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Nokia Q1 2010 Net Sales EUR 9.5 Billion, non-IFRS EPS EUR 0.14 (Reported EPS EUR 0.09)

April 22, 2010

ESPOO, Finland, April 22, 2010 /PRNewswire-FirstCall/ — Nokia
Corporation (NYSE: NOK), Interim Report, April 22, 2010 at 13.00 (CET +1)

The complete press release with tables is available at:
http://www.nokia.com/results/Nokia_results2010Q1e.pdf

                           Non-IFRS first quarter 2010 results 1
                                             YoY                    QoQ
    EUR million            Q1/2010 Q1/2009   Change     Q4/2009    Change
    Net sales              9 522   9 276       3%        11 988     -21%
    Devices & Services     6 663   6 173       8%         8 179     -19%
    NAVTEQ                   189     134      41%           225     -16%
    Nokia Siemens Networks 2 718   2 990      -9%         3 625     -25%

    Operating profit         820     514      60%         1 473     -44%
    Devices & Services       804     642      25%          1257     -36%
    NAVTEQ                    41      5      720%            54     -24%
    Nokia Siemens Networks    15    -122                    201     -93%

    Operating margin         8.6%    5.5%                  12.3%
    Devices & Services      12.1%   10.4%                  15.4%
    NAVTEQ                  21.7%    3.7%                  24.0%
    Nokia Siemens Networks   0.6%   -4.1%                   5.5%

    EPS, EUR Diluted        0.14    0.10      40%          0.25     -44%

                           Reported first quarter 2010 results
    EUR million            Q1/2010      Q1/2009    YoY   Q4/2009     QoQ
                                                 Change            Change
    Net sales              9 522        9 274       3%    11 988     -21%
    Devices & Services     6 663        6 173       8%     8 179     -19%
    NAVTEQ                   189          132      43%       225     -16%
    Nokia Siemens Networks 2 718        2 990      -9%     3 625     -25%

    Operating profit         488           55     787%     1 141     -57%
    Devices & Services       831          547      52%     1 219     -32%
    NAVTEQ                   -77         -120                -56
    Nokia Siemens Networks  -226         -361                 17

    Operating margin         5.1%         0.6%               9.5%
    Devices & Services      12.5%         8.9%              14.9%
    NAVTEQ                 -40.7%       -90.9%             -24.9%
    Nokia Siemens Networks  -8.3%       -12.1%               0.5%

    EPS, EUR Diluted        0.09         0.03     200%      0.26     -65%

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
this press release on pages 2-3, 12-14 and 16.

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 Q1 2010 and Q1 2009 can be found
in the tables on pages 10 and 12-16 of this press release. A reconciliation
of our Q4 2009 non-IFRS results can be found on pages 10 and 12-16 of our Q4
2009 Interim Report of January 28, 2010.

    FIRST QUARTER 2010 HIGHLIGHTS

    - Nokia net sales of EUR 9.5 billion, up 3% year-on-year and down 21%
    sequentially (up 1% and down 21% at constant currency).

    - Devices & Services net sales of EUR 6.7 billion, up 8% year-on-year and
    down 19% sequentially (up 7% and down 19% at constant currency).

    - Services net sales of EUR 148 million, down 12% sequentially; billings
    of EUR 228 million, up 1% sequentially.

    - Nokia total mobile device volumes of 107.8 million units, up 16%
    year-on-year and down 15% sequentially.

    - Nokia converged mobile device (smartphone and mobile computer) volumes
    of 21.5 million units, up 57% year-on-year and up 3% sequentially.

    - Nokia mobile device ASP (including services revenue) of EUR 62, down
    from EUR 64 in Q4 2009.

    - Devices & Services gross margin of 32.4%, down from 33.8% in Q1 2009
    and 34.3% in Q4 2009.

    - Devices & Services non-IFRS operating margin of 12.1%, up from 10.4% in
    Q1 2009 and down from 15.4% in Q4 2009.

    - NAVTEQ non-IFRS net sales of EUR 189 million, up 41% year-on-year and
    down 16% sequentially (up 46% and down 18% at constant currency).

    - Nokia Siemens Networks net sales of EUR 2.7 billion, down 9%
    year-on-year and down 25% sequentially (down 12% and 27% at constant
    currency).

    - Nokia Siemens Networks non-IFRS operating margin of 0.6%, up from -4.1%
    in Q1 2009 and down from 5.5% in Q4 2009.

    - Nokia operating cash flow of EUR 1.0 billion.

    - Total cash and other liquid assets of EUR 9.7 billion at the end of Q1
    2010.

    - Nokia taxes were unfavorably impacted by Nokia Siemens Networks taxes
    as no tax benefits are recognized for certain Nokia Siemens Networks
    deferred tax items. If Nokia's estimated long-term tax rate of 26% had
    been applied, non-IFRS Nokia EPS would have been approximately 1 Euro
    cent higher.

OLLI-PEKKA KALLASVUO, NOKIA CEO:

“In Q1, Nokia delivered both year-on-year net sales and operating profit
growth. We continue to face tough competition with respect to the high end of
our mobile device portfolio, as well as challenging market conditions on the
infrastructure side.

During the quarter, we also demonstrated our ability to deliver the Nokia
smartphone experience to consumers on a global scale, with our smartphone
shipments up by more than 50% year-on-year. The consumer response to the
inclusion of our walk and drive navigation offering on our smartphones has
been tremendous. Since launching in January, 10 million Nokia smartphone
users around the world have downloaded the offering.

In infrastructure, Nokia Siemens Networks’ profitability benefited from a
positive sales mix in Q1. I am also pleased to see encouraging results from
the company’s focus on helping operators meet the challenge of the rapid
growth in data and signaling traffic from smartphones.”

    INDUSTRY AND NOKIA OUTLOOK

    - Nokia expects Devices & Services net sales to be between EUR 6.7
    billion and EUR 7.2 billion in the second quarter 2010.

    - Nokia expects its non-IFRS operating margin in Devices & Services to be
    between 9% to 12% in the second quarter 2010.

    - Nokia and Nokia Siemens Networks expect Nokia Siemens Networks' net
    sales to be between EUR 3.1 billion and EUR 3.4 billion in the second
    quarter 2010.

    - Nokia and Nokia Siemens Networks expect the non-IFRS operating margin
    in Nokia Siemens Networks to be between 0% to 3% in the second quarter
    2010.

    - Nokia continues to expect industry mobile device volumes to be up
    approximately 10% in 2010, compared to 2009 (based on its revised
    definition of the industry mobile device market applicable beginning in
    2010).

    - Nokia continues to target its mobile device volume market share to be
    flat in 2010, compared to 2009.

    - Nokia continues to target to increase its mobile device value market
    share slightly in 2010, compared to 2009.

    - Nokia continues to target non-IFRS operating expenses in Devices &
    Services of approximately EUR 5.7 billion in 2010.

    - Nokia now targets Devices & Services non-IFRS operating margin of 11%
    to 13% in 2010. This is an update to Nokia's earlier Devices & Services
    non-IFRS operating margin target of 12% to 14% in 2010.

    - Nokia and Nokia Siemens Networks continue to expect a flat market in
    euro terms for the mobile and fixed infrastructure and related services
    market in 2010, compared to 2009.

    - Nokia and Nokia Siemens Networks continue to target Nokia Siemens
    Networks to grow faster than the market in 2010.

    - Nokia and Nokia Siemens Networks continue to target Nokia Siemens
    Networks to reduce its non-IFRS annualized operating expenses and
    production overheads by EUR 500 million by the end of 2011, compared to
    the end of 2009.

    - Nokia and Nokia Siemens Networks continue to target Nokia Siemens
    Networks non-IFRS operating margin of breakeven to 2% in 2010.

    FIRST QUARTER 2010 FINANCIAL HIGHLIGHTS

    (Comparisons are given to the first quarter 2009 results, unless
    otherwise indicated.)

    The non-IFRS results exclusions

    Q1 2010 - EUR 332 million (net) consisting of:

    - EUR 125 million restructuring charge and other one-time items in Nokia
    Siemens Networks.

    - EUR 29 million gain on sale of assets and a 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 118 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 - 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

    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.

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 first quarter 2010 net sales increased 3% to EUR 9.5
billion
, compared with EUR 9.3 billion in the first quarter 2009. At constant
currency, group net sales would have increased 1% year-on-year.

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.

    FIRST QUARTER 2010 NET SALES, REPORTED & CONSTANT CURRENCY1
                                                  YoY
                                                 Change     QoQ Change
    Group net sales - reported                     3%          -21%
    Group net sales - constant
    currency 1                                     1%          -21%

    Devices & Services net sales - reported        8%          -19%
    Devices & Services net sales - constant
    currency 1                                     7%          -19%

    NAVTEQ net sales - reported                   41%          -16%
    NAVTEQ net sales - constant currency 1        46%          -18%

    Nokia Siemens Networks net sales - reported   -9%          -25%
    Nokia Siemens Networks net sales - constant
    currency 1                                   -12%          -27%

    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 first quarter 2010 reported operating profit increased to EUR 488
million
, compared with EUR 55 million in the first quarter 2009. Nokia’s
first quarter 2010 non-IFRS operating profit increased 60% to EUR 820
million
, compared with EUR 514 million in the first quarter 2009. Nokia’s
first quarter 2010 reported operating margin was 5.1% (0.6%). Nokia’s first
quarter 2010 non-IFRS operating margin was 8.6% (5.5%).

Operating cash flow for the first quarter 2010 was EUR 1.0 billion. The
operating cash flow for the first quarter 2009 was EUR 0.3 billion. Total
cash and other liquid assets were EUR 9.7 billion at end of the first quarter
2010, compared with EUR 8.1 billion at the end of the first quarter 2009. At
the end of the first quarter 2010, Nokia’s net debt-equity ratio (gearing)
was -31%, compared with -14% at the end of the first quarter 2009.

Nokia is taking measures to mitigate the impact on its business of the
disruption to air traffic caused by the spread of ash following the volcanic
eruption in Iceland. Measures include adjusting our logistics operation to
help ensure component availability and product deliveries to customers.
Although the impact on our business is not quantifiable at this stage, it is
anticipated that, depending on how long they would need to be in place, the
use of alternative logistics arrangements may have an adverse impact on our
net sales and profitability going forward.

Devices & Services

Net Sales: First quarter 2010 Devices & Services net sales increased 8%
to EUR 6.7 billion, compared with EUR 6.2 billion in the first quarter 2009.
At constant currency, Devices & Services net sales would have increased 7%.
The net sales increase resulted primarily from higher volumes in most regions
driven by stronger demand, partially offset by an ASP decline, compared to
the first quarter 2009.

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
                                           YoY
    (EUR million)        Q1/2010  Q1/2009  Change   Q4/2009  QoQ Change
    Europe               2 186    2 136      2%       3 153    -31%
    Middle East & Africa 1 005      774     30%       1 148    -12%
    Greater China        1 458    1 249     17%       1 243     17%
    Asia-Pacific         1 363    1 409     -3%       1 783    -24%
    North America          219      301    -27%         257    -15%
    Latin America          432      304     42%         595    -27%
    Total                6 663    6 173      8%       8 179    -19%

Of our total Devices & Services net sales, services contributed EUR 148
million
in the first quarter 2010, compared with EUR 169 million in the
fourth quarter 2009. Services billings in the first quarter 2010 were EUR 228
million
, compared with EUR 226 million in the fourth quarter 2009. Due to the
divestment of the security appliance business in April 2009, services net
sales of EUR 150 million and billings of EUR 166 million in the first quarter
2009 are not directly comparable to services net sales and billings in the
first quarter 2010.

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.

    DEVICES & SERVICES NET SALES BY CATEGORY

    (EUR million)            Q1/2010   Q1/2009 3  YoY Change 3  Q4/2009  QoQ
                                                                       Change
    Mobile phones 1           3 325      3 529      -6%          4 294   -23%
    Converged mobile
    devices 2                 3 338      2 602      28%          3 885   -14%
    Total                     6 663      6 131       9%          8 179   -19%

    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.
    Note 3: Does not include the net sales of the security appliance
    business that was divested in April 2009.

Volume and Market Share: In the first quarter 2010, the total mobile
device volumes of Devices & Services were 107.8 million units, representing
an increase of 16% year-on-year and a decrease of 15% sequentially. The
overall industry mobile device volumes for the same period were 323 million
units based on Nokia’s preliminary estimate, representing an increase of 11%
year-on-year and a decrease of 10% sequentially. Nokia’s preliminary
estimated mobile device market share was 33% in the first quarter 2010, up
from an estimated 32% in the first quarter 2009 and down from an estimated
35% in the fourth quarter 2009. As previously announced, beginning in 2010 we
revised our definition of the industry mobile device market that we use to
estimate industry volumes. This is due to improved measurement processes and
tools that enable us to have better visibility to estimate the number of
mobile devices sold by certain new entrants in the global mobile device
market. We are applying the revised definition and improved measurement
processes and tools beginning in 2010, and retrospectively to 2009 for
comparative purposes only.

Of the total industry mobile device volumes, converged mobile device
industry volumes in the first quarter 2010 increased to 52.6 million units,
based on Nokia’s preliminary estimate, compared with an estimated 36.0
million units in the first quarter 2009 and 52.4 million units in the fourth
quarter 2009. Our own converged mobile device volumes, comprising our
smartphones and mobile computers, were 21.5 million units in the first
quarter 2010, an increase of 57% compared with 13.7 million units in the
first quarter 2009 and 3% compared with 20.8 million units in the fourth
quarter 2009. Nokia’s preliminary estimated share of the converged mobile
device market was 41% in the first quarter 2010, up from an estimated 38% in
the first quarter 2009 and an estimated 40% in the fourth 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.

    DEVICES & SERVICES MOBILE DEVICE VOLUME BY GEOGRAPHIC AREA
    (million units)      Q1/2010    Q1/2009    YoY Change Q4/2009  QoQ Change
    Europe               23.9       22.3        7%        34.3       -30%
    Middle East & Africa 22.2       14.8       50%        24.3        -9%
    Greater China        21.1       17.9       18%        17.6        20%
    Asia-Pacific         29.2       28.2        4%        34.5       -15%
    North America         2.7        3.4      -21%         3.8       -29%
    Latin America         8.7        6.6       32%        12.4       -30%
    Total               107.8       93.2       16%       126.9       -15%

Nokia’s 16% year-on-year increase in global mobile device volumes was
primarily driven by an improved demand environment as economic conditions
continued to improve in most regions, compared with the difficult economic
conditions of the first quarter 2009. This improvement was offset to some
extent by lower demand for our mobile devices in some countries in
Asia-Pacific and North America. On a sequential basis, Nokia’s 15% decline in
global mobile device volumes primarily reflected typical seasonal demand
weakness in virtually all regions, offset to some extent by strong demand in
China during the New Year festive season in the first quarter 2010. Demand
was strong for our converged mobile devices in the first quarter 2010.
However, competitive pressures in the ultra-low to mid-range product price
bands, particularly in certain Asian countries, adversely affected our mobile
device volumes in the first quarter 2010.

Average Selling Price. Our mobile device average selling price (ASP) in
the first quarter 2010 was EUR 62, down from EUR 66 in the first quarter 2009
and from EUR 64 in the fourth quarter 2009. The lower year-on-year ASP was
primarily due to general price erosion across our mobile device portfolio,
offset to some extent by a positive mix shift from sales of mobile phones
towards sales of converged mobile devices. On a sequential basis, our lower
ASP was primarily driven by price pressure, particularly in certain high-end
smartphones, offset to some extent by a positive mix shift from sales of
mobile phones towards sales of converged mobile devices. The year-on-year and
sequential declines in our converged mobile devices ASP’s were mainly driven
by an increase in the proportion of such devices sold at lower price points
consistent with our strategy to reach wider groups of consumers and price
pressure in certain high-end smartphones in the first quarter 2010. As
previously announced, beginning in the first quarter 2010 our total ASP
includes services net sales given the increasing contribution of the services
we sell in combination with our devices.

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)                     Q1/2010  Q1/2009  YoY Change  Q4/2009     QoQ
                                                                      Change
    Mobile phones 1              39       44      -13%        40        -5%
    Converged mobile devices 2  155      190      -18%       186       -17%
    Total                        62       66       -7%        64        -4%

    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.

Profitability: Devices & Services gross profit (reported and non-IFRS)
increased 3% to EUR 2.2 billion, compared with EUR 2.1 billion in the first
quarter 2009, with a gross margin (reported and non-IFRS) of 32.4% (33.8%).
Devices & Services gross margin (reported and non-IFRS) was 34.3% in the
fourth quarter 2009. Overall, both the year-on-year and sequential gross
margin declines were primarily due to our product material costs declining at
a lower rate than the price erosion of our devices, especially in the high
end of our mobile device portfolio during the first quarter 2010. The
year-on-year gross margin decline was offset to some extent by a positive mix
shift towards sales of higher-margin converged mobile devices in the first
quarter 2010. The first quarter 2009 gross margin also benefited from more
positive foreign exchange hedging than did the gross margin in the first
quarter 2010. Sequentially, the appreciation of the Japanese Yen versus the
Euro, lower royalty income and higher production overhead costs relative to
lower volumes in the first quarter 2010 also contributed to the gross margin
decline. Foreign exchange hedging had a positive one-quarter impact on the
gross margin in the first quarter 2010, compared to an immaterial impact on
the gross margin in the fourth quarter 2009.

Devices & Services reported operating profit increased 52% to EUR 831
million
, compared with EUR 547 million in the first quarter 2009, with a
reported operating margin of 12.5% (8.9%). Devices & Services non-IFRS
operating profit increased 25% to EUR 804 million, compared with EUR 642
million
in the first quarter 2009, with a non-IFRS operating margin of 12.1%
(10.4%). The 25% year-on-year increase in non-IFRS operating profit for the
first quarter 2010 was driven primarily by higher net sales as well as lower
operating and other expenses.

Nokia is planning to deliver a family of smartphones based on the
Symbian^3 software platform that is targeted to offer a clearly improved user
experience, a high standard of quality, and competitive value to consumers.
We plan to launch the first smartphone based on Symbian^3 during the second
quarter 2010, with shipments expected during the third quarter 2010.

NAVTEQ

Net Sales. First quarter 2010 NAVTEQ reported net sales increased 43%
year-on-year to EUR 189 million, compared with EUR 132 million in the first
quarter 2009, benefiting from growth in mobile device sales, particularly
Nokia mobile devices, and improved conditions in the automotive industry.

Profitability. In the first quarter 2010, NAVTEQ’s reported gross profit
increased to EUR 160 million, compared with EUR 115 million in the first
quarter 2009, with a gross margin of 84.7% (87.1%). Non-IFRS gross profit was
EUR 160 million (EUR 117 million), with a non-IFRS gross margin of 84.7%
(87.3%). In the first quarter 2010, NAVTEQ’s reported operating loss
decreased to EUR 77 million, compared with a EUR 120 million loss in the
first quarter 2009. The reported operating margin was -40.7% (-90.9%).
NAVTEQ’s non-IFRS operating profit was EUR 41 million (EUR 5 million), with a
non-IFRS operating margin of 21.7% (3.7%) in the first quarter 2010.

Nokia Siemens Networks

Net Sales. First quarter 2010 net sales decreased 9% to EUR 2.7 billion,
compared with EUR 3.0 billion in the first quarter 2009, reflecting
challenging competitive factors and market conditions. At constant currency,
Nokia Siemens Networks net sales would have decreased 12%. Of total Nokia
Siemens Networks net sales, services contributed EUR 1.3 billion in the first
quarter 2010.

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)        Q1/2010   Q1/2009    YoY Change  Q4/2009 QoQ Change
    Europe               1 065       1 097        -3%      1 327     -20%
    Middle East & Africa   297         436       -32%        371     -20%
    Greater China          275         284        -3%        425     -35%
    Asia-Pacific           632         692        -9%        818     -23%
    North America          153         169        -9%        244     -37%
    Latin America          296         312        -5%        440     -33%
    Total                2 718       2 990        -9%      3 625     -25%

Profitability. Nokia Siemens Networks reported gross profit increased 11%
to EUR 782 million, compared with EUR 703 million in the first quarter 2009,
with a gross margin of 28.8% (23.5%). Nokia Siemens Networks non-IFRS gross
profit increased 12% to EUR 853 million, compared with EUR 764 million in the
first quarter 2009, with a non-IFRS gross margin of 31.4% (25.6%). The higher
year-on-year non-IFRS gross profit in the first quarter 2010 was due
primarily to continued progress on product cost reductions as well as an
increased proportion of sales of higher margin offerings during the quarter,
offset to some extent by lower net sales, compared to the first quarter 2009.

Nokia Siemens Networks first quarter 2010 reported operating loss was EUR
226 million
, compared with a reported operating loss of EUR 361 million in
the first quarter 2009, with a reported operating margin of -8.3% (-12.1%).
Nokia Siemens Networks non-IFRS operating profit was EUR 15 million in the
first quarter 2010, compared with a non-IFRS operating loss of EUR 122
million
in the first quarter 2009, with a non-IFRS operating margin of 0.6%
(-4.1%). The year-on-year improvement in Nokia Siemens Networks non-IFRS
operating result primarily reflected improved gross profitability as well as
lower operating expenses.

Q1 2010 OPERATING HIGHLIGHTS

Devices & Services

– Nokia continued to make progress in the development of its key services:

Location: Nokia introduced a new and improved version of Ovi Maps,
available for download at www.nokia.com/maps. At the same time, Nokia
modified its business model by including world-wide walk and drive navigation
with the new Ovi Maps at no extra cost with compatible Nokia smartphones.
Since launching in January, the new Ovi Maps has been downloaded by 10
million Nokia smartphone users. Going forward, the offering will be
pre-installed on Nokia’s smartphones.

Music: Nokia continued to grow its footprint in digital music, expanding
its chain of digital music stores to cover 34 markets, including several
markets in the Middle East. Nokia also increased to 28 the number of markets
in which Comes With Music, its ‘all you can eat’ music offering, is
available. Since the end of the quarter, Nokia has also launched a Digital
Rights Management-free Comes With Music service in China, and announced the
upcoming availability of Ovi Music Unlimited in India. Following the launch
in India, Nokia will have introduced Comes With Music in each of the BRIC
markets.

Store: Nokia continued to grow and enhance the useability of Ovi Store.
Nokia’s most popular smartphones each have access to more than 9 500 content
items (including applications) in the store, while operator support continues
to increase with mobile billing now available through over 60 operators in 19
countries. The vast majority of Ovi Store users can access the store in their
own language and pay for content in their local currency. Currently, the
store is attracting more than 1.5 million downloads a day, with the average
active user downloading more than 8 applications or items of content a month.

Messaging: Nokia Messaging continued to grow, with more than three
million accounts now created.

Emerging markets: Subscriptions to Nokia Life Tools, a service giving
access to agricultural information and education and entertainment services
without requiring use of GPRS or web connectivity, reached more than one
million. The service is currently available in India and Indonesia. After
introducing Nokia Money in 2009, Nokia in February 2010 launched a commercial
pilot of the service in Pune, one of the largest metropolitan areas in India,
in partnership with YES BANK. Through the service, people can transfer money
to other people just by using their mobile phone numbers, pay utility bills
as well as recharge their prepaid SIM cards (SIM top-up). – Nokia announced
the Nokia C5, a smartphone optimized for social networking and sharing. The
compact device includes access to Nokia’s range of mobile services, such as
free navigation, in one affordable package, with an estimated retail price of
EUR 135, before taxes and subsidies.

    - Nokia commenced shipments of the Nokia X6 16GB, a powerful, touch
    entertainment smartphone.

    - Nokia commenced shipments of the Nokia 2690, an entry device giving
    access to Ovi Mail and featuring an FM radio and VGA camera.

    - Nokia and T-Mobile USA commenced shipments of the Nokia 5230 Nuron
    smartphone, which features turn by turn navigation at no extra cost and
    is the first Nokia device with a United States operator preloaded with
    Ovi Store.

    - Nokia and Intel began to merge their Maemo and Moblin software
    platforms to form a single Linux-based and fully open source platform,
    MeeGo, for a wide range of computing devices, including pocketable mobile
    computers, netbooks, tablets, mediaphones, connected TVs and in-vehicle
    infotainment systems. By creating MeeGo, Nokia and Intel plan to
    accelerate industry innovation and reduce time-to-market for a range of
    new Internet-based applications and services and exciting user
    experiences.

    - Nokia announced the acquisition of Novarra, whose mobile browser and
    services platform will be used by Nokia to deliver enhanced Internet
    experiences on Nokia's mobile phones based on the Series 40 software
    platform. The acquisition was completed in April 2010.

    NAVTEQ

    - NAVTEQ launched its new advanced mapping collection technology, NAVTEQ
    True, further innovating the scale and quality of data collection and
    processing.

    - NAVTEQ announced the availability of real-time traffic in the United
    Kingdom, bringing to 13 the number of European countries in which
    uninterrupted traffic data are available.

    - NAVTEQ launched Intermediate Maps of Nigeria and Kenya, expanding map
    coverage in Africa by more than 200 000 kilometers and more than 23 000
    Points of Interest.

    - NAVTEQ launched Enhanced 3D City Models in Europe, providing
    intelligent visual texturing to simplify navigation.

    - NAVTEQ announced that Nobex Technologies selected NAVTEQ Location Point
    Advertising, making location-aware advertising inventory available on
    Nobex Radio Companion.

    - NAVTEQ announced that the National Geospatial Intelligence Agency
    selected NAVTEQ map data to support the Homeland Security Infrastructure
    Program.

    - NAVTEQ announced the signing of Golden Tulip Hospitality Group as a
    Direct Access customer for their 230 properties worldwide.

    - NAVTEQ announced the development of Fiat Group Automobiles' first
    online Map Update Store.

Nokia Siemens Networks

Under a five-year managed services contract with NII Holdings, Nokia
Siemens Networks will plan, design, build, manage, and optimize their network
in Argentina, Chile, Brazil, Mexico and Peru. The contract covers the
existing iDEN networks and the upcoming 3G networks of the operator.

Nokia Siemens Networks continued to win major contracts in key emerging
markets including India with a USD 700 million network expansion deal with
Bharti Airtel and a EUR 300 million GSM roll out and Managed Services
contract with Aircel; and in China with a 3G Radio and Core Network deal with
Beijing Mobile that supports future migration to TD-LTE.

Nokia Siemens Networks maintained momentum in LTE with a new contract
with TeliaSonera; Nokia Siemens Networks also made the Middle East’s first
LTE call with Zain Bahrain and completed a 100 Mbps data call on an LTE trial
network with M1 in Singapore. – Nokia Siemens Networks was selected by the
Iliad Group’s Free Mobile business for the supply of radio, core and
applications for the 4th license 3G mobile network in France. Nokia Siemens
Networks won a contract to upgrade Telefonica’s 3G network in Spain to HSPA+
paving the way for enhanced mobile broadband services with download speeds up
to 42 Mbps. – Nokia Siemens Networks’ core mobile network technology, which
addresses the signaling and capacity challenges of growing smartphone data
usage, earned the company contracts with operators including Swisscom and
SFR. In response to the increasing demand for converged devices, Nokia
Siemens Networks established Smart Labs in Finland and the United States with
the aim of enhancing the everyday experience of users of converged devices. -
Operators continued to leverage Nokia Siemens Networks’ subscriber-centric
solutions to provide flexible and personalized services to its customers.
Deals were signed with Tunisiana and Vodacom Tanzania for flexible and
convergent payment services and Smart Communications in the Philippines for
unified charging and billing solution which will allow it to bring services
to market faster.

In North America, Nokia Siemens Networks announced five contracts for its
40 Gbps optical solution, with XO Communications, Columbus Networks, Insight
Communications, NewWave Communications and Fidelity Communications. In
addition, the Optical Transport Network (OTN) Switch was launched in the
quarter, a key new product for the optical portfolio.

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 FIRST QUARTER 2010

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

Nokia’s net sales increased 3% to EUR 9 522 million (EUR 9 274 million).
Net sales of Devices & Services increased 8% to EUR 6 663 million (EUR 6 173
million). Net sales of NAVTEQ increased 43% to EUR 189 million (EUR 132
million
). Net sales of Nokia Siemens Networks decreased 9% to EUR 2 718
million (EUR 2 990 million).

Operating profit increased 787% to EUR 488 million (EUR 55 million),
representing an operating margin of 5.1% (0.6%). Operating profit in Devices
& Services increased 52% to EUR 831 million (EUR 547 million), representing
an operating margin of 12.5% (8.9%). Operating loss in NAVTEQ was EUR 77
million
(operating loss EUR 120 million), representing an operating margin of
-40.7% (-90.9%). Operating loss in Nokia Siemens Networks was EUR 226 million
(operating loss EUR 361 million), representing an operating margin of -8.3%
(-12.1%). Group Common Functions reported expense totaled EUR 20 million (EUR
11 million
).

In the period from January to March 2010, net financial expense was EUR
73 million
(EUR 77 million). Profit before tax was EUR 411 million (loss EUR
12 million
). Profit was EUR 175 million (EUR 4 million), based on a profit of
EUR 349 million (EUR 122 million) attributable to equity holders of the
parent and a loss of EUR 174 million (loss of EUR 118 million) attributable
to non-controlling interests. Earnings per share increased to EUR 0.09
(basic) and to EUR 0.09 (diluted), compared with EUR 0.03 (basic) and EUR
0.03
(diluted) in the first quarter of 2009.

PERSONNEL

The average number of employees during the period from January to March
2010
was 125 155, of which the average number of employees at Nokia Siemens
Networks was 64 281. At March 31, 2010, Nokia employed a total of 125 859
people (124 292 people at March 31, 2009), of which 64 319 were employed by
Nokia Siemens Networks (60 546 people at March 31, 2009).

SHARES

The total number of Nokia shares at March 31, 2010 was 3 744 956 052. At
March 31, 2010, Nokia and its subsidiary companies owned 36 156 362 Nokia
shares, representing approximately 1.0 % of the total number of Nokia shares
and the total voting rights.

1 EUR = 1.351 USD

The unaudited, consolidated interim financial statements of Nokia have
been prepared in accordance with the International Financial Reporting
Standards (“IFRS”). The same accounting policies and methods of computation
are followed in the interim financial statements as were followed in the
consolidated financial statements of Nokia for 2009.

The complete press release with tables is available at:
http://www.nokia.com/results/Nokia_results2010Q1e.pdf

FORWARD-LOOKING STATEMENTS

It should be noted that certain statements herein which are not
historical facts are forward-looking statements, including, without
limitation, those regarding: A) the timing of the deliveries of our products
and services and their combinations; B) our ability to develop, implement and
commercialize new technologies, products and services and their combinations;
C) expectations regarding market developments and structural changes; D)
expectations and targets regarding our industry volumes, market share,
prices, net sales and margins of products and services and their
combinations; E) expectations and targets regarding our operational
priorities and results of operations; F) the outcome of pending and
threatened litigation; G) expectations regarding the successful completion of
acquisitions or restructurings on a timely basis and our ability to achieve
the financial and operational targets set in connection with any such
acquisition or restructuring; and H) statements preceded by “believe,”
“expect,” “anticipate,” “foresee,” “target,” “estimate,” “designed,” “plans,”
“will” or similar expressions. 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
competitiveness and quality of our portfolio of products and services and
their combinations; 2) our ability to timely and successfully develop or
otherwise acquire the appropriate technologies and commercialize them as new
advanced products and services and their combinations, including our ability
to attract application developers and content providers to develop
applications and provide content for use in our devices; 3) our ability to
effectively, timely and profitably adapt our business and operations to the
requirements of the converged mobile device market and the services market;
4) the intensity of competition in the various markets where we do business
and our ability to maintain or improve our market position or respond
successfully to changes in the competitive environment; 5) the occurrence of
any actual or even alleged defects or other quality, safety or security
issues in our products and services and their combinations; 6) the
development of the mobile and fixed communications industry and general
economic conditions globally and regionally; 7) our ability to successfully
manage costs; 8) exchange rate fluctuations, including, in particular,
fluctuations between the euro, which is our reporting currency, and the US
dollar, the Japanese yen and the Chinese yuan, as well as certain other
currencies; 9) the success, financial condition and performance of our
suppliers, collaboration partners and customers; 10) our ability to source
sufficient amounts of fully functional components, sub-assemblies, software,
applications and content without interruption and at acceptable prices and
quality; 11) our success in collaboration arrangements with third parties
relating to the development of new technologies, products and services,
including applications and content; 12) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality, safety,
security and timely delivery of our products and services and their
combinations; 13) our ability to manage our inventory and timely adapt our
supply to meet changing demands for our products; 14) 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 and services and their combinations; 15) 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; 16) the impact of changes in government policies, trade
policies, laws or regulations and economic or political turmoil in countries
where our assets are located and we do business; 17) any disruption to
information technology systems and networks that our operations rely on; 18)
our ability to retain, motivate, develop and recruit appropriately skilled
employees; 19) unfavorable outcome of litigations; 20) allegations of
possible health risks from electromagnetic fields generated by base stations
and mobile devices and lawsuits related to them, regardless of merit; 21) our
ability to achieve targeted costs reductions and increase profitability in
Nokia Siemens Networks and to effectively and timely execute related
restructuring measures; 22) developments under large, multi-year contracts or
in relation to major customers in the networks infrastructure and related
services business; 23) the management of our customer financing exposure,
particularly in the networks infrastructure and related services business;
24) whether ongoing or any additional governmental investigations into
alleged violations of law by some former employees of Siemens AG (“Siemens”)
may involve and affect the carrier-related assets and employees transferred
by Siemens to Nokia Siemens Networks; 25) any impairment of Nokia Siemens
Networks customer relationships resulting from ongoing or any additional
governmental investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; as well as the risk factors specified
on pages 11-32 of Nokia’s annual report Form 20-F for the year ended December
31, 2009
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 second quarter 2010 results on July 22, 2010.

Nokia’s Annual General Meeting will be held on May 6, 2010.

http://www.nokia.com

SOURCE Nokia Corporation


Source: newswire



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