Nokia: FOURTH QUARTER 2009 HIGHLIGHTS

FOURTH QUARTER 2009 HIGHLIGHTS
Nokia net sales of EUR 12.0 billion, down 5% year on year and up 22% sequentially (down 4% and up 20% at constant currency).

Devices & Services net sales of EUR 8.2 billion, up 0.5% year on year and up 18% sequentially (up 2% and 16% at constant currency).

Services net sales of EUR 169 million, up 15% sequentially; billings of EUR 226 million, up 31% sequentially.

Estimated industry mobile device volumes of 329 million units, up 8% year on year and up 14% sequentially.

Nokia mobile device volumes of 126.9 million units, up 12% year on year and up 17% sequentially.

Nokia estimated mobile device market share of 39% in Q4 2009, up from an estimated 37% in Q4 2008 and 38% in Q3 2009. The full year 2009 estimated market share was 38%, down from 39% in 2008.

Nokia grew its converged device market share to an estimated 40%, from an estimated 35% in Q3 2009.

Nokia improved the ASP of its mobile devices to EUR 63, from EUR 62 in Q3 2009.

Devices & Services increased its gross margin to 34.3%, from 30.9% in Q3 2009.

NAVTEQ non-IFRS net sales of EUR 225 million, up 9% year on year and up 36% sequentially, and non-IFRS operating margin of 24.0%, down from 25.9% in Q3 2009.

Nokia Siemens Networks net sales of EUR 3.6 billion, down 16% year on year and up 31% sequentially (down 17% and up 29% at constant currency).

Nokia operating cash flow of EUR 1.5 billion, more than double the operating cash flow for Q3 2009.

Total cash and other liquid assets of EUR 8.9 billion at the end of Q4 2009.

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.

INDUSTRY AND NOKIA OUTLOOK

Nokia expects Devices & Services net sales to be between EUR 6.5 billion and EUR 7.0 billion in the first quarter 2010.

Nokia expects its non-IFRS operating margin in Devices & Services in the first quarter 2010 to be negatively impacted by seasonality and to be at the lower end of the range of its full year 2010 target, which continues to be 12% to 14%.

Nokia and Nokia Siemens Networks expect Nokia Siemens Networks’ net sales to be between EUR 2.6 billion and EUR 2.9 billion in the first quarter 2010.

Nokia and Nokia Siemens Networks expect the non-IFRS operating margin in Nokia Siemens Networks in the first quarter 2010 to be negatively impacted by seasonality and to be below the full year 2010 target, which continues to be breakeven to 2%.

Nokia continues to expect industry mobile device volumes to be up approximately 10% in 2010, compared to 2009.

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 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.

FOURTH QUARTER 2009 FINANCIAL HIGHLIGHTS

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

The non-IFRS results exclusions

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

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