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Recasting of Nokia Quarterly and Full Year 2010 and First, Second and Third Quarter 2011 Results

(January 25, 2012)

ESPOO, FINLAND -- (Marketwire) -- 01/25/12 --


Nokia Corporation Stock exchange release January 25, 2012 at 15:00 (CET +1)


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

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

- Smart Devices (within Devices & Services) - Mobile Phones (within Devices & Services) - Location & Commerce - Nokia Siemens Networks

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

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

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

FIRST QUARTER 2010, REPORTED, EUR million (unaudited) Smart Mobile Devices & Devices & Devices 1- Phones 1- Services other Services 1- 3/2010 3/2010 1-3/2010 3/2010 ------------ ------------ -------------- ------------ Net sales 3,363 3,194 107 6,664 Cost of sales -2,243 -2,233 -55 -4,531 ------------ ------------ -------------- ------------ Gross profit 1,120 961 52 2,133 % of net sales 33.3 30.1 48.6 32.0 Operating expenses -846 -341 -107 -1,294 Other income and expenses 28 - 9 37 ------------ ------------ -------------- ------------ Contribution 302 620 -46 % of net sales 9.0 19.4 -43.0 ------------ ------------ -------------- ------------ Operating profit 876 % of net sales 13.1 ------------ ------------ -------------- ------------ FIRST QUARTER 2010, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 1- Eliminations Group 1- 1-3/2010 1-3/2010 3/2010 1-3/2010 3/2010 ---------- ---------- ---------- ------------ ---------- Net sales 193 2,718 - -53 9,522 Cost of sales -30 -1,936 - 53 -6,444 ---------- ---------- ---------- ------------ ---------- Gross profit 163 782 - - 3,078 % of net sales 84.5 28.8 32.3 Operating expenses -306 -1,015 -12 - -2,627 Other income and expenses 1 7 -8 - 37 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -142 -226 -20 - 488 % of net sales -73.6 -8.3 5.1 ---------- ---------- ---------- ------------ ---------- SECOND QUARTER 2010, REPORTED, EUR million (unaudited) Devices & Smart Mobile Services Devices & Devices 4- Phones 4- other 4- Services 6/2010 6/2010 6/2010 4-6/2010 ---------- ---------- ---------- ---------- Net sales 3,503 3,190 105 6,798 Cost of sales -2,389 -2,304 -60 -4,753 ---------- ---------- ---------- ---------- Gross profit 1,114 886 45 2,045 % of net sales 31.8 27.8 42.9 30.1 Operating expenses -862 -374 -115 -1,351 Other income and expenses 2 1 16 19 ---------- ---------- ---------- ---------- Contribution 254 513 -54 % of net sales 7.3 16.1 -51.4 ---------- ---------- ---------- ---------- Operating profit 713 % of net sales 10.5 ---------- ---------- ---------- ---------- SECOND QUARTER 2010, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 4- Eliminations Group 4- 4-6/2010 4-6/2010 6/2010 4-6/2010 6/2010 ---------- ---------- ---------- ------------ ---------- Net sales 208 3,039 - -42 10,003 Cost of sales -51 -2,170 - 42 -6,932 ---------- ---------- ---------- ------------ ---------- Gross profit 157 869 - - 3,071 % of net sales 75.5 28.6 30.7 Operating expenses -360 -1,034 -29 - -2,774 Other income and expenses -3 -14 -4 - -2 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -206 -179 -33 - 295 % of net sales -99.0 -5.9 2.9 ---------- ---------- ---------- ------------ ---------- THIRD QUARTER 2010, REPORTED, EUR million (unaudited) Smart Mobile Devices & Devices & Devices 7- Phones 7- Services other Services 7- 9/2010 9/2010 7-9/2010 9/2010 ------------ ------------ -------------- -------------- Net sales 3,612 3,364 197 7,173 Cost of sales -2,522 -2,506 -68 -5,096 ------------ ------------ -------------- -------------- Gross profit 1,090 858 129 2,077 % of net sales 30.2 25.5 65.5 29.0 Operating expenses -785 -383 -105 -1,273 Other income and expenses 5 3 57 65 ------------ ------------ -------------- -------------- Contribution 310 478 81 % of net sales 8.6 14.2 41.1 ------------ ------------ -------------- -------------- Operating profit 869 % of net sales 12.1 ------------ ------------ -------------- -------------- THIRD QUARTER 2010, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 7- Eliminations Group 7- 7-9/2010 7-9/2010 9/2010 7-9/2010 9/2010 ---------- ---------- ---------- ------------ ---------- Net sales 203 2,943 - -49 10,270 Cost of sales -42 -2,241 1 49 -7,329 ---------- ---------- ---------- ------------ ---------- Gross profit 161 702 1 - 2,941 % of net sales 79.3 23.9 28.6 Operating expenses -329 -966 -19 - -2,587 Other income and expenses 1 -18 1 - 49 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -167 -282 -17 - 403 % of net sales -82.3 -9.6 3.9 ---------- ---------- ---------- ------------ ---------- FOURTH QUARTER 2010, REPORTED, EUR million (unaudited) Mobile Devices & Devices & Smart Devices Phones 10- Services other Services 10- 10-12/2010 12/2010 10-12/2010 12/2010 -------------- ------------ -------------- ------------ Net sales 4,396 3,948 155 8,499 Cost of sales -3,133 -2,823 -76 -6,032 -------------- ------------ -------------- ------------ Gross profit 1,263 1,125 79 2,467 % of net sales 28.7 28.5 51.0 29.0 Operating expenses -899 -410 -125 -1,434 Other income and expenses 146 1 -98 49 -------------- ------------ -------------- ------------ Contribution 510 716 -144 % of net sales 11.6 18.1 -92.9 -------------- ------------ -------------- ------------ Operating profit 1,082 % of net sales 12.7 -------------- ------------ -------------- ------------ FOURTH QUARTER 2010, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 10- Eliminations Group 10- 10-12/2010 10-12/2010 12/2010 10-12/2010 12/2010 ---------- ---------- ---------- ------------ ---------- Net sales 265 3,961 - -74 12,651 Cost of sales -46 -2,919 -1 74 -8,924 ---------- ---------- ---------- ------------ ---------- Gross profit 219 1,042 -1 - 3,727 % of net sales 82.6 26.3 29.5 Operating expenses -365 -1,022 -46 - -2,867 Other income and expenses -2 -19 4 -8 24 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -148 1 -43 -8 884 % of net sales -55.8 0.0 7.0 ---------- ---------- ---------- ------------ ---------- FULL YEAR 2010, REPORTED, EUR million (unaudited) Smart Devices & Devices & Devices 1- Mobile Phones Services other Services 1- 12/2010 1-12/2010 1-12/2010 12/2010 ------------ -------------- -------------- ------------ Net sales 14,874 13,696 564 29,134 Cost of sales -10,287 -9,866 -259 -20,412 ------------ -------------- -------------- ------------ Gross profit 4,587 3,830 305 8,722 % of net sales 30.8 28.0 54.1 29.9 Operating expenses -3,392 -1,508 -452 -5,352 Other income and expenses 181 5 -16 170 ------------ -------------- -------------- ------------ Contribution 1,376 2,327 -163 % of net sales 9.3 17.0 -28.9 ------------ -------------- -------------- ------------ Operating profit 3,540 % of net sales 12.2 ------------ -------------- -------------- ------------ FULL YEAR 2010, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 1- Eliminations Group 1- 1-12/2010 1-12/2010 12/2010 1-12/2010 12/2010 ---------- ---------- ---------- ------------ ---------- Net sales 869 12,661 - -218 42,446 Cost of sales -169 -9,266 - 218 -29,629 ---------- ---------- ---------- ------------ ---------- Gross profit 700 3,395 - - 12,817 % of net sales 80.6 26.8 30.2 Operating expenses -1,360 -4,037 -106 - -10,855 Other income and expenses -3 -44 -7 -8 108 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -663 -686 -113 -8 2,070 % of net sales -76.3 -5.4 4.9 ---------- ---------- ---------- ------------ ---------- FIRST QUARTER 2011, REPORTED, EUR million (unaudited) Smart Mobile Devices & Devices & Devices 1- Phones 1- Services other Services 1- 3/2011 3/2011 1-3/2011 3/2011 ------------ ------------ -------------- -------------- Net sales 3,528 3,407 152 7,087 Cost of sales -2,508 -2,456 -84 -5,048 ------------ ------------ -------------- -------------- Gross profit 1,020 951 68 2,039 % of net sales 28.9 27.9 44.7 28.8 Operating expenses -834 -387 -104 -1,325 Other income and expenses - -2 17 15 ------------ ------------ -------------- -------------- Contribution 186 562 -19 % of net sales 5.3 16.5 -12.5 ------------ ------------ -------------- -------------- Operating profit 729 % of net sales 10.3 ------------ ------------ -------------- -------------- FIRST QUARTER 2011, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 1- Eliminations Group 1- 1-3/2011 1-3/2011 3/2011 1-3/2011 3/2011 ---------- ---------- ---------- ------------ ---------- Net sales 232 3,171 - -91 10,399 Cost of sales -44 -2,324 - 91 -7,325 ---------- ---------- ---------- ------------ ---------- Gross profit 188 847 - - 3,074 % of net sales 81.0 26.7 29.6 Operating expenses -321 -990 -22 - -2,658 Other income and expenses 1 1 6 - 23 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -132 -142 -16 - 439 % of net sales -56.9 -4.5 4.2 ---------- ---------- ---------- ------------ ---------- SECOND QUARTER 2011, REPORTED, EUR million (unaudited) Smart Mobile Devices & Devices & Devices 4- Phones 4- Services other Services 4- 6/2011 6/2011 4-6/2011 6/2011 ------------ ------------ -------------- -------------- Net sales 2,351 2,568 548 5,467 Cost of sales -1,811 -1,933 -56 -3,800 ------------ ------------ -------------- -------------- Gross profit 540 635 492 1,667 % of net sales 23.0 24.7 89.8 30.5 Operating expenses -752 -420 -95 -1,267 Other income and expenses -4 -1 -611 -616 ------------ ------------ -------------- -------------- Contribution -216 214 -214 % of net sales -9.2 8.3 -39.1 ------------ ------------ -------------- -------------- Operating profit -216 % of net sales -4.0 ------------ ------------ -------------- -------------- SECOND QUARTER 2011, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 4- Eliminations Group 4- 4-6/2011 4-6/2011 6/2011 4-6/2011 6/2011 ---------- ---------- ---------- ------------ ---------- Net sales 271 3,642 - -105 9,275 Cost of sales -50 -2,698 - 105 -6,443 ---------- ---------- ---------- ------------ ---------- Gross profit 221 944 - - 2,832 % of net sales 81.5 25.9 30.5 Operating expenses -325 -1,056 -51 - -2,699 Other income and expenses - 1 -5 - -620 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -104 -111 -56 - -487 % of net sales -38.4 -3.0 -5.3 ---------- ---------- ---------- ------------ ---------- THIRD QUARTER 2011, REPORTED, EUR million (unaudited) Smart Mobile Devices & Devices & Devices 7- Phones 7- Services other Services 7- 9/2011 9/2011 7-9/2011 9/2011 ------------ ------------ -------------- -------------- Net sales 2,194 2,915 283 5,392 Cost of sales -1,739 -2,226 -43 -4,008 ------------ ------------ -------------- -------------- Gross profit 455 689 240 1,384 % of net sales 20.7 23.6 84.8 25.7 Operating expenses -656 -404 -67 -1,127 Other income and expenses 11 10 -110 -89 ------------ ------------ -------------- -------------- Contribution -190 295 63 % of net sales -8.7 10.1 22.3 ------------ ------------ -------------- -------------- Operating profit 168 % of net sales 3.1 ------------ ------------ -------------- -------------- THIRD QUARTER 2011, REPORTED, EUR million (unaudited) Nokia Location & Siemens Corporate Nokia Commerce Networks Common 7- Eliminations Group 7- 7-9/2011 7-9/2011 9/2011 7-9/2011 9/2011 ---------- ---------- ---------- ------------ ---------- Net sales 282 3,413 - -107 8,980 Cost of sales -52 -2,518 - 107 -6,471 ---------- ---------- ---------- ------------ ---------- Gross profit 230 895 - - 2,509 % of net sales 81.6 26.2 27.9 Operating expenses -314 -1,035 -37 -2,513 Other income and expenses -1 26 -3 -67 ---------- ---------- ---------- ------------ ---------- Contribution % of net sales ---------- ---------- ---------- ------------ ---------- Operating profit -85 -114 -40 - -71 % of net sales -30.1 -3.3 -0.8 ---------- ---------- ---------- ------------ ----------

About Nokia

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



This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants 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#1580044]

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