990 | -1 965 | -2 025 | -4 380 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administrative and | -304 | -338 | -584 | -646 | -1 284 |
| general expenses | | | | | |
--------------------------------------------------------------------------------
| Other income | 143 | 119 | 199 | 164 | 420 |
--------------------------------------------------------------------------------
| Other expenses | -178 | -345 | -340 | -668 | -1 195 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 427 | 1 474 | 482 | 3 005 | 4 966 |
--------------------------------------------------------------------------------
| Share of results of | 14 | - | 24 | 8 | 6 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Financial income and | -61 | 3 | -138 | 71 | -2 |
| expenses | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before tax | 380 | 1 477 | 368 | 3 084 | 4 970 |
--------------------------------------------------------------------------------
| Tax | -93 | -394 | -77 | -801 | -1 081 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | 287 | 1 083 | 291 | 2 283 | 3 889 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit attributable | 380 | 1 103 | 502 | 2 325 | 3 988 |
| to equity holders of | | | | | |
| the parent | | | | | |
--------------------------------------------------------------------------------
| Profit attributable | -93 | -20 | -211 | -42 | -99 |
| to minority interests | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 287 | 1 083 | 291 | 2 283 | 3 889 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, | | | | | |
| EUR | | | | | |
--------------------------------------------------------------------------------
| (for profit attributable to the equity holders of the parent) |
--------------------------------------------------------------------------------
| Basic | 0.10 | 0.29 | 0.14 | 0.61 | 1.07 |
--------------------------------------------------------------------------------
| Diluted | 0.10 | 0.29 | 0.13 | 0.61 | 1.05 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares (1 000 shares) |
--------------------------------------------------------------------------------
| Basic | 3704819 | 3755241 | 3702362 | 3789252 | 3743622 |
--------------------------------------------------------------------------------
| Diluted | 3711297 | 3788068 | 3718775 | 3829144 | 3780363 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 443 | 334 | 905 | 681 | 1 617 |
| amortization, total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share-based | 9 | 39 | -16 | 97 | 67 |
| compensation expense, | | | | | |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS, EUR | |
| million | |
--------------------------------------------------------------------------------
| (unaudited) | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 4-6/2009 | 4-6/2008 | 1-6/2009 | 1-6/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | 287 | 1 083 | 291 | 2 283 | 3 889 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Tax benefit on | - | - | - | - | 4 |
| stock options | | | | | |
| exercised | | | | | |
--------------------------------------------------------------------------------
| Excess tax benefit | -1 | -70 | -14 | -100 | -128 |
| on share-based | | | | | |
| compensation | | | | | |
--------------------------------------------------------------------------------
| Translation | -549 | 82 | -161 | -49 | 595 |
| differences | | | | | |
--------------------------------------------------------------------------------
| Net investment | 61 | -11 | 34 | 26 | -123 |
| hedge gains | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | 96 | -277 | -288 | -305 | -40 |
--------------------------------------------------------------------------------
| Available-for-sale | -5 | 2 | -11 | 18 | -15 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other | 2 | 3 | -12 | -33 | 28 |
| increase/decrease, | | | | | |
| net | | | | | |
--------------------------------------------------------------------------------
| Income tax related | | | | | |
| to components of | | | | | |
| other | | | | | |
--------------------------------------------------------------------------------
| comprehensive | -42 | 69 | 60 | 71 | 58 |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | -438 | -202 | -392 | -372 | 379 |
| income, net of tax | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | -151 | 881 | -101 | 1 911 | 4 268 |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | | | | | |
| income attributable | | | | | |
| to | | | | | |
--------------------------------------------------------------------------------
| equity holders of | -91 | 942 | 99 | 1 955 | 4 459 |
| the parent | | | | | |
--------------------------------------------------------------------------------
| minority interests | -60 | -61 | -200 | -44 | -191 |
--------------------------------------------------------------------------------
| | -151 | 881 | -101 | 1 911 | 4 268 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS, EUR million (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | 30.06.200 | 30.06.200 | 31.12.2008 | |
| | 9 | 8 | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Capitalized development costs | 204 | 342 | 244 | |
--------------------------------------------------------------------------------
| Goodwill | 6 290 | 1 512 | 6 257 | |
--------------------------------------------------------------------------------
| Other intangible assets | 3 348 | 2 220 | 3 913 | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 2 011 | 1 862 | 2 090 | |
--------------------------------------------------------------------------------
| Investments in associated | 69 | 327 | 96 | |
| companies | | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments | 510 | 408 | 512 | |
--------------------------------------------------------------------------------
| Deferred tax assets | 2 129 | 1 671 | 1 963 | |
--------------------------------------------------------------------------------
| Long-term loans receivable | 37 | 16 | 27 | |
--------------------------------------------------------------------------------
| Other non-current assets | 8 | 24 | 10 | |
--------------------------------------------------------------------------------
| | 14 606 | 8 382 | 15 112 | |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 1 973 | 2 763 | 2 533 | |
--------------------------------------------------------------------------------
| Accounts receivable | 8 725 | 11 084 | 9 444 | |
--------------------------------------------------------------------------------
| Prepaid expenses and accrued | 4 571 | 3 277 | 4 538 | |
| income | | | | |
--------------------------------------------------------------------------------
| Current portion of long-term | 13 | 125 | 101 | |
| loans receivable | | | | |
--------------------------------------------------------------------------------
| Other financial assets | 393 | 168 | 1 034 | |
--------------------------------------------------------------------------------
| Investments at fair value | 689 | - | - | |
| through profit and loss, liquid | | | | |
| assets | | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments, | 1 205 | 2 771 | 1 272 | |
| liquid assets | | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments, | 3 434 | 3 436 | 3 842 | |
| cash equivalents | | | | |
--------------------------------------------------------------------------------
| Bank and cash | 1 666 | 1 774 | 1 706 | |
--------------------------------------------------------------------------------
| | 22 669 | 25 398 | 24 470 | |
--------------------------------------------------------------------------------
| Total assets | 37 275 | 33 780 | 39 582 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES |
--------------------------------------------------------------------------------
| Capital and reserves attributable to equity holders of the parent |
--------------------------------------------------------------------------------
| Share capital | 246 | 246 | 246 | |
--------------------------------------------------------------------------------
| Share issue premium | 299 | 498 | 442 | |
--------------------------------------------------------------------------------
| Treasury shares | -697 | -1 670 | -1 881 | |
--------------------------------------------------------------------------------
| Translation differences | 216 | -205 | 341 | |
--------------------------------------------------------------------------------
| Fair value and other reserves | -198 | -192 | 62 | |
--------------------------------------------------------------------------------
| Reserve for invested | 3 178 | 3 314 | 3 306 | |
| non-restricted equity | | | | |
--------------------------------------------------------------------------------
| Retained earnings | 9 739 | 9 954 | 11 692 | |
--------------------------------------------------------------------------------
| | 12 783 | 11 945 | 14 208 | |
--------------------------------------------------------------------------------
| Minority interests | 2 085 | 2 504 | 2 302 | |
--------------------------------------------------------------------------------
| Total equity | 14 868 | 14 449 | 16 510 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Long-term interest-bearing | 4 079 | 169 | 861 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1 510 | 1 019 | 1 787 | |
--------------------------------------------------------------------------------
| Other long-term liabilities | 67 | 115 | 69 | |
--------------------------------------------------------------------------------
| | 5 656 | 1 303 | 2 717 | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Current portion of long-term | 53 | 123 | 13 | |
| loans | | | | |
--------------------------------------------------------------------------------
| Short-term borrowing | 1 393 | 905 | 3 578 | |
--------------------------------------------------------------------------------
| Other financial liabilities | 152 | 161 | 924 | |
--------------------------------------------------------------------------------
| Accounts payable | 5 276 | 5 914 | 5 225 | |
--------------------------------------------------------------------------------
| Accrued expenses | 6 580 | 6 791 | 7 023 | |
--------------------------------------------------------------------------------
| Provisions | 3 297 | 4 134 | 3 592 | |
--------------------------------------------------------------------------------
| | 16 751 | 18 028 | 20 355 | |
--------------------------------------------------------------------------------
| Total shareholders' equity and | 37 275 | 33 780 | 39 582 | |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 5 525 | 1 197 | 4 452 | |
--------------------------------------------------------------------------------
| Shareholders' equity per share, | 3.45 | 3.22 | 3.84 | |
| EUR | | | | |
--------------------------------------------------------------------------------
| Number of shares (1 000 shares) | 3 707 428 | 3 710 160 | 3 697 872 | |
| 1) | | | | |
--------------------------------------------------------------------------------
| 1) Shares owned by Group companies are excluded. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | 1-6/2009 | 1-6/2008 | 1-12/2008 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| Profit attributable to equity | 502 | 2 325 | 3 988 |
| holders of the parent | | | |
--------------------------------------------------------------------------------
| Adjustments, total | 977 | 2 062 | 3 469 |
--------------------------------------------------------------------------------
| Change in net working capital | 602 | -1 321 | -2 546 |
--------------------------------------------------------------------------------
| Cash generated from operations | 2 081 | 3 066 | 4 911 |
--------------------------------------------------------------------------------
| Interest received | 76 | 242 | 416 |
--------------------------------------------------------------------------------
| Interest paid | -75 | -48 | -155 |
--------------------------------------------------------------------------------
| Other financial income and expenses, | -533 | 173 | -195 |
| net | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -557 | -1 221 | -1 780 |
--------------------------------------------------------------------------------
| Net cash from operating activities | 992 | 2 212 | 3 197 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Acquisition of Group companies, net | -19 | -311 | -5 962 |
| of acquired cash | | | |
--------------------------------------------------------------------------------
| Purchase of current | -362 | -521 | -669 |
| available-for-sale investments, | | | |
| liquid assets | | | |
--------------------------------------------------------------------------------
| Purchase of investments at fair | -695 | - | - |
| value through profit and loss, | | | |
| liquid assets | | | |
--------------------------------------------------------------------------------
| Purchase of non-current | -50 | -71 | -121 |
| available-for-sale investments | | | |
--------------------------------------------------------------------------------
| Purchase of shares in associated | -28 | - | -24 |
| companies | | | |
--------------------------------------------------------------------------------
| Additions to capitalized development | -25 | -45 | -131 |
| costs | | | |
--------------------------------------------------------------------------------
| Long-term loans made to customers | - | -23 | - |
--------------------------------------------------------------------------------
| Proceeds from repayment and sale of | - | 56 | 129 |
| long-term loans receivable | | | |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | - | -1 | -1 |
| other long-term loans receivable | | | |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | 2 | -371 | -15 |
| short-term loans receivable | | | |
--------------------------------------------------------------------------------
| Capital expenditures | -281 | -403 | -889 |
--------------------------------------------------------------------------------
| Proceeds from disposal of shares in | 15 | 2 | 3 |
| associated companies | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of businesses | 62 | 50 | 41 |
--------------------------------------------------------------------------------
| Proceeds from maturities and sale of | 421 | 2 583 | 4 664 |
| current available-for-sale | | | |
| investments, liquid assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of non-current | 1 | 9 | 10 |
| available-for-sale investments | | | |
--------------------------------------------------------------------------------
| Proceeds form sale of fixed assets | 20 | 49 | 54 |
--------------------------------------------------------------------------------
| Dividends received | 1 | - | 6 |
--------------------------------------------------------------------------------
| Net cash used in / from investing | -938 | 1 003 | -2 905 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Proceeds from stock option exercises | - | 5 | 53 |
--------------------------------------------------------------------------------
| Purchase of treasury shares | - | -2 753 | -3 121 |
--------------------------------------------------------------------------------
| Proceeds from long-term borrowings | 3 396 | 13 | 714 |
--------------------------------------------------------------------------------
| Repayment of long-term borrowings | -25 | -69 | -34 |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | -2 374 | -30 | 2 891 |
| short-term borrowings | | | |
--------------------------------------------------------------------------------
| Dividends paid | -1 519 | -1 999 | -2 048 |
--------------------------------------------------------------------------------
| Net cash from / used in financing | -522 | -4 833 | -1 545 |
| activities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange adjustment | 20 | -22 | -49 |
--------------------------------------------------------------------------------
| Net increase (+) / decrease (-) in | -448 | -1 640 | -1 302 |
| cash and cash equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 5 548 | 6 850 | 6 850 |
| beginning of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | 5 100 | 5 210 | 5 548 |
| period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NB: The figures in the consolidated cash flow statement cannot be directly |
| traced from the balance sheet without additional information as a result of |
| acquisitions and disposals of subsidiaries and net foreign exchange |
| differences arising on consolidation. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, IFRS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Share | Sha | Tre | Tra | Fair | Rese | Retai | Befor | Mino | Tota |
| | capital | re | asu | nsl | value | rve | ned | e | rity | l |
| | | iss | ry | ati | and | for | earni | minor | inte | equi |
| | | ue | sha | on | other | inve | ngs | ity | rest | ty |
| | | pre | res | dif | reser | sted | | | | |
| | | miu | | fer | ves | non- | | | | |
| | | m | | enc | | rest | | | | |
| | | | | e | | rict | | | | |
| | | | | | | ed | | | | |
| | | | | | | equi | | | | |
| | | | | | | ty | | | | |
--------------------------------------------------------------------------------
| Bal | 246 | 644 | -31 | -16 | 23 | 3299 | 13870 | 14773 | 2565 | 1733 |
| anc | | | 46 | 3 | | | | | | 8 |
| e | | | | | | | | | | |
| at | | | | | | | | | | |
| Dec | | | | | | | | | | |
| emb | | | | | | | | | | |
| er | | | | | | | | | | |
| 31, | | | | | | | | | | |
| 200 | | | | | | | | | | |
| 7 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tot | - | -96 | - | -42 | -215 | - | 2308 | 1955 | -44 | 1911 |
| al | | | | | | | | | | |
| com | | | | | | | | | | |
| pre | | | | | | | | | | |
| hen | | | | | | | | | | |
| siv | | | | | | | | | | |
| e | | | | | | | | | | |
| inc | | | | | | | | | | |
| ome | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sha | | 99 | | | | | | 99 | | 99 |
| re- | | | | | | | | | | |
| bas | | | | | | | | | | |
| ed | | | | | | | | | | |
| com | | | | | | | | | | |
| pen | | | | | | | | | | |
| sat | | | | | | | | | | |
| ion | | | | | | | | | | |
--------------------------------------------------------------------------------
| Set | | -14 | 116 | | | 15 | | -18 | | -18 |
| tle | | 9 | | | | | | | | |
| men | | | | | | | | | | |
| t | | | | | | | | | | |
| of | | | | | | | | | | |
| per | | | | | | | | | | |
| for | | | | | | | | | | |
| man | | | | | | | | | | |
| ce | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Acq | | | -28 | | | | | -2873 | | -287 |
| uis | | | 73 | | | | | | | 3 |
| iti | | | | | | | | | | |
| on | | | | | | | | | | |
| of | | | | | | | | | | |
| tre | | | | | | | | | | |
| asu | | | | | | | | | | |
| ry | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Rei | | | 1 | | | | | 1 | | 1 |
| ssu | | | | | | | | | | |
| anc | | | | | | | | | | |
| e | | | | | | | | | | |
| of | | | | | | | | | | |
| tre | | | | | | | | | | |
| asu | | | | | | | | | | |
| ry | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Can | | | 423 | | | | -4232 | - | | - |
| cel | | | 2 | | | | | | | |
| lat | | | | | | | | | | |
| ion | | | | | | | | | | |
| of | | | | | | | | | | |
| tre | | | | | | | | | | |
| asu | | | | | | | | | | |
| ry | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Div | | | | | | | -1992 | -1992 | -7 | -199 |
| ide | | | | | | | | | | 9 |
| nd | | | | | | | | | | |
--------------------------------------------------------------------------------
| Acquisitions | | | | | | | - | -10 | -10 |
| and other | | | | | | | | | |
| changes in | | | | | | | | | |
| minority | | | | | | | | | |
| interests | | | | | | | | | |
--------------------------------------------------------------------------------
| Balance | 246 | 498 | -16 | -20 | -192 | 3314 | 9954 | 11945 | 2504 | 1444 |
| at June | | | 70 | 5 | | | | | | 9 |
| 30, | | | | | | | | | | |
| 2008 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 246 | 442 | -18 | 341 | 62 | 3306 | 11692 | 14208 | 2302 | 1651 |
| at | | | 81 | | | | | | | 0 |
| Decembe | | | | | | | | | | |
| r 31, | | | | | | | | | | |
| 2008 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | - | -13 | - | -12 | -260 | - | 497 | 99 | -200 | -101 |
| compreh | | | | 5 | | | | | | |
| ensive | | | | | | | | | | |
| income | | | | | | | | | | |
--------------------------------------------------------------------------------
| Share-b | | -14 | | | | | | -14 | | -14 |
| ased | | | | | | | | | | |
| compens | | | | | | | | | | |
| ation | | | | | | | | | | |
--------------------------------------------------------------------------------
| Settlem | | -11 | 215 | | | -128 | | -29 | | -29 |
| ent of | | 6 | | | | | | | | |
| perform | | | | | | | | | | |
| ance | | | | | | | | | | |
| shares | | | | | | | | | | |
--------------------------------------------------------------------------------
| Cancell | | | 969 | | | | -969 | - | | - |
| ation | | | | | | | | | | |
| of | | | | | | | | | | |
| treasur | | | | | | | | | | |
| y | | | | | | | | | | |
| shares | | | | | | | | | | |
--------------------------------------------------------------------------------
| Dividen | | | | | | | -1481 | -1481 | -17 | -149 |
| d | | | | | | | | | | 8 |
--------------------------------------------------------------------------------
| Balance | 246 | 299 | -69 | 216 | -198 | 3178 | 9739 | 12783 | 2085 | 1486 |
| at June | | | 7 | | | | | | | 8 |
| 30, | | | | | | | | | | |
| 2009 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS AND CONTINGENCIES, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | | GROUP | |
--------------------------------------------------------------------------------
| | 30.06.2009 | 30.06.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Collateral for own commitments | | | |
--------------------------------------------------------------------------------
| Property under mortgages | 18 | 18 | 18 |
--------------------------------------------------------------------------------
| Assets pledged | 10 | 30 | 11 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities on behalf of Group | | |
| companies | | |
--------------------------------------------------------------------------------
| Guarantees for loans | - | - | - |
--------------------------------------------------------------------------------
| Other guarantees | 2 651 | 2 653 | 2 896 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities on behalf of associated | | |
| companies | | |
--------------------------------------------------------------------------------
| Other guarantees | 1 | - | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities on behalf of other | | |
| companies | | |
--------------------------------------------------------------------------------
| Financial guarantees on behalf of | 1 | 147 | 2 |
| third parties | | | |
--------------------------------------------------------------------------------
| Other guarantees | 4 | 4 | 1 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing obligations | 1 259 | 1 217 | 1 156 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing commitments | | | |
--------------------------------------------------------------------------------
| Customer finance commitments | 37 | 464 | 197 |
--------------------------------------------------------------------------------
| Venture fund commitments | 355 | 335 | 467 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1 EUR = 1.392 USD | | | |
--------------------------------------------------------------------------------
FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding: A) the timing of product,
services and solution deliveries; B) our ability to develop, implement and
commercialize new products, services, solutions and technologies; C) our ability
to develop and grow our consumer Internet services business; D) expectations
regarding market developments and structural changes; E) expectations regarding
our mobile device volumes, market share, prices and margins; F) expectations and
targets for our results of operations; G) the outcome of pending and threatened
litigation; H) expectations regarding the successful completion of contemplated
acquisitions on a timely basis and our ability to achieve the set targets upon
the completion of such acquisitions; and I) statements preceded by "believe,""expect,""anticipate,""foresee,""target,""estimate,""designed,""plans,""will" or similar expressions are forward-looking statements. These statements
are based on management's best assumptions and beliefs in light of the
information currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results that we
currently expect. Factors that could cause these differences include, but are
not limited to: 1) the deteriorating global economic conditions and related
financial crisis and their impact on us, our customers and end-users of our
products, services and solutions, our suppliers and collaborative partners; 2)
the development of the mobile and fixed communications industry, as well as the
growth and profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products, services and
solutions in those segments; 3) the intensity of competition in the mobile and
fixed communications industry and our ability to maintain or improve our market
position or respond successfully to changes in the competitive landscape; 4)
competitiveness of our product, services and solutions portfolio; 5) our ability
to successfully manage costs; 6) exchange rate fluctuations, including, in
particular, fluctuations between the euro, which is our reporting currency, and
the US dollar, the Japanese yen, the Chinese yuan and the UK pound sterling, as
well as certain other currencies; 7) the success, financial condition and
performance of our suppliers, collaboration partners and customers; 8) our
ability to source sufficient amounts of fully functional components,
sub-assemblies, software and content without interruption and at acceptable
prices; 9) the impact of changes in technology and our ability to develop or
otherwise acquire and timely and successfully commercialize complex technologies
as required by the market; 10) the occurrence of any actual or even alleged
defects or other quality, safety or security issues in our products, services
and solutions; 11) the impact of changes in government policies, trade policies,
laws or regulations or political turmoil in countries where we do business; 12)
our success in collaboration arrangements with others relating to development of
technologies or new products, services and solutions; 13) our ability to manage
efficiently our manufacturing and logistics, as well as to ensure the quality,
safety, security and timely delivery of our products, services and solutions;
14) inventory management risks resulting from shifts in market demand; 15) our
ability to protect the complex technologies, which we or others develop or that
we license, from claims that we have infringed third parties' intellectual
property rights, as well as our unrestricted use on commercially acceptable
terms of certain technologies in our products, services and solutions; 16) our
ability to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks patented,
standardized or proprietary technologies from third-party infringement or
actions to invalidate the intellectual property rights of these technologies;
17) any disruption to information technology systems and networks that our
operations rely on; 18) developments under large, multi-year contracts or in
relation to major customers; 19) the management of our customer financing
exposure; 20) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 21) whether, as a result of investigations into
alleged violations of law by some former employees of Siemens AG ("Siemens"),
government authorities or others take further actions against Siemens and/or its
employees that may involve and affect the carrier-related assets and employees
transferred by Siemens to Nokia Siemens Networks, or there may be undetected
additional violations that may have occurred prior to the transfer, or
violations that may have occurred after the transfer, of such assets and
employees that could result in additional actions by government authorities; 22)
any impairment of Nokia Siemens Networks customer relationships resulting from
the ongoing government investigations involving the Siemens carrier-related
operations transferred to Nokia Siemens Networks; 23) unfavorable outcome of
litigations; 24) allegations of possible health risks from electromagnetic
fields generated by base stations and mobile devices and lawsuits related to
them, regardless of merit; as well as the risk factors specified on pages 11-28
of Nokia's annual report on Form 20-F for the year ended December 31, 2008 under
Item 3D. "Risk Factors." Other unknown or unpredictable factors or underlying
assumptions subsequently proving to be incorrect could cause actual results to
differ materially from those in the forward-looking statements. Nokia does not
undertake any obligation to publicly update or revise forward-looking
statements, whether as a result of new information, future events or otherwise,
except to the extent legally required.
Nokia, Helsinki - July 16, 2009
Media and Investor Contacts:
Corporate Communications, tel. +358 7180 34900
Investor Relations Europe, tel. +358 7180 34289
Investor Relations US, tel. +1 914 368 0555
- Nokia plans to publish its third quarter 2009 results on October 15, 2009.
www.nokia.com
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