20th Oct 2011 11:01
Nokia / 3rd Quarter Results 20.10.2011 12:01 Dissemination of a UK Regulatory Announcement, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Strong operating cash flow and liquidity position with net cash of EUR 5.1billion at end of Q3 2011 Nokia CorporationInterim reportOctober 20, 2011 at 13.00 (CET+1) This is a summary of the third quarter 2011 interim report published today. Thecomplete third quarter 2011 interim report with tables is available athttp://www.nokia.com/results/Nokia_results2011Q3e.pdf. Investors should notrely on summaries of our interim reports only, but should review the completeinterim reports with tables. Reported and Non-IFRS third quarter 2011 results1,2--------------------------------------------------------------------------------- EUR million Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change----------------------------------------------------------------------------------------------------------------------------------------------------------------Nokia Net sales 8 980 10 270 -13% 9 275 -3%Operating profit -71 403 -487 Operating profit (non-IFRS) 252 634 -60% 391 -36%EPS, EUR diluted -0.02 0.14 -0.10 EPS, EUR diluted (non-IFRS)3 0.03 0.14 -79% 0.06 -50%Net cash from 852 439 94% -176 operating activities Net cash and other 5 067 4 375 16% 3 891 30%liquid assets4 ----------------------------------------------------------------------------------------------------------------------------------------------------------------Devices & Services5 Net sales 5 392 7 173 -25% 5 467 -1%Smart Devices net sales 2 206 3 612 -39% 2 368 -7%Mobile Phones net sales 2 903 3 364 -14% 2 551 14%Mobile device 106.6 110.4 -3% 88.5 20%volume (million units) Smart Devices 16.8 27.1 -38% 16.7 1%volume (million units) Mobile Phones 89.8 83.3 8% 71.8 25%volume (million units) Mobile device ASP6 51 65 -22% 62 -18%Smart Devices ASP6 131 133 -2% 142 -8%Mobile Phones ASP6 32 40 -20% 36 -11%Operating profit 132 807 -84% -247 Operating profit (non-IFRS) 222 750 -70% 369 -40%Operating margin % 2.4% 11.3% -4.5% Operating margin % (non-IFRS) 4.1% 10.5% 6.7% ----------------------------------------------------------------------------------------------------------------------------------------------------------------NAVTEQ Net sales 241 252 -4% 245 -2%Operating profit -45 -48 -58 Operating profit (non-IFRS) 68 74 -8% 53 28%Operating margin % -18.7% -19.0% -23.7% Operating margin % (non-IFRS) 28.2% 29.4% 21.5% ----------------------------------------------------------------------------------------------------------------------------------------------------------------Nokia Siemens Networks7 Net sales 3 413 2 943 16% 3 642 -6%Operating profit -114 -282 -111 Operating profit (non-IFRS) 6 -116 40 -85%Operating margin % -3.3% -9.6% -3.0% Operating margin % (non-IFRS) 0.2% -3.9% 1.1% -------------------------------------------------------------------------------- Note 1 relating to January-September 2011 results: Nokia reported net saleswere EUR 28 654 million and reported earnings per share (diluted) were EUR-0.02 for the period from January 1 to September 30, 2011. Further informationabout the results for the period from January 1 to September 30, 2011 can befound on pages 15, 18, 26, 27 and 29 of the complete Q3 2011 interim reportwith tables. Note 2 relating to non-IFRS results: Non-IFRS results exclude special items forall periods. In addition, non-IFRS results exclude intangible assetamortization, 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 informationabout the exclusions from the non-IFRS results may be found in our completeinterim report with tables for Q3 2011 on pages 3-4, 20-22 and 24. Nokiabelieves that these non-IFRS financial measures provide meaningful supplementalinformation to both management and investors regarding Nokia's performance byexcluding the above-described items that may not be indicative of Nokia'sbusiness operating results. These non-IFRS financial measures should not beviewed in isolation or as substitutes to the equivalent IFRS measure(s), butshould be used in conjunction with the most directly comparable IFRS measure(s)in the reported results. A reconciliation of the non-IFRS results to ourreported results for Q3 2011 and Q3 2010 can be found in the tables on pages 17and 20-24 of our complete interim report with tables. A reconciliation of ourQ2 2011 non-IFRS results can be found on pages 17 and 20-24 of our complete Q22011 interim report with tables which was published on July 21, 2011. Note 3 relating to non-IFRS Nokia EPS: Nokia taxes continued to be unfavorablyimpacted by Nokia Siemens Networks taxes as no tax benefits are recognized forcertain Nokia Siemens Networks deferred tax items. In Q3, certain one-quartertax expenses also had an unfavorable impact. If Nokia's estimated long-term taxrate of 26% had been applied, non-IFRS Nokia EPS would have been approximately1.5 Euro cent higher in Q3 2011. Note 4 relating to Nokia net cash and other liquid assets: Calculated as totalcash and other liquid assets less interest-bearing liabilities. Note 5 relating to Devices & Services reporting structure: Effective from April1, 2011, our Devices & Services business has included two operating andreportable segments - Smart Devices, which focuses on smartphones, and MobilePhones, which focuses on mass market mobile devices - as well as Devices &Services Other. Prior period results for each quarter and the full year 2010and Q1 2011 have been regrouped (on an unaudited basis) for comparabilitypurposes according to the new reporting format. The regrouped financialinformation can be accessed at: http://www.nokia.com/investors Note 6 relating to average selling prices (ASP): Mobile device ASP representstotal Devices & Services net sales (Smart Devices net sales, Mobile Phones netsales, and Devices & Services Other net sales) divided by total Devices &Services volumes. Devices & Services Other net sales includes net sales ofNokia's luxury phone business Vertu and spare parts, as well as intellectualproperty royalty income. Smart Devices ASP represents Smart Devices net salesdivided by Smart Devices volumes. Mobile Phones ASP represents Mobile Phonesnet sales divided by Mobile Phones volumes. Note 7 relating to the acquired Motorola Solutions networks assets: NokiaSiemens Networks completed the acquisition of Motorola Solutions' networksassets on April 30, 2011. Accordingly, the results of Nokia Siemens Networksfor the third quarter 2011 are not directly comparable to its results for priorperiods. STEPHEN ELOP, NOKIA CEO:I am encouraged by the progress we made during Q3, while noting that there arestill many important steps ahead in our journey of transformation. With eachstep, you will see us methodically implement our strategy, pursuing steadyimprovement through a period that has known transition risks, while alsodealing with the various unexpected ups and downs that typify the dynamicnature of our industry. During the third quarter, we continued to take theaction necessary to drive the structural changes required for Nokia's long-termsuccess. Our results in Q3 indicate that our sales execution and channel inventorysituation have improved. From a product standpoint, our overall Mobile Phonesportfolio performed well. We shipped approximately 18 million dual SIM devicesin Q3, and in markets such as India where dual SIM is pervasive, we gainedmarket share. We also strengthened our Smart Devices line up in Q3, with thelaunch of our first smartphones running Symbian Belle, which improves the userexperience and strengthens the competitiveness of our product portfolio. Additionally, I am encouraged by our progress around the first Nokia experiencewith Windows Phone, and we look forward to bringing the experience to consumersin select countries later this quarter. We then intend to systematicallyincrease the number of countries and launch partners during the course of 2012. To position Nokia for the future, we are driving fundamental changes in how weoperate. In addition to the changes announced in April, in Q3 we announcedplans for structural changes in manufacturing, Location & Commerce andsupporting functions. The planned changes we have initiated are difficult butnecessary in order to align the company to our strategy. In summary, in Q3 we started to see signs of early improvement in many areas,but we must continue to focus on consistent progress so that we can move Nokiathrough the transformation and deliver superior results to our shareholders. NOKIA OUTLOOK- Nokia expects its non-IFRS Devices & Services operating margin in the fourthquarter 2011 to be between 1% and 5%. This outlook is based on our expectationsregarding a number of factors, including: - competitive industry dynamics;- an expected sequential increase in Devices & Services net sales;- an expected greater-than-normal seasonal increase in Devices & Servicesoperating expenses as Nokia launches new products; - timing, ramp-up, and consumer demand related to our new products;-availability of components from our suppliers; and- the macroeconomic environment. - Nokia continues to target to reduce Devices & Services non-IFRS operatingexpenses by more than EUR 1 billion for the full year 2013, compared to thefull year 2010 Devices & Services non-IFRS operating expenses of EUR 5.65billion. - Nokia continues to expect Nokia Group net cash and other liquid assets at theend of 2011 to be above the EUR 3.9 billion balance at the end of the secondquarter 2011. - Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net sales tobe between EUR 3.7 billion and EUR 4.0 billion in the fourth quarter 2011. - Nokia and Nokia Siemens Networks expect the non-IFRS operating margin inNokia Siemens Networks to be between 1% and 4% in the fourth quarter 2011. - Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks'net sales to grow faster than the market in 2011. - Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks'non-IFRS operating margin to be above breakeven in 2011. - Nokia and Nokia Siemens Networks continue to expect Nokia Siemens Networks toreduce its non-IFRS annualized operating expenses and production overheads byEUR 500 million by the end of 2011, compared to the end of 2009. - The outlook relating to Nokia Siemens Networks includes the impact of theacquisition of Motorola Solutions' networks assets. THIRD QUARTER 2011 FINANCIAL HIGHLIGHTS The non-IFRS results exclude: Q3 2011 -- EUR 323 million (net) consisting of:- EUR 26 million restructuring charge and other associated items in NokiaSiemens Networks - EUR 59 million restructuring charge and EUR 54 million associated impairmentsin Devices & Services - EUR 24 million positive Accenture deal closing adjustment in Devices &Services - EUR 94 million of intangible asset amortization and other purchase priceaccounting related items arising from the formation of Nokia Siemens Networksand the acquisition of Motorola Solutions' networks assets - EUR 113 million of intangible asset amortization and other purchase priceaccounting related items arising from the acquisition of NAVTEQ - EUR 1 million of intangible assets amortization and other purchase pricerelated items arising from the acquisition of Novarra, MetaCarta and Motally inDevices & Services Q3 2010 -- EUR 231 million (net) consisting of:- EUR 61 million prior years-related refund of customs duties- EUR 49 million restructuring charge and other associated items in NokiaSiemens Networks - EUR 117 million of intangible asset amortization and other purchase priceaccounting related items arising from the formation of Nokia Siemens Networks - EUR 122 million of intangible asset amortization and other purchase priceaccounting related items arising from the acquisition of NAVTEQ - EUR 4 million of intangible assets amortization and other purchase pricerelated items arising from the acquisition of OZ Communications, Novarra,MetaCarta and Motally in Devices & Services Q3 2010 taxes - EUR 127 million prior years-related non-cash benefit from Q32010 changes in dividend withholding tax legislation in certain jurisdictionswith retroactive effects Q2 2011 - EUR 878 million consisting of:- EUR 68 million restructuring charge and other associated items in NokiaSiemens Networks - EUR 297 million restructuring charge in Devices & Services- EUR 275 million accrued Accenture deal consideration in Devices & Services- EUR 41 million impairment of shares in an associated company in Devices &Services - EUR 83 million of intangible asset amortization and other purchase priceaccounting related items arising from the formation of Nokia Siemens Networksand the acquisition of Motorola's networks assets - EUR 111 million of intangible asset amortization and other purchase priceaccounting related items arising from the acquisition of NAVTEQ - EUR 3 million of intangible assets amortization and other purchase pricerelated items arising from the acquisition of OZ Communications, Novarra andMotally in Devices & Services Non-IFRS results exclude special items for all periods. In addition, non-IFRSresults exclude intangible asset amortization, other purchase price accountingrelated items and inventory value adjustments arising from i) the formation ofNokia Siemens Networks and ii) all business acquisitions completed after June30, 2008. Nokia Group The following chart sets out the year-on-year and sequential growth rates inour net sales on a reported basis and at constant currency for the periodsindicated. THIRD QUARTER 2011 NET SALES, REPORTED & CONSTANT CURRENCY1 ------------------------------------------------------------------------------ YoY Change QoQ Change----------------------------------------------------------------------------------------------------------------------------------------------------------Group net sales - reported -13% -3%Group net sales - constant currency1 -10% -3%Devices & Services net sales - reported -25% -1%Devices & Services net sales - constant currency1 -22% -1%NAVTEQ net sales - reported -4% -2%NAVTEQ net sales - constant currency1 1% -2%Nokia Siemens Networks net sales - reported 16% -6%Nokia Siemens Networks net sales - constant currency1 18% -7%----------------------------------------------------------------------------- Note 1: Change in net sales at constant currency excludes the impact of changesin exchange rates in comparison to the Euro, our reporting currency. The following chart sets out Nokia Group's cash flow for the periods indicatedand financial position at the end of the periods indicated, as well as theyear-on-year and sequential growth rates. NOKIA GROUP CASH FLOW AND FINANCIAL POSITION -------------------------------------------------------------------------------------- EUR million Q3/2011 Q3/2010 YoY Change Q2/2011 QoQChange ------------------------------------------------------------------------------------- Net cash from operating activities 852 439 94% -176 ------------------------------------------------------------------------------------- Total cash and other liquid assets 10 809 10 235 6% 9 358 16% ------------------------------------------------------------------------------------- Net cash and other liquid assets 5 067 4 375 16% 3 891 30% ------------------------------------------------------------------------------------- Year-on-year, net cash and other liquid assets increased by EUR 692 millionprimarily due to positive overall net cash from operating activities and a EUR500 million equity investment in Nokia Siemens Networks by Siemens, partiallyoffset by payment of the dividend and cash outflows related to the acquisitionof Motorola Solutions' networks assets and capital expenditures. In the thirdquarter 2011, Nokia and Siemens each provided capital of EUR 500 million toNokia Siemens Networks to further strengthen the company's financial positionand set the stage for strategic flexibility, productivity and innovation inareas such as Mobile Broadband and related services. Sequentially, net cash and other liquid assets increased by EUR 1.2 billionprimarily due to strong net cash from operating activities in Devices &Services which was supported by positive net working capital developments andnet cash inflows from hedging activities. This was partially offset by capitalexpenditures. The positive net working developments were driven by an increasein payables due to higher business activity, a decrease in receivables due to ashift in the geographic mix of our net sales towards regions with shorterpayment terms, partially offset by an increase in inventories due to higherbusiness activity. Additionally, the increase in net cash and other liquidassets was supported by the above mentioned equity investment in Nokia SiemensNetworks by Siemens. Devices & Services Effective from April 1, 2011, our Devices & Services business has included twooperating and reportable segments - Smart Devices, which focuses onsmartphones, and Mobile Phones, which focuses on mass market mobile devices -as well as Devices & Services Other. Prior period results for each quarter andthe full year 2010 and Q1 2011 have been regrouped (on an unaudited basis) forcomparability purposes according to the new reporting format. The regroupedfinancial information can be accessed at: http://www.nokia.com/investors The following chart sets out a summary of the results for our Devices &Services business for the periods indicated, as well as the year-on-year andsequential growth rates. DEVICES & SERVICES RESULTS SUMMARY ---------------------------------------------------------------------------------------------- Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change --------------------------------------------------------------------------------------------- Net sales (EUR millions)1 5 392 7 173 -25% 5467 -1% --------------------------------------------------------------------------------------------- Mobile device volume (million units) 106.6 110.4 -3% 88.5 20% --------------------------------------------------------------------------------------------- Mobile device ASP (EUR) 51 65 -22% 62 -18% --------------------------------------------------------------------------------------------- Non-IFRS gross margin (%) 26.1% 29.0% 31.1% --------------------------------------------------------------------------------------------- Non-IFRS operating expenses (EUR millions) 1 188 1 336 -11% 1329 -11% --------------------------------------------------------------------------------------------- Non-IFRS operating margin (%) 4.1% 10.5% 6.7% --------------------------------------------------------------------------------------------- Note 1: Includes IPR royalty income recognized in Devices & Services Other netsales. Net SalesThe year-on-year and sequential declines in our Devices & Services net salesare discussed below in our operating analysis of our Smart Devices and MobilePhones business units. Our overall Devices & Services net sales, gross andoperating margins in the third quarter 2011 benefited from the recognition ofapproximately EUR 70 million of non-recurring IPR royalty income recognized inDevices & Services Other net sales. Our overall Devices & Services net sales,gross and operating margins in the second quarter 2011 benefited from therecognition of approximately EUR 430 million of IPR royalty income from newcontracts related to the second quarter 2011 and earlier periods recognized inDevices & Services Other net sales. At constant currency, Devices & Servicesnet sales would have decreased 22% year-on-year and 1% sequentially. The following chart sets out the net sales for our Devices & Services businessfor the periods indicated, as well as the year-on-year and sequential growthrates, by geographic area. The IPR royalty income described in the paragraphabove has been allocated to the geographic areas contained in this chart. DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA ------------------------------------------------------------------------EUR million Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change-----------------------------------------------------------------------Europe 1 394 2 289 -39% 1 666 -16%-----------------------------------------------------------------------Middle East & Africa 957 930 3% 988 -3%-----------------------------------------------------------------------Greater China 1 240 1 654 -25% 913 36%-----------------------------------------------------------------------Asia-Pacific 1 197 1 504 -20% 1 085 10%-----------------------------------------------------------------------North America 73 226 -68% 88 -17%-----------------------------------------------------------------------Latin America 531 570 -7% 727 -27%-----------------------------------------------------------------------Total 5 392 7 173 -25% 5 467 -1%----------------------------------------------------------------------- VolumeThe following chart sets out the mobile device volumes for our Devices &Services business for the periods indicated, as well as the year-on-year andsequential growth rates, by geographic area. DEVICES & SERVICES MOBILE DEVICE VOLUMES BY GEOGRAPHIC AREA ------------------------------------------------------------------------million units Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change-----------------------------------------------------------------------Europe 20.7 29.2 -29% 18.4 13%-----------------------------------------------------------------------Middle East & Africa 26.0 18.4 41% 20.5 27%-----------------------------------------------------------------------Greater China 15.9 20.2 -21% 11.3 41%-----------------------------------------------------------------------Asia-Pacific 32.4 27.8 17% 24.5 32%-----------------------------------------------------------------------North America 0.7 3.2 -78% 1.5 -53%-----------------------------------------------------------------------Latin America 10.9 11.6 -6% 12.3 -11%-----------------------------------------------------------------------Total 106.6 110.4 -3% 88.5 20%----------------------------------------------------------------------- On a year-on-year basis, the decline in our total Devices & Services volumes inthe third quarter 2011 was driven by lower Smart Devices volumes which morethan offset the increase in our Mobile Phones volumes. The sequential increase in our total Devices & Services volumes in the thirdquarter 2011 was driven by higher Mobile Phones volumes. It also reflectedhigher sales in the third quarter 2011 following actions taken during thesecond quarter 2011 to create a healthier sales environment by facilitating thereduction of the inventory levels held by distributors and operators. During the third quarter 2011, our overall level of channel inventory continuedto decline slightly and we ended the quarter with our sales channel inventorieswithin our normal range of 4-6 weeks. Average Selling PriceOn a year-on-year basis, the overall decrease in our Devices & Services ASP inthe third quarter 2011 was driven primarily by the lower ASP in Mobile Phonesand, to a lesser extent, Smart Devices, a higher proportion of Mobile Phonessales and the appreciation of the Euro against certain currencies, partiallyoffset by a positive impact from foreign exchange currency hedging and higherIPR royalty income. On a sequential basis, the overall decline in our Devices & Services ASP in thethird quarter 2011 was driven by a product mix shift towards lower priceddevices, lower IPR royalty income and the impact of a full quarter of ourtactical pricing actions across the portfolio initiated in the second quarter2011. Gross MarginOn a year-on-year basis, the decline in our Devices & Services non-IFRS grossmargin in the third quarter 2011 was driven by gross margin declines in bothSmart Devices and Mobile Phones, partially offset by higher IPR royalty income. On a sequential basis, the decline in our Devices & Services non-IFRS grossmargin in the third quarter 2011 was driven primarily by lower IPR royaltyincome, as well as lower gross margins in both Smart Devices and Mobile Phones. Operating ExpensesDevices & Services non-IFRS research and development expenses decreased 16%year-on-year and 12% sequentially due to declines in Smart Devices and Devices& Services Other research and development expenses, partially offset by ayear-on-year increase in Mobile Phones research and development expenses.Devices & Services Other includes common research and development expenses andservices related research and development expenses. The decreases in SmartDevices and Devices & Services Other research and development expenses were dueprimarily to a focus on priority projects and cost controls. The increase inMobile Phones research and development expenses was due primarily toinvestments to accelerate product development to bring new innovations to themarket faster and at lower price-points, partially offset by a focus onpriority projects and cost controls. Devices & Services non-IFRS sales and marketing expenses decreased 7%year-on-year and 13% sequentially driven by lower spending on marketingprograms, and to a lesser degree, by more focused sales programs. Devices & Services non-IFRS administrative and general expenses increased 3%year-on-year and 10% sequentially. On a sequential basis, focus on near-termcost controls continued, with the increase reflecting shifts in expenses fromresearch and development and sales and marketing. In the third quarter 2011, Devices & Services non-IFRS other income and expensehad a slight negative year-on-year impact on profitability and a slightpositive sequential impact. Reported other income and expense was significantlyadversely impacted in the third quarter 2011 primarily as a result ofrestructuring related expenses discussed below, which were recognized inDevices & Services Other. Cost Reduction Activities and Planned Operational AdjustmentsWe are continuing to target to reduce our Devices & Services non-IFRS operatingexpenses by more than EUR 1 billion for the full year 2013, compared to thefull year 2010 Devices & Services non-IFRS operating expenses of EUR 5.65billion. This reduction is expected to come from a variety of different sourcesand initiatives, including a planned reduction in the number of employees andnormal personnel attrition, a reduction in the use of outsourced professionals,reductions in facility costs, and various improvements in efficiencies. Our cost reduction activities include a strategic collaboration with Accentureto outsource Nokia's Symbian software development and support activities toAccenture. Approximately 2 300 Nokia employees were transferred to Accenture aspart of the transaction which was completed on September 30, 2011. At the end of the third quarter 2011, we announced plans to take additionalactions to align our workforce and operations. The measures include the plannedclosure of Nokia's manufacturing facility in Cluj, Romania, which - togetherwith adjustments to supply chain operations - is estimated to impactapproximately 2 200 employees; a plan to shift the focus of Nokia'smanufacturing operations in Salo in Finland, Komarom in Hungary, and Reynosa inMexico towards customer and market-specific software and sales packagecustomization; and a plan to concentrate the development efforts of Location &Commerce in Berlin in Germany, Boston and Chicago in the U.S., and othersupporting sites. The planned changes in Location & Commerce, which include theclosure of its operations in Bonn in Germany and Malvern in the U.S., areestimated to impact approximately 1 300 employees. The planned measures support the execution of our strategy and also target tobring efficiencies and speed to the organization. In line with the companyvalues, Nokia will offer employees affected by the planned reductions acomprehensive support program. Nokia remains committed to supporting itsemployees and the local communities through this difficult change. During the third quarter, Devices & Services recognized net charges of EUR 89million related to restructuring activities, which include restructuringcharges, associated impairments and an Accenture-related deal closingadjustment. As of the end of the third quarter 2011, we have recognizedcumulative charges of EUR 661 million related to restructuring activities.While the total extent of the restructuring activities is still to bedetermined, we currently anticipate cumulative charges in Devices & Services ofaround EUR 900 million before the end of 2012. We also believe total cashoutflows related to our Devices & Services restructuring activities will bebelow the level of the cumulative charges related to these restructuringactivities. Smart Devices The following chart sets out a summary of the results for our Smart Devicesbusiness unit for the periods indicated, as well as the year-on-year andsequential growth rates. SMART DEVICES RESULTS SUMMARY ---------------------------------------------------------------------------------------- Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change --------------------------------------------------------------------------------------- Net sales (EUR millions)1 2 206 3 612 -39% 2 368 -7% --------------------------------------------------------------------------------------- Smart Devices volume (million units) 16.8 27.1 -38% 16.7 1% --------------------------------------------------------------------------------------- Smart Devices ASP (EUR) 131 133 -2% 142 -8% --------------------------------------------------------------------------------------- Gross margin (%) 23.3% 30.5% 25.7% --------------------------------------------------------------------------------------- Operating expenses (EUR millions) 657 773 -15% 752 -13% --------------------------------------------------------------------------------------- Contribution margin (%) -5.9% 9.3% -6.2% --------------------------------------------------------------------------------------- Note 1: Does not include IPR royalty income. IPR royalty income is recognizedin Devices & Services Other net sales. Net SalesThe year-on-year decline in our Smart Devices net sales in the third quarter2011 was primarily due to significantly lower volumes. On a sequential basis,the decrease in our Smart Devices net sales in the third quarter 2011 was dueto the lower ASP. VolumeThe year-on-year decrease in our Smart Device volumes in the third quarter 2011continued to be driven by the strong momentum of competing smartphone platformsrelative to our higher priced Symbian devices, as well as pricing tactics bycertain competitors. On a sequential basis, our virtually flat Smart Devicesvolumes in the third quarter 2011 reflected better demand for our lower pricedSymbian smartphones compared to our higher priced Symbian smartphones. Average Selling PriceThe year-on-year decline in our Smart Devices ASP in the third quarter 2011 wasdriven primarily by our tactical pricing actions due to the competitiveenvironment, partially offset by a product mix shift towards higher pricedSymbian devices and a lower deferral of revenue related to map services sold incombination with devices. Sequentially, the decline in our Smart Devices ASP in the third quarter 2011reflected the impact of a full quarter of our tactical pricing actions acrossthe portfolio initiated in the second quarter 2011, as well as a product mixshift towards lower priced smartphones. Gross MarginThe year-on-year decline in our Smart Devices gross margin in the third quarter2011 was driven primarily by our tactical pricing actions due to thecompetitive environment and higher fixed manufacturing costs per unit due tolower volumes, partially offset by a product mix shift towards higher marginSymbian devices. On a sequential basis, the decline in our Smart Devices gross margin in thethird quarter 2011 was driven primarily by the impact of a full quarter of ourtactical pricing actions across our portfolio initiated in the second quarter2011 which resulted in greater price erosion than cost erosion. Mobile Phones The following chart sets out a summary of the results for our Mobile Phonesbusiness unit for the periods indicated, as well as the year-on-year andsequential growth rates. MOBILE PHONES RESULTS SUMMARY ---------------------------------------------------------------------------------------- Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change --------------------------------------------------------------------------------------- Net sales (EUR millions)1 2 903 3 364 -14% 2 551 14% --------------------------------------------------------------------------------------- Mobile Phones volume (million units) 89.8 83.3 8% 71.8 25% --------------------------------------------------------------------------------------- Mobile Phones ASP (EUR) 32 40 -20% 36 -11% --------------------------------------------------------------------------------------- Gross margin (%) 23.8% 25.5% 25.1% --------------------------------------------------------------------------------------- Operating expenses (EUR million) 404 382 6% 420 -4% --------------------------------------------------------------------------------------- Contribution margin (%) 10.2% 14.2% 8.6% --------------------------------------------------------------------------------------- Note 1: Does not include IPR royalty income. IPR royalty income is recognizedin Devices & Services Other net sales. Net SalesOn a year-on-year basis, our Mobile Phones net sales in the third quarter 2011decreased due to the lower ASP offset to some extent by higher volumes. On asequential basis, the increase in our Mobile Phones net sales in the thirdquarter 2011 was due to higher volumes, which more than offset the lower ASP. VolumeThe year-on-year increase in our Mobile Phones volumes in the third quarter2011 was driven by strong demand for our dual SIM devices, which reached 17.9million during the quarter, as well as higher demand for our QWERTY products. On a sequential basis, the increase in our Mobile Phones volumes in the thirdquarter 2011 was primarily driven by the broader availability of our dual SIMdevices which also helped to increase demand for other devices across ourMobile Phones portfolio. Average Selling PriceThe year-on-year decline in our Mobile Phones ASP in the third quarter 2011 wasdriven primarily by our tactical pricing actions due to the competitiveenvironment and an increased proportion of lower priced products in our MobilePhone portfolio. On a sequential basis, the decline in our Mobile Phones ASP in the thirdquarter 2011 was due primarily to a continued product mix shift towards lowerpriced devices and the impact of a full quarter of our tactical pricing actionsacross the portfolio initiated in the second quarter 2011. Gross MarginThe year-on-year decline in our Mobile Phones gross margin in the third quarter2011 was due primarily to our tactical pricing actions due to the competitiveenvironment, partially offset by a product mix shift towards higher marginmobile phones. The sequential decline in our Mobile Phones gross margin in the third quarter2011 primarily reflected the impact of a full quarter of our tactical pricingactions across our portfolio initiated in the second quarter 2011 whichresulted in greater price erosion than cost erosion, partially offset by aproduct mix shift towards higher margin mobile phones. NAVTEQ On June 22, 2011, we announced plans to create a new Location & Commercebusiness which combines NAVTEQ and Nokia's social location services operationsfrom Devices & Services. The Location & Commerce business is an operating andreportable segment beginning October 1, 2011. In addition to a broad portfolioof products and services for the wider internet ecosystem, the Location &Commerce business is creating integrated social location offerings in supportof Nokia's strategic goal in smartphones, including the Nokia experience withWindows Phone, as well as support for bringing the internet to the nextbillion. The following chart sets out a summary of the results for NAVTEQ for theperiods indicated, as well as the year-on-year and sequential growth rates. NAVTEQ RESULTS SUMMARY ---------------------------------------------------------------------------------------------- Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change --------------------------------------------------------------------------------------------- Net sales (EUR millions) 241 252 -4% 245 -2% --------------------------------------------------------------------------------------------- Non-IFRS gross margin (%) 86.3% 84.5% 82.9% --------------------------------------------------------------------------------------------- Non-IFRS operating expenses (EUR millions) 139 141 -1% 151 -8% --------------------------------------------------------------------------------------------- Non-IFRS operating margin (%) 28.2% 29.4% 21.5% --------------------------------------------------------------------------------------------- Net SalesThe year-on-year decrease in NAVTEQ net sales in the third quarter 2011 wasprimarily driven by lower sales of map licenses to mobile device customers,partially offset by higher sales of map licenses to vehicle customers due tohigher consumer uptake of vehicle navigation systems. Sequentially, thedecrease in NAVTEQ net sales in the third quarter 2011 was due to lower salesof map licenses to mobile device customers and typical seasonality in thevehicle segment, partially offset by higher sales to portable navigation device(PND) customers. At constant currency, NAVTEQ net sales would have increased1% year-on-year and decreased 2% sequentially. Gross MarginOn both a year-on-year and sequential basis, the increase in NAVTEQ non-IFRSgross margin in the third quarter 2011 was primarily due to an increasedproportion of higher gross margin sales. In addition, the sequential comparisonwas aided by the annual reset of a royalty contract with a data supplier, whichhad a negative impact on the second quarter 2011 non-IFRS gross margin. Operating ExpensesNAVTEQ non-IFRS research and development expenses decreased 3% year-on-yeardriven by changes in foreign currency exchange rates. NAVTEQ non-IFRS researchand development expenses decreased 6% sequentially driven by the timing ofprojects related to development of location content. NAVTEQ non-IFRS sales and marketing expenses increased 11% year-on-year drivenby headcount growth, primarily related to expansion in new markets. NAVTEQnon-IFRS sales and marketing expenses decreased 9% sequentially driven byseasonal decreases in marketing expenses related to map update marketingcampaigns. NAVTEQ non-IFRS administrative and general expenses decreased 12% year-on-yeardriven by lower costs related to recruiting and hiring of new employees. NAVTEQnon-IFRS administrative and general expenses decreased 17% sequentially drivenby lower severance costs and lower costs related to recruiting and hiring. Nokia Siemens Networks Nokia Siemens Networks completed the acquisition of Motorola Solutions'networks assets on April 30, 2011. Accordingly, the results of Nokia SiemensNetworks for the third quarter 2011 are not directly comparable to its resultsfor prior periods. The following chart sets out a summary of the results for Nokia SiemensNetworks for the periods indicated, as well as the year-on-year and sequentialgrowth rates. NOKIA SIEMENS NETWORKS RESULTS SUMMARY ---------------------------------------------------------------------------------------------- Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change --------------------------------------------------------------------------------------------- Net sales (EUR millions) 3 413 2 943 16% 3642 -6% --------------------------------------------------------------------------------------------- Non-IFRS gross margin (%) 26.8% 24.9% 26.6% --------------------------------------------------------------------------------------------- Non-IFRS operating expenses (EUR millions) 936 832 13% 931 1% --------------------------------------------------------------------------------------------- Non-IFRS operating margin (%) 0.2% -3.9% 1.1% --------------------------------------------------------------------------------------------- Net SalesThe following chart sets out Nokia Siemens Networks net sales for the periodsindicated, as well as the year-on-year and sequential growth rates, bygeographic area. NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA ------------------------------------------------------------------------EUR millions Q3/2011 Q3/2010 YoY Change Q2/2011 QoQ Change----------------------------------------------------------------------------------------------------------------------------------------------Europe 1 074 1 070 0% 1 122 -4%Middle East & Africa 301 331 -9% 389 -23%Greater China 302 311 -3% 403 -25%Asia-Pacific 978 711 38% 973 1%North America 304 175 74% 311 -2%Latin America 454 345 32% 444 2%-----------------------------------------------------------------------Total 3 413 2 943 16% 3 642 -6%----------------------------------------------------------------------- The year-on-year increase in Nokia Siemens Networks' net sales in the thirdquarter 2011 was driven primarily by growth from the acquired MotorolaSolutions networks assets. Excluding the acquired Motorola Solutions networksassets, net sales would have increased 3% year-on-year, primarily driven bygrowth in the Global Services business unit, which represented approximately50% of Nokia Siemens Networks' net sales in the third quarter 2011. The sequential decline in Nokia Siemens Networks' net sales in the thirdquarter 2011 was driven primarily by typical industry seasonality as well assome impact from the current macroeconomic uncertainty, offset to a certaindegree by the contribution from the acquired Motorola Solutions networksassets. Excluding the acquired Motorola Solutions networks assets, NokiaSiemens Networks' net sales would have decreased 12% sequentially. At constant currency, Nokia Siemens Networks' net sales would have increased18% year-on-year and decreased 7% sequentially. Gross MarginThe higher year-on-year Nokia Siemens Networks non-IFRS gross margin in thethird quarter 2011 was primarily due to improved overall cost control,operational execution and the increase in net sales primarily driven by thecontribution from the acquired Motorola Solutions networks assets. The slightly higher sequential Nokia Siemens Networks non-IFRS gross margin inthe third quarter 2011 was due to a greater focus on operational discipline,which was partially offset by an unfavorable sales mix due to an increasedproportion of Global Services business unit net sales. Operating ExpensesNokia Siemens Networks' non-IFRS research and development expenses increased18% year-on-year and 4% sequentially, primarily due to the addition of R&Doperations relating to the acquired Motorola Solutions networks assets as wellas investments in strategic initiatives. Nokia Siemens Networks' non-IFRS sales and marketing expenses were virtuallyflat year-on-year. On a sequential basis, Nokia Siemens Networks non-IFRS salesand marketing expenses decreased 6%, reflecting industry seasonality and costcontrol initiatives. Nokia Siemens Networks' non-IFRS administrative and general expenses increased16% year-on-year, reflecting the higher net sales and the addition of MotorolaSolutions' network assets. Sequentially, Nokia Siemens Networks non-IFRSadministrative and general expenses were virtually flat. Nokia Siemens Networks' non-IFRS other income increased year-on-year andsequentially due to improvements in customer collections. Operating MarginThe higher year-on-year Nokia Siemens Networks non-IFRS operating margin in thethird quarter 2011 primarily reflected the higher net sales and gross margin,partially offset by increased operating expenses. The sequential decrease in Nokia Siemens Networks' non-IFRS operating margin inthe third quarter 2011 reflected the lower net sales. THIRD QUARTER 2011 OPERATING HIGHLIGHTS Nokia- Nokia completed the transaction to outsource its Symbian software developmentand support activities to Accenture on September 30, 2011. As a result of thetransaction, approximately 2 300 employees transferred to Accenture. - Nokia announced the appointment of Henry Tirri as Executive Vice President,Chief Technology Officer and a member of the Nokia Leadership Team, effectiveSeptember 22, 2011. He reports directly to President and CEO Stephen Elop. AsChief Technology Officer, Tirri has assumed responsibility for the CTOorganization, charged with setting Nokia's technology agenda both now and inthe future, and driving core innovation to enable business developmentopportunities. Previously, Tirri was Head of Nokia Research Center (NRC),Nokia's forward-looking research facility. Richard Green, who was appointedChief Technology Officer in May 2010 and was a member of the Nokia LeadershipTeam since February 2011, elected to depart Nokia effective on September 22,2011. - Executive Vice President and a member of the Nokia Leadership Team, TeroOjanpera, left Nokia and resigned from the Nokia Leadership Team on September30, 2011. Ojanpera was with Nokia for 21 years and a member of the NokiaLeadership Team since 2005. He has taken on a new role as Managing Partner ofVision+, a new independently-run investment fund focused on financinginnovative products, and of which Nokia is an anchor investor. - Nokia and Siemens announced the appointment of Jesper Ovesen as ExecutiveChairman of the Board of Nokia Siemens Networks, effective September 29, 2011.As Executive Chairman, Ovesen assumes a full-time role with a special emphasison overseeing the strategic direction of Nokia Siemens Networks as it seeks tostrengthen its position as a leader in the industry and become a moreindependent entity. - Nokia and Siemens also announced that they each provided capital of EUR 500million to Nokia Siemens Networks in the third quarter 2011 to furtherstrengthen the company's financial position and set the stage for strategicflexibility, productivity and innovation in areas such as Mobile Broadband andrelated services. - Nokia was again selected as a component of the Dow Jones Sustainability WorldIndex (DJSI) and Dow Jones Sustainability Europe Index in the DJSI 2011 Review. Devices & Services- Nokia made available for download Symbian Anna, a major software update whichenhances the user experience of the first generation of Symbian^3 devices -Nokia N8, Nokia C7, Nokia C6-01 and Nokia E7 - bringing owners of these devicesa new user interface, virtual QWERTY keypad in portrait mode, split-screenmessaging, enhanced Nokia Maps, better web browsing and stronger security. - Nokia launched and started shipments of the Nokia 500, an affordablesmartphone with a 1GHz processor and powered by Symbian Anna. - Nokia launched three new smartphones powered by Symbian Belle, a majorsoftware update following on from Anna that brings further enhancements to theuser experience. The Nokia 700, Nokia 701 and Nokia 600 extend the range ofavailable designs, features and functionality in the Nokia Symbian smartphonerange. They offer single-tap NFC technology sharing and pairing, the mostpersonal user interface on a Nokia device to date and a more powerful mobileweb browsing experience. Shipments of the Nokia 700 and Nokia 701 startedbefore the end of the third quarter. Nokia plans to make Belle available alsofor users of the Nokia N8, Nokia C7, Nokia C6-01, Nokia E6, Nokia E7, Nokia X7and Nokia Oro. - Nokia announced forthcoming free updates to its Symbian Belle operatingsystem called Microsoft(r) Apps, a suite of Microsoft productivity applications.Requiring no additional infrastructure, these applications help add immediatebusiness advantage to the first Symbian Belle devices as well as deliveringadditional value to existing Nokia business customers who upgrade to SymbianBelle. - Nokia started shipments to operator and distributor customers of the NokiaN9, a pure touch smartphone which introduces an innovative new design where thehome key - typically located at the bottom of the device - is replaced by asimple gesture: a swipe. - Nokia announced Nokia Car Mode, a standalone application optimized for thein-car use of Nokia smartphones. Nokia Car Mode features an optimized userinterface simplifying the access and use of Nokia Drive (voice-guided carnavigation with Nokia Maps), traffic updates, music and voice calls whiledriving. Nokia Car Mode, built with Qt, will be made available for Nokiasmartphones based on Symbian Belle as well as the Nokia N9. - Nokia started shipments of the Nokia C2-03, a Series 40-based device withNokia's unique dual SIM capabilities. The dual SIM functionality enables usersto connect to two different networks to receive calls and messages. The NokiaC2-03 enables users to personalize up to five SIM cards, while it also featuresour Easy Swap technology which makes switching SIM cards simple and quick. Thedevice also features the new Nokia Browser, which is designed to provide a morepersonal and affordable internet experience. The Nokia Browser, which isavailable in 87 languages, compresses data and can thus reduce the cost ofsurfing the web. Additionally, the Nokia C2-03 feature Nokia Maps for Series40, which provides an advanced, cost-efficient maps experience. The new NokiaMaps for Series 40 is similar to that available on our smartphones in thatpeople can view maps and plan routes when the phone is in offline mode. - Nokia announced the launch of the Nokia 101 and Nokia 100, the mostaffordable phones in its portfolio, supporting its aim to connect the nextbillion consumers with mobile devices that offer modern, attractive designs, arange of practical and fun features, and services that extend the value of thephone with access to information and entertainment. The Nokia 101 is alsoNokia's fifth dual SIM device to date. NAVTEQ- NAVTEQ expanded coverage in Latin America, launching a NAVTEQ map of Uruguay.- NAVTEQ announced the launch of RDS real-time traffic services in Russia viaAutoRadio. - NAVTEQ announced its selection by Daimler AG to supply map data and contentfor Mercedes E and CLS class models in Europe. - NAVTEQ extended its NAVTEQ Natural Guidance product to Russia, bringingEuropean coverage to over 120 cities. - NAVTEQ announced that Appello has signed on as a publisher for theLocationPoint Advertising (LPA) network. Nokia Siemens Networks- Nokia Siemens Networks announced a number of mobile broadband deals. Theseincluded: with STC in Saudi Arabia, its first commercial TD-LTE (4G) network; acomplete core and radio LTE network for Latvijas Mobilais Telefons in Latvia;LTE and 3G modernization for TeliaSonera Finland; a major, two city, trial ofTD-LTE with China Mobile in Hangzhou and Xiamen; named as a key supplier forthe 4G (LTE) service launch of Bell in Canada; upgrading T-Mobile USA's 4G(HSPA+) network to 42Mbps; upgrading the WIND Telecommunicazioni network inItaly to 42Mbps HSPA+ and preparation for LTE; deploying WiMAX with VeeTIME tooffer broadband aboard the Taiwan high speed rail service; and replacing andsignificantly expanding the GO Malta network with its GSM, 3G and all-IP mobilebackhaul technology. - To further support its focus on mobile broadband, Nokia Siemens Networks alsooutlined its vision for how broadband must be delivered in the future viaLiquid Net; unveiled three new TD-LTE devices to supply communications serviceproviders and enable the market for TD-LTE; pushed the peak data rates of HSPA+up to 336Mbps at a demo in Beijing; agreed to establish a mobile broadbandfocused SmartLab with the Skolkovo Foundation in Russia; and set-up a jointventure to build 4G LTE equipment with Micran in Tomsk, Russia. - In a significant optical network deal, Nokia Siemens Networks announced it isdeploying a 5000 kilometer, 40 Gigabits per second, per channel, densewavelength division multiplexing (DWDM) optical network for China Unicom. - In services, Nokia Siemens Networks opened a new services center in Russia,the company's fifth worldwide; signed a deal to expand and deploy 2G and 3Gnetworks across seven African countries for Bharti Airtel, in addition tosupplying the network equipment; delivered spectrum refarming to Thailand'sBFKT to optimize its use of spectrum; and announced a new service for upgradingradio networks called Network Cloning that can reduce upgrade operatingexpenses by more than 50% and takes only days instead of months to implement. For more information on the operating highlights mentioned above, please referto related press announcements at the following links: www.nokia.com/press,www.navteq.com/about/press.html, www.nokiasiemensnetworks.com/press FORWARD-LOOKING STATEMENTSIt should be noted that certain statements herein which are not historicalfacts are forward-looking statements, including, without limitation, thoseregarding: A) the expected plans and benefits of our strategic partnership withMicrosoft to combine complementary assets and expertise to form a global mobileecosystem and to adopt Windows Phone as our primary smartphone platform; B) thetiming and expected benefits of our new strategy, including expectedoperational and financial benefits and targets as well as changes in leadershipand operational structure; C) the timing of the deliveries of our products andservices; D) our ability to innovate, develop, execute and commercialize newtechnologies, products and services; E) expectations regarding marketdevelopments and structural changes; F) expectations and targets regarding ourindustry volumes, market share, prices, net sales and margins of products andservices; G) expectations and targets regarding our operational priorities andresults of operations; H) expectations and targets regarding collaboration andpartnering arrangements; I) the outcome of pending and threatened litigation;J) expectations regarding the successful completion of acquisitions orrestructurings on a timely basis and our ability to achieve the financial andoperational targets set in connection with any such acquisition orrestructuring; and K) statements preceded by 'believe,' 'expect,' 'anticipate,''foresee,' 'target,' 'estimate,' 'designed,' 'plans,' 'will' or similarexpressions. These statements are based on management's best assumptions andbeliefs in light of the information currently available to it. Because theyinvolve risks and uncertainties, actual results may differ materially from theresults that we currently expect. Factors that could cause these differencesinclude, but are not limited to: 1) our ability to succeed in creating acompetitive smartphone platform for high-quality differentiated winningsmartphones or in creating new sources of revenue through our partnership withMicrosoft; 2) the expected timing of the planned transition to Windows Phone asour primary smartphone platform and the introduction of mobile products basedon that platform; 3) our ability to maintain the viability of our currentSymbian smartphone platform during the transition to Windows Phone as ourprimary smartphone platform; 4) our ability to realize a return on ourinvestment in MeeGo and next generation devices, platforms and userexperiences; 5) our ability to build a competitive and profitable globalecosystem of sufficient scale, attractiveness and value to all participants andto bring winning smartphones to the market in a timely manner; 6) our abilityto produce mobile phones in a timely and cost efficient manner withdifferentiated hardware, localized services and applications; 7) our ability toincrease our speed of innovation, product development and execution to bringnew competitive smartphones and mobile phones to the market in a timely manner;8) our ability to retain, motivate, develop and recruit appropriately skilledemployees; 9) our ability to implement our strategies, particularly our newmobile product strategy; 10) the intensity of competition in the variousmarkets where we do business and our ability to maintain or improve our marketposition or respond successfully to changes in the competitive environment; 11)our ability to maintain and leverage our traditional strengths in the mobileproduct market if we are unable to retain the loyalty of our mobile operatorand distributor customers and consumers as a result of the implementation ofour new strategy or other factors; 12) our success in collaboration andpartnering arrangements with third parties, including Microsoft; 13) thesuccess, financial condition and performance of our suppliers, collaborationpartners and customers; 14) our ability to source sufficient quantities offully functional quality components, subassemblies and software on a timelybasis without interruption and on favorable terms, including the disruption ofproduction and/or deliveries from any of our suppliers as a result of adverseconditions in the geographic areas where they are located; 15) our ability tomanage efficiently our manufacturing, service creation, delivery and logisticswithout interruption; 16) our ability to ensure the timely delivery ofsufficient volumes of products that meet our and our customers' and consumers'requirements and manage our inventory and timely adapt our supply to meetchanging demands for our products; 17) any actual or even alleged defects orother quality, safety and security issues in our products; 18) any actual oralleged loss, improper disclosure or leakage of any personal or consumer datacollected or made available to us or stored in or through our products; 19) ourability to successfully manage costs, including our ability to achieve targetedcosts reductions and to effectively and timely execute related restructuringmeasures, including personnel reductions; 20) our ability to effectively andsmoothly implement the new operational structure for our businesses; 21) thedevelopment of the mobile and fixed communications industry and generaleconomic conditions globally and regionally; 22) exchange rate fluctuations,including, in particular, fluctuations between the euro, which is our reportingcurrency, and the US dollar, the Japanese yen and the Chinese yuan, as well ascertain other currencies; 23) our ability to protect the technologies, which weor others develop or that we license, from claims that we have infringed thirdparties' intellectual property rights, as well as our unrestricted use oncommercially acceptable terms of certain technologies in our products andservices; 24) our ability to protect numerous Nokia, NAVTEQ and Nokia SiemensNetworks patented, standardized or proprietary technologies from third-partyinfringement or actions to invalidate the intellectual property rights of thesetechnologies; 25) the impact of changes in government policies, trade policies,laws or regulations and economic or political turmoil in countries where ourassets are located and we do business; 26) any disruption to informationtechnology systems and networks that our operations rely on; 27) unfavorableoutcome of litigations; 28) allegations of possible health risks fromelectromagnetic fields generated by base stations and mobile products andlawsuits related to them, regardless of merit; 29) our ability to achievetargeted costs reductions and increase profitability in Nokia Siemens Networksand to effectively and timely execute related restructuring measures; 30) NokiaSiemens Networks' ability to maintain or improve its market position or respondsuccessfully to changes in the competitive environment; 31) Nokia SiemensNetworks' liquidity and its ability to meet its working capital requirements;32) whether Nokia Siemens Networks is able to successfully integrate theacquired assets of Motorola Solutions' networks business, retain existingcustomers of the acquired business, cross-sell Nokia Siemens Networks' productsand services to customers of the acquired business and otherwise realize theexpected synergies and benefits of the acquisition; 33) Nokia Siemens Networks'ability to timely introduce new products, services, upgrades and technologies;34) Nokia Siemens Networks' success in the telecommunications infrastructureservices market and Nokia Siemens Networks' ability to effectively andprofitably adapt its business and operations in a timely manner to theincreasingly diverse service needs of its customers; 35) developments underlarge, multi-year contracts or in relation to major customers in the networksinfrastructure and related services business; 36) the management of ourcustomer financing exposure, particularly in the networks infrastructure andrelated services business; 37) whether ongoing or any additional governmentalinvestigations into alleged violations of law by some former employees ofSiemens AG may involve and affect the carrier-related assets and employeestransferred by Siemens AG to Nokia Siemens Networks; 38) any impairment ofNokia Siemens Networks customer relationships resulting from ongoing or anyadditional governmental investigations involving the Siemens carrier-relatedoperations transferred to Nokia Siemens Networks; as well as the risk factorsspecified on pages 12-39 of Nokia's annual report Form 20-F for the year endedDecember 31, 2010 under Item 3D. 'Risk Factors.' Other unknown or unpredictablefactors or underlying assumptions subsequently proving to be incorrect couldcause actual results to differ materially from those in the forward-lookingstatements. Nokia does not undertake any obligation to publicly update orrevise forward-looking statements, whether as a result of new information,future events or otherwise, except to the extent legally required. Nokia, Helsinki - October 20, 2011 Media and Investor Contacts:Corporate Communications, tel. +358 7180 34900Investor Relations Europe, tel. +358 7180 34927Investor Relations US, tel. +1 914 368 0555 - Nokia plans to publish its fourth quarter and annual 2011 results on January26, 2012. - Nokia plans to publish its other quarterly results in 2012 on the followingdates: Q1 on April 19, Q2 on July 19 and Q3 on October 18, 2012. - Nokia plans to publish its annual report, Nokia in 2011, in week 13 of 2012.- Nokia's Annual General Meeting is scheduled to be held on May 3, 2012. www.nokia.com Click on, or paste the following link into your web browser, to view theassociated documents https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=365433 News Source: NASDAQ OMX 20.10.2011 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: 919Time of Receipt: Oct 20, 2011 12:00:59 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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