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Recasting of Nokia quarterly and full year 2010 and first, second and third quarter 2011 results

     
Nokia Corporation
Stock exchange release
January 25, 2012 at 15:00 (CET +1)

Espoo, Finland - Nokia today provided historical results for its Devices & Services and Location & Commerce businesses, recasted for comparability purposes according to the new reporting format that became effective on October 1, 2011, as a result of the formation of the Location & Commerce business which combines NAVTEQ and Nokia's social location services operations from Devices & Services. The recast also reflects certain regroupings within Devices & Services to conform with the current reporting structure.

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

- Smart Devices (within Devices & Services)
- Mobile Phones (within Devices & Services)
- Location & Commerce
- Nokia Siemens Networks

The key financial performance measures provided for these segments include net sales, gross margin as well as an additional measure of profit. For Smart Devices and Mobile Phones, we present these segments' profit contribution, which consists of revenues less these segments' own costs as well as their directly assignable and allocated costs. For Location & Commerce and Nokia Siemens Networks, we present operating profit.

The most significant amounts transferred relate to operating expenses which were previously in Devices & Services Other - specifically, those relating to social location services operations - to Location & Commerce. In order to consistently reflect where the economic value of location services is created, the recast also impacted Cost of Sales by reportable segment. Amounts previously in Devices & Services Other Cost of Sales and Smart Devices Cost of Sales were transferred to Location & Commerce Cost of Sales. As a consequence of the higher value add performed in Location & Commerce, the recasted numbers also reflect a higher internal transfer price, which impacted Location & Commerce Net Sales positively and Smart Devices Cost of Sales negatively. The internal transfer price represents Net Sales to Location & Commerce and Cost of Sales to Smart Devices. Location & Commerce will be responsible for developing the services going forward whereas the services will continue to be delivered to customers and consumers by Devices & Services in combination with our devices. In order to consistently reflect deferral of services revenue over the service period, the recast also impacted Location & Commerce revenue and corporate Eliminations.

It should be noted that the information provided herein is historical and therefore does not indicate future performance.

FIRST QUARTER 2010, REPORTED, EUR million
(unaudited)
Smart
Device
s 1-
3/201
0
Mobile
Phone
s 1-3/201
0
Devices &
Services
other 1-
3/2010
Devices
& Service
s 1-
3/2010
Location
& Commer
ce 1-
3/2010
Nokia
Siemens
Networks
1-3/2010
Corpor
ate Commo
n 1-3/2010
Elimi
natin
ns 1-
3/2010
Nokia
Group
1-3/2010
Net sales 3,363 3,194 107 6,664 193 2,718 - -53 9,522
Cost of sales -2,243 -2,233 -55 -4,531 -30 -1,936 - 53 -6,444
Gross profit 1,120 961 52 2,133 163 782 - - 3,078
% of net
sales
33.3 30.1 48.6 32.0 84.5 28.8 32.3
Operating
expenses
-846 -341 -107 -1,294 -306 -1,015 -12 - -2,627
Other income
and expenses
28 - 9 37 1 7 -8 - 37
Contribution 302 620 -46
% of net
sales
9.0 19.4 -43.0
Operating
profit
876 -142 -226 -20 - 488
% of net
sales
13.1 -73.6 -8.3 5.1



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
Location
& Commerce 4-
6/2010
Nokia
Siemens
Networks
4-6/2010
Corporate
Common 4-
6/2010
Elimin
ations 4-
6/2010
Nokia
Group
4-6/2010
Net sales 3,503 3,190 105 6,798 208 3,039 - -42 10,003
Cost of
sales
-2,389 -2,304 -60 -4,753 -51 -2,170 - 42 -6,932
Gross
profit
1,114 886 45 2,045 157 869 - - 3,071
% of
net sales
31.8 27.8 42.9 30.1 75.5 28.6 30.7
Operati
ng expenses
-862 -374 -115 -1,351 -360 -1,034 -29 - -2,774
Other
income and expens
es
2 1 16 19 -3 -14 -4 - -2
Contrib
ution
254 513 -54
% of
net sales
7.3 16.1 -51.4
Operating
profit
713 -206 -179 -33 - 295
% of
net sales
10.5 -99.0 -5.9 2.9



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
Location
& Commerc
e 7-
9/2010
Nokia
Siemens
Networks
7-9/2010
Corporate
Common 7-
9/2010
Elimin
ations 7-
9/2010
Nokia
Group
7-
9/2010
Net
sales
3,612 3,364 197 7,173 203 2,943 - -49 10,270
Cost of
sales
-2,522 -2,506 -68 -5,096 -42 -2,241 1 49 -7,329
Gross
profit
1,090 858 129 2,077 161 702 1 - 2,941
% of net
sales
30.2 25.5 65.5 29.0 79.3 23.9 28.6
Operatin
g expenses
-785 -383 -105 -1,273 -329 -966 -19 - -2,587
Other
income and
expenses
5 3 57 65 1 -18 1 - 49
Contrib
ution
310 478 81
% of net
sales
8.6 14.2 41.1
Operati
ng profit
869 -167 -282 -17 - 403
% of net sales 12.1 -82.3 -9.6 3.9



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
Location &
Commerce 10-12/2010
Nokia
Siemens
Networks
10-12/2010
Corporate
Common 10-
12/2010
Elimin
ations 10-
12/2010
Nokia
Group
10-
12/2010
Net
sales
4,396 3,948 155 8,499 265 3,961 - -74 12,651
Cost
of sales
-3,133 -2,823 -76 -6,032 -46 -2,919 -1 74 -8,924
Gross
profit
1,263 1,125 79 2,467 219 1,042 -1 - 3,727
% of
net sales
28.7 28.5 51.0 29.0 82.6 26.3 29.5
Oper
ating expe
nses
-899 -410 -125 -1,434 -365 -1,022 -46 - -2,867
Other
income and
expenses 146 1 -98 49 -2 -19 4 -8 24
Contr
ibution
510 716 -144
% of
net sales
11.6 18.1 -92.9
Oper
ating profi
t
1,082 -148 1 -43 -8 884
% of
net sales
12.7 -55.8 0.0 7.0



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
Location
&
Commerce 1-
12/2010
Nokia
Siemens
Networks
1-
12/2010
Corporate
Common 1-
12/2010
Eliminatio
ns 1-12/2
010
Nokia
Group 1-
12/2010
Net
sales
14,874 13,696 564 29,134 869 12,661 - -218 42,446
Cost of
sales
-10,287 -9,866 -259 -20,412 -169 -9,266 - 218 -29,629
Gross
profit
4,587 3,830 305 8,722 700 3,395 - - 12,817
% of
net sales
30.8 28.0 54.1 29.9 80.6 26.8 30.2
Operating
expenses
-3,392 -1,508 -452 -5,352 -1,360 -4,037 -106 - -10,855
Other
income and expenses
181 5 -16 170 -3 -44 -7 -8 108
Contrib
ution
1,376 2,327 -163
% of
net sales
9.3 17.0 -28.9
Operating
profit
3,540 -663 -686 -113 -8 2,070
% of
net sales
12.2 -76.3 -5.4 4.9



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
Location
&
Commerce 1-3/2011
Nokia
Siemens
Networks
1-3/2011
Corporate
Common 1-
3/2011
Elim
inations 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
-2,508 -2,456 -84 -5,048 -44 -2,324 - 91 -7,325
Gross
profit
1,020 951 68 2,039 188 847 - - 3,074
% of net
sales
28.9 27.9 44.7 28.8 81.0 26.7 29.6
Operating
expenses
-834 -387 -104 -1,325 -321 -990 -22 - -2,658
Other
income and expense
s
- -2 17 15 1 1 6 - 23
Contrib
ution
186 562 -19
% of net
sales
5.3 16.5 -12.5
Operati
ng profit
729 -132 -142 -16 - 439
% of net
sales
10.3 -56.9 -4.5 4.2



SECOND QUARTER 2011, REPORTED, EUR million
(unaudited)
Smart
Device
s 4-
6/2011
Mobile
Phones
4-6/2011
Devices &
Services
other 4-
6/2011
Devices
& Services
4-
6/2011
Location
& Commerc
e 4-6/2011
Nokia
Siemens
Networks
4-6/2011
Corporat
e Common
 4-6/2011
Elimin
ations  4-
6/2011
Nokia
Group 4-
6/2011
Net
sales
2,351 2,568 548 5,467 271 3,642 - -105 9,275
Cost of
sales
-1,811 -1,933 -56 -3,800 -50 -2,698 - 105 -6,443
Gross
profit
540 635 492 1,667 221 944 - - 2,832
% of net
sales
23.0 24.7 89.8 30.5 81.5 25.9 30.5
Operating
expenses
-752 -420 -95 -1,267 -325 -1,056 -51 - -2,699
Other
income
and expense
s
-4 -1 -611 -616 - 1 -5 - -620
Contribution -216 214 -214
% of net
sales
-9.2 8.3 -39.1
Operating
profit
-216 -104 -111 -56 - -487
% of net sales -4.0 -38.4 -3.0 -5.3



THIRD QUARTER 2011, REPORTED, EUR million
(unaudited)
Smart
Device
s 7-9/2011
Mobile
Phones
7-
9/2011
Devices &
Services
other 7-
9/2011
Devices
& Services
7-
9/2011
Location
& Commerc
e 7-
9/2011
Nokia
Siemens
Networks
7-9/2011
Corporate
Common 7-
9/2011
Elimin
ations 7-
9/2011
Nokia
Group
7-
9/2011
Net
sales
2,194 2,915 283 5,392 282 3,413 - -107 8,980
Cost of
sales
-1,739 -2,226 -43 -4,008 -52 -2,518 - 107 -6,471
Gross
profit
455 689 240 1,384 230 895 - - 2,509
% of net
sales
20.7 23.6 84.8 25.7 81.6 26.2 27.9
Operatin
g expense
s
-656 -404 -67 -1,127 -314 -1,035 -37 -2,513
Other
income and expenses
11 10 -110 -89 -1 26 -3 -67
Contrib
ution
-190 295 63
% of net
sales
-8.7 10.1 22.3
Operatin
g profit
168 -85 -114 -40 - -71
% of net
sales
3.1 -30.1 -3.3 -0.8

About Nokia
Nokia is a global leader in mobile communications whose products have become an integral part of the lives of people around the world. Every day, more than 1.3 billion people use their Nokia to capture and share experiences, access information, find their way or simply to speak to one another. Nokia's technological and design innovations have made its brand one of the most recognized in the world. For more information, visit http://www.nokia.com/about-nokia

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