Nokia Q4 2009 net sales EUR 12.0 billion, non-IFRS EPS EUR 0.25 (reported EPS EUR 0.26)
Nokia 2009 net sales EUR 41.0 billion, non-IFRS EPS EUR 0.66 (reported EPS EUR 0.24)
Nokia Board of Directors will propose a dividend of EUR 0.40 per share for 2009 (EUR 0.40 per share for 2008).
Non-IFRS fourth quarter 2009 results1 EUR million Q4/2009 Q4/2008 YoY Change Q3/2009 QoQ Change
Net sales 11 988 12 665 -5.3% 9 810 22.2%
Devices &
Services 8 179 8 141 0.5% 6 915 18.3%
NAVTEQ 225 206 9.2% 166 35.5%
Nokia Siemens
Networks 3 625 4 340 -16.5% 2 760 31.3%
Operating profit 1 473 1 239 18.9% 741 98.8%
Devices &
Services 1257 983 27.9% 787 59.7%
NAVTEQ 54 53 1.9% 43 25.6%
Nokia Siemens
Networks 201 225 -10.7% -53
Operating margin 12.3% 9.8% 7.6%
Devices &
Services 15.4% 12.1% 11.4%
NAVTEQ 24.0% 25.7% 25.9%
Nokia Siemens
Networks 5.5% 5.2% -1.9%
EPS, EUR Diluted 0.25 0.26 -3.8% 0.17 47.1%

Non-IFRS full year 2009 results 1, 2 2009 2008 YoY Change
Net sales 40 987 50 722 -19.2%
Devices & Services 27 853 35 099 -20.6%
NAVTEQ 673 363
Nokia Siemens Networks 12 574 15 319 -17.9%
Operating profit 3 503 7 033 -50.2%
Devices & Services 3 488 6 373 -45.3%
NAVTEQ 121 82
Nokia Siemens Networks 28 757 -96.3%
Operating margin 8.5% 13.9%
Devices & Services 12.5% 18.2%
NAVTEQ 18.0% 22.6%
Nokia Siemens Networks 0.2% 4.9%
EPS, EUR Diluted 0.66 1.34 -50.7%


Reported fourth quarter 2009 results EUR million Q4/2009 Q4/2008 YoY Change Q3/2009 QoQ Change
Net sales 11 988 12 662 -5.3% 9 810 22.2%
Devices &
Services 8 179 8 141 0.5% 6 915 18.3%
NAVTEQ 225 205 9.8% 166 35.5%
Nokia Siemens
Networks 3 625 4 338 -16.4% 2 760 31.3%
Operating profit 1 141 492 131.9% -426
Devices &
Services 1 219 766 59.1% 785 55.3%
NAVTEQ -56 -73 -68
Nokia Siemens
Networks 17 -179 -1 107
Operating margin 9.5% 3.9% -4.3%
Devices &
Services 14.9% 9.4% 11.4%
NAVTEQ -24.9% -35.6% -41.0%
Nokia Siemens
Networks 0.5% -4.1% -40.1%
EPS, EUR Diluted 0.26 0.15 73.3% -0.15

Reported full year 2009 results 2 2009 2008 YoY Change
Net sales 40 984 50 710 -19.2%
Devices & Services 27 853 35 099 -20.6%
NAVTEQ 670 361
Nokia Siemens Networks 12 574 15 309 -17.9%
Operating profit 1 197 4 966 -75.9%
Devices & Services 3 314 5 816 -43.0%
NAVTEQ -344 -153
Nokia Siemens Networks -1 639 -301
Operating margin 2.9% 9.8%
Devices & Services 11.9% 16.6%
NAVTEQ -51.3% -42.4%
Nokia Siemens Networks -13.0% -2.0%
EPS, EUR Diluted 0.24 1.05 -77.1%

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 3-4, 12-14 and 16 for the quarterly periods and pages 25-29 for the full year 2009 and 2008.

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 Q4 2009 and Q4 2008 as well as for full year 2009 and 2008 can be found in the tables on pages 10, 12-16 and 24-29 of this press release. A reconciliation of our Q3 2009 non-IFRS results can be found on pages 11 and 14-18 of our Q3 2009 Interim Report of October 15, 2009.

Note 2 relating to NAVTEQ: Nokia completed the acquisition of NAVTEQ Corporation on July 10, 2008. NAVTEQ is a separate reportable segment of Nokia starting from the third quarter 2008. The results of NAVTEQ are not available for the prior periods. Accordingly, the results of Nokia Group and NAVTEQ for the full year 2009 are not directly comparable to the results for the full year 2008.

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.
OLLI-PEKKA KALLASVUO, NOKIA CEO:
"We grew our market share in smartphones in the fourth quarter, driven by the successful launch of new touch and QWERTY models. Our performance in smartphones, combined with continuing success in the emerging markets, helped us increase sales in our Devices & Services unit, both quarter-on-quarter and year-on-year. Our solid results also owe a good deal to world class supply chain management and impressive sales execution.

I was also pleased with Nokia Siemens Networks' performance in Q4, especially considering the ongoing challenging conditions in the infrastructure market. That performance enabled it to turn in a full year profit on an operative basis.

Our focus remains firmly on execution, especially around user experience. Here I want to highlight our move to shake up the navigation market with free walk and drive navigation on our smartphones, a good example of how we are leveraging our assets to bring real benefits to consumers"

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

Q3 2009 — EUR 1 167 million consisting of:

EUR 908 million impairment of goodwill in Nokia Siemens Networks
EUR 29 million restructuring charge and other one-time items in Nokia Siemens Networks
EUR 117 million of intangible assets amortization and other purchase price related items arising from the formation of Nokia Siemens Networks
EUR 111 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
Q3 2009 taxes — EUR 432 million valuation allowance for Nokia Siemens Networks deferred tax assets impacting Nokia taxes

Q4 2008 — EUR 747 million consisting of:

EUR 286 million restructuring charge and other one-time items in Nokia Siemens Networks
EUR 52 million restructuring charge in Devices & Services
EUR 165 million representing the contribution of assets to Symbian Foundation
EUR 5 million restructuring charge in NAVTEQ
EUR 118 million of intangible asset amortization and other purchase price accounting related items arising from the formation of Nokia Siemens Networks
EUR 121 million of intangible asset amortization and other purchase price accounting related items arising from the acquisition of NAVTEQ
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.

PERSONNEL
The average number of employees during 2009 was 123 171, of which the average number of employees at Nokia Siemens Networks was 62 129. At December 31, 2009, Nokia employed a total of 123 553 people (125 829 people at December 31, 2008), of which 63 927 were employed by Nokia Siemens Networks (60 295 people at December 31, 2008).

SHARES
The total number of Nokia shares at December 31, 2009 was 3 744 956 052. At December 31, 2009, Nokia and its subsidiary companies owned 36 693 564 Nokia shares, representing approximately 1.0 % of the total number of Nokia shares and the total voting rights.

DIVIDEND
Nokia's Board of Directors will propose a dividend of EUR 0.40 per share for 2009.

Agenda
Nokia plans to report its quarterly results in 2010 on the following dates: Q1 on April 22, Q2 on July 22 and Q3 on October 21, 2010.
Nokia plans to publish its annual report, Nokia in 2009, in week 12 of 2010.
Nokia's Annual General Meeting will be held on May 6, 2010.