2010-07-22 12:00:00 CEST
2010-07-22 12:00:04 CEST
REGULATED INFORMATION
Nokia - Interim report (Q1 and Q3)
Nokia Q2 2010 net sales EUR 10.0 billion, non-IFRS EPS EUR 0.11 (reported EPS EUR 0.06)
Nokia Corporation
Interim report
July 22, 2010 at 13.000 (CET+1)
Nokia Q2 2010 net sales EUR 10.0 billion, non-IFRS EPS EUR 0.11 (reported EPS
EUR 0.06)
Nokia operating cash flow of EUR 944 million
--------------------------------------------------------------------------------
| | Non-IFRS second quarter 2010 results1,2 |
--------------------------------------------------------------------------------
| EUR million | Q2/2010 | Q2/2009 | YoY | Q1/2010 | QoQ |
| | | | Change | | Change |
--------------------------------------------------------------------------------
| Net sales | 10 005 | 9 913 | 1% | 9 522 | 5% |
--------------------------------------------------------------------------------
| Devices & Services | 6 800 | 6 586 | 3% | 6 663 | 2% |
--------------------------------------------------------------------------------
| NAVTEQ | 253 | 148 | 71% | 189 | 34% |
--------------------------------------------------------------------------------
| Nokia Siemens | 3 039 | 3 199 | -5% | 2 718 | 12% |
| Networks | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 660 | 775 | -15% | 820 | -20% |
--------------------------------------------------------------------------------
| Devices & Services | 647 | 802 | -19% | 804 | -20% |
--------------------------------------------------------------------------------
| NAVTEQ | 50 | 19 | 163% | 41 | 22% |
--------------------------------------------------------------------------------
| Nokia Siemens | 51 | 2 | | 15 | |
| Networks | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 6.6% | 7.8% | | 8.6% | |
--------------------------------------------------------------------------------
| Devices & Services | 9.5% | 12.2% | | 12.1% | |
--------------------------------------------------------------------------------
| NAVTEQ | 19.8% | 12.8% | | 21.7% | |
--------------------------------------------------------------------------------
| Nokia Siemens | 1.7% | 0.1% | | 0.6% | |
| Networks | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| EPS, EUR Diluted | 0.11 | 0.15 | -27% | 0.14 | -21% |
--------------------------------------------------------------------------------
| | Reported second quarter 2010 results2 |
--------------------------------------------------------------------------------
| EUR million | Q2/2010 | Q2/2009 | YoY | Q1/2010 | QoQ |
| | | | Change | | Change |
--------------------------------------------------------------------------------
| Net sales | 10 003 | 9 912 | 1% | 9 522 | 5% |
--------------------------------------------------------------------------------
| Devices & Services | 6 799 | 6 586 | 3% | 6 663 | 2% |
--------------------------------------------------------------------------------
| NAVTEQ | 252 | 147 | 71% | 189 | 33% |
--------------------------------------------------------------------------------
| Nokia Siemens | 3 039 | 3 199 | -5% | 2 718 | 12% |
| Networks | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 295 | 427 | -31% | 488 | -40% |
--------------------------------------------------------------------------------
| Devices & Services | 643 | 763 | -16% | 831 | -23% |
--------------------------------------------------------------------------------
| NAVTEQ | -81 | -100 | | -77 | |
--------------------------------------------------------------------------------
| Nokia Siemens | -179 | -188 | | -226 | |
| Networks | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating margin | 2.9% | 4.3% | | 5.1% | |
--------------------------------------------------------------------------------
| Devices & Services | 9.5% | 11.6% | | 12.5% | |
--------------------------------------------------------------------------------
| NAVTEQ | -32.1% | -68.0% | | -40.7% | |
--------------------------------------------------------------------------------
| Nokia Siemens | -5.9% | -5.9% | | -8.3% | |
| Networks | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| EPS, EUR Diluted | 0.06 | 0.10 | -40% | 0.09 | -33% |
--------------------------------------------------------------------------------
Note 1 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 2-3, 14-16 and 18.
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 2010 and Q2 2009 can be found in the tables on pages
11-12 and 14-18 of this press release. A reconciliation of our Q1 2010 non-IFRS
results can be found on pages 10 and 12-16 of our Q1 2010 Interim Report of
April 22, 2010.
Note 2: Nokia reported net sales were EUR 19 525 million and earnings per share
(diluted) were EUR 0.16 for the period from January 1 to June 30, 2010. Further
information about the results for the period from January 1 to June 30, 2010 can
be found in this press release on pages 9-10, 12, 19-21 and 22.
SECOND QUARTER 2010 HIGHLIGHTS
- Nokia net sales of EUR 10.0 billion, up 1% year-on-year and 5% sequentially
(down 4% and up 2% at constant currency).
- Devices & Services net sales of EUR 6.8 billion, up 3% year-on-year and 2%
sequentially (down 2% and 1% at constant currency).
- Services net sales of EUR 158 million, up 7% sequentially; billings of EUR 295
million, up 29% sequentially.
- Nokia total mobile device volumes of 111.1 million units, up 8% year-on-year
and 3% sequentially.
- Nokia converged mobile device (smartphone and mobile computer) volumes of 24.0
million units, up 42% year-on-year and 12% sequentially.
- Nokia mobile device ASP (including services revenue) of EUR 61, down from EUR
62 in Q1 2010.
- Devices & Services gross margin of 30.2%, down from 34.0% in Q2 2009 and 32.4%
in Q1 2010.
- Devices & Services non-IFRS operating margin of 9.5%, down from 12.2% in Q2
2009 and 12.1% in Q1 2010.
- NAVTEQ non-IFRS net sales of EUR 253 million, up 71% year-on-year and 34%
sequentially (up 69% and 30% at constant currency).
- Nokia Siemens Networks net sales of EUR 3.0 billion, down 5% year-on-year and
up 12% sequentially (down 11% and up 10% at constant currency).
- Nokia Siemens Networks non-IFRS operating margin of 1.7%, up from 0.1% in Q2
2009 and 0.6% in Q1 2010.
- Nokia operating cash flow of EUR 944 million.
- Total cash and other liquid assets of EUR 9.5 billion at the end of Q2 2010.
- Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes as no
tax benefits are recognized for certain Nokia Siemens Networks deferred tax
items. If Nokia's estimated long-term tax rate of 26% had been applied, non-IFRS
Nokia EPS would have been approximately half a Euro cent higher.
OLLI-PEKKA KALLASVUO, NOKIA CEO: "Despite facing continuing competitive challenges, we ended the second quarter
with several reasons to be optimistic about our future. For one, the global
handset market has continued to grow at a healthy pace, led by some of the less
mature markets where Nokia is strong. We are also encouraged by the solid second
quarter performance of our Mobile Phones business, helped by an improving
line-up of affordable models.
In smartphones, we continue to renew our portfolio. We believe that the Nokia
N8, the first of our Symbian^3 devices, will have a user experience superior to
that of any smartphone Nokia has created. The Nokia N8 will be followed soon
thereafter by further Symbian^3 smartphones that we are confident will give the
platform broader appeal and reach, and kick-start Nokia's fightback at the
higher end of the market."
INDUSTRY AND NOKIA OUTLOOK
- Nokia expects Devices & Services net sales to be between EUR 6.7 billion and
EUR 7.2 billion in the third quarter 2010.
- Nokia expects its non-IFRS operating margin in Devices & Services to be
between 7% to 10% in the third quarter 2010.
- Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net sales to
be between EUR 2.7 billion and EUR 3.1 billion in the third quarter 2010.
- Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia
Siemens Networks to be between -2% and 2% in the third quarter 2010.
- Nokia continues to expect industry mobile device volumes to be up
approximately 10% in 2010, compared to 2009 (based on its revised definition of
the industry mobile device market applicable beginning in 2010).
- Nokia continues to target its mobile device volume market share to be flat in
2010, compared to 2009.
- Nokia continues to expect its mobile device value market share to be slightly
lower in 2010, compared to 2009.
- Nokia continues to target non-IFRS operating expenses in Devices & Services of
approximately EUR 5.7 billion in 2010.
- Nokia targets Devices & Services non-IFRS operating margin of 10% to 11% in
2010. This provides quantification in line with the June 16, 2010, revised
target for Devices & Services non-IFRS operating margin for 2010 to be at the
lower end of, or below, the previous target of 11% to 13%. Nokia continues to
expect Devices & Services non-IFRS operating margin during the fourth quarter
2010 to be higher than the currently targeted full year Devices & Services
non-IFRS operating margin.
- Nokia and Nokia Siemens Networks continue to expect a flat market in Euro
terms for the mobile and fixed infrastructure and related services market in
2010, compared to 2009.
- Nokia and Nokia Siemens Networks now target Nokia Siemens Networks to maintain
its market share in 2010. This is an update to Nokia and Nokia Siemens Networks
earlier target for Nokia Siemens Networks to grow faster than the market in
2010.
- Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks to
reduce its non-IFRS annualized operating expenses and production overheads by
EUR 500 million by the end of 2011, compared to the end of 2009.
- Nokia and Nokia Siemens Networks continue to target Nokia Siemens Networks
non-IFRS operating margin of breakeven to 2% in 2010.
SECOND QUARTER 2010 FINANCIAL HIGHLIGHTS
(Comparisons are given to the second quarter 2009 results, unless otherwise
indicated.)
The non-IFRS results exclusions
Q2 2010 - EUR 365 million consisting of:
- EUR 114 million restructuring charge and other associated items in Nokia
Siemens Networks
- EUR 116 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks
- EUR 131 million of intangible asset amortization and other purchase price
accounting related items arising from the acquisition of NAVTEQ
- EUR 4 million of intangible assets amortization and other purchase price
related items arising from the acquisition of OZ Communications, Novarra and
MetaCarta in Devices & Services
Q1 2010 - EUR 332 million (net) consisting of:
- EUR 125 million restructuring charge and other associated items in Nokia
Siemens Networks.
- EUR 29 million gain on sale of assets and a business in Devices & Services.
- EUR 116 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks.
- EUR 118 million of intangible asset amortization and other purchase price
accounting 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 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 associated 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.
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 2010 net sales increased 1% to EUR 10.0 billion, compared
with EUR 9.9 billion in the second quarter 2009. At constant currency, group net
sales would have decreased 4% year-on-year.
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.
--------------------------------------------------------------------------------
| SECOND QUARTER 2010 NET SALES, REPORTED & CONSTANT CURRENCY1 |
--------------------------------------------------------------------------------
| | YoY | QoQ Change |
| | Change | |
--------------------------------------------------------------------------------
| Group net sales - reported | 1% | 5% |
--------------------------------------------------------------------------------
| Group net sales - constant currency1 | -4% | 2% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Devices & Services net sales - reported | 3% | 2% |
--------------------------------------------------------------------------------
| Devices & Services net sales - constant currency1 | -2% | -1% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NAVTEQ net sales - reported | 71% | 33% |
--------------------------------------------------------------------------------
| NAVTEQ net sales - constant currency1 | 69% | 30% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nokia Siemens Networks net sales - reported | -5% | 12% |
--------------------------------------------------------------------------------
| Nokia Siemens Networks net sales - constant | -11% | 10% |
| currency1 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 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. |
--------------------------------------------------------------------------------
Nokia's second quarter 2010 reported operating profit decreased to EUR 295
million, compared with EUR 427 million in the second quarter 2009. Nokia's
second quarter 2010 non-IFRS operating profit decreased 15% to EUR 660 million,
compared with EUR 775 million in the second quarter 2009. Nokia's second quarter
2010 reported operating margin was 2.9% (4.3%). Nokia's second quarter 2010
non-IFRS operating margin was 6.6% (7.8%).
Operating cash flow for the second quarter 2010 was EUR 944 million. The
operating cash flow for the second quarter 2009 was EUR 716 million. Total cash
and other liquid assets were EUR 9.5 billion at end of the second quarter 2010,
compared with EUR 7.0 billion at the end of the second quarter 2009. At the end
of the second quarter 2010, Nokia's net debt-equity ratio (gearing) was -27%,
compared with -10% at the end of the second quarter 2009.
Devices & Services
As previously disclosed and discussed below, multiple factors negatively
impacted Nokia's Devices & Services business during the second quarter 2010, and
we expect this to continue during the third quarter 2010.
Net Sales. Second quarter 2010 Devices & Services net sales increased 3% to EUR
6.8 billion, compared with EUR 6.6 billion in the second quarter 2009. At
constant currency, Devices & Services net sales would have decreased 2%
year-on-year. The net sales increase resulted primarily from higher volumes in
most regions driven by stronger demand, partially offset by an ASP decline,
compared to the second quarter 2009. Net sales in the second quarter 2010 were
adversely impacted by the competitive environment, particularly in the high end
of the market.
The following chart sets out Devices & Services net sales for the periods
indicated, as well as the year-on-year and sequential growth rates, by
geographic area.
--------------------------------------------------------------------------------
| DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA |
--------------------------------------------------------------------------------
| (EUR million) | Q2/2010 | Q2/2009 | YoY | Q1/2010 | QoQ |
| | | | Change | | Change |
--------------------------------------------------------------------------------
| Europe | 2 173 | 2 158 | 1% | 2 186 | -1% |
--------------------------------------------------------------------------------
| Middle East & Africa | 934 | 1 038 | -10% | 1 005 | -7% |
--------------------------------------------------------------------------------
| Greater China | 1 373 | 1 136 | 21% | 1 458 | -6% |
--------------------------------------------------------------------------------
| Asia-Pacific | 1 543 | 1 568 | -2% | 1 363 | 13% |
--------------------------------------------------------------------------------
| North America | 223 | 264 | -16% | 219 | 2% |
--------------------------------------------------------------------------------
| Latin America | 553 | 422 | 31% | 432 | 28% |
--------------------------------------------------------------------------------
| Total | 6 799 | 6 586 | 3% | 6 663 | 2% |
--------------------------------------------------------------------------------
Of our total Devices & Services net sales, services contributed EUR 158 million
in the second quarter 2010, compared with EUR 148 million in the first quarter
2010. Services billings in the second quarter 2010 were EUR 295 million,
compared with EUR 228 million in the first quarter 2010. Due to the divestment
of the security appliance business in April 2009, services net sales of EUR 140
million and billings of EUR 207 million in the second quarter 2009 are not
directly comparable to services net sales and billings in the second quarter
2010.
The following chart sets out our Devices & Services net sales for the periods
indicated, as well as the year-on-year and sequential growth rates, by category.
--------------------------------------------------------------------------------
| DEVICES & SERVICES NET SALES BY CATEGORY |
--------------------------------------------------------------------------------
| (EUR million) | Q2/2010 | Q2/2009 3 | YoY | Q1/2010 | QoQ |
| | | | Change3 | | Change |
--------------------------------------------------------------------------------
| Mobile phones1 | 3 369 | 3 514 | -4% | 3 325 | 1% |
--------------------------------------------------------------------------------
| Converged mobile | 3 429 | 3 064 | 12% | 3 338 | 3% |
| devices2 | | | | | |
--------------------------------------------------------------------------------
| Total | 6 799 | 6 586 | 3% | 6 663 | 2% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Note 1: Series 30 and Series 40-based devices ranging from basic mobile |
| phones focused on voice capability to devices with a number of additional |
| functionalities, such as Internet connectivity, including the services and |
| accessories sold with them. |
--------------------------------------------------------------------------------
| Note 2: Smartphones and mobile computers, including the services and |
| accessories sold with them. |
--------------------------------------------------------------------------------
| Note 3: Does not include the net sales of the security appliance business |
| that was divested in April 2009. |
--------------------------------------------------------------------------------
Volume and Market Share. In the second quarter 2010, the total mobile device
volumes of Devices & Services were 111.1 million units, representing an increase
of 8% year-on-year and 3% sequentially. The overall industry mobile device
volumes for the same period were 338 million units based on Nokia's preliminary
estimate, representing an increase of 14% year-on-year and 5% sequentially.
Nokia's preliminary estimated mobile device market share was 33% in the second
quarter 2010, down from an estimated 35% in the second quarter 2009 and
unchanged from an estimated 33% in the first quarter 2010 (based on Nokia's
revised definition of the industry mobile device market share applicable
beginning in 2010 and applied retrospectively to 2009 for comparative purposes
only).
Of the total industry mobile device volumes, converged mobile device industry
volumes in the second quarter 2010 increased to 59.0 million units, based on
Nokia's preliminary estimate, compared with an estimated 41.0 million units in
the second quarter 2009 and 52.6 million units in the first quarter 2010. Our
own converged mobile device volumes, comprising our smartphones and mobile
computers, were 24.0 million units in the second quarter 2010, an increase of
42% compared with 16.9 million units in the second quarter 2009 and 12% compared
with 21.5 million units in the first quarter 2010. Nokia's preliminary estimated
share of the converged mobile device market was 41% in the second quarter 2010,
compared with an estimated 41% in the second quarter 2009 and an estimated 41%
in the first quarter 2010.
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.
--------------------------------------------------------------------------------
| DEVICES & SERVICES MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA |
--------------------------------------------------------------------------------
| (million units) | Q2/2010 | Q2/2009 | YoY | Q1/2010 | QoQ |
| | | | Change | | Change |
--------------------------------------------------------------------------------
| Europe | 26.1 | 23.3 | 12% | 23.9 | 9% |
--------------------------------------------------------------------------------
| Middle East & Africa | 21.0 | 18.9 | 11% | 22.2 | -5% |
--------------------------------------------------------------------------------
| Greater China | 19.3 | 18.6 | 4% | 21.1 | -9% |
--------------------------------------------------------------------------------
| Asia-Pacific | 30.8 | 30.3 | 2% | 29.2 | 5% |
--------------------------------------------------------------------------------
| North America | 2.6 | 3.2 | -19% | 2.7 | -4% |
--------------------------------------------------------------------------------
| Latin America | 11.2 | 8.9 | 26% | 8.7 | 29% |
--------------------------------------------------------------------------------
| Total | 111.1 | 103.2 | 8% | 107.8 | 3% |
--------------------------------------------------------------------------------
Nokia's 8% year-on-year increase in global mobile device volumes was primarily
driven by an improved demand environment as economic conditions had improved in
most regions compared with the difficult economic conditions of the second
quarter 2009. This improvement was offset to some extent by lower demand for our
mobile devices in North America. On a sequential basis, Nokia's 3% increase in
global mobile device volumes primarily reflected a seasonal increase in demand
in Latin America, Europe and Asia-Pacific offset to some extent by a seasonal
decrease in demand in Greater China and by lower demand for our mobile devices
in Middle East & Africa and North America.
Average Selling Price. Our mobile device average selling price (ASP) in the
second quarter 2010 was EUR 61, down from
EUR 64 in the second quarter 2009 and from EUR 62 in the first quarter 2010
(including services revenue applied retrospectively to 2009 for comparative
purposes only). The lower year-on-year ASP was primarily due to a higher
proportion of lower-priced converged mobile device sales and price pressure,
particularly in certain high-end smartphones, offset to some extent by converged
mobile devices representing a greater proportion of our overall mobile device
volumes in the second quarter 2010. On a sequential basis, our lower ASP was
primarily driven by price pressure, particularly in certain high-end
smartphones, offset to some extent by the appreciation of certain currencies
against the Euro and converged mobile devices representing a greater proportion
of our overall mobile device volumes in the second quarter 2010. Our converged
mobile device ASP in the second quarter 2010 was EUR 143, down from EUR 155 in
the first quarter 2010 and EUR 181 in the second quarter 2009. The year-on-year
and sequential declines in our converged mobile devices ASPs were mainly driven
by an increase in the proportion of such devices sold at lower price points
consistent with our strategy to reach wider groups of consumers, as well as
price pressure in certain high-end smartphones in the second quarter 2010.
The following chart sets out our Devices & Services ASP for the periods
indicated, as well as the year-on-year and sequential growth rates, by category.
--------------------------------------------------------------------------------
| DEVICES & SERVICES AVERAGE SELLING PRICE BY CATEGORY |
--------------------------------------------------------------------------------
| (EUR) | Q2/2010 | Q2/2009 | YoY | Q1/2010 | QoQ |
| | | | Change | | Change |
--------------------------------------------------------------------------------
| Mobile phones1 | 39 | 41 | -5% | 39 | 0% |
--------------------------------------------------------------------------------
| Converged mobile | 143 | 181 | -21% | 155 | -8% |
| devices2 | | | | | |
--------------------------------------------------------------------------------
| Total | 61 | 64 | -4% | 62 | -1% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Note 1: Series 30 and Series 40-based devices ranging from basic mobile |
| phones focused on voice capability to devices with a number of additional |
| functionalities, such as Internet connectivity, including the services and |
| accessories sold with them. |
--------------------------------------------------------------------------------
| Note 2: Smartphones and mobile computers, including the services and |
| accessories sold with them. |
--------------------------------------------------------------------------------
Profitability. Devices & Services gross profit (reported and non-IFRS) decreased
8% to EUR 2.1 billion, compared with EUR 2.2 billion in the second quarter 2009,
with a gross margin (reported and non-IFRS) of 30.2% (34.0%). Devices & Services
gross margin (reported and non-IFRS) was 32.4% in the first quarter 2010. The
year-on-year and sequential gross margin declines were primarily due to price
pressure, particularly in certain high-end smartphones, offset to some extent by
converged mobile devices representing a greater proportion of our overall mobile
device volumes in the second quarter 2010, compared to the second quarter 2009
and first quarter 2010. Sequentially, the gross margin decline was also due to
the depreciation of the Euro against certain currencies, which led to higher
cost of goods sold, and our foreign exchange hedging having a smaller positive
one-quarter impact on the gross margin, as well as a mix shift towards sales of
lower-gross margin converged mobile devices. During the latter part of the
second quarter 2010, Devices & Services net sales and cost of goods sold were
somewhat negatively impacted by industry-wide shortages of certain components
and we see this situation continuing through the third quarter 2010.
Devices & Services reported operating profit decreased 16% to EUR 643 million,
compared with EUR 763 million in the second quarter 2009, with a reported
operating margin of 9.5% (11.6%). Devices & Services non-IFRS operating profit
decreased 19% to EUR 647 million, compared with EUR 802 million in the second
quarter 2009, with a non-IFRS operating margin of 9.5% (12.2%). The 19%
year-on-year decrease in non-IFRS operating profit for the second quarter 2010
was driven primarily by the lower gross margin. Our operating expenses in the
second quarter 2010 were also adversely impacted by the depreciation of the Euro
against certain currencies, compared to the second quarter 2009.
Nokia will deliver a family of smartphones based on the Symbian^3 software
platform that is targeted to offer a clearly improved user experience, a high
standard of quality, and competitive value to consumers. We plan to start
shipping the Nokia N8, the first Symbian^3 device, towards the end of the third
quarter 2010. The Nokia N8 will be followed soon thereafter by further Symbian^3
smartphones that will give the platform broader appeal and reach.
NAVTEQ
Net Sales. Second quarter 2010 NAVTEQ reported net sales increased 71%
year-on-year to EUR 252 million, compared with EUR 147 million in the second
quarter 2009, benefiting from improved conditions in the automotive industry and
growth in mobile device sales. At constant currency, NAVTEQ net sales would have
increased 69% year-on-year.
Profitability. In the second quarter 2010, NAVTEQ's reported gross profit
increased to EUR 205 million, compared with EUR 125 million in the second
quarter 2009, with a gross margin of 81.3% (85.7%). Non-IFRS gross profit was
EUR 206 million (EUR 127 million), with a non-IFRS gross margin of 81.4%
(85.8%). In the second quarter 2010, NAVTEQ's reported operating loss decreased
to EUR 81 million, compared with a EUR 100 million loss in the second quarter
2009. The reported operating margin was -32.1% (-68.0%). NAVTEQ's non-IFRS
operating profit was EUR 50 million (EUR 19 million), with a non-IFRS operating
margin of 19.8% (12.8%) in the second quarter 2010.
Nokia Siemens Networks
Net Sales. Second quarter 2010 net sales decreased 5% to EUR 3.0 billion,
compared with EUR 3.2 billion in the second quarter 2009. The decrease was
primarily due to the ongoing industry-wide issue related to security clearances
in India, which is preventing the completion of product sales to customers, and
shortages of certain components that are affecting the broader industry; we see
both of these situations continuing during the third quarter 2010. At constant
currency, Nokia Siemens Networks net sales would have decreased 11%
year-on-year. Of total Nokia Siemens Networks net sales, services contributed
EUR 1.4 billion in the second quarter 2010.
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.
--------------------------------------------------------------------------------
| NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA | | |
--------------------------------------------------------------------------------
| (EUR million) | Q2/2010 | Q2/2009 | YoY Change | Q1/2010 | QoQ Change |
--------------------------------------------------------------------------------
| Europe | 1 136 | 1 209 | -6% | 1 065 | 7% |
--------------------------------------------------------------------------------
| Middle East & | 400 | 459 | -13% | 297 | 35% |
| Africa | | | | | |
--------------------------------------------------------------------------------
| Greater China | 357 | 353 | 1% | 275 | 30% |
--------------------------------------------------------------------------------
| Asia-Pacific | 594 | 648 | -8% | 632 | -6% |
--------------------------------------------------------------------------------
| North America | 181 | 208 | -13% | 153 | 18% |
--------------------------------------------------------------------------------
| Latin America | 371 | 322 | 15% | 296 | 25% |
--------------------------------------------------------------------------------
| Total | 3 039 | 3 199 | -5% | 2 718 | 12% |
--------------------------------------------------------------------------------
Profitability. Nokia Siemens Networks reported gross profit increased 1% to EUR
869 million, compared with EUR 860 million in the second quarter 2009, with a
gross margin of 28.6% (26.9%). Nokia Siemens Networks non-IFRS gross profit
increased 4% to EUR 937 million, compared with EUR 897 million in the second
quarter 2009, with a non-IFRS gross margin of 30.8% (28.0%). The higher
year-on-year non-IFRS gross profit in the second quarter 2010 was primarily due
to continued progress on product cost reductions and a favorable regional mix,
compared to the second quarter 2009.
Nokia Siemens Networks second quarter 2010 reported operating loss was EUR 179
million, compared with a reported operating loss of EUR 188 million in the
second quarter 2009, with a reported operating margin of -5.9% (-5.9%). Nokia
Siemens Networks non-IFRS operating profit was EUR 51 million in the second
quarter 2010, compared with a non-IFRS operating profit of EUR 2 million in the
second quarter 2009, with a non-IFRS operating margin of 1.7% (0.1%). The
year-on-year improvement in Nokia Siemens Networks non-IFRS operating result was
primarily due to the improved gross margin.
Q2 2010 OPERATING HIGHLIGHTS
Devices & Services
- Nokia continued to build the various elements of, and attract consumers to,
Ovi. Highlights for the quarter included the following:
- To support the expansion of Ovi, Nokia acquired MetaCarta Inc. to obtain its
geographic intelligence technology and expertise, and Novarra Inc., whose mobile
browser and services platform will be used by Nokia to deliver enhanced Internet
experiences on Nokia's Series 40-based mobile phones.
- Nokia continued to expand elements of Ovi into different markets. For example,
Nokia brought its unlimited music downloads offering to China and India, as well
as expanded the footprint of Ovi Life Tools, its data and entertainment service,
to China.
- Ovi continued to gain further traction with consumers. For example, cumulative
downloads of Ovi Maps, the free navigation offering, reached more than 17
million by the end of the quarter. Nokia also began including the offering in
all its GPS-enabled smartphones out-of-the-box.
- Nokia took a significant step to building greater presence for Ovi on the web,
announcing a worldwide strategic alliance with Yahoo! that will see the two
companies leverage each others' strengths in e-mail, instant messaging and maps
and navigation services. As part of the alliance, Nokia will be the exclusive,
global provider of Yahoo!'s maps and navigation services, integrating Ovi Maps
across Yahoo! properties, branded as "powered by Ovi", while Yahoo! will become
the exclusive, global provider of Nokia's Ovi Mail and Ovi Chat services branded
as "Ovi Mail / Ovi Chat powered by Yahoo!".
- Nokia and Microsoft launched Microsoft Communicator Mobile, the first
application developed together as part of their alliance around mobile
productivity. The application is available to owners of selected Nokia Eseries
devices through Ovi Store.
- Nokia continued to grow and enhance the usability of Ovi Store for consumers
and publishers. The release of Ovi Store 1.7 during the second quarter delivers
improvements to browsing and search consumer experience. Nokia's most popular
devices each have access to more than 13 000 content items (including apps) in
the store. Ovi App Wizard achieved 1 million downloads in just 10 weeks since
launch with thousands of partners publishing thousands of apps. The store has
been attracting on average more than 1.7 million downloads a day. Additionally,
90% of Nokia consumers who can access Ovi Store can now do so in their local
language (where Ovi Store supports at least one of the country's primary
languages), while more than 80% of those with local language availability can
also purchase from Ovi Store in their local currency.
- Nokia launched the Nokia N8, the first Nokia smartphone based on the
next-generation Symbian^3 software that is targeted to offer a clearly improved
user experience, a higher standard of quality, and competitive value to
consumers. The Nokia N8 also offers industry-leading imaging, video and
entertainment capabilities.
- Nokia launched a trio of Nokia C1 phones, one of which features a 2-in-1
double SIM solution. Nokia also launched the Nokia C2, a dual SIM device with
dual standby capability.
- Nokia launched the Nokia Bicycle Charger Kit, an alternative charging solution
built especially for people with limited access to electricity.
- Nokia started shipments of the Nokia C3, a mobile phone featuring a full
QWERTY keyboard and optimized for messaging and social networking.
- Nokia launched the Nokia C6, a messaging-optimized smartphone with a 3.2-inch
HD touchscreen display, a slide out four-row QWERTY keyboard and a 5 megapixel
camera.
- Nokia launched the Nokia E5, a messaged-optimized smartphone that builds on
the success of the Nokia E71 and Nokia E72.
- Nokia strengthened its portfolio of devices based on China's TD-SCDMA standard
with the launch of the Nokia X5 and the Nokia C5.
- Nokia launched the Nokia X2, featuring dual speakers, dedicated music keys, an
FM stereo radio and support for up to 16GB of storage via a microSD card.
- Nokia started shipments of the Nokia E73 Mode, a QWERTY smartphone exclusively
for T-Mobile customers in the United States.
NAVTEQ
- NAVTEQ announced the following:
- The launch of full, navigable map coverage of Bulgaria and Egypt, as well as a
completely updated addressing system in the Kingdom of Saudi Arabia.
- The launch of NAVTEQ Traffic Patterns, NAVTEQ Lonely Planet Trips and NAVTEQ
LocationPoint Advertising in Australia.
- An expanded visual content offering for its Singapore map, including 3D
Landmarks, Enhanced 3D City Models, Junction View image and Sign-As-real images.
- Successful advertiser trials in Europe with McDonald's and Best Western
powered by NAVTEQ's LocationPoint Advertising platform.
- Garmin's selection of NAVTEQ Traffic for its first European connected PND
service.
- An expanded agreement with the United States National Geospatial Intelligence
Agency under the Homeland Security Infrastructure Program for utilization of
NAVTEQ map data.
- The addition of the Lonely Planet Travel Guide™ to the NAVTEQ map of India.
Nokia Siemens Networks
- Nokia Siemens Networks smart device solutions, which allow improved battery
life, better coverage and faster download speeds, were deployed in London to
improve user experience on the O2 network. Similar contracts were agreed with
many operators including Elisa in Finland, Mosaic Telecom in the United States,
SFR in France, Indosat in Indonesia, Cable & Wireless Communications in the UK,
Cell C in South Africa and Qatar Telecom in Qatar.
- Nokia Siemens Networks signed a full operation and maintenance managed
services contract with Mobile TeleSystems in Russia, a seven-year service
management and equipment supply agreement with Vodafone Hutchison in Australia
and a large services contract with Telefónica O2 to expand network capacity
across Germany.
- In April, Nokia Siemens Networks signed a EUR 750 million frame agreement with
China Mobile and China Unicom to continue providing GSM, WCDMA and TD-SCDMA
mobile network equipment and solutions.
- Nokia Siemens Networks complemented its portfolio with TD-LTE support using
its common software definable Flexi Multiradio Base Station including trials in
China and Taiwan, interoperability tests with Samsung devices as well as launch
of the TD-LTE Open Lab in China.
- Nokia Siemens Networks continued to prepare for commercial LTE deployments
with technological world-first trials, including a 75 kilometer LTE call with
Telstra in Australia, the launch of Self Organizing Networks offering for LTE to
reduce human error and cost, and started production of LTE-ready Flexi
Multiradio Base Station radio frequency modules for 800 MHz spectrum suitable
for rural areas.
- Nokia Siemens Networks achieved industry firsts with the unveiling of a
migration path to 400-Gigabit-per-second optical transport and a next generation
packet optical transport solution to help operators cut their costs. During the
quarter Nokia Siemens Networks also delivered a major optical transport network
upgrade to Aurora, Australia.
- T-Mobile UK and 3 UK awarded Nokia Siemens Networks a GBP 400 million contract
to build Europe's largest shared network (MBNL) and will offer smartphone and
dongle customers the biggest 3G coverage in the United Kingdom. The HSDPA 3G
network already offers outdoor coverage to more than 90% of Britain's
population.
- Vodafone Portugal selected Nokia Siemens Networks Service Broker, which is
based on an OpenCloud platform and will enable the seamless convergence of
legacy services with new data services, to satisfy growing subscriber demand for
personalized services.
For more information on the operating highlights mentioned above, please refer
to related press announcements at the following links: www.nokia.com/press,
www.navteq.com/about/press.html, www.nokiasiemensnetworks.com/press
NOKIA IN THE SECOND QUARTER 2010
(The following discussion is of Nokia's reported results. Comparisons are given
to the second quarter 2009 results, unless otherwise indicated.)
Nokia's net sales increased 1% to EUR 10 003 million (EUR 9 912 million). Net
sales of Devices & Services increased 3% to
EUR 6 799 million (EUR 6 586 million). Net sales of NAVTEQ increased 71% to EUR
252 million (EUR 147 million). Net sales of Nokia Siemens Networks decreased 5%
to EUR 3 039 million (EUR 3 199 million).
Operating profit decreased 31% to EUR 295 million (EUR 427 million),
representing an operating margin of 2.9% (4.3%). Operating profit in Devices &
Services decreased 16% to EUR 643 million (EUR 763 million), representing an
operating margin of 9.5% (11.6%). Operating loss in NAVTEQ was EUR 81 million
(operating loss EUR 100 million), representing an operating margin of -32.1%
(-68.0%). Operating loss in Nokia Siemens Networks was EUR 179 million
(operating loss EUR 188 million), representing an operating margin of -5.9%
(-5.9%). Group Common Functions reported expense totaled EUR 33 million (EUR 48
million).
In the period from April to June 2010, net financial expense was EUR 68 million
(EUR 61 million). Profit before tax was
EUR 221 million (EUR 380 million). Profit was EUR 104 million (EUR 287 million),
based on a profit of EUR 227 million (EUR 380 million) attributable to equity
holders of the parent and a loss of EUR 123 million (loss of EUR 93 million)
attributable to non-controlling interests. Earnings per share decreased to EUR
0.06 (basic) and to EUR 0.06 (diluted), compared with EUR 0.10 (basic) and EUR
0.10 (diluted) in the second quarter of 2009.
NOKIA IN JANUARY - JUNE 2010
(The following discussion is of Nokia's reported results. Comparisons are given
to the January-June 2009 results, unless otherwise indicated.)
Nokia's net sales increased 2% to EUR 19 525 million (EUR 19 186 million). Net
sales of Devices & Services increased 6% to EUR 13 462 million (EUR 12 759
million). Net sales of NAVTEQ were EUR 441 million (EUR 279 million). Net sales
of Nokia Siemens Networks decreased 7% to EUR 5 757 million (EUR 6 189 million).
Operating profit increased 62% to EUR 783 million (EUR 482 million),
representing an operating margin of 4.0% (2.5%). Operating profit in Devices &
Services increased 13% to EUR 1 474 million (EUR 1 310 million), representing an
operating margin of 10.9% (10.3%). Operating loss in NAVTEQ was EUR 158 million
(loss of EUR 220 million), representing an operating margin of -35.8% (-78.9%).
Operating loss in Nokia Siemens Networks was EUR 405 million (loss of EUR 549
million), representing an operating margin of -7.0% (-8.9%). Corporate Common
Functions reported expense totaled EUR 53 million (EUR 59 million).
In the period from January to June 2010, net financial expense was EUR 141
million (net financial expense EUR 138 million). Profit before tax was EUR 632
million (EUR 368 million). Profit was EUR 279 million (EUR 291 million), based
on a profit of EUR 576 million (EUR 502 million) attributable to equity holders
of the parent and a loss of EUR 297 million (loss EUR 211 million) attributable
to non-controlling interests. Earnings per share increased to EUR 0.16 (basic)
and EUR 0.16 (diluted), compared with EUR 0.14 (basic) and EUR 0.13 (diluted) in
January-June 2009.
PERSONNEL
The average number of employees during the period from January to June 2010 was
126 876, of which the average number of employees at Nokia Siemens Networks was
64 759. At June 30, 2010, Nokia employed a total of 129 746 people (120 827
people at June 30, 2009), of which 65 251 were employed by Nokia Siemens
Networks (60 983 people at June 30, 2009).
SHARES
The total number of Nokia shares at June 30, 2010 was 3 744 956 052. At June 30,
2010, Nokia and its subsidiary companies owned 36 112 670 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 |
| | 4-6/2010 | 4-6/2009 | | 4-6/2010 | 4-6/2009 |
--------------------------------------------------------------------------------
| Net sales | 10,003 | 9,912 | | 10,005 | 9,913 |
--------------------------------------------------------------------------------
| Cost of sales | -6,932 | -6,685 | | -6,864 | -6,648 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 3,071 | 3,227 | | 3,141 | 3,265 |
--------------------------------------------------------------------------------
| Research and | -1,483 | -1,458 | | -1,338 | -1,326 |
| development expenses | | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -1,005 | -1,003 | | -897 | -898 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administrative and | -286 | -304 | | -270 | -263 |
| general expenses | | | | | |
--------------------------------------------------------------------------------
| Other income | 35 | 143 | | 35 | 75 |
--------------------------------------------------------------------------------
| Other expenses | -37 | -178 | | -11 | -78 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 295 | 427 | | 660 | 775 |
--------------------------------------------------------------------------------
| Share of results of | -6 | 14 | | -6 | 14 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Financial income and | -68 | -61 | | -68 | -61 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 221 | 380 | | 586 | 728 |
--------------------------------------------------------------------------------
| Tax | -117 | -93 | | -182 | -204 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit | 104 | 287 | | 404 | 524 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit attributable to | 227 | 380 | | 419 | 552 |
| equity holders of the | | | | | |
| parent | | | | | |
--------------------------------------------------------------------------------
| Loss attributable to | -123 | -93 | | -15 | -28 |
| non-controlling | | | | | |
| interests | | | | | |
--------------------------------------------------------------------------------
| | 104 | 287 | | 404 | 524 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | |
| EUR | | | | | |
--------------------------------------------------------------------------------
| (for profit | | | | | |
| attributable to the | | | | | |
| equity holders of the | | | | | |
| parent) | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.06 | 0.10 | | 0.11 | 0.15 |
--------------------------------------------------------------------------------
| Diluted | 0.06 | 0.10 | | 0.11 | 0.15 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares | | | | | |
| (1 000 shares) | | | | | |
--------------------------------------------------------------------------------
| Basic | 3,708,820 | 3,704,819 | | 3,708,820 | 3,704,819 |
--------------------------------------------------------------------------------
| Diluted | 3,711,938 | 3,711,297 | | 3,711,938 | 3,711,297 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 463 | 443 | | 212 | 201 |
| amortization, total | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Share-based | 13 | 9 | | 13 | 9 |
| compensation expense, | | | | | |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) | | | | | |
--------------------------------------------------------------------------------
| | Reported | Reported | | Non-IFRS | Non-IFRS |
| | 1-6/2010 | 1-6/2009 | | 1-6/2010 | 1-6/2009 |
--------------------------------------------------------------------------------
| Net sales | 19,525 | 19,186 | | 19,527 | 19,189 |
--------------------------------------------------------------------------------
| Cost of sales | -13,376 | -13,056 | | -13,237 | -12,958 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 6,149 | 6,130 | | 6,290 | 6,231 |
--------------------------------------------------------------------------------
| Research and | -2,916 | -2,958 | | -2,618 | -2,684 |
| development expenses | | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -1,939 | -1,965 | | -1,722 | -1,753 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administrative and | -546 | -584 | | -502 | -513 |
| general expenses | | | | | |
--------------------------------------------------------------------------------
| Other income | 138 | 199 | | 109 | 131 |
--------------------------------------------------------------------------------
| Other expenses | -103 | -340 | | -77 | -123 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating profit | 783 | 482 | | 1,480 | 1,289 |
--------------------------------------------------------------------------------
| Share of results of | -10 | 24 | | -10 | 24 |
| associated companies | | | | | |
--------------------------------------------------------------------------------
| Financial income and | -141 | -138 | | -141 | -138 |
| expenses | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit before tax | 632 | 368 | | 1,329 | 1,175 |
--------------------------------------------------------------------------------
| Tax | -353 | -77 | | -469 | -321 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit | 279 | 291 | | 860 | 854 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit attributable to | 576 | 502 | | 935 | 909 |
| equity holders of the | | | | | |
| parent | | | | | |
--------------------------------------------------------------------------------
| Loss attributable to | -297 | -211 | | -75 | -55 |
| non-controlling | | | | | |
| interests | | | | | |
--------------------------------------------------------------------------------
| | 279 | 291 | | 860 | 854 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | | |
| EUR | | | | | |
--------------------------------------------------------------------------------
| (for profit | | | | | |
| attributable to the | | | | | |
| equity holders of the | | | | | |
| parent) | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.16 | 0.14 | | 0.25 | 0.25 |
--------------------------------------------------------------------------------
| Diluted | 0.16 | 0.13 | | 0.25 | 0.24 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | | |
| shares | | | | | |
| (1 000 shares) | | | | | |
--------------------------------------------------------------------------------
| Basic | 3,708,650 | 3,702,362 | | 3,708,650 | 3,702,362 |
--------------------------------------------------------------------------------
| Diluted | 3,712,468 | 3,718,775 | | 3,712,468 | 3,718,775 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 900 | 905 | | 413 | 420 |
| amortization, total | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Share-based | 19 | -16 | | 19 | -16 |
| compensation expense, | | | | | |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA NET SALES BY GEOGRAPHIC AREA, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Reported | 4-6/2010 | Y-o-Y | 4-6/2009 | 1-12/2009 |
| | | change, % | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 3,334 | -2 | 3,418 | 14,790 |
--------------------------------------------------------------------------------
| Middle-East & Africa | 1,343 | -11 | 1,503 | 5,605 |
--------------------------------------------------------------------------------
| Greater China | 1,737 | 16 | 1,491 | 6,429 |
--------------------------------------------------------------------------------
| Asia-Pacific | 2,145 | -3 | 2,220 | 8,967 |
--------------------------------------------------------------------------------
| North America | 513 | -4 | 534 | 2,061 |
--------------------------------------------------------------------------------
| Latin America | 931 | 25 | 746 | 3,132 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 10,003 | 1 | 9,912 | 40,984 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA PERSONNEL BY GEOGRAPHIC AREA |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 30.06.10 | Y-o-Y | 30.06.09 | 31.12.09 |
| | | change, % | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Europe | 56,070 | -7 | 59,996 | 57,490 |
--------------------------------------------------------------------------------
| Middle-East & Africa | 4,630 | 11 | 4,164 | 4,172 |
--------------------------------------------------------------------------------
| Greater China | 19,183 | 31 | 14,596 | 15,774 |
--------------------------------------------------------------------------------
| Asia-Pacific | 26,707 | 20 | 22,236 | 24,382 |
--------------------------------------------------------------------------------
| North America | 8,241 | 2 | 8,074 | 7,911 |
--------------------------------------------------------------------------------
| Latin America | 14,915 | 27 | 11,761 | 13,824 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 129,746 | 7 | 120,827 | 123,553 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DEVICES & SERVICES, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Reporte | Special | Non-IFRS | Reported | Special | Non-IFRS |
| | d | items & | 4-6/2010 | 4-6/2009 | items & | 4-6/2009 |
| | 4-6/201 | PPA | | | PPA | |
| | 0 | 4-6/201 | | | 4-6/2009 | |
| | | 0 | | | | |
--------------------------------------------------------------------------------
| Net sales 1) | 6,799 | 1 | 6,800 | 6,586 | - | 6,586 |
--------------------------------------------------------------------------------
| Cost of | -4,747 | - | -4,747 | -4,345 | - | -4,345 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 2,052 | 1 | 2,053 | 2,241 | - | 2,241 |
--------------------------------------------------------------------------------
| % of | 30.2 | | 30.2 | 34.0 | | 34.0 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | -740 | 3 | -737 | -733 | 2 | -731 |
| development | | | | | | |
| expenses 2) | | | | | | |
--------------------------------------------------------------------------------
| % of | 10.9 | | 10.8 | 11.1 | | 11.1 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -587 | - | -587 | -599 | - | -599 |
| marketing | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| % of | 8.6 | | 8.6 | 9.1 | | 9.1 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrati | -101 | - | -101 | -106 | - | -106 |
| ve and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| % of | 1.5 | | 1.5 | 1.6 | | 1.6 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | 19 | - | 19 | -40 | 37 | -3 |
| and | | | | | | |
| expenses 3) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | 643 | 4 | 647 | 763 | 39 | 802 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | 9.5 | | 9.5 | 11.6 | | 12.2 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 1 million in Q2/10. |
--------------------------------------------------------------------------------
| 2) Amortization of acquired intangible assets of EUR 3 million in Q2/10 and |
| EUR 2 million in Q2/09 |
--------------------------------------------------------------------------------
| 3) Restructuring charges of EUR 83 million, impairment of assets EUR 22 |
| million and gain on sale of security business of EUR 68 million in Q2/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NAVTEQ, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Reported | Special | Non-IFRS | Reported | Special | Non-IFRS |
| | 4-6/2010 | items & | 4-6/2010 | 4-6/2009 | items & | 4-6/2009 |
| | | PPA | | | PPA | |
| | | 4-6/201 | | | 4-6/2009 | |
| | | 0 | | | | |
--------------------------------------------------------------------------------
| Net sales | 252 | 1 | 253 | 147 | 1 | 148 |
| 1) | | | | | | |
--------------------------------------------------------------------------------
| Cost of | -47 | - | -47 | -21 | | -21 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross | 205 | 1 | 206 | 126 | 1 | 127 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | 81.3 | | 81.4 | 85.7 | | 85.8 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research | -197 | 98 | -99 | -158 | 88 | -70 |
| and | | | | | | |
| development | | | | | | |
| expenses 2) | | | | | | |
--------------------------------------------------------------------------------
| % of | 78.2 | | 39.1 | 107.5 | | 47.3 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -68 | 32 | -36 | -55 | 30 | -25 |
| marketing | | | | | | |
| expenses 3) | | | | | | |
--------------------------------------------------------------------------------
| % of | 27.0 | | 14.2 | 37.4 | | 16.9 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administra | -18 | - | -18 | -15 | - | -15 |
| tive and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| % of | 7.1 | | 7.1 | 10.2 | | 10.1 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other | -3 | - | -3 | 2 | - | 2 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -81 | 131 | 50 | -100 | 119 | 19 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | -32.1 | | 19.8 | -68.0 | | 12.8 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 1 million in Q2/10 and |
| EUR 1 million in Q2/09. |
--------------------------------------------------------------------------------
| 2) Amortization of acquired intangibles of EUR 98 million in Q2/10 and EUR |
| 88 million in Q2/09. |
--------------------------------------------------------------------------------
| 3) Amortization of acquired intangibles of EUR 32 million in Q2/10 and EUR |
| 30 million in Q2/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA SIEMENS NETWORKS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Reporte | Special | Non-IFRS | Reported | Special | Non-IFRS |
| | d | items & | 4-6/2010 | 4-6/2009 | items & | 4-6/2009 |
| | 4-6/201 | PPA | | | PPA | |
| | 0 | 4-6/2010 | | | 4-6/2009 | |
| | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 3,039 | - | 3,039 | 3,199 | - | 3,199 |
--------------------------------------------------------------------------------
| Cost of | -2,170 | 68 | -2,102 | -2,339 | 37 | -2,302 |
| sales 1) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross | 869 | 68 | 937 | 860 | 37 | 897 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | 28.6 | | 30.8 | 26.9 | | 28.0 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research | -545 | 44 | -501 | -566 | 42 | -524 |
| and | | | | | | |
| development | | | | | | |
| expenses 2) | | | | | | |
--------------------------------------------------------------------------------
| % of | 17.9 | | 16.5 | 17.7 | | 16.4 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -349 | 76 | -273 | -349 | 75 | -274 |
| marketing | | | | | | |
| expenses 3) | | | | | | |
--------------------------------------------------------------------------------
| % of | 11.5 | | 9.0 | 10.9 | | 8.6 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administra | -140 | 16 | -124 | -149 | 41 | -108 |
| tive and | | | | | | |
| general | | | | | | |
| expenses 4) | | | | | | |
--------------------------------------------------------------------------------
| % of | 4.6 | | 4.1 | 4.7 | | 3.4 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other | -14 | 26 | 12 | 16 | -5 | 11 |
| income and | | | | | | |
| expenses 5) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -179 | 230 | 51 | -188 | 190 | 2 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | -5.9 | | 1.7 | -5.9 | | 0.1 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Restructuring charges of EUR 68 million in Q2/10 and EUR 37 million in |
| Q2/09. |
--------------------------------------------------------------------------------
| 2) Reversal of restructuring charges of EUR 1 million and amortization of |
| acquired intangibles of EUR 45 million in Q2/10. Reversal of restructuring |
| charges of EUR 3 million and amortization of acquired intangibles of EUR 45 |
| million in Q2/09. |
--------------------------------------------------------------------------------
| 3) Restructuring charges of EUR 5 million and amortization of acquired |
| intangibles of EUR 71 million in Q2/10. Restructuring charges of EUR 4 |
| million and amortization of acquired intangibles of EUR 71 million in Q2/09. |
--------------------------------------------------------------------------------
| 4) Restructuring charges of EUR 16 million in Q2/10 and EUR 41 million in |
| Q2/09. |
--------------------------------------------------------------------------------
| 5) Restructuring charges of EUR 26 million in Q2/10. Reversal of |
| restructuring charges of EUR 10 million and amortization of acquired |
| intangibles of EUR 5 million in Q2/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP COMMON FUNCTIONS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) | | | | | | |
--------------------------------------------------------------------------------
| | Reported | Special | Non-IFR | Reported | Special | Non-IFRS |
| | 4-6/2010 | items & | S | 4-6/2009 | items & | 4-6/2009 |
| | | PPA | 4-6/201 | | PPA | |
| | | 4-6/2010 | 0 | | 4-6/2009 | |
| | | | | | | |
--------------------------------------------------------------------------------
| Net sales | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| Cost of | - | - | - | - | - | - |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross | - | - | - | - | - | - |
| profit | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research | -1 | - | -1 | -1 | - | -1 |
| and | | | | | | |
| development | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -1 | - | -1 | - | - | - |
| marketing | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrat | -27 | - | -27 | -34 | - | -34 |
| ive and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other | -4 | - | -4 | -13 | - | -13 |
| income and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -33 | - | -33 | -48 | - | -48 |
| profit | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| NOKIA | | | | | | |
| GROUP | | | | | | |
--------------------------------------------------------------------------------
| | Reported | Special | Non-IFRS | Reported | Special | Non-IFRS |
| | 4-6/2010 | items & | 4-6/2010 | 4-6/2009 | items & | 4-6/2009 |
| | | PPA | | | PPA | |
| | | 4-6/201 | | | 4-6/200 | |
| | | 0 | | | 9 | |
--------------------------------------------------------------------------------
| Net | 10,003 | 2 | 10,005 | 9,912 | 1 | 9,913 |
| sales 1) | | | | | | |
--------------------------------------------------------------------------------
| Cost of | -6,932 | 68 | -6,864 | -6,685 | 37 | -6,648 |
| sales 2) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross | 3,071 | 70 | 3,141 | 3,227 | 38 | 3,265 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | 30.7 | | 31.4 | 32.6 | | 32.9 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research | -1,483 | 145 | -1,338 | -1,458 | 132 | -1,326 |
| and | | | | | | |
| developme | | | | | | |
| nt | | | | | | |
| expenses | | | | | | |
| 3) | | | | | | |
--------------------------------------------------------------------------------
| % of | 14.8 | | 13.4 | 14.7 | | 13.4 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling | -1,005 | 108 | -897 | -1,003 | 105 | -898 |
| and | | | | | | |
| marketing | | | | | | |
| expenses | | | | | | |
| 4) | | | | | | |
--------------------------------------------------------------------------------
| % of | 10.0 | | 9.0 | 10.1 | | 9.1 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administr | -286 | 16 | -270 | -304 | 41 | -263 |
| a | | | | | | |
| tive and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
| 5) | | | | | | |
--------------------------------------------------------------------------------
| % of | 2.9 | | 2.7 | 3.1 | | 2.7 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other | -2 | 26 | 24 | -35 | 32 | -3 |
| income | | | | | | |
| and | | | | | | |
| expenses | | | | | | |
| 6) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | 295 | 365 | 660 | 427 | 348 | 775 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | 2.9 | | 6.6 | 4.3 | | 7.8 |
| net sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Share of | -6 | | -6 | 14 | | 14 |
| results | | | | | | |
| of | | | | | | |
| associate | | | | | | |
| d | | | | | | |
| companies | | | | | | |
--------------------------------------------------------------------------------
| Financial | -68 | | -68 | -61 | | -61 |
| income | | | | | | |
| and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit | 221 | 365 | 586 | 380 | 348 | 728 |
| before | | | | | | |
| tax | | | | | | |
--------------------------------------------------------------------------------
| Tax | -117 | -65 | -182 | -93 | -111 | -204 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit | 104 | 300 | 404 | 287 | 237 | 524 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit | 227 | 192 | 419 | 380 | 172 | 552 |
| attribu | | | | | | |
| table to | | | | | | |
| equity | | | | | | |
| holders | | | | | | |
| of | | | | | | |
| the | | | | | | |
| parent | | | | | | |
--------------------------------------------------------------------------------
| Profit | -123 | 108 | -15 | -93 | 65 | -28 |
| attribu | | | | | | |
| table to | | | | | | |
| non-contr | | | | | | |
| olling | | | | | | |
| interests | | | | | | |
--------------------------------------------------------------------------------
| | 104 | 300 | 404 | 287 | 237 | 524 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings | | | | | | |
| per | | | | | | |
| share, | | | | | | |
| EUR | | | | | | |
--------------------------------------------------------------------------------
| (for | | | | | | |
| profit | | | | | | |
| attribu | | | | | | |
| table to | | | | | | |
| the | | | | | | |
| equity | | | | | | |
| holders | | | | | | |
| of the | | | | | | |
| parent) | | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.06 | | 0.11 | 0.10 | | 0.15 |
--------------------------------------------------------------------------------
| Diluted | 0.06 | | 0.11 | 0.10 | | 0.15 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | |
| number of | | | | | | |
| shares | | | | | | |
| (1 000 | | | | | | |
| shares) | | | | | | |
--------------------------------------------------------------------------------
| Basic | 3,708,82 | | 3,708,820 | 3,704,819 | | 3,704,819 |
| | 0 | | | | | |
--------------------------------------------------------------------------------
| Diluted | 3,711,93 | | 3,711,938 | 3,711,297 | | 3,711,297 |
| | 8 | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Depreci | 463 | -251 | 212 | 443 | -242 | 201 |
| ation and | | | | | | |
| amortiza | | | | | | |
| tion, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | 13 | - | 13 | 9 | - | 9 |
| ed | | | | | | |
| compensat | | | | | | |
| i | | | | | | |
| on | | | | | | |
| expense, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 2 million Q2/10 and EUR 1 |
| million in Q2/09. |
--------------------------------------------------------------------------------
| 2) Restructuring charges of EUR 68 million in Q2/10 and EUR 37 million in |
| Q2/09. |
--------------------------------------------------------------------------------
| 3) Amortization of acquired intangible assets of EUR 146 million and |
| reversal of restructuring charges of EUR 1 million in Q2/10. Amortization of |
| acquired intangible assets of EUR 135 million and reversal of restructuring |
| charges of EUR 3 million in Q2/09. |
--------------------------------------------------------------------------------
| 4) Restructuring charges of EUR 5 million and amortization of acquired |
| intangible assets of EUR 103 million in Q2/10. Restructuring charges of 4 |
| million and amortization of acquired intangible assets of EUR 101 million in |
| Q2/09. |
--------------------------------------------------------------------------------
| 5) Restructuring charges of EUR 16 million in Q2/10 and EUR 41 million in |
| Q2/09. |
--------------------------------------------------------------------------------
| 6) Restructuring charges of EUR 26 million in Q2/10. Restructuring charges |
| of EUR 73 million, amortization of acquired intangible assets of EUR 5 |
| million, impairment of intangible assets of EUR 22 million and gain on sale |
| of security appliance business of EUR 68 million in Q2/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, IFRS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 10,003 | 9,912 | 19,525 | 19,186 | 40,984 |
--------------------------------------------------------------------------------
| Cost of sales | -6,932 | -6,685 | -13,376 | -13,056 | -27,720 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 3,071 | 3,227 | 6,149 | 6,130 | 13,264 |
--------------------------------------------------------------------------------
| Research and | -1,483 | -1,458 | -2,916 | -2,958 | -5,909 |
| development | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Selling and | -1,005 | -1,003 | -1,939 | -1,965 | -3,933 |
| marketing | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administrative | -286 | -304 | -546 | -584 | -1,145 |
| and general | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Goodwill | - | - | - | - | -908 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Other income | 35 | 143 | 138 | 199 | 338 |
--------------------------------------------------------------------------------
| Other expenses | -37 | -178 | -103 | -340 | -510 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Operating | 295 | 427 | 783 | 482 | 1,197 |
| profit | | | | | |
--------------------------------------------------------------------------------
| Share of | -6 | 14 | -10 | 24 | 30 |
| results of | | | | | |
| associated | | | | | |
| companies | | | | | |
--------------------------------------------------------------------------------
| Financial | -68 | -61 | -141 | -138 | -265 |
| income and | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit before | 221 | 380 | 632 | 368 | 962 |
| tax | | | | | |
--------------------------------------------------------------------------------
| Tax | -117 | -93 | -353 | -77 | -702 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit | 104 | 287 | 279 | 291 | 260 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | 227 | 380 | 576 | 502 | 891 |
| attributable to | | | | | |
| equity holders | | | | | |
| of the parent | | | | | |
--------------------------------------------------------------------------------
| Loss | -123 | -93 | -297 | -211 | -631 |
| attributable to | | | | | |
| non-controlling | | | | | |
| interests | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | 104 | 287 | 279 | 291 | 260 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | | | | |
--------------------------------------------------------------------------------
| (for profit attributable to the equity holders of the parent) | |
--------------------------------------------------------------------------------
| Basic | 0.06 | 0.10 | 0.16 | 0.14 | 0.24 |
--------------------------------------------------------------------------------
| Diluted | 0.06 | 0.10 | 0.16 | 0.13 | 0.24 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares (1 000 shares) | | | |
--------------------------------------------------------------------------------
| Basic | 3,708,820 | 3,704,819 | 3,708,650 | 3,702,362 | 3,705,116 |
--------------------------------------------------------------------------------
| Diluted | 3,711,938 | 3,711,297 | 3,712,468 | 3,718,775 | 3,721,072 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Depreciation | 463 | 443 | 900 | 905 | 1,784 |
| and | | | | | |
| amortization, | | | | | |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share-based | 13 | 9 | 19 | -16 | 13 |
| compensation | | | | | |
| expense, total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) | | | | | |
--------------------------------------------------------------------------------
| | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | 104 | 287 | 279 | 291 | 260 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
| Translation | 1,076 | -549 | 1,977 | -161 | -563 |
| differences | | | | | |
--------------------------------------------------------------------------------
| Net investment | -277 | 61 | -506 | 34 | 114 |
| hedge gains (+) / | | | | | |
| losses (-) | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | -94 | 96 | -327 | -288 | 25 |
--------------------------------------------------------------------------------
| Available-for-sale | 24 | -5 | 40 | -11 | 48 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other | 21 | 2 | -30 | -13 | -7 |
| increase/decrease, | | | | | |
| net | | | | | |
--------------------------------------------------------------------------------
| Income tax related | 65 | -42 | 167 | 60 | -44 |
| to components of | | | | | |
| other comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | 815 | -437 | 1,321 | -379 | -427 |
| income, net of tax | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | 919 | -150 | 1,600 | -88 | -167 |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | | | | | |
| income attributable | | | | | |
| to | | | | | |
--------------------------------------------------------------------------------
| equity holders of | 1,047 | -90 | 1,922 | 112 | 429 |
| the parent | | | | | |
--------------------------------------------------------------------------------
| non-controlling | -128 | -60 | -322 | -200 | -596 |
| interests | | | | | |
--------------------------------------------------------------------------------
| | 919 | -150 | 1,600 | -88 | -167 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY REPORTABLE SEGMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) | | | | | |
--------------------------------------------------------------------------------
| | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Devices & Services | 6,799 | 6,586 | 13,462 | 12,759 | 27,853 |
--------------------------------------------------------------------------------
| NAVTEQ | 252 | 147 | 441 | 279 | 670 |
--------------------------------------------------------------------------------
| Nokia Siemens | 3,039 | 3,199 | 5,757 | 6,189 | 12,574 |
| Networks | | | | | |
--------------------------------------------------------------------------------
| Inter-segment | -87 | -20 | -135 | -41 | -113 |
| eliminations | | | | | |
--------------------------------------------------------------------------------
| Nokia Group | 10,003 | 9,912 | 19,525 | 19,186 | 40,984 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT BY REPORTABLE SEGMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) | | | | | |
--------------------------------------------------------------------------------
| | 4-6/2010 | 4-6/2009 | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Devices & Services | 643 | 763 | 1,474 | 1,310 | 3,314 |
--------------------------------------------------------------------------------
| NAVTEQ | -81 | -100 | -158 | -220 | -344 |
--------------------------------------------------------------------------------
| Nokia Siemens | -179 | -188 | -405 | -549 | -1,639 |
| Networks | | | | | |
--------------------------------------------------------------------------------
| Group common | -33 | -48 | -53 | -59 | -134 |
| functions | | | | | |
--------------------------------------------------------------------------------
| Eliminations 1) | -55 | - | -75 | - | - |
--------------------------------------------------------------------------------
| Nokia Group | 295 | 427 | 783 | 482 | 1,197 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Elimination of profits recorded in NAVTEQ that are deferred in Devices & |
| Services related to Ovi Maps service sold in combination with Nokia's GPS |
| enabled smartphones. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS, EUR million (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | 30.06.2010 | 30.06.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Capitalized development costs | 87 | 204 | 143 |
--------------------------------------------------------------------------------
| Goodwill | 6,035 | 6,290 | 5,171 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,535 | 3,348 | 2,762 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1,967 | 2,011 | 1,867 |
--------------------------------------------------------------------------------
| Investments in associated companies | 131 | 69 | 69 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 632 | 510 | 554 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1,610 | 2,129 | 1,507 |
--------------------------------------------------------------------------------
| Long-term loans receivable | 62 | 37 | 46 |
--------------------------------------------------------------------------------
| Other non-current assets | 5 | 8 | 6 |
--------------------------------------------------------------------------------
| | 13,064 | 14,606 | 12,125 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 2,216 | 1,973 | 1,865 |
--------------------------------------------------------------------------------
| Accounts receivable | 7,837 | 8,725 | 7,981 |
--------------------------------------------------------------------------------
| Prepaid expenses and accrued income | 4,736 | 4,571 | 4,551 |
--------------------------------------------------------------------------------
| Current portion of long-term loans | 26 | 13 | 14 |
| receivable | | | |
--------------------------------------------------------------------------------
| Other financial assets | 385 | 393 | 329 |
--------------------------------------------------------------------------------
| Investments at fair value through | 642 | 689 | 580 |
| profit and loss, liquid assets | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments, | 3,189 | 1,205 | 2,367 |
| liquid assets | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments, | 3,298 | 3,434 | 4,784 |
| cash equivalents | | | |
--------------------------------------------------------------------------------
| Bank and cash | 2,334 | 1,666 | 1,142 |
--------------------------------------------------------------------------------
| | 24,663 | 22,669 | 23,613 |
--------------------------------------------------------------------------------
| Total assets | 37,727 | 37,275 | 35,738 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Capital and reserves attributable | | | |
| to equity holders of the parent | | | |
--------------------------------------------------------------------------------
| Share capital | 246 | 246 | 246 |
--------------------------------------------------------------------------------
| Share issue premium | 288 | 299 | 279 |
--------------------------------------------------------------------------------
| Treasury shares | -669 | -697 | -681 |
--------------------------------------------------------------------------------
| Translation differences | 1,394 | 216 | -127 |
--------------------------------------------------------------------------------
| Fair value and other reserves | -78 | -198 | 69 |
--------------------------------------------------------------------------------
| Reserve for invested non-restricted | 3,164 | 3,178 | 3,170 |
| equity | | | |
--------------------------------------------------------------------------------
| Retained earnings | 9,196 | 9,739 | 10,132 |
--------------------------------------------------------------------------------
| | 13,541 | 12,783 | 13,088 |
--------------------------------------------------------------------------------
| Non-controlling interests | 1,804 | 2,085 | 1,661 |
--------------------------------------------------------------------------------
| Total equity | 15,345 | 14,868 | 14,749 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Long-term interest-bearing | 4,247 | 4,079 | 4,432 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1,229 | 1,510 | 1,303 |
--------------------------------------------------------------------------------
| Other long-term liabilities | 98 | 67 | 66 |
--------------------------------------------------------------------------------
| | 5,574 | 5,656 | 5,801 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current portion of long-term loans | 14 | 53 | 44 |
--------------------------------------------------------------------------------
| Short-term borrowing | 1,114 | 1,393 | 727 |
--------------------------------------------------------------------------------
| Other financial liabilities | 802 | 152 | 245 |
--------------------------------------------------------------------------------
| Accounts payable | 5,581 | 5,276 | 4,950 |
--------------------------------------------------------------------------------
| Accrued expenses | 6,660 | 6,580 | 6,504 |
--------------------------------------------------------------------------------
| Provisions | 2,637 | 3,297 | 2,718 |
--------------------------------------------------------------------------------
| | 16,808 | 16,751 | 15,188 |
--------------------------------------------------------------------------------
| Total shareholders' equity and | 37,727 | 37,275 | 35,738 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 5,375 | 5,525 | 5,203 |
--------------------------------------------------------------------------------
| Shareholders' equity per share, EUR | 3.65 | 3.45 | 3.53 |
--------------------------------------------------------------------------------
| Number of shares (1 000 shares) 1) | 3,708,843 | 3,707,428 | 3,708,262 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Shares owned by Group companies are excluded. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | 1-6/2010 | 1-6/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Cash flow from operating activities | | | |
--------------------------------------------------------------------------------
| Profit attributable to equity holders | 576 | 502 | 891 |
| of the parent | | | |
--------------------------------------------------------------------------------
| Adjustments, total | 1,164 | 977 | 3,390 |
--------------------------------------------------------------------------------
| Change in net working capital | 873 | 602 | 140 |
--------------------------------------------------------------------------------
| Cash generated from operations | 2,613 | 2,081 | 4,421 |
--------------------------------------------------------------------------------
| Interest received | 46 | 76 | 125 |
--------------------------------------------------------------------------------
| Interest paid | -117 | -75 | -256 |
--------------------------------------------------------------------------------
| Other financial income and expenses, | -19 | -533 | -128 |
| net | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -624 | -557 | -915 |
--------------------------------------------------------------------------------
| Net cash from operating activities | 1,899 | 992 | 3,247 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities | | | |
--------------------------------------------------------------------------------
| Acquisition of Group companies, net of | -90 | -19 | -29 |
| acquired cash | | | |
--------------------------------------------------------------------------------
| Purchase of current available-for-sale | -3,929 | -362 | -2,800 |
| investments, liquid assets | | | |
--------------------------------------------------------------------------------
| Purchase of investments at fair value | - | -695 | -695 |
| through profit and loss, liquid assets | | | |
--------------------------------------------------------------------------------
| Purchase of non-current | -69 | -50 | -95 |
| available-for-sale investments | | | |
--------------------------------------------------------------------------------
| Purchase of shares in associated | -26 | -28 | -30 |
| companies | | | |
--------------------------------------------------------------------------------
| Additions to capitalized development | - | -25 | -27 |
| costs | | | |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | 1 | - | 2 |
| other long-term loans receivable | | | |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | -1 | 2 | 2 |
| short-term loans receivable | | | |
--------------------------------------------------------------------------------
| Capital expenditures | -286 | -281 | -531 |
--------------------------------------------------------------------------------
| Proceeds from disposal of Group | -11 | - | - |
| companies, net of disposed cash | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of shares in | 1 | 15 | 40 |
| associated companies | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of businesses | - | 62 | 61 |
--------------------------------------------------------------------------------
| Proceeds from maturities and sale of | 3,119 | 421 | 1,730 |
| current available-for-sale investments, | | | |
| liquid assets | | | |
--------------------------------------------------------------------------------
| Proceeds from maturities and sale of | - | - | 108 |
| investments at fair value through | | | |
| profit and loss, liquid assets | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of non-current | 46 | 1 | 14 |
| available-for-sale investments | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 11 | 20 | 100 |
--------------------------------------------------------------------------------
| Dividends received | - | 1 | 2 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -1,234 | -938 | -2,148 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities | | | |
--------------------------------------------------------------------------------
| Proceeds from long-term borrowings | 1 | 3,396 | 3,901 |
--------------------------------------------------------------------------------
| Repayment of long-term borrowings | -2 | -25 | -209 |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | 252 | -2,374 | -2,842 |
| short-term borrowings | | | |
--------------------------------------------------------------------------------
| Dividends paid | -1,518 | -1,519 | -1,546 |
--------------------------------------------------------------------------------
| Net cash used in financing activities | -1,267 | -522 | -696 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange adjustment | 308 | 20 | -25 |
--------------------------------------------------------------------------------
| Net increase (+) / decrease (-) in cash | -294 | -448 | 378 |
| and cash equivalents | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning | 5,926 | 5,548 | 5,548 |
| of period | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of | 5,632 | 5,100 | 5,926 |
| 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) |
--------------------------------------------------------------------------------
| | Sha | Sha | Trea | Tran | Fai | Re | Re | Befor | Non-c | Total |
| | re | re | sury | sla | r | serve | taine | e | ontro | equit |
| | cap | is | shar | tion | va | for | d | non-c | ll | y |
| | ita | sue | es | diff | lue | inves | earn | ontro | ing | |
| | l | pre | | eren | and | ted | ings | lling | inte | |
| | | miu | | ce | ot | non-r | | inte | rest | |
| | | m | | | her | est | | rest | | |
| | | | | | res | ric | | | | |
| | | | | | erv | ted | | | | |
| | | | | | es | equ | | | | |
| | | | | | | ity | | | | |
--------------------------------------------------------------------------------
| Bala | 246 | 442 | -1,8 | 341 | 62 | 3,306 | 11,69 | 14,20 | 2,302 | 16,51 |
| nce | | | 81 | | | | 2 | 8 | | 0 |
| at | | | | | | | | | | |
| Dece | | | | | | | | | | |
| mber | | | | | | | | | | |
| 31, | | | | | | | | | | |
| 2008 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tran | | | | -150 | | | | -150 | -11 | -161 |
| sla | | | | | | | | | | |
| tion | | | | | | | | | | |
| diff | | | | | | | | | | |
| eren | | | | | | | | | | |
| ces | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | 25 | | | | 25 | | 25 |
| inve | | | | | | | | | | |
| stme | | | | | | | | | | |
| nt | | | | | | | | | | |
| hedg | | | | | | | | | | |
| e | | | | | | | | | | |
| gain | | | | | | | | | | |
| s, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | | | -24 | | | -247 | 38 | -209 |
| flow | | | | | 7 | | | | | |
| hed | | | | | | | | | | |
| ges, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Avai | | | | | -13 | | | -13 | -8 | -21 |
| labl | | | | | | | | | | |
| e-fo | | | | | | | | | | |
| r-sa | | | | | | | | | | |
| le | | | | | | | | | | |
| in | | | | | | | | | | |
| vest | | | | | | | | | | |
| ment | | | | | | | | | | |
| s, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Othe | | | | | | | -5 | -5 | -8 | -13 |
| r | | | | | | | | | | |
| decr | | | | | | | | | | |
| e | | | | | | | | | | |
| ase, | | | | | | | | | | |
| net | | | | | | | | | | |
--------------------------------------------------------------------------------
| Pro | | | | | | | 502 | 502 | -211 | 291 |
| fit | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | - | - | - | -125 | -26 | - | 497 | 112 | -200 | -88 |
| l | | | | | 0 | | | | | |
| comp | | | | | | | | | | |
| rehe | | | | | | | | | | |
| nsiv | | | | | | | | | | |
| e in | | | | | | | | | | |
| come | | | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | | -14 | | | | | | -14 | | -14 |
| e-ba | | | | | | | | | | |
| sed | | | | | | | | | | |
| com | | | | | | | | | | |
| pens | | | | | | | | | | |
| atio | | | | | | | | | | |
| n | | | | | | | | | | |
--------------------------------------------------------------------------------
| Ex | | -13 | | | | | | -13 | | -13 |
| cess | | | | | | | | | | |
| tax | | | | | | | | | | |
| bene | | | | | | | | | | |
| fit | | | | | | | | | | |
| on | | | | | | | | | | |
| shar | | | | | | | | | | |
| e-ba | | | | | | | | | | |
| sed | | | | | | | | | | |
| com | | | | | | | | | | |
| pens | | | | | | | | | | |
| atio | | | | | | | | | | |
| n | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sett | | -11 | 215 | | | -128 | | -29 | | -29 |
| leme | | 6 | | | | | | | | |
| nt | | | | | | | | | | |
| of | | | | | | | | | | |
| perf | | | | | | | | | | |
| orma | | | | | | | | | | |
| nce | | | | | | | | | | |
| and | | | | | | | | | | |
| rest | | | | | | | | | | |
| rict | | | | | | | | | | |
| ed | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Canc | | | 969 | | | | -969 | - | | - |
| ella | | | | | | | | | | |
| tion | | | | | | | | | | |
| of | | | | | | | | | | |
| trea | | | | | | | | | | |
| sury | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | | | -1,48 | -1,48 | -17 | -1,49 |
| dend | | | | | | | 1 | 1 | | 8 |
--------------------------------------------------------------------------------
| Tota | - | -14 | 1,18 | - | - | -128 | -2,45 | -1,53 | -17 | -1,55 |
| l of | | 3 | 4 | | | | 0 | 7 | | 4 |
| othe | | | | | | | | | | |
| r | | | | | | | | | | |
| equi | | | | | | | | | | |
| ty | | | | | | | | | | |
| move | | | | | | | | | | |
| ment | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Bala | 246 | 299 | -697 | 216 | -19 | 3,178 | 9,739 | 12,78 | 2,085 | 14,86 |
| nce | | | | | 8 | | | 3 | | 8 |
| at | | | | | | | | | | |
| June | | | | | | | | | | |
| 30, | | | | | | | | | | |
| 2009 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Bala | 246 | 279 | -681 | -127 | 69 | 3,170 | 10,13 | 13,08 | 1,661 | 14,74 |
| nce | | | | | | | 2 | 8 | | 9 |
| at | | | | | | | | | | |
| Dece | | | | | | | | | | |
| mber | | | | | | | | | | |
| 31, | | | | | | | | | | |
| 2009 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tran | | | | 1,89 | | | | 1,895 | 80 | 1,975 |
| slat | | | | 5 | | | | | | |
| ion | | | | | | | | | | |
| diff | | | | | | | | | | |
| eren | | | | | | | | | | |
| ces | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | -374 | | | | -374 | | -374 |
| inve | | | | | | | | | | |
| stme | | | | | | | | | | |
| nt | | | | | | | | | | |
| hedg | | | | | | | | | | |
| e | | | | | | | | | | |
| los | | | | | | | | | | |
| ses, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | | | -18 | | | -182 | -103 | -285 |
| flow | | | | | 2 | | | | | |
| hed | | | | | | | | | | |
| ges, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Avai | | | | | 35 | | | 35 | | 35 |
| labl | | | | | | | | | | |
| e-fo | | | | | | | | | | |
| r-sa | | | | | | | | | | |
| le | | | | | | | | | | |
| inve | | | | | | | | | | |
| stme | | | | | | | | | | |
| nts, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Othe | | | | | | | -28 | -28 | -2 | -30 |
| r | | | | | | | | | | |
| decr | | | | | | | | | | |
| ease | | | | | | | | | | |
| , | | | | | | | | | | |
| net | | | | | | | | | | |
--------------------------------------------------------------------------------
| Pro | | | | | | | 576 | 576 | -297 | 279 |
| fit | | | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | - | - | - | 1,52 | -14 | - | 548 | 1,922 | -322 | 1,600 |
| l | | | | 1 | 7 | | | | | |
| comp | | | | | | | | | | |
| rehe | | | | | | | | | | |
| n | | | | | | | | | | |
| sive | | | | | | | | | | |
| in | | | | | | | | | | || come | | | | | | | | | | |
--------------------------------------------------------------------------------
| Stoc | | -1 | | | | | | -1 | | -1 |
| k op | | | | | | | | | | |
| tion | | | | | | | | | | |
| s | | | | | | | | | | |
| exer | | | | | | | | | | |
| cise | | | | | | | | | | |
| d re | | | | | | | | | | |
| late | | | | | | | | | | |
| d to | | | | | | | | | | |
| ac | | | | | | | | | | |
| quis | | | | | | | | | | |
| i | | | | | | | | | | |
| tion | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | | 19 | | | | | | 19 | | 19 |
| e-ba | | | | | | | | | | |
| sed | | | | | | | | | | |
| comp | | | | | | | | | | |
| ensa | | | | | | | | | | |
| tion | | | | | | | | | | |
--------------------------------------------------------------------------------
| Exce | | -1 | | | | | | -1 | | -1 |
| ss | | | | | | | | | | |
| tax | | | | | | | | | | |
| bene | | | | | | | | | | |
| fit | | | | | | | | | | |
| on | | | | | | | | | | |
| shar | | | | | | | | | | |
| e-ba | | | | | | | | | | |
| sed | | | | | | | | | | |
| com | | | | | | | | | | |
| pens | | | | | | | | | | |
| a | | | | | | | | | | |
| tion | | | | | | | | | | |
--------------------------------------------------------------------------------
| Sett | | -8 | 11 | | | -6 | | -3 | | -3 |
| leme | | | | | | | | | | |
| nt | | | | | | | | | | |
| of | | | | | | | | | | |
| perf | | | | | | | | | | |
| orma | | | | | | | | | | |
| nce | | | | | | | | | | |
| and | | | | | | | | | | |
| rest | | | | | | | | | | |
| rict | | | | | | | | | | |
| ed | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Reis | | | 1 | | | | | 1 | | 1 |
| suan | | | | | | | | | | |
| ce | | | | | | | | | | |
| of | | | | | | | | | | |
| trea | | | | | | | | | | |
| sury | | | | | | | | | | |
| sha | | | | | | | | | | |
| res | | | | | | | | | | |
--------------------------------------------------------------------------------
| Conv | | | | | | | | - | 500 | 500 |
| ersi | | | | | | | | | | |
| on | | | | | | | | | | |
| of | | | | | | | | | | |
| debt | | | | | | | | | | |
| to | | | | | | | | | | |
| equ | | | | | | | | | | |
| ity | | | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | | | -1,48 | -1,48 | -35 | -1,51 |
| dend | | | | | | | 4 | 4 | | 9 |
--------------------------------------------------------------------------------
| Tota | - | 9 | 12 | - | - | -6 | -1,48 | -1,46 | 465 | -1,00 |
| l of | | | | | | | 4 | 9 | | 4 |
| othe | | | | | | | | | | |
| r | | | | | | | | | | |
| equ | | | | | | | | | | |
| ity | | | | | | | | | | |
| move | | | | | | | | | | |
| ment | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Bala | 246 | 288 | -669 | 1,39 | -78 | 3,164 | 9,196 | 13,54 | 1,804 | 15,34 |
| nce | | | | 4 | | | | 1 | | 5 |
| at | | | | | | | | | | |
| June | | | | | | | | | | |
| 30, | | | | | | | | | | |
| 2010 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS AND CONTINGENCIES, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | | GROUP | |
--------------------------------------------------------------------------------
| | 30.06.2010 | 30.06.200 | 31.12.2009 |
| | | 9 | |
--------------------------------------------------------------------------------
| Collateral for own commitments | | | |
--------------------------------------------------------------------------------
| Property under mortgages | 18 | 18 | 18 |
--------------------------------------------------------------------------------
| Assets pledged | 3 | 10 | 13 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities on behalf of | | | |
| Group companies | | | |
--------------------------------------------------------------------------------
| Guarantees for loans | - | - | - |
--------------------------------------------------------------------------------
| Other guarantees | 1,389 | 2,651 | 1,350 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities on behalf of | | | |
| associated companies | | | |
--------------------------------------------------------------------------------
| Other guarantees | - | 1 | - |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities on behalf of | | | |
| other companies | | | |
--------------------------------------------------------------------------------
| Financial guarantees on behalf of | - | 1 | - |
| third parties | | | |
--------------------------------------------------------------------------------
| Other guarantees | 23 | 4 | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing obligations | 1,148 | 1,259 | 1,222 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing commitments | | | |
--------------------------------------------------------------------------------
| Customer finance commitments | 95 | 37 | 99 |
--------------------------------------------------------------------------------
| Venture fund commitments | 307 | 355 | 293 |
--------------------------------------------------------------------------------
1 EUR = 1.234 USD
The unaudited, consolidated interim financial statements of Nokia have been
prepared in accordance with the International Financial Reporting Standards
("IFRS"). The same accounting policies and methods of computation are followed
in the interim financial statements as were followed in the consolidated
financial statements of Nokia for 2009.
FORWARD-LOOKING STATEMENTS
It should be noted that certain statements herein which are not historical facts
are forward-looking statements, including, without limitation, those regarding:
A) the timing of the deliveries of our products and services and their
combinations; B) our ability to develop, implement and commercialize new
technologies, products and services and their combinations; C) expectations
regarding market developments and structural changes; D) expectations and
targets regarding our industry volumes, market share, prices, net sales and
margins of products and services and their combinations; E) expectations and
targets regarding our operational priorities and results of operations; F) the
outcome of pending and threatened litigation; G) expectations regarding the
successful completion of acquisitions or restructurings on a timely basis and
our ability to achieve the financial and operational targets set in connection
with any such acquisition or restructuring; and H) statements preceded by "believe,""expect,""anticipate,""foresee,""target,""estimate,""designed,""plans,""will" or similar expressions. 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
competitiveness and quality of our portfolio of products and services and their
combinations; 2) our ability to timely and successfully develop or otherwise
acquire the appropriate technologies and commercialize them as new advanced
products and services and their combinations, including our ability to attract
application developers and content providers to develop applications and provide
content for use in our devices; 3) our ability to effectively, timely and
profitably adapt our business and operations to the requirements of the
converged mobile device market and the services market; 4) the intensity of
competition in the various markets where we do business and our ability to
maintain or improve our market position or respond successfully to changes in
the competitive environment; 5) the occurrence of any actual or even alleged
defects or other quality, safety or security issues in our products and services
and their combinations; 6) the development of the mobile and fixed
communications industry and general economic conditions globally and regionally;
7) our ability to successfully manage costs; 8) exchange rate fluctuations,
including, in particular, fluctuations between the euro, which is our reporting
currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as
certain other currencies; 9) the success, financial condition and performance of
our suppliers, collaboration partners and customers; 10) our ability to source
sufficient amounts of fully functional components, sub-assemblies, software,
applications and content without interruption and at acceptable prices and
quality; 11) our success in collaboration arrangements with third parties
relating to the development of new technologies, products and services,
including applications and content; 12) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality, safety, security
and timely delivery of our products and services and their combinations; 13) our
ability to manage our inventory and timely adapt our supply to meet changing
demands for our products; 14) 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 and services and their combinations; 15) 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; 16) the impact of
changes in government policies, trade policies, laws or regulations and economic
or political turmoil in countries where our assets are located and we do
business; 17) any disruption to information technology systems and networks that
our operations rely on; 18) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 19) unfavorable outcome of litigations; 20)
allegations of possible health risks from electromagnetic fields generated by
base stations and mobile devices and lawsuits related to them, regardless of
merit; 21) our ability to achieve targeted costs reductions and increase
profitability in Nokia Siemens Networks and to effectively and timely execute
related restructuring measures; 22) developments under large, multi-year
contracts or in relation to major customers in the networks infrastructure and
related services business; 23) the management of our customer financing
exposure, particularly in the networks infrastructure and related services
business; 24) whether ongoing or any additional governmental investigations into
alleged violations of law by some former employees of Siemens AG ("Siemens") may
involve and affect the carrier-related assets and employees transferred by
Siemens to Nokia Siemens Networks; 25) any impairment of Nokia Siemens Networks
customer relationships resulting from ongoing or any additional governmental
investigations involving the Siemens carrier-related operations transferred to
Nokia Siemens Networks; as well as the risk factors specified on pages 11-32 of
Nokia's annual report Form 20-F for the year ended December 31, 2009 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 22, 2010
Media and Investor Contacts:
Corporate Communications, tel. +358 7180 34900
Investor Relations Europe, tel. +358 7180 34927
Investor Relations US, tel. +1 914 368 0555
- Nokia plans to publish its third quarter 2010 results on October 21, 2010.
www.nokia.com
© 2024 Nasdaq, Inc. All Rights Reserved |