Nokia Corporation Q3 2012 Interim Report

Nokia Corporation Q3 2012 Interim Report 
ESPOO, FINLAND -- (Marketwire) -- 10/18/12 --  Nokia Corporation 
Interim report
 October 18, 2012 at 13.00 (CET+1)  
This is a summary of the third quarter 2012 interim report published
today. The
complete third quarter 2012 interim report with tables is
available at
http://www.results.nokia.com/results/Nokia_results2012Q3e.pdf.
Investors should
not rely on summaries of our interim reports only,
but should review the complete interim reports with tables. 
FINANCIAL AND OPERATING HIGHLIGHTS 
Nokia Group non-IFRS EPS in Q3 2012 of EUR -0.07, reported EPS EUR
-0.26 
- Nokia Group achieves operating profitability on an underlying
basis, with Q3
non-IFRS operating margin of 1.1%. 
- Nokia Siemens Networks non-IFRS operating margin significantly
improved quarter-on-quarter and year-on-year to 9.2% in Q3; company
executing well on
restructuring and strategy that focuses on key
markets and product segments. 
- Devices & Services Q3 non-IFRS operating margin improved
quarter-on-quarter to negative 7.4%. 
- Nokia Group ended Q3 with gross cash of EUR 8.8 billion and net
cash of EUR
3.6 billion. 
- Nokia Group Q3 net cash from operating activities of negative EUR
429 million,
including cash outflows related to restructuring
activities of approximately EUR 390 million. 
Nokia Group net sales in Q3 2012 were EUR 7.2 billion, down from EUR
7.5 billion
in Q2 2012 
- Nokia Siemens Networks net sales increased quarter-on-quarter and 
year-on-year
to EUR 3.5 billion. 
- Lumia Q3 volumes decreased quarter-on-quarter to 2.9 million units,
as we shared the exciting innovation ahead with our new line of Lumia
products. 
- Mobile Phones Q3 volumes increased quarter-on-quarter to 77 million
units;
strong sales start for new Asha full touch smartphones, with
volumes of 6.5 million units. 
Commenting on the Q3 results, Stephen Elop, Nokia CEO, said: "As we
expected, Q3 was a difficult quarter in our Devices & Services
business;
however, we are pleased that we shifted Nokia Group to
operating profitability
on a non-IFRS basis. 
In Q3, we continued to manage through a tough transitional quarter
for our smart
devices business as we shared the exciting innovation
ahead with our new line of Lumia products. 
In our mobile phones business, the posi
tive consumer response to our
new Asha
full touch smartphones translated into strong sales. And in
Q3, our mobile phones business delivered a solid quarter with
sequential sales growth and improved contribution margin. 
In Location & Commerce, we made progress establishing our platform
offering with
customers like Amazon. This is in line with our plan to
expand our location offering to more customers. 
And, Nokia Siemens Networks had a remarkable quarter in which we
achieved record
profitability on a non-IFRS basis and the Nokia
Siemens Networks cash balance
increased for the fourth quarter in a
row. 
While we continue to focus on transitioning Nokia, we are determined
to carefully manage our financial resources, improve our
competitiveness, return
our Devices & Services business to positive
operating cash flow as quickly as
possible, and ultimately provide
more value to our shareholders." 


 
SUMMARY FINANCIAL INFORMATION
 
+-----------------------------+-------------------------------------+
|                             |        Reported and Non-IFRS        |
|                             |   third quarter 2012 results1,2,3   |
|                             +-------+-------+------+-------+------+
|                             |Q3/2012|Q3/2011|   YoY|Q2/2012|   QoQ|
|EUR million                  |       |       |Change|       |Change|
+-----------------------------+-------+-------+------+-------+------+
|Nokia                        |       |       |      |       |      |
|                             |       |       |      |       |      |
|Net sales                    |  7 239|  8 980|  -19%|  7 542|   -4%|
|                             |       |       |      |       |      |
|Operating profit             |   -576|    -71|      |   -826|      |
|                             |       |       |      |       |      |
|Operating profit             |       |       |      |       |      |
|(non-IFRS)                   |     78|    252|  -69%|   -327|      |
|                             |       |       |      |       |      |
|Operating margin %           |  -8.0%|  -0.8%|      | -11.0%|      |
|                             |       |       |      |       |      |
|Operating margin % (non-IFRS)|   1.1%|   2.8%|      |  -4.3%|      |
|                             |       |       |      |       |      |
|EPS, EUR diluted             |  -0.26|  -0.02|      |  -0.38|      |
|                             |       |       |      |       |      |
|EPS, EUR diluted             |       |       |      |       |      |
|(non-IFRS)4                  |  -0.07|   0.03|      |  -0.08|      |
|                             |       |       |      |       |      |
|Net cash from                |       |       |      |       |      |
|operating                    |       |       |      |       |      |
|activities                   |   -429|    852|      |    102|      |
|                             |       |       |      |       |      |
|Net cash and                 |       |       |      |       |      |
|other liquid                 |       |       |      |       |      |
|assets5                      |  3 564|  5 067|  -30%|  4 197|  -15%|
+-----------------------------+-------+-------+------+-------+------+
|Devices &                    |       |       |      |       |      |
|Services6                    |       |       |      |       |      |
|                             |       |       |      |       |      |
|Net sales                    |  3 563|  5 392|  -34%|  4 023|  -11%|
|                             |       |       |      |       |      |
|Smart Devices                |       |       |      |       |      |
|net sales                    |    976|  2 194|  -56%|  1 541|  -37%|
|                             |       |       |      |       |      |
|Mobile Phones                |       |       |      |       |      |
|net sales                    |  2 366|  2 915|  -19%|  2 291|    3%|
|                             |       |       |      |       |      |
|Mobile device                |       |       |      |       |      |
|volume                       |       |       |      |       |      |
|(mn units)                   |   82.9|  106.6|  -22%|   83.7|   -1%|
|                             |       |       |      |       |      |
|Smart Devices                |       |       |      |       |      |
|volume                       |       |       |      |       |      |
|(mn units)                   |    6.3|   16.8|  -63%|   10.2|  -38%|
|                             |       |       |      |       |      |
|Mobile Phones                |       |       |      |       |      |
|volume                       |       |       |      |       |      |
|(mn units)                   |   76.6|   89.8|  -15%|   73.5|    4%|
|                             |       |       |      |       |      |
|Mobile device                |       |       |      |       |      |
|ASP7                         |     43|     51|  -16%|     48|  -10%|
|                             |       |       |      |       |      |
|Smart Devices                |       |       |      |       |      |
|ASP7                         |    155|    131|   18%|    151|    3%|
|                             |       |       |      |       |      
|
|Mobile Phones                |       |       |      |       |      |
|ASP7                         |     31|     32|   -3%|     31|    0%|
|                             |       |       |      |       |      |
|Operating                    |       |       |      |       |      |
|profit                       |   -683|    168|      |   -474|      |
|                             |       |       |      |       |      |
|Operating                    |       |       |      |       |      |
|profit                       |       |       |      |       |      |
|(non-IFRS)                   |   -263|    258|      |   -365|      |
|                             |       |       |      |       |      |
|Operating                    |       |       |      |       |      |
|margin %                     | -19.2%|   3.1%|      | -11.8%|      |
|                             |       |       |      |       |      |
|Operating margin %           |       |       |      |       |      |
|(non-IFRS)                   |  -7.4%|   4.8%|      |  -9.1%|      |
+-----------------------------+-------+-------+------+-------+------+
|Location &                   |       |       |      |       |      |
|Commerce6                    |       |       |      |       |      |
|                             |       |       |      |       |      |
|Net sales                    |    265|    282|   -6%|    283|   -6%|
|                             |       |       |      |       |      |
|Operating profit             |    -56|    -85|      |    -95|      |
|                             |       |       |      |       |      |
|Operating profit             |       |       |      |       |      |
|(non-IFRS)                   |     37|     28|   32%|     41|  -10%|
|                             |       |       |      |       |      |
|Operating                    |       |       |      |       |      |
|margin %                     | -21.1%| -30.1%|      | -33.6%|      |
|                             |       |       |      |       |      |
|Operating                    |       |       |      |       |      |
|margin %                     |       |       |      |       |      |
|(non-IFRS)                   |  14.0%|   9.9%|      |  14.5%|      |
+-----------------------------+-------+-------+------+-------+------+
|Nokia Siemens                |       |       |      |       |      |
|Networks6                    |       |       |      |       |      |
|                             |       |       |      |       |      |
|Net sales                    |  3 501|  3 413|    3%|  3 343|    5%|
|                             |       |       |      |       |      |
|Operating profit             |    182|   -114|      |   -227|      |
|                             |       |       |      |       |      |
|Operating profit             |       |       |      |       |      |
|(non-IFRS)                   |    323|      6|      |     27|      |
|                             |       |       |      |       |      |
|Operating                    |       |       |      |       |      |
|margin %                     |   5.2%|  -3.3%|      |  -6.8%|      |
|                             |       |       |      |       |      |
|Operating                    |       |       |      |       |      |
|margin %                     |       |       |      |       |      |
|(non-IFRS)                   |   9.2%|   0.2%|      |   0.8%|      |
+-----------------------------+-------+-------+------+-------+------+

 
Note 1 relating to January-September 2012 results: Nokia reported net
sales were
EUR 22 135 million and reported EPS (diluted) was EUR -0.89
for the period from
January 1 to September 30, 2012. Further
information about the results for the
period from January 1 to
September 30, 2012 can be found on pages 20, 27, 28 and 31 of the
complete Q3 2012 interim report with tables. 
Note 2 relating to non-IFRS results: Non-IFRS results exclude special
items for
all periods. In addition, non-IFRS results exclude
intangible asset amortization, other purchase price accounting
related items and inventory value
adjustments arising from (i) the
formation of Nokia Siemens Networks and (ii)
all business
acquisitions completed after June 30, 2008.  Nokia believes that
our
non-IFRS results provide meaningful supplemental information to both
management and investors regarding Nokia's underlying performance by
excluding
the above-described items that may not be indicative of
Nokia's business operating results. These non-IFRS financial measures
should not be viewed in
isolation or as substitutes to the equivalent
IFRS measure(s), but should be
used in conjunction with the most
directly comparable IFRS measure(s) in the
reported results. See note
3 below for information about the exclusions from our non-IFRS
results. More information, including a reconciliation of our Q3
2012
and Q3 2011 non-IFRS results to our reported results, can be
found in our complete Q3 2012 interim report with tables on pages 19
and 22-26. A reconciliation of our Q2 2012 non-IFRS results to our
reported results can be
found in our complete Q2 interim report with
tables on pages 21-25 published on July 19, 2012. 
Note 3 relating to non-IFRS exclusions: 
Q3 2012 - EUR 654 million (net) consisting of: 
- EUR 74 million restructuring charge and other associated items in
Nokia Siemens Networks, including EUR 3 million of net charges related
to country and
contract exits based on new strategy that focuses on
key markets and product
segments. 
- EUR 2 million restructuring charge in Location & Commerce 
- EUR 454 million restructuring charge and other associated items in
Devices & Services 
- EUR 67 million of intangible asset amortization and other purchase
price accounting related items arising from the formation of Nokia
Siemens Networks
and the acquisition of Motorola Solutions' networks
assets 
- EUR 91 million of intangible asset amortization and other purchase
price accounting related items arising from the acquisition of NAVTEQ 
- EUR 1 million of intangible assets amortization and other purchase
price related items arising from the acquisition of Novarra, MetaCarta
and Motally in Devices & Services 
- EUR 35 million positive item from a cartel claim settlement in
Devices & Services 
Q3 2012 taxes - EUR 157 million non-cash deferred tax expense related
to corporate reorganizations arising from Location & Commerce business
integration. 
Q2 2012 - EUR 499 million consisting of: 
- EUR 190 million restructuring charge and other associated items in
Nokia Siemens Networks, including EUR 70 million of charges related to
country and
contract exits based on new strategy that focuses on key
markets and product
segments. 
- EUR 10 million restructuring charge in Location & Commerce 
- EUR 80 million restructuring charge and associated impairments EUR
28 million
in Devices & Services 
- EUR 64 million of intangible asset amortization and other purchase
price accounting related items arising from the formation of Nokia
Siemens Networks
and the acquisition of Motorola Solutions' networks
assets 
- EUR 126 million of intangible asset amortization and other purchase
price accounting related items arising from the acquisition of NAVTEQ 
- EUR 1 million of intangible assets amortization and other purchase
price related items arising from the acquisition of Novarra, MetaCarta
and Motally in Devices & Services 
Q2 2012 taxes - EUR 800 million valuation allowances for Devices &
Services deferred tax assets adversely affecting Nokia taxes 
Q3 2011 - EUR 323 million (net) consisting of: 
- EUR 26 million restructuring charge and other associated items in
Nokia Siemens Networks 
- EUR 59 million restructuring charge and EUR 54 million associated
impairments
in Devices & Services 
- EUR 24 million positive Accenture deal closing adjustment in
Devices & Services 
- EUR 94 million of intangible asset amortization and other purchase
price accounting related items arising from the formation of Nokia
Siemens Networks
and the acquisition of Motorola Solutions' networks
assets 
- EUR 113 million of intangible asset amortization and other purchase
price accounting related items arising from the acquisition of NAVTEQ 
- EUR 1 million of intangible assets amortization and other purchase
price related items arising from the acquisition of Novarra, MetaCarta
and Motally in Devices & Services 
Note 4 relating to non-IFRS Nokia EPS: 
Nokia taxes were unfavorably impacted by Devices & Services taxes as
no tax benefits are recognized for certain Devices & Services
deferred tax items. If
Nokia's earlier estimated long-term tax rate
of 26% had been applied, non-IFRS
Nokia EPS would have been
approximately 4.2 Euro cent higher in Q3 2012. Going
forward on a
non-IFRS basis, until a pattern of tax profitability is
reestablished, Nokia expects to record quarterly tax expense of
approximately
EUR 50 million related to its Devices & Services
business and approximately EUR
50 million related to its Nokia
Siemens Networks business. Nokia expects to continue to record taxes
related to its Location & Commerce business at a 26%
rate. 
Note 5 relating to Nokia net cash and other liquid assets: Calculated
as total
cash and other liquid assets less interest-bearing
liabilities. For selected
information on Nokia Group interest-bearing
liabilities, please see the table on page 33 of the complete Q3 2012
interim report with tables 
Note 6 relating to operational and reporting structure: We adopted
our current
operational structure during 2011 and have three
businesses: Devices & Services,
Location & Commerce and Nokia Siemens
Networks and four operating and reportable
segments: Smart Devices
and Mobile Phones within Devices & Services, Location & Commerce and
Nokia Siemens Networks. Smart Devices focuses on smartphones
and
Mobile Phones focuses on mass market mobile devices, including
Asha full touch
smartphones. Devices & Services also contains Devices
& Services Other which
includes net sales of our luxury phone
business Vertu, spare parts and related
cost of sales and operating
expenses, as well as intellectual property related
income and common
research and development expenses. In October 2012, we completed the
divestment of Vertu to EQT VI, a European private equity
firm.
Location & Commerce focuses on the development of
location-based services and
local commerce. Nokia Siemens Networks is
one of the leading global providers of telecommunications
infrastructure hardware, software and services. 
Note 7 relating to average selling prices (ASP): Mobile device ASP
represents
total Devices & Services net sales (Smart Devices net
sales, Mobile Phones net
sales, and Devices & Services Other net
sales) divided by total Devices & Services volumes. Devices &
Services Other net sales includes net sales of Nokia's luxury phone
business Vertu and spare parts, as well as intellectual
property
income. Smart Devices ASP represents Smart Devices net sales divided
by Smart Devices volumes. Mobile Phones ASP represents Mobile Phones
net sales divided by Mobile Phones volumes. 
NOKIA OUTLOOK 
- Nokia expects its non-IFRS Devices & Services operating margin in
the fourth
quarter 2012 to be approximately negative 6%, plus or minus
four percentage points. This outlook is based on our expectations
regarding a number of factors,
including: 
- competitive industry dynamics continuing to negatively affect the
Smart Devices and Mobile Phones business units; 
- the fourth quarter being a ramp up quarter for our new Lumia
products, which
are expected to start selling in select markets; 
- consumer demand, particularly related to our current Lumia
products; 
- an expected increase in Devices & Services operating expenses as a
result of
new product launches, partially offset by expected cost
reductions under our
restructuring program; and 
- the macroeconomic environment. 
- Nokia expects the fourth quarter 2012 to be a challenging quarter
in Smart
Devices, with a lower-than-normal benefit from seasonality in
volumes, primarily
due to product transitions and our ramp up plan for
our new devices. 
- Nokia continues to target to reduce its Devices & Services non-IFRS
operating
expenses to an annualized run rate of approximately EUR 3.0
billion by the end
of 2013. 
- Nokia and Nokia Siemens Networks expect Nokia Siemens Networks
non-IFRS operating margin in the fourth quarter 2012 to be
approximately positive 8%,
plus or minus four percentage points. 
This outlook is based on our expectations
regarding a number of
factors, including: 
- competitive industry dynamics; 
- seasonal variations in customer demand for Nokia Siemens Networks'
equipment
and services; 
- regional and product mix; 
- expected continued improvement under Nokia Siemens Networks'
restructuring
program; and 
- the macroeconomic environment. 
- Nokia Siemens Networks continues to target to reduce its non-IFRS
annualized
operating expenses and production overheads by EUR 1
billion by the end of 2013, compared to the end of 2011. 
THIRD QUARTER 2012 FINANCIAL AND OPERATING DISCUSSION 
NOKIA GROUP 
We adopted our current operational structure during 2011 and have
three businesses: Devices & Services, Location & Commerce and Nokia
Siemens Networks
and four operating and reportable segments: Smart
Devices and Mobile Phones within Devices & Services, Location &
Commerce and Nokia Siemens  Networks. Smart Devices focuses on
smartphones and Mobile Phones focuses on mass market
mobile devices,
including Asha full touch smartphones. Devices & Services
also
contains Devices & Services Other which includes net sales of
our luxury phone
business Vertu, spare parts and related cost of
sales and operating expenses, as well as intellectual property
related income and common research and development
expenses. In
October 2012, we completed the divestment of Vertu to EQT VI,
a
European private equity firm. Location & Commerce focuses on the
development of location-based services and local commerce. Nokia
Siemens Networks is one of the leading global providers of
telecommunications infrastructure hardware, software
and services. 
The following discussion includes non-IFRS results information.
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. 
The following table sets forth the year-on-year and sequential growth
rates in
our net sales on a reported basis and at constant currency
for the periods
indicated. 


 
+----------------------------------------------------------------
+
| THIRD QUARTER 2012 NET SALES,                                  |
| REPORTED & CONSTANT CURRENCY1                                  |
+--------------------------------------+------------+------------+
|                                      | YoY Change | QoQ Change |
+--------------------------------------+------------+------------+
| Group net sales - reported           |       -19% |        -4% |
|                                      |            |            |
| Group net sales - constant currency1 |       -23% |        -7% |
|             
                         |            |            |
| Devices & Services                   |            |            |
| net sales - reported                 |       -34% |       -11% |
|                                      |            |            |
| Devices & Services                   |            |            |
| net sales - constant currency1       |       -36% |       -13% |
|                                      |            |            |
| Nokia Siemens Networks               |            |            |
| net sales - reported                 |         3% |         5% |
|                                      |            |            |
| Nokia Siemens Networks               |            |            |
| net sales - constant currency1       |        -3% |         1% |
+--------------------------------------+------------+------------+

 
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. 
At constant currency Nokia Group's net sales would have decreased 23%
year-on-year and decreased 7% sequentially. 
The following table sets forth Nokia Group's reported cash flow for
the periods
indicated and financial position at the end of the periods
indicated, as well as the year-on-year and sequential growth rates. 


 
+----------------------------------------------------------------
------+
| NOKIA GROUP CASH FLOW                                                |
| AND FINANCIAL POSITION                                               |
+----------------------+---------+---------+--------+---------+--------+
|                      | Q3/2012 | Q3/2011 |    YoY | Q2/2012 |    QoQ |
| EUR million          |         |         | Change |         | Change |
+----------------------+---------+---------+--------+---------+--------+
| Net cash from        |         |         |        |         |        |
| operating activities |    -429 |     852 |        |     102 |        |
+----------------------+---------+---------+--------+---------+--------+
| Total cash and       |         |         |        |         |        |
| other liquid assets  |   8 779 |  10 809 |  -19%  |   9 418 |  -7%   |
+----------------------+---------+---------+--------+---------+--------+
| Net cash and         |         |         |        |         |        |
| other liquid assets1 |   3 564 |   5 067 |  -30%  |   4 197 |  -15%  |
+----------------------+---------+---------+--------+---------+--------+

 
Note 1: Total cash and other liquid assets minus interest-bearing
liabilities. 
Year-on-year, net cash and other liquid assets decreased by EUR 1.5
billion in
the third quarter 2012, primarily due to cash outflows
related to restructuring
and net financial expenses, the payment of
the annual dividend totaling EUR 742
million in the second quarter
2012 and capital expenditures, partially offset by cash flows related
to the receipt of quarterly platform support payments from
Microsoft
(which commenced in the fourth quarter 2011) and positive overall
net
cash from operating activities, excluding cash outflows related
to restructuring
and net financial expenses. 
Sequentially, net cash and other liquid assets decreased by EUR 633
million in
the third quarter 2012, primarily due to cash outflows
related to restructuring,
cash outflows related to net financial
expenses, Devices & Services operating
losses as well as capital
expenditures, partially offset by positive Nokia Siemens Networks
operating profits and the receipt of a USD 250 million (approximately
EUR 202 million) quarterly platform support payment from Microsoft. 
In the third quarter 2012, Nokia Siemens Networks' contribution to
net cash from
operating activities was approximately EUR 320 million,
primarily due to net
profit adjusted for non-cash items. At the end
of the third quarter 2012, Nokia
Siemens Networks' contribution to
the Nokia gross cash was EUR 2.0 billion and
contribution to Nokia's
net cash was EUR 620 million. 
Our agreement with Microsoft includes platform support payments from
Microsoft
to us as well as software royalty payments from us to
Microsoft.  In the third
quarter 2012, we received a quarterly
platform support payment of USD 250 million (approximately EUR 202
million). Under the terms of the agreement governing the platform
support payments, the amount of each quarterly platform
support
payment is USD 250 million. We have a competitive software royalty
structure, which includes annual minimum software royalty
commitments. Minimum
software royalty commitments are paid quarterly.
Over the life of the agreement,
both the platform support payments
and the minimum software royalty commitments
are expected to measure
in the billions of US dollars. The total amount of the
platform
support payments is expected to slightly exceed the total amount of
the minimum software royalty commitments. In accordance with the
contract terms, the platform support payments and annual minimum
software royalty commitment payments continue for a corresponding
period of time. 
DEVICES & SERVICES 
The following table sets forth a summary of the results for our
Devices & Services business for the periods indicated, as well as the
year-on-year and
sequential growth rates. 


 
+----------------------------------------------------------------
---------+
| DEVICES & SERVICES                                                      |
| RESULTS SUMMARY                                                         |
+--------------------------+---------+---------+--------+---------+-------+
|                          | Q3/2012 | Q3/2011 |    YoY | Q2/2012 |   QoQ |
|                          |         |         | Change |         |Change |
+--------------------------+---------+---------+--------+---------+-------+
| Net sales (EUR million)1 |   3 563 |   5 392 |   -34% |   4 023 |  -11% |
+--------------------------+---------+---------+--------+---------+-------+
| Mobile device volume     |         |         |        |         |       |
| (million units)          |    82.9 |   106.6 |   -22% |    83.7 |   -1% |
+--------------------------+---------+---------+--------+---------+-------+
| Mobile device ASP (EUR)  |      43 |      51 |   -16% |      48 |  -10% |
+--------------------------+---------+---------+--------+---------+-------+
| Non-IFRS gross margin (%)|   18.5% |   25.7% |        |   18.1% |       |
+--------------------------+---------+---------+--------+---------+-------+
| Non-IFRS operating       |         |         |        |         |       |
| expenses (EUR million)   |     915 |   1 126 |   -19% |   1 090 |  -16% |
+--------------------------+---------+---------+--------+---------+-------+
| Non-IFRS operating       |         |         |        |         |       |
| margin (%)               |   -7.4% |    4.8% |        |   -9.1% |       |
+--------------------------+---------+---------+--------+---------+-------+

 
Note 1: Includes IPR income recognized in Devices & Services Other net
sales. 
The year-on-year and sequential changes in our Devices & Services net
sales,
volumes, average selling prices and gross margin are discussed
below under our
Smart Devices and Mobile Phones business units. On a
year-on-year basis Devices
& Services Other net sales were lower in
the third quarter 2012 primarily due to the recognition in the third
quarter 2011 of approximately EUR 70 million of
non-recurring IPR
income. In the third quarter 2012, Devices & Services Other
net sales
benefitted from sequentially higher IPR income. 
We estimate that our current annual IPR income run-rate is
approximately EUR
0.5 billion. 
We ended the third quarter 2012 within the normal 4 to 6 week channel
inventory
range. On an absolute unit basis and in days of supply
channel inventories declined sequentially. 
Net Sales and Volumes by Geographic Area The following table sets
forth the net sales for our Devices & Services business
for the
periods indicated, as well as the yea
r-on-year and sequential
growth
rates, by geographic area. IPR income is allocated to the
geographic areas contained in this chart. 


 
+----------------------------------------------------------------
------+
| DEVICES & SERVICES NET SALES                                         |
| BY GEOGRAPHIC AREA                                                   |
+----------------------+---------+---------+--------+---------+--------+
|                      |         |         |    YoY |         |    QoQ |
| EUR million          | Q3/2012 | Q3/2011 | Change | Q2/2012 | Change |
+----------------------+---------+---------+--------+---------+--------+
| Europe               |     985 |   1 394 |   -29% |   1 096 |   -10% |
|                      |         |         |        |         |        |
| Middle East & Africa |     682 |     957 |   -29% |     663 |     3% |
|                      |         |         |        |         |        |
| Greater China        |     278 |   1 240 |   -78% |     542 |   -49% |
|                      |         |         |        |         |        |
| Asia-Pacific         |     977 |   1 197 |   -18% |     948 |     3% |
|                      |         |         |        |         |        |
| North America        |      36 |      73 |   -51% |     128 |   -72% |
|                      |         |         |        |         |        |
| Latin America        |     605 |     531 |    14% |     646 |    -6% |
+----------------------+---------+---------+--------+---------+--------+
| Total                |   3 563 |   5 392 |   -34% |    4023 |   -11% |
+----------------------+---------+---------+--------+---------+--------+

  
The following table sets forth the mobile device volumes for our
Devices & Services business for the periods indicated, as well as the
year-on-year and
sequential growth rates, by geographic area. 


 
+---------------------------------------------------------------
-------+
| DEVICES & SERVICES MOBILE DEVICE                                     |
| VOLUMES BY GEOGRAPHIC AREA                                           |
+----------------------+---------+---------+--------+---------+--------+
|                      |         |         |    YoY |         |    QoQ |
| million units        | Q3/2012 | Q3/2011 | Change | Q2/2012 | Change |
+----------------------+---------+---------+--------+---------+--------+
| Europe               |    16.8 |    20.7 |   -19% |    15.3 |    10% |
|                      |         |         |        |         |        |
| Middle East & Africa |    19.1 |    26.0 |   -27% |    19.4 |    -2% |
|                      |         |         |        |         |        |
| Greater China        |     5.8 |    15.9 |   -64% |     7.9 |   -27% |
|                      |         |         |        |         |        |
| Asia-Pacific         |    30.1 |    32.4 |    -7% |    28.6 |     5% |
|                      |         |         |        |         |        |
| North America        |     0.3 |     0.7 |   -57% |     0.6 |   -50% |
|                      |         |         |        |         |        |
| Latin America        |    10.8 |    10.9 |    -1% |    11.9 |    -9% |
+----------------------+---------+---------+--------+---------+--------+
| Total                |    82.9 |   106.6 |   -22% |    83.7 |    -1% |
+----------------------+---------+---------+--------+---------+--------+

  
On a year-on-year basis, the decreases in Greater China net sales and
volumes
were primarily due to Symbian. 
On a year-on-year basis, the decreases in North America net sales and
volumes
were primarily due to Mobile Phones. 
The sequential decreases in net sales and volumes in North America
were primarily due to lower operator and distributor demand for Lumia
as well as our
efforts to prepare the distribution channel for the
upcoming sales start of new
devices. 
Net sales in China decreased sequentially primarily due to lower net
sales of
our Lumia and Symbian devices, primarily reflecting
competitive pressures. Volumes in China decreased sequentially
primarily due to lower volumes of our
Symbian devices, primarily
reflecting competitive pressures. 
Net sales in Europe decreased sequentially primarily due to lower net
sales of
our Symbian and Lumia products, partially offset by higher
net sales of our Mobile Phones devices. Volumes in Europe increased
sequentially primarily due to higher volumes of our Mobile Phones
devices, partially offset by lower volumes
of our Symbian and Lumia
products. 
At constant currency Devices & Services' net sales would have
decreased 36% year-on-year and decreased 13% sequentially. 
Operating Expenses 
Devices & Services non-IFRS operating expenses decreased 19%
year-on-year and
16% sequentially in the third quarter 2012. On a
year-on-year basis, operating
expenses related to Mobile Phones and
Smart Devices decreased 3% and 33%, respectively, in the third
quarter 2012. In addition to the factors described
below, the
year-on-year changes resulted from the proportionate allocation
of
operating expenses being affected by the relative mix of sales and
gross profit
performance between Mobile Phones and Smart Devices. This
resulted in higher and lower relative allocations to Mobile Phones
and Smart Devices, respectively. On a sequential basis, operating
expenses related to Mobile Phones and Smart Devices decreased by 13%
and 18%, respectively, in the third quarter 2012. 
Devices & Services non-IFRS research and development expenses
decreased 21% year-on-year in the third quarter 2012. On a sequential
basis, Devices & Services non-IFRS research and development expenses
decreased 14% in the third
quarter 2012. Both the year-on-year and
sequential declines were primarily due
to cost reductions related to
ramping down Symbian and MeeGo activities, the
focusing of our
efforts and reductions in certain projects within Mobile Phones,
and
overall cost controls. 
Devices & Services non-IFRS sales and marketing expenses decreased
17% year-on-year in the third quarter 2012. Year-on-year, marketing
expenses declined
primarily due to lower marketing expenditure on
Symbian as well as cost controls, partially offset by higher
marketing expenditure on Lumia products. On a sequential basis,
Devices & Services non-IFRS sales and marketing expenses
decreased
23% in the third quarter 2012. Sequentially, marketing expenses
decreased primarily due to lower expenditure on Lumia products
following the
North America launch in the second quarter, headcount
reductions and cost controls. 
Devices & Services non-IFRS administrative and general expenses
decreased 16%
year-on-year in the third quarter 2012 primarily related
to cost savings in support functions, particularly in IT and real
estate management and shared function cost categorization. On a
sequential basis, Devices & Services non-IFRS
administrative and
general expenses increased 31% in the third quarter 2012 due
to
shared function cost categorization which more than offset cost
savings in
support functions. 
In the third quarter 2012, Devices & Services non-IFRS other income
and expense
had a negative year-on-year and sequential impact on
profitability. On a reported basis, other income and expense was
significantly adversely affected in the third quarter 2012 primarily
as a result of restructuring-related expenses
discussed below, which
were recognized in Devices & Services Other. 
Operating Margin 
The lower year-on-year Devices & Services non-IFRS operating margin
in the third
quarter 2012 was primarily due to lower net sales and
gross margin, partially
offset by lower operating expenses. 
The sequentially higher Devices & Services non-IFRS operating margin
in the third quarter 2012 was primarily due to lower operating
expenses as well as slightly higher gross margin. 
Cost Reduction Activities and Planned Operational Adjustments 


 
+----------------------------------------------------------------
---------+
|DEVICES & SERVICES        
                                               |
|RESTRUCTURING SUMMARY                                                    |
+-------------+---------+-------------+------------+------------+---------+
|             | Q3/2012 |Cumulative up|     Q4/2012|        2013|Total    |
|             |(approx- |to Q3/2012   |(approximate|(approximate|(approx. |
|EUR (million)| imate)  |(approximate)|   estimate)|   estimate)|estimate)|
+-------------+---------+-------------+------------+------------+---------+
|Restructuring|         |             |            |            |         |
|related      |         |             |            |            |         |
|charges      |      454|        1 400|Not provided|Not provided|    1 800|
+-------------+---------+-------------+------------+------------+---------+
|Restructuring|         |             |            |            |         |
|related      |         |             |            |            |         |
|cash outflows|      200|          800|         400|         400|    1 600|
+-------------+---------+-------------+------------+------------+---------+

  
Nokia continues to target to reduce its Devices & Services non-IFRS
operating
expenses to an annualized run rate of approximately EUR 3.0
billion by the end
of 2013. 
At the end of the third quarter 2012, Devices & Services and
Corporate Common
had approximately 38 000 employees, a reduction of
approximately 15 500 compared
to third quarter 2011, and
approximately 5 300 compared to second quarter 2012. 
In connection with the implementation of our strategy announced in
February 2011, we have announced and made a number of changes to our
operations. In the
third quarter of 2012, we recognized restructuring
charges and other associated
items of EUR 454 million related to our
restructuring activities in Devices &
Services. By the end of the
third quarter 2012, we had recorded cumulative Devices & Services
restructuring charges and other associated items of approximately EUR
1.4 billion. In total, we expect cumulative Devices &
Services
restructuring charges of approximately EUR 1.8 billion
before the end of 2013.
By the end of the third quarter 2012, Devices
& Services had cumulative restructuring related cash outflows of
approximately EUR 800 million. We expect
Devices & Services
restructuring related cash outflows to be approximately EUR
400
million in fourth quarter 2012 and approximately EUR 400 million in
2013. Of the total expected charges relating to restructuring
activities of approximately
EUR 1.8 billion, we expect Devices &
Services non-cash charges to be approximately EUR 200 million. 
SMART DEVICES 
The following table sets forth a summary of the results for our Smart
Devices
business unit for the periods indicated, as well as the
year-on-year and sequential growth rates. 


 
+----------------------------------------------------------------
---------+
| SMART DEVICES                                                           |
| RESULTS SUMMARY                                                         |
+---------------------------+---------+---------+------+---------+--------+
|                           |         |         |   YoY|         |    QoQ |
|                           | Q3/2012 | Q3/2011 |Change| Q2/2012 | Change |
+---------------------------+---------+---------+------+---------+--------+
| Net sales (EUR millions)1 |     976 |   2 194 | -56% |   1 541 |   -37% |
+---------------------------+---------+---------+------+---------+--------+
| Smart Devices volume      |         |         |      |         |        |
| (million units)           |     6.3 |    16.8 | -63% |    10.2 |   -38% |
+---------------------------+---------+---------+------+---------+--------+
| Smart Devices ASP (EUR)   |     155 |     131 |  18% |     151 |     3% |
+---------------------------+---------+---------+------+---------+--------+
| Gross margin (%)          |   -3.5% |   20.7% |      |    1.7% |        |
+---------------------------+---------+---------+------+---------+--------+
| Operating expenses        |         |         |      |         |        |
| (EUR millions)2           |     441 |     656 | -33% |     540 |   -18% |
+---------------------------+---------+---------+------+---------+--------+
| Contribution margin (%)2  |  -48.9% |   -8.7% |      |  -32.9% |        |
+---------------------------+---------+---------+------+---------+--------+

 
Note 1: Does not include IPR income. IPR income is recognized in
Devices & Services Other net sales. 
Note 2: The year-on-year decrease in operating expenses resulted from
the proportionate allocation of operating expenses being affected by
the relative
mix of sales and gross profit performance between Mobile
Phones and Smart Devices, resulting in lower relative allocations to
Smart Devices in the first,
second and third quarters 2012. 
Net Sales 
On a year-on-year basis, the decline in our Smart Devices net sales
in the third
quarter 2012 was primarily due to lower volumes
partially offset by higher ASPs.
On a year-on-year basis, the volume
decline was primarily due to lower Symbian
volumes partially offset
by Lumia volumes. On a year-on-year basis, ASPs benefitted from the
higher proportion of Lumia net sales. 
On a sequential basis, the decline in our Smart Devices net sales in
the third
quarter 2012 was primarily due to lower Lumia and Symbian
volumes. This was partially offset by higher Smart Devices ASPs,
primarily due to higher Symbian
ASPs as well as a positive impact
related to deferred revenue on services sold
in combination with our
devices. 
Volume 
During the third quarter 2012 we shipped 6.3 million Smart Devices
units, of
which approximately 2.9 million were Lumia products. 
The year-on-year decline in our Smart Devices volumes in the third
quarter 2012
continued to be driven by the strong momentum of
competing smartphone platforms
relative to our Smart Devices
portfolio. Greater China, Europe, Asia-Pacific and Middle East and
Africa showed significant year-on-year decreases in volumes,
whereas
North America and Latin America remained approximately at the same
level
in the third quarter 2012. 
On a sequential basis, the decline in our Smart Devices volumes in
the third
quarter 2012 was primarily due to lower Symbian and Lumia
volumes. All regions
showed a sequential decline in the third quarter
2012 except Middle East and
Africa which remained approximately at
the same level. 
Average Selling Price 
The year-on-year increase in our Smart Devices ASP in the third
quarter 2012 was primarily due to a positive mix shift towards sales
of our Lumia products which
carry a higher ASP than our Symbian
devices, as well as a positive impact related to deferred revenue on
services sold in combination with our devices. 
Sequentially, the increase in our Smart Devices ASP in the third
quarter 2012
was primarily due to higher Symbian ASPs as well as a
positive impact related to deferred revenue on services sold in
combination with our devices. The ASP of
our Lumia products in the
third quarter 2012 was EUR 160, compared to EUR 186 in the second
quarter 2012. This decline was primarily due to a higher
proportion
of sales of the lower priced Nokia Lumia offering as well
as increased erosion
of our prices primarily due to our pricing
actions. 
Gross Margin 
The significant year-on-year decline in our Smart Devices gross
margin in the
third quarter 2012 was primarily due to the recognition
of approximately EUR
120 million of allowances related to excess
component inventory, future purchase
commitments and an inventory
revaluation related to our current Lumia products,
as well as greater
price erosion than cost erosion and higher fixed costs per
unit,
because of lower sales volumes. From an operating system perspective,
the
year-on-year decline in our Smart Devices gross margin in the
third quarter 2012 was primarily due to a lower Symbian gross margin.
In addition sales of
Lumia products which were not 
available in the
third quarter 2011 had a lower
gross margin in the third quarter 2012
than Symbian devices in the third quarter
2011. 
On a sequential basis, the decline in our Smart Devices gross margin
in the third quarter 2012 was primarily due to higher fixed costs per
unit, because of lower sales volumes, as well as greater price erosion
than cost erosion. The EUR 120 million of allowances noted above also
adversely affected our Smart Devices
gross margin in the third
quarter 2012, but to a lesser extent than the EUR 220
million of such
allowances in the second quarter 2012. From an operating
system
perspective, the sequential decline in our Smart Devices gross
margin in the
third quarter was primarily due to a lower Lumia gross
margin, partially offset
by a higher Symbian gross margin. 
Increases or decreases to Smart Devices inventory related allowances
may be required in the future depending on several factors, including
future consumer
demand, particularly related to our current Lumia
products. 
MOBILE PHONES 
The following table sets forth a summary of the results for our
Mobile Phones
business unit for the periods indicated, as well as the
year-on-year and sequential growth rates. 


 
+----------------------------------------------------------------
---------+
| MOBILE PHONES                                                           |
| RESULTS SUMMARY                                                         |
+---------------------------+---------+---------+------+---------+--------+
|                           |         |         |   YoY|         |    QoQ |
|                           | Q3/2012 | Q3/2011 |Change| Q2/2012 | Change |
+---------------------------+---------+---------+------+---------+--------+
| Net sales (EUR millions)1 |   2 366 |   2 915 | -19% |   2 291 |     3% |
+---------------------------+---------+---------+------+---------+--------+
| Mobile Phones             |         |         |      |         |        |
| volume (million units)    |    76.6 |    89.8 | -15% |    73.5 |     4% |
+---------------------------+---------+---------+------+---------+--------+
| Mobile Phones ASP (EUR)   |      31 |      32 |  -3% |      31 |     0% |
+---------------------------+---------+---------+------+---------+--------+
| Gross margin (%)          |   21.7% |   23.6% |      |   24.1% |        |
+---------------------------+---------+---------+------+---------+--------+
| Operating expenses        |         |         |      |         |        |
| (EUR million)2            |     393 |     404 |  -3% |     450 |   -13% |
+---------------------------+---------+---------+------+---------+--------+
| Contribution margin (%)2  |    4.9% |   10.1% |      |    4.3% |        |
+---------------------------+---------+---------+------+---------+--------+

 
Note 1: Does not include IPR income. IPR income is recognized in
Devices & Services Other net sales. 
Note 2: The year-on-year increase in operating expenses resulted from
the proportionate allocation of operating expenses being affected by
the relative
mix of sales and gross profit performance between Mobile
Phones and Smart Devices, resulting in higher relative allocations to
Mobile Phones in the first,
second and third quarters 2012. 
Net Sales 
On a year-on-year basis, the decline in our Mobile Phones net sales
in the third
quarter 2012 was primarily due to lower volumes as well
as lower ASPs. On a sequential basis, the increase in our Mobile
Phones net sales in the third quarter 2012 was due to higher volumes. 
Volume 
During the third quarter 2012 we shipped 76.6 million Mobile Phones
units, of
which 6.5 million were Asha full touch smartphones. 
On a year-on-year basis, the decrease in our Mobile Phones volumes in
the third
quarter 2012 was primarily due to the decline in volumes of
our lower priced
devices that we sell to our customers for below EUR
30. Volumes of our higher
priced devices also declined, partially
offset by volumes of our newly launched
Asha full touch smartphones. 
On a sequential basis, the increase in our Mobile Phones volumes in
the third
quarter 2012 was primarily due to volumes of our Asha full
touch smartphones. In addition, volumes of our devices that we sell to
our customers for below EUR 30 increased sequentially, whereas
volumes of our QWERTY devices declined sequentially. 
Average Selling Price 
The year-on-year decline in our Mobile Phones ASP in the third
quarter 2012 was
primarily due to an increased proportion of sales of
lower priced devices. 
On a sequential basis, our Mobile Phones ASP was approximately flat
in the third
quarter 2012 as higher sales of our lower priced devices
that we sell to our
customers for below EUR 30 were offset by higher
sales of our Asha full touch
smartphones which carry higher ASPs. 
Gross Margin 
Both on a year-on-year as well as a sequential basis, the decline in
our Mobile
Phones gross margin in the third quarter 2012 was primarily
due to a greater
proportion of sales of lower gross margin devices. 
LOCATION & COMMERCE 
The following table sets forth a summary of the results for Location
& Commerce
for the periods indicated, as well as the year-on-year and
sequential
growth
rates. 


 
+----------------------------------------------------------------
---------+
| LOCATION & COMMERCE                                                     |
| RESULTS SUMMARY                                                         |
+--------------------------+---------+---------+-------+---------+--------+
|                          |         |         |   YoY |         |    QoQ |
|                          | Q3/2012 | Q3/2011 |Change | Q2/2012 | Change |
+--------------------------+---------+---------+-------+---------+--------+
| Net sales (EUR millions) |     265 |     282 |   -6% |     283 |    -6% |
+--------------------------+---------+---------+-------+---------+--------+
| External net sales       |         |         |       |         |        |
| (EUR millions)           |     179 |     181 |   -1% |     180 |    -1% |
+--------------------------+---------+---------+-------+---------+--------+
| Internal net sales       |         |         |       |         |        |
| (EUR millions)           |      86 |     101 |  -15% |     103 |   -17% |
+--------------------------+---------+---------+-------+---------+--------+
| Non-IFRS                 |         |         |       |         |        |
| gross margin (%)         |   80.4% |   81.6% |       |   77.4% |        |
+--------------------------+---------+---------+-------+---------+--------+
| Non-IFRS operating       |         |         |       |         |        |
| expenses (EUR millions)  |     175 |     201 |  -13% |     185 |    -5% |
+--------------------------+---------+---------+-------+---------+--------+
| Non-IFRS operating       |         |         |       |         |        |
| margin (%)               |   14.0% |    9.9% |       |   14.5% |        |
+--------------------------+---------+---------+-------+---------+--------+

 
Net Sales 
Starting in the third quarter 2012, we are disclosing additional
financial information for Location & Commerce:  external and internal
net sales. External
net sales represent sales of content licenses,
platform licenses, and applications to customers other than Nokia. 
Currently, Location & Commerce external net sales are predominantly
from the licensing of map content. Over
time, we expect a gradual but
steady migration of external net sales towards
platform related
revenue as our customers increasingly use the Nokia
Location
Platform, which enables new and innovative location services
and applications.
Internal net sales represent Location & Commerce
sales in conjunction with Nokia
devices. 
In the third quarter 2012, the year-on-year decline in external
Location & Commerce net sales was primarily due to lower sales to our
personal navigation
device customers as industry volumes continued to
decline, almost entirely offset by hig
her sales of map content
licenses to vehicle customers due to higher consumer uptake of
vehicle navigation systems.  In the third quarter 2012, the
sequential decline in external Location & Commerce net sales was
primarily due to lower map update sales, related to the timing of our
update
campaigns, and seasonally lower vehicles sales, almost
entirely offset by the
non-recurrence of a negative sales adjustment
related to historical license fees
in the normal course of business
for a particular customer. 
In the third quarter 2012, the year-on-year and sequential declines
in internal
Location & Commerce net sales were due to declines in
sales to our Smart Devices
business unit. 
Gross Margin 
On a year-on-year basis, the decline in Location & Commerce non-IFRS
gross margin in the third quarter 2012 was primarily due to lower
personal navigation
device sales which carry higher gross margins,
lower internal sales which carry
higher gross margins, and higher
vehicle sales which carry lower gross margins.
In addition, there was
a shift of research and development operating expenses to cost of
sales as a result of the divestment of the media advertising
business
and a lower allocation of production costs from Location &
Commerce to Devices & Services as the usage of certain shared
services has declined. 
On a sequential basis, the increase in Location & Commerce non-IFRS
gross margin
in the third quarter 2012 was primarily due to the
non-recurrence of a negative
sales adjustment related to historical
license fees in the normal course of business for a particular
customer, as well as lower map update sales which carry a lower gross
margin. 
Operating Expenses 
Location & Commerce non-IFRS research and development expenses
decreased 13%
year-on-year and 4% sequentially in the third quarter
2012 primarily due to cost
reductions as well as a shift in expenses
from research and development to costs
of sales related to the
divestment of the media advertising business. 
Location & Commerce non-IFRS sales and marketing expenses decreased
21%  year-on-year and 4% sequentially in the third quarter 2012. On a
year-on-year basis, the decrease was primarily due to cost reduction
actions. On a sequential basis, the decrease was primarily due to
lower marketing costs due to timing of update campaigns. 
Location & Commerce non-IFRS administrative and general expenses
increased 6%
year-on-year and decreased 19% sequentially in the third
quarter 2012. On a year-on-year basis, the increase was primarily due
to the higher use of services
provided by shared support functions.
On a sequential basis, the decrease was
primarily due to lower use of
services provided by shared support functions. 
Location & Commerce non-IFRS other income and expense for the third
quarter 2012 was approximately zero, compared to expense of EUR 1
million in the third
quarter 2011 and income of EUR 7 million in the
second quarter 2012. 
Operating Margin 
The higher year-on-year Location & Commerce non-IFRS operating margin
in the
third quarter 2012 was primarily due to lower operating
expenses, partially offset by lower net sales and lower gross margin. 
The approximately flat sequential Location & Commerce non-IFRS
operating margin
in the third quarter 2012 was primarily due to higher
gross margin and lower
operating expenses, partially offset by lower
net sales and lower other income. 
NOKIA SIEMENS NETWORKS 
The following table sets forth a summary of the results for Nokia
Siemens Networks for the periods indicated, as well as the
year-on-year and sequential
growth rates. 


 
+----------------------------------------------------------------
---------+
| NOKIA SIEMENS NETWORKS                                                  |
| RESULTS SUMMARY                                                         |
+-------------------------+---------+---------+--------+---------+--------+
|                         |         |         |    YoY |         |    QoQ |
|                         | Q3/2012 | Q3/2011 | Change | Q2/2012 | Change |
+-------------------------+---------+---------+--------+---------+--------+
| Net sales (EUR million) |   3 501 |   3 413 |     3% |   3 343 |     5% |
+-------------------------+---------+---------+--------+---------+--------+
| Non-IFRS gross          |         |         |        |         |        |
| margin (%)              |   32.2% |   26.8% |        |   26.6% |        |
+-------------------------+---------+---------+--------+---------+--------+
| Non-IFRS operating      |         |         |        |         |        |
| expenses (EUR million)  |     797 |     936 |   -15% |     836 |    -5% |
+-------------------------+---------+---------+--------+---------+--------+
| Non-IFRS operating      |         |         |        |         |        |
| margin (%)              |    9.2% |    0.2% |        |    0.8% |        |
+-------------------------+---------+---------+--------+---------+--------+

 
Net Sales 
The following table sets forth 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                                         |
+----------------------+---------+---------+--------+---------+--------+
|                      |         |         |    YoY |         |    QoQ |
| EUR millions         | Q3/2012 | Q3/2011 | Change | Q2/2012 | Change |
+----------------------+---------+---------+--------+---------+--------+
| Europe               |     918 |   1 074 |   -15% |     990 |    -7% |
|                      |         |         |        |         |        |
| Middle East & Africa |     325 |     301 |     8% |     304 |     7% |
|                      |         |         |        |         |        |
| Greater China        |     313 |     302 |     4% |     340 |    -8% |
|                      |         |         |        |         |        |
| Asia-Pacific         |   1 266 |     978 |    29% |   1 028 |    23% |
|                      |         |         |        |         |        |
| North America        |     285 |     304 |    -6% |     300 |    -5% |
|                      |         |         |        |         |        |
| Latin America        |     394 |     454 |   -13% |     381 |     3% |
+----------------------+---------+---------+--------+---------+--------+
| Total                |    3501 |    3413 |     3% |    3343 |     5% |
+----------------------+---------+---------+--------+---------+--------+

  
The year-on-year increase in Nokia Siemens Networks' net sales in the
third quarter 2012 was primarily due to higher sales of infrastructure
equipment and
slightly higher sales of services, partially offset by a
decline in sales of
business areas not consistent with Nokia Siemens
Networks' strategic focus. On a regional basis, the year-on-year
growth was primarily due to higher net sales in Asia Pacific, most
notably in Japan which saw strong growth in sales of
both
infrastructure equipment and services. This was partially offset
by lower sales
in Europe of both infrastructure equipment and
services, particularly infrastructure equipment sales in Western
Europe, primarily due to the continuation of the weaker operator
investment environment in that region and
lower services sales
consistent with Nokia Siemens Networks' focused strategy. 
The sequential increase in Nokia Siemens Networks' net sales in the
third quarter 2012 was driven by the higher sales of infrastructure
equipment. Sales
of services were approximately flat compared to the
second quarter 2012. On a regional basis, the sequential growth was
primarily due to higher net sales in
Asia Pacific, most notably in
Japan which saw strong growth in sales of both
infrastructure
equipment and services. This was partially offset by lower sales
in
Europe of both services and infrastructure equipment, particularly
infrastructure equipment sales in Western Europe.  In addition, sales
of both
services and infrastructure equipment in China also declined
primarily due to
ongoing technology transitions which have made the
timing of operator spending
volatile. 
At constant currency Nokia Siemens Networks' net sales would have
decreased 3%
year-on-year and increased 1% sequentially. 
Gross Margin 
On both a year-on-year and sequential basis, the increase in Nokia
Siemens Networks' non-IFRS gross margin in the third quarter 2012  was
due to an unusually favorable product and regional mix towards higher
gross margin revenues, particularly in infrastructure equipment,
driven mainly by Nokia Siemens Networks priority markets including
Japan and Korea. In addition, Nokia
Siemens Networks' non-IFRS gross
margin in the third quarter 2012 was also driven by structural cost
savings in its production overheads as part of its
broader cost
savings targets. 
Operating Expenses 
Nokia Siemens Networks' non-IFRS research and development expenses
decreased
14% year-on-year and 5% sequentially in the third quarter
2012 primarily due to improvements in overall research and
development efficiency. 
Year-on-year, Nokia Siemens Networks' non-IFRS sales and marketing
expenses decreased 15% in the third quarter 2012 primarily due to
structural cost savings, partially offset by higher sales.  On a
sequential basis, Nokia Siemens
Networks non-IFRS sales and marketing
expenses decreased 6% in the third quarter
2012 primarily due to
structural cost savings, partially offset by the higher
net sales. 
Nokia Siemens Networks' non-IFRS administrative and general expenses
decreased
18% year-on-year in the third quarter 2012 primarily due to
structural cost savings, partially offset by higher net sales. On a
sequential basis, Nokia Siemens Networks non-IFRS administrative and
general expenses increased 3% in
the third quarter 2012, primarily
due to lower expense reallocation to other
function costs which more
than offset structural cost savings. 
Nokia Siemens Networks' non-IFRS other income and expense for the
third quarter
2012 was an expense of EUR 8 million, compared to income
of EUR 26 million in
the third quarter 2011 and expense of EUR 25
million in the second quarter 2012.  On both a year-on-year and
sequential basis, this was primarily due to
changes in the doubtful
account allowances. 
Operating Margin 
The year-on-year and sequential increase in Nokia Siemens Networks
non-IFRS operating margin in the third quarter 2012 was primarily due
to the higher gross
margin, lower operating expenses, and to a lesser
extent, higher net sales. 
Strategy Update and Global Restructuring Program 


 
+----------+---------+-----------+---------+---------+---------+-
--------+
|NOKIA SIEMENS NETWORKS                                                  |
|RESTRUCTURING SUMMARY                                                   |
+----------+---------+-----------+---------+---------+---------+---------+
|          |         | Cumulative|  Q4/2012|    2013 |    2014 |    Total|
|          |  Q3/2012|      up to| (approx.| (approx.| (approx.| (approx.|
|EUR       |(approx.)|   Q3/2012 |    est.)|    est.)|    est.)|    est.)|
|(million) |         |  (approx.)|         |         |         |         |
+----------+---------+-----------+---------+---------+---------+---------+
|Restruct- |         |           |         |         |         |         |
|uring     |         |           |         |         |         |         |
|related   |         |           | Not     | Not     | Not     |         |
|charges   |       74|      1 000| provided| provided| provided|    1 200|
+----------+---------+-----------+---------+---------+---------+---------+
|Restruct- |         |           |         |         |         |         |
|uring     |         |           |         |         |         |         |
|related   |         |           |         |         |         |         |
|cash      |         |           |         |         |         |         |
|outflows  |      180|        450|      250|      400|      100|    1 200|
+----------+---------+-----------+---------+---------+---------+---------+

  
On November 23, 2011 Nokia Siemens Networks announced its strategy to
focus on
mobile broadband and services and the launch of an extensive
global restructuring program. 
At the end of the third quarter 2012, NSN had approximately 60 600
employees, a reduction of approximately 14 300 compared to third
quarter 2011, and approximately 2 700 compared to second quarter
2012. 
Nokia Siemens Networks continues to target to reduce its non-IFRS
annualized
operating expenses and production overheads by EUR 1
billion by the end of 2013, compared to the end of 2011. While these
savings are expected to come largely from organizational
streamlining, the company will also target areas
such as real estate,
information technology, product and service procurement
costs,
overall general and administrative expenses, and a significant
reduction
of suppliers in order to further lower costs and improve
quality. 
In the third quarter of 2012, Nokia Siemens Networks recognized
restructuring
charges and other associated items of EUR 74 million
related to this restructuring program, resulting in cumulative
charges of approximately EUR 1.0
billion. In total, Nokia Siemens
Networks expects cumulative restructuring charges of approximately
EUR 1.2 billion related to this restructuring program
before the end
of 2012. By the end of the third quarter 2012, Nokia Siemens Networks
had cumulative restructuring related cash outflows of approximately
EUR 450 million related to this restructuring program. Nokia Siemens
Networks expects restructuring-related cash outflows to be
approximately EUR 250 million
in the fourth quarter 2012,
approximately EUR 400 million in 2013, and approximately EUR 100
million in 2014 related to this restructuring program. 
Cash preservation is a clear priority at Nokia Siemens Networks, and
the company
intends to be self-funding in all aspects of its
operations.  Nokia Siemens Networks' restructuring program, combined
with the company's focus on improving
its financial performance, is
designed to enable the company to end 2012 with
higher net cash than
at the end of 2011. 
THIRD QUARTER 2012 OPERATING HIGHLIGHTS 
NOKIA OPERATING HIGHLIGHTS 
- Nokia was again selected as a component of the Dow Jones
Sustainability World
Index (DJSI) and Dow Jones Sustainability Europe
Index in the DJSI 2012 Review. 
- Nokia was included by the Carbon Disclosure Project (CDP) in the
Carbon Disclosure Leadership Index and the Carbon Performance
Leadership Index, receiving recognition both for its disclosure of
climate change information and
the action it is taking to reduce its
emissions. 
- Since the end of the quarter, Nokia completed its divestment of
Vertu, the
global leader in luxury mobile phones, to EQT VI. The
transaction was originally
announced on June 14, 2012.  As part of
the transaction, approximately 1 000
employees have transferred with
Vertu. Nokia retains a 10% minority shareholding
in Vertu. 
DEVICES & SERVICES OPERATING HIGHLIGHTS 
SMART DEVICES 
- Nokia announced the Nokia Lumia 920 and the Nokia Lumia 820, the
first devices
in Nokia's Windows Phone 8 range which are expected to
ship in select markets
during the fourth quarter 2012. The Nokia
Lumia 920 is the flagship Windows Phone 8 smartphone, including the
latest advances in Nokia PureView imaging innovation as well as
wireless charging. The Nokia Lumia 820 is a stylish, mid-range
smartphone that delivers high-end performance in a compact package.
Both the Lumia 820 and Lumia 920 come with Nokia City Lens, a new
augmented reality
experience. 
- Nokia announced a range of wireless charging accessories and
partnerships. The Fatboy Recharge Pillow provides an alternative way
to charge the Lumia 920 and
Lu
mia 820 wirelessly, while HARMAN'S JBL
brand introduced the JBL PowerUP, a
wireless charging docking station
with high quality audio in retro styling. Nokia has also agreed with
Virgin Atlantic to put wireless charging stations in the London
Heathrow Clubhouse lounge and Coffee Bean & Tea Leaf to put
charging
plates on tables in some of their cafes. 
- Nokia completed the acquisition of all technologies and
intellectual property
from Scalado AB to strengthen Nokia's leading
position in mobile imaging. As
part of the transaction, approximately
50 world-class imaging specialists transferred to Nokia. 
- Nokia announced the launch of its free music streaming service
Nokia Music in the United States. Nokia Music is a free mobile
experience exclusive to Nokia
Lumia handsets, providing consumers
with a simple and delightful way to discover
and enjoy music. 
- Nokia announced the Nokia Purity Pro Wireless Stereo Headset by
Monster. The
new headset, which comes in different colors, offers a
wire-free connection to
your phone. Music transfer is by Bluetooth
and the headset features one-touch
pairing with your smartphone using
NFC. 
MOBILE PHONES 
- Nokia announced the Nokia Asha 308 and Asha 309, new additions to
the Asha
Touch family. The dual SIM Nokia Asha 308 and single SIM
Nokia Asha 309 give
consumers fast web access at low cost. Nokia also
released a new version of Nokia Xpress Browser, which enables up to
90% more efficient mobile browsing and faster access to rich web
applications compared to conventional browsers. The
Asha 308 and Asha
309 offer a fluid 'swipe' user interface and an open environment for
third-party application development, characteristics that have
earned
the complete Asha Touch range full smartphone classification from
global
market research companies and analysts such as GfK. 
- Nokia unveiled Nokia Life+, the latest evolution of its widely-used
Nokia Life
service. Nokia Life+ is a Web application, which will
provide millions of people
with valuable information on education,
health and "infotainment" topics. Nokia
Life+ will be supported by
the Nokia Asha 308 and Nokia Asha 309 smartphones
alongside a wide
range of Nokia mobile phones. 
LOCATION & COMMERCE OPERATING HIGHLIGHTS 
Nokia's Location & Commerce business continued to strengthen both its
portfolio
of location-based offerings with updates to its signature
applications and its
customer base through new partnerships and
licensing deals during the third quarter: 
- With its global footprint, high quality and broad array of features
such as
geocoding, routing and traffic, we believe the Nokia Location
Platform (NLP) is the world's most advanced location platform,
offering numerous opportunities for third parties to build upon.
During the third quarter, Amazon became an NLP licensee for maps and
geocoding. 
- After announcing earlier this year that it is teaming up with
Groupon to bring
local and national deals to Nokia customers,
Location & Commerce released a new
version of Nokia Maps for the
Lumia range that integrates Groupon Now! Deals
into the app. 
- Location & Commerce brought Nokia City Lens to its Lumia range.
Nokia City
Lens is an augmented reality application, which turns the
phone's camera viewfinder into a new way to see information about
restaurants, shops, hotels
and more overlaid onto the surfaces of
buildings for an intuitive way to find
hidden gems. 
- Location & Commerce released an updated version of Nokia Transport,
a mobile
application for the Lumia range providing underground, tram,
suburban train and
bus directions for more than 500 cities in 46
countries in a convenient way. 
- Location & Commerce released an update to the beta version of Nokia
Pulse, an application for smarter messaging, automatically tagging
even simple messages
with location information to make them more
useful and powerful. 
- Nokia announced that Location & Commerce is providing NAVTEQ
Traffic services
to Spectrum Medya, a leading Turkish broadcaster, for
distribution via Radio
Data System (RDS). 
- Location & Commerce continued to deliver automotive-grade maps
content and
solutions to a number of major industry players. During
the quarter, Nokia announced that it is supplying NAVTEQ Maps to BMW
for its next-generation navigation system for the BMW 7-series ; to
Hyundai, for its new head units; to Mercedes, for its A-Class models;
to Volkswagen, for systems for brands throughout the Volkswagen
group; to Pioneer, for  its aftermarket navigation
systems; and to
Peugeot, for its Peugeot 107 model, which represents the first
ever
embedded navigation system in an A segment car at Peugeot. 
- Nokia announced that Location & Commerce is supplying modified
pan-European
reference data to the Ford Motor Company to enable its
Emergency Assistance technology to not only identify the location of
the driver in need of help, but
also the appropriate language needed
to alert local emergency service operators. 
- Nokia announced that its Location & Commerce business has
collaborated with
Esri to advance the location intelligence
capabilities of Esri's Business Analyst and Community Analyst
products by providing high-quality NAVTEQ Maps. 
- Nokia announced that Location & Commerce is supplying its global
Transit and
Pedestrian Content (TaP) for Garmin's new Urban Guidance
function. 
- In indoor mapping, Location & Commerce continued to steadily
increase its coverage of venues and buildings around the world and
now covers 5 100 venues
and altogether 18 000 buildings in 40
countries. 
NOKIA SIEMENS NETWORKS OPERATING HIGHLIGHTS 
- Nokia Siemens Networks continued its mobile broadband deal
momentum, adding
commercial LTE deals in the third quarter, including:
refarming the GSM frequency band and providing infrastructure and
services for a 4G roll-out for
Optus in Australia; enabling
Slovenia's first commercial 4G services for Si.mobil; launching
Russia's first TD-LTE 4G network for Mobile TeleSystems; and
modernizing the Radio Access Network and expanding HSPA+ and LTE
networks for
Polkomtel in Poland. 
- Nokia Siemens Networks also worked with Cisco and Harris
Corporation to support FirstNet's goal of a nationwide, multi-vendor
public safety LTE broadband network for first responder
communications in the U.S., with the successful completion of the
initial phase of testing. 
- In LTE technology developments, Nokia Siemens Networks announced
the expansion
of its portfolio, to enable smooth 4G rollouts using the
'Digital Dividend' in
the Asia Pacific region, Latin America and
other parts of the world. Nokia Siemens Networks showcased LTE's low
latency and high data transmission rates
with Telefonica Germany at
the first ever pan-European technology festival
Campus Party in
Berlin in September. In September, Nokia Siemens Networks achieved a
world record speed of 1.6 Gbps receiving and sending data in
simultaneous downlink and uplink connections at its lab in Arlington
Heights,
Illinois, U.S. 
- In Optical, Nokia Siemens Networks deployed a new overlay network
across Europe to address the sizeable growth in data traffic,
delivering speeds of 100G and beyond, for fiber-based telecom service
provider TeliaSonera International Carrier. Nokia Siemens Networks'
optical technology has been accorded Approved Product List (APL)
status by the U.S. government's Defense
Information Systems Agency
(DISA), enabling the Department of Defense (DoD) to
purchase and
deploy the company's optical technology. 
- At the end of September, Nokia Siemens Networks set in motion a
series of Liquid Net and Customer Experience Management portfolio
launches and updates to be released during October 2012. These will
culminate in a new approach to delivering mobile broadband, charting
a path for operators to be able to profitably provide a gigabyte of
personalized data per day for every user by
2020. 
- Since the end of the third quarter, Nokia Siemens Networks has
completed the
divestment of the assets of the non-c
ore IPTV business
to Belgacom and Accenture. 
FORWARD-LOOKING STATEMENTS 
It should be noted that certain statements herein that are not
historical facts
are forward-looking statements, including, without
limitation, those regarding:
A) the expected plans and benefits of
our partnership with Microsoft to bring
together complementary assets
and expertise to form a global mobile ecosystem
for smartphones; B)
the timing and expected benefits of our new strategies, including
expected operational and financial benefits and targets as well
as
changes in leadership and operational structure; C) the timing of
the deliveries
of our products and services; D) our ability to
innovate, develop, execute and
commercialize new technologies,
products and services; E) expectations regarding
market developments
and structural changes; F) expectations and targets regarding our
industry volumes, market share, prices, net sales and margins of
our
products and services; G) expectations and targets regarding our
operational
priorities and results of operations; H) expectations and
targets regarding collaboration and partnering arrangements; I) the
outcome of pending and threatened litigation; J) expectations
regarding the successful completion of
restructurings, investments,
acquisitions and divestments on a timely basis and
our ability to
achieve the financial and operational targets set in connection
with
any such restructurings, investments, acquisitions and divestments;
and K) statements preceded by "believe," "expect," "anticipate,"
"foresee," "target,"
"estimate," "designed," "aim", "plans,"
"intends," "will" or similar expressions. These statements are based
on management's best assumptions and
beliefs in light of the
information currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the
results
that we currently expect. Factors that could cause these
differences
include, but are not limited to:  1) our success in the
smartphone market, including our ability to introduce and bring to
market quantities of attractive,
competitively priced Nokia products
that operate on the  Windows Phone operating
system that are
positively differentiated from our competitors' products,
both
outside and within the Windows Phone ecosystem; 2) our ability
to make Nokia
products that operate on the Windows Phone operating
system a competitive choice
for consumers, and together with
Microsoft, our success in encouraging and supporting a competitive
and profitable global ecosystem for Windows Phone products that
achieves sufficient scale, value and attractiveness to all
market
participants; 3) reduced demand for, and net sales of, Nokia
products that operate on the Windows Phone 7 operating system in
anticipation and availability
of Nokia products with the new Windows
Phone 8 operating system; 4) the difficulties we experience in having
a competitive offering of Symbian devices
and maintaining the
economic viability of the Symbian smartphone platform during
the
transition to Windows Phone as our primary smartphone platform; 5)
our ability to effectively and timely implement planned changes to our
operational
structure, including the planned restructuring measures,
and to successfully
complete the planned investments, acquisitions
and divestments in order to improve our operating model and achieve
targeted efficiencies and reductions in operating expenses as well as
our ability to accurately estimate the related
restructuring charges
and restructuring related cash outflows; 6) our future
sales
performance, among other factors, may require us to recognize
allowances
related to excess component inventory, future purchase
commitments and inventory
write-offs  in our Devices & Services
business;  7) our ability to realize a
return on our investment in
next generation devices, platforms and user experiences; 8) our
ability to produce attractive and competitive devices in our Mobile
Phones business unit including feature phones and devices with more
smartphone-like features such as full touch devices, in a timely and
cost efficient manner with differentiated hardware, software,
localized services and
applications; 9) the intensity of competition
in the various markets where we do business and our ability to
maintain or improve our market position or respond
successfully to
changes in the competitive environment; 10) our ability to retain,
motivate, develop and recruit appropriately skilled employees; 11)
the
success of our Location & Commerce strategy, including our
ability to establish
a successful location-based platform, provide
support for our Devices & Services
business and create new sources of
revenue from our location-based services and
commerce assets; 12) our
actual performance in the short-term and long-term could be
materially different from our forecasts, which could impact future
estimates of recoverable value of our reporting units and may result
in impairment charges; 13) our success in collaboration and partnering
arrangements
with third parties, including Microsoft; 14) our ability
to increase our speed
of innovation, product development and
execution to bring new innovative and
competitive mobile products and
location-based or other services to the market
in a timely manner;
15) our dependence on the development of the mobile and
communications industry, including location-based and other services
industries,
in numerous diverse markets, as well as on general
economic conditions globally
and regionally; 16) our ability to
protect numerous patented standardized or
proprietary technologies
from third-party infringement or actions to invalidate
the
intellectual property rights of these technologies; 17) our ability
to maintain and leverage our traditional strengths in the mobile
product market if we are unable to retain the loyalty of our mobile
operator and distributor customers and consumers as a result of the
implementation of our strategies or
other factors; 18) the success,
financial condition and performance of our suppliers, collaboration
partners and customers; 19) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the
quality,
safety, security and timely delivery of our products and
services; 20) our ability to source sufficient amounts of fully
functional quality components,
sub-assemblies, software and services
on a timely basis without interruption and on favorable terms; 21)
our ability to manage our inventory and timely adapt our supply to
meet changing demands for our products; 22) any actual or even
alleged
defects or other quality, safety and security issues in our
products; 23) the
impact of a cybersecurity breach or other factors
leading to any actual or alleged loss, improper disclosure or leakage
of any personal or consumer data
collected by us or our partners or
subcontractors, made available to us or stored in or through our
products; 24) our ability to successfully manage the
pricing of our
products and costs related to our products and operations;
25)
exchange rate fluctuations, including, in particular,
fluctuations between the
euro, which is our reporting currency, and
the US dollar, the Japanese yen and
the Chinese yuan, as well as
certain other currencies; 26) our ability to protect the
technologies, which we or others develop or that we license,
from
claims that we have infringed third parties' intellectual
property rights, as
well as our unrestricted use on commercially
acceptable terms of certain technologies in our products and
services; 27) the impact of economic, political, regulatory or other
developments on our sales, manufacturing facilities and assets
located in emerging market countries; 28) the impact of
changes in
government policies, trade policies, laws or regulations where
our
assets are located and where we do business; 29) the potential
complex tax issues and obligations we may incur to pay additional
taxes in the various jurisdictions in which
 we do business and our
actual or anticipated performance,
among other factors, could result
in allowances related to deferred tax assets;
30) any disruption to
information technology systems and networks that our operations rely
on; 31) unfavorable outcome of litigations;  32) allegations of
possible health risks from electromagnetic fields generated by base
stations and mobile products and lawsuits related to them, regardless
of merit; 33) Nokia
Siemens Networks ability to implement its new
strategy and restructuring plan
effectively and in a timely manner to
improve its overall competitiveness and
profitability; 34) Nokia
Siemens Networks' success in the telecommunications
infrastructure
services market and Nokia Siemens Networks' ability to effectively
and profitably adapt its business and operations in a timely
manner
to the increasingly diverse service needs of its customers;
35) Nokia Siemens
Networks' ability to maintain or improve its market
position or respond successfully to changes in the competitive
environment; 36) Nokia Siemens Networks' liquidity and its ability to
meet its working capital requirements;
37) Nokia Siemens Networks'
ability to timely introduce new competitive products, services,
upgrades and technologies; 38) Nokia Siemens Networks' ability to
execute successfully its strategy for the acquired Motorola
Solutions
wireless network infrastructure assets; 39) developments
under large, multi-year
contracts or in relation to major customers
in the networks infrastructure and
related services business; 40) the
management of our customer financing exposure, particularly in the
networks infrastructure and related services business; 41) whether
ongoing or any additional governmental investigations into
alleged
violations of law by some former employees of Siemens may involve
and
affect the carrier-related assets and employees transferred by
Siemens to Nokia
Siemens Networks; and 42) any impairment of Nokia
Siemens Networks customer relationships resulting from ongoing or any
additional governmental investigations involving the Siemens
carrier-related operations transferred to
Nokia Siemens Networks, as
well as the risk factors specified on pages 13-47 of Nokia's annual
report on Form 20-F for the year ended December 31, 2011 under
Item
3D. "Risk Factors." Other unknown or unpredictable factors or
underlying
assumptions subsequently proving to be incorrect could
cause actual results to
differ materially from those in the
forward-looking statements. Nokia does not
undertake any obligation
to publicly update or revise forward-looking statements, whether as a
result of new information, future events or otherwise,
except to the
extent legally required. 
Nokia, Helsinki - October 18, 2012 
- Nokia plans to publish its
fourth quarter and annual 2012 report on January
24, 2013. 
- Nokia plans to publish the "Nokia in 2012" annual report, which
includes the
review by the Board of Directors and the audited annual
accounts, in week 13 of 2013. 
- Nokia's Annual General Meeting is scheduled to be held on May 7,
2013. 
www.nokia.com 
This announcement is distributed by Thomson Reuters on behalf of
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that: 
(i) the releases contained herein are protected by copyright and    
other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and     
originality of the information contained therein. 
Source: NOKIA via Thomson Reuters ONE 
[HUG#1650314] 
Media and Investor Contacts: 
Corporate Communications
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email: press.services@nokia.com 
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