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 reallocations 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 revenue 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 | |||||
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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