6-K 1 a11-4727_16k.htm 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a -16 or 15d -16 of

the Securities Exchange Act of 1934

 

Report on Form 6-K dated January 27, 2011

 

Nokia Corporation

Nokia House

Keilalahdentie 4

02150 Espoo

Finland

(Name and address of registrant’s principal executive office)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

Form 20-F  x       Form 40-F  o

 

Enclosures:

 

Nokia stock exchange release dated January 27, 2011:

Nokia Q4 2010 net sales EUR 12.7 billion, non-IFRS EPS EUR 0.22 (reported EPS EUR 0.20)

Nokia 2010 net sales EUR 42.4 billion, non-IFRS EPS EUR 0.61 (reported EPS EUR 0.50)

 

 

 



 

 

INTERIM REPORT

 

 

 

Nokia Corporation

 

January 27, 2011 at 13:00 (CET +1)

 

Nokia Q4 2010 net sales EUR 12.7 billion, non-IFRS EPS EUR 0.22 (reported EPS EUR 0.20)

Nokia 2010 net sales EUR 42.4 billion, non-IFRS EPS EUR 0.61 (reported EPS EUR 0.50)

 

Nokia Corporation

Interim report

January 27, 2010 at 13.00 (CET+1)

 

Nokia Board of Directors will propose a dividend of EUR 0.40 per share for 2010 (EUR 0.40 per share for 2009).

 

 

 

Non-IFRS fourth quarter 2010 results(1)

 

Non-IFRS full year 2010 results(1)

 

EUR million

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

2010

 

2009

 

YoY
Change

 

Net sales

 

12 653

 

11 988

 

6

%

10 271

 

23

%

42 451

 

40 987

 

4

%

Devices & Services

 

8 501

 

8 179

 

4

%

7 174

 

18

%

29 138

 

27 853

 

5

%

NAVTEQ

 

309

 

225

 

37

%

252

 

23

%

1 003

 

673

 

49

%

Nokia Siemens Networks

 

3 961

 

3 625

 

9

%

2 943

 

35

%

12 661

 

12 574

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1 090

 

1 473

 

-26

%

634

 

72

%

3 204

 

3 503

 

-9

%

Devices & Services

 

961

 

1 257

 

-24

%

750

 

28

%

3 162

 

3 488

 

-9

%

NAVTEQ

 

100

 

54

 

85

%

74

 

35

%

265

 

121

 

119

%

Nokia Siemens Networks

 

145

 

201

 

-28

%

-116

 

 

 

95

 

28

 

239

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

8.6

%

12.3

%

 

 

6.2

%

 

 

7.5

%

8.5

%

 

 

Devices & Services

 

11.3

%

15.4

%

 

 

10.5

%

 

 

10.9

%

12.5

%

 

 

NAVTEQ

 

32.4

%

24.0

%

 

 

29.4

%

 

 

26.4

%

18.0

%

 

 

Nokia Siemens Networks

 

3.7

%

5.5

%

 

 

-3.9

%

 

 

0.8

%

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS, EUR Diluted

 

0.22

 

0.25

 

-12

%

0.14

 

57

%

0.61

 

0.66

 

-8

%

 

 

 

Reported fourth quarter 2010 results

 

Reported full year 2010 results

 

EUR million

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

2010

 

2009

 

YoY
Change

 

Net sales

 

12 651

 

11 988

 

6

%

10 270

 

23

%

42 446

 

40 984

 

4

%

Devices & Services

 

8 499

 

8 179

 

4

%

7 173

 

18

%

29 134

 

27 853

 

5

%

NAVTEQ

 

309

 

225

 

37

%

252

 

23

%

1 002

 

670

 

50

%

Nokia Siemens Networks

 

3 961

 

3 625

 

9

%

2 943

 

35

%

12 661

 

12 574

 

1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

884

 

1 141

 

-23

%

403

 

119

%

2 070

 

1 197

 

73

%

Devices & Services

 

1 018

 

1 219

 

-16

%

807

 

26

%

3 299

 

3 314

 

-0.5

%

NAVTEQ

 

-19

 

-56

 

 

 

-48

 

 

 

-225

 

-344

 

 

 

Nokia Siemens Networks

 

1

 

17

 

-94

%

-282

 

 

 

-686

 

-1 639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

7.0

%

9.5

%

 

 

3.9

%

 

 

4.9

%

2.9

%

 

 

Devices & Services

 

12.0

%

14.9

%

 

 

11.3

%

 

 

11.3

%

11.9

%

 

 

NAVTEQ

 

-6.1

%

-24.9

%

 

 

-19.0

%

 

 

-22.5

%

-51.3

%

 

 

Nokia Siemens Networks

 

0.0

%

0.5

%

 

 

-9.6

%

 

 

-5.4

%

-13.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS, EUR Diluted

 

0.20

 

0.26

 

-23

%

0.14

 

43

%

0.50

 

0.24

 

108

%

 


Note 1 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. More specific information about the exclusions from the non-IFRS results may be found in our complete interim report with tables on pages 3-4, 13-15 and 18 for the quarterly periods and pages 28-30 and 32 for the full year 2010 and 2009.

 

Nokia believes that these non-IFRS financial measures provide meaningful supplemental information to both management and investors regarding Nokia’s performance by excluding the above-described items that may not be 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. A reconciliation of the non-IFRS results to our reported results for Q4 2010 and Q4 2009 as well as for full year 2010 and 2009 can be found in the tables on pages 11, 13-16 and 27-32 of our complete interim report with tables. A reconciliation of our Q3 2010 non-IFRS results can be found on pages 12-13 and 15-19 of our Q3 2010 complete interim report with tables that was published on October 21, 2010.

 

1



 

FOURTH QUARTER 2010 HIGHLIGHTS

·                  Nokia net sales of EUR 12.7 billion in Q4 2010, up 6% year-on-year and 23% sequentially (flat and up 24% at constant currency).

·                  Devices & Services net sales of EUR 8.5 billion in Q4 2010, up 4% year-on-year and 18% sequentially (down 3% and up 19% at constant currency).

·                  Services net sales of EUR 201 million in Q4 2010, up 21% year-on-year and 26% sequentially; billings of EUR 352 million, up 57% year-on-year and 8% sequentially.

·                  Nokia total mobile device volumes of 123.7 million units in Q4 2010, down 3% year-on-year and up 12% sequentially.

·                  Nokia converged mobile device (smartphone and mobile computer) volumes of 28.3 million units in Q4 2010, up 36% year-on-year and 7% sequentially.

·                  Nokia mobile device ASP (including services revenue) of EUR 69 in Q4 2010, up from EUR 64 in Q4 2009 and EUR 65 in Q3 2010.

·                  Devices & Services gross margin of 29.2% in Q4 2010, down from 34.3% in Q4 2009 and up from 29.0% in Q3 2010.

·                  Devices & Services non-IFRS operating margin of 11.3% in Q4 2010, down from 15.4% in Q4 2009 and up from 10.5% in Q3 2010.

·                  NAVTEQ net sales of EUR 309 million in Q4 2010, up 37% year-on-year and 23% sequentially (up 33% and 27% at constant currency).

·                  Nokia Siemens Networks net sales of EUR 4.0 billion in Q4 2010, up 9% year-on-year and 35% sequentially (up 7% and 37% at constant currency).

·                  Nokia Siemens Networks non-IFRS operating margin of 3.7% in Q4 2010, down from 5.5% in Q4 2009 and up from -3.9% in Q3 2010.

·                  Nokia operating cash flow of EUR 2.4 billion and cash generated from operations of EUR 2.5 billion in Q4 2010.

·                  Total cash and other liquid assets of EUR 12.3 billion and net cash and other liquid assets of EUR 7.0 billion at the end of Q4 2010.

·                  Nokia taxes continued to be unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. In Q4 2010, this was more than offset by a favorable profit mix and certain current quarter benefits both in Devices & Services and in Nokia Siemens Networks taxes. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately 2.5 Euro cents lower in Q4 2010.

 

FULL YEAR 2010 HIGHLIGHTS

·                  Based on Nokia’s preliminary estimate, industry mobile device volumes increased 13% in 2010, compared to 2009 (based on Nokia’s revised definition of the industry mobile device market applicable beginning in 2010).

·                  Based on Nokia’s preliminary market estimate, Nokia’s mobile device volume market share decreased to 32% in 2010, compared to 34% in 2009 (based on Nokia’s revised definition of the industry mobile device market share applicable beginning in 2010).

·                  Nokia’s estimated mobile device value market share was down slightly in 2010, compared to 2009.

·                  Nokia’s non-IFRS operating expenses in Devices & Services were approximately EUR 5.6 billion in 2010, compared to EUR 5.8 billion in 2009.

·                  Devices & Services non-IFRS operating margin was 10.9% in 2010, compared to 12.5% in 2009.

·                  Based on preliminary estimates, Nokia and Nokia Siemens Networks believe the market for mobile and fixed infrastructure and related services was approximately flat in Euro terms in 2010, compared to 2009.

·                  Based on preliminary estimates, Nokia and Nokia Siemens Networks believe Nokia Siemens Networks grew slightly faster than the market in Euro terms in 2010, compared to 2009.

·                  Nokia Siemens Networks non-IFRS operating margin of 0.8% in 2010, compared to 0.2% in 2009.

 

STEPHEN ELOP, NOKIA CEO:

“In Q4 we delivered solid performance across all three of our businesses, and generated outstanding cash flow. Additionally, growth trends in the mobile devices market continue to be encouraging. Yet, Nokia faces some significant challenges in our competitiveness and our execution. In short, the industry changed, and now it’s time for Nokia to change faster.”

 

NOKIA OUTLOOK

·                  Nokia expects Devices & Services net sales to be between EUR 6.8 billion and EUR 7.3 billion in the first quarter 2011.

·                  Nokia expects its non-IFRS operating margin in Devices & Services to be between 7% and 10% in the first quarter 2011.

 

2



 

·                  Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 2.8 billion and EUR 3.1 billion in the first quarter 2011.

·                  Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks to be between -3% and breakeven in the first quarter 2011.

 

Nokia will hold a Strategy and Financial Briefing in London on February 11, 2011. In connection with that event, Nokia plans to discuss its strategy and objectives going forward.

 

FOURTH QUARTER 2010 FINANCIAL HIGHLIGHTS

 

The non-IFRS results exclusions

Q4 2010 EUR 206 million (net) consisting of:

·                  EUR 28 million restructuring charge and other associated items in Nokia Siemens Networks

·                  EUR 85 million restructuring charges in Devices & Services

·                  EUR 147 million gain on sale of wireless modem business in Devices & Services

·                  EUR 116 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks

·                  EUR 119 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ

·                  EUR 5 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications, Novarra and Motally in Devices & Services

 

Q4 2010 taxes — EUR 52 million non-cash tax benefit from reassessment of recoverability deferred tax assets in Nokia Siemens Networks

 

Q3 2010 EUR 231 million (net) consisting of:

·                  EUR 61 million prior years-related refund of customs duties

·                  EUR 49 million restructuring charge and other associated items in Nokia Siemens Networks

·                  EUR 117 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks

·                  EUR 122 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ

·                  EUR 4 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications, Novarra, MetaCarta and Motally in Devices & Services

 

Q3 2010 taxes — EUR 127 million prior years-related non-cash benefit from Q3 2010 changes in dividend withholding tax legislation in certain jurisdictions with retroactive effects

 

Q4 2009 — EUR 332 million (net) consisting of:

·                  EUR 89 million restructuring charge and other one-time items in Nokia Siemens Networks

·                  EUR 22 million gain on sale of real estate in Nokia Siemens Networks

·                  EUR 36 million restructuring charge in Devices & Services

·                  EUR 117 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks

·                  EUR 110 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ

·                  EUR 2 million of intangible assets amortization and other purchase price related items arising from the acquisition of OZ Communications in Devices & Services

 

Q4 2009 taxes — EUR 213 million non-cash positive effect from development and outcome of various prior year items impacting Nokia taxes

 

Non-IFRS results exclude special items for all periods. In addition, non-IFRS results exclude intangible asset amortization, other purchase price accounting related items and inventory value adjustments arising from i) the formation of Nokia Siemens Networks and ii) all business acquisitions completed after June 30, 2008.

 

Nokia Group

Nokia’s fourth quarter 2010 net sales increased 6% to EUR 12.7 billion, compared with EUR 12.0 billion in the fourth quarter 2009, and increased 23% compared with EUR 10.3 billion in the third quarter 2010. At constant currency, group net sales would have been flat year-on-year and increased 24% sequentially.

 

3



 

The following chart sets out the year-on-year and sequential growth rates in our net sales on a reported basis and at constant currency for the periods indicated.

 

FOURTH QUARTER 2010 NET SALES, REPORTED & CONSTANT CURRENCY(1)

 

 

 

YoY
Change

 

QoQ
Change

 

Group net sales — reported

 

6

%

23

%

Group net sales - constant currency(1)

 

0

%

24

%

 

 

 

 

 

 

Devices & Services net sales — reported

 

4

%

18

%

Devices & Services net sales - constant currency(1)

 

-3

%

19

%

 

 

 

 

 

 

NAVTEQ net sales — reported

 

37

%

23

%

NAVTEQ net sales - constant currency(1)

 

33

%

27

%

 

 

 

 

 

 

Nokia Siemens Networks net sales — reported

 

9

%

35

%

Nokia Siemens Networks net sales - constant currency(1)

 

7

%

37

%

 


Note 1: Change in net sales at constant currency excludes the impact of changes in exchange rates in comparison to the Euro, our reporting currency.

 

Nokia’s fourth quarter 2010 reported operating profit was EUR 884 million, compared with an operating profit of EUR 1 141 million in the fourth quarter 2009 and an operating profit of EUR 403 million in the third quarter 2010. Nokia’s fourth quarter 2010 reported operating margin was 7.0%, compared with 9.5% in the fourth quarter 2009 and 3.9% in the third quarter 2010. Nokia’s fourth quarter 2010 non-IFRS operating profit was EUR 1 090 million, compared with EUR 1 473 million in the fourth quarter 2009 and EUR 634 million in the third quarter 2010. Nokia’s fourth quarter 2010 non-IFRS operating margin was 8.6%, compared with 12.3% in the fourth quarter 2009 and 6.2% in the third quarter 2010. The year-on-year decrease in Nokia’s non-IFRS operating margin resulted from a decline in Devices & Services and Nokia Siemens Networks’ non-IFRS operating margins that were only partially offset by an increase in NAVTEQ’s non-IFRS operating margin. The sequential increase in Nokia’s non-IFRS operating margin reflected improved non-IFRS operating margin in all three reportable segments.

 

The following chart sets out Nokia Group’s 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

 

EUR million

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

Cash generated from operations

 

2 492

 

1 288

 

93

%

1 206

 

107

%

Operating cash flow(1)

 

2 436

 

1 535

 

59

%

439

 

455

%

Total cash and other liquid assets

 

12 275

 

8 873

 

38

%

10 235

 

20

%

Net cash and other liquid assets(2)

 

6 996

 

3 670

 

91

%

4 375

 

60

%

Net debt-equity ratio (gearing)

 

-43

%

-25

%

 

 

-29

%

 

 

 


Note 1: Net cash from operating activities.

Note 2: Total cash and other liquid assets minus interest-bearing liabilities.

 

Year-on-year and sequentially, the increase in operating cash flow was primarily driven by net working capital improvements in both Devices & Services and Nokia Siemens Networks. Approximately EUR 600 million of these net working capital improvements were driven by the timing of customer payments and value-added tax refunds, which were received in Q4 2010 instead of subsequent periods. In addition, on a sequential basis, we did not experience the cash outflows related to foreign exchange hedging activities that we had in the third quarter 2010, and our operating cash flow also benefited from improved net profit.

 

Both total as well as net cash and other liquid assets increased in the fourth quarter 2010 as a result of positive overall cash generation.

 

Devices & Services

Net Sales. The following chart sets out our Devices & Services net sales for the periods indicated, as well as the year-on-year and sequential growth rates, by category.

 

4



 

DEVICES & SERVICES NET SALES BY CATEGORY

 

EUR million

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

Mobile phones(1)

 

4 092

 

4 294

 

-5

%

3 560

 

15

%

Converged mobile devices(2)

 

4 407

 

3 885

 

13

%

3 613

 

22

%

Total

 

8 499

 

8 179

 

4

%

7 173

 

18

%

 


Note 1: Series 30 and Series 40-based devices ranging from basic mobile phones focused on voice capability to devices with a number of additional functionalities, such as Internet connectivity, including the services and accessories sold with them.

Note 2: Smartphones and mobile computers, including the services and accessories sold with them.

 

The following chart sets out Devices & Services net sales for the periods indicated, as well as the year-on-year and sequential growth rates, by geographic area.

 

DEVICES & SERVICES NET SALES BY GEOGRAPHIC AREA

 

EUR million

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

Europe

 

3 088

 

3 153

 

-2

%

2 289

 

35

%

Middle East & Africa

 

1 177

 

1 148

 

3

%

930

 

27

%

Greater China

 

1 682

 

1 243

 

35

%

1 654

 

2

%

Asia-Pacific

 

1 603

 

1 783

 

-10

%

1 504

 

7

%

North America

 

233

 

257

 

-9

%

226

 

3

%

Latin America

 

715

 

595

 

20

%

570

 

25

%

Total

 

8 499

 

8 179

 

4

%

7 173

 

18

%

 

Year-on-year, the 4% net sales increase resulted from higher ASPs partially offset by lower device volumes in most regions.  Our device volumes in the fourth quarter 2010 were adversely affected by shortages of certain components, which we expect to continue to impact our business at least through the end of the first quarter 2011, as well as by a number of supply and logistics challenges driven by the tight component availability during the quarter. Sequentially, the 18% net sales increase reflected higher ASPs, as well as higher device volumes in most regions, partially offset by a number of supply and logistics challenges driven by the tight component availability during the fourth quarter 2010. At constant currency, Devices & Services net sales would have decreased 3% year-on-year and increased 19% sequentially.

 

Of our total Devices & Services net sales, services contributed EUR 201 million in the fourth quarter 2010, compared with EUR 166 million in the fourth quarter 2009 and EUR 159 million in the third quarter 2010. Services billings in the fourth quarter 2010 were EUR 352 million, compared with EUR 224 million in the fourth quarter 2009 and EUR 325 million in the third quarter 2010.

 

Volume and Market Share. The following chart sets out our Devices & Services volumes for the periods indicated, as well as the year-on-year and sequential growth rates, by category.

 

DEVICES & SERVICES MOBILE DEVICE VOLUMES BY CATEGORY

 

million units

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

Mobile phones(1)

 

95.4

 

106.1

 

-10

%

83.9

 

14

%

Converged mobile devices(2)

 

28.3

 

20.8

 

36

%

26.5

 

7

%

Total

 

123.7

 

126.9

 

-3

%

110.4

 

12

%

 


Note 1: Series 30 and Series 40-based devices ranging from basic mobile phones focused on voice capability to devices with a number of additional functionalities, such as Internet connectivity, including the services and accessories sold with them.

Note 2: Smartphones and mobile computers, including the services and accessories sold with them.

 

In the fourth quarter 2010, the overall industry mobile device volumes were 402 million units, based on Nokia’s preliminary estimate, representing an increase of 12% year-on-year and 11% sequentially. Nokia’s preliminary estimated mobile device market share was 31% in the fourth quarter 2010, down from an estimated 35% in the fourth quarter 2009 and up from an estimated 30% in the third quarter 2010 (based on Nokia’s revised definition of the industry mobile device market share applicable beginning in 2010 and applied retrospectively to 2009 for comparative purposes only).

 

Of the total industry mobile device volumes, converged mobile device industry volumes in the fourth quarter 2010 increased to 90.5 million units, based on Nokia’s preliminary estimate, representing an increase of 73% year-on-year and 29% sequentially. Nokia’s preliminary estimated share of the converged mobile device market was 31% in the

 

5



 

fourth quarter 2010, compared with an estimated 40% in the fourth quarter 2009 and an estimated 38% in the third quarter 2010.

 

The following chart sets out our mobile device volumes for the periods indicated, as well as the year—on-year and sequential growth rates, by geographic area.

 

DEVICES & SERVICES MOBILE DEVICE VOLUMES BY GEOGRAPHIC AREA

 

million units

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

Europe

 

33.5

 

34.3

 

-2

%

29.2

 

15

%

Middle East & Africa

 

22.2

 

24.3

 

-9

%

18.4

 

21

%

Greater China

 

21.9

 

17.6

 

24

%

20.2

 

8

%

Asia-Pacific

 

31.3

 

34.5

 

-9

%

27.8

 

13

%

North America

 

2.6

 

3.8

 

-32

%

3.2

 

-19

%

Latin America

 

12.2

 

12.4

 

-2

%

11.6

 

5

%

Total

 

123.7

 

126.9

 

-3

%

110.4

 

12

%

 

Nokia’s 3% year-on-year decrease in global mobile device volumes during the fourth quarter 2010 was driven primarily by the intense competitive environment, as well as certain component shortages and a number of supply and logistics challenges resulting from the tight component availability during the quarter. This volume decline was somewhat offset by a year-on-year improvement in the overall market environment. On a sequential basis, Nokia’s 12% increase in global mobile device volumes was primarily due to increased seasonal demand for our devices offset to some extent by a number of supply and logistics challenges driven by the tight component availability during the fourth quarter 2010.

 

Average Selling Price. The following chart sets out our Devices & Services ASP for the periods indicated, as well as the year-on-year and sequential growth rates, by category.

 

DEVICES & SERVICES AVERAGE SELLING PRICE BY CATEGORY

 

EUR

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

Mobile phones(1)

 

43

 

40

 

6

%

42

 

1

%

Converged mobile devices(2)

 

156

 

186

 

-17

%

136

 

14

%

Total

 

69

 

64

 

7

%

65

 

6

%

 


Note 1: Series 30 and Series 40-based devices ranging from basic mobile phones focused on voice capability to devices with a number of additional functionalities, such as Internet connectivity, including the services and accessories sold with them.

Note 2: Smartphones and mobile computers, including the services and accessories sold with them.

 

The year-on-year 7% increase in our ASP was primarily due to converged mobile devices representing a greater proportion of our overall mobile device sales and the appreciation of certain currencies against the Euro, offset to some extent by general price erosion and a higher proportion of lower-priced converged mobile device sales. On a sequential basis, the 6% increase in our ASP was primarily driven by an increased proportion of sales of higher priced converged mobile devices and foreign exchange hedging, offset to some extent by the depreciation of certain currencies against the Euro. The 17% year-on-year decline in our converged mobile devices ASPs was mainly driven by general price erosion and an increase in the proportion of lower-priced converged mobile devices sales. The 14% sequential increase in our converged mobile devices ASPs was mainly driven by an increased proportion of sales of higher prices converged mobile devices during the fourth quarter 2010.

 

Profitability. Devices & Services gross profit (reported and non-IFRS) decreased 12% to EUR 2.5 billion, compared with EUR 2.8 billion in the fourth quarter 2009, and increased 19% compared to EUR 2.1 billion in the third quarter 2010. The gross margin (reported and non-IFRS) was 29.2% in the fourth quarter 2010, compared with 34.3% in the fourth quarter 2009 and 29.0% in the third quarter 2010. The year-on-year gross margin decline was primarily due to material cost erosion being less — driven by both shortages of certain components and the appreciation of certain currencies against the Euro — than general product price erosion, as well as a negative impact from foreign exchange hedging. The impact of these factors was offset to some extent by converged mobile devices representing a greater proportion of our overall mobile device volumes. Sequentially, the gross margin increase was primarily due to an increased proportion of sales of higher priced mobile devices and the depreciation of certain currencies against the Euro, offset to a large extent by a negative one-quarter impact from foreign exchange hedging as well as lower royalty income in the fourth quarter 2010. Nokia sees shortages of certain components impacting our business at least through the end of first quarter 2011.

 

6



 

Devices & Services reported operating profit decreased 16% to EUR 1 018 million, compared with EUR 1 219 million in the fourth quarter 2009, and increased 26% compared with EUR 807 million in the third quarter 2010. The reported operating margin was 12.0% in the fourth quarter 2010, compared with 14.9% in the fourth quarter 2009 and 11.3% in the third quarter 2010. Devices & Services non-IFRS operating profit decreased 24% to EUR 961 million compared with EUR 1 257 million in the fourth quarter 2009, and increased 28% compared with EUR 750 million in the third quarter 2010. The non-IFRS operating margin was 11.3% in the fourth quarter 2010, compared with 15.4% in the fourth quarter 2009 and 10.5% in the third quarter 2010. The year-on-year decrease in non-IFRS operating profit was driven primarily by the lower gross margin. Sequentially, the increase in non-IFRS operating profit was primarily due to higher net sales, offset to some extent by higher operating expenses.

 

NAVTEQ

Net Sales. Fourth quarter 2010 NAVTEQ reported net sales increased 37% year-on-year to EUR 309 million, compared with EUR 225 million in the fourth quarter 2009, and increased 23% compared to EUR 252 million in the third quarter 2010. The year-on-year and sequential increase in reported net sales was primarily driven by improved sales of map licenses to mobile device customers as well as higher navigation uptake rates in the automotive industry. Sequentially, net sales also benefited from a stronger market for personal navigation devices (PNDs). At constant currency, NAVTEQ net sales would have increased 33% year-on-year and 27% sequentially.

 

Profitability. In the fourth quarter 2010, NAVTEQ’s gross profit (reported and non-IFRS) increased 37% to EUR 271 million, compared with EUR 195 million in the fourth quarter 2009, and increased 27% compared with EUR 213 million in the third quarter 2010. NAVTEQ’s gross margin (reported and non-IFRS) increased to 87.7%, compared to a reported gross margin of 86.7% and a non-IFRS gross margin of 87.1% in the fourth quarter 2009, and 84.5% (reported and non-IFRS) in the third quarter 2010.

 

In the fourth quarter 2010, NAVTEQ’s reported operating loss decreased to EUR 19 million, compared with a EUR 56 million loss in the fourth quarter 2009 and a EUR 48 million loss in the third quarter 2010. The reported operating margin was -6.1% in the fourth quarter 2010, compared with -24.9% in the fourth quarter 2009 and -19.0% in the third quarter 2010. NAVTEQ’s non-IFRS operating profit was EUR 100 million, compared with EUR 54 million in the fourth quarter 2009 and EUR 74 million in the third quarter 2010.  The non-IFRS operating margin was 32.4% in the fourth quarter 2010, compared with 24.0% in the fourth quarter 2009 and 29.4% in the third quarter 2010. The year-on-year and sequential increase in NAVTEQ’s non-IFRS operating margin was primarily due to higher net sales, offset to some extent by higher operating expenses.

 

Nokia Siemens Networks

Net Sales. The following chart sets out Nokia Siemens Networks net sales for the periods indicated, as well as the year-on-year and sequential growth rates, by geographic area.

 

NOKIA SIEMENS NETWORKS NET SALES BY GEOGRAPHIC AREA

 

EUR million

 

Q4/2010

 

Q4/2009

 

YoY
Change

 

Q3/2010

 

QoQ
Change

 

Europe

 

1 357

 

1 327

 

2

%

1 070

 

27

%

Middle East & Africa

 

423

 

371

 

14

%

331

 

28

%

Greater China

 

508

 

425

 

20

%

311

 

63

%

Asia-Pacific

 

978

 

818

 

20

%

711

 

38

%

North America

 

226

 

244

 

-7

%

175

 

29

%

Latin America

 

469

 

440

 

7

%

345

 

36

%

Total

 

3 961

 

3 625

 

9

%

2 943

 

35

%

 

The year-on-year 9% increase in net sales was primarily driven by growth in both the product and services businesses in most regions. The sequential 35% increase in net sales was primarily driven by a seasonally stronger infrastructure market in the fourth quarter 2010. Net sales in the fourth quarter 2010 also benefited from an improvement in overall component availability. Of total Nokia Siemens Networks net sales, services contributed EUR 1.8 billion in the fourth quarter 2010, compared to EUR 1.7 billion in the fourth quarter 2009 and EUR 1.4 billion in the third quarter 2010. At constant currency, Nokia Siemens Networks net sales would have increased 7% year-on-year and 37% sequentially.

 

Profitability. Nokia Siemens Networks reported gross profit decreased 3% to EUR 1 042 million compared with EUR 1 071 million in the fourth quarter 2009, and increased 48% compared with EUR 702 million in the third quarter 2010.  The reported gross margin was 26.3% in the fourth quarter 2010, compared with 29.5% in the fourth quarter 2009 and 23.9% in the third quarter 2010. Nokia Siemens Networks non-IFRS gross profit in the fourth quarter 2010 decreased 6% to EUR 1 045 million compared with EUR 1 108 million in the fourth quarter 2009, and increased 42% compared

 

7



 

with EUR 733 million in the third quarter 2010. The non-IFRS gross margin was 26.4% in the fourth quarter 2010, compared with 30.6% in the fourth quarter 2009 and 24.9% in the third quarter 2010.  The lower year-on-year non-IFRS gross margin in the fourth quarter 2010 was primarily due to general price pressure on certain products, a higher proportion of lower margin products in the business mix and to some extent project execution related challenges in the Middle East and Africa. The higher sequential non-IFRS gross margin in the fourth quarter 2010 was primarily due to a more favourable business mix, strong seasonal net sales and the absence of certain items that had a negative impact on the gross margin in the third quarter 2010.

 

Nokia Siemens Networks fourth quarter 2010 reported operating profit was EUR 1 million, compared with a reported operating profit of EUR 17 million in the fourth quarter 2009 and a reported operating loss of EUR 282 million in the third quarter 2010. The reported operating margin was 0.0% in the fourth quarter 2010, compared with 0.5% in the fourth quarter 2009 and -9.6% in the third quarter 2010. Nokia Siemens Networks non-IFRS operating profit was EUR 145 million in the fourth quarter 2010, compared with a non-IFRS operating profit of EUR 201 million in the fourth quarter 2009 and a non-IFRS operating loss of EUR 116 million in the third quarter 2010.  The non-IFRS operating margin was 3.7% in the fourth quarter 2010, compared with 5.5% in the fourth quarter 2009 and -3.9% in the third quarter 2010. The year-on-year decline in Nokia Siemens Networks non-IFRS operating profit was primarily due to the lower gross margin, which was to some extent offset by higher net sales and lower operating expenses. The sequential increase in Nokia Siemens Networks non-IFRS operating profit was primarily due to higher net sales and gross margin, offset to some extent by higher operating expenses in the fourth quarter 2010.

 

Q4 2010 OPERATING HIGHLIGHTS

Devices & Services

·                  Following the start of shipments of the Nokia N8 in the third quarter, Nokia began shipments of two other smartphones based on the new Symbian software: The Nokia C7, a sleek, full-touch smartphone crafted from stainless steel and glass that is designed to appeal especially to social networkers, and the Nokia C6-01, a smaller, full-touch smartphone that features Nokia ClearBlack technology for improved outdoor visibility.

·                  Nokia started shipments of the Nokia C3 Touch & Type, a stainless steel device which combines the touch screen and traditional phone keypad.

·                  Nokia estimates that it became the leader in QWERTY in terms of volume share during the fourth quarter, helped by sales of its affordable QWERTY model, the Nokia C3.

·                  Nokia continued to develop its Ovi services. Highlights for the quarter included:

·                  Store continued to see increased downloads of applications and content. The Store is now attracting more than 4 million downloads a day, compared with more than 2.7 million a day reported in October 2010, boosted by traffic from the new Nokia N8 and Nokia C7, the widespread introduction of operator billing and the increased availability of local applications and content specific to individual markets. According to a study by iResearch published since the end of the quarter, Ovi Store ranks as the leading application store in China by downloads. Other key markets for Ovi Store include Russia and Turkey, where downloads from the Store have reached more than 1 million a week in each market.

·                  Maps continued to scale, and today includes coverage of 180 countries and regions in total, with 100 of them navigable. Additionally, more than 100 cities around the world have dedicated pedestrian navigation.  With the release of the latest version of Ovi Maps, users can download maps directly to their device over Wi-Fi as well as enjoy mapping that includes public transport lines for subways, trams and trains in more than 80 cities around the world. Nokia N8 owners have quickly become among the most active Maps users, spending up to four hours a month using maps and navigating.

·                  Life Tools, Nokia’s unique life improvement mobile information services designed especially for emerging markets, was launched in Nigeria, adding Africa’s most populous country to the service which already operates in India, Indonesia and China.

·                  Nokia announced that it will use Qt technologies to simplify development for both our own and third party developers. In addition, Nokia announced its intention to support HTML5 for the development of Web content and applications.

·                  Following the withdrawal of other members, the Symbian Foundation, a non-profit entity, transitioned to a licensing operation only and the Symbian platform’s development is now under the control of Nokia.

·                  In November 2010, Renesas Electronics Corporation completed its acquisition of Nokia’s Wireless Modem business, which was initially announced on July 6, 2010.

 

NAVTEQ

·                  NAVTEQ announced its selection by the Federal Communications Commission (FCC) for US map data to support development of a national broadband map.

·                  NAVTEQ announced an expansion in R&D capabilities with the addition of a Global R&D Center in Mumbai, India.

 

8



 

·                  NAVTEQ extended its global agreement with ORTEC, also incorporating additional NAVTEQ Traffic Patterns and NAVTEQ Transport content.

·                  NAVTEQ acquired PixelActive Inc. to accelerate expansion from a 2D to a 3D map and further leverage 3D technologies for all NAVTEQ products.

 

Nokia Siemens Networks

·                  Nokia Siemens Networks added three more 3G customers in India, announcing contracts with Idea Cellular, Vodafone Essar and Aircel.

·                  Nokia Siemens Networks continued to gain momentum in the emerging network sharing arena. In France Nokia Siemens Networks won a deal to build an enhanced mobile voice and data network in rural France for SFR, which will be shared with two other operators. In the UK Nokia Siemens Networks announced it had supplied more than 12,000 3G base stations to Mobile Broadband Network Ltd (MBNL), bringing improved coverage and capacity for Three and T-Mobile UK customers.

·                  Nokia Siemens Networks continued to make progress in LTE, announcing contracts with, among others,  Deutsche Telekom in Germany, Elisa in Finland and for Evolved Packet Core with Tele2 in Sweden.

·                  Nokia Siemens Networks secured its first network outsourcing contract in China with Anhui Unicom; Nokia Siemens Networks also announced plans to expand its global services delivery capability with the opening a new Global Network Operations Centre in Brazil.

·                  NBN Co in Australia awarded Nokia Siemens Networks a contract to supply DWDM optical transport network technology for the national broadband project.

·                  Nokia Siemens Networks announced it will open a Smart Lab in South Korea, focused on developing smart device-optimized applications, services and networks. The lab will explore the potential of wireless broadband technologies for delivering a superior end-user experience.

·                  Nokia Siemens Networks has successfully tested a technology that could significantly increase the data carrying capacity of standard copper wires. The company achieved data transmission speeds of 825 megabits per second (Mbps) over 400 meters of bonded copper lines and 750 Mbps over 500 meters using “Phantom DSL” technology.

 

For more information on the operating highlights mentioned above, please refer to related press announcements at the following links: www.nokia.com/press, www.navteq.com/about/press.html, www.nokiasiemensnetworks.com/press

 

NOKIA IN OCTOBER - DECEMBER 2010

(The following discussion is of Nokia’s reported results. Comparisons are given to the fourth quarter 2009 results, unless otherwise indicated.)

 

Nokia’s net sales increased 6% to EUR 12 651 million (EUR 11 988 million). Net sales of Devices & Services increased 4% to EUR 8 499 million (EUR 8 179 million). Net sales of NAVTEQ increased 37% to EUR 309 million (EUR 225 million). Net sales of Nokia Siemens Networks increased 9% to EUR 3 961 million (EUR 3 625 million).

 

Operating profit decreased to EUR 884 million (operating profit of EUR 1 141 million), representing an operating margin of 7.0% (9.5%). Operating profit in Devices & Services decreased 16% to EUR 1 018 million (EUR 1 219 million), representing an operating margin of 12.0% (14.9%). Operating loss in NAVTEQ was EUR 19 million (operating loss of EUR 56 million), representing an operating margin of -6.1% (-24.9%). Operating profit in Nokia Siemens Networks was EUR 1 million (operating profit EUR 17 million), representing an operating margin of 0.0% (0.5%). Group Common Functions expense totaled EUR 43 million (EUR 39 million).

 

In the period from October to December 2010, net financial expense was EUR 65 million (EUR 79 million). Profit before tax was EUR 833 million (EUR 1 063 million). Profit was EUR 742 million (EUR 882 million), based on a profit of EUR 745 million (EUR 948 million) attributable to equity holders of the parent and a loss of EUR 3 million (loss of EUR 66 million) attributable to non-controlling interests. Earnings per share decreased to EUR 0.20 (basic) and to EUR 0.20 (diluted), compared with EUR 0.26 (basic) and EUR 0.26 (diluted) in the fourth quarter of 2009.

 

9



 

CONSOLIDATED INCOME STATEMENT, EUR million

(unaudited)

 

 

 

Reported

 

Reported

 

Non-IFRS

 

Non-IFRS

 

 

 

10-12/2010

 

10-12/2009

 

10-12/2010

 

10-12/2009

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

12 651

 

11 988

 

12 653

 

11 988

 

Cost of sales

 

-8 924

 

-7 915

 

-8 921

 

-7 877

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

3 727

 

4 073

 

3 732

 

4 111

 

Research and development expenses

 

-1 540

 

-1 565

 

-1 403

 

-1 404

 

Selling and marketing expenses

 

-1 017

 

-1 048

 

-910

 

-945

 

Administrative and general expenses

 

-310

 

-294

 

-291

 

-278

 

Impairment of goodwill

 

 

 

 

 

Other income

 

207

 

99

 

60

 

77

 

Other expenses

 

-183

 

-124

 

-98

 

-88

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

884

 

1 141

 

1 090

 

1 473

 

Share of results of associated companies

 

14

 

1

 

14

 

1

 

Financial income and expenses

 

-65

 

-79

 

-65

 

-79

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

833

 

1 063

 

1 039

 

1 395

 

Tax

 

-91

 

-181

 

-186

 

-459

 

 

 

 

 

 

 

 

 

 

 

Profit

 

742

 

882

 

853

 

936

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to equity holders of the parent

 

745

 

948

 

817

 

912

 

Profit/loss attributable to non-controlling interests

 

-3

 

-66

 

36

 

24

 

 

 

742

 

882

 

853

 

936

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, EUR

 

 

 

 

 

 

 

 

 

(for profit attributable to the equity holders of the parent)

 

 

 

 

 

 

 

 

 

Basic

 

0.20

 

0.26

 

0.22

 

0.25

 

Diluted

 

0.20

 

0.26

 

0.22

 

0.25

 

 

 

 

 

 

 

 

 

 

 

Average number of shares (1 000 shares)

 

 

 

 

 

 

 

 

 

Basic

 

3 709 072

 

3 708 113

 

3 709 072

 

3 708 113

 

Diluted

 

3 713 000

 

3 713 778

 

3 713 000

 

3 713 778

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization, total

 

430

 

451

 

190

 

222

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense, total

 

15

 

14

 

15

 

14

 

 

10



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS, EUR million

(10-12/2010, 10-12/2009 and 1-12/2010 unaudited, 1-12/2009 audited)

 

 

 

10-12/2010

 

10-12/2009

 

1-12/2010*

 

1-12/2009

 

 

 

 

 

 

 

 

 

 

 

Profit

 

742

 

882

 

1 343

 

260

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

Translation differences

 

161

 

3

 

1 302

 

-563

 

Net investment hedge gains (+)/losses (-)

 

-21

 

6

 

-389

 

114

 

Cash flow hedges

 

83

 

-85

 

-141

 

25

 

Available-for-sale investments

 

-3

 

51

 

9

 

48

 

Other increase/decrease, net

 

-43

 

5

 

45

 

-7

 

Income tax related to components of other comprehensive income

 

-2

 

24

 

126

 

-44

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/expense, net of tax

 

175

 

4

 

952

 

-427

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income/expense

 

917

 

886

 

2 295

 

-167

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income/expense attributable to equity holders of the parent

 

886

 

960

 

2 776

 

429

 

non-controlling interests

 

31

 

-74

 

-481

 

-596

 

 

 

917

 

886

 

2 295

 

-167

 

 

11



 

DEVICES & SERVICES, EUR million

(unaudited)

 

 

 

Reported
10-12/2010

 

Special
items &
PPA
10-12/2010

 

Non-IFRS
10-12/2010

 

Reported 10-
12/2009

 

Special
items & PPA
10-12/2009

 

Non-IFRS
10-12/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (1)

 

8 499

 

2

 

8 501

 

8 179

 

 

8 179

 

Cost of sales

 

-6 019

 

 

-6 019

 

-5 372

 

 

-5 372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

2 480

 

2

 

2 482

 

2 807

 

 

2 807

 

% of net sales

 

29.2

 

 

 

29.2

 

34.3

 

 

 

34.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses (2)

 

-782

 

3

 

-779

 

-793

 

2

 

-791

 

% of net sales

 

9.2

 

 

 

9.2

 

9.7

 

 

 

9.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

-623

 

 

-623

 

-640

 

 

-640

 

% of net sales

 

7.3

 

 

 

7.3

 

7.8

 

 

 

7.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative and general expenses

 

-105

 

 

-105

 

-110

 

 

-110

 

% of net sales

 

1.2

 

 

 

1.2

 

1.3

 

 

 

1.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expenses (3)

 

48

 

-62

 

-14

 

-45

 

36

 

-9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

1 018

 

-57

 

961

 

1 219

 

38

 

1 257

 

% of net sales

 

12.0

 

 

 

11.3

 

14.9

 

 

 

15.4

 

 


(1) Deferred revenue related to acquisitions of EUR 2 million in Q4/10.

 

(2) Amortization of acquired intangible assets of EUR 3 million in Q4/10 and EUR 2 million in Q4/09.

 

(3) Restructuring charges of EUR 85 million and gain on sale of wireless modem business of EUR 147 million in Q4/10.

Restructuring charges of EUR 36 million in Q4/09.

 

12



 

NAVTEQ, EUR million

(unaudited)

 

 

 

Reported
10-12/2010

 

Special
items &
PPA
10-12/2010

 

Non-IFRS
10-12/2010

 

Reported
10-12/2009

 

Special
items & PPA
10-12/2009

 

Non-IFRS
10-12/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

309

 

 

309

 

225

 

 

225

 

Cost of sales (1)

 

-38

 

 

-38

 

-30

 

1

 

-29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

271

 

 

271

 

195

 

1

 

196

 

% of net sales

 

87.7

 

 

 

87.7

 

86.7

 

 

 

87.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses (2)

 

-201

 

89

 

-112

 

-175

 

82

 

-93

 

% of net sales

 

65.0

 

 

 

36.2

 

77.8

 

 

 

41.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses (3)

 

-67

 

29

 

-38

 

-58

 

27

 

-31

 

% of net sales

 

21.7

 

 

 

12.3

 

25.8

 

 

 

13.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative and general expenses (4)

 

-20

 

1

 

-19

 

-17

 

 

-17

 

% of net sales

 

6.5

 

 

 

6.1

 

7.6

 

 

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expenses

 

-2

 

 

-2

 

-1

 

 

-1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/loss

 

-19

 

119

 

100

 

-56

 

110

 

54

 

% of net sales

 

-6.1

 

 

 

32.4

 

-24.9

 

 

 

24.0

 

 


(1) Amortization of acquired intangibles of EUR 1 million in Q4/09.

 

(2) Amortization of acquired intangibles of EUR 89 million in Q4/10 and EUR 82 million in Q4/09.

 

(3) Amortization of acquired intangibles of EUR 29 million in Q4/10 and EUR 27 million in Q4/09.

 

(4) Amortization of acquired intangibles of EUR 1 million in Q4/10.

 

13



 

NOKIA SIEMENS NETWORKS, EUR million

(unaudited)

 

 

 

Reported
10-12/2010

 

Special
items &
PPA
10-12/2010

 

Non-IFRS
10-12/2010

 

Reported 10-
12/2009

 

Special
items & PPA
10-12/2009

 

Non-IFRS
10-12/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

3 961

 

 

3 961

 

3 625

 

 

3 625

 

Cost of sales (1)

 

-2 919

 

3

 

-2 916

 

-2 554

 

37

 

-2 517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

1 042

 

3

 

1 045

 

1 071

 

37

 

1 108

 

% of net sales

 

26.3

 

 

 

26.4

 

29.5

 

 

 

30.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses (2)

 

-556

 

46

 

-510

 

-597

 

77

 

-520

 

% of net sales

 

14.0

 

 

 

12.9

 

16.5

 

 

 

14.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses (3)

 

-325

 

77

 

-248

 

-350

 

76

 

-274

 

% of net sales

 

8.2

 

 

 

6.3

 

9.7

 

 

 

7.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative and general expenses (4)

 

-141

 

18

 

-123

 

-141

 

16

 

-125

 

% of net sales

 

3.6

 

 

 

3.1

 

3.9

 

 

 

3.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expenses (5)

 

-19

 

 

-19

 

34

 

-22

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/loss

 

1

 

144

 

145

 

17

 

184

 

201

 

% of net sales

 

0.0

 

 

 

3.7

 

0.5

 

 

 

5.5

 

 


(1) Restructuring charges of EUR 3 million in Q4/10 and of EUR 37 million in Q4/09.

 

(2) Restructuring charges of EUR 1 million and amortization of acquired intangibles of EUR 45 million in Q4/10.

Restructuring charges of EUR 32 million and amortization of acquired intangibles of EUR 45 million in Q4/09.

 

(3) Restructuring charges of EUR 6 million and amortization of acquired intangibles of EUR 71 million in Q4/10.

Restructuring charges of EUR 4 million and amortization of acquired intangibles of EUR 72 million in Q4/09.

 

(4) Restructuring charges of EUR 18 million in Q4/10 and EUR 16 million in Q4/09.

 

(5) Gain on sale of real estate EUR 22 million in Q4/09.

 

14



 

GROUP COMMON FUNCTIONS, EUR million

(unaudited)

 

 

 

Reported
10-12/2009

 

Special
items &
PPA
10-12/2009

 

Non-IFRS
10-12/2009

 

Reported
10-12/2009

 

Special
items &
PPA
10-12/2009

 

Non-IFRS
10-12/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

 

 

 

 

 

Cost of sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses

 

-1

 

 

-1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

-2

 

 

-2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative and general expenses

 

-44

 

 

-44

 

-26

 

 

-26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expenses

 

4

 

 

4

 

-13

 

 

-13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/loss

 

-43

 

 

-43

 

-39

 

 

-39

 

 

15



 

NOKIA NET SALES BY GEOGRAPHIC AREA, EUR million

(10-12/2010, 10-12/2009 and 1-12/2010 unaudited, 1-12/2009 audited)

 

Reported

 

10-12/2010

 

Y-o-Y 
change, %

 

10-12/2009

 

1-12/2010

 

Y-o-Y
change, %

 

1-12/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Europe

 

4 528

 

 

4 543

 

14 652

 

-1

 

14 790

 

Middle-East & Africa

 

1 607

 

5

 

1 528

 

5 518

 

-2

 

5 605

 

Greater China

 

2 191

 

31

 

1 668

 

7 620

 

19

 

6 429

 

Asia-Pacific

 

2 587

 

1

 

2 606

 

8 946

 

 

8 967

 

North America

 

553

 

-8

 

602

 

1 953

 

-5

 

2 061

 

Latin America

 

1 185

 

14

 

1 041

 

3 757

 

20

 

3 132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

12 651

 

6

 

11 988

 

42 446

 

4

 

40 984

 

 

NOKIA PERSONNEL BY GEOGRAPHIC AREA

 

 

 

31.12.10

 

Y-o-Y
change, %

 

31.12.09

 

 

 

 

 

 

 

 

 

Europe

 

54 556

 

-5

 

57 490

 

Middle-East & Africa

 

4 681

 

12

 

4 172

 

Greater China

 

21 050

 

33

 

15 774

 

Asia-Pacific

 

29 310

 

20

 

24 382

 

North America

 

8 084

 

2

 

7 911

 

Latin America

 

14 746

 

6

 

13 824

 

 

 

 

 

 

 

 

 

Total

 

132 427

 

7

 

123 553

 

 

16



 

CONSOLIDATED INCOME STATEMENT, EUR million

(unaudited)

 

NOKIA GROUP

 

 

 

Reported
10-12/2010

 

Special items 
& PPA 
10-12/2010

 

Non-IFRS 
10-12/2010

 

Reported
10-12/2009

 

Special 
items & PPA
10-12/2009

 

Non-IFRS
10-12/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales (1)

 

12 651

 

2

 

12 653

 

11 988

 

 

11 988

 

Cost of sales (2)

 

-8 924

 

3

 

-8 921

 

-7 915

 

38

 

-7 877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

3 727

 

5

 

3 732

 

4 073

 

38

 

4 111

 

% of net sales

 

29.5

 

 

 

29.5

 

34.0

 

 

 

34.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development expenses (3)

 

-1 540

 

137

 

-1 403

 

-1 565

 

161

 

-1 404

 

% of net sales

 

12.2

 

 

 

11.1

 

13.1

 

 

 

11.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses (4)

 

-1 017

 

107

 

-910

 

-1 048

 

103

 

-945

 

% of net sales

 

8.0

 

 

 

7.2

 

8.7

 

 

 

7.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative and general expenses (5)

 

-310

 

19

 

-291

 

-294

 

16

 

-278

 

% of net sales

 

2.5

 

 

 

2.3

 

2.5

 

 

 

2.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income and expenses (6)

 

24

 

-62

 

-38

 

-25

 

14

 

-11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

884

 

206

 

1 090

 

1 141

 

332

 

1 473

 

% of net sales

 

7.0

 

 

 

8.6

 

9.5

 

 

 

12.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of results of associated companies

 

14

 

 

 

14

 

1

 

 

 

1

 

Financial income and expenses

 

-65

 

 

 

-65

 

-79

 

 

 

-79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit before tax

 

833

 

206

 

1 039

 

1 063

 

332

 

1 395

 

Tax

 

-91

 

-95

 

-186

 

-181

 

-278

 

-459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit

 

742

 

111

 

853

 

882

 

54

 

936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to equity holders of the parent

 

745

 

72

 

817

 

948

 

-36

 

912

 

Profit/loss attributable to non-controlling interests

 

-3

 

39

 

36

 

-66

 

90

 

24

 

 

 

742

 

111

 

853

 

882

 

54

 

936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, EUR

 

 

 

 

 

 

 

 

 

 

 

 

 

(for profit attributable to the equity holders of the parent)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

0.20

 

0.02

 

0.22

 

0.26

 

-0.01

 

0.25

 

Diluted

 

0.20

 

0.02

 

0.22

 

0.26

 

-0.01

 

0.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of shares (1 000 shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

3 709 072