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Nokia Q2 2009 Net Sales EUR 9.9 Billion, Non-IFRS EPS EUR 0.15 (Reported EPS EUR 0.10)

July 16, 2009
    ESPOO, Finland, July 16 /PRNewswire-FirstCall/ --
    Nokia Corporation (NYSE: NOK)
    Interim Report
    July 16, 2009 at 13.00 (CET +1)
    The complete press release with tables is available at:

http://www.nokia.com/results/Nokia_results2009Q2e.pdf

                               Non-IFRS second quarter 2009 results 1,2,3

                                                    YoY                 QoQ
    EUR million              Q2/2009   Q2/2008    Change   Q1/2009    Change
    Net sales                  9 913    13 155    -24.6%     9 276      6.9%
    Devices & Services         6 586     9 090    -27.5%     6 173      6.7%
    NAVTEQ                       148                           134     10.4%
    Nokia Siemens Networks     3 199     4 071    -21.4%     2 990      7.0%

    Operating profit             775     2 054    -62.3%       514     50.8%
    Devices & Services           802     1 824    -56.0%       642     24.9%
    NAVTEQ                        19                             5    280.0%
    Nokia Siemens Networks         2       274    -99.3%      -122

    Operating margin            7.8%     15.6%                5.5%
    Devices & Services         12.2%     20.1%               10.4%
    NAVTEQ                     12.8%                          3.7%
    Nokia Siemens Networks      0.1%      6.7%               -4.1%

    EPS, EUR Diluted            0.15      0.37    -59.5%      0.10     50.0%

                                Reported second quarter 2009 results 1,3

                                                    YoY                 QoQ
    EUR million              Q2/2009   Q2/2008    Change   Q1/2009    Change
    Net sales                  9 912    13 151    -24.6%     9 274      6.9%
    Devices & Services         6 586     9 090    -27.5%     6 173      6.7%
    NAVTEQ                       147                           132     11.4%
    Nokia Siemens Networks     3 199     4 067    -21.3%     2 990      7.0%

    Operating profit             427     1 474    -71.0%        55    676.4%
    Devices & Services           763     1 565    -51.2%       547     39.5%
    NAVTEQ                      -100                          -120    -16.7%
    Nokia Siemens Networks      -188       -47    300.0%      -361    -47.9%

    Operating margin            4.3%     11.2%                0.6%
    Devices & Services         11.6%     17.2%                8.9%
    NAVTEQ                    -68.0%                        -90.9%
    Nokia Siemens Networks     -5.9%     -1.2%              -12.1%

    EPS, EUR Diluted            0.10      0.29    -65.5%      0.03    233.3%

Note 1 relating to NAVTEQ: On July 10, 2008, Nokia completed the
acquisition of NAVTEQ Corporation. NAVTEQ is a separate reportable segment of
Nokia starting from the third quarter 2008. Accordingly, the results of
NAVTEQ are not available for the prior periods.

Note 2 relating to non-IFRS results: Non-IFRS results exclude special
items for all periods. In addition, non-IFRS results exclude intangible asset
amortization, other purchase price accounting related items and inventory
value adjustments arising from i) the formation of Nokia Siemens Networks and
ii) all business acquisitions completed after June 30, 2008. More specific
information about the exclusions from the non-IFRS results may be found in
this press release on pages 3, 10 and 13-17.

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 Q2 2009 and Q2 2008 can be found
in the tables on pages 10 and 13-17 of this press release. A reconciliation
of our Q1 2009 non-IFRS results can be found on pages 12-16 of our Q1 2009
Interim Report of April 16, 2009.

Note 3: Nokia reported net sales were EUR 19 186 million and earnings per
share (diluted) were EUR 0.13 for the period from January 1 to June 30, 2009.
Further information about the results for the period from January 1 to June
30, 2009
can be found in this press release on pages 9, 11, and 18-23.

    SECOND QUARTER 2009 HIGHLIGHTS

    - Nokia net sales of EUR 9.9 billion, down 25% year on year and up 7%
      sequentially (down 24% and up 7% at constant currency).

    - Devices & Services net sales of EUR 6.6 billion, down 28% year on year
      and up 7% sequentially (down 28% and up 7% at constant currency), and
      non-IFRS operating margin of 12.2% (20.1% in Q2 2008).

    - Devices & Services gross margin of 34.0%, up from 33.8% in Q1 2009.

    - Services net sales of EUR 140 million (billings of EUR 207 million).
      Due to the divestment of the security appliance business in April 2009,
      services net sales are not directly comparable to prior periods.

    - Estimated industry mobile device volumes of 268 million units, down 12%
      year on year and up 5% sequentially.

    - Nokia mobile device volumes of 103.2 million units, down 15% year on
      year and up 11% sequentially.

    - Nokia estimated mobile device market share of 38% in Q2 2009, down from
      40% in Q2 2008 and up from 37% in Q1 2009.

    - Nokia mobile device ASP of EUR 62, down from EUR 65 in Q1 2009.

    - NAVTEQ net sales of EUR 147 million, up 11% sequentially, and non-IFRS
      operating margin of 12.8% (3.7% in Q1 2009)

    - Nokia Siemens Networks net sales of EUR 3.2 billion, down 21% year on
      year and up 7% sequentially (down 20% and up 8% at constant currency),
      and non-IFRS operating margin of 0.1% (6.7% in Q2 2008)

    - Nokia operating cash flow of EUR 716 million.

    - Total cash and other liquid assets of EUR 7.0 billion at the end of Q2
      2009.

OLLI-PEKKA KALLASVUO, NOKIA CEO:

“Nokia put in a solid performance in what was another tough quarter. We
increased our share of the global mobile device market sequentially to an
estimated 38% and grew our smartphone market share to an estimated 41%. As a
result of strong operational execution, underlying operating margins improved
sequentially in all segments. Competition remains intense, but demand in the
overall mobile device market appears to be bottoming out. As before, we are
continuing to tightly manage our operating expenses.

We are balancing short-term priorities with our longer-term growth
ambitions as elements of the mobile handset, PC, internet and media
industries converge to form a new industry. Consumers will increasingly
expect devices and services designed as integrated solutions. To capture this
opportunity we are accelerating our strategic transformation into a solutions
company.”

    INDUSTRY AND NOKIA OUTLOOK

    - Nokia expects industry mobile device volumes in the third quarter 2009
      to be at approximately the same level or up slightly sequentially.

    - Nokia expects its mobile device market share in the third quarter 2009
      to be approximately at the same level sequentially.

    - Nokia continues to expect 2009 industry mobile device volumes to
      decline approximately 10% from 2008 levels.

    - Nokia now expects its market share in mobile devices to be
      approximately flat in 2009, compared with 2008. This is an update to
      Nokia's earlier target to increase its market share in mobile devices
      in 2009.

    - Nokia now expects its non-IFRS operating margin in Devices & Services
      in the second half 2009 to be at approximately the same level as in the
      first half 2009. This is an update to Nokia's earlier target for the
      non-IFRS operating margin in Devices & Services to be in the teens for
      the second half 2009.

    - Nokia and Nokia Siemens Networks continue to expect the mobile
      infrastructure and fixed infrastructure and related services market to
      decline approximately 10% in Euro terms in 2009, from 2008 levels.

    - Nokia and Nokia Siemens Networks now expect Nokia Siemens Networks
      market share to decline moderately in 2009, compared to 2008, with a
      strong performance in its Services business unit expected to be offset
      by declines in certain product businesses. This is an update to Nokia
      and Nokia Siemens Networks earlier target for Nokia Siemens Networks
      market share to remain constant in 2009, compared to 2008.

SECOND QUARTER 2009 FINANCIAL HIGHLIGHTS

(Comparisons are given to the second quarter 2008, unless otherwise
indicated.)

    The non-IFRS results exclusions
    Q2 2009 - EUR 348 million (net) consisting of:

    - EUR 22 million of impairment of intangible assets in Devices & Services

    - EUR 83 million restructuring charge in Devices & Services

    - EUR 68 million gain on sale of security appliance business in Devices &
      Services

    - EUR 69 million restructuring charge and other one-time items in Nokia
      Siemens Networks

    - EUR 121 million of intangible assets amortization and other purchase
      price related items arising from the formation of Nokia Siemens
      Networks

    - EUR 119 million of intangible assets amortization and other purchase
      price 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

    Q1 2009 - EUR 459 million consisting of:

    - EUR 34 million of impairment of intangible assets in Devices & Services

    - EUR 59 million restructuring charge in Devices & Services

    - EUR 123 million restructuring charge and other one-time items in Nokia
      Siemens Networks

    - EUR 116 million of intangible assets amortization and other purchase
      price related items arising from the formation of Nokia Siemens
      Networks

    - EUR 125 million of intangible assets amortization and other purchase
      price 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

    Q2 2008 - EUR 580 million consisting of:

    - EUR 259 million of charges related to closure of the Bochum site in
      Germany in Devices & Services

    - EUR 201 million restructuring charge and other one-time items in Nokia
      Siemens Networks

    - EUR 120 million of intangible assets amortization and other purchase
      price related items arising from the formation of Nokia Siemens
      Networks

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 second quarter 2009 net sales decreased 25% to EUR 9.9 billion,
compared with EUR 13.2 billion in the second quarter 2008. At constant
currency, Group net sales would have decreased 24% year on year and increased
7% sequentially.

    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.

                  NOKIA SECOND QUARTER 2009 NET SALES
                     Reported & Constant Currency 1

                                                         Q2/2009      Q2/2009
                                                             vs.          vs.
                                                         Q2/2008      Q1/2009
                                                          Change       Change

    Group net sales - reported                              -25%           7%
    Group net sales - constant currency 1                   -24%           7%

    Devices & Services net sales - reported                 -28%           7%
    Devices & Services net sales - constant currency 1      -28%           7%

    Nokia Siemens Networks net sales - reported             -21%           7%
    Nokia Siemens Networks net sales - constant currency 1  -20%           8%

    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 second quarter 2009 reported operating profit decreased 71% to
EUR 427 million, compared with EUR 1.5 billion in the second quarter 2008.
Nokia’s second quarter 2009 non-IFRS operating profit decreased 62% to EUR
775 million
, compared with EUR 2.1 billion in the second quarter 2008.
Nokia’s second quarter 2009 reported operating margin was 4.3% (11.2%).
Nokia’s second quarter 2009 non-IFRS operating margin was 7.8% (15.6%).

Operating cash flow for the second quarter 2009 was EUR 716 million.
Operating cash flow for the second quarter 2008 was EUR 1.5 billion. Total
cash and other liquid assets were EUR 7.0 billion at June 30, 2009, compared
with EUR 8.0 billion at June 30, 2008. At June 30, 2009, Nokia’s net
debt-equity ratio (gearing) was -10%, compared with -47% at June 30, 2008.

Devices & Services

In the second quarter 2009, the total mobile device volumes of our
Devices & Services group were 103.2 million units, representing a decline of
15% year on year and an 11% increase sequentially. The overall industry
mobile device volumes for the same period were 268 million units based on
Nokia’s preliminary estimate, representing a 12% year on year decrease and a
5% sequential increase. The lower device volumes year on year for Nokia and
the industry continued to be driven by the negative impact of the
deteriorated global economic conditions, including weaker consumer and
corporate spending, constrained credit availability and currency market
volatility. The sequential industry device volume increase primarily
reflected seasonality in the second quarter. Nokia volumes also benefited
sequentially from a more stable inventory situation in the operator and
distributor channels. Nokia’s mobile device market share was an estimated 38%
in the second quarter 2009, down from 40% in the second quarter 2008 and up
from 37% in the first quarter 2009.

Of the total industry mobile device volumes, converged mobile device
industry volumes in the second quarter 2009 increased to 41.0 million units,
based on Nokia’s preliminary estimate, compared with an estimated 37.1
million units in the second quarter 2008, and 36.0 million units in the first
quarter 2009. Our own converged mobile device volumes were 16.9 million units
in the second quarter 2009, compared with 15.3 million units in the second
quarter 2008 and 13.7 million units in the first quarter 2009. Nokia’s share
of the converged device market was an estimated 41% in the second quarter
2009, unchanged from 41% in the second quarter 2008 and up from 39% in the
first quarter 2009. We shipped 4.6 million Nokia Nseries and 4.7 million
Nokia Eseries devices during the second quarter 2009, up from the combined
8.2 million Nseries and Eseries devices we shipped in the first quarter 2009.

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.

    NOKIA MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA
                                                                        QoQ
    (million units)       Q2/2009    Q2/2008 YoY Change  Q1/2009     Change
    Europe                   23.3       27.1     -14.0%     22.3       4.5%
    Middle East & Africa     18.9       21.1     -10.4%     14.8      27.7%
    Greater China            18.6       17.6       5.7%     17.9       3.9%
    Asia-Pacific             30.3       36.4     -16.8%     28.2       7.4%
    North America             3.2        4.5     -28.9%      3.4      -5.9%
    Latin America             8.9       15.3     -41.8%      6.6      34.8%
    Total                   103.2      122.0     -15.4%     93.2      10.7%

Based on our preliminary market estimate, Nokia’s mobile device market
share for the second quarter 2009 was 38%, compared with 40% in the second
quarter 2008 and 37% in the first quarter 2009. Our year on year market share
decline was driven primarily by lower market share in Latin America,
Asia-Pacific and North America. This was partially offset by a slightly
higher market share in Greater China, Europe and Middle East & Africa.
Sequentially, our market share declined in North America, but this decline
was more than offset by our increased market share in Middle East & Africa,
Greater China, Europe, Asia-Pacific and Latin America.

Our mobile device average selling price (ASP) in the second quarter 2009
was EUR 62, down from EUR 74 in the second quarter 2008 and EUR 65 in the
first quarter 2009. Both the year on year and sequential ASP declines were
primarily due to general price pressure and a higher proportion of sales of
lower priced products. Our second quarter 2009 ASP benefited from sales of
new high-end products, compared to the first quarter 2009.

Second quarter 2009 Devices & Services net sales declined 28% to EUR 6.6
billion
, compared with EUR 9.1 billion in the second quarter 2008. Devices &
Services net sales were down year on year in all geographic areas. At
constant currency, Devices & Services net sales would have decreased 28%. The
net sales decline resulted primarily from lower volumes, combined with the
ASP decline, compared with the second quarter 2008. Of our total Devices &
Services net sales, services contributed EUR 140 million in the second
quarter 2009, representing 18% year on year growth and a 7% sequential
decrease. Nokia completed the divestment of its security appliances business
in April 2009 and accordingly services net sales for periods from April 1,
2009
are not directly comparable to services net sales of any prior periods.

Devices & Services reported gross profit and non-IFRS gross profit
decreased 32% to EUR 2.2 billion, compared with EUR 3.3 billion in the second
quarter 2008, with a reported and non-IFRS gross margin of 34.0% (36.1%). The
year on year gross margin decrease was primarily due to a higher proportion
of sales of lower end, lower margin devices and a lower proportion of sales
of new high-end, higher margin devices, as well as general price pressure.

Devices & Services reported operating profit decreased 51% to EUR 763
million
, compared with EUR 1.6 billion in the second quarter 2008, with a
reported operating margin of 11.6% (17.2%). Devices & Services non-IFRS
operating profit decreased 56% to EUR 802 million, compared with EUR 1.8
billion
in the second quarter 2008, with a non-IFRS operating margin of 12.2%
(20.1%). The 56% year on year decrease in non-IFRS operating profit for the
second quarter 2009 was due primarily to lower net sales compared with the
second quarter 2008. The impact of lower net sales was somewhat mitigated by
a reduction in our cost of sales and operating expenses during the second
quarter 2009.

NAVTEQ

(Comparisons are given to the first quarter 2009)

Second quarter 2009 NAVTEQ net sales increased 11% sequentially to EUR
147 million
, compared with EUR 132 million in the first quarter 2009,
reflecting a slight pick-up in demand for auto navigation systems. NAVTEQ
reported gross profit was EUR 126 million (EUR 116 million), with a gross
margin of 85.7% (87.5%). Non-IFRS gross profit was EUR 127 million (EUR 117
million
), with a non-IFRS gross margin of 85.8% (87.3%). NAVTEQ had a
reported operating loss of EUR 100 million (EUR 120 million loss). The
reported operating margin was -68.0% (-90.9%). NAVTEQ non-IFRS operating
profit was EUR 19 million (EUR 5 million), with a non-IFRS operating margin
of 12.8% (3.7%).

Nokia Siemens Networks

Second quarter 2009 net sales decreased 21% to EUR 3.2 billion, compared
with EUR 4.1 billion in the second quarter 2008, reflecting challenging
market conditions and competitive factors. At constant currency, Nokia
Siemens Networks net sales would have decreased 20%.

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
                                                                         QoQ
    EUR million            Q2/2009   Q2/2008 YoY Change   Q1/2009     Change
    Europe                   1 209     1 412     -14.4%     1 097      10.2%
    Middle East & Africa       459       553     -17.0%       436       5.3%
    Greater China              353       413     -14.5%       284      24.3%
    Asia-Pacific               648     1 076     -39.8%       692      -6.4%
    North America              208       158      31.6%       169      23.1%
    Latin America              322       455     -29.2%       312       3.2%
    Total                    3 199     4 067     -21.3%     2 990       7.0%

Nokia Siemens Networks reported gross profit decreased 25% to EUR 860
million
, compared with EUR 1.1 billion in the second quarter 2008, with a
gross margin of 26.9% (28.2%). Nokia Siemens Networks non-IFRS gross profit
decreased 30% to EUR 897 million, compared with EUR 1.3 billion in the second
quarter 2008, with a non-IFRS gross margin of 28.0% (31.5%). The lower year
on year non-IFRS gross profit in the second quarter 2009 was due primarily to
lower year on year net sales.

Nokia Siemens Networks had a second quarter 2009 reported operating loss
of EUR 188 million compared with an operating loss of EUR 47 million in the
second quarter 2008, with an operating margin of -5.9% (-1.2%). Nokia Siemens
Networks non-IFRS operating profit was EUR 2 million in the second quarter
2009, compared with a non-IFRS operating profit of EUR 274 million in the
second quarter 2008, with a non-IFRS operating margin of 0.1% (6.7%). The
year on year decline in Nokia Siemens Networks non-IFRS operating profit
primarily reflected lower net sales.

    Q2 2009 OPERATING HIGHLIGHTS
    Devices & Services

    - Nokia continued to take action to adjust its business operations and
      cost base in accordance with market demand as well as seek savings in
      operational expenses, looking at all areas and activities across
      Devices & Services and global support functions:

    - Nokia announced plans to streamline its Services organization,
      including measures that are targeted to open up greater opportunities
      for third party partner services. Approximately 450 employees globally
      are affected by the plans.

    - Nokia announced plans to improve cost-efficiency in logistics,
      production management and production support operations, with
      approximately 170 employees globally affected.

    - Nokia announced a targeted voluntary resignation package for up to 320
      employees at its mobile device manufacturing facility in Salo, Finland.
      The scheme was fully subscribed.

    - Nokia commenced shipments of the Nokia N97, its flagship smartphone and
      the first device to ship with the integrated Ovi Store, a one-stop-shop
      for applications and content for millions of Nokia device users and
      another critical element of our evolving Ovi internet services
      offering. Ovi Store launched in late May and by the end of the quarter
      it had attracted downloads from people in more than 180 countries.

    - In the area of music, Nokia benefited from the continued strong
      performance by the Nokia 5800 XpressMusic, its first mass market touch
      product, which shipped 3.7 million units during the quarter. More than
      6.8 million units have shipped since the device began shipping in late
      November last year. During the second quarter, Nokia further
      strengthened its offering of devices optimized for music, announcing
      the Nokia 5530 XpressMusic, a compact touch-screen device. Nokia also
      extended its Comes With Music service - an 'all-you-can-eat' music
      offer where users can download freely millions of tracks for a pre-
      defined period of time and keep those tracks once the period is up - to
      Brazil, Germany, Italy, Mexico, Sweden and Switzerland. Additionally,
      Nokia extended Nokia Music Store, with the chain of digital music
      stores now covering 21 countries in total.

    - Nokia Messaging, Nokia's consumer email service, continued to gain
      traction among operators with six new agreements announced in the
      second quarter. By the end of the quarter, Nokia Messaging was
      available to Nokia users in more than 40 countries. Additionally, by
      the end of the quarter, approximately 600 000 people had activated an
      Ovi Mail account. Ovi Mail is an email solution developed especially
      for consumers in emerging markets.

    - Nokia started shipments of the Nokia E75, its flagship email device,
      and the Nokia N86 8MP, its flagship imaging device. Nokia also
      announced the Nokia E72, its latest full QWERTY smartphone and the
      successor to the highly popular Nokia E71. Cumulative shipments of the
      Nokia E71 reached 5 million during the quarter.

    - Nokia made Nokia Life Tools commercially available across India. Nokia
      Life Tools is an innovative offering of agriculture information,
      Education and entertainment services targeted at non-urban consumers in
      Emerging markets. Nokia Life Tools is available on the new Nokia 2330
      classic and the Nokia 2323 classic, and will also be made available on
      other enabled devices.

    - Nokia announced the Nokia 6216 classic, its first SIM-based Near Field
      Communication (NFC) device which enables operators to build NFC
      services on to the SIM card.

    - Nokia commenced shipments of its first 3G mobile device in Korea. The
      6210s is a competitively priced smartphone with a slide form factor and
      is available through local operator KTF.

    - Nokia expanded its network of research laboratories with the opening of
      Nokia Research Center, Berkeley, in California in the United States.

    - Nokia and Intel Corporation announced that they will work together to
      develop a new class of Intel(R) Architecture-based mobile computing
      device and chipset architectures that will combine the performance of
      powerful computers with high-bandwidth mobile broadband communications
      and ubiquitous Internet connectivity. The two companies share a vision
      of a new class of standards-based mobile computing platforms that
      provide an always-on, always-connected experience and offer the
      performance to deliver PC-like Internet experiences across a new class
      of services.

    NAVTEQ

    - NAVTEQ announced the availability of dynamic content delivery for HD
      Radio(TM) systems in North America, accelerating the delivery of
      Content including traffic, weather and fuel prices.

    - NAVTEQ launched NAVTEQ LocationPoint(TM), a location-based advertising
      service for mobile devices, in several European countries.

    - NAVTEQ announced the availability of Motorway Junction Objects, which
      enables navigation systems to display full 3D animation of complex
      junctions, in Australia with expansion planned to include the United
      States and Europe.

    - NAVTEQ announced a contract extension with MSN(R) Direct for NAVTEQ
      Traffic(TM), supporting Microsoft's Live Search Maps web-based service
      and as part of the MSN Direct connected services bundle.

    - NAVTEQ announced that it has signed an agreement with Samsung
      Electronics providing access to all countries in the NAVTEQ database as
      well as NAVTEQ's Visual Content, Speed Limits, Extended Lanes and
      NAVTEQ Discover Cities(TM).

    Nokia Siemens Networks

    - In June, Nokia Siemens Networks reached an agreement to acquire CDMA
      and LTE assets from Nortel in a USD 650 million transaction that
      remains subject to the approvals of the relevant bankruptcy courts in
      North America as well as customary closing conditions.

    - Nokia Siemens Networks strengthened its capital structure with the
      completion of a EUR 2 billion syndicated loan agreement with a group of
      21 international banks, in a transaction that was over-subscribed.
      Nokia Siemens Networks also concluded an agreement with the European
      Investment Bank for a EUR 250 million loan for the development of its
      multimode Radio Access network technology.

    - Nokia Siemens Networks was awarded a EUR 1.1 billion, five-year managed
      services deal by Oi, a major Brazilian operator and one of the largest
      in Latin America. By the terms of the contract Nokia Siemens Networks
      will be the sole provider of operations and maintenance for all of Oi's
      Internal Plant Operations across 17 Brazilian states.

    - Momentum in the services business continued with key services-led
      customer wins with Telenor in Pakistan, DIGI Telecommunications in
      Malaysia and a turnkey security solution for MTS in Russia that will
      ensure safe internet browsing on GSM and 3G networks.

    - Nokia Siemens Networks continued to facilitate its customers'
      development of mobile broadband internet with significant wins
      including a network modernization deal with M1 in Singapore, the
      development of an HSPA+ capable network for Elisa in Finland, the roll-
      out of Ireland's National Broadband Scheme using Wireless Broadband
      with 3 and a successful trial of HSPA+ in a live 3G network with Zain
      Saudi Arabia.

    - Time Warner Cable selected Nokia Siemens Networks to supply and build a
      fully integrated, 3GPP and PacketCable 2.0 compliant IMS (IP Multimedia
      Subsystem) network, which will be the basis for providing next
      Generation consumer applications that will combine existing voice,
      video and data services.

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

NOKIA IN THE SECOND QUARTER 2009

(The following discussion is of Nokia’s reported results. Comparisons are
given to the second quarter 2008 results, unless otherwise indicated.)

On July 10, 2008, Nokia completed the acquisition of NAVTEQ Corporation.
NAVTEQ is a separate reportable segment of Nokia starting from the third
quarter 2008. Accordingly, the results of NAVTEQ are not available for the
prior periods.

Nokia’s net sales decreased 25% to EUR 9 912 million (EUR 13 151
million). Net sales of Devices & Services decreased 28% to EUR 6 586 million
(EUR 9 090 million). Net sales of NAVTEQ were EUR 147 million. Net sales of
Nokia Siemens Networks decreased 21% to EUR 3 199 million (EUR 4 067 million).

Operating profit decreased 71% to EUR 427 million (EUR 1 474 million),
representing an operating margin of 4.3% (11.2%). Operating profit in Devices
& Services decreased 51% to EUR 763 million (EUR 1 565 million), representing
an operating margin of 11.6% (17.2%). Operating loss in NAVTEQ was EUR 100
million
, representing an operating margin of -68.0%. Operating loss in Nokia
Siemens Networks was EUR 188 million (loss of EUR 47 million), representing
an operating margin of -5.9% (-1.2%). Corporate Common Functions reported
expense totaled EUR 48 million (EUR 44 million).

In the second quarter 2009, net financial expense was EUR 61 million (net
financial income EUR 3 million). Profit before tax was EUR 380 million (EUR 1
477 million). Profit was EUR 287 million (EUR 1 083 million), based on a
profit of EUR 380 million (EUR 1 103 million) attributable to equity holders
of the parent and a negative EUR 93 million (negative EUR 20 million)
attributable to minority interests. Earnings per share decreased to EUR 0.10
(basic) and EUR 0.10 (diluted), compared with EUR 0.29 (basic) and EUR 0.29
(diluted) in the second quarter of 2008.

NOKIA IN JANUARY – JUNE 2009

(The following discussion is of Nokia’s reported results. Comparisons are
given to the January-June 2008 results, unless otherwise indicated.)

On July 10, 2008, Nokia completed the acquisition of NAVTEQ Corporation.
NAVTEQ is a separate reportable segment of Nokia starting from the third
quarter 2008. Accordingly, the results of NAVTEQ are not available for the
prior periods.

Nokia’s net sales decreased 26% to EUR 19 186 million (EUR 25 811
million). Net sales of Devices & Services decreased 30% to EUR 12 759 million
(EUR 18 353 million). Net sales of NAVTEQ were EUR 279 million. Net sales of
Nokia Siemens Networks decreased 17% to EUR 6 189 million (EUR 7 468 million).

Operating profit decreased 84% to EUR 482 million (EUR 3 005 million),
representing an operating margin of 2.5% (11.6%). Operating profit in Devices
& Services decreased 62% to EUR 1 310 million (EUR 3 448 million),
representing an operating margin of 10.3% (18.8%). Operating loss in NAVTEQ
was EUR 220 million, representing an operating margin of -78.9%. Operating
loss in Nokia Siemens Networks was EUR 549 million (loss of EUR 121 million),
representing an operating margin of -8.9% (-1.6%). Corporate Common Functions
reported expense totaled EUR 59 million (EUR 322 million).

In the period from January to June 2009, net financial expense was EUR
138 million
(net financial income EUR 71 million). Profit before tax was EUR
368 million
(EUR 3 084 million). Profit was EUR 291 million (EUR 2 283
million), based on a profit of EUR 502 million (EUR 2 325 million)
attributable to equity holders of the parent and a negative EUR 211 million
(negative EUR 42 million) attributable to minority interests. Earnings per
share decreased to EUR 0.14 (basic) and EUR 0.13 (diluted), compared with EUR
0.61
(basic) and EUR 0.61 (diluted) in January-June 2008.

PERSONNEL

The average number of employees during January-June 2009 was 123 274, of
which the average number of employees at Nokia Siemens Networks was 60 686.
At June 30, 2009, Nokia employed a total of 120 827 people (117 212 at June
30, 2008
), of which 60 983 were employed by Nokia Siemens Networks (60 039
people at June 30, 2008).

SHARES

The total number of Nokia shares at June 30, 2009 was 3 744 948 552. At
June 30, 2009, Nokia and its subsidiary companies owned 37 520 159 Nokia
shares, representing approximately 1.0% of the total number of Nokia shares
and the total voting rights.

The complete press release with tables is available at:

http://www.nokia.com/results/Nokia_results2009Q2e.pdf

FORWARD-LOOKING STATEMENTS

It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A) the
timing of product, services and solution deliveries; B) our ability to
develop, implement and commercialize new products, services, solutions and
technologies; C) our ability to develop and grow our consumer Internet
services business; D) expectations regarding market developments and
structural changes; E) expectations regarding our mobile device volumes,
market share, prices and margins; F) expectations and targets for our results
of operations; G) the outcome of pending and threatened litigation; H)
expectations regarding the successful completion of contemplated acquisitions
on a timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and I) statements preceded by “believe,”
“expect,” “anticipate,” “foresee,” “target,” “estimate,” “designed,” “plans,”
“will” or similar expressions are forward-looking statements. These
statements are based on management’s best assumptions and beliefs in light of
the information currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results that we
currently expect. Factors that could cause these differences include, but are
not limited to: 1) the deteriorating global economic conditions and related
financial crisis and their impact on us, our customers and end-users of our
products, services and solutions, our suppliers and collaborative partners;
2) the development of the mobile and fixed communications industry, as well
as the growth and profitability of the new market segments that we target and
our ability to successfully develop or acquire and market products, services
and solutions in those segments; 3) the intensity of competition in the
mobile and fixed communications industry and our ability to maintain or
improve our market position or respond successfully to changes in the
competitive landscape; 4) competitiveness of our product, services and
solutions portfolio; 5) our ability to successfully manage costs; 6) exchange
rate fluctuations, including, in particular, fluctuations between the euro,
which is our reporting currency, and the US dollar, the Japanese yen, the
Chinese yuan and the UK pound sterling, as well as certain other currencies;
7) the success, financial condition and performance of our suppliers,
collaboration partners and customers; 8) our ability to source sufficient
amounts of fully functional components, sub-assemblies, software and content
without interruption and at acceptable prices; 9) the impact of changes in
technology and our ability to develop or otherwise acquire and timely and
successfully commercialize complex technologies as required by the market;
10) the occurrence of any actual or even alleged defects or other quality,
safety or security issues in our products, services and solutions; 11) the
impact of changes in government policies, trade policies, laws or regulations
or political turmoil in countries where we do business; 12) our success in
collaboration arrangements with others relating to development of
technologies or new products, services and solutions; 13) our ability to
manage efficiently our manufacturing and logistics, as well as to ensure the
quality, safety, security and timely delivery of our products, services and
solutions; 14) inventory management risks resulting from shifts in market
demand; 15) our ability to protect the complex technologies, which we or
others develop or that we license, from claims that we have infringed third
parties’ intellectual property rights, as well as our unrestricted use on
commercially acceptable terms of certain technologies in our products,
services and solutions; 16) our ability to protect numerous Nokia, NAVTEQ and
Nokia Siemens Networks patented, standardized or proprietary technologies
from third-party infringement or actions to invalidate the intellectual
property rights of these technologies; 17) any disruption to information
technology systems and networks that our operations rely on; 18) developments
under large, multi-year contracts or in relation to major customers; 19) the
management of our customer financing exposure; 20) our ability to retain,
motivate, develop and recruit appropriately skilled employees; 21) whether,
as a result of investigations into alleged violations of law by some former
employees of Siemens AG (“Siemens”), government authorities or others take
further actions against Siemens and/or its employees that may involve and
affect the carrier-related assets and employees transferred by Siemens to
Nokia Siemens Networks, or there may be undetected additional violations that
may have occurred prior to the transfer, or violations that may have occurred
after the transfer, of such assets and employees that could result in
additional actions by government authorities; 22) any impairment of Nokia
Siemens Networks customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations transferred
to Nokia Siemens Networks; 23) unfavorable outcome of litigations; 24)
allegations of possible health risks from electromagnetic fields generated by
base stations and mobile devices and lawsuits related to them, regardless of
merit; as well as the risk factors specified on pages 11-28 of Nokia’s annual
report on Form 20-F for the year ended December 31, 2008 under Item 3D. “Risk
Factors.” Other unknown or unpredictable factors or underlying assumptions
subsequently proving to be incorrect could cause actual results to differ
materially from those in the forward-looking statements. Nokia does not
undertake any obligation to publicly update or revise forward-looking
statements, whether as a result of new information, future events or
otherwise, except to the extent legally required.

Nokia plans to publish its third quarter 2009 results on October 15, 2009.

http://www.nokia.com

SOURCE Nokia Corporation


Source: newswire