NOKIA
helsinki : NOK1V

January 25, 2012 09:38 ET

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

ESPOO, FINLAND--(Marketwire - Jan 25, 2012) -


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



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Source: NOKIA via Thomson Reuters ONE

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