2011-10-20 12:00:54 CEST
2011-10-20 12:02:00 CEST
REGULATED INFORMATION
Nokia - Interim report (Q1 and Q3)
Nokia Q3 2011 net sales EUR 9.0 billion, non-IFRS EPS EUR 0.03 (reported EPS EUR -0.02)
Strong operating cash flow and liquidity position with net cash of EUR 5.1
billion at end of Q3 2011
Nokia Corporation
Interim report
October 20, 2011 at 13.00 (CET+1)
This is a summary of the third quarter 2011 interim report published today. The
complete third quarter 2011 interim report with tables is available at
http://www.nokia.com/results/Nokia_results2011Q3e.pdf. Investors should not
rely on summaries of our interim reports only, but should review the complete
interim reports with tables.
Reported and Non-IFRS third quarter 2011 results1,2
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-
EUR million Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change
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Nokia
Net sales 8 980 10 270 -13% 9 275 -3%
Operating profit -71 403 -487
Operating profit (non-IFRS) 252 634 -60% 391 -36%
EPS, EUR diluted -0.02 0.14 -0.10
EPS, EUR diluted (non-IFRS)3 0.03 0.14 -79% 0.06 -50%
Net cash from 852 439 94% -176
operating activities
Net cash and other 5 067 4 375 16% 3 891 30%
liquid assets4
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Devices & Services5
Net sales 5 392 7 173 -25% 5 467 -1%
Smart Devices net sales 2 206 3 612 -39% 2 368 -7%
Mobile Phones net sales 2 903 3 364 -14% 2 551 14%
Mobile device 106.6 110.4 -3% 88.5 20%
volume (million units)
Smart Devices 16.8 27.1 -38% 16.7 1%
volume (million units)
Mobile Phones 89.8 83.3 8% 71.8 25%
volume (million units)
Mobile device ASP6 51 65 -22% 62 -18%
Smart Devices ASP6 131 133 -2% 142 -8%
Mobile Phones ASP6 32 40 -20% 36 -11%
Operating profit 132 807 -84% -247
Operating profit (non-IFRS) 222 750 -70% 369 -40%
Operating margin % 2.4% 11.3% -4.5%
Operating margin % (non-IFRS) 4.1% 10.5% 6.7%
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NAVTEQ
Net sales 241 252 -4% 245 -2%
Operating profit -45 -48 -58
Operating profit (non-IFRS) 68 74 -8% 53 28%
Operating margin % -18.7% -19.0% -23.7%
Operating margin % (non-IFRS) 28.2% 29.4% 21.5%
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Nokia Siemens Networks7
Net sales 3 413 2 943 16% 3 642 -6%
Operating profit -114 -282 -111
Operating profit (non-IFRS) 6 -116 40 -85%
Operating margin % -3.3% -9.6% -3.0%
Operating margin % (non-IFRS) 0.2% -3.9% 1.1%
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Note 1 relating to January-September 2011 results: Nokia reported net sales
were EUR 28 654 million and reported earnings per share (diluted) were EUR
-0.02 for the period from January 1 to September 30, 2011. Further information
about the results for the period from January 1 to September 30, 2011 can be
found on pages 15, 18, 26, 27 and 29 of the complete Q3 2011 interim report
with tables.
Note 2 relating to non-IFRS results: Non-IFRS results exclude special items for
all periods. In addition, non-IFRS results exclude intangible asset
amortization, other purchase price accounting related items and inventory value
adjustments arising from i) the formation of Nokia Siemens Networks and ii) all
business acquisitions completed after June 30, 2008. More specific information
about the exclusions from the non-IFRS results may be found in our complete
interim report with tables for Q3 2011 on pages 3-4, 20-22 and 24. 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 2011 and Q3 2010 can be found in the tables on pages 17
and 20-24 of our complete interim report with tables. A reconciliation of our
Q2 2011 non-IFRS results can be found on pages 17 and 20-24 of our complete Q2
2011 interim report with tables which was published on July 21, 2011.
Note 3 relating to non-IFRS Nokia EPS: 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, certain one-quarter
tax expenses also had an unfavorable 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 cent higher in Q3 2011.
Note 4 relating to Nokia net cash and other liquid assets: Calculated as total
cash and other liquid assets less interest-bearing liabilities.
Note 5 relating to Devices & Services reporting structure: Effective from April
1, 2011, our Devices & Services business has included two operating and
reportable segments - Smart Devices, which focuses on smartphones, and Mobile
Phones, which focuses on mass market mobile devices - as well as Devices &
Services Other. Prior period results for each quarter and the full year 2010
and Q1 2011 have been regrouped (on an unaudited basis) for comparability
purposes according to the new reporting format. The regrouped financial
information can be accessed at: http://www.nokia.com/investors
Note 6 relating to average selling prices (ASP): Mobile device ASP represents
total Devices & Services net sales (Smart Devices net sales, Mobile Phones net
sales, and Devices & Services Other net sales) divided by total Devices &
Services volumes. Devices & Services Other net sales includes net sales of
Nokia's luxury phone business Vertu and spare parts, as well as intellectual
property royalty income. Smart Devices ASP represents Smart Devices net sales
divided by Smart Devices volumes. Mobile Phones ASP represents Mobile Phones
net sales divided by Mobile Phones volumes.
Note 7 relating to the acquired Motorola Solutions networks assets: Nokia
Siemens Networks completed the acquisition of Motorola Solutions' networks
assets on April 30, 2011. Accordingly, the results of Nokia Siemens Networks
for the third quarter 2011 are not directly comparable to its results for prior
periods.
STEPHEN ELOP, NOKIA CEO:
I am encouraged by the progress we made during Q3, while noting that there are
still many important steps ahead in our journey of transformation. With each
step, you will see us methodically implement our strategy, pursuing steady
improvement through a period that has known transition risks, while also
dealing with the various unexpected ups and downs that typify the dynamic
nature of our industry. During the third quarter, we continued to take the
action necessary to drive the structural changes required for Nokia's long-term
success.
Our results in Q3 indicate that our sales execution and channel inventory
situation have improved. From a product standpoint, our overall Mobile Phones
portfolio performed well. We shipped approximately 18 million dual SIM devices
in Q3, and in markets such as India where dual SIM is pervasive, we gained
market share. We also strengthened our Smart Devices line up in Q3, with the
launch of our first smartphones running Symbian Belle, which improves the user
experience and strengthens the competitiveness of our product portfolio.
Additionally, I am encouraged by our progress around the first Nokia experience
with Windows Phone, and we look forward to bringing the experience to consumers
in select countries later this quarter. We then intend to systematically
increase the number of countries and launch partners during the course of 2012.
To position Nokia for the future, we are driving fundamental changes in how we
operate. In addition to the changes announced in April, in Q3 we announced
plans for structural changes in manufacturing, Location & Commerce and
supporting functions. The planned changes we have initiated are difficult but
necessary in order to align the company to our strategy.
In summary, in Q3 we started to see signs of early improvement in many areas,
but we must continue to focus on consistent progress so that we can move Nokia
through the transformation and deliver superior results to our shareholders.
NOKIA OUTLOOK
- Nokia expects its non-IFRS Devices & Services operating margin in the fourth
quarter 2011 to be between 1% and 5%. This outlook is based on our expectations
regarding a number of factors, including:
- competitive industry dynamics;
- an expected sequential increase in Devices & Services net sales;
- an expected greater-than-normal seasonal increase in Devices & Services
operating expenses as Nokia launches new products;
- timing, ramp-up, and consumer demand related to our new products;
-availability of components from our suppliers; and
- the macroeconomic environment.
- Nokia continues to target to reduce Devices & Services non-IFRS operating
expenses by more than EUR 1 billion for the full year 2013, compared to the
full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.65
billion.
- Nokia continues to expect Nokia Group net cash and other liquid assets at the
end of 2011 to be above the EUR 3.9 billion balance at the end of the second
quarter 2011.
- Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net sales to
be between EUR 3.7 billion and EUR 4.0 billion in the fourth quarter 2011.
- Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in
Nokia Siemens Networks to be between 1% and 4% in the fourth quarter 2011.
- Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks'
net sales to grow faster than the market in 2011.
- Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks'
non-IFRS operating margin to be above breakeven in 2011.
- Nokia and Nokia Siemens Networks continue to expect 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.
- The outlook relating to Nokia Siemens Networks includes the impact of the
acquisition of Motorola Solutions' networks assets.
THIRD QUARTER 2011 FINANCIAL HIGHLIGHTS
The non-IFRS results exclude:
Q3 2011 — EUR 323 million (net) consisting of:
- EUR 26 million restructuring charge and other associated items in Nokia
Siemens Networks
- EUR 59 million restructuring charge and EUR 54 million associated impairments
in Devices & Services
- EUR 24 million positive Accenture deal closing adjustment in Devices &
Services
- EUR 94 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks
and the acquisition of Motorola Solutions' networks assets
- EUR 113 million of intangible asset amortization and other purchase price
accounting related items arising from the acquisition of NAVTEQ
- EUR 1 million of intangible assets amortization and other purchase price
related items arising from the acquisition of Novarra, MetaCarta and Motally in
Devices & Services
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 2011 - EUR 878 million consisting of:
- EUR 68 million restructuring charge and other associated items in Nokia
Siemens Networks
- EUR 297 million restructuring charge in Devices & Services
- EUR 275 million accrued Accenture deal consideration in Devices & Services
- EUR 41 million impairment of shares in an associated company in Devices &
Services
- EUR 83 million of intangible asset amortization and other purchase price
accounting related items arising from the formation of Nokia Siemens Networks
and the acquisition of Motorola's networks assets
- EUR 111 million of intangible asset amortization and other purchase price
accounting related items arising from the acquisition of NAVTEQ
- EUR 3 million of intangible assets amortization and other purchase price
related items arising from the acquisition of OZ Communications, Novarra and
Motally in Devices & Services
Non-IFRS results exclude special items for all periods. In addition, non-IFRS
results exclude intangible asset amortization, other purchase price accounting
related items and inventory value adjustments arising from i) the formation of
Nokia Siemens Networks and ii) all business acquisitions completed after June
30, 2008.
Nokia Group
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.
THIRD QUARTER 2011 NET SALES, REPORTED & CONSTANT CURRENCY1
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YoY Change QoQ Change
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Group net sales - reported -13% -3%
Group net sales - constant currency1 -10% -3%
Devices & Services net sales - reported -25% -1%
Devices & Services net sales - constant currency1 -22% -1%
NAVTEQ net sales - reported -4% -2%
NAVTEQ net sales - constant currency1 1% -2%
Nokia Siemens Networks net sales - reported 16% -6%
Nokia Siemens Networks net sales - constant currency1 18% -7%
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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.
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.
NOKIA GROUP CASH FLOW AND FINANCIAL POSITION
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EUR million Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ
Change
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Net cash from operating activities 852 439 94% -176
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Total cash and other liquid assets 10 809 10 235 6% 9 358
16%
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Net cash and other liquid assets 5 067 4 375 16% 3 891
30%
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Year-on-year, net cash and other liquid assets increased by EUR 692 million
primarily due to positive overall net cash from operating activities and a EUR
500 million equity investment in Nokia Siemens Networks by Siemens, partially
offset by payment of the dividend and cash outflows related to the acquisition
of Motorola Solutions' networks assets and capital expenditures. In the third
quarter 2011, Nokia and Siemens each provided capital of EUR 500 million to
Nokia Siemens Networks to further strengthen the company's financial position
and set the stage for strategic flexibility, productivity and innovation in
areas such as Mobile Broadband and related services.
Sequentially, net cash and other liquid assets increased by EUR 1.2 billion
primarily due to strong net cash from operating activities in Devices &
Services which was supported by positive net working capital developments and
net cash inflows from hedging activities. This was partially offset by capital
expenditures. The positive net working developments were driven by an increase
in payables due to higher business activity, a decrease in receivables due to a
shift in the geographic mix of our net sales towards regions with shorter
payment terms, partially offset by an increase in inventories due to higher
business activity. Additionally, the increase in net cash and other liquid
assets was supported by the above mentioned equity investment in Nokia Siemens
Networks by Siemens.
Devices & Services
Effective from April 1, 2011, our Devices & Services business has included two
operating and reportable segments - Smart Devices, which focuses on
smartphones, and Mobile Phones, which focuses on mass market mobile devices -
as well as Devices & Services Other. Prior period results for each quarter and
the full year 2010 and Q1 2011 have been regrouped (on an unaudited basis) for
comparability purposes according to the new reporting format. The regrouped
financial information can be accessed at: http://www.nokia.com/investors
The following chart sets out a summary of the results for our Devices &
Services business for the periods indicated, as well as the year-on-year and
sequential growth rates.
DEVICES & SERVICES RESULTS SUMMARY
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Q3/2011 Q3/2010 YoY Change
Q2/2011 QoQ Change
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Net sales (EUR millions)1 5 392 7 173 -25% 5
467 -1%
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Mobile device volume (million units) 106.6 110.4 -3%
88.5 20%
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Mobile device ASP (EUR) 51 65 -22%
62 -18%
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Non-IFRS gross margin (%) 26.1% 29.0%
31.1%
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Non-IFRS operating expenses (EUR millions) 1 188 1 336 -11% 1
329 -11%
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Non-IFRS operating margin (%) 4.1% 10.5%
6.7%
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Note 1: Includes IPR royalty income recognized in Devices & Services Other net
sales.
Net Sales
The year-on-year and sequential declines in our Devices & Services net sales
are discussed below in our operating analysis of our Smart Devices and Mobile
Phones business units. Our overall Devices & Services net sales, gross and
operating margins in the third quarter 2011 benefited from the recognition of
approximately EUR 70 million of non-recurring IPR royalty income recognized in
Devices & Services Other net sales. Our overall Devices & Services net sales,
gross and operating margins in the second quarter 2011 benefited from the
recognition of approximately EUR 430 million of IPR royalty income from new
contracts related to the second quarter 2011 and earlier periods recognized in
Devices & Services Other net sales. At constant currency, Devices & Services
net sales would have decreased 22% year-on-year and 1% sequentially.
The following chart sets out the net sales for our Devices & Services business
for the periods indicated, as well as the year-on-year and sequential growth
rates, by geographic area. The IPR royalty income described in the paragraph
above has been allocated to the geographic areas contained in this chart.
DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA
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EUR million Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change
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Europe 1 394 2 289 -39% 1 666 -16%
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Middle East & Africa 957 930 3% 988 -3%
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Greater China 1 240 1 654 -25% 913 36%
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Asia-Pacific 1 197 1 504 -20% 1 085 10%
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North America 73 226 -68% 88 -17%
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Latin America 531 570 -7% 727 -27%
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Total 5 392 7 173 -25% 5 467 -1%
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Volume
The following chart sets out the mobile device volumes for our Devices &
Services business for the periods indicated, as well as the year-on-year and
sequential growth rates, by geographic area.
DEVICES & SERVICES MOBILE DEVICE VOLUMES BY GEOGRAPHIC AREA
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million units Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change
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Europe 20.7 29.2 -29% 18.4 13%
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Middle East & Africa 26.0 18.4 41% 20.5 27%
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Greater China 15.9 20.2 -21% 11.3 41%
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Asia-Pacific 32.4 27.8 17% 24.5 32%
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North America 0.7 3.2 -78% 1.5 -53%
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Latin America 10.9 11.6 -6% 12.3 -11%
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Total 106.6 110.4 -3% 88.5 20%
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On a year-on-year basis, the decline in our total Devices & Services volumes in
the third quarter 2011 was driven by lower Smart Devices volumes which more
than offset the increase in our Mobile Phones volumes.
The sequential increase in our total Devices & Services volumes in the third
quarter 2011 was driven by higher Mobile Phones volumes. It also reflected
higher sales in the third quarter 2011 following actions taken during the
second quarter 2011 to create a healthier sales environment by facilitating the
reduction of the inventory levels held by distributors and operators.
During the third quarter 2011, our overall level of channel inventory continued
to decline slightly and we ended the quarter with our sales channel inventories
within our normal range of 4-6 weeks.
Average Selling Price
On a year-on-year basis, the overall decrease in our Devices & Services ASP in
the third quarter 2011 was driven primarily by the lower ASP in Mobile Phones
and, to a lesser extent, Smart Devices, a higher proportion of Mobile Phones
sales and the appreciation of the Euro against certain currencies, partially
offset by a positive impact from foreign exchange currency hedging and higher
IPR royalty income.
On a sequential basis, the overall decline in our Devices & Services ASP in the
third quarter 2011 was driven by a product mix shift towards lower priced
devices, lower IPR royalty income and the impact of a full quarter of our
tactical pricing actions across the portfolio initiated in the second quarter
2011.
Gross Margin
On a year-on-year basis, the decline in our Devices & Services non-IFRS gross
margin in the third quarter 2011 was driven by gross margin declines in both
Smart Devices and Mobile Phones, partially offset by higher IPR royalty income.
On a sequential basis, the decline in our Devices & Services non-IFRS gross
margin in the third quarter 2011 was driven primarily by lower IPR royalty
income, as well as lower gross margins in both Smart Devices and Mobile Phones.
Operating Expenses
Devices & Services non-IFRS research and development expenses decreased 16%
year-on-year and 12% sequentially due to declines in Smart Devices and Devices& Services Other research and development expenses, partially offset by a
year-on-year increase in Mobile Phones research and development expenses.
Devices & Services Other includes common research and development expenses and
services related research and development expenses. The decreases in Smart
Devices and Devices & Services Other research and development expenses were due
primarily to a focus on priority projects and cost controls. The increase in
Mobile Phones research and development expenses was due primarily to
investments to accelerate product development to bring new innovations to the
market faster and at lower price-points, partially offset by a focus on
priority projects and cost controls.
Devices & Services non-IFRS sales and marketing expenses decreased 7%
year-on-year and 13% sequentially driven by lower spending on marketing
programs, and to a lesser degree, by more focused sales programs.
Devices & Services non-IFRS administrative and general expenses increased 3%
year-on-year and 10% sequentially. On a sequential basis, focus on near-term
cost controls continued, with the increase reflecting shifts in expenses from
research and development and sales and marketing.
In the third quarter 2011, Devices & Services non-IFRS other income and expense
had a slight negative year-on-year impact on profitability and a slight
positive sequential impact. Reported other income and expense was significantly
adversely impacted in the third quarter 2011 primarily as a result of
restructuring related expenses discussed below, which were recognized in
Devices & Services Other.
Cost Reduction Activities and Planned Operational Adjustments
We are continuing to target to reduce our Devices & Services non-IFRS operating
expenses by more than EUR 1 billion for the full year 2013, compared to the
full year 2010 Devices & Services non-IFRS operating expenses of EUR 5.65
billion. This reduction is expected to come from a variety of different sources
and initiatives, including a planned reduction in the number of employees and
normal personnel attrition, a reduction in the use of outsourced professionals,
reductions in facility costs, and various improvements in efficiencies.
Our cost reduction activities include a strategic collaboration with Accenture
to outsource Nokia's Symbian software development and support activities to
Accenture. Approximately 2 300 Nokia employees were transferred to Accenture as
part of the transaction which was completed on September 30, 2011.
At the end of the third quarter 2011, we announced plans to take additional
actions to align our workforce and operations. The measures include the planned
closure of Nokia's manufacturing facility in Cluj, Romania, which - together
with adjustments to supply chain operations - is estimated to impact
approximately 2 200 employees; a plan to shift the focus of Nokia's
manufacturing operations in Salo in Finland, Komarom in Hungary, and Reynosa in
Mexico towards customer and market-specific software and sales package
customization; and a plan to concentrate the development efforts of Location &
Commerce in Berlin in Germany, Boston and Chicago in the U.S., and other
supporting sites. The planned changes in Location & Commerce, which include the
closure of its operations in Bonn in Germany and Malvern in the U.S., are
estimated to impact approximately 1 300 employees.
The planned measures support the execution of our strategy and also target to
bring efficiencies and speed to the organization. In line with the company
values, Nokia will offer employees affected by the planned reductions a
comprehensive support program. Nokia remains committed to supporting its
employees and the local communities through this difficult change.
During the third quarter, Devices & Services recognized net charges of EUR 89
million related to restructuring activities, which include restructuring
charges, associated impairments and an Accenture-related deal closing
adjustment. As of the end of the third quarter 2011, we have recognized
cumulative charges of EUR 661 million related to restructuring activities.
While the total extent of the restructuring activities is still to be
determined, we currently anticipate cumulative charges in Devices & Services of
around EUR 900 million before the end of 2012. We also believe total cash
outflows related to our Devices & Services restructuring activities will be
below the level of the cumulative charges related to these restructuring
activities.
Smart Devices
The following chart sets out a summary of the results for our Smart Devices
business unit for the periods indicated, as well as the year-on-year and
sequential growth rates.
SMART DEVICES RESULTS SUMMARY
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Q3/2011 Q3/2010 YoY Change Q2/2011
QoQ Change
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Net sales (EUR millions)1 2 206 3 612 -39% 2 368
-7%
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Smart Devices volume (million units) 16.8 27.1 -38% 16.7
1%
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Smart Devices ASP (EUR) 131 133 -2% 142
-8%
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Gross margin (%) 23.3% 30.5% 25.7%
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Operating expenses (EUR millions) 657 773 -15% 752
-13%
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Contribution margin (%) -5.9% 9.3% -6.2%
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Note 1: Does not include IPR royalty income. IPR royalty income is recognized
in Devices & Services Other net sales.
Net Sales
The year-on-year decline in our Smart Devices net sales in the third quarter
2011 was primarily due to significantly lower volumes. On a sequential basis,
the decrease in our Smart Devices net sales in the third quarter 2011 was due
to the lower ASP.
Volume
The year-on-year decrease in our Smart Device volumes in the third quarter 2011
continued to be driven by the strong momentum of competing smartphone platforms
relative to our higher priced Symbian devices, as well as pricing tactics by
certain competitors. On a sequential basis, our virtually flat Smart Devices
volumes in the third quarter 2011 reflected better demand for our lower priced
Symbian smartphones compared to our higher priced Symbian smartphones.
Average Selling Price
The year-on-year decline in our Smart Devices ASP in the third quarter 2011 was
driven primarily by our tactical pricing actions due to the competitive
environment, partially offset by a product mix shift towards higher priced
Symbian devices and a lower deferral of revenue related to map services sold in
combination with devices.
Sequentially, the decline in our Smart Devices ASP in the third quarter 2011
reflected the impact of a full quarter of our tactical pricing actions across
the portfolio initiated in the second quarter 2011, as well as a product mix
shift towards lower priced smartphones.
Gross Margin
The year-on-year decline in our Smart Devices gross margin in the third quarter
2011 was driven primarily by our tactical pricing actions due to the
competitive environment and higher fixed manufacturing costs per unit due to
lower volumes, partially offset by a product mix shift towards higher margin
Symbian devices.
On a sequential basis, the decline in our Smart Devices gross margin in the
third quarter 2011 was driven primarily by the impact of a full quarter of our
tactical pricing actions across our portfolio initiated in the second quarter
2011 which resulted in greater price erosion than cost erosion.
Mobile Phones
The following chart sets out a summary of the results for our Mobile Phones
business unit for the periods indicated, as well as the year-on-year and
sequential growth rates.
MOBILE PHONES RESULTS SUMMARY
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Q3/2011 Q3/2010 YoY Change Q2/2011
QoQ Change
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Net sales (EUR millions)1 2 903 3 364 -14% 2 551
14%
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Mobile Phones volume (million units) 89.8 83.3 8% 71.8
25%
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Mobile Phones ASP (EUR) 32 40 -20% 36
-11%
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Gross margin (%) 23.8% 25.5% 25.1%
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Operating expenses (EUR million) 404 382 6% 420
-4%
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Contribution margin (%) 10.2% 14.2% 8.6%
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Note 1: Does not include IPR royalty income. IPR royalty income is recognized
in Devices & Services Other net sales.
Net Sales
On a year-on-year basis, our Mobile Phones net sales in the third quarter 2011
decreased due to the lower ASP offset to some extent by higher volumes. On a
sequential basis, the increase in our Mobile Phones net sales in the third
quarter 2011 was due to higher volumes, which more than offset the lower ASP.
Volume
The year-on-year increase in our Mobile Phones volumes in the third quarter2011 was driven by strong demand for our dual SIM devices, which reached 17.9
million during the quarter, as well as higher demand for our QWERTY products.
On a sequential basis, the increase in our Mobile Phones volumes in the third
quarter 2011 was primarily driven by the broader availability of our dual SIM
devices which also helped to increase demand for other devices across our
Mobile Phones portfolio.
Average Selling Price
The year-on-year decline in our Mobile Phones ASP in the third quarter 2011 was
driven primarily by our tactical pricing actions due to the competitive
environment and an increased proportion of lower priced products in our Mobile
Phone portfolio.
On a sequential basis, the decline in our Mobile Phones ASP in the third
quarter 2011 was due primarily to a continued product mix shift towards lower
priced devices and the impact of a full quarter of our tactical pricing actions
across the portfolio initiated in the second quarter 2011.
Gross Margin
The year-on-year decline in our Mobile Phones gross margin in the third quarter
2011 was due primarily to our tactical pricing actions due to the competitive
environment, partially offset by a product mix shift towards higher margin
mobile phones.
The sequential decline in our Mobile Phones gross margin in the third quarter
2011 primarily reflected the impact of a full quarter of our tactical pricing
actions across our portfolio initiated in the second quarter 2011 which
resulted in greater price erosion than cost erosion, partially offset by a
product mix shift towards higher margin mobile phones.
NAVTEQ
On June 22, 2011, we announced plans to create a new Location & Commerce
business which combines NAVTEQ and Nokia's social location services operations
from Devices & Services. The Location & Commerce business is an operating and
reportable segment beginning October 1, 2011. In addition to a broad portfolio
of products and services for the wider internet ecosystem, the Location &
Commerce business is creating integrated social location offerings in support
of Nokia's strategic goal in smartphones, including the Nokia experience with
Windows Phone, as well as support for bringing the internet to the next
billion.
The following chart sets out a summary of the results for NAVTEQ for the
periods indicated, as well as the year-on-year and sequential growth rates.
NAVTEQ RESULTS SUMMARY
--------------------------------------------------------------------------------
--------------
Q3/2011 Q3/2010 YoY Change
Q2/2011 QoQ Change
--------------------------------------------------------------------------------
-------------
Net sales (EUR millions) 241 252 -4%
245 -2%
--------------------------------------------------------------------------------
-------------
Non-IFRS gross margin (%) 86.3% 84.5%
82.9%
--------------------------------------------------------------------------------
-------------
Non-IFRS operating expenses (EUR millions) 139 141 -1%
151 -8%
--------------------------------------------------------------------------------
-------------
Non-IFRS operating margin (%) 28.2% 29.4%
21.5%
--------------------------------------------------------------------------------
-------------
Net Sales
The year-on-year decrease in NAVTEQ net sales in the third quarter 2011 was
primarily driven by lower sales of map licenses to mobile device customers,
partially offset by higher sales of map licenses to vehicle customers due to
higher consumer uptake of vehicle navigation systems. Sequentially, the
decrease in NAVTEQ net sales in the third quarter 2011 was due to lower sales
of map licenses to mobile device customers and typical seasonality in the
vehicle segment, partially offset by higher sales to portable navigation device
(PND) customers. At constant currency, NAVTEQ net sales would have increased
1% year-on-year and decreased 2% sequentially.
Gross Margin
On both a year-on-year and sequential basis, the increase in NAVTEQ non-IFRS
gross margin in the third quarter 2011 was primarily due to an increased
proportion of higher gross margin sales. In addition, the sequential comparison
was aided by the annual reset of a royalty contract with a data supplier, which
had a negative impact on the second quarter 2011 non-IFRS gross margin.
Operating Expenses
NAVTEQ non-IFRS research and development expenses decreased 3% year-on-year
driven by changes in foreign currency exchange rates. NAVTEQ non-IFRS research
and development expenses decreased 6% sequentially driven by the timing of
projects related to development of location content.
NAVTEQ non-IFRS sales and marketing expenses increased 11% year-on-year driven
by headcount growth, primarily related to expansion in new markets. NAVTEQ
non-IFRS sales and marketing expenses decreased 9% sequentially driven by
seasonal decreases in marketing expenses related to map update marketing
campaigns.
NAVTEQ non-IFRS administrative and general expenses decreased 12% year-on-year
driven by lower costs related to recruiting and hiring of new employees. NAVTEQ
non-IFRS administrative and general expenses decreased 17% sequentially driven
by lower severance costs and lower costs related to recruiting and hiring.
Nokia Siemens Networks
Nokia Siemens Networks completed the acquisition of Motorola Solutions'
networks assets on April 30, 2011. Accordingly, the results of Nokia Siemens
Networks for the third quarter 2011 are not directly comparable to its results
for prior periods.
The following chart sets out a summary of the results for Nokia Siemens
Networks for the periods indicated, as well as the year-on-year and sequential
growth rates.
NOKIA SIEMENS NETWORKS RESULTS SUMMARY
--------------------------------------------------------------------------------
--------------
Q3/2011 Q3/2010 YoY Change
Q2/2011 QoQ Change
--------------------------------------------------------------------------------
-------------
Net sales (EUR millions) 3 413 2 943 16% 3
642 -6%
--------------------------------------------------------------------------------
-------------
Non-IFRS gross margin (%) 26.8% 24.9%
26.6%
--------------------------------------------------------------------------------
-------------
Non-IFRS operating expenses (EUR millions) 936 832 13%
931 1%
--------------------------------------------------------------------------------
-------------
Non-IFRS operating margin (%) 0.2% -3.9%
1.1%
--------------------------------------------------------------------------------
-------------
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.
NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA
------------------------------------------------------------------------
EUR millions Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Europe 1 074 1 070 0% 1 122 -4%
Middle East & Africa 301 331 -9% 389 -23%
Greater China 302 311 -3% 403 -25%
Asia-Pacific 978 711 38% 973 1%
North America 304 175 74% 311 -2%
Latin America 454 345 32% 444 2%
-----------------------------------------------------------------------
Total 3 413 2 943 16% 3 642 -6%
-----------------------------------------------------------------------
The year-on-year increase in Nokia Siemens Networks' net sales in the third
quarter 2011 was driven primarily by growth from the acquired Motorola
Solutions networks assets. Excluding the acquired Motorola Solutions networks
assets, net sales would have increased 3% year-on-year, primarily driven by
growth in the Global Services business unit, which represented approximately
50% of Nokia Siemens Networks' net sales in the third quarter 2011.
The sequential decline in Nokia Siemens Networks' net sales in the third
quarter 2011 was driven primarily by typical industry seasonality as well as
some impact from the current macroeconomic uncertainty, offset to a certain
degree by the contribution from the acquired Motorola Solutions networks
assets. Excluding the acquired Motorola Solutions networks assets, Nokia
Siemens Networks' net sales would have decreased 12% sequentially.
At constant currency, Nokia Siemens Networks' net sales would have increased
18% year-on-year and decreased 7% sequentially.
Gross Margin
The higher year-on-year Nokia Siemens Networks non-IFRS gross margin in the
third quarter 2011 was primarily due to improved overall cost control,
operational execution and the increase in net sales primarily driven by the
contribution from the acquired Motorola Solutions networks assets.
The slightly higher sequential Nokia Siemens Networks non-IFRS gross margin in
the third quarter 2011 was due to a greater focus on operational discipline,
which was partially offset by an unfavorable sales mix due to an increased
proportion of Global Services business unit net sales.
Operating Expenses
Nokia Siemens Networks' non-IFRS research and development expenses increased
18% year-on-year and 4% sequentially, primarily due to the addition of R&D
operations relating to the acquired Motorola Solutions networks assets as well
as investments in strategic initiatives.
Nokia Siemens Networks' non-IFRS sales and marketing expenses were virtually
flat year-on-year. On a sequential basis, Nokia Siemens Networks non-IFRS sales
and marketing expenses decreased 6%, reflecting industry seasonality and cost
control initiatives.
Nokia Siemens Networks' non-IFRS administrative and general expenses increased
16% year-on-year, reflecting the higher net sales and the addition of Motorola
Solutions' network assets. Sequentially, Nokia Siemens Networks non-IFRS
administrative and general expenses were virtually flat.
Nokia Siemens Networks' non-IFRS other income increased year-on-year and
sequentially due to improvements in customer collections.
Operating Margin
The higher year-on-year Nokia Siemens Networks non-IFRS operating margin in the
third quarter 2011 primarily reflected the higher net sales and gross margin,
partially offset by increased operating expenses.
The sequential decrease in Nokia Siemens Networks' non-IFRS operating margin in
the third quarter 2011 reflected the lower net sales.
THIRD QUARTER 2011 OPERATING HIGHLIGHTS
Nokia
- Nokia completed the transaction to outsource its Symbian software development
and support activities to Accenture on September 30, 2011. As a result of the
transaction, approximately 2 300 employees transferred to Accenture.
- Nokia announced the appointment of Henry Tirri as Executive Vice President,
Chief Technology Officer and a member of the Nokia Leadership Team, effective
September 22, 2011. He reports directly to President and CEO Stephen Elop. As
Chief Technology Officer, Tirri has assumed responsibility for the CTO
organization, charged with setting Nokia's technology agenda both now and in
the future, and driving core innovation to enable business development
opportunities. Previously, Tirri was Head of Nokia Research Center (NRC),
Nokia's forward-looking research facility. Richard Green, who was appointed
Chief Technology Officer in May 2010 and was a member of the Nokia Leadership
Team since February 2011, elected to depart Nokia effective on September 22,
2011.
- Executive Vice President and a member of the Nokia Leadership Team, Tero
Ojanperä, left Nokia and resigned from the Nokia Leadership Team on September
30, 2011. Ojanperä was with Nokia for 21 years and a member of the Nokia
Leadership Team since 2005. He has taken on a new role as Managing Partner of
Vision+, a new independently-run investment fund focused on financing
innovative products, and of which Nokia is an anchor investor.
- Nokia and Siemens announced the appointment of Jesper Ovesen as Executive
Chairman of the Board of Nokia Siemens Networks, effective September 29, 2011.
As Executive Chairman, Ovesen assumes a full-time role with a special emphasis
on overseeing the strategic direction of Nokia Siemens Networks as it seeks to
strengthen its position as a leader in the industry and become a more
independent entity.
- Nokia and Siemens also announced that they each provided capital of EUR 500
million to Nokia Siemens Networks in the third quarter 2011 to further
strengthen the company's financial position and set the stage for strategic
flexibility, productivity and innovation in areas such as Mobile Broadband and
related services.
- Nokia was again selected as a component of the Dow Jones Sustainability World
Index (DJSI) and Dow Jones Sustainability Europe Index in the DJSI 2011 Review.
Devices & Services
- Nokia made available for download Symbian Anna, a major software update which
enhances the user experience of the first generation of Symbian^3 devices -
Nokia N8, Nokia C7, Nokia C6-01 and Nokia E7 - bringing owners of these devices
a new user interface, virtual QWERTY keypad in portrait mode, split-screen
messaging, enhanced Nokia Maps, better web browsing and stronger security.
- Nokia launched and started shipments of the Nokia 500, an affordable
smartphone with a 1GHz processor and powered by Symbian Anna.
- Nokia launched three new smartphones powered by Symbian Belle, a major
software update following on from Anna that brings further enhancements to the
user experience. The Nokia 700, Nokia 701 and Nokia 600 extend the range of
available designs, features and functionality in the Nokia Symbian smartphone
range. They offer single-tap NFC technology sharing and pairing, the most
personal user interface on a Nokia device to date and a more powerful mobile
web browsing experience. Shipments of the Nokia 700 and Nokia 701 started
before the end of the third quarter. Nokia plans to make Belle available also
for users of the Nokia N8, Nokia C7, Nokia C6-01, Nokia E6, Nokia E7, Nokia X7
and Nokia Oro.
- Nokia announced forthcoming free updates to its Symbian Belle operating
system called Microsoft® Apps, a suite of Microsoft productivity applications.
Requiring no additional infrastructure, these applications help add immediate
business advantage to the first Symbian Belle devices as well as delivering
additional value to existing Nokia business customers who upgrade to Symbian
Belle.
- Nokia started shipments to operator and distributor customers of the Nokia
N9, a pure touch smartphone which introduces an innovative new design where the
home key - typically located at the bottom of the device - is replaced by a
simple gesture: a swipe.
- Nokia announced Nokia Car Mode, a standalone application optimized for the
in-car use of Nokia smartphones. Nokia Car Mode features an optimized user
interface simplifying the access and use of Nokia Drive (voice-guided car
navigation with Nokia Maps), traffic updates, music and voice calls while
driving. Nokia Car Mode, built with Qt, will be made available for Nokia
smartphones based on Symbian Belle as well as the Nokia N9.
- Nokia started shipments of the Nokia C2-03, a Series 40-based device with
Nokia's unique dual SIM capabilities. The dual SIM functionality enables users
to connect to two different networks to receive calls and messages. The Nokia
C2-03 enables users to personalize up to five SIM cards, while it also features
our Easy Swap technology which makes switching SIM cards simple and quick. The
device also features the new Nokia Browser, which is designed to provide a more
personal and affordable internet experience. The Nokia Browser, which is
available in 87 languages, compresses data and can thus reduce the cost of
surfing the web. Additionally, the Nokia C2-03 feature Nokia Maps for Series
40, which provides an advanced, cost-efficient maps experience. The new Nokia
Maps for Series 40 is similar to that available on our smartphones in that
people can view maps and plan routes when the phone is in offline mode.
- Nokia announced the launch of the Nokia 101 and Nokia 100, the most
affordable phones in its portfolio, supporting its aim to connect the next
billion consumers with mobile devices that offer modern, attractive designs, a
range of practical and fun features, and services that extend the value of the
phone with access to information and entertainment. The Nokia 101 is also
Nokia's fifth dual SIM device to date.
NAVTEQ
- NAVTEQ expanded coverage in Latin America, launching a NAVTEQ map of Uruguay.
- NAVTEQ announced the launch of RDS real-time traffic services in Russia via
AutoRadio.
- NAVTEQ announced its selection by Daimler AG to supply map data and content
for Mercedes E and CLS class models in Europe.
- NAVTEQ extended its NAVTEQ Natural Guidance product to Russia, bringing
European coverage to over 120 cities.
- NAVTEQ announced that Appello has signed on as a publisher for the
LocationPoint Advertising (LPA) network.
Nokia Siemens Networks
- Nokia Siemens Networks announced a number of mobile broadband deals. These
included: with STC in Saudi Arabia, its first commercial TD-LTE (4G) network; a
complete core and radio LTE network for Latvijas Mobilais Telefons in Latvia;
LTE and 3G modernization for TeliaSonera Finland; a major, two city, trial of
TD-LTE with China Mobile in Hangzhou and Xiamen; named as a key supplier for
the 4G (LTE) service launch of Bell in Canada; upgrading T-Mobile USA's 4G
(HSPA+) network to 42Mbps; upgrading the WIND Telecommunicazioni network in
Italy to 42Mbps HSPA+ and preparation for LTE; deploying WiMAX with VeeTIME to
offer broadband aboard the Taiwan high speed rail service; and replacing and
significantly expanding the GO Malta network with its GSM, 3G and all-IP mobile
backhaul technology.
- To further support its focus on mobile broadband, Nokia Siemens Networks also
outlined its vision for how broadband must be delivered in the future via
Liquid Net; unveiled three new TD-LTE devices to supply communications service
providers and enable the market for TD-LTE; pushed the peak data rates of HSPA+
up to 336Mbps at a demo in Beijing; agreed to establish a mobile broadband
focused SmartLab with the Skolkovo Foundation in Russia; and set-up a joint
venture to build 4G LTE equipment with Micran in Tomsk, Russia.
- In a significant optical network deal, Nokia Siemens Networks announced it is
deploying a 5000 kilometer, 40 Gigabits per second, per channel, dense
wavelength division multiplexing (DWDM) optical network for China Unicom.
- In services, Nokia Siemens Networks opened a new services center in Russia,
the company's fifth worldwide; signed a deal to expand and deploy 2G and 3G
networks across seven African countries for Bharti Airtel, in addition to
supplying the network equipment; delivered spectrum refarming to Thailand's
BFKT to optimize its use of spectrum; and announced a new service for upgrading
radio networks called Network Cloning that can reduce upgrade operating
expenses by more than 50% and takes only days instead of months to implement.
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
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 expected plans and benefits of our strategic partnership with
Microsoft to combine complementary assets and expertise to form a global mobile
ecosystem and to adopt Windows Phone as our primary smartphone platform; B) the
timing and expected benefits of our new strategy, including expected
operational and financial benefits and targets as well as changes in leadership
and operational structure; C) the timing of the deliveries of our products and
services; D) our ability to innovate, develop, execute and commercialize new
technologies, products and services; E) expectations regarding market
developments and structural changes; F) expectations and targets regarding our
industry volumes, market share, prices, net sales and margins of products and
services; G) expectations and targets regarding our operational priorities and
results of operations; H) expectations and targets regarding collaboration and
partnering arrangements; I) the outcome of pending and threatened litigation;
J) 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 K) 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) our ability to succeed in creating a
competitive smartphone platform for high-quality differentiated winning
smartphones or in creating new sources of revenue through our partnership with
Microsoft; 2) the expected timing of the planned transition to Windows Phone as
our primary smartphone platform and the introduction of mobile products based
on that platform; 3) our ability to maintain the viability of our current
Symbian smartphone platform during the transition to Windows Phone as our
primary smartphone platform; 4) our ability to realize a return on our
investment in MeeGo and next generation devices, platforms and user
experiences; 5) our ability to build a competitive and profitable global
ecosystem of sufficient scale, attractiveness and value to all participants and
to bring winning smartphones to the market in a timely manner; 6) our ability
to produce mobile phones in a timely and cost efficient manner with
differentiated hardware, localized services and applications; 7) our ability to
increase our speed of innovation, product development and execution to bring
new competitive smartphones and mobile phones to the market in a timely manner;
8) our ability to retain, motivate, develop and recruit appropriately skilled
employees; 9) our ability to implement our strategies, particularly our new
mobile product strategy; 10) 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; 11)
our ability to maintain and leverage our traditional strengths in the mobile
product market if we are unable to retain the loyalty of our mobile operator
and distributor customers and consumers as a result of the implementation of
our new strategy or other factors; 12) our success in collaboration and
partnering arrangements with third parties, including Microsoft; 13) the
success, financial condition and performance of our suppliers, collaboration
partners and customers; 14) our ability to source sufficient quantities of
fully functional quality components, subassemblies and software on a timely
basis without interruption and on favorable terms, including the disruption of
production and/or deliveries from any of our suppliers as a result of adverse
conditions in the geographic areas where they are located; 15) our ability to
manage efficiently our manufacturing, service creation, delivery and logistics
without interruption; 16) our ability to ensure the timely delivery of
sufficient volumes of products that meet our and our customers' and consumers'
requirements and manage our inventory and timely adapt our supply to meet
changing demands for our products; 17) any actual or even alleged defects or
other quality, safety and security issues in our products; 18) any actual or
alleged loss, improper disclosure or leakage of any personal or consumer data
collected or made available to us or stored in or through our products; 19) our
ability to successfully manage costs, including our ability to achieve targeted
costs reductions and to effectively and timely execute related restructuring
measures, including personnel reductions; 20) our ability to effectively and
smoothly implement the new operational structure for our businesses; 21) the
development of the mobile and fixed communications industry and general
economic conditions globally and regionally; 22) 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; 23) our ability to protect the 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; 24) 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; 25) 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; 26) any disruption to information
technology systems and networks that our operations rely on; 27) unfavorable
outcome of litigations; 28) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile products and
lawsuits related to them, regardless of merit; 29) our ability to achieve
targeted costs reductions and increase profitability in Nokia Siemens Networks
and to effectively and timely execute related restructuring measures; 30) Nokia
Siemens Networks' ability to maintain or improve its market position or respond
successfully to changes in the competitive environment; 31) Nokia Siemens
Networks' liquidity and its ability to meet its working capital requirements;
32) whether Nokia Siemens Networks is able to successfully integrate the
acquired assets of Motorola Solutions' networks business, retain existing
customers of the acquired business, cross-sell Nokia Siemens Networks' products
and services to customers of the acquired business and otherwise realize the
expected synergies and benefits of the acquisition; 33) Nokia Siemens Networks'
ability to timely introduce new products, services, upgrades and technologies;
34) Nokia Siemens Networks' success in the telecommunications infrastructure
services market and Nokia Siemens Networks' ability to effectively and
profitably adapt its business and operations in a timely manner to the
increasingly diverse service needs of its customers; 35) developments under
large, multi-year contracts or in relation to major customers in the networks
infrastructure and related services business; 36) the management of our
customer financing exposure, particularly in the networks infrastructure and
related services business; 37) whether ongoing or any additional governmental
investigations into alleged violations of law by some former employees of
Siemens AG may involve and affect the carrier-related assets and employees
transferred by Siemens AG to Nokia Siemens Networks; 38) 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 12-39 of Nokia's annual report Form 20-F for the year ended
December 31, 2010 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 20, 2011
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 and annual 2011 results on January
26, 2012.
- Nokia plans to publish its other quarterly results in 2012 on the following
dates: Q1 on April 19, Q2 on July 19 and Q3 on October 18, 2012.
- Nokia plans to publish its annual report, Nokia in 2011, in week 13 of 2012.
- Nokia's Annual General Meeting is scheduled to be held on May 3, 2012.
www.nokia.com
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