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Nokia Oyj Investor Presentation 2012

Jan 25, 2012

3231_rns_2012-01-25_489555cc-54fb-4813-ba02-1c28d33233b2.pdf

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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
Device
s 1-
3/201
0
Mobile
Phone
s
1-3/2
01
0
Devices
&
Service
s
other
1-
3/2010
--------------------------------------------------------------------------------
Device
s
&
Servi
ce
s 1-
3/2010
Locati
on
&
Comme
r
ce 1-
3/2010
Nokia
Siemen
s
Networ
ks
1-3/20
10
Corpor
ate
Commo
n
1-3/2
010
Elimi
natin
ns 1-
3/2010
Nokia
Group
1-3/20
10
Net
sales
3,363 3,194 --------------------------------------------------------------------------------
107
6,664 193 2,718 - -53 9,522
Cost of
sales
-2,243 -2,233 -55
--------------------------------------------------------------------------------
-4,531 -30 -1,936 - 53 -6,444
Gross 1,120 961 --------------------------------------------------------------------------------
52
2,133 163 782 - - 3,078
profit
% of
net
33.3 30.1 48.6 32.0 84.5 28.8 32.3
sales
Operati
ng
expense
-846 -341 -107 -1,294 -306 -1,015 -12 - -2,627
s
Other
income
and
expens
es
28 - 9 37 1 7 -8 - 37
Contrib 302 620 ------------------------------------------------------------------------
-46
ution
% of
net
sales
9.0 19.4 -43.0
--------------------------------------------------------------------------------
--------
Operati
ng
profit
876 -142 -----------------------------------------------
-226
-20 - 488
% of
net
sales
---------------------------------------------------------
13.1 -73.6 -------------------------
-8.3
5.1

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
4-
6/2010
--------------------------------------------------------------------------------
Servi
ces
4-6/20
10
Comme
rce 4-
6/2010
Networ
ks
4-6/20
10
4-
6/2010
6/2010 10
Net 3,503 3,190 --------------------------------------------------------------------------------
105
6,798 208 3,039 - -42 10,003
sales
Cost of
sales
-2,389 -2,304 -60
--------------------------------------------------------------------------------
-4,753 -51 -2,170 - 42 -6,932
Gross
profit
1,114 886 --------------------------------------------------------------------------------
45
2,045 157 869 - - 3,071
% of
net
31.8 27.8 42.9 30.1 75.5 28.6 30.7
sales
Operati
ng
expens
es
-862 -374 -115 -1,351 -360 -1,034 -29 - -2,774
Other
income
and
expens
es
2 1 16
------------------------------------------------------------------------
19 -3 -14 -4 - -2
Contrib
ution
254 513 ------------------------------------------------------------------------
-54
% of
net
sales
7.3 16.1 -51.4
--------------------------------------------------------------------------------
Operati
ng
-------------------------------------------------------------------------------- 713 -206 -179 -33 - 295
profit
% of
net
sales
-------------------------------------------------------------------------------- 10.5 -99.0 -5.9 2.9

THIRD QUARTER 2010, REPORTED, EUR million (unaudited)

--------------------------------------------------------------------------------
- Smart
Device
s 7-
9/2010
Mobile
Phones
7-
9/2010
Device
s &
Servic
es
other
7-
9/2010
Device
s
&
Servi
ces
7-
9/2010
Locati
on
&
Comme
rc
e 7-
9/2010
Nokia
Siemen
s
Networ
ks
7-9/20
10
Corpor
ate
Common
7-
9/2010
Elimin
ations
7-
9/2010
Nokia
Group
7-
9/2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net
sales
3,612 3,364 197 7,173 203 2,943 - -49 10,270
Cost of
sales
--------------------------------------------------------------------------------
-2,522 -2,506 -68 -5,096 -42 -2,241 1 49 -7,329
--------------------------------------------------------------------------------
Gross
profit
1,090 858 129 2,077 161 702 1 - 2,941
% 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
% of net
sales
8.6 14.2 41.1
Operati
ng
869 -167 -282 -17 - 403
% of net
sales
12.1 -82.3 -9.6 3.9
ution
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
profit
--------------------------------------------------------------------------------

FOURTH QUARTER 2010, REPORTED, EUR million (unaudited)

--------------------------------------------------------------------------------
- Smart
Device
s
10-
12/201
0
Mobile
Phones
10-12/
2010
Device
s &
Servic
es
other
10-
12/201
0
Devices
&
Service
s
10-12/
2010
Locatio
n &
Commerc
e
10-12/
2010
--------------------------------------------------------------------------------
Nokia
Siemen
s
Networ
ks
10-12/
2010
Corpor
ate
Common
10-
12/201
0
Elimin
ations
10-
12/201
0
Nokia
Group
10-
12/201
0
Net 4,396 3,948 155 8,499 --------------------------------------------------------------------------------
265
3,961 - -74 12,651
sales
Cost
of
sales
-3,133 -2,823 -76 -6,032 -46
--------------------------------------------------------------------------------
-2,919 -1 74 -8,924
Gross 1,263 1,125 79 2,467 --------------------------------------------------------------------------------
219
1,042 -1 - 3,727
profit
% of
net
sales
28.7 28.5 51.0 29.0 82.6 26.3 29.5
Oper
ating
expe
nses
Other
income
-899 -410 -125 -1,434 -365 -1,022 -46 - -2,867
and
expens
es
146 1 -98 49 -2
-------------------------------------------------------------------------
-19 4 -8 24
Contr
ibutio
n
510 716 -144 -------------------------------------------------------------------------
% of
net
sales
11.6 18.1 -92.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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)
--------------------------------------------------------------------------------
--
12/2010
Smart
Devices
1-
12/2010
Mobile
Phones
1-
12/201
0
Device
s
&
Servic
es
other
1-
12/201
0
Devices
&
Servic
es
1-
12/2010
--------------------------------------------------------------------------------
Locati
on
&
Commer
ce 1-
12/201
0
Nokia
Siemen
s
Networ
ks
1-
12/201
0
Corpor
ate
Common
1-
12/201
0
Elimin
atio
ns
1-12/
2
010
Nokia
Group
1-
- --------------------------------------------------------------------------------
-
Net
42,446
sales
14,874 13,696 564 29,134 869 12,661 - -218
Cost
-29,629
of
sales
-10,287 -9,866 -259 -20,412 -169 -9,266 - 218
- --------------------------------------------------------------------------------
-
Gross
12,817
4,587 3,830 305 --------------------------------------------------------------------------------
8,722
700 3,395 - -
profit
% of
30.2
net
30.8 28.0 54.1 29.9 80.6 26.8
sales
Operat
-10,855
ing
expens
-3,392 -1,508 -452 -5,352 -1,360 -4,037 -106 -
es
Other
108
income
and
expen
ses
181 5 -16 170 -3 -44 -7 -8
--------------------------------------------------------------------------
Contri
b
1,376 2,327 -163 --------------------------------------------------------------------------
ution
% of
net
9.3 17.0 -28.9
sales
--------------------------------------------------------------------------------
-
--------------------------------------------------------------------------------
-
Operat
2,070
ing
3,540 -663 -686 -113 -8
profit
% of
4.9
12.2 -76.3 -5.4
net
sales
--------------------------------------------------------------------------------
-
FIRST QUARTER 2011, REPORTED, EUR million
(unaudited)
--------------------------------------------------------------------------------
- Smart
Device
s 1-
3/2011
Mobile
Phones
1-
3/2011
Device
s &
Servic
es
other
1-
3/2011
Device
s
&
Servi
ces
1-3/20
11
Locatio
n
&
Commerc
e
1-3/20
11
--------------------------------------------------------------------------------
Nokia
Siemen
s
Networ
ks
1-3/20
11
Corpor
ate
Common
1-
3/2011
Elim
inatio
ns
1-3/2
011
Nokia
Group
1-
3/2011
Net
sales
Cost of
sales
3,528
-2,508
3,407
-2,456
152
-84
7,087
-5,048
--------------------------------------------------------------------------------
232
-44
3,171
-2,324
-
-
-91
91
10,399
-7,325
Gross
profit
1,020 951 68 2,039 --------------------------------------------------------------------------------
--------------------------------------------------------------------------------
188
847 - - 3,074
% of
net
sales
Operati
28.9
-834
27.9
-387
44.7
-104
28.8
-1,325
81.0
-321
26.7
-990
-22 - 29.6
-2,658
ng
expense
s
Other
income
and
expens
e
s
- -2 17 15 1
------------------------------------------------------------------------
1 6 - 23
Contrib
ution
186 562 -19 ------------------------------------------------------------------------
% of
net
sales
5.3 16.5 -12.5 --------------------------------------------------------------------------------
Operati
ng
profit
729 --------------------------------------------------------------------------------
-132
-142 -16 - 439
% of
net
sales
10.3 -56.9
--------------------------------------------------------------------------------
-4.5 4.2

SECOND QUARTER 2011, REPORTED, EUR million (unaudited) --------------------------------------------------------------------------------

Smart Mobile
-------------------------------------------------------------------------------- Device
s 4-
6/2011
Phones
4-6/20
11
Device
s &
Servic
es
other
4-
6/2011
Device
s
&
Servi
ces
4-
6/2011
Locati
on
&
Comme
rc
e
4-6/2
011
Nokia
Siemen
s
Networ
ks
4-6/20
11
Corpor
at
e
Commo
n
4-6/20
11
Elimin
ations
4-
6/2011
Nokia
Group
4-
6/2011
--------------------------------------------------------------------------------
Net
2,351 2,568 548 5,467 271 3,642 - -105 9,275
sales
Cost of
sales
--------------------------------------------------------------------------------
-1,811 -1,933 -56 -3,800 -50 -2,698 - 105 -6,443
--------------------------------------------------------------------------------
Gross
profit
540 635 492 1,667 221 944 - - 2,832
% of net 23.0 24.7 89.8 30.5 81.5 25.9 30.5
sales
Operatin
g
-752 -420 -95 -1,267 -325 -1,056 -51 - -2,699
expenses
Other
income
and
expense
s
-4 -1
-----------------------------------------------------------------------
-611 -616 - 1 -5 - -620
Contribu
tion
-216 -----------------------------------------------------------------------
214
-214
% of net
sales
--------------------------------------------------------------------------------
-9.2 8.3 -39.1
--------------------------------------------------------------------------------
Operatin
g
-216 -104 -111 -56 - -487
profit
% of net
sales
--------------------------------------------------------------------------------
-4.0 -38.4 -3.0 -5.3

THIRD QUARTER 2011, REPORTED, EUR million (unaudited) --------------------------------------------------------------------------------

-
--------------------------------------------------------------------------------
Smart
Device
s
7-9/2
011
Mobile
Phones
7-
9/2011
Device
s &
Servic
es
other
7-
9/2011
Device
s
&
Servi
ces
7-
9/2011
Locati
on
&
Comme
rc
e 7-
9/2011
Nokia
Siemen
s
Networ
ks
7-9/20
11
Corpor
ate
Common
7-
9/2011
Elimin
ations
7-
9/2011
Nokia
Group
7-
9/2011
--------------------------------------------------------------------------------
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
sales
20.7 23.6 84.8 25.7 81.6 26.2 27.9
Operatin
g
expense
s
-656 -404 -67 -1,127 -314 -1,035 -37 -2,513
Other
income
and
expense
s
11 10 -110 -89 -1 26 -3 -67
-----------------------------------------------------------------------
Contrib
ution
-190 295 63 -----------------------------------------------------------------------
% of net
sales
-8.7 10.1 22.3 --------------------------------------------------------------------------------
Operatin
g profit
168 -85 -114 -40 --------------------------------------------------------------------------------
-
-71
% of net
sales
3.1 -30.1 -3.3 -0.8
--------------------------------------------------------------------------------

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, 
Financial/Corporate News and Press Releases. 
Media archive at www.dgap-medientreff.de and www.dgap.de 
--------------------------------------------------------------------------- 
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 
End of Announcement DGAP News-Service 
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