NOKIA - Regrouping of Nokia quarterly and full year 2010 and first quarter 2011 results v

Regrouping of Nokia quarterly and full year 2010 and first quarter 2011 results v

Nokia Corporation
Stock exchange release
July 19, 2011 at 15:00 (CET +1)

Espoo, Finland - Nokia today provided historical results for its Devices & Services business, regrouped for comparability purposes according to the new reporting format that reflects the operational structure that became effective on April 1, 2011.

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

- Smart Devices (within Devices & Services)
- Mobile Phones (within Devices & Services)
- NAVTEQ
- 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 NAVTEQ and Nokia Siemens Networks, we present operating profit.

Devices & Services Other primarily includes Nokia's luxury phone business Vertu, spare parts, intellectual property royalty income, as well as common research and development expenses. Other income and expenses includes major restructuring programs related to the Devices & Services business as well as other unallocated items.

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 Devices 1-3/2010						Mobile Phones 1-3/2010						Devices & Services Other 1-3/2010						Devices & Services 1-3/2010		NAVTEQ 1-3/2010			Nokia Siemens Networks 1-3/2010			Corporate Common 1-3/2010				Eliminations 1-3/2010		Nokia Group 1-3/2010
Net sales		3 362						3 194						107						6 663		189			2 718			-				-48		9 522
Cost of sales		-2 211						-2 234						-62						-4 507		-29			-1 936			-				28		-6 444
Gross profit 1)		1 151						960						45						2 156		160			782			-				-20		3 078
% of net sales		34.2						30.1						42.1						32.4		84.7			28.8									32.3
Operating expenses		-829						-340						-194						-1 363		-237			-1 015			-12				-		-2 627
Other income and expenses		28						-						10						38		-			7			-8				-		37
Contribution		350						620						-139
% of net sales		10.4						19.4						-129.9
Operating profit 1)																				831		-77			-226			-20				-20		488
% of net sales																				12.5		-40.7			-8.3									5.1
1) Elimination of profits recognized in NAVTEQ that are deferred in Devices & Services related to Ovi Maps service sold in combination with Nokia's GPS  enabled smartphones.
SECOND QUARTER 2010, REPORTED, EUR million
(unaudited)
					Smart Devices 4-6/2010						Mobile Phones 4-6/2010						Devices & Services Other 4-6/2010			Devices & Services 4-6/2010		NAVTEQ 4-6/2010			Nokia Siemens Networks 4-6/2010			Corporate Common 4-6/2010				Eliminations 4-6/2010			Nokia Group 4-6/2010
Net sales					3 503						3 190						106			6 799		252			3 039			-				-87			10 003
Cost of sales					-2 374						-2 304						-69			-4 747		-47			-2 170			-				32			-6 932
Gross profit 1)					1 129						886						37			2 052		205			869			-				-55			3 071
% of net sales					32.2						27.8						34.9			30.2		81.3			28.6										30.7
Operating expenses					-848						-374						-206			-1 428		-283			-1 034			-29				-			-2 774
Other income and expenses					2						1						16			19		-3			-14			-4				-			-2
Contribution					283						513						-153
% of net sales					8.1						16.1						-144.3
Operating profit 1)																				643		-81			-179			-33				-55			295
% of net sales																				9.5		-32.1			-5.9										2.9
1) Elimination of profits recognized in NAVTEQ that are deferred in Devices & Services related to Ovi Maps service sold in combination with Nokia's GPS  enabled smartphones.
THIRD QUARTER 2010, REPORTED, EUR million
(unaudited)
				Smart Devices 7-9/2010						Mobile Phones 7-9/2010						Devices & Services Other 7-9/2010				Devices & Services 7-9/2010		NAVTEQ 7-9/2010			Nokia Siemens Networks 7-9/2010			Corporate Common 7-9/2010				Eliminations 7-9/2010			Nokia Group 7-9/2010
Net sales				3 612						3 364						197				7 173		252			2 943			-				-98			10 270
Cost of sales				-2 509						-2 506						-77				-5 092		-39			-2 241			1				42			-7 329
Gross profit 1)				1 103						858						120				2 081		213			702			1				-56			2 941
% of net sales				30.5						25.5						60.9				29.0		84.5			23.9										28.6
Operating expenses				-773						-382						-184				-1 339		-263			-966			-19				-			-2 587
Other income and expenses				5						3						57				65		2			-18			-				-			49
Contribution				335						479						-7
% of net sales				9.3						14.2						-3.6
Operating profit 1)																				807		-48			-282			-18				-56			403
% of net sales																				11.3		-19.0			-9.6										3.9
1) Elimination of profits recognized in NAVTEQ that are deferred in Devices & Services related to Ovi Maps service sold in combination with Nokia's GPS  enabled smartphones.
FOURTH QUARTER 2010, REPORTED, EUR million
(unaudited)
			Smart Devices 10-12/2010						Mobile Phones 10-12/2010						Devices & Services Other 10-12/2010					Devices & Services 10-12/2010		NAVTEQ 10-12/2010			Nokia Siemens Networks 10-12/2010		Corporate Common 10-12/2010				Eliminations 10-12/2010		Nokia Group 10-12/2010
Net sales			4 396						3 947						156					8 499		309			3 961		-				-118		12 651
Cost of sales			-3 111						-2 822						-86					-6 019		-38			-2 919		-				52		-8 924
Gross profit 1)			1 285						1 125						70					2 480		271			1 042		-				-66		3 727
% of net sales			29.2						28.5						44.9					29.2		87.7			26.3								29.5
Operating expenses			-882						-410						-218					-1 510		-288			-1 022		-47				-		-2 867
Other income and expenses			145						1						-98					48		-2			-19		4				-7		24
Contribution			548						716						-246
% of net sales			12.5						18.1						-157.7
Operating profit 1)																				1 018		-19			1		-43				-73		884
% of net sales																				12.0		-6.1			0.0								7.0
1) Elimination of profits recognized in NAVTEQ that are deferred in Devices & Services related to Ovi Maps service sold in combination with Nokia's GPS  enabled smartphones.
FULL YEAR 2010, REPORTED, EUR million
(unaudited)
		Smart Devices 1-12/2010					Mobile Phones 1-12/2010						Devices & Services Other 1-12/2010					Devices & Services 1-12/2010			NAVTEQ 1-12/2010		Nokia Siemens Networks 1-12/2010			Corporate Common 1-12/2010				Eliminations 1-12/2010			Nokia Group 1-12/2010
Net sales		14 873					13 695						566					29 134			1 002		12 661			-				-351			42 446
Cost of sales		-10 205					-9 866						-294					-20 365			-153		-9 266			1				154			-29 629
Gross profit 1)		4 668					3 829						272					8 769			849		3 395			1				-197			12 817
% of net sales		31.4					28.0						48.1					30.1			84.7		26.8										30.2
Operating expenses		-3 332					-1 506						-802					-5 640			-1 071		-4 037			-107				-			-10 855
Other income and expenses		180					5						-15					170			-3		-44			-8				-7			108
Contribution		1 516					2 328						-545
% of net sales		10.2					17.0						-96.3
Operating profit 1)																		3 299			-225		-686			-114				-204			2 070
% of net sales																		11.3			-22.5		-5.4										4.9
1) Elimination of profits recognized in NAVTEQ that are deferred in Devices & Services related to Ovi Maps service sold in combination with Nokia's GPS  enabled smartphones.
FIRST QUARTER 2011, REPORTED, EUR million
(unaudited)
	Smart Devices 1-3/2011					Mobile Phones 1-3/2011						Devices & Services Other 1-3/2011							Devices & Services 1-3/2011			NAVTEQ 1-3/2011		Nokia Siemens Networks 1-3/2011					Corporate Common 1-3/2011			Eliminations 1-3/2011		Nokia Group 1-3/2011
Net sales	3 528					3 407						152							7 087			232		3 171					-			-91		10 399
Cost of sales	-2 475					-2 457						-92							-5 024			-37		-2 324					-			60		-7 325
Gross profit 1)	1 053					950						60							2 063			195		847					-			-31		3 074
% of net sales	29.8					27.9						39.5							29.1			84.1		26.7										29.6
Operating expenses	-835					-386						-167							-1 388			-258		-990					-22			-		-2 658
Other income and expenses	-					-2						17							15			1		1					6			-		23
Contribution	218					562						-90
% of net sales	6.2					16.5						-59.2
Operating profit 1)																			690			-62		-142					-16			-31		439
% of net sales																			9.7			-26.7		-4.5										4.2
1) Elimination of profits recognized in NAVTEQ that are deferred in Devices & Services related to Ovi Maps service sold in combination with Nokia's GPS  enabled smartphones.

 

About Nokia
Nokia is committed to connecting people to what matters to them by combining advanced mobile technology with personalized services. More than 1.3 billion people connect to one another with a Nokia, from our most affordable voice-optimized mobile phones to advanced Internet-connected smartphones sold in virtually every market in the world. Through Ovi (www.ovi.com), people also enjoy access to maps and navigation on mobile, a rapidly expanding applications store, a growing catalog of digital music, free email and more. Nokia's NAVTEQ is a leader in comprehensive digital mapping and navigation services, and Nokia Siemens Networks is one of the leading providers of telecommunications infrastructure hardware, software and professional services globally.

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