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Nokia Oyj Earnings Release 2010

Jan 25, 2012

3231_rns_2012-01-25_8f84913e-03b5-4074-94a3-e0dbae33acf6.html

Earnings Release

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UK Regulatory | 25 January 2012 14:06

Recasting of Nokia quarterly and full year 2010 and first, second and third quarter 2011 results

Nokia / Miscellaneous

25.01.2012 14:06

Dissemination of a UK Regulatory Announcement, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.


Nokia Corporation

Stock exchange release

January 25, 2012 at 15:00 (CET +1)

Espoo, Finland - Nokia today provided historical results for its Devices &
Services and Location & Commerce businesses, recasted for comparability
purposes according to the new reporting format that became effective on October
1, 2011, as a result of the formation of the Location & Commerce business which
combines NAVTEQ and Nokia's social location services operations from Devices &
Services. The recast also reflects certain reallocations regroupings within
Devices & Services to conform with the current reporting structure.

The historical results set forth below for each quarter and the full year of
2010 as well as the first, second and third quarter of 2011 are reported
results recasted (on an unaudited basis) for comparability purposes according
to Nokia's four reportable segments effective from October 1, 2011:

  • Smart Devices (within Devices & Services)

  • Mobile Phones (within Devices & Services)

  • Location & Commerce

  • Nokia Siemens Networks

The key financial performance measures provided for these segments include net
sales, gross margin as well as an additional measure of profit. For Smart
Devices and Mobile Phones, we present these segments' profit contribution,
which consists of revenues less these segments' own costs as well as their
directly assignable and allocated costs. For Location & Commerce and Nokia
Siemens Networks, we present operating profit.

The most significant amounts transferred relate to operating expenses which
were previously in Devices & Services Other - specifically, those relating to
social location services operations - to Location & Commerce. In order to
consistently reflect where the economic value of location services is created,
the recast also impacted Cost of Sales by reportable segment. Amounts
previously in Devices & Services Other Cost of Sales and Smart Devices Cost of
Sales were transferred to Location & Commerce Cost of Sales. As a consequence
of the higher value add performed in Location & Commerce, the recasted numbers
also reflect a higher internal transfer price, which impacted Location &
Commerce Net Sales positively and Smart Devices Cost of Sales negatively. The
internal transfer price represents revenue Net Sales to Location & Commerce and
Cost of Sales to Smart Devices. Location & Commerce will be responsible for
developing the services going forward whereas the services will continue to be
delivered to customers and consumers by Devices & Services in combination with
our devices. In order to consistently reflect deferral of services revenue over
the service period, the recast also impacted Location & Commerce revenue and
corporate Eliminations.

It should be noted that the information provided herein is historical and
therefore does not indicate future performance.

FIRST QUARTER 2010, REPORTED, EUR million
(unaudited)


  •  Smart   Mobile  Devices  Device  Locati  Nokia   Corpor  Elimi   Nokia 
     Device  Phone    &       s       on      Siemen  ate     natin   Group 
     s 1-    s       Service  &       &       s        Commo  ns 1-   1-3/20
     3/201    1-3/2  s         Servi   Comme  Networ  n       3/2010  10    
     0       01      other    ce      r       ks       1-3/2                
             0        1-      s 1-    ce 1-   1-3/20  010                   
                     3/2010   3/2010  3/2010  10
    


Net 3,363 3,194 107 6,664 193 2,718 - -53 9,522
sales
Cost of -2,243 -2,233 -55 -4,531 -30 -1,936 - 53 -6,444
sales



Gross 1,120 961 52 2,133 163 782 - - 3,078
profit
% of 33.3 30.1 48.6 32.0 84.5 28.8 32.3
net
sales
Operati -846 -341 -107 -1,294 -306 -1,015 -12 - -2,627
ng
expense
s
Other 28 - 9 37 1 7 -8 - 37
income
and
expens
es
------------------------------------------------------------------------
Contrib 302 620 -46
ution
% of 9.0 19.4 -43.0
net
sales


-------- -----------------------------------------------
Operati 876 -142 -226 -20 - 488
ng
profit
-------------------------
% of 13.1 -73.6 -8.3 5.1
net
sales


SECOND QUARTER 2010, REPORTED, EUR million
(unaudited)


  •  Smart   Mobile  Devices  Device  Locati  Nokia   Corpor  Elimin  Nokia 
     Device  Phones   &       s       on      Siemen  ate     ations  Group 
     s 4-     4-     Service  &       &       s       Common   4-     4-6/20
     6/2010  6/2010  s other   Servi   Comme  Networ   4-     6/2010  10    
                      4-      ces     rce 4-  ks      6/2010                
                     6/2010   4-6/20  6/2010  4-6/20                        
                              10              10
    


Net 3,503 3,190 105 6,798 208 3,039 - -42 10,003
sales
Cost of -2,389 -2,304 -60 -4,753 -51 -2,170 - 42 -6,932
sales



Gross 1,114 886 45 2,045 157 869 - - 3,071
profit
% of 31.8 27.8 42.9 30.1 75.5 28.6 30.7
net
sales
Operati -862 -374 -115 -1,351 -360 -1,034 -29 - -2,774
ng
expens
es
Other 2 1 16 19 -3 -14 -4 - -2
income
and
expens
es
------------------------------------------------------------------------
------------------------------------------------------------------------
Contrib 254 513 -54
ution
% of 7.3 16.1 -51.4
net
sales



Operati 713 -206 -179 -33 - 295
ng
profit
% of 10.5 -99.0 -5.9 2.9
net
sales


THIRD QUARTER 2010, REPORTED, EUR million
(unaudited)


  •   Smart   Mobile  Device  Device  Locati  Nokia   Corpor  Elimin  Nokia 
      Device  Phones  s &     s       on      Siemen  ate     ations  Group 
      s 7-     7-     Servic  &       &       s       Common   7-     7-    
      9/2010  9/2010  es       Servi   Comme  Networ   7-     9/2010  9/2010
                      other   ces     rc      ks      9/2010                
                       7-     7-      e 7-    7-9/20                        
                      9/2010  9/2010  9/2010  10
    


Net 3,612 3,364 197 7,173 203 2,943 - -49 10,270
sales
Cost of -2,522 -2,506 -68 -5,096 -42 -2,241 1 49 -7,329
sales



Gross 1,090 858 129 2,077 161 702 1 - 2,941
profit
% of net 30.2 25.5 65.5 29.0 79.3 23.9 28.6
sales
Operatin -785 -383 -105 -1,273 -329 -966 -19 - -2,587
g
expense
s
Other 5 3 57 65 1 -18 1 - 49
income
and
expenses
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Contrib 310 478 81
ution
% of net 8.6 14.2 41.1
sales



Operati 869 -167 -282 -17 - 403
ng
profit
% of net 12.1 -82.3 -9.6 3.9
sales


FOURTH QUARTER 2010, REPORTED, EUR million
(unaudited)


  • Smart   Mobile  Device  Devices  Locatio  Nokia   Corpor  Elimin  Nokia 
    Device  Phones  s &      &       n &      Siemen  ate     ations  Group 
    s       10-12/  Servic  Service  Commerc  s       Common   10-    10-   
    10-     2010    es      s        e        Networ   10-    12/201  12/201
    12/201          other    10-12/   10-12/  ks      12/201  0       0     
    0                10-    2010     2010     10-12/  0                     
                    12/201                    2010                          
                    0
    


Net 4,396 3,948 155 8,499 265 3,961 - -74 12,651
sales
Cost -3,133 -2,823 -76 -6,032 -46 -2,919 -1 74 -8,924
of
sales



Gross 1,263 1,125 79 2,467 219 1,042 -1 - 3,727
profit
% of 28.7 28.5 51.0 29.0 82.6 26.3 29.5
net
sales
Oper -899 -410 -125 -1,434 -365 -1,022 -46 - -2,867
ating
expe
nses
Other
income
and
expens 146 1 -98 49 -2 -19 4 -8 24
es
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contr 510 716 -144
ibutio
n
% of 11.6 18.1 -92.9
net
sales



Oper 1,082 -148 1 -43 -8 884
ating
profi
t
% of 12.7 -55.8 0.0 7.0
net
sales


FULL YEAR 2010, REPORTED, EUR million
(unaudited)


--
Smart Mobile Device Devices Locati Nokia Corpor Elimin Nokia
Devices Phones s & on Siemen ate atio Group
1- 1- & Servic & s Common ns 1-
12/2010 12/201 Servic es Commer Networ 1- 1-12/
12/2010
0 es 1- ce 1- ks 12/201 2
other 12/2010 12/201 1- 0 010
1- 0 12/201
12/201 0
0


-

  • Net 14,874 13,696 564 29,134 869 12,661 - -218
    42,446
    sales
    Cost -10,287 -9,866 -259 -20,412 -169 -9,266 - 218
    -29,629
    of
    sales

-

  • Gross 4,587 3,830 305 8,722 700 3,395 - -
    12,817
    profit
    % of 30.8 28.0 54.1 29.9 80.6 26.8
    30.2
    net
    sales
    Operat -3,392 -1,508 -452 -5,352 -1,360 -4,037 -106 -
    -10,855
    ing
    expens
    es
    Other 181 5 -16 170 -3 -44 -7 -8
    108
    income
    and
    expen
    ses


Contri 1,376 2,327 -163
b
ution
% of 9.3 17.0 -28.9
net
sales


-

  • Operat 3,540 -663 -686 -113 -8
    2,070
    ing
    profit
    % of 12.2 -76.3 -5.4
    4.9
    net
    sales

FIRST QUARTER 2011, REPORTED, EUR million
(unaudited)


  •  Smart   Mobile  Device  Device  Locatio  Nokia   Corpor  Elim    Nokia 
     Device  Phones  s &     s       n        Siemen  ate     inatio  Group 
     s 1-     1-     Servic  &       &        s       Common  ns       1-   
     3/2011  3/2011  es       Servi  Commerc  Networ   1-      1-3/2  3/2011
                     other   ces     e        ks      3/2011  011           
                      1-     1-3/20   1-3/20  1-3/20                        
                     3/2011  11      11       11
    


Net 3,528 3,407 152 7,087 232 3,171 - -91 10,399
sales
Cost of -2,508 -2,456 -84 -5,048 -44 -2,324 - 91 -7,325
sales



Gross 1,020 951 68 2,039 188 847 - - 3,074
profit
% of 28.9 27.9 44.7 28.8 81.0 26.7 29.6
net
sales
Operati -834 -387 -104 -1,325 -321 -990 -22 - -2,658
ng
expense
s
Other - -2 17 15 1 1 6 - 23
income
and
expens
e
s
------------------------------------------------------------------------
------------------------------------------------------------------------
Contrib 186 562 -19
ution
% of 5.3 16.5 -12.5
net
sales



Operati 729 -132 -142 -16 - 439
ng
profit
% of 10.3 -56.9 -4.5 4.2
net
sales


SECOND QUARTER 2011, REPORTED, EUR million
(unaudited)


  •   Smart   Mobile  Device  Device  Locati  Nokia   Corpor  Elimin  Nokia 
      Device  Phones  s &     s       on      Siemen  at      ations  Group 
      s 4-    4-6/20  Servic  &       &       s       e         4-     4-   
      6/2011  11      es       Servi   Comme  Networ   Commo  6/2011  6/2011
                      other   ces     rc      ks      n                     
                       4-     4-      e       4-6/20  4-6/20                
                      6/2011  6/2011   4-6/2  11      11                    
                                      011
    


Net 2,351 2,568 548 5,467 271 3,642 - -105 9,275
sales
Cost of -1,811 -1,933 -56 -3,800 -50 -2,698 - 105 -6,443
sales



Gross 540 635 492 1,667 221 944 - - 2,832
profit
% of net 23.0 24.7 89.8 30.5 81.5 25.9 30.5
sales
Operatin -752 -420 -95 -1,267 -325 -1,056 -51 - -2,699
g
expenses
Other -4 -1 -611 -616 - 1 -5 - -620
income
and
expense
s
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Contribu -216 214 -214
tion
% of net -9.2 8.3 -39.1
sales



Operatin -216 -104 -111 -56 - -487
g
profit
% of net -4.0 -38.4 -3.0 -5.3
sales


THIRD QUARTER 2011, REPORTED, EUR million
(unaudited)


  •   Smart   Mobile  Device  Device  Locati  Nokia   Corpor  Elimin  Nokia 
      Device  Phones  s &     s       on      Siemen  ate     ations  Group 
      s       7-      Servic  &       &       s       Common   7-     7-    
       7-9/2  9/2011  es       Servi   Comme  Networ   7-     9/2011  9/2011
      011             other   ces     rc      ks      9/2011                
                       7-     7-      e 7-    7-9/20                        
                      9/2011  9/2011  9/2011  11
    


Net 2,194 2,915 283 5,392 282 3,413 - -107 8,980
sales
Cost of -1,739 -2,226 -43 -4,008 -52 -2,518 - 107 -6,471
sales



Gross 455 689 240 1,384 230 895 - - 2,509
profit
% of net 20.7 23.6 84.8 25.7 81.6 26.2 27.9
sales
Operatin -656 -404 -67 -1,127 -314 -1,035 -37 -2,513
g
expense
s
Other 11 10 -110 -89 -1 26 -3 -67
income
and
expense
s
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Contrib -190 295 63
ution
% of net -8.7 10.1 22.3
sales



Operatin 168 -85 -114 -40 - -71
g profit
% of net 3.1 -30.1 -3.3 -0.8
sales


About Nokia

Nokia is a global leader in mobile communications whose products have become an
integral part of the lives of people around the world. Every day, more than 1.3
billion people use their Nokia to capture and share experiences, access
information, find their way or simply to speak to one another. Nokia's
technological and design innovations have made its brand one of the most
recognized in the world. For more information, visit
http://www.nokia.com/about-nokia

Media Enquiries:

Nokia

Communications

Tel. +358 7180 34900

Email: [email protected]

Investor Relations Europe

Tel. +358 7180 34927

Investor Relations US

Tel. +1 914 368 0555

www.nokia.com

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News Source: NASDAQ OMX

25.01.2012 DGAP's Distribution Services include Regulatory Announcements,
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Language: English
Company: Nokia

                Finland

Phone:
Fax:
E-mail:
Internet:
ISIN: FI0009000681
Category Code: MSC
LSE Ticker: 0HAF
Sequence Number: 970
Time of Receipt: Jan 25, 2012 14:05:50

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