OPPapers.com

Nokia

Review by the Board of Directors 2008 *
Review by the Board of Directors 3
In 2008, Nokia’s net sales decreased 1% to EUR 50 710
million (EUR 51 058 million in 2007). Net sales of Devices
& Services for 2008 decreased 7% to EUR 35 099
million (EUR 37 705 million). Net sales of NAVTEQ for
the six months ended December 31, 2008 were EUR
361 million. Net sales of Nokia Siemens Networks increased
14% to EUR 15 309 million (EUR 13 393 million).
In 2008, Europe accounted for 37% (39% in 2007)
of Nokia’s net sales, Asia-Pacific 22% (22%), Greater
China 13% (12%), North America 4% (5%), Latin
America 10% (8%), and Middle East & Africa 14%
(14%). The 10 markets in which Nokia generated the
greatest net sales in 2008 were, in descending order
of magnitude, China, India, the UK, Germany, Russia,
Indonesia, the US, Brazil, Italy and Spain, together
representing approximately 50% of total net sales in
2008. In comparison, the 10 markets in which Nokia
generated the greatest net sales in 2007 were China,
India, Germany, the UK, the US, Russia, Spain, Italy,
Indonesia and Brazil, together representing approximately
50% of total net sales in 2007.
Nokia’s gross margin in 2008 was 34.3%, compared
to 33.8% in 2007. Nokia’s 2008 operating profit
decreased 38% to EUR 4 966 million, compared with
EUR 7 985 million in 2007. Nokia’s 2008 operating
margin was 9.8% (15.6%). Nokia’s operating profit in
2008 included purchase price accounting items and
other special items of net negative EUR 2 067 million
(net positive EUR 288 million). Devices & Services
operating profit decreased 23% to EUR 5 816 million,
compared with EUR 7 584 million in 2007, with an
operating margin of 16.6% (20.1%). Devices & Services
operating profit in 2008 included special items of net
negative EUR 557 million (net negative EUR 4 million).
NAVTEQ’s operating loss for the six months ended on
December 31, 2008 was EUR 153 million, representing
an operating margin of – 42.4%....