2010-10-21 12:00:00 CEST
2010-10-21 12:00:04 CEST
REGULATED INFORMATION
Nokia - Interim report (Q1 and Q3)
Nokia reports Q3 2010 net sales of EUR 10.3 billion, with non-IFRS EPS of EUR 0.14
Nokia Corporation
Interim report
October 21, 2010 at 13.00 (CET+1)
Nokia reports Q3 2010 net sales of EUR 10.3 billion, with non-IFRS EPS of EUR
0.14
- Mobile device ASP up EUR 4 from Q2 2010
- Mobile device volumes and margins constrained by component availability
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| | Non-IFRS third quarter 2010 results1,2 |
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| (EUR million) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ Change |
| | | | Change | | |
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| Net sales | 10 271 | 9 810 | 5% | 10 005 | 3% |
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| Devices & Services | 7 174 | 6 915 | 4% | 6 800 | 6% |
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| NAVTEQ | 252 | 166 | 52% | 253 | 0% |
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| Nokia Siemens | 2 943 | 2 760 | 7% | 3 039 | -3% |
| Networks | | | | | |
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| | | | | | |
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| Operating profit | 634 | 741 | -14% | 660 | -4% |
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| Devices & Services | 750 | 787 | -5% | 647 | 16% |
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| NAVTEQ | 74 | 43 | 72% | 50 | 48% |
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| Nokia Siemens | -116 | -53 | | 51 | |
| Networks | | | | | |
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| | | | | | |
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| Operating margin | 6.2% | 7.6% | | 6.6% | |
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| Devices & Services | 10.5% | 11.4% | | 9.5% | |
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| NAVTEQ | 29.4% | 25.9% | | 19.8% | |
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| Nokia Siemens | -3.9% | -1.9% | | 1.7% | |
| Networks | | | | | |
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| | | | | | |
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| EPS, EUR Diluted | 0.14 | 0.17 | -18% | 0.11 | 27% |
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| | Reported third quarter 2010 results2 |
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| (EUR million) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ Change |
| | | | Change | | |
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| Net sales | 10 270 | 9 810 | 5% | 10 003 | 3% |
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| Devices & Services | 7 173 | 6 915 | 4% | 6 799 | 6% |
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| NAVTEQ | 252 | 166 | 52% | 252 | 0% |
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| Nokia Siemens | 2 943 | 2 760 | 7% | 3 039 | -3% |
| Networks | | | | | |
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| | | | | | |
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| Operating profit | 403 | -426 | | 295 | 37% |
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| Devices & Services | 807 | 785 | 3% | 643 | 26% |
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| NAVTEQ | -48 | -68 | | -81 | |
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| Nokia Siemens | -282 | -1 107 | | -179 | |
| Networks | | | | | |
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| | | | | | |
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| Operating margin | 3.9% | -4.3% | | 2.9% | |
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| Devices & Services | 11.3% | 11.4% | | 9.5% | |
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| NAVTEQ | -19.0% | -41.0% | | -32.1% | |
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| Nokia Siemens | -9.6% | -40.1% | | -5.9% | |
| Networks | | | | | |
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| | | | | | |
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| EPS, EUR Diluted | 0.14 | -0.15 | | 0.06 | 133% |
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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 3, 15-17 and 19.
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 Q3 2010 and Q3 2009 can be found in the tables on pages
12-13 and 15-19 of this press release. A reconciliation of our Q2 2010 non-IFRS
results can be found on pages 11-12 and 14-18 of our Q2 2010 Interim Report of
July 22, 2010.
Note 2: Nokia reported net sales were EUR 29 795 million and earnings per share
(diluted) were EUR 0.30 for the period from January 1 to September 30, 2010.
Further information about the results for the period from January 1 to September
30, 2010 can be found in this press release on pages 11, 13 and 20-23.
THIRD QUARTER 2010 HIGHLIGHTS
- Nokia net sales of EUR 10.3 billion, up 5% year-on-year and 3% sequentially
(down 2% and up 1% at constant currency).
- Devices & Services net sales of EUR 7.2 billion, up 4% year-on-year and 6%
sequentially (down 5% and up 2% at constant currency).
- Services net sales of EUR 159 million, up 7% year-on-year and 1% sequentially;
billings of EUR 325 million, up 89% year-on-year and 10% sequentially.
- Nokia total mobile device volumes of 110.4 million units, up 2% year-on-year
and down 1% sequentially.
- Nokia converged mobile device (smartphone and mobile computer) volumes of 26.5
million units, up 61% year-on-year and 10% sequentially.
- Nokia mobile device ASP (including services revenue) of EUR 65, up from EUR 64
in Q3 2009 and EUR 61 in Q2 2010.
- Devices & Services gross margin of 29.0%, down from 30.9% in Q3 2009 and 30.2%
in Q2 2010.
- Devices & Services non-IFRS operating margin of 10.5%, down from 11.4% in Q3
2009 and up from 9.5% in Q2 2010.
- NAVTEQ non-IFRS net sales of EUR 252 million, up 52% year-on-year and flat
sequentially (up 47% and down 2% at constant currency).
- Nokia Siemens Networks net sales of EUR 2.9 billion, up 7% year-on-year and
down 3% sequentially (flat and down 4% at constant currency).
- Nokia Siemens Networks non-IFRS operating margin of -3.9%, down from -1.9% in
Q3 2009 and 1.7% in Q2 2010.
- Nokia operating cash flow of EUR 439 million, and cash generated from
operations EUR 1 206 million.
- Total cash and other liquid assets of EUR 10.2 billion and net cash and other
liquid assets of EUR 4.4 billion, at the end of Q3 2010.
- Nokia taxes continued to be unfavorably impacted by Nokia Siemens Networks
taxes as no tax benefits are recognized for certain Nokia Siemens Networks
deferred tax items. In Q3 2010, this was more than offset by lower Devices &
Services taxes due to dividend withholding tax legislation changes in certain
jurisdictions with a one-quarter impact. If Nokia's estimated long-term tax rate
of 26% had been applied, non-IFRS Nokia EPS would have been approximately 1.5
Euro cents lower.
STEPHEN ELOP, NOKIA CEO: "In the five weeks since joining Nokia, I have found a company with many great
strengths and a history of achievement that are second to none in the industry.
And yet our company faces a remarkably disruptive time in the industry, with
recent results demonstrating that we must reassess our role in and our approach
to this industry.
Some of our most recent product launches illustrate that we have the talent, the
capacity to innovate, and the resources necessary to lead through this period of
disruption. We will make both the strategic and operational improvements
necessary to ensure that we continue to delight our customers and deliver
superior financial results to our shareholders."
INDUSTRY AND NOKIA OUTLOOK
- Nokia expects Devices & Services net sales to be between EUR 8.2 billion and
EUR 8.7 billion in the fourth quarter 2010.
- Nokia expects its non-IFRS operating margin in Devices & Services to be
between 10% and 12% in the fourth quarter 2010.
- Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net sales to
be between EUR 3.4 billion and EUR 3.8 billion in the fourth quarter 2010.
- Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia
Siemens Networks to be between 2% and 5% in the fourth quarter 2010.
- Nokia now expects industry mobile device volumes to be up more than 10% in
2010, compared to 2009 (based on its revised definition of the industry mobile
device market applicable beginning in 2010). Nokia previously expected industry
mobile device volumes to be up approximately 10% in 2010, compared to 2009.
- Nokia now expects its mobile device volume market share to be slightly down in
2010, compared to 2009. Nokia earlier targeted 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 expect non-IFRS operating expenses in Devices & Services of
approximately EUR 5.7 billion in 2010.
- Nokia continues to expect Devices & Services non-IFRS operating margin of 10%
to 11% in 2010.
- 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 continue to expect Nokia Siemens Networks to
maintain its market share 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 expect Nokia Siemens Networks
non-IFRS operating margin of breakeven to 2% in 2010.
THIRD QUARTER 2010 FINANCIAL HIGHLIGHTS
(Comparisons are given to the third quarter 2009 results, unless otherwise
indicated.)
The non-IFRS results exclusions
Q3 2010 - EUR 231 million (net) consisting of:
- EUR 61 million prior years-related refund of customs duties
- EUR 49 million restructuring charge and other associated items in Nokia
Siemens Networks
- EUR 117 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks
- EUR 122 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,
MetaCarta and Motally in Devices & Services
Q3 2010 taxes - EUR 127 million prior years-related non-cash benefit from Q3
2010 changes in dividend withholding tax legislation in certain jurisdictions
with retroactive effects
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
Q3 2009 - EUR 1 167 million consisting of:
- EUR 908 million impairment of goodwill in Nokia Siemens Networks
- EUR 29 million restructuring charge and other one-time items in Nokia Siemens
Networks
- EUR 117 million of intangible assets amortization and other purchase price
related items arising from the formation of Nokia Siemens Networks
- EUR 111 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
Q3 2009 taxes - EUR 432 million valuation allowance for Nokia Siemens Networks
deferred tax assets impacting Nokia taxes
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 third quarter 2010 net sales increased 5% to EUR 10.3 billion, compared
with EUR 9.8 billion in the third quarter 2009, and increased 3% compared with
EUR 10.0 billion in the second quarter 2010. At constant currency, group net
sales would have decreased 2% year-on-year and increased 1% sequentially.
The following chart sets out the year-on-year and sequential growth rates in our
net sales on a reported basis and at constant currency for the periods
indicated.
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| THIRD QUARTER 2010 NET SALES, REPORTED & CONSTANT CURRENCY1 |
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| | YoY Change | QoQ Change |
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| Group net sales - reported | 5% | 3% |
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| Group net sales - constant currency1 | -2% | 1% |
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| Devices & Services net sales - reported | 4% | 6% |
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| Devices & Services net sales - constant currency1 | -5% | 2% |
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| NAVTEQ net sales - reported | 52% | 0% |
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| NAVTEQ net sales - constant currency1 | 47% | -2% |
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| Nokia Siemens Networks net sales - reported | 7% | -3% |
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| Nokia Siemens Networks net sales - constant | 0% | -4% |
| currency1 | | |
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| Note 1: Change in net sales at constant currency excludes the impact of |
| changes in exchange rates in comparison to the Euro, our reporting currency. |
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Nokia's third quarter 2010 reported operating profit increased to EUR 403
million, compared with an operating loss of EUR 426 million in the third quarter
2009 and an operating profit of EUR 295 million in the second quarter 2010.
Nokia's third quarter 2010 reported operating margin was 3.9%, compared with
-4.3% in the third quarter 2009 and 2.9% in the second quarter 2010. Nokia's
third quarter 2010 non-IFRS operating profit decreased to EUR 634 million,
compared with EUR 741 million in the third quarter 2009 and EUR 660 million in
the second quarter 2010. Nokia's third quarter 2010 non-IFRS operating margin
was 6.2%, compared with 7.6% in the third quarter 2009 and 6.6% in the second
quarter 2010. The year-on-year decrease in Nokia's non-IFRS operating margin
resulted from a decline in Devices & Services and Nokia Siemens Networks'
non-IFRS operating margins that were only partially offset by an increase in
NAVTEQ's non-IFRS operating margin. Sequentially, the decline in Nokia Siemens
Networks' non-IFRS operating margin was largely offset by increases in Devices &
Services and NAVTEQ's non-IFRS operating margins.
The following chart sets out Nokia Group's cash flow (for the periods indicated)
and financial position (at the end of the periods indicated), as well as the
year-on-year and sequential growth rates.
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| NOKIA GROUP CASH FLOW AND FINANCIAL POSITION |
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| (EUR million) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ |
| | | | Change | | Change |
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| Operating cash flow1 | 439 | 720 | -39% | 944 | -53% |
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| Cash generated from | 1 206 | 1 052 | 15% | 1 432 | -16% |
| operations | | | | | |
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| Total cash and other | 10 235 | 7 432 | 38% | 9 463 | 8% |
| liquid assets | | | | | |
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| Net cash and other | 4 375 | 2 133 | 105% | 4 088 | 7% |
| liquid assets2 | | | | | |
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| Net debt-equity ratio | -29% | -15% | | -27% | |
| (gearing) | | | | | |
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| Note 1: Net cash from operating activities. |
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| Note 2: Total cash other liquid assets minus interest-bearing liabilities. |
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In the third quarter 2010, cash generated from operations increased on a
year-on-year basis due to net working capital improvements. Sequentially we
benefited to a lesser extent than in the second quarter of 2010 from decreases
in net working capital, and this resulted in a sequential decline in cash
generated from operations. In addition to the aforementioned impacts, in the
third quarter 2010 we experienced cash outflows related to foreign exchange
hedging activities, both operative as well as balance sheet, and this led to
year-on-year and sequential declines in operating cash flow. Both total as well
as net cash and other liquid assets increased in the third quarter 2010 as a
result of positive overall cash generation.
Devices & Services
Net Sales. 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.
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| DEVICES & SERVICES NET SALES BY CATEGORY |
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| (EUR million) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ |
| | | | Change | | Change |
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| Mobile phones1 | 3 560 | 3 790 | -6% | 3 369 | 6% |
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| Converged mobile | 3 613 | 3 125 | 16% | 3 429 | 5% |
| devices2 | | | | | |
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| Total | 7 173 | 6 915 | 4% | 6 799 | 6% |
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| 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. |
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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.
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| DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA |
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| (EUR million) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ |
| | | | Change | | Change |
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| Europe | 2 289 | 2 443 | -6% | 2 173 | 5% |
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| Middle East & | 930 | 963 | -3% | 934 | 0% |
| Africa | | | | | |
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| Greater China | 1 654 | 1 400 | 18% | 1 373 | 20% |
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| Asia-Pacific | 1 504 | 1 470 | 2% | 1 543 | -3% |
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| North America | 226 | 198 | 14% | 223 | 1% |
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| Latin America | 570 | 441 | 29% | 553 | 3% |
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| Total | 7 173 | 6 915 | 4% | 6 799 | 6% |
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The year-on-year 4% net sales increase resulted primarily from higher ASPs and
device volumes in most regions. Sequentially, the 6% net sales increase was
primarily driven by higher ASPs. Net sales in the third quarter 2010 were
negatively impacted by industry-wide shortages of certain components,
particularly in the low end of the market where Nokia's position is strong, and
we expect this situation to continue through the fourth quarter 2010 and into
2011. At constant currency, Devices & Services net sales would have decreased 5%
year-on-year and increased 2% sequentially.
Of our total Devices & Services net sales, services contributed EUR 159 million
in the third quarter 2010, compared with EUR 148 million in the third quarter
2009 and EUR 158 million in the second quarter 2010. Services billings in the
third quarter 2010 were EUR 325 million, compared with EUR 172 million in the
third quarter 2009 and EUR 295 million in the second quarter 2010.
Volume and Market Share. The following chart sets out our Devices & Services
volumes for the periods indicated, as well as the year-on-year and sequential
growth rates, by category.
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| DEVICES & SERVICES MOBILE DEVICE VOLUMES BY CATEGORY |
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| (million units) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ |
| | | | Change | | Change |
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| Mobile phones1 | 83.9 | 92.1 | -9% | 87.1 | -4% |
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| Converged mobile | 26.5 | 16.4 | 61% | 24.0 | 10% |
| devices2 | | | | | |
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| Total | 110.4 | 108.5 | 2% | 111.1 | -1% |
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| 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. |
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In the third quarter 2010, the overall industry mobile device volumes were 364
million units based on Nokia's preliminary estimate, representing an increase of
14% year-on-year and 8% sequentially. Nokia's preliminary estimated mobile
device market share was 30% in the third quarter 2010, down from an estimated
34% in the third quarter 2009 and an estimated 33% in the second 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 third quarter 2010 increased to 70.4 million units, based on
Nokia's preliminary estimate, representing an increase of 57% year-on-year and
19% sequentially. Nokia's preliminary estimated share of the converged mobile
device market was 38% in the third quarter 2010, compared with an estimated 37%
in the third quarter 2009 and an estimated 41% in the second 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.
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| DEVICES & SERVICES MOBILE DEVICE VOLUMES BY GEOGRAPHIC AREA |
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| (million units) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ Change |
| | | | Change | | |
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| Europe | 29.2 | 27.1 | 8% | 26.1 | 12% |
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| Middle East & | 18.4 | 19.6 | -6% | 21.0 | -12% |
| Africa | | | | | |
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| Greater China | 20.2 | 18.5 | 9% | 19.3 | 5% |
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| Asia-Pacific | 27.8 | 30.5 | -9% | 30.8 | -10% |
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| North America | 3.2 | 3.1 | 3% | 2.6 | 23% |
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| Latin America | 11.6 | 9.7 | 20% | 11.2 | 4% |
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| Total | 110.4 | 108.5 | 2% | 111.1 | -1% |
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An overall improved demand environment primarily contributed to Nokia's 2%
year-on-year increase in global mobile device volumes during the third quarter
2010. However, this was largely offset by the impact of industry-wide shortages
of certain components, particularly in the low end of the market where Nokia's
position is strong, during the third quarter 2010. On a sequential basis,
Nokia's 1% decrease in global mobile device volumes was primarily due to these
industry-wide component shortages.
Average Selling Price. 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.
TAULUKKO 8
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| DEVICES & SERVICES AVERAGE SELLING PRICE BY CATEGORY |
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| (EUR) | Q3/2010 | Q3/2009 | YoY Change | Q2/2010 | QoQ Change |
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| Mobile phones1 | 42 | 41 | 3% | 39 | 10% |
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| Converged mobile | 136 | 190 | -28% | 143 | -4% |
| devices2 | | | | | |
--------------------------------------------------------------------------------
| Total | 65 | 64 | 2% | 61 | 6% |
--------------------------------------------------------------------------------
| 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. |
--------------------------------------------------------------------------------
The year-on-year 2% increase in our ASP was primarily due to converged mobile
devices representing a greater proportion of our overall mobile device volumes
and the appreciation of certain currencies against the Euro, offset to some
extent by general price erosion and a higher proportion of lower-priced
converged mobile device sales. On a sequential basis, the 6% increase in our ASP
was primarily driven by converged mobile devices representing a greater
proportion of our overall mobile device volumes and the appreciation of certain
currencies against the Euro, offset to some extent by general price erosion. The
28% year-on-year and 4% sequential declines in our converged mobile devices ASPs
were mainly driven by an increase in the proportion of lower-priced converged
mobile devices sales consistent with our strategy to reach wider groups of
consumers with our smartphones, as well as price pressure in certain high-end
smartphones.
Profitability. Devices & Services gross profit (reported and non-IFRS) decreased
3% to EUR 2.1 billion, compared with EUR 2.1 billion in the third quarter 2009,
and increased 1% compared to EUR 2.1 billion in the second quarter 2010. The
gross margin (reported and non-IFRS) was 29.0% in the third quarter 2010,
compared with 30.9% in the third quarter 2009 and 30.2% in the second quarter
2010. The year-on-year and sequential gross margin declines were primarily due
to material cost erosion being less - driven by both industry-wide shortages of
certain components and the appreciation of certain currencies against the Euro -
than general product price erosion. Year-on-year, the gross margin decline was
offset to some extent by a more favorable one-quarter foreign exchange hedging
impact, converged mobile devices representing a greater proportion of our
overall mobile device volumes and a positive 80 basis point one-quarter royalty
income impact. Sequentially, the gross margin decline was offset to some extent
by converged mobile devices representing a greater proportion of our overall
mobile device volumes and a positive 80 basis point one-quarter royalty income
impact. Nokia sees shortages of certain components impacting our business
through the fourth quarter 2010 and into 2011.
Devices & Services reported operating profit increased 3% to EUR 807 million,
compared with EUR 785 million in the third quarter 2009, and increased 26%
compared with EUR 643 million in the second quarter 2010. The reported operating
margin was 11.3% in the third quarter 2010, compared with 11.4% in the third
quarter 2009 and 9.5% in the second quarter 2010. Devices & Services non-IFRS
operating profit decreased 5% to EUR 750 million compared with EUR 787 million
in the third quarter 2009, and increased 16% compared with EUR 647 million in
the second quarter 2010. The non-IFRS operating margin was 10.5% in the third
quarter 2010, compared with 11.4% in the third quarter 2009 and 9.5% in the
second quarter 2010. The year-on-year decrease in non-IFRS operating profit was
driven primarily by the lower gross margin. Sequentially, the increase in
non-IFRS operating profit was primarily due to higher net sales and lower
operating expenses, offset to some extent by the lower gross margin.
NAVTEQ
Net Sales. Third quarter 2010 NAVTEQ reported net sales increased 52%
year-on-year to EUR 252 million, compared with EUR 166 million in the third
quarter 2009, and were unchanged sequentially. The year-on-year increase in
reported net sales was primarily driven by improved sales of map licenses to
mobile device customers as well as improved demand and higher navigation uptake
rates in the automotive industry. Sequentially, the positive impact of sales of
map licenses to mobile device customers on NAVTEQ's net sales was offset by
lower sales from other segments. At constant currency, NAVTEQ net sales would
have increased 47% year-on-year and increased 2% sequentially.
Profitability. In the third quarter 2010, NAVTEQ's gross profit (reported and
non-IFRS) increased to EUR 213 million, compared with EUR 146 million in the
third quarter 2009. Year-on-year, the gross margin (reported and non-IFRS)
declined to 84.5%, compared to 88.0%. NAVTEQ's reported gross profit was EUR 205
million in the second quarter 2010, with a gross margin of 81.3%. Non-IFRS gross
profit was EUR 206 million in the second quarter 2010 with a non-IFRS gross
margin of 81.4%.
In the third quarter 2010, NAVTEQ's reported operating loss decreased to EUR 48
million, compared with a EUR 68 million loss in the third quarter 2009 and a EUR
81 million loss in the second quarter 2010. The reported operating margin was
-19.0% in the third quarter 2010, compared -41.0% in the third quarter 2009 and
-32.1% in the second quarter 2010. NAVTEQ's non-IFRS operating profit was EUR 74
million, compared with EUR 43 million in the third quarter 2009 and EUR 50
million in the second quarter 2010. The non-IFRS operating margin was 29.4% in
the third quarter 2010, compared with 25.9% in the third quarter 2009 and 19.8%
in the second quarter 2010. The year-on-year increase in NAVTEQ's non-IFRS
operating margin was primarily due to higher net sales, offset to some extent by
a lower gross margin and higher operating expenses. The sequential increase in
NAVTEQ's non-IFRS operating margin was primarily due to the higher gross margin,
as well as lower operating expenses.
Nokia Siemens Networks
Net Sales. The following chart sets out Nokia Siemens Networks net sales for the
periods indicated, as well as the year-on-year and sequential growth rates, by
geographic area.
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| NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA |
--------------------------------------------------------------------------------
| (EUR million) | Q3/2010 | Q3/2009 | YoY | Q2/2010 | QoQ Change |
| | | | Change | | |
--------------------------------------------------------------------------------
| Europe | 1 070 | 1 061 | 1% | 1 136 | -6% |
--------------------------------------------------------------------------------
| Middle East & | 331 | 387 | -14% | 400 | -17% |
| Africa | | | | | |
--------------------------------------------------------------------------------
| Greater China | 311 | 335 | -7% | 357 | -13% |
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| Asia-Pacific | 711 | 567 | 25% | 594 | 20% |
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| North America | 175 | 127 | 38% | 181 | -3% |
--------------------------------------------------------------------------------
| Latin America | 345 | 282 | 22% | 371 | -7% |
--------------------------------------------------------------------------------
| Total | 2 943 | 2 760 | 7% | 3 039 | -3% |
--------------------------------------------------------------------------------
The year-on-year 7% increase in net sales was primarily driven by increased
sales of 3G network infrastructure as well as network planning and optimization
services and network operations activities. The sequential 3% decline in net
sales was primarily driven by a seasonally weaker infrastructure market. Net
sales in the third quarter 2010 benefited from some improvement in overall
component availability, as well as an improvement in the industry-wide issue
related to security clearances in India which was preventing the completion of
product sales to customers, compared to the second quarter 2010. Of total Nokia
Siemens Networks net sales, services contributed EUR 1.4 billion in the third
quarter 2010, compared with EUR 1.3 billion in the third quarter 2009 and EUR
1.4 billion in the second quarter 2010.
Profitability. Nokia Siemens Networks reported gross profit decreased 10% to EUR
702 million compared with EUR 778 million in the third quarter 2009, and
decreased 19% compared with EUR 869 million in the second quarter 2010. The
reported gross margin was 23.9% in the third quarter 2010, compared with 28.2%
in the third quarter 2009 and 28.6% in the second quarter 2010. Nokia Siemens
Networks non-IFRS gross profit in the third quarter 2010 decreased 8% to EUR 733
million compared with EUR 794 million in the third quarter 2009, and decreased
22% compared with EUR 937 million in the second quarter 2010. The non-IFRS gross
margin was 24.9% in the third quarter 2010, compared with 28.8% in the third
quarter 2009 and 30.8% in the second quarter 2010. The lower year-on-year and
sequential non-IFRS gross margins in the third quarter 2010 were primarily due
to a higher portion of lower-margin products in the business mix, the continued
component shortages that impacted deliveries into certain higher margin markets
and certain one-quarter items, some of the impact coming through very late
during the quarter.
Nokia Siemens Networks third quarter 2010 reported operating loss was EUR 282
million, compared with a reported operating loss of EUR 1 107 million in the
third quarter 2009 and a reported operating loss of EUR 179 million in the
second quarter 2010. The reported operating margin was -9.6% in the third
quarter 2010, compared with -40.1% in the third quarter 2009 and -5.9% in the
second quarter 2010. Nokia Siemens Networks non-IFRS operating loss was EUR 116
million in the third quarter 2010, compared with a non-IFRS operating loss of
EUR 53 million in the third quarter 2009 and a non-IFRS operating profit of EUR
51 million in the second quarter 2010. The non-IFRS operating margin was -3.9%
in the third quarter 2010, compared with -1.9% in the third quarter 2009 and
1.7% in the second quarter 2010. The year-on-year and sequential declines in
Nokia Siemens Networks non-IFRS operating results were primarily due to the
lower gross margin in the third quarter 2010. The year-on-year decline was
offset to some extent by higher net sales and lower operating expenses in the
third quarter 2010.
CEO CHANGE
- Nokia Board of Directors appointed Stephen Elop as President and Chief
Executive Officer of Nokia as of September 21, 2010. Mr Elop replaced Olli-Pekka
Kallasvuo, who left the position of President and Chief Executive Officer on
September 20, 2010, and his position on Nokia Board of Directors on September
10, 2010.
Q3 2010 OPERATING HIGHLIGHTS
Devices & Services
-Nokia started shipments of the Nokia N8, the first Nokia smartphone based on
the next-generation Symbian 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 announced three new smartphones based on the new Symbian software: The
Nokia C7, a sleek, full-touch smartphone crafted from stainless steel and glass
that is designed to appeal especially to social networkers; The new Nokia C6, a
smaller, full-touch smartphone that features Nokia ClearBlack technology for
improved outdoor visibility; and the Nokia E7, a business smartphone equipped
with a full keyboard and 4-inch touchscreen display also featuring Nokia
ClearBlack technology. Shipments of the Nokia C7 have started since the end of
the quarter.
- Nokia announced and started shipments of the Nokia X3 Touch & Type, an
affordable mobile phone with a unique combination of a touch screen and
traditional phone keypad that is ideal for one-handed use. The Nokia X3 Touch &
Type is one of Nokia's thinnest mobile phones, has a brushed aluminum finish, is
equipped with a 5 megapixel camera and comes with quad-band for voice calling as
well as 3G, HSPA and WiFi connectivity for data. During the quarter, Nokia also
announced the Nokia C3 Touch & Type, a stainless steel device which also
combines the touch screen and traditional phone keypad and is equipped with a
similar set of features.
- Nokia started shipments of the Nokia E5, an affordable messaging-optimized
smartphone that builds on the success of the Nokia E71 and Nokia E72.
- Nokia continued to build the various elements of, and attract consumers to,
Ovi. Highlights for the quarter included the following:
- Nokia launched a renewed Ovi Store, which debuted on the Nokia N8 and is
coming to our other smartphones based on the new Symbian software. The new Ovi
Store includes an improved consumer user experience, including a redesigned look
and feel and faster performance as well as enhancements to the way content is
displayed and discovered. The Store has continued to attract new users since the
end of the quarter and is now attracting more than 2.7 million downloads a day,
compared with more than 1.7 million a day reported in July 2010. Nokia has also
made improvements for developers, including new development tools and benefits
such as free Java and Symbian signing, in-app purchase and beta in-app
advertising programs, improved revenue share for operator billing and advanced
developer analytics.
- The growing popularity of the Ovi experience has meant that, by the end of the
quarter, 70 developers and publishers had surpassed the million download mark
for their content in the Ovi Store.
- Nokia began and completed the migration of its Nokia Music Store and Comes
With Music digital music services to the new Ovi Music platform, which is
designed to deliver an enhanced mobile and PC music download experience for new
and existing users. The Ovi Music platform brings DRM-free music, improved
search, a more attractive user interface, common Ovi branding and numerous user
experience enhancements, including over-the-air one-click album downloads.
- Nokia continued the expansion of Ovi Maps around the world and the integration
of more new features. Walk and drive navigation is now available in 78 countries
and 46 languages and includes public transit details in more than 80 cities, and
features such as check-in that supports location as the new social connector.
The total length of all the journeys navigated by Ovi Maps users doubled during
the third quarter 2010, when compared with the second quarter 2010. In total,
people drive more than 2.5 million km a day with Ovi Maps.
- With its agricultural, educational and entertainment services, Ovi Life Tools
continued to attract more subscribers in China, India and Indonesia. The service
now has more than 6 million active users.
- Nokia's Ovi Mail and Ovi Chat services surpassed more than 17 million
accounts.
- Nokia acquired Motally Inc., whose mobile analytics service enables developers
and publishers to optimize the development of their mobile applications through
increased understanding of how users engage. The service offering is planned to
be adapted for Qt, Symbian, MeeGo and Java developers.
- Nokia and Renesas Electronics Corporation, a leading supplier of advanced
semiconductor solutions, announced that they are deepening their collaboration
by forming a strategic business alliance to develop modem technologies for
HSPA+/LTE (Evolved High-Speed Packet Access / Long-Term Evolution) and its
evolution. As part of the alliance, the companies entered into an agreement
whereby Renesas Electronics is to acquire Nokia's wireless modem business for
approximately USD 200 million. The transaction is subject to regulatory
approvals and other customary closing conditions, and is estimated to take place
during the fourth quarter 2010.
- Nokia divested Metacarta's enterprise business to Qbase Holdings LLC.
MetaCarta's enterprise business became part of Nokia following its acquisition
of MetaCarta Inc. in April 2010 - an acquisition Nokia made in order to obtain
Metacarta's geographic intelligence technology and expertise.
- Nokia and Intuit Inc. announced an alliance to develop and deliver an
innovative new mobile and web based marketing service for small businesses
around the world. The first market launch of the service is expected in the
fourth quarter of 2010.
- Nokia was chosen as the world's most sustainable technology company, according
to the Dow Jones Sustainability Indexes Review 2010. Nokia was chosen as "Technology Supersector Leader" making it number one across the entire global
technology sector for the second successive year.
- Nokia was ranked number one in The Economic Times-Brand Equity's annual ‘Most
Trusted Brands' survey for 2010 in India. Nokia has now been ranked as the most
trusted brand in India for three consecutive years.
NAVTEQ
- NAVTEQ launched Natural Guidance, a product to enable guidance in a human
manner through the use of descriptive reference cues.
- NAVTEQ announced the availability of NAVTEQ Voice in Argentina and Brazil.
- NAVTEQ announced the availability of NAVTEQ Traffic in Brazil, as well as a
400% increase in coverage for NAVTEQ Traffic in France.
- NAVTEQ announced expanded coverage in the Caribbean Islands and Central
America (Costa Rica, Dominican Republic, El Salvador, Jamaica and Panama) and
the first NAVTEQ Map of Colombia.
- NAVTEQ launched a private beta program for next-generation street level
imagery allowing customers to preview NAVTEQ JourneyView.
Nokia Siemens Networks
- Nokia Siemens Networks announced that it had signed an agreement to acquire
the majority of the wireless network infrastructure assets of Motorola, Inc. for
USD 1.2 billion in cash. The companies expect to complete closing activities by
the end of 2010, subject to customary closing conditions including regulatory
approvals.
- Nokia Siemens Networks signed an agreement with LightSquared in the US for a
contract worth more than USD 7 billion over 8 years that includes network
design, equipment manufacturing and installation, and network operations and
maintenance for a 4G-LTE network.
- Nokia Siemens Networks continued to make significant progress in 4G-LTE,
deploying equipment for a live 4G-LTE commercial network for TeliaSonera Sweden
in Gothenburg; Nokia Siemens Networks successfully trialed 4G-LTE mobile
technology with Optus in Australia and with MegaFon in Russia. Other operators
who selected Nokia Siemens Network 4G-LTE solutions for trial included
Telefonica O2, Germany and Telecom Italia.
- Tata Teleservices and Bharti Airtel selected Nokia Siemens Networks to provide
network equipment and related services for 3G networks in India. The company
also signed a five-year deal with Telekom Austria Group to replace and modernize
its radio networks in Austria, Liechtenstein and Slovenia and to deploy 3G
services in Serbia and Belarus.
- Nokia Siemens Networks announced it would expand its global delivery model for
Managed Services by opening a Global Network Operations Center in Russia.
- Marking a critical step forward to 400G optical data transport networks, Nokia
Siemens Networks succeeded in transmitting data at a speed of 200 Gigabit per
second (200G) over standard optical fiber. The company was also the first in the
industry to migrate 100 customers from legacy mobile backhaul technology to
IP/Ethernet.
- Nokia Siemens Networks continued to gain traction in the IPTV market,
extending a service contract with KPN to bring new television viewing
experiences to its subscriber base and is to deploy its Ubiquity Multiscreen TV
Platform for Belgacom, allowing subscribers to access content at any time across
multiple devices.
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 THIRD QUARTER 2010
(The following discussion is of Nokia's reported results. Comparisons are given
to the third quarter 2009 results, unless otherwise indicated.)
Nokia's net sales increased 5% to EUR 10 270 million (EUR 9 810 million). Net
sales of Devices & Services increased 4% to EUR 7 173 million (EUR 6 915
million). Net sales of NAVTEQ increased 52% to EUR 252 million (EUR 166
million). Net sales of Nokia Siemens Networks increased 7% to EUR 2 943 million
(EUR 2 760 million).
Operating profit increased to EUR 403 million (operating loss of EUR 426
million), representing an operating margin of 3.9% (-4.3%). Operating profit in
Devices & Services increased 3% to EUR 807 million (EUR 785 million),
representing an operating margin of 11.3% (11.4%). Operating loss in NAVTEQ was
EUR 48 million (operating loss of EUR 68 million), representing an operating
margin of -19.0% (-41.0%). Operating loss in Nokia Siemens Networks was EUR 282
million (operating loss EUR 1 107 million), representing an operating margin of
-9.6% (-40.1%). Group Common Functions expense totaled EUR 18 million (EUR 36
million).
In the period from July to September 2010, net financial expense was EUR 79
million (EUR 48 million). Profit before tax was EUR 321 million (loss of EUR 469
million). Profit was EUR 322 million (loss of EUR 913 million), based on a
profit of EUR 529 million (loss of EUR 559 million) attributable to equity
holders of the parent and a loss of EUR 207 million (loss of EUR 354 million)
attributable to non-controlling interests. Earnings per share increased to EUR
0.14 (basic) and to EUR 0.14 (diluted), compared with EUR -0.15 (basic) and EUR
-0.15 (diluted) in the third quarter of 2009.
NOKIA IN JANUARY - SEPTEMBER 2010
(The following discussion is of Nokia's reported results. Comparisons are given
to the January-September 2009 results, unless otherwise indicated.)
Nokia's net sales increased 3% to EUR 29 795 million (EUR 28 996 million). Net
sales of Devices & Services increased 5% to EUR 20 635 million (EUR 19 674
million). Net sales of NAVTEQ increased 56% to EUR 693 million (EUR 445
million). Net sales of Nokia Siemens Networks decreased 3% to EUR 8 700 million
(EUR 8 949 million).
Operating profit increased to EUR 1 186 million (EUR 56 million), representing
an operating margin of 4.0% (0.2%). Operating profit in Devices & Services
increased 9% to EUR 2 281 million (EUR 2 095 million), representing an operating
margin of 11.1% (10.6%). Operating loss in NAVTEQ was EUR 206 million (loss of
EUR 228 million), representing an operating margin of -29.7% (-64.7%). Operating
loss in Nokia Siemens Networks was EUR 687 million (loss of EUR 1 656 million),
representing an operating margin of -7.9% (-18.5%). Corporate Common Functions
expense totaled EUR 71 million (EUR 95 million).
In the period from January to September 2010, net financial expense was EUR 220
million (net financial expense EUR 186 million). Profit before tax was EUR 953
million (loss of EUR 101 million). Profit was EUR 601 million (loss of EUR 622
million), based on a profit of EUR 1 105 million (loss of EUR 57 million)
attributable to equity holders of the parent and a loss of EUR 504 million (loss
of EUR 565 million) attributable to non-controlling interests. Earnings per
share increased to EUR 0.30 (basic) and EUR 0.30 (diluted), compared with EUR
-0.02 (basic) and EUR -0.02 (diluted) in January-September 2009.
PERSONNEL
The average number of employees during the period from January to September 2010
was 128 237, of which the average number of employees at Nokia Siemens Networks
was 65 099. At September 30, 2010, Nokia employed a total of 131 553 people (123
347 people at September 30, 2009), of which 66 090 were employed by Nokia
Siemens Networks (63 943 people at September 30, 2009).
SHARES
The total number of Nokia shares at September 30, 2010 was 3 744 956 052. At
September 30, 2010, Nokia and its subsidiary companies owned 36 032 347 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 |
| | 7-9/2010 | 7-9/2009 | 7-9/2010 | 7-9/2009 |
--------------------------------------------------------------------------------
| Net sales | 10,270 | 9,810 | 10,271 | 9,810 |
--------------------------------------------------------------------------------
| Cost of sales | -7,329 | -6,749 | -7,298 | -6,733 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Gross profit | 2,941 | 3,061 | 2,973 | 3,077 |
--------------------------------------------------------------------------------
| Research and | -1,407 | -1,386 | -1,267 | -1,257 |
| development expenses | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -921 | -920 | -816 | -822 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Administrative and | -259 | -267 | -245 | -251 |
| general expenses | | | | |
--------------------------------------------------------------------------------
| Impairment of goodwill | - | -908 | - | - |
--------------------------------------------------------------------------------
| Other income | 131 | 40 | 59 | 40 |
--------------------------------------------------------------------------------
| Other expenses | -82 | -46 | -70 | -46 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit/loss | 403 | -426 | 634 | 741 |
--------------------------------------------------------------------------------
| Share of results of | -3 | 5 | -3 | 5 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Financial income and | -79 | -48 | -79 | -48 |
| expenses | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit/loss before tax | 321 | -469 | 552 | 698 |
--------------------------------------------------------------------------------
| Tax | 1 | -444 | -172 | -96 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit/Loss | 322 | -913 | 380 | 602 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 529 | -559 | 510 | 634 |
| attributable to equity | | | | |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| Loss attributable to | -207 | -354 | -130 | -32 |
| non-controlling | | | | |
| interests | | | | |
--------------------------------------------------------------------------------
| | 322 | -913 | 380 | 602 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
| (for profit/loss | | | | |
| attributable to the | | | | |
| equity holders of the | | | | |
| parent) | | | | |
--------------------------------------------------------------------------------
| Basic | 0.14 | -0.15 | 0.14 | 0.17 |
--------------------------------------------------------------------------------
| Diluted | 0.14 | -0.15 | 0.14 | 0.17 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | |
| shares (1 000 shares) | | | | |
--------------------------------------------------------------------------------
| Basic | 3,708,888 | 3,707,535 | 3,708,888 | 3,707,535 |
--------------------------------------------------------------------------------
| Diluted | 3,711,833 | 3,714,202 | 3,711,833 | 3,714,202 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 441 | 428 | 197 | 198 |
| amortization, total | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Share-based | 14 | 15 | 14 | 15 |
| compensation expense, | | | | |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) | | | | |
--------------------------------------------------------------------------------
| | Reported | Reported | Non-IFRS | Non-IFRS |
| | 1-9/2010 | 1-9/2009 | 1-9/2010 | 1-9/2009 |
--------------------------------------------------------------------------------
| Net sales | 29,795 | 28,996 | 29,798 | 28,999 |
--------------------------------------------------------------------------------
| Cost of sales | -20,705 | -19,805 | -20,535 | -19,691 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Gross profit | 9,090 | 9,191 | 9,263 | 9,308 |
--------------------------------------------------------------------------------
| Research and | -4,323 | -4,344 | -3,885 | -3,941 |
| development expenses | | | | |
--------------------------------------------------------------------------------
| Selling and marketing | -2,860 | -2,885 | -2,538 | -2,575 |
| expenses | | | | |
--------------------------------------------------------------------------------
| Administrative and | -805 | -851 | -747 | -764 |
| general expenses | | | | |
--------------------------------------------------------------------------------
| Impairment of goodwill | - | -908 | - | - |
--------------------------------------------------------------------------------
| Other income | 269 | 239 | 168 | 171 |
--------------------------------------------------------------------------------
| Other expenses | -185 | -386 | -147 | -169 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | 1,186 | 56 | 2,114 | 2,030 |
--------------------------------------------------------------------------------
| Share of results of | -13 | 29 | -13 | 29 |
| associated companies | | | | |
--------------------------------------------------------------------------------
| Financial income and | -220 | -186 | -220 | -186 |
| expenses | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit/loss before tax | 953 | -101 | 1,881 | 1,873 |
--------------------------------------------------------------------------------
| Tax | -352 | -521 | -641 | -417 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 601 | -622 | 1,240 | 1,456 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit/loss | 1,105 | -57 | 1,445 | 1,543 |
| attributable to equity | | | | |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| Loss attributable to | -504 | -565 | -205 | -87 |
| non-controlling | | | | |
| interests | | | | |
--------------------------------------------------------------------------------
| | 601 | -622 | 1240 | 1456 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
| (for profit/loss | | | | |
| attributable to the | | | | |
| equity holders of the | | | | |
| parent) | | | | |
--------------------------------------------------------------------------------
| Basic | 0.30 | -0.02 | 0.39 | 0.42 |
--------------------------------------------------------------------------------
| Diluted | 0.30 | -0.02 | 0.39 | 0.41 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Average number of | | | | |
| shares (1 000 shares) | | | | |
--------------------------------------------------------------------------------
| Basic | 3,708,730 | 3,704,106 | 3,708,730 | 3,704,106 |
--------------------------------------------------------------------------------
| Diluted | 3,712,467 | 3,721,107 | 3,712,467 | 3,721,107 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Depreciation and | 1,341 | 1,333 | 610 | 618 |
| amortization, total | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Share-based | 33 | -1 | 33 | -1 |
| compensation expense, | | | | |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA NET SALES BY GEOGRAPHIC AREA, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| Reported | 7-9/2010 | Y-o-Y change, | 7-9/2009 | 1-12/2009 |
| | | % | | |
--------------------------------------------------------------------------------
| Europe | 3,374 | -5 | 3,558 | 14,790 |
--------------------------------------------------------------------------------
| Middle-East & Africa | 1,269 | -6 | 1,357 | 5,605 |
--------------------------------------------------------------------------------
| Greater China | 1,974 | 14 | 1,736 | 6,429 |
--------------------------------------------------------------------------------
| Asia-Pacific | 2,228 | 9 | 2,040 | 8,967 |
--------------------------------------------------------------------------------
| North America | 502 | 28 | 392 | 2,061 |
--------------------------------------------------------------------------------
| Latin America | 923 | 27 | 727 | 3,132 |
--------------------------------------------------------------------------------
| Total | 10,270 | 5 | 9,810 | 40,984 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| NOKIA PERSONNEL BY GEOGRAPHIC AREA |
--------------------------------------------------------------------------------
| | 30.09.10 | Y-o-Y change, | 30.09.09 | 31.12.09 |
| | | % | | |
--------------------------------------------------------------------------------
| Europe | 55,783 | -5 | 58,814 | 57,490 |
--------------------------------------------------------------------------------
| Middle-East & Africa | 4,621 | 12 | 4,140 | 4,172 |
--------------------------------------------------------------------------------
| Greater China | 19,993 | 33 | 15,059 | 15,774 |
--------------------------------------------------------------------------------
| Asia-Pacific | 28,182 | 21 | 23,370 | 24,382 |
--------------------------------------------------------------------------------
| North America | 8,206 | 3 | 7,936 | 7,911 |
--------------------------------------------------------------------------------
| Latin America | 14,768 | 5 | 14,028 | 13,824 |
--------------------------------------------------------------------------------
| Total | 131,553 | 7 | 123,347 | 123,553 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DEVICES & SERVICES, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Reporte | Special | Non-IFRS | Reported | Special | Non-IFRS |
| | d | items & | 7-9/2010 | 7-9/2009 | items & | 7-9/2009 |
| | 7-9/201 | PPA | | | PPA | |
| | 0 | 7-9/2010 | | | 7-9/2009 | |
--------------------------------------------------------------------------------
| Net | 7,173 | 1 | 7,174 | 6,915 | - | 6,915 |
| sales | | | | | | |
| 1) | | | | | | |
--------------------------------------------------------------------------------
| Cost of | -5,092 | - | -5,092 | -4,778 | - | -4,778 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross | 2,081 | 1 | 2,082 | 2,137 | - | 2,137 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | 29.0 | | 29.0 | 30.9 | | 30.9 |
| net | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Researc | -708 | 2 | -706 | -703 | 2 | -701 |
| h and | | | | | | |
| develop | | | | | | |
| ment | | | | | | |
| expense | | | | | | |
| s 2) | | | | | | |
--------------------------------------------------------------------------------
| % of | 9.9 | | 9.8 | 10.2 | | 10.1 |
| net | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling | -536 | 1 | -535 | -552 | - | -552 |
| and | | | | | | |
| marketi | | | | | | |
| ng | | | | | | |
| expense | | | | | | |
| s 3) | | | | | | |
--------------------------------------------------------------------------------
| % of | 7.5 | | 7.5 | 8.0 | | 8.0 |
| net | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Adminis | -95 | - | -95 | -105 | - | -105 |
| trative | | | | | | |
| and | | | | | | |
| general | | | | | | |
| expense | | | | | | |
| s | | | | | | |
--------------------------------------------------------------------------------
| % of | 1.3 | | 1.3 | 1.5 | | 1.5 |
| net | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other | 65 | -61 | 4 | 8 | - | 8 |
| income | | | | | | |
| and | | | | | | |
| expense | | | | | | |
| s 4) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operati | 807 | -57 | 750 | 785 | 2 | 787 |
| ng | | | | | | |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of | 11.3 | | 10.5 | 11.4 | | 11.4 |
| net | | | | | | |
| sales | | | | | | |
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 1 million in Q3/10. |
--------------------------------------------------------------------------------
| 2) Amortization of acquired intangible assets of EUR 2 million in Q3/10 and |
| EUR 2 million in Q3/09. |
--------------------------------------------------------------------------------
| 3) Amortization of acquired intangible assets of EUR 1 million in Q3/10. |
--------------------------------------------------------------------------------
| 4) Refund of customs duties of EUR 61 million in Q3/10. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NAVTEQ, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Report | Special | Non-IF | Reporte | Special | Non-IFR |
| | ed | items & | RS | d | items & PPA | S |
| | 7-9/20 | PPA | 7-9/20 | 7-9/200 | 7-9/2009 | 7-9/200 |
| | 10 | 7-9/2010 | 10 | 9 | | 9 |
--------------------------------------------------------------------------------
| Net sales | 252 | - | 252 | 166 | - | 166 |
--------------------------------------------------------------------------------
| Cost of | -39 | - | -39 | -20 | - | -20 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 213 | - | 213 | 146 | - | 146 |
--------------------------------------------------------------------------------
| % of net | 84.5 | | 84.5 | 88.0 | | 88.0 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | -188 | 92 | -96 | -152 | 83 | -69 |
| development | | | | | | |
| expenses 1) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 74.6 | | 38.1 | 91.6 | | 41.6 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -58 | 30 | -28 | -49 | 28 | -21 |
| marketing | | | | | | |
| expenses 2) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 23.0 | | 11.1 | 29.5 | | 12.7 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrati | -17 | - | -17 | -13 | - | -13 |
| ve and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| % of net | 6.7 | | 6.7 | 7.8 | | 7.8 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | 2 | - | 2 | - | - | - |
| and expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -48 | 122 | 74 | -68 | 111 | 43 |
| profit/loss | | | | | | |
--------------------------------------------------------------------------------
| % of net | -19.0 | | 29.4 | -41.0 | | 25.9 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| 1) Amortization of acquired intangibles of EUR 92 million in Q3/10 and EUR |
| 83 million in Q3/09. |
--------------------------------------------------------------------------------
| 2) Amortization of acquired intangibles of EUR 30 million in Q3/10 and EUR |
| 28 million in Q3/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NOKIA SIEMENS NETWORKS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Repor | Special | Non-IFR | Reporte | Special | Non-IFR |
| | ted | items & | S | d | items & | S |
| | 7-9/2 | PPA | 7-9/201 | 7-9/200 | PPA | 7-9/200 |
| | 010 | 7-9/2010 | 0 | 9 | 7-9/2009 | 9 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 2,943 | - | 2,943 | 2,760 | - | 2,760 |
--------------------------------------------------------------------------------
| Cost of sales | -2,24 | 31 | -2,210 | -1,982 | 16 | -1,966 |
| 1) | 1 | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | 702 | 31 | 733 | 778 | 16 | 794 |
--------------------------------------------------------------------------------
| % of net | 23.9 | | 24.9 | 28.2 | | 28.8 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | -511 | 46 | -465 | -531 | 44 | -487 |
| development | | | | | | |
| expenses 2) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 17.4 | | 15.8 | 19.2 | | 17.6 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -325 | 74 | -251 | -318 | 70 | -248 |
| marketing | | | | | | |
| expenses 3) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 11.0 | | 8.5 | 11.5 | | 9.0 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrativ | -130 | 14 | -116 | -128 | 16 | -112 |
| e and general | | | | | | |
| expenses 4) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 4.4 | | 3.9 | 4.6 | | 4.1 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | -18 | 1 | -17 | -908 | 908 | - |
| and expenses | | | | | | |
| 5) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -282 | 166 | -116 | -1,107 | 1,054 | -53 |
| profit/loss | | | | | | |
--------------------------------------------------------------------------------
| % of net | -9.6 | | -3.9 | -40.1 | | -1.9 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| 1) Restructuring charges of EUR 31 million in Q3/10 and of EUR 16 million in |
| Q3/09. |
--------------------------------------------------------------------------------
| 2) Restructuring charges of EUR 1 million and amortization of acquired |
| intangibles of EUR 45 million in Q3/10. Reversal of restructuring charges of |
| EUR 1 million and amortization of acquire intangibles or EUR 45 million in |
| Q3/09. |
--------------------------------------------------------------------------------
| 3) Restructuring charges of EUR 2 million and amortization of acquired |
| intangibles of EUR 72 million in Q3/10. Reversal of restructuring charges of |
| EUR 2 million and amortization of acquired intangibles of EUR 72 million in |
| Q3/09. |
--------------------------------------------------------------------------------
| 4) Restructuring charges of EUR 14 million in Q3/10 and EUR 16 million in |
| Q3/09. |
--------------------------------------------------------------------------------
| 5) Restructuring charges of EUR 1 million in Q3/10. Impairment of goodwill |
| of EUR 908 million in Q3/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROUP COMMON FUNCTIONS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | Report | Special | Non-IFR | Reporte | Special | Non-IFR |
| | ed | items & | S | d | items & | S |
| | 7-9/20 | PPA | 7-9/201 | 7-9/200 | PPA | 7-9/200 |
| | 10 | 7-9/2010 | 0 | 9 | 7-9/2009 | 9 |
--------------------------------------------------------------------------------
| Net sales | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| Cost of | - | - | - | - | - | - |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross profit | - | - | - | - | - | - |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research and | - | - | - | - | - | - |
| development | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling and | -1 | - | -1 | -1 | - | -1 |
| marketing | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administrati | -17 | - | -17 | -21 | - | -21 |
| ve and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other income | - | - | - | -14 | - | -14 |
| and expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | -18 | - | -18 | -36 | - | -36 |
| profit/loss | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| NOKIA GROUP |
--------------------------------------------------------------------------------
| | Reported | Special | Non-IFRS | Reported | Special | Non-IFRS |
| | 7-9/2010 | items & | 7-9/2010 | 7-9/2009 | items & | 7-9/2009 |
| | | PPA | | | PPA | |
| | | 7-9/201 | | | 7-9/200 | |
| | | 0 | | | 9 | |
--------------------------------------------------------------------------------
| Net sales | 10,270 | 1 | 10,271 | 9,810 | - | 9,810 |
| 1) | | | | | | |
--------------------------------------------------------------------------------
| Cost of | -7,329 | 31 | -7,298 | -6,749 | 16 | -6,733 |
| sales 2) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Gross | 2,941 | 32 | 2,973 | 3,061 | 16 | 3,077 |
| profit | | | | | | |
--------------------------------------------------------------------------------
| % of net | 28.6 | | 28.9 | 31.2 | | 31.4 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Research | -1,407 | 140 | -1,267 | -1,386 | 129 | -1,257 |
| and | | | | | | |
| developme | | | | | | |
| nt | | | | | | |
| expenses | | | | | | |
| 3) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 13.7 | | 12.3 | 14.1 | | 12.8 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Selling | -921 | 105 | -816 | -920 | 98 | -822 |
| and | | | | | | |
| marketing | | | | | | |
| expenses | | | | | | |
| 4) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 9.0 | | 7.9 | 9.4 | | 8.4 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Administr | -259 | 14 | -245 | -267 | 16 | -251 |
| ative and | | | | | | |
| general | | | | | | |
| expenses | | | | | | |
| 5) | | | | | | |
--------------------------------------------------------------------------------
| % of net | 2.5 | | 2.4 | 2.7 | | 2.6 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Other | 49 | -60 | -11 | -914 | 908 | -6 |
| income | | | | | | |
| and | | | | | | |
| expenses | | | | | | |
| 6) | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Operating | 403 | 231 | 634 | -426 | 1,167 | 741 |
| profit/lo | | | | | | |
| ss | | | | | | |
--------------------------------------------------------------------------------
| % of net | 3.9 | | 6.2 | -4.3 | | 7.6 |
| sales | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Share of | -3 | | -3 | 5 | | 5 |
| results | | | | | | |
| of | | | | | | |
| associate | | | | | | |
| d | | | | | | |
| companies | | | | | | |
--------------------------------------------------------------------------------
| Financial | -79 | | -79 | -48 | | -48 |
| income | | | | | | |
| and | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit/lo | 321 | 231 | 552 | -469 | 1,167 | 698 |
| ss before | | | | | | |
| tax | | | | | | |
--------------------------------------------------------------------------------
| Tax | 1 | -173 | -172 | -444 | 348 | -96 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit/lo | 322 | 58 | 380 | -913 | 1,515 | 602 |
| ss | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Profit/lo | 529 | -19 | 510 | -559 | 1,193 | 634 |
| ss | | | | | | |
| attributa | | | | | | |
| ble to | | | | | | |
| equity | | | | | | |
| holders | | | | | | |
| of the | | | | | | |
| parent | | | | | | |
--------------------------------------------------------------------------------
| Profit/lo | -207 | 77 | -130 | -354 | 322 | -32 |
| ss | | | | | | |
| attributa | | | | | | |
| ble to | | | | | | |
| non-contr | | | | | | |
| olling | | | | | | |
| interests | | | | | | |
--------------------------------------------------------------------------------
| | 322 | 58 | 380 | -913 | 1,515 | 602 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Earnings | | | | | | |
| per | | | | | | |
| share, | | | | | | |
| EUR (for | | | | | | |
| profit/lo | | | | | | |
| ss | | | | | | |
| attributa | | | | | | |
| ble to | | | | | | |
| the | | | | | | |
| equity | | | | | | |
| holders | | | | | | |
| of the | | | | | | |
| parent) | | | | | | |
--------------------------------------------------------------------------------
| Basic | 0.14 | | 0.14 | -0.15 | 0.32 | 0.17 |
--------------------------------------------------------------------------------
| Diluted | 0.14 | | 0.14 | -0.15 | 0.32 | 0.17 |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Average | | | | | | |
| number of | | | | | | |
| shares (1 | | | | | | |
| 000 | | | | | | |
| shares) | | | | | | |
--------------------------------------------------------------------------------
| Basic | 3,708,88 | | 3,708,888 | 3,707,535 | | 3,707,535 |
| | 8 | | | | | |
--------------------------------------------------------------------------------
| Diluted | 3,711,83 | | 3,711,833 | 3,714,202 | | 3,714,202 |
| | 3 | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Depreciat | 441 | -244 | 197 | 428 | -230 | 198 |
| ion and | | | | | | |
| amortizat | | | | | | |
| ion, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Share-bas | 14 | - | 14 | 15 | - | 15 |
| ed | | | | | | |
| compensat | | | | | | |
| ion | | | | | | |
| expense, | | | | | | |
| total | | | | | | |
--------------------------------------------------------------------------------
| 1) Deferred revenue related to acquisitions of EUR 1 million in Q3/10. |
--------------------------------------------------------------------------------
| 2) Restructuring charges of EUR 31 million in Q3/10 and EUR 16 million in |
| Q3/09. |
--------------------------------------------------------------------------------
| 3) Restructuring charges of EUR 1 million and amortization of acquired |
| intangible assets of EUR 139 million in Q3/10. Reversal of restructuring |
| charges of EUR 1 million and amortization of acquired intangible assets of |
| EUR 130 million in Q3/09. |
--------------------------------------------------------------------------------
| 4) Restructuring charges of EUR 3 million and amortization of acquired |
| intangible assets of EUR 102 million in Q3/10. Reversal of restructuring |
| charges of EUR 2 million and amortization of acquired intangible assets of |
| EUR 100 million in Q3/09. |
--------------------------------------------------------------------------------
| 5) Restructuring charges of EUR 14 million in Q3/10 and EUR 16 million in |
| Q3/09. |
--------------------------------------------------------------------------------
| 6) Restructuring charges of EUR 1 million and refund of customs duties of |
| EUR 61 million in Q3/10. Impairment of goodwill of EUR 908 million in Q3/09. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT, IFRS, EUR million |
| |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Net sales | 10,270 | 9,810 | 29,795 | 28,996 | 40,984 |
--------------------------------------------------------------------------------
| Cost of sales | -7,329 | -6,749 | -20,705 | -19,805 | -27,720 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | 2,941 | 3,061 | 9,090 | 9,191 | 13,264 |
--------------------------------------------------------------------------------
| Research and | -1,407 | -1,386 | -4,323 | -4,344 | -5,909 |
| development | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Selling and | -921 | -920 | -2,860 | -2,885 | -3,933 |
| marketing | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Administrative | -259 | -267 | -805 | -851 | -1,145 |
| and general | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
| Impairment of | - | -908 | - | -908 | -908 |
| goodwill | | | | | |
--------------------------------------------------------------------------------
| Other income | 131 | 40 | 269 | 239 | 338 |
--------------------------------------------------------------------------------
| Other expenses | -82 | -46 | -185 | -386 | -510 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 403 | -426 | 1,186 | 56 | 1,197 |
| profit/loss | | | | | |
--------------------------------------------------------------------------------
| Share of | -3 | 5 | -13 | 29 | 30 |
| results of | | | | | |
| associated | | | | | |
| companies | | | | | |
--------------------------------------------------------------------------------
| Financial | -79 | -48 | -220 | -186 | -265 |
| income and | | | | | |
| expenses | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 321 | -469 | 953 | -101 | 962 |
| before tax | | | | | |
--------------------------------------------------------------------------------
| Tax | 1 | -444 | -352 | -521 | -702 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 322 | -913 | 601 | -622 | 260 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss | 529 | -559 | 1,105 | -57 | 891 |
| attributable to | | | | | |
| equity holders | | | | | |
| of the parent | | | | | |
--------------------------------------------------------------------------------
| Loss | -207 | -354 | -504 | -565 | -631 |
| attributable to | | | | | |
| non-controlling | | | | | |
| interests | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 322 | -913 | 601 | -622 | 260 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR |
--------------------------------------------------------------------------------
| (for profit/loss attributable to the equity holders of the parent) |
--------------------------------------------------------------------------------
| Basic | 0.14 | -0.15 | 0.30 | -0.02 | 0.24 |
--------------------------------------------------------------------------------
| Diluted | 0.14 | -0.15 | 0.30 | -0.02 | 0.24 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares (1 000 shares) |
--------------------------------------------------------------------------------
| Basic | 3,708,888 | 3,707,535 | 3,708,730 | 3,704,106 | 3,705,116 |
--------------------------------------------------------------------------------
| Diluted | 3,711,833 | 3,714,202 | 3,712,467 | 3,721,107 | 3,721,072 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Depreciation | 441 | 428 | 1,341 | 1,333 | 1,784 |
| and | | | | | |
| amortization, | | | | | |
| total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share-based | 14 | 15 | 33 | -1 | 13 |
| compensation | | | | | |
| expense, total | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS, EUR million |
--------------------------------------------------------------------------------
| | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Profit/loss | 322 | -913 | 601 | -622 | 260 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income |
--------------------------------------------------------------------------------
| Translation | -836 | -405 | 1,141 | -566 | -563 |
| differences | | | | | |
--------------------------------------------------------------------------------
| Net investment | 138 | 74 | -368 | 108 | 114 |
| hedge gains/losses | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | 103 | 398 | -224 | 110 | 25 |
--------------------------------------------------------------------------------
| Available-for-sale | -28 | 9 | 12 | -3 | 48 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other | 118 | - | 88 | -12 | -7 |
| increase/decrease, | | | | | |
| net | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax related | -39 | -128 | 128 | -68 | -44 |
| to components of | | | | | |
| other comprehensive | | | | | |
| income | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive | -544 | -52 | 777 | -431 | -427 |
| income, net of tax | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | -222 | -965 | 1,378 | -1,053 | -167 |
| income/expense | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive | -32 | -644 | 1,890 | -532 | 429 |
| income/expense | | | | | |
| attributable to | | | | | |
| equity holders of | | | | | |
| the parent | | | | | |
--------------------------------------------------------------------------------
| non-controlling | -190 | -321 | -512 | -521 | -596 |
| interests | | | | | |
--------------------------------------------------------------------------------
| | -222 | -965 | 1,378 | -1,053 | -167 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET SALES BY REPORTABLE SEGMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Devices & Services | 7,173 | 6,915 | 20,635 | 19,674 | 27,853 |
--------------------------------------------------------------------------------
| NAVTEQ | 252 | 166 | 693 | 445 | 670 |
--------------------------------------------------------------------------------
| Nokia Siemens | 2,943 | 2,760 | 8,700 | 8,949 | 12,574 |
| Networks | | | | | |
--------------------------------------------------------------------------------
| Inter-segment | -98 | -31 | -233 | -72 | -113 |
| eliminations | | | | | |
--------------------------------------------------------------------------------
| Nokia Group | 10,270 | 9,810 | 29,795 | 28,996 | 40,984 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| OPERATING PROFIT BY REPORTABLE SEGMENT, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | 7-9/2010 | 7-9/2009 | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Devices & Services | 807 | 785 | 2,281 | 2,095 | 3,314 |
--------------------------------------------------------------------------------
| NAVTEQ | -48 | -68 | -206 | -288 | -344 |
--------------------------------------------------------------------------------
| Nokia Siemens | -282 | -1,107 | -687 | -1,656 | -1,639 |
| Networks | | | | | |
--------------------------------------------------------------------------------
| Group common | -18 | -36 | -71 | -95 | -134 |
| functions | | | | | |
--------------------------------------------------------------------------------
| Eliminations 1) | -56 | - | -131 | - | - |
--------------------------------------------------------------------------------
| Nokia Group | 403 | -426 | 1,186 | 56 | 1,197 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| 1) Elimination of profits recorded in NAVTEQ that are deferred in Devices & |
| Services related to the Ovi Maps service sold in combination with Nokia's |
| GPS enabled smartphones. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS, EUR million (unaudited) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | 30.09.2010 | 30.09.200 | 31.12.2009 |
| | | 9 | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Capitalized development costs | 60 | 174 | 143 |
--------------------------------------------------------------------------------
| Goodwill | 5,561 | 5,189 | 5,171 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,191 | 3,013 | 2,762 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1,934 | 1,930 | 1,867 |
--------------------------------------------------------------------------------
| Investments in associated companies | 125 | 71 | 69 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 590 | 495 | 554 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1,566 | 1,581 | 1,507 |
--------------------------------------------------------------------------------
| Long-term loans receivable | 76 | 34 | 46 |
--------------------------------------------------------------------------------
| Other non-current assets | 6 | 8 | 6 |
--------------------------------------------------------------------------------
| | 12,109 | 12,495 | 12,125 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 2,593 | 2,034 | 1,865 |
--------------------------------------------------------------------------------
| Accounts receivable | 7,117 | 8,263 | 7,981 |
--------------------------------------------------------------------------------
| Prepaid expenses and accrued income | 4,745 | 4,676 | 4,551 |
--------------------------------------------------------------------------------
| Current portion of long-term loans | 29 | 13 | 14 |
| receivable | | | |
--------------------------------------------------------------------------------
| Other financial assets | 428 | 461 | 329 |
--------------------------------------------------------------------------------
| Investments at fair value through | 1,058 | 688 | 580 |
| profit and loss, liquid assets | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments, | 3,720 | 1,770 | 2,367 |
| liquid assets | | | |
--------------------------------------------------------------------------------
| Available-for-sale investments, cash | 3,622 | 3,520 | 4,784 |
| equivalents | | | |
--------------------------------------------------------------------------------
| Bank and cash | 1,835 | 1,454 | 1,142 |
--------------------------------------------------------------------------------
| | 25,147 | 22,879 | 23,613 |
--------------------------------------------------------------------------------
| Total assets | 37,256 | 35,374 | 35,738 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND LIABILITIES |
--------------------------------------------------------------------------------
| Capital and reserves attributable to equity holders of the parent |
--------------------------------------------------------------------------------
| Share capital | 246 | 246 | 246 |
--------------------------------------------------------------------------------
| Share issue premium | 299 | 274 | 279 |
--------------------------------------------------------------------------------
| Treasury shares | -667 | -694 | -681 |
--------------------------------------------------------------------------------
| Translation differences | 684 | -134 | -127 |
--------------------------------------------------------------------------------
| Fair value and other reserves | -45 | 72 | 69 |
--------------------------------------------------------------------------------
| Reserve for invested non-restricted | 3,163 | 3,176 | 3,170 |
| equity | | | |
--------------------------------------------------------------------------------
| Retained earnings | 9,842 | 9,175 | 10,132 |
--------------------------------------------------------------------------------
| | 13,522 | 12,115 | 13,088 |
--------------------------------------------------------------------------------
| Non-controlling interests | 1,587 | 1,762 | 1,661 |
--------------------------------------------------------------------------------
| Total equity | 15,109 | 13,877 | 14,749 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities |
--------------------------------------------------------------------------------
| Long-term interest-bearing | 4,304 | 4,447 | 4,432 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 1,096 | 1,365 | 1,303 |
--------------------------------------------------------------------------------
| Other long-term liabilities | 95 | 64 | 66 |
--------------------------------------------------------------------------------
| | 5,495 | 5,876 | 5,801 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Current portion of long-term loans | 14 | 14 | 44 |
--------------------------------------------------------------------------------
| Short-term borrowing | 1,542 | 838 | 727 |
--------------------------------------------------------------------------------
| Other financial liabilities | 295 | 139 | 245 |
--------------------------------------------------------------------------------
| Accounts payable | 5,703 | 5,066 | 4,950 |
--------------------------------------------------------------------------------
| Accrued expenses | 6,634 | 6,567 | 6,504 |
--------------------------------------------------------------------------------
| Provisions | 2,464 | 2,997 | 2,718 |
--------------------------------------------------------------------------------
| | 16,652 | 15,621 | 15,188 |
--------------------------------------------------------------------------------
| Total shareholders' equity and | 37,256 | 35,374 | 35,738 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 5,860 | 5,299 | 5,203 |
--------------------------------------------------------------------------------
| Shareholders' equity per share, EUR | 3.65 | 3.27 | 3.53 |
--------------------------------------------------------------------------------
| Number of shares (1 000 shares) 1) | 3,708,924 | 3,707,576 | 3,708,262 |
--------------------------------------------------------------------------------
| 1) Shares owned by Group companies are excluded. |
| |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | 1-9/2010 | 1-9/2009 | 1-12/2009 |
--------------------------------------------------------------------------------
| Cash flow from operating activities |
--------------------------------------------------------------------------------
| Profit/loss attributable to equity | 1,105 | -57 | 891 |
| holders of the parent | | | |
--------------------------------------------------------------------------------
| Adjustments, total | 1,552 | 2,603 | 3,390 |
--------------------------------------------------------------------------------
| Change in net working capital | 1,162 | 587 | 140 |
--------------------------------------------------------------------------------
| Cash generated from operations | 3,819 | 3,133 | 4,421 |
--------------------------------------------------------------------------------| Interest received | 82 | 93 | 125 |
--------------------------------------------------------------------------------
| Interest paid | -164 | -177 | -256 |
--------------------------------------------------------------------------------
| Other financial income and expenses, | -628 | -513 | -128 |
| net | | | |
--------------------------------------------------------------------------------
| Income taxes paid | -771 | -824 | -915 |
--------------------------------------------------------------------------------
| Net cash from operating activities | 2,338 | 1,712 | 3,247 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from investing activities |
--------------------------------------------------------------------------------
| Acquisition of Group companies, net of | -96 | -25 | -29 |
| acquired cash | | | |
--------------------------------------------------------------------------------
| Purchase of current available-for-sale | -6,536 | -1,198 | -2,800 |
| investments, liquid assets | | | |
--------------------------------------------------------------------------------
| Purchase of investments at fair value | -418 | -695 | -695 |
| through profit and loss, liquid assets | | | |
--------------------------------------------------------------------------------
| Purchase of non-current | -89 | -61 | -95 |
| available-for-sale investments | | | |
--------------------------------------------------------------------------------
| Purchase of shares in associated | -32 | -27 | -30 |
| companies | | | |
--------------------------------------------------------------------------------
| Additions to capitalized development | - | -26 | -27 |
| costs | | | |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | 1 | - | 2 |
| other long-term loans receivable | | | |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | -1 | 1 | 2 |
| short-term loans receivable | | | |
--------------------------------------------------------------------------------
| Capital expenditures | -467 | -384 | -531 |
--------------------------------------------------------------------------------
| Proceeds from disposal of group | -17 | - | - |
| companies, net of disposed cash | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of shares in | 5 | 39 | 40 |
| associated companies | | | |
--------------------------------------------------------------------------------
| Proceeds from disposal of businesses | - | 62 | 61 |
--------------------------------------------------------------------------------
| Proceeds from maturities and sale of | 5,194 | 690 | 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 | 83 | 10 | 14 |
| available-for-sale investments | | | |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed assets | 21 | 18 | 100 |
--------------------------------------------------------------------------------
| Dividends received | 1 | 2 | 2 |
--------------------------------------------------------------------------------
| Net cash used in investing activities | -2,351 | -1,594 | -2,148 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash flow from financing activities |
--------------------------------------------------------------------------------
| Purchase of treasury shares | 1 | - | - |
--------------------------------------------------------------------------------
| Proceeds from long-term borrowings | 98 | 3,899 | 3,901 |
--------------------------------------------------------------------------------
| Repayment of long-term borrowings | -4 | -210 | -209 |
--------------------------------------------------------------------------------
| Proceeds from (+) / payment of (-) | 750 | -2,829 | -2,842 |
| short-term borrowings | | | |
--------------------------------------------------------------------------------
| Dividends paid | -1,524 | -1,520 | -1,546 |
--------------------------------------------------------------------------------
| Net cash used in financing activities | -679 | -660 | -696 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange adjustment | 223 | -32 | -25 |
--------------------------------------------------------------------------------
| Net increase (+) / decrease (-) in cash | -469 | -574 | 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 | 5,457 | 4,974 | 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 | Reser | Retai | Befor | Non- | Total |
| | re | re | sury | slat | r | ve | ned | e | cont | equit |
| | cap | iss | shar | ion | val | for | earni | minor | roll | y |
| | ita | ue | es | diff | ue | inves | ngs | ity | ing | |
| | l | pre | | eren | and | ted | | | inte | |
| | | miu | | ce | oth | non-r | | | rest | |
| | | m | | | er | estri | | | | |
| | | | | | res | cted | | | | |
| | | | | | erv | equit | | | | |
| | | | | | es | y | | | | |
--------------------------------------------------------------------------------
| Balan | 246 | 442 | -188 | 341 | 62 | 3306 | 11692 | 14208 | 2302 | 16510 |
| ce at | | | 1 | | | | | | | |
| Decem | | | | | | | | | | |
| ber | | | | | | | | | | |
| 31, | | | | | | | | | | |
| 2008 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Trans | | | | -560 | | | | -560 | -16 | -576 |
| latio | | | | | | | | | | |
| n | | | | | | | | | | |
| diffe | | | | | | | | | | |
| rence | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | 85 | | | | 85 | | 85 |
| inves | | | | | | | | | | |
| tment | | | | | | | | | | |
| hedge | | | | | | | | | | |
| gains | | | | | | | | | | |
| , net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | | | 17 | | | 17 | 71 | 88 |
| flow | | | | | | | | | | |
| hedge | | | | | | | | | | |
| s, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Avail | | | | | -7 | | | -7 | -8 | -15 |
| able- | | | | | | | | | | |
| for-s | | | | | | | | | | |
| ale | | | | | | | | | | |
| inves | | | | | | | | | | |
| tment | | | | | | | | | | |
| s, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | -10 | -10 | -3 | -13 |
| decre | | | | | | | | | | |
| ase, | | | | | | | | | | |
| net | | | | | | | | | | |
--------------------------------------------------------------------------------
| Profi | | | | | | | -57 | -57 | -565 | -622 |
| t | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | -475 | 10 | - | -67 | -532 | -521 | -1053 |
| compr | | | | | | | | | | |
| ehens | | | | | | | | | | |
| ive | | | | | | | | | | |
| incom | | | | | | | | | | |
| e | | | | | | | | | | |
--------------------------------------------------------------------------------
| Stock | | 1 | | | | | | 1 | | 1 |
| optio | | | | | | | | | | |
| ns | | | | | | | | | | |
| exerc | | | | | | | | | | |
| ised | | | | | | | | | | |
| relat | | | | | | | | | | |
| ed to | | | | | | | | | | |
| acqui | | | | | | | | | | |
| sitio | | | | | | | | | | |
| ns | | | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | -1 | | | | | | -1 | | -1 |
| -base | | | | | | | | | | |
| d | | | | | | | | | | |
| compe | | | | | | | | | | |
| nsati | | | | | | | | | | |
| on | | | | | | | | | | |
--------------------------------------------------------------------------------
| Exces | | -13 | | | | | | -13 | -1 | -14 |
| s tax | | | | | | | | | | |
| benef | | | | | | | | | | |
| it on | | | | | | | | | | |
| share | | | | | | | | | | |
| -base | | | | | | | | | | |
| d | | | | | | | | | | |
| compe | | | | | | | | | | |
| nsati | | | | | | | | | | |
| on | | | | | | | | | | |
--------------------------------------------------------------------------------
| Settl | | -15 | 217 | | | -130 | | -68 | | -68 |
| ement | | 5 | | | | | | | | |
| of | | | | | | | | | | |
| perfo | | | | | | | | | | |
| rmanc | | | | | | | | | | |
| e and | | | | | | | | | | |
| restr | | | | | | | | | | |
| icted | | | | | | | | | | |
| share | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Reiss | | | 1 | | | | | 1 | | 1 |
| uance | | | | | | | | | | |
| of | | | | | | | | | | |
| treas | | | | | | | | | | |
| ury | | | | | | | | | | |
| share | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Cance | | | 969 | | | | -969 | - | | - |
| llati | | | | | | | | | | |
| on of | | | | | | | | | | |
| treas | | | | | | | | | | |
| ury | | | | | | | | | | |
| share | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Divid | | | | | | | -1481 | -1481 | -18 | -1499 |
| end | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | - | -16 | 1187 | - | - | -130 | -2450 | -1561 | -19 | -1580 |
| of | | 8 | | | | | | | | |
| other | | | | | | | | | | |
| equit | | | | | | | | | | |
| y | | | | | | | | | | |
| movem | | | | | | | | | | |
| ents | | | | | | | | | | |
--------------------------------------------------------------------------------
| Balan | 246 | 274 | -694 | -134 | 72 | 3176 | 9175 | 12,11 | 1762 | 13877 |
| ce at | | | | | | | | 5 | | |
| Septe | | | | | | | | | | |
| mber | | | | | | | | | | |
| 30, | | | | | | | | | | |
| 2009 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balan | 246 | 279 | -681 | -127 | 69 | 3170 | 10132 | 13088 | 1661 | 14749 |
| ce at | | | | | | | | | | |
| Decem | | | | | | | | | | |
| ber | | | | | | | | | | |
| 31, | | | | | | | | | | |
| 2009 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Trans | | | | 1083 | | | | 1083 | 54 | 1137 |
| latio | | | | | | | | | | |
| n | | | | | | | | | | |
| diffe | | | | | | | | | | |
| rence | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Net | | | | -272 | | | | -272 | | -272 |
| inves | | | | | | | | | | |
| tment | | | | | | | | | | |
| hedge | | | | | | | | | | |
| losse | | | | | | | | | | |
| s, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | | | -12 | | | -123 | -63 | -186 |
| flow | | | | | 3 | | | | | |
| hedge | | | | | | | | | | |
| s, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Avail | | | | | 9 | | | 9 | | 9 |
| able- | | | | | | | | | | |
| for-s | | | | | | | | | | |
| ale | | | | | | | | | | |
| inves | | | | | | | | | | |
| tment | | | | | | | | | | |
| s, | | | | | | | | | | |
| net | | | | | | | | | | |
| of | | | | | | | | | | |
| tax | | | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | 88 | 88 | | 88 |
| incre | | | | | | | | | | |
| ase, | | | | | | | | | | |
| net | | | | | | | | | | |
--------------------------------------------------------------------------------
| Profi | | | | | | | 1105 | 1105 | -503 | 602 |
| t | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | - | - | - | 811 | -11 | - | 1193 | 1,890 | -512 | 1378 |
| compr | | | | | 4 | | | | | |
| ehens | | | | | | | | | | |
| ive | | | | | | | | | | |
| incom | | | | | | | | | | |
| e | | | | | | | | | | |
--------------------------------------------------------------------------------
| Stock | | -1 | | | | | | -1 | | -1 |
| optio | | | | | | | | | | |
| ns | | | | | | | | | | |
| exerc | | | | | | | | | | |
| ised | | | | | | | | | | |
| relat | | | | | | | | | | |
| ed to | | | | | | | | | | |
| acqui | | | | | | | | | | |
| sitio | | | | | | | | | | |
| ns | | | | | | | | | | |
--------------------------------------------------------------------------------
| Share | | 31 | | | | | | 31 | | 31 |
| -base | | | | | | | | | | |
| d | | | | | | | | | | |
| compe | | | | | | | | | | |
| nsati | | | | | | | | | | |
| on | | | | | | | | | | |
--------------------------------------------------------------------------------
| Exces | | -1 | | | | | | -1 | | -1 |
| s tax | | | | | | | | | | |
| benef | | | | | | | | | | |
| it on | | | | | | | | | | |
| share | | | | | | | | | | |
| -base | | | | | | | | | | |
| d | | | | | | | | | | |
| compe | | | | | | | | | | |
| nsati | | | | | | | | | | |
| on | | | | | | | | | | |
--------------------------------------------------------------------------------
| Settl | | -9 | 13 | | | -7 | | -3 | | -3 |
| ement | | | | | | | | | | |
| of | | | | | | | | | | |
| perfo | | | | | | | | | | |
| rmanc | | | | | | | | | | |
| e and | | | | | | | | | | |
| restr | | | | | | | | | | |
| icted | | | | | | | | | | |
| share | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Reiss | | | 1 | | | | | 1 | | 1 |
| uance | | | | | | | | | | |
| of | | | | | | | | | | |
| treas | | | | | | | | | | |
| ury | | | | | | | | | | |
| share | | | | | | | | | | |
| s | | | | | | | | | | |
--------------------------------------------------------------------------------
| Conve | | | | | | | | - | 500 | 500 |
| rsion | | | | | | | | | | |
| of | | | | | | | | | | |
| debt | | | | | | | | | | |
| to | | | | | | | | | | |
| equit | | | | | | | | | | |
| y | | | | | | | | | | |
--------------------------------------------------------------------------------
| Divid | | | | | | | -1483 | -1483 | -61 | -1544 |
| end | | | | | | | | | | |
--------------------------------------------------------------------------------
| Acqui | | | | | | | | | -1 | -1 |
| sitio | | | | | | | | | | |
| ns | | | | | | | | | | |
| and | | | | | | | | | | |
| other | | | | | | | | | | |
| chang | | | | | | | | | | |
| e in | | | | | | | | | | |
| non-c | | | | | | | | | | |
| ontro | | | | | | | | | | |
| lling | | | | | | | | | | |
| inter | | | | | | | | | | |
| ests | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | - | 20 | 14 | - | - | -7 | -1483 | -1456 | 438 | -1018 |
| of | | | | | | | | | | |
| other | | | | | | | | | | |
| equit | | | | | | | | | | |
| y | | | | | | | | | | |
| movem | | | | | | | | | | |
| ents | | | | | | | | | | |
--------------------------------------------------------------------------------
| Balan | 246 | 299 | -667 | 684 | -45 | 3163 | 9842 | 13522 | 1587 | 15109 |
| ce at | | | | | | | | | | |
| Septe | | | | | | | | | | |
| mber | | | | | | | | | | |
| 30, | | | | | | | | | | |
| 2010 | | | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| COMMITMENTS AND CONTINGENCIES, EUR million |
--------------------------------------------------------------------------------
| (unaudited) |
--------------------------------------------------------------------------------
| | | GROUP | |
--------------------------------------------------------------------------------
| | 30.09.2010 | 30.09.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| 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 | 1,367 | 2,581 | 1,350 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Contingent liabilities on behalf of other companies |
--------------------------------------------------------------------------------
| Financial guarantees on behalf of | - | 1 | - |
| third parties | | | |
--------------------------------------------------------------------------------
| Other guarantees | 22 | 3 | 3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing obligations | 1,084 | 1,263 | 1,222 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financing commitments |
--------------------------------------------------------------------------------
| Customer finance commitments | 72 | 35 | 99 |
--------------------------------------------------------------------------------
| Venture fund commitments | 268 | 324 | 293 |
--------------------------------------------------------------------------------
1 EUR = 1.365 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 - October 21, 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 fourth quarter 2010 results on January 27, 2011.
- Nokia plans to publish its other quarterly results in 2011 on the following
dates: Q1 on April 21, Q2 on July 21 and Q3 on October 20, 2011.
- Nokia plans to publish its annual report, Nokia in 2010, in week 13 of 2011.
- Nokia's Annual General Meeting is scheduled to be held on May 3, 2011.
www.nokia.com
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