15th Oct 2009 11:00
Nokia / 3rd Quarter Results 15.10.2009 12:00 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Nokia Corporation Interim Report October 15, 2009 at 13:00 (CET +1) Nokia Q3 2009 net sales EUR 9.8 billion, non-IFRS EPS EUR 0.17 (reported EPSEUR-0.15) Nokia Siemens Networks non-cash asset impairments negatively impacted reported EPS by EUR 0.29 --------------------------------------------------------------------------------| | Non-IFRS third quarter 2009 results1, 2, 3 |--------------------------------------------------------------------------------|EUR million | Q3/2009 | Q3/2008 | YoY | Q2/2009 | QoQ || | | | Change | | Change|--------------------------------------------------------------------------------|Net sales | 9 810 | 12 239 | -19.8% | 9 913 | -1.0%|--------------------------------------------------------------------------------|Devices & | 6 915 | 8 605 | -19.6% | 6 586 | 5.0% ||Services | | | | | |--------------------------------------------------------------------------------|NAVTEQ | 166 | 157 | 5.7% | 148 | 12.2%|--------------------------------------------------------------------------------|Nokia Siemens | 2 760 | 3 504 | -21.2% | 3 199 | -13.7% ||Networks | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Operating profit | 741 | 1 756 | -57.8% | 775 | -4.4%|--------------------------------------------------------------------------------|Devices & | 787 | 1 602 | -50.9% | 802 | -1.9% ||Services | | | | | |--------------------------------------------------------------------------------|NAVTEQ | 43 | 29 | 48.3% | 19 | 126.3%|--------------------------------------------------------------------------------|Nokia Siemens | -53 | 177 | | 2 | ||Networks | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Operating margin | 7.6% | 14.3% | | 7.8% | |--------------------------------------------------------------------------------|Devices & | 11.4% | 18.6% | | 12.2% | ||Services | | | | | |--------------------------------------------------------------------------------|NAVTEQ | 25.9% | 18.5% | | 12.8% | |--------------------------------------------------------------------------------|Nokia Siemens | -1.9% | 5.1% | | 0.1% | ||Networks | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|EPS, EUR Diluted | 0.17 | 0.33 | -48.5% | 0.15 | 13.3%|--------------------------------------------------------------------------------|| Reported third quarter 2009 results1, 3 |--------------------------------------------------------------------------------|EUR million | Q3/2009 | Q3/2008 | YoY | Q2/2009 | QoQ || | | | Change | | Change|--------------------------------------------------------------------------------|Net sales | 9 810 | 12 237 | -19.8% | 9 912 | -1.0%|--------------------------------------------------------------------------------|Devices & | 6 915 | 8 605 | -19.6% | 6 586 | 5.0% ||Services | | | | | |--------------------------------------------------------------------------------|NAVTEQ | 166 | 156 | 6.4% | 147 | 12.9%|--------------------------------------------------------------------------------|Nokia Siemens | 2 760 | 3 503 | -21.2% | 3 199 | -13.7% ||Networks | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Operating profit | -426 | 1 469 | | 427 | |--------------------------------------------------------------------------------|Devices & | 785 | 1 602 | -51.0% | 763 | 2.9% ||Services | | | | | |--------------------------------------------------------------------------------|NAVTEQ | -68 | -80 | | -100 | |--------------------------------------------------------------------------------|Nokia Siemens | -1 107 | -1 | | -188 | ||Networks | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Operating margin | -4.3% | 12.0% | | 4.3% | |--------------------------------------------------------------------------------|Devices & | 11.4% | 18.6% | | 11.6% | ||Services | | | | | |--------------------------------------------------------------------------------|NAVTEQ | -41.0% | -51.3% | | -68.0% | |--------------------------------------------------------------------------------|Nokia Siemens | -40.1% | 0.0% | | -5.9% | ||Networks | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|EPS, EUR Diluted | -0.15 | 0.29 | | 0.10 | |--------------------------------------------------------------------------------Note 1 relating to NAVTEQ: Nokia completed the acquisition of NAVTEQ CorporationonJuly 10, 2008. Accordingly, NAVTEQ's results for the third quarter 2008 are notdirectly comparable to those for the third quarter 2009. Note 2relating to non-IFRS results: Non-IFRS results exclude special items for allperiods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory valueadjustments arising from i) the formation of Nokia Siemens Networks and ii) allbusiness acquisitions completed after June 30, 2008. More specific information about the exclusions from the non-IFRS results may be found in this press release on pages 3, 14-16 and 18. Nokia believes that these non-IFRS financial measures provide meaningful supplemental information to both management and investors regarding Nokia's performance by excluding the above-described items that may not be indicativeofNokia's business operating results. These non-IFRS financial measures shouldnotbe viewed in isolation or as substitutes to the equivalent IFRS measure(s), butshould be used in conjunction with the most directly comparable IFRS measure(s) inthe reported results. A reconciliation of the non-IFRS results to our reported results for Q3 2009 and Q3 2008 can be found in the tables on pages 11and 14-18 of this press release. A reconciliation of our Q2 2009 non-IFRS results can be found on pages 10 and 13-17 of our Q2 2009 Interim Report ofJuly16, 2009. Note 3: Nokia reported net sales were EUR 28 996 million and earnings per share(diluted) were EUR -0.02 for the period from January 1 to September 30, 2009. Further information about the results for the period from January 1 toSeptember30, 2009 can be found in this press release on pages 10, 12, 19-20 and22. THIRD QUARTER 2009 HIGHLIGHTS -Nokia net sales of EUR 9.8 billion, down 20% year on year and down 1% sequentially (down 19% and flat at constant currency). -Devices & Services net sales of EUR 6.9 billion, down 20% year on year and up 5%sequentially (down 20% and up 6% at constant currency), and non-IFRS operating margin of 11.4% (18.6% in Q3 2008 and 12.2% in Q2 2009). -Devices & Services gross margin of 30.9%, down from 34.0% in Q2 2009. -Services net sales of EUR 148 million (billings of EUR 172 million). Due to thedivestment of the security appliance business in April 2009, services net salesare not directly comparable to prior periods. -Estimated industry mobile device volumes of 288 million units, down 7% year onyearand up 7% sequentially. - Nokiamobile device volumes of 108.5 million units, down 8% year on year and up 5%sequentially. - Nokiaestimated mobile device market share of 38% in Q3 2009, at the same level asin Q3 2008 and in Q2 2009. - Nokiamobile device ASP of EUR 62, at the same level as in Q2 2009. - NAVTEQnon-IFRS net sales of EUR 166 million, up 6% year on year and up 12% sequentially, and non-IFRS operating margin of 25.9% (18.5% in Q3 2008). -Nokia Siemens Networks net sales of EUR 2.8 billion, down 21% year on year anddown14% sequentially (down 20% and down 14% at constant currency), andnon-IFRSoperating margin of -1.9% (5.1% in Q3 2008). - Nokia operating cash flow of EUR 720 million. -Total cash and other liquid assets of EUR 7.4 billion at the end of Q3 2009. -Nokia taxes were favorably impacted by country profit mix as well as prior yeartax benefits. If Nokia's estimated long-term tax rate of 26% had been applied, non-IFRS EPS would have been approximately 2 Euro cents lower. OLLI-PEKKA KALLASVUO, NOKIA CEO: 'The demand for mobile devices improved in many markets during Q3. With the average selling price of our devices holding firm quarter-on-quarter, ourhigherdevice volumes translated into increased net sales in our Devices & Servicesbusiness. Our volumes and net sales were, however, somewhat constrained by component shortages we encountered across the portfolio. I also want to highlight the good operating expense management that helped the segment deliversolid earnings. The challenging competitive factors and market conditions in the infrastructureand related services business necessitated non-cash impairment charges at NokiaSiemens Networks. We continue to support Nokia Siemens Networks actions to improve its performance.' INDUSTRY AND NOKIA OUTLOOK -Nokia expects industry mobile device volumes in the fourth quarter 2009 to be upsequentially. -Nokia expects its mobile device market share in the fourth quarter 2009 to beapproximately at the same level sequentially. -Nokia expects industry mobile device volumes to be approximately 1.12 billionunits in 2009, down approximately 7% from approximately 1.21 billion unitsNokiaestimated for 2008. This is an update to Nokia's earlier estimate of industrymobile device volumes declining approximately 10% in 2009 from 2008 levels. -Nokia expects its non-IFRS operating margin in Devices & Services in the fourth quarter 2009 to be up by one percentage point or more sequentially. -Nokia and Nokia Siemens Networks now expect the mobile infrastructure and fixed infrastructure and related services market to decline approximately 5% inEuro terms in 2009, from 2008 levels. This is an update to Nokia and Nokia Siemens Networks earlier expected decline of approximately 10%. -Nokia and Nokia Siemens Networks also now expect that Nokia Siemens Networks market share will decline by more than previously expected in 2009, compared with 2008. This is an update to Nokia and Nokia Siemens Networks earlier expected moderate decline. Nokia and Nokia Siemens Networks continue to see strong performance in its Services business unit expected to be offset by declines in certain product businesses. THIRD QUARTER 2009 FINANCIAL HIGHLIGHTS (Comparisons are given to the third quarter 2008, unless otherwise indicated.) The non-IFRS results exclusions Q32009 ? EUR 1 167 million consisting of: - EUR908 million impairment of goodwill in Nokia Siemens Networks - EUR 29million restructuring charge and other one-time items in Nokia Siemens Networks - EUR 117 million of intangible assets amortization and other purchase price related items arising from the formation of Nokia Siemens Networks -EUR 111 million of intangible assets amortization and other purchase price related items arising from the acquisition of NAVTEQ -EUR 2 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications in Devices & Services Q32009 taxes ? EUR 432 million valuation allowance for Nokia Siemens Networks deferred tax assets impacting Nokia taxes Q22009 ? EUR 348 million (net) consisting of: - EUR22 million of impairment of intangible assets in Devices & Services - EUR 83million restructuring charge in Devices & Services - EUR 68million gain on sale of security appliance business in Devices & Services - EUR 69 million restructuring charge and other one-time items in Nokia SiemensNetworks -EUR 121 million of intangible assets amortization and other purchase price related items arising from the formation of Nokia Siemens Networks -EUR 119 million of intangible assets amortization and other purchase price related items arising from the acquisition of NAVTEQ -EUR 2 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications in Devices & Services Q32008 ? EUR 287 million consisting of: - EUR59 million restructuring charge and other one-time items in Nokia Siemens Networks- EUR 119 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks -EUR 109 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ Non-IFRS results exclude special items for all periods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from i) the formation of Nokia Siemens Networks and ii) all business acquisitions completed after June 30, 2008. Nokia Group Nokia's third quarter 2009 net sales decreased 20% to EUR 9.8 billion, comparedwith EUR 12.2 billion in the third quarter 2008. At constant currency, Groupnetsales would have decreased 19% year on year. The following chart sets out the year on year and sequential growth rates inournet sales on a reported basis and at constant currency for the periods indicated. --------------------------------------------------------------------------------|NOKIA THIRD QUARTER 2009 NET SALES, REPORTED & CONSTANT CURRENCY1 |--------------------------------------------------------------------------------|| Q3/2009 vs. | Q3/2009 vs || | Q3/2008 Change | Q2/2009 Change|--------------------------------------------------------------------------------|Group net sales - reported | -20% | -1%|--------------------------------------------------------------------------------|Group net sales - constant | -19% | 0% ||currency1 | | |--------------------------------------------------------------------------------|| | |--------------------------------------------------------------------------------|Devices & Services net sales - | -20% | 5% ||reported | | |--------------------------------------------------------------------------------|Devices & Services net sales - | -20% | 6% ||constant currency1 | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Nokia Siemens Networks net sales - | -21% | -14% ||reported | | |--------------------------------------------------------------------------------|Nokia Siemens Networks net sales - | -20% | -14% ||constant currency1 | | |--------------------------------------------------------------------------------|Note 1: Change in net sales at constant currency excludes the impact of ||changes in exchange rates in comparison to the Euro, our reporting currency.|--------------------------------------------------------------------------------Nokia's third quarter 2009 reported operating loss was EUR 426 million,comparedwith an operating profit of EUR 1.5 billion in the third quarter 2008.Nokia's third quarter 2009 non-IFRS operating profit decreased 58% to EUR 741million, compared with EUR 1.8 billion in the third quarter 2008. Nokia's thirdquarter 2009 reported operating margin was -4.3% (12.0%). Nokia's third quarter2009 non-IFRS operating margin was 7.6% (14.3%). Operating cash flow for the third quarter 2009 was EUR 720 million, compared with EUR 1.3 billion in the third quarter 2008. Total cash and other liquid assets were EUR 7.4 billion at September 30, 2009, compared with EUR 7.2 billionatSeptember 30, 2008. At September 30, 2009, Nokia's net debt-equity ratio (gearing) was -15%, compared with -18% at September 30, 2008. Devices & Services Inthe third quarter 2009, the total mobile device volumes of our Devices & Services group were 108.5 million units, representing a decline of 8% year on year and a 5% increase sequentially. The overall industry mobile device volumesfor the same period were 288 million units based on Nokia's preliminary estimate, representing a 7% year on year decrease and a 7% sequential increase.The lower device volumes year on year for Nokia and the industry continued tobedriven by the negative impact of the deteriorated global economic conditions. The sequential industry device volume increase primarily reflected animproved demand environment for mobile devices. In addition, Nokia's device volumes for the third quarter 2009 were somewhat constrained by component shortages across the portfolio, which are expected to continue to some degreeinthe fourth quarter 2009. Of the total industry mobile device volumes, converged mobile device industry volumes in the third quarter 2009 were 47.0 million units, based on Nokia's preliminary estimate, compared with an estimated 44.2 million units in thethirdquarter 2008 and 41.0 million units in the second quarter 2009. Our own converged mobile device volumes were 16.4 million units in the third quarter 2009, compared with 15.5 million units in the third quarter 2008 and 16.9 million units in the second quarter 2009. Nokia's share of the converged mobiledevice market was an estimated 35% in the third quarter 2009, at the same level asin the third quarter 2008 and down from 41% in the second quarter 2009. We shipped 4.5 million Nokia Nseries and 4.4 million Nokia Eseries devices during the third quarter 2009, down from the combined 9.3 million Nseries and Eseries devices we shipped in the second quarter 2009. The following chart sets out our mobile device volumes for the periods indicated, as well as the year on year and sequential growth rates, by geographic area. --------------------------------------------------------------------------------|NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA |--------------------------------------------------------------------------------|(million units) | Q3/2009 | Q3/2008 | YoY | Q2/2009 | QoQ || | | | Change | | Change|--------------------------------------------------------------------------------|Europe | 27.1 | 27.4 | -1.1% | 23.3 | 16.3%|--------------------------------------------------------------------------------|Middle East & | 19.6 | 21.5 | -8.8% | 18.9 | 3.7% ||Africa | | | | | |--------------------------------------------------------------------------------|Greater China | 18.5 | 19.8 | -6.6% | 18.6 | -0.5%|--------------------------------------------------------------------------------|Asia-Pacific | 30.5 | 33.6 | -9.2% | 30.3 | 0.7%|--------------------------------------------------------------------------------|North America | 3.1 | 4.5 | -31.1% | 3.2 | -3.1%|--------------------------------------------------------------------------------|Latin America | 9.7 | 11.0 | -11.8% | 8.9 | 9.0%|--------------------------------------------------------------------------------|Total | 108.5 | 117.8 | -7.9% | 103.2 | 5.1%|--------------------------------------------------------------------------------Based on our preliminary market estimate, Nokia's mobile device market shareforthe third quarter 2009 was 38%, compared with 38% in the third quarter 2008 andin the second quarter 2009. Our year on year market share was higher in Europe,Latin America and Middle East & Africa. This was offset by lower market shareinGreater China, Asia-Pacific and North America. Sequentially, our market share declined in Greater China, Asia-Pacific, Middle East & Africa and NorthAmerica,but was offset by our increased market share in Europe and Latin America. Our mobile device average selling price (ASP) in the third quarter 2009 was EUR62, down from EUR 72 in the third quarter 2008 and at the same level as in the second quarter 2009. The year on year decline was primarily due to a higher proportion of sales of lower priced products as well as general price pressure.Sequentially, our ASP benefited from new product shipments, offset however by general price pressure. Third quarter 2009 Devices & Services net sales declined 20% to EUR 6.9 billion, compared with EUR 8.6 billion in the third quarter 2008. Devices & Services net sales were down year on year in all geographic areas. At constant currency, Devices & Services net sales would have decreased 20%. The net sales decline resulted primarily from lower volumes, combined with the ASP decline, compared with the third quarter 2008. Of our total Devices & Services net sales, services contributed EUR 148 million in the third quarter 2009, representing 29% year on year growth and a 6% sequential growth. Nokiacompletedthe divestment of its security appliances business in April 2009 andaccordinglyservices net sales for the third and second quarter 2009 as well as forthe prior periods are not directly comparable. Beginning with the third quarter 2009, we are providing additional sequential comparative information for our Devices & Services business to reflect our product and solutions mode of operation and performance. We are now providing total net sales for Devices & Services divided into (i) net sales from smartphones and mobile computer solutions; that is, net sales of converged mobile devices, including the services and accessories sold with them, and (ii)net sales from mobile phones and embedded services; that is, net sales of Series30and Series 40-powered devices, including the services and accessories sold withthem. We are also providing ASPs for each of these two categories of sales.Netsales from smartphones and mobile computer solutions totaled EUR 3.1 billionin thethird quarter 2009, at the same level as in the second quarter 2009. The ASP forsmartphones and mobile computer solutions was EUR 190, up from EUR 182 in thesecond quarter 2009. Net sales from mobile phones and embedded services totaledEUR 3.8 billion in the third quarter 2009, compared with EUR 3.5 billionin thesecond quarter 2009. The ASP for mobile phones and embedded services was EUR 41,at the same level as in the second quarter 2009. Devices &Services reported gross profit and non-IFRS gross profit decreased 32%to EUR 2.1billion, compared with EUR 3.1 billion in the third quarter 2008, with areported and non-IFRS gross margin of 30.9% (36.5%). The year on year grossmargin decrease was primarily due to higher cost of sales driven by astrongerJapanese Yen, as well as general price pressure. During thethird quarter 2009, Devices & Services reported operating profit decreased 51%to EUR 785 million, compared with EUR 1.6 billion in the third quarter 2008,with a reported operating margin of 11.4% (18.6%). Devices & Servicesnon-IFRS operating profit decreased 51% to EUR 787 million, compared with EUR1.6 billion in the third quarter 2008, with a non-IFRS operating marginof 11.4%(18.6%). The year on year decrease in non-IFRS operating profit for thethirdquarter 2009 was due primarily to lower net sales and higher cost of salescomparedwith the third quarter 2008. These factors were somewhat mitigated by areductionin our operating expenses, compared to the third quarter 2008. NAVTEQ (Nokia completed the acquisition of NAVTEQ Corporation on July 10, 2008. Accordingly, NAVTEQ's results for the third quarter 2008 are not directly comparable to those for the third quarter 2009.) Third quarter 2009 NAVTEQ net sales increased 6% to EUR 166 million, compared with EUR 156 million in the third quarter 2008. NAVTEQ reported gross profitwasEUR 146 million (EUR 138 million), with a reported gross margin of 88.0% (88.5%). Non-IFRS gross profit was EUR 146 million (EUR 139 million), with a non-IFRS gross margin of 88.0% (88.5%). NAVTEQ had a reported operating loss ofEUR 68 million (EUR 80 million loss). The reported operating margin was -41.0% (-51.3%). NAVTEQ non-IFRS operating profit was EUR 43 million (EUR 29 million),with a non-IFRS operating margin of 25.9% (18.5%). When Nokia assessed goodwill for impairment on its annual impairment testing date in the fourth quarter 2008, Nokia concluded that a reasonably possible change of 1% in the valuation assumptions for long-term growth rate and pre-taxdiscount rate would give rise to an impairment loss for NAVTEQ. Nokia conducted areview and update of the assumptions used in the 2008 annual impairment testing analysis and performed a sensitivity analysis on these assumptions to assess the recoverability of NAVTEQ. This assessment resulted in no indication ofimpairment for NAVTEQ. However, Nokia has once again concluded that a reasonably possible change of 1% in the valuation assumptions for long-term growth rate and pre-tax discount rate would give rise to an impairment loss forNAVTEQ. Nokia continues to evaluate the financial performance and future strategies of NAVTEQ as well as market and economic conditions to assess the recoverability of NAVTEQ's carrying amount. Nokia will conduct its annual goodwill impairment testing in the fourth quarter 2009. Nokia Siemens Networks Third quarter 2009 net sales decreased 21% to EUR 2.8 billion, compared withEUR3.5 billion in the third quarter 2008, reflecting challenging competitive factors and market conditions. At constant currency, Nokia Siemens Networks netsales would have decreased 20%. Of total Nokia Siemens Networks net sales, services contributed EUR 1.3 billion. The following chart sets out Nokia Siemens Networks net sales for the periods indicated, as well as the year on year and sequential growth rates, by geographic area. --------------------------------------------------------------------------------|NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA |--------------------------------------------------------------------------------|EUR million | Q3/2009 | Q3/2008 | YoY | Q2/2009 | QoQ || | | | Change | | Change|--------------------------------------------------------------------------------|Europe | 1 062 | 1 358 | -21.8% | 1 209 | -12.2%|--------------------------------------------------------------------------------|Middle East & | 387 | 424 | -8.7% | 459 | -15.7% ||Africa | | | | | |--------------------------------------------------------------------------------|Greater China | 335 | 288 | 16.3% | 353 | -5.1%|--------------------------------------------------------------------------------|Asia-Pacific | 567 | 894 | -36.6% | 648 | -12.5%|--------------------------------------------------------------------------------|North America | 127 | 150 | -15.3% | 208 | -38.9%|--------------------------------------------------------------------------------|Latin America | 282 | 389 | -27.5% | 322 | -12.4%|--------------------------------------------------------------------------------|Total | 2 760 | 3 503 | -21.2% | 3 199 | -13.7%|--------------------------------------------------------------------------------Nokia Siemens Networks reported gross profit decreased 28% to EUR 778 million, compared with EUR 1.1 billion in the third quarter 2008, with a reported gross margin of 28.2% (30.8%). Nokia Siemens Networks non-IFRS gross profit decreased27% to EUR 794 million, compared with EUR 1.1 billion in the third quarter 2008, with a non-IFRS gross margin of 28.8% (31.2%). The lower year on year non-IFRS gross profit in the third quarter 2009 was due primarily to lower year onyear net sales. NokiaSiemens Networks had a third quarter 2009 reported operating loss of EUR 1107million, compared with an operating loss of EUR 1 million in the third quarter 2008, with an operating margin of -40.1% (0.0%). The operating loss in the third quarter 2009 was primarily driven by the EUR 908 million impairmentofgoodwill. Nokia Siemens Networks non-IFRS operating loss was EUR 53 million in the third quarter 2009, compared with a non-IFRS operating profit of EUR 177 million in the third quarter 2008, with a non-IFRS operating margin of -1.9% (5.1%). The year on year decline in Nokia Siemens Networks non-IFRS operating profit primarily reflected lower net sales. Nokia recorded a charge to operating profit in the third quarter 2009 of EUR908million for the impairment of goodwill in Nokia Siemens Networks. After the impairment charge Nokia no longer carries any goodwill with regard to Nokia Siemens Networks. An additional charge of EUR 432 million was recorded to tax expense to provide a valuation allowance on Nokia Siemens Networks' deferredtaxassets. The net impact of the asset impairment charges after minority interest totaled EUR 1 072 million, negatively impacting reported EPS by EUR 0.29. The recoverability of the investment in Nokia Siemens Networks has declined asaresult of the decline in forecasted profits and cash flows. The assetimpairmentcharges are the result of an evaluation of the historical and projected financial performance of Nokia Siemens Networks, taking into consideration the challenging competitive factors and market conditions in the infrastructure andrelated services business, which have resulted in lower net sales projections and which, in turn, have reduced the projected scale and thus negatively impacted projected margins and profitability. The recognition of a valuation allowance does not impact the validity of the deferred tax assets and Nokia Siemens Networks retains the possibility of recovering these assets if sufficient future taxable profits become available. Q32009 OPERATING HIGHLIGHTS -Nokia announced the formation of Solutions, a new unit responsible fordrivingNokia's offering of solutions, with the aim of integrating the mobiledevice, services and content into a unique and compelling offering for theconsumer. Theunit formally started operating on October 1, 2009. - Nokia announced changes to its Group Executive Board, with Robert Andersson leaving Nokia's Group Executive Board as of September 30, 2009 in connection with his transfer to new duties in Nokia's Corporate Development unit from October 1, 2009; Alberto Torres joining Nokia's Group Executive Board as of October 1, 2009 in connection with his appointment as head of Solutions, and; Simon Beresford-Wylie leaving the Group Executive Board on September 30, 2009 after stepping down as Chief Executive Officer of Nokia Siemens Networks. -Nokia announced that Rajeev Suri had been appointed as Chief Executive OfficerofNokia Siemens Networks as of October 1, 2009. -Nokia was named as the world's most sustainable technology company according tothe 2009-10 edition of the prestigious Dow Jones Sustainability Indexes that wentlive during September. Already rated for several years as the leader withintheEurope and Communications categories, this year Nokia was also chosen as 'WorldTechnology Supersector Leader' making it number one across the entire globaltechnology sector. - Nokiaannounced that a United States International Trade Commission (ITC) judgeissued an Initial Determination in favor of Nokia in the action broughtbyInterDigital against Nokia. The judge's Initial Determination is consistentwitha previous judgment in the United Kingdom that found several InterDigital patents not to be essential to the UMTS mobile standard. Devices & Services -Nokia acquired certain assets of cellity, a mobile software company that has developed a solution for aggregating address book data, as well as certain assets of Plum Ventures, Inc, a privately held company that develops and operates a cloud-based social media sharing and messaging service for private groups. Nokia also acquired Dopplr Oy, a privately-held mobile service providerfor international travelers. All three acquisitions enable Nokia to accelerate the delivery of Ovi services and bring additional internet services talent to its Services unit. -Nokia announced Nokia Money, a new mobile financial service giving mobile device users access to basic financial services. The service is to be rolledoutgradually to selected markets in early 2010 and will be operated in cooperationwith Obopay, a leading developer of mobile payment solutions in which Nokia invested earlier this year. -Nokia announced a global alliance with Microsoft to design and market a suite ofproductivity applications for Nokia's range of Symbian smartphones, starting withNokia's business-optimized Eseries range of devices. - Nokiaannounced the Nokia N900, a handset that delivers computer-grade performance in a compact QWERTY and touch form factor. The Nokia N900 runs on Maemo, a desktop PC-like software architecture based on the open source Linux software. -Nokia announced the Nokia Booklet 3G, a new Windows 7-based mini-laptop. The Nokia Booklet 3G is encased in an ultra-portable aluminum chassis, runs for up to12 hours on a single charge and has a broad range of connectivity options. -Nokia announced the Nokia N97 mini, a companion to the Nokia N97. The Nokia N97mini will be the first device to feature Ovi lifecasting, an application developed together with Facebook that enables people for the first time to publish their location and status updates directly to their Facebook account from the home screen of a mobile device. -Nokia announced the Nokia X6, a powerful entertainment device with 32GB of on-board memory that, in select markets, will be available in combination with Comes With Music, Nokia's 'all-you-can-eat-music' offering. Nokia alsoannouncedthe Nokia X3, an affordable music device and the first Series 40-powereddevice enabled for Ovi Store, Nokia's store for applications and content. - Nokia announced the Nokia 5230, an affordable touch smartphone that, inselectmarkets, will also be available in combination with Comes With Music. - Nokia launched Comes With Music in Austria, the Netherlands and South Africa during the quarter, with the offering now available on 17 Nokia devices across 12countries altogether. Additionally, Nokia launched Nokia Music Store inIndiaduring the quarter, with the chain of digital music stores now localized for22 countries. - Nokia announced the Nokia 5800 Navigation Edition, a touch handset preloaded with a lifetime of voice-guided Drive and Walk navigation licenses for the user's region. -Nokia announced and commenced shipments of the Nokia 3720 classic, a rugged handset designed to resist water, dust and shock. -Nokia Messaging, Nokia's consumer email service, continued to gain traction among operators with six new agreements announced during the quarter. Nokia Messaging is now available to Nokia users in more than 50 countries and approximately 1 million users are now registered. Additionally, more than 2 million people have now activated an Ovi Mail account. Ovi Mail is an email solution developed especially for consumers in emerging markets. -Nokia announced the Ovi SDK Beta, the Ovi Maps Player API for mobile and Ovi Navigation Player API, enabling the creation of rich applications for the webaswell as the Symbian and Maemo platforms, and which will be distributed through the Ovi Store. Ovi developer tools are a key focus area as we continue toexpandour services offering for consumers and create opportunities for developersand content providers. NAVTEQ -NAVTEQ announced the European availability of Motorway Junction Objects,whichenables navigation systems to display full 3D animation of complex junctions,with coverage of over 6 000 locations. -NAVTEQ significantly increased major city coverage for its India map, now encompassing 84 cities. -NAVTEQ announced that NAVTEQ Discover Cities? reached a global pedestrian navigation milestone of 100 cities with the addition of Johannesburg. -NAVTEQ acquired Acuity, a US-based company with a leading mobile location-based advertising delivery platform. The acquisition underscores NAVTEQ's commitment to and investment in location-based advertising technology and solutions. -NAVTEQ launched real time traffic in 11 European countries and expandedNAVTEQTraffic Patterns? to 9 European countries. - NAVTEQ announced the integration of Nokia GPS data for availability in NAVTEQtraffic products in North America and Europe. -NAVTEQ along with Nokia and Magnetti Marelli announced innovative technology tointegrate smartphones into car infotainment systems. -NAVTEQ announced that Nextar selected NAVTEQ Location Point? to offer their consumers a lifetime of free traffic supported by targeted location-based advertising. Nokia Siemens Networks -Globe Telecommunications, one of the leading communication service providers inthe Philippines can now offer Web 2.0 services and roll out new promotional service packages up to 10 times faster than before after Nokia Siemens Networks, in collaboration with IBM, implemented a Service Delivery Framework for the operator, which offers an agile and efficient service creation environment, and reduces the time to market for new services. -Nokia Siemens Networks in September made the world's first LTE call using commercial base station and fully standard compliant, commercial software. The successful demonstration, as well as the fact that Nokia Siemens Networks had delivered LTE-compatible Flexi Base Station hardware to over 100 customers by end September, illustrates the readiness of Nokia Siemens Networks' productsforearly commercial deployments worldwide. - Nokia Siemens Networks continued to make inroads in North America with a 3G network roll out deal in Canada for Globalive Wireless that includes a services-led turnkey deal for the implementation, maintenance, design and service assurance as well as a system-led deal for the WCDMA network. -Nokia Siemens Networks won a number of other key 3G deals in the quarter including a contract with Megafon in Russia as the main supplier for the extension of its 3G radio network, and deals with Viettel in Vietnam, Hutchison 3GAustria, Nuevatel in Bolivia, T-Mobile in the Czech Republic and Hutchison Telecom in Hong Kong. -In fixed line, Nokia Siemens Networks was appointed by Belgacom InternationalCarrier Services to upgrade its optical network transmission capacity from 10 Gigabit per second (Gbps) per wavelength to 40 Gbps. Other deals included an upgrade for Ceske Radiokomunikace for data rates of up to 10 Gbps and a 4 000kmextension of a nationwide fiber backbone network for Zain Nigeria. - Nokia Siemens Networks demonstrated DSL with download speeds of 25 Mbps at a distance of up to 1 500 meters from the local exchange at Broadband World Forum inParis with its VDSL2 bonding solution. Formore information on the operating highlights mentioned above, please refer torelated press announcements at the following links: http://www.nokia.com/press, http://www.navteq.com/about/press.html, http://www.nokiasiemensnetworks.com/press NOKIA IN THE THIRD QUARTER 2009 (The following discussion is of Nokia's reported results. Comparisons are given tothe third quarter 2008 results, unless otherwise indicated.) Nokia's net sales decreased 20% to EUR 9 810 million (EUR 12 237 million). Net sales of Devices & Services decreased 20% to EUR 6 915 million (EUR 8 605 million). Net sales of NAVTEQ increased 6% to EUR 166 million (EUR 156 million). Net sales of Nokia Siemens Networks decreased 21% to EUR 2 760 million (EUR 3 503 million). Operating loss was EUR 426 million (compared with an operating profit of EUR 1 469 million), representing an operating margin of -4.3% (12.0%). Operating profit in Devices & Services decreased 51% to EUR 785 million (EUR 1 602 million), representing an operating margin of 11.4% (18.6%). Operating loss in NAVTEQ was EUR 68 million (loss of EUR 80 million), representing an operating margin of -41.0% (-51.3%). Operating loss in Nokia Siemens Networks was EUR 1 107 million (loss of EUR 1 million), representing an operating margin of -40.1%(0.0%). The operating loss in Nokia Siemens Networks included a non-deductible impairment of goodwill charge of EUR 908 million. Corporate Common Functions reported expense totaled EUR 36 million (EUR 52 million). Inthe third quarter 2009, net financial expense was EUR 48 million (net financial expense EUR 57 million). Loss before tax was EUR 469 million (profit ofEUR 1 410 million). The results after taxes included a charge of EUR 432 million recorded to provide a valuation allowance on Nokia Siemens Networks' deferred tax assets. Loss was EUR 913 million (profit of EUR 1 055 million), based on a loss of EUR 559 million (profit of EUR 1 087 million) attributabletoequity holders of the parent and a negative EUR 354 million (negative EUR 32 million) attributable to minority interests. Earnings per share decreased toEUR-0.15 (basic) and EUR -0.15 (diluted), compared with EUR 0.29 (basic) and EUR 0.29 (diluted) in the third quarter of 2008. NOKIA IN JANUARY - SEPTEMBER 2009 (The following discussion is of Nokia's reported results. Comparisons are given tothe January-September 2008 results, unless otherwise indicated.) Nokia's net sales decreased 24% to EUR 28 996 million (EUR 38 048 million). Netsales of Devices & Services decreased 27% to EUR 19 674 million (EUR 26 958 million). Net sales of NAVTEQ were EUR 445 million. Net sales of Nokia Siemens Networks decreased 18% to EUR 8 949 million (EUR 10 971 million). Operating profit decreased 99% to EUR 56 million (EUR 4 474 million), representing an operating margin of 0.2% (11.8%). Operating profit in Devices &Services decreased 59% to EUR 2 095 million (EUR 5 050 million), representinganoperating margin of 10.6% (18.7%). Operating loss in NAVTEQ was EUR 288million,representing an operating margin of -64.7%. Operating loss in NokiaSiemens Networks was EUR 1 656 million (loss of EUR 122 million), representingan operating margin of -18.5% (-1.1%). The operating loss in Nokia SiemensNetworksincluded a non-deductible impairment of goodwill charge of EUR 908million. Corporate Common Functions reported expense totaled EUR 95 million(EUR 374 million). In the period from January to September 2009, net financial expense was EUR 186million (net financial income EUR 14 million). Loss before tax was EUR 101 million (profit of EUR 4 494 million). The results after taxes included a chargeofEUR 432 million recorded to provide a valuation allowance on Nokia Siemens Networks' deferred tax assets. Loss was EUR 622 million (profit of EUR 3 338 million), based on a loss of EUR 57 million (profit of EUR 3 412 million) attributable to equity holders of the parent and a negative EUR 565 million (negative EUR 74 million) attributable to minority interests. Earnings persharedecreased to EUR -0.02 (basic) and EUR -0.02 (diluted), compared with EUR0.91 (basic) and EUR 0.90 (diluted) in January-September 2008. PERSONNEL The average number of employees during January-September 2009 was 123 139, of which the average number of employees at Nokia Siemens Networks was 61 575. At September 30, 2009, Nokia employed a total of 123 347 people (123 006 September30, 2008), of which 63 943 were employed by Nokia Siemens Networks (60 183 people at September 30, 2008). SHARES The total number of Nokia shares at September 30, 2009 was 3 744 956 052. At September 30, 2009, Nokia and its subsidiary companies owned 37 380 257 Nokia shares, representing approximately 1.0% of the total number of Nokia shares andthe total voting rights. --------------------------------------------------------------------------------|CONSOLIDATED INCOME STATEMENT, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| Reported | Reported | | Non-IFRS | Non-IFRS || | 7-9/2009 | 7-9/2008 | | 7-9/2009 | 7-9/2008|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Net sales | 9 810 | 12 237 | | 9 810 | 12 239|--------------------------------------------------------------------------------|Cost of sales | -6 749 | -7 878 | | -6 733 | -7 867|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Gross profit | 3 061 | 4 359 | | 3 077 | 4 372|--------------------------------------------------------------------------------|Research and | -1 386 | -1 466 | | -1 257 | -1 337 ||development expenses | | | | | |--------------------------------------------------------------------------------|Selling and | -920 | -1 068 | | -822 | -967 ||marketing expenses | | | | | |--------------------------------------------------------------------------------|Administrative and | -267 | -293 | | -251 | -266 ||general expenses | | | | | |--------------------------------------------------------------------------------|Impairment of | -908 | - | | - | - ||goodwill | | | | | |--------------------------------------------------------------------------------|Other income | 40 | 102 | | 40 | 102|--------------------------------------------------------------------------------|Other expenses | -46 | -165 | | -46 | -148|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Operating profit | -426 | 1 469 | | 741 | 1 756|--------------------------------------------------------------------------------|Share of results of | 5 | -2 | | 5 | -2 ||associated companies | | | | | |--------------------------------------------------------------------------------|Financial income and | -48 | -57 | | -48 | -57 ||expenses | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Profit before tax | -469 | 1 410 | | 698 | 1 697|--------------------------------------------------------------------------------|Tax | -444 | -355 | | -96 | -444|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Profit | -913 | 1 055 | | 602 | 1 253|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Profit attributable | -559 | 1 087 | | 634 | 1 219 || toequity holders of | | | | | || theparent | | | | | |--------------------------------------------------------------------------------|Profit attributable | -354 | -32 | | -32 | 34 || tominority | | | | | ||interests | | | | | |--------------------------------------------------------------------------------|| -913 | 1 055 | | 602 | 1 253|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Earnings per share, | | | | | ||EUR (for profit | | | | | ||attributable to the | | | | | ||equity holders of | | | | | ||the parent) | | | | | |--------------------------------------------------------------------------------|Basic | -0.15 | 0.29 | | 0.17 | 0.33|--------------------------------------------------------------------------------|Diluted | -0.15 | 0.29 | | 0.17 | 0.33|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Average number of | | | | | ||shares (1 000 | | | | | ||shares) | | | | | |--------------------------------------------------------------------------------|Basic | 3 707 535 | 3 700 | | 3 707 535 | 3 700 704 || | | 704 | | | |--------------------------------------------------------------------------------|Diluted | 3 714 202 | 3 736 | | 3 714 202 | 3 736 440 || | | 440 | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Depreciation and | 428 | 490 | | 198 | 262 ||amortization, total | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Share-based | 15 | 31 | | 15 | 31 ||compensation | | | | | ||expense, total | | | | | |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------|CONSOLIDATED INCOME STATEMENT, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| Reported | Reported | | Non-IFRS | Non-IFRS || | 1-9/2009 | 1-9/2008 | | 1-9/2009 | 1-9/2008|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Net sales | 28 996 | 38 048 | | 28 999 | 38 057|--------------------------------------------------------------------------------|Cost of sales | -19 805 | -24 738 | | -19 691 | -24 520|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Gross profit | 9 191 | 13 310 | | 9 308 | 13 537|--------------------------------------------------------------------------------|Research and | -4 344 | -4 237 | | -3 941 | -4 017 ||development expenses | | | | | |--------------------------------------------------------------------------------|Selling and marketing | -2 885 | -3 093 | | -2 575 | -2 855 ||expenses | | | | | |--------------------------------------------------------------------------------|Administrative and | -851 | -939 | | -764 | -837 ||general expenses | | | | | |--------------------------------------------------------------------------------|Impairment of | -908 | - | | - | - ||goodwill | | | | | |--------------------------------------------------------------------------------|Other income | 239 | 266 | | 171 | 201|--------------------------------------------------------------------------------|Other expenses | -386 | -833 | | -169 | -237|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Operating profit | 56 | 4 474 | | 2 030 | 5 792|--------------------------------------------------------------------------------|Share of results of | 29 | 6 | | 29 | 6 ||associated companies | | | | | |--------------------------------------------------------------------------------|Financial income and | -186 | 14 | | -186 | 14 ||expenses | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Profit before tax | -101 | 4 494 | | 1 873 | 5 812|--------------------------------------------------------------------------------|Tax | -521 | -1 156 | | -417 | -1 532|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Profit | -622 | 3 338 | | 1 456 | 4 280|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Profit attributable | -57 | 3 412 | | 1 543 | 4 115 || toequity holders of | | | | | || theparent | | | | | |--------------------------------------------------------------------------------|Profit attributable | -565 | -74 | | -87 | 165 || tominority interests | | | | | |--------------------------------------------------------------------------------|| -622 | 3 338 | | 1 456 | 4 280|--------------------------------------------------------------------------------|Earnings per share, | | | | | ||EUR (for profit | | | | | ||attributable to the | | | | | ||equity holders of the | | | | | ||parent) | | | | | |--------------------------------------------------------------------------------|Basic | -0.02 | 0.91 | | 0.42 | 1.09|--------------------------------------------------------------------------------|Diluted | -0.02 | 0.90 | | 0.41 | 1.08|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Average number of | | | | | ||shares (1 000 shares) | | | | | |--------------------------------------------------------------------------------|Basic | 3 704 106 | 3 759 091 | | 3 704 106 | 3 759 091|--------------------------------------------------------------------------------|Diluted | 3 721 107 | 3 802 880 | | 3 721 107 | 3 802 880|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Depreciation and | 1 333 | 1 171 | | 618 | 705 ||amortization, total | | | | | |--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Share-based | -1 | 127 | | -1 | 127 ||compensation expense, | | | | | ||total | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|NOKIA NET SALES BY GEOGRAPHIC AREA, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|Reported | 7-9/2009 | Y-o-Y | 7-9/2008 | 1-12/2008 || | | change, % | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Europe | 3 558 | -19 | 4 386 | 18 842|--------------------------------------------------------------------------------|Middle-East & Africa | 1 357 | -25 | 1 804 | 7 265|--------------------------------------------------------------------------------|Greater China | 1 736 | 1 | 1 722 | 6 420|--------------------------------------------------------------------------------|Asia-Pacific | 2 040 | -25 | 2 711 | 11 344|--------------------------------------------------------------------------------|North America | 392 | -29 | 554 | 2 068|--------------------------------------------------------------------------------|Latin America | 727 | -31 | 1 060 | 4 771|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Total | 9 810 | -20 | 12 237 | 50 710|-------------------------------------------------------------------------------- --------------------------------------------------------------------------------|NOKIA PERSONNEL BY GEOGRAPHIC AREA |--------------------------------------------------------------------------------|| 30.09.09 | Y-o-Y | 30.09.08 | 31.12.08 || | | change, % | | |--------------------------------------------------------------------------------|Europe | 58 814 | -4 | 61 268 | 61 971|--------------------------------------------------------------------------------|Middle-East & Africa | 4 140 | -20 | 5 161 | 5 160|--------------------------------------------------------------------------------|Greater China | 15 059 | 5 | 14 319 | 14 879|--------------------------------------------------------------------------------|Asia-Pacific | 23 370 | 13 | 20 646 | 21 832|--------------------------------------------------------------------------------|North America | 7 936 | -7 | 8 547 | 8 862|--------------------------------------------------------------------------------|Latin America | 14 028 | 7 | 13 065 | 13 125|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Total | 123 347 | 0 | 123 006 | 125 829|----------------------------------------------------------------------------------------------------------------------------------------------------------------|DEVICES & SERVICES, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| Reporte | Special | Non-IFR | Reported | Special | Non-IFRS || | d | items & | S | 7-9/2008 | items & | 7-9/2008 || | 7-9/200| PPA | 7-9/200 | | PPA | || | 9 |7-9/2009 | 9 | | 7-9/2008 | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Net sales | 6 915 | - | 6 915 | 8 605 | - | 8 605|--------------------------------------------------------------------------------|Cost of | -4 778 | - | -4 778 | -5 464 | - | -5 464 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Gross profit | 2 137 | - | 2 137 | 3 141 | - | 3 141|--------------------------------------------------------------------------------|% of net | 30.9 | | 30.9 | 36.5 | | 36.5 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Research and | -703 | 2 | -701 | -719 | - | -719 ||development | | | | | | ||expenses 1) | | | | | | |--------------------------------------------------------------------------------|% of net | 10.2 | | 10.1 | 8.4 | | 8.4 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Selling and | -552 | - | -552 | -684 | - | -684 ||marketing | | | | | | ||expenses | | | | | | |--------------------------------------------------------------------------------|% of net | 8.0 | | 8.0 | 7.9 | | 7.9 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Administrati | -105 | - | -105 | -110 | - | -110 || veand | | | | | | ||general | | | | | | ||expenses | | | | | | |--------------------------------------------------------------------------------|% of net | 1.5 | | 1.5 | 1.3 | | 1.3 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Other income | 8 | - | 8 | -26 | - | -26 ||and expenses | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Operating | 785 | 2 | 787 | 1 602 | - | 1 602 ||profit | | | | | | |--------------------------------------------------------------------------------|% of net | 11.4 | | 11.4 | 18.6 | | 18.6 ||sales | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|1) Amortization of acquired intangible assets of EUR 2 million in Q3/09 |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------|NAVTEQ, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| Reported | Special | Non-IFR | Reported | Special | Non-IFR || |7-9/2009 | items & | S | 7-9/2008 | items & | S || | | PPA | 7-9/200 | | PPA | 7-9/200 || | |7-9/2009 | 9 | | 7-9/200 | 8 || | | | | | 8 | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Net sales 1) | 166 | - | 166 | 156 | 1 | 157|--------------------------------------------------------------------------------|Cost of sales | -20 | - | -20 | -18 | - | -18|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Gross profit | 146 | - | 146 | 138 | 1 | 139|--------------------------------------------------------------------------------|% of net | 88.0 | | 88.0 | 88.5 | | 88.5 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Research and | -152 | 83 | -69 | -158 | 81 | -77 ||development | | | | | | ||expenses 2) | | | | | | |--------------------------------------------------------------------------------|% of net | 91.6 | | 41.6 | 101.3 | | 49.0 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Selling and | -49 | 28 | -21 | -50 | 27 | -23 ||marketing | | | | | | ||expenses 3) | | | | | | |--------------------------------------------------------------------------------|% of net | 29.5 | | 12.7 | 32.1 | | 14.6 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Administrativ | -13 | - | -13 | -13 | - | -13 || eand general | | | | | | ||expenses | | | | | | |--------------------------------------------------------------------------------|% of net | 7.8 | | 7.8 | 8.3 | | 8.3 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Other income | - | - | - | 3 | - | 3 ||and expenses | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Operating | -68 | 111 | 43 | -80 | 109 | 29 ||profit | | | | | | |--------------------------------------------------------------------------------|% of net | -41.0 | | 25.9 | -51.3 | | 18.5 ||sales | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|1) Deferred revenue related to acquisitions of EUR 1 million in Q3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|2) Amortization of acquired intangibles of EUR 83 million in Q3/09 and EUR || 81million in Q3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|3) Amortization of acquired intangibles of EUR 28 million in Q3/09 and EUR || 27million in Q3/08. |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------|NOKIA SIEMENS NETWORKS, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| Reported | Special | Non-IFRS | Reported | Special | Non-IFR || | 7-9/2009 | items & | 7-9/2009 | 7-9/2008 | items & | S || | | PPA | | | PPA | 7-9/200 || | | 7-9/2009 | | | 7-9/200 | 8 || | | | | | 8 | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Net sales | 2 760 | - | 2 760 | 3 503 | 1 | 3 504 || 1)| | | | | | |--------------------------------------------------------------------------------|Cost of | -1 982 | 16 | -1 966 | -2 423 | 11 | -2 412 ||sales 2) | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Gross | 778 | 16 | 794 | 1 080 | 12 | 1 092 ||profit | | | | | | |--------------------------------------------------------------------------------|% of net | 28.2 | | 28.8 | 30.8 | | 31.2 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Research | -531 | 44 | -487 | -586 | 48 | -538 ||and | | | | | | ||developmen | | | | | | || texpenses | | | | | | || 3) | | | | | | |--------------------------------------------------------------------------------|% of net | 19.2 | | 17.6 | 16.7 | | 15.4 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Selling | -318 | 70 | -248 | -334 | 74 | -260 ||and | | | | | | ||marketing | | | | | | ||expenses | | | | | | || 4)| | | | | | |--------------------------------------------------------------------------------|% of net | 11.5 | | 9.0 | 9.5 | | 7.4 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Administra | -128 | 16 | -112 | -141 | 27 | -114 ||tive and | | | | | | ||general | | | | | | ||expenses | | | | | | || 5)| | | | | | |--------------------------------------------------------------------------------|% of net | 4.6 | | 4.1 | 4.0 | | 3.3 ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Other | -908 | 908 | - | -20 | 17 | -3 ||income and | | | | | | ||expenses | | | | | | || 6)| | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Operating | -1 107 | 1 054 | -53 | -1 | 178 | 177 ||profit | | | | | | |--------------------------------------------------------------------------------|% of net | -40.1 | | -1.9 | 0.0 | | 5.1 ||sales | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|1) Deferred revenue related to acquisitions of EUR 1 million in Q3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|2) Restructuring charges of EUR 16 million in Q3/09 and of EUR 11 million in ||Q3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|3) Reversal of restructuring charges of EUR 1 million and amortization of ||acquired intangibles of EUR 45 million in Q3/09. Restructuring charges of ||EUR 3 million and amortization of acquired intangibles of EUR 45 million in ||Q3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|4) Reversal of restructuring charges of EUR 2 million and amortization of ||acquired intangibles of EUR 72 million in Q3/09. Restructuring charges of ||EUR 2 million and amortization of acquired intangibles of EUR 72 million in ||Q3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|5) Restructuring charges of EUR 16 million in Q3/09 and EUR 27 million in ||Q3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|6) Impairment of goodwill of EUR 908 million in Q3/09. Restructuring charges || ofEUR 16 million and amortization of acquired intangibles of EUR 1 million || inQ3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|GROUP COMMON FUNCTIONS, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| Reporte | Special | Non-IFRS | Reported | Special | Non-IFR || | d | items & | 7-9/2009 | 7-9/2008 | items & | S || | 7-9/200| PPA | | | PPA | 7-9/200 || | 9 |7-9/2009 | | | 7-9/2008 | 8|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Net sales | - | - | - | - | - | -|--------------------------------------------------------------------------------|Cost of | - | - | - | - | - | - ||sales | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Gross profit | - | - | - | - | - | -|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Research and | - | - | - | -3 | - | -3 ||development | | | | | | ||expenses | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Selling and | -1 | - | -1 | - | - | - ||marketing | | | | | | ||expenses | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Administrati | -21 | - | -21 | -29 | - | -29 || veand | | | | | | ||general | | | | | | ||expenses | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Other income | -14 | - | -14 | -20 | - | -20 ||and expenses | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Operating | -36 | - | -36 | -52 | - | -52 ||profit | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|CONSOLIDATED INCOME STATEMENT, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|NOKIA GROUP |--------------------------------------------------------------------------------|| Reporte | Special | Non-IFR | Reported | Specia | Non-IFR || | d | items & | S | 7-9/2008 | l | S || | 7-9/200| PPA | 7-9/200 | | items | 7-9/200 || | 9 |7-9/200 | 9 | | & PPA | 8 || | | 9 | | | 7-9/20 | || | | | | | 08 | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Net sales 1) | 9 810 | - | 9 810 | 12 237 | 2 | 12 239|--------------------------------------------------------------------------------|Cost of sales 2) | -6 749 | 16 | -6 733 | -7 878 | 11 | -7 867|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Gross profit | 3 061 | 16 | 3 077 | 4 359 | 13 | 4 372|--------------------------------------------------------------------------------|% of net sales | 31.2 | | 31.4 | 35.6 | | 35.7|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Research and | -1 386 | 129 | -1 257 | -1 466 | 129 | -1 337 ||development | | | | | | ||expenses 3) | | | | | | |--------------------------------------------------------------------------------|% of net sales | 14.1 | | 12.8 | 12.0 | | 10.9|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Selling and | -920 | 98 | -822 | -1 068 | 101 | -967 ||marketing | | | | | | ||expenses 4) | | | | | | |--------------------------------------------------------------------------------|% of net sales | 9.4 | | 8.4 | 8.7 | | 7.9|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Administrative | -267 | 16 | -251 | -293 | 27 | -266 ||and general | | | | | | ||expenses 5) | | | | | | |--------------------------------------------------------------------------------|% of net sales | 2.7 | | 2.6 | 2.4 | | 2.2|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Other income and | -914 | 908 | -6 | -63 | 17 | -46 ||expenses 6) | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Operating profit | -426 | 1 167 | 741 | 1 469 | 287 | 1 756|--------------------------------------------------------------------------------|% of net sales | -4.3 | | 7.6 | 12.0 | | 14.3|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Share of results | 5 | | 5 | -2 | | -2 || ofassociated | | | | | | ||companies | | | | | | |--------------------------------------------------------------------------------|Financial income | -48 | | -48 | -57 | | -57 ||and expenses | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Profit before | -469 | 1 167 | 698 | 1 410 | 287 | 1 697 ||tax | | | | | | |--------------------------------------------------------------------------------|Tax | -444 | 348 | -96 | -355 | -89 | -444|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Profit | -913 | 1 515 | 602 | 1 055 | 198 | 1 253|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Profit | -559 | 1 193 | 634 | 1 087 | 132 | 1 219 ||attributable to | | | | | | ||equity holders | | | | | | || ofthe parent | | | | | | |--------------------------------------------------------------------------------|Profit | -354 | 322 | -32 | -32 | 66 | 34 ||attributable to | | | | | | ||minority | | | | | | ||interests | | | | | | |--------------------------------------------------------------------------------|| -913 | 1 515 | 602 | 1 055 | 198 | 1 253|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Earnings per | | | | | | ||share, EUR (for | | | | | | ||profit | | | | | | ||attributable to | | | | | | ||the equity | | | | | | ||holders of the | | | | | | ||parent) | | | | | | |--------------------------------------------------------------------------------|Basic | -0.15 | 0.32 | 0.17 | 0.29 | 0.04 | 0.33|--------------------------------------------------------------------------------|Diluted | -0.15 | 0.32 | 0.17 | 0.29 | 0.04 | 0.33|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Average number | | | | | | || ofshares | | | | | | || (1000 shares) | | | | | | |--------------------------------------------------------------------------------|Basic | 3707535 | | 3707535 | 3700704 | | 3700704|--------------------------------------------------------------------------------|Diluted | 3714202 | | 3714202 | 3736440 | | 3736440|--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Depreciation and | 428 | -230 | 198 | 490 | -228 | 262 ||amortization, | | | | | | ||total | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|Share-based | 15 | - | 15 | 31 | - | 31 ||compensation | | | | | | ||expense, total | | | | | | |--------------------------------------------------------------------------------|| | | | | | |--------------------------------------------------------------------------------|1) Deferred revenue related to acquisitions of EUR 2 million in Q3/08. |--------------------------------------------------------------------------------|2) Restructuring charges of EUR 16 million in Q3/09 and EUR 11 million in ||Q3/08. |--------------------------------------------------------------------------------|3) Reversal of restructuring charges of EUR 1 million and amortization of ||acquired intangible assets of EUR 130 million in Q3/09. Restructuring ||charges of EUR 3 million and amortization of acquired intangible assets of ||EUR 126 million in Q3/08. |--------------------------------------------------------------------------------|4) Reversal of restructuring charges of EUR 2 million and amortization of ||acquired intangible assets of EUR 100 million in Q3/09. Restructuring ||charges of 2 million and amortization of acquired intangible assets of EUR || 99million in Q3/08. |--------------------------------------------------------------------------------|5) Restructuring charges of EUR 16 million in Q3/09 and EUR 27 million in ||Q3/08. |--------------------------------------------------------------------------------|6) Impairment of goodwill of EUR 908 million in Q3/09. Restructuring charges || ofEUR 16 million and amortization of acquired intangibles of EUR 1 million || inQ3/08. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|CONSOLIDATED INCOME STATEMENT, IFRS, EUR million || |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| 7-9/2009 | 7-9/2008 | 1-9/2009 | 1-9/2008 | 1-12/2008|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Net sales | 9 810 | 12 237 | 28 996 | 38 048 | 50 710|--------------------------------------------------------------------------------|Cost of sales | -6 749 | -7 878 | -19 805 | -24 738 | -33 337|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Gross profit | 3 061 | 4 359 | 9 191 | 13 310 | 17 373|--------------------------------------------------------------------------------|Research and | -1 386 | -1 466 | -4 344 | -4 237 | -5 968 ||development | | | | | ||expenses | | | | | |--------------------------------------------------------------------------------|Selling and | -920 | -1 068 | -2 885 | -3 093 | -4 380 ||marketing | | | | | ||expenses | | | | | |--------------------------------------------------------------------------------|Administrative | -267 | -293 | -851 | -939 | -1 284 ||and general | | | | | ||expenses | | | | | |--------------------------------------------------------------------------------|Impairment of | -908 | - | -908 | - | - ||goodwill | | | | | |--------------------------------------------------------------------------------|Other income | 40 | 102 | 239 | 266 | 420|--------------------------------------------------------------------------------|Other expenses | -46 | -165 | -386 | -833 | -1 195|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Operating | -426 | 1 469 | 56 | 4 474 | 4 966 ||profit | | | | | |--------------------------------------------------------------------------------|Share of | 5 | -2 | 29 | 6 | 6 ||results of | | | | | ||associated | | | | | ||companies | | | | | |--------------------------------------------------------------------------------|Financial | -48 | -57 | -186 | 14 | -2 ||income and | | | | | ||expenses | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Profit before | -469 | 1 410 | -101 | 4 494 | 4 970 ||tax | | | | | |--------------------------------------------------------------------------------|Tax | -444 | -355 | -521 | -1 156 | -1 081|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Profit | -913 | 1 055 | -622 | 3 338 | 3 889|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Profit | -559 | 1 087 | -57 | 3 412 | 3 988 ||attributable | | | | | || toequity | | | | | ||holders of the | | | | | ||parent | | | | | |--------------------------------------------------------------------------------|Profit | -354 | -32 | -565 | -74 | -99 ||attributable | | | | | || tominority | | | | | ||interests | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------| | -913 | 1 055 | -622 | 3 338 | 3 889|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Earnings per | | | | | ||share, EUR | | | | | |--------------------------------------------------------------------------------|(for profit attributable | | | | || tothe equity holders | | | | || ofthe parent) | | | | |--------------------------------------------------------------------------------|Basic | -0.15 | 0.29 | -0.02 | 0.91 | 1.07|--------------------------------------------------------------------------------|Diluted | -0.15 | 0.29 | -0.02 | 0.90 | 1.05|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Average number of shares | | | | || (1000 shares) | | | | |--------------------------------------------------------------------------------|Basic | 3 707 535 | 3 700 704 | 3 704 106 | 3 759 091 | 3 743 622|--------------------------------------------------------------------------------|Diluted | 3 714 202 | 3 736 440 | 3 721 107 | 3 802 880 | 3 780 363|--------------------------------------------------------------------------------|| | | | | |--------------------------------------------------------------------------------|Depreciation | 428 | 490 | 1 333 | 1 171 | 1 617 ||and | | | | | ||amortization, | | | | | ||total | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Share-based | 15 | 31 | -1 | 127 | 67 ||compensation | | | | | ||expense, total | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS, EUR million |--------------------------------------------------------------------------------|| 7-9/200 | 7-9/2008 | 1-9/200 | 1-9/2008 | 1-12/200 || | 9 | | 9 | | 8|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Profit | -913 | 1 055 | -622 | 3 338 | 3 889|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Other comprehensive | | | | | ||income | | | | | |--------------------------------------------------------------------------------|Tax benefit on stock | - | 4 | - | 4 | 4 ||options exercised | | | | | |--------------------------------------------------------------------------------|Excess tax benefit on | -1 | -22 | -14 | -122 | -128 ||share-based | | | | | ||compensation | | | | | |--------------------------------------------------------------------------------|Translation differences | -405 | 471 | -566 | 422 | 595|--------------------------------------------------------------------------------|Net investment hedge | 74 | -67 | 108 | -41 | -123 ||gains/losses | | | | | |--------------------------------------------------------------------------------|Cash flow hedges | 398 | 189 | 110 | -116 | -40|--------------------------------------------------------------------------------|Available-for-sale | 9 | 11 | -3 | 29 | -15 ||investments | | | | | |--------------------------------------------------------------------------------|Other | - | 98 | -12 | 65 | 28 ||increase/decrease, net | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Income tax related to | -128 | -26 | -68 | 45 | 58 ||components of other | | | | | ||comprehensive income | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Other comprehensive | -53 | 658 | -445 | 286 | 379 ||income, net of tax | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Total comprehensive | -966 | 1 713 | -1 067 | 3 624 | 4 268 ||income | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Total comprehensive | | | | | ||income attributable to | | | | | |--------------------------------------------------------------------------------|equity holders of the | -644 | 1 835 | -545 | 3 790 | 4 459 ||parent | | | | | |--------------------------------------------------------------------------------|minority interests | -322 | -122 | -522 | -166 | -191|--------------------------------------------------------------------------------|| -966 | 1 713 | -1 067 | 3 624 | 4 268|-------------------------------------------------------------------------------- --------------------------------------------------------------------------------|CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS, EUR million (unaudited) |----------------------------------------------------------------------------------------------------------------------------------------------------------------|ASSETS | 30.09.2009 | 30.09.2008 | 31.12.2008|--------------------------------------------------------------------------------|Non-current assets | | | |--------------------------------------------------------------------------------|Capitalized development costs | 174 | 328 | 244|--------------------------------------------------------------------------------|Goodwill | 5 189 | 5 577 | 6 257|--------------------------------------------------------------------------------|Other intangible assets | 3 013 | 4 117 | 3 913|--------------------------------------------------------------------------------|Property, plant and equipment | 1 930 | 2 047 | 2 090|--------------------------------------------------------------------------------|Investments in associated | 71 | 335 | 96 ||companies | | | |--------------------------------------------------------------------------------|Available-for-sale investments | 495 | 492 | 512|--------------------------------------------------------------------------------|Deferred tax assets | 1 581 | 1 904 | 1 963|--------------------------------------------------------------------------------|Long-term loans receivable | 34 | 40 | 27|--------------------------------------------------------------------------------|Other non-current assets | 8 | 20 | 10|--------------------------------------------------------------------------------|| 12 495 | 14 860 | 15 112|--------------------------------------------------------------------------------|Current assets | | | |--------------------------------------------------------------------------------|Inventories | 2 034 | 3 246 | 2 533|--------------------------------------------------------------------------------|Accounts receivable | 8 263 | 10 772 | 9 444|--------------------------------------------------------------------------------|Prepaid expenses and accrued | 4 676 | 3 741 | 4 538 ||income | | | |--------------------------------------------------------------------------------|Current portion of long-term | 13 | 100 | 101 ||loans receivable | | | |--------------------------------------------------------------------------------|Other financial assets | 461 | 325 | 1 034|--------------------------------------------------------------------------------|Investments at fair value | 688 | - | - ||through profit and loss, liquid | | | ||assets | | | |--------------------------------------------------------------------------------|Available-for-sale investments, | 1 770 | 1 466 | 1 272 ||liquid assets | | | |--------------------------------------------------------------------------------|Available-for-sale investments, | 3 520 | 4 040 | 3 842 ||cash equivalents | | | |--------------------------------------------------------------------------------|Bank and cash | 1 454 | 1 726 | 1 706|--------------------------------------------------------------------------------|| 22 879 | 25 416 | 24 470|--------------------------------------------------------------------------------|Total assets | 35 374 | 40 276 | 39 582|----------------------------------------------------------------------------------------------------------------------------------------------------------------|SHAREHOLDERS' EQUITY AND | | | ||LIABILITIES | | | |--------------------------------------------------------------------------------|Capital and reserves | | | ||attributable to equity holders | | | || ofthe parent | | | |--------------------------------------------------------------------------------|Share capital | 246 | 246 | 246|--------------------------------------------------------------------------------|Share issue premium | 274 | 533 | 442|--------------------------------------------------------------------------------|Treasury shares | -694 | -1 919 | -1 881|--------------------------------------------------------------------------------|Translation differences | -134 | 213 | 341|--------------------------------------------------------------------------------|Fair value and other reserves | 72 | 51 | 62|--------------------------------------------------------------------------------|Reserve for invested | 3 176 | 3 321 | 3 306 ||non-restricted equity | | | |--------------------------------------------------------------------------------|Retained earnings | 9 175 | 11 145 | 11 692|--------------------------------------------------------------------------------|| 12 115 | 13 590 | 14 208|--------------------------------------------------------------------------------|Minority interests | 1 762 | 2 355 | 2 302|--------------------------------------------------------------------------------|Total equity | 13 877 | 15 945 | 16 510|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Non-current liabilities | | | |--------------------------------------------------------------------------------|Long-term interest-bearing | 4 447 | 174 | 861 ||liabilities | | | |--------------------------------------------------------------------------------|Deferred tax liabilities | 1 365 | 1 797 | 1 787|--------------------------------------------------------------------------------|Other long-term liabilities | 64 | 159 | 69|--------------------------------------------------------------------------------|| 5 876 | 2 130 | 2 717|--------------------------------------------------------------------------------|Current liabilities | | | |--------------------------------------------------------------------------------|Current portion of long-term | 14 | 62 | 13 ||loans | | | |--------------------------------------------------------------------------------|Short-term borrowing | 838 | 4 050 | 3 578|--------------------------------------------------------------------------------|Other financial liabilities | 139 | 526 | 924|--------------------------------------------------------------------------------|Accounts payable | 5 066 | 6 369 | 5 225|--------------------------------------------------------------------------------|Accrued expenses | 6 567 | 7 686 | 7 023|--------------------------------------------------------------------------------|Provisions | 2 997 | 3 508 | 3 592|--------------------------------------------------------------------------------|| 15 621 | 22 201 | 20 355|--------------------------------------------------------------------------------|Total shareholders' equity and | 35 374 | 40 276 | 39 582 ||liabilities | | | |--------------------------------------------------------------------------------|Interest-bearing liabilities | 5 299 | 4 286 | 4 452|--------------------------------------------------------------------------------|Shareholders' equity per share, | 3.27 | 3.68 | 3.84 ||EUR | | | |--------------------------------------------------------------------------------|Number of shares (1 000 shares) | 3 707 576 | 3 696 490 | 3 697 872 || 1)| | | |--------------------------------------------------------------------------------|1) Shares owned by Group companies are excluded. |----------------------------------------------------------------------------------------------------------------------------------------------------------------|CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| 1-9/2009 | 1-9/2008 | 1-12/2008|--------------------------------------------------------------------------------|Cash flow from operating activities | | | |--------------------------------------------------------------------------------|Profit attributable to equity holders | -57 | 3 412 | 3 988 || ofthe parent | | | |--------------------------------------------------------------------------------|Adjustments, total | 2 603 | 2 947 | 3 469|--------------------------------------------------------------------------------|Change in net working capital | 587 | -1 548 | -2 546|--------------------------------------------------------------------------------|Cash generated from operations | 3 133 | 4 811 | 4 911|--------------------------------------------------------------------------------|Interest received | 93 | 341 | 416|--------------------------------------------------------------------------------|Interest paid | -177 | -86 | -155|--------------------------------------------------------------------------------|Other financial income and expenses, | -513 | 216 | -195 ||net | | | |--------------------------------------------------------------------------------|Income taxes paid | -824 | -1 786 | -1 780|--------------------------------------------------------------------------------|Net cash from operating activities | 1 712 | 3 496 | 3 197|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Cash flow from investing activities | | | |--------------------------------------------------------------------------------|Acquisition of Group companies, net of | -25 | -5 463 | -5 962 ||acquired cash | | | |--------------------------------------------------------------------------------|Purchase of current available-for-sale | -1 198 | -595 | -669 ||investments, liquid assets | | | |--------------------------------------------------------------------------------|Purchase of investments at fair value | -695 | - | - ||through profit and loss, liquid assets | | | |--------------------------------------------------------------------------------|Purchase of non-current | -61 | -49 | -121 ||available-for-sale investments | | | |--------------------------------------------------------------------------------|Purchase of shares in associated | -27 | -15 | -24 ||companies | | | |--------------------------------------------------------------------------------|Additions to capitalized development | -26 | -77 | -131 ||costs | | | |--------------------------------------------------------------------------------|Long-term loans made to customers | - | -54 | -|--------------------------------------------------------------------------------|Proceeds from repayment and sale of | - | 108 | 129 ||long-term loans receivable | | | |--------------------------------------------------------------------------------|Proceeds from (+) / payment of (-) | - | -48 | -1 ||other long-term loans receivable | | | |--------------------------------------------------------------------------------|Proceeds from (+) / payment of (-) | 1 | 49 | -15 ||short-term loans receivable | | | |--------------------------------------------------------------------------------|Capital expenditures | -384 | -665 | -889|--------------------------------------------------------------------------------|Proceeds from disposal of shares in | 39 | 2 | 3 ||associated companies | | | |--------------------------------------------------------------------------------|Proceeds from disposal of businesses | 62 | 61 | 41|--------------------------------------------------------------------------------|Proceeds from maturities and sale of | 690 | 4 184 | 4 664 ||current available-for-sale | | | ||investments, liquid assets | | | |--------------------------------------------------------------------------------|Proceeds from sale of non-current | 10 | 9 | 10 ||available-for-sale investments | | | |--------------------------------------------------------------------------------|Proceeds from sale of fixed assets | 18 | 55 | 54|--------------------------------------------------------------------------------|Dividends received | 2 | 3 | 6|--------------------------------------------------------------------------------|Net cash used in investing activities | -1 594 | -2 495 | -2 905|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Cash flow from financing activities | | | |--------------------------------------------------------------------------------|Proceeds from stock option exercises | - | 51 | 53|--------------------------------------------------------------------------------|Purchase of treasury shares | - | -3 121 | -3 121|--------------------------------------------------------------------------------|Proceeds from long-term borrowings | 3 899 | 14 | 714|--------------------------------------------------------------------------------|Repayment of long-term borrowings | -210 | -33 | -34|--------------------------------------------------------------------------------|Proceeds from (+) / payment of (-) | -2 829 | 3 016 | 2 891 ||short-term borrowings | | | |--------------------------------------------------------------------------------|Dividends paid | -1 520 | -2 010 | -2 048|--------------------------------------------------------------------------------|Net cash used in financing activities | -660 | -2 083 | -1 545|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Foreign exchange adjustment | -32 | -2 | -49|--------------------------------------------------------------------------------|Net increase (+) / decrease (-) in | -574 | -1 084 | -1 302 ||cash and cash equivalents | | | |--------------------------------------------------------------------------------|Cash and cash equivalents at beginning | 5 548 | 6 850 | 6 850 || ofperiod | | | |--------------------------------------------------------------------------------|Cash and cash equivalents at end of | 4 974 | 5 766 | 5 548 ||period | | | |--------------------------------------------------------------------------------|NB: The figures in the consolidated cash flow statement cannot be directly ||traced from the balance sheet without additional information as a result of ||acquisitions and disposals of subsidiaries and net foreign exchange ||differences arising on consolidation. |-------------------------------------------------------------------------------- --------------------------------------------------------------------------------|CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, IFRS, EUR million|--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| Shar | Sha | Tre | Tran | Fair | Rese | Retai | Befo | Mino | Tota || | e | re | asu | slat | valu | rve | ned | re | rity | l || | capi| iss | ry | ion | e | for | earni | mino | inte | equi || | tal | ue | sha | diff | and | inve | ngs | rity | rest | ty || | | pre| res | eren | othe | sted | | | | || | | miu | | ce | r | non- | | | | || | | m | | | rese | rest | | | | || | | | | |rves | rict | | | | || | | | | | | ed | | | | || | | | | | |equi | | | | || | | | | | | ty | | | | |--------------------------------------------------------------------------------|Balance | 246 | 644 | -3 | -163 | 23 | 3 | 13 | 14 | 2 | 17 || at| | | 146 | | | 299 | 870 | 773 | 565 | 338 || Decembe | | | | | | | | | | || r 31, | | | | | | | | | | || 2007 | | | | | | | | | | |--------------------------------------------------------------------------------|Total | - | -11 | - | 376 | 28 | - | 3 499 | 3 | -166 | 3 ||compreh | | 3 | | | | | | 790 | | 624 ||ensive | | | | | | | | | | ||income | | | | | | | | | | |--------------------------------------------------------------------------------|Stock | | | | | | 51 | | 51 | | 51 ||options | | | | | | | | | | ||exercis | | | | | | | | | | || ed| | | | | | | | | | |--------------------------------------------------------------------------------|Stock | | 1 | | | | | | 1 | | 1 ||options | | | | | | | | | | ||exercis | | | | | | | | | | || ed| | | | | | | | | | || related | | | | | | | | | | || to | | | | | | | | | | || acquisi | | | | | | | | | | || tions | | | | | | | | | | |--------------------------------------------------------------------------------|Share-b | | 132 | | | | | | 132 | | 132 ||ased | | | | | | | | | | ||compens | | | | | | | | | | ||ation | | | | | | | | | | |--------------------------------------------------------------------------------|Settlem | | -15 | 116 | | | -29 | | -63 | | -63 ||ent of | | 0 | | | | | | | | ||perform | | | | | | | | | | ||ance | | | | | | | | | | ||shares | | | | | | | | | | |--------------------------------------------------------------------------------|Acquisi | | | -3 | | | | | -3 | | -3 ||tion of | | | 123 | | | | | 123 | | 123 ||treasur | | | | | | | | | | || y | | | | | | | | | | || shares | | | | | | | | | | |--------------------------------------------------------------------------------|Reissua | | | 2 | | | | | 2 | | 2 ||nce of | | | | | | | | | | ||treasur | | | | | | | | | | || y | | | | | | | | | | || shares | | | | | | | | | | |--------------------------------------------------------------------------------|Cancell | | | 4 | | | | -4 | - | | - ||ation | | | 232 | | | | 232 | | | || of| | | | | | | | | | || treasur | | | | | | | | | | || y | | | | | | | | | | || shares | | | | | | | | | | |--------------------------------------------------------------------------------|Dividen | | | | | | | -1 | -1 | -11 | -2 || d | | | | | | | 992 | 992 | | 003|--------------------------------------------------------------------------------|Acquisi | | | | | | | | - | -33 | -33 ||tions | | | | | | | | | | ||and | | | | | | | | | | ||other | | | | | | | | | | ||changes | | | | | | | | | | || in| | | | | | | | | | || minorit | | | | | | | | | | || y | | | | | | | | | | || interes | | | | | | | | | | || ts | | | | | | | | | | |--------------------------------------------------------------------------------|Vested | | 19 | | | | | | 19 | | 19 ||portion | | | | | | | | | | || of| | | | | | | | | | || share-b | | | | | | | | | | || ased | | | | | | | | | | || payment | | | | | | | | | | || awards | | | | | | | | | | || related | | | | | | | | | | || to | | | | | | | | | | || acquisi | | | | | | | | | | || tions | | | | | | | | | | |--------------------------------------------------------------------------------|Balance | 246 | 533 | -1 | 213 | 51 | 3 | 11 | 13 | 2 | 15 || at| | | 919 | | | 321 | 145 | 590 | 355 | 945 || Septemb | | | | | | | | | | || er 30, | | | | | | | | | | || 2008 | | | | | | | | | | |--------------------------------------------------------------------------------|Balance | 246 | 442 | -1 | 341 | 62 | 3 | 11 | 14 | 2 | 16 || at| | | 881 | | | 306 | 692 | 208 | 302 | 510 || Decembe | | | | | | | | | | || r 31, | | | | | | | | | | || 2008 | | | | | | | | | | |--------------------------------------------------------------------------------|Total | - | -13 | - | -475 | 10 | - | -67 | -545 | -522 | -1 ||compreh | | | | | | | | | | 067 ||ensive | | | | | | | | | | ||income | | | | | | | | | | |--------------------------------------------------------------------------------|Stock | | -1 | | | | | | -1 | | -1 ||options | | | | | | | | | | ||exercis | | | | | | | | | | || ed| | | | | | | | | | || related | | | | | | | | | | || to | | | | | | | | | | || acquisi | | | | | | | | | | || tions | | | | | | | | | | |--------------------------------------------------------------------------------|Share-b | | 1 | | | | | | 1 | | 1 ||ased | | | | | | | | | | ||compens | | | | | | | | | | ||ation | | | | | | | | | | |--------------------------------------------------------------------------------|Settlem | | -15 | 217 | | | -130 | | -68 | | -68 ||ent of | | 5 | | | | | | | | ||perform | | | | | | | | | | ||ance | | | | | | | | | | ||shares | | | | | | | | | | |--------------------------------------------------------------------------------|Reissua | | | 1 | | | | | 1 | | 1 ||nce of | | | | | | | | | | ||treasur | | | | | | | | | | || y | | | | | | | | | | || shares | | | | | | | | | | |--------------------------------------------------------------------------------|Cancell | | | 969 | | | | -969 | - | | - ||ation | | | | | | | | | | || of| | | | | | | | | | || treasur | | | | | | | | | | || y | | | | | | | | | | || shares | | | | | | | | | | |--------------------------------------------------------------------------------|Dividen | | | | | | | -1 | -1 | -18 | -1 || d | | | | | | | 481 | 481 | | 499|--------------------------------------------------------------------------------|Balance | 246 | 274 | -69 | -134 | 72 | 3 | 9 175 | 12 | 1 | 13 || at| | | 4 | | | 176 | | 115 | 762 | 877 || Septemb | | | | | | | | | | || er 30, | | | | | | | | | | || 2009 | | | | | | | | | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|COMMITMENTS AND CONTINGENCIES, EUR million |--------------------------------------------------------------------------------|(unaudited) |--------------------------------------------------------------------------------|| 30.09.2009 | GROUP | 31.12.2008 || | | 30.09.200 | || | | 8 | |----------------------------------------------------------------------------------------------------------------------------------------------------------------|Collateral for own commitments | | | |--------------------------------------------------------------------------------|Property under mortgages | 18 | 18 | 18|--------------------------------------------------------------------------------|Assets pledged | 10 | 11 | 11|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Contingent liabilities on behalf of | | | ||Group companies | | | |--------------------------------------------------------------------------------|Guarantees for loans | - | - | -|--------------------------------------------------------------------------------|Other guarantees | 2 581 | 2 900 | 2 896|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Contingent liabilities on behalf of | | | ||other companies | | | |--------------------------------------------------------------------------------|Financial guarantees on behalf of | 1 | 155 | 2 ||third parties | | | |--------------------------------------------------------------------------------|Other guarantees | 3 | 6 | 1|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Leasing obligations | 1 263 | 1 254 | 1 156|----------------------------------------------------------------------------------------------------------------------------------------------------------------|Financing commitments | | | |--------------------------------------------------------------------------------|Customer finance commitments | 35 | 289 | 197|--------------------------------------------------------------------------------|Venture fund commitments | 324 | 489 | 467|----------------------------------------------------------------------------------------------------------------------------------------------------------------1 EUR = 1.459 USD The unaudited, consolidated interim financial statements of Nokia have been prepared in accordance with the International Financial Reporting Standards ('IFRS'). The same accounting policies and methods of computation are followed inthe interim financial statements as were followed in the consolidated financial statements of Nokia for 2008. FORWARD-LOOKING STATEMENTS Itshould be noted that certain statements herein which are not historical facts, including, without limitation, those regarding: A) the timing of product, services and solution deliveries; B) our ability to develop, implementand commercialize new products, services, solutions and technologies; C) our ability to develop and grow our consumer Internet services business; D) expectations regarding market developments and structural changes; E) expectations regarding our mobile device volumes, market share, prices and margins; F) expectations and targets for our results of operations; G) the outcome of pending and threatened litigation; H) expectations regarding the successful completion of contemplated acquisitions on a timely basis and our ability to achieve the set targets upon the completion of such acquisitions; andI)statements preceded by 'believe,' 'expect,' 'anticipate,' 'foresee,' 'target,' 'estimate,' 'designed,' 'plans,' 'will' or similar expressions are forward-looking statements. These statements are based on management's best assumptions and beliefs in light of the information currently available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors that could cause these differences include, but are not limited to: 1) the deteriorating global economic conditions and related financial crisis and their impact on us, our customers and end-users of our products, services and solutions, our suppliers and collaborative partners; 2) the development of the mobile and fixed communications industry, as well as the growth and profitability of the new market segments that we target and our ability to successfully develop or acquire and market products, services and solutions in those segments; 3) the intensity of competition in the mobile and fixed communications industry andourability to maintain or improve our market position or respond successfully to changes in the competitive landscape; 4) competitiveness of our product, services and solutions portfolio; 5) our ability to successfully manage costs; 6)exchange rate fluctuations, including, in particular, fluctuations between theeuro, which is our reporting currency, and the US dollar, the Japanese yen, theChinese yuan and the UK pound sterling, as well as certain other currencies; 7) the success, financial condition and performance of our suppliers, collaboration partners and customers; 8) our ability to source sufficient amounts of fully functional components, sub-assemblies, software andcontent without interruption and at acceptable prices; 9) the impact of changes intechnology and our ability to develop or otherwise acquire and timely and successfully commercialize complex technologies as required by the market; 10) the occurrence of any actual or even alleged defects or other quality, safetyorsecurity issues in our products, services and solutions; 11) the impact of changes in government policies, trade policies, laws or regulations orpoliticalturmoil in countries where we do business; 12) our success incollaboration arrangements with others relating to development of technologiesor new products, services and solutions; 13) our ability to manageefficiently our manufacturing and logistics, as well as to ensure the quality,safety, security and timely delivery of our products, services and solutions; 14)inventory management risks resulting from shifts in market demand; 15) ourability to protect the complex technologies, which we or others develop orthat we license,from claims that we have infringed third parties' intellectualproperty rights, as well as our unrestricted use on commercially acceptable termsof certain technologies in our products, services and solutions; 16) ourability to protectnumerous Nokia, NAVTEQ and Nokia Siemens Networks patented,standardized or proprietary technologies from third-party infringement oractions to invalidate the intellectual property rights of these technologies; 17)any disruption to information technology systems and networks that ouroperations rely on; 18) developments under large, multi-year contracts or inrelation to major customers; 19) the management of our customer financingexposure; 20) our ability to retain, motivate, develop and recruitappropriately skilled employees; 21) whether, as a result ofinvestigations into alleged violations oflaw by some former employees of SiemensAG ('Siemens'), government authorities or others take further actions againstSiemens and/or its employees that may involve and affect the carrier-relatedassets and employees transferred by Siemens to Nokia Siemens Networks, orthere may be undetected additional violations that may have occurred priorto the transfer, or violations that may have occurred after the transfer, of suchassets and employees that could resultin additional actions by governmentauthorities; 22) any impairment of Nokia Siemens Networks customerrelationships resulting from the ongoing government investigations involving theSiemens carrier-related operations transferred to Nokia Siemens Networks; 23)unfavorable outcome of litigations; 24) allegations of possible health risks fromelectromagnetic fields generated by base stations and mobile devices and lawsuitsrelated to them, regardless of merit; as well asthe risk factors specified onpages 11-28 of Nokia's annual report on Form 20-F for the year ended December 31,2008 under Item 3D. 'Risk Factors.' Other unknown or unpredictable factorsor underlying assumptions subsequently proving to be incorrect could cause actualresults to differ materially from those in the forward-looking statements. Nokiadoes not undertake any obligation to publicly update or reviseforward-looking statements, whether as a result of newinformation, future eventsor otherwise, except to the extent legally required. Nokia, Helsinki - October 15,2009 Media and Investor Contacts: Corporate Communications, tel. +358 7180 34900 Investor Relations Europe, tel. +358 7180 34289 Investor Relations US, tel. +1 914 368 0555 -Nokia plans to publish its fourth quarter 2009 results on January 28, 2010. -Nokia plans to report its other quarterly results in 2010 on the following dates: Q1 on April 22, Q2 on July 22 and Q3 on October 21, 2010. -Nokia plans to publish its annual report, Nokia in 2009, in week 12 of 2010 -Nokia's Annual General Meeting is scheduled to be held on May 6, 2010. www.nokia.comNews Source: NASDAQ OMX 15.10.2009 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: EnglishCompany: Nokia FinlandPhone: Fax: E-mail: Internet: ISIN: FI0009000681Category Code: QRTLSE Ticker: 0HAFSequence Number: 301Time of Receipt: Oct 15, 2009 12:00:00 End of Announcement DGAP News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.
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